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HomeMy WebLinkAbout922464 ~tm~%ili~;: :~':·;·'~-·')0771. : ,:«:;:::::.',:, ,:: ;>::,1,;<';,,-.: .,'.' RECEIVED 9/15/2006 at 10:01 AM RECEIVING # 922464 BOOK: 633 PAGE: 771 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY PRODUCERS 88-PAID UP Rev. 5-60, No.-2 - 8pt.-AmcDdcd OIL AND GAS LEASE AGREEMENT, Made aDd clUered into the 12th day of May ,20~, by aDd between Julia F. Fenn. a sin~le person, individually and as heir to the Estate of Cecil R. Penn, Deceased; and, William R. Penn, a married man dealing in his sole and separate property, individually and as heir to the Estate of Cecil R. Penn, Deceased ,_, -".....__. ;, ' <. . '.':;'.. ~,. .. ",I' .:' ' .,. :.....",' ., Whose post office address is 4523 South 2075 West, Roy, lIT 84067-3313 , hereinafter called Lessor (whether one or more) and Zenergy, Inc., whose post office address is ODe Warren Place, 6100 S. Yale Ave., Suite 1700 Tulsa, OK 74136, hereinafter called Lessee: WITNESSETH, That the Lessor, for and in consideration of Ten and mare~o.oo+) DOlLARS cash in hand paid, the receipt of which is hereby acknowledged, aDd the covenauts ÌIIId agreements hereinafter contaiDed, has granted, . ed, leased aDd let, aDd by these presents does grant, demise, lease and let exclusively untD the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical aDd other methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, with rights of way and easements for laying pipe lines, and erection of structures thereon to produce, save and take care of said products, all that certain tract of land situated in the Couoty of Lincoln, State of Wyoming, described as follows, to- wit: Township 21 North, ~e 115 West, 6th P. M. Section 36: All (also described as Section 36: Lots 37, 44 and 46), less and except the railroad right of way , . 50 aDd coJUaining 627.64 acres, more or less. 1. h is agreed that this lease shall remain in force for a term of five (5) yc:an from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiraùon of the primary term of this lease, oil or gas is IIOt being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased preDÚSes or on acreage pooled therewith; and operations shall be considered to be continuously prosecuted if DOt more thaJ¡ ninety (90) days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling ~f a sub~ well. If after ~very .of oil or gas on said ~ or on .~reage pooled ~erewith,. the production thereof should cease from any ~ after the pnmary term, this lease ~ DOt tenmnatt: if ~see commences ~dlUOnal drilling or re-working operauons within ninety (90) days from date of cessatton of producuon or from date of compleuon of dry hole. If oil or gas shall be dIScovered and produced as a result of such operations at or after the expiration of the primary term of this lease, this 1ease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any operatiönš- dUring the primary term. Lessee may at any time or times during or after ·the prunary term surrender this leaSe as to all or any portion of said land and as to any strata or stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. 3. In consideration of the premises the said Lessee covenauts and agrees: 1st. To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on said land, the equal one-eighth (118) pan of all oil produced and saved from the leased premises. 2nd. To pay Lessor ODC-eighth (118) of the gross ~ each year, payable quarterly, for the gas from each well where gas only is found, while the same is being used off IÌie premises, aDd if used in die manu e of gasoline a royallY of One-c:lghth (118), paYablc monthly IU the prevailing markel rate for gas. 3rd. To pal Lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product a royalty of one- eighth (l/8) 0 the proceeds, at the mouth of the well, payable IDOJúhly at the prevailing mar1cet rate. 4. Where gas from a well capable of producing gas is IIOt sold or used, Lessee may payor tender as royalty to the royalty owners One Dollar per year per net royalty acre retained hereunder, such payment or tender to be made on or before the anniversary date of this lease next ensuing after the expiraùon of 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease during the period such well is shut in. Lessee's failure to payor tender, or properly payor tender, any such sum shall render Lessee liable for the amouot due but it shall not operate to terminate tJ1.is lease. 5. If said Lessor owns a less interest in the above described land thaJ¡ the entire aDd undivided fee simple estate therein, then the royalties (including any shut-in gas royalty) herein provided for shall be paid the Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee. 6. Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for Lessee's operation thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe line below plow depth. 8. No well shall be drillc4 nearer thaJ¡ 200 feet to the house or barn DOW ou said premises without the written consent of Lessor. 9. Lessee shall pay for daiDages caused by Lessee's operations to growing crops on said land. 10. Lessee shall have the right at any time to remove all machinerr and fixtures placed on said premises, including the right to draw and remove casing. 11. The rights of Lessor and Lessee hereunder may be assigned m whole or in pan, No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other information necessary to estabüsh a complete chain of record tide from Lessor, and then only with respect to payments thereafter made. No other kind of notice, whether actual or constructive, shall be b~ on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner sbaiI be liable for any act or oDÚSsion of any other leasehold owner. 12. Lessee, at its option, is hereby given the right and power at any time aDd from time to time as a recurring right, either before or after production, as to all or any pan of the land described herein and as to anr one or more of the formations hereunder, to pool or unitize the leasebold estate and the mineral estate covered by this lease with other land, lease or leases in the Immf'4iate vicinity for the production of oil and gas, or separately for the production of either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to sucb other land, lease or leases. Lilcewise, units previously formed to include formations DOt producmg oil or gas, may be reformed to exclude such non-producing formations. The fomñng or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling or reworking operations or a well shot in for want of a mar1cet anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, ~ or reworking operations or a well shut in for want of a mar1cet under this lease. In lieu of the royalties elsewhere herein specified, including shut-in gas royalties, Lessor shàll receive on production from the unit so pooled royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion of the unit production that the total number of surface acres covered by this lease aDd included in the unit bears to the total number of surface acres in such umt. In addition to the foregoing, Lessee shall have the right to unitize, pool or combine all or any pan of the above described lands as to one or more of the formations thereunder with other lands in the same $eneral area by entering into a cooperative or unit plan of development or operation approved by any governmental authority aDd, from time to time, with like approval, to modify, change or terminate any such plan or agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modified to contorm to the terms, condilions, aDd provisions of such approved cooperative or unit plan of development or operation and, particularly. all drilling aDd development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling aDd development requirements of such plan or agreement, and this lease shall DOt terminate or expire durin~ the life of such plan or agreement. In the event that ~ above descri~ lands or an~ part ther~f, shall hereafter be operated ~ any such cooperati~e or umt plan of development or operation whereby the production therefrom IS allocated to different pornons of the land covered by said plan, then ~oduction allocated to any particular tract of land shall for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been pr from the particular tract of land to which it is allwted and not to any othc;r tract of land; and the r~yalty paY.JDe1US to be made hereunder to .Lessoi shall be based upon production only as so allocated. Lessor shall formally express Lessor I consent to any cooperative or umt plan of development or operauon adopted by Lessee aDd approved by any govcrnmental agency by cxecuting the same upon request of Lessee. 7) , ,t" - - / >" i)3~~4G:k 000772 13. All express or implied coVCDalltS of this lease shall be subjcct 10 all FcdcrallDd State Laws, Exccutive Orders, Rules or Regulations, IDd this lease sball not be terminatfd, in whole or in part, IIOr Lessee held liable in damagcs, for failure 10 comply therewith, if compliance is preycnted by, or if such failure is the rcsult of, any such Law, Order, Rule or Regulation. 14. Lessor bel"eby warranrs IDd agrees 10 defend the title 10 the lands bel"ein described, and agrees that the Lessee sba1l have the right at any tùnc 10 redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described lands, in the event of default of payment by Lessor IDd De subrogated 10 the rights of the holder thereof, IDd the uudersigned Lessors, for themselvcs IDd their heirs, successors IDd assigns, bereby surrender and release all right of dower and homestead in the premises described Derein, insofar as said right of dower IDd homestead may in any way affect the ~scs for whicb this lease is made, as recited herein. Lessor agrees 10 execute such further assurauces as may be requisite for the full and complete enjoyment of the nghts herein granted. 15. Should any ODe or more of the parties hereinabove named as Lessor fail 10 execute this lease, U sba1l nevertheless be binding upon all such parties who do execute it as Lessor. Tbc word "Lessor, as used in this lease, sba1l mean anyone or more or all of the parties who execute this lease as Lessor. All the provisions of this lease shall be binding on the heirs~ successors an4 assjgns of Lessor ~ Lessee: . . ... . ..., .O..H. .. 0 .. cO..o _ 16. AJ1~ 10 the to1itràry herem DòtWitbs~, if I:ešSõr owns a greater 1IIterest m the !aDds descnbed thäi11S purported 10 De leased hereby or hereafter acquires any additional intcrcst or tide in the lands described, then this lease shall cover such greater or additional after-acquired interest or tide, IDd Lessor agrees 10 give Lessee written DOtice of any such acquisition as soon as the IIaIIIC is made, in which event the royalties ~yable 10 Lessor shall be increased proportionately. 17. This lease ~_be ~xecuted in any number of counterparts, each of which shall be considered an onginal for all purposes. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. William R. Fenn, a married man dealing in his sole and separate property, individually and as heir to the Estate of Cecil R. Fenn, Deceased - ~.. L...;, F. 1~(¿ ~-x.J Julia . Fenn, a smgle person, indlVldually and as helI to the Estate of Cecil R. Fenn, Deceased , . ~ ).. INDIVIDUAL ACKNOWLEDGMENT :::FOF . LOPk£r : . BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this æ.- day of (J J I/JI! Kf-. 2005. personally appeared Julia F. Fenn, a sin~le person, individually and as heir to the Estate of Cecil R. Fe~~ known to be the identical person described in and who executed the within and foregoing instrument of writing and acknowledged to me that . she 1iu1y--exe.."Uteå -the same as-her 0 free and \'olWltéirj aet Âlld deed for the uses and purposes therGÌn set forJ1. My Commission Expires: IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written. 0YRv~ N~ PuW¥fJ LISA J. RANDALL o ary u c State of Utah My Commission Expires Feb, 29, 2008 5201 S 1900 W, Roy, UT 84067 Address : STATE OF ) ) ss. INDIVIDUAL ACKNOWLEDGMENT COUNTY OF ) BEFORE ME, the undersigned, a Notary Public, in and for said County and State. on this _ day of ,2005, personally appeared William R. Fenn. a married man dealin~ in his sole and separate property, individually and as heir to the Estate of Cecil R. Fenn, Deceased , to me known to be the identical person described in and who executed the within and foregoing instrument of writing and acknowledged to me that he duly executed the same as his free and voluntary act and deed for the uses and purposes. therein set forth. IN WITNESS WHEREOF, I have hereunto ~et my hand and affixed my notarial seal the day and year last above written. My Commission Expires: Notary Public Address : When recordeM:@¡fu~;o Antelope Land Services, LLC, P. O. jm~~~jl Kimball, Nebraska 69145.