HomeMy WebLinkAbout923842
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I'oz:a ApprDved by tbe BoArd
ADd Effective JanuAry 6. 1'9'
STATE OF WYOMING
OIL AND GAS LEASE
Lease # 06-00723
Parcel # 600
Fund Code: CS
000528
This indenture of lease entered into by and between the State of Wyoming, acting by and
through its Board of Land Commissioners as LESSOR, and the following as LESSEE:
Tourmaline Exploration Company, LLC
~ Section 1. PURPOSE. The LESSOR, in consideration of the rents and royalties to be
, paid and the covenants and agreements to be kept and performed by the LESSEE, does hereby
~ grant and lease to the LESSEE, the exclusive right to drill for, mine, extract, remove, and
dispose of all the oil, gas and associated hydrocarbon substances and gaseous substances and
elements produced therewith, including sulphur, hydrogen sulfide, sulphur dioxide, nitrogen,
carbon dioxide and helium, which may be produced from the following described land, to wit:
2ú
¡Ú
All Section: 16 Township: 20 North Range: 119 West of the 6th P.M.
, !
IlÇ
County: Lincoln
Acres: 640.00
$640.00
($1.00 per acre or fraction thereof)
Together with the right of ingress and egress and the right to use so much of the
surface of said lands as is necessary to construct and maintain thereupon all works,
building, plants, waterways, roads, communication lines, pipe lines, reservoirs, tanks,
pumping stations, or other facilities necessary to the proper conduct of operations there
under.
Section 2. TERM OF LEASE. This lease shall become effective on the day and year set
out below and shall remain in effect for a primary term of five (5) years~and for so long
thereafter as leased substances may be produced from the lands in paying quantities. This
lease may also be extended beyond its primary term in the absence of production of leased
substances as may be provided by the statutes of the State of Wyoming and the regulations of
the Board of Land Commissioners adopted pursuant thereto. Provided, however, if drilling,
completion, testing or reworking operations are being diligently conducted, either during the
primary term or during any extension thereof, this lease shall continue in full force and
effect so long as such operations are being conducted and so long thereafter as oil or gas
may be produced in paying quantities. This lease may be relinquished or terminated at an
earlier date as herein provided.
Section 3. If the LESSOR owns an interest in oil and gas in said land less than the
entire fee simple estate, then the royalties and rentals to be paid LESSOR shall be reduced
proportionately.
Section 4. LESSEE ~xpressiy represents that, if an individual,:LESSEE is a citizen of
the United States, or has declared an intention to become a citizen, and is over 19 years of
age-and if a corporation, is duly qualified to transact business in Wyoming.
Section 5. This lease is issued under the authority conferred by Title 36, W.S. 1977 as
to the State and School Lands, and Title 11, W.S. 1977 as to Farm Loan lands, and shall be
subject to, and operations by LESSEE hereunder shall be conducted in compliance with the
specific lease terms set out on the reverse of this lease, and with all applicable state
statutory requirements and the regulations issued thereunder, including those providing for:
the leasing of State or Farm Loan Lands for oil and gas; the conservation of oil and gas; and
the regulation of security transactions.
Section 6. HEIRS AND SUCCESSORS IN INTEREST. It is covenanted and agreed that each
obligation hereunder shall extend to and be binding upon, and every benefit thereof shall
inure to the heirs, executors, administrators, successors of, or assigns of the respective
parties hereto.
Section 7. SOVEREIGN IMMUNITY. The State of Wyoming and the lessor do not waive
sovereign immunity by entering into this lease, and specifically retain immunity and all
defenses available to them as sovereigns pursuant to Wyoming Statute 1-39-104 (a) and all
other state laws.
IN WITNESS WHEREOF, this lease has been executed by LESSOR and LESSEE to become effective
on the 2nd day of, October, 2006 A.D.
LESSOR, STATE OF WYOMING, Acting by and through its Board of Land Commissi2~ers.
Lessee Signature: ~~r ~
Address: .J>Y9.3{/ .1". ¿J ø 0 J~ ¿j 4. ~
City:,"J!f;: ~ State~ Zip:Jb/~~
Phone i :l ó :? ~ 9 / 7 - all Z.
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RECEIVED 10/30/2006 at 11 :52 AM
RECEIVING # 923842
BOOK: 638 PAGE: 528
JEANNE WAGNER
;."...,~.:,:.:.:.;.; LINCOLN COUNTY CLERK, KEMM~;~~:~;sYN
::::::::. ~::;;8:~~ U1X~;::~~2.;~::;jI;J
O~~:J~~Vi;~
Oil AND GAS TERMS
Section 1. THE lESSEE AGREES:
(II) BOND. To furnish II bond with IIn lIppmVed corponIte surety c:ompeny øuthorized 10 transact
business In the SllIIe of Wyoming, or such other surety liS may be acceptable 10 the 1_, in the
penal sun lIS required by the current rules of the S_ BoIIrd of land Commissioners,
conditioned upon the pIIymIInI of "" rtlnlllls and royalties accruing 10 the 1_ under the terms
hereof, and upon the full oompIillnCll of 1111 other terms and conditions of this ""'.... and the rules
and regulations reI8ting lhere!o, and lllso conditioned on the pIIymIInI of IIf1 cIarnages 10 the
IIUrfIIœ and i~ thereon where the "'"se co~ lands the IIUrfIIœ ofwhich hIlS been
sold or otherwi.... ""'""<I. Such bond or bonds furnished prior 10 the devetopment of the hinds
conIIIined in this Iene may be incn!ased in such reesonable III11OUI1Is lIS the 1_ mey decide
upon como.....cemet~ of drilling operIIIions and lifter the discovery of oil or ges.
(b)PAYMENTS. To mllke 1111 pIIymIInIs IICCNing hereunder 10 the 0IIk:e of ~ lands and
Inveslmenla, 122 West 25th She!, Cheyenne, Wyoming 82002-œoD.
(c)RENTAlS. Prior 10 the discovery of oil or gas in paying quantities 10 pRy the lessor in
lJIdvanœ. beginning with the eIreåive date hereof, IIn annuIIl "'""" of$1.00 per IIQ'I or fraction
1Æreof.
After the ~ of oil or gas in peying quantities 10 pey the 1_ in edv1mce beginning with
the first day of the IeeH yeer succeeding the lease yeer in which 8due1 discovery was made, IIn
IInnUIII rtlnlIII of $2.00 per IIQ'I or fraction lhereof, unless chllnged by~. Such _ so
pøid for eony one yeer shell be credited on the royally for thlll yeer.
An""'" renløls on 1111 ""'SØ!I shllll be pRy""Ie in IIdvIInœ for the first year and each year
1here8ller. No notice of rente! due shllll be sent 10 the lessee. If the rental is not pllid on or
before the dale it becomes due, notice of defllult will be sent 10 the Ies....., and a pIIOIIlIy of SO.50
per acre for IlIIe pIIymIInI will be IISsessed.
The lessee is not legelly obfigated 10 pey either the rentlll or the penally, but if the rental and
penIIIty _ not pIIid within thirty (30) dRyS lifter the notice of defIIufI hIlS been received,the Ie8se
willlenninate automllliœlly by operIIIIon of how. Termination of the IeeH shafl not relieve the
lessee of eony obligation incurred under lhe lell.... other than the obfigation 10 pay rental or
penlllly. The las..... shllll not be entitled 10 II credit on royally due for øny penlllIy pIIid for IIIIe
pIIymIInIs of rental on IIn operating lellse.
(d)ROYAl TIES. The royalties 10 be pIIid by lessee lire:
(i) On oil, one-sixlh ofthlll produced, saved, and sold from saidland,the !lllm81o be detivered
III the wells or 10 the credit of lessor into the pipe line 10 which the wetls may be connected.
(ii) On gas, including casingheed gas or other hydroca!bon subs!IInces, produced from said
land saved and sold or used off the premiSØ!l or in the rnanufacIure of gesoline or other products
Iherefrnm, the mørIæI VII!ue III the ~ of one-sixth of the gas so sold or used. provided \hili on
gas sold III the wells, the royally shllll be one-sixIh of the III11OUI1! reetized from such sale.
(iii) On 1111 other hydrncarbons of vlllue and geS8OU!l subsillnœs and elements produced or
8X1r11c1ed, including prop""", butane, sulphur, nitrogen, carbon dioxide, and helium, III such
royally liS """II be mutuelly delennined to be fIIir and reason""Ie.
(iv) For royally purposes on gas and nll!ur1ll gesoline the vlllue shall be as approved by the
lessor, and In the detenninlllion of the VIIlue of nlllural gesoline the fIIir cost of exlnlclion shaH be
considered lIS II deductibte item: provided, however, thlll the allowance for the cost of exlraclion
may exceed Iwo-Ihirds of the III11OUI1! or VIIlue only on IIpprOVIII of the lessor and in no __ shall
the price for gas, or nalur81 gasoline. be less than \hili received by the United ~ of Anwica for
its royalties from the !IIIm8 field.
(v) NIIIUraI gas and on actuetly used for operating fJU'POS8S upon the land and, """"'" _10 the
ultimate sale thereof, ges or liquid hydrOCIIrbons returned 10 the sand for stimulating the
production of oil or secondlll)' recovery purposes shall be royalty free.
(e) DISPOSITION OF ROYAL TV OIL AND GAS. To deliver 10 the lessor, or 10 such individuat,
finn or corporation "" the lessor may designate, all royalty oil, gas, or oIher kindred hydrocarbons,
free of charge on the premises where produced, or, III the option of the lessor, and in lieu of said
royalties in kind, the Ies..... agrees 10 pRy the lessor Ihe field market price or VII"'" of all royally
oil, ges, or other kindred /1ydroc;afbQ IS produced and saved.
When the lessor elects 10 lake Ks royalty oit, gas, or other hydrocerboI.s in kind such as oil, ges,
or other kindred hydrocarbons shllf1 be good merchantable oil, gas, or other kindred
hydrocarbons The Ies..... shell if necessary furnish sIorllge for royally oit free 01 chIIrge for thirty
(30) days 8IIer the end of the calendar month in which the oil is produced, upon the ""'sed
premises, or III the such pillCll as the lessor and the lessee mRy mutuetly II r8Ø upon, provided,
\hili the Ies..... shllll not be held lillble for toss or destruction of royally oit so stored from causes
beyond his control.
The free storage of oit, as herein provided, shall øppIy only as long es the seld oil is the properly
01 the lessor.
(f) MEASUREMENTS OF PRODUCTION. To gauge, measure and correct for IemperIIIure all
prodUction from Mid _ In COo 8~., _ ICe with the rules énd regulations edopIed by the 8œrd of
land Commissiontlnl and report said procb:tion 10 the lessor in IICCOrdtInœ ~.
To keep books, records, and reports pertaining 10 the prccb:tion from the land herein ~ as
wetl liS those pertaining to the production from offset wells openIIed by the lessee, his .openI\or,
or sub-lessee on other lands, which shall be opened III all times for the inspection of øny duly
authorized agent of the lessor.
To furnish the lessor with original pipe line reports showing the day, month, year, amount,
graviti..., and lømperlllures of all oit run and with monthly reports showing the month, yeer.
amount, and price of all g"" and nlllural ges gasoline and other products produced and sold from
the land herein leased, and the III11OUI1! of ges returned 10 the sand.
(g) MONTHLY PAYMENTS AND STATEMENTS. Unless the time of pIIyment is otherwise
extended by the Office of State lands and IlMIS!menIs 10 make payment on or before the
twentieth (20th) day of the calendar month succeeding the month of production and removal and
sale of oit end gas from said land, and 10 furnish sworn monthly statements thenowith showing in
dateit the quIIntily end quIIIity of the production (per well if required where practical) from the land
hereby leased, and the quantity end quality of the production (per _ where precIiœI) from oIfset
wells upon comering or contiguous IIInd operIIIed by the lessee, his opør8Ior or sub-lessee and
such other infonnlllion as may be called for in the form or report prescribed by 18!ISOr.
(h) WEllS TO BE DRilLED. To drill and operate effectively ail_lis necessary to reasonably
oIfseI wells upon and production from edjoining lands.
To drill such edditionat walls III such limes or pillClls liS are necessary and essentillllo the
proper development and commen:illl production of the oil and ges content ofll8id land.
(i)LOG OF WELLS AND REP,ORTS. To keep a log, in the form approved by the lessor, 01 each
well drilled by the lessee on the IIIn<ls henlin leesed, showing the _ and charecter of the
formlllions, wilier sands and mineral deposits penetrated by the drill, amount of casing, size and
where set, and such ofher information lIS the lessor mRy require which log or copy thereof shan
be furnished 10 the lessor.
To file progress reports, in the form prescribed by the lessor, at the and of each thirty (30) day
period while each wetl is being drilled.
To file III1nIJaIly, or III such times lIS the lessor mRy require, maps showing the development of
the structure and the location of all wetls, pipe lines and other _s used in connection with the
operIIIions of the lessee upon said land.
To make such other reports pertaining 10 the production and operIIIIons by the lessee on ....id
land, and report such other informlllion as mRy be possessed by the lessee on the wells,
production or operetions of others on IIInds on the same geologic structure \hili may be of
importance in effecting proper development and operlllion of the lands herein leased, as may be
called for by the lessor. Aft logs, maps, and reports shall be submitted in dupticete and the Office
of State lands and Investments may waive such reports as conditions may WIIfT1InI.
(j)PRODUCTlON. To operate the wells upon the land herein lellsed in a competent and eIficienI
manner in IIn endellVOr 10 recover all the oil and gas economically possible from said land and 10
prevenlthe under drainllge of the oit and ges thereunder by wells openIIed by the lessee or
others on cornering or contiguous lands 10 those leased herein. All pi_ or methods for the
purpose of stimulating or increasing production on lands herein leased other IhIIn those in
common u.... shall first be presented to the lessor for approval before being put into acIuat
operIIIion.
No production ~ ,ts limiting. rastriding, prorating, or otherwi.... alfeding the
nllluralproduc!ion from seid Iønd shall be entered into by the lessee, nor shaH the lessee limit.
rastrid, or prorllle the natunII production from said land in IIny way or in IIny 1IYanI, except with
the consent In writing of the lessor first hlld an obfllined.
(k)SUSPENSION OF OPERATIONS. Should øny wetl drilled upon lands covered by this lea....
obfain prnóxtion of oil, ges, or other hydroCIIrbons in paying quentities and if the Ies..... is
unable 10 establish a salisfllclory market for the oil, gas or hydroca!bons pmduced from said wetl,
the lessee may øppIy for and the lessor '""Y grant permission for the suspension of production
operations until such limes as II slllisfllclory mar1<et for the product from said well cen be
developed. During the time IIny such suspension of operations is in aIfed, the Ies..... shllll
continue 10 pey the annual"'""" of $2.00 per acre or fraction lhereof provided by (c) above. and
this lell.... shall remain in aIfed as though oil or glls was being produced from said lends.
(I)DllIGENCE-PREVENTlON OF WASTE. To exen:i.... rellSOl'1able diligence in drilling,
producing, and operating of wells on the land covered hereby, unless consent to suspend
operations lemporarily is granted by the lessor; 10 cany on all operations hereu1dør in a good and
workmanlike manner in IICCOI'd8nce with approved methods and prIICIice. having due regllrd for
the prevention of waste of oil and ges, or the _ance of water 10 the oil or gas bearing sands or
s\rIIIa 10 the destruction or iIiuri of such deposits, the pre!IØfVlIIion and conservation of the
property for future productive operlllions and 10 the health IInd safely of wor1<men.m~;
10 plug seaJrely in en approved manner any well before abandoning it. and not 10 abandon eony
wetl without permission 01 the lessor, not 10 drill øny well within two hundred (200) feet of eony of
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000529
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the outer boundaries of the lend covered hereby, unless 10 pmlect against drIIinage by wells
drilled on IIInds IIdjoining I.... thlln 200 feet from the property lines thereof; 10 conduct all
operIIIions subject 10 the inspection of the lessor; 10 C8I1)' out III the lessee's IIXpense 1111
""""",able orders and requirements of the lessor relative 10 the prevention of waste and
preservation of the properly and the health and safely 01 worIcmen including the replanting and
reseeding of drilling sites and other _liS disturbed by drilling oper8Iions and on failure of the
""""'" so 10 do the lessor shalt have the right, together with other recourse herein provided, 10
enter on the property 10 repllir damllge or prevenI_lIIthe """"",·s ""JH!r1S8: 10 llbide by and
confann 10 valid applicable regutlllions prescribed 10 reimbI.ne the owner of the surface, if other
than the lessor, or lessee of grazing rights thereof for actuet damages IhereIo and irpy 10
improvements \hereon, provided, thai the Ies...... shell not be held responsible for acts of
providence or actions beyond his control.
(m)TAXES AND WAGES-FREEDOM OF PURCHASE. To pRy, when due 1111 1axe!I11IWfuI1y
a....ssed and levied under the '- of the S_ of Wyoming upon improvements, oil and gas
produced from the land hereunder, or other rights, property or a_ of the 1_, 10 aa:on 1111
workmen and employees complete freedom of pu-chase, and 10 pay 1111 wages due worIcmen and
empfoyees in COt ,fo. ma ICe with the laws of the S_ of Wyoming.
(n)ASSIGNMENTS OF lEASE-PRODUCTION AGREEMENTS. NoIIo assign thisleeH or eony
inlerestllwein, nor sublet any poftion of the ""'""<I premises, except with the conMnI in writing
of the lessor first had and obIained.
All oveniding royalties 10 be valid, must have the IIpprova! of the Board or by the omce of ~
Lands and Inve_ when IIUthoriIy 10 do so has been deIegeIed by the BOBfd and will be
recorded with the Ie""". The Board _s the right of dlsapprovat of such ovemding royalties
when in its opinion they become excessive and hence are detrimental 10 the proper devetopment
of the leased lands.
(o)DElIVER PREMISES IN CASE OF FORFEITURE. To deliver up the ~ premises, wtIh all
permanent improvements thereon, in good order and condition in case of forfeiture of this ""'se,
but this shall not be construed 10
prevenllhe removal, afI~ or -' of equipment and .'II )oO.........'1s in the ardinIII)'
course of operations.
Section 2. THE lESSOR EXPRESSLY RESERVES:
(II) The righllo lea.... sell, or otherwi.... dispose of the surface of the land embrIIced within this
Ie""" under existing IIIWII or IIIWII hereIIfIer IInacted, end in IICCOrdIInce with the rules 01 the
Board of land Commissions insofar "" the IIUrfIIœ is not necessary for the u.... of the lessee in
the conduct of operIIIions hereunder.
(b)The righllo lease, sell, or otherwise dispose of other mineral or subllUrfllœ resources not
covered by the lease, in ac:cord8nce with the applicable '- and the rutes of the BOBfd of land
Commissioners.
(c)From the operation 01 this ""'SII, the IIUrfIIœ lands heretofore granted for rights-of-way and
easements and _the righllo grant such other rights-of-way and _lIS pmvided by
the sIIIIuIes of the SIIIIe of Wyoming, liS long liS such rights-of-way and _ do not anlicI
with the operations for oil and gas on the land herein leased.
(d)The righllo refuse 10 commiIthe leased lands 10 II unit pllln of development if the Board finds
such action would impair the Ies_s reserved right 10 lake its roylllly gas in kind and 10 pm:hIISe
1111 other glls llllocated 10 the leased lands II provided in Section 3(e)betow.
(e)The righllo alter or modify the quantity and rate of production 10 the end that_e may be
eliminated or thlll prcducIion may confann 10 the Iessee's fllir shøre of allowable proWcIion Lf1der
eony system of SIIIIe or NIIIionaI aJrtailmenl and proration authorized by 1_.
(f)1I1 addition 10 its righllo lRke its royally gas in kind, the lessor _the right and option 10
pu-chsse all other gas produced for sele or use off the leased l..mo. This option shafl be
exercised only if the Board finds thai the les..... hIlS received and is willing 10 accept a bonII fide
offer from a purcha_ who inlands 10 sail or transport the ges Into inl-"'e c:omrnørce IInd \hili
one or more intrøstate purcha...... (i.e., purcha...... who will use, consume, or sell the gas for use
or consumption entirely within the State Of Wyoming) _ willing and able 10 pu-chsse the gas
upon terms reasonably comparIIbIe 10 and III least as favorable 10 the lessee lIS those offered by
the inI_ate purchaser. The Board shllll waive this option and permit IIn int_ sale if it finds
\hili no inlraslllle purchaser is willing and able 10 purchase the gas upon terms which are
reesonabIy compsnIbIe 10 and III leest "" favorabte 10 the lessee. As a condition 10 such~,
a satisfllclory ~ '""Y be entered into by which the prnduction of its royally gas may be
deferred untn it can be produced and sold for consumption and use entirely wiIhIn the S_ of
Wyoming.
Section 3. APPRAISAL OF IMPROVEMENTS. The les..... shllll hllV1lthe right subject 10 the
provisions of TIlle 36, liS to Stele and Stille Schoof lands, and Tille 11, lIS 10 S_ loan and
Inve_ Board lands, W.S. 1977, 10 remove eony improvements owned by les..... within a
reason""Ie time after the lenninlllion of this lease. Lessee agrees thai øny such improvernenIs
not removed within a reason""'e lime lifter I"'"'ination of this P shall be disposed of pI.fI!LØ1I
10 the IIbo¥& stlllules.·
SeCtiòn 4. FORFEITURE CLAUSE: .. The Board shell have the power and IIUthoriIy 10 cancel
""""'" procured by frIIud, deceit, or misrepresenlaliOn, or for the use of the l..mo for unlawful or
illegal pur¡>OSØ!I, or for the violation 01 the COV8IWØ of the leese, upon proper proof thereof, in
the event thlllthe Ie...... shall defllult in the performllnCll or observance ofeony of the lerms,
covenants, and stipullllions hereof, or of the gen8rIIl regullllions promulgated by the Board of
land Commissioners and in force on the dale hereof, the lessor shall S8MI notice of such fIIilure
or delaull either by personal service or by certified or regi_ mail upon the les....., and if such
fllilure or default continues for a period of thirty (30) days lifter the !l8fVice of such notice, then
IInd In that event the lessor mllY, III ils option, declare II forfeiture and cancel this lease,
_eupon all rights and privileges, obIIIined by the lessee hereunder """" I",",inllle and C8888
and the lessor may re-enter and lake possession of sllid premiSØ!l or eony part thereof. These
provisions shall not be construed 10 prevent the e-ase by lessor øny legal or equitable remedy
which the lessor might otherwise have. A waiver of eony pllrticular cause or forfeiture shafl not
prevent the cenceflalion and forfeiture of this lease by øny other cause of forfeiture, or for the
same cause occurring llleony other IIrne.
Saction 5. RELINQUISHMENT AND SURRENOER. This 1_ may be relinquished and
summdered 10 lessor liS 10 all or øny legal subdivision of said lan<ls liS follows:
(II) If no operIIIions hllVØ been conducted under the lea.... on the land 10 be relinquished, the
lessee shall file with the Stille land Board and SllIIe loan and Investment Board, a written
relinquishment or surrender, duly signed and acknowledged and stilling Iherein \hili no operations
have been conducted on the land. The relinquishment SO filed shall become e«ective on the date
and hoIK of receipt thereof in the office of the Director or III some later dale, if such be so
specified by the les..... ø-ein. If the said relinquishment falls 10 _thai no operIIIions hllV1l
been conduded, the alfediv1l dllle 01 relinquishment """" be the dllle the relinquishment is
approved by the BOBfd.
(b) If operations have been conducted under the lease on land proposed 10 be relinquished, the
les..... shllll give sixty (60) dRyS notice and shllll file with the Director a written relinquishment or
surrender duly acknowtedged end stilling therein \hili operations hllV1l been conducted on the
land. The relinquishment shall not become effective until the land and the wetls \hereon """"
have been piaced in condition eccepIabIe 10 lessor and shell have been approved by the SIIIIe Oil
and Gas Supervisor.
All rentals becoming due prior 10 a surrender or relinquishment becoming effective, shafl be
peyabIe by les..... unless ~ thereof shaH be waived by lessor. A relinquishment having
become alfedive there shall be no recourse by les..... and the Ieese as 10 the relinquished llII'1ds
may not be reinstllled.
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STIPULATIONS APPLY TO PARCEL NOS. 588 and 600
Before any road. building, drilling pad construction. building construction or other earth moving activities
commence, plans for such activities (including maps) must be submitted for prior approval by the Office of
State Lands and Investments or his designated representative.
(
The collection of fossils ÍÌ"om this land is prohibited. Any fossils found on this land must be safeguarded
by the finder and given to the Office of State Lands and Investments or his designated representative as
soon as practicable after their discovery.
;
"This lease is issued subject to and conditioned upon lessee's acknowledgment and agreement that,
pursuant to Chapter 18, Section 3.(h) of the Rules and Regulations of the Board of Land Commissioners,
any discovery of historical, archeological or paleontological deposits on state lands during the course of
development shall be reported to the Office of State Lands and Investments by the lessee prior to further
disturbance, and operations my only re-commence as authorized by the Director. The Director shall notify
the lessee regarding mitigation within five (5) working days after receiving the report."