HomeMy WebLinkAbout874579
OIL AND GAS LtfÃW:m ~~IÅ{~~t
but effective July 20. 2001LlNCOL.N COfJm'YMCLER
" 21st I.d f June XI ?rìAl
AGREEMENT. Made and entered mto thlS . . '. . . .. .. . . . ,ay 0 ..... ....... .... 0 r . II ft' 1"6 ¡iJi' : 1 5
by and between . ~rlin. K.. . ~,~l').~el').. ~nq.. M;err.l,lJ.. Iìt;!~.s, 'rr1,lsftØß(e!) .1fQ. .............. ... .~" . ,. .....,.....
. . . .. .... . . Avis. .1:'" .~olsQn Iìevo.c~ble .Trust, dated Apt.i'1. 9.,. .19'7.5. . . . . . . .. ....... . ·Ë II ·f'! I J ¡- . \<ff ';. , <f.' Eo' ¡=>
'500 T\r th 7900 Ea t H t ·11 Ut h 84317 J . /-\ \I '~':. {~l\ \J i ~ "\
...........,.,.....+ .... ..'or............ S .... .UP VJ. e,.. a, _. ..... ................... i¡M.rJ.~~~r~('~!~ING
. . . . . . . . . . . . . . , . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part;jr of the fll'St par1;, heremafter called lessor (w è 6 0 )
. . Zone . Explora.tian, . Inc.. .. . . . . ,P..O.. Bax. 1362. Billings,.MT. .?9.~9Jty of the second part. hereinafter called lessee.
WITNESSETH, That the said lessor, for and in consideration of Ten and More DOLLARS cash in hand paid, receipt of which is. hereby
acknowledged and of the covenants and agreements hereinafter (Jontained does hereby grant, demise, lease, and let exclusively unto lessee, its successors
and assigns for the purpose and with the exclusive right, to explore by geophysical and other methods, to drill and operate for, to produce oil. all gases.
including, but not limited to, casinghead gas and coal gas. and all other hydrocarbons, and to build pipelines, power lines, telephone lines, tanks, power
stations, pools, roadways and other structures thereon with any and all easements reasonably required for same, and any and all other rights and privileges
reasonable, necessary or incident thereto, all that certain tract of land and lands riparian thereto together with any reversionary rights therein, situate
in the County of . . . . , . . . .¡'W.Cq: .¡}. .. ..................... State of . . . Wyaming. . . . . . . . . . . . described àB follows, to-wit:
Montana 88h
MP Rev. 12-86
Far camplete descriptian af lands, see Exhibit "A" attached
hereto. and made a part hereaf.
Far additianal terms and canditians, see Exhibit
hereto. and made a part hereaf.
"B" attached
BOOK461'tPR PAGE_ G _~-º-
1,717..65.. .
Fbr the purpose of determining the amount of an,y money payment hereunder, said land shall be considered to comprise acres,
1. It is agreed that this lease shall re. main in ferce for a term of¥~Ü:rom dl}ii1. ~d as~. .n..g. thereafter as oil or gas, or either of them, is produced
from said land !:.>y the lessee, its succ.essors and. assigns, six 6~! ?1' [/
2. In conslderation of the prenuses the sald lessee covenanT.ããn s: ,--- . . --1/7 A
First, The lessee shall deliver to the credit of lessor as royalty, free of cost in the pipe line to which lessee may connect its wells. the equal one-
eighth part of all oil produced and saved from the leased premises, or. at lessee's option, may buy or sell such one-eighth royalty and pay lessor the market
price for oil of like grade and gravity prevailing in the field on the day such oil is run into pipe line or into storage tanks.
Second. The lessee shall pay lessor, as royalty, for gas, coal gas or casinghead gas of whatsoever nature or kind produced and sold from said land
or used for the manufacture of gasoline or any other products. one-eighth of the market price of such gas in its natural state at the well.
TIlird. While there is a gas well or wells on the land covered by this lease or acreage pooled therewith, whether it be during or after the primary
tenn hereof, and such well or wells are shut in. and there is no other production, drilling operations or other operations being conducted capable of keeping
this lease in force under any of its Provisions, lessee shall pay as royalty to lessor (and if it be within the primary term hereof such payment shall be in
lieu of delay rentals) the swn of one dollar ($1) per year per net mineral acre, such payment to be made in the manner described in paragraph 3 below
on or before the anniversary date of this lease next ensuing after the expiration of ninety (90) daya from the date such well or wells are shut-in, and thereafter
on the anniversary date of this lease during the period such wells are shut-in, and upon such payment it shall be considered that this lease is maintained
in full force and effect,
3, If operations for the drilling of a well are not commenced on said land on or before the .. 20th . . . .' day of . . July. . .
.,XOC .2002
this lease shall terminate as to both parties, unless the lessee on or before that date shall payor tender to the lessor or to the lessor's credit in the
. .. . . . . . .Pay .Pirec.t. t,Q .L~.seor . .. .. ... .. . . . . .. . . .. Bank at P ..0. Box 518 Big. Piney, Wyoming '831¡3
or its successor or successors. or any b¡tnk: with which it may be merged, or consolidated, or which succeeds to its business or assets or any part thereof,
by purchase or otherwise. which shall cont.inue as the depository regardless of changes in the ownership of the said land, the swn of
. . . . . . .-: ..Çì~.ntaJ..s. tQ. b.~ .an .amo.\U'Jt. .eq~~l. .to. .$l.QO. p.~r. pet.min.~ral. .a.cre. :-:. . . . . . .. . . . . . . . . . . ~
which shall operate as a rental and cover the privilege of deferring the commencement of a well for twelve months from said date. In like manner and
upon like payments or tenders the commencement of a well may be further deferred for like periods of the same nwnber of months successively. And
it is understood and agreed that the consideration first recited herein. the down payment. covers not only the privileges granted to the date when said
first rental is payable as aforesaid. but also the lessee's option of extending that period as aforesaid, and pay any and all other rights conferred, Rentals
may be paid by check or draft and may be remitted by mail. Mailing of rental on or before the rental-paying date shall be deemed a timely tender thereof
and shall preclude termination of this lease. Notwithstanding the death of the lessor, or his successor in interest, the payment or tender of rentals in the
manner provided above shall be binding on the heirs, devisees, executors and administrators of suoh person.
4. Should any well drilled on the land above described be a dry hole or cease to produce aÍ1d there are no other producing well or wells on the land
or drilling operations are not being oonducted thereon, then and in that event if a well is not commenced before the next rental paying date this lease
shall terminate as to both parties. unless the lessee on or before the next rental paying date shall reswne the payment of rentals in the same amount
and in the same manner as hereinbefore provided, and it is agreed upon the reswnption of the payment of rentals, as above provided, the last preceding
paragraph hereof, goveming the payment of rentals and the effect thereof, shall continue in force as though there had been no interruption in the rental
payment,
5. If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties and rentals
herein provided shall be paid the lessor only in the proportion which his interest bears to the whole and undivided fee. However, such rentals shall be in-
creased at the next sucoeeding rental anniversary after any reversion having occurred to cover the interest as acquired with notice of said reversion to lessee,
6, Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for its operations thereon, except water from wells and
reservoirs of lessor. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and
remove casing,
7. Lessee shall pay for all damageS caused by its operations on said lands. When requested by the lessor, lessee shall bury its pipe lines below plow
depth. No well shall be drilled nearer than 200 feet to the house or ham now on said premises, without the written consent of the lessor.
B. Lessee shall have the right to drill to completion with reasonable diligence and dispatch (1) any well commenced within the term of this lease. and
(2) any well commenced before the completion of a well which has been commenced within such tenn, If oil and gas or either of them be found in paying
quantities in any such well this lease shall continue and be in foroe with like effect as if such well had been completed within the tenn of years herein
first mentioned.
9, Lessee is hereby granted the right and power to pool or combine the acreage covered by this lease, or any portion thereof, with other land, lease
or leases in the vicinity thereof at any time and from time to time, whether before or after production, when in lessee's judgment it is necessary or ad-
visable to do so for the prevention of waste and the conservation and greatest ultimate recovery of oil or gas. Such pooling shall be into a unit or units
not exceeding in area the acreage prescribed or required in any Federal or State law, order, rule or regulation for the drilling or operation of one well, or
for obtaining the maximum allowable production from one well or 40 acres each for the produotion of oil, or 640 acres each for the production of gas,
whichever is the larger. Such pooling shall be effected by lessee's exeouting and filing in the office where this lease is recorded an instrtmlent identifying
and describing the pooled acreage. The production of pooled substances and development and operation on any portion of a unit so pooled. including the
commencement, drilling, completion and operation of a well thereon, shall be oonsidered and construed, and shall have the same effect, except for the
payment of royalty, as production, development and operation on the leased premises under the terms of this lease. The royalties herein provided shall
accrue and be paid to lessor on pooled substances produced from any unit in the proportion, but only in the proportion that lessor's acreage interest in
the land covered hereby and placed in the unit bears to the total acreage in the land placed in such unit.
10, If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly allowed, the covenants hereof shall
extend to their heirs, executors. administrators. successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties
shall be binding on the lessee until after the lessee has been furnished with a written transfer or assignment or a certified copy thereof; and it is hereby
agreed in the event this lease shall be assigned as to a part or parts of the above described lands and the assignee or assignees of such part or parts shall
fail or make default in the payment of the proportionate part of the rents due from him or them, such default shall not operate to defeat or affect this
lease in so far as it covers a part or parts of said lands which the said lessee or any assignee thereof shall make due payment of said rentals. An assignment
of this lease, in whole or in part, shall as to the extent of such assignment relieve and discharge the lessee of all obligations hereunder.
11. All express or implied covenants of this lease shall be subject to all federal and state laws, executive orders, rules and regulations, This lease shall
not be terminated in whole or in part. nor lessee held liable in damages for failure to comply with its terms, if compliance is prevented or if the failure
to comply is the result of any such law. order, rule or regulation. This lease, further, shall not be tenninated in whole or in part, nor lessee held liable
in damages, because of a temporary oessation of production or of drilling cperations due to breakdown of equipment or due to the repairing of a well or
wells, or because of failure to comply with any of the provisions of this lease if the failure is the result of the exercise of governmental authority, lack
of market, act of God, strike, fire, explosion, flood or any other cause reasonably beyond the control of lessee.
12. Lessee may at any time release this lease as to part or all of the lands above described after which all payments and liabilities thereafter to accrue, _
as to the lands released. shall cease and determine. In the event of a partial release, the annual delay rental above mentioned shall be reduced proportionately.
13. Lessor hereby W8n'aIltS and agrees to defend the title to the lands herein described, and agrees that the lessee shall have the right at any time
to redeem for lessor, by payment, any mortgage, taxes or other liens on the above described lands in the event of default of payment by lessor, and be
subrogated to the rights of the holder thereof and lessee may reimburse itself by applying to the discharge of any such mortgage. tax or other lien, any
royalty or rentals accruing hereunder.
14. This lease and all its terms, conditions and stipulations binds each executirig lessor and shall E'.xtend to and be binding on his assigns, heirs and
devisees and successors, and those of the lessee, though unsigned by other Isssors named herein.
IN WITNESS EREOF, e sign the day and year fjrst above written,
fJ.
l1f.~1dt .W~
Merril~ ees, Trustee af the
Avis p. Polson Revacable Trust,
dated April 9, 1975
Marlin K. Jensen, Trustee af the
Avis P. P.alson . RevocablA Tr'~~_____
dated April 9, 1975
-
---t-
-
l
RECORDING DATA
----------_...._-----_......_...._----------------~--
Residing at . . . . . , , . . . , , . . . . . , . . , . , . . . . , . , , . , . . . . . . . . .
... ...... ..................................
My commission expires::
Notary Public
.................................................. .
"
ACKNOWLEDGMENT FOR CORPORATION
STATE OF.,."..".,',...,.........}
ss.
COUNTY OF.,...".."..,.."..,.,.
On this. . . , . , , . . , . , . , , day of . . . . . . . . . . . . . . , . , ., . . . . . . . . . , . . . . , , , . 19 . . , . . . . ., before me personally appeared
· , . . , . . . . , , , , , , , . . . , . . , , , , . , . . . . . . . , , . . , . . . , , , . , . , . , . . . . , known to me to be the, . . , . , . . , , . , . , , . . . . . . . . . . . .
of , , , , , . , . . , . , , . . . , . . , , , . . , . , , , . . .. . . . . . . . , . . , . . . , . . , . . , , , . . . . . . . , . .' . . . . . , , . , . , . . . . . . . . . . , . . . . . . . . . . . .
the corporation that executed the within instrument, and ac~nowledged to me that such corporation executed the same.
--- ------------- - --..... ---- -~ -----------------.....--
MY COMMISSION .f.'XPIRES 1/0Il. '08,2003
~~~::.~,~;~;~.\~t;;::~M
STATE OF
WYOMING
COUNTY OF
SUBLETTE
Residing at . . ~'uk &2-ffc./fJLJ..Þ1·H-r
..... .............................
My commission expires:
\ n Of r D 'V, ZDlg ,AA~:;';:~ffl''"~~~~~¥>l~:
· '. .....,."., ., ?~A'MBI:A BAMMEr; . NOTARY PUBLIC
. Ov.7VLlatz. ,(~.. '..., ,.. ...........
Notary Public
ACKNOWLEDGMENT FOR INDIVIDUAL
STATE OF.... Wyoming...... ,.... .. .}
ss.
. COU~TY 0t. S:u.bJ.f;!tt.~...".,..,..
On thIS , , J .f, . , . . , . . . , , day of . .ÇþA [ ~. . , , . , , . , . . . . . . , . . . . . . . . . . W 2.Q01 . , ., before me personally appeared
· . . " . , , . . , , . .M~rrilJ.. n~,e.e¡J . 'f:rµß:t,~~ . 9f. ,t,l1~ .~y;i.,s. .~ ~ ,:P9,l,~ql}.. ~!=!Y.o.~B:'q+~. ~,r:~f?'þ". . . . . . . . . . , , . . , . . . . .
· , , , , . , . . . . , . ,q.~t~. .Ap'~~;L. ,9..1 .+975, , . . , . . , . . . , . , , , . . . . . , . , . . . . . . . . , . . . . . , . . . . , . . . . . . . . . . . . . . . . . . . . . ..
known to me to be the person(s) described in and who executed the foregoing instrument, and who acknowledged to me
. that he (she, they) executed the same.
.~----------~---------------------------~--
.....".._-"'~
ACKNOWLEDGMENT FOR INDIVIDUAL,
STATE OF....~................. ~...
COUNTY OF.,..." ,fl('. . , , . , , , , . , , ({
On this. , . , , , . . ~, , , day of . . . , , . ,\:J. 0-:~ . , . . . . , , . . . . , . , . . . , . 00 2.001, . ., before me personally appeared
, , , , , , . . . , , . , Mar.J.in, K.. ,tlf;!l)sßn,. ,TrJl.s.t~~. of. t.h~ .~vi,s .~. ,Pol.s,QI1 .J;tßY.QG~blß, .'lr.ttst" . . , . . , , , . . . , . , .
· , , . . . . . . . , , , ß~t!=!Ø: Ap~µ, .9.,. ,+975. , . . . . . . . . , . . . . . . . . . . , . . . , . , , , . . . . . .. . . , . . . . . . . . . . . , , . . . .. . , . , . . , . .
known to me to be the person(s) described in and who executed the foregoing instrument, and who acknowledged to me
that he (she, they) executed the same. ~/"'.'7
'" .
. . ......-.. I
. .. .. .. .. .. .. . ,., .a. ,~....... . . , '"' . . , , . , . , . . , . . , . . .
_-..,-...-----.-.---,jotary Public
My commission expires: ~..:;;-rlf. Notary Public
· . , . , . , . . . . . . . .3. .--: .t. M,i)~Jc .. ~~~~81~ ~~fs~~ER1. esiding at. . . . . . , . f:',~.., ~!./"' ~,? - . . . . . . . . . . . . . . . . .
., .. NORTH OGDEN, UT 8064 ~
~ . " . !i My commisalon Ex.pires
~,,_/~, MARCH 1, 2005 .
-<,~..!'..~~/ STATE OF UTAH
G41
u··..j:,··'··, "~.' "'I("~
<:.~ $'''t", if J
-
-
-
-
-
-
G [12
{J~'!-jl'i ,'¡':In
_~ t t'~<J i' J
EXHIBIT "A"
Attached to and made part of that certain Oil and Gas Lease dated June 21, 2001, but effective
July 20, 2001, between Marlin K. Jensen and Merrill Rees, Trustees of the Avis P. Polson Revocable
Trust, dated April 9, 1975, as Lessor, and Zone Exploration, Inc., as Lessee, to wit:
DESCRIPTION OF LANDS
Township 24 North. Ranges 112 and 113 West. 6th PM
Resurvey Lot #43, also described as Resurvey Tract #43 (1,072.96), being formerly described as
Lot 7, S/2NE/4, E/2SW/4, SE/4NW/4 and NW/4SE/4 of Section 6; and Lot 1, NE/4NW/4
of Section 7, Township 24 North, Range 112 West, 6th PM; and S/2NW/4, SW/4, S/2SE/4
of Section 1; Lot 3, S/2NE/4, SE/4NW/4, E/2SE/4, NW/4SE/4 and NE/4SW/4 of Section
2; and N/2NE/4 of Section 12, Township 24 North, Range 113 West, 6th PM.
Township 24 North, Ran :(e 112 West, 6th PM
Section 4: Lots 3, 4, 5, 8, 9 and 10
Section 5: Lots 1 and 8
Section 8: Lot 1
Section 9: Lot 2
Township 25 North, Ran :(e 112 West, 6th PM
Section 34: Lots 3, 4, E/2NE/4, N/2SE/4
Section 35: Lots 6, 7, W/2NW/4
EXCEPTING THEREFROM TIlE FOLLOWING PARCELS OF LAND:
Three parcels of land deeded for the right-of-way for Wyoming State Highway 89, to Lincoln
County, Wyoming, said deed recorded on November 3, 1937, in Book 18 of Deeds, Page 472, and
later redescribed in deed recorded on January 25, 1938, in Book 21 of Deeds, Page 75, records of
Lincoln County, Wyoming, said parcels together containing 36.44 acres, more or less.
Containing 1,717.65 acres, more or less.
Lincoln Co., Wyoming
SIGNED FOR IDENTIFICATION
~~~T~
A vis P. Polson Revocable Trust,
dated April 9, 1975
, ?:!l4ádl'~
Merrill Rees, rustee of the
Avis' P. Polson Revocable Trust,
dated April 9, 1975
. ',",
Exhibit "A" - Page 1 of 1
~
-
-
-
Exhibit "B" - Page 1 of 1
x /ll¡,~*(¿ N<~
Merrill ees; Trustee of the
Avis p, Polson Revocable Trust,
dated April 9, 1975
Marlin K. Jensen, Trust¢ of the
Avis P. Polson Revocable Trust,
dated April 9, 1975
lltøtit
SIGNED FOR IDENTIFICATION
2. This Lease is subject to that certain Letter Agreement dated June 15,2001, between Lessor and Lessee,
1. In addition to Lessee's right to pool or combine acreage as described in this Lease, if Lessee at any time
should include all or any part of the acreage covered by this Lease in a Unit or cooperative Operating
Agreement, Lessee shall have the right to include Lessor's royalty interest in said Agreement and thereupon
said Agreement shall exclusively control the drilling, operating and producing of such acreage, anything to
the contrary in this Lease notwithstanding. The commencement and conduct of drilling operations on any
part of the lands included in such Agreement shall be deemed to comply with and satisfy all provisions of
the Lease relative to commencement and conduct of drilling operations. If oil, gas or other hydrocarbons
are found in paying quantities on any of the tracts of land included in such Agreement, whether or not on
lands included in this Lease, the royalty payments shall be paid only upon the portion of such production
which is allocated under said Agreement to lands covered by this Lease; and this Lease shall remain in force
as long as oil, gas or other hydrocarbons are or can be produced. Any Agreement made by Lessee under
this provision shall be in writing, and Lessee shall furnish Lessor with a copy of the signed Agreement.
NOTWITHSTANDING ANYTIIING CONTAINED HEREIN TO THE CONTRARY,
ADDITIONAL TERMS AND CONDITIONS
Attached to and made part of that certain Oil and Gas Lease dated June 21, 2001, but effective
July 20,2001, between Marlin K. Jensen and Merrill Rees, Trustees of the Avis P. Polson Revocable
Trust, dated April 9, 1975, as Lessor, and Zone Exploration, Inc., as Lessee, to wit:
EXHIBIT "B"
.., A ')
J <.I .J
. ); t \ 1~.11'1 r" ,,') (}
'J ,) ìI "1'",' , oJ
~