HomeMy WebLinkAbout930653
OIL AND GAS LEASE
OOO~92
This Oil and Gas Lease ("Lease") is made effective the ~ day of June. 2007, by and between
Roland C, Willis and wife. Linda L. Willis. whose address is POBox 281 Cokeville. WvomiDlf 83114 ("Lessor", whether one or more) and Fitzsimmons, LLC. whose
address is 2201 Cabin Court Gillette, WY 82718 ("Lessee").
WITNESSETH, For and in consideration ofTEN DOLLARS, the covenants and agreements contained herein, and other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, Lessor does hereby grant, demise, lease and let exclusively unto said Lessee, with the exclusive rights for the purposes of
mining, exploring by geophysical and other methods and operating for and producing thereftom oil and all gas of whatsoever nature or kind, and laying pipelines, telephone and
telegraph lines, building tanks, plants, power stations, roadways and structures thereon to produce, save and take care of said products and the exclusive surface and subsurface
rights and privileges related in any manner to any and all such operations, and any and all other rights and privileges necessary, incident to, or convenient for the operation
alone or conjointly with neighboring land for such purposes, all that certain tract or tracts of land situated in LINCOLN. Wyoming, described as follows, to-wit:
I
SEE EXlDBIT "A" ATTACHED TO AND MADE A PART HEREOF FOR DESCRIPTIVE PURPOSES.
and containing 1539.63 acres, more or less, (the "Premises").
I. It is agreed that this Lease shall remain in force for a term of five (5) years fTom this date ("Primary Term") and as long thereafter as oil or gas of whatsoever nature or kind is
produced trom the Premises or on acreage pooled or unitized therewith, or operations are continued as hereinafter provided. If, at the expiration of the Primary Term, oil or gas is not
being produced trom the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling, reworking or other operations calculated to obtain or restore
production from the leased premises thereon, then this Lease shall continue in force so long as such operations are being continuously prosecuted. Operations shall be considered to be
continuously prosecuted if not more than one hundred eighty (180) days shall elapse between the completion or abandonment of one well and the beginning of operations for the drilling
of a subsequent well. If after discovery of oil or gas on the Premises or on acreage pooled or unitized therewith, the production thereof should cease fTom any cause after the primary
term, this Lease shall not terminate if Lessee commences additional drilling, reworking operations within one hundred eighty (180) days fTom date of cessation of production or fTom date
of completion of dry hole, completion or workover operation. If oil or gas shall be discovered and produced as a result of such operations at or after the expiration of the Primary Term,
this Lease shall continue in force so long as oil or gas is produced trom the Premises or on acreage pooled or unitized therewith.
2. This is a PAID-UP LEASE. In consideration of the payment made herewith, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein, to commence
or continue any operations during the primary term, Lessee may at any time or times during or after the Primary Term surrender this Lease as to all or any portion of the Premises 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 obligations thereafter accruing as to the acreage surrendered.
3. The royalties to be paid by Lessee are:
(a) On oil and other liquid hydrocarbons, ONE-SIXTH (l/6~ of that produced and saved fTom said land, the same to be delivered at the wells, or to the credit of Lessor into the
pipeline to which the wells may be connected; Lessee may trom time to time purchase any royalty oil in its possession, paying the market price therefore prevailing for the field where
produced on the date of purchase; (b) on gas and the constituents thereof produced trom said land and sold or used off the premises or in the manufacture of products therefTom, the
market value at the well of ONE-SIXTH (1/6111) of the product sold or used. On product sold at the well, the royalty shall be ONE-SIXTH (l/~ of the net proceeds realized fTom such
sale. All royalties paid on gas sold or used off the premises or in the manufacture of products theretrom will be paid after deducting trom such royalty Lessors proportionate amount of all
post-production costs, including but not limited to gross production and severance taxes, gathering and transportation costs fTom the wellhead to the point of sale, treating, compression,
and processing. On product sold at the well, the royalty shall be ONE-SIXTH (1/~) of the net proceeds realized trom such sale, after deducting trom such royalty Lessor's proportion(lte
amount of all of the above post-production costs and expenses, if any. 'II):
4. Where gas fTom a well capable of producing gas is not sold or used after the expiration of the Primary Term, Lessee shall payor tender as royalty to Lessor at the address set
forth above One Dollar per year per net mineral acre, such payment or tender to be made on or before the anniversary date of this Lease next ensuing after the expiration of ninety (90)
days trom 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.
5. If Lessor owns a lesser interest in the Premises than the entire and undivided fee simple estate therein, then the royalties (including any shut-in gas royalty) herein provided for
shall be paid Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee.
6. Lessee shall have the right to use, tree of cost, gas, oil and water produced on the Premises for Lessee's operations thereon, except water trom the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth.
8. No well shall be drilled nearer than 200 feet to the house or barn now on the Premises without written consent of Lessor.
9, Lessee shall have the right at any time to remove all machinery and fixtures (including casing) Lessee has placed on the Premises.
10. The rights of the Lessor and Lessee hereunder may be assigned in whole or part. 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 establish a complete chain
of record title fTom Lessor, and then only with respect to payments thereafter made. No other kind of notice, whether actual or constructive, shall be binding on Lessee. No present or
future division of Lessor's ownership as to different portions or parcels of the Premises 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. Ifall or any part of this Lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner.
II. Lessee, at its option. is hereby given the right and power at any time and fTom time to time as a recurring right, either before or after production, as to all or any part of the
Premises and as to anyone or more of the formations thereunder, to pool or unitize the leasehold estate and the mineral estate covered by this Lease with other land, lease or leases in the
immediate 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 such other land, lease or leases. Likewise units previously formed to include formations not producing oil or gas, may be reformed to
exclude such non-producing formations. The forming 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, reworking or dewatering operations or a well shut in for want ora market anywhere on a unit which includes all or a part of this Lease
shall be treated as if it were production, drilling, reworking or dewatering operations or a well shut in for want of a market under this Lease. In lieu of the royalties elsewhere herein
specified, including shut-in gas royalties, Lessor shall receive royalties on production trom such unit only on the portion of such production allocated to this Lease. In addition to the
foregoing. Lessee shall have the right to unitize, pool, or combine all or any part of the Premises as to one or more of the formations thereunder with other lands in the same general area
by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, fTom 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 conform to the terms, conditions, and provisions of such
approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this Lease, express or implied, shall be satisfied by
compliance with the drilling and development requirements of such plan or agreement, and this Lease shall not terminate or expire during the life of such plan or agreement. In the event
that the Premises or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefTom is allocated to
different portions of the land covered by said plan, then the production 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 produced fTom the particular tract of land to which it is allocated and not to any other tract of land; and royalty payments to be made hereunder to
Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee
and approved by any governmental agency by executing the same upon request of Lessee.
12. All express or implied covenants of this Lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be terminated, in
whole or in part, nor Lessee held liable in damages, for failure to comply therewith if compliance is prevented by, or if such failure is the result of, any such Law, Order, Rule or
Regulation. Any delay or interruption caused by storm, flood, acts of terrorism, act of God or other event of force majeure shall not be counted against Lessee. If, due to the above causes
or any cause whatsoever beyond the control of Lessee, Lessee is prevented fTom conducting operations hereunder, such time shall not be counted against Lessee, and this Lease shall be
extended for a period oftime equal to the time Lessee was so prevented, anything in this Lease to the contnuy notwithstanding.
13. Lessor hereby warrants and agrees to defend the title to the Premises and agrees that Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages,
taxes or other liens on the Premises, in the event of defàult of payment by Lessor, and be subrogated to the rights of the holder thereof, and the undersigned Lessors, for themselves and
their heirs, successors and assigns, hereby surrender and release all right of dower and homestead in the Premises. insofar as said right of dower and homestead may in any way affect the
purposes for which this Lease is made, as recited herein.
14. Should anyone or more of the parties named as Lessor herein fail to execute this Lease, it shall nevertheless be binding upon all such parties who do execute it as Lessor. The
word "Lessor," as used in this Lease shall 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 and assigns of Lessor and Lessee.
15. If at anytime within the primary term of this lease and while the same remains in force and effect, Lessor receives any bona fide offer, acceptable to Lessor, to grant an
additional lease covering all or part of the aforesaid lands. Lessee shall have the continuing option by meeting any such offer to acquire such lease. Any offer must be in writing, and must
set forth the proposed Lessee's name, bonus consideration and royalty consideration to be paid for such lease, and include a copy of the lease form to be utilized which form should reflect
all pertinent and relevant terms and conditions of the lease. Lessee shall have fifteen (15) days after receipt, fTom Lessor, of a complete copy of any such offer to advise Lessor in writing
of its election to enter into an oil and gas lease with Lessor on equivalent terms and conditions. If Lessee fails to notifY Lessor within the aforesaid fifteen (15) days period of its election
to meet any such bona fide offer, Lessor shall have the right to accept said offer.
16. Except as otherwise provided herein, at the end of the primary tenn of this Lease, this Lease shall tenninate and Lessee shall promptly release this Lease as to all
acreage lying outside of the spacing units established by the Wyoming Oil and Gas Conservation Commission or any other governmental agency having jurisdiction for each
well located on the leased premises or lands spaced therewith which is producing gas or water.
17. Lessee shall pay for all damage to roads, fences, improvements and growing crops caused by its operations hereunder, and will fill and level any pits and mounds,
remove all board roads and board road materials, level and fill all ruts, and restore the surface of the ground as near to its original condition as is reasonably practical within a
reasonable period of time after cessation of operations at each well location on the leased premises.
RECEIVED 6/25/2007 at 1:32 PM
RECEIVING # 930653
BOOK: 663 PAGE: 292
JEANNE WAGNER
LINCOLN COUNTY CLERK v¡::....uERER. WY
r ''-1 ïUb~..j
OOO~93
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
æ~c\U)~
Roland C. Willis
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L nda L. Willis
STATE OF
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UNIFORM ACKNOWLEDGEMENT
COUNTY OF ~'(' ~ )
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BEFORE ME, the undersigned authority, a Notary Public, on this day personally appeared1Íilal'\d (;.[1 'ì: 1:5 't- ~~ 1"\ ~(l ;j J, J; I fl's. to me
known to be the person(s) who executed this within and foregoing instrument, and acknowledged to me that he/she executed the same.
Given under my hand and official seal, this the ï day of --d ( 1. N1 0 )
,2007.
My Commission Expires: II - If -d OC!j'{
,
N_Publico ) Q'ju' èf ~
Address: ) 0 1(f' to lûJ\J (1 tQ lJ
-_~~M.._..._____.__._..._...
: I'~ Notary Public I
: ~ ~ DIXIE l. NELSON :
I ~ III,. . Q P.O. Box 97. 501 N. Main Street I
I II ~ Laketown, UT 84038 :
I ~ ~ My Commission Expires I
: "." November 11,2007 I
.......-.---__~J!~~!~~~__.~:
EXHIBIT" A"
0930653
OOO~94
ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL, GAS AND MINERAL LEASE DATED JUNE 5,2007
BETWEEN, ROLAND C Willis AND WIFE LINDA L WILLIS AS LESSORS, AND FITZSIMMONS LLC. AS LESSEE.
Township 22 North, Range 120 West. 6th P. M.
Partial of land situate in S 1,2,10,11,& 12 of T 22N R 120 W 6th PM, described as follows:
Beginning at comer 5 of Resurvey Tract No. 49 from whence the Northeast comer of said S10
bears North 1627' East 69.76 chains; thence North 20.20 chains to corner No.6 of tract 49;
thence East 20.00 chains to corner No. 7 of tract 49; thence North 60.60 chains to comer No.8 of
tract 49; thence East 20 chains to corner No.9 of tract 49; thence North 06 00' East 20.56 chains
to comer No. 10 of tract 49: thence East 60 chains to comer No 1 of tract 49; North 06 00' East
20.56 chains to a point; thence East 32.54 chains to a point in the center of channel through
which Bear River flows; thence on a meander of the central thread of Bear River; South 48 24'
West 12.96 chains; South 1516' West 6.84 chains; South 1238' East 17.83 chains; South 79 09'
West 8.45 chains; North 45 00' West 5.37 chains; North 2300' West 18.79 chains; South 1826'
West 7.59 chains; South 1524' East 17.32 chains; South 1407' West 18.04 chains; North 83 51'
West 6.54 chains; South 46 38' East 7.43 chains; South 1425' East 3.61 chains; South 23 35'
West 17.24 chains; South 4214' West 10.26 chains; South 62 54' East 9.44 chains; North 5154'
East 6.48 chains North 7630' East 5.14 chains; North 7134' East 1.90 chains; South 25 57' East
4.11 chains; South 1553' West 12.79 chains; North 58 00' West 10.38 chains; South 33 09'
West 11.71 chains; South 24 24' West 11.86 chains; South 27 09' West 11.71 chains; South
2709' West 11.71 chains; South 2424' West 11.86 chains; South 27 09' West 6.97 chains to end
of said meander, the intent being to deed to the center of said channel, as measured midway
between the top of the bank escarpments at normal ground levels; thence West 88.97 chains to
point of begging, containing 916.93 acres more or less.
Township 22 North, Range 120 West, 6th P. M.
A partial of land In S 2,S 3, S 10 and S11 in T22 N R 120, more partIcularly described as Follows:
Beginning at the Northeast comer of Section 2, T 22 R 120 W of the 6th PM, Lincoln County, Wy,
thence SOO 10' 41" E a distance of 1308.64 feet; thence S89 35'33" W a distance of 1319.87 feet
thence S 0023'52" E a distance of 1303.85 feet; thence S 89 54' 54" W a distance of 2640.68 feet;
thence S 0011'16" W a distance of 1719.96 feet; thence S 89 56'53" W a distance of 1299.18 feet 0
to a corner 8 of tract No. 49 of the Resurvey of Township 22 N R 120 W of the 6th PM; thence S
00 01'00" E a distance of 4027.75 feet; thence N 87 56'30" W a distance of 1315.49 feet to comer
number 6 of tract 49 of the Resurvey of T 22 N R 120 W of the 6th PM; thence S 00 OO'OO"E
distance of 1367.14 feet to comer number 5 of tract 49 of the Resurvey ofT22 N R 120 W;
thence N 89 32' 08" W a distance of 753.68 feet; thence N 1847' 07" E a distance of 3677.25 feet;
thence N 1710' 00" E a distance of 737.07 feet; thence N 1823' 21" E a distance of 4791.86 feet;
thence N 33 37'14" E a distance of 1152.43 feet more or less to the North boundary line of
Section 2, T 22 N R 120 W ofthe 6th PM; thence S 89 57' 07" E along the North boundary line
of said Section 2 a distance of 3768.40 feet to the point of beginning of this description.
containing 359.62 acres
Township 22 North, Range 120 West, 6th P. M.
A parcel of land situate In Sections 14,15,22, and 23 of Township 22 North, Range 120 W
6th PM In Lincoln County, Wyoming. Described as follows:
Beginning at a point on the Eastern boundary of the holdings of Lawrence Johnson from
whence the Southeast Comer of said section 15 bears South 7650' East 39.22 chains; thence
East 86.82 chains to a point situate in center of channel Bear River flows; thence on a
meander of the central thread of Bear River, South 18 57' West 1.37 chains ; South 28 43' West
8.32 chains ;North 7814' West, 4.90 chains; South 8024' West 7.20 chains; South 3124' East
6.91 chains; South 66 02' East 6.89 chains; South 40 29' East 5.39 chains; South 27 39' West 4.73
chains; South 82 36' West 7.76 chains; South 3419' West 7.63 chains, South 5524' East 9.68
chains to the end of said meander, the Intent being to deed to the center of said channel, as
measured midway between the banks of Bear River from top of said bank escarpments at
normal ground levels; thence West 58.53 chains along the North boundary of the holdings
of John Seday; thence North 26 20' west 19.11 chains to the point of beginning
containing 263.08 acres more or less.