HomeMy WebLinkAbout932320
OIL AND GAS LEASE
This Oil and Gas Lease ("Lease") Is made effective the ---1tt.. day of AU2USt. 2007, by and between
Joseub J. Bucklev and wire. Janet 1Jueldev. whose address is P. O. Box 206 Cokeville. Wv\!min2 83114 ("Lessor", wbether one or more) and Fitzsimmons, LLC.
whose address is 2201 Cabin Court Gillette, WY 82718 ("Lessee").
WITNESSETH, For and in consideration of TEN 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 ofland situated in LINCpLN . Wyoming, described as follows, to-wit;
Township 23 North. Rane:e 119 West. 6th P. M.
000455
Section 32: Lot 12, Lot 14, part of Lot 17 and part of the WII2SEl/4, being all land lying North of the road going East and West to the East
boundary ftom U. S. Highway 30 including the Green Machine Shed. (containing 66.75 acres, more or less.)
and containing 66.75 acres, more or less, (the "Premises'').
1. It is agreed that this Lease shall remain in force fur a tenn of five (5) years fi'om this date ("Primary Tenn") and as long thereafter as oil or gas of whatsoever nature or kind is
produced fi'om the Premises or on acreage pooled or unitized therewith, or operations arc continued as hereinafter provided. If, at the expiration of the Primary Tenn, oil or gas is not
being produced fi'om the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in dòlling, reworking or other operations calculated to obtain or restore
production ftom the leased premises thereon, then this Lease sh¡¡1l continue in force so long as such operations are being continuously prosecuted. Operations shall be considered to be
continuo~ly 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 dòlling
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 fi'om any cause after the primary
tenn, this Lease shall not tenninate if Lessee commences additional drilling, reworking operations within One Hundred Eighty (180) days fi'om date of cessation of production or fi'om
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 fi'om 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 tenn. Lessee may at any time or times during or after the Primary TèmI 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 fUing 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, O~IXTH (I/61k) of that produced and saved fi'om said land, the same to be delivered at the wells, or to the credit of Lessor into the
pipeline tQ which the wells may be connected; Lessee may fi'om 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 fi'om said land and sold or used 01I the premises or in the manufacture of products thereftom, the
market value at the well of ONE -SIXTH (I/~ of the product sold or used, On product sold at the well, the royalty shall be ONE-SIXTH (1I61k) of the net proceeds realized fi'om such
sale. All royalties paid on gas sold or used 01I the premises or in the manufacture of products therefi'om will be paid after deducting fi'om such royalty Lessors proportionate amount of all
post-production costs, including but not limited to gross production and severance taxes, gathering and transportation costs fi'om the wellhead to the point of sale, treating, compression,
and processing. On product sold at the weIl, the royalty shall be ONE-SIXTH (I/61k) of the net proceeds realized fi'om such sale, after deducting trom such royalty Lessor's proportionate
amount of all of the above post-production costs and expenses, if any.
4. Where gas fi'om a well capable of producing gas is not sold or used after the expiration of the Primary Tenn, Lessee shall payor tender as royalty to Lessor at the address set
forth above One DoIlar 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 fi'om me date such well is shut in and thereafter on or before the anniversary date of this Lease during the period such weIl 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
shal1 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, ftee of cost, gas, oil and water produced on the Premises for Lessee's operations thereon, except water fi'om 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.
IO. 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 infonnation necessary tQ 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 dilIerent 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, If all 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 fi'om 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 fonnations 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 fonned to include fonnations not producing oil or gas, may be reformed to
exclude such non-producing formations. The fonning or refonning of any unit shall be accomplished by Lessee executing and f1Iing 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 ofa 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 weIl 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 fi'om 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 IlD1ds in the same general area
by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, fi'om time to time, with like approval, to moditÿ, change or tenninate
any such plan or agreement and, in such event, the tenns, conditions and provisions oflhis Lease shall be deemed modified to confonn to the tenns, conditions, and provisions of such
approved cooperative or unit plan of development or operation and, particularly, all driIling 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 tenninate 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 therefi'om is allocated to
dilIerent 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 fi'om 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 aIloçated. Lessor shall fonnally 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 shalI be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be tenninated, 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 fi'om conducting operations hereunder, such time shall not be counted against Lessee, and this Lease shall be
extended for a period of time equal to the time Lessee was so prevented, anything in this Lease to the contrary 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 default 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 anyti¡ne within the primary tenn of this lease and while the same remains in force and elIect, Lessor receives any bona fide olIer, 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 olIer to acquire such lease. Any olIer must be in writing, and must
set forth the prop¡)sed Lessee's name, bonus consideration and royalty consideration to be paid for such lease, and include a copy of the lease fonn to be utilized which fonn should reflect
all pertinent and relevant tenns and conditions of the lease. Lessee shall have ftfteen (IS) days after receipt, fi'om Lessor, of a complete copy of any such olIer to advise Lessor in writing
of its election to enter into an oil and gas lease with Lessor on equivalent tenns and conditions. If Lessee fails to notitÿ Lessor within the aforesaid fifteen (15) days period of its election
to meet any such bona fide olIer, Lessor shall have the right to accept said olIer.
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 wil1 fill and level any pits and mounds,
remove all board roads and board road materials, level and fiJJ 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 8/20/2007 at 5:21 PM
RECEIVING # 932320
BOOK: 669 PAGE: 455
JEANNE WAGNER
LINCOLN COUNTY CLER' . ,-- -MERER, WY
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
~~~
Josep J. Buckley
~
~'
Ja·· t Buckley
STATEOFW~"ð
COUNTY OF j.', 'R.è.-I<' ~ 'C\
}
UNIFORM ACKNOWLEDGEMENT
ss.
}
4~/.
. ,/
000456
BEFORE ME, the undersigned authority, a Notary Public, on this day personally appeared
known to be the person(s) who executed this within and foregoing instrument, and acknowledged to me that he/she ex
'{\~
Given under my hand and official seal, this the ~ .- day of (tlt~ . 2007.
My Commission Expires: èc.::1 . I d l d èJj ~
. ~u..cf ~o tIle
Name PUblic:C'\.ftl)" \DCLuJ. Lili~\\
Address: ~ K~L~ Lù \
- ALtA MARIE WAtHEN
Wyøming f Lincoln
Notary P~b~Cml~~~~tYE~Plres
MY 8c,ober 12. 2008 t