HomeMy WebLinkAbout933518
RECEIVED 9/27/2007 at 4:33 PM
RECEIVING # 933518
BOOK: 673 PAGE: 596
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
OIL AND GAS LEASE 000596
THIS OIL AND GAS LEASE (this "Lease"), made and entered into as of the S day
of September, 2007, by and between Broadbent Land and Resources, LLC, whose address is
P.O. Box 58627, Salt Lake City, Utah 84158 ("Lessor") and Hoover & Stacy, Inc., whose
address is P. O. Box 2328, Cheyenne, Wyoming 82003 ("Lessee").
PRODUCERS 88 - Paid-Up
WITNESSETH
1. Lessor, for and in consideration of the sum ofTen Dollars ($10.00) and other
valuable consideration (including bonus consideration) in hand paid, the receipt and sufficiency
of which is hereby acknowledged, of the royalties herein provided and of the agreements of
Lessee herein contained, hereby grants, demises, leases and lets exclusively unto Lessee the
lands hereinafter described (the "Lands"), for the purpose of investigating, exploring, drilling
and mining for, producing, saving, taking, owning, transporting, storing, handling and treating
oil or gas (including all hydrocarbon gases), or both ("Leased Substances") and for injecting
water and other fluids, gas, air, and other gaseous substances into subsurface strata for reworking
operations or for enhanced recovery, repressuring, or recycling operations, but not otherwise,
together with any and all rights, privileges and easements useful for Lessee's operations
hereunder on said Lands, including but not limited to the following rights: to lay pipelines, to
build roads; and to construct tanks, pump and power stations, power and communication lines,
and other structures and facilities. The said Lands included in this Lease are situated in the
County of Lincoln, State of Wyoming, and are described as follows, to wit:
T20N-Rl19W
Section 1: Lots 1 and 7
Section 2: Lots 5, 6 and 7, NW1/4SEl/4
T21N-R118W
Section 20: El/2SEl/4, NEl/4
Section 21: Sl/2SWl/4, SEl/4
Section 32: SEl/4SWl/4
Section 33: Sl/2Sl/2
containing 890.59 acres, more or less
and including all Leased Substances underlying lakes, streams, roads, streets, alleys, easements
and rights-of-way which traverse said Lands. As to the estate created hereby, Lessor hereby
relinquishes, releases, and waives all rights under and by virtue of the laws of this state providing
for homestead exemption, dower, curtesy and other rights substitutive thereof. This Lease shall
cover all the interest in said Lands now owned by or hereafter vested in Lessor, even though
greater than the undivided interest (if any) described above. For the purpose of calculating any
{00018168,2}
000597 '
payments based on acreage, Lessee, at Lessee's option, may act as if said Lands and its
constituent parcels contain the acreage above stated, whether they actually contain more or less.
It is the intent of Lessor and Lessee for Lessor to lease to Lessee, and for Lessee to lease from
Lessor, all of the Lands described above for the purposes set forth herein. In the event, on the
date hereof, Lessor does not own all of the Lands described above on the date hereof, and
acquires such Lands after the date hereof and at any time during the term of this Lease as such
term may be extended by payment of an additional bonus, production, or otherwise, then this
Lease shall be deemed to cover all such after-acquired Lands and Lessee shall acquire all rights
hereunder in and to such after-acquired Lands upon their acquisition by Lessor.
2. Subject to the other provisions herein contained, this Lease shall remain in force for a
period of three (3) years from the date hereof (the "Primary Term"), and thereafter so long as
Leased Substances or anyone or more of them is being produced from said Lands in paying
quantities or any operation permitted hereunder is being conducted on said Lands or this Lease is
continued in force by reason of any of the other express provisions hereof. Notwithstanding the
foregoing, the Primary Term may be extended, at the option of Lessee, for an additional three (3)
year period commencing on the last day of the first three (3) year Primary Term (such extension,
the "Extended Term"). Such option shall be exercised, if at all, by the delivery to Lessor, no
later than the last day of the initial three (3) year Primary Term, of both (a) Lessee's written
notice of its intent to extend the Primary Term for an additional three (3) years, and (b) Lessee's
payment in immediately available funds to Lessor of an additional bonus payment equal to
$100.00 per acre of Lands covered hereby on the expiration date of the Primary Term.
3. Subject to the right of election reserved to Lessor below to take its share of
production in kind, the royalties to be paid by Lessee are sixteen and two-thirds percent
(16.667%) of eight-eighths of: (a) the greater of the market value at the well or the amount
realized from the sale of oil and liquid petroleum products recovered at the well and (b) the value
of all gas produced and saved from the Lands, delivered free and clear of all costs at the tailgate
of the plant to which the gas is delivered or, for gas that is not processed, at the inlet of the
market pipeline to which the same is delivered, said value being determined as follows: (i) for
any liquid hydrocarbons recovered at the well, the greater of the market value at the well or the
amount realized from the sale of such liquid hydrocarbons; (ii) for gas used by Lessee off the
Lands, the Gas Market Price of the gas at the point so used; (Hi) for gas that is sold by Lessee but
not processed, the Gas Market Price at the inlet of the market pipeline to which such gas is
delivered; and (iv) for gas sold by Lessee and delivered for processing, the Gas Market Price of
the residue gas at the tailgate of the plant to which the gas is delivered, plus the market value at
the plant of the products recovered when such gas is processed; provided that in the event gas is
processed in any facility or plant in which Lessee, or any subsidiary, parent or affiliate of Lessee,
has, directly or indirectly, an ownership or operating interest, then the value of such gas shall not
be less than: (x) the combined values at the plant of all products extracted therefrom and the
residue gas, (y) the Gas Market Price of such gas, or (z) the value Lessee is receiving for its
production, whichever value is greater, and provided further that the royalty shall never be based
on an amount realized from such sale that is less than the amount which Lessee is receiving for
its production. As used herein the term "Gas Market Price" shall mean the arithmetic average of
the prices reported in the first issue of the month of delivery for the price references included in
{00018168,2}2
00059l
the Market Price Index. As used herein, the term "Market Price Index" for a particular point of
delivery shall mean the Colorado Interstate Gas Company, Rocky Mountains Index as reported
in "Inside F.E.R.C.'s Gas Market Report" or any successor publication thereto. For avoidance of
doubt, royalty is to be paid on all payments received by Lessee under or as a result of a gas
purchase contract, including, but not limited to, reservation charges and, when gas for which
payment has been made earlier is eventually produced, take-or-pay or contract settlement
proceeds and amounts paid for gas not taken.
Lessee shall have free use of gas from the Lands for operations on the Lands, and the
royalty on gas shall be computed after deducting any production so used. Lessor shall bear all
severance taxes levied against its royalty percentage of all production hereunder. The royalties
payable under this Lease shall be free and clear of costs or deductions for exploration, drilling,
development, operation and production, including, but not limited to, costs of separating by
mechanical means, gathering, dehydrating, compressing, processing, treating, storing,
transporting, marketing, and delivering, or any other charge or deduction whatsoever whether of
the same or different character unless expressly authorized and agreed to in writing between
Lessor and Lessee.
On or before the l80th day after the first day of the month following the date of first sales
of any of the Leased Substances, Lessee shall mail or deliver to Lessor an itemized statement
showing the total production of each Leased Substance, including products extracted from gas,
during the preceding calendar month, the royalties payable thereon, the data used to compute
such royalties, an explanation of the manner in which such royalties were determined and
computed and any other information required by applicable statute or regulation (collectively,
the "Statement") together with the royalties due hereunder for the period of tiÌne covered by the
Statement. Thereafter, on or before the 30th day of each month following the month of
production, Lessee shall deliver the Statement and royalties due hereunder for the period of time
covered by the Statement. In recognition of the business necessity of Lessor receiving the
Statements in a timely fashion, Lessee, by acceptance of this Lease, and in addition to any other
remedy available to Lessor, agrees to pay as partial liquidated damages to Lessor, the sum of
Two Hundred Dollars ($200.00) for each month or portion thereof that Lessee fails to furnish the
Statements in a timely manner, together with interest at the highest rate allowed by law plus all
costs of collection, including attorneys' fees. In addition, Lessor shall have the right to audit and
review all information (including without limitation, all books, records, contracts,
correspondence, run tickets, evidence of sales and shipments, reports and analyses, and
electronically stored information and data) possessed by or available to Lessee which may be
pertinent to the determination of the payment of royalty or other amounts due under this Lease,
at the office which such iiûormation is maintained. Such information shall include that
submitted to third parties (including government entities) respecting production from the leased
premises or lands pooled therewith and relating to any royalty or to any tax based upon the value
of production. In conjunction with any audit Lessee shall, to the fullest extent practicable,
assemble and present the information so that it is complete. If for any reason whatsoever
royalties hereunder are not paid within fifteen (15) days after the same are due, then Lessor shall
provide Notice to the Lessee as described in clause 18 hereof. If Lessee fails to comply with the
provisions of clause 18 within the time provided for therein, then Lessor shall have the option to
{00018168,2}3
000599
terminate this Lease and be relieved from any obligation hereunder unless there is a good faith
dispute as to the amount of royalties due and provided all undisputed royalties have been paid
when due. Lessor's right to terminate this Lease is exercisable by filing with Lessee and of
record a notice of termination. In addition, all such unpaid royalties shall bear interest monthly
at the prime rate in effect at Citibank, New York, plus 2% from the date due until paid. THE
PROVISIONS OF THIS SECTION 3 SHALL SURVIVE ANY TERMINATION OF THIS
LEASE.
4. Lessor expressly reserves the right, at any time and from time to time, to take in kind
or separately dispose of its proportionate share of (i) liquid hydrocarbons recovered at the well,
saved into storage tanks on the Lands; (ii) products recovered in a processing plant, into storage
tanks or onto storage sites at the plant; and (iii) residue gas, at the tailgate ofthe plant, if
processed, or (iv) gas, at the inlet of the market pipeline, if not processed. In the event of such
election with respect to liquid hydrocarbons recovered at the well and products recovered in the
plant, Lessor shall give to Lessee not less than sixty (60) days notice of its election and shall take
its proportionate share in kind for a period of not less than six (6) months following the
termination of said sixty (60) day period. Any deliveries of production are to be made from
Lessee's facilities at times and amounts which equitably adjust deliveries between the parties.
With respect to residue gas, at the tailgate of the plant or unprocessed gas at the inlet of the
market pipeline to which the gas is delivered, Lessee shall give Lessor notice if it intends to enter
into a gas contract on its share ofthe gas, and Lessor shall have a period of fifteen (15) days
from receipt of a copy of the gas sales agreement which Lessee is willing to execute to notify
Lessee in writing that Lessor elects to take its proportionate share in kind.
5. If at any time, either before or after the expiration of the Primary Term or, if
applicable, the Extended Term, of this Lease, there is a well capable of producing oil or gas on
the Lands covered by this Lease, or on other lands with which lands covered by this Lease are
pooled or unitized, but the well is shut-in, whether before or after production therefrom, and this
Lease is not being maintained otherwise as provided herein, this Lease shall not terminate
(unless released by lessee) and it shall nevertheless be considered that oil or gas is being
produced from lands covered by this Lease during all times while the well is so shut-in. Lessee
shall use reasonable diligence to market the oil or gas capable of being produced from such shut-
in well, but shall be under no· obligation to market the oil or gas under terms, conditions or
circumstances which, in lessee's judgment exercised in good faith, are unsatisfactory. When the
Lease is continued in force in this manner, lessee shall payor tender to the lessor or lessor's
successors or assigns, an amount equal to $1.00 per year per net mineral acre covered by the
Lease. Such payments shall be made on or before the shut-in royalty payment date, as defined
below, next occurring after the expiration of one hundred twenty (120) days from the date the
well was shut-in, unless prior to such date oil or gas from the well is sold or used or the Lease is
otherwise maintained as provided herein. In like manner, on or before each succeeding shut-in
royalty payment date while such well remains shut-in, lessee shall make payment of shut-in
royalty in the same amount and manner. The term "shut-in royalty payment date" shall mean the
anniversary date of this Lease. Any shut-in royalty payment may be made by cash, draft or
check, mailed or tendered on or before the shut-in royalty date. Lessee's failure to payor tender,
or properly payor tender, any such sum shall render lessee liable for the amount due but it shall
{00018168.2}4
000600
not operate to terminate the Lease. Notwithstanding the foregoing provisions, this Lease may
not be maintained by shut-in payments more than three (3) years during any five (5) year period.
6. This is a Paid-Up Lease and Lessee shall not be obligated during the Primary
Term or, if applicable, the Extended Term, to make any further payments or to commence or
continue any operations hereunder in order to maintain this Lease in force. Any money payable
hereunder may be paid in cash or by check, mailed or delivered to Lessor. Payments or tenders
due or payable under the terms of this Lease, other than royalties on actual production" may be
made by mailing or delivering cash or Lessee's check or draft to Lessor, Lessee may payor
tender such payments jointly to the credit of all parties having any interest hereunder. Lessee
may at any time or times surrender this Lease as to all or any portion of said Lands by mailing or
tendering to Lessor or by filing for record a release or releases, and be relieved of all obligations
thereafter accruing as to the acreage surrendered.
7. If any operations or production of a Leased Substance or any combination of such
activities shall occur hereunder and if at any time or times after the Primary Term or, if
applicable, the Extended Term, within three (3) months before expiration of the applicable Term,
such operations or such production or any combination of such activities shall cease for any
cause so that none of such activities continues, such cessation shall not cause this Lease to
terminate and this Lease shall remain in force if and so long as (a) payments are made under
paragraph 3 (if applicable) or (b) any operation or production of a Leased Substance is
commenced or resumed hereunder during a period for which any such payment was made or
within ninety (90) days after cessation of the last of the operations or production that had
occurred hereunder or (c) the cause of cessation is covered by paragraph 10 hereof. Wherever
used in this paragraph 7, or wherever else used in this Lease unless the context requires
otherwise, the meaning of the word "operations" shall without limitation include: access road
and wellsite preparation, drilling, digging and boring operations, well testing, equipping,
producing operations, the drilling of a dry hole or successive holes before or after production is
obtained, plugging back, reworking operations, deepening operations and remedial operations in
connection with any of the foregoing.
8. At the expiration of the Primary Term or, if applicable, the Extended Term, this Lease
shall terminate as to all Lands which are not located in a drillsite spacing unit (as hereinafter
defined) in which there is a well on the Lands or on land pooled therewith, producing oil or gas
in paying quantities, or a shut-in gas well, and in any such producing drillsite spacing unit or
units, this Lease shall terminate as to those depths lying below the stratigraphic equivalent of the
deepest producing horizon in each drillsite spacing unit of land. For purposes hereof, drillsite
spacing unit is defined as the land included in the drilling and production unit established for the
well or attributed to the well by the state or federal regulatory authority having jurisdiction; if no
unit or spacing rule exists, then drillsite spacing unit shall be defined as the forty (40) acre tract
surrounding an oil well or one hundred sixty (160) acre tract surrounding a gas well. If Lessee is
engaged in actual drilling or reworking operations on the leased premises or land pooled
therewith at the expiration of the Primary Term, or, if applicable, the Extended Term, this
provision shall be suspended for so long as Lessee continues such drilling or reworking
operations on the Lands or land pooled therewith with no cessation of more than ninety (90)
{OOOI8168.2}5
000601.
consecutive days between the completion or abandonment of such drilling or reworking
operations on one (1) well, and the commencement of actual drilling or reworking operations on
the next well; provided, further, that irrespective of any such continuous drilling or reworking
operations, the termination of this Lease as to nonproducing land and depths shall not be
suspended for more than two (2) years from the expiration of the Primary Term or, if applicable,
the Extended Term hereof. If the Lands are included in a Federal Unit then for the purposes of
this provision the references to land pooled with the Lands shall include only that land which is
included in an approved participating area.
9. The rights of Lessor hereunder may be assigned in whole or in part. This Lease may
not be assigned by Lessee in whole or in part, without the prior written consent of Lessor, which
consent shall not be unreasonably withheld. Any attempted assignment by Lessee of this Lease
without such consent shall be void and of no effect. Any assignment of this Lease by Lessee, in
whole or in part, shall not be valid as to Lessor until Lessor shall have been furnished a true and
correct certified copy of such assignment. 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 from Lessor, and then only with respect to
payments thereafter made. No other kind of notice, whether actual or constructive, shall be
binding on Lessee and Lessee may continue to make payments precisely as if no change had
occurred. No present or future division of Lessor ownership as to different portions or parcels of
said land shall operate to enlarge the obligations or diminish the rights of Lessee and Lessee's
operations may be conducted without regard to any such division. If all or any part of Lessee's
interest hereunder shall be assigned, no leasehold owner shall be liable for any act or omission of
any other leasehold owner.
10. Whenever as a result of any cause beyond Lessee's control (such as fire, flood, storm,
or other Act of God, governmental law, order, or regulation, labor disputes, war, or inability to
secure men, materials, permit(s), or transportation), Lessee is prevented or hindered from
exercising any of its rights hereunder, complying with any of the terms hereof or carrying out
any of its obligations hereunder, and such prevention or hindrance first occurs during the
Primary Term or, if applicable, the Extended term hereof, the obligations of Lessee hereunder
(excluding only its obligation to pay royalties hereunder on actual production), and the
conditional requirement for shut-in gas well payments under paragraph 3 hereof to perpetuate
this Lease, shall be suspended during the period of such prevention or hindrance and for 90 days
thereafter. The Primary Term or, if applicable, the Extended Term, shall be extended for a
period oftime equal to the period of such suspension and this Lease shall remain in full force and
effect during such period of suspension and during any such extension ofthe primary term.
Lessee may commence or resume the payment or tender of shut-in gas well payments after the
period of suspension by paying or tendering the proportionate part thereof for the lease year
remaining after such period of suspension.
If such prevention or hindrance first occurs after the Primary Term or, if applicable, the
Extended Term hereof, Lessee's obligations and the conditional requirement for shut-in gas well
payments under paragraph 3 hereof to perpetuate this Lease shall be suspended while Lessee is
{00018168.2}6
000602
so prevented or hindered and for a reasonable time thereafter. This Lease shall remain in full
force and effect during any such prevention or hindrance and for a reasonable time thereafter
provided that within such time, i.e., a reasonable time after the period of such prevention or
hindrance, Lessee commences or resumes operations hereunder or commences or resumes the
payment or tender of shut-in gas well payments by paying or tendering the proportionate part
thereof for the lease year remaining after such period of suspension.
11. In connection with operations for the production of oil and gas or either of them,
Lessee may at any time or times, either before or after production, pool, unitize, or communitize
for common development the leasehold estate and the mineral estate covered by this Lease
insofar as it covers the Lands, in whole or in part, and as to anyone or more of the stratum or
strata hereunder, with other lands and leases in the same area or field for the production of oil
and gas, or separately for the production of either, pur~uant to federal, State or local authority for
the conservation of oil, gas, and associated hydrocarbons, when in Lessee's judgment, it is
necessary to do so, and irrespective of whether authority similar to this exists with respect to
other lands or leases or it is advisable to comply with a law, rule, order or regulation of a
governmental authority having jurisdiction, or reduce or prevent economic waste, to protect
correlative rights, or to promote, encourage or accomplish the conservation of natural resources,
by filing for record an instrument so declaring subject to the following: (a) Units formed to
establish or comply with an orderly or uniform well spacing pattern for the production of oil or
gas shall allocate to the portion of this Lease included in any such unit a fractional part of all
production from any part of such unit in the proportion that the total number of acres covered by
this Lease included in such unit bears to the total number of acres included in such unit, and such
units shall not exceed 80 acres if for the production of oil and shall not exceed 640 acres if for
the production of gas, plus a tolerance of 10% in each instance, except that if the governmental
authority having jurisdiction by appropriate rule, order or regulation prescribes or permits or,
based on prior action of the applicable governmental authorities, may reasonably be expected to
prescribe or permit units of a larger size, the unit or units may be increased to the maximum so
prescribed or permitted or so reasonably expected to be prescribed or permitted; (b) Units formed
to accomplish a cycling, pressure maintenance, repressuring or secondary recovery program, or
any other cooperative or unit plan of development or operation involving multiple wells
(including exploratory units) must be approved by the governmental authority having jurisdiction
and shall allocate to the portion of this Lease included in any such unit a fractional part of
production from any part of such unit on one of the following bases: (i) the ratio between the
quantity of recoverable production allocable to the portion of this Lease included in such unit
and the total of all recoverable production allocable to such unit; or (ii) such other basis as may
be approved by the governmental authority having jurisdiction thereof. Any such unit so
established may be enlarged to include acreage believed to be productive or may be diminished
by excluding acreage believed to be nonproductive or may be diminished by excluding acreage
the owners of which fail or refuse to participate in the unit and, in the absence of current
production therefrom, any such unit may be abolished and dissolved by filing for record an
instrument so declaring. Instruments filed for record hereunder shall be filed in the public notice
records of the county in which the land is situated. Upon production from any part of any such
unit, Lessor herein shall be entitled to the royalties provided for in this Lease on only that
fractional part of unit production allocated to that portion of this Lease included in such unit.
{OOOI8168,2} 7
000603
Operations upon any such unit or projected to any part of any such unit from an off-unit drill site
or production from any part of such unit shall be treated and considered for all purposes of this
Lease, except payment of royalties, as operations upon or production from this Lease. Lessor
shall, upon the reasonable request of Lessee, set forth its consent to any cooperative or unit plan
of development or related operation adopted by Lessee and approved by any governmental
agency by executing the, applicable instruments.
12. If Lessor owns an interest in the Lands that is less than the entire fee simple estate, or
if this Lease covers less than Lessor's entire interest in the Lands, or if this Lease is released as
to any portions ofthe Lands or minerals therein or horizons thereunder, then the shut-in well
payments shall be reduced proportionately.
13. The rights granted under this Lease are granted WITHOUT WARRANTY OF ANY
KIND, EITHER EXPRESS OR IMPLIED, and without covenants oftitle, including, without
limitation, covenants to give possession or for quiet enjoyment.
14. Lessee agrees that it will, during the term hereof and thereafter, pay Lessor for and
indemnify, defend and hold Lessor harmless for, from and against any and all loss, damage,
liability, including plugging liability, cost or expense, including fines, penalties and reasonable
attorneys' fees and fees of experts and consultants, on account of injuries to or death of persons
or damage, including environmental, to property of any kind or the violation of any law or
regulation, arising wholly or partially out of or in connection with or resulting from any
operation, activity, facility or occupancy on the Lands or lands pooled therewith by Lessee
and/or its employees, agents, representatives, consultants, contractors, assignees, successors,
farmoutees or the breach of any provision of this Lease, except to the extent caused by the sole
negligence or willful misconduct of Lessor. In no event shall either party be liable to the other
for indirect, consequential or punitive damages, or for lost profits. THE PROVISIONS OF THIS
SECTION 14 SHALL SURVIVE ANY TERMINATION OF THIS LEASE.
15. Without limiting the generality of Section 14 hereof, Lessee shall pay either the
tenant or the surface owner (whichever is appropriate) for any and all damages to land,
structures, roads, fences, gates, cattle guards, trees, growing crops, irrigation or any other
facilities or improvements, equipment, wildlife, game, fish and livestock caused by construction,
operations, or maintenance of facilities, shall burry all pipelines below plow depth where they
cross cultivated lands, shall construct gates where necessary for crossing fenced lands and shall
keep gates in repair and closed. Lessee shall not permit any lien or other encumbrance to be
filed or to remain against the Lands as a result of operations hereunder. Regardless of whether
Lessor has consented to an assignment, farmout or other arrangement whereby Lessee consents
to drilling or other operations on the leased premises by a third party, Lessee shall be responsible
for any and all claims, demands, actions and causes of action or liens arising out of such
operations, whether arising in law, at equity or administratively.
Lessee shall repair and clean all ditches, roads, bridges, fences, pipelines and other
structures, facilities and improvements on the Lands which may be used, worn or damaged by
any operation hereunder, shall remove all debris resulting from any such operation, and shall
otherwise restore the leased premises to its original condition insofar as reasonably practicable.
{00018168,2}8
000604
No well shall be drilled within 200 feet of any building, railroad tracks or structure without
Lessor's written consent. Lessee shall maintain in good condition all fences, bridges and roads
on the Lands which are used or constructed by Lessee in its operations, and all such roads shall
be and remain private, not open to the public, except as otherwise prohibited by law, and will be
conspicuously posted as such by Lessee. THE PROVISIONS OF THIS SECTION 15 S~L
SURVIVE ANY TERMINATION OF THIS LEASE.
16. Within one hundred eighty (180) days after any termination, as to all or any portion of
the Lands, Lessee shall remove from that portion of the Lands any and all property, facilities and
material belonging to or placed thereon by Lessee and shall restore the Lands to its original
condition insofar as reasonably practicable, in default of which within the time above specified,
but subject to the other obligations of Lessee hereunder and in addition to any other remedy
Lessor may enjoy, Lessor may remove, destroy or retain any such property, at Lessor's will, and
Lessee shall reimburse Lessor for the cost of any such removal or destruction as well as the cost
of restoring the leased premises.
17. Lessor agrees that the Lessee shall have the right at any time to 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 and be subrogated to the rights of the holder thereof.
18. In the event Lessor determines that Lessee has not complied with all its obligations
hereunder, either expressed or implied, Lessor shall notify (the "Notice") Lessee in writing,
delivered by certified mail, of such breach and shall set forth with reasonable specificity the
details of such breach. Lessee shall then have thirty (30) days (or, in the case of a payment
default, fifteen (15) days)after receipt of the Notice within which to either: (a) cure or commence
to cure all or any part of the breach or breaches described by Lessorjn the Notice, or (b) deliver
a written response to the Notice setting forth the reasons why, in Lessee's reasonable opinion,
the breach or breaches alleged by Lessor have not occurred. The delivery of the Notice and
Lessee's failure to timely cure or commence to cure the breach or breaches set forth in the Notice
shall both be conditions precedent to the bringing of any action by Lessor against Lessee
concerning a breach of this Lease. Neither the delivery of the Notice nor any acts undertaken by
Lessee to cure all or any of the alleged breaches as set forth in the Notice shall be deemed an
admission that Lessee failed to perform all its obligations under this Lease. It is agreed that this
Lease shall never be forfeited or cancelled for Lessee's failure to perform in whole or in part any
of its implied covenants hereunder until a judicial determination is made that such failure exists
and Lessee fails within a reasonable time to be determined by the court to satisfy any such
covenants.
19. This Agreement shall be governed by and construed in accordance with the laws of
the State of Wyomíng. Any civil action based upon any alleged breach of this Agreement shall
be filed and prosecuted in a state or federal court located in the State of Wyoming. Each party to
this Agreement consents to the jurisdiction of the courts specified in the preceding sentence and
agrees not to raise any objection to the venue of any civil action in either of those courts. Each
party irrevocably waives its right to a jury trial with respect to matters contained herein.
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20. This Lease shall be binding upon all who execute it, whether or not they are named in
the granting clause hereof and whether or not all parties named in the granting clause execute
this Lease. All the provisions of this Lease shall inure to the benefit of and be binding upon the
heirs, executors, administrators, successors and assigns of Lessor and Lessee.
IN WITNESS WHEREOF, this Lease is executed as of the date first above written.
LESSOR:
BROADBENT LAND AND RESOURCES, LLC
~~~
Ray ~bent .
Its: Manager
By~ù~g¡}/Aflgd~
. olleen B Paddock
Its. 'Manager
LESSEE:
HOOVER & STACY, INC.
By: C. s{1¿~ J¡
ITS: PRESIDENT
{00018168.2} 10
000606
ACKNOWLEDGMENTS
STATE OF _W 'tOM.. I ~ (;-- )
)ss.
COUNTY OF (.,t. r NTA )
On this .5' day of lu,.rJ. .....u.. h -ta-. in the year 2007, the foregoing
instrument was acknowledged b~e undersigned, a Notary Public, by Joseph S.
Broadbent as Manager of Broadbent Land and Resources, LLC, who personally appeared before
me (and known to me to be the identical person) described in and who executed the same as the
free and voluntary act and deed of such limited liability company for the purpose and
consideration therein expressed.
IN WITNESS WHEREOF, I have hereunto set my official signature and affixed by my
notarial seal the day and year first above written.
, .
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My commi~s,ion expires:
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STATE OF () '1 ð /All , IV &-
COUNTY OF fA.C,J rn
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)ss.
)
On this ~ day of ~,ftvw,. b-l!..R.. in the year 2007, the foregoing instrument
was acknowledged before me, t undersigned, a Notary Public, by Ray S. Broadbent as
Manager of Broadbent Land and Resources, LLC, who personally appeared before me (and
known to me to be the identical person) described in and who executed the same as the free and
{OOOI8168.2} 11
000607
voluntary act and deed of such limited liability company for the purpose and consideration
therein expressed.
IN WITNESS WHEREOF, I have hereunto set my official signature and affixed by my
notarial seal the day and year first above written.
Myco~i~,s~on expires:-I- 2 ì ,. ;).0 Ð 1
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\', ~ J .,.' . . .. . t. ,
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N~ß. ~
IG .uM r;kJ-rJ , ~~ ~
residing at (
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STATE OF utah )
)ss.
COUNTY OF 6q\t la ke. )
On this 6-bh day of ~pr-emter in the year 2007, the foregoing instrument
was acknowledged before me, the undersigned, a Notary Public, by Colleen B. Paddock, as
Manager of Broadbent Land and Resources, LLC, who personally appeared before me (and
known to me to be the identical person) described in and who executed the same as the free and
voluntary act and deed of such limited liability company for the purpose and consideration
therein expressed.
IN WITNESS WHEREOF, I have hereunto set my official signature and affixed by my
notarial seal the day and year first above written.
My commission expires: Q--:YZ7f2011
\ DARCI SEVERINSEN N tary Public ¡
f Notary Public
M S~ate of Utah L~-e.C1
y CommissIon Expires March 27, 2011 ..
381 E Broadway, Salt lake City, UT 84111 eSldmg at
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{00018168.2} 12
000608
STATE OF LJ · )
'-f'~ )ss.
COUNTY OF O\.~ )
On this J'ìt).a. day of ",,-1 A A+d___1L 41 in the year 2007, the foregoing
instrument was acknowledged b~1r;:ili;~~ed, a Notary Public, by C. Steven Stacy
as President of Hoover & Stacy, Inc., who personally appeared before me (and known to me to
be the identical person) described in and who executed the same as the free and voluntary act and
deed of such Corporation for the purpose and consideration therein expressed.
IN WITNESS WHEREOF, I have hereunto set my official signature and affixed by my
notarial seal the day and year first above written.
My commission expires.
1VJ~'ft:v O~
Notary Public
~~ UtI
residing at ð ' I
STATE OF WYOMING
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)ss.
)
COUNTY OF LINCOLN
This instrument was filed for record on the day of
,2007, at o'clock _.M., and duly recorded in Book _, Page
, of the records of this office.
County Clerk - Register of Deeds
By:
Deputy
Return to:
375044U,DOC
{00018168,2} 13