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Home My WebLink About935795 and Effective January 6, 1998 STATE OIL AND c~ nYOMING GAS LEASE Lea5e". U I -UP"'"" . Parcel # 581 Fund Code: CS form Approved by the This indenture of lease entered into by and between the State of Wyoming, acting by and through its Board of Land Commissioners as LESSOR, and the following as LESSEE: - '~,... ';., - 000040 Fitzsimmons, LLG Section 1. PURPOSE. The LESSOR, in consideration of the rents and royalties to be paid and the covenants and agreements to be kept and performed by the LESSEE, does hereby grant and lease to the LESSEE, the exclusive right to drill for, mine, extract, remove, and dispose of all the oil, gas and associated hydrocarbon substances and gaseous substances and elements produced therewith, including sulphur, hydrogen sulfide, sulphur dioxide, nitrogen, carbon dioxide and helium, which may be produced from the following described land, to wit: 7 ì SWSW Section: 10 Resurvey Township: 25 North Range: 118 West of the 6th P.M. County: Lincoln Acres: 40.00 $40.00 ($1.00 per acre or fraction thereof) Together with the right of ingress and egress and the right to use so much of the surface of said lands as is necessary to construct and maintain thereupon all works, building, plants, waterways, roads, communication lines, pipe lines, reservoirs, tanks, pumping stations, or other facilities necessary to the proper conduct of operations there under. Section 2. TERM OF LEASE. This lease shall become effective on the day and year set out below and shall remain in effect for a primary term of five (5) years and for so long thereafter as leased substances may be produced from the lands in paying quantities. This lease may also be extended beyond its primary term in the absence of production of leased substances as may be provided by the statutes of the State of Wyoming and the regulations of the Board of Land Commissioners adopted pursuant thereto. Provided, however, if drilling, completion, testing or reworking operations are being diligently conducted, either during the primary term or during any extension thereof, this lease shall continue in full force and effect so long as such pperations are being conducted and so long thereafter as oil or gas may be produced in paying quantities. This lease may be relinquished or terminated at an earlier date as herein provided. Section 3. If the LESSOR owns an interest in oil and gas in said land less than the entire fee simple estate, then the royalties and rentals to be paid LESSOR shall be reduced proportionately. Section 4. LESSEE expressly represents that, if an individual, LESSEE is a citizen of the United States, or has declared an intention to become a citizen, and is over 19 years of age-and if a corporation, is duly qualified to transact business in Wyoming. Section 5. This lease is issued under the authority conferred by Title 36, W.S.1977 as to the State and School Lands, and Title 11, W.S. 1977 as to Farm Loan lands, and shall be subject to, and operations by LESSEE hereunder shall be conducted in compliance with the specific lease terms set out on the reverse of this lease, and with all applicable state statutory requirements and the regulations issued thereunder, including those providing for: the leasing of State or Farm Loan Lands for oil and gas; the conservation of oil and gas; and the regulation of security transactions. Section 6. HEIRS AND SUCCESSORS IN INTEREST. It is covenanted and agreed that each obligation hereunder shall extend to and be binding upon, and every benefit thereof shall inure to the heirs, executors, administrators, successors of, or assigns of the respective parties hereto. Section 7. SOVEREIGN IMMUNITY. The State of Wyoming and the lessor do not waive sovereign immunity by entering into this lease, and specifically retain immunity and all defenses available to them as sovereigns pursuant to Wyoming Statute 1-39-104 (a) and all other state laws. IN WITNESS WHEREOF, this lease has been executed by LESSOR and LESSEE to become effective on the 2nd day of, October, 2007 A.D. LESSOR, STATE OF I G~ ~g by ~nd through its -- ':;£~~ :Y· Address: City: State: Zip: Phone : -----.L- -,> 7c2L."7 ",,£.y,{ ~~ I JOHN KENNEDY 2201 Cabin Ct. , Gillette, WY 82718 RECEIVED 12/26/2007 at 10:46 AM RECEIVING # 935795 BOOK: 682 PAGE: 40 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY --~ ¡ .,,~~ .- :r~~. ":}J ,." OLAND GAS TERMS ;"...- /....... s.dIøn 1. THE LESSEE AGREES: . " -............ (a) BOND. To fumiI/I. band.. an ........... -....-............,........ "'...-....... n" ..'..~ or oud'I......... - - be............. to" -. n....... - - ......-.... ............. SIIIa""''' led Q,,~"" ØIIIItiIIDI8I upon....,.. rI......... _.......,..q..... _......._......, _ upon.... ~........ - _........rI ... .... _ .. _ _ ........ ........ II-. _ _ _____.... ..,.. rI.. .............. ....... _ /nIpIaI._ ...... ..... .. .... - ..... .. ....... .. IIHdI ... ..... IIIId .. ................ SudI band or .............. IIIDr "'..... ... r ._.... _........ n"_"'''' "-'n oud'I___-- -.. --....... upon -..-.................. IIIIIIIiIwII _ _ilia ~rloI...... (b)PAVUEHJS. To __.......... --*'II ___"''' (Ilea.... Landa _...........-. 122W1011125i11..... a.,.nnt. Vl/JDlllÌlllII2IJIIZ.GIIO. (c)RENTAlS. _iIÌ'IIII.......,......... n ................"'IIIJ..- it_ ...............---...... an..... .......I1J1O.... _or........--.r· 1dW'" ~ rI oI.or..In,.,............ "'IIIJ" _n................... .......,.... _"...-.... - ".nllHdl -- ~- --. an..... .........IZJIO ....._or .............. ....... __ by ~ SudI..... 00 ........._ ...,..........cmdIad an" .....,.......".. 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(i) On ...1ndudInII........,.... or............ _ __............. aid......... --*!........... ........ or..... ~..........or...........-....... .. ...,.......... _ rI--...........-*! or uoed, IIOIIidad.......-*!......... ................ --....... --........-.......... (ill On......~ rI.... _..... ~...................or.......IndudInII..........-.......·......... CIIban.......... ..................,..,- ...............--...... ...IaIr____ (Iv) For.............-.... _......................... be _ ___ by" _. _In" ........MiIIn rI.......................... lair call rI....................... _........1loiii; IIOIIidad.~............. ......_.._... _....--...rI.. --...... onIJan IIIIftMIrI" -- n............. IIIaa"'gaa. ................... -_........,. by .. UnIIad.... ,..............,..........._1iIIId. (vi __.. _ 01--' .......................- upon.......... -..pt- "'.......... --.r... orlluld ...........bI>M........"'.. ................................ or~ ~ .......-..... ............... 10) DISPOSfT1ON OF ROYALlY OLAND GAS. To..... to" _. or... sudI ~ _ or caopIIdIIM _.. _...,......-. ............ gaa. ......1dnIIMd 1I.4_llIr....... œ.ao-........... __............ or,"" apIiDn.... _. _...... rI aid ...,....In Idnd. ........,.-... IIIJ" _............. lllaaor........ ....,...... or....1dnIIMd h,dI-................. -........ _.. _......._.....,...................- n Idnd oud'I_...... or....1dnIIMd ,...._.......... IIDd_4_'" all. ... or....1dnIIMd h,dI-'*II. 11w.......... I~ ........ ............,.., 01_ .. ............., PI' ...,........ .... .....- ..... n 1IHdI.. 01 II............ upon .. .............. or .. .. ......... - .. - - ....... ...,. ......,..... upon. .......... .................... hold............. or................ 01........... - .................. 11w_....... ...-.............. ..........,.. -.....-.. .....................-- If) IIEA8UREIoENfS OF PRQI)UCI1QN. To..... _ _ __............-.. ........................ ir -A...-II».... - -...................,.............. C ., --....... .............. ....-..---....... '" To.............. ....... _............... "'............. .................... _... - -........ "'................. eIIoat.............. by .. ........ CIIOIIØ. ............. an GIIW..... 1IHdI........ ............. ..........Inapodian.. -....,..........-...._. To""""" _...... pipe.......... 1IIoIIiID.....,......"................. _1 . ~-.... 01_ -.... --...... 1IIoIIiID........ "....... _ IIIaa...... ........... ...... -....................... _-*!...................... -.. --............. "'..-- (g) MONTHLy PAYIEN'fS AND STATEIIEN1S- ...... ........ ....... II................... ..,.. (Ilea...... Landa'" ...... "'.... ..,............... -..... (2l1li4".,.........-.... ..--.... ....... IIIICb:IIan.......... _ .... 01......... ........ _........ -...... --...... 1IIoIIiID................. - ......,............... {par..........-- ..........................,....... _.. ......__..................... {por_ __ IIOCIIaIØ)............ upon --. or ~.............. by" ...... ..CIIOIIØ..-........... - oud'I.... ÎIIfIIIIIIIIIÌI_...,be............ .._.........IIOÌI:IIIIIIIby_. (I\) WELLS 10 æ IJRI,1.ED. TO..._............,......~..---eIIoat....upon - ........................... TO...sudI..............oud'I_........_-~---"'........~\t...--þIOIU:IIøft....oI.....--.......... (lLOO OF WEU.& AND REPOR1S. To...........In..-....... by" -. ......... dIiIIId..,.............................. 1IIoIIiID.. .....---............... -..... -....... dopoIIIIa poMÞIId by"'" .......--. ____.. _ oud'I.............-.. _..,.....IIHdIIDg......"................... "'..-. To...................... _..-.- ..,.._. .......rI......., (!Ø)""padad ........... IoIIaq dIIIad- To No""'."" oud'I_ _.. _..,..... ........................."......... - .................. pipe....... ...........In anwcIan............................ ... ..... To...... sudI................... ............. _ ..........,......... aid..... _............ ............- _......-rIby................ .........or........ ..-....... .... _ goaIoIG __....., ............-................... '. 11_......................... _..,... ..........by....... "'......... -...................... it"""" _ ... 0lIIoI rI.... Landa _ ...................... oud'I....... _Clllllllana...,.-"- PRODUC11ON. TO............................... n.......... oIIdIIIt_ n..........., -.. ...01_ ..~............ .......-........ ............... 01_" -..-..,.... .,...-...,........._ an--..oranJilllllll......._.............. "'....or.................................................·...... .............. _ _... __ ..............--....._...............................HD........... ................................ ....... ................................ r _................IIe.............,........ _................. .-.cI. or..-........................ ....In_..,or... _.........-......",....a In.....rI.. -............... 1<SUSPENSION OF QPERATIC»IS. IIhau1d _WII dIiIIId upon..... __ by .._.......................... or ......... I Mown..,.............. ,....................................,-- ........ ....1..4-Â". ................aId.............., 1IfIPIY....-.. __amnt................ ...........rI................... ........--.........., --......pooduI:t...... _ '*' be ___ DuIIIV ....._ oud'I.............,........ loin..... ............ _"'IIIJ............ 1112JD..... -........ ..............by (cJ""'" -................. IIIJwd _ tIIDUgt 01 or.. -............................ ~ OFWASIE. To ___ --..................................... .............. ___.....,.......",....a................ .........,...........,..--=.. <MY an ........ ___In .IJIIIIII- .....~.. _... ___.................. _............-.......................... III 01...... or....... ..-"'.. 01 or.. .......... or.....ID......... or....,.. oud'I........ .. ......... _-'.................. ........~...............IIaIIIt- ...,........_.....,....IDJIIuII -- it ............. _ _ _................. _ nat........... _....................... -. nat ID ...."................. (2llØl1IIot"'" III......................... ---.....,....... .. IIOIIId ...... .... by.... dIiIIId............... _ 2110 _... ... JIIGIIOIIr"" --= .. ØIIftIIuI::t"""" ...........Inapodian....1MOOr. ...., aut................... .. .--- ....... _,...--.... _.................. rI...._ .................... _..1IaIIIt _ ....,1II--..1ndudInII............- ---. ........--....- --- by ............ _ an................1D olD.. _..... .....ñgf.IDIIIW......_................... "'............... .....-.................................... "'....by _.".,..,....IIIIIId........... ____......................... _.......... ,...._.. -. or.................... --.r...............--....,.. ~ !lID' - -- .......... ................ nat... hold ..............._rl~or............... œnIIal ' Im)TAXES AND WAGESRJEEDOU OF PURCHASE. To pay. .... _ .. _ ......,. __ _................ rI... SIaIa rI w,cøno upon .....-..... eI_...............................· or GIIW...... ...............11........ ............... _.......,.. CIIIIIICIIIIOIiaadIIIII III........ _...IIIJ....... ...........-........ In ......._11» ...............rI~. ~~ OF LEASE PROOIICIION AßRI!BENIS. _........._ or_......... _Ulllt_....... rI................. -..pt....",....aln......... -................. "'CMnIdInO......... ................ÍIJIiÍIIIIIIOI.... ..... or by," (Ilea.... Landa-..-- ......,"'dD. ...____ by" ....................... - 11w..... _.. ............,.-.. oud'I ~ ........-...........- ......----... -.........."'..piapor.~................ ' (0)DB.JVER PRaII8ES II CASEOF fQRFEI11JIIE. To....."".........................-- b.....l [1 ~ __IftllDd....-.........-..................!IIIt........·..--...'" ...-.a...............- or........",............ L'4"A .1<.._" ..~_............. . ' Sodiøn 2. TtE LESSOR ÐCPIIEIIISLY RESERVES: (.) 1110 riQht to.... .... or......... __................................... _ ................. or........-........ ...In ---........ III............... QIaIIiIIIana 1nIIIIII'_ tho...... II nat.-yfor" ................. ØIIftIIuI::t""""---' (b)11w .....ID......... or.........__......................-nat---by.......... ___..... .................-.. _................c .. -... (cFtœI......... ...._. .. ....... ..................... ....II1II*....... _ __ - -......... pit oud'I.... ............. - --- - IIIIIIIdad"''' --.......... \¥IIIIIIInI. -IIIIV _ sudllIIII*" ..,__dDnat___..............-... ..an.................. (d)11Io................ OIIIIRI.............ID..... plan II. d!.r IW I........... oud'I.................. --..ad.....1o -.. "",.,..In Idnd -........................... ............ . IIOIIidad'" SodIan........ 10)The riQht... 1Iar..-1IIIIdIy......... _.... rI pnIducIian ID...............,. be""'" or... ........... _.................... lair.... rI..........................".............. NIIIanII ..........- ...................,.... 1!)In oddiIIAn............ _.. .....,.....Idnd. ..Ia.w_" ....._apliDn....-- .................... ..or_................ 1bIIcIIIIaIa.......--..- I ............... .... ........,._ ..wIInOto__....IIda--.~_InIiIInIå.....or.......................--.........-.......~ (La. ~_.. -- or..............or____....,..........~-wlllV-.....IDUdWO....upon-.---.--.1O - ......-........."'.......------by.......- ~. 1110 BoanI..............apIIan _ panIIIt.............. .1......... ........~..WIInO -.......UdWO.. ..upon_...... ___.........ID_................'" .. _ Aa. __... oud'I......... .........,...--..., be........ HD byllHdl..pnIducIian........,....,.......... "'1_'" ........ --*!........... -.......,...... ....w,øminD- , s.dIøn 3. APPRAISALOF IMPROIII!IEIßS, 11w ~.... _............."'.............,.. 311, _ "'.._....6dDJlLandII. _1110 11. _"'....~.....-.....LandII. W.s. 1fI17. '" __ ......__-- by......... .............._.................__ ..-..,.-...._......... J>ó I" nat............. ___.....................-.... be ......-......-"'..---- . SodiAn 4. FORFB1URE CLAUSE 11Ia.............. ...--.........,............ ...--by............. or MÅ....._........ or...... - rI.. -......... ..IIÌIIIIIIIIIIOOo. ........--- ", ... ........... .. .. -. upon ...... pooar .....,. .. .. .... ... .. ..... ..... .......... .. ...........ø ... ___ .. .., rI.. ... --. - ............... ..... .. ..... ......... ............... by" ..... rI led C .. _ _In.........-....... .. _..... _1IIIIIIa.. sudI...... ..dIfauII.....,............ or'" ---............. upon ....... - I oud'I _.......... ann-..... ............., 3Ø)""'''''' ....rI.....1IAIiI». -...... ...-.. -................-........ .......-............ --............- ~.......... by""'" ...................... _ _ _.. _......... _........... rI aid........ or _.......... ~.............. RAt be ~.. .............. by - -...... or ..............,........ -1IIiIIt......... _ A ........rI_pallicullr_............ .....nat...-.a ..ancaIaIIan_............... - by _....-............. ........__-.øv ..-....-. s.dIøn 5. RBJNQUISHIIENT AND SURRENDER. 1bII_...,.'" ..........._--.."'--"'....-..... .............aId _......., (a) If........ -..... ---......... -......... "'................ ....... ........................ -.... ~ -............... ..................... --.....,.... _.....111 II..,...,.................................. ___ _....... 11w..........--..........œ---.... - -......... --.r.... tIIIIca.... ~or" -.... :: oud'I be 001lOCiliod by.............. ...... ~.... to _............... -............. .. ...... - rI.................. be.. -.. .......................,.. (b) If..-......... ___........ _.. ...........-."'................................._ (811)...,........ -........... DIIwcW.- ..................-.....,..dInA II ~- --.0...................... ___.......... 11w................ RAt-'- __.............. ..........................-. ir -- aGCIIIIIIIIa"- -............ ___by......OI...Gaa~. '" ........ --. _ IIior" . ......... or"""",,-- ......... --. ..... ............., ..... ....... ....... ....., ..... be...... by _. A.................... -...... ... ..... .... _by....._..__...............-_......-s. BIG GAME CRUCIAL WINTER RANGE This lease is issued subject to and conditioned upon l8s8ee's acIoiuoMdgement andagnønent that 811' expIondion and del slapnent adiviIies undørtaIœn shaD: 1) avoid human ~ in big game crucial winter range from November 15 to April 30; or 2) in the alt8matlve. exploration and development activities shall be subject to approval by the Director 01 the 0Ifiœ 01 State Lands and IIN8SImenIS whsubjectich' rovidto ~ DiJector's consuII8Iion wiIh the WyomIng Game & Fish DeparImIri regarding aIem8Iive ..cadiœS andIor plans of _slop.._ p e similar resource proI.edIon and mitigation. ' RIVERS AND STREAMS 000041. This lease is Issued subject to and conditioned upon Iessee'S ac:kncMledgement and agreement that 8IIY. ~ and cfeveIoPmeIIt acIIvIies undertaken shaI: ~1n Luù~ ' . 1) , provide a ~foot ~ on both sitfes of streams 1hadâ¡:u,tToth\'iasJ'parrlk and provide protedion for..... zones: or 2) in the alternative. exploration and development actlvilies $håu be subject to .8f!P~\ þy the Diredor of the 0Ifiœ of State Lands and Investment su~ject to the Director's consullation with the Wyoming Game ~ f~ fj)ft~iegardingallemative pradices ancIIor plans of developmet which provide smlar resource protøction and mitigation,_ i.>..o ,.':"., -, '1 \ ~I ! If; -. rlr\:" -n ~~ v i .::..~......\..- \....' 'I ,..,. ,