HomeMy WebLinkAbout935802
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STATE
OIL AND
0... nYOMING
GAS LEASE
Lea~t:". UI-UV-'''"'
Parcel # 596
Fund Code: CS
form Approved by the I
and Effective January 6, 1998
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:
£.I~."..,\'..'·..".
Fitzsimmons, LLC'
000054
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:
Z. '2
Lots 5-8 Section: 16 Resurvey Township: 22 North Range: 120 West of the 6th P.M.
County: Lincoln
Acres: 153.20
$154.00
($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 operations are being conducted and so long thereafter as oil or
gas may be produced in paying quantities. This lease may be relinquisheq 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.
, ,.' ~~ ~"';. ;". .~ r'i .;[ ..~
LESS~R,-STATE OF
Lessee Signature:
~' ~bY a~4hr ugh it
, (4~, .0/72 B.
Vv , 7" /' ,,~ -
Address:
!. ~
City: State: Zip:
Phone:_ I ~ a.ii1 ~ ~e~ ~ -'3IS'l
----
¡JOHN KENNEDY
2201 Cabin Ct.
Gillette, WY 82718
..'¡
RECEIVED 12/26/2007 at 10:52 AM
RECEIVING # 935802
BOOK: 682 PAGE: 54
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
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OIL AND GA:
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SecIIon 1. THE lESSEE AGREES:
ta) BOND. To 1umIsh. bond willi an ~œrporaIesurølY~auIhoriz8dlolransad
business in the Slala 01 Wyoming. or such oilier surety as....y be aCc:epIebIe 10 Ihe lessor. In Ihe
penal. sum as requited by Ihe cunni rules 0I1he S1aIa IIIBd 01 lMId ~.
condIlIoned uponlhe paymn oIaI rentals and ropIIIes acx:ruing to Ihe.....under Ihe IIIIms
hefeof. and upon IheJull ~ 01 all OIlIer..... and CIOIIdiIIon$ 01 this '-and lherules
and regulations RIIaIing IIwIIIo. and also _1dIIIIIIi_ mlhe pøynWII d aI danIIIJIIS 10 Ihe
surface and ~ "- ""*e Ihe'-awetalandsthe..raœolwhlctl hasœ.t
sold or ~ '1It,À8d. .sr.¡/I.bond or bonds U1Uhed prior 10 Ihe dewIIopnBII d!he lands
conlalned In \his Ieøsè mØy bem-t In such ___ emaunIS aslhe.....nwydedde
upon COIII'IIIIIocement 01 driIMIg D IeI1IIIons and ...... ~ 01 oil or gas.
(b)PAVMENTS. To....... all paymenIs IMXIÙIIIJ hMIunder 10 !he DIIiœ d SI8Ie L.ands and
Inwstmenls. 122 West 25Ih Street. Cheyenne. WyomIng 82OO2..(J6QO.
(eIRENTALS. Prior to the dlsawery d 011 or gas In paying quanliUes to pay !he .....In
a~ IIegiIWng willi the eIfecIIve dele hefeoI. an annual rental 01 51.00 per acre «hcIIon
thereof.
After the disaMHy 01 oil or gas In paying quanllUes 10 pay !he lessor In ~ beginning willi
the first day d the lease year sucœedinIJ the '- year In "'*" acIuaI cIsaM!Iy_1I8IIe. an
aMualrental dS2.00 par acre «fraCIIOn 1henIof. unIes changed by ~L SudtrentallO
paid for any one year Shall be øedIIIId on the royalty for Iha1 year.
Annual rentals on aI ..... ..... be I8yIIbIe In ___ for the Iir5t year and eedI year
lhereafter. No noIIœ d renIaI due shall be .... to the __. If the rental Is not paid on or
before the dale II '-- due. notIceddllf8ult wlllbeMlllIOIhe'-. and a penaltydSO.so
par aae for I8Ia ~.... be........
The lessee is not legally abIIgated 10 pay ellIIer IIIe rental or the penalty. but If IIIe rental and
penalty... not paid wIIhIn IhIfty (30) .-p.....1IIe notice 01 default has been received, 1IIe....
will tennlnala aJtønaIicaIIy by operaIIon 01.... TønnInaIIon 0I1IIe '-shall not ......Ihe
lessee of any obligation IncumJd under Ihe '- OIlIer __ the obligation 10 pay rental or
penally. The 1_ Shalt not be enIIIIed to a CRIdit on royally due fa' ØIlI'I penalty paid rø-1aIe
payments of I1IRIaI on an operating ....
(d)ROVAL TIES. The IoyaIIies 10 be paid by ___:
(i) On 011. DIIIHixIh 0I1het praduœd. SBVIId. and said fRlmsa/d land. the _10 be deIIwnId
at lhe wells ( to the cnIdIt 0I1_1n1O Ihe pipe line to "'*" IIIe wells may be 1XJI1IIedI d.
(ül On gas. including casinghead gas or OIlIer hydnarIxIn subsIanœs. IRIIIuœd fRIm said
land saved and sold or used off !he prerns. or In IIIe nwMadur8 01 gaoIIne or oilier producIs
lherefrom. Ihe market YBIue at IIIe well 01 one-sIxIh 0I1he lIS 10 sold or used. provided th8t on
gas sold at the wells. the loyalty IhaII be ane-sIxth 0I1IIe __ fIIIIIIzed frÐin SUCh sale.
(lül On aU OIlIer hydrocarbons 01 value and IJIISØXIS subsIanœs and elemenIs IRIduc:ed or
extracted. induding propane. butane. sulphur. nitragen. œrbon diOJdde. end heIiun\. .. SUCh
royalty as shan be rrotuaIIy deIemined 10 be fair anci_.be.
(ivl For royalty purposes on gas and natural gasoline the YBIue shall be as II InMId by Ihe
r_. and In !he deIem1natiaR øI!he value 01 natural IIIOIine Ihe fair aIIII 01 uÞadion.... be
consídered as a deduclibleilem; prøuIded. '-.1haI1IIe ~ fa'theallll dtlllradlon
....yexceed two-lhinlsollIIe 8II1IIURI or value only on II IpRMII 0I1IIe lessor end in no__ shill
the price for \1115. or natural gasaIIne. beless....... rec:eIWId by ...I)iIedSlaleolAmsicll....
ils royalties from Ihe _field.
(v) Natural gas and 011 actually used for operating IIJf IOS8S upon Ihe land and. eoœpt 8S 10 IIIe
ultimde sale 1henIoI. gas or liquid 1\ydr1Ic6\)O 14 I8Uned to IIIe IIIII1d far sIimIIaIIng Ihe
production 01 011 or SKØICIary nICOWIIY JIUIPIIS8S shall be royally free.
(el DISPOSITION OF ROVALTY OIL AND GAS. To cIeIMIr 10 IIIe lessor. or 10 such individual.
firm or axpcntion as Ihe lessormaydesl plle. 81 royally 011. gas.orolherldndn!lll~
freem~~onlhe~_"epraduœd.~ællle~onolthe__.andln~oIsa/d
royalties in Idnd. !he lessee acp-.Io pay !he ___1IIe IIekI nøIret IIIc:e «value 0181 royally
011. gas. or other IdndnId h)dIacarbaI. praduced and saved.
When IIIe 1_ etects 10 take lis royally 011. \1115. or OIlIer hydrocaIbons In kind SUCh as aI. gas.
or OIlIer kindred ~os shall be IIOd merdgn ab e Oil. gas. or oilier Idnchd
ltydr0C8rbons. The lessee shall If -Vfumlshstonl eforroyaltyoll free oIc:tøgefa'hrIy
(301 days after Ihe end m Ihe calendar monJh In which Ihe ollis produced. upon Ihe leased
prenisas. or at IIIe SUCh ~ as IIIe les1Iorand... --maylnduallyaaree upon. pnMded.
thet the leSsee Shalt not be held liable for lass or desInJctIon 01 royally 01110 IIInd fRIm_
beyond his conIIOI.
The free storage 01 011. as herein pnMded. sha118 pIy only as long as Ihe saki ollis Ihe IRIpIdy
of Ihe lessor.
(f) LtEASUREMENTS OF PRODUCTION. To IJ8UI e. IRØII$Un! and CXIfI1ICt fa' ~ all
production fromsald lands In c:o.lo/...a willi IIIe rules and reguIaIIons8dDpllld by Ihe ø-d 01
Land CommISSIoners and report llllidproducllon 10 IIIe __In accordance 1henNIIIh.
To keep booIcs.lKOIds. and reports paItaIiIIng 10 Ihe producIIon fRIm IIIe land hereIn....as
well as those pertaining 10 IIIe production fRIm offseI WIllis operated by Ihe lessee. his openIIor.
or SlIH_ on oilier lands. IIIùch shall be opened at aU limes for !he InspecIIon 01 ØIlI'I duly
aulhorlzed agent 0I1he lessor.
To fumIsh IIIe lessor willi originIII pipa line reports IIIMMing IIIe day. ..-th. year. --.
grallilles. and ~ 01 all 011 run and willi monthly reports IIIMMing IIIe monIh. year.
amount. and price 01 all gas and naturalgasgesollneand oilier producIs IRIIIuœd _ said tam
the land herein leased. and Ihe amount 01 gas nIIum8d 10 the sand.
(g) MONTHLY PAYMENTS AND STATEMENTS. UnI_1IIe time d peymIIfIIls oIhenIIIise
eldanded by IIIe DIIiœ øI State Lands and InwsIments to ........ ,.ynwd on or bIIonIthe
'-"Iieth (2011\) day 0I1IIe calendar month sucœeding IIIe INIIIth øI produdIon and removal and
sale øI oil and gas from said land. and to rurnIsh _ monthIyslatemlnls therewith shoooinIJ in
delailthe quantllyand quality øllhe praducIIon (par well If required where pradicalllmmlheland
hereby leased. and Ihe C UIIIIIIty and quality 0I1IIe praducIIon (par welllAIIeIe ll1ldiœll tomøll!sel
wells upon cornering or contiguous land operated by IIIe lessee. his openIIor or............ and
such other Infonnation as nwy be called for In the form or report prescribed by lessor.
(It) WELLS TO BE DRILLED. To driI and operate e\fecllWIIy all wells neœssary 10 reæonabty
offset wells upon and production fRIm adjoining lands.
To drill such addItionat welts at such Umes or ptaces as are necessary and essenllallO Ihe
proper dewlopmenI and CXII1WIWåaI production 0I1he oil and lIS conIenI 01 saki land. '
(i)lOG OF WELlS ~ REPORTS. To keep. log. In IIIe form8 lpf1Mld by the lessor. 01 eedI
well drilled by the lessee on the lands herein leased. showing \he slJala and chanIcter 0I1he
formations. _ter sands and mlnetaI depoIits peneInIIed by Ihe drill. amount 01 casing. _ and
where set. and SUCh other information as Ihe lessor may require which log or copy IhenIoI shall
be fum shed 10 IIIe lessor.
To file progress reports. in IIIe form prescribed by IIIe __. at IIIe end of each lhIrty {301 day
period while each welt Is being drilled.
To file annually. or at SUCh times as the lessor may require. maps showing IIIe cIeveIoprNnI d
IIIe structure and Ihe location 01 all welts, pipe tines and other works used In connecIion willi Ihe
operations 01 the lessee upon satd land.
To make such oilier reports peItaInIng 10 IIIe production and operalions by the '- on said
land. and report SUCh oilier information as ....y be possessed by the lessee on IIIe wells.
production or operallons 01 others on lands on the _ geologie strucIunt lhal ....y be 01
i~nce In etrectlng proper dewlopmenI and operaIIon 01 the lands herein leased, as nwy be
called for by Ihe lessor. AD logs. ...... and reports shall be submitted In dupllcala and the 0IIice
01 Slate Lands and In--.......y.... SUCh reports 85 conditions may~t.
(j)PRODUCTION. To operate IlleMIIs upon IIIe landhenlln leased In a ~ and eIIicIent
manner in an andea_1O recover aU Ihe oil and gas economically possible from saki land and 10
....-nt the under dr8Inage 01 the 011, and lIS IhereI.nIer by MIls operaled by lhe iessee or
others on comering or contiguous lands 10 those leased herein. 'All plens or methods for the
purpose 01 sllmulating or naeøs ng produdlon on lands herein teased other than those in
cornnon use shaU first be presented to Ihe lessor for II I IfO\/BI before being put into eduaI
operation.
No production egreements IImllIng. res\rlctlng. prorating. or OIhenMse alfect1ng the
naturalproducUon from said land shall be entered Into by Ihe lessee. nor shall the lessee limit.
r,."trir:t nr nnVJt'A Ih"l\Ahen:al nrrvtlllt':lilV't frnm 1ICIIÙt........ in At'Ivw=tv tv in Anv MHIIft' ..YnIJnt with
drilled on lands adjoining less Ihan 200 feel flam lie tr- U ~h ,,-- IhereoI; 10 CIOI1dud all
openIIions SIAJject. to ~ 0I1IIe lessor: 10 CI 11essee's expense all
rea&onIIbIe orders Me .--.. 0I1IIe '-' ........ ..·RIB ...-*-' 01 waste and
pr..".uon 01 the II1I Ieo., and the heaIIII and sefeIy 0I.......1nC\udIIIIJ IIIe I1I IIan\InIJ and
~ d drWng sIIes and other _1IIIubed by drWng........ and m failure 01 \he
1_10 10 do the lessor shall have IIIe right. 1O IIIher...... OIlIer ___ henIIn provided. to
enleron the property 10 repair cIamIgIt or ¡nvanI.... at the __'& expense; 10 abide by and
canform 10 wild applicable I"II UI8tIons prescribed 10 1IIIInbune"_ oIlhesurface.1f oilier
than IIIe ...... or __ d IJIZing riØ* IheIeaf lilt adUII dInIIgas II1er* and injury 10
____ ....,. IIDIIicIed. that .. .... .... nut be held ßIIPOIIIIbIe rø- lids 01
prouidence or adIans ...,.,... his canRI.
(nI)TAXES AND WAGES-FREEDOM OF PURCHASE. To pay. .... œe ell .... IawIuIy
...... and lIMed under.. laws 0I1he Slate 01 w,amng upon ...._l1li.... 011 and gas
IRIIIuœd tam IIIe land hMIunder. «oilier Ii hIs. IRIpeIty.. __ 01....... 10 accanI aI
lMIfkmenand~c:an.-.nedamol~andlopayal.....œewarllnwland
~ In ........._1Ce willi the laws 0I1IIe SIaIe oIWyomng.
(n)ASS1GNMENTS OF LEASE-PRODUCTIO AGREBIENTS. Not Ioassløl this __ or any
. .....1hereIn. _suIIIet any portion 01 the .......-nus. eJCIIpI willi IIIe conun1ln MIIIng
0I1IIe 1_ first had and obIaIned.
All -ndIn ru,øI1Ies 10 be veIId. ß'IIII have IlleIl lpRMll 01... 8DenI or byllleOl\iœol SIaIe
Lands and .........._ .... 8UIhaIIty to do 10 ha .... dIIegaIed by IIIe IIoanI and .. be
ßl Xlldedwilll 1IIe'-. The IIIBd _lIIeflghtoldiIappnMII oIlUch-'dlngrayaHles
when in its opinion they become uœaIve end '*- _ dllllnWttllllo ..proper-deWIIcJpnwIt
d IIIe IeIIsed lands.
(o)DEU\/ER PRBISES IN CASE OF FORFEmJRE. To dlllverup...... ¡nmIses. willaI
pennment ~ "-.In IIOd onterand œndIIIon 1n_0I forfIiIunI 01 INs""
bullNs shall not be CØIIIIUIId 10 .
prevent the removal. alterelion or reRIN8I 01 equipment and iI'l )jo.ell_1Is in the ordinafy
caurse 01 openIIIons.
SedIon 2. THE LESSOR EXPAESSI..Y RESERVES:
(a) The righllO lease saI. or 1IIheNise..... 0I1IIe..... 0I1he land...... tIIIIhIn INs
lease under edsIing laws or laws ......... enacted. and In _dl._ willi Ihe rules 01 the
IIIBd 01 Land CommIssions Insofar 85111e..... is not ~ rø-Ihe weollhe lessee In
the cai\diJct 01 openItions hereunder.
(b)The right 10 re.e. sell. or oIheIwIse dIspoIe 01 OIlIer IIineq ..1UIIIuffaœ _ not
c:owered by Ihe Ieese.In aŒIIRIance _ Ihe appIiI:aIIIe_ and the rules 0I1IIe IIIBd oIlMId
ComrissIoners.
(elF""" IIIe operaIIon 01 this lease. !he surface lands henItoIonI I1IIIIed lilt II hIs-of4øy and
easemenlS and _1IIe righllOgranlsuch oIIIer~and___as lllMdedby
!heslalutesolllleStaleolWyomill . 85tong_llUdt~and___donotlXlnllic:t
with IIIe D IeI1IIIons for oil and gas on lheland .....Ieased.
(d)The right 10 I1IfuIeIO c:omrit Ihe Ieæed lands loa unit pØt 01""""',_" If Ihe BoaIdIinds
SUCh acIion would ø,..Iir Ihe Iessor's ~ tI ht 10 like lis IOJIIIIY gas In kind and to",,-
ell other gas allocated 10 IIIe leased lands. pnMded In SecIIon 3(eJlllllow-
(e)The righllO alter or Jmdify the quantity and rate d produdion to IIIe and IhaI wøsIe may be
eliminated «1haI pmducIIon nwyœnfarmlO the.........nh..oI......pnldudlanunder
any sysIem 01 SIeIe «NaIIanaI añIIInIØ and IRWaIIOR IIØIoIImd .......
(fJ1n addIIIon 10 lis right to IaIra lis royally gas In IIInII.Ihe ......_Ihe fight and II IIion to '
purå1ase all oIIw gas praduced rø- sale .. we 011 Ihe '--' 1Bnds. 1hIs II IIIon shall be '
-.:ised only If Ihe IIIBd finds... lhelessee r-1IICIIMd and Is willing 10'" e bona fide
oIferframa ~who InIendsIOIIIIII «RnIpart lhegasllm........._and...
oneor.....inInIsIaIe~(I.e.. ~who..._ _«..lhegas...._
or ~ entirely wiIhIn IIIe SIeIe 01 ~ _1IIIIDIg and ebIe 10 ~ Ihe lIS
upon terms IIIIISOIIIIbIy CIOoI.C*ebleloand at..... as fawIrebIe 10...... as Ø-oIIIred by
Ihe intersIaIa~. The 1IIBd...... W8Ive \his apIIon and pemiI an InIerstaIe Sllleiflttinds
thai no inInIIItaIe purchaser is willing and able 10 II.Wå.e Ihe gas upon terms which -
reasonabIy~ 10 and at...... fIMnbIe 10"""" ".CØIdIIIonIllIUl:ll-w..
. saIIsfacIøy...--.. nwy be ......1nID bywhlctllhe pnJdudIon ollis IOJIIIIY gas nwy be
cleferr1ld unlillI CM be IRICIuced and solei.... ~ and use entInIty wIIhIn the SIaIe 01
W~. .
SecIIon 3. APPRAISAl OF IMPROVEMENTS. The __ shall have IIIe right IIUb ed 10 IIIe
pnMsIons 01 TIlle 36. 85 10 Slate and Slate SchoaILands. and TIlle 11. 85111 Stale ~ and
IrwsInwI\s IIIBd lands. W.s. 1977. to _ any "..._1 ojI S __ by.... \MIllIn a
reasonable lime after... teminaIIon 0I1his.... ~ II I8IIS that any IUch Irofllo.ell1llll1s
not I'IImIMIII wiIhIn a reasonable lIme....tørnin8IIon dills....... bedispœedol puI'UIIII
10 Ihe ebove sIIIIu\I!IS.
SecIIon 4_ FORFEITURE ClAUSE. The IIIBd shall hIMIlhe ...- and ....Ihor\ty to cancel
'- pIUCUI1Idbyhucl. deœII. ornillnlprasMlall..rø-Ihe_oI"lBndslilr~or
QlegeI purposes. or fa' Ihe violation 0I1he aMnII1Is 01.... '-. upon IIUpB' praoIlheIeaf. In
IIIe __ Iha\ the __ shall dIIf8uIt In IIIe peItIII.._ or ____ 01 any 0I1IIe......
__. and sIipuIaIIon& heNof. or 0I"1JIIIIIIIII1"II UI8tIons ~ by Ihe IIIBd 01
Land CommIssIoners and In forœ mille data herwof.1IIe ........._notIce 01 such faIIunt
or defauII ellherby I8ISOIIIII..w:. «byœr\lled «nI IsIør8d.... uponlhe'-. andiflUl:ll
failure «default canIInueI fa' a padQd oItifty (30) ___............ 01 such notice. lien
and In IhaI __ the lessor nwy. at lis apIIOn. dec:I8nt . IiIIfeIIure and canœllIIs '-eo
IIihenIUpan aI rIghIs and privtteIJIs. abIIIned by Ihe ....1-.ndIIr............and_
and the lessor may IIHIIIIer and like IDII8SSIon 01 said prerns. « any lIlt 1heIeaf. 1"-
pruuIstons shall not beœnstrued to prevMt the.-åleby...... any legal.. equIIa\IIel8l1edy
which IIIe lessor mIØ1t otherwise hive. A -w. d any pør\ic:Iår cause «bfeIIure shall not
prewnt the canceIIaIIan and faIfeIIuWe·oIlhIs..... by any allier cause 0I1'arfeiIure. «rø-the
same cause oa:uning at ØIlI'I ather time.
SectIon 5. RElINQUISHMENT AND SURRENDER ThIs tease may be relinquished and
sunendered to lessor as 10 eI' or any IegalIIUbdIvIsIon 01 said lands as ~
(al II' no openIIIons have beM CIIIIIIuded under .... '- an IIIe land to be f1IIInquished. IIIe
1_ shall file willi IIIe Stale land Board and SIaIe ~ and IrMslmenlIIaanI. a MIllen
relinquishment or 1IUIYIIndef'. duly signed and IICknøooIedged and 1IaIIng......... noopelBllons
heva beM CØIducIed on the land. Thellllinqullllnwl so \lied IhaII a.-ne......on llledlle
and hour of receipt IhenIof in !he oIIice 0I1IIe Direc:Ior or at _ later dale, If such be 10
specified by the lessee IhenIn. If IIIe said NIinquIIIIInenI fails 10 IIaIe \hat no operaIIon& have
been conducted, Ihe elfeclive date 01 RIIInquisIInwII .... be IIIe date the t8InquishmenIls
approved by IIIe 1Ioard.
(b) II' operaIions haw! been œnducted underllle '- on land IIU IIIMd 10 be relinquished, Ihe
1_ shall Ìva sixty (60) days notice and shall file with Ihe OInIdare written relinquishment or
sunender duly acknowledged and stating IhereIn Iha\ operaIIans haw been conducted an the
land. The reIInquishmenI shall not became eIfecIIwt unlit ....Iand and \he wells -.- shall
have been placed In CXIIIdiIIon aœeptabIe to lessor and shall haveœ..1I II1MId by the SleleOil
and Gas Su IervIsr. '
AD II!nIaIs beœmlng due prior 10 a sumInder or ß!IIInquishrrøI ~ eIfedive. shall be
payable by lessee unless paymentlhenlof shaD be waived by 1eIsor. A relinquishment hawing
became etreclive there shall be no _ by lessee and IIIe Ieese as to \he II!IInquIshed lands
may not be reinstated.
000055
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