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Home My WebLink About935803 Foe. Approved by the 80 Lea:::se.". U I -UU.·.... and Effective January 6. 1998 STATE OIL AND 01 n1'OMING GAS LEASE Parcel # 597 Fund Code: CS This indenture of lease entered into by and between the State of Wyoming, acting by and through its Board of Land Commissione£~ as LESSOR, and the following as LESSEE: : ,~" ., : 'C..: \;' .. FitZsii!1mons, LLC 000056 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: _"e) Tract 58 (formerly All See 36) Resurvey Township: 22 North Range: 120 West of the 6th P.M.' County: Lincoln Acres: 640.00 $640.00 ($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 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 inur~ 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 d through its ~ Address: Ci ty: Phone: State: Zip: I - 30 7- ~ fi'fD - 3 I .s- 'il 1 JOHN KENNEDY 2201 Cabin Ct. Gillette, WY 82718 RECEIVED 12/26/2007 at 10:53 AM RECEIVING # 935803 BOOK: 682 PAGE: 56 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY . " .,..J~ \, '¡ ~ '''1J ...~J ~~}: , " OIL AND GAS 'ÆRMS 11', ~ ~ s.caan 1. 11-IE LESSEE AGREES: . (.) BOND. TofUmioh. bond _.. ~ ..............................Iotr.-:t.....III .. ....rI~ orllldt........ -....,.. --..... _.In......... -- -*""br... ........... rI... SlllilIIMnI rllMt CannIaIaI... CIIIIIIIIanId upon .. ~ rI.. .......... ...,............. .. .. .............. -- ......,. .... upon .... CIIIIIIIIanIIe rI............. CIIIIIIIønS rI .... _ .... .. ..... .... ........ ....... ........ .... _ .......... ... ... ...- fill .. ........ 10 .. ...... .... ...... 1 ... __ __ III _ _ IIndI ... ...... fill ..... ... ..... IIIIId ", ........ ___ SudI bond or bands........ pdat 10".11 I. _rl..... CIIIIIIiMd ...........,.. ~ III IIIdt __.._---... --............. _¡o........1I rI.............. .... ...1III....,.rI..or.... tbIPAYIIENtS- To................ --........Io...e-.. rlSI* .........l1li J .... 122 Wllt25lt.... a.,..w. Wa8IkIO""""'" (,,)RENTALS. Priarlo.......,. filial ",...III..........-ID...,........III ___ ..............................."............ fill $1.110",_ or............,. NWIII *-Ý'ct.. ar....n ~ ""-10..., ..._In...................IIIIt..., rI.. _ W--..........-W--In.......... -,-............. .....fIII$2.IIDpar- or fI8CIIan....... _dwlgeit.., ~SudI"" __far_ _,.......... .............,far... W--. Annu.a ...... an .. _ ..... ..,.,..,..In _ .....1inIt ,....... -" ,.......... ND IIIIIice rI....'" ..... .. .-It ID........ ........ Is not _ an or....... .. ..... ...... cW. naIiIa rI .......... _10...-............. fllllO.5Opar---~"'''~ ,... _ II not ..... CIIIIgIIMIID ..., ... .. .............,. IIut f... .... .... ....... - not _..... ...., (3Ø) ...,. .....1IIIIice fill........ ..... ......... ... -.. ...... .-......, .., ØI*IIIIan rI_ TemínlllaRfllllI!t- .....not........ _fIII_........ __ .........-....... ..........10..., .....or.....,. ,...- ....._.......10. --.. .......--- ................_.........rI....an..1IIII1IIIng ..... (d)ROYAL1ES. ,......,....10.........,,--= (i) On'" ___fill.............,........ ....1IIIId............... _10..__....-..10 ......fIII_InIoIIIIlipe INID1INcft""''''''' eDII*IId. (i) On.... ~.......... .......04 '. ___.......................... _1IIIId....... ......- or III .. ----- rI........ or..................... ..---......... weI rI..... rllIII... ao IIIId or...... .......- ......... 1IIIId.... -. .....,..,............. fill.. __............IIIdt... 00 On .. _ ...--....... rI..................--......................... ---. ................. ........ ....................... .... ~..IIIdt....... _..............,...........10 be....---- (ill) Far...,..,.................. __..................... _......-....,........ ...In.. dI6.......øoA rI....... rI__.......... fIir COlt fill...... ....... ~ _..........1IInt: ............ _. ... .............. Cllltd........ ..,............ rI"__ ..........,.............fIII"_'"III ID........ ..IIic8....... ................................. by .. 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'. 1I............fIII..................... - _bealad for..,....... M.......... ............... .......111.... ..... CIlIa rI.,........... ~ ...,...IIIdt........ _...........,~ CI)PRODUC1ION. To........ .._..........IIInd................~... .MI:IoIIt_1n .........10_...... and pi ~ pcIIIIIIIal'lOm....... ...10....... ............."'... .......... .........,-.....-...,.. _....... ...--...___ ...10--.............. M.... ..__for.. .......fIII................................... .............. ... _In __.................ID.._...................llalngpallnlo.........-... No IIGIIudIan...--........ ~ ......... ........................... r........ _..................InIo..,..................... -.... .-Id......,............................. ....In _-w orin _-*-....... ......-III......fIII.._.................. (Ir,)SUSPENSION OF OPERATIONS. ........................... ~.., ilia _ oIIIIIIn.......... rlaI.......... ...............In................ 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(tI~'OF~~ NalIo...........or....IÑOIIIIt.......................rllIII..........-.....-...--........fIII.._......II'IIIDIIIIIn8d. AI~..,............... _..............."'... ø..r....., lIiii'o.ca fill"""'" ....~..... ......lDdoao_.....~..,............................... ,........ _...iWllrI............rI...~...,.........In..........,....................._--¡;;;,:..tÞ...jióiIIiïi'.. . ..rI.............· -. -' -... --p--- -. .._-~ (0)IIEUVER PREIISES IN CASE OF fQRfEITURE. To...."'...........................-.- ~_...._.....InllOd.............Io_fIII........fIII.......IIut......not..~-- ................ --.,._ fill.............. .............111........, _fIII"",-, SediIIn 2. THE LESSOR EXPRESSLY ...:3S..œ: (.) 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'*.... rI................................... fill.... or...... c:urtIIIIn.c'" .....................,..... (1)In.addiliDn 10 .. iWlllo........,..,...1n Idnd. .. _ _... iWII.... apIIIn 10................................. or_.............. 11å......... ...--..-............... _ hDlIICIIIwId MIl II wIIInø 10 acœpt.....1Ida allllrflœl.~""""""Io'" or~"'" _ ___ __......-.- ~......-...~ ~""wII""--' ",......... for_ or-..nplian.......,.......... fIII~ _....... ...10...-................. __.......10.... et lout. fINoIaIIIa 10....... -... oIJIIed ","kIIInIIà .....,.... ,.................... apIIIn ...........kIIInIIà ............... ~ ~ IIwIIInø ......10...-............ _..... - ___.......10........-.........10 ilia...... Aa.......1o IIIdt ........ . ........, ............,........InIo..,...............- fill.. ...,.., ... ...,........... unIIl... be ............ -*I -........... and -.......,...... SIIIIt rlw,amIng. s.caan 3. APPRAISAL OF IMPRO\IEIEIf1'S 1ha '--.......... iWII Uledlo.......... f1111IIe.. _10........... SdIøaI LwIdII, "''IIIa 11. _10.... ~.......-......... LwIdII, w.s. 1fI17. 10 _ _ ~.III_____'" '--..... --... _................. fill....... ~......... _ sudI.....~ ....".. not.............. --................ rltiI -...... .....-srl,.-Io..---- SediIIn.. FORFEITURE aAUSE. 1ha............................, 10...... _..--..,............ .. .........-........ or." ... fill.................. or..... .....-,............... fill .. __ rI .. -. ....... ....... ...... ....... In .. ... _ ... _ ..... .......In .. .-..._.... or _ rI _ rI... -. __ ... .......... ......,. .. fill.. .............. II'IIIIUgIIId br .. ..... rI L8Id 0........... ...111..... an .. ..... 1WIDf. .. _.... _ naIiIa rllIIdt ...... ",....... _.., ....... ........, 1CIItIad............ ....... .. ...... ... f IIIdt ..... ",...... ~ lor. IIIIocI rI '*" (3Ø) ...,........... rI sudI naIIca. ... _In......... _...,. ............ ............................... -.an.. .......................... ..,.. '-- __ _ __... _ .............., __........-eIan rI......... .....,pert....... ,.............. not.. ~ 10.................., --.... ar ................,....... IMIorJlllØlt............ A .......rI_ ~_ar""""'" not.......IIII................... rI_ - by........- fill.......... or...... __-w.a .-......... SecIian 5. RE1JNQUISHMENT AND SURRENDER- 11IiI_...,be............... __10_-10 ...._.... ..........."'... "'_1aIøIIa: (.) .... ......- _ ..... -.cIDd .......... _......1IInd 10 be ............. ....... ................ L8Id ........ SIIIIt ~ _ ..-.-...... ..............- or......-;.....,...... .... ada~ ....1IIIinII.................-........ -.cIDd ........... Tha ~ ao 1iIId............~............. IaWrI .........In......"'..~... -...... ~~ sudI.. ao epacIIIId ..,.. '--....... If... AId ~ fill .. .- .... ... ......- '- ..... CIIIIIducIId. .. ~ dIIa fill ~ ..... ........... ....................... by'" (b) If......... ........ -.cIDd......... _..............10 be IIIIInquiIIIId. .. .......... Mt _ (lID) clap naIiIa... ...... _ .. ~...... .........- or.......,....,....!If . 'a .... IIaIing ...... .........- _ ..... -.cIDd... ......... Tha...........-..... ""'........................ .... .. _ __.... '-.........In ........ ........10 ....II'1II..... ... .... ~..,.. _01.... Gas....-. AI ...... .......... _ pdat 10 . ......., or ~ ..........1IIIcIMt. .... ......... by..... _ ........ ...... ..... .. ...... ."...... A.........-..................... - ..... .. .. _.., '-- _.. _ _ to........................, not be'--'" BIG GAME CRUCIAL WINTER RANGE: SAGE GROUSE LEKS AND/OR SUITABlE NESTING, BROO~G HABITAT This lease is Issued subject to and conditioned upon lessee's acknowledgement and agreement that any exploration and œvelopment activities undertaken shall: 1) 2) 3) 4) avo!d human activity in big game crucial winter range from November 15 to April 30: and avoid surface disturbance or occupancy within Y..mile of the perimeter of occupied sage grouse leks: and avoid surface disturbing adivities and geophysical surveys in suitable sage grouse nesting and early broOd-œ8ring habitat within 2 miles of 81 occupied lek or in Identified sage grouse nesting from May 15 to July 15; or In ~e altemative. exploration and development activities shall be subject to approval by the Director of the Office of State Lands and Investmenl subject to the Director's consultation with the Wyoming Game & FISh Department regarding alternative practices andlorplans of deveIopme which provide simDar resource protection and mitigation. £>c¿ \.\ ~\1 £, .,"'"\"", SJÌ\~\\ r:;: \ \,'t";:l ~ ,,¡... _, ':-~ \ '3 .... ø" ., '-1 "',\ "oJ- t,. .,.' .~:.. '\ ~ \ \ .,.;;0".. <.;:;.._\ i 'J1\.\ t~~~ 000057 r'