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HomeMy WebLinkAbout936671 PRODUCERS 88 -PAID This Oil and Gas Leaw ("Leaw'J is made effect~ ~~ ~~!?r ~~~b~~:~~ between 000495 Crail! D. Anderson as Tl' JStee. Claudia M. Anderson. Individuallv. and as Trustee. of the Anderson Brothers Trust dated Seotember 26.1984 for the benefit of Andrew H. An~erson. Trustor.. whose address is ~60 South 600 East Hvrum. Utah 84319("Lessor". whether one or more) and Fitzsimmons, LLC. whose address is 2201 Cabin Court Gillette, WY 82718 ("Lessee"), WITNESSETII, For and in consideration of TEN DOLLARS, the covenants and lIgreements contained herein, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Lessor does hereby grant, demise, lease and let exclusively unto said Lessee, with the exclusive rights fur the putposes of mining, exploring by geophysical and other methods and operating for and producing therefrom oil and all gas of whatsoever nature or kind, and laying pipelines, telephone and telegraph lines, building tanks, plants, power stations, roadways and structures thereon to produce, save and take care of said products and the exclusive surface and subsurface rights and privileges related in any manner to any and all such operations, and any and all other rights and privileges necessary, incident to, or çanvenient for the operation alone ot conjointly with neighboring land for such purposes, all that certain tract or tracts ofland situated in LINCOLN. Wyoming, described as follows, to-wit; SEE EXlßBIT "A" ATTACHED TO AND MADE A PART HEREOF FOR DESCRIPTIVE PURPOSES and containing 1930.67 acres, more or less, (the "Premises"). I. It is agreed that this Lease shall remain in force for a tenn of five (5) years from this date ("Primary Tenn") and as long thereafter as oil or gas of whatsoever nature or kind is produced from the Premises or on acreage pooled or unitized therewith, or operations are continued as hereinafter provided. If, at the expiration of the Primary Tenn, oil or gas is not being produced from the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling, reworking or other operations calculated to obtain or restore production from the leased premises thereon, then this Lease shall continue in force so long as such operations are being continuously prosecuted, Operations shall be considered to be continuously prosecuted if not more than One Hundred Eighty (180) days shall elapse between the completion or abandonment of one Well and the beginning of operations for the drilIing of a subsequent well. If after discovery of oil or gas on the Premises or on acreage pooled or unitized therewith, the production thereof should cease from any cause after the primary tenn, this Lease shall not tenninate if Lessee commences additional drilling, reWQrking operations within One Hundred Eighty (180) days from date of cessation of production or from date of completion of dry hole, completion or WQrkover operation, If oil or gas shall be discovered and produced as a result of such operations at or after the expiration of the Primary Tenn, this Lease shall continue in force so long as oil or gas is produced from the Premises or on acreage pooled or unitized therewith. 2, This is a PAID-UP LEASE, In consideration of the payment made herewith, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein. to commence or continue any operations during the primary tenn, Lessee may at any time or times during or after the Primary Tenn surrender this Lease as to all or any portion of the Premises and as to any strata or stratum, by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligations thereafter accruing as to the acreage surrendered, 3. The royalties to be paid by Lessee are: (a) On oil and other liquid hydrocarbons, ONE-SIXTH (1/6"') of that produced and saved from said land, the same to be delivered at the wells, or to the credit of Lessor into the pipeline to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefore prevailing for the field where produced on the date of purchase; (b) on gas and the constituents thereof produced from said land and sold or used off the premises or in the manufacture of products therefrom, the market value at the well of ONE-SIXTH (1/6~ of the pro¡luct sold or u~ed, On product sold at the well, the royalty shall be ONE-S~ (1/6'-) of the net proceeds realized Iìum such sale, All royalties paid on gas sold or used off the premises or in the manufacture of products therelìum will be paid after deducting from such royalty Lessors proportionate amount of all post-production costs, including but not limited to gross production and severance taxes. gathering and transportation costs from the wellhead to the point of sale, treating, compression, and processing, On product sold at the well, the royalty shall be ONE-SIXTH (1/6t1a) of the net proceeds realized from such sale, after deducting from such royalty Lessor's proportionate amount of all of the above post-production costs and expenses, if any, 4, Where gas from a well capable of producing gas is not sold or used after the expiration of the Primary Tenn, Lessee shall payor tender as royalty to Lessor at the address set forth above One Dollar per year per net mineral acre, such payment or tender to be made on or before the anniversary date of this Lease next ensuing after the expiration of ninety (90) days from the date such well is shut in and thereafter on or before the anniversary date of this Lease during the period such well is shut in, S. If Lessor owns a lesser interest in the Premises than the entire and undivided fee simple estate therein, then the royalties (including any shut-in gas royalty) herein provided for shall be paid Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee, 6, Lessee shall have the right to use. free of cost, gas, oil and water produced on the Premises for Lessee's operations thereon, except water from the wells of Lessor, 7, When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth, 8, No well shall be drilled nearer than 200 feet to the house or barn now on the Premises without written consent of Lessor, 9, Lessee shall have the right at any time to remove all machinery and fIXtures (including casing) Lessee has placed 011 the Premises. 10, The rights of the Lessor and Lessee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other infonnation necessary to esQiblish 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, No present or future division of Lessor's ownership as to different portions or parcels of the Premises shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division, Ifall or any part of this Lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner, 1 I, Lessee, at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after ptoduction, as to all or any part of the Premises and as to anyone or more of the fonnations thereunder, to pool or unitize the leasehold estate and the mineral estate covered by this Lease with other land, lease or leases in the immediate vicinity for the production of oil and gas, or separately fQ ' the production of either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective ofwhether authority similar to this exists with respect to such other land, lease or leases, Likewise units previously fonned to include fonnations not producing oil or gas, may be refonned to exclude such non-producing fonnations, The fonning or refonning of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or refonnation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced, Production. drilling, reworking or dewatering operations or a well shut in fot want of a market anywhere on a unit which includes all or a part of this Lease shall be treated as if it were production, drilling, reworking or dewatering operations or a well shut in for want of a market under this Lease, In lieu of the royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive royalties on production from such unit only on the portion of such production allocated to this Lease. In addition to the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of the Premises as to one or more of the fonnations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modilÿ, change or tenninate any such plan or agreement and, in such event, the tenns, conditions and provisions of this Lease shall be deemed modified to confonn to the tenns. conditions. and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this Lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this Lease shall not tenninate or expire during the life of such plan or agreement. In the event that the Premises or any part thereot: shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to any other tract of land; and royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated, Lessor shall fonnally express Lessor's consent to any cooperative or unit plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee, 12. All express or implied covenants of this Lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be tenninated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith if compliance is prevented by, or if such failure is the result ot: any such Law, Order. Rule or Regulation, Any delay or interruption caused by stonn, flood, acts of terrorism, act of God or other event of force majeure shall not be counted against Lessee. IT, due to the above causes or any cause whatsoever beyond the control of Lessee, Lessee is prevented from conducting operations hereunder, such time shall not be counted against Lessee, and this Lease shall be extended for a period of time equal to the time Lessee was so prevented, anything in this Lease to the contrary notwithstanding, 13, Lessor hereby warrants and agrees to defend the title to the Premises and agrees that Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the Premises, in the event of default of payment by Lessor, and be subrogated to the rights of the holder thereot: and the undersigned Lessors, for themselves and their heirs, successors and assigns. hereby surrender and release all right of dower and homestead in the Premises, insofar as said right of dower and homestead may in any way affect the purposes for which this Lease is made, as recited herein. 14. Should anyone or more of the parties named as Lessor herein fail to execute this Lease, it shall nevertheless be binding upon all such parties who do execute it as Lessor, The word "Lessor," as used in this Lease shall mean anyone or more or all of the parties who execute this Lease as Lessor. All the provisions of this Lease shall be binding on the heirs, successors and assigns of Lessor and Lessee, 15, If at anytime within the primary tenn of this lease and while the same remains in force and effect, Lessor receives any bona fide offer, acceptable to Lessor, to grant an additional lease covering all or part of the aforesaid lands, Lessee shall have the continuing option by meeting any such offer to acquire such lease, Any offer must be in writing, and must set forth the proposed Lessee's name, bonus consideration and royalty consideration to be paid for such lease. and include a copy of the lease fonn to be utilized which fonn should reflect all pertinent and relevant tenns and conditions of the lease. Lessee shall have fifteen (15) days after receipt, ITom Lessor, of a complete copy of any such offer to advise Lessor in writing of its election to enter into an oil and gas lease with Lessor on equivalent tenns and conditions, If Lessee fails to notilÿ Lessor within the aforesaid fifteen (15) days period ofits election to meet any such bona fide offer, Lessor shall have the right to accept said offer, 16, Except as otherwise provided herein, at the end of the primary term of this Lease, this Lease shall terminate and Lessee shall promptly release this Lease as to all acreage lying outside of the spacing units established by the Wyoming Oil and Gas Conservation Commission or any other governmental agency having jurisdiction for each well located on the leased premises or lands spaced therewith which is producing gas or water, 17. Lessee shall pay for all damage to roads, fences, improvements and growing crops caused by its operations hereunder, and will fill and level any pits and mounds, remove all board roads and board road materials, level and fill all ruts, and restore the surface of the ground as near to its original condition as is reasonably practical within a reasonable period of time after cessation of operations at each well location on the leased premises. . 18. Lessee is hereby given the option of extending the primary tenn of this lease for an additional term of Five (5) years from the expiration of the original primary term, This option may be exercised in relation to all (but no less than all) of the land covered by this leaw by Lessee, its successors or assigns, on or before the expiration of the primwy term by paying the sum of Fifty dollars ($50.00) per net mineral acre to Lessor or to Lessor's credit in the depository named in this leaw, Should this option be timely exercised as herein provided, it shall be considered for all purposes as though this lease originally provided for a term often (10) years, All of the provisions of this lease related to the payment of shut-in royalties shall apply equally to this payment, including, but not limited to, the provisions re~arding changes of ownership, _ RECEIVED 2/1/2008 at 3:35 PM RECEIVING # 936671 BOOK: 685 PAGE: 495 JEANNE WAGNER IN WITNESS WHEREOF, this instrument is executed as of the date fIrst above written. 000496 Craig D. Anderson as Trustee, Claudia M. Anderson Individually, and as Trustee, of the Anderson Brothers Trust dated September 26, 1984. For the benefit of Andrew H. Anderson, Trustor. \~l7..vI)J ,1,.[ a-n{l~(f~ Andrew H. Anderson, Trustor ~ 1J.r2.le./ Craig D. derson, Trustee 7 ' é~ -f~7ì7, Lh2&~X1P7L- Claudia M. Anderson, Individually and as Trustee STATE OF V1H'7~lt COUNTY OF (~4¡ ~"L- } } UNIFORM ACKNOWLEDGEMENT S8. BEFORE ME, the undersigned authority, a Notary Public, on this day personally appeared Crail!: D Anderson as Trustee. Claudia M. Anderson. Individually. and as Trustee. of the Anderson Brother's Trust dated September 26. 1984.for the benefit of Andrew H. Anderson. TfUst9r . to me known to be the person(s) who executed this within and foregoing instrument, and acknowledged to me that he/she executed the same. Given under my hand and official seal, this the ,f !iI,' day of (J 7 ð"íJ..evr1.-,Ú--Vv .2007. , My Commission Expires: ;;;1 (J éJ... 0: c7 D 0 Ý NaDen8 Dana .'Notary Public Cou.nty Of .. ~~ UncoIn . My _1IIIan·~"" 20," Name Public: Address: '-if' ¡;¿.,«(þ ¿1ß .J liD p~ / £Q d.~M. a.-/ {!¿-~) 'l¿I1 ,&I/t EXHIBIT" A" 000497 ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL, GAS AND MINERAL LEASE DATED NOVEMBER 8, 2007 BETWltEN, CRAIG D. ANDERSON AS TRUSTEE, CLAUDIA M. ANDERSON, INDIVIDUALLY, AND AS TRUSTEE, OF THE ANDERSON BROTHERS TRUST DATED SEPTEMBER 26, 1984. FOR THE BENEFIT OF ANDREW H. ANDERSON, TRUSTOR. AS LESSORS, AND FITZSIMMONS LLC. AS LESSEE. Township 25 North. Rane:e 119 West. 6th P. M. Section 6: All of Resurvey Tract 115 Township 25 North. Ranee 120 West. 6th P. M. Section 1: Tracts 43 and 44 (described under original survey as lots 2,3,4, SW1I4NW1I4, N1I2SE1I4 and E1I2SW1I4) LESS AND EXCEPT: 1.00 acres, more or less, described in that Certain Warranty Deed dated November 23,1949 from Parley T. Anderson etal to Alma R. Walton as recorded in Book 27, Page 380 of the Photo Records of Lincoln County, Wyoming. LESS AND EXCEPT: 1.65 acres, more or less, described in that certain Warranty Deed dated June 14, 1915 from Parley T Anderson to Oregon Short Line Railroad Company, as recorded in Book 2, Page 318 of the Deed Records of Lincoln County, Wyoming. LESS AND EXCEPT: 0.73 acres, more or less, described in that certain Warranty Deed dated August 23, 1916 from Parley T. Anderson to Oregon Short Line Railroad Company as recorded in Book 2, Page 509 of the Deed Records of Lincoln County, Wyoming. All of resurvey Tract 115 A parcel ofland bounded on the North by Tracts 44 and 116, on the East by Tract 116 on the South by Tract 43 and on the West by the Idaho State Line, containing 91.46 acres, more or less. , Township 26 North. Rane:e 119 West, 6th P. M. Section 29: SE1I4SW1I4 Section 30: SW1I4SE1I4, S1I2SW1I4 Section 31: S1I2, S1I2N1I2, N1I2NWl/4, NWl/4NE1I4 Section 32: Lots 1 and 2, SW1I4NE1I4, El/2NWl/4, SW1I4NW1I4, N1I2SW1I4, NW1I4SW1I4 , Township 26 North. Rane:e 120 West. 6th P. M. Section 25: S1I2SEl/4 LESS AND EXCEPT: 1.568 acres, more or less, described in that certain Warranty Deed dated May 28, 1932 from Parley T. Anderson etux to John Peccolo and Ennett Colobarie, as recorded in Book 17, Page 286 of the Deed Records of Lincoln County, Wyoming. LESS AND EXCEPT: 1.58 acres, more or less, described in that certain Warranty Deed dated April 2, 1938 from Parley T Anderson etux to Reuel T. Call~ as recorded in Book 18, Page 606 of the Deed Records of Lincoln County, Wyoming. LESS AND EXCEPT: 1.00 acres, more or less, described in that certain Warranty Deed dated July 28, 1959 from Theodore Anderson etal to Robert Lewis Dayton, as recorded in Book 35, Page 518 of the Photo Records of Lincoln County, Wyoming. Section 36: NEl/4, El/2SEl/4 LESS AND EXCEPT: from the hereinabove described lands, 18.16 acres, more or less, described in that certain Warranty Deed dated March 30, 1935 ftom Parley T. Anderson to Lincoln County, Wyoming as recorded in Book 20, Page 185 of the Deed Records of Lincoln County, Wyoming.