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OIL AND GAS LEASE 000056
This Oil and Gas Lease ("Lease") is made effective the ~ day of Januarv. 2008, by and between
Ravmond H. Moon. a married man deaDne: in his sole and seDarate orooertv. whose address is 593 South 730 East Orem. Utah 84097("Lessor", whether one or
more) and Fitzsimmons, LLC. whose address is 2201 Cabin Court Gillette, WY 82718 (''Lessee'').
WITNESSETH, For and in consideration of TEN DOLLARS, the covenants and agreements 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 for the purposes of
mining, exploring by geophysical and other methods and operating for and producing therefÌ'Om oil and all gas ofwhatsoev~r nature or kind, and layi~g pipelines, telephone and
telegraph lines, building tanks, plants, power stations, roadways and s~ctures thereon to produce, s~ve and take. c~ of s81d produ~ts :md the exclusive s~ace and subs~
rights and privileges related in any manner to any and all such operatIOns, and any and all other nghts and pnvtleges necessary, incident to, or convenient for ~e operation
alone or conjointly with neighboring land for such purposes, all that certain tract or tracts of land situated in LINCOLN. Wyoming, described as follows, to-WIt:
SEE EXlßBIT" A" ATTACHED TO AND MADE A PART HEREOF FOR DESCRIPTIVE PURPOSES
and containine 851.14 acres, more or less, (the "Premises"). . .
1. It is agreed that this Lease shall remain in force for a term of five (5) years fÌ'Om this date ("Primary Term") and as long thereafter as oil or gas of whatsoever nature or kind IS
produced fÌ'Om the Premises or on acreage pooled or unitized therewith, or operations are continued as hereinafter provided. If, at the expiration of the Primary Term, oil or gas is not
being produced ITom 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 fÌ'Om 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 drilling
of a subsequent well. If after discove¡y of oil or gas on the Premises or on acreage pooled or unitized therewith, the production thereof should cease ITom any cause after the primary
term, this Lease shall not terminate if Lessee commences additional drilling, reworking operations within One Hundred Eighty (180) days ûom date of cessation of production or ûom
date of completion of dry hole, completion or workover operation. If oil or gas shall be discovered and produced as a result of such operations at or after the expiration of the Primary
Term, this Lease shall continue in force so long as oil or gas is produced ûom 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 term. Lessee may at any time or times during or after the Primary Term 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 ûom 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 fÌ'Om said land and sold or used off the premises or in the... manufàcture of products therefi'om, the
market value at the well of ONE-SIXTH (1/6..... of the product sold or used. On product sold at the well, the royalty shall be ONE-SIXTH (1/6 ) of the net proceeds realized fÌ'Om such
sale. All royalties paid on gas sold or used off the premises or in the manufacture of products therefÌ'Om will be paid after deducting fÌ'Om such royalty Lessors proportionate amount of all
post-production costs. including but not limited to gross production and severance taxes, gathering and transportation costs fÌ'Om the wellhead to the point ofsale, treating, compression,
and processing. On product sold at the well, the royalty shall be ONE-SIXTH (1/6Ib) of the net proceeds realized fÌ'Om such sale, after deducting fÌ'Om such royalty Lessor's proportionate
amount ofall of the above post-production costs and expenses, if any.
4. Where gas fÌ'Om a well capable of producing gas is not sold or used after the expiration of the Primary Term, 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.
5. 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, ûee of cost, gas, oil and water produced on the Premises for Lessee's operations thereon, except water fÌ'Om the wells of Lessor.
7. When requested by Lessor, Lessee shall bu¡y 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 machine¡y and fIXtures (including casing) Lessee has placed on 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 information necessary to establish a complete chain
of record title ûom 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.
II. Lessee, at its option, is hereby given the right and power at any time and ûom time to time as a recurring right, either before or after production, as to all or any part of the
Premises and as to anyone or more of the formations 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 for the production of either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether
authority similar to this exists with respect to such other land, lease or leases. Likewise units previously formed to include formations not producing oil or gas, may be reformed to
exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or
reformation, 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 for 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 fÌ'Om 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 formations 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 modifÿ, change or terminate
any such plan or agreement and, in such event, the terms, conditions and provisions of this Lease shall be deemed modified to conform to the terms, 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 terminate or expire during the life of such plan or agreement. In the event
that the Premises or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production thereûom 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 fÌ'Om 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 formally 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 terminated, 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 of, any such Law, Order, Rule or
Regulation. Any delay or interruption caused by storm, flood, acts of terrorism, act of God or other event of force majeure shall not be counted against Lessee. If, due to the above causes
or any cause whatsoever beyond the control of Lessee, Lessee is prevented ûom 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 thereof, 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 term 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 form to be utilized which form should reflect
all pertinent and relevant terms and conditions of the lease. Lessee shall have fifteen (15) days after receipt, ûom 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 terms and conditions. If Lessee fails to notifÿ Lessor within the aforesaid fifteen (15) days period of its 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 govemmental 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 nellT 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 term of this lease for an additional term of Five (5) years ftom 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 lease by Lessee, its successors or assigns, on or before the expiration of the
primary term by paying the sum of Fifty dollars ($50.00) per net mineral acre to Lessor or to Lessor's credit in the deposito¡y named in this lease. 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 regarding changes of ownership.
RECEIVED 2/26/2008 at 3: 17 PM
RECEIVING # 937205
BOOK: 688 PAGE: 56
JEANNE WAGNER
LINCOLN COUNTY CLERK, KE ER, WY
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
lÇ~a<~
Raym H. Moon, a married man dealing
in his sole and separate property.
STATE OF
Úffj¡J.
}
ss.
COUNTY OF LA.rlJ1l }
000057
UNIFORM ACKNOWLEDGEMENT
BEFORE ME, the undersigned authority, . a Notary Public, on this day personally appeared Ravmond H. Moon. a married man dealilllz in his sole and
separate Droperty . 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.
LJlli
Given under my hand and official seal, this the·· day of
My Commission Expires: ( 3 -/0· êrOlð
ffig~ .2008.
Name Public: (
NOTARY PUßÔ-P9ress:
PAlJlJ\ WATTS
1 :220 SU~Jth 800 East
Orem, UT 84097
My Commission Expires
March 16.2010
STATE OF UTAH
EXlßBIT "A"
000058
ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL, GAS AND MINERAL LEASE DATED JANUARY 30, 2008
BETWEEN, RAYMOND H. MOON, A MARRIED MAN DEALING IN IDS SOLE AND SEPARATE PROPERTY. AS LESSOR, AND
FITZSIMMONS LLC. AS LESSEE.
TownshiD24 and 25 North. Rao2e 119 West. 6th P. M.
All of Tract 45, LESS AND EXCEPT: that part described as follows: Beginning at a point designated as 2/45 of Tract 45,
Township 25 North, Range 119 West, 6th P. M., Wyoming, and running thence West 302 feet, more or less, to the center of the
present state highway; thence South 11 °55' East along the middle of said state highway to the West line of Tract 42; thence
North to point number 5/45; thence East 39.75 chains to comer number 4; thence North 0°54' East 19.88 chains to comer
number 3; thence West 39.90 chains to comer number 2 and point of beginning. LESS AND EXCEPT: that part of Tract 45
Township 25 North, Range 119 West, 6th P. M. Wyoming, described as follows: Commencing at Point Number 6/45 of Tract
45, being the Southeast comer thereof; thence West along the South line of said Tract to the Southwest comer thereof; thence
North along the West line of said Tract 80 rods; thence East to the center line of the present Wyoming State Highway; thence
Southeasterly along the center line of said highway to a point where said center line crosses the South line of Tract 42; Thence
West to the place of beginning.
That part of Tracts 42 and 45, Township 25 North, Range 119 West, 6th P. M. described as follows: Commencing at Point
Number 6/45 of Tract 45, being the Southeast comer thereof; thence West along the South line of said Tract to Point Number
7/45, being the Southwest comer thereof; thence North along the West line of said Tract 80 rods; thence East to the center line
of the present Wyoming State Highway; thence Southeasterly along the center line of said highway to a point where said center
line crosses the South line of Tract 42; Thence West to the place of beginning.
Commencing at comer Number 8/45 in Tract 45, Township 25 North, Range 119 West, 6th P. M. and running thence North 9°
West 527 feet, thence North 42° East 104 feet, thence North 37° West 104 feet, thence West 184 feet to the Oregon Short Line
Railroad right of way, thence South 10°39', East 693 feet along the East Boundary of the Oregon Short Line Railroad
Company's right of way, thence South 89°30' East 130 feet to the place of beginning.
All of Tract 48, Township 25 North, Range 119 West, 6th P. M.
All of Tract 69, Township 25 North, Range 119 West, 6th P. M.
A parcel ofland situate within the westernmost portion of Resurvey Tract Number 104 of Township 24 North, Range 119 W 6th
P.M. described in particular as follows,
Beginning at Comer 3 of said Tract 104; thence south 89'40' East, 13.03 chains along the southern boundary of said
Tract 104 to the Western boundary ofland deeded to the San Francisco Sulphur Company as described on page 68 of Book 18
of Lincoln County deeds; thence North 27°3'East, 2.97 chains to a point on the northeasterly bank of the Kinney Irrigation
Ditch, a meander point on said western boundary; thence meandering northerly on the northeasterly bank said irrigation Ditch;
North 62°1' West 9.03 chains; North 26°25' West 7.76 chains; North 11'3' West, 8.81 chains; North 6'36', 10.86 chains to the
northern boundary of said Tract 104; thence South 89° 50' West, 2.51 chains to Corner No.4 of said Tract 104; thence South
33.18 chains to the place of beginning.
That part of Tract 105, Township 24 North, Range 119 West of the 6th P.M.
That part of Tract 105. Township 24 North, Range 119 West; lying East of the present Wyoming State Highway known
as 30 North excepting a parcel ofland situate within the boundaries of Resurvey Tract No. 105, Township 24 North, Range 119
West, 6th P.M.; said parcel ofland forming a portion of the right of way for U. S. Highway No. 30N, as shown in particular upon
the plat of the survey for F.A.P. No. 34-Sec. "A" by the Wyoming State Highway Department, as follows, to wit: Beginning at a
point on the Southern boundary line of said Tract 107 from whence Comer No.2 of Tract 105 of said T. & R. Bears S. 89°20'
East 1258.4 feet; thence North 89°20' West 153.4 feet; thence North 11'58' West, 2211.9 feet, thence North 89'50' East, 153.2
feet along the Northern boundary line of said Tract 105; thence south 11°58' East, 2214.4 feet to the place of beginning.
A parcel ofland situated within Tract 106 of Township 24 North, Range 119 West ofthe 6th P.M., described in particular as
follows, to-wit:
Beginning at Highway fence on West side of Highway 30N and 30 feet North of Smiths Fork River bank, running 125
feet west, thence North 300 feet, thence East 125 feet, thence south 300 feet to place of beginning, with right of way privileges
to enter above described land through driveway to Tract 106.
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