HomeMy WebLinkAbout939999
88 - PAID UP
Rev. 5-60, No. 2-4-89
Rcv2-J2-08
RECEIVED 6/23/2008 at 12:55 PM
RECEIVING # 939999
BOOK: 698 PAGE: 158
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
Return recorded document to:
LandPro Resources, LLC
1250 S. Buckley Rd., Suite 1-250
Aurora. CO 80017
000158
OIL AND GAS LEASE
',~';Í-~~~"'Y~'i':"'~~~,
~, ¥V.\ ';'Wf'''f;o.?i~);' £.'l·,ttJe.}· .~c:· .... "~~Jrl-~X
AGREEMENT, ~de and entçred,' . ,,,. .~,._~. . ,1, ~ ,'y of April , 2008, by and between
Clara ~<Da 'tön' a':. ~", I 2.~J.'. ~ ;<
whose address is ;'; 31'5'Säli:c' .c Q:kefiile'- ~'~ U4": 'her~inafter called Lessor (whether one or more) and LandPro Enerl!V. LLC whose address is
'. "" '''' .- "..,.... '.<.....~ ·v"., ..".. ....,..~,.... -.¡'.¡" ~ . ~'....
1250 S. Bucklev Rd.. Suite 1-250, Aurora, Colorado 80017 . hereinafter called Lessee:
WITNESSETH, That the Lessor, for and in consideration often and more dollars, cash in hand paid, the receipt of which is hereby acknowledged. and the covenants
and agreements hereinafter contained, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto said Lessee, the land
hereinafter described, with the exclusive right for the purpose of mining, exploring by seismic, geophysical and other methods, and operating for and producing therefrom
oil and gas of whatsoever nature or kind, with rights-of-way and easements for laying pipelines and erection of structures thereon to produce, save and take care of said
products, all that certain tract ofIand situated in the County of Lincoln . State of Wyoming . described as follows, to-wit:
Township 25 North, Range 119 West. of the 6th P.M
Section 5: SW/4SW/4, now described as part of resurvey Tract 120
Section 5: SE/4SW/4, S/2SE/4, now described as part of resurvey Tract 121
Section 6: SE/4SE/4, not described as part of resurvey Tract 120
Section 7: E/2NE/4, NE/4SE/4, now described as part of resurvey Tract 110
Section 8: S/2NE/4, NW/4, N/2S/2, now described as part of resurvey Tract 110
Section 8: NW/4NE/4, now described as part of resurvey Tract 121
Section 9: SW/4, now described as resurvey Tract 103
Section 17: Part of S/2NW/4, N/2SW/4, now described as Part of resurvey Tract
85 lying Northeasterly of the center of the Bear River.
Less the lands owned by Right of Way conveyed to Lincoln County in above described lands, as shown in
Book 20, Page 171. Also, less the lands owned by Oregon Short Line Railroad, its successors and assigns,
in the above lands, as shown in Book 6, Page 297. The above lands are further described in Warranty
Deed dated November 1, 1-963, recorded in April 14, 1983, in Book 199, Page 810.
and containing 916 . 46 acres, more or less. (including any interests therein which Lessor may hereafter acquire by revision, prescription or otherwise) In addition
to the above-described leased premises, this lease also covers accretions and any small strips or parcels ofland now or hereafter owned by Lessor which are continguous or
adjacent to the above described leased premises, and in consideration of the herein stated consideration, Lessor agrees to execute at Lessee's request any additional or
supplemental instruments for a more complete or accurate description ofthe land so covered.
1. It is agreed that this lease shall remain in force for a term often ( 5) years from this date and as long thereafter as oil or gas of whatsoever nature or kind is
produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as hereinafter provided. If, at the expiration of the primary term of
this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon,
then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and operations shall be
considered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one well and the beginning of opemtions
for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production thereof should cease from any cause after the
primary term, this lease shall not terminate if Lessee commences additional drilling or re-working operations within ninety (90) days from date of cessation of production or
from date of completion of dry hole. If oil or gas shall be discovered and produced as a result of such operations at or after the expiration of the primary term of this lease,
this lease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith.
2. This is a PAID-UP LEASE. In the event that payments are necessitated by other provisions of this lease, Lessee shall payor tender such payments DIRECT TO
LESSOR AT THE ABOVE ADDRESS, or its successors, which shall be Lessor's depository agent for receiving payments regardless of change in the ownership of said
land. All payments or tenders may be made in currency, or by check or by draft, and such payments to Lessor or to the depository by deposit in the US Mail or other mail
carriers on or before the due date in a stamped envelope addressed to the Lessor at the last address known to Lessee shall constitute proper payment. If the depository
should liquidate or be succeeded by another institution or for any reason fail or refuse to accept payment hereunder, Lessee shall not be held in default for failure to make
such payment until 60 days after Lessor has delivered to Lessee a proper recordable instrument naming another institution as depository agent to receive payment. If on or
before any due date lessee in good-faith makes an erroneous payment by paying the wrong person, the wrong depository, or the wrong amount, Lessee shall be
unconditionally obligated to make proper payment for the period involved and the lease shall continue in affect as though such payment had been properly made, provided
that proper payment shall be made within 30 days after receipt by a Lessee of written notice ofthe error from Lessor, accompanied by any documents and other evidence
necessary to enable Lessee to make proper payment. Lessee may payor tender any payment at any time in advance of its due date to the Lessor then known to Lessee as
provided in Paragraph 11 and such payment or tender shall bind all persons then or thereafter claiming any part of such payment. In consideration of the down cash
payment, 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 said land 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 obligation thereafter accruing as to the acreage surrendered.
3. In consideration of the premises, said Lessee covenants and agrees:
I ". To deliver to the credit of Lessor, free of cost, in the tanks at the wellhead, the equal one-sixth 0/6) part of all oil produced and saved ftom the leased
premises.
2nd. To pay Lessor on gas and casinghead gas produced from said land (1) when sold by Lessee, one-sixth.QLQ} ofthe net proceeds derived from such sale
or (2) when used by Lessee off said land or in the manufacture of gasoline or other products, the market value, payable monthly at the prevailing market
mte. at the mouth of the well, on one-sixth of such gas and casinghead gas. Lessor's interest, in either case, to bear one-sixth of the cost of
compressing, dehydrating and otherwise treating such gas or casinghead gas to render it marketable or usable and one-sixth of the cost of gathering and
transporting such gas and casinghead gas from the mouth of the well to the point of sale or use, and one-sixth of the cost of ad valorem taxes and
production, severance, or other excise taxes.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may payor tender as royalty to the royalty owners one dollar per year pernetroyalty
acre retained hereunder, 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. If such payment or tender is made, it will be
considered that gas is being produced within the meaning of this lease.
5. Ifsaid Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties (including any shut-in
gas royalty) herein provided for shall be paid to said 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 said land for Lessee's operation thereon, except water from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipelines below plow depth.
8. No well shall be drilled nearer than two hundred (200') feet to the house or barn now on said premises without written consent of Lessor.
9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land.
10. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
11. The rights of 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 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 said land 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. If all or any part of this lease is assigned, no leasehold owner shall
be liable for any act or omission of any other leasehold owner.
12. 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 production, as to all or any
part of the land described herein and as to anyone or more of the formations hereunder, 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 the 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 or reworking operations or a well shut in
for want of market anywhere on a unit which includes all or a part of this lease shall be treated as if it were production, drilling or reworking operations or a well shut in for
want ofa market under this lease. In lieu of the royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so
pooled royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion ofthe unit production that the total nwnber of surface
acres covered by this lease and included in the unit bears to the total number of surface acres in such unit. In addition to the foregoing, Lessee shall have the rightto unitize,
pool or combine all or any part of the above described lands 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 modifY, change or terminate any
such plan or agreement and, in such event, the terms, conditions and provisions of this lease shall be deemed modiJ:ied 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 said above described lands, or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation
whereby the production therefrom is allocated to different portions ofthe land covered by said plan, then the production allocated to any particular tract ofIand shall, for the
purpose of computing the royalties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract ofland to which it is allocated and not to
any other tract ofland; and the 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.
13. 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.
14. Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the Lessee shall have the right at any time to redeem for
Lessor, by payment, any mortgages, taxes or other liens on the above described lands, 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 described herein, insofar as said right of dower and homestead may in any way affect the purposes for which this lease is made, as recited herein.
15. Should anyone or more of the parties hereinabove named as Lessor 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 Lessors. All the provisions of this
lease shall be binding on the heirs, successors and assigns of Lessor and Lessee.
16. Leesee is hereby giving the option of extending the primary term 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) ofthe land covered by this lease by Lessee, its successors or assigns, on or before the expiration of
the primary term, by paying an amount equal to the original bonus paid to Lessor, its successors or assigns.
IN WITNESS WHEREOF, this instrwnent is executed as of the date first above written.
êAdn,/z1. ð7~
Clara M. Dayton
STATE OF WYOMING)
) SS
COUNTY OF LINCOLN)
BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this / ~ day of ~ .
20008, personally appeared Clara M. Dayton. a widow , to me known to be the identical person describ~d n and who executed
the within and foregoing instrument of writing and acknowledged to me that she executed the same as her free and voluntary act and deed for the uses
and purposes therein set forth.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
My Commission expires: AJ jJ.{). ~ 0( /)/ I
I
CAROLYN e."AEED - ÑÕfAAV PUBLIC
COUNlY OF _ STATE OF
LINCOLN ., WVOMlNG
MV COMUIS81ON £)(PIII£8 NOV. 2, 20n
Notary Public . jI /J .
Printed Name: ~4i'/'¿Þ/~ ;V, (ée~
Residing at ( IfZt/,~ /; {/) ~
I
0001.59