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HomeMy WebLinkAbout941774 RECEIVED 8, RECEIVING # BOOK: 703 PAGE: 704 JEANNE WAGNER This Oil and Gas Lease ("Lease") is made effective the --H!!L day of March. 2008, by and between LINCOLN COUNTY CLERK. KEMMERER Etcheverrv Sheeo ComDanv bv trustee Jana Weber. trustee Julie Michalk. and trustee Ward Anderson. whose address is 523 D Street. Rock Sorin!!s. Wvomin!! . 82901 ("Lessor", whether one or more) and Fitzsimmons, LLC. whose address is 2201 Cabin Court Gillette, WY 82718 ("Lessee"). PRpmj'd~ 118 -PAID UP ; at 3:29 PM 941774 OIL AND GAS LEASE WITNESSETH, For and in consideration ofTEN DOLLARS, the covenants and agreements contained herein, and other good and valuable consideration the receipt ar 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 I mining, exploring by geophysical and other methods and operating for and producing thereftom oil and all gas of whatsoever nature or kind, and laying pipelines, telephone ar 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 subsurfa( 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 convenient for the operatic 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: vi TOWNSHIP 21 NORTH RANGE 119 WEST, 6m P. M. ( q SECTION 17: Wl/2 NWl/2, Nl/2 SWl/4, SWl/4 NEl/4, Wti2 SEl/4, SEl/4 SWl/4 [ \ and containin~ acres, more or less, (the "Premises"). 1. 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 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 Term, oil or gas is n( being produced ftom the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling, reworking or other operations calculated to obtain or restOl production ftom 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 b continuously prosecuted if not more than one hundred eighty (180) days shall elapse between the completion or abandonment òf one well and the beginning of operations for the driIlin 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 trom any cause after the primar term, this Lease shall not terminate if Lessee commences additional drilling, reworking operations within one hundred eighty (180) days trom date of cessation of production or trom dat 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 Tern this Lease shall continue in force so long as oil or gas is produced rrom 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 othelWise provided herein, to commenc 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 8 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 (l16'b) of that produced and saved trom said land, the same to be delivered at the wells, or to the credit of Lessor into th pipeline to which the wells may be connected; Lessee may trom time to time purchase any royalty oil in its possession, paying the market price therefore prevailing for the field wher 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 theretrom, th market value at the well of ONE-SIXm U/6tb) of the product sold or used. On product sold at the well, the royalty shall be ONE-SIXm (1I6tb) of the net proceeds realized trom sucl sale. All royalties paid on gas sold or used off the premises or in the manufacture of products theretrom will be paid after deducting from such royalty Lessors proportionate amount of aJ 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. compressio~ and processing. On product sold at the well, the royalty shall be ONE-SIXTH (116'") of the net proceeds realized trom such sale, after deducting trom such royalty Lessor's proportionat amount of all ofthe above post-production costs and expenses, ifany. 4. Where gas ftom 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 se forth above One Dollar per year per net mineral acre, such payment or tender to be made on or before ~he anniversary date ofthis Lease next ensuing after the expiration of ninety (90 days ftom 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 fo 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, tree 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 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 or 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 chair of record title trom 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 01 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 operation! 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 ofany other leasehold owner. 11. Lessee. at its option, is hereby given the right and power at any time and trom time to time as a recurring right, either before or after production, as to all or any part of the Premises and as to any one or more ofthe 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 for the production of either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective ofwhethel authority similar to this exists with respect to such other land, lease or leases. Likewise units previously formed to include fonnations not producing oil or gas, may be refonned te exclude such non-producing formations. The fonning 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 rrom such unit orily 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, trom time to time, with like approval, to moditÿ, change or terminate any such plan or agreement and, in such event, the tenns, conditions and provisions ofthis Lease shall be deemed modified to confonn 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 tenninate 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 theretrom 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 ftom 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 tenninated, in whole or in part, nor Lessee held liable in daDiages, 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 stonn, flood, acts ofterrorism, act of God or other event offorce 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 trom conducting operations hereunder, such time shall not be counted against Lessee, and this Lease shall be extended for a period oftime 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 defuult 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 ofthe 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 fonn 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, trom 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 fuils to notitÿ 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 tenninate 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 surfàce 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 tenn of Five (5) years ftom the expiration of the original primary tenn. 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 tenn by paying the sum of Fifty dollars ($75.00) per net mineral acre to Lessor or to Lessor's credit in the depository 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 ofthe provisions of this lease related to the payment of shut-in royalties shall apply equally to this payment, including, bùt not limited to, the provisions regarding changes of ownership. 000705 ~_...... IN WITNESS WHEREOF, this ins:rumem is ex~uted as of the date first above written. ~á Wfh¿IL--- Sbeep Company b.y. partner Julie Miebalk Etebevery Sheep Company by partner Jaoa Weber State of Wyoming ~:¿¿:¿ County of '3:ub/~SS -' ~ The . foregoing instrument was ." ~cknoWJedgrd before me by . . IN@rcl 1&r.kv'"SØ'"V1 Elchcyen' Sh«pC_1),vn b" partner "·ard Anderson th" 01 d f IAA ~ . '. . )S - I ay 0 .. ...... ---v- 1YI.,FI;A~~;i'.i:N;':&"\i¿~OTARYI_BfJC '~#;W;,;,:,·"ép£.)y COUNTYÖF STATE OF Witness my band and official seal. SUBLE1ïE WYOMING ,,\J ('), () J A/l ' MVCOMMISSIONEXPIRBFEB1lUMY22,2012 ~~ ..u~0Ær.. , ...-. ~()tâCY PUbliC Mj' commission expires:_d::/ ;)Ø-/do/d- STATE OF /~ t J FXIFOR\I ACKNOWLEDGEJl-U;",-Y 55. COUNTY OF MfA- } BEFORE ME, the undersigned authority, a Notary Public, on this day personally appeared "J u..1L ~ m~ M Ie J known to be the person(s) who executed this within and foregoing instrument, and acknowledged to me that he/she executed the same, . to OJ"n und~ my h",d Md nffici"I.,", !hi"h, 5 ¡<. day nf f}t~ ' 2008. My Commission Expires: /0//3/2.Öl{ , . Address: ,- '000706 All-purpose Acknowledgment . STATE OF ~l om I V\ ~ On 5/q J7-DOV in and lor sai~ State, personally appeared t!J1è)r ~ v? Ar'D\.er-o V'- ~rSOnallY known to me -OR- 0 proved to me on the basis of satisfactoryevidence/ to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacíty(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. , COUNTY OF Suht-dle " . before me, the undersigned, a Notary Public M. FLANAGAN NOTARY PUBUC COUNTY OF . STATE OF SUBLmE WYOMING MY COMMISSION EXPIRES FEBRUARY22. 2012 Name mrrinted) ~ I . 't$>5ßq ~ {VV\ My commission expires: I ;) / .;2;;)", / ~O ¡ &- (Seal) HEL74!14 (2-06 97916) 00070'7 State of , !'.¡)0(~J- S't()Ed~ County of Jðf1O, LÜrA f[¿, Before me, the undersigned authority, a Notary Public on this day, personally appeared Jana Weber know to be the person who executed this with and foregoing instrument and acknowledged to me that she execute the same. Given under my hand and official seal this the ().(jrJ..-day of ~008. My commission eXPires:~ Notary Public J~ ¡¡IJ .&-t~C¡V- t. ...':' r', ) "\ ~': ,; Address: SO~ L lid II i ~:J} -.- ~.~ M" C __.~:,\Jt<.."u....'J..u,' . focK...~t..··f.:&:,: "~' . ',c,'~';;:'::;>:: 4"._:,.. - . I)" ~ . ',~. 7.