HomeMy WebLinkAbout943516
-_._~.,,_.-
and &U.~~ltöfj"'6'aì~ 6. . l"~
I ~f ~ i"iII is it Th.~
u.1I'PÝ 0: ~ VB-'"
~fiD In IN Wyt'A~
~~~~ÌL~ture of lease entered into by and between the State of Wyoming, acting by
~d t~f~. .. ' oard of Land Commissioners as LESSOR, and the following as LESSEE:
ê~ Energy West Corþ.
Q.~
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:
w
S TATEU.lf WYOMING Lease # 07-001....
OIL AND GAS LEASr:arcel # 189
~und Code: CS
000682
County: Lincoln
Lot 7 Section: 1 Township: 23 North Range: 118 West of the 6th P.M.
NENW Section: 14 Township: 23 North Range: 118 West of the 6th P.M.
SWSW Section: 11 Township: 23 North Range: 118 West of the 6th P.M.
Acres: 119.97
$120.00
($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,
compl&tion, 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 ~tate
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 everytbenefit thereof shall
inure 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, Feb 2007 A.D.
Lessee Signat
and through its
LESSOR, STATE
City:
Phone:
ticn
11; M4-1-.
Address:
Before any road, building, drilling pad construction, building construction or other earth moving activities commence, plans for such actlvlUes Qndudlng maPs) must be submitted for
prior approval by the 0fIIœ of State Lands & Investments or his designated representative.
The collection of fossils from this land "prohibited. Any fossils found on this land must be safeguarded by the ftnder and given to the omce of State L.nds & In~ nr hi.
designated representative .s soon .s practlcabla after their discovery.
.. .:i·-;'"
RECEIVED 11/10/2008 at 1:06 PM
RECEIVING # 943516
BOOK: 708 PAGE: 682
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
ùlL f\fnJ l.J.-\~ J t.:1'\M:
,.-.,
. s.óltoñ'l THE1:ESSEE AGREES: .
(al BONO, TÔ iumoaI'Ia bonc:Iwolll an approlHld corporale au,ely CO/1'f>IIny aulhorized 10 transact
bull_'n IIIe $Ia" 01 Wyornng. 01 auc:h OIher IUraly as _y be acœplGlelo the 1_. in the
penal sum .. requ¡red by IIIe current rule. 01 the S"le Board 01 land Cormiuione/S.
condIlIOned upon IIIe III~ 01 all ranlall and royalU"lCCtIJing 10 thll_ under 11111111115
hereof. and UIXY! IIIII~I CM'd¡¡ncø of ~II oIIIAf In and condiüon~ of Ihi~ IUeA and Ihe ftJle$
and ,_lauona ,...ung I_elo, and allO condItioned on Ihe paymenl of all damage. 10 lIIe
.urtaca and I~owmenla lherllon wh...llhlll..e cove15 land. the surtace 01 which has been
sold 01 ollie,..... ,-, Such bond 01 bond. furnllhed prior 10 Ihe devetopmenl olllle land.
conlalned In thi. lea.. may be Increaaed In IUch re..onabll amounts .. the leasor may decide
upon cOh_oœmenl 01 dnll'ng operation. and aftar lhe discovery of oil 01 ga..
(bIPAVMENTS, To nwka all paymenll accruing hereunder 10 Ihe Office 01 Stale lands and
Invesl"."la. 122 Wasl2!ilh Str..l. Cheyenne. Wyoming 82oo2~600.
(c)RENT ALS PnOl 10 the daSCOllery of oil or gal In paying quanlltles 10 pay Ihe le.sor In
ad.,.nce. beUoMlng WIlli IIIe .ftactlve dale hereof. .n .Mu.1 rental 01 $1,00 per .cre or lractlon
thereof.
Aftar Ihe dilCOlltlry 01 011 01 gas In paYIng quantiU..lo pay lIIelaslOl' In .dwnce beginning with
lhe 11151 day 0I1IIe IuM year succeeding Ihe I.... yeer In which .ctual discovery was mHde. an
.nnuallenlal 01 S2 ,00 NIl acre or fraction Ih...eof. unleu changed by.greement. Such lll/l1a11O
paid fOl anyone year shali be crediled on Ihe loyally for lhat yea,.
Annual lental. on all 1_ shati be pay.bI. in ad\/lnce lor the first yeer and ..ch year
ther.elle" No n_ 01 renlal due shall be sent 10 Ihe Ie..... If Ihe rantal i. nat paid on or
befOl. the droll It _ _, nollcI 01 clefaullwoll be ..,,110 the I...... and a penally oISO.!iO
NIl aaa 'OIlala paynwll ~II be .-.ed,
The 1_ II not legally otMlgaled to pay eilll'" tha renlal or lIIe penalty. buIll Ihe renlal and
penalIy.re not paad WIthin lII.rty (30) days .fter the notice 01 defaull has been raceived. the 1_
...11 I",""nata _lICaIly by operallon of law, T ......natlon olth. I.... 111811 nol relielle the
1_ 01 any obIlgaUon lncut1ed under Ihe 1_ olher than the obligation 10 pay ren"l or
penally. The..... sNll not be enlltled 10 a credit on ,oyaily due lor any penally paid for 1.le
paymenll 01 rental on an operaung I.....
(d)ltDVAl. TIES, The royal.... 10 be paid by I..... are:
(I) On 011. one-Slxth 0I1lla1 produCed. ..ved. and sold from ..id land. Ihe ..me to be delivered
allhe well. 0110 tile credll oIlell6Ol inlo I\Ie piPl line to which Ihe well. may be connected.
(II) On gal. Including caSInghead gal or oth... hydrocarbon sub.tances. produced trom ..Id
I.nd ..ved and sold or used 011 the premi... or In lIIe manufacture 01 gasoline or other products
lllareftom. IIIe _rII.1 vatue 81 lhe well 01 on.lI.lh of Ihe gas .0 sold or used. provided Ihal on
gal sold alllla weill. tile royally 111811 be on.slxth ollhe amount r..llzed trom .uch sale.
(III) On 4111 OIher hydrocarbom of value ilnd gauou. lubstances .nd etemenl. produced or
e.traCled. Including prO >ilne. butane; .ulphur. nitrogen. carbon dioxide. .nd helium. 8t such
royally a. shall be IRllually delarmned 10 be I.ir .nd r..son.ble,
('vI For royally purposet on gas .nd n.tural gasoline Ihe value shell b. as .pproll1ld by the
le.-. .nd ,n ilia del",""nalion of lhe \/Ilue 01 nalural ga.atine Ihe fair co.t 0' extraction shall be
conSIdered IS a dedUCtlbl. Ilem. provufed. h~_. Ih.1 the .lIowance for the cosl of extraction
_y pc'" Iwo-thinla of lhe .mounl or vllue only on .ppro\/ll 01 the 1Il1O( .nd in no evenl shall
the pIIce ,or gal. 01 natural gasolIne. be 1.1 than lhel receilHld by the United Slale 01 AmerIca lor
III royalU. from the""", ~eld,
(v) Nalural gal and 011 actually used for operallng purposes upon thel.nd and. except as 10 the
ulurrele sale \hereof. gas or liquid hydrocarbons returned 10 Ihe sand 101 slilRllatlng the
production 01 ..I 01 _ry recol/ery PUI )OMl 111811 be royalty free.
(e) DISPOSITION Of ROVAl. TV OIL AND GAS, To dall_lo IhellllO(. or to such Indivldu.l.
'Irm 01 corporellon .. the 1_ may deaignall. .U royalty oil. gal. or other kindred hydracarbonS.
f,.. 01 cIIatga on ilia INmI- __ produced. 01. at Ihe option olthal_. Ind in lieu of said
loyaIIiesln kind. ilia ..... 8W"' 10 pay the lauor lhe ~eld marllll price or \/Ilua of all royalty
011. gal, or OIher kindred hydtocarbon. produced and salHld.
When Ihe IIUOI' IIedIlo lIka III royalty oil. gal. or other hydrocarbons In kind .uch as oil. gal.
or other kIndred hyófoc:arbon5 111811 be good merchantable oil. ga.. or other kindred
hydrocarbom, The 1_ shall II ~ furnish .Iorage fOl royalty oIllree 01 char1¡ø for thirty
(30) droys alter ilia end 0I1IIe calendar month in which the 011 I. produced. upon the leued
pram.... 01 II ""' auc:h ptace a. Ihe 1_ .nd Ihe le_ may II\Jtually .gr.. upon. provided.
Ihalthe 1_ 111811 not be held liable for 1011 or d..tructlon 01 royalty oil 10 Itored from cau..s
beyond hll control
The fr.. sIoraga 01 011. II herein provided. shalt apply only allong II the said ollis the ~,operty
01 the 1_,
(I) MEASUREMENTS OF PRODUCTION, To gauge. maa.u,e end correct lor I~tute .11
prod_from _ _ In conrarmance willi ilia rulea and reguieUon. acIopIed by \he Board 01
Land eo.rm-. and report said production 10 lhe IIUOI' In accordance th.,....¡lII.
To keep bOoIII. rlClOflla. and reporta l8ll8lnlng 10 IIIe production from \he land herein leesed .s
well es IhoM peltltl1lng to \he production from oIIIel weill OJIIIIIIled by \he 1_. hll OJIIIIIIlor.
or 1Ub-l_ on other lands. which shall be opened .1 .11 II".. for the Inspection 01 .ny duly
.ulhonzed eganl 0I1IIe 1_,
To lumash IIIe IIUOI' WIth urog¡naI pipeline report. .hOWlng Ihl day. monlh. yea,. amounl.
gr.III..... end \an1IIIItur.. of all 011 run .nd with monthly reports showing Ihe month. year.
amoun!, and pfice 01 all galllld natural gas gasollnl end other products produced and sold from
the I.nd herein leased. and Ihe .mount 01 gas relurned to the ..nd.
(g) MONTHLV PAVMENTS AND STATEMENTS, Unl"I Ihe lime 01 payment Is olherwlse
extended by \he Office 01 $late lands and Inll1l.l"."t. to make paymenl on or belore the
twef\Uelh (20th) day ollila calandrol month IUcceecling the monlh 01 producUon and remowl and
..Ie of 011 and gal ',om saId land, and 10 'urn,sh sworn roonlhly .tatemenll Iherewlth .howlng In
data,lthe quanllly and quallly of Ihe producllon (PIr well il reqUlled wh.... practical) from the land
he'eby I..sed. and IIIe quanhly ilnd quallly of Ihe production (per well where practical) Iromolfsel
well. upon comenng or conuguou. land operaled by Ihe I...... hll O IIIIItor or lub-Ie.... .nd
.uCh OIher Inlomwlion as may be cailed lor in the form or report prescribed by 1_.
(h) WELLS TO BE DRILLED, To dnll.nd O IIIIIle effectivety.iI weill _ry 10 r..lONIbly
011... well. upon and produCllon from .dJOlning I.ndl.
To dnll auc:h adejlllOl\al weIIa al auc:h limes or pI.ces .s are necessary .nd IssenUal 10 thl
proper cIeveIopmanl and conmeraal production of thl oil .nd gal conllnl of said land.
(')lOG OF WELLS AND REPORTS, To k..p a log. In thelorm approlHld by Ihe leasor. 01 each
well dnlled by \he I..... on Ihe lands herein leased. .howing Ihl slrata and charecter oIthl
fomwhonl. wel... unds .nd ""n....1 deposit. penatraled by the driil, amounl 01 casing. :¡jze .nd
where ..I. and auc:h other In orlnilllon as the lellOl may require which log or copy thereol shall
be IUlllllhed 10 ilia ICISIOI,
To fII. progreu repona, In the lorm prescribed by thlleasor. lithe end oI..ch thirty (30) day
P8110d whlla each well " being drolled.
To file annually. or'l auc:h limes as the I'uor may require. maps showing the development 01
the structure .nd the Iocauon of 811 weils. pipelines and other WOIÌ<I used In conneclior. with the
OJIIIfIIllona 01 \he 1_ upon said land,
To meke auc:h oth8I',epona P8nalning to the production .nd operation. by the I..... on said
land. .nd report such other Inlotrœlion as may be pouessed by the lessee on Ih. wetls.
producllon or operaùona 01 OIhers on lands on th. same geologic .tructure thai may be 01
Iß1>Or\ance In effecting proper devetopmenl'and O IIIfItlon ollhe lands herein I..sed. as may be
calliOd '01 by the 1_, All 101)$ , maps. and reporta .hall be .ubmitted Induplicale and the Office
01 S"le Landa and In_II _y waive auc:h reporta as conditlonl nwy warr.nt.
O)PRODUCTION. To operata lhe weill upon the land herein I..sed In a COf11ICIlenl and effident
manner In an endee_1o recover all the 011 and gal economically poaaIbI.from said land and 10
prevent IIIe under dt8lll8Qe oIlhe 011 .nd gal Ih...eund... by weill operaled by the I..... or
olhers on comenng 01 conUguOU. land. 10 Ihoae leaaed herein, All plans or melllod' lor the
PUI )OSl 01 .linuatlng 01 IncreaSIng production on I.nd. herein le.sed other than tllOSl In
corrmon uae shall 'Irst be presenled 10 Ihe lenor for .pproval before being put inlo .ctual
operlUon,
No prodUChon IfII'MmenI. limiting. reatricttng. prorating, or otherwl.e affecting Ihe
nilluralproduCIlOll trom sa'd land shall be enle,ed Inlo by Ih. I...... nor shall the Ie.... limit.
reslntl. 01 prOIa.. the nalural produchon I,om said land in any way or In any event. .xcept with
the consenlln wnling 01 the lel50l 'lilt had an ob"lned,
(k\SUSPENSION OF OPERA nONS. Should any well drilled upon I.nd. covered by Ihl.l.ase
obtaIn prodUCllon 01 011, ga~. or other hydrocarbons In paying qu.nililes Ind IIlhl Ilssee is
unabll to ..l8bIlsh . sali"aclOIY ".,k.1 for the oil, gal or hydrocarbon. produCed Irom said well.
Ihe 1_ _y apply 'or and Ihe lall60l may grant permission lor the suspension 01 production
operahon. unlll auc:h Umet a. a uli.raClory market lor Ihe product Irom said well can be
devetoped, Dunng the hme any IUCh SUSpenSIon 01 operatlonl \I In elfeet. the 1.1... sh.1I
conlinue to pay tha annual rental of S2 ,00 pe' acre or lraclion Ihereol provid.d by (c) above. and
Ihl5 I.... shall r_ln In effecl as though 011 or gal wal being produced from said lands.
(I)DILIGENCE.PREVENTION OF WASTE, To e.ard.. r"lONIble diligence in drilling.
prodUCIng. Ind operaling 0/ well. on Ihe land co_ed hereby. unleu consent 10 su.pend
operalions 1~ly ia grenled by the 1esIot: to cany on all operationa hereunder in a good and
workmanlike __ In acx:onIInce WIth .pproved methodl and practice. having due regard for
IIIe prevcIII'- 01-'1 0/ 01\ and gal. 0I1IIe entrenœ 01 wel...1o the 011 or gal bearing send. or
.....ta to IIIe ~ 01 In Ury 01 auc:h depoIIlI. tha ~atlon and conMMItion 01 the
property 'or lutuN produc:\IlIe operaUons and 10 Ih. h..lth Ind safely 0/ workmen and CIII'f¡Ioyees:
10 plug securely In en approved nwnnar .ny well before .bendonlng It. .nd not to .bend\X'l .ny
..._u ___....._... ___................ ~~ 1_..".. "'ft' In. ttriU an"""". ,,-,thin two hundred 1200\ leetol any of
'II oular boundarie. 01 th. la.-.,....ed hereby. unlen 10 ¡ I dralnaga by weill
Jrilled on lands adJOIning Ie. 200 laII "om the prop. . reol; 10 conduct all
O IIIIItlons IUbJect 10 \he Inspoo....on 01 \he 1_: 10 carry oul 81 \he lesMe'I 8JI IIII1" all
realONlble OIders and requl_ts 01 the IIUOI' ....UIIe 10 ilia prevcIIIuon 01 _Ie and
pr_tion ollhe property and the hMlth end lafely 01 WOftcIMn mcludlng IIIe rep anung end
re.eeding 0' drilling lilaS and oth8I' er_ dlaturbed by drtlling operattons .nd on IIIluta 01 the
les... 10 to do the 1_ shall have \he righl. Iogather with other rlClllUlM herein provlCled. 10
enler on thl property to repair llamaV' or prevenl walta al the lesMe'I aIII**'; 10 Ibide by and
conform /0 v.lid applicable regulalion. prctSCtibec/ 10 ,elmbulMlhe own... ollhe auri'ac:o. ir othe,
Ihan Ihe leuor. or 1_ 01 grazing right. lII...aot lor actual damagaa lherelo and injury 10
I~ovements thereon. provided. Ihel Ihe 1_ sNll nOl be held ,esponsabla for acts of
providence or don. beyond his control.
(m)TAXES AND WAGES-FREEDOM OF PURCHASE. To pay. when due all ta_ lawfully
......ed and lel/led und... Ihe 1_ oIlIIe S"1e 01 Wyoming upon i~lI. oil .nd gal
produced from Ihe land hereunder. or other righll. property or...... of IIIe 1_. 10 locord a,1
workmen and lI'f1IIoyeei corrØtlefreedom 01 purçhaM, and 10 pay all wegea due WOftcIMn and
employee. in conformance with Ih. 1_ 01 tha S"1e 01 Wyoming.
(n)ASSIGNMENTS OF LEASE.pRODUCTION AGREEMENTS. NOIIo assign thil I.... or any
inlerell th....ln. nor subll' any portion oIthlleasad pNIIiS81. except with lilt consenl'n wriling
01 Ih. 1_ firsl had .nd obtained.
All overriding royalU.. to be \/IlId. IftIII have the apptOllal oIlhe Board or by the OIIice 01 Stale
landl .nd In_\ments when authority 10 do 10 has been delegaled by IIIe Board .nd will be
recorded with th.I..... The Board rllMV85 the right of dllappro\/ll of such overriding loy.llies
when In Its opinion they becoIM exceuIve and henCe IfII dafrimentallo \he pIOØCIf daveloprTWlt
of the I...eillands.
(o)DELlVER PREMISES IN CASE OF FORFEITURE. To dell_ up \he teased prem_. with all
permanlnllfY1lll)vements lhereon. In good ordet and condition In _ oIlorfeilU,. oIthi.I.....
bulthl. .hall nol be con.trued to
prevent IIIe rlllllOll8l. alleration or ~ of equlpmenl and IfY1III)ve"."ts In the ordinary
course oloperetion.,
SectIon 2. THE LESSOR EXPRESSL V RESERVES:
(a) The righllo I.... sell. or oth8fwi.. dlapose ollila IUrf.ce 01 the t.nd enilrec:ed within thiS
I.... under exllUng 1_ OIIaWl h_fIer _Cled. Ind In ec:conIanCe \M1h the rulas of Ihe
Board 01 Land Corm'isslon. InlOla, .. IIIe IUrflce I. nol necesury lor \he U.. 01 \he 1- in
the conduCl 01 operaUonl hereund....
(b )Th. right 10 I..... sell. 01 oth8fwi.. dispose of other mineral OIlUbsurface ,esou,ces nOI
co_ed by lIIe 1_. in IOCQIdanœ \Mth IIIe appIiceble 1_ ancIlhe ""as 0I1IIe Board 01 Land
Cormisaloners,
(c)From the operation of thll t..le. the surface I.nda hereto/ore granled for nghll-ol-way .nd
....ments and ...erves the right 10 granl .uch other rIgh~y end_ts II provICIecI by
the ltalutes 01 the Stale 01 Wyoming. a.1ong ..such rlghll-ol_y .nd -"11\11 do not conflIct
wlIh the operation. lor oil and gal on the land h.....n leased.
(d)The righllo relu..lo COI'IYT1II \he I..sed lands to. unit pI.n 01 developmenl" Ihe Board rinds
such action would i""a'r the Iessor'. '-* righl 10 take its royalty gal In kind end 10 puråIIIt
ell other gal allocaled 10 lhe leased lendll provided In Stc\ion 3(I)beIOW.
(1)ThI righllo .lIer or modify Ihl quanUIy Ind rate 01 produdlon 10 \he end thai welte -y be
ellmin.ted or thai production may conlorm 10 the I....... talr 1118,. 01 ~ production under
any syslem 01 Stale or National curtall".,,1 and pror1IlIon IUthorized by law.
(1)1n .ddlUon 10 III righllo tak.III royally ga.'" kind. \he Itesor r...-th. righland option to
purcha.. all other gal produced lor saI. or use off lilt !ailed Ianda. Thll option shall be
e..,dsed only lithe Board flndl th.11IIe ~ has ~vecI and II willing 10 IccepI a bona fida
offer from a purcha.... who Inlend. 10 MIl or tranlport Ihe gee InlO Inl"""" cormwca and lllal
one or marelntra...le purchasers (I.a,. pu~ who will use. consume. or sail \he gal lor use
or consu"1llion enllrely \Mthin the S"1e of Wyoming) IfII\MUIng and l1li1 10 purcha" the gal
upon tenre IeBlONIbly CQI'I1)II8bI.1o and It IaIIla. favorIbIelo IIIe 1_" Ihoae offered by
the inl.....I. purchaser. Th. Board llhallwellle thll opIIon and PInnll an Intersta.. sale II it finds
thai no Intraltale putchesar II willing and able 10 purchase IIIe gal upon lerms which ere
re.lOnably CO/Y1IIIrablelo.nd .11..., as flvorabla to lhel_. Aa. condition 10 such --.
a satl.tactOlY agreemenl may be antered Inlo by which th. produdlon of III royally gal nwy be
delerred unUl1I can be produced and sold for conlU"""on ancI u.. entirely within the Slate of
Wyoming. .
Section 3, APPRAISAl OF IMPROVEMENTS. Th. I..... sNll have thl righl su\I ecIlO the
provisions 01 TlIII 36. II 10 State and Stale Schoollandl. and Tilla 11. as to Stale Loan .nd
Inlleltment. Board land.. W.S. 1877. 10 remove .ny lrrCIrovemenll owned by I..... withJn.
resaonable Ume .fter the lermination 01 thll I..... ....... 111'_ thai Iny lUch IfY1III)vemenll
nol ,emovecl within. reasonable tlmalfler tarmlnallon 01 thil 1_1IhaII be dIspOtIed 01 pursuant
10 the abolle llalul".
'SectIon 4. FORFEITURE CLAUSE. The BoInI shall have \he ~ and lull\Ol11y 10 cancel
1_ procu,ed by 1nIUd. cleceiL or rri...",..,..tlona. or lor ilia.... 01 ilia landa lor .........". or
Illegal purposet. or lor the violation 0I1IIe covenanta 0I1he 1_. upon proper proof tlWeof. in
Ihe tYtInlllltllhl I.- shall del8uJlln \he ptlfOlllllllCl or CIIII8MIIC8 01 .ny 01 \he 1--.
covenanll, and llIpuJ.Uonl hereof. 01 of Ihl ganeraI nlgUlallOns prorroIgalld by \he Board 01
land Conmulonanl.nd In lorce on IIIe dale hereof. the Itesor shall_ notice of such failure
or default elth... by personallClnrice or by certlfliOd or ~alClf1lCl mall upon IIIe 1_. and II auc:h
failure or d.flull continues 101 I period of thirty (30) dlyalltat the MNIce 01 such notice. then
and in that event the lessor may. .1 lis oøUon. declare a forfeiture end cancel thlllease.
lMIereupon III rights .nd privileges. obtained by the I..... hereunder shell terminata .nd cea..
and the 1_ may IIHI'Iter and lake posaeulon 01 laid pram... or any part thereof. These
provlslonl.hall not be conltrued 10 prevent the IlIIIrclst by Itesor any legal 01 equitable remedy
which the ItIIOI' mighl otharwlll8 have. A weI_ 01 any par1lcu'" cause or lorfeiture 111811 nol
prevenllhe canceltaUon and lorfeiture oIthil 1_ by any other cause of lort.dura. or 100th.
same caUII8 occurring al any ath... lime.
SectIon 5. RELlNQUtSHMENT AND SURRENDER. Thil I.... may be relinquIshed and
.urrendered 10 I'ssor a.lo all or any legal subdiviSIon 01 laid tandl..,oIlowa:
(.) II no operation. halle been conductecl under ilia .... on Ihe lancllo be relinquished. the
Ie.... 111811 file with the S..te land Board and Stata Loan .nd Inveatment Board. a written
rellnquilhmenl or surrender. duly atgned.nd.r:itnoIM8dged end stating.,.,.n thel no operations
hive been conducted on the lend. The rellnqulshmenllO filed shall becomI affective on \he date
end hour 01 receipt thereof In thl oIIIœ of the Director or .t aome laler dat.. If such be 10
lpacifled by thll..... therein. If Ih. ..Id rellnquishmenltaill 10 ltall \hel no operation. have
been conducted. thl effective dale of relinqulshmenl shall be Ihe dale thl rellnqulshmenlll
.pprolHld by Ihe Board.
(b) If operation. have been conducted under thl I.... on land propostcIlo be relinquished. \he
lei'" shall give Ilxty (60) days notice and shall file \Mth \he Director. written rllínqulshmenl or
lurrander duly .cknowtedged .nd ItaUng lherein thel opereuons halle been conduCled on the
land. The relinqulsh".,,1 111811 not becoIM affective unUlthelend and IIIe wells thereon shall
have been placed In condiUon acceptable 10 lessor and shell have been epproved by IIIe $lale Oil
and Gas SupeNilOl'.
All rentals becoming due prior 10 a surr.nder 01 rellnqui.hment ~ng effective. shall be
payable by I..... unl... payment thereof shell be wallHId by lessor. A relinqulsh"."t hailing
become effective therl shall be no recourse by 1_ and IIIe 1_" 10 \he relinqUIshed lanc15
may not be r,inltaled. '
c:amRCAT'l!
I CødIIV eøI ... III Ð ~ .rrmJ
1IIiIø øatPII of "'I" r '.
=onfl\e/r<
noi1s1oql0J j2SVV Yl~l:h,;- L~8íô1 01
t »r xoB Qq 't?¥f//,.tp .'
r~þÞt·I'OS08 O~ .lf~Vntt=;·
61 111~8
92 g j d LOQZ
.. . ,~
~.~ 7~ t\ N 1
OOü6'S3'
-- '" . .... ....