HomeMy WebLinkAbout943875
II ^- "ltl17f \
COMMUNITIZATION AGREEMENT
COv06~
Contract No. yv~ W /1'7 ':B (J'!
: I)Á
THIS AGREEMENT entered into as of the l.L day of -::J\A.\ L.j ,2008, by and
between the parties :subscribing, ratifying, or consenting hereto, such parties being
hereinafter referred ,to as "parties hereto."
WITNESSETH:
WHEREAS~ the Act of February 25, 1920 (41 Stat. 437), as amended and
supplemented authqrizes communitization or drilling agreements communitizing or
pooling a Federal oil and gas lease or any portion thereof, with other lands, whether or
not owned by the Umted States, when separate tracts under such Federal lease cannot be
independently developed and operated in conformity with an established well-spacing
program for the fielþ or area and such communitization or pooling is determined to be in
the public interest: and;
,
WHEREAS~ the parties hèreto own working, royalty or other leasehold interests,
or operating rights ~der the oil and gas leases and lands subject to this agreement which
cannot be independ~nt1y developed and operated in conformity with the well-spacing
program establishe4 for the field or area in which said lands are located; and j
WHEREAS! the parties hereto desire to communitize and pool their respective
mineral interests in lands subj ect to this agreement for the purpose of developing and
producing communitized substances in accordance with the terms and conditions of this
agreement:
~1
NOW, THEREFORE, In consideration of the premises and the mutual advantages
to the parties hereto~ it is mutually covenanted and agreed by and between the parties
hereto as follows: I
I
,
I
The land covered by this agreement (hereinafter referred to as
"Con¡ununitized Area") is describes as follows:
1.
Cr
'1
Towrtship 19 North, Range 119 West, 6th P.M.
Section 17: NWl/4
Sectibn 18: NE1/4
LincQln County, Wyoming
I
Cont~1Ïning 320 acres, more or less, and this agreement shall include only
the Mission Canyon Formation underlying said lands and the natural gas
and associated liquid hydrocarbons, hereinafter referred to as
"co$1Unitized substances", producible from such formation.
i '
RECEIVED 12/1/2008 at 11:27 AM
RECEIVING # 943875 I
BOOK: 710 PAGE: 61 I
JEANNE WAGNER i
LINCOLN COUNTY CLERK, KEM~ERER, WY
.\
..... \:\,
/1
.<..,.~ \;>'"
\; "; ,;..,
: ":;;;~ ~~\<::;~;
'J
....-."'
CUVUb¡ç,
2. Attached hereto, and made a part of this agreement for all purposes is
Exhibit "A", a plat designating the communitized area and, Exhibit "B",
designating the operator of the communitized area and showing the
acreage, percentage and ownership of oil and gas interests in all lands
within the communitized area, and the authorization, if any, for
communitizing or pooling any patented or fee lands within the
communitized area.
3. all matters of operation shall be governed by the operator under and
pursuant to the terms and provisions of this agreement. A successor
operator may be designated by the owners of the working interest in the
communitized area and four (4) executed copies of a designation of
successor operator shall be filed with the Authorized Officer of the Bureau
of Land Management.
4. Operator shall furnish the Secretary of the Interior, or his authorized
representative, with a log and history of any well drilled on the
communitized area, monthly reports of operations, statements of oil and
gas sales,and royalties and such other reports as are deemed necessary to
compute monthly the royalty due the United States, as specified in the
, applicable oil and gas operating regulations.
5. The communitized area shall be developed and operated as an entirety,
with the understanding and agreement between the parties hereto that all
communitized substances produced therefrom shall be allocated among
leaseholds comprising said area in the proportion that the acreage interest
of each leasehold bears to the entire acreage interest committed to this
agreement.
All proceeds, 8/8ths, attributed to unleased Federal, State or fee land
included within the CA area are to be placed in an interest earning escrow
or trust account by the designated operator until the land is leased or
ownership is established.
6. The royalties payable on communitized substances allocated to the
individual leases comprising the communitized area and the rentals
provided for in said leases shall be determined and paid on the basis
prescribed in each of the individual leases. Payments of rentals under the
terms of leases subj ect to this agr,eement shall not be affected by this
agreement except as provided for under the terms and provisions of said
leases or as may herein be otherwise provided. Except as herein modified
and changed, the oil and gas leases subject to this agreement shall remain
in full force and effect as originally made and issued.
It is agreed that for any Federal lease bearing a sliding-or step-scale rate of
royalty, such rate shall be determined separately as to production fro~.~
(~~) -~~ ,.'
.'-",
"
~ \"
. "
',\ '-.-.
2
.. ."
ûOii063
each communitization agreement to which such lease may be committed,
and separately as to any noncommunitized lease production, provided,
however, as to leases where the rate of royalty for gas is based on total
lease production per day, such rate shall be determined by the sum of all
communitized production allocated to such a lease plus any
noncommunitized lease production.
7. There shall be no obligation on the lessees to offset any well or wells
completed in the same formation as covered by this agreement on separate
component tracts into which the communitized area is now or may
hereafter be divided, nor shall any lessee be required to measure separately
communitized substances by reason of the diverse ownership thereof, but
the lessees hereto shall not be released from their obligation to protect said
communitized area from drainage of communitized substances by a well
or wells which may be drilled offsetting said area.
8. The commencement, completion, continued operation of production of a
well or wells for communitized substances on the communitized area shall
be construed and considered as the èommencement, completion, continued
operation or production on each and all of the lands within and comprising
said communitized area, and operations or production pursuant to this
agreement shall be deemed to be operations or production as to each lease
committed hereto.
9. Production of communitized substances and disposal thereof shall be in
conformity with allocation, allotments, and quotas made or fixed by any
duly authorized person or regulatory body under applicable Federal or
State statutes. This agreement shall be subject to all applicable Federal
and State laws or executive orders, rules and regulations and no party
hereto shall suffer a forfeiture or be liable in damages for failure to
comply with any of the provisions of this agreement if such compliance is
prevented by, or if such failure results from, compliance with any such
laws orders, rules or regulations.
10. This agreement is effective December 1, 2007, upon execution by the
necessary parties, notwithstanding the date of execution, and upon
approval by the Secretary of the Interior or by his duly authorized
representative, and shall remain in force and effect for a period of two (2)
years and for so long as communitized substances are, or can be produced
from the communitized area in paying quantities; provided, that prior to
production in paying quantities from the communitized area and upon
fulfillment of all requirements of the Secretary of the Interior, or his duly
authorized representative, with respect to any dry hole or abandoned well,
this agreement may be terminated at any time by mutual agreement of the
parties hereto. This agreement shall not terminate upon cessation of
production if, within sixty (60) days thereafter, reworking or drilli~g_.-,,\
\) .~.
"
3
" \...~"
"'-'~ ',\
"'" \\
,:C' ç):~~1,/o c ie,
\,::;1,'1
.,
.'
~..,
'-·0 ""'064
t. 0'
operations on the communitized area are commenced and are thereafter
conducted with reasonable diligence during the period of nonproduction.
The two-year tenn of this agreement will not in itself serve to extend the
tenn of any Federal lease which would otherwise expire during said
period.
11. The covenants herein shall be construed to be covenants rurnring with the
land with respect to the communitized interests of the parties hereto and
their successors in interest until this agreement terminates and any grant,
transfer, or conveyance of any such lands or interests subject hereto,
whether voluntary or not, shall be and hereby is conditioned upon the
assumption of all obligations hereunder by the grantee, transferee, or other
successor in interest, and as to Federal land shall be subject to approval by
the Secretary of the Interior.
12. It is agreed between the parties hereto that the Secretary of the Interior, or
his duly authorized representative, shall have the right of supervision over
all fee and State mineral operations within the communitized area to the
extent necessary to monitor production and measurement, and assure that
no avoidable loss of hydrocarbons occurs in which the United States has
an interest pursuant to applicable oil and gas regulations of the
Department of the Interior relating to such production and measurement.
13. This agreement shall be binding upon the parties hereto and shall extend
to and be binding upon their respective heirs, executors, administrators,
successors, and assigns.
14. This agreement may be executed in any number of counterparts, no one of
which needs to be executed by all parties, or may be ratified or consented
to by separate instrument, in writing, specifically referring hereto, and
shall be binding upon all parties who have executed such a counterpart,
ratification or consent hereto with the same force and effect as if all parties
had signed the same document.
15. Nondiscrimination: In connection with the performance of work under
this agreement, the operator agrees to comply with all of the provisions of
Section 202(1) to (7) inclusive, of Executive Order 11246 (30 F.R.
12319), as amended, which are hereby incorporated by reference in this
agreement.
IN WITNESS WHEREOF, the parties hereto have executed this agreement as of
the day and year first above written and have set opposite their respective names the date
of execution.
~','\
r,
,,"
\:; t,J
.i' .)
."'. ,~
4
\ ,
wi' \\ " \ ...~ ,~~\,).
,,~ \\ \.. < ,'!¡}.
rt;'\~'~::};:~~:~\':~'~ ~",
(:\l
¿¡"
, ,
.'
day of
By:
Title:
Agreed to and accepted, this 30+~ day of Tu. vee...
CHEVRON U.S.A. INC. ""'
By: L". £), 7~A
Title: d-~ I~ f'r- f".. r ¡::p... r/
Agreed to and accepted, this II éf day of -X /,.,
::~?ORE EXPLORATION, INC. I
Title: ¡/fJ- ðev4#~f / ~ i".,¡-AiKI
5
. 2008:
, 2008:
, 2008:
eOû065
<'\
-, ~",,'"
....r,~\\ '",""
.,/. 1\-\1 ,-,
~~)'G' .'}
~~ -.\ c\ ,,~,~\ \ 't:1'\)~,
, \\ \' \,~..\~,).l.~ ~l ,..("""1
__ ..,; \ ~} :~~>~:)t\:¿~:~\;:<'\'''~ t)',· '
t.. '".' }.\ ! ...'\ ;~...
~i;"-~
ACKNOWLEDGMENTS
ûOv066
STATE OF
COUNTY
owledged before me on ,
for the Secretary of the Interior, United States Department
GIVEN T~ER MY HAND AND SE OF OFFICE this the
2008V-'-
day of
Notary Public
STATE OF TEXAS
§
COUNTY OF HARRIS §
This instrume~~ was ;icknowledged before me on~. 3fJ, 'ð'OO( ,
by C 1). E:i::i2.b1G , Attorney-in-Fact for Chevron U.S.A. Inc., a Pennsylvania
corporation, on behalf of said corporation.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 3 rJf' day of Ju/f....-L/ ,
2008
At""'''''''
,~~.;~tr.' ry'ø;-~
~J: .:n
"j¡;';;\~;~
""II""\:
SHANNON DUBBELDE
No~ry PUbliCI State of Texas
y Cornm IIIslon Expires
Sept.mber J2, 20'0
cJ/¿IUUtff¡ !iJuMddL
Notary Public
STATE OF d~~
COUNTY OF cØk~
§
§
This tz¿ment w~~wledged before
by.á 'L4Vm 'f::t..¿ , as .
Exploration, Inc., on behalf of said corporation.
---, //Z7J c'tJ J>
for Fairways Offshore
tf .
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 11- day of ~J;;
2008
--.. ,
6
N~A~
., "1 't''I}\ -'~'
, ¿ 'ÒV, \ .(~,:~,:~.;,...
'\ .\ ,'\ "'\ ,..1, -'.
- ~v;,'{~~1t'
(', '." .-\
<\"
~~-~. Annelia H Bradford
¡!~{f, My Commission Expires
~~~~~ November 18. 2008
EXHIBIT" A"
ûOv067
To Communitization Agreement, dated effective December 1,2007, covering NW1/4
of Section 17 and NEl/4 of Section 18, T.19 N., R.119 W., 6th P.M.
Carter Creek Field: Lincoln County, Wyoming.
Plat of communitized area covering NWl/4 of Section 17 and NEl/4 of Section 18
TI9N, R119W, 6th P.M.
Carter Creek Field, Lincoln County, Wyoming
Map Scale: 1 "=2,000'
R 119 W
Tract # 1
Chevron / Fairways
"""- i7 160 acres
Uinta Land &
Grazing Co. Lease
Tract #2 Chevron / Fairways
Chevron Federal I-17M 1.)- 160 acres
~ 10 -<-/7 WYW-34544
....
...
T
19
N
Chevron Federal I-17M:
Surface Location: 1,850' FNL & 500' FWL, Sec. 17, T19N-R1l9W,
Bottom Hole: 662' FNL & 266' FWL, Sec. 17, T19N-RlI9W.
Thill doI:u!nIri ".,n:wr.,.......,. CDrIIIdInIII Md CIII¥/gtnd'.... FfIt.,..,.,.... 0Ifttt, PcrikInI elf Ittlt dItIIlYIIY 1M ~~ þy TOlIN '"'-,......, tAd., CorJ'WII:ZOOO,............. CopyrigH. 2DD2 Ptnnw.l rAAP8wdt.
7
(;00068
EXHIBIT "B"
To Communitization Agreement dated effective December 1,2007, covering NWl/4 of
Section 17 and NEl/4 of Section 18, T.19 N., R.119 W., 6th P.M., Carter Creek Field,
Lincoln County, Wyoming
Operator of Communitized Area: Chevron U.S:A. Inc.
None - Leased Fee Minerals
March 12, 1974
10 years
Bell Butte Grazing Partnership, as successor in interest to Uinta
Land & Grazing Company
Lessee: Gulf Oil Corporation
Present Lessee: Chevron U.S.A. Inc.
Description of Land Committed:
Description of Leases Committed:
Tract No.1
Lease Serial No.:
Lease Date:
Lease Term:
Lessor:
Township 19 North, Range 119 West, 6th P.M.
Nl/2NWl/4 Section 17
N1I2NE1I4 Section 18
160.00
Lease contains a provision authorizing pooling in accordance with
the acreage requirement of the agreement.
Royalty Rate: 15 Y; percent
Name and Percent ORRI Owners:
*Chevron U.S.A. Inc.
Name and Percent WI Owners:
Chevron U.S.A. Inc.:
Fairways Offshore Exploration, Inc.:
Number of Acres:
Pooling Clause:
17Y;%
40%
60%.
Except the wellbore of the Chevron Federal I-17M in which Chevron U.S.A. Inc.
owns 25% before payout and 35% after payout and Fairways Offshore
Exploration, Inc. owns 75% before payout and 65% after payout.
*Pursuant to that certain Assignment of Oil and Gas Lease effective July 15,2005
between Chevron U.S.A. Inc., as Assignor, and Fairways Offshore Exploration, Inc., as
Assignee, in which Chevron U.S.A. Inc. reserved a 17.5% proportionately reduced
overriding royalty interest on production processed at the Carter Creek Gas Processing
Plant.
"
~;::;,:;:~;\.
8
/" \ ,,\
t;' '~ó v " .,;).:':::' ", -'
~' "\ '.\ ,.,.....\? .""'I.\¥',,, ~",
':i,<~~f%1,~~:i>·· .,
,",'-,'::'. "~
\).'
Tract No.2
Lease Serial No.: WYW-34544
Lease Date: August 1, 1972
Lease Tenn: 10 years
Lessor: United States of America
Lessee: Melvin Wolf
Present Lessee: Chevron U.S.A. Inc.
Description of Land Committed:
00&069
Township 19 N òrth; Range 119 West, 6th P.M.
S I/2NWl/4 Section 17
S1I2NE1I4 Section 18
Number of Acres: 160.00
Royalty Rate: 12 )Iz percent
Name and Percent ORRI Owners:
* * Chevron U.S.A. Inc.:
Wolf Family Investment LLP :
Marvin Wolf:
Estelle R. Wolf:
Bob McDonald Investments, LLC:
Karen McDonald - Trustee:
Atlantic Oil Corporation:
Name and Percent WI Owners:
Chevron U.S.A. Inc.:
Fairways Offshore Exploration, Inc.:
17.5%
2%
1.2%
0.8%
0.3%
0.2%
0.5%
40%
60%.
Except the wellbore of the Chevron Federal I-17M in which Chevron U.S.A. Inc.
owns 25% before payout and 35% after payout and Fairways Offshore
Exploration, Inc. owns 75% before payout and 65% after payout.
* * Pursuant to that certain Transfer of Operating Rights in a Lease for Oil and Gas or
Geothennal Resources approved effective by the BLM on August 1, 2006, but effective
between Chevron U.S.A. Inc., as Assignor, and Fairways Offshore Exploration, Inc., as
Assignee, on July 15, 2005, in which Chevron U.S.A. Inc. reserved a 17.5%
proportionately reduced overriding royalty interest on production processed at the Carter
Creek Gas Processing Plant.
Tract No.
RECAPITULATION
No. of Acres Committed
1.
160.00
Percentage of Interest in
Communitized Area
50.00%
2.
160.00
50.00%
'or:'
-L·.·.'."
,-
.- \1
Total:
320.00
100.00%
>, ~i
'; (ÒU
\ (:: ~. "','.,1
..,' ~. .,.\ .> \ ~- ,\~:.~~\ ~
\ ", \\ \ ""'- ,~:1 .~.~. -~ ,
.,: j\ ;O'~~~~~~ ~,:')
\:>;. .
.,'\.
. -.1. ,-'
" f"·", 1:_.¡. ~.'
9