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HomeMy WebLinkAbout944458 88 - PAID UP Rev. 5-60, No. 2-4-89 Rev 2-12-08 RECEIVED 1/212009 at 10:39 A' . RECEIVING # 944458 BOOK: 712 PAGE: 327 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER. WY Return recorded document to: LandPro Energy, LLC 1250 S. Buckley Rd., Suite /-250 Aurora. CO 80017 on., AND GAS LEASE COû327 AGREEMENT, Made and entered into the 17th day of August . 2008, by and between Lillian E. Harrower and Thomas S. Harrower. Jr.. Trustees of the Lillian E. Harrower Revocable Mineral Trust dated November 2.2007 whose address is 8603 PowderhouseRoad. Cheyenne. WY 82009 , hereinafter called Lessor (whether one or more) and LandPro Energy, LLC whose address is 1250 S. Buckley Rd.. Suite 1-250. Aurora. Colorado 80017 ...... hereinafter called Lessee: WITNESSETH, Thatthe Lessor, for and in consideration often and more dollars, cash in hand paid, the receipt of which is hereby acknowledged, andthe 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 stmctures 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: SEE EXHIBIT "A" A TT ACHED TO AND MADE A PART HEREOF FOR DESCRIPTIVE PURPOSES. and containing 780. 76 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 ofIand 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 thatthis lease shall remain in force for a term of five (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 tenn 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 operations forthe 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 primarytenn, 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 pay or tender such payments DIRECT TO LESSOR AT THE ABOVE ADDRESS, or its successors, which shall be Lessor's depository agent forreceiving payments regardless of change in the ownership of said land AIl 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 refhse 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 of the error from Lessor, accomparued by any documents and other evidence necessary to enable Lesseeto make proper payment. Lessee may pay or tender any payment at anytime in advance of its due date to the Lessor then known to Lessee as provided in Paragraph 11 and such payment or tender shaJl 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 0iQ} part of all oil produced and saved from the leased premises. 2'd. To pay Lessor on gas and casinghead gas produced from said land (1) when sold by Lessee, one-sixth (1/6) 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 rate, 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 ofthe cost of ad valorem taxes and production, severance, or otller 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 owuers one dollar per year pernet royalty 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. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then tlle 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 anytime to remove all machinery and fixtures placed on said premises, including tlle right to draw and remove casing. II. 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 aU recorded instruments or documents and other information necessary to establish a complete chain of record title from Lessor, and then omy 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 otller 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 fOlmations 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 of a market under this lease. In lieu ofthe 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 of the unit production that the total number 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 right to 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 govemmental authority and, from time to time, with like approval, to modify, change or terminate any stich 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 said above described lands, or any part thereof, shall hereafter be operated under any such cooperative or utùt plan of development or operation whereby the production thereftom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract ofland shall, for the purpose of computing the royaJties to be paid hereunder to Lessor, be regarded as having been produced from the particular tract of land to which it is allocated and not to any other tract of land; 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 consentto 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 anytime to redeem for Lessor, by payment, any mortgages, taxes or ofher liens on the above described lands, in the event of default of payment by Lessor, and be subrogated to the rights of the holderfhereof, 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 tlùs 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. AIl the provisions of this lease shall be binding on the heirs, successors and assigns of Lessor and Lessee. This lease shall cover and bind all interest of the Lessor which may be acquired subsequent to the date of this lease which Lessor may hereafter acquire by way of reversion or otherwise. 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) of the 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 instrument is executed as of the date fu-st above written. ÓO¡j328 7fT ACKNOWLEDGMENT STATE OF WYOMING COUNTY OF lfJ f\~ ) )SS ) BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this Z. \ day of l\-~tMt ,2008, personally appeared Lillian E. Harrower and Thomas S. Harrower. Jr.. Trustees of the Lillian E. Harrower Revocao e Mmeral Trust dated November 2. 2007 , to me known to be the identical persons described in and w xecuted the within and foregoing instrument of writing and ooknowlolgod to ~ th.t th,y """,nt,d tho _, .. tho" fre' Md vnlnn"", net.od ~ fo, tho n= .nd 7""J'~ th"";n net forth IN WITNESS ~OF> I hnv, h'=nro net my hMd.n nffixed y rir h, dny. ~ '~ .bov, written. My CommISSion expires: Ær VI I 'î, lb{,\ "\Ü!)'" ..~ ta ublic . j) . ri ted' ame: Jj1..¿Jhdhll. íh10 Residing at ':618 lX-l I ~. 6'1 \JÔ. (Seal) NOTAHY PUBLIC STATE OF WYOMING MY COMMISSION EXi'lfŒS APR. 19 2009 .~~-;.\.~.~...~ I EXHIBIT "A" ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL GAS AND MINERAL LEASE DATED AUGUST 17, 2008 BETWEEN LILLIAN E. HARROWER AND THOMAS S. HARROWER, JR.. TRUSTEES OF THE LILLIAN E. HARROWER REVOCABLE MINERAL TRUST DATED NOVEMBER 2.2007 AS LESSORS AND LANDPRO ENERGY. LLC AS LESSEE TOWNSHIP 24 NORTH. RANGE 119 WEST. 6TH P.M. OOiì329 Section 8: Tract 73 (originally described as W2SE) Section 13: Lot 12 Section 14: Lot 23 Section 17: Tract 67 (originally described as N2NE, E2NW) Section 18: Lot 16, W2SE, SESE Section 29: Lot 7 Section 30: SENW, S2NE, W2SE, E2SW