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Home My WebLink About944523 Form 88 - (Prod. Pooling) (Wyoming) (640 S.I.) OIL AND GAS LEASE PAID UP OOu477 Our MR 3346 Net acres 40.00 AGREEMENT, Made and entered into this 30th day of October , 2008, by and between Diane E. Doornbos, Successor Co-Trustee of the Charles F. Doornbos Revocable Trust under Trust Agreement dated August 1; 1990, P.O. Box 639, Bartlesviile, OK 74005, Lessor and Hoover & Stacy, Inc., whose post office address is P.O. Box 2328, Cheyenne, WY, 82003, Lessee. WITNESSETH, That the said Lessor, for and in consideration of TEN and no/100 ($10.00) DOLLARS, cash in hand paid, receipt of which is hereby acknowledged and of the covenants and agreements hereinafter contained on the part of Lessee or his Assigns to be paid, kept and performed, has granted, demised, leased and let and by these presents does grant, demise, lease and let unto the said Lessee or his Assigns, for the sole and only purpose of exploring by geophysical and other methods, mining and operating for oil (including but not limited to distiilate and condensate) and gas (including but not limited to casinghead gas and all other constituents), and for laying pipe lines, and building tanks, power stations and structures thereon to produce, save and take care of said products, all that certain tract of land, together with any reversionary rights therein, situated in the County of Lincoln, State of Wvominq ,described as follows, to-wit: z (,~ ~ ~> 7L~ That Part of Resurvey Tract 53 described as the SE/4 NW/4 of Section --lL, Township ~ Range 115W, 6th Principal Meridian, and containing ..1L acres, more or less. Subject to other provisions herein, this lease shall remain in force for a term of three (3) years from date (primary term), and as long thereafter as oil or gas, or either of them, is produced in paying quantities from said land by the Lessee or his Assigns. In consideration of the premises the said Lessee or his Assigns covenants and agrees: 1st. To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee or his Assigns may connect its wells, 3/16ths of all oil (including but not limited to condensate and distillate) produced and saved from the leased premises. 2nd. To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee or his Assigns may connect its wells, 3/16ths of all gas (including but not limited to casinghead gas and all other constituents) produced and saved from the leased premises. During any period (whether before or after the expiration of the primary term) when gas is not being sold or used and the well or wells are shut in and there is no current production of oil or other operations on said leased premises sufficient to keep this lease in force, Lessee or his Assigns shall payor tender to iessor a royalty of One Dollar ($1.00) per year per net royalty acre retained hereunder, such payment or tender to be made on or before the expiration of ninety (90) days from the date such well is shut in and thereafter on the same date annually during the period such well is shut in, provided that Lessee or his Assigns may not keep this lease in force by making such shut- In payments for mere thaI: thn"e (3) consecutive years beyond the e::piraticn of tha primar}' term. When sl.:ch payms:1t or tender is so made it will be considered that gas is being produced within the meaning of this lease. Royalties on oil and gas payable to the Lessor hereunder shall be free and clear of transportation, compression and processing costs unless such costs are to be borne by the Lessee as the result of an arms-length transaction. Shut-in payment should be sent to lessor at the above address. This lease is a paid up lease for the primary term and shall require no rental payments during said term except as otherwise provided herein for shut in payments. If the Lessee or his Assigns shall commence to drill a well on the leased premises within the primary term it shall have the right to driil such well to completion with reasonable diligence and dispatch, and if oil or gas, or either of them be found in paying quantities, this lease shall continue and be in force with like effect as if such well had been completed within the primary term. "Commence to drill a well" shall be deemed to mean commencement of actual drilling of a hole with a drilling rig capable of drilling to the total depth of the proposed well. Lessee or his Assigns, at its option, is hereby given the right to pool or combine the acreage covered by this lease o~ any portion thereof with other land, lease or leases in the immediate vicinity thereof, when in lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said lease premises so as to promote the conservation of oil and gas in and under and that may be produced from said premises, such pooling to be of tracts contiguous to one another and to be into a unit or units which shall not exceed 80 acres each in the event of an oil well, or into a unit or units which shall not exceed 640 acres each in the event of a ¡Jas well, plus a tolerance of ten percent (10%). Lessee or his Assigns shall execute in writing and record in the conveyance records of the county in which the land herein leased is situated an instrument identifying and describing the pooled acreage. The entire acreage so pocied into a tract or unit shall be treated, for all purposes except the payment of royalties on production from the pooled unit, as if it wore included in this lease. If production is found on the pooled acreage, it shall be treated as if production is had from this lease, whether the well or wells be located on the premises covered by this lease or not. In lieu of the royalties elsewhere hElrein specified, lessor sh~1I receive on production from a unit so pooled only such portion of the royalty stipulated herein as the amount of his acreage placed in thE> unit of his royalty interest therein on an acreage basis bears to the total acreage so pooled in the particular unit involved. Production at the end of the primary term on a drilling or spacing or production unit established by the governmental regulatory agency having jurisdiction shall not hold this lease as to acreage covered hereby not included in such unit. At the end of the primary term this lease shall terminate as to all non-producing zones from 100' below the deepest producing formation, or the stratigraphic equivalent thereof. in any well or wells drillfJd on the I>?ased premiseB or on 1i'll'rf!:: pooled therewith. If any State, U.S., or other governmental agency or authority shall grant or create a unit, or units, of which this leasehold acreage may be a part and which has an acres-per-well ratio in excess of 80 acres per well for an oil unit or 640 acres per well for a gas unit, plus a tolerance of ten percent (10%), Lessor and Lessee or his Assigns agree, as part of the consideration for this lease, that Lessor's interest shall nevertheless be calculated as if said unit, or units, contained the number of acres calculated by using an acres-per-well ratio of 80 acres per well for an oil unit or 640 acres per well for a gas unit, regardless of the actual acres contained in said unit or units. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties and rentals herein provided shall be paid to the Lessor only in the proportion its interest bears to the whole and undivided fee. Lessee or his Assigns shall have the right to use, free of cost, gas, oil and water produced on said land for its operations thereon, () except water from wells of Lessor. r\_ RECEIVED 1/7/2009 at 10:46 AM jeJ1 RECEIVING # 944523 BOOK: 712 PAGE: 477 JEANNE WAGNER LlNrf"'ll 1\1 SOUNTY CLERK, KEMMERER, WY 000478 When requested by the Lessor, Lessee or his Assigns shall bury his pipe lines below plow depth, or below 30", whichever is deeper. No well shall be drilled nearer than 200 feet to the house or barn now on said premises, without the written consent of the Lessor. In the event a well or wells producing oil or gas in paying quantities should be brought in on adjacent land and draining the leased premises, Lessee or his Assigns agrees to drill such offset wells as a reasonably prudent operator would drill under the same or similar circumstance. If oil or gas is discovered on the land covered by this lease, or on land pooled therewith, Lessee or his Assigns agrees to further develop the land covered by this lease as a reasonable and prudent operator would under the same or similar circumstance. Lessee or his Assigns shall pay for all damages caused by its operations on said land. Lessee or his Assigns shall have the right at any time before or within six months after the expiration of this lease to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing. If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly allowed, the covenants hereof shall extend to their heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee or his assigns until after the lessee or his assigns has been furnished with a written transfer or assignment or a true copy thereof. In case Lessee or his Assigns assigns this lease, in whole or in part, Lessee or his Assigns shall be relieved of all obligations with respect to the assigned portion or portions arising subsequent to the date of assignment. Lei,;sE:a or hj~ Assig~1.9 a~rez: th<3t ¡I~ ~~e event L8SS'~'·:) Or" his ..t.._~signs d.-.=-s;re to assign :.I!S ieaSE~ th:A '...vith:n 3:] daj's af~~r such assignment Lessee or his Assigns will furnish to lessor by registered mail a true and correct copy of said assignment which shall contain the name and address of assignee and the interest assigned. All expressed or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules and Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee or his Assigns held liable in damages, for failure to comply therewith, if compliance is prevented by, or such failure is the result of any such Law, Order, Rule or Regulation. It is understood that this lease is executed without warranty of title, either express or implied. The undersigned Lessors, for themselves and their heirs, successors and assigns, hereby surrender and release all rights of dower and homestead in the premises herein described, insofar as said right of dower and homestead may in any way affect the purposes for which this lease is made as recited herein. Lessor hereby agrees that the Lessee or his Assigns shall have the right at any time to redeem from Lessor, by payment, any V.0rt ages, taxes or other liens on the above described lands, in the event of default of payment by Lessor, and be subrogated to the ri of the holder thereof. ~~ As a f¡,¡rther conditioA for this loaso and net a ce'/enant eAly, Lessee er his JI.ssi!ilAS agross to f¡,¡rnisl'l te Lesser informatien regarding well ol'1erations as set fortl'l iA lãxl'libit "A" attached l'Ierata and mase a part heraot as tho¡'¡!il1'I copie9 in f¡,¡1I l'Iarain. IN TESTIMONY WHEREOF, I sign this 30th day of October ,2008. 2HE C RLES F. DOORNBOS REVOCABLE TRUST UNDE RUST AGRE NT DATED AUGUST 1, 1990 BY: ~ _ Diane E. Doo,nbos, 3uCicessor (;U-I rustee Tax Identification No. 20-7163765 STATE OF OKLAHOMA County of Washington (Acknowledgment for Individual) Before me the undersigned, A Notary Public, in and for the said County and State, On this 30th day of October ,2008, personally before me appeared Diane E. Doornbos, personally known to me to be the identical person who executed the within and foregoing instrument 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 WI1;NESS WHERE.OF, I have hereunto set my official signature and affixed my official seal t "'." ^ .... '. "". Notary Public Commission# 06002061 J; d~~m'''''," exPI~"',&-f:~ r JtJ¿i:!. '" ~ . ~ --~:·:...)~s~?/ " " Of 11 11 ' ~. C:\MRFiles\MR3346\MR3346_Sec22_HooverStacy-Lease_1 008.doc