HomeMy WebLinkAbout947321HB PAID OP RECEIVED 5/22/2009 at 11:27 AM
Rev. 2S--1260,-OBNo. 1-4-89
Ra RECEIVING # 947321
v
Return recorded document to: BOOK: 723 PAGE: 576
LandPro Energy, LLC
JEANNE WAGNER
1250 S. Buckley Rd., Suite I-250
Aurora, CO 80017 LINCOLN COUNTY CLERK, KEMMERER, WY
OIL AND GAS LEASE oi)576
AGREEMENT, Made and entered into the 14'h day of August 08, by and between
Julie Quayle,f/k/a Julie Somsen, a married woman dealing i sole and separate property
whose address is 4204 E Stone Henae, Port Clinton, OH 43452 , hereinafter called Lessor (whether one or more) and Lan dPro Energy, LLC whose
address is 1250 S. Buckley Rd., Suite I-250, Aurora, Colorado 80017 hereinafter called Lessee:
W ITNESSETH, That the Lessor, for and inconsideration 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 structures thereon to produce, save and take care of said products, all that
certain tract of land situated in the County of Lincoln State of %oming_ described as follows, to-wit:
SEE EXHIBIT "A" ATTACHED TO AND MADE A PART HEREOF FOR DESCRIPTIVE PURPOSES.
and containing 365.06 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 of land 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 of the land so covered.
1. It is agreed that this lease shall remain in force for a term of five S earS 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 ofthe primary term ofthis
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
ofa subsequent well. If after discovery of oil or gas on said land or on acreage pooled therewith, the production thereofshould cease from any cause after the primarytemr 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 ofthe primary term ofthis 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. hi 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 for receiving payments regardless of change in the ownership ofsaid land.
All 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. Ifthe depository should liquidate or
be succeeded by another institution or for any reason fail or refine 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 ofthe error from Lessor, accompanied by any documents and other evidence necessary to enable Lesseeto make properpayment.
Lessee may pay or tender any payment at any time in advance of its due date to the Lessor then known to Lessee as provided in Paragraph 11 and such payment ortender shall
bind all persons then or thereafter claiming any part of such payment. In consideration ofthe 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 primaryterm 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:
l a. To deliver to the credit of Lessor, free of cost, in the tanks at the wellhead, the equal one-sixth (1 /6) part of all oil produced and saved from the leased
premises.
2°' 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 prevailingrnarket 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 andiransportingsuch
gas and casinghead gas from the mouth ofthe well to the point of sale or use, and one-sixth ofthe cost of ad valorem taxes and production, severance, or
other excise taxes.
4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners one dollar per year per net 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 ofthis lease during the period such well is shut in. Ifsuch payment or tender is made, it will be considered
that gas is being produced within the meaning ofthis lease.
5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the 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 any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
11. 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 all recorded instruments or documents and other information necessary to
establish a complete chain ofrecord title from 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 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 maybe conducted without regard to any such division. If all or any part ofthis lease is assigned, no leasehold owner shall be liable
for any act or omission of any other 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 ofthe land described herein and as to any one or more ofthe 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 formedto
include formations not producing oil or gas maybe 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 ofthe 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 governmental authority and, from time to time, with like approval, to modify, change or terminate any such plan or agreement and,
in such event, the terms, conditions and provisions ofthis 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 ofthis 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
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 unit plan of development or operation
whereby the production therefrom 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 royalties 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
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.
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 any time to redeem for
Lessor, by payment, any mortgages, taxes or other liens on the above described lands, in the event of default 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 described herein, insofar as said right of dower and homestead may in any way affect the purposes for which this lease is made, as recited herein.
15. Should any one 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 any one or more or all of the parties who execute this lease as Lessors. All the provisions of this
lease shall be binding on the heirs, successors and assigns of Lessor and Lessee, and 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 ofthe 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 first above written.
STATE OF ~Ytt'0 )
COUNTY OF SS
(tip )
WHEREOF, I have hereunto set my hand and affixed by notarial seal the day and year last above written.
&4v~M_
Notary Public
SUSAN M NIOONEY Printed Name:
BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this ~ day of _6 t (
2008 , personally appeared Julie Quayle , * to me known to be the identical persons described in and who ex~#ect d `the within and
foregoing instrument of writing and acknowledged to me that they executed the same as their free and voluntary act and deed for the uses and purposes
therein set forth.
IN WITNESS
Notary Pubk Stale of Ohb
W COtnfnles m EOw 12152011
Recorded in Ottawa Coj11y
Julie Quayl ,Vk/a Julie omsen,
Residing at
Somsen, a/k/a Julia Ann Quayle,a married woman dealina in her GniP nnH
separate property
EXHIBIT "A"
ATTACHED TO AND MADE A PART OF THAT CERTAIN OIL AND GAS LEASE DATED
AUGUST 14, 2008
BETWEEN JULIE QUAYLE, F/K/A JULIE SOMSEN, A MARRIED WOMAN DEALING IN
HER SOLE AND SEPARATE PROPERTY AS LESSORS
AND LANDPRO ENERGY, LLC AS LESSEE
005'78
TOWNSHIP 24 NORTH, RANGE 119 WEST, 6TH P.M.
Section 8: Tract 74 (formerly described as E2SE, SENE)
Section 9: Tract 75 (formerly described as W2SW)
Tract 76 (formerly described as S2NW, E2SW)
Less lands deeded in Warranty Deed, Book 646, Page 560, filed in Lincoln
County, Wyoming