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HomeMy WebLinkAbout949589PRODMMS 88-PAW UP Rev. 5-60, No. 2 OIL AND GAS LEASE AGREEMENT, Made and entered into the 15th day of July - 20-&, by and between Robert J. Peternal and Shirley M. Paternal, Individually and as Trustees of the Robert J. Peternal Living Trust dated September 24, 2007, and any amendments thereto, whose post office address is P. O. Box 1044, Kemmerer, WY 83101-1044, hereinafter called Lessor (whether one or more) and Craig Settle whose post office address is 5897 South Fulton Way, Greenwood Village, CO 80111- 3719, hereinafter called Lessee: WITNESSETH, That the Lessor for and in consideration of TEN AND MORE DOLLARS cash in hand paid the receipt of which is hereby acknowledged, and the ontained, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said leier; tMI e ' the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom of torture or kind, with rights of way and easements for laying pipe lines, and erection of structures thereon to produce, save and As!cme.of tract of land situated in the County of Lmcoln , State of Wvomk . described as follows, to-wit, To 014, Range 118 West, 6th P.M. RECEIVED 9/18/2009 at 4:36 PM RECEIVING # 949589 7,- 7 Section 20: E2SW RnnK- 732 PAGE: 215 Section 29: E2NW JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY and containing 160.00 , acres, more or less. 1. It is agreed that this lease shall remain in force for a term of three (31 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. K at the expiration of the primary term 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 he 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 for the 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 primary term, 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 primar term of this, this lease shall continue in force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. T denation of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein, to }i t Wrl l "°y d operations g the primary term, Lessee may at any time or times during or after the primary term surrender this lease as to all or any mmence or y riiog gfgsaid to sh$td tra r stratum by delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter sum. 3. In consi of the prersea said Lessee covenants and agrees: of cost, in the pipe line to which Lessee may connect wells on said land, the equal one-eighth (1/8) part of all oil produced 41 - i 'bug IffmliAg arx saved m the leased premises. 2nd. To pay Lessor one-eighth (1/8) of the gross proceeds each year, payable quarterly, for the gas from each well where gas only is found, while the same is being used off the premises, and if used in the manufacture of gasoline a royally of one-eighth (1/8), payable monthly at the prevailing market rate for gas. 3rd. To pay Lessor for gas produced from any oil well and used off the premises or in the mere of gasoline or any other product a royalty of ono-eighth (1/8) of the proceeds, at the mouth of the well, payable monthly at the prevailing market rate. 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 90 days from the date such well is shut in and thereafter on or before the anniversary date of this lease daring 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 the royalties (including any shut-in gas royalty) herein provided for shall be paid the 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 ftmt the wells and reservoirs of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe lines below plow depth. 8. No well shall be drilled nearer than 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 on said land. ' and remove casing. 10. Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, inapt~ the right to draw assi ent v otherwise) shall be 11. The rights of Lessor and Lessee hereunder may be swiped in whole or part. No change in ownership of Lessor's interest (by gnm binding on Lessee until Lessee has been f a-mahed with notice, consisting of certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of record 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 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 other lessehold owner, by entering into a 12. Lessee shall have the right to unitize, pool, or combine all or any part of the above described lands with other lands in the same general area 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 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 dn'Dmg and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or sgreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lards or any part thereot shall hereafter be operated under any such cooperative or unit plan of any development or operation whereby the production therefrom is allocated to different portions of the land covered by said plan, then the produtio allocatecdto of particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to lessor, be regarded as having been prod 1 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. If necessary, 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 the 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 booby 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 or 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 subrogsted 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 tamed 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 Lessor. All the provisions of this lease shall be binding on the heirs, successors and assigns of Lessor and Lessee. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. Robert J. Peternal, individually and as rtlstee of the Robert J. Petemal Living Trust dated September 24, 2007, and any amendments thereto Shirley M. etemal, Individually and as Trustee of the Robert J. Peteanal Living Trust dated September 24, 2007, and any amendments thereto Tax ID/ Social Security No.. f J ~ " ~t/ < Oct STATE of Wygmin¢ } as. ACKNOWLEDGEMENT-INDIVIDUAL COUNTY of Lincoln, BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this day of . 216 200-_,, personally appeared Robert J PetenW Individually and as Trustee of the Robert J Petanal Livmg'IYUSt aateu ~eotemDa Z4 Zug/ ana sny amenuments 12"o , to me known to be the identical person-, described in and who executed the within and foregoing instrument of writing and acknowledged to me that _he duly executed the same as his free and voluntary act and deed for the uses and purposes therein set forth and in the capacity stated therein. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written. My Commission Expires ll i Public: COUNTY OF s: p. C, . ~~51 LINCOLN STATE OF WYOMING STATE of myoming } ss. ACKNOWLEDGEMENT-INDIVIDUAL COUNTY of Lincoln BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this -nA-h day of 200-2. personally appeared Shijigy M. PftmaL hWjyWuaDX and as Trustee of the Robert L P 24, , to me known to be the identical person. described in and who executed the within and foregoing instrument of writing and acknowledged to me that ___&he_duly executed the same as her fine and voluntary act and deed for the uses and purposes therein set forth and in the capacity stated therein, 01 WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written. My Commission Expires, I f 'ftptary S Public: JENEE MANSENOTARY ftem COUNTY OF STATE OF LINCOLN WYOMING MY COMMISSI ES JAN Y 1 t 000 STATE of )as. ACKNOWLEDGEMENT~ORPORATE COUNTY of BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this day personally appeared , to me known to be the identical person who subscribed the name of the makerthereof to the foregoing instrument as its and acknowledged to me that _be executed the same as free and voluntary act and deed and as the fiee and voluntary act deed of such corporation by authority of its Board of Directors, for the uses and purposes therein set forth Given under my hand and seal of office, this the day of 200. My Commission Expires: Notary Public: Address: