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HomeMy WebLinkAbout949590 (2)PRODUCERS WPAID UP Rev. 5-60, No. 2 41L AND GAS LEASE AGREEMENT, Made and entered into the 15th day of h1b 2Q-Q2-, by and between Peternal Ranches, LLC, a Wyoming Limited Liability Company, whose post office address is 190 Dirt Road, Riverton, WY 62501-9729, hereinafter called Lessor (whether one or more) and Craig Settle whose post office address is 5897 South Fulton Way, Greenwood Village, CO 50111-3719, hereinafter called Lessee: WITNESSETIi, 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 covenants and agreements hereinafter contained, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, with rights of way and easements for laying pipe lines, 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 WyRm n¢i described as follows, to-wit: Z? Township 22 North, Range 118 West, 6th P.M. Section 20: E2SW Section 29: E2NW RECEIVED 9/18/2009 at 4:36 PM RECEIVING # 949590 BOOK: 732 PAGE: 217 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 team of three (3} years from this date and as long thereafter as oil or gas ofwhatsoever 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 reworking 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 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 team 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 the said Lessee covenants and agrees: of all oil produced 1 st. To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on said land, the equal oneeighth (1/8) part P and saved from the leased premises. found, while the same is being used 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 market is rate for off the premises, and if used in the manufacture of gasoline a royalty o€om-eighth (1/8), payable monthly at the prevailing gas. 3rd. To pay Lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product a royalty of one-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 slut in. If such payment or tender is made, it will be considered that gas is being produced within the meaning of tins lease. 5. If said Lessor owns a less interest in the above described land than the entire and undivided fee sample 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 beans to the whole and undivided fee. fiom the wells and 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 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. 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 thereafter made. No other kind of notice, whether actual or to establish a complete chain of record title from Lessor, ad then only with respect payer 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 leasehold owner. entering into a 12. Lessee shall have the right to unitize, pool, or combine all or any part of the above described lams with other lands in the same general area by cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with lice approval, to modify, change or terminate any such plan or agreement and, in such event, the tams, 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 such plan or and this lease shall not terminate or expire during implied, shall be satisfied by compliance with the drilling and development requirements of P ~ 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 of land 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. If necessary, lessor shall formally express lessor's consent to any cooperative or unit plan of developme"t or operation adopted by lessee and approved by any governmental agency by executing the same upon request of the lessee. and this pease shall not be 13. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules Or Regulations, terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or ff 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, the a event ndd agree ess that the eLym~eiit hallT~ethe right b~ to rights for gated t Lessor, by payment, any mortgages, taxes or other liens on the above described lands, herby surrender and release all right sudower and homestead in the holder thereof; and the undersigned Lessors, for themselves and their heirs, successors and assigns, for surrender a this lease is nude, as recited herein the premises described herein, insofar as said right of dower and homestead may in any way affect the purposes which do Les All all the such provisions es who this 15. Should any one or more of the parties hereinabove named as Lessor ther more or execute , it execute shall nevertheless this lease~g po execute it as Lessor. The word "Lessor" as used in this lease shall mean any pease 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 Tax ID/ Social Security No., S' 3 - D .:33 3 9 S 7 `7v1Gir Ye P. Thomas, Member of Pt;ternal Ranches, LLC NOTARY PUBLIC SUSAN M. KISLING STATE OF WYOMING COUNTY OF FREMONT My Commission Ex Ines Jun 17 2012 STATE of Wyoming ) as. ACKNOWLEDGEMENT INDIVIDUAL 1 COUNTYof Fremont BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this day of fG S , 200,9, personally appeared Kelly P. Thoman. Member of Petemal Ranches. LLC , 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 -ghe_duly executed the same as her 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 ad my hand and affixed my notarial seal the day and year last above written. My Commission Expires: e~ r t_v~ e , l T a Notary Public: N , LING Address: $US~t M, STATE OF WYOMING COUNTY OF FREMONT 146v Commission Ecpin s Jun 17, 201: STATE of COUNTY of } as. ACKNOWLEDGEMENT-INDIVIDUAL BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this day of , 2002_. personally appeared , 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 -free and voluntary act and deed for the uses and purposes therein set Bath 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: Notary Public: Address: STATE of COUNTY of ) so. ACKNOWLEDGEMENT C ORPORATE 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 parson who subscribed the name of the makerthereof to the foregoing instrument as its and acknowledged to me that _he executed the same as free and voluntary act and deed and as the free and voluntary act deed of such corporation by authority of its Board of DitectoM 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: