HomeMy WebLinkAbout877300 .e.ky Mo..,.,. ,'SS. PAID-UP
I..,d.U...v. ,essl OIL AND GAS LEASE
THiS AGREEMENT, made and entered into this 2nd day of October 2001 by and between
William J. McOinnis, III, a married man dealing in his sole and separate property -
of 'P. O. Box 280, Big Piney, Wyoming 83113
, hereinafter called lessor twhether one or more), and
Centex Energy Company whose address is 1645 Court Place, Suite 212 Denver, CO 80202 ! hereinafter called lessee:
WITNESSETH: ,
1. That lessor, for and in consideration of TEN AND MOILE
dollars ($. ]0.00+ ! )in hand paid, receipt of
which is hereby acknowledged, andof the agreements of lessee hereinafter set forth, hereby grants, demises, leases and lets exclusively unto !lessee the lands described
below for the purpose of Investigat rig, prospect ng. expldring (by geophysical and ether methods), drilling, mining, operating for and producing o I! or gas or both (as defined
below), together with the right to construct and maintain pipelines, telephone and electric lines, tanks, ponds, roadways, plants, equipment, and strbctures'thereon to produce,
save and take care of said oil and gas (which right shall Include specifically a right-of-way and easement for ingress to and egress from said lands by lessee, or Its assignees,
agents or permittees, necessary to or associated with the construction and maintenance of such pipelines, telephone and electric lines, tank~, ponds, ,roadways, plants,
equipment, and structures on said lands to produce, save and take care of the oil and gas), and the exclusive right to inject air; gas, water, brine and other fluids from any
source into the subsurface strata, and any and ail other rights and privileges necessary, incident to, or convenient for the economical operation of said land, alone or conjointly
with neighboring land, for the production, saving and taking care of oil and gas and the injection of air, gas, water, brine, and other fluids into the subsurface strata, said lands
Being situated in the County Of Lincoln , State of Wyoming described as follows, to-wit:
See :Exhibit "A" Attached hereto and made a part hereof k [ r,~ -, .,,,,
........... PR 7 9 2
And containing 429.00 acres, moreorless. ~; ?., '~'~ ',/ [ ;j ': : ' ? .'~, ' '. ~,~ -, ~-,)
In addit on to the land described abow .............. ;~, t::. [',: [~ ? [: ~'? ,' :y ,,, ' ~,': .'",":~ ~ .ri i:L ~
r ~,: **.u, .~uy grants, leases and lets axe usivel unto les . , : .. L., ,;,t ~ .... ""~* ~* ,,,t ,
a e owned or claimed by lessor by one or the follow ng reasons' (1~ all lands a-d., ............. : _~ .... s~e, to ~he sa~ extent as rf specifically descnbe~
of a ch~ange in the boundaries or centerline of any river or stream traversing or adjoining the lands described above; (2) all riparian lands and ~ights which are or may be
. · .... ~.,~ ~vqu,,.u u~ ~etalneo dy leSSor Dy avulsion, accretion, reliction or othe~ise as the result
incident, appudenant, related or attributed to lessor In any lake, stream or river traversing or adjoining the lands described above by vidue et les~or's ownership of the land
described above; (3) all lands included in any road, easement or right-of-way traversing or adjoining the lands described above which are or may be incident, appudenant,
related 0r attributed to lessor by vi~ue of lessor's ownership of the land described above; and (4) all strips or tracts of land adjacent or contiguous t~the lands described
above owned or acquired by lessor through adverse possession or other similar statutes of the state In which the lands are located,
The term oil as used in this lease shall be interpreted to include any liquid hydrocarbon substances which occur naturally in the ead~, including ddp gasoline or
other natural condensate recovered from gas w thout reso~ to manufacturing process, The term gas as used n this lease she be interpreted to include any substance, either
combustible or noncombustible, which is produced in a natural state from the each and which maintains a gaseous or ratified state at ordlna~ temperature and pressure
conditions, Including but not limited to helium, nitrogen, carbon dioxide, hydrogen sulphide, cea bed methane gas casinghead gas and sulphur.
Subject to the other provisions herein contained this lease Shall remain in force for a term of Five (5) years from November ~ 2001 (prima~ term)
and as:long therea[ter as oll and gas, or either of them, Is produced from the leased premises or drilling ~S~ntinuously prosecuted. For purposes of this lease, a
well comp eted for the production of coalbed methane gas shall be deemed to be producing gas under this lease at all times when dewatering ofjthe coal seams from which
the coalbed methane gas will be produced Is occurring. For purposes of this lease, "drilling operations' shall include operations for the drilling of a hew well and operations for
the reworking, deepening or plugging back of a well or hole or other operations conducted in an effod to establish, resume or re-establish production of oll and gas; drilling
operatipns shall be considered to be "continuously prosecuted" if not more than one hundred ~en¢ (120) days shall elapse baleen the completion and abandonment of one
well or hole and the commencement of drilling operations on another well or hole; drilling operations shall be deemed to be commenced for a new ~ell at such time as lessee
has begun the construction of the wells te IocaIion or the road which provides access to the wells te ocation; and drilling operation~ shall be deemed to be commenced with
respect to reworking, deepening, plugging back or other operations conducted in an effod to resume or re-establish production of oil and gas at s)ch time as lessee has the
requisite equipment for such operations at the wellsite.
2. The lessee shall.deliver to the credit of the les~0r as royalty, free
of cost, in the pipe line to which lessee may connect its we;l~ the e~ual one-eighth (1/8) pad of
all oll produced and saved from the leased premises, or lessee, may from time to time at its option purchase any royale oil in it~ possession, payihg the market p~lce thereof
prevaillhg for oil of lik~ grade and gravity in the field where produced on the date of purchase.
The lessee shall pay lessor, as royalty, on gas, including casinghead gas or other gaseous substances, produce0 from the leased premises and sold or used off
the premises or used in the manufacture of gasoline or other products, the market value at the well of one-eighth (1/8) of the ga~ sold or used, provided that on gas ~olO the
royal¢;shall be one.eighth (I/8) of the amount realized from such sale. The amount realized from the sale of gas sha~l be the price establlshe~ by the gas sales contract
entered into In good faith by lessee and a gas purchaser for such term and under such conditions as are customa~ In the indusW. Price shalI mehn the net amount received
by lessee after giving effect to applicable regulato~ orders and after application of any applicable price adjustments specified in such contract Dr regulato~ orders. In the
event lessee compresses, treats, purifies or dehydrates such gas (whether on or off the leased premises) or transpods gas off the leased pre¢ises, lessee In computing
royal~ hereunder may deduct from such prlce a reasonable charge for each of such functions performed.
e ......... ~L~.i~)s a paid.u~ lea¥ and ail cash consideration first recited above and annual fen .................
...... muuuuuut me prima~ term, m consideration of the pa"ment of .uch ............ ,?,- ~,.v~ uuen p~m m. ~as~r ~n advance to kee~ this Ioa~e in full force
except as othe~lse prey ded herein to corn ....... ..... [~- .~.~. yuus~uerauon and advance annua~ rentals essor aarees th-' ~ .............. ~n~
...... ~_.,~ ..... , ,,,~.~= u~ ~ummue any operations ourin- +h~ ~, ,-,~ , ..... ' . = o, ,:~:c ~tt~a not De oDIIOateo
[~,,_%~u~, ~.m~ ,?s.~ as? al?r any po~ion of the and described above and as to anv~t'r'~a%'r'~'~,~"~-~-:~ ~t any h~e ~.t,me~ dur n~ or after the prima~ term
e ~e~evea of all obligations mereafler accruing to the acreage surrendered ' ..~,,,, uy u~.v~ung to lessor or oy n,ng of recor~a release or releases, and
4. Any payments required to be made to lessors pursuant to this lease, other than the payment of royalties, may be paid by lessee to th~ lessor or to tessor's credit
in the ~h'ect to ~essor
, at Address listed above ~ (orits
successor or successors, or any bank with which Il may be merged or consolidated, or which succeeds to ils business assets or any pa~ thereof; by purchase or dthe~ise)
which Shall continue as the deposlto~ regardless of changes In the ownership of said land or the oil and gas, All such payments may be made by ¢ash, check or draft, mailed
or delivered on or before the due date [or that payment. Any payments so made shall be binding on the heirs, devisees, executors, ad~minJstrators, and personal
representatives of lessor and on lessor's successors In interest or on lessor's assigns.
5. If, at the expiration of the prima~ term of this lease, oil or gas is not being produced from the leased premises but lessee Is then en~aged In drilling operations.
this lease shall continue in force so long as drilling operations are continuously prosecuted; and If production of oll or gas results from any such dolling operations, this lease
shall c~ntinue In force so long as oii or gas shall be produced k0m the leased premises. If, after the expiration of the prima~ term of this leas~ production on the leased
premises should cease for any cause, this lease shall not terminate if lessee fs then engaged in dril[ino operations, or within one hundred twen~ j(120) days after each such
cosset 0n of production commences or resumes drilling operations, and this lease shall remain in fo~ce so tong as drilling operations are conti~uously prosecuted, and if
production results therefrom, then as long thereafter as oil or gas is produced from the leased premises.
or on 6. If at any time either before or a~er the expiration of the prima~ term of th~s lease th
other la~ds with which la , ere Is a well capable of producing oil or as or~ covered by this lease
nds covered by th~s ~ease are pooled or unitized but the we I is shut in whether before or after ~rod ' th
' ' ' ' _ UC[IO~ ............ ~,,~
malnta ned othe~lse as provided herein, this ~r~frn this ease is not being
lease shall not terminate (unless released by lessee) and it shall neve~heless be considered that oil or gas is being produced
from lahds covered by this lease during all times while the well is so sbu - n Lessee shall use reasonable diligence to market
such shut-in well, but shall be under no obligation to market the oil or ~as under terms conditions or circumstances which, in the oiler gas capable of being produced from
, ' lessee's judgment ~xercised In good faith, are
unsat sfacto~. When the lease ts continued tn force In this manner, lessee shall pay or twnder to the lessor or lessor's successors or assigns, an ~:amount equal to $1,oo per
year per net mineral acre covered by the lease. Such payments shall be made on or before the shut-in royal~ payment date, as defined belo~, next occurring after the
expiration of one hundred ~en~ (120) days from the date the well was shut-in, unless prior to such date oil or gas from the weir ~s sold or use;~ or the lease is othe~ise
malnta ned as provided herein. In like manner, on or before each succeeding shut-in royaiW payment dat~ while such well remains shut-in, ~essee ~hall make payment of shut-
in royalty in the same amoun[ and manner. The term "shut-in royaiW payment date" shal mean the annive ,
by cash draft or check ma~ rsa~ date of th~s Jesse Any shut n re ~lt a m
~, 'ted or tendered on or before the shu' ~ ............. ...... ' , -' Y' Y p y ent may be made
' .-,..~y.,,y u~t.. uessee's m,ure to pay or tenser, or properly pay or tender, any such sum shall render lessee
liable for the amount due but It shall not operate to terminate the lease..'r
" ' ~&~rl; ' t;;~t~:tri' ' ' ' ,ea. ~ny ,~terest in prooucti~n from the lands described
herein prov,~e~ ';~,~;:;~Lt&e~;:;oI Sitn ~h ~;~el;;;r,~hi~?etr~:, ~te t?r~,q, thep the roralti s including shut-In royalty,
herein to which the interest of lessor may be subject shall be deducted from the royalty herein rese~ed.
8. Lessee she have the rioht to use free of cea' ' - - i '
. , t, oas o ~ ann water produced on said land for i '
lessor. Lessee shall have the right at any time to remove a~ machin~ a~d fixtures placed on said ~remises i~.~e?~n ~h~[~on~ ox~ept, water f~om wot s and re~e~oiro of
w , uul~ the r~gn[ re craw and remove casing.
, 9. Lessee shal~ pay to lessor reasonable amounts for damages caused by }ts operations ~ on said land. When toque ted by lessor lessee shall
bu~ its pipelines which traverse cultivated lands below plow depth. No well shall be drilled nearer than ~o hundred (200) feet to a house or ~2rn now on s~id premises
without~ wdtton consent of lessor Lessee shal~ have the right at any time (but not the obligation), to remove all Improvements, machine~, and fi{lures p~aced or erected b~
~essee on said premises including the right to pull and remove casings.
10. Lessee is hereby given the right and power at an' time and fr ' ' '
land described ' . y om time to tim~ .as a recurring r ght, either before or after product on~ as to
land, lease or leases ~ all or any pa~ of the
the immediate vicinity for the production of oil and gas, or separate¥ for the production of either, when in lessee's lodgment it is necessa~ or
above and as to any one or more of the ¢ormabons hereunder to pool or umbze the leasehold estate and the mineral estate cove ed byin this lease with other
advisable to do so, and krespective of whether authori~ similar to this exists with respect to such other land, iease or leases, Likewise, units p?eviously formed to include
formations not e.[e~g oil or gas may be reformed to exclude such non-prod~;[0g formations, The forming or reforming of any unit shall ~ ac~omp shed by lessee
heretofore been co ...- ....· ~uon unitization or reformation which ' . -- u , . . , .
.... mpleted or upon which dr] ng operations haw ~. ....... :__ . declar?on.shall descr be the unit. An un' ' . ~ ,
a unlt.W~lC? ~nc!udes all or a part of this lease shall be tm-,-.~ ~,'~.'~" vummt~ncea. Producuon er ng or reworkin~ o ..... ~__ ~t may..m~lude la~d upon which a well has
elsewhere hereto specified, ,essor shall receive on prod;~i;~ ~o~a were proauctlo~, dr I~g or rework ~g operation; o~;'~; ora well shut-in ~ any reason anywhere on
P p n of the umt produchon that the total number of Su~ace acres c .. P uch production allocated t~~''"
shall be that re ortfo · . the unit so pooled royalties on~y on the odion of s hut In under this le se In heu of the royalties
such unit. overdo Dy this ~ease and .~.~ =. ,._ __, ........ ~j[ms reuse; such allocation
..... ~u ,..~ u.a dears
11. Lessee shall have the righ~ to unitize, poo~ or rom i
~td~::[~_ ,~e g~.?raJarea by ?ter ng .nto a cooperative or ubn~e ~"n o;f ~d of the land described above as ,o one or m re of ,he forma~ o,s ,here~ '
___2.u,~v~: re.modify, change or terminate any such nla ....... ~ ...... . I p~ent or operat,on approved bv any ~o ..... ~ ........... ~(.. nder with other
.... ~rm ~o the terms, conditions and provisio~s of ~d~' ~,_~u,~]~nt and, ~n SUCh event, the terms, conditions 'an~'~,]~',~, ~u~n°n~ ape, from time to time, with
, requirements of this lease ex~res~ ............ ~.~ fipp?vea cooperat ve or unit lan o¢d , ~.y.,~,uu~ ur
not terminate or exn-4,,'.~-~ .... ~, .~ ~u~, ~na, De satlsned Dy compl,ance with the drilling and d~t ~r ?oration and padlcularly, aH~rilling and develo~e~
cooperalive or unit ~lr ...... u ...... e or sucn plan or agreement. In the event that the lan~ described ab~e ot [~u~rements of such plan or agreement, and this lease shall
plan of development or operation whereby the production therefrom is allocated to different podions of the land covered by sal~ plan, then the production
r ..y pall thereof shall herea~er ~ operated under any such
allocated to any padicu ar tract of land shall, for the purpose of computing the royalties to be paid hereunder to lessor, be regarded as havin been produced from the
as so allocated.
particular tract of land to which it is allocated and not' to any other tract of ~and; and he royal~ payments to be made hereunder to lessor shall be sed upon production only' ' '
12. If the estate of either pa~ hereto is assioned or sublet and the privilege of assigning or subletting in whole or in
Implied Covenants hereof shall extend to the sublessees~ Success '
relieved and d schar . . ors and assigns of the . . . pad is express ~ allowed the e
~[fh~r ~ ....... ~d a~ to the leasehold rights so assinned or ~,,~ ........... ~a~es, and m the event of an assinnm~* .... ~ ....... , xpress and
T".'-' ~pru~s or ~.mp,ed. No change in Ownershi- ~¢ ~.- %-~ -%~,m .urn any ,amHW to lessor thereafter accru n ..... ~.. ~ ',~' ~uu~um~g )y ~essee, lessee shall be
rights of~ essee or require Senarate me .... ,__ _ ~ ~,.-.,fi ~nu,.royanles, or other payments however acc mD ~h~d u -. .... ~_u, me covenants )r condrt one of this leas
ch ' . . ~ ~o...9 ur nstallatlon or se arate tanks b , . . o ....... shall operate to enlar e the .) ' . . e
.,anco m ownership of said land or of the riehl fn r¢~, ...... P ., y lessee. No~lthstandmo any ~fH~l nr ........ g, . bilgatlons or dlmlmsh the
~;;~;2~e~,.~hall be b(~ding ? lessee (ex~ept at les;;;;7~ ;~'a~r~,~r.~nfs h~re~de,, or or any interest therein, ;';;,~Vfvk~e~ ~ ~ notice to lessee, no
original' ~u~,~pon ng I~ro~atlon heroine,er referred to, by the p;r~2;%~e~ unu, ~n~ hun?e~ ~en~ (120) days after Jo;ce
m~u cop]es or all doc~ments and other in-*.,,~--~ ...... '_'~ ~. M ~ a resun or suc~ C~ange in ownershi or ' e . ~,,~.uu wrn[en ~otlce
13 In fh¢ ..... ¢ ....... m~ u, proceedings necessa~ n lessee's onfnio- +~ ~-, ..... ~ inter ~. Such no ~ce shall be suppoded bv
_. - ....... interest or consolation, the protection of rose ..... - ~ - ~ ~t~u,~ ire ownership of the cl' imJng ad . '
~l~e.;the I~as~d pre~ises with other premises in the same ~..~.:~,~ur~ and recove~ of the greatest ultimate yield of o a ......... ~ . P,,. y '
~m~use :may locate such facilities includin .... , ..._ . u~.=.~, ~a for tne purpose of operatind an m~i-taini ..u,ur gas, *es~ee s~all nave the right to
operatiohs benefiting the leased premises~'''P .... ,,s. upon leased prom,see, and no royalties she, be payable hereun~, ~;~¢'~.~.~c,l,,(es uno for s~ch
' - ¢ u ~ ,ecu .u~ ~ep~ussurlng a~d recycling
14. If lessor, during the primaW term of this lease, receives a bona ~de offer from a third pady to purchase from lessor a
substances covered by th s lease and covering alt or a pod]on Of the land described herein w th such lease to become effective u on ex lr ~ase overing any or al~ of the
willing to'accept from the offering party essor hereby agrees to noti lessee '" ' · ' P at'on o
the pr,ce offered and afl other pertinent terms and conditions ~ th~n~ .... ~wntr~g of sa,¢ ?er immediately, including in the notic p f this lea~hich ies?r Is
~¢ .... see for a per,od of fi,een (15)days deer the receipt
preferred right and option to purchase the lease or pa~ thereof or interest therein covered by the offer at the price and on the terms and
offers made up to and Jnc uding the last day of the prfmaw term of this le
the lease pursuant to the terms hereof ~* .k., ......... a? she be subject to the terms an .. . __ ?nditfon¢ specified in the offer. All
thereafter furnish to lessor lhe ,*, , .... ,,, ~ .yury ~essor ~n ~rnmg uy mail, telefax or tele ram r' d conditions of th~ ~ar~raph ~4. Shoul lessee elect to urch
.ne. lease for execuhon b lessor .... ~m, ..... .... ;'.... g . p ~r to exptratton of sa~d fifteen (15 erl~ _ p a~e
new lea~e, such draft being subject Y a one ....... ~=~ s[gm oran payable to lessor . .~ , . ) day p ~d. Lessee ~hall promptl
In ~az,,,ent of the specified amou~[ as consideration for th~
to approval of title according to the terms thereof. Upon receipt thereof, lessor shall promptly execute said lea~e and return same along
with the fra~ through lessor's bank of record for payment.
setting out 15. In the event leasor considers that lessee has not complied with all its obligations hereunder, either express or implied, lessor sh~ll noti~ lessee in writ nc,
speci~cally in what respects lessee has breached this lease. Lessee shall then have sixty (60) days after receipt of said notice within w~lch to meet or commence
to meet all or any pa~ of the breaches alleged by lessor. The se~lce'of '
no such action shall be brought until the la-se of sixt ........ said no?ce ~hall be precedent to the bringin of an '
aimed to meet = . ~¢ m~ ~, .... ~__ ~ ~ . .~.[ou~ uayS a~er se~ce of suc~ notice on Je ee Neither t g ' y action by I. essor on sal lease for any caus. and
all or .nz ......... ~uu meacnes sna, ~e deemed an admission or resum ti ss . h.~ se~ ce of said qot~ce ~or the d~ing of any acts by I~ssee
never be~forfeited or cancelled for failure to pedorm in whole or in pa~ any of its ~ lied c~a~t~t less~.~ has falle~ to p¢~orm ~,l ,t~ o?.g~t ons h reunder. Th s lease s
failure e~ists and lessee fails within a reasonable time to satis~ any such covenant~, conditions, or stipu at one.
P , cond~bons, or sbpulatluns until a Judicial deter~nation is made that s~
16. All express and implied covenants of this lease shall be subject to all federal and state, county or municipal laws, executive orders ~ules and regulations, and
lessee's .obligations and covenants hereunder, whether express or Implied. shall be suspended at the time or from time to time as compfianc~ ~ith such obligations and
covenants Is prevented or h ndered by or s n conflict with federal state county or municipal awe rules regu atlons or executive orders asser ~d as official by or under
Public authority claiming Jut]sd ction or Act of God, adverse field, we'ather, 'or market condit one, Inabil~ t~ o~tain materials in the open market or tr~nspodation thereof, wars,
strikes, lockouts, riots, or other conditions or circumstances not wholly controlled by lessee, and this lease shall not be terminated in whole o ' '
damages for failure to comp y with any such obligations or covenants if compliance therewith is prevented or hindered b or ~s n r m pa , nor lessee held liable in
eventualities. The time during which Ibssee shal be prevented from rend ............ . . Y ' ' conflict ith. an ·
above stated, shall be added to the pr]maw term of the lease. _ _ m _f this leas~ under the contingencies
uctmg urllltng or reworking operatons outing the Pdma~ ter n ' - ' y of the.[oregomg
~.. 17. Lessor hereby~ m~,~ ,__ , ~
pay for lessor any mortoa~e ~ ......... % ' . ...... ..-" .... ~ ~..~ ~ ........ J
, , ~ ~ , ~¢*=~ u~ diner liens exisfin levle ........ ~ ...... ' ....¢~ees mat t~e lessee, at i ' . .
~ed}o the r,?ts of the holder thereof, and lessor ~reb,, da~r~ed on. o( against the above described lands In the ev~~j'~;~,?l ~ve the right at any bme to
.......... ay become due the lessor under the terms of th,s lease~ u ...... a[ any SUCh payments made by lessee for the lessor may'~;~:~%~r~Y~n~nta~%~:°~f a~nbe~
18. This lease and all its terms, conditions, and stipulations shall extend to and be binding on all successors in interest, fn whole or In pa~, of said lessor or lessee.
19. ~th respect to and for the purpose of this lease, lessor, and each of them if there be more than one, hereby release and waive the right of homestead.
WHEREOF witness our hands as of the day and year first above written.
STATE of ~ ·
COUNTY of ACKNOV -EDGEMENT-INDIVIDUAL
BEFORE ME, the undersigned, a Notary Public, n'and for said County and State, on this ~ day of October
Personally appeared William J. McGinnis, III, a married man dealing_in his sole and sepa~roperty ~ , 200 --L
Identical person ~ , described in and who executed the within and foregoing instrument of writing and acknowledged to me that
his , to me known to be the
free and Vd unta~ act and dee ...... h~ L .
~ a I~c~u~lng me re,ease and w-' ........... .~ ~ ou~y executed he s
COUNTY of ACKNOWLeDGEMENT. CORPORATE
BEFORE ME, the undersigned, a Notary Public, In and for said County and Slate, on this
Personally appeared
day of
, lo me personally known, who being by me duly s
~ of
Ano that lbo seal affixed to Said ~nstrumenl is the corporate seal of said co.oration
D rectors end said and that said inst~ment was signed and sealed in behalf of said corporation ~y authority Of its board of
acknowledged said Instrument to be the free act and deed of said corpo?lon.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above wd~en.
My Corem sslon Expires:
Notaw Public; .
Address:
'EXHIBIT "A"
· This Exhibit "A" is a*ttached to and made a part of that certain Oil and Gas Lease dated Oct ier 2,
2001, effective November 6, 2001, by and between William J. McGinnis. III. a married man dealing ~n his
sole and separate property, Lessor and Contex Energy Company, 1645 c~)UdPlace. Suite 212, Denvel,
COlorado, Lessee, to-wit: .
Being a parcel of land situate in Lots 46 and 47 of ToWnship 26 North, Range 113 West of the ~th ,,., . .
,, . o. principal
Meridian, Wyoming, said parcel of land being more particularly described as follows: Begmmng at[
comer No. 3 of said Lot 47 of Said Township and Range, thence North 0 degrees 27' West, 20.256 ch.bins
to a point, said point being identical With the Northeast Comer of the SW/4SE/4 of Section 27 of the
Original Survey of said Township 26 North, Range 113 West; thence NOrth 89
chains to the Southeast Corner of the NE/4SW/4 of Section 27 of said Original degrees 41' West, 20.~18
Survey; thence North 89
degrees 39' West, 20.396 chains to a point on the West Boundary Line of Lot 46 of said Township anld
Range, said point being identical with the Southwest Comer of ,NE/4SW/4 of Section 27 of the originil
Survey of said Township and Range; thence North 0 degrees, 54 West. 40 69 Chains to Comer No. 6 iof lot
46 of said Township and Range; thence North 89 degrees 42 West, 20'28 chains to Corner No. 8 ofs~id ·
Lot 47; thence South 0 degrees 53' East, 40.69 chains to Come . ' .
degrees 39' West, 20.40 chains t~, (~ .... ~, .......... r.No 7 of smd Lot 47, thence North 89
.... lic, ~u. t) olsalct Lot 4/; thence South 0 degrees 5 I' East, 42.1
ch. ains to Corner No. 5 of said Lot 47; thence South 89 degrees 15' East 81 60 ch '
s,md Lo!/7; thence North 0 degrees 43' West, 22 34 chains to Corn ..... ;" ~ 5n-s to Com. er No. 4Jof
pmce oI I~eginning" ' *~ ~. ~ orsam Lot 47, the point ~r
TOGETHER with all water and water rights thereunder belonging or in anywise appertaining thereto.
Containing 429.0 acres, more or less ~
Notwithstanding anything to the contrary herein contained, wherever the term one-eighth (1/ th)
royalty appears in the body of said lease, the term shall be changed to one-seventh (l/7!h) royalty.
This lease shall terminate at the end ,,c,~,~ ~_: .........
· - - . .... l~ primary term as to all the leased land except thos~1 lands
comainea within a proctuction or spacing unit prescribed by law or administrative authority on which
located a well producing or capable of producing oil and gas or on which Lessee is engaged in drillinl or
reworking operations. This lease shall not terminate so long as drilling or reworking operations are b lng
continuously prosecuted if not more than one hundred eighty (180) days shall elapse between the
completion or abandonment of one well and the beginning of operations for the drilling of another we Il.
Lessor and Lessee agree to enter into a mutually agreeable Surface Damage Agreement prior to
conducting operations on the leased land.
SIGNED FOR IDENTIFICATION
Willlam'J: Mc Gifixtqis, III