HomeMy WebLinkAbout961185Form 3110 -2
(January 1978)
N:,mr
slree, Simi Valley, California .93063
State
%gyp Code
This oil and gas lease is issued for a period of ten (10) years to the above -named lessee pursuant and subject to the
provisions of the Mineral Leasing Act and subject to all rules and regulations of the Secretary of the Interior now or
hereafter in force, when not inconsistent with any express and specific provisions herein, which are made a part hereof.
Lands included in the lease:
B
(Title)
(Date Signed)
UNITED STATES
p pp EPARTMENT OF THE INTERIOR
MAR 14 3 09 Fri �bUREAU OF LAND MANAGEMENT
OFFER TO LEASE AND
LEASE FOR OIL AND GAS
(Sec. 17 Noncompetitive Public Domain Lease)
Act of February 25, 1920 (41 Stat. 437), as amended (30 U.S.C: 181 -263)
Earle L. More, Jr.
4436 -D Lubbock Drive
T. 24 N., R. 112 W., 6th Prin Mer
Sec 9: NANIE 4, SE1NW4, NE aSW 4
11: E' E}
12: Eh, E1/214h, SWgNW i,
W ZSW 4
13: Lots 1, 2, 3, Eh, NW4,
E zSW4
24: Lots 1, 5, 6, 7, 8,
25: Lot 2
(Atty —in —fact or Agent's Signature)
State: Wyoming County: Lincoln
(Offeror /Lessee Signature)
9, E zNE4, NEgSE 4
Containing a total of 1,750.07 acres Annual Rental
Lands in offer were not within
a known geological structure on
for the
Director
1,751.00
Rent,, ^.I (a) (fI) Seginning
GUi ven4 ,772 per Bifa or
Fraclina ffieroL
THE UNITED STATES OF AMERICA
(Signature of Signing Officer)
11ief O.1
Gc7 ;G SE)Ction
(T
(Date)
CERTIFIED
to be a:true and comparative copy
of the official records on file
2011
Effective date of lease: APR 0 1 198
ORIGINAL
A
000419
MENT
I e .cxsrtslsp s aragra0h upon
t '''001 h I tile req oast of r• e, shell nt be
f p y (n e, weys and under !il open to InsSpection by the public until the expiration of the
m :a, pdpt tanks. loose. e
"'3 ii:ficn or .3 :h0: ucieras roc.,___ 1 03000' F) lore u ;or. TO t ep open all r a so
noble limes for
roof, a Ve;;n r 10 years, and so long thereafter as the inspection of any duly authorized office, of the Department,
i! o•.du_ed in 1111103 guanlities; subject to any unit I‚‚3', !eased premises and !I well.;, improvements, achinery. and
1,1100' IIY,?'O /Ore or here3100, approved by the Secretary of "''u'°' thereon and all books, accounts, maps and records roll'
r
p,avlsiao4 of aia a to g ve n ;he lends rive ".e 0900311001 01 and surveys Or investi3iI0ns 00 the leased
103 •31r010 wh erd in00nslslent with the terms of iO3 lease. la::d5 or under 1153 0 350. 00 0(050031100 oatained p.ravanl •o
any such insasctien, "Von lhr reouesl 0! the less.,, shall not be
'c. y 1 (i, r }i Ia owy be',d nNdi!ed by IMs laaao sad Open o 1nspec!'on by t!IC public until 015 exprraticn of the
r:ont lqulalioas and until such b is bond i filed not to enter 10:1,0
3m, !and under this lees (2) T 005300310304 any bond furnished (j) i;rlig veer, 3003 •,.a ui '•a.'u. hrelrh and Ivry o/
n. ivs v as condition for the )ssuapca Of 'his lease. (33 :,bask •ern. —To exercise reasonable iligence rn drilling and
;ishn hoed in cum double tin amount 04 $2 par acre an producing the wells herein provided for unless consent to suspend
r
nr,;l 1101 001 1000 than r $],000 nor o a than 310.000. ope temporarily is granted by the lessor; to 53004 on all
J ind nuial
c n of any part of the [eased land within the 00ee11005 in accordanco with approved methods and Practice
3ee'05:00l'9010'0 of a pr o during oil or Res lietd. (4) as provided in 'ho Oil end Ga, Operating Regulations, having
«ruts)' n O to beginning at drilling Operations and in- 0u3 ,3385d for •he prevention of waste of oil Sr gas or damage
er a +I 1 s Ihnrcaii01 v 'IUired by the lessor n bond in io de is or formations c ntaining oil, gas, 00 water r to
neml; sur of $10.000 with 00,900300 ailed co,pora surety. Or coal m sit s r oilier mrnernl deposi ls, for c n ervatiOn of gas
Lnnnsi' of United 1.140 bonds as surety tnerclor, conditioned 30004 r ice the v 000004100 and co rvalion Uf the property for
n ro with Cho forms 01 !his lease, unless s bond in luturo productiva operations, a d s or the health and afety f
00000 0 0 03,0300 being m ^.mr0iaod c uniris such w
bond i, m n and empl00ees: :a plug properly and effectively all
0pertar I the 1000, 15 crated. (5) Until ells drilled in accordance with III provisions Of this lease 00
oral
r i filed to furnish and 0,00,0,01310 uinia a bond in of any prior IYase or permit upon which the right to Chi, l,,,,
0110 0000 ul i t loss that, $1,000 in tiles' cases in which was teased 0.00,0 abandoning 1110 same; to carry out at expanse
and is i•
oJ by law /or the arumclion 01 the owners 01 030. Of the lessee all rears n ble orders of the lessor relative to the
•IE'aL.
1 r. 1)0 o; .n 1 the bonds described herein. the matters 'n this pare h, and that 00 failure of the lessee s0
O 00.1 iiln such other 50, 6 as the r ag01011005 may permit. to do the 100000 shag )lave the eight so enter on the prop.
b) <.mier y r plan. Wilhin 00 0000 of do rend, arty and to ••c^rn 1.011 the purpose of 0,100 orders 31 111. lesson's
it (00 osnd land is committed to un oppruved nit or hoop cast: rov,ded, That t the lessa- ho!1 300 he held sponsible
'0(40 331 '0(40 n end such plan is terrninet ed prior to the expiration for debars Or ca s wallies o t _asioned by causes beyond 0,5005
Ihi' 1,000, wil(in 30 days of demand made theeaftr, 00 sub control. dom o/ purrhane, —To pay when
to an pa
d to umie under itch a
rnownnble .operative or (h) 7',.,,! nd 3 -ngrn, jeer
r the Onnoiopmnn^ Irnd on a
ion of the ea. field. doe all tax. svriully assessed and levtud under the laws 0f the
p15; nr )art !hereof, er :(racing th ands nds inc)uded 550e30 es State or the United State. upi improvements, oil, and gas
r, rCler)' nl :hit interior m y then defanaine to be practicable produced from the lands hereunder, or other rights 9,090005.
nucansary or aavisabla, whicn pion elf 0d50u00010 protect or asses of 011e !05300; to nccord all workmen and employees
right of ell parties la• 1050, eluding lha United 00,1 t nmpltp Ireedom of purchase, and to 030 all ages due *000-
--(11 To rill a nd yrcduco ell wails necessary to en and employees at load hwice each month in the lewiul
licit tiro I asad land loom drainage by wells on lands not the i money of the United Staten
erlormance of
r eery 01 •h, lessor, a r !unds of 00, United Slates lensed al n (O 0(0030 001333 the D aqua! opport.ai,y
roya e
lty rata. o «1110)3 the ro..Itieo and mills are this contrecl the lessee agrees s1 follows:
info different finds than are thus. Of t'0 IC se or in lie (I1 li qunl fnap.rru• :i,. clause. 113.0053 m
rtgg the perforance
na;Y 01 such rilliny end pr(Wuctlon, ih Me consent of o` lbw lasso, the lessee agrees as follows:
7 of rim Geological olver, lu compensate the lessor dt,rmi (1) Thn lessee wU; nor discriminate SKa lest any
full vcn until lo, the e5limtOd loss of roy hrou
alty tgh plavee upniic t to: mpiny mom becvu5e of race, color,
amount nod by s the aid Director: (2) at nrlio s n ral The lessee will take
:ho,7 a lossav, to drift and produce other wells in Co. f:atirrme n a tt Ihat applicants o employed,
n1icy with any
s ystem of wall spacing Or production al lolmen(S and that empIoyees a treated during employment, w)lhou 5011".g ecg Ilea fieldor ar s in hick the 100,06 lands are situated, regard to their rn co(or, religion, se t
or national 0,35)0.
ice is nuthorized and ,onetlonad by applicable 350 or by the Such acl)an shall include, but not be limited to the following:
rotary 04 tlm Interior; and (3) promptly olrwr duo notice In mployment, upgrading, demotion, r 000081 r; u)tmenI
ding fo drill and produce s u ch other wells »s the Secretary r
f o. ailment odven)n ins; layoff er ternination; rtes of
'.five O may rona ably roqulre in order That the leased pn y. he
otr fortes of compensation; r
pensation; and %election for .in-
;ni +ay bit p Opsily and llmely developed and produced in 0001, nclud)ng apyrenl)cesh)p. The Ieasee .trees to all
i ilh good pen sting p004100. i ole lives places, a table 10 employees and applicants
(0) �rcniair e /nu
n
r y -Q) To pay rentnle and royalties (o, s m l e
emplovm<, no e< ro br pro m
provided by contracting
anroun3 or v.lue of production rcmovsd or ,old from the officer sorting forth tim provis lens of this Ea nor Opportunity
I I<nsod Inuds x f0l1O,50 cs oar.
u -T. pay the lessor in 3010,00 an annual rental i (2) The lessee will, in ell ;vile ilt ion. or advertise
u'lowing nest -rents 100 000(100004 ol...d by or 00 00 behalf of the lessee,
II mn Innds 04, wholly o ,aid. the known geologic ,true store
h ell quo li(kcl opFlicon(' 0(31 r e ons)deralion
.mo.Ol a uroducing ail or 1100 field: mployment without regard to 0300, color! religion. 500,
fit it or
a %o y. n ront.l of $1.00 ace 0033 c ,w
Of (diction 040 acre. The Ieasee will send to each labor union or repre-
11 ',ho 'sad, are wholly 0' 0300)7 within the known goo ,0301010 of '0,0,005 s with which hr• hes collective bargain-
0. topic 5lrwctare of a p ooucing 0,! 0r yes field: leg ageeemem or ofh <r coni-ac i understanding, a mo ice,
(11 9.ginning with the f rst lease year after 30 days' to be provided by the agency t
s acting officer, advising
M ine !het ell or part of the Nadi i 0
n laded in the labor u o 050' orkers` a presemtat)ve of the (essee's
,itch 0 a1'ructure end 10, each, year 1 lheretter, 1 mm)lment 000e, 111i0 Equal Opyortun)ly' clause, and shall
prat to a diaenva:y of oil or ¢as a the lands pus cop of the notice n c.,,pic,,,, places ova U.ble
asad. r
62 nor 0010 Ot 1 Action of 00 0000. •a r,elaycea and appliconts!or emDlOYment.
11 this m i0e,5 1 e; to to a appro s capaop' (4) 1 will cS with aft Provisions Of
live or unit plan 0 include, wall ble _x li 0 O der 50. No. «kr01240 of Sept epte a n 1
a
24, 1965, 0 5 mend
ui producing nil or ass and wotain, a go local e vetet. d of ;nc rules. u la lions, a. d rete. nt ordeers of the
uruvisiun for ello S<
cal!on of p,odoclion, the cartel crory of Labor,
or,sccib6 for tf 0 01, 4, sxetion, v epply to the
nar0grap (o}
_o.ga not within o participating nree.
iriia,ma e r.drr.--Crmmnncing with file 3550 0035 begin
in2 un or oil s discovery Un the assit land, to pay the lessor
of rartxl, a minimum royally at 51 yon ,ore o lrnction
iarw' at Gan e;piation s•f ,och leas. yea:, or !ha difference
:rnre.,, tine actual royalty paid during the 4 30 t Iasi !ban $1
and rho prescribed mini um :043107 01 51 004 a r.,
c
ridod
hot if this 100x, is unilitod, the minimum ,,ynly shell
o eyn ?IS any m: the particinaling novena and ]anal :hall 50
a in Ina nenparlici ovli. ^.Y. aorongv as nnovidW :1 subpar,
r, poi (bliii) above,
l:nully nn produr0,uu. To pay the Iryt.or 1211 irvrcnnl
oyalty 0!l tie production removed r sold Prom the leased !ands
o mpu!ad in accordance with the Oil and Gas Operating Regu(a-
ic (30 CFO 10. 221).
(2) !1 1s 00pr055)( 5900n0 that the Secretary of the I.,lerio,
lay establish reas0nabl. mm values for purposes 0? cam
lot:,,; royalk on any cr eh it il, gas, natural gasohno, and oilier
rrcduc!s obtained i,am ilea dun consideration uai g given to !hit
110000) 'yfi« acid for a haft nr tare mejoriY}I of production of
ik5 auoliiy in In. sit n field, 10 the Vrlcn 00:e1Y51 by the Imsoe,
poslsv' pee, and to other relevant on,110ro and, whenever
:nprvuriafa, allot Mice and uppurtu pity to be heard.
(3) YRlon ,':d in Iowa, 5056 ove'iee on production shall b
sod payablO monthly on the last day of the .lend,, month
r a. the calendar month to which groducod. When
;mount of production, sacb reytty producs shall bit 6..
nrnd is nrchnntabin tundil)on on the premises nbtal produced
010:100 0051 !u l0a00r, unloas otherwise ngread to by ih, parties
raid, limos os and uch tanks provided by the lerseu as
,s
nwly may bO Enquired by file lessor. b,ti0000053 shall
bj 'o,SOO 04 feq04000 FU hOW 50010 oYtry 011 0r other 7000,043
In storage beyond the Iasi day of the culnndar month next /oh
010)013 04,0 colonduo month in which y,0000.d nor be responsible
r hold 11,010 far the less or deslnuchpn of royalty Oil or 311100
,,lOduoOS is storage 10,110 030550 over which 130 has 00 0051101.
(4) hei tats r mi imu n royalties may be aivod, sdspanded
or reduced and r.y.Itios an the entire leasehold or any portion
10000ef sagrngat'd ter royalty yurrOS may be educed if the
3 .0 ,0000) of Ihn 1,10,103 (rods loaf, for tare purpose al encou
aging the greatest ollimnte 000050!11 of Oil 5, g s .00 in the
403,1001 't of consmvtiol of natural 015000ca5 it is nec0ss1ry, in
!,is !udglnent, to do 50 in order to prompt. davolopmont, ar be.
'e lee s a cannot be s,ccaa,f,,JIy aperatod undo, the terms
t)xoil herein.
of lh. P�lorior, to 00,110 rs tel, o,y 00 00003 payments to t the
tosser, to the pillar of the Ouroau of Land 10.040.1,501 .t the
pines m intoned 10 in the .Solution 43 CFR 3102.2. N there
w.11 oa the Iwsed tends capable of producing or) or gas
i n 1 00(000 5001101105, the 103)000 !o 1000 ,00031 on or before the
s ry 000, shell autamalice) Iy terminate 1110 lease by apora-
IVd Inw. 3100000,, if Re time for payment lolls an a day in
•nish the prop., nfficn to receive payment is rinoed, payment shell
bn amsd ;ime!y it made on th, next official «0,40103 day.
(3) Co 0r, :rr /on d(0nnml 1 /,roduu —Tic file with the
Dil x u G.s Supervisor of it,. Cau,oginol Survey not lets than
30 di y s nflOr eon 30,0)303 date thorool »ny contract, a evidence
d: i!he, arrontement, for the salo On d3s008,1 OI nit, gas, 0.000,1
(0001ino, end 0t)e, products Of the leased land: Provided, That
nolhina in of y such contract or oscr orrangament shall be 000.
•lruod n difyins any of file provisions of this lease, including,
bet not limited to, provisions relating to qnc waste, taking loyalty
in kind, and the method of cowpo ing royalties due as based on
O valuation and in nccordance,with the Oil end Ges
Ota'sting Ragulaiinns. 403)1; At 0such tingf �rfd'in
scch 1o00 ea the 10,50, may prescribe,
to hrrnish detailed state
melts In owing if., am uns and quality at all products romuved
and sold 1,00, flat lease, the proceeds therefrom. and the amount
used for production purposes 0r vnidebly Iml: a plot showing
develupaleat «a,it and imp,aysmens t n Ie 100504 land,: and a
n
•et with '0,00,1 10 sioekhoidem, investments, depreciation
as ca
3111 s -in Hoe.. daily mn 3r i l l i record, a log, and
pin to i� On all w e, ,',Y, 00 and lasts in form accept.
1 +a c. .r... vibe^ by 'be!.s.nr ell welts drilled on
(5) The lessee will fo,s,,6 all informatior and reports
.qulred by Executive Order No, 11246 of September 24.
1965, as amended, and by the :ls, regul«tions, 006 orders
of the Secretary of Labor, or pursuant theretq and will,r-
mil .000 to his books, records, end 00e 0 n s by 0110 c'
act )ng agency and the 500503001' of 1,060, 04
for 0004.0.0(
tiger un lit x 0,,.m comel)once with such rule., 0,050-
lotions, 050 000,r..
(6) In !6000,olofmho fez %re's mpliance 0331,
silt Equal Opyorlun)ly' 11.051 at this contrecl 315 ant'
of !h Said ,0005, regale s is or pad.. 1 600 0000 rt mat
s
be ...!led, lane ins :nU l or suspended whole or m par!
and the ..tractor 60 declared inehgib to for further
w
O enno00ot contra u m in re
acco,d.ncn w ith procedures «uthor-
raed I. Executive Order No. 11246 of September 24, 1965.
marled, and Bach other s may be imposed and
roadies invoked es provided in Executive Order No. 11236
of September 24, 1965, as mended, or Sy rule, regulation,
orde, of the Secretary of Labor, or es olherwise provided
EY law.
(7) The !es ill include the provisions of pnr.-
gr.ph. (1) through (7) n
)n every aubco.tnct or pit 000l000 order
unlose a m
x epted by ru lee. regulations, or order, of Ole-
506000005 s Labor i lied pu.vuunt to Section 204 «(25.
live Ord., No. 11246 of September 24, 1965, m.nded.
n that ouch provisions will be bird)ng upon a.,h subcon-
tractor cr end or. The lessev will take such action with
espec+ to any subcontract o urchase order as the c
ecl)ng agency may direct e s mem:s of enforcing such
provisions inelod)ng zit o do sfor non mpli550e: Provided,
er Thal in the <vn
r 1 the lessee becomes involved
threatened 0,30, litigation 00)06 u .ubcomv.clor
<'do' a 5 sit l of such d'upction by the cottract)ng
O 00000. '6.leasee may request the United States t0 enter
.0308 titillation to protect line )nten.st5 of the United
5la
On) Anignmenn of i! and Rw Iran 00,000,000 (hrre,n.
As rtau)r,d by applicable Isw. to file far approval' by the lessor
a ny instrument 0! trantor made of this lease or any interest
therein, i eluding assignments at record till., operating agree'
mans and subleases, worhiog ur royalty interest,. within 90
days from the data of final executea thereof,
(n) Pipeline m 0000 hole o really 00 reananabfr rater
and w rhou0 d,urininar,on. —If owner, 00 09,0000,, or owner
of a controlling In1e,,50 in any pipeline or of any company onrat-
ing the a which may be o t
raled a cessible to the oil
1 o lawill 40001 la nil under th lees, to.ccept and convey end,
produe's t o purchase at reasonable rates and
without discrimination the oil or gas of the Government or of any
)bran Or cam Da ny not the owns, of any pipeline, operating a
tease or purchasing or salting oil gas, acural gasoline, or Oliver
products under the provisions of the act or under the provisions
00 0110 net of August 7 1947 161 Stir. 913, 30 U.S.C. sic. 351).
(o) Lando pp nuca minh o l a d tan deponitr a,,,re,d 00
he United 510000 comply with oIb statutory requirements
a regulations thereunder, nder, if ,he lends mbraced herein he,,
been a shalt hereafter be disposed of under the taws rase mg
to the United States the deposits of o)) and gas therein, subject
to such conditions 30 350 or may hereafter be provided by the
Iowa reserving such it or gos,
(0) Reword ar 3e400'ga,,d land,. -If any of the tend i
ludod in this tease is embraced in rasnrvetion or segregated
for any particular purpose. to conduct operations thereunder )n
conformity with such requ irements s may be made by the
04,0010,, 800..' f Land Menagamant, for the protection .ad
uec of the land for the purpose for which it was reserved or
,ognagoted, so far as may be consistent with the use of the lend
(or the pulpo.0 of this tease which tatter shall be regarded as
the w nant use unless otherwise provided herein or separately
,N
(q) Pg nn of 0 a ruru( o as nr
menu. The he I p ve tgr 30653 take sut5001, r s en dl s 3! as may
be needed to pr o usi ape phr tl on the leesa fo 0100,0 0! Inc.,
ne000 an m mw
duti lit sa r l o Or J. ad
aging cro, do inoludih fpra g,, g and ber gth ther0 un
eon or
1 i
adeal or 3mdenl i mpr tn wn e d th y; pottering
end wne; (3) 3 do damaging ein d e m by the Dos
v
gd
or C pa 0n stro
Cher rties: (4) ulon. 0y; g, ar 1 a a o ga ng 3 01, snd oe n any -i p foss0500,.
il s
.sloric or pr.hisrnrit runs, nr artihctr and upon nny partial or
000 _7111100
s, ram.. or co er all debris, and s s
ble r store the surface of the leased lna'
he former condition, including the re of
and if required. The l essor y preacri0' the 01, 50 ,o
to be taken and restoration to be made with respect :o the !,,o:wd
lands .00 im nls there on w ether or t ow' ed by 35,
'bc
United Slates. A ariquidrr, and obinva 04 2in n,h eels".
When American antiquities oT other objects of h!sloric or 5110003
tic interest including but not limited to 3) 500,00 or peNrtoric
0040 lees!!, 00 artifacts are discovered in the performance, 01
this lease, the item( or rondition(s) will be left intact and
immediately brought to the attention of the contracting office, or
nis .uthor)xed oop,.son?00,0
(r) 0ooriding roya70in. -0401 to create overriding oyalties
i50r'55 of five percent exeept as otherwt.e authorized by the
regutions.
(s) Drlivrr premuer in raver of Jo,fei un. —To deliver up
to the lessor in good order and condition the land loosed 15515 4'
me all Imp00ve9,ent5 which are necessary for the preservation al
producing wells,
Sec, 3. The lessor reserves:
(a) Enrrmrn00 and'rrghrn o -uai. —The right to permit fm
joint cr. several use eas ants or r ghl, including yes
cots tunnels upon, through, or n the 0 longs lands leased, occupied,
m n
00 053 as may lie 500355304 or appropriate to the working of
the same or of other lands containing the deposits described in
the a t, and the treatment and shipment of products thereof by
or under authority of the Government, its lessees or pormiUens,
and for other public purposes,
(b) Di0 0 4ow of 0ur —The right to lease, sell, ar other
'se dispose 00 f to sue) ce of (Ile 16 0004 fa
law or ,aws hereafter enacted, insofar as said surface is not
necessary for the use of the lessee in the extraction and r0movci
the o and =es therein, or to dispose of any resource in such
lends which will not unreasonably interfere with operations order
this lease,
(c) Monopoly a d /a n
/air prk,—Fco power and authority to
prore. ....s and enforce alt orders necessary to insure the os
of the production 10 ction of the leased lands to the United State, and fo
the public at asonsble prices, to protect the dnl....is of the
United States, to prevent monopoly, and a safeguard the public
welfare.
(d) Hrliam.— Pursuant to Section 1 of the act as amended,
the ownership of helium and the right to extract or have it 11
0ra00ed from .11 gas produced under this lease, bject to such
00408 and regulations as shall be prescribed by the Secretary of
the Interior, 11 the lessor elects to take the helium, the lesson
s hill deliver all or any portion of gas ontaining the mine to the
lesser, in the manner required by the lessor, at any point on ilia
tossed premises, or, if the area is served at the time of production 501004 on 300 a pat'nt 010 0)0.0 oystam spe<'1 ed by the lessor, ,000,00)00, ol
the helium by such means as the lessor may provide. The residue
'hall bit turned to the lessee, with no substantial delay in the
deliver, of the gas produced from the well to the evner 00 per
chaser thereof. Save for the value of the helium extracted, the
lessee shall not suffer a diminution of the vela, of the Sea pro
duced from th, ll. Or loss otherwis,, i ncluding any expense
•ausee s olely y the requirement of the delivery t the gas to
permit the extraction of helium, for which he i, t re lably
compensated. The lessor reserves the right to erect, maintain,
.ad operate any and all reduction works necessary for extraction
of helium on the leased promises. Th. !nano* further agrees to
include in any contract of sal. of gas from the lands subject to
this lease provisions setting forth that the lnnor owns, and no-
5 00031 the rigOt to.extract or have extracted, any helium in the gas
sold, and that the lessor may take the gas from a pipeline carrier
any other gas-gathering system and extract the helicon and
0 eto' the go, to the Owner thereof,- without elay other than first
.used by the e01rac1100 process; sere for the value of Cho helium,
the owner shall not suffer any diminution of the value of the ga6
from which, helium has been extracted, or any other loss risi e
from the extraction of helium,' Including any oxpon5e cuus ad solaly
by the requirement 00 the delivery of the gas to perm)t hot n o
lnction 03 helium, for which he 1 s000000,sn, bly cdmMnsated.
It is further agreed. that any righs re5ervod vested in the lessor
u nder'.thls(,Wragraph shall' also run to any ,Rent 00 00' .1(003 t
the lessor or any purchaser 01 the rights of Cho 105500.
(e) Taking of r*yall,00. -611 righs pursuant to auction 36
al the sOO to bee. royellit. )n .Mount or I. va10. of predat)on.
(1) Caning. —AII night, pursuant to 500040, 40 of the act to
•purchase.aa ;mg, sad I..., or opersto velunble water wells.
sac, 4. Drdlmg'and producing rerrri0rion,. -[t is aeraod
that ins r.is of prospecting and developing and the quantity and
rte of production from tha lands covered by this lease 5hail be
object to control in the public interest by the Secretary of Ciao
Interior, .ad in the exercise of his judgment the Secretary
may take into consideration, among other filings, Federal Jews,
50.08 laws, and regulations issued •hereunder, or lawful ogroe.
Or is among operators regulating either drilling or production, or
both. After unitization. the Secretary of the interior, or any
person, 0000mi1003, or State or Federal officer or agency 15
authorized in the unit plan, may alter or modify ffom time to
time, the 0,10 of prospectine nd development and the quantity
.ad rata of production from the lands covered by this 10350.
2.5, S. 2 nrreo der and «rminafion of lean,. —The 10,300
may sonoondoo this Iaase or any Iege) subdivision cheroot by filing
in the proper land office a written relinquishment, in triplicate,
which shall be effective a, at the data of filing subject I. the can
linu.d obligation .0 1)00 I.e...ad his surely 10 m.it, payment of
.11 .cc ed 0.01015 and r yaltios and to place .11 well, em the 1.0,1 to be relinquished in condition for suspension or abandonment in
accordance ith the •ppl.,Ohio le050 tans and regulations.
sac. 6, P rha,e of m «note, err verminaum, vJ
/rare, —Upon the expiration of this lease, or the ourl)a, tarminu.
tion thereof pursuant to the last preceding section, the (05,50
shall hew it,. privilege at n y time «40)0)” 5 period al 90 days
thereafter of removing from tha premises .11 moch)nary, aquip-
me 1, loos, 306 materials other than improvnmouts needed far
producing wells. Any mteriels, tool,, appliances, machinery,
structures, and equipment subject •o r moval as born p,00idsd,
hich era allowed to remain on the leased loads «hall bocoma
the property of the lessor on expiration of the 90 day period or
s eh extension thereof ss may bo granted bwause of odvose
Ilmal)c c ditious throughout said pa'led1 Pro'id,d, That the
lessee shell remove any or all of such property wlmro sc dirocto,1
by the lessor.
see. 7. P, orerding, in rare at drlaulr. —If the lass.. ::hall
not co ply with any of the provisions 0010.0300 or the rogoio.
lions thereunder or of the lease, or shall make default in tiro
tth p e rf o rm a nce s tot Payment or annul real.[ which 03 10,0 0
the au emetic
termination of the lease), and such default shalt 00011000 for a
period of 30 days after se a of wr)tten notice thereof by the
le53or. this lease may be canceled by the Secretary 04 0110 Interior
n accordance with section 31 00 0110 act, except that ii this tease
000 rs lands known to contain valuable deposits of alt of gos,
the lease may be canceled only by judicial proceedings in file
ma000n provided in section 31 of the act; but this provision shelf
not be construed to prevent the exercise by the lessor of any
legal or .quitebin remedy which the lessor might otherwise have.
Upon csncellatton of this sits,, airy ..sing, material, or
equipment determined by the 10,40, to be 5 SOOSS3ny 450 use in
plugging or preserving any well drilled on the teased land shall
bwoma the Droperry of the lasso,. A wire, of mry pa01150100
cause of ci cellatton and forfeiture shall eat prevent the e^
collation and forfeiture of this leas. for any other cousa O
ncellslian and forfeilure, Or for the same caw* r,.«_i ring of
any olhor lime.
Seat. 8. Hrirr and au s
rron-in ,r u0. —It is torlhe,
agreed that each obligation hereunde, halt extend to and be
binding: n, and 00.00 benefit hereof shat' in to. the heir,
execute I'edmtrialralors, successors, or 055(405 01 the respective
parties hereto.
Sae. 9. Unlaw/ l inure,!, -it is also further agreed that
n o Member of, or Delegate to, Congress, or Resident Comntls•
5, 00,0, 01,, his election or appointment, or either 11efor0 Ot
after he has qualified and during his continuance in office, and
that no officer, agent, or employee 01 ilia Department Of th.
Interior, except as provided in 43 CFR 7.40,1(1). ;broil be ad-
lNed to any ;here 5, part in this 'ease w derive any benefit
that may arise therefrom; and the provisions of 5ee. 3741 of
the Revised 00.000 3, 08 the United States. an 1'nerdat. (41
U.S.C. Sao. 2) end Secs. 431. 432, 000 433, lit!n :d U.S.
Code, relating to contracts, enter into and fo,n.os0 of
leas, '-'1,, the same may be applicable.
5020 e,,5 -5:5
Management Agency (name)
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
SURFACE DISTURBANCE STIPULATION'S
HE;G!ONAL DIRECTOR
OR p J 7
BUREAU OF RECLAMATION
R 0. BOX 9 1r6
LL\ i"o F. tiJ m( U T 84110
Notwithstanding any provision of this
lease to the contrary, any drilling, construe-
Lion, or other operation on the leased lands
that will disturb the surface thereof or
otherwise affect the environment, hereinafter
called "surface disturbing operation," con-
ducted by lessee shall be subject, as set
forth in this stipulation, to prior approval
of such operation by the District Manager in
consultation with appropriate surface manage-
ment agency and to such reasonable conditions,
not inconsistent with the purposes for which
this lease is issued, as the District Manager
may require to protect the surface of the
Aeased lands and the environment.
Prior to entry upon the land or the dis-
urbance of the surface thereof for drilling
other purposes, lessee shall submit for
approval two (2) copies of a map and explana-
i .ion of the nature of the anticipated activity
,,Ld surface disturbance to the District Manag-
,r, as appropriate, and will also furnish the
ppropriate surface management agency named
,above, with a copy of such map and explanation.
CERTIFIED
0 be a true and comparative copy
of the otfici frecordsonfife WY 3109 (Jan 1983)
(Replaces 3109 5)
n.
000421
District Manager (Address, include
zip code)
District Manager
Bureau of Land Management
P. 0. Box 1869
Rock Springs, Wyoming 82901
Address (include zip code)
An environmental analysis will be made by the
Bureau of Land Management in consultation wit
the appropriate surface management agency for
the purpose of assuring proper protection of
the surface, the natural resources, the envi-
ronment, existing improvements, and for assur•
ing timely reclamation of disturbed lands.
3. Upon completion of said environmental
analysis, the District Manager as appropriate
shall notify lessee of the conditions, if any
to which the proposed surface disturbing
operations will be subject.
Said conditions may relate to any of the
following:
(a) Location of drilling or other
exploratory or developmental
operations or the manner in
which they are to be conducted;
(b) Types of vehicles that may be
used and areas in which they
may be used; and
(c) Manner or location in which
improvements such as roads,
buildings, pipelines, or other
improvements are to be constructed.
CULTURAL RESOURCES STIPULATION
The federal. surface management agency is responsible for assiiring= tla.at
the leased lands are examined Lo determine if cultural resources are
present and to specify mitigation measures. Prior to undertaking.. any
suface- disturbing activities on the lands covered by this lease';
lessee or operator, unless notified to the contrary by the authorized
officer of the surface management agency or BLM as appropriate, shall:
1. Contact the appropriate BLM office on lands managed by BLM or the
appropriate surface managing agency on lands where the surface is
administered by such agency to determine if a site specific cultural
resource inventory is required. If a survey is required, then;
7
Engage the services of a qualified cultural resource specialist
acceptable to the Federal surface management agency to conduct an
intensive inventory for evidence of cultural resource values;
3. Submit a report acceptable to the authorized officer of the surface
management agency; and
4. Implement mitigation measures required by the surface management
agency to preserve or avoid destruction of cultural resource
values. Mitigation may include relocation of proposed facilities,
testing and salvage or other protective measures. Where impacts
cannot be mitigated to the satisfaction of the surface managing
agency, surface occupancy on that area must be prohibited.
The lessee or operator shall immediately bring to the attention of the
Bureau of Land Management or the authorized officer of the Federal
surface management agency any cultural resources or any other object of
scientific interest discovered as a result of surface operations under
this lease, and not disturb such discoveries until directed to proceed
by the Bureau of Land Management.
ec
CERTIFIED
b 6e a true and comparative copy
.01 the official' records on file
000422
NOTICE
STIPULATION FOR NON CONVENTIONAL OIL RECOVERY
v ,8ignature
000423
Due to the enactment of Public Law 97 -78, signed by the President
November 16, 1981, this lease contains an additional term specifying the
rights and obligations of an oil and gas lease issued subsequent to that
Act. This term merely specifies what the impact of passage of that Act
has done to a Federal oil and gas lease issued on or after November 16,
1981. In order to reduce the expense and delay involved in the execution
of this additional term in the standard lease, we have included the
clause and are hereby notifying you of its inclusion in the lease. This
term simply states the provisions of law now that oil and gas and tar
sands rights are subject to the salve lease and preserves to the Department
the right to approve or disapprove a plan of operations.
"Under the provisions of Public Law 97 -78, this lease includes all
deposits of non gaseous hydrocarbon substances other than coal, oil
shale, or gilsonite (including all vein -type solid hydrocarbons).
Development by methods not conventionally used for oil and gas extrac-
tion such as fire flooding and including surface mining will require the
lessee to submit a plan of operations and will be subject to regulations
governing development by such methods when those rules are issued by the
Bureau of Land Management (BLM), and the rules or procedures of the surface
managing agency, if other than BLM. Development may proceed only if the
plan of operations is approved."
l i„
CERTIFIED
to be .a true and comparative copy
of the official records on file
6 2 9 21'11
BUREAU OF LA MA
NA r
In order to minimize watershed damage, exploration, drilling and other
development activity will be allowed only during the period from May 15
to March 1. This limitation does not apply to maintenance and operation
of producing wells. Exceptions to this limitation in any year may be
specifically authorized in writing by the District Manager /Bureau of
Land Management.
In order to protect raptors and wildlife, exploration, drilling and
other development activity will be allowed only during the period from
July 1 to March 1. This limitation does not apply to maintenance and
operation of producing wells. Exceptions to this limitation in any year
may be specifically authorized in writing by the District Manager /Bureau
of Land Management.
In order to minimize watershed damage, during muddy and /or wet periods
the District Manager /Bureau of Land Management may prohibit exploration,
drilling or other development. This limitation does not apply to maintenance
and operation of producing wells.
To maintain esthetic values, all semi permanent and permanent facilities
may require painting or camouflage to blend with the natural surroundings.
The paint selection or method of camouflage will be subject to approval
by the District Manager /Bureau of Land Management.
No occupancy or other surface disturbance will be allowed on slopes in
excess of 20 without written permission from the District Manager/
Bureau of Land Management.
No occupancy or other surface disturbance will be allowed within 660 feet
of the highwater line of Fontenelle Reservoir. This distance may be
modified when specifically approved in writing by the District Manager/
Bureau of Land Management.
No access or work trail or road, earth cut or fill, structure or other
improvement, other than an active drilling rig, will be permitted if it
can be viewed from the Fontenelle Reservoir.
Date
l
Signature z-
to b a true ERTIFtED
of the official records ap,
Qn fllo
AUG g
1
BU BEAU OF LAN
MANAGE
,F•
000424
Form 3109 -1
(December 1972)
(formerly 3103 -1)
The lessee agrees to maintain, if required by the lessor during
the period of this lease, including any extension thereof, an
additional bond with qualified sureties in such sum as the
lessor, if it considers that the bond required under Section 2(a)
is insufficient, may at any time require:
(a) to pay for damages sustained by any reclamation
homestead entryman to his crops or improvements caused by
drilling or other operations of the lessee, such damages to
include the reimbursement of the entryman by the lessee, when
he uses or occupies the land of any homestead entryman, for
all construction and operation and maintenance charges be-
coming due during such use or occupation upon any portion of
the land so used and occupied;
(b) to pay any damage caused to any reclamation project
or water supply thereof by the lessee's failure to comply fully
with the requirements of this lease; and
(c) to recompense any nonmineral applicant, entryman,
purchaser under the Act of May 16, 1930 (46 Stat. 367), or
patentee for all damages to crops or to tangible improvements
caused by drilling or other prospecting operations, where any
of the lands covered by this lease are embraced in any non
mineral application, entry, or patent under rights initiated
prior to the date of this lease, with a reservation of the oil
deposits, to the United States pursuant to the Act of
July 17, 1914 (38 Stat. 509).
As to any lands covered by this lease within the area of any
Government reclamation project, or in proximity thereto, the
lessee shall take such precautions as required by the
Secretary to prevent any injury to the lands susceptible to
irrigation under such project or to the water supply thereof;
provided that drilling is prohibited on any constructed works
or right -of -way of the Bureau of Reclamation, and provided,
further, that there is reserved to the lessor, its successors
and assigns, the superior and prior right at all times to con-
struct, operate, and maintain dams, dikes, reservoirs, canals,
wasteways, laterals, ditches, telephone and telegraph lines,
electric transmission lines, roadways, appurtenant irrigation
structures, and reclamation works, in which construction,
operation, and maintenance, the lessor, its successors and
assigns, shall have the right to use any or all of the lands
herein described without making compensation therefor, and
shall not be responsible for any damage from the presence of
water thereon or on account of ordinary, extraordinary, unex-
pected, or unprecedented floods. That nothing shall be done
underr this lease to increase the cost of, or interfere in any
manner with, the construction, operation, and maintenance of
such works. It is agreed by the lessee that, if the construc-
tion of any or all of said darns, dikes, reservoirs, canals,
wasteways, laterals, ditches, telephone or telegraph lines,
electric transmission lines, roadways, appurtenant irrigation
structures or reclamation works across, over, or upon said
lands should be made more expensive by reason of the
existence of the improvements and workings of the lessee
thereon, said additional expense is to be estimated by the
CERTIFIED
to be a true and comparative copy
of the official records on file
AUG 2
(Continued on reverse) A..
BUREA OF LAN MANAGEME
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
LEASE STIPULATIONS
BUREAU OF RECLAMATION
000425
Secretary of the Interior, whose estimate is to be 'final and
binding upon the parties hereto, and that within thirty (30)
days after demand is made upon the lessee for payment of any
such sums, the lessee will make payment thereof to the
United States, or its successors, constructing such dams,
dikes, reservoirs, canals, wasteways, laterals, ditches,
telephone and telegraph lines, electric transmission lines,
roadways, appurtenant irrigation structures, or reclamation
works, across, over, or upon said lands; provided, however,
that subject to advance written approval by the United States,
the location and course of any improvements or works and
appurtenances may be changed by the lessee; provided,
further, that the reservations, agreements, and conditions
contained in the within lease shall be and remain applicable
notwithstanding any change in the location or course of said
improvements or works of lessee. The lessee further agrees
that the United States, its officers, agents, and employees,
and its successors and assigns shall not be held liable for
any damage to the improvements or workings of the lessee
resulting from the construction, operation, and maintenance of
any of the works hereinabove enumerated. Nothing in this
paragraph shall be construed as in any manner limiting other
reservations in favor of the United States contained in
this lease.
THE LESSEE FURTHER AGREES That the is reserved to
the lessor, its successors and assigns, the prior right to use
any of the lands herein leased, to construct, operate, and
maintain dams, dikes, reservoirs, canals, wasteways, laterals;
ditches, telephone and telegraph lines, electric transmission
lines, roadways, or appurtenant irrigation structures, and also
the right to remove construction materials therefrom, without
any payment made by the lessor or its successors for such
right, with the agreement on the part of the lessee that if the
construction of any or all of such darns, dikes, reservoirs,
canals, wasteways, laterals, ditches, telephone and telegraph
lines, electric transmission lines, roadways, or appurtenant
irrigation structures across, over, or upon said lands or the
removal of construction materials therefrom, should be made
more expensive by reason of the existence of improvements or
workings of the lessee thereon, such additional expense is to
be estimated by the Secretary of the Interior, whose estimate
is to be final and binding upon the parties hereto, and that
within thirty (30) days after demand is made upon the lessee
for payment of any such sums, the lessee will make payment
thereof to the United States or its successors constructing
such dams, dikes, reservoirs, canals, wasteways, laterals,
ditches, telephone and telegraph lines, electric transmission
lines, roadways, or appurtenant irrigation structures across,
over, or upon said lands or removing construction materials
therefrom. The lessee further agrees that the lessor, its
officers, agents, and employees and its successors and
assigns shall not be held liable for any damage to the im-
provements or workings of the lessee resulting from the
construction, operation, and maintenance of any of the works
herein above enumerated. Nothing contained in this paragraph
shall be construed as in any manner limiting other reservations
in favor of the lessor contained in this lease.
(Signature of Lessee)
To insure against the contamination of the waters of the Reservoir,
Project, State of the lessee agrees that
the following further conditions shall apply to all drilling and operations on lands covered by this lease, which lie
within the flowage or drainage area of the Reservoir, as such area
is defined by the Bureau of Reclamation:
1. The drilling sites for any and all wells shall be approved by the Superintendent, Bureau of
Reclamation,
drilling begins. Sites for the construction of pipe -line rights -of -way or other authorized facilities shall
also be approved by the Superintendent before construction begins.
2. All drilling or operation methods or equipment shall, before their employment, be inspected
and approved by the Superintendent of the Project,
and by the Supervisor of the U.S. Geological Survey having jurisdiction
over the area.
000426
Project, before
GPO 854 -703
BUREAU OF RECLAA`iATION
SPECIAL OIL AND GAS LEASE STIPULATION
"X" MEANS STIPULATIONS APPLY)
1. Lessee agrees to obtain prior written approval from the Bureau
of Reclamation prior to any and all surface activities in connection
with exploration, drilling, or any other activity associated with,
or leading to oil and gas production (including seismic activity)
on any lands which the Bureau of Reclamation has jurisdiction as
the Surface Managing Agency.
2. All surface work performed by the lessee on Bureau of Reclamation
lands shall be under the general supervision or standards (guide-
lines) provided by the Regional Director, Bureau of Reclamation
in direct charge of the project, and shall be subject to such
other conditions and regulations as he may prescribe. The plans
and location for all structures, appurtenances thereto, and
surface work on the Bureau of Reclamation lands shall be submitted
to the said Regional Director for approval in advance of commencement
of any surface work. All oil and gas drilling and producing
operations shall be under there supervision of the Regional Oil
and Gas Supervisor, United States Geological Survey, in accordance
with 30 CFR 221. The authorized representatives of the Bureau of
Reclamation and the United States Geological Survey shall have
the right to enter the leased premises at any time to inspect
both the installation and operational activities of the lessee.
3. Prior to any surface distrubing activities within the Bureau of
Reclamation lands, the Lessee agrees to determine the presence
or absence of any cultural resource sites (archeological and
historic) within the oil and gas activities right -of -way in
accordance with National Historic Preservation Act of 1966,
Executive Order 11593 and the National Preservation Act of 1974,
(Public Law 93 -201). The lessee will seek a determination of
National Register eligibility from the State Historic Preservation
Officer (SHPO) for recorded sites, and develop a mitigation plan,
including avoidance (where possible), acceptable to the SHPO
for those significant sites subject to an adverse impact.
4. Lessee agrees that there will be no- surface occupancy within
1,500 horizontal feet of Dam. This stipu-
lation is to ensure the integrity of the structure.
CERTIFI,
be a true an d ve copy
of the official record$ on file
AU 2 9
BUREAU aF
L.A DANA
000427
X
000428 2
5. Lessee agrees that there will be no- surface occupancy within
500 horizontal feet of the maximum water surface elevation of
FontPne11P Reservoir (maximum water surface elevation
is 6513 feet above mean sea level). This stipulation
is to minimize the possibility of pollution and interference
with operations and maintenance of the Reservoir.
6. Lessee agrees that there will be no- surface occupancy within
200 horizontal feet of the centerline of any constructed or
proposed Bureau of Reclamation tunnel, canal, aqueduct, pipeline,
lateral, drain, transmission lines, telephone lines, and roadways,
under the administration or jurisdiction of the Bureau of
Reclamation.
,r:
Signature of Lessee
Al
BUREAU
CO
v
CERTlF
to be a true an caipparat(Vq� Copy
of the affialn/ rp cdrug tl!t 1116