HomeMy WebLinkAbout961187Forst 3100 -1Ih
(.August 1988)
ITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
OFFER TO LEASE AND LEASE FOR OIL AND GAS
The undersigned (reverse) offers to lease all or any of the lands in Item 2 that are available for lease pursuant to the Mineral Leasing Act of 1920, as amended and supplemented (30 U.S.C. 181
et seq.), the Mineral Leasing Act for Acquired Lands of 1947. as amended (30 U.S.0 351 -359). the Attorney General's Opinion of April 2, 1941 (40 Op. Atty. Gen. 4)). or the
I Name
Street
LCM Ltd
Box 596
Ctt,. State. Zip Code Denver, CO 80201
READ INSTRUCTIONS BEFORE COMPLETING
2 This application /offer /lease is for: (Check only One X PUBLIC DOMAIN LANDS 0 ACQUIRED LANDS (percent U.S. interest
Surface managing agency if other than BLM: Unit /Project
Legal description of land requested: 'Parcel No 'Sale Date (m /d /y):
'SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE.
T R. Meridian State County
Amount remitted: Filing fee Rental fee 5
3 Land included in lease:
T 0200N R. 11201 06th Meridian
sec. 004 SE;
006 LOTS 1 -7;
RECEIVED 9/28/2011 at 3:24 PM
RECEIVING 961187
BOOK: 773 PAGE: 431
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
ICnruiruued nn revery.[
DO NOT WRITE BELOW THIS LINE
Serial No. 0 00431
WYW 125506
Total acres applied for
Total
CERTIFIED
WY State Lincoln County to be a true and cbriTarative. copy
of the official ,records on file.
A. 2 9 2011
BUREAU OF LA MANA
Total acres in lease 356.810
Rental retained 535.5C)
This lease is issued granting the exclusive right to drill for, mine, extract, remove and dispose of all the oil and gas (except helium) in the lands described in Item 3 together with the right to build
and maintain necessary improvements thereupon for the term indicated below, subject to renewal or extension in accordance with the appropriate leasing authority. Rights granted are subject to
applicable laws. the terms, conditions, and attached stipulations of this lease, the Secretary of the Interior's regulations and formal orders in effect as of lease issuance, and to regulations and formal
orders hereafter promulgated when not inconsistent with lease rights granted or specific provisions of this lease.
NOTE: This lease is issued to the high bidder pursuant to his /her duly executed bid or nomination form submitted under 43 CFR 3120 and is subject to the provisions of that bid or
nomination and those specified on this form.
Type and primary term of lease: TH�E,.U NITED'STATES OFAMERICA
Noncompetitive lease (ten years) ly j£ d
%rr (Signing (*feet)
f.X Competitive lease ((Inc years) SUpe r 9 anry Land Law F xamfiner 1
(Title) 1�' 35
Other (Date)
Li her EFFECTIVE DATE OF LEASE (4r .I 1
ti., miming an uncles. in we oiler are to compliance with 44 ChR 3100 and the leasing authorities; (3) offeror's chargeable interests, direct and indirect
in either public domai •"d lands do not exceed 246.280 acres in Federal oil and "n the same State, of which not more than 200,000 acres per option, or 300,000
acres m leases and 20C i options in either leasing District in Alaska: (4) offeror n ered a minor under the laws of the State in which the land., o this offer are Imated;
(5) offerer is in compliance with qualifications concerning Federal coal lease holdings provided in sec. 2(a)(2)(A) of the Mineral Leasing Act: (6) offeror is in compliance with r lar ation requirements
for all Federal oil and gas lease holdings as required by sec. 17(g) of the Mineral Leasing Act; and (7) offeror is not in violation of sec. 41 of the Act.
('o) Undersigned agrees that signature to this offer constitutes acceptance of this lease. including all terms, conditions, and stipulations of which offeror has been given notice, and any amendment
or separate lease that may include any land described in this offer open to leasing at the time this offer was filed but omined for any reason from this lease. The offeror further agrees that this
offer cannot be withdrawn, either in whole or in part. unless the withdrawal is received by the proper SLM State Office before this lease. an amendment to this lease, or a separate lease, whichever
covers the land described in the withdrawal, has been signed on behalf of the United States
This offer will be rejected and will afford offeror no priority if it is not properly completed and executed in accordance with the regulations, or if it is not acccussupanled by the essissired
payments. 18 U.S.C. Sec. 1001 makes It a crime for any person knowingly and willfully to make to any Department or agency of the United States any false, &[sedans or f audulent ierailtarta
Of representations as to any matter within its jurisdiction.
Duly executed this day of 19
Sec. 1 Rentals—Rentals shall be paid to proper office of lessor in advance of each lease year
Annual rental rates per acre or fraction thereof are:
(a) Noncompetitive lean•, 51.50 for the first 5 years: thereafter S2.00:
(b1 Competitive lease, 51.50: for primary term: thereafter 52.00:
(c) Other, see attachment, or
as specified in regulations at the time this lease is issued.
If this (case or a portion thereof is committed to an approves cooperative or unit plan which
includes a well capable of producing leased resources. and the plan contains a provision for
ai)otation of production, royalties shall be paid on the production allocated to this lease. However.
annual rentals shall continue to be due at the rate specified in (a), (b), or (c) for those lands
not within a participating area.
Failure to pay annual rental, if due, on or before the anniversary date of this lease (or next
official working day if office is closed) shall automatically terminate this lease by operation of
law. Rentals may be waived. reduced. or suspended by the Secretary upon a sufficient showing
by lessee.
Sec, 2. Royalties— Royalties shall be paid to proper office of lessor. Royalties shall be computed
in accordance with regulations on production removed or sold. Royalty rates are:
(a) Noncompetitive lease, 121/2%;
(b) Competitive lease, 121/2%.
(c) Other, see attachment; or
as specified in regulations at the time this lease is issued.
Lessor reserves the right to specify whether royalty is to be paid in value or in kind, and the
right to establish reasonable minimum values on products after giving lessee notice and an
opportunity 10 be heard. When paid in value, royalties shall be due and payable on the last day
of the month following the month in which production occurred. When paid in kind, production
shall be delivered, unless otherwise agreed to by lessor, in merchantable condition on the premises
where produced without cost to lessor. Lessee shall not be required to hold such production
in storage beyond the last day of the month following the month in which production occurred.
nor shall lessee be held liable for loss or destruction of royalty oil or other products in storage
from causes beyond the reasonable control of lessee.
Minimum royalty in lieu of rental of not Tess than the rental which otherwise would be required
for that lease year shall be payable at the end of each lease year beginning on or after a discovery
in paying quantities. This minimum royalty may be waived. suspended, or reduced, and the
above royalty rates may be reduced, for all or portions of this lease if the Secretary determines
that such action is necessary to encourage the greatest ultimate recovery of the leased resources,
or is otherwise justified.
An interest charge shall be assessed on late royalty payments or underpayments in accordance
with the Federal Oil and Gas Royalty Management Act bf 1982 (FOGRMA) (30 U.S.C. 1701)
;hall be liable for royalty payments on oil and gas lost or wasted from a lease site when
loss or waste is due to negligence on the part of the operator. or due to the failure to comply
env ruic. regulation, order. or citation issued under FOGRMA or the leasing authority.
Sec. 3. Bonds -A bond shall be filed and maintained for lease operations as required under
regulations.
Sec. 4. Diligence. rate of development, unitization, and drainage Lessee shall exercise reasonable
diligence in developing and producing, and shall prevent unnecessary damage to. loss of. or
waste of leased resources. Lessor reserves right to specify rates of development and production
in the public interest and to require lessee to subscribe to a cooperative or unit plan, within 30
days of notice, if deemed necessary for proper development and operation of area, field, or pool
embracing these leased lands. Lessee shall drill and produce wells necessary to protect leased
lands from drainage or pay compensatory royalty for drainage in amount determined by lessor
Sec. 5. Documents, evidence, and inspection Lessee shall file with proper office of lessor.
not later than 30 days after effective date thereof. any contract or evidence of other arrangement
for sale or disposal of production. At such times and in such forrn as lessor may prescribe, lessee
shall furnish detailed statements showing amounts and quality of all products removed and sold.
proco is therefrom. and amount used for production purposes or unavoidably lost. Lessee may
be required to provide plats and schematic diagrams showing development work and
improvements, and reports with respect to parties in interest. expenditures, and depreciation
costs. In the form prescribed by lessor, lessee shall keep a daily drilling record. a log, information
on well surveys and tests. and a record of subsurface investigations and furnish copies to lessor
when required. Lessee shall keep open at all reasonable times for inspection by any authorized
officer of lessor. the leased premises and all wells. improvements, machinery, and fixtures thereon,
and all books, accounts, maps, and records relative to operations, surveys, or investigations
on or in the leased lands. Lessee shall maintain copies of all contracts, sales agreements, accounting
records. and documentation such as killings. invoices. or similar documentation that supports
LEASE TERMS
000432
(Signature of Lessee or Attorney -in -fact)
costs claimed as manufa.cturing, preparation, and /or transportation costs. All such records shzil
be maintained in lessee's accounting offices for future audit by lessor. Lessee shall maintain
required records for 6 years after they are generated or. if an audit or investigation is underway,
until released of the obligation to maintain such records by lessor.
During existence of this lease, information obtained under this section shall be closed to
inspection by the public in accordance with the Freedom of Information Act (5 U.S.C. 552).
Sec. 6. Conduct of operations lessee shall conduct operations in a manner that minimizea adverse
impacts to the land, air. and water, to cultural, biological, visual, and other resources, and to
other land uses or users. Lessee shall take reasonable measures deemed necessary by lessor to
accomplish the intent of this section. To the extent consistent with lease rights granted, such
measures may include, but are not limited to, modification to siting or design of facilities, timing
of operations, and specification of interim and final reclamation measures. Lessor resen••es the
right to continue existing uses and to authorize future uses upon or in the leased lands including
the approval of easements or rights-of-way. Such uses shall be conditioned so as to prevent
unnecessary or unreasonable interference with rights of lessee.
Prior to disturbing the surface of the leased lands, lessee shall contact lessor to be apprised
of procedures to be followed and modifications or reclamation measures that may be necessary.
Areas to be disturbed may require inventories or special studies to determine the extent of impacts
to other resources. Lessee may be required to complete minor inventories or short term special
studies under guidelines provided by lessor. If in the conduct of operations, threatertehl or
endangered species, objects of historic or scientific interest, or substantial unanticipated
environmental effects a-e observed, lessee shall immediately contact lessor. Lessee shall cease
any operations that would result in the destruction of such species or objects.
Sec. 7. Mining operations —To the extent that impacts from mining operations would be
substantially different or greater than those associated with normal drilling operations, lessor
reserves the right to deny approval of such operations.
Sec. 8. Extraction of helium— Lessor reserves the option of extracting or having extracted helium
from gas production in a manner specified and by means provided by lessor at no expense or
loss to lessee or owner of the gas. Lessee shall include in any contract of sale of gas the provisions
of this section.
Sec. 9. Damages to property— Lessee shall pay lessor for damage to lessor's improvements,
and shall save and hold lessor harmless from all claims for damage or harm to persons or property
as a result of lease operations.
Sec. 10. Protection of diverse interests and equal opportunity— Lessee shall: pay when due all
taxes legally assessed and levied under laws of the State or the United States; accord all ensployecs
complete freedom of purchase: pay all wages at least twice each month in lawful money of the
United States; maintain a safe working environment in accordance with standard industry practices;
and take measures necessary to protect the health and safety of the public.
Lessor reserves the right to ensure that production is sold at reasonable prices and to prevent
monopoly. If lessee operates a pipeline, or owns controlling interest in a pipeline or a company
operating a pipeline. which may be operated accessible to oil derived from these I vis_a'd lands,
lessee shall comply with section 28 of the Mineral Leasing Act of 1920.
Lessee shall comply with Executive Order No. 11246 of September 24, 1965, as amends,„
and regulations and relevant orders of the Secretary of Labor issued pursuant thereto. Neither
lessee nor lessee's subcontractors shall maintain segregated facilities.
Sec. 11. Transfer of lease interests and relinquishment of lease —As required by regulations,
lessee shall file with lessor any assignment or other transfer of an interest in this lease. Lessee
may relinquish this lease or any legal subdivision by filing in the proper office a written
relinquishment, which shall be effective as of the date of filing, subject to the continued obligation
of the lessee and surety to pay all accrued rentals and royalties.
Sec. 12. Delivery of premises —At such time as all or portions of this lease are returned to lessor,
lessee shall place affected wells in condition for suspension or abandonment, reclaim the land
as specified by lessor and. within a reasonable period of time, remove equipment and
improvements not deemed necessary by lessor for preservation of producible wells.
Sec. 13. Proceedings in case of default —If lessee fails to comply with any provisions of this
lease, and the noncompliance continues for 30 days after written notice thereof, this lease shall
be subject to cancellation unless or until the leasehold contains a well capable of production
of oil or gas in paying quantities. or the lease is committed to an approved cooperative or unit
plan or communitization agreement which contains a well capable of production of unitized
substances in paying gt.antities. This provision shall not be construed to prevent the exercise
by lessor of any other legal and equitable remedy, including waiver of the default. Any such
remedy or waiver shall not prevent later cancellation for the same default occurring at any other
time. Lessee shall be subject to applicable provisions and penalties of FOGRMA (30 U.S.C. 1701).
Sec. 14. Heirs and successors -in- interest —Each obligation of this lease shall extend to and be
binding upon. and every benefit hereof shall inure to the heirs. executors. administrators,
successors. beneficiaries, or assignees of the respective parties hereto.
NOTICE TO LESSEE
ll.
000433
Provisions of the Mineral Leasing Act (MLA) of 1920, as amended by the Federal
Coal Leasing Amendments Act of 1976, affect an entity's qualifications to
obtain an oil and gas lease. Section 2(a)(2)(A) of the MLA, 30 U.S.C. 201
(a)(2)(A), requires that any entity that holds and has held a Federal coal
lease for 10 years beginning on or after August 4, 1976, and who is not
producing coal_ in commercial quantities from each such lease, cannot qualify
for the issuance of any other lease granted under the MLA. Compliance by coal
lessees with Section 2(a)(2)(A) is explained in 43 CFR 3472.
In accordance with the terms of this oil and gas lease, with respect to
compliance by the initial lessee with qualifications concerning Federal coal
lease holdings, all assignees and transferees are hereby notified that this
oil and gas lease is subject to cancellation if: (1) the initial lessee as
assignor or as transferor has falsely certified compliance with Section
2(a)(2)(A), or (2) because of a denial or disapproval by a State Office of a
pending coal action, i.e., arms-length assignment, relinquishment, or logical
mining unit, the initial lessee as assignor or as transferor is no longer in
compliance with Section 2(a)(2)(A). The assignee, sublessee or transferee
does not qualify as a bona fide purchaser and, thus, has no rights to bona
fide purchaser protection in the event of cancellation of this lease due to
noncompliance with Section 2(a)(2)(A).
Information regarding assignor, sublessor or transferor compliance with
Section 2(a)(2)(A) is contained in the lease case file as well as in other
Bureau of Land Management records available through the State Office issuing
this lease.
Q RTIFJW
to berg) Prue and compara lve;copy
of the official records on file
AUG 2 9 2011
BUREAU OF LAND MANAGEMENT
1. SURFACE DISTURBANCE STIPULATION (used on all leases)
GUIDANCE:
a. Slopes in excess of 25 percent.
b. Within important scenic areas (Class I and II Visual Resource
Management areas).
c. Within 500 feet of surface water and /or riparian areas.
d. Within a quarter mile or visual horizon (whichever is closer) of
significant sites along historic trails.
V 25506
000434
Surface disturbance will be prohibited in any of the following areas or
conditions. Modifications to this limitation may be approved in writing
by the Authorized Officer.
e. Construction with frozen material or during periods when the soil
material is saturated or when watershed damage is likely to occur.
The SURFACE DISTURBANCE STIPULATION will be included on all BLM
authorizations. The intent of this stipulation is to inform interested
parties (potential lessees, permittees, operators) that, when one or more of
the five (a through e) environmental conditions exist, surface disturbing
activities will be prohibited unless or until the permittee or his designated
representative and the surface management agency (SMA) arrive at an acceptable
plan for mitigation of anticipated impacts. This negotiation will occur prior
to development and become a condition for approval when authorizing the action.
Specific threshold criteria (e.g., 500 feet from water) have been established
based upon the best information available. However, geographical areas and
time periods of concern must be delineated at the field level (i.e., "surface
water and /or riparian areas" may include both intermittent and ephemeral water
sources or may be limited to perennial surface water). "Significant sites
along historic trails," refer to those trail segments and sites which have
been enrolled in or are eligible for enrollment in the National Register of
Historic Places. These decisions, where possible, should be documented in the
land use planning documents.
Modification or waiver of this stipulation must allow for additional
requirements to be applied on a site specific basis, if necessary to mitigate
the impacts of concern. Waiver of this stipulation must be based upon
demonstration, through environmental analysis, plans of development, plans of
operation, Application for Permit to Drill (APD) processing, etc., that the
adverse affects will be mitigated or avoided.
CERTIFIED
to be a true and comparative copy
of the official records on file
oGz ry 2011
BUR OfL ND MAN
2. WILDLIFE STIPULATION
GUIDANCE:
000435
a To protect important big game ungulate winter habitat, drilling and
other surface disturbing activity will not be allowed during the
period from November 15 to April 30 within certain areas
encompassed by this lease. This limitation does not apply to
maintenance and operation of producing wells. Modifications to
this limitation in any year may be approved in writing by the
Authorized Officer.
The WILDLIFE STIPULATION is intended to provide two basic types of
protection, seasonal restriction (a and b) and no surface occupancy (c). A
legal description will ultimately be required and should be measurable and
legally definable. There are no minimum subdivision requirements at this
time. The area delineated can and should be refined as necessary based upon
current biological data at the time the APD or Sundry Notice is processed.
It should eventually become a condition for approval in these permits.
The seasonal restriction section of the stipulation identifies three groups
of species and delineates two similar timeframe restrictions. These two
restrictions are big game ungulate and raptors /grouse. The big game
ungulates including elk, moose, deer, antelope, and big horn sheep all
require protection of crucial winter range between November 15 and April 30.
Sage and sharp- tailed grouse and raptors such as eagles, accipiters, falcons,
buteos, osprey, burrowing owls, also require nesting protection during
periods between February 1 and July 31.
The no surface occupancy section of the stipulation is intended for
protection of unique wildlife and wildlife habitat values (e.g., sage grouse
strutting grounds, known threatened and endangered species habitat, etc.)
which cannot be protected using seasonal restrictions.
CERTIFIED
to be a true and comparative copy
of the official records on file
J UG 2 2011
BU AU OF L. D MA AG NT
j U:5