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HomeMy WebLinkAbout961199Boa;.:' January 6, 1966 STATE OF WYOMING APPLICATION TO LEASE AND LEASE FOR OIL AND GAS To THE COMMISSIONER OF PUBLIC LANDS, State of Wyoming, Cheyenne, Wyoming MARY ELLEN WINN ELLEN WINN 1234 South Wutcott Casper, Wyoming 82601 Li ncoln 1 COMMON SCHOOL (County) (Fund) T 2 1' v N., R.____11 W., 6th P.M. Enter here the 1st 2nd 3rd Parcel Number(s) applied for. Sec. 16 All Seca 36 Ni aal Area Acres Examined' 2. Land requested (Name of Applicant) (Number and Street) (City and State) 4th 5th 104 105 69 -71 CD -01 Signed on OCT 1g67 LESSOR: embraced in the Whisker Buttes Unit ;reement No „O- 3419 EFFECTIVE DATE OF LEASE a c t ®b t ht9 1 alive and R Comparan� copy of the Original Record on file in the Wyoming Office of State Lands Investments. Asst. Director, Office of Investments 8 -61 CD -01 8 -48 CD -02 49 -78 CD -02 Total Area_______ _Acres $25,000.00 ,000.00 (.iorp,Sur.et 3ond, I_ dated Au ..23, 1960 62 -68 CD -01 hereby offers to lease for the purpose of prospecting for, developing, producing and marketing oil, gas, and other kindred hydrocarbons all or any of the lands described in item 2 that are available for lease, in accordance with the Laws of the State of Wyoming, and the rules and regulations governing the issuance of Oil and Gas leases made and established by the State Board of Land Commissioners and now in force, subject to the lease terms appearing upon the reverse of this offer to lease. 3. Land included in lease (Not to be filled in by Offeror) (County) T._______ ____N., R W 6th P.M. This lease' embraces the area and the )a, J c s. in item 2. I lz; r 'nta l retained is the rental amount shown in item 4. 000483 67- 8942 NED (Fund) 4. Amount. remitted: Filing Fee Advanced Rental (To be computed at 50¢ per acre or fraction thereof) 480 00 Total 4 0 72 -76 CD -011 18•°O rah 19-99 5. Undersigned certifies as follows: (a) Each individual who is to acquire an interest in said lease by virtue of this offer is a citizen, or has declared an inten- tion to become a citizen, of the United States, is the head of family or over 21 years of age. Each corporation that is to acquire an interest: in said lease by virtue of this offer is presently duly qualified to transact business in Wyoming. The name and address of each such interested individual, including the partners or associates if an interest is to be acquired by a partnership or association, are as follows: The Name and address of each such corporation, of its service agent, and the State of its incorporation, are as follows: (b) No employee of the State Land Office is to acquire an interest in said lease by virtue of this offer. If applicant is an individual, it is further certified that he is not an officer in any corporation, a member of any partnership or association, or a majority stockholder in a corporation, which has or will file an application on the lands herein sought to be ].eased. (c) None of the land described in item 2 above is described in or covered by any other pending offer filed by this applicant or in which this applicant has any right, claim, interest, or title. 6. Offeror agrees: (a) That Offeror's signature to this offer shall constitute Offeror's signature to and acceptance of this lease insofar as said .ase covers any land described in item 2 above open to lease application at the time this offer is filed, and shown in item 3 as included in this lease. (b) An acceptable application may be withdrawn at any time prior to issuance of lease but if withdrawn the rentals, and fees transmitted with said application will thereupon be forfeited to the State as penalty for failure to fulfill the obligations. (c) If the lease terms on the reverse of this offer do not express all of the terms and conditions of the lease form in effect on the date this offer is filed, the lessor shall amend the lease terms set out in this Offer to Lease and Lease by substituting therefor, and attaching to this Offer to Lease and Lease, the lease terms and conditions in effect on the date this offer is filed, and Offeror agrees to be bound by said substituted lease terms and conditions. 7. It is hereby certified that the statements made herein are complete and correct to the best of Offeror's knowledge and belief and are made in good faith. Any willful misrepresentation or concealment by Offeror of a material fact in this offer shall render this lease subject to cancellation. IN WITNESS WHEREOF, Offeror has duly executed this instrument this 1 5th day of September 19 6 7 (Lessee Signature) (Lessee Signature) This lease for the lands described in item 3 above is hereby issued, subject to the provisions of the above offer, and on the reverse side hereof. IN WITNESS WHEREOF, the said lessor has caused these presents to be signed by the Commissioner of Public Lands, Secretary of the Board of Land Commissioners, and the seal of the Board to be affixed. STATE OF WYOMING, acting by and through its Board of Land Commissioners. Ik Commissioner of Public Lands Secretary (Chapter 12 Session Laws of Wyoming, 1965) RECEIVED 9/28/2011 at 4:05 PM RECEIVING 961199 BOOK: 773 PAGE: 483 JEANNE W. SECTION 1. RIGHTS OF LESSEE. The lessee is grt nted the exclusive right and privilege to drill for, extract, remove, and dispose of all the olJ and gas in the lands leased together with the right to construct and maintain thereupon all works, buildings, plants, waterways, roads, communication line s, pipe lines, reservoirs, tanks, pumping sta- tions, or other structures necessary to the full en- joyment thereof, for a period of ten (10) years and so long thereafter as oil or gas may be produced in paying quantities. SECTION 2. THE LESSEE AGREES: (a) BOND. To furnish a bond with an approved corporate surety company authorized to transact business in the State of. Wyoming, or such other surety as may be acceptable to the lessor, in the penal sum as required by the current rules of the State Board of Land Commissioners, conditioned upon the payment of all rentals and royalties accruing to the lessor under the terns hereof, and upon the full compliance of all other terms and conditions of this lease and the Rules and Regulations relating thereto, and also conditioned on the payment of all damages to the surface and improvements thereon where the lease covers lands, the surface of which has been sold or otherwise leased. Such bond or bonds furnished prior to the development of the lands contained in this lease may be increased in such reasonable amounts as the lessor may decide upon commencement of drill- ing operations, and after the discovery of oil or gas. (b) PAYMENTS. To make all payments accruing hereunder to the Ce nmissioner of Public Lands, Capitol Building, Cheyenne, Wyoming. (c) RENTALS. Prior to the discovery of oil or gas in paying quantities to pay the lessor in ad- vance, beginning with the effective date hereof, an annual rental of 500 per acre or fraction thereof. The failure to pay rental on or before the anni- versary date shall automatically terminate the lease by operation of law. If the time for payment falls on a day in which the State Land Office is closed, payment shall be deemed timely if made on next official working day. After the discovery of oil or gas in paying quan- tities to pay the lessor in advance, beginning with the first day of the lease year succeeding the lease year in which actual discovery was made, an annual rental of One Dollar ($1.00) per acre or frac- tion thereof, unless changed by agreement. Such rental so paid for any one year shall be credited on the royalty for that year. Lessor shall have no obligation hereunder to give lessee advance notice of any rental payment. (d) ROYALTIES. The royalties to be paid by lessee are: (i) on oil, one- eighth of that produced, saved, and sold from said land, the same to be de- livered at the wells or to the credit of lessor into the pipe line to which the wells may he connected; (ii) on gas, including casinghead gas or other hy- drocarbon substance, produced from said land saved and sold or used off the premises or in the manu- facture of gasoline or other products therefrom, the market value at the well of one eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one eighth of the amount realized from such sale. Should any well drilled upon lands covered by this lease obtain production of oil, gas, or other hydrocarbons, and if the lessee is unable to estab- lish a .satisfactory market for the oil, gas, or hydro- carbons produced from said well, the lessee may apply for and the lessor may grant permission for the suspension of production operations until such time as a satisfactory market for the product from said well can be developed. During the time any such suspension of operations is in effect the lessee shall continue to pay the annual rental of One Dol- lar ($1.00) per acre or fraction thereof provided by (c) above, and this lease shall remain in effect as though oil or gas was being produced from said lands. ON OTIIER KINDRED HYDROCARBONS AND SUBSTANCES: On all other hydrocarbons of value and gaseous substances and elements produced or extracted, including propane, butane, sulphur, ni- trogen, carbon dioxide, and helium, at such royalty as shall be mutually determined to be fair and rea- sonable. For royalty purposes on gas and natural gasoline the value shall be as approved by the lessor, and in the determination of the value of natural gaso- line the fair cost of extraction shall be considered as a deductible item; provided, however, that the allowance for the cost of extraction may exceed two thirds of the amount or value only on ap- proval of the lessor and in no event shall the price for gas, or natural gasoline, be less than that received by the United States of Ainerica for its royalties from the same field. In cases where natural gas is produced and the natural -gas gasoline extracted therefrom only one royalty shall be paid, except in the event the residue or dry gas shall be marketed it shall then constitute a separate commodity and a royalty shall be paid thereon as above provided. Natural gas and oil actually used for operating purposes upon the land and, except as to the ul- timate sale thereof, gas or liquid hydrocarbons re- turned to the sand for stimulating the production of oil or secondary recovery purposes shall be royalty free. (e) DISPOSITION OF ROYALTY OIL. To de- liver to the lessor, or to such individual, firm or corporation as the lessor may designate, all royalty oil and gas free of charge on the premises where produced; or, at the option of the lessor, and in lieu of said royalties in kind, the lessee agrees to pay the lessor the field market price or value of all royalty oil produced and saved. When the lessor elects to take its royalty oil in kind such oil shall be good merchantable oil and the lessee shall if necessary furnish storage therefor free of charge for thirty (30) days alter the end of the calendar month in which the oil is produced, upon the -leased premises, or at such place as the lessor and the lessee may mutually agree upon, pro- vided, that the lessee shall not be held liable for loss or destruction of 'royalty oil so stored from causes beyond his control. The free storage of oil, as herein provided, shall apply only as long as the said oil is the property of the lessor. (f) MEASUREMENTS OF PRODUCTION. To gauge, measure and correct for temperature all pro- duction from said lands in conformance with the Rules and Regulations adopted by the Board of Land Commissioners and report said production to the lessor in accordance therewith. To keep books, records and reports pertaining to LEASE TEEMS the production from the land herein leased as well as those pertaining to the production from offset wells operated by the lessee, his operator or sub- lessee, on other lands, which shall be opened at all times for the inspection of any duly authorized agent of the lessor. To furnish the lessor with original pipe line re- ports showing the day, month, year, amount, grav- ities and temperatures of all oil run and with monthly reports showing the month, year, amount and price of all. gas and natural -gas gasoline and other products produced and sold from the land herein leased, and the amount of gas returned to the sand. (g) MONTHLY PAYMENTS AND STATEMENTS. Unless the time of payment is otherwise extended by the Commissioner of Public Lands, to make pay- ment on or before the twentieth (20th) day of the calendar month succeeding the month of produc- tion and removal and sale of oil and gas from said land, and to furnish sworn monthly statements therewith showing in detail the quantity and qual- ity of the production (per well if required where practical) from the land hereby leased, and the quantity and quality of the production (per well where practical) from offset wells upon cornering or contiguous lands operated by the lessee, his op- erator or sub lessee and such other information as may be called for in the form of report prescribed by the lessor. (h) WELLS TO BE DRILLED. To drill and op- erate effectively all wells necessary to reasonably offset wells upon and production from adjoining lands. To drill such additional wells at such times or places as are necessary and essential to the proper development and commercial production of the oil and gas content of said land. (i) LOG OF WELLS AND REPORTS. To keep a log, in the form approved by the lessor, of each well drilled by the lessee on the lands herein leased, showing the strata and character of tire formations, water sands and mineral deposits penetrated by the drill, amount of casing, size and where set, and such other information as the lessor may require, which log or copy thereof shall be furnished to the lessor. To file progress reports, in the form prescribed by the lessor, at the end of each thirty (30) day period while each well is being drilled. To file annually, or at such times as the lessor may require, maps showing the development of the structure and the location of all wells, pipe lines and other works used in connection with the opera- tions of the lessee upon said land. To make such other reports pertaining to the pro- duction and operations by the lessee on said land, and report such other information as may be pos- sessed by the Lessee on the wells, production or operations of others on lands on the same geologic structure that may be of importance in effecting proper development and operation of the lands herein leased, as may be called for by the lessor. All logs, maps and reports shall be submitted in duplicate and the Commissioner may waive such reports as conditions may warrant. (1) PRODUCTION. To operate the wells upon the land herein leased in a competent and efficient manner in an endeavor to recover all the oil and gas economically possible from said land and to prevent the undue drainage of the oil and gas there- under by wells operated by the lessee or others on cornering or contiguous lands to those leased herein. All plans or methods for the purpose of stimulating or increasing production on lands herein leased other than those in common use shall first be pre- sented to the lessor for approval before being put into actual operation. No production agreements limiting, restricting, prorating, or otherwise affecting the natural pro- duction from said land shall be entered into by the lessee, nor shall the lessee limit, restrict or prorate the natural production from said land in any way or in any event, except with the consent in writing of the lessor first had and obtained. (k) DILIGENCE— PREVENTION OF WASTE. To exercise reasonable diligence in drilling, producing, and operating of wells on the land covered hereby, unless consent to suspend operations temporarily is granted by the lessor; to carry on all o perations hereunder in a good and workmanlike manner in accordance with approved methods and practice, having due regard for the prevention of waste of oil and gas, or the entrance of water to the oil or gas bearing sands or strata to the destruction or injury of such deposits, the preservation and con- servation of the property for future productive operations, and to the health and safety of workmen and employees;. to plug securely in an approved manner any well before abandoning it, and not to abandon any well without permission of the lessor; not to drill any well within two hundred (200) feet of any of the outer boundaries of the land covered hereby, unless to protect against drainage by wells drilled on lands adjoining less than 200 feet from the property lines thereof; to conduct all operations subject to the inspection of the lessor; to carry out at the lessee's expense all reasonable orders arid re- quirements of the lessor relative to the prevention of waste and preservation of the property and the health and safety of workmen and on failure of the lessee so to do the lessor shall have the right, together with other recourse herein provided, to enter on the property to repair damage or prevent waste at the lessee's expense; to abide by and con- form to valid applicable regulations prescribed; to reimburse the owner of the surface, if other than the lessor, or lessee of grazing rights thereof for actual damages thereto and injury to improvements thereon; provided, that the lessee shall not be held responsible for acts of providence or actions beyond his control. (1) TAXES AND WAGES— FREEDOM OF PUR- CHASE. To pay, when due, all taxes lawfully as- sessed and levied under the laws of the State of Wyoming upon improvements, oil and gas produced from the land hereunder, or other rights, property or assets of the lessee; to accord all workmen and employees complete freedom of purchase, and to pay all wages due workmen and employees in con- formance with the laws of tire State of Wyoming. (m) STATUTORY REQUIREMENTS AND REG- ULATIONS. To comply with all valid State statu- tory requirements and valid regulations thereunder and the Wyoming Blue Sky Law. (n) ASSIGNMENTS OF LEASE—PRODUCTION AGREEMENTS. Not to assign this lease or any interest therein, nor sublet any portion of the leased premises, except with the consent in writing of the lessor first had and obtained. All overriding royalties to be valid must have the approval of the Board and be recorded with the 0I- )4 lease. The Board reserves the right of disapproval of such overriding royalties when in its opinion they become excessive anti hence are detrimental to the proper development of the leased lands. (0) DELIVER PREMISES IN CASE OF FOR- FEITURE. To deliver up the leased premises, with all permanent improvements thereon, in good order and condition in case of forfeiture of this lease, but this shall not be construed to 'prevent the removal, alteration or renewal of equipment and improve- ments in the ordinary course of operations. (p) REGULATIONS. To conduct all °per under this lease in accordance with the valid and Regulations governing the production oi 'oil and gas which may now or hereafter be approved by the lessor. SECTION 3. THE LESSOR EXPRESSLY RE- SERVES: (a) The right to lease, sell or otherwise dispose of the surface of the land embraced within this lease under existing laws or laws hereafter enacted, and in accordance with the Rules of the Board of Land Commissioners insofar as the surface is not neces- sary for the use of the lessee in the conduct of operations hereunder. (b) From the operation of this lease the surface lands heretofore granted for Rights of Way and Easements and reserves the right to grant such other Rights of Way and Easements as provided by the statutes of the State of Wyoming, as long as such Rights of Way and Easements do not conflict with the operations for oil and gas on the land herein leased. (c) 'The right, with consent of the lessee, to com- mit the herein leased lands in a unit or co- opera- tive plan of development, and to establish, alter, change, or revoke the drilling, producing, and royalty requirements of the lease to conform there- with. (d) The right to alter or modify the quantity and rate of production to the end that waste may 'be eliminated or that production may conform to /the lessee's fair share of allowable production insider any system of State or National curtailment and proration authorized by law. SECTION 4. APPRAISAL OF IMPROVEMENTS. The lessee shall have the right, subject t( provisions of Title 36, Section 76 (as to .Sts' State School lands), and Title 11, Section (as to Farm Loan Board lands), Wyoming Sta ?+raee. 1957, to remove any improvements owned by lessee within a reasonable time after the termination of this lease. Lessee agrees that any such improve- ments not removed within a reasonable time after termination of this lease shall be disposed of pur- suant to the above statutes. SECTION 5. FORFEITURE CLAUSE. The Board shall have the power and authority to cancel leases procured by fraud, deceit or misrepresentation, or for the use of the lands for unlawful or illegal purposes, or for 'the violation of the covenants of the lease, upon proper proof thereof. In the event that the Iessee shall default in the performance or observance of any of the terms, covenants and stipulations hereof, or of the general regulations promulgated by the Board of Land Commissioners and in force on the date hereof, the lessor shall serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee, and if such failure or default con- tinues for a period of thirty (30) days after the service of such notice, then and in that event the lessor may, at its option, declare a forfeiture and cancel this lease, whereupon all rights and privi- leges obtained by the lessee hereunder shall term- inate and cease and the lessor may re -enter and take possession of said premises or any part thereof, but these provisions shall not be construed to prevent the exercise by lessor of any legal or equitable remedy which the lessor might otherwise have. A waiver of any particular cause or forfeit- ure shall not prevent the cancellation and forfeiture of this lease for any other cause of forfeiture, or for the same cause occurring at any other time. SECTION 6. RELINQUISHMENT AND Si1R- RENDER. This lease may be relinquished a rendered to lessor as to all or any legal sub! of said lands as follows: (a) If no operations have been conducted under the lease on the land to be relinquished, the lessee shall file with the Commissioner of Public Lands a written relinquishment or surrender, duly signed and acknowledged and stating therein that no operations have been conducted on the land. The relinquishment so filed shall become effective on the date and hour of receipt thereof in the Office of the Commissioner or at some later date if such be so specified by the lessee therein. If the said relinquishment falls to state that no operations have been conducted the effective date of re. linquishment shall be the date the relinquishment is approved by the Board. (b) If operations have been conducted under the lease on land proposed to be relinquished the lessee shall give sixty (60) days notice and shall file with the Commissioner a written relinquishment or sur- render duly acknowledged and stating therein that operations have been conducted on the land. The relinquishment shall not become effective until the land and the wells thereon shall have been placed in condition acceptable to lessor and shall have been approved by the State Oil and Gas Supervisor. All rentals becoming due prior to a surrender or relinquishment becoming effective shall be pay- able by lessee unless payment thereof shall he waived by lessor. A relinquishment having become effective there shall be no recourse by lessee, and the lease as to the relinquished lands may not be reinstated. SECTION 7. HEIRS AND SUCCESSORS IN IN- TEREST. It is further covenanted and agreed that each obligation hereunder shall extend to and be binding upon, and every benefit thereof shall inure to the heirs. executors, administrators, successors of, or assigns of the respective parties er' SECTION 8. If the lessor owns an in) ees. and gas in said land less than the entire fee siinple estate, then the royalties and rentals to be paid lessor shall be reduced proportionately. SECTION 9. This lease is issued by virtue of and under the authority conferred by Title 36, Wyo- ming Statutes 1957, as to the State and Schpof Lands, and Title 11, Wyoming Statutes 1957, as to Farm Loan Lands, and rules and regulations governing the issuance of Oil. and Gas leases pur- suant thereto.