HomeMy WebLinkAbout961200Form Approve.' by
Board Feb. 1, 1979
STATE OF WYOMING
APPLICATION TO LEASE AND LEASE FOR OIL AND GAS
To THE COMMISSIONER OF PUBLIC LANDS,
State of Wyoming, Cheyenne, Wyoming
1. WILLIE TUCKER JR.
(Name of Applicant)
c/o Wyoming Energy Corporation,
(Number and Street)
New York, NY 10022
663 Fifth Avenue
Ste.No. 621
80 0330
A; ;n.eci
00.0485 1
City and State)
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.
2. Land requested
LINCOLN COMMON SCHOOL
'County)
T 25 N R 112 W., 6th P.M.
Enter here the
Parcel Number
applied for if
on Simultaneous
Filing List.
244
Sec. 36 All
Total Area 615.68 Acres
4. Amount remitted: Filing Fee
.signed on JUL 2 1 1980
EFFECTIVE DATE OF LEASE July 2, 1980
NIT ACE-EA4BNT, By
UNIT. AGREEMENT CONTRACTED
EFF,_.1:- 11 -91
extension granted to 1 -1 -93.
(Fund)
Total Area. ._Acres
Advanced Rental (To be computed at $1.00 per acre or fraction thereof)
3. Land included in lease
(Not to be filled in by Offeror)
(County (Fund)
T. N., R. -W., 6th P.M.
This lease ernbraaea the area and
the land cleacribed in item. 2.
Lessee 4,/ 7
WILLIE TUCKER JR.
15.00
616.00
Total 631,00
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 19 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 he acquired
by a partnership or association, are as follows:
The name and address of each such corporation, or its service agent, and the State of its incorporation. are as follows:
(L ss S Agnature)
.(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.
LESSOR: STATE OF WYOMING, acting by and through its
Board of Land Commissioners.
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(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 leased.
(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
lease 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 hest 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 l6 day of June 19 80
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Commissioner of Public Lands Secretary
(Chapter 120, Session Laws of Wyoming, 1965)
000486
certify that this is a True and Comparable
copy of the Original Record on file in the
Wyoming Office of State Lands Investments.
I lk %El,/ A i.,.
Asst. Director, Office of :te
Investments
SECTION 1. RIGHTS OF LESSEE. The lessee is granted
the exclusive right and privilege to drill for, mine, extract,
remove, and dispose of all the oil and gas in the lands leased
together with the right to construct and maintain thereupon
all works, buildings, plants, waterways, roads, communication
lines, pipe lines, reservoirs, tanks, pumping stations, or other
structures necessary to the full enjoyment 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 terms 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 drilling operations, and
after the discovery of oil or gas.
(b) PAYMENTS. To make all payments accruing hereunder
to the Commissioner of Public Lands, 2424 Pioneer Avenue,
Cheyenne, Wyoming 82002.
(c) RENTALS. Prior to the discovery of oil or gas in paying
quantities to pay the lessor in advance. beginning with the
effective date hereof, an annual rental of $1.00 per acre or
fraction thereof. The failure to pay rental on or before the
anniversary date shall automatically terminate the lease by
operation of law. If the time tor 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 quantities 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 Two Dollars ($2.00) per acre or
fraction 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 delivered at the wells or to the credit
of lessor into the pipe line to which the wells may be
connected; (ii) on gas, including casinghead gas or other
hydrocarbon substance, produced from said land saved and
sold or used oft the premises or in the manufacture 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 establish a satisfactory market for the oil,
gas, or hydrocarbons 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 Dollar ($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 OTHER KINDRED HYDROCARBONS AND
SUBSTANCES: On all other hydrocarbons of value and
gaseous substances and elements produced or extracted,
including propane, butane, sulphur, nitrogen, carbon dioxide,
and helium, at such royalty as shall be mutually determined to
be fair and reasonable.
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 gasoline 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 approval 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 America 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 paidlhereon as above provided.
Natural gas and oil actually used for operating purposes
upon the land and, except as to the ultimate sale thereof,
gas or liquid hydrocarbons returned to the sand for stimulating
the production of oil or secondary recovery purposes shall be
royalty free.
(e) DISPOSITION OF ROYALTY OIL AND GAS. To deliver
to the lessor, or to such individual, firm or corporation as the
lessor may designate, all royalty oil. gas, or other kindred
hydrocarbons, 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, gas, or other kindred hydro-
carbons produced and saved.
When the lessor elects to take its royalty oil, gas, or other
hydrocarbons in kind such oil, gas, or other kindred hydro-
carbons shall be good merchantable oil, gas, or other kindred
hydrocarbons. The lessee shall it necessary furnish storage
for royalty oil free of charge for thirty (30) days after the erid'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, provided, 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 ap'ply-F
only as long as the saidoills thi3'pfoperty of the tessdr.
(1) MEASUREMENTS O PRODU CTION To g auge ,fneasure
and correct for terriper'atuie'a'll'S Prom sdie'larids'i0
conformance with the Rules and Regulations adopted by the
Board of Land Commissi-pners and report said production,t,o
the lessor in accordanceiherewilh.
To keep books,. records_ and,. reports _pertaining to the
production trom the land,)i,e(,prn, tlieaygd a ,avell.,,ds_. those:
pertaining to the production from offset wells operated tK, the
lessee, his operator or sub lessee, on other lands, wh`icti
be opened at all times for the inspection of any duly
authorized agent of the lessor.
LEASE TERMS
To furnish the lessor with original pipe line reports showing
the day, month, year, amount, gravities 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 payment on or before the twentieth
(20th) day of the calendar month succeeding the month of
production and removal and sale of oil and gas from said
land, and to furnish sworn monthly statements therewith
showing in detail the quantity and quality 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 operator 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 operate
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
the 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 operations of the lessee upon said land.
To make such other reports pertaining to the production and
operations by the lessee on said land, and report such other
information as may be possessed 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.
(j) 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
thereunder 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 firs) be presented to the lessor for approval before
being put into actual operation.
No production agreements limiting, restricting, prorating, or
otherwise affecting the natural production 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
operations 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 wafer to the oil or gas bearing sands or strata to
the destruction or injury of such deposits. the preservation
and conservation 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 i1. 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 properly
lines thereof: to conduct all operations subject to the
inspection of the lessor; to carry out at the lessee's expense
all reasonable orders and requirements of the lessor relative
to the prevention of waste and preservation of the property
and the health and safety of workmen including the replanting
and reseeding of drilling sites and other areas disturbed by
drilling operations, and on failure of the lessee so to do the
iessor shall have the right, together with other recourse herein
provided, to enter on the properly to repair damage or prevent
waste at the lessee's expense; to abide by and conform 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 (hereto and injury to
improvements thereon; provided, that the lessee shall not be
held responsible for acts of providence or actions beyond his
control.
(I) TAXES AND WAGES FREEDOM OF PURCHASE. To
pay, when due, all taxes lawfully assessed and levied under
the laws of the Slate 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 conformance with the
laws-of the State of Wyoming.
(m) STATUTORY REQUIREMENTS AND REGULATIONS. To
comply with all valid State statutory requirements and valid
regulations thereunder and the Wyoming Blue Sky Law.
.(n).ASSIGNMENTS OF LEASE PRODUCTION AGREE
)1ENTS.Not to, assign this lease or any interest therein,
ridr Siub'ject arijy portion of the leased premises, except
with the consent in writing of the lessor firs) had and obtained.
All overriding royalties to be valid must have the approval
''of the Board and be recorded with the lease. The Board
reserves the right of disapproval of such overriding royalties
when in its opinion They become excessive and hence are
detrimental to the proper development of the leased lands.
(o) DELIVER PREMISES IN CASE OF FORFEITURE. To
deliver up the leased premises, with all permanent improve-
ments 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
improvements in the ordinary course of operations.
0uu48'7
(p) REGULATIONS. To conduct all operations under this
lease in accordance with the valid Rules and Regulations
governing the production of oil and gas which may now or
hereafter be approved by the lessor.
SECTION 3. THE LESSOR EXPRESSLY RESERVES:
(a) The right to lease, sell or otherwise dispose of the surf
of the land embraced within this lease under existing la)
laws hereafter enacted, and in accordance with the R.
of the Board of Land Commissioners insofar as the surface is
not necessary 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 leased lands will not be committed to a unit plan of
development if the Board finds such action would impair the
lessor's reserved right to take its royalty gas in kind and to
purchase all other gas allocated to the leased lands as
provided in Section 3 (e), below.
(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 under any system of State or National curtailment
and proration authorized by law.
(e) In addition to its right to take its royalty gas in kind, the
lessor reserves the right and option to purchase all other gas
produced for sale or use off the leased lands. This option shall
be exercised only if the Board finds that the lessee has
received and is willing to accept, a bona fide offer from a
purchaser who intends to sell or transport the gas into inter-
state commerce and that one or more intrastate purchasers
(i.e. purchasers who will use, consume, or sell the gas for use
or consumption entirely within the State of Wyoming) are
willing and able to purchase the gas upon terms reasonably
comparable to and at least as favorable to the lessee as those
offered by the interstate purchaser. The Board shall waive this
option and permit an interstate sale if it finds tha'
intrastate purchaser is willing and able to purchase the
upon terms which are reasonably comparable to and at leaor
as favorable to the lessee. As a condition to such waiver a
satisfactory agreement may be entered into by which the
production of its royalty gas may be deferred until It can be
produced and sold for consumption and use entirely within
the State of Wyoming.
SECTION 4. APPRAISAL OF IMPROVEMENTS. The lessee
shall have the right, subject to the provisions of Title 36,
Section 76 (as to State and State School lands), and Title 11,
Section 631.8 (as to Farm Loan Board lands), Wyoming
Statutes 1957, to remove any improvements owned by lessee
within a reasonable time after the termination of this lease.
Lessee agrees that any such improvements not removed
within a reasonable time after termination of this lease shall
be disposed of pursuant 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 lessee 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 continues 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 privileges, obtained by the
lessee hereunder shall terminate and cease and the lessor
may re -enter and take possession of said premises or any
part (hereof; but these provisions shall not be construed to
prevent the exercise by lessor of any legal or equitable rerr•
which the lessor might otherwise have. A waiver of
particular cause or forfeiture shall not prevent the cancella,
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 SURRENDER. This
lease may be relinquished and surrendered to lessor as to all
or any legal subdivision 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 lf such be so specified by the lessee
therein. If the said relinquishment fails to stale that no
operations have been conducted the effective date of
relinquishment shall be the date the relinquishment is
approved by the Board.
(b) If operations have been conducted under the lease on
land proposed Ic be relinquished the lessee shall give sixty
(60) days notice and shall file with the Commissioner a
written relinquishment or surrender 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 relinquish-
ment becoming effective shall be payable by lessee unless
payment thereof shall be 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 INTEREST
further covenanted and agreed that each obligation hereu,
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 hereto.
SECTION 8. If the lessor owns an interest in oil and gas in
said land less than the entire fee simple 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, Wyoming Statutes 1957, as to
the State and School Lands. and Title 11, Wyoming Statutes
1957, as to Farm Loan Lands, and rules and regulations
governing the issuance of Oil and Gas leases pursuant
(hereto.
000488
I certify that this is a True and Comparable
copy of the Original Record on file in the
Wyoming Office of State Lands Investme ts.
ii
Asst. Director, Office of to
Irwestments