HomeMy WebLinkAbout961249Board: January 6, 1966
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
12 34-Seuth Wolcott
Casper, bSS' r ing 8401
L1 ncol.n COMMON SCHOOL
(County) (Fund)
T 21" N.,. R, 1 1 2 -W., 6th P.M.
Enter here the
Parcel Number(s)
applied for.
Seca 16
Set.' 36
,tai Areau`
96 4)
xamined•
STATE OF WYOMING
1st
2. Land requested
104
105
69 -71
CD -01
All
m l Ottlifftstameamdl oFi ythM MOW W Re in
illfydmlmtj Orke t State Lands Investments.
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2nd
(Name of Applicant)
(Number and Street)
3rd
(City and State)
4th
5th
8 -61
CD -01
8 -48
CD -02
49 -78
CD -02
0
0
u
0 0
000689
67- 8942
1-
0
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E S25,000.00 Corp,Suret_rtf
d a ted ug.23,19 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.
1
z
(Not to be filled in by Offeror) n
3. Land included in lease
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(County) (Fund) z 0
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T N., R._ _______W., 6th P.M. p
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Total Area_ Acres m
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This leas" en-ibrpces the area and
the l;a,:cl clescrib'c1 in item 2.
retained is the rental
amount shown in item 4.
4. Amount remitted: Filing Fee
Advanced Rental (To be computed at 50¢ per acre or fraction thereof)
480.00
Total$ 495.00
172 -76 CD-011
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14410- 4.1.7
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 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 Iease insofar as said
.lase 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.
fees transmitted p wth said application will thereupon n at forfeited prior
o the failure ltodfulfill entals,
(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 WITNES'S WHEREOF, Offeror has duly executed this instrument this 15 t h day of Sept 19 67
(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.
Signed on (CT 1 1 1967
embraced in the Whiskey Buttes Unit
Agreement No..0 --34 -59
EFFk;CTIVE DATE OF LEASE October 2, 1967
LESSOR: STATE OF WYOMING, acting by and through its
Board of Land Conlinissioners.
Commissioner of Public Lands Secretary
(Chapter 12�`, Session Laws of Wyoming, 1965)
a
SECTION 1. RIGHTS OF LESSEE. The lesse
granted the exclusive right and privilege to drill
mitre, extract, remove, and dispose of all the
and gas in the lands leased together with the r
to construct and maintain thereupon all wo
buildings, plants, waterways, roads, communica
linfli, pipe lines, reservoirs, tanks, pumping
tions, or other structures necessary to the full
oynlent thereof, for a period of ten (10) years
so long thereafter as oil or gas may be produce
paying quantities.
SECTION 2. THE LESSEE AGREES:
(a) BOND. To furnish a bond with an appro surety company authorized to tran
business in the State of Wyoming, or such of
surety as may be acceptable to the lessor, in
penal sum as required by the current rules of
State Board of Land Commissioners, conditio
upon the payment of all rentals and royal
accruing to the lessor under the terms her
and upon the full compliance of all other to
and conditions of this lease and the Rules
Regulations relating thereto, and also conditio
on the payment of all damages to the surface
improvements thereon where the lease covers lan
the surface of which has been sold or otherw
leased. Such bond or bonds furnished prior to
development of the lands contained in this le
may be increased in such reasonable amounts
the lessor may decide upon commencement of dr
ing operations, and after the discovery of oil or g
(b) PAYMENTS. To make all payments accru
hereunder to the Commissioner of Public Lan
Capitol Building, Cheyenne, Wyoming.
(c) RENTALS. Prior to the discovery of oil
gas in paying quantities to pay the lessor in
vance, beginning with. the effective date hereof,
annual rental of 500 per acre or fraction there failure to pay rental on or before the an
versary date shall automatically terminate the le
by operation of law. If the tune for payment fa
on a day in which the State Land Office is dos shall be deemed timely if made on ne
official working day.
After the discovery of oil or gas in paying qua
tities to pay the lessor in advance, beginning wi
the first day of the lease year succeeding t
lease year in which actual discovery was made,
annual rental of One Dollar ($1.00) per acre or fra
tion thereof, unless changed by agreement. Su
rental so paid for any one year shall be credit
on the royalty for that year. Lessor shall have r
obligation hereunder to give lessee advance not any rental payment.
(d) ROYALTIES. The royalties to be paid
saved, and sold from n said lanone-eighth the same to produ
be d
livered at the wells or to the credit of lessor in
the pipe line to which the wells may he connecte
(ii) on. gas, including casinghead gas or other h
drocarbon substance, produced from said land say
and sold or used off the premises or in the man
facture of gasoline or other products therefro
the market value at the well of one eighth of t
gas so sold or used, provided that on gas sold
the wells the royalty shall be one eighth of t h
amount realized from such sale.
Should any well drilled upon lands covered b
this lease obtain production of oil, gas, or oth
hydrocarbons, and if the lessee is unable to •esta
lisle a ,satisfactory market for the oil, gas, or hydr
carbons produced from said well, the lessee ma
apply for and the lessor may grant permission fo
the suspension of production operations until sue
tune as a satisfactory market for the product fro
said well can be developed. During the time an
such suspension of operations is in effect the lesse
shall continue to pay the annual rental of One D
lar• ($1.00) per acre or fraction thereof provided b
(e) above, and this lease shall remain in effect a
though oil or gas. was being produced from sai
lands.
ON OTHER KINDRED HYDROCARBONS AN
SUBSTANCES: On all other hydrocarbons of valu
and gaseous substances and elements produced. o
extracted, including propane, butane, sulphur, ni
trogen, carbon dioxide, and helium, at such royalt
as shall be mutually determined to be fair and rea
sonable.
For royalty purposes on gas and natural gasolin
the value shall be as approved by the lessor, an
in the determination of the value of natural gas
line the fair cost of extraction shall be considere
as a deductible item; provided, however, that t h
allowance for the cost of extraction may excee
two thirds of the amount or value only on ap
proval of the lessor and in no event shall th
price for gas, or natural gasoline, be less than tha
received by the United States of America for it
royalties from the same field.
In cases where natural gas is produced and th
natural -gas gasoline extracted therefrom only on
royalty shall be paid, except in the event th
residue or dry gas shall be marketed it shall the
constitute a separate commodity and a royalty shal
be paid thereon as above provided.
Natural gas and oil actually used for operatin
purposes upon the land and, except as to the ul
titnate sale thereof, gas or liquid hydrocarbons re
turned to the sand for stimulating the productio
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 i
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.
(1) MEASUREMENTS OF PRODUCTION. To
gauge, measure and correct for temperature all pro
duction from said Rules and Regulations lands t
adopted by the Board of
Land Commissioners and report said production to
the lessor in accordance therewith.
To keep books, records and reports pe to
LEASE TERMS
e is the production from the land herein leased as well
for, as those pertaining to the production from offset
011 wells operated by the lessee, his operator or sub
ight lessee, on other lands, which shall be opened at all
rks, times for the inspection of any duly authorized
tion agent of the lessor.
sta- To furnish the lessor with original pipe line re-
en- ports showing the day, month, year, amount, gray-
and ities and temperatures of all oil run and with
d in 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
owed the sand.
sacs (g) MONTHLY PAYMENTS AND STATEMENTS.
her Unless the time of payment is otherwise extended
the by the Commissioner of Public Lands, to make pay
the ment on or before the twentieth (20th) day of the
ned calendar month succeeding the month of produc-
ties tion and removal and sale of oil and gas from said
eof, land, and to furnish sworn monthly statements
rms therewith showing in detail the quantity and qual-
and ity of the production (per well if required where
ned practical) from the land hereby leased, and the
and quantity and quality of the' production (per well
ds, where practical) from offset wells upon cornering
Ise or contiguous lands operated by the lessee, his op-
the erator or sub lessee and such other information as
ase may be called for in the form of report prescribed
as by the lessor.
(h) WELLS TO BE DRILLED. To drill and op-
as, erate effectively all wells necessary to reasonably
offset wells upon and production from adjoining
ing lands.
ds To drill such additional wells at such times or
places as are necessary and essential to the proper
or development and commercial production of the all
ad- and gas content of said land.
an (1) LOG OF WELLS AND REPORTS. To keep a
eof. log, in the form approved by the lessor, of each
ni- well drilled by the lessee on the lands herein leased,
ase showing the strata and character of the formations,
lls water sands and mineral deposits penetrated by the
ed, drill, amount of casing, size and where set, and such
xt other information as the lessor may require, which
log or copy thereof shall be furnished to the lessor.
n To file progress reports, in the form prescribed
th by the lessor, at the end of each thirty (30) day
he period while each well is being drilled.
an To file annually, or at such times as the lessor
ch may require, maps showing the development of the
ed structure and the location of all wells, pipe lines
ro and other works used in connection with the opera-
ce 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,
b and report such other information as may be pos-
d sessed by the lessee on the wells, production or
e operations of others on lands on the same geologic
to structure that may be of importance in. effecting
d proper development and operation of the lands
Y- herein leased, as may be called for by the lessor.
ed All logs, maps and reports shall be submitted in
u duplicate and the Commissioner may waive such
m reports as conditions may warrant.
he (j) PRODUCTION. To operate the wells upon the
at land herein leased in a competent and efficient
e manner in an endeavor to recover all the oil and
gas economically possible from said land and to
y prevent the undue drainage of the oil and gas there
er under by wells operated by the Iessee or others on
b- cornering or contiguous lands to those leased herein.
o-
All plans or methods for the purpose of stimulating
d
or increasing production on lands herein leased
r other than those in common use shall first be pre
h sented to the lessor for approval before being put
m into actual operation.
Y No production agreements limiting, restricting,
e prorating, or otherwise affecting the natural pro
01- duction from said land shall be entered into by the
y
lessee, nor shall the lessee limit, restrict or prorate
s the natural production from said land in any way
d or in any event, except with the consent in writing
of the lessor first had and obtained.
e (k) DILIGENCE— PREVENTION OF WASTE. To
exercise reasonable diligence in drilling, producing,
r and operating of wells on the land covered hereby,
unless consent to suspend operations temporarily Le
Y granted by the lessor; to carry on all operations
hereunder in a good and workmanlike manner in
accordance with approved methods and practice,
e having clue regard for the prevention of waste of
d oil and gas, or the entrance of water to the oil or
gas bearing sands or strata to the destruction or
d injury of such deposits, the preservation and con
e nervation of the property for future productive
d operations, and to the health and safety of workmen
and employees;• to plug securely in an approved
t manner any well before abandoning it, and not. to
abandon any well without permission of the lessor;
s not to drill any well within two hundred (200) feet
of any of the outer boundaries of the land covered
e hereby, unless to protect against drainage by wells
o drilled on lands adjoining less than 200 feet from
e the property lines thereof; to conduct all operations
n subject to the inspection of the lessor; to carry out
1 at the lessee's expense all reasonable orders and re-
quirements of the lessor relative to the prevention
g 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,
n 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
rr 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 the 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
uu0600
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.
(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 oiler
under this lease in accordance With the valid
and Regulations governing the production or 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.
(h) 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 rfght, 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 under
any system of State or National curtailment and
proration authorized by law.
SECTION 4. APPRAISAL OF IMPROVEMENTS.
The lessee shall have the right, subject b'
provisions of Title 36, Section 76 (as to,Stty
State School lands), and Title 11, Section
(as to Farm Loan Board lands), Wyoming Staa a,ea
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 .SZTR..
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 fails 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 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 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 j.ter:.
SECTION 8. If the lessor owns an in est
and gas in said land less than the entire fee shnple
estate, then the royalties and rentals to be paid
lessor shall be reduced proportionately.
SE ?T 9. This lease is issued by virtue of and
nde "�Y 44,16
u piatja W yo
mingle 'tS
Lan
to F oerp(
School
�1�' s 19 57, as
governing the issuarfce o r i a pur-
suant
DATE