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HomeMy WebLinkAbout961380Form 3100 -11h (.August l''01181 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.0 et seq.). the Mineral Leasing Act for Acquired Lands of 1947, as amended (30 U.S.0 351 -3591, the Anorney General's Opinion of April 2. 1941 (40 Op. Atty. Gen, 41), or the 2 Nanic Street UNI" STATES DEPARTMEN'L JF THE INTERIOR BUREAU OF LAND MANAGEMENT OFFER TO LEASE AND LEASE FOR OIL AND GAS Donald B Anderson Ltd 1200 17th St #1150 Coy, State. Zip Code Denver, 00 80202 READ INSTRUCTIONS BEFORE COMPLETING This application /Offer /lease is for (Check only One) X. PUBLIC DOMAIN LANDS Surface managing agency if other than BLM:USR Sal t Take r',ity, UT Legal description of land requested: "Parcel No ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE. T. R. Meridian State RECEIVED 10/13/2011 at 3:26 PM RECEIVING 961380 BOOK: 774 PAGE: 350 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Amount remitted: Filing fcc s Rental fee s 3. Land included in lease: DO NOT WRITE BELOW THIS LINE T. 0230N R. 1110W 06th Meridian sec. 018 LOTS 8 -17; 018 SESW,NESE; 018 M&B BED OF GREEN RIV 018 M&B RIPAR TO LOTS 8- 10,13 -15; WY State ACQUIRED LANDS (percent U.S. interest Unit /Project S ed GJca rte e County Serial No. WYW 128179 000350 'Sale Date tm /d /y) Total acres applied for Total S CERTIFIED Sweetwater °.a be a true arid comparative copy of the official records. on file Lincoln Cou Type and primary term of lease: O Noncompetitive lease (ten years) L j.. by Lr� Get lam. 5c:...i✓ THE UNITED STATES OF AMERICA r Cr:Ty B ik AN (Signing Office j Do Competitive lease ((vXXc rg (ten years) Supervisory Land Law Examiner (Title) Ll Other EFFECTIVE DATE OF LEASE i :1 r HH J/f MANAGEIVENT DEC 2 1 1992 (Date) JAN 0 1 1993 181 Total acres in lease 492. 0 6 0 Rental retained s 5 0 This lease is issued granting the exclusive right to drill for. omnc. 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 atithgeity,.RtRights granted arc 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 issuarice: aridto 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. of any State or Territory:. tbereati....r all parties holding an interest in the offer are in compliance with AS 3100 and the !easing authorities. offeror 's chargeiit 'atesee.ts, direct and indirect in either public domain lands do not exceed 246,080 acres in Federal oil and gs the same State, of which not more than 200.1)0 acres a r option, or 300,000 acres in leases and 200,00U acres in options in either leasing District in Alaska; (4) offeror is not considered a minor under the laws of the State in which the (ands covered by this offer are located; 31 offeror :s in compliance with qualifications concerning Federal coal lease holdings provided in sec. 2(a)(2)(A) of the Mineral Leasing Asa :61 °flu; or s in compliance with reclamation requirements fix 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 see re Act. (b) Undersigned agrees that signature to this offer constitutes acceptance of this lease. including all terms, conditions. and stipulations of which offeror leas been given notice, and any amendment ruera r '.sese t; vat may include any land described in this offer open to leasing at the time this offer was tiled but omitted for a ,eeeae from offeror further agrees that this osier ..,once Sc withdrawn. either in whole or in part. unless the withdrawal is received by the proper BLM State Office efore his lase. an arnendmert to this ass. or a separate lease, whichever _ovens the and described in the withdrawal, has been signed on behalf of the United States. Tads o•i/er will he rejected and will afford offeror no priority if it is not properly completed and executed in accordance with the regulations, ter l(' it as not itccoaripassided by the required nay 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 linhltsl Stases .m). lease, i cr';fstess er':trau0acient attatesneffits arc representations as to any matter within its jurisdiction. Duly executed this day of 19 Sec I Rentals— Rentals shall be paid to proper office of Annual rental -ates per acre or fraction thereof are: (a) Noncompetitive lease, 51.50 for the first 5 years: (b) Competitive lease. 51 s^ r (c) Other, see attachment, or s specified in regulations at the time this lease is issued lessor in advance of each lease year thereafter 52.000. 40 1st es Ow e. bob lirstalkit $211% If this lease or a portion thereof is committed to an approved cooperative or unit plan which includes; a well capable of producing leased resources, and the plan contains a provision for allocation 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. ;raiture 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 lave. Rentals may be waived, reduced, or suspended by the Secretary upon a sufficient showing by less Sec. Royalties— Royalties shall be paid to proper office of lessor. Royalties shall be compute in accordance with regulations on production removed or sold. Royalty rates are: (a) Noncompetitive lease, 12 b) Competitive lease, 12' tit) 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 to 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 less than the rental which otherwise would be required for drat 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 mews royalty rates may be reduced, for all or portions of this lease if the Secretary determines thus such action is necessary to encourage the greatest ultimate recovery of the leased resources. or is otherwise justified. \n interest charge shall be assessed on late royalty payments or underpayments in accordance with the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA) (30 U.S.C. 1701). Lessen shail be liable for royalty payments on oil and gas lost or wasted from a lease site when such loss nr waste is due to negligence on the part of the operator, or due to the failure to comply with any sole. regulation. order. or citation issued under FOGRMA or the leasing authority. Sex 'Sonds —A bond shall be filed and maintained for lease operations as required under egulations. ax. 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 form as lessor may prescribe. lessee shall furnish detailed statements showing amounts and quality of all products removed and sold, proceeds therefrom. and amount used for production purposes or unavoidably lost. Lessee may tie. 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 forth 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. _nd 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 (Signature of Lessee or Attorney -in -fact) 000351 costs claimed as menufacruing. preparation. used /or transportation costs. All such records shall be maintained in lessees accounting offices for future audit by lessor. Lessee shall maintain required records for 6 years after they are .generated or an audit or investigation is underway. until released of the obligation to maintain such records by lessor. 5 pm During existence of this lease, information obtained under this section shall be closed to inspection by the public in accordance with fix Freedom of Information Act (5 U.S.C. 552). Sex. 6. Conduct of operations--Less= shall conduct operations in a manner that minimizes adverse impacts to the land. air. and water. to cultural. biological, visual, .and other resources, and to other lard 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, rr„ .incaticis. to sealing or design of facilities, timing of operations. and specification of interim, and final eclamation measures. Lessor reserves the right to continue existing uses and to authorize future uses upon or in tin leased lands, including the approval of easements or rights- of -wo'. Such uses :.hall be conditioned so as to prevent unnecessary or unreasonable interference with righte 01 lesseee. Prior to disturbing the surface of the leased (ands. lessee shall contact lessor to be apprised of procedures to be followed and modifications or reclamation -insures that may be necessary. Areas to be disturbed may require inventories or special studiestodetcrntine the extent of impacts to other resources. Lessee may Inc required to complete minor inventories or short term special studies under guidelines provided by lessor I n the conduct of operations, threatened or endangered species, objects of historic or scientific interest. or substantial unanticipated environmental effects are observed, lessec shall immediate', contact lessor. Lessee shall cease any operations that would result el 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 -r ;.attracting or having extracted helium from gas production in a manner specified and means provided by lessor at no expense or loss to lessee or owner of the gas. Lessee shall include to any contract of sale of gas the provisions of this section. Sec. 9. Damages to property Lessee null pay lessor for damage to lessor's improvements, and shall save and hold lessor harmless from ail _hams 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 tinder laws ie; the State or the United Stag: accord all employees complete freedom of purchase: pay ail wages ae !east [5055 each month in lawful money of the United States; maintain a safe working ens nor ren: 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 tat eauction is said at ruisoaabie prices and to prevent monopoly. if lessee operates a pipeline. or on its controlling interest in a pipeline or a company operating a pipeline. which may be. operated accessible to oil derived from these leased lands, lessee shall comply with section 23 of the 'alines :.easing Act of 1920. Lessee shall comply with Executive Order No 1 1246 of September 24, 1965, as amended. 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 if 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 :x abandonment, reclaim the land as specified by lessor and, within a reasonable period of time, remove equipment and improvements nor deemed necessary by lessor for preservation of producible wells. Sec. 13. Proceedings in case of default -if lessee fails ;o comply with any provisions of this lease, and the noncompliance continues Of 3n day.. •.vrinen notice thereof. this lease shall be subject to cancellation unless or one' de !ea, chold contains a well capable, of production of oil or gas in paying quantities.. of the lease issiommirted to an approved cooperative or unit plan or communitizanon agreement which ontain:, weal sapabie of production of unitized substances in paying quantities. This provision shall not lie_ _onstrud 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 .:ancellation 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- interes; each !'i jauon of this lease shall extend to and be binding upon. and every benefit hereof ihall inure to 'r'e heirs, executors, administrators. successors. beneficiaries. or assignees r isrec; es hereto, Bed of the Green River riparian to Lots 8, 9, 10, 13, 14, 15, T23N, R111W, 6th P.M., described as follows: Beginning at the Meander Corner of Sections 7 and 18 on the Left Bank of the Green River; thence N. 44° 39' W., on a line normal to the median line of the Green River a distance of 1.86 chs. to a point; thence with the median line of the Green River, downstream; S. 45 27' W., 0.09 chs.; S. 41 57' W., 0.43 chs.; S. 38 50' W., 3.16 chs. to a point; thence N. 51 11' W., on a line normal to the median line of the Green River a distance of 2.44 chs. to the Meander Corner of Sections 7 and 18 on the Right Bank of the Green River; thence with the adjusted meanders of the Right Bank of the Green River through Section 18, downstream, based on the survey plat of T. 23 N., R. 111 W., approved May 29, 1912; S. 36 56' W., 4.00 chs.; S. 20 57' W., 7.21 chs.; S. 19 26' W., 3.10 chs.; S. 0° 01' E., 10.62 chs.; S. 22 58' E., 6.81 chs.; S. 74 39' E., 10.01 chs.; N. 71 36' E., 13.60 chs.; N. 66 06' E., 14.39 chs.; N. 69 51' E., 4.10 chs.; N. 66 51' E., 5.20 chs. to the Meander Corner of Sections 17 and 18 on the Right Bank of the Green River; thence N. 12 50' W, on a line normal to the median line of the Green River a distance of 3.11 chs. to a point; thence with the median line of the Green River, downstream; N. 77 12' E., 1.02 chs.; N. 78° 44' E., 0.27 chs. to a point; thence N. 11 12' W., on a line normal to the median line of the Green River a distance of 3.00 chs. to the Meander Corner of Sections 17 and 18 on the Left Bank of the Green River; thence with River through Section 18, 6.69 chs.; S. 53 49' W., 5.00 chs.; S. 61 49' W., 5.80 chs.; N. 24 57' W., 5.01 chs.; N. 23 59' E., 6.66 chs. to the Meander the adjusted meanders of upstream; S. 82° 19' W., 5.49 chs.; S. 69° 04' W. 4.60 chs.; S. 77 04' W. 3.50 chs.; N. 0 31' E., 3.50 chs.; N. 30° 59' E. Corner of Sections 7 and Green River, the place of beginning., containing 39.87 acres. the Left Bank of the Green 9.10 chs.; S. 51 18' W., 6.40 chs.; S. 75 49' W., 4.30 chs.; N. 43° 26' W., 3.51 chs.; N. 13 15' E., 3.60 chs.; N. 29 43' E., 18 on the Left Bank of the tc be.a true and vu copy of the official r y1 ijca fo WYW128179 000352 B t LANDIAiNAI'GILEr City UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT COMPETITIVE OIL AND GAS OR GEOTHERMAL RESOURCES LEASE SID 30 U.S.C. 181 et seq.; 30 U.S.C. 351 -353; 30 U.S.C. 1001 -1025; 42 U.S.C. 6508 PARCEL NUMBER THE ,I'D IS FOR (Check one) Oil and Gas Parcel Number 3 Y3 Geothermal Parcel Number Name of Known Geothermal Resource Area (KG RA) bc21.-)A LC> Nab Crs J Print or Type Name of Lessee /Z oo 17 a S7 cc7 ,SU /re Address of t,essee 0 State INSTRUCTIONS FOR OIL AND GAS BID (Except NPR-A) gO Z,_ o Z Zip Code 1. Separate bid for each parcel is required. Identify parcel by the parcel number assigned in the Notice of Competitive Lease Sale. 2. Bid must be accompanied by the national minimum acceptable bid, the first year's rental and the administrative fee. The remittance must be in the form specified in 43 CFR 3103.1 -1. The remainder of the bonus bid, if any, must he submitted to the proper BLM office within 10 working days after the last day of the oral auction. Failure to submit the remainder of the bonus bid within 10 working days will result in rejection of the bid offer and forfeiture of all monies paid. 3. If kidder is not the sole party in interest in the lease for which the bid is submitted, all other parties in interest may be required to furnish evidence of their qualifications upon written request by the authorized officer. 4. This hid may be executed (signed) before the oral auction. if signed before the oral auction, this form cannot he modified without being executed again. 5. In view of the above requirement (4), bidder may wish to leave AMOUNT OF BID section blank so that final bid amount may be either completed by the bidder or the Bureau of Land Management at the oral auction. State INSTRUCTIONS FORM APPROVED OMB NO. 1004 -0074 Expires: April 30, 1994 WY' 128179 Date of sale WY o--) AMOUNT OF BID (See Instructions below) TOTAL BID 0 y EAU Signature of Lessee or Bidder 000353 PAYMENT SUBMITTED WITH BID' tot :t at true a: a ,faarstive copy he official. records on file INSTRUCTIONS FOR GEOTHERMAL OR NPR -A OIL AND GAS BID D MANAGE The appropriate regulations applicable to this bid are: (1) for oil and gas leases -43 CFR 3120; (2) for Nationa Petroleum Reserve Alaska (NPR -A) leases- -43 CFR 3132; and (3) for Geothermal resources leases -43 CFR 3220. (See details concerning lease qualifications an reverse.) 1 CERTIFY THAT l have read and am in compliance with, and not in violation of, the lessee qualification requirements under the applicable regulations for this bid. I CERTIFY THAT this bid is not in violation of 18 U.S.C. 1860 which prohibits unlawful combination or intimidation of bidders. I further certify that this bid was arrived at independently and is tendered without collusion with any other bidder for the purpose of restricting competition. IMPORTANT NOTICE: Execution of this form, where the offer is the high bid, constitutes a binding lease offer, including all applicable terms and conditions. Failure to comply with the applicable laws and regulations under which this bid is made shall result in rejection of the bid and forfeiture of all monies submitted. I. Separate bid for each parcel is required. Identify parcel by the number assigned to a tract. 2. Bid must be accompanied by one -fifth of the total amount of bid. The remittance must he in the form specified in 43 CFR 3220.4 for a Geothermal Resources bid and 3132.2 for a NPR -A lease bid. 3. Mark envelope Bid for Geothermal Resources Lease in (Name of KGRA) or Bid for NPR -A Lease, as appropriate. Be sure correct parcel number of tract on which bid is submitted and date of bid opening are noted plainly on envelope. No bid may be modified or withdrawn unless such modification or withdrawal is received prior to time fixed for opening of bids. 4. Mail or deliver bid to the proper BLM office or place indicated in the Notice of Competitive Lease Sale. 5. If bidder is not the sole party in interest in the lease for which bid is submitted, all other parties in interest may be required to furnish evidence of their qualifications upon written request by the authorized officer. Title 18 U.S.C. Section 1001, makes it a crime for any person knowingly and willfully to make to any department or agency of the United States any false. fictitious or fraudulent statements or representations as to any matter within its jurisdiction. :o may :ie. ,l,sued as 3 resui of J is azie L. _c,._.... ,easii;o,a it rt The Act) of a 920, as amended, the watts h.wiele: m Be a citizen iI' itc !nited States; an association (including par:n s, s:; =.G citizens:a municipality; oracorporaiio o; uncle. Pe i0':, 0: .,,c L cited States or of any State or Territory thereof; (2) Be comr, ,ran. with acreage limitation requirements wherein ,:ae bidder uli and indirect, in oil and gas leases in the State .denuiied r i _Nce ou 246,080 acres each in public domain or sc including acreage covered by this bid, of which not more than 200,000 acre:; are under options. if this bid is submitted for lands in Alaska, the l holdings in each of the Alaska leasing districts do not eocecd I0 �1,. >Lf. ac of which no more than 200,000 acres are ender options in each di:,t: ic., (3) Be in compliance with Federal coal lease holdings as provided :n sec. 2(a)(2)(A) of the Act; (4) Be in compliance with reclamation requirements for all Federal oil and gas holdings as required by sec. 17 of the Act; (5) Not be in violation of sec. 41 of the Ace, and (6) Certify that all parties in interest in this bid are in compliance with 47 C. 7R Groups 3000 and 3100 and the ':easing authorities cited herein.. The I.ct of i 974 and the regulation in 43 CFR 2.48 ei; provide that you oe 'urnished the following information. in connection wiiii nfoi required by this bid for a Competitive Oil and Gas c Geis t, 'mar Resources Lease. 7- 30 U.S.C. 181 et seq.; 30 U.S.C. 759; 30 U.S.C. 1001 1025 ;42 U.S.C. 6508 PRINCIPLE PURPOSE: The information is to be used to process your bid. QUALIFICATIONS NC C O. r lea _oiherrr:a. S c.t :zen u; aeon t,, �caic 01 .err. .matron three t. d easing au: eme is I (1) Be a ens a municipality: to:6. ..hc �li,et; States or of an'. and (2) }$e ct. :',ipiiance with ac,,,age direct and ,201. and that all parries in r_ Group 3200 and the Deplattaer;; Bc admitted >ipu,at )tat pi 0; any 'Mate or or, ;1p 01. nationals, resident _.lc,.: ut plitat, public r municlpa; corporations, and (2) ;rerti;y is t1 Old d5. n compliance FNltil 43 CFR Pal 3 'f and he leasing authorities cited .Herein. en •,u•rc a pr .as 000354 The Paperwork Reduction Act of 1980 (44 U.S.C. 350) et seq.) requires us to inform you that: This information is being collected in accordance with 43 CFR 3120, 43 CFR 3130, or 43 CFR 3220. This information will be used to determine the bidder submitting the highest bid. Response to this request is required to obtain a benefit. an 0210- Of rnu'i.l tpa: 3i... ed:i. .21 :0 o. 1 rlgnl he 2soui... bid i., .i u'„tlmentation ,,1 u V C ,.oi 1 s,e: oap 0 )1, at )L:C;i comment �i 'Ih of Cun5:ii .0.1i ed prior to granting a 'lght in rands or resources. '4)(.;) l.nfortnatiorl From the record a;idt.or the record; will be tran`;ier"ce1 .0 appropriate :do.'ai. 'itatc. local or foreign agencies, When reitn ant o t, _;'Ir nai 01 t:guiatury in7estlgations or prosecu- tions. EFFECT OF NOT PROVIDING INFORMATION: Disclosure of the information is voluntary. If all the irtlormatron is not provided, your bid may he rejected. BURDEN HOURS STATEMENT Public reporting burden for this form is estimated to average 2 hours per response, including the time for reviewing instructions, cat ssrir,g and maintaining data, and coinpleting and reviewing the form. Direct comments regarding the burden estimate or any other aspect of this form to U.S. Department-of the interior, Bureau of Land Management, (Alternate) Bureau Clearance Officer; (WO -771), 1849 C Street, N.W., Washington, D.C. 20240, and the Office of ivianagement and Budget, Peperv:ork Reduction Project (1004 -0074), Washington, D.C. 20503. NOTICE TO LESSEE 28179 000355 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. CERTIFIED •to b e a trueorrpi. <r 0f.ihe official reccros on filCOpY ir)ir`b7 (Pit ort B "JO AO O LAN[ MA v' A GEME JT LEASE NOTICE NO. 1 1. Slopes in excess of 25 percent. 2. Within 500 feet of surface water and /or riparian areas. 3. Construction with frozen material or during periods when the soil material is saturated or when watershed damage is likely to occur. 5. Within 1/4 mile of occupied dwellings. GUIDANCE: 'YYV128179 000356 Under Regulation 43 CFR 3101.1 -2 and terms of the lease (BLM Form 3100 -11), the authorized officer may require reasonable measures to minimize adverse impacts to other resource values, land uses, and users not addressed in lease stipulations at the time operations are proposed. Such reasonable measures may include, but are not limited to, modification of siting or design of facilities, timing of operations, and specification of interim and final reclamation measures, which may require relocating proposed operations up to 200 meters, but not off the leasehold, and prohibiting surface disturbance activities for up to 60 days. The lands within this lease may include areas not specifically addressed by lease stipulations that may contain special values, may be needed for special purposes, or may require special attention to prevent damage to surface and /or other resources. Possible special areas are identified below. Any surface use or occupancy within such special areas will be strictly controlled or, if absolutely necessary, prohibited. Appropriate modifications to imposed restrictions will be made for the maintenance and operation of producing wells. 4. Within 500 feet of Interstate highways and 200 feet of other existing rights -of -way (i.e., U.S. and State highways, roads, railroads, pipelines, powerlines). The intent of this notice is to inform interested parties (potential lessees, permittees, operators) that when one or more of the above conditions exist, surface disturbing activities will be prohibited unless or until the permittee or the 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). CERTIFIED to beat rue anti cam, �ti, cf. 1y of the official records on ;iii; g nL r' u 4 .0 x BUREAU OF LAND MU,A AGE, E 4 On the lands described below: Sec 18: Lots 10, 11; For the purpose of: protecting a national trail. CONTROLLED SURFACE USE STIPULATION CSU Surface occupancy or use is subject to the following special operating constraints. WYW128179 000357 Surface disturbance or occupancy within 1320 feet of the Slate Creek Cutoff of the Emigrant Trail may be prohibited depending on site specific circumstances including, but not limited to, trail condition and setting, topography, visual horizon from trail, and nature and extent of proposed activity; Any changes to this stipulation will be made in accordance with the land use plan and /or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) be a true and comparative copy of the official records on file Crq BuRE/ a A ANAL. a Nov 15 to Apr 30; b. Feb 1 to Jul 31; TIMING LIMITATION STIPULATION TLS No surface use is allowed during the following time period(s). This stipulation does not apply to operation and maintenance of production facilities. On the lands described below: a. Sec 18: Lots 10 -13, 16, 17, SESW; b. entire lease; For the purpose of (reasons): a. protecting crucial big game winter range. b. protecting raptor nesting habitat. WYW128179 000358 Any changes to this stipulation will be made in accordance with the land use plan and /or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) co:::_ 1 11" I L.) to be a true and comparative copy of the official records on file vi BUREAU OF LANWMA vAG Form 3109 -1 (December 1972) (formerly 3103 1) The lessee agrees to maintain, if required by the lessor during the period of this lease, including any extension thereof, an additional bond with qualified sureties in such sum as the lessor, if it considers that the bond required under Section 2(a) is insufficient, may at any time require: (a) to pay for damages sustained by any reclamation homestead entryman to his crops or improvements caused by drilling or other operations of the lessee, such damages to include the reimbursement of the entryman by the lessee, when he uses or occupies the land of any homestead entryman, for all construction and operation and maintenance charges be- coming due during such use or occupation upon any portion of the land so used and occupied; (b) to pay any damage caused to any reclamation project or water supply thereof by the lessee's failure to comply fully with the requirements of this lease; and (c) to recompense any nonmineral applicant, entryman, purchaser under the Act of May 16, 1930 (46 Stat. 367), or patentee for all damages to crops or to tangible improvements caused by drilling or other prospecting operations, where any of the lands covered by this lease are embraced in any non mineral application, entry, or patent under rights initiated prior to the date of this lease, with a reservation of the oil deposits, to the United .States pursuant to the Act of July 17, 1914 (38 Stat. 509). As to any lands covered by this lease within the area of any Government reclamation project, or in proximity thereto, the lessee shall take such precautions as required by the Secretary to prevent any injury to the lands susceptible to irrigation under such project Or to the water supply thereof; provided that drilling is prohibited on any constructed works or right -of -way of the Bureau of Reclamation, and provided, further, that there is reserved to the lessor, its successors and assigns, the superior and prior right at all times to con- struct, operate, and maintain dams, dikes, reservoirs, canals, wasteways, laterals, ditches, ,telephone and telegraph lines, electric transmission lines, roadways, appurtenant irrigation structures, and reclamation works, in which construction, operation, and maintenance, the lessor, its successors and assigns, shall have the right to use any or all of the lands herein described without making compensation therefor, and shall not be responsible for any damage from the presence of water thereon or on account of ordinary, extraordinary, unex- pected, or unprecedented floods. That nothing shall be done under this lease to increase the cost of, or interfere in any manner with, the construction, operation, and maintenance of such works. It is agreed by the lessee that, if the construc- tion of any or all of said dams, dikes, reservoirs, canals, wasteways, laterals, ditches, telephone or telegraph lines, electric transmission lines, roadways, appurtenant irrigation structures or reclamation works across, over, or upon said lands should be made more expensive by reason of the existence of the improvements and workings of the lessee thereon, said additional expense is to be estimated by the CER f DIED, to be a true and corilp:,rtative cony of the official record:; on filE. C� lX�f.J h 9 (k a'0 ICJ r uJ UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT LEASE STIPULATIONS BUREAU OF RECLAMATION Secretary of the Interior, whose estimate is to be final and binding upon the parties hereto, and that within thirty (30) days after demand is made upon the lessee for payment of any such sums, the lessee will make payment thereof to the United States, or its successors, constructing such dams, dikes, reservoirs, canals, wasteways, laterals, ditches, telephone and telegraph lines, electric transmission lines, roadways, appurtenant irrigation structures, or reclamation works, across, over, or upon said lands; provided, however, that subject to advance written approval by the United States, the location and course of any improvements or works and appurtenances may be changed by the lessee; provided, further, that the reservations, agreements, and conditions contained in the within lease shall be and remain applicable notwithstanding any change in the location or course of said improvements or works of lessee. The lessee further agrees that the United States, its officers, agents, and employees, and its successors and assigns shall not be held liable for any damage to the improvements or workings of the lessee resulting from the construction, operation, and maintenance of any of the works hereinabove enumerated. Nothing in this paragraph shall be construed as in any manner limiting other reservations in favor of the United States contained in this lease. THE LESSEE FURTHER AGREES That there is reserved to the lessor, its successors and assigns, the prior right to use any of the lands herein leased, to construct, operate, and maintain dams, dikes, reservoirs, canals, wasteways, laterals; ditches, telephone and telegraph lines, electric transmission lines, roadways, or appurtenant irrigation structures, and also the right to remove construction materials therefrom, without any payment made by the lessor or its successors for such right, with the agreement on the part of the lessee that if the construction of any or all of such dams, dikes, reservoirs, canals, wasteways, laterals, ditches, telephone and telegraph lines, electric transmission lines, roadways, or appurtenant irrigation structures across, over, or upon said lands or the removal of construction materials therefrom, should be made more expensive by reason of the existence of improvements or workings of the lessee thereon, such additional expense is to be estimated by the Secretary of the Interior, whose estimate is to be final and binding upon the parties hereto, and that within thirty (30) days after demand is made upon the lessee for payment of any such sums, the lessee will make payment thereof to the United States or its successors constructing such dams, dikes, reservoirs, canals, wasteways, laterals, ditches, telephone and telegraph lines, electric transmission lines, roadways, or appurtenant irrigation structures across, over, or upon said lands or removing construction materials therefrom. The lessee further agrees that the lessor, its officers, agents, and employees and its successors and assigns shall not be held liable for any damage to the im- provements or workings of the lessee resulting from the construction, operation, and maintenance of any of the works herein above enumerated. Nothing contained in this paragraph shall be construed as in any manner limiting other reservations in favor of the lessor contained in this lease. (Signature of Lessee) BN LB ('A ale 281 i 000359 000360 To insure against the contamination of the waters of the Reservoir, Project, State of the lessee agrees that the following further conditions shall apply to all drilling and operations on lands covered by this lease, which lie within the flowage or drainage area of the Reservoir, as such area is defined by the Bureau of Reclamation: 1. The drilling sites for any and all wells shall be approved by the Superintendent, Bureau of Reclamation, Project, before drilling begins. Sites for the construction of pipe -line rights -of -way or other authorized fac; shall also be approved by the Superintendent before construction begins. 2. All drilling or operation methods or equipment shall, before their employment, be inspected and approved by the Superintendent of the Project, and by the Supervisor of the U. S. Geological Survey having jurisdiction over the area. U.S. Government tin ice: legion 8 Note: "X" means Stipulation applies. 000361 Lease No. WYW128179 BUREAU OF RECLAMATION SPECIAL OIL AND GAS LEASE STIPULATIONS X 1. Leasee agrees to provide written notice to the Bureau of Reclamation 15 days prior to any and all intended surface activities in con- nection with exploration, drilling or any other activity associated with, or leading to, oil and gas production (including seismic activity) on any lands which the Bureau of Reclamation has juris- diction as the Surface Managing Agency. 2. Leasee agrees that there will be no surface occupancy within 1,500 horizontal feet of Dam. This stipulation is to ensure the integrity of the structure. 3. Leasee agrees that there will be no surface occupancy within 500 horizontal feet of the maximum water surface elevation of Reservoir (maximum water surface elevation is feet above mean sea level). This stipulation is to minimize the possibility of pollution and interference with the operation and maintenance of the Reservoir. 4. Leasee agrees that there will be no surface occupancy within 200 horizontal feet of the centerline of any constructed or proposed Bureau of Reclamation tunnel, canal, aqueduct, pipeline, lateral, drain, transmission lines, telephone lines, and roadways, under the administration or jurisdiction of the Bureau of Reclamation. Also, O&M roads will not be used for access without prior approval of Bureau of Reclamation. x 5. Leasee agrees that there will be no surface occupancy within 500 horizontal feet of any improved campground facility. x 6. Leasee agrees to locate production facilities so that they will not be seen by the general public using the Reservoir or campground areas. CERTIFIED to be a true and comparative copy of the official records on file