Loading...
HomeMy WebLinkAbout961418DETERMINATION APPROVAL CERTIFICATION 000494 Pursuant to the authority vested in the Secretary of the Interior under Section 17(j) of the Mineral Leasing Act of 1920, as amended (74 Stat. 784; 30 U.S.C. 226(j)), and delegated to the authorized officer of the Bureau of Land Management, I do hereby: A. Determine that the Federal lease or leases as to the lands committed to the attached agreement cannot be independently developed and operated in conformity with the well- spacing program established for the field or area in which said lands are located, and that consummation and approval of the agreement will be in the public interest. Approval of this agreement does not warrant or certify that the operator thereof and other holders of operating rights hold legal or equitable title to those rights in the subject leases which are committed hereto. B. Approve the attached communitization agreement covering the SW1 /4 of Section 4, T. 22 N., R. 112 W., Lincoln County, Wyoming, as to the natural gas and associated hydrocarbons producible from the Frontier Formation. This approval will become invalid if the public interest requirements under 43 CFR 3105.2 -3(c) are not met. C. Certify and determine that the drilling, producing, rental, minimum royalty and royalty requirements of the Federal lease or leases committed to said agreement are hereby established, altered, changed, or revoked to conform with the terms and conditions of the agreement. Approved: J avid Chase Effective: 9/1/2004 ief, Reservoir Management Group Agreement No.: WYW179669 Bureau of Land Management Casper, Wyoming RECEIVED 10/17/2011 at 12:29 PM RECEIVING 961418 BOOK: 774 PAGE: 494 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY WITNESSETH: 000495 COMMUNITIZATION AGREEMENT Contract No. W/ A917 ?b THIS AGREEMENT entered into as of the 18th day of January, 2005, by and between the parties subscribing, ratifying, or consenting hereto, such parties being hereinafter referred to as "parties hereto." WHEREAS, the Act of February 25, 1920 (41 Stat. 437), as amended and supplemented authorizes communitization or drilling agreements communitizing or pooling a Federal oil and gas lease, or any portion thereof, with other lands, whether or not owned by the United States, when separate tracts under such Federal lease cannot be independently developed and operated in conformity with an established well- spacing program for the field or area and such communitization or pooling is determined to be in the public interest; and WHEREAS, the parties hereto own working, royalty or other leasehold interests, or operating rights under the oil and gas leases and lands subject to this agreement which cannot be independently developed and operated in conformity with the well- spacing program established for the field or area in which said lands are located; and WHEREAS, the parties hereto desire to communitize and pool their respective mineral interests in lands subject to this agreement for the purpose of developing and producing communitized substances in accordance with the terms and conditions of this agreement: NOW, THEREFORE, in consideration of the premises and the mutual advantages to the parties hereto, it is mutually covenanted and agreed by and between the parties hereto as follows: 1 The lands covered by this agreement (hereinafter referred to as "communitized area are described as follows: Township 22 North, Range 112 West, 6 P.M. Section 4: SW /4 1.0 -Li Lincoln County, Wyoming (1 C) v a. Containing 160 acres, more or less, and this agreement shall include only the Frontier a,, formation underlying said lands and the natural gas and associated hydrocarbons, hereinafter referred to as "communitized substances," producible from such formation. CZ. Q. c a This agreement affects only the described communitization agreement production from the Shute Creek Unit 13 -04 well, located 1528 feet from the south line and 1282 feet m from the west line of said Section 4, and shall not affect the allocation of production from any other wells on the above described communitized lands or any other lands which were previously communitized with any of the above described lands. 2. Attached hereto, and made a part of this agreement for all purposes is Exhibit A, a plat designating the communitized area, and Exhibit B, designating the operator of the communitized area and showing the acreage, percentage, and ownership of oil and gas interests in all lands within the communitized area, and the authorization, if any, for communitizing or pooling any patented or fee lands within the communitized area. Shute Creek 13 -04 1 000496 3. All matters of operation shall be governed by the operator under and pursuant to the terms and provisions of this agreement. A successor operator may be designated by the owners of the working interest in the communitized area and three (3) executed copies of a designation of successor operator shall be filed with the Authorized Officer of the Bureau of Land Management. 4. Operator shall furnish the Secretary of the Interior, or his authorized representative, with a log and history of any well drilled on the communitized area, monthly reports of operations, statements of oil and gas sales and royalties, and such other reports as are deemed necessary to compute monthly the royalty due the United States, as specified in the applicable oil and gas operating regulations. 5. The communitized area shall be developed and operated as an entirety, with the understanding and agreement between the parties hereto that all communitized substances produced therefrom shall be allocated among the leaseholds comprising said area in the proportion that the acreage interest of each leasehold bears to the entire acreage interest committed to this agreement, subject to the following special terms: A. The communitized substances allocated on an acreage basis, as stated above, to communitized area lands subject to the Cow Hollow Unit shall be further allocated to all Cow Hollow Unit Frontier Participating Area "E" lands in accordance with the terms and provisions of the Cow Hollow Unit Agreement. Further, the communitized substances allocated on an acreage basis, as stated above, to communitized area lands subject to the Shute Creek Unit shall be further allocated to all Shute Creek Unit Frontier Participating Area "A" lands in accordance with the terms and provisions of the Shute Creek Unit Agreement. 13. Should the Cow Hollow Unit Frontier Participating Area "E" or the Shute Creek Unit Frontier participating Area "A" be revised to include additional land not subject to this communitization agreement, the operator shall submit to the Authorized Officer a revised Exhibit `B" to this agreement reflecting the changes in allocation for lands within the cow hollow unit frontier Participating Area "E" and/or the Shute Creek Unit Frontier Participating Area "A C. Any communitized lands which are not subject to a Frontier Formation Participating Area shall receive allocation of production on an acreage basis. 6. The royalties' payable on communitized substances allocated to the individual leases comprising the communitized area and the rentals provided for in said leases shall be determined and paid on the basis prescribed in each of the individual leases. Payments of rentals under the terms of leases subject to this agreement shall not be affected by this agreement except as provided for under the terms and provisions of said leases or as may herein be otherwise provided. Except as herein modified and changed, the oil and gas leases subject to this agreement shall remain in full force and effect as originally made and issued. It is agreed that for any Federal lease bearing a sliding- or step -scale rate of royalty, such rate shall be determined separately as to production from each communitization agreement to which such lease may be committed, and separately as to any 7. There shall be no obligation on the lessees to offset any well or wells completed in the same formation as covered by this agreement on separate component tracts into which the communitized area is now or may hereafter be divided, nor shall any lessee be required to measure separately communitized substances by reason of the diverse ownership thereof, but the lessees hereto shall not be released from their obligation to protect said communitized area from drainage of communitized substances by a well or wells which may be drilled offsetting said area. 8. The commencement, completion, continued operation or production of a well or wells for communitized substances on the communitized area shall be construed and considered as the commencement, completion, continued operation or production on each and all of the lands within and comprising said communitized area, and operations or production pursuant to this agreement shall be deemed to be operations or production as to each lease committed hereto. 9. Production of communitized substances and disposal thereof shall be in conformity with allocation, allotments, and quotas made or fixed by any duly authorized person or regulatory body under applicable Federal or State statutes. This agreement shall be subject to all applicable Federal and State laws or executive orders, rules and regulations, and no party hereto shall suffer a forfeiture or be liable in damages for failure to comply with any of the provisions of this agreement if such compliance is prevented by, or if such failure results from, compliance with any such laws, orders, rules or regulations. 10. This agreement is effective September I, 2004, upon execution by the necessary parties, notwithstanding the date of execution and upon approval by the Secretary of the Interior or by his duly authorized representative and shall remain in force and effect for a period of two (2) years and for so long as communitized substances are, or can be, produced from the communitized area in paying quantities: provided, that prior to production in paying quantities from the communitized area and upon fulfillment of all requirements of the Secretary of the Interior, or his duly authorized representative, with respect to any dry hole or abandoned well, this agreement may be terminated at any time by mutual agreement of the parties hereto. This agreement shall not terminate upon cessation of production if, within sixty (60) days thereafter, reworking or drilling operations on the communitized area are commenced and are thereafter conducted with reasonable diligence during the period of nonproduction. The two -year term of this agreement will not in itself serve to extend the term of any Federal lease which would otherwise expire during said period. Shute Creek 13 -04 000497 noncommunitized lease production, provided, however, as to leases where the rate of royalty for gas is based on total lease production per day, such rate shall be determined by the sum of all communitized production allocated to such a lease plus any noncommunitized lease production. The covenants herein shall be construed to be covenants running with the land with respect to the communitized interests of the parties hereto and their successors in interests until this agreement terminates and any grant, transfer, or conveyance of any such land or interest subject hereto, whether voluntary or not, shall be and hereby is conditioned upon the assumption of all obligations hereunder by the grantee, transferee, or other successor in interest, and as to Federal land shall be subject to approval by the Secretary of the Interior. 3 12. It is agreed between the parties hereto that the Secretary of the Interior, or his duly authorized representative, shall have the right of supervision over all fee and State mineral operations within the communitized area to the same extent necessary to monitor production and measurement, and assure that no avoidable loss of hydrocarbons occurs in which the United States has an interest pursuant to applicable oil and gas regulations of the Department of the Interior relating to such production and measurement. 13. This agreement shall be binding upon the parties hereto and shall extend to and be binding upon their respective heirs, executors, administrators, successors, and assigns. 14. This agreement may be executed in any number of counterparts, no one of which needs to be executed by all parties, or may be ratified or consented to by separate instrument, in writing, specifically referring hereto, and shall be binding upon all parties who have executed such a counterpart, ratification or consent hereto with the same force and effect as if all parties had signed the same document. 15. Nondiscrimination: In connection with the performance of work under this agreement, the operator agrees to comply with all of the provisions of Section 202(1) to (7) inclusive, of Executive Order 11246 (30 F.R. 12319), as amended, which are hereby incorporated by reference in this agreement. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written and have set opposite their respective names the date of execution. OPERATOR AND WORKING INTEREST OWNER Date: J NLY 31, c)001 STATE OF COUNTY OF My Commission expires: 1 f 11 0416 Shute Creek 13 -04 TEXAS HARRIS BP America Production Company* c rn G co ca i 73 *-r- Ca c:3 DZ P F' n- Notary Public Jeanine Haller Piskuri Attorney -in -Fact 000498 The foregoing instrument was acknowledged before me this 31 day of Jai 207, by Jeanine Haller Piskurich, as Attorney -in -Fact of BP America Production Company, d Delaware corporation. WITNESS my hand and official seal. iv' CHARLES T. DAVIS, JR. 'r MY COMMISSION EXPIRES •,,E April 19, 2010 *BP America Production Company is Operator o t e u e ree ',nf uting this Communization Agreement on behalf of itself and all Overriding Royalty Interest and Working Interest Owners who have not otherwise executed this Communitization Agreement. 4 WORKING INTEREST OWNER (Tract 3) Date: STATE OF COLORADO WITNESS my hand ap ..F•,,, seal. AA Q ,o0 o 0 o 0 My Commission expi($s: o RICHARD E. Cvi. VI FRAZEY 9. e m OF COO 4 Kerr -McGee Oil Gas Onshore LP* CITY AND COUNTY OF DENVER Page 6 of 15 Title: Attorney -in -Fact The foregoing instrument was acknowledged before me this day of by John S. Jordan as Attorney -in -Fact Oil Gas Onshore LP Notary Public 000499 lb 200/, of Kerr -McGee *Kerr -McGee Oil Gas Onshore LP is Operator of the Cow Hollow Unit and is executing this Communization Agreement on behalf of itself and all Overriding Royalty Interest and Working Interest Owners who have not otherwise executed this Communitization Agreement. Cr) IV 0 Tract 1 Tract 3 Shute Creek 13 -04 4 Tract 2 Shute Creek Unit "A" Frontier Participating Area Cow Hollow Unit "E" Frontier Participating Area EXHIBIT "A" TO COMMUNITIZATION AGREEMENT DATED EFFECTIVE SEPTEMBER 1, 2004 TOWNSHIP 22 NORTH, RANGE 112 WEST, 6 P.M. SECTION 4: SW /4* LINCOLN COUNTY, WYOMING 1 160 acre drilling and spacing Unit Frontier (633 -2003) L _1 000500 Shute Creek 13 -04 6 EXHIBIT "B" TO COMMUNITIZATION AGREEMENT DATED EFFECTIVE SEPTEMBER 1, 2004 TOWNSHIP 22 NORTH, RANGE 112 WEST, 6 SECTION 4: SW /4 LINCOLN COUNTY, WYOMING. Operator of Communitized Well: BP America Production Company Operator of Shute Creek Communitized Area: BP America Production Company Description of Leases Committed: Tract No. 1 Lease Serial No.: U.S.A. WYW92972. A part of the Shute Creek Federal Unit Frontier Formation Participating Area "A" Lessor: United States of America Lessee: BP America Production Company, as Lessee and as Unit Operator of the Shute Creek Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C -1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area Lease Date: January 1, 1966 Recorded: Not recorded Description of Township 22 North, Range 112 West, 6 P.M. Land Committed: Section 4: N /2SW /4 Lincoln County, Wyoming Number of Acres: Containing 80 acres, more or less. Royalty Owner: BP America Production Company, as Lessee and as Unit Operator of the Shute Creek Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C -1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area «A„ Basic Royalty Rate: 12.50% 000501 Name and Percent of Parties Working Interest: Overriding Royalty Owner: Pooling Clause: Lease Serial No.: Lessor: Lessee: Lease Date: Recorded: Description of Land Committed: Shute Creek 13 -04 BP America Production Company Kerr -McGee Oil Gas Onshore LP Chevron U.S.A. Inc. Wexpro Company Chaparral Energy, LLC Merit Partners LP Merit Energy Partners III LP Merit Energy Partners D III LP BP America Production Company as Unit Operator of the Shute Creek Unit Agreement is executing this communitization agreement on behalf of the above committed working interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C -1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A BP America Production Company as Unit Operator of the Shute Creek Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C -1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A None Tract No. 2 U.S.A.WYW92970. A part of the Shute Creek Federal Unit Frontier Formation Participating Area "A" United States of America «A„ November 1, 1965 Not recorded Township 22 North, Range 112 West, 6 P.M. Section 4: SE /4SW /4 BPO 00.00000% 55.29124% 25.36094% 1.17884% 0.34260% 1 6.75681% 0.44566% 0.62392% 100.00000% APO 22.116496% 33.174744% 25.36094% 1.17884% 0.34260% 16.75681% 0.44566% 0.62392% 100.00000% BP America Production Company, as Unit Operator of the Shute Creek Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C- 1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area Number of Acres: Royalty Owner: Basic Royalty Rate: Name and Percent of Working Interest: Overriding Royalty Owner: Pooling Clause: Lease Serial No.: Lessor: Shute Creek 13 04 Lincoln County, Wyoming Containing 40 acres, more or Tess BP America Production Company, as Unit Operator of the Shute Creek Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C- 1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area «A„ 12.50% Parties BP America Production Company Kerr -McGee Oil Gas Onshore LP Chevron U.S.A. Inc. Wexpro Company Chaparral Energy, LLC Merit Partners LP Merit Energy Partners III LP Merit Energy Partners D III LP BP America Production Company as Unit Operator of the Shute Creek Unit Agreement is executing this communitization agreement on behalf of the above committed working interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C -1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A BP America Production Company as Unit Operator of the Shute Creek Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A See the attached Exhibit "C -1" for a list of committed royalty and overriding royalty interest owners in the Shute Creek Federal Unit Frontier Formation Participating Area "A None Tract No. 3 United States of America BPO 00.00000% 55.29124% 25.36094% 1.17884% 0.34260% 16.75681% 0.44566% 0.62392% 100.00000% 000503 APO 22.116496% 33.17474% 25.36094% 1.17884% 0.34260% 16.75681% 0.44566% 0.62392% 100.00000% a U.S.A.WYW0320185A. A part of the Cow Hollow Federal Formation Participating Area "E" er U f kontier c >cr cxv5A zo r rrl 9 Lessee: Lease Date: Recorded: Description of Land Committed: Number of Acres: Royalty Owner: Basic Royalty Rate: Name and Percent of Working Interest: Kerr -McGee Oil Gas Onshore LP, as Unit Operator of the Cow Hollow Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E See the attached Exhibit "C -2" for a list of committed royalty and overriding royalty interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E" November 1, 1965 Not recorded Township 22 North, Range 112 West, 6 P.M. Section 4: SW /4SW /4 Lincoln County, Wyoming Containing 40 acres, more or less, among other lands. Kerr -McGee Oil Gas Onshore LP, as Unit Operator orthe Cow Hollow Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E See the attached Exhibit "C -2" for a list of committed royalty and overriding royalty interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E 12.5% Parties BP America Production Company EOG Resources, Inc. EOG Resources, Inc. Cabot Oil Gas Corporation Chevron U.S.A. Inc. Before Tanks 00.00000% 55.00001% 0.78947% 21.05262% 23.15790% After Tanks 11.00000% 44.00001 0.78947% 21.05262% 23.15790% Kerr -McGee Oil Gas Onshore LP, as Unit Operator of the Cow Hollow Federal Unit Agreement, is executing this communitization agreement on behalf of the above committed working interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E See the attached Exhibit "C -2" for a list of committed royalty and overriding royalty interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E Overriding Royalty Owner: Kerr -McGee Oil Gas Onshore LP, as Unit Operator of the Cow Hollow Federal Unit Agreement is executing this communitization agreement on behalf of all committed interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E See the attached Exhibit "C -2" for a list of committed royalty and overriding royalty Shute Creek 13 -04 10 Pooling Clause: None Tract No. interest owners in the Cow Hollow Federal Unit Frontier Formation Participating Area "E" RECAPITULATION No. of Acres Committed Percentage of Interest in Communitized Area 1 (Shute Creek Federal Unit Frontier Formation Participating Area "A 80.00 50.0000% 2 (Shute Creek Federal Unit Frontier Formation Participating Area "A 40.00 25.0000% 3 (Cow Hollow Federal Unit Frontier Formation Participating Area "E 40.00 25.0000% Total 160.00 100.0000% 000505 Shute Creek 13 -04 11 BONNIE A. VINZANT CONSTANCE B. CARTWRIGHT KRUEGER CO. LAMONTAGNE CO. MINERALS MANAGEMENT SERVICE ROYALTY CLEARINGHOUSE BP AMERICA PRODUCTION COMPANY CASPER COLLEGE FOUNDATION MARVIN WOLF CARL W. KLAENHAMMER TRUST PINECREST PARTNERS LP STOVALL OIL COMPANY SARAH C. WENCEL CHARLENE L. COOMBS JAMES P. TAYLOR REMORA OIL COMPANY LAWRENCE H. WOLF WENDY WOLF KAUFMAN KEY PRODUCTION COMPANY DONALD JAMES TOLAN WILLIAM R. TOLAN DARRA TOLAN CAROLYN ODDO WANDA FOSTER PAPI H. M. KLAENHAMMER RUTH R. ELLBOGEN TRUST ERIC A. WHITE R. K. O'CONNELL RICHARD ALTMAN AND CO. ROEC MAGIC M R LLC LAVINIA SCHREUDER TRUST DRUCKMAN PROPERTIES LLC LAWRENCE J. BRADSHAW ESTATE TERRY HILLIS VIRGINIA C. SIMPSON MAHONEY BARBARA A. SIMPSON PATRICIA SIMPSON ELIZABETH SIMPSON ZUBKOFF CATRON TRUST MARGARET C. HOSE ESTATE MADELYN L. MILES EXHIBIT "C -1" TO COMMUNITIZATION AGREEMENT DATED EFFECTIVE SEPTEMBER 1, 2004 TOWNSHIP 22 NORTH, RANGE 112 WEST, 6 P.M. SECTION 4: SW /4 LINCOLN COUNTY, WYOMING. List of Royalty and Overriding Royalty Interest Owners Committed to the Shute Creek Federal Unit Frontier Formation Participating Area "A" 000506 17 ,f°" 1� c- cr 1( y Shute Creek 13 -04 12 CONSTANCE B CARTWRIGHT MATHEW DAVIS WOLF CASPER COLLEGE FDN MARK DANIEL WOLF EOG RESOURCES INC DIANE R. WOLF CARL W KLAENHAMMER TRUSTEE STOVALL OIL CO. H M KLAENHAMMER REV TRUST RUTH R. ELLBOGEN TRUST KRUEGER AND COMPANY VINCENT L. WHITE LAMONTAGNE AND COMPANY R. K. O'CONNELL FRANK A MAU BP AMERICA PRODUCTION CO. WILLIAM P MAU FAMILY REV TRUST SARAH C WENCEL MINERALS MANAGEMENT SERVICE CHARLENE L COOMBS KATHRYN SMITH JAMES P TAYLOR MARVIN WOLF ROYALTY CLEARINGHOUSE PTRNSHP PINECREST PARTNERS L P EXHIBIT "C -2" TO COMMUNITIZATION AGREEMENT DATED EFFECTIVE SEPTEMBER 1, 2004 TOWNSHIP 22 NORTH, RANGE 112 WEST, 6 P.M. SECTION 4: SW/4 LINCOLN COUNTY, WYOMING. List of Royalty and Overriding Royalty Interest Owners Committed to the Cow Hollow Federal Unit Frontier Formation Participating Area "E" 000'07 Shute Creek 13 -04 13