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Forai 3100 -11b
(October 199:)
1. Name
Street
City, State, Zip Code
3. Land included in lease:
T.
(Continued on reverse)
'TED STATES
DEPARTI iT OF TILE INTERIOR
BUREAU Or' LAND MANAGEMENT
OFFER TO LEASE AND LEASE FOR OIL AND GAS
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.C. 181
et seq.), the Mineral Leasing Act for Acquired Lands of 1947, as amended (30 U.S.C. 351 -359), the Attorney General's Opinion of April 2, 1941 (40 Op. Atty. Gen. 41), or the
MARTINEZ KIRK D
PO BOX 156
RHAME, ND 58651
0260N R 1110W
Sec. 028 NWNE,S2NE;
029 E2;
034 SWSW;
READ INSTRUCTIONS BEFORE COMPLETING
2 This application /offer /lease is for: (Check only One) J PUBLIC DOMAIN LANDS ACQUIRED LANDS (percent U.S. interest
Surface managing agency if other than BLM: Unit /Project
Legal description of land requested: *Parcel No.:
*SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE.
T. R. Meridian State
Amount remitted: Filing fee Rental fee
Meridian
RECEIVED 1/14/2013 at 2:54 PM
RECEIVING 969027
BOOK: 802 PAGE: 613.
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
Other
DO NOT WRITE BELOW THIS LINE
Serial No. f G n
1J I_f
WYW173032
*Sale Date (m/d /y)•
County
GEr. IFIED
to be a tru nd ;•omparative copy
of the icial records on file
U OF LAN r ';AGEMENT
Total acres applied for
Total
06th State WY County Sweetwater Lincoln
Total acres in lease
Rental retained
N R. 1NAL
180.000
720.00
This lease is issued granting the exclusive right to drill for, mine, 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 authority. Rights granted are 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 issuance, and to 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.
Type and primary term of lease: THE UNITED STATES OF AMERICA
Noncompetitive lease (ten years) by e .freettit&S/
(Signing Officer) r)n J UL 25 2 006
Ml Competitive lease (ten years) Chief, Branch of Fluid Miners }c Adjudication
(Title) AUG I 2006 (Date)
EFFECTIVE DATE OF LEASE �J
qn
„..,pm,,.y ,puiuuo orgamzeu under tne taws of me United states or of any
State or Territory ther.soi:.4 0, 1, n w a
arties holding an interest in the offer are in compliance 3100 and the leasing authorities; (3) offeror's chargeabl"`'°"'°”" °°^°9rect and indirect, in each
public domain and a s separately in the same State do not exceed 246,080 acr
d gas leases (of which up to 200,000 acres may be in oil ons), or 300,000 acres in
leases in each leasing uistrict in Alaska of which up to 200,000 acres may be in options, (4) offeror is not considered a minor under the laws of the State in which the lands covered by this offer are
located; (5) offeror is in compliance with qualifications concerning Federal coal lease holdings provided in sec. 2(aX2XA) of the Mineral Leasing Act; (6) offeror is in compliance with reclamation
requirements for 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 sec. 41 of the Act.
(b) Undersigned agrees that signature to this offer constitutes acceptance of this lease, including all terms, conditions, and stipulations of which offeror has been given notice, and any amendment
or separate lease that may include any land described in this offer open to leasing at the time this o ffer was filed but omitted for any re from' this7e The offeror further agrees that this offer
cannot be withdrawn, either in whole or in part, unless the withdrawal is received by the proper BLM State Office before this lease, an amendment to this lease, or a 'separate lease, whichever covets
the land described in the withdrawal, has been signed on behalf of the United States.
This offer will be rejected and will afford offeror no priority if it is not properly completed and executed in accordance with the regulations, or if it is not accompanied by the required
payments. 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 United States any false, fictitious or fraudulent statements
or representations as to any matter within its jurisdiction.
Duly executed this day of 19
Sec. 1. Rentals Rentals shall be paid to proper office of lessor in advance of each lease year.
Annual rental rates per acre or fraction thereof are:
(a) Noncompetitive lease. $1.50 for the first 5 years; thereafter $2.00;
(b) Competitive lease, $1.50; for the first 5 years; thereafter $2,00;
(c) Other, see attachment, or
as specified in regulations at the time this lease is issued.
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.
Failure 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
law. Rentals may be waived, reduced, or suspended by the Secretary upon a sufficient showing
by lessee.
Sec. 2. Royalties— Royalties shall be paid to proper office of lessor. Royalties shall be computed
in accordance with regulations on production removed or sold. Royalty rates are:
(a) Noncompetitive lease, 12'1
(b) Competitive lease, 121/2%;
(c) 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 prernises
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 that 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
above royalty rates may be reduced, for all or portions of this lease if the Secretary determines
that such action is necessary to encourage the greatest ultimate recovery of the leased resources,
or is otherwise justified.
An 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).
Lessee shall be liable for royalty payments on oil and gas lost or wasted from a lease site when
such loss or waste is due to negligence on the part of the operator, or due to the failure to comply
with any rule, regulation, order, or citation issued under FOGRMA or the leasing authority.
Sec. 3. Bonds —A bond shall be filed and maintained for lease operations as required under
regulations.
Sec. 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 cornpensatory 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
be 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 form 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,
and 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 billings, invoices, or similar documentation that supports
LEASE TERMS
00613-4
(Signature of Lessee or Attorney -in -fact)
costs claimed as manufacturing, preparation, and /or transportation costs. All such records shall
be maintained in lessee's accounting offices for future audit by lessor. Lessee shall maintain
required records for 6 years after they are generated or, if an audit or investigation is underway,
until released of the obligation to maintain such records by lessor.
During existence of this lease, information obtained under this section shall be closed to
inspection by the public in accordance with the Freedom of Information Act (5 U.S.C. 552).
Sec. 6. Conduct of operations— Lessee 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 land 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, modification to siting or design of facilities, timing
of operations, and specification of interim and fmal reclamation measures. Lessor reserves the
right to continue existing uses and to authorize future uses upon or in the leased lands, including
the approval of easements or rights -of -way. Such uses shall be conditioned so as to prevent
unnecessary or unreasonable interference with rights of lessee.
Prior to disturbing the surface of the leased lands, lessee shall contact lessor to be apprised
of procedures to be followed and modifications or reclamation measures that may be necessary.
Areas to be disturbed may require inventories or special studies to determine the extent of impacts
to other resources. Lessee may be required to complete minor inventories or short term special
studies under guidelines provided by lessor. If in the conduct of operations, threatened or
endangered species, objects of historic or scientific interest, or substantial unanticipated
environmental effects are observed, lessee shall inunediately contact lessor. Lessee shall cease
any operations that would result in 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 of extracting or having extracted helium
from gas production in a manner specified and by means provided by lessor at no expense or
loss to lessee or owner of the gas. Lessee shall include in any contract of sale of gas the provisions
of this section.
Sec. 9. Damages to property— Lessee shall pay lessor for damage to lessor's improvements,
and shall save and hold lessor harmless from all claims 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 under laws of the State or the United States; accord all employees
complete freedom of purchase; pay all wages at least twice each month in lawful money of the
United States; maintain a safe working environment 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 than production is sold at reasonable prices and to prevent
monopoly. If lessee operates a pipeline, or owns 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 28 of the Mineral Leasing Act of 1920.
Lessee shall comply with Executive Order No. 11246 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 of 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 or abandonment, reclaim the land
as specified by lessor and, within a reasonable period of time, remove equipment and
improvements not deemed necessary by lessor for preservation of producible wells.
Sec. 13. Proceedings in case of default —If lessee fails to comply with any provisions of this
lease, and the noncompliance continues for 30 days after written notice thereof, this lease shall
be subject to cancellation unless or until the leasehold contains a well capable of production
of oil or gas in paying quantities, or the lease is committed to an approved cooperative or unit
plan or communitization agreement which contains a well capable of production of unitized
substances in paying quantities. This provision shall not be construed 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 cancellation 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- interest —Each obligation of this lease shall extend to and be
binding upon, and every benefit hereof shall inure to the heirs, executors, administrators,
successors, beneficiaries, or assignees of the respective parties hereto.
UNITED STA',
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
COMPETITIVE OIL AND GAS OR
GEOTHERMAL RESOURCES LEASE BID
30 U.S.C. 181 et seq.; 30 U.S.C. 351 -359;
30 U.S.C.1001 -1025; 42 U.S.C. 6508
State
wy
AMOUNT OF BID (Se
TOTAL BID
PARCEL NUMBER
THE BID IS FOR (Check one):
Oil and Gas Parcel Number to 0606 10?
Geothermal Parcel Number
Name of Known Geothermal Resource Area (KGRA)
The appropriate regulations applicable to this bid are: (1) for oil and gas leases -43 CFR 3120; (2) for National Petroleum Reserve Alaska (NPR -A)
leases -43 CFR 3132; and (3) for Geothermal resources leases -43 CFR 3220. (See details concerning lease qualifications on reverse.)
I CERTIFY THAT I 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.
l6 /K ,Z3 •✓k 2
Print or Type Name of Lessee
Po o)C l SZ
Address of Lessee
R44-me ND
.fi6O/
City State Zip Code
INSTRUCTIONS FOR OIL AND GAS BID
(Except NPR A)
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 be 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 bidder 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 bid may be executed (signed) before the oral auction. If signed
before the oral auction, this form cannot be 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.
INSTRUCTIONS
FORM APPROVED
OMB NO. 1004 -0074 0 0
Expires: September 30, 2006
e Instructions below)
PAYMENT SUBMITTED
WITH BID
Date of sale
0J Ot; —c
Sign ure o Lessee or Bidder
WY
I I i 1,' r Ale
BUR OF LAND NAGEMENT
CE !FED
t0 be a true n comparative copy
of the cial records on file
INSTRUCTIONS FOR GEOTHERMAL OR
NPR -A OIL AND GAS BID
1. 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 be 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 and Title 43 U.S.C. Section 1212 make 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.
(Continued on page 2) Form 3000 -2 (April 2004)
OFFICIAL FILE COPY
QUALIFICATIONS
For leases that may be issued as a result of this sale under the Mineral
Leasing Act (The Act) of 1920, as amended, the oral bidder must (1) Be
a citizen of the United States an aSsocition'(indlutiing partnerships and
trus(s) Of Sikh CitiienS; municipality; Or a torpOratifin organized under
the laws of the United States or of any State or Territory thereof; (2) Be
in compliance with acreage limitation requirements whereinthe bidder's
interests, direct and indirect, in 'oil and gas leases in the State identified
do not exceed 246,080 acres each in public domain or acquired lands
including acreage Lveredby this bid, of which not more than 290,009
acres are under oPtions: If this bid is submitted for lands in Alaska the
bidder's holdings in"eacii Of the Alaska leasing districts not exceed
300,000 acres, of which no more than 200,000 acres are under options in
each diStrict; (3) Be in' compliance with Federal •coal lease holdings 'as
provided in sec. 2(a)(2)(A) cif the Act; (4) Be in Compliance:with
reclamation reqUirenitentS all Federal oil and gaStoldings "as
required by sec[17 of the 4t;(5) Not be in Violation of sec441 of the Act; .f
and (6) Certify that all partieS ininterest in this bid arein compliance
with 43 CFR Groups 3000. and 3100 and the leasing" authorities cited
herein.
The Privacy Act of 1974 and the regulation in 43 CFR 2.48(d) provide
that you be furnished the following information in conneCtion, with
with
information required by this. bid for a Competitive Oil and Gas Or
GeollteTitrior
AUTRQR!T6U.S.C. AI' Oleg.; 30 U.S.C. 351-359; 30 U.S.C.
1001-1625; 42 tr.S.C. 6:508
".7"")
PRINCIPAL PURPOSE: The information is to be used to process your
bid.
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 etseq.) 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 requet is required to obtain a benefit.
BLM would like you to know that you do not have to respond to this or any other Federal agency-sponsored information collection unless it displays a currently valid OMB
control number.
BURDEN HOURS STATEMENT
Public reporting burden for this form is estimated to average 2 hours per response including the time for reviewing instructions, gathering and maintaining data, and
completing and reviewing the form. Direct comments regarding burden estimate of any other aspect of this form to U.S. Depaitment of the Interior, Bureau of Land
Management, (1004-0074), Bureau Clearance offic (WO-630), 1620 L Street, Mail Stop 401LS, Washington, D.C. 20036
For leases that may be issued .as a result of this sale under the
Geothernial'Steam Act Of 1970,as amended,- bidder Must:W-13e a-
Citizen Of the United States; an association ofstich'citiiens; a miinicipalitY;
or a corporation rgailized under the laws of th&United:States cirof anY
State or Territory thereof; and (2) Be in compliance with acreage
limitation requirements Wherein the, bidder's interests, direct and
indirect, do not exceed 51,200 acres: and (3) Certify that all parties in
interest in this bid are in compliance with 43 CFR Group 3200 and the
leasing authority cited herein.
For leases that may be issued as a result Of this sale under,the
Department of the Interior Appropriations Actof 1981; the bidder
must: (1) Be a citizen or national of the United States; an alien laWfully,
admitted for permanent residence; .a private, public publicorrnunicipal
corporation organized under the laws of the United States or Of any
State or Territory thereof; an association of stichCitizens,uatiOrials,
resident aliens or Private; public or municipal porpOratiOnS, and (2),
Certify that all parties in interest in this bid are in compliance With 43
CFR Part 3130 and the leasing atithoritieS cited herein.
NOTICE
ROUTINE USES: (1) The adjudication of the bidder's right to the
reSatifteS which this bid iS`rilade. (2) DottirrientatiOnfoeptiblio
information. (3) Transfer to appropriate Federal agencies when comment
or concurrence is required prior to granting a right in public lands or
resources. (4)(5) Information from the record and/or the record will be
transferred to appropriate Federal, State, local or foreign agencies,
when relevant to civil, criminal or regulatory investigations or prosecu-
tions.
EFFECT OF NOT,F.."ROVIIDIR-G INFORMATION: Disclosure of the
information is voluniaiy. if all the.infOnation is not provided, your bid
may be rejecta--
MULTIPLE MINERAL DEVELOPMENT STIPULATION
Operations will not be approved which, in the opinion of the authorized officer, would
unreasonably interfere with the orderly development and/or production from a valid existing
mineral lease issued prior to this one for the same lands.
THIS STIPULATION APPLIES TO ALL PARCELS
WYW173032
a
0 0 6
ro-
TI F D
to he rue and comparative copy
he fIcial records on fil
U 0 LA �P )r`ANAGEMENT
LEASE NOTICE NO. 1
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.
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.
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).
5. Within 1/4 mile of occupied dwellings.
6. Material sites.
GUIDANCE:
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).
The referenced oil and gas leases on these lands are hereby made subject to the stipulation that the exploration or
drilling activities will not interfere materially with the use of the area as a materials site /free use permit. At the time
operations on the above lands are commenced, notification will be made to the appropriate agency. The name of the
appropriate agency may be obtained from the proper BLM Field Office.
THIS NOTICE APPLIES TO ALL PARCELS
O U
WY -7 3032
0 0 6 1 7
E tgiED
to be a tr ue d comparative copy
of the iciai records on file
BACKGROUND:
STRATEGY:
GUIDANCE:
LEASE NOTICE NO. 2
THIS NOTICE APPLIES TO ALL PARCELS
to be 8 true
of the o
VYW173032
The Bureau of Land Management (BLM), by including National Historic Trails within its National Landscape
Conservation System, has recognized these trails as national treasures. Our responsibility is to review our strategy
for management, protection, and preservation of these trails. The National Historic Trails in Wyoming, which
include the Oregon, California, Mormon Pioneer, and Pony Express Trails, as well as the Nez Perce Trail, were
designated by Congress through the National Trails System Act (P.L. 90 -543; 16 U.S.C. 1241 -1251) as amended
through P.L. 106 -509 dated November 13, 2000. Protection of the National Historic Trails is normally considered
under the National Historic Preservation Act (P.L. 89 -665; 16 U.S.C. 470 et seq.) as amended through 1992 and the
National Trails System Act. Additionally, Executive Order 13195, "Trails for America in the 21 Century," signed
January 18, 2001, states in Section 1: "Federal agencies will...protect, connect, promote, and assist trails of all types
throughout the United States. This will be accomplished by: (b) Protecting the trail corridors associated with
national scenic trails and the high priority potential sites and segments of national historic trails to the degrees
necessary to ensure that the values for which each trail was established remain intact." Therefore, the BLM will be
considering all impacts and intrusions to the National Historic Trails, their associated historic landscapes, and all
associated features, such as trail traces, grave sites, historic encampments, inscriptions, natural features frequently
commented on by emigrants in joumals, letters and diaries, or any other feature contributing to the historic
significance of the trails. Additional National Historic Trails will likely be designated amending the National Trails
System Act. When these amendments occur, this notice will apply to those newly designated National Historic
Trails as well.
The BLM will proceed in this objective by conducting a viewshed analysis on either side of the designated centerline
of the National Historic Trails in Wyoming, except, at this time, for the Nez Perce Trail, for the purpose of
identifying and evaluating potential impacts to the trails, their associated historic landscapes, and their associated
historic features. Subject to the viewshed analysis and archaeological inventory, reasonable mitigation measures
may be applied. These may include, but are not limited to, modification of siting or design of facilities to
camouflage or otherwise hide the proposed operations within the viewshed. Additionally, specification of interim
and fmal reclamation measures may require relocating the proposed operations within the leasehold. Surface
disturbing activities will be analyzed in accordance with the National Environmental Policy Act of 1969 (P.L. 91-
190; 42 U.S.C. 4321 -4347) as amended through P.L. 94 -52, July 3, 1975 and P.L. 94 -83, August 9, 1975, and the
National Historic Preservation Act, supra, to determine if any design, siting, timing, or reclamation requirements are
necessary. This strategy is necessary until the BLM determines that, based on the results of the completed viewshed
analysis and archaeological inventory, the existing land use plans (Resource Management Plans) have to be
amended.
The use of this lease notice is a predecisional action, necessary until final decisions regarding surface
disturbing restrictions are made. Final decisions regarding surface disturbing restrictions will take place
with full public disclosure and public involvement over the next several years if BLM determines that it is
necessary to amend existing land use plans.
The intent of this notice is to inform interested parties (potential lessees, permittees, operators) that when any oil and
gas lease contains remnants of National Historic Trails, or is located within the viewshed of a National Historic
Trails' designated centerline, surface disturbing activities will require the lessee, permuttee, operator or, their
designated representative, and the surface management agency (SMA) to 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.
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BUS LAND 'AGEMENT
SPECIAL LEASE STIPULATION
This lease may be found to contain historic properties and /or resources protected under
the National Historic Preservation Act (NHPA), American Indian Religious Freedom
Act, Native American Graves Protection and Repatriation Act, E.O. 13007, or other
statutes and executive orders. The BLM will not approve any ground disturbing activities
that may affect any such properties or resources until it completes its obligations under
applicable requirements of the NHPA and other authorities. The BLM may require
modification to exploration or development proposals to protect such properties, or
disapprove any activity that is likely to result in adverse effects that cannot be
successfully avoided, minimized or mitigated.
THIS STIPULATION APPLIES TO ALL PARCELS
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BUR 'L tI 1P' GEMENT
Surface occupancy or use is subject to the following special operating constraints.
(1) The lease area may now or hereafter contain plants, animals, or their habitats determined to be threatened,
endangered, or other special status species. BLM may recommend modifications to exploration and
development proposals to farther its conservation and management objective to avoid BLM- approved activity
that will contribute to a need to list such a species or their habitat. BLM may require modifications to or
disapprove proposed activity that is likely to result in jeopardy to the continued existence of a proposed or listed
threatened or endangered species or result in the destruction or adverse modification of a designated or
proposed critical habitat. BLM will not approve any ground- disturbing activity that may affect any such species
or critical habitat until it completes its obligations under applicable requirements of the Endangered Species Act
as amended, 16 U.S.C. 1531 et seq., including completion of any required procedure for conference or
consultation;
On the lands described below:
(2) entire lease;
For the purpose of:
CONTROLLED SURFACE USE STIPULATION CSU
WYW173032
(3) protecting Amphispiza billineata (Sage sparrow); Brachylagus idahoensis (Pygmy rabbit); Lanius
ludovicianus (Loggerhead shrike); Oreoscoptes montanus (Sage thrasher); Centrocercus urophasianus (Greater
sage grouse).
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AU OF LAND NAGEMENT
NOTICE TO LESSEE
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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.
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