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HomeMy WebLinkAbout870762Form 3100-11' (October 1992) 1. Name City, State, Zip Code 2) J 14", ajr, v 0 Zo Z 3. Land included in lease: (Continued on reverse) ;UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT OFFER TO LEASE AND LEASE FOR OIL AND GAS READ INSTRUCTIONS BEFORE COMPLETI avp T. R. -7 O✓1 2g: /S i/ S ..e e..f" /pact z, 3, 32-: ,c)", SE S -oh 33 At Amount remitted: Filing fee 7s. Rental fee 3 e ‘40 8 7 0 7 6 2 DO NOT WRITE BELOW THIS LINE SAME LAND DESCRIPTION AS ITEM 2 Meridian State THE U by County r OOK4580 _PR PAGE_ 2 TATES OF AMERICA sedal '-1.5 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 Future rental payments must be made on or before the anniversary date to: Street 6 fe s 1 4.64,..4,■ tbl dU.AIL.s� 0 412 Z, Minerals Management Service Royalty Management Program P.O. Box 5640 Denver, CO 80217 2. This application/offer /lease is for: (Check only One) i$ PUBLIC DOMAIN LANDS ACQUIRED LANDS (percent U.S. interest Surface managing agency if other than BLM• Unit/Project *Sale Date (m/d /y)• Legal description of land requested: *Parcel No. 8 •SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE. T. 2. V at) R. kJ Meridian 6'V' A .4./. State (.4,) I. County 4.• i7 RECEIVED RECD IVECD LINCOLN COUNU. CL Total acres applied for ZJ�CC Total 3, tzitlfPft P11 1 I EREit,� tvil c.n (19 :.v 0) Total acres in lease Rental retained 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: 11 Noncompetitive lease (ten years) Competitive lease (ten years) Other Zoo (Si..: Officer) DEC 2 21000 t Chief, Leasable Minerals Section (Title) JAN (Date) JA EFFECTIVE DATE OF LEASE N 1 70lA 1 4. (a) Undersign (1) offeror is a citizen of the United States; an associati itizens; a municipality; or a corporation organized under e United States or of any State or Territory I parties holding an interest in the offer are in compliance R 3100 and the leasing authorities; (3) offeror cha geabl sect and indirect, in each public domain and acquired lands separately in the same State, do not exceed 246,080 acres in oil and gas leases (of which up to 200,000 acres may be in oil and gas options), or 300,000 acres in leases in each leasing District 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 thin 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 offer was filed but omitted for any reason from this lease. The offeror further agrees that thif 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 covers 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 agg.tplse, fictitious or flsaudulent statements or representations as to any matter within its j ion. Duly executed this s day of v< f N 08707€•Z 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% (b) Competitive lease, 1254 (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 cafidition 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 leas 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 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 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 (Signature ossee or Attorney -in -fact) 233 costa 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 fac ities, timing of operations, and specification of interim and final 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 immediately 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 parsons 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 that 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 s ibcontractors 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 thetontinued 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. 'U.S. GOVERNMENT PRINTING OFFICE: 1998- 873. 004/41123 08'0`0% MULTIPLE MINERAL DEVELOPMENT STIPULATION 234 WYVV152102 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. 0870762 LEASE NOTICE NO. 1 235 IYW152102 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. SPECIAL LEASE NOTICE THREATENED, ENDANGERED, CANDIDATE, OR OTHER SPECIAL STATUS PLANT AND ANIMAL SPECIES The lease area may contain habitat for the threatened, endangered, candidate, or other special status plant and animal species listed below. Exploration and development proposals may be limited, or modifications required, if activity is planned within the habitat boundaries of a threatened, endangered, candidate, or other special status plant /animal species as it then exists. Upon receipt of a site specific proposal, the authorized officer will review current inventory records of each location and may require that further localized surveys be performed to assure no threatened, endangered, candidate (category 1 or 2), proposed, or other special status species are present. (Endangered Species Act of 1973 as amended, Sections 2 and 7.) SPECIES: Charadrius montanus (Mountain plover); 236 WYW152102 No surface use is allowed during the following time period(s). This stipulation does not apply to operation and maintenance of production facilities. (1) Nov 15 to Apr 30; On the lands described below: TIMING LIMITATION STIPULATION TLS (2) as mapped on the Kemmerer RMP stipulations overlay; For the purpose of (reasons): (3) protecting big game crucial winter range. 237 WYW152102 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.) 087016 TIMING LIMITATION STIPULATION TLS 238 No surface use is allowed during the following time period(s). This stipulation does not apply to operation and maintenance of production facilities. (1) Feb 1 to Jul 31; On the lands described below: (2) as mapped on the Kemmerer RMP stipulations overlay; For the purpose of (reasons): (3) protecting sage grouse nesting habitat. WYW152102 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.) 0870702 Surface occupancy or use is subject to the following special operating constraints. (1) Surface occupancy or use within 1/4 mile of the Sublette Cutoff of the Oregon Trail will be restricted or prohibited unless the operator and surface managing agency arrive at an acceptable plan for mitigation of anticipated impacts; On the lands described below: (2) as mapped on the Oregon /Mormon Pioneer National Historic Trails Management Plan; For the purpose of: (3) protecting historic trails. CONTROLLED SURFACE USE STIPULATION CSU 239 WYW152102 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.) U 162 CONTROLLED SURFACE USE STIPULATION CSU Surface occupancy or use is subject to the following special operating constraints. On the lands described below: (2) as mapped on the Kemmerer RMP stipulations overlay; For the purpose of: s 240 WYW152102 (1) Surface occupancy or use within crucial elk winter range will be restricted or prohibited unless the operator and surface managing agency arrive at an acceptable plan for mitigation of anticipated impacts. This plan may include development, operations, as well as the number, location, and maintenance of facilities; (3) limiting winter access, protecting habitat quality, and preventing the loss of important elk winter range. 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.) 0870 1604 NOTICE TO LESSEE 2"41 WY 1N152102 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 ofthis 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., anus- 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.