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4. (a) Undersign hat (1) offeror is a citizen of the United States; an assoc ch citizens; a municipality; or a corporation organized a of the United States or
of any State or Tel (2) all parties holding an interest in the offer are in con. 43 CFR 3100 and the leasing authorities; (3) offeror's'c rests, direct 4d indirect
in either public domain or acquired )ands do not exceed 246,080 acres in Federal oil and gas leases in the same State, of which not more than 200,000 acres are-'helii: under o'}ttibn, 9Th 300,000
acres in leases and 200,000 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 lands covered by this offer are located;
(5) offeror is in compliance with qualifications concerning Federal coal lease holdings provided in sec. 2(a)(2)(A) 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 offer w'as;fil biit: omitted for any reason from this lease. 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offer cannot be withdrawn, either in whole or in part, unless the withdrawal is received by the proper BLM State Office before this lease, an amendment to this lease, or a separate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
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 r shat
payments. 18 U.S.C. Sec. 1001 makes it a crime for any person knowingly and wlflfWIy to make to any Department or agency of the U
or representations es to any matter within its jurisdiction.
Duly executed this I t'Y day f 1
Y 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, 51.50; for primary term; thereafter 52.00;
(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 of 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 regtations on production removed or sold. Royalty rates are:
(a) Noncompetitive lease, 121/2%;
(b) Competitive lease, 12'
(c) Cher, 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 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
he regalia! 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
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, infonnation 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 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 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 tern 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 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 'rtteas1ntS'necessary'to protect the health and safety .of the public.
Lessor reserves lhe,rjgjtl to ensure that production is sold at reasonable prices and to prevent
monopoly. It lessee operates a' pipeline, or owns coniroliing..interest ins pipeline or a company
operatinga •Ptleline, pperated,>lcc to oil derived fro these leased lands,
lessee shall comply with section 28 of the Mineral `L' easing A m ct of 1820.
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 (3(1 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: 1988- 673 016/95010
or ifft,ts�ot accompanied hi the required
nets any {alyei fictitious or frau44rient
0 b G
ignature of Lessee' of Xuorney -in -fact)
WYW138663 600.000 Acres
T.0230N, R.1150W, 06th PM, WY
sec. 026 S2N2,E2SW,SE;
035 NWNE,SENE,NENW,E2SE;
Lincoln County
061
99
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NOIZV'InaIZS ammo-mac ThISNIK S'IJISZ11W
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t 4.11)N0
1. Slopes in excess of 25 percent.
LEASE NOTICE NO. 3.
2. Within 500 feet of surface water and /or riparian areas.
5. Within 1/4 mile of occupied dwellings.
6. Material sites.
GUIDANCE:
6'64
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.
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).
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 District Office.
3
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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:
065
WYW138663
(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 habitat.
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.)
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