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HomeMy WebLinkAbout868496Form 3100-11 UNITED STATES r� (June lvslx5 BUREAU OF LAND MANAGEMENT 02041 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 (ease 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 I. Name Street City, State, Zip Code 2. This application/offer /lease is for: (Check only One) a 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.- WY -9502- .5 /z *Sale Date (m/d/y) 2 7 95 SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE. T. R. Meridian State County Amount remitted: Filing fees 75.00 3. Land included in lease: T. (Continued on reverse) READ INSTRUCTIONS BEFORE COMPLETING KAY PAPULAK 416 10th Avenue Salt Lake City, Utah 84103 Type and primary term of lease: fX Noncompetitive lease (ten years) Competitive lease (five years) El Other y Z.k 1'967 n Rental fee /L& 4 l DO NOT WRITE BELOW THIS LINE R. Meridian State County SEE ATTACHED 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. THE UNITED STATES OF AMERICA LAND EXAMINER (Title) EFFECTIVE DATE OF LEASE Serial No. Future rental payments must be made on or before the anniversary date to: Minerals Management Service Royalty Management Program P.O. Box 5640 Denver, CO 80217 BOOK_ 42 PR PAGE 4 3 9 J Y sf A S p 75- r r ning fiver) REU_1'!ED 61 Total acres in lease Rental retained s MAR 0 5 1995 APR 0 1 1995 (Date) LESSEE 4. (a) Undersigned certifies that (1) offeror is a citizen of the United States. an association of such citizens: a municipality; or a corporation organized 4d014 laws°tirilie•Unitcif Cates or of any State or Territory thereof; (2) all panics holding an interest in the offer ar in compliance with 43 CFR 31(X1 and the leasing authorities; (3) offeror's cfYptgcablc intrests,' directantlindirect in either public domain or acquired lands do not exceed 246.080 acres in Federal oil and gas leases in the same State. of which not more than 200,(08) acres are held under option. or 3(0,(00 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 concern ing 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 (ease holdings as required by sec. I7(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 (case, 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 least. The offeror further agrees that this offer cannot be withdrawn, either in whole or in pan, unless the withdrawal is received by the proper 13LM State Office before this lease, an amendment to this lease. or a separate least, 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 snakes it a crime for any person knowingly and willfully to make to any Department or agency of the United States false, fictitious or fraudulent statements or representations as to any matter within its jurisdiction. Duly executed this 8th February 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 (case, 51.50; for primary term; thereafter S2.00; (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 regulations' on production removed or sold. Royalty rates are: (a) Noncompetitive lease, 121/2%; (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 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 Tess than the rental which otherwise would be required for that lease year shall be payable at the end of each tease 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 Toss or waste is due to negligence on the put 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. 1 Bonds —A bond shall be filed and maintained for lease operations as required under regulations. Sec. 4. Diligence, rate of development, unitization, and drainage —I ess 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 (here 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 Icssor. Sec. 5. Documents, evidence, and inspection Lessee shall file with proper office of lessor, not later than 30 days after effective date thexoof, any contract or evidence of other arrangement for sale or disposal of production. At such times and in such form as Icssor 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 shat keep a daily drilling record. a log, information on well surveys and tests, and a record of subsurface investigations and fumis:t 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 wilts, improvements, machinery, and fixtures thereon, and all books, accounts, maps, and records relative to operations, surveys, or investigations on or in the leased lands. I ess-P shall maintaincopies of all contracts, sales agreements, accounting records,: and documentation such as billings. invoices, or similar documentation that supports LEASE TERMS 19 5 4 Kay •u1ak (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 —I Parr 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 casements 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 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 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 ordcrs of the Secretary of Labor issued pursuant thereto. Neither lessee nor 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, subjtxt 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 paving quantities. or the lease is committed to an approved cooperative or unit plan or communit nation 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 successort -in- interest —Each obligation of this lease shall extend to and bc binding upon, and every benefit hereof shall inure to the heirs, executors. administrators, successors, beneficiaries, or assignees of the respective parties hereto. .0'0.S.. Gun4rnmem Printing OH ice: 1988 573.017/96009 AqunoD UZOZuT'j ZM 6ZO •T1V ZZO !MS'MNZM OZO 'oas AM 'Idd 1 1490 'MOSII I 'NO£ZO'Z sazoy 000 1965£T19XM 0668496 MULTIPLE MINERAL DEVELOPMENT STIPULATION 4.12 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. •(aearm eos ;ens Trtuuaaed oa paatmtT aq Xrm ao saoanos aearm Traemagda pus auelatmaaaut gaoq apnTout .Cum „wear us.tardta ao /pus aearm eor ;ens„ '•e•t) TanaT piet; eqa au pearaut'ap aq asnm uaaauoo 3o spotaed amta pus sreas Ts.oTgds.a2oa2 'aeAemog °a'gwTTrnr uotarmao3uT asaq aqa uodn pass.q pagst'grase uaaq anBq (alarm moa3 laa3 00S rtaaatao pTogsaaga 0t3ToadS •uotaor aqa 2utztaogans uagM Ts.noaddr ao3 uotatpuoo r amooaq pus auemdoTanap oa aotad an000 rum uotastao2au sTu •saosdmt paasdtotaur 3o uotar2Tatm ao3 uwTd a'gradaoor us as. antaar (vwS) tCoue2r auemadsusm aoe;ans eqa pus entaraueseadaa pearaTsep aqa ao eaaatmaad age Ttaun ao sseTun peatgTgoad aq Tum seTatntaor dutganas -p aor;ans 'astxa suotatpuoo anogs aqa 3o aaom ao euo uegm arga (saoaraedo 'saaalTmaad 'saassaT Tgtauaaod) setaard peaseaaaut mao;ut oa sT aotaou sTga 3o auaaut agy ST YIHa 17V Oz SSI'IaaV SOIION SIHZ °sSutTlemp peTdn000 3o eTTm *7 /T uTga ?M T 'OM 3OI1ON 3SVWI °auaoaed SZ 3o ssaoxa ut sedoTS 'S •(seuTTaamod 'sautTadtd 'sproaTTs.a 'speoa 'siCrmg9tq earls pus -s n e' Xrm- 3o- sag2ta 2utastxe aegao 3o aaa3 OOZ Pus siCrtg2tq earasaaaui 3o a OOS UTIPTM •an000 oa £Tani ?T sT a emrp pagsaaarm uagM ao paaranass sT Tstaaarm T ?os aqa uagM spotaad 2utanp ao Trtaaarm uezoa3 gaps uoTlonaasuo0 •sraar urtardta ao /pus aaarb aos3ans 3o 4 005 u ?qa ?M 'Z •T •s1Ta 2utonpoad 3o uotaraedo puma aourualu -Bm aqa ao3 aprm aq TT ?M suotaotaasaa pesodmt oa suoTaroT3 ?pom eartadoaddy •peaTgTgoad 'Xas.ssaoau XTaanTosgr 3T 1 a0 peTToaauoa 4CTaotaas aq TTTm steer Trtoeds qons uTgaTm Xourdn000 ao asn aor3ans •MoTeq p9T3 ?3uapT aas stair TrToads aTgTssoa •seoanosea aagao ao /put aor3ans oa armrp auenaad oa uotauaaar Trtoads aatnbea Xem ao 'sasodand Trtoads ao3 pepeau aq Acrm 'sanTrn Trtoeds utrauoo tCBm arga suotarIndtas asraT ICq passaappB XTTrot3to aou ss.aar apnTout Xrm asBaT s ?qa uTgaTm spur' au •s4Csp 09 oa dn ao3 sataTATaor aourganastp eor3ans 2utatgtgoad put 'pTogassaT aqa 33o aou anq 'slalom 00Z oa dn suotaraado pesodoad SutasooTea eatnbea 4Crm gotgb 'seansram uoTarmrToaa Trull purse mtaeaut 3o uotaroT3Toads puB 'suotaBaedo 3o 2utmta 'setaTIToB3 3o u2Tsep 10 2utats 3o uoTaso ?3tpom 'Oa peatm -T aou ear anq 'apnTout ICem seansram eTgvuoSBaa goes •pasodoad aas suoTaraedo amta aqa a8 suoTar'ndtas assaT ut passeappB aou sawn pus. 'sesn purr 'sanTBA aoanosea aegao oa saosdmT esaanpB aztmtutm oa saanssam aTquuossea eatnbaa XBm aaoT33o peztaoganB aqa `(IT 00T£ o3 b1'Ig) asBaT aqa 30 small pub Z T'TOT£ 2IID uotar'n2911 aapun 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 414 WYW135961 (2) as mapped on the Kemmerer RMP Stipulations Overlay located in the Kemmerer Resource Area office; For the purpose of (reasons): (3) protecting big game crucial 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.) ('OZ8Z Pus OS6T TSnusyl Sd 10 TOTE pus 4 'Snusyl Y1-Ig aas 'uoTzs'ndTas sTIP go asn uo aouspTn$ ao3) °sausgo dons Jog suoTsTnoad Azols aaJ alp zo /pus usTd asn pus' aqi glTM aouspa000s uT apsw aq TTim uoTas'ndTJs sTgp o3 sa2usg3 Xuv °3s2Tgsq aaluTM Gila ausJaodmT 3o ssoT aql 2uT1uanaad pus '1CJT'unb TulTquq 2uTloaload `ssaoos aaauTM $uTJTwTT (E) :aoT33o saay aoanosag aaaammax aq3 uT palsoo' 4Cu'aan0 suoTas'ndfls dy72I aaaammax 8q4 uo paddsm SE (Z) •saTITTT 3o aousualuism pus `suoTTsaado `quamdo'anap apn'ouT Cum sTgy •sJosdmT palsdTz- us 3o uoTgsgT1Tm Jog us'd a'quJdaoos us is aATaas JCouas 2uT2susm aougans pus aolsaado aqp ssa'un paJTgTgoad ao paJOTalsaa aq TT aausa aaJuTM AT9 TrTonao uTglTM asn ao fousdn000 aougans (T) •s2uTsa4suoo 2uT2szado TwTaads 2up oTTo3 aq2 o2 2oacgns sT asn ao Aousdn000 90r31US T96S£TMAM ASO MOI L'PIldIZS Ssn a3d3'If1S Q8'nOITZH00 :3o asodand aq2 ao3 :MoTaq pagTaosap spur' aq2 u0 08684% NOTICE TO LESSEE 4 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.