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Form 3100-1lb U- gD STATES I Serial No.
(October199Z) DEPARTME OF THE INTERIOR JUL 1 7 2. .... .,- sxw ~0886
BUREAU OF LAND MANAGEMENT
OFFER TO LEASE AND LEASEFOR OIL AND GAS
Thc undersigned rreversel offers to lease.all oi' any 0f the lands in Item 2 that are available for lease pursuant lo the Mineral Leasing Act .of 1920, as amended and supplemented (30 U.S.C. Ifil
el seq. L the Mineral Leasing Act for Acquired Lands of 1947. as amended {30 U.S.C. 351-359L the Attorney General's Opinion bf April 2, 1941 (40 Op. Att}. Gen., 41'), or'the :
REAl} INSTRUCTIONS BEFORE COMPLETING> Future rental payments must be made
I Name PETRA~ EXPLORATION EEC , on or before the anniversary date to:
Minerals Management Service
Stree{ PO BOX 5083 Royalty Management Program
ci,y, Sate, ZipCo~e DENVER, CO 802175083 :" r.O. Box5640
· ' Denver, CO 80217
This application/offer/lease is ['or: rCheck only Onel ~3'~PUBLIC DOMAIN LANDS [] ACQUIRED· LANDS tpercent U.S, ~nteres!
Surface m~naging.agency.if'other than BLM: Unit/Project "' .
Legal description of land requested: 'Parcel No. *Sal~"~;~e' im')~i/y) ·
· SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE.
T. R. Meridian State
Amounl ~'emitted: Filing f~ee $
County
RE EIVE ......
'"' 4ZY "
LiNCO'Lfq COtJl'. .~'C{2ERK:. . . .....
'acres'.a2~%d:''/x;~,,. -,-- '" "'":"' ~''~ ......
To~
Renal fee $ To~l $
NOT WRITE BELOW THIS LINE ; .: . ~ :,..,..:.::.,:.
Land included in lease:
· o¢oN...
T.
;' SEC.
1150W
o28R
06th WY
Meridian
Ren{al 're{ained $ : 960.00:
This lease i~ 'i~sued gi-anting thd ekcl~si~e right'to drili fbi.: min~:, dxt?a~:i.'remove aiid disuse' of all the oll and ga~-'fe~cept helium) ifi-the'ian~'dd~cii~ in l~em' 3: t~ge~er wi~ ~d hght t6 bund
and main~m necessa~ improvements thereu~n for ~e te~ indicate. ~low. subjecl lo renewal or extensmn in accor~nce with ~e appropriate leasing au~ori~. Rights grant~ are subj~t to
applicable laws. the te~s. conditions, and a~ch~ sopulations of this lease, the Secrem~ of the Interior's'regulations and focal orders in effect as of I~se issuance and to regulations and fo~
orders her~fler pmmalgat~-when ~t-inconsistent wi~ lease, rights gra0t~ or s~cifi~ provisions of this l~se. - ·
NO~: T~s~~ ~gh bidder pursuant to his/her duly ex~uted bi6 or nomination form submitt~ under 43 C~ 3120 and is subj~t to the pro.aloha of that bid or
n~inatmn ~'~ s~l~ on t~s form.
Ty.a~dpfi~a~ ,e~*oflehse: ' T~U~STA ME~A
~ Noncom~titivelease (ten years) _./~v/ . .... --/I ~ %.~ -7. ·
~m~ti~:~5(te, y~*m) . Chief ,~s~le' .Miner.s. _., __ _ S~[i°n', ,
·'
~ ~er . EFFECTIVE DATE'OF'LEASE ...... .~ .... : ·
4. (a) Undersigned certifies that (1) offeror is a citizen of the United States; an ~sociation of such citizens; a municipality; or a corporation organized under the laws of:theiUnited smtes,6r of ~n
State or Territory thereof; (2) all parties holding an interest in the offer arc in compliance with 43 CFR 3100 and the leasing authorities; (3) orre,-oes chargeable intentS} Cli~t arid i.ndin:c/,,: i,:e~ch
public domaln and acquired lands separately in the same State do not exceed 246 080 acres in oil and g~ leases (of which up to 200,000 acres may be in oil and gm: opti0ns~ or 300,000 acres in
le~es in each leasing District in Alaalca 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
I°Cated; (5) offeror is in compliance with qualificatiom concerning Federal coal le.,ase holdings lXovided in sec. 2(aX2XA) of the Mineral 14,.'~.it~g Act; {6) o~ffer~r is in compliance with reclamation
requl .... nts for M1 Federal oil ,'md g~ lease holding ..... quired by sec. 17(g) of the Mineral Leasing Act; and (7) offeror is not in violation ~10t~e'e~.!~l. o.~.~31~e-~it~'~'}~
(b) Underaigned agrees that signature to this off .... titut .... prance of this lease including all terms condifi .... d ktii~Ulations of x~r~cl~ffer~[ h,'~ b~n~hotice: ,'md ....... d ....
or sep,'u-kt6 lease 'that tuffy include any land described in this offer open to leasing at [he~ time this-6ffer W~ fil~l but o~itted f~ any~ re~oo frc~m this i .... T~-~'~-~urth~
.... t be wlthd ...... ither in whole or in part, unless the withd .... 1 is received by the pm~er BLM Stale Offi~ befot:e th~s' eas~, ?,n:am6hd'&eht io~thi
the land described in the withdrawal., has been s gned on behalf o£ the United States. ~ ~ ~ ~ ~' .... / ' ·
.,:-o : .... ~' I~(::- ' ". ' : "~]'~',~, ~":'"~, "" ~' "',I - ( :"~:4";~ ..... ~ ,~ :- . '
This offer will he rejected an,d will afford offeror no prmrny tf it is not properly completed and executed in accoidan~:;;~with'thi~' regulations,' or if it is riot :a~companied by the required
payments, la U.S.C. S~. 1001 makes it a crime for any person knowingly and willfully to make to any De'~u-tment or ege~cy of the United S{~ any false, fictitiogs' or fraudnient statements
'' ~r'~epre~htati0n~ as tO.any m.tter within its jurisdiction. ' %' " ' ~::' ~ 3
' : ' '~':'::" P:'::';" ' ': ' ;~; :~:q; ' (Sil~namre of Lessee or Attorney-in-fact)
Sec. i'. Rentals--ReCitals shall be ~aid to proper office of le .... in advance of each' lease y ....
Annual renm! rat~s 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 anachment, 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 or' 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 anniversa~ 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) Noncompeti~i~'~ ieasei .il~ih%; ' '
(b) Competitive lease, 12'A%; "' · :!: ~
(c) Other', ~see attachment; or
as specified !n 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 onthe 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 conditidn'6n the primfises
where produced without cost to lessor. Lessee shall not be required to hold such production
in storage beyond the last day 0fthe month following the month in which production occurred,
nor shall legsee be held iiable for loss or destructinn of royalty oil or other ~t~°ducts 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 afiera discovery
in paying quantities. This minimum royalty may be waived, suspended, or reduced, and th~
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 leases te 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 'pi'odu~:ing', a~d shal~l prevent unne~esgar~ damage to, Ios~ of, or
waste of 4eased!resources: Lessor. reserves right to specify rates of development andproduction
in the public interest and to require lessee to subscribe to a cooperative or unit plan, within 30
days Of notice, if deemed r~ec'essa~ fd~-'pr6~e:t: de~10pm~nt and ope)ation of area, field or pool
embracing these leased lands. Lessee;shall drill and produc~ wells necessary to protect leased
lands from drainage or pay compensatory royalty for drainage in amount determined by lessor.
Sec. 5. Documents, evidence, and igsppgtign-TLesse4: shall fde 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 time-s and in such form as lessor may prescribe, lessee
shall furnish detailed statemen~ ~ht~vihg arfl0ufl~ arid quality 0f MI products removed and sold,
proceeds therefrom, and amount Csed.for p[q~l, uction purposes or unavoidably lost. Lessee may
be required to provide 'plats and 'schemaii~: diagrams showing development work and
improvements, and reports with i'e'si~.ct i0 parties in interest, expenditures, and depreciation
costs. In the form prescribed by lessor, lessee shall keep a daily drilling {ecordi 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.lnased premises and all well?, improvements, machineryl 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 9fall conU-acts, sales agreements, accounting
records, and documentation such as billings.invoices, or similar documentation that supports
costs claimed as manu factur{fig, preparati6n, and/or transportation costs. All such= records shall
be maintained in lessee'? accounting offices for future audit by lessor. Lessee shall maintain
rb. quireci records for 6 years after'they a~:~ 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 ~.S.C;, ~2).
Sec. 6, Conduct of operations--Lessee shall con~luct operations in a manner that minimizes edgerse
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 desig~ 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-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 bydessor. If in the conduct of operations, threatened or
endangered ?pecies; 6bjects 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--lo 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 exn'acted 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 improvemeuts,
and shall save and hold lessor harn~ess from all claims for damage or ~ to persons or property
as a result of lease operations.
. Sec.' IO.(P~otection,~of d verse nterests and equal opportunity--Lessee shall' pay when due all
taxes legally as~ss~a) ~ levied under laws oftbe State or the United States; alcord all employees
complete freedom of purchase; pay all wages at least twice each month in lawful money of the
United States; rnammin a safe working environment in accordance with standard indnsu3, practices;
and rake 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 9perated accessible to oil deriyed 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. I I. Transfer of lease interests and relinquishment of lease--As required by regulations,
.lessee shall' file with lessor any assigmnent or other transfer of an interest in this lease. Lessee
may relinquish this lease or any legal sul:51ivisi0n by f'ding in the proper office a written
relinquishment, which shall be effective ai 6f 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 premisesv--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 neeessary-byqessor-for-preservation..ofproducible..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 comanined 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 nol prevent later cancellation for the same default occurring at any other
time. Lessee shall be subject to applicable provisio~ and penalties of FOGRMA (30 U.S.C. I?01 ).
Sec. 14. Heirs and successors-in-interesI--Each 0bligation of this lease shall extend to and be
binding upon, and every benefit hereof shall innre to the heirs, executors, administrators,
successors, beneficiaries, or assignees of the respective parties hereto.
?!¥~I 50 8 86
367
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.
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 t6 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.
Within 500 feet of surface water and/or riparian areas.
Construction with frozen material or during periods when the soil
material is saturated or when watershed damage is likely to occur.
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)o
Within 1/4 mile of occupied dwellings.
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.
WYW150886
TIMING LIMITATION STIPULATION - TLS
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.
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.)
I YWl u 86
370
NOTICE TO LESSEE
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.