Loading...
HomeMy WebLinkAbout894786Form 3106-11 (October 199l) UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT OFFER TO LEASE AND LEASE FOR OIL AND GAS Serial No. YI- [3656S The undersigned (reverse) offers to lease aH or any of the lands in Item 2 that ar~ available for lease pursuant to the Mineral I.~asing Act of 1920, ns amended and supplemented (30 U.S.C. 181 et seq.), the Mineral Leasing Act for Acquired Lands of 1947, as nmcoded (30 U.$.C. 351-359), the Attorney General's Opinion of April 2, 1941 (40 Op. Atty. Gert. 41), or the RE. AD INSTRUCTIONS BEFOR~ COMPL~NG 1. Name Van K. Bullock s~eet 4530 S. Verbena I]381 c~ty, state, Zip Code Denver, CO 80237 2. This application/offer/lease is for: (Check only One) [~ PUBLIC DOMAIN LANDS Surface managing agency if other than BLM: Unit/Project Legal description of land requested: *Parcel No.:. *SEE ITEM 2 l~l INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE. T. R. Meridian State Township 22 North, Range 115 West, 6th P.H. Section 22:' S~S~ *Sale Date (m/d/y): I / __ ._CbIi5.~._O ~cR PAOE [! 3 4 RECEIVED ' LINCOLN COUNTY CLERK, Amount remitted: Filing fee $ 75. O0 89h7'BG 03 0CT28 AM 9: ro,,~ ~ 315.00 DO NOT WRITE BELOW THIS LINE 3. Land included in lease: R. Meridian State County SAME LAND DESCRIPTIONA8 ITEM 2 Total acres in lease Rental reta ned $ This lease is issued granting the exclusive fight to drill for, mine, ex.act, remove and dispose of aH 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 le~ing, 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 lea~ 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 nomlnntion form submitted under 43 CFR 3120 and Is subject to the provisions of that bid or nmnlnation and those specified on thiS form. Type and primary term of lease: THE UNFFED STATES OF AMERICA ~ Noncompetitive lease (ten years) by ~';~-~ (~. ~~ [] Other (Continued on reverse) 13 l O§5 JUL 011§95 ate, 4. (a) Undersigned certifi~ that (1) of£erce is a citizen of the United Rtal~s; an associntlon of such c{tizen$; a municipality; or a ~on organized under th~. laws of the United State~ or of any Stat~ or Teo-kory thereof; (2) ali parti~ holding an i~t in the offer are in compliance with 43 CFR 3100 and the leasing authodti~; (3) offexor's chargeablei~ts, diruct and inditra~, in each public domain and acquired lar~s ar. parately in the same gtate~ do not exceed 246,080 acaza in oil and gm leases (of which up to 200,000 acr~ may be in oil and gas options), or 300,000 aere.~ in leas~ in each leasing District in Alaska of which up to 200,000 ncr~ may be in opfiuns, (4) offeror is not comidered a minor under the law~ o~ the S~a~ in which the lands covered by this offer are located; ($) offeror is in compliance with q~alifiealiom conccmlng Federal coal l~ac~ holdings provided in sec. 2(aX2XA) of th~ Min¢~l Leasing Act; (6) offeror is in complianc~ with reciamafiun rcqoiremcota for all Fedend ell and gm lea~: holdings as rcqulred by sec. l?(g) of the Mineral Leasing Aa~ and (7) Offr. o~ is not in violation of sec. 41 of the Ar..L Co) Lindee~igned agn~ that signature to thira offex constitutm acceptance of this lease~ including all terms, condifion~, and stipulations of which offexor h~ been given nctic¢, and any amendment or separa~ lea~ th~ may include any land de~"ihed in this'offer open to leasing at the time this offer was filed..b?..~..dmj .t.~,'~ ~O-/,-~p. y-ff~. ~c~, from this lea.~. The offeruc further agre~ that this offer eannct be withdrawn, either in whole or in part, unless the withdrawal is received by the proper BLM Sm{: Offic~ bel~'¢ this lea.~, an ameaxlment to this lear~ or a ae4Jara~ leme, whichever anvee$ tbe land c~erlhed in the withdrawal, ha~ be. eh signed on behalf of the United Rtate~, This offe~8 uW~.~ be rejected and will afford offeror no priority ff it is not properly completed ~d eaecuted in accordance with the regul~, ties, or ff it is not nceompenled by the required payments. U.$.C. See. 1001 makes It a crime for ~ny person knowingly and willfully to m~,ke to any Department or ~eaey of lhe Uni~d gtates~j~, false, flefltiom or fraudulent ~tatmnta or representations as to ~ny ma,tter within its jurfadletinn, .._.......~ _ ~ ~ (Signature of Lessee or Attorney-in-fact) Sec. I. Rentals--Rentals shall he 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; Co) Competitive lease, $1.50;, for the Brat 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 commilled to an approved cooperative or unit plan which includes a wed 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 specifted in (a), (b), or (c) for those lands 0 3 5 costs claimed as manufacturing, preparation, and/or a-aasportation costs. All such records shall he maintained in lease's accounting offices for furore audit by lessor. Lessee shall maintain required records for 6 years after they are ganemted or, if an audit or investigation is underway, until rel~ of th~ obligation to maintain such records by lessor. During existence of this lease, information obtained under dba section shaft be closed to inspection by the public in accordance with thc Fre~lom of Information Act (5 U.S.C. Sec. 6. Conduct of operafieos--D--~,~ shall conduct operations in a manner ~t m!,~-qzes adverse impacts to the land. air. and water, to cultorni, biological, vis~, and other resources, and to other land uses or users. Lessee shall take reasoasblc measures deemed necessary by lessor to accomplish the intent of this section. To thc extent consistent with lea~ fights granted, such measur~ may include, but are not lira/ted to. modification to siting or design of facilities, timin~ not within a participating, area. of operations, and specification of interim and fired reclanmtinn measures. Lessor rcserves the omcia~ working say iz office is cl~el~}~ill:a{~tomatieall~t~hti~lea]~llb~e,b]r,~[~q-at~oWor~ the approval of easements or fights-of-way. Such uses shall bc conditioned so as to prevent law. Rentals may be waived, reduced, or suspended by the Secreta~ upon a sufficient showing unaece:kqary or uureasonable interference with fights of lessee. by lessee. Prior to distorbing the surface of the leased lands, lessee shall contact iesaor to he apprised Sec, 2. Royalties--Royallies shall be paid io proper offiea of lessor. Royalties shall he computed of procedures to he followed and m(xfifieations or reclamation measures thnt may he necessary. in accordance with regulations on production removed or sold. Royalty rates arc: Areas to be disturbed may require inventories or special studies to de~nninc tho cxtem of impacts (a) Noncompetitive lease, 12 ~A %; to other resources. ~ may be required to complete minor inv~ntofies or short term special , (b) Competitive lease, 12~%; studies under guidelines provided by lessor. If in the conduct of operations, dueatened or (c) Other, see attachment; or endangered species, objec~ of historic or scientific interest, or substantial unanticipated environmental effects are observed, lessee shall imlnediately contact I~sor. Lease~ ~mll any operations that would result in the destruction of such species or objects. time this lease'is issued. Lessor reserves the right to specif~ whether royalty is to be paid in value or in kind, and thc Sec. 7. Mining operations--To the extent that impacts from mining operations would fight to establish reasonable minimum values on products after giving lnsse¢ notice and an substantially different or greater than tho~ associated with normal drilling operation.S, opportunity to be heard. When paid in value, royalties shall be duc and payable on the last day reserves the right to deny approval of such operations. ' of the month fodowing the month in which production occurred. When paid in kind, production Sec. g. ExUnctioo of hellas--Lessor re. serves the option of eatr~ting or having exl;acted I~liam shall be delivered, unle.~ otherwise agreed to by lessor, in merchantable condition on the premis~ from gas production in a manner specified and by means provided by lessor at no expense or where produced without cost to lessor. Lessee shall not be required to hold such production Ios~ to lessee or owner oftbe gas..Lessee shall inelod~ in any contract of sale of gas the provisions in storage beyond the last day Of the month following the month in which production occurred, of {his section. nor shall tessce be held iiable for loss or destruction of royalty od or other products in storage from causes beyond the reasonable control of lessee. Sec. 9. Damages to property--l~um shall pay lessor for damage to ieasor's improvements, and shall save and hold lessor hanrde~ from all claim,~ for damage or harm to persons or p~ Minimmn royalty in lieu of rental of not less than the rental which otherwise would be required . as a result of lease operatioas. for that lease year shall be payable at the end of each lease year beginning on or after a discovery Sec. 10. Pro~ction of diverse interests and equal opportunity--Lessee shall: pay when due all in paying quantities. This minimum royalty may be waived, suspended, or reduced, and the above royalty rates may he reduced, for all or portions of this lease if the Secretary determines taxes legally ~ and levied under laws of the Sta~ or flu: Uai~d Stales; ac. cord ail employees that such action is necessary to encourage the greatest ultimate recovery of the leased resources,, complete freeaiom of porcha~; pay all wages at least twice annh month in lawful money of the or is otherwise justified. Unit~ States; maintain a ~ffe wocki~ environment in accordam~ with standard !nd,~y practice~; and take measures necea:mry to protect the health and ~fety of the public. An interest charge shall be assessed on late royalty payments or underpaymeots in accordance Le~or reserves the right 1o ensura that production is sold at reasonable prices and to prevent with the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA) (30 U.S.C. 1701). monopoly. If Insane operates a pipeline, or owns controlling interest in a pipeline or a company Lessee shall be liable for royalty payments on oil and gas lost or wasted from a lease site when operating a pipeline, which may be operated accessible to oil derived from these leas~ lands, such loss or waste is due to ncglignuce on the part of the operator, or due to the failure to comply lessee shall comply with section 28 of the Mineral Leasin8 Act of 1920. with any rule, regulation, order, or citation issued under FOGRMA or the leasing authority. Lessee shaft comply with Executive Order No. 11246 of Septemher 24, 1965, as amended, Sec. 3. Bonds--A bond shall be filed and maintained for lease operations as required under and regulations and relevant orders of the S~cretary of Labor issued p~r~uant thereto. Neither regulations, lessee nor lesse~'s subcontrnctors shall maintai~ segr,,egnted faciliries., Soc. 4. Diligence, rate of development, unitization, and drainage--Lessee shall exercise reasonable Sec. I 1. Transfer of lease interests and relinquidm~nt of lease--A~ rcqoh'ed ~y r~gnintion$, diligence in developing and producing, and shall prevent urmecossary damage to, loss of, or lessee shall file with lessor any a~igmnent or other u'a~mfer of an internst in ~ lease. Leuee waste of leased resources. Lessor reserves right to specify rates of deveinpment and production amy relmquish this lease or any legal subdivision by t'ding in the proper of'flea a writtefi in the public interest and to require lessee to subscribe to a cooperative or unit plan, within 30 relinqaishmant, which shall be effective as of the date of filing, subject to the continued obligation days of notice, if deemed necessary for proper development and operation of area, field, or pool of the k's~,*~ and surety to pay all accrued rentals and royalties. embracing these leased lands. Lessee shall drill and produce wells necessary to pro~ct leased Sec. 12. Delivery of premises--At such time as all or portions of ti~ lea~ are returned to lessor, lands from drainage or pay compensatory royalty for drainage in amount delermi~ed by lessor, lessee shall plac~ affected weds in condition for suspension or abamiomrmnt, reclaim the land Sec. 5. Documents, evidence, and in~pection--L~.xo? shall file wi& proper office of teaser, as specified by lessor and, within a reasonable period of time, remove equipment and not later than 30 days after effective dar,. thereof, any contract or evidence of other arrangement improvements not deemed neoes.~uy by lessor for preservation of producible wetia. for sale or disposal of production. At such ~ and in such form as lessor may pre. scribe, lessee Sec. 13. Proceedings in case of dafault--lf le.~m fails to comply with any provision~ of shall furai~ de~aiied statements showing amounts ami quality of all products removed and sold, lease, and the noncompliance commues for 30 days after wfitl~n notice thereof, this lease shall proceeds therefrom, and amount used for production purposes or unavoidably lost. Lessee may he subject to cancellation unless or until the leesel~ld comain.* a well capable of production be required to provide plats and schematic diagrams showing development work and of oil or gas in paying quantities, or the lea~ is committed to an approved cooperative or trait improvements, and reports with respect to patties in interest, expeudimres, and depreciation plan or commutation agreement which conutins a well capable of production of unitized co~ts. In the form pn:acrihed by lemur, lesane shall b:x:p a daily ~ record, a log, information substance~ in paying quantities. This provision shall not he consuued to prevent d~ ey~:rcise on wed surveys and tests, and a record of subsurface investigations and furnish copies to lessor by lessor of any other tegal and cquitabk: remedy, including waiver of fl~ default. Any such when required. Lessee shall keep open at all r~nable times for inspection by any authorized remedy or waiver shall not prevent later camcelintion for th~ same default occurring at any other officer of lessor, the leased preanit~ and all wells, improvements, machinery, and fixtmes thereon, time. Lease~ shall be subject to applicable provisiom and penahiea of FOGRMA (30 U.S.C. 1701). and all books, accounts, maps, and records relative to operations, surveys, or investigations Sec. 14. Heirs and suceesanrs-in-interest--Ench obligation of this lears: shall extend to and he on or in the ],"~ lands. ~ ~'~ ~,e shall maintain copie~ of ail contracts, sales agreeanen~, accotmting bindin8 upon, and every ben, fit hereof shall inure to the hairs, exca:utora, mimini~trator~, records, and documentadon such as billings, invoices, or sim!!ar documentation that supports successo~, beneficiaries, or a~igm:e~ of the respective parties hereto. .~LIB. ~POA I g02-774-017/B7034 .... : :':'. WYW136568 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 existin§ mineral lease issued prior to this one for the same lands..- WYW136568 037 LEASE NOTICE NO. 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. 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). 5. Within 1/4 mile of occupied dwellings. 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). THIS NOTICE'APPLIES TO ALL PARCELS WYW136568 0 3 8 NOTICE TO LESSEE Provisions of the Mineral Leasing Act (MI~) of 1920, as amended by the Federal Coal Leasing ~endments Act of 1976, affect an entity's qualifications to obtain an oil and gas lease. Section 2(a)(2)(A) of the MI~, 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 C~R 3472. In ~ccordance 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). ~7~e 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.