HomeMy WebLinkAbout875233 0i=O042 6
L. iNCOL~'~ COUNTY CLERK
Fo~m Approved by [he Board ~: C . ~ .
OIL AND GAS LEASE "BOO _K~.O PR. PAGE 539
JEANi' i:' '"'"I
This Zndenture of lease entera~MAE~l,,b,~' A'~i'"¢~}~een the State of Wyomlng, acting by and
through its Board o~ Land Co~missioners as LESSOR, and the followZng as LESSEE:
Baseline Minerals, Inc.
Section 1. PURPOSE. The LESSOR, in consideration of the rents and royalties to be
paid and the covenants and agreements to be kept and performed by the LESSEE, does hereby
grant and lease to the LESSEE, the exclusive right to drill for, mine, extract, remove, and
dispose ~of all the oil, gas and associated hydrocarbon substances and gaseous substances and
elements Produced therewith, including sulphur, hydrogen Sulfide, sulphur dioxide, nitrogen,
carbon dioxide and helium, which may be produced from the following d~scribed land, to wit:
640.00 Acres Ail Section 36, Township 20 N., Range 116 W., 6~ P.M.
County: Lincoln Acres: 640.00 Advance Rental $ 640.00
($1.00 per acre or fraction thereof)
Together with the right of ingress and egress and the right to use so much of the
surface of said lands as is necessary to construct and maintain thereupon all works,
building, plants, waterways, roads, Communication lines, pipe lines, reservoirs, tanks,
pumping stations, or other facilities necessary to the proper conduct of operations
thereunder.
Section 2. TEP~ OF LEASE. This lease shall become effective on the day and year set
out below and shall remain in.effect for a primary term of five (5) years and for so long
thereafter as leased substances may be produced from the lands in paying quantities. This
lease may also be extended beyond its primary term in the absence' o-f production of leased
substances as may be provided by the statutes of the State of Wyoming and the regulations of
the Board of Land Conunissioners adopted pursuant thereto. Provided, however, 'if drilling,
completion, testing or reworking operations are being diligently conducted, either during the
primary term or during any extension thereof, this lease shall continue in full force and
effect so long as such operations a~7 being conducted and so long thereafter as oil or gas
may be p~'oduced in paying quantities. This lease may be *-~-' ' '
..... nqulshed cr term.~nated at an
earlier date as herein provided.
Section 3. If the LESSOR owns an interest in oil and gas in said land less than the
entire fee simple estate, then the royalties aud rentals to be paid LESSOR shall be reduced
proportionately.
Section 4. LESSEE expressly represents that, if Ch.:individual, LESSEE is a citizen of
the United States, or has declared an intention to become a citizen, and is over 19 years 'of
age-and if a corporation, is duly qualified to transact business in Wyoming.
Section 5. This lease is issued under the authority conferred by' Title 36, W.S. 1977 as
to the State and School Lands, and Title 11, W.S. 1977 as to Farm Loan lands, and shall be
subject to, and operations, by LESSEE hereunder shall be conducted in compliance wi~h the
specific lease terms set out on the reverse of this lease, and with all applicable state
statutory requirements and the regulations issued thereunder, including those providing for:
the leasing of State or Farm Loan Lands for oil and gas; the conservation of oil and gas; and
the regulation of security transactions.
Section 6. HEIRS AND SUCCESSORS 'IN INTEREST. It is covenanted and agreed that each
obligation hereunder shall extend to and be binding upon, and every benefit thereof shall
inure to the heirs, executors, administrators, successors of, or assigns of the respective
parties hereto.
Section 7. SOVEREIGN IMMUNITY. The State of Wyoming and th~ lessor do not waive
sovereign immunity by entering into this lease, and specifically retain immunity and all
defenses available to them as sovereigns pursuant to Wyoming Statute 1-39-104 (a)and all
other s'tate laws. ~
IN WITNESS WHEREOF, this lease has been executed by LESSOR and LESSEE to become effective
on the 2nd day of June, 2001 A.D.
LESSOR,..~ .:.STATE.- . OF WYOMING, Acting by and through it~.d ~f ~ Commissioners.
/~oECph ~¢. T~ames'.- Baseline Minerals,
Address: ·
City: Denver State: CO Zip: 80202
Telephone No. _ (303) 534-3628
(a) BOND. To furnish a bond with an approved corporate surety company aulhodz~d to b'eneact busi~ssln the b'~ action 2. THE LESSOR EXPRESSLY RESER~8: ' ~ ~j ~
(a) The rtghl o sase se~ of othe~se d~spose of ~e s~ace of the I~d emb~ed wi~n Ih~s lease undm
of Wyoming, or ouch olher surety as may be ecceplabie to Ihe lessor, [~ ~e penal s~ as req~red by the cutest [des laws or ~ws hereafter enacted, aaa In accordance wl~ ~e rules of ~e ~o~d of Land Commissions Insofar as
of ~e State Board of Land Commissioners, cond[~oned upon ~e payment of ~ ~e~tals and roy~es ~c/utng [o ~e
suff~e Js ~ ~ecess~y for ~e use of Ee ~essee in ~e condu ct of operators here~er.
, ( ) he nahtto ~ase, se~. ~ othe~tse d~spose of other ~ner~ or subsurface ~esources no[ covered by ~e lease,
and reguJa~ons te~eB~g ~eie~, and ~so cond~Uoned on the payment ct ~[ d~ages to ~e suvaco and ~ve~n~ ~corda nco with ~e app~oab~e laws and the rules ~ Ihe 8oar~ o~ Land Commissioners.
~ereon where ~e lease covers lands Ee audace of which has been so~6 or o~e~lse leased. Such bond or bonds Lc)From ~e operation el this Jesse the s~face lands heretofore gra~ted ~o~ r~ghts-of-way and easements
~ rn~shed p~r 1o ~e development o~ ~e land s contNned in this lea se may be increase d in such re aso~ able amounts r~ e~es ~e right to grant suoh olher ~g his-ct-way a nd easements as pro~ded by ~e s~tutes o~ ~e S~te of wy~g
as the lessor may de~ide upon commencement ct drilling opera~ons and e~er the discove~ ct o[I or gas. as long as such right-of-way an~ easeme~ do not conflict with the operations fu eJt and gas on ~e [~d herein
[b)PAYMENTS. To make all payments accruing hereunder lo ~e Office d State Lands a~d [nves~en~. ~ 22 West .
25th S~eeL Cheyenne, Wyeth9 82002-0600. te~sed.
(d)T~e Hgh[ ~ ~efuse to com~( the ~e~e~ ~ds to a unit p~ ct development ~ ~e aoard Rads such acUon would
{c)RENTALS. PHor to Ee dlscove~ oroti or gas In paying quanUues to pay ~e lessor In advance, beginning w~th ~e Impair ~e Jessor's resoled fight to take I~ roy~ gas In ~d and to purchase all oU er gas atiocaied Io ~e te~ed
effec~ve da~ hereof, an annu~ renla~ ct ~1.00 per acre or ~rac~on thereo[ . lands s provided (n Sector 3to)below.
After the discove~ el o~[ or gee In baying quantifies te pay ~a lessor tn advance ~g~nnTng with ~e fl~st day of the (e)Tha right to e~ter o~ modf~ ~e quan~ and rate of proauc~on Io ~e end that waste may be eli~naled o~
Jesse yes, succeeding ~eieasa yeaHnwh?ch actual d~eoove~wasmede, an a~uahen~f$2.00per acreorkac~on produc~on may con~orm Io ~e teaser's lar share o~ ~lowable producUon under any system d State or
thereof, unless changed by agree~enL Such renal so paid for any one ye ~ shall be credited on ~e royahy for that
year. ' ' cu~a~J~ent ~d pcora~on authorized by law.
(01n ad~on to i~ dght ~ take ~ roy~ gas tn kind, (he lessor ~ese~es the right and op~on to purchase ~ o~u gas
A~nua~ re~ta~s on all leases shall be payable I~ advance for ~e first ye~ and each year ~erea~r. No notice of ren~ prodded for sale or use o~the leased lands. This op~on s hall ~ ex~cised only If ~e Board ~nds Ihat fl~e ~essee has
due d~sl~ be sent to the lessee. ~f the rental ts not peld on or be[ore ~e dale it becomes due, eoflce of defauJ[wlil be received and Is wl~lmg to accept a bona ~de o~er ~rom a pu~haser who Intends Io sell or banspod t~ g as
sent to the lessee, and ~ penaJ~ of t0.50 per acre tot i~te payment wll~ be ~sessed.
[nE~sta~ commerce a~d ~alone or mare (n~aMate purchasers (La. purchasers who w~l use co~s~, or se~ Um gas
The lessee la eo legs y oMgated [o p ay eJ~er ~e re~lal or the pena~, but tribe ren~ a~d pen~ ua not p~d ~in hr use or cons ump~on entropy wi h n the State of Wyoming ~e wiigng and ab~ ~o p u~chase ~e gas u~n ter~
~i~(3~days~r~en~ce~[d~fa~i~hasbee~recejved~e~eas~w~[~term~nate~ut~ma~ca~jyby~p~ra~n~f~aw~ ~s~na~c~mparab~et~andaHeas[a~fa~ab~et~e~e~seeas~h~se~eredb~heinters~a~purch~er~ The
TermineSon of the lease shall not relieve ~e lessee of any obtigaflon incurred under ~e lease o~er than O~e obl~gaSon Boar0 sha~l waive ~is op~on and pwmE an interstate s~e If ~ finds lhat no In~ast~e purchaser Is w Ing and ab~
to pay rental or penalW. The ~essee shall not be en~ed ~ a credit on royelW due ~or any pena~ypNd forl~e paymen~ purchase the gas upon brms which are reasonably comp~able to and al lea~t as favoraMe to the lessee. ~ a
of rent~ on an opera~ng lease,
(al}ROYALTIES. The royalties Io be p ~d by lessee are: cession to such waiver, a safldacto~ agreement may be entered into by which Ihe production ellis royalty gas
bo defe~ed unUi it can be produced and soil for cons~mpUon and use entirely wllhln the Slate el Wyoming.
(I) On oil, one-sixth ct ~at produced, saved, and sold from said land, ~e same b be delivered at ~e wells or to the 8ecUon 3. APPRAISAL OF iMPROVEMENTS. The lessee shall have the rig ht subject [o the provisions of ~tie 36. ~
oredJl of lesso~ Into ~e p~pe JJne lo which tho wells may be connected, to Slate and Sla~ S~hooJ Lands, and TJ~e 11, as ~o Slaie Loan and tnves~en~ Board Lands, W.S. 1977 m remove
(il) On gas, including c~lnghead gas or other hydrocerbo~ substances, produced from s a;d land saved and sold or any Improvements owned by lessee ~ln a reasonable ~me after ~e term[~aUon of Ets lease. Lessee a~'ees ff~a[ any
used offlhe p~emises or iu Ule m~nufaclure of gasoline or other produc~ ~erefrom, Ee ma~etv~[ue ~ ~e ~'~;[ofon~ such Improvemen~ not removed ~thln a reasonable ~me after [er~na~on of~ia Io~e shag ba disposed olpursuaul
six~ of ~e gas so sold or used, provided that on gas sold at ~e we~Ja, U~e royal/shall be one.six~ o~ ~e amount the above statutes.
real,zed [rom such sa~e.
: ~Eon 4. FORFEITURE CLAUSE. The Bo~d shall have Ihe power en~ a~hod~ to ca~elleases procured by
([~) On alt o~ar hydrocarbons of value and gaseous substances en~ e~emanm produced or ex,acted, ~ctudi~g dece~L or ~srepresentaUons, or 6r the use o~ ~e ~ands for unla~ or Betel purposes, or for Ihe ~ola~on of the
propane, bu~e, sulphur, alleges, oarbon d~ox{~e, and helium, at such roy~ as shall be ~vtua[~y determined ~ be covenan~ ct ~e iea~e, ~pon proper proc/thereof, In file event that the lessee sha([ ddaull In t~ pedormance or
fair end reasonable,
' obse~ance of any of ~e terms, covenants, e~d s~putagnns hereof, or of gte general regulations p~omulgated by the
{Iv) For roya~ pu~oses on gas and natura~ gasoline the va~ue shell be as approved by ~e lessor, and In the Bo~d o$L~d Co~issioners and in force on ~e date hereof, ~e lessor shall se~e notice of such Sa~ure ce defaut[
determlna~o~ o~ ~e vaue of natura~ g user,ne the fair cost of ex,action shall be considered as a dedoc~ble Ilem; e~th er by perso~a~ se~oe or by ce~fled or ret[slued mail upon the ~essee, and If such ~NI~o or de~eu~ con~uea ~ a
provided, howeveL ~at ~e ~llowance ~or ~e ~ost of ex~on may exceed ~o-thirds of the amount or v~ue only on period ct ~i~ (30) 6aye a~er the se~co of such notice, ~en and In thai event the ~ossor may. at ils option, declar~ a
approva~ of ~e tosser and tn no evonl ahai~ the price for gas, or nalur~ gasoline, be less ~lan ~at received by ~e
United State of~edca for Its royalties ~om ~e s~e field.
fode~ture and cancel this lease, whereupon ~1 ~ighls and privileges, obtained by the lessee E~eundor sBa~J
and cease and the lessor may re-enter and ~ke possession of sai~ premises or ~y p~ lbo[eeL These provisions
(v) Na[ura~ gas and o[~ aotualfy used for opera,nO pu~osos upofl ~e land and, ~cept as to ~e ul~m~e sa~e ~eeed, sh~l n~ be coasted to p~evenlEa exercise bg lessor any lega~ or equitable remedy which ~e ~s~r ~g~
g~ or tiquM hydrocarbons relumed ~ the sand for sflmula~ng ~e produc~on of eli or second a~ recove~ purposes have. A w~ver o~ a~y pa~o~l~ cause ~ foEei[ure shat not prevent the oance~la~on an~ fodeJturo of Ibis Io~e by any
shati be ~oyel~ free,
(el DISPOSITION OF ROYAL~ OiL AND GAS. To de~Jver to ~e ~essor, or to such iod[v[d[r~[, ~rm or co~ora~on as Sec~on 5. RELINOUISHM ENT AND 8URR ENOER. This Ieee may be ~etinqu~she~ and surrendered lo lessor ~ to
~e ~essor may desig~ate, all ~oya~ eli, g as, or other kindred hydroce~ons, free o~ charge on ~e premises where a~t or any [eg~ subdMs[on of said lands as fo~lows:
produced, or, at~e op~on oflhe lessor, an~ tn lieu of s~d royalties In kind, ~e iessee agrees ~ pay ~e lessor ~e ~d (a) I$ no operators have been ~onducted under ~a ~ase on ~e I~d to be relinquished, ~e Jessee shall fi~e with the
mabel price or val~e of ali roy~ oil, gas, or o~er kindred hydrocarbons p~oduoed and saved. State Land Board and S~to Loan and Inve~anl Board, a writes ~e~nqu~hment or surrender, duty slg~ed and
When ~e lessor eJe~ ~ ~e [~ toya)~ o~, gas, or o~er hydrocarbons tn kind such as oil, gas, or other ~ndred acknowledged and stating ~erein thai no operations flays bean conducted on ~e la~d The ~etinqu}shmen{ so
hydroc~bons Shall be good merchantable oil, gas, or o~er kindred hydrogens. The/ess~ sh~ ffnecessa~ [~mlsh shall become effecUve on ~e date and hour o[recetpt thereo~ln tho office ct ~e Director or al some later da~e, if such
storage [orroy~ eli tee of charge fo~ thl~ (30) days after ~a end of ~e calendar mon~ In which Ee ols ts produced, ~e ac specimen by ~e lessee ~ere~n. I[~e auld re/fnqulshment ~afls [o stem that no operators have been
upon Ee Je~ed premises, or at ~e such place as ~ e essor and Ihe lessee may mu ual~y agree upon, provided, ~at [he after,ye date of rellfiqulshmenl shall ~ the date the rdlnqulshment Is approved by the Board.
The free storage of eli, as herein provided, sh~l apply only aa long as the said eli ~s the prope~ o~ ~e/essor. (80) days noBce and shall file with ~e Director a wrlEen retlnqulshmen~ or s~r~ender duly acknowledged and stating
{0 M~SUREMENTS OF PRODUCTION. To gauge, measure and co~rect hr (emperalum st[ producUon from s aid fltereln th at operagons have been conducted on ~e [and. The relinquishment sha~ not become effecUve until ~e land
fends In conference with ~o rules and regulaflo~ adopted by ~o Board of Land Comm[ssloflers and repo~ sa~d and fha wells ~ereon sha~l have been placed In connives acceptable to teaser and shall have been approved by ~e
produo~on to U~e lessor In accordance ~erew[th,
State eLI and Gas Supe~fsor.
To keep books, records, and repo~ pedaJning to the produc~on from ~8 land herein ~eased as weft ~ ~ose A~[ ~ent~s be~n9 due prior ~ a s~reAder or relinqulshmen becoming effec~ve, shall be ~ ayabie bvtessee unless
peri, sing to the produc~on ~om offset weLls operated by ~e essee, h s opera,r, or sub-~es~ on o~er la,da, w~ich payment {he~eof shall be waived by fes~or. A reflnqulshm~t having become offeo~e U~ere shall be no re~ourse by
shal~ be opened al ~i ~mes for ~e InspecSon of any duty auEoflzed ages of EO tosser . " lessee and ~e lease as to ~e rellnq uJshed lands may not be
To furnish ~e lessor wi~ original pfpe line repo~ show ng fie day, mon~. year. ~ount, grav[~, and ~peratures
of a~ og run arid wi~ mon~Jy repo~ show~g ~e mon~, year, ~oun( and pflce of a~l gas and n a[uraJ gas ga~otind '
and oder produce produced and acid fi'om ~e land herein leased, and Ee ~ount o~ gas relurned to ~e sand.
(9) MONTHLY PAYMENTS AND 8TAT~ENTS. Un[ess ~e time of payment ~s o~e~Jse extended by the O~ce o[
Stale Len~s and lnves~en~ to mane payment on or before ~e ~en~e~ (2~) day of ~e ce]end~ mon~ sunred[no
~e mon~ el produoffon and remov~ and sale of ell and gas ~om said land, and to furnish sworn monthly statements
therewt~ showing In detail the quantW and quali~ of the produc~on ~er well ff required where pracUc~) from ~e~d
or contiguous land opera~d by [he lessee, his operator or sub-lessee and such other InformaSon as may be called f~
in the form or repo~ prescribed by lessor.
th) WELLS TO BE DR~[.LED. To drill and operate effeo~ve~y ell wets necessa~ to reasonably offset wetia upon an6
produc~on Irom adjoining lands.
To drill such addJ~onal we~Js at such ~mes or places as are necessa~ and essen~a~ b the proper development and
commerc~ produc~on of ~e eli and gas central o[said
(i LOG OF WELLS AND REPORT8 To keep a Jog, In the Erin approved by the lessor, of each well drilled by the
lessee on {ho lands herein leased, showing tho sE~{a and character of ~le forma~ons, Water sands and
deposl~ pene~ete~ by ~e dtl~], amount of casing, size afi~ wh~re set and such olheHn~ormaflon as ~e ~assormay
~oqulre which tog or copy ~e/eof shall be furnished ~ {ha lessor. '
To file progress repo~, In Eo form prescribed by ~o ~essor, at ~o end of each [hlr~ (30) day period w~le e~ wallis
being ddlied,
To file annually, or at such times as ~e lessor may ~equtm: maps showing ~e development d~e s~ucbm and the
Ioca~en of all wells, pipe lines a~ olhe~ wo~a used Iff connotes ~ ~e eperaUons of~e lessee upon said land.
To make such offior mpo~s peOafnlng ~ U~o produo~on and opera~ons by the Jeaseo on said land, and ropo~
oth~ ]n~orma~on as may be possessed by the lessee on lbo w~a, produc~on or qpe~aUons of oU~e~s on ~ands on t~o
S~e geologic s~uclura ~a~ay be oHmpo~ance ~n effacing proper development a~d opera,on of~e lands here~n
teased, as may be ca~led Far by the ~esaor. NI logs, ~aps, and repo~ shah be subm[~ed In dvptioa~ ~nd the O~ce d
State Lands and Invee~en~ may waive such mpo~s ~ aondi~ona may war~a~L
~)PRODUCT~ON. To operate the we~ls upon ~e ~and horeh lea~ed in a ~ompetent a~d e~clent manner tn an
endeavor to recove~ att ~e o)t and gas economically posslble from said land and to p~even(the ~der d~nage of~e ~1
and gas thereunder by we~ls opera~d by ~e Lessee or o~ers on cornering or contiguous lands to ~ose~e~ed herein.
~l pleas o~ me~oda for ~e purpose of s~mulaUng or Inomasfng produo~on on lands horeln ~eased other than ~ose tn
common use shall F~st be p~esented to Ihe tosser for approval be[ore being put ~nto a~u~ opera,on.
No pmduc~on aFeemen~ timlUng, respiring, proraUng, or olhe~se effacing ~e naturalp~oduc~on from sari land
shal~ ba entered Into by ~e le~sea, nor sh~/~e ~essee ~lmlt, respect, or prorate ~e na~ura~ prod uc~on [ro~ sa~d [and ~n
any way or In any evan~ ex,apl ~U~ ~o consort I~ wd~ng of ~e Jessor ~rst had an chinned.
(k)SU~PeNSION OF OP~RA'TIONS. Should any we~l ~r~lled upon lands uave/ed by this lease ebon produces
gas, or o~er hydr~abons in paying quan~es end I[ ~e lessee is unable to establish a saUs~ac~ market fu ~e
gas or hydrocarbons produced from aatd watt, the lessee may apply for and ~e ~essor may grant pe~ission for ~e
developed. Duffs9 ~e ~me any such suspension of operaffons is in effect ~o lessee sha~l con~nua to pay ~e annual
ren{~ ct $2.00 per acre ce ~acflo~ tha~eolpro~ded hy (c) above, and 1his Jesse sha~ rem~n in effecl ~s though oil o~
gas was being produced from s~d i~nds,
(I)DIMOENCE-PREVENTION OF WASTE. To exercise reasonable dti[gen~e In drilling, producing, and opara~ng of
wail5 off Ibc land covered hereby, unless coflsent to suspend opera~ons lemporaflly Is granted by ~e/asset; Io
. on att opera~ons hereunder 1~ a good and workmanlike ~a~ner I~ accordance wJ(h approved me,ods and pracffce,
having due regaeff fo/the preven~on ofw~ ofoli and gas. of ~e enhance of waler to the oi$ or g~ bearing sands or
s~ata to the Ees~c~on or inju~ of such deposits, the prosecutes and conse~a~on o~ ~o pmpe~ for future
~rod uc~ve opera~ons a~d to ~e heallh and safe~ of workmen and employees: to plug securely Jn ~n ~pmved mann~
any weti before abandoning it, and not to abandon any we~t w~out permission of ~e ~ess~, nolte dril~ any welt wi~in
~o hundred {200) feat of any ct fl~e outer boundaries of Ihe land covered hereby, ~nlass b pro~ aganst ~a~nag~ by
?lie dd~e~ on 18ads adJolnlng'lBss Lhan 200 feet from Ih e p rope~ tines ~lereof; to c~d u~ at op era~ons sub]ecl ~ ~e
Inspec~on of the Jessoc to car~ out at ~e teaser's expense att reasonable radars ~d mqu~reme~ of~e lessor
relative to the pmven~on bfwa~G and p~ese~on of~e pmpe~ and the heal~ and safe~ of workmen ~clud~g fie
rep[anent and reseedln0 of d~lf~g sites ~ o~er areas disturbed by ~rlit~ng operaUons and on f~lture of ~e tease8 ac
to do the tes~r 6hall have the right, toge~er wfth o~er recourse herein pro~ded, Io e~ter e~ the prope~ b
damage or prevent waste at ~e lessee's expense; to abide by and confo~ b valid applicable regula~ons ~rescdbed b
re}mburse ~e owner of ~e sudace, If o~er ~an ~e ~essor, or lessee o~ grazing dgh~ ~ereo[ hr ~c1~8[ damages
~e~eto and [nJ~ to Impmvemen~ ~ereo~, provided, ~a~ ~e [~ssee 6hall not be held responsible for ac~ o~
p~ovldence or acUons beyond his
(m)T~E6 AND WAGES-FREEDOM OF PURCHASE. To pay, when due allt~es I~ully ass~sed and lev~ed under
the laws of ~e State of Wyoming upon [mprove~n~, cji and gas produced ~rom ~e land hereunder, or other right,
p~pe~ ~r asse~s ~f the ~essee~ b acc~rd ~ w~rkmen ~d empi~yees c~mp~e~ freed~m ~f purchase` and t~ pay ~ ....
wages due wo~mBn and employees In con[o~ance with the ~aws of ~e State of Wvo~ng. . ~ :"'. f-~· ':'
tn)ASSIGNMENTS OF LEASE-PRODUCTION AOREEMENTS. Notre assl0n this ieee or any Interest therein, nor ..: . ..
subject any posen of the ~eased premises except wi~ the consen[t~ w/i~ng of the lessor ~ust had and obtaine~. ~ ~ .
~i overrid{ng roy~fles to be valid, musl have the approval o~ the ~oa/~ or by the O~ce of State Lands and
Investmen~ when authority ~ do so has been de~egated by ~e Boar~ an~ w~ be recorded ~ ~s lease. T~e Bo~d 'L
rose,es the dghl of disapprove; of such overriding mya~as when In i~ opinion ~ey become excessk~ ~d ~e~e ~e ~-'
deb~en~ Io ~e proper development of lhe ~ased tends. .,'~ -'
to)DELIVER PREMISES IN CASE OF FORFEITURE. To degver up ~e le~ed premises, ~ aLI p~m~nent
improvements ~eon, Jn good order end cond~ In case offodetlu~e of ~is ~ease, but Els sha!t net be co ~ued to
prevent the re~v~, a~leraflon or renewal of eqaipmenl a~d improvements In the ord~na~ course