HomeMy WebLinkAbout900191 PRODUCERS 88-PAID UP
R~v. 5-60, No. 2, 94CR
' OIL AND GAS LEASE
AGREEMENT, Made and entered into the 13th' ~.:laV of May ~ 2004, by and b~twe~n FRED W. MARBLE AND SHERYL P. MARBLE, husband and wll~,
whose address is P.O. Box 796,I Billings, ikT"159103, hereinafter called Lessor (whether one or more) and QUESTAR EXPLORATION AND
PRODUCTION COMPANY whose adC2ess is 1050 17TM St., Suite 500, Denver, CO 80265, hereinafter called Lessee:
WI NESSETH, That the Lessor, for a{td in consideration of TEN AND MORE ( $10.00 + ) DOLLARS cash in hand paid,
the receipt and sUfficiency are hereb7 ~cknowledged, and the covenants and agreements hereinafter contained, has granted,
demised, leased and let, and by these, presents does grant, demise, lease and let exclusively unto the said Lessee, the land
hereinafter described, with the exclusive right for the purpose of mining, exploring by geophysical and other methods, and
operatipg, f0~r and producing therefrom oil and all gas of whatsoever nature or kind, with rights of way and easements for la 'n
pi 6':line~ '~ervicin or drillin other wells in the vi' ' ' , d erection of structures thereon to roduce sav~dg
~.:..- ~ ......... . ~ ,~ g g ctmty of smd lands an
' "4~:'" .~e~na~&~j?~.'~dL~cts~nal~h~tn~r'~:~.cntg~fd~s~b~tsh~v~sh' ~on.~vi~versionary, remaindermen andPexecut~y rights
.-';~f":~..EE'E"~i~'.,'-&" AT'FACHED I-IEg-E'ro AND MADE A PART HEREOF.
SEE EXHIBIT "B" ATI'ACHED HEI~ETO AND MADE A PART HEREOF
~-A - ,' ,I RE'C'E ivED
BOOK 5 5 8It~AG~_z~'~_~4 'LINCOLN COtJ~,lT\' CLERK
and containing 1717,65 acres, :mOre or less; tOgether with all slrips or parcels of land (not, however, to be construed to
include parcels comprising a regular 4fi~acre legal subdivision or lot of approximately corresponding size) adjoining or contiguous
to Hie above described land and ownec~ o~ claimed by Lessor.
1. It is agreed that this lease Shall remain in force for a term five (5) years and as long thereafter as oil or ~as or whatsoever
nature or kind is produced from said ~eased premises or on acreage pooled therewith, or drilling operations are continued as
hereinafter provided. If, at the expirationiof the prinmry term oftlds lease, oil or gas is not being produced on the leased premises
or on acreage pooled therewith but Lessee is then engaged in drilling or re-working operations thereon, then this lease shall
continue in force so long as operations.ar,, being continuously prosecuted on the leased premises or on acreage pooled therewith;
and operations shall be considered to .be' continuously prosecuted if not more than ninety (90) days shall elapse between the
completion or abandonment of one we}l ~nd the beginning of operations for the drilling of a subsequent well. If after discovery
of oil or gas on said land or on acreag: Pooled therewith, die production thereof should cease from any cause after the primary
term, this lease shall not terminate ifL6,ssee commences additional drilling or re-working operations within ninety (90) days from
date of cessation of Production or from' date of completion of dry hole. If oil or gas shall be discovered and produced as a result
of such operations at or after the expirai:ion of the primary term of this lease, this lease shall continue in force so long as oil or gas
is produced from the leased premises c.,r on acreage pooled therewith
2. This is a pAID?UP LEASE, .In cpg.sidemtion o,f~he dowla gash payment, Le%sor agrees that Lessee shall not be obligated, except
as otherwise provided herein, to con~ii,m~e or c~ntinUe any 6perations during~the prinmxy term. Lessee may at any time or times
during or after the primary term surr!~n~er this lease as to all or any portion of said land and as to any strata or stratum by
delivering to Lessor or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the
acreage surrendered....
3. In Consideration of the premises fie said Lessee covenants and agrees:
1st. To deliver to the credit of Leli.s0r, free of cost, in the pipe line to which Lessee may connect wells on said land, the equal
fourteen percent (14%) part of all oil g reduced and saved from the leased prentises. .
· 2nd. To pay Lessor fourteen per~!e~t (14%) of the gross proceeds each year, payable quarterly, for the gas from each well
where gas only is found, while the Same gs being used off the premises, and if used in the manufacture of gasoline a royalty of
fourteen percent'(14%), payable monthly, at the prevailing market rate for gas.
3rd. To pay Lessor for gas prod~sed from any oil well and used offthe premises or in the manufacture of gasoline or any
other product a royalty of fourteen perse0t (14%) Of the proceeds, at the mouth of the Well, payable monthly at the prevailing
market rate.' . . ' , : i ·
,, ' · ';~i:,'~, ~": : , , .'., ,,'i.~i,' ,,,,'. ,,: ..
· '4. Where gas from a well capable of producing gas is not sold or used, Lessee may pay or tender as royalty to the royalty owners
One Dollar per year per net royalty acr~ r~tained hereunder, such payment or tender to be made on or before t!~e anniversary date
of t.his leas~ :next e~-uing after the:expit:ation .of 90 daYs from the date such well is Shut in and thereafter On Or before the
anmversary date of this lease during the period such well is shut in. If such payment or tender is made, it will be considered that
gas is.being produced within the meaning of this lease. -
51 If said LessOr owns a less interest h~ the above described land than the entire and undivided fee simple estate therein then the
royalties (including any shut-in gas ro'/al'ty)'herein provided for shall be paid 'die Lessor only in the proportion which Lessor's
interest bears to the whole and undivi0edl fee.~.
6. Lessee shaH-have the right to use; t~:eel of cost, gas, oil and water produced on said land for Lessee's Operation thereon, 'except
water from the wells of LeSsor,. ' , :,.~ .~ .~ '. ~ · : ·
7. When requested by Lessor,.Lessee Sha'll bury Lessee's pipe line below plow depth: . ·
8. No well shall be drilled nearer tha~ '200 feet to the house or barn now on said premises without writte/! consent of Lessor.
· 9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land.
10. Lessee shall have the right at any tlme to remove all machinery and fixtures placed on said premises, inclnding the right to
draw and remove casing. ' ~ ' '
...,.i.> i ..... :.~ ", ' '"
11. The rigihs 6I Lessor and Lessee heJ eunder may be assignea i~:~i~ole or part. No change in ownership of Lesso~iS ihterest (by
assignment or otherwise) shall be bind :.ng on Lessee until Lessee has been £umished with notice, consisting of certified copies of
all recorded instruments or documents and other infornmtion necessary to establish a complete chain of record title from Lessor,
and then only with respect to payments thgreafter made No other kind of notice, whether actual or constructive, shall be binding
on Lessee. No present or future divisior~ of Lessor's ownership as to different portions or parcels of said land shall operate to
enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such
division. If all or any part of this lease !s assigned, no leasehalcl mvne. r.s~alJ be liable for any act or omission of any other
leasehold owner.
12. Lessee, at its option, is hereby given ttie right and power at any time and frown time to ti~ne as a recurring right, either before
or after production, as to all or any part of~he land described herein and as lo any one or more of the formations hereunder, to pool
or unitize the leasehold estate and the nfineral estate covered by this lease with other land, lease or leases in file immediate vicinity
for file production ofoil and gas, or se[arately for the production of either, when in Lessee's judgment it is necessary or advisable
to do so, and irrespective of whether au :hoBty similar to this exists with respect to such other land, lease or leases. Likewise, units
previously formed to include formations not producing oil or gas, may be reformed to exclude such non-producing formations.
The forming or reforming of any uni: sl~all be accomplished by Lessee executing and filing of record a declaration of such
unitization or reformation, which declarati:on shall describe the unit. Any unit may include land upon which a well has theretofore
been completed or upon which operatiot,~s for drilling have theretofore been commenced. Production, drilling or re-working
operations or a well shut in for want o.-' a market anywhere on a unit which includes all or a part of fids lease shall be treated as
if it were production, drilling, or re-~ ~orl~ng operations or a well shut in for want of a market under this lease. In lieu of the
royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from the unit so pooled
royalties only on the portion of suc~ p~oduction allocated to this lease; such allocation shall be that proportion of the unit
production that the total number of sur'hc6 acres covered by tiffs lease and included in the unit bears to the total number of surface
acres in such unit In addition to the fo :eg0ing, Lessee shall have the right 1o unitize, pool, or cmnbine all or any part of the above
described lands as to one or more of ';hei formations thereunder with other lands in the same general area by entering into a
cooperative or milt plan of developme:lt 6r operation approved by any govermnental authority and, from time lo time, with like
approval, to modify, change or termim le ,imy such plan or agreement and, iu such event, the terms, conditions and provisions of
tiffs lease shall be deemed modified to cont'orm to the terms, conditions, and provisions of such approved cooperative or unit plan
of development or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall
be satisfied by compliance with the d~illing and development requirements of snch plan or agreement, and this lease shall not
terminate or expire during the life ofsu:h Plan or agreement. In the event that said above described lands or.any part thereof, Shall
hereafter be operated under any such C{)operative or unit plan of development or operation whereby rite production therefrom is
allocated to different portions of the land covered by said plan~ then the production allocated to any particular tract of land shall,
for the purpose of computing the royalt les ~o be paid hereunder to Lessor, be regarded as having been produced from the particular
tract of land to wlffch it is allocated ar,d not to any other tract of land; and the royalty payments to be made hereunder to Lessor
shall be based upon production only as,so allocated. Lessor shall formally express Lessor's consent to any cooperative or unit plan
of development or operation adopted Ly Lessee and approved by any governmental agency by executing the same upon request
of Lessee.
13. All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules or
Regulations, and this lease shall not b,: temfinated, in whole or in part, nor Lessee held liable in damages, for failure to comply
therewith, if compliance is prevented by, or if such failure is the result of, any such Law, Order, Rule or Regulation.
14. Lessor hereby warrants and agrees to: defend the title to the lands herein described, and agrees that the Lessee shall have the
right at anytime to redeem for Lessor; by.payment, any mortgages, taxes or other liens on the above described lands, in the event
of default of payment by Lessor and b: sUbrogated to the rights of. the holder thereof, and Lessor hereby agrees that any such
payments made by Lessee for the Lessor may be deducted from any amounts of money which may become due the Lessor under
the terms of this lease.- The undersig~led Lessors, for themselves and their heirs, successors and assigns, hereby surrender and
release all right of dower and homestead in the premises described herein, msoPar as said right of dower and homestead may in
any way affect the purposes for which t!~s lease is made, as recited herein.
15. Should any one or more of the par ~ies hereinabove named as Lessor Ifil to execute this Lease, it shall nevertheless be binding
upon all such parties who do execute Las Lessor. The word "Lessor", as used in this lease, shall mean anyone or more or all of
the parties who execute fids lease as Lessor. Ail the provisions of this lease shall be binding on'the heirs, successors and assigns
of Lessor anti. Lessee...
IN WI~SS' ~R~OF; ~ i'fi~tm~h't :i-s-'~hi~d hs't~?~e-dfite first' above ivi-itt~n.
X ' . _
Sheryl P. lV~arble
STATE of Montana
or 'fe4t b
%%. '~a~
Fred W. Marble
ACKNOWLEDGMENT-INDIVIDUAL
day of~ ~h. JL , 2004, personally appeared
I have hereunto set my band and affixed my notarial seal the day and year last above written.
}
ME, the undersigned, a Notre y Public, in and for said County and State, on this
~Marble/,husb~d ~,~nd wifo
-. ' ,'..: ~ . '5 '
Notary Public:
Address: ~Z) ' ~ I
88G
EXHIBIT "A"
Attached to and mace a part of that certain Oil and Gas Lease dated May 13, 2004 by and
Between Fred W. Marble awd Sheryl P. Marble, husband and wife, as Lessors and Questar
Exploration and Production'Company, as Lessee, covering the following described property
situated.in Lincoln County, W~,oming to-wit:
TOWN.. SltlP 24 NORTH, !RANGES 112 AND 113 WEST OF THE 6TM P.M
gesorvey Lot//43, also described as Resurvey Tract//43 (1,072.96 acres), being formerly
described as Lot 7, S½NE¼', E½SW¼, SE¼NW¼, NW¼SE¼ of Section 6; and Lot 1,
NE¼NW¼ of Section 7, Tcwhship 24 North, Range 112 West, 6th P.M.; and S½NW¼, SW¼,
S½SE¼ of Section 1; Lot 3.i S½NE¼, SE¼NW¼, E½SE¼, NW¼SE¼, NE¼SW¼ of Section 2;
and N½NE¼ ~of' Section 12,! Township 24 North, Range 113 West, 6~ P.M.
TOWNSItI~ 24 NORTH, RANGE 112 WEST OF THE 6TM P.M.
Section 4: Lots 3, 4, 5, 8,9,~ 10
Section 5- Lots 1, 8
Section 8' Lot 1
Section 9: Lot 2
TOWNSHIP 25 NORTH, RANGE 112 WEST OF TIlE 6TM P.M.
Section 34: Lots 3, 4, E½N;i~q, N½SE¼
Section 35: Lots 6, 7, W½N,%:¼.
EXCEPTING TIlEREFROM THE FOLLOWING PARCELS OF LAND:
Three parcels of land deeded for the right-of-way for Wyoming State Highway 89, to Lincoln
County, Wyoming; said deed recorded on NoVember 3, 1937, in Book 18 of Deeds, Page 472,
and later redescribed in deed recorded on JanUary 25, 1938, in Book 21 of Deeds, Page 75, in the
official records of Lincoln County, Wyoming, said parcels together containing 36.44 acres, more
or less. ~
Containing 1,717.65 acres, shore or less.
Lincoln County, Wyoming ~
EXItIBIT "B"
Attached to and made a part of that certain Oil and Gas Lease dated May 13, 2004 by and
between Fred W. Marble and Sheryl P. Marble, husband and wife, as Lessors and Questar
Exploration and Production!Company, as Lessee.
Not Withstanding ani~thing to the contrary contained in the printed portion of the lease to
which this Exhibit "B" is attack~ed, Lessor and Lessee also agree as follows:
1. In the event ihe term of this Lease is extended beyond the primary term by
production, said term shall be extended only as to those lands allocated by
governmenta~ authority or regulation to the spacing unit around each producing
well; provide:t, aowever, Lessee may continue this Lease in full force and effect as
to all lands covered hereby so long as drilling operations are being conducted
continuously upon the leases premises or lands pooled therewith. For the purposes
hereof, "continUously'' shall mean that there shall be no more than one hundred
twenty (120) days between the completion or abandonment of one well and the
commencement of another well.
In the event of a producing well or wells that do not produce due to the lack of a
pipeline hoo~.~p, or that become shut-in due to mechanical breakdowns that
prevent the well or wells from producing, and royalty payments cease during a full
calendar yea~', Lessor must pay Lessee an annual shut-in rental in lieu of royalty at
an amount ~t~ual to $5.00 per net mineral acre
Lessee is her.~by granted the option of extending this Lease, under the same terms
and conditions as provided herein, for a period of three (3) years from the
expiration of the original primary term as to all or any portion of the acreage then
held hereunder. Lessee may exercise this option by paying or tendering to the
Lessor, either by check, money order or wire transfer, on or before the date which
this Lease or any portion thereof would expire, as additional consideration, the
sum of forty .do.',.lars $40.00 per net mineral acre for each acre so extended.
SIGNED FOR IDENTIFICATION
Fred W. Marble
eqP.'Marble