HomeMy WebLinkAbout900192 PRODUCERS 88-PAID UP
': ~? R~v. 5-~0, No. 2, 94CR ~ '
AGREEMENT, Made and ~terod into the 13th ~.., cif.~r,d~'_,.2oo4; by, a~_~'~ JOHN FII~EDLUND AND BESS SNYDER FREDLUND, husband and
wife. whoae addresa ia P.O. Box 136:2. Billin~,~h~ e~- '~l~d.,~"L~'~'~li (whefl~er one or more) and QUESTAR EXPLORATION AND
PRODUCTION COMPANY whose addre:~s°.:'1050. ~i~'~S.~t., S~it_el00, Denver, CO 80265, hereinafter called Lessee:
W1TNESSETH~ That the Lessor, for and,~ oopsidS/~'fi~/fl~r ,TEI~ AND MORE ( $10.00 + ) DOLLARS cash in hand paid,
the receipt and sufficiency are hereby ~!d~o/v,l~lged, an.~,fl;o, cog[nants and agreements hereinafter contained, has granted,
demised, leased and let, and by these t,r~t~~~l~t~..dLn~,~e, lease and let exclusively unto the said Lessee, the land
hereinafler described, with the exclusi~.~o.~p~~.m~.~ning, exploring by geophysical and other methods, and
operating for and producing therefrom o31 ~d'~l~~ver nature or kind, with rights Of way and easements for laying
pipe lines and servicing or drilling other wel~ ls in the ~t~"f~ of said lands, and erection of structures thereon to prodnce, save and
take care of said products, all that certa(n iract of land, together with any reversionary, remaindermen and execntory rights
therein, situated in Lincoln County, Wycming, described as follows, to-wit:
SEE E)O-ffBIT "B" ATFAcHED HERE FO AND MADE A PART HEREOF
. : . ~ ..... ~ ~ ~ ~ ~.
and contmmng 1717.65 acres, m3re or less, together w~th all strips or ~arcel~ Oi~'l~fid (nol_ however to be constru,~A
in I .... ·
cude parcels compnsrug a regular 40-~ cr~ legal SUbdimsmn or lot Ofapproximalely corresponding size) adjoining or contiguous
to the above described land and owned Cr claimed by LessOr.
1. It is agreed that lhis lease shall remain in force for a term five (5) years and as long thereafter as oil or gas of Whatsoever
nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations are continued as
hereinafter provided. If, at the expirafior of the primary term of this lease, oil or gas is not being produced on the leased premises
or on acreage pooled therewith but Lesseel is then engaged in drilling or re-working operations thereon, then this lease shall
continue in force so long as operations a'e .]being continnouSly prosecuted on the leased prenfises or on acreage pooled lherewith;
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 well an,!] the beginning of operations for the drilling of a subseqnent well. If after discovery
of oil or gas on Said land or on acreage ?Doled therewith, lhe production thereof should cease from any cause after the primary
term, this lease shall not tCrminat~ ifLes,,~ee conunences additional chSiling or re-working operations within ninety (90) days from
date of cessation of production or from date °f completion of dry hole. If oil or gas shall be discovered and produced as a resnlt
of such operations at or after the expirati6n Of the primary term of lids lease, this lease shall continue in force so long as oil or gas
is produced from the leased premises or !on.' acreage pooled therewith.
2. Tiffs is a PAID-UP LE^$E. In consideration of the down cash paymenl, Lessor agrees that Lessee shall not be obligaled except
as other~4se provided herein, to commer;ee or continue any operations during the primary term. LesSee may'at any time or limes
during or after the primary terni surrender this lease as to all or any porlion of said land and lis to any slrala or stralmn 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.
~. In consideratio~ of the PremiSes the .qmd LeSSee ¢ovenahtS and agrees:
Isl. To deliver to the credit 0f Lessi?, ;free of cOSt~ in the pipe line to which Lessee may connect well.g on said la~djfl,e equal
fourteen Percent (14%) part of all oil prc.,dnced and saved from the leased premises.
2nd. To pay Lessor fourteen percent (14%) of the gross proceeds each year, payable quarterly, for the gas from each well
where gas only is found, while the same 'is being used off the premises, and if used in the manufacture of gasoline a royalty of
fourteen percent (14%), payable monthN ai the prevailing market rate for gas.
3rd. To pay Lessor for gas produci d ~rom any oil well and used offthe premises or in the manufaCtUre of gasoline or any
other product a royalty of fourteen percent '(14%) of the proceeds, at file mouth of the well, payable ~nonthly at lhe prevailing
market rate.
4. Where gas from a well capable ofprcducing gas is not sold or used. Lessee may pay or tender as royalty to the royalty owners
One Dollar per year per net royalty acre ratv, ined hereunder, such payment or lender to be made on or before the anniversary date
of this lease:next ensuing after the expiration of 90 da);s frown the date such well is shnt in and thereafter on or before the
anniversary date of fids lease during the ~eriod 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.
5. If said Lessor owns a less interest in the ~above described land than tile entire and undivided fee simple estate therein, then the
royalties (including any shut-in gas royMt~) herein provided for shall be paid the Lessor only in the proportion which Lessor's
interest bears to the whole and undivided fee.
6. Lessee shall have the right to use, fre} o~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 sh~ !bUry Lessee,s pipe line below plow depth.
8. No well shall be drilled nearer than 200 feet to the house or barn now on said premises without written consent of Lessor
9. Lessee shall pay for damages eaused'b~- Lessee's operations to growing crops on said lan&
~10. Lessee shall have the right at any time :[o remove all machinery and fixtures placed on said premises including the right to
draw and remove casing· , '
11. The rights of Lessor and LesSee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest (by
assignment or otherwise) shall be binding qn Lessee until Lessee has been fi~rnished with notice, consisting i)f certified copies of
all recorded instruments or documents a~td other information necessary to establish a complete chain of record title from Lessor,
and then only with respect to payments thereafter made. No other kind of notice, whether actual or constructive, shall be binding
on Lessee. No present or future division r!f Lessor's ownership as to different portions or parcels of said land shall operate to
enlarge file obligation~ or diminish the ri:gb!s of Lessee, and all Lessee's operations may be conducted without regard to any suc, h
division. If all or any part of this lease isiassigned, no leasehold or/near ~hal[ be liable for any act or omission of any other
leasehold owner. ~: ~' {_}~2}~tjqtj~.~ ~ 8 ~
12. Lessee, at its option, is hereby given .the, right and power at any time and from time to time as a recurring right, either before
or after production, as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool
or lmifize the leasehold estate and the mineral estate covered by fids lease with other land, lease or leases in the immediate vicinity
for the production ofoil and gas, or separately for the production of either, when in Lessee's judgntent it is necessary or advisable
to do so, and irrespective of whether authOri!.y similar to this exists with respect Io 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 unit r;hall be accomplished by Lessee executing and filing of record a declaration of such
unitization or reformation, which declar~ lion shall describe the unit Any unit may include land upon which a well has theretofore
been completed or ripen which operations for drilling have theretofore been commenced. Production, drilling or re-working
operations or a well shut in for want of ~, market anywhere on a unit which iuclodes all or a part of fids lease shall be treated as
if it were production, drilling,-or re-working operations or a well shut in for want of a market under this lease. In lien of the
royalties elsewhere herein specified, inc;iuding shut-in gas royalties, Lessor shall receive on production from the unit so pooled
royalties only on the portion of such production allocated to this lease; such allocation shall be that proportion of the unit
production that the total number of surfa~:e acres covered by tlfis lease and included in the unit bears to the total number of surface
acres in such unit. In addition to file fore going, Lessee shall have the right to unitize, pool, or combine all or,'my part of tile above
described lands as tO one or more of tile, formations theretmder with other lands in the same general area by entering into a
cooperative or unit plan of development, or operation aPproved by any governmental authority and, froin time to time, with like
approval, to modify, change or terminate.' av~y such plan or agreement and, in such event, file terms, conditions and provisions of
this lease shall be deemed modified to ce'afcrm 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 driI lng and development requirements of snch plan or agreement, and fids lease shall not
terminate or expire during the life of sue[ pl,,ln or agreement. In the event that said above described lands or any part thereof, shall
hereafter be operated under any Such cooperative or unit plan of development or operation whereby the production therefrom is
al ocated to different portions of the lane covered by smd plan, then the production allocated to any particular tract of land shall,
for the purpose of computing the royaltie ~ to be paid herelmder to Lessor, be regarded as having been produced front file particular
tract of land to which it is allocated and not to any other tract of land; and the royalty payments to be made hereunder to Lessor
shall be based upon production only as st'al~,ocated. Lessor shall formally express Lessor's consent to any cooperative or milt plan
of development or operation adopted by Le~,see and approved by any governmental agency by executing the same upon request
of Lessee. ~
13. All express or implied covenants cf this lease shall be subject to all Federal and State Laws, Executive Orders, Rules or
Regulations, and this lease shall not be len:finated, in whole or in part, nor Lessee held liable in damages, for failure to comply
therewith, ff compliance is prevented b2~, o~ if such failure is the result of, any such Law, Order, Rule or Regulation.
14. Lessor hereby warrants and agrees t~ defend the title to the lands herein described, and agrees that the Lessee shall have the
right at any time 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 be mb.regaled to the rights of the holder thereof, and Lessor hereby agrees that any such
payments made by Lessee for the Lesso~, miiy be deducted from any amounts of money which may become due the Lessor under
the terms of this lease. The undersigne't Lessors, for themselves and their heirs, successors and assigns, hereby surrender and
release all right 'of dower and homestead in the premises described herein, insofar as said right of dower and homestead may in
any way affect the purposes for which t}~is !ease is made, as recited herein.
15. Should any one or more of the partieis h,ereinabove named as Lessor fail to execute this Lease, it shall nevertheless be binding
upon all such parties who do execute it ~ s Lessor. The word "Lessor", as used in this lease, slmll mean any one or more or all of
the parties who execute this lease as Less;or: All.the provisions of this lease shall be binding on file heirs, successors and assigns
of Lessor and Lessee. '~ '
IN WITNESS WHEREOF, this instrmhent is executed as of the date first above written.
x
Bess Snyder Frb~lund ' .
STATE of Montana
BEFORE ME. the undersigned, a Notary ' )ublic, in and for said Couuty and State, on this day of ,2004, personally appeared
John Fredlund and Bess Snyder Fredlund, husband and wife.
IN WITNESS WIiEREOF, I have herean"o set my hand and affixed my notarial seal the day and year last above written.
Notary Public: n- _ ' . .~
e
EXHIFIIT "A"
$80
Attached to and m~.d~ a part of that certain Oil and Gas Lease dated May 13, 2004 by and
Between John Fredlund anJ Bess Snyder Fredlund, husband and wife, as Lessors and Questar
Exploration and Productio?~ Company, as Lessee, covering the following described property
situated in Lincoln County( Wyoming to-wit:
TOWNSHIP 24 NORTHL RANGES 112 AND 113 WEST OF THE 6TM P.M
Resurvey Lot//43, also dercribed as Resurvey Tract//43 (1,072.96 acres), being formerly
described as Lot 7, S½NE!6, E½SW¼, SE¼NW¼, NW¼SE¼ of Section 6' and Lnt 1
NE¼NW¼ of Sectmn 7, Township 24 North, Range 112 West, 6m P.M.; an~l S%~,1~)4', SW¼,
S½SE¼ of Section 1; Lot 3, S½NE¼, SE¼NW¼, E½SE¼, NW¼SE¼, NE¼SWV4 of Section 2;
and N½NE¼ of Section 1.~, Township 24 North, Range 1 '13 West, 6t~ P.M.
TOWNSHIP 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 THE 6TM P.M.
Section 34' Lots 3, 4, E½1xfE¼, N½SE¼
Section 35' Lots 6, 7, W½NW¼
EXCEPTING TItEREFROM THE FOLLOWING PA RCELS OF LAND:
Three parcels of land deeds:d, for the right-of-way for Wyoming State Highway 89, to Lincoln
County, Wyoming; said de,Sd, 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 Cqunty, Wyoming, said parcels together containing 36.44 acres, more
or less.
Containing 1,717.65 acres, more or less.
Lincoln County, Wyoming
EXHIBIT "B"
891
Attached to and made a part of that certain Oil and Gas Lease dated May 13, 2004 by and
between lohn Fredlund and Bess Snyder Fredlund, husband and wife, as Lessors and Questar
Exploration and Productio!a Company, as Lessee.
Not withstanding any[.hing to the contrary contained in the printed portion of the lease to
which this Exhibit "B" is a;.:tached, Lessor and Lessee also agree as follows:
In the evem the term of this Lease is extended beyond the primary term by
production, said term shall be extended only as to those lands allocated by
governmem'al authority or regulation to the spacing unit around each producing
well; provi6ed, however, 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 (12(I) days between the completion or abandonment of one well and the
commenceraent of another well.
In the event'of a producing well or wells that do not produce due to the lack of a
pipeline hoolmp, 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 year, Lessor must pay Lessee an annual shut-in rental in lieu of royalty at
an amount equal to $5.00 per net mineral acre.
Lessee is he, reby 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 easy portion thereof would expire, as additional consideration, the
sum of forty dollars $40.00 per net mineral acre for each acre so extended.
SIGNED FOR IDENTIFICATION
X~n3~'-~
Bess ~r~r Fre~llund