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HomeMy WebLinkAbout906289~ 3tOO:~lh (October Lq~2) UNITED STATES I S~riii N;. 0 4 ,0 6 DEPARTMENT OF THE INTERIOR WYW 161899 BUREAU OF LAND MANAGEMENT AND LEASE FOR OIL AND GAS .... . y 0qS_ &vol OFFER TO LEASE Fhe undersigneA }reverse) offers to lea.~ all or any of ' ' ":' · ; ' ~ ~ ' ' the lands tn l~em 2 that are available for lease pursuant to the Minera~ Leasing Act of 1920..as.ar0~endexl and supplementexl'(30 U.S.C. 181 seq.), the Mineral l~asing Act for Acquired Lands of 1947. as amended (30 U.S.C. 351-359), the'Attorney. General's Opimon of April 2. '19~1 (40 091 'Atty. Ge~.' 41~' or the Name SWEPI LP -. .... S.t~9:L PO BOX 576 -, ci,. S.~te. ' ' HOUSTON, TX 7700105 : .~ ..... This application/offer/lease is for: (Check only:One)]~ PUBLIC DOMAiN LANDS Surface ~gmg'agency if o~er ~'BLMi ~ ~" ' : UniffProject READ INSTRUCTIONS BEFORE COMPLETING Future rental payments must be made on or before the anniversary date to: Minerals Management Service Royalty Management Program P.O. Box 5640 Denver, CO 80217 [] ACQUIREI~"~.~I~DS (perceni,u.S. interest ...... RECEIVED 2/4/2005 at 11:55 AM RECEIVING # 906289 '~, .................. BOOK: $78 PAGE: 406 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY L~gal description of land requested: ~ . :' 'Parcel No.,: *SEE IT~.M 2. ~N ~NSTRuCTION$' BELO~v..pRIO~ To'cOMp~E'i~iNG PARCEL NUMBER" AND sALE:DATE: T R. Meridian Amount remined: Filing fee $ Rent~ fee $ Total acres applied for Total $ DO NOT WRITE BELOW THIS LINE . Land included in lease: 0230N R. Sec. 023 S2SE; 025 W2,SE; 026 ALL; 035 ALL; 1140W Meridian 06th State County Linooln Total acres in lease 1840.000 Rental retained $ 9"]~fi 0.0 his lease is issued granting the exclusive right to drill for, mine, extract, remove and dispose of all the oil and gas (except helium) in the lands described in Item 3 together with the right to build ~d maintain necessary tmprovements thereupon for the term indicated below, subject to renewal or extension in accoraance with the appropriate leasing authority. Rights granted are subject to }plicable laws, the terms, conditions, and attached stipulations of this lease, the Secretary of the Interior's regulations and formal orders in effect as of lease issuance, and to regulations and formal rders heseafler promulgated when not inconsistent with lease rights granted or specific provisions of this lease. OTE: This lease is issued to the high bidder pursuant to his/her duly executed bid or nomination form submitted under 43 CFR 3120 and is subject to the provisions of that bid m' amination and th--specified on this fo .... -]~ · f":~-"~' "7~ .... () ,~ ' ype and primary term of lease: THE UNITED STATES QJTa,.AMERICA O Competitive lease (ten years) Other EFFECTIVE DATE OF LEASE :"::::;::~ (Tide) DEc 0 1 2004 (Dam) 4. (a) Undersigned certifies that (1) offeror is a citizen of the United States; ,an association of such citizens; a municipality; or a corporation organized under the laws of the United States or of any State or Territory thereof; (2) all parties holding an interest in the offer are in compliance with 43 CFR 3100 and the leasing authorities; (3) offerors charge,~le interests, direct and indire~cr, in each public domain and acquired lands separately in th6 'same Sta~e do no{ exceed 246,080 acres in oll and gas leases (of which up to 200,000 acres may be in oil ,and gas options), or 300,000~acre.~ in leases in each leasing District in Alaska 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 located; (5) offeror is in compliance with qualifications concerning Federal coal lease holdings provided in sec. 2(aX2XA) of the Mineral Leasiog Act; (6) offeror is in ~omptiance with reclamation requirements for ,all Federal oil and g,'~ lease holdings ,as required by see. 17(g) of the Mineral Leasing Act; and (7) offeror is not in violation o~ see. 41 of the Act. (b) Undersigned agrees that signature to this offer constitutes acceptance of this lease, including all terms, conditions, and st~ ?ulatioos of which offeror has been g~ven notice, and any amendment or separate lease that may include any land described in this offer open to leasing at the time this offer was filed but oinitted for any reason frc~.~ this lease. Th~ offeror further agreos that this. offer carmo{ be withdrawn, either in whole or in part, unless the withdrawal is received by th.e proper BLM State Office before thi[ lease, an amendmg'01~:to th s eld/:t or a,sepamte lease, wh chever covers the land described in the withdrawal, has been signed un behalf of the United States. -:. Thi~ offer will be rejected and will afford offeror no praor~ty ff tt ts no{ properly completed and executed in ~c¢orqlance~with the regulations or if i'{ ,is no{ ~t~-c}~n'p~nied by the required payments, lg U.S.C. See. 1001 makes tt a crime for any person knowingly and willfully to make to any D~parlment or agel3~cy of the United States any f~¢fictitions or fraudulent stalemen~ or representations as to any matter within its jurisdiction. 0 7 (Signamre'of Lessee or Attorney-in-fact) LEASE TERMS Sec. I. Rentals~Rentals shall be paid to proper office of lessor in advance of each lease year. Annual rental rates pet acre or fraction thereof are: (a) Noncompetitive lease. '$1150 fo~ the first 5 ),ears; thereafter $2.00; (b) Competitive lease, $1.50; for the first 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 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 of prodncfiou, 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 anniversary 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) Noncompetitive lease, (b) Competitive lease, 12 sA %; (c) Other, see attachment; or as specified in regulations al 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 on the 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 condition on the premises where produced without cost to lessor. Lessee shall not be required to hold such production in storage beyond the last day of the month following the month in which production occurred, nor shall lessee be held liable for loss or destruction of royalty oil or other products 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 after a discovery in paying quantities. This minimum royalty may be waived, suspended, or reduced, and the 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 fl~e 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 lease site when such loss or waste is due to negligence on the part of the operator, or due to Ihe failure to comply with any rule, regulation, order, or citation issued under FOGRMA or the leasing authority. Sec. 3. Bonds--A bond shall he fded and maintained for lease operations as required under regulations. Sec. 4. Diligence, rate of development, umlization, and drainage--Lessee shall exercise reasonable diligence in developing and producing, and shall prevent unnecessary damage to, loss of, or waste of leased resources. Lessor reserves right to specify rates of development and production in the poblic interest and to require lessee to subscribe to a cooperative or unit plan, within 30 days of notice, if deemed necessary for proper development and operation of area, field, or pool embracing these leased lands. Lessee shall drill and produce wells necessary to protect leased lands from drainage or pay compensatory royalty for drainage in amount determined by lessor. Sec. 5. Documents, evidence, and inspection--Lessee shall file with proper office o£ 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 times and in such form as lessor may prescribe, lessee shall fu.'mish detailed statements showing amounts and quality Of all products removed and sold, proceeds therefrom, and amount used for production purposes or unavoidably lost. Lessee may be required to provide plats and schematic diagrams showing development work and improvements, and reports with respect to parties in interest, expeodimres, and depreciation costs, ha the form pre~rihed by lessor, lessee shall keep a daily drffithg record, 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 inspectio0 by any authorized officer of lessor, the leased prenns~ and all wells, improvements, machinery, and fixto~es 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 contracts, sales agreements; aCCounting records, and documentation Su,ch as bill~gs costs claimed as manufacturing, preparation, and/or transportation costs All such records shall be maintained in lessee's accounung offices For future audit by lessor. Lessee shall maintain required records for 6 years after they are generated or~ dan ahdli or investigation is underway, until released of the obligatmn 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 U.S.C. 552). Sec. 6. Conduct of operations--Lessee shall conduct operations in a manner that minimizes adverse 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 nol limited to, modification to siting or design of facilities, tinting 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 by lessor. If in the conduct of operatious, threatened or endangered species, objects of historic or scientific interest, or substantial unanticipated envirornnental effects are observed, lessee shall hnmediately contact lessor. Lessee shall cea~ any operations that would result in the destruction of such species or objects. Sec. 7. Mining operations--To 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 helinm--Lessor reserves the option ~f extracting or having extracted 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 Lmprovements, and shall save and hold lessor harmless from all claims for damage m: harm to persons or property as a result of lease operations. Sec. 10. Protection of diverse interests and equal opportonity--Lessee shall: pay when due all taxes legally assessed and levied under laws of the Stale or the United State.s; accord all employees complete freedom of purchase; pay all wages at least twice each month in lawful money of the United States; maintain a safe working environment in accordance with standard industry practices; and take 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 operated accessible to oil derived 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 1. Transfer of lease interests and relinquishment of lease As required by regulations, lessee shall file with lessor any assignment or other transfer of an interest in this lease. Lessee may relinquish this lease or any legal subdivision by,fding in the proper office a written relinquishment, which shall be effective as of 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 prenfises At such time as all or portio,ns ,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 etd improvements not deemed necessary by lessor for preservation of producible -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 committed 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 hot 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 not prevent later cancellation for the same default occurring at any other t~ne. Lessee shall be s. ubj?.t.o applicable provisional anc~ penalties of FOGRMA (30 U.S.C, 1701) Sec. 14. Heirs and sucCeSsors:in-interest--Each obligation of this lease shall extend to and be binding upon, and every benefit hereof shall ~norc to thc heirs, exgcuto!'s;:.administi'~ors. shc~essors, beneficiaries, or assignees of the respective parties hereto. WYWl 61 89§ .MULTIPLE MINERAL DEVELOPMENT STIPLrLATION ., 0408 OPerations will not be approved which,/_n the opinion of the authorized officer, would unreasonably interfere xv/th the orderly development and/or production from a valid exisfin~ mineral lease issued prior to this one for the same lands. ' THIS STIPULATION APPLIES TO ALL PARCELS LEASE NOTICE NO. I '/ i 6 1 8 9 O90 ;2: 2} "'".' 0409 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 withir~ 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. 3. Construction with frozen material or during periods when the soil material is saturated or when watershed damage is likely to occur. 4. Within 500 feet of Interstate highways and 200 feet of other existing rightsrof-way (i.e., U.S. and State highways, roads, railroads, pipelines, powerlines). 5. Within 1/4 mile of occupied dwellings. 6. 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. TI-[IS NOTICE APPLIES TO ALL PARCELS UNDER BLM JURISDICTION Ot}u :zs '- "S L A'SE NO,mE NO. 2 W ¥ W 1 6 BACKGROUND: i. ' The Bureau of Land Management (BLM), by including National Historic Trails within its National Landscape Conservation System, has recognized these trails as national treasures. Our responsibility is to review our strategy for management, protection, and preservation of these trails. The National Historic Trails in Wyoming, which include the Oregon, California, Mormon Pioneer, and Pony Express Trails, as well as the Nez Perce Trail, were designated by Congress through the National Trails System Act (P.L. 90-543; 16 U.S.C. 1241-1251) as amended through P.L.' 106-509 dated November 13, 2000. Protection of the National Historic Trails is normally considered under the National Historic Preservation Act (P.L. 89-665; 16 U.S.C. 470 et seq.) as amended through 1992 and the National Trails System Act. Additionally, Executive Order 13195, "Trails for America in the 2 l~t Century," signed January 18,2001, states in Section 1: "Federal agencies will...protect, connect, promote, and assist trails of all types throughout the United States. This will be accomplished by: (b) Protecting the trail corridors associated with national scenic trails and the high priority potential sites and segments of national historic trails to the degrees necessary to ensure that the values for which each trail was established remain intact." Therefore, the BLM will be considering all impacts and intrusions to the National Historic Trails, their associated historic landscapes, and all associated features, such as trail traces, grave sites, historic encampments, inscriptions, natural features frequently commented on by emigrants in journals, letters and diaries, or any other feature contributing to the historic significance of the trails. Additional National Historic Trails will likely be designated amending the National Trails System Act. When these amendments occur, this notice will apply to those newly designated National Historic Trails as well. STRATEGY: The BLM will proceed in this objective by conducting a viewshed analysis on either side of the designated centerline of the National Historic Trails in Wyoming, except, at this time, for the Nez Perce Trail, for the purpose of identifying and evaluating potential impacts to the trails, their associated historic landscapes, and their associated historic features. Subject to the viewshed analysis and archaeological ~nventory, reasonable mitigation measures may be applied. These may include, but are not limited to, modification of siting or design of facilities to camouflage or otherwise hide the proposed operations within the viewshed. Additionally, specification of interim and final reclamation measures may require relocating the proposed operanons within the leasehold, Surface disturbing activities will be analyzed in accordance with the National Environmental Policy Act of 1969 (P.L. 91- 190; 42 U.S.C. 4321-4347) as amended through P.L. 94-52, July 3, 1975 and P.L. 94-83, August 9, 1975, and the National Historic Preservation Act, supra, to determine if any design, siting, timing, or reclamation reqmrements are necessary. This strategy is necessary until the BLM determines that, based on the results of the completed viewshed analysis and archaeological inventory, the existing land use plans (Resource Management Plans) have to be amended. The use of this lease notice is a predecisional action, necessary until final decisions regarding surface disturbing restrictions are made. Final decisions regarding surface disturbing restrictions will take place with full public disclosure and public involvement over the next several years if BLM determines that it is necessary to amend existing land use plans. GUIDANCE: The intent of this notice is to inform interested parties (potential lessees, permittees, operators) that when any oil and gas lease contains remnants of National Historic Trails, or is located within the viewshed of a National Historic Trails' designated centerline, surface disturbing activities will require the lessee, permittee, operator or, their designated representative, and the surface management agency (SMA) to arrive at an acceptable plan for mitiganon of anticipated impacts. This negotiation will occur prior to development and become a condition for approval when authorizing the action. THIS NOTICE APPLIES TO ALL PARCELS UNDER BLM JURISDICTION WYWI61899 TIMING LIMITATION STIPULATIONS - TLS 0411 No surface use is allowed during the following time period(s). This stipulation does not apply to operations and maintenance of production facilities. (1) Mar 1 to Jun 30; On the lands 'described below: (2) as mapped on the Kenm~erer Field Office GIS database; 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 ou the use of the stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) ~-- WYW161899 TIMING LIMITATION STIPULATIONS - TLS No surface use is allowed during the following time period(s). This stipulation does not apply to operations and maintenance of production facilities. (1) Nov 15 to Apr 30; On the lands described below: (2) as mapped on the Kemmerer Field Office GIS database; For the purpose of (reasons): (3) protecting big game crucial winter range. Any changes to this stipulation will be made in accordance with the land use plan and/or the regfllatory provisions for such changes. (For guidance on the use of the stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) -:.?.(c' . i. 04!3 WYW161899 CONTROLLED SURFACE USE STIPULATION - CSU Surface occupancy or use is subject to the following special operating constraints. (1) Surface occupancy or use within crucial big game winter range will be restricted or prohibited unless the operator and sUrface managing agency arrive at an acceptable plan for mitigation of anticipated impacts. This plan may include development, operations, as well as the number, location, and maintenance of facilities; On the lands described below: (2) as mapped on the Kemmerer Field Office GIS database; Fo]' the purpose of: (3) limiting winter access, protecting habitat quality, and preventing the loss of crucial big game winter range. Any changes to this stipulation will be made in accordance with the land use plan and/or the regfilatory provisions for such changes. (For guidance on the use of the stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) ~ ' ATTACHMENT TO EACH LEASE WYW161 899 NOTICE TO LESSEE 04!4 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.