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HomeMy WebLinkAbout906903Fa'a, 3100-1~h UNITED STATES Serial No. L',, 0 5' ~ (October Lo~I) .;~DEPARTMENT OF THE INTERIOR ' 9 - WYWI. ,.L6z35~ BUREAU OF LAND MANAGEMENT The understgned (reverse) offers to lease all or any of the lands in Item 2 that are available for lease pursuant to 'the Mineral Leasing Act of 1920, as amended and supplemented (36 '0(S.C. 181 et seq. L me Mineral 14asing Act for Acquired Lands of 1947· as amend,~.d (30 U.S.C 35.1-359L the Attorney General's Opinion of April 2, 1941 (40 Op. Atty. Gen. 41), or the I Name Street City. State..Zip Code. FREEMA~'.~VESTMENT$ 3415 $ CLA'YTON BLVD 2. This applicatio~offer/l~e is for: (Oeck only One)_ ~ PUBLIC.DOMAIN L~DS- Surh~e mmgmg age~'y qf o~ei ~an BLM:' READ INSTRUCTIONS BEFORE COMPLETING ~:.. Fu ~ur e,..r ent al'..' paymeht s,thtfiS k.;be [] ACQUIRED'LANDS (pe~:cenl ~ S Unit/Pro)ecl Legal description of land requested:,; ',.:-' ,~. *Parcel No.z- ' . *Sale Date' (m/d/y) '*sEE ITEM 2 IN.INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER ,AND SALE DATE. T. Meridian Sta~e .L ~ ".. ..... "Cot4nty' :"; '";: ~ ;"'~:~':?"~'. :.t' t·.~&:: RI=CEIVF:D 3/7/2005 at ~ 0:58 AM RECEIVING # 906903 BOOK: 580 PAGE: 272 JEANNE WAGNER ......... · _ '~,", '"'-~ .'-"- LINCOLN~ COUNTY CLERK, KEMMERER, WY Amount remined: Filing fee $ Rental fee $ Total acres applied for Total $ DO NOT WRITE BELO%' Tills LINE 3. Land included in lease: T. 0260N See. 019 R 111 OW Meridian 06th state W Y County Linooln E,~E2, Total acres in lease 160.000 Rental retained $ ~.0.00 This lease is msued 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 and maintain necessary improvements thereupon for the term indicated below, subject to renewal or extension in accor0ance with the appropriate leasing 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 lease issuance, and to regulations and formal orders hereafter promulgated when not incons~sten! with lease rights granted or spectfic provisions of this lease. NOTE: This lease is issued to the high bidder pursuant to Ms/her duly executed bid or nomination form submitted under 43 CFR 3120 and is subject to the provislon~ of that bid or nomination and tho~ specified on this form. , Type and primary term of lease: TH STATES OF AMERICA Noncompetitive lease (ten years) b/ .."-;Y /// ( 'g . g ~ ~ ~ompe,,ve,~eCte.~) C~< ~'~,,i~ ~i.o.~.~. ~i.~.,.,~.. JAN 1 1 2005 J [Title) 'FEB 0 ! [] Other EFFECTIVE DATE OF LEASE -:!: :i: ', :i:!::: :, -~ ~ ,~ ' ,,, 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 Tetrltory thereof; (2) all parties holding an interest in the offer are in compliance with 43 CFR 3100 and the leasing authorities; (3) offerods chargeable interests, direct and indirect, in each public domain and acquired lands separately in the same Stae do not exceed 246,080 acres in oil and gas lea.scs (of which up to 200,000 acres may be in oll and g~ optlons~ or 300,000 acres in leases in each leasing District in AI,~ 'l'lm of which up to 200,000 acres may be in opticos, (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 Le~ing Act; (6) offeror is in compliance with reclamation requirements for all Federal oil and gas le,~e holdings ,as required by see. l?(g) of the Mineral Le,~ing Act and (7) offeror is not in violation oLseq. 4'). ~f the Ac"t. '-" Co) Undersigned agrees that signatUre to this offer constitutes acceptance of this lease, including all terma, condltior~, ,'md stipulations of Wi~ich offeror hJ~ been given notice, and any amendment or separate lease that may 'include any hand described in this offer open to leasing at the time this offer was filed but omitted for any masun from this lease. The offeror further agrees th~ this Offer cannot be withdrawn, either in whole or in part, unless the withdrawal is received by the proper BLM State Office before this lease, an amendment to this lease, dc a ~epamte leasel ~h'i~hever covers the land described in .the withdrawal, has been signed on behalf of the United States. This off'er will be rejected and will afford off'eror no priority if it is not properly completed and executed in accordan/:e with the regulations,. or if it is not accompanied by the required payments, lg U.S.C. Sec. 1001 makes it a cr'hne fro' any p~rson knowingly and willfully to make to any Department or agency of the United States any false, fictitious or fraudulent statensents or representations a.s Io any metier within its jurisdiction. Duly executed this , 19 __ day of (Signature of Lessee or Attorney-in-fact) LEASE TERMS Sec. 1. Rentals--Rentals shall be paid to proper office of lesstr 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 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 prnduction, royalties shall be paid on the production allocated to this lease. However, annual rentals shall continue to be due al 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. Renlals 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, 12tA %; Co) Competitive lease, (c) Olher, see attachment; or as specified in regulations at 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 fight tu establish reasonable minimum values on products after giving lessee notice and an opportunity to be heard. Wben 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 tu 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 thc month fullowiqg 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 he reduced, for all or portions of this lease if the Secretary determines that such action is necessary to encourage the greatest ultimate recovery of the 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 1992 (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 the failure to comply with any rule, regulation, order, or citation issued under FOGRMA or the leasing authority. Sec. 3. Bonds--A bond shall be fried and maintained for lease operations as required under regulations. Sec. 4. Diligence, rate of development, uniUzation, and drainage--Lessee shall exercise reasonable diligence in developing'and pi'°ducing, 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 public 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. Lea;see 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 of 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 furnish 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 schemata~ diagrams showing deyelopment work and improvements, and repons with /espect to pa/ties in interest, expenditures, and depreciation costs. In the form prescribed by lessor, lessee shall keep a daily drilling 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 inspection by any authorized officer of lessor, the leased premises and all wells, improvements, machinery, and fixtures thereonl and all books, accounts, maps, and records relative to operations, surveys, or investigations on or in the leaa~ lands. Lessee shall maintain copies of all conmacts, sales agreements, acconnimg..:. records, and documentation such as billingi, invoices, or similar documentation that supports ' costs claimed as manufacturing, preparation, and/0i- transportation costs. All such records shall be maintained in lessee's accounting offices for f~ture audit by lessor. Lessee shall maintain required records for 6 years after they are generated or, if an audit or investigation is underway, until released of the obligation 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), See. 6. Conduct of operutions--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 mea-qures may include, but are not limited m, modification to siting or design of facilities, timing 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 reclan~ation 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 spex:ial studies under guidelines provided by lessor. If in the conduct of operations, threatened or endangered species, objects of historic or scientific interest, or subs'ramjet unanticipated environmental effects are observed, lessee shall i~runediately contact lessor. Lessee shall ceas~ 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 b~ 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 helium--Lessor reserves the option of extracting or having exUmctnd 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 .,;ale of gas the provisions of this section. Sec. 9. Damages to property--Lessee shall pay lessor for damage to lessor's improvemeuts, and shall save and hold lessor harmless from all claims'for damage Or harm to persons or properly as a result of lease operations. Sec. 10. Protection of diverse interests and equal opportunity--Lessee shall: pay when due all taxes legally assessed and levied under laws oftbe State or the Un/ted Stales; accord all employees complete freedom of purchase; pay all wages at least twice each month in lawful money of the Un/ted 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 lesaee's subcontractors shall maintain segregated facilities. See. I 1. Transfer of lease interests and relinquishment of lease--As required by regulations, lessee shall f'fle with lessor any assignn~ent or other transfer of an interest in this lease. Lesae~ may relinquish this lease or any legal subdivision b~ filing in the proper office a written relinquishment, which shall be effective as of the date of fding, subject to the continued obligation of the lessee and surety to pay all accrued rentals and royalties. Sec. 12. Delivery of premises--At s~4ch time as all or portions 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 ix:rind of time, remove equipment and 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 ofoil or gas in paying quantities, or the lease is conunitted to an approved cooperative or unit plan or communitization agreement which contains a welt capable of production of unitized substances in pa)~ing quantities. This provision shall not be construed to prevent the exerci~ by lessor of any other legal and equitable remedy, including waiver of the default. Any such remedy or waiver shall not prevent later 9ancellation for the same default occurring at any other time. Lessee shall be ~t~llject to applicable provisions and Penalti~es of FOGRMA (30 U.S.C. 1701). Sec. 14. Heirs and l~cessors-in-interest--Each obligation of this leas~ ~hall extend to and :be binding upon, and every benefit h~r~[ shall inure to the heirs, executgrs, administrators, ~uccessors, beneficiaries, or assignees of the respective parties hereto. WYW162359 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 existing mineral lease issued prior to this one for the same lands. THIS STIPULATION APPLIES TO ALL PARCELS LEASE NOTICE NO. 1 WYCr162359 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. 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 rights-of-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. THIS NOTICE APPLIES TO Al J, PARCELS WYW1623 5 c) LEASE NOTICE NO. 2 BACKGROUND: 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 21st 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 inventory, 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 operations 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 requirements are necessary. This strategy is necessary until the BLM determines that, based on the results of the completed viewshed analysis and archaeological invefftory, 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 mitigation of anticipated impacts. This negotiation will occur prior to development and become a condition for approval when authorizing the action. THIS NOTICE APPLIES TO AI,L PARCELS WYW162359 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) Feb 1 to Jul 31; On the lands described below: (2) as mapped on the Rock Springs Field Office GIS database; For the purpose of (reasons): (3) protecting Raptor nesting habitat. WYW162359 NOTICE TO LESSEE Provisions of the Mineral Leasing Act 0VfLA) 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 quanfifes 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 ofapending coal act/on, i.e., arms-length assignment, relinquishment, or log/cal 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.