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HomeMy WebLinkAbout908232 Xpp~oved by the Board · :; ; ~ ~" - · ~ ?--~, ~%. · t~ A ....... ~. STATE OF ~OMING [~:~::se ~ 04-00358 1998 '. ~.,. ~ This indenture of lease entered into by and between the State of Wyo~ng, acting by and ~hrou~h ~ts Board of Band Co~ss~onors as ~SSOR, and ~he follo~in~ as ~SS~: }© P.J. Petroland, LLC Section 1. PU~LPOSE. 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 described land, to wit: ~ Section: 16 ALL /I~ Township:25N Range: 113W the 6th P.M. County: Lincoln Acres: 640.00 $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 there under. Section 2. T~R~ 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 of production of leased substances as may be provided by the statutes of the State of Wyoming and the regulations of the Board of Land Commissioners 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 are being conducted and so long thereafter as oil or gas may be produced in paying quantities. This lease may be relinquished or terminated 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 and rentals to be paid LESSOR shall be reduced proportionately. Section 4. LESSEE expressly represents that, if an 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 with 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, adrainistrators, successors of, or assigns of the respective parties hereto. Section 7. SOV~REIGN Ib~/UNITY. The State of Wyoming and the 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 state laws. IN WITNESS WHEREOF, this lease has been executed by LESSOR and LESSEE to become effective on the 2nd day of, June, 2004 A.D. LESSOR, STATE'OF"WYOMING,-~Ctil~ by and through its Board of Land ~ //7-~c~°~ Off~of State Land~a~e~ents, LESSEE: REOE~VED 5/9/2005 at 11:27 RECEIVING ~ 908232 BOOK: 584 PAGE; 857 JEANNE /INCOLN COUNTY C/ERK, KEMMERER, 0085 '-', ~ (o)DELIVER PREMISES IN'[ OF FORFEITURE. To deliver up the leased prem~sas, with ~ pam~qent improvements thereon, in good or~':and condition in case of forfeiture of this lease, bet this sha~ ¢tat be const~ed to Section 1. THE LESSEE AGREES: {a) BaN D. To furnish a bend with en approsed corparata sa-aty company at~U'mdzed to transact buSmass in tf'e State at Wyoming, or such ather surety as may be ascel~tat~e to the bseor, in the penst ~ as red'red by the cu~ror~ ru~s of the State Board of Land commissioners, cenc~ened t~ the payment of all rentals end rallies ~ tothelasser tgder the terms hereof, at~ upan the fLdJ eamptianse of all otha' hems arid se~ of this lease end ~ ~ ~ r~ relshng thereto, end also con6fiened en the payment of all damages to the saa'face end snprosements thereen whure Ibe leass eaver s la.ads the andece of wflleh bee been stxtd ar athe~ leased. Sush bend or bends furntshed prim' to the deselepmont of the lands contained in ~s lease may be increased in such reasonable emma. s as the lessor mal decide upon eammancement of dntbng oparat~ and after the disc~/e~/of Oil or gas. (b)PAYMENTS. To make ag payments accrUu~g hereunder to the Off, ce of State Lands ~ Inveshnenhi, 199 West Street, Cheyenne, Wyoming (c)RENTALS. Pdor to the discovm7 of ~ or gas in paF, ng qean~as to pay the baser in advance, begmntng with the effective date hereof, on ennua rental of $1.00 par acre or fradJon th~eaf. Aft er the discover)' of ~ or gas in paying q~entibes to pal the leesor in edvanea be~mm'~g ~ the f~t dai of the lease year suceaedin9 the lease l.n~er in which aciusl discover'/was mede, en a~,ruai ra~al of SZO0 be~r ecte ar frectim the'esl'. cu~ess chenged by agramnent. Such r~ntal so pa'~:l for any ene year shatt be cradded nn the rayatty far that year. Annual rentale en a,~ leases shall be payable in ~ for the ~rst year and each year thoreaffer. No netise of re~ 6ua shall be sent to the lessee. If the rentalis mot pa~d on or before the date ~ becomes due, mabco of hafa~t will be to the hesse, end a penati7 of $0 50 per acre for iate paiment w~ be assessed. The lessee is not le ga~/obliger ed to pay eithm the rental or the permlty, but if the rental and penalty are t~at paid w~hin ttw~ (30) days after the nntice of defau# has been received, the lease w~t terminate automatlea~ by operation of law. Tenninatm~ af the lease shsti ~ relieve the lassee of any obligat~q ~J~red under the lease other than the obligation to pay rentaJ or pmmtt'f. ]~e le.nsee shall net be entiUed to a credit on ra/atty due for a~f penalt'/paid far late payments of rental on an operating lease. (al)ROYALTIES ~e rayalbes to be paid by lessee are: (~ On oil, orm-axth of that p~edused, eared, end cold from sa~d lend. the eame to be dertveted at the wstle m to the cred~ of lessor [nth the pk~e ina to wt'~ch the we~s mai be cnnnected. (~) On gas, incleding caainghead 9as er ether by~ocarben substances, Fodused from said lend eav~ and ~ er used offtbe premises or in the manufacture of gasagne or other products therefrm'n, the market vatue at the well of ene-~of the gas so sold or used, provided that o~ gas sutd a~ [he wells, Um myafty shag be ~,e-sixth of the amount reakzed fi`om such sate. {~) O~ all ether bydmcarbens of va~e ~ gaseous substances and eleme~s produced ur aRractod, ~ b~arm, s~phur, nitrogen, carl:~q dm[dale, and hekum, at such royag~ as shag be mutea~/datarralnnd to be Yak and reasonable. (~) For rarity purpasas on gas and natural gasdme the vabm shall be as approved by the baser, and in the detemanatJon of the value of natural gase~ine the fair sest of extrectk~ shatl he cenaldared es a deductible item; prmided, hewevar, that the allowance for the sest of extractlon may exseed two.birds ~f the amourit or value enly en ~ atthe leesor and in no event shall the price for gas, ur natural gaselme, be lese than that received by the Un, ed State of Amama for its myatbes from the same liatd. (v) Natural gas and od actua~ used for operating purposes upnn the tend and, except as to the ult~ate sate thereof, gas or liquid byd~'eca~ens returned to the eand for alirn~at~g the Feductlen of oil er senondar/ recover/ purposes shaq be royalty free. (e) DISPOSmON OF ROYALTY OIL AND GAS. To delk~' to the lessor, ar th ansh i~, ~m or car pa-&~q as Um lessor ma)' designate, a~ raiait'/oil, gas, ur ~ kindled hy~ecatt~'~s, free of charge en the pr en'sses where pmduc~l. ar, at the upkion of the lesear, and in kea of ea~ [aiatLies in kind, the leeaee agraes to pay the leeaar the fa~td markM Pme or value Of od m~ od, gas, ar cthar kindred hy~koea~bens predused and sesed~ When the lesser elects to take its royalty al, gas: or oth~ bydroeatbem in Idnd each as ~, gas. or ether' khcked hydrocarbons shall be good merchantabb od, gee, or athe~' kindred h¥~ecarbens. The lessee shaJ if nesesea7 furnish storage for roya~ oil free of charge for th~ (30) da~ afar the end of the catendar mon~ in which the oil is preduced, upen [he leased premises, or at the such p~ace as the lesser and the lessee mai mutua~ agree upon, provided, that the lessen shall not be held Eable for less ur destruction of myatt'/od so stared fram c~sas baio~i h~ control. '[he free storage of alt, as harEtn prin,'[dad, shall apply or~ as leng as the sekl od is the property of the lessor. (f} MEASUREMENTS OF PRODUCTION. To gauge, measure end'co~ect for temperature ag ixnduct~ from said lands in cenfa~rnence w~th the roles and regretters adopted by the Board of Land ~ and report satd pred~mfflen to the lessor in ec~dar~e ~hera~l~ To keep beaks, records, mxh'e~oc*rts pa~talntng to the preductien from the le~d berein based as w~l as thuse padaiing to the preduct~on from offset watts operated by the bssee, his operator, ar sub4essee en Nher Nmds, vA'~;i'1 s~hail be opened at all I~mes fur the mopectien of an)' dnty authurized age,'1 of the lessor. To furnish the bssur with enginal pipe line reports showthg the day, month, year, ama. mt, gra~Jus, a~l temperat~ss ag od run end vath mont[h~ rapmts showing Ihe mont. h, year, amount, end price of ag gas end nat ural gee gasoline and ether preducts produced and sold fi`om the lend herein leased, end the amount of gas returned to the sand. (g) MONTHLY PAYMENTS AND STATEMENTS. Untees the lime of pa,/me~ is damn,vise exlenhed by the Office State Lands ~ invectme~s to make payment on er before the haonheth (2(Nh) ~ of the ea~r~ar ~ sucseedngthe month of preduction a,'xl rarrmval ar,:l sale of od and gus from sad hind, and to framish swem monthty stabenmtsl~ shoW. rv~J in det~J the quanl~ ond qualil'/of the preducllen (j~er wag ft req~a'ed where precficat) fi`om the lend he, r shy leased, end the o~mnt~/en~ qua~/of the preducben ~ ~ v,~ p~) fi`om offset wells upon c~ ur form ur rapart prescribed by lessor. (h) WELLS TO 8E DRILLED. To d~ and operate effec~vely a~ wells necessm'/to reasonably offset welis upon end productian from adjoining lands. To dra such additional wags at such times or piases as are neseesary end essential to the proper devalopment end commerci~ productlen of the oil and gas content of said land. (i)LOG OF WELLS AN O REPORTS. To keep a leg, in the from approved by the bsenr, of esdn well dn~ed by the levee on the lands herein leased, shewing the strata and chacastar of the th~, water sands and rmnerat depasits perm~'~ated by the dntJ, aanucZ of casing, size and ~,s'hare s~, end aush atbef inthneal~on as the lesser may requke which bg ur cofly theranf shaJ be run,shed to the leesor. To f~e prograss retx~'ts, in the form preecfibed by the lessor, st the end of eech if~J'ty (30) dai period wh;~e each wel is b~g dntled To fie annually, or at such times as the leasar may requi~e, maps shoW~ng the develepment of the structure and the location of all wells, pipe [~qas end other wecks used in cennect~ with the operations of the bssee upon said lend. To make such other reports pe~EaJning to the producl'idn and opmatlens by the lessee en said land, and relx~ suc~ infmmafion as may be possessed by the bseee on the welts, production or obera~ of others en lande on the same geologic strectu.~e that mai be of rnpr~rtance in effecting proge~' de~4opment ond ~em'abn of the lends herein based, as may be catled far by the lessor. Nllegs, maps, and relxxts shait be sub~ed in duple and the Off~e of State Lands and thvestmerts may ~ such re~s as cen~ ma-/wsomnL (j}PROD UCTION. To opmate ttm weits upan the Iond haraln leased in a sempetent and efScim~ marr, w in an eh:re.or to rec~wer aJ the oit and gas econOm~Caiy pasalble from coid lend end to I~,~'~ the under' dratnage of the ~il end gas thereunder by welis opacat ed by the bssee ar ather's on con'mnng ar eant~gUOus lends to these leased here~. AJlY, ans cr methods for the pa~ose of s{~m~eting or increasing production on lands herein teased other then those in common use shag fl~st be presenled to the lesscr far approval before berg put ~o actual operation. No production agreements 'm~ing, resthctJnth prorating, or otherwise affecting the naturalpmductlen from saidisnd ~ be entered ~o by the lessee, nor shall the lessee limit, reatdct, er prorate the natural produstien from said land in ~/way or in ony event, except vath the conasnt in writing of the bssm first had an obtained. (k)SUSPEN SION OF OPERATIONS. S~oald any wel d~led upen lands cover'ed by this lease obtain preduct~ of oil, gas, or nther bydnm'm'be~s in paY'~g geeclihes a~i if the leasee is urmi:~ th estatYis.~ a eatistectm7 market fur gm d, gas or by.acerbate precluced fnx'~ eaid w~, Um bssee mai' app~ fi`~r arat the bs".,or may grant pemliseion far the susl;'araen the time any such suspension of operations is in effect, the leasee shall continue to pay the onnuat rental of $2.~0 per acre ur f~ctlen thereof provtcbd by (c) above, end this lease ~ remain in effect as lheugh od or gas wes being ~ from said lands. (I)DILIGENCE-PREVENTION OF WASTE. To exercise reasenable ddigence in dntiing, producing, and opera~g en the hind cove~ed hared¥, untess consent to suspend operatiens temparenly is granted by the lessor; to cam/on all regard far the prev~ort of waste_ of od end gas, or the e~'ifa'a~'lco of ~',~ter to the oil or gee be.a~'lg s~ends er strata to the ddstructinn ur ~en/of ansh bepastts~lhe prase~',ralk~'a~d ser, sorvatkm oft/aa p~l~t~ ~ fulure pro~,k~ctive o~ end to the health and eafet'/of warkmen end emptolmes; to pthg secura~ in ~n upprosed maraler a~/well before aba~dormQ ik and net to al~anden eny w~l wiheag pet~msakm of the lessor, n~ th dntl any welt wiftW~ two hondred (200) fee{ of any of the outer b~arm-s of the land covered hereby, untess to protect against dr~ge by wells dried on tends adjok~ng less then 200 feet from the propert'/linee them~ to conduct all operations subject to the inopm;tJan at I~'~e Jess~;, to ean7 on{ al the leseea's expense all reasonable orders and mq~ements at the lesser relative to the I~ of waste and presenratlen of the property and the health and eafat~' of wenV. men incled~g the replanting and reseadin9 of ddging ~es and other areas disturbed by ddlithg oporatJens end on failure of the lessee se to do the bscor sha~ have the dght, tog~ with athar recarzse he~eth provided, to e~ar on the prapmty to rapar hamage or prevent waste at the b. ssee's expanse; to abide by and cenfmm to seiki abp[~cahle reguiatk~s prasc~ibed th re~mt~rse the exmec of the surface, it ~he~ than Ihe lessor, or lessee of ~az~ ri~rd.s thareef for actual ~mlagec thar~o and i~uq to Im~osemarts th~een, pro.:ted, that the i~'see shall not be bald re~oo~ fo( acts of providence or ecfiom~ beyond his (re)TAXES AND WAGES-FREEDOM OF PURCHASE. To pay, when due all taxes ~ assessed ~ levied under the laws ef the State of Wyoming upon impmsemonte, o~ and gas produced from tt~ lend herau~ber, or other rights, property or assets of the lessee, to accord ag workmen end employees complete freedom of purchase, and to pay ail wages due workmen a~d employees in conformance with the laws of the State of Wyeermg. (n}ASSIGNMENTS OF LEASE-PRODUCTION AGREEMENTS. Not to assign this lease or any interest therein, nor st~ any pertien of the leased premises, except with the consent in writin9 of the lessor ~st had and obtained. Ali m/errtc~g raiatbes to be ~rm~d, must hase the approval of the Eloard ur by the Off, ce of State Lands and Imastmenta when authority to do so has been dategated by the Road and ~ be recorded v~th the lease. The Board reserves the dg~l of disapproval of such oserridm9 rolralles when in its ~ thai becmne excessive ~ hence are d~ to tbe proper development of the based iendd. prevent the femoral, alteraien or renewat of eqtapment and ~s m ~ m~ co.se of S~ 2. ~E ~R ~PRES~Y RESERVES: (a)~ ~to ~ ~, ~~of~ ~of~ ~~ ~e~ ~ ~ ~fl~ ~, ~ h ~e ~ ~ ~ of ~ B~d of L~ C~ ~ as ~ s~e ~ ~ ~ f~ ~ me of ~ ~ ~ ~ ~ of op~s ~r~. (b)~e ~ to lease, sell, ~ o~e~e ~spase of other ~ner~ er ~ace reso~c~ ~t covered by the lease, Jn a~r~se w~ t~ ~le ~ws ~ ~ ~es of the Bo~d of L~ Co~sa~ers (c)Fr~ ~ ~er~ of~ ~es. t~ s~se ~ ~etofore F~ed fur dght~o~y ~ easeme~s ~d ~ ~ to f~ ~ch o~ fi~f-~y ~d e~me~s as Fo~ded by ~e star.ac of ~ State of ~g, ~ ~ ~ (d)~ ~ to ra~ to ~ ~ ~d ~ to a ~ ~ of ~v~p~ ~ ~ ~ ~ ~ ~ ~s r~ ~ to ~e ~ r~ g~ ~ ~ ~ to ~e M ~ ~ ~ to ~ based I~ a (e)~ ~ to ~ ~ ~ ~ ~ ~ ~de of F~ to ~ ~ ~ ~e ~ ~ ~ed ~ ~ a~ F~bn a~ed by ~w. (~ln ~ion th ~s ~ to take ~s m~ g~ h k~, ~ l~s~ re--es ~e ~ and ~ to p~ase ag o~er gas F~ced ~ ~ ur ~e ~ t~ ~as~ ~. ~ ~n ~a~ ~ ex~cised o~ ~ the Bo~d ~ds t~ ~e ~esee has ~ ~e~ ~ be ~w~ ~o by ~ Be predu~n of ~s ro~ g~ mai ~ defied ~ ~ ~ be F~ed ~d said f~ ~n~ti~ ~ ~e ~ ~ the ~ate of ~ng ~¢i~ 3. APP~ OF IMPROV~ENTS. ~e ~e ~ have ~e ~ ~je~ to t~ pro~aiens of T~le ~, mle ~ae ~ ~ae ~ L~s, ~ T~ 11, ~ to Stae Lo~ and I~e~s ~d L~, W.S. 197~, to remove ~y ~s o~ by ~ ~ a r~s~ t~e a~ Be t~ of ~s ~e. Lessee aF~ ~ ~y ~ch ~s ~ r~ ~ a r~ ~ afl~t~ of ~ ~ ~ ~ ~s~ of ~ to ~ ~ 4. FORF~RE ~USE. ~ ~d ~ ~ ~ ~ ~ ~ to ~ Eas~ F~ed by of L~ Co~si~s ~ ~ f~ce ~ ~e dna ~eof, ~e lees~ ~ se~e ~e of such ~ure ~ ~f~ e~her by person~ s~e ~ by ~d ~ m~=ed ~ u~ ~e ~seae. ~d ~ ~h f~e or de~u~ co~s f= a pa~d of ~ (~} days afl~ ~e s~ce of ~ n~e, ~ ~ h ~a evil ~e ~ ~y, a ~s option, decline a f~ ~ ~ ~s base, ~ere~ ~ ~hi ~ ~gea, obt~ed by ~ ~see ~r~ ~ ter~e ~ c~ ~ ~ = ~y ~ ~ of sad ~ ~ f~: (a) if ~ op~s We be~ c~d~ted ~ ~e lease ~ ~ ~ to be re~s~d, t~ I~see sh~ file ~h the ~ae L~ Bo=d ~ State L~ ~d I~e~ Bo~, a ~ r~e~ ar sure.er, d~ si~ed ~ ack~dgad ~d ~g ~eh ~ no ~s ha~ b~ ~cted ~ ~e i~d. ~e i~u[~ ea fled be~ effe~ ~ ~ date ~d ~ of r~ ~reof ~ ~e offi~ of t~ Okect~ or N se~ ~t~ d~e, E ~ ~ se (~) ~ ~e ~ ~ ~ ~ ~ D~e~= a ~ r~ = ~ ~ ~~ ~ ~ ~ ~e ~ ~ed h c~n ecce~e to ~ ~d ~ have be~ ~Fov~ by t~ ~ae O~ ~d ~s S~e~. ~ ~s b~ d~ pd~ th a suffe~ ~ r~s~e~ be~ eff~, ~ be ~y~le by ~ss~ ~ess p~ ~f ~ ~ w~ by ~. A r~ ~ ~c~ effe~ ~e ~ be no rec~ ~ ~ ~d the ~ase as to ~ r~q~ ~ ~y ~ ~ r~ed. Filed by BK