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HomeMy WebLinkAbout908231Form 3100-1 lb (O~tober UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT OFFER TO LEASE AND LEASE FOR OIL AND GAS 00850 S~ri~ N~V.~.~ 161006 The undersigned (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 mended and supplemented (30 U.S.C. 181 et seq.), the Mineral Leasing Act for Acquired Lands of 1947, as amended (30 U.S.C. 35.1-359). the Atlorney General's Opinion of April 2. 194! .(40_ Op. Arty: Gen. 41), or the READ INSTRUCTIONS BEFORE COMPLETING P J PETROLAND LLC Name PO BOX 1159 Street KATY, TX 774921159 City, State. Zip Code '5( 2. This application/offer/lease is [or: fCheck only One) T~3 PUBLIC DOMAIN LANDS 'Surface managing agency if other than BLM: Unit/Project Legal description of land requested: *Parcel No.: *SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMpLETING PARCEL NUMBER AND SALE DATE. T. R Meridian State Amount remined: Filin'g fee $ Future rental payments' .must be 'made . on or before' the anniversary,date to: Minerals Management 'se~-vice' ? Royalty Management Program ~. P.O. Box 564~5 .,.,::...i ,;.,..,.. ~ . ACQUIRED LANDs (percent U.$, interest *Sale Df;lc (ndd)y): Rental fee $ "~ NOT WRITE BELOW THis Total $ Land included in lease: T. 0230N R, 1120W Meridian 06fl'l Sec. :009 NW,NESW; RECEIVED 5/9/2005 at 11:26 AM RECEIVING Ct 908231 BOOK: 584 PAGE: 850 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER · ' -' ' '~" 5c'::' .~',~..:( .... ~ 200.000 Total acres in lease Rental retained $ 300.00 This lease is ~ssued 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 thc right to build and maintain necessary improvements thereupon for the term indicated below, subject to renewal or extensmn tn accordance w~th the appropriate leasing authority. Rights granted arc subject to applicable laws, thc 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 forrmd orders hereafter promulgated when not inconsistent with lease rights granted or specific provisions of this lease. . , NOTE: 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 or nomination and those specified on this form. Type and primary term of lease: [E Noncompetitive lease (ten years) ~ Competitive lease (ten years) [] Other 4. (a) Underaigued certifies that (1) offeror is a citizen of the United States; ,an ,association of such citizens; a municipality; or a corpomtlon organized under the laws of the United Shqte~ or 0~ any State or Territory thereof; (2) all parties holding an interest in the offer are in compliance with 43 CFR 3100 and the leeaing authorities; (3) offeror's chargeable iatei'e~ts, direct ami indirecr,.ih'each public domain and acquired lands separately in the same Stye do not exceed 246,080 acres in oll and gas leases (of which up to 200,000 acres may be in ui~ and leases in each leasing District in Alaska of which up to 200,000 acres may be in options, (4) offeror is not consideced 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(aX2)(A) of the Mineral Le~ing Act; (.6)~fffecor is in complian~:.e with reeJamatlun requirements for all Fegeral oil and g~ lease holdings as required by sec. 17(g) of the Mineral Leasing Act; and (7) offeror is not in violation of s~c. 41 of the Act. i . Co) Undersigned agree* that signature to this offer comtitutes acceptance of this lease, ineludlng all terms, condition, and stipulations of which offeror h,~ been given 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 omitted for ,'my reason from this lease. The offeror further agrees that !his 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, or a septwate le,~e, whichever corem the land described in the withdrawal, has been signed un behalf of the United States. ' Thi~ off'er will b~ rejected and will aff'ord offeror no priority ifil Is not properly completed and exeeuled in accordance with the regnialions, or ifil is'not accompanied by the r~quired I~ymants. lg II.S.C. S~:. lO01 mat~ il a crlm~ for any p~ranil k~nowingly and willfully 1o make Io any D~partmenl or agency, o( ll~ United Stal~,~ny fal~, fictilions or fraudul~lR or representations as to any matter within its jurisdiction. . Duly executed this day of , 19 __ (Signature of Lessee or Attorney-in-fact) LEASE TERMS Sec. 1. Rentals--Rentals shall be paid to proper office of le'ssor in advance of each lease year. Annual rental rates per acre or fraction thereof are: (a) Noncompemive lease. $1.50 for the first 5 years; 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 production, royalties shall be paid on the production allncated to this lease. However, annual rentals shall continue to be due at the rate specified in (a), CoL 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, 12sA%; (b) Competitive lease, 12~h %; (c) Other, see attachment; or as specified in regulations at the time inis lease is issued. Lessor reserves the right to specify whether royalty is to be paid in value or in kind, and the fight 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 o( 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 conditi0'n 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 0il 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 hegianing 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 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 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 the failure to comply with any rule, regulation, order, or citation issued under FOGRMA or the leasing authority. Sec. 3. Bonds--A bond shall he filed and maintained for lease operations as required under regulations. Sec. 4. Diligence, rate of devg!opment, unitization, and d .ra. ig, a, ge--Lessee shall exercise reasonable diligence in developing and producing~ and shall prevefit 6nnecessary damage to, loss of, or waste of leased resources. Lessor reserves fight 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. 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 ftc 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 schematic diagrams showing development work and improvements, and reports with respect to parties in interest, expenditures, and depreciation costs. In the form prescribed by lessor, lessee shall keep a daily drilling record, a log, informaiion 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 lea~xl prerinses and all wells, improvement~ machinery, and fixtures thereon, costs claimed as manufacturing, preparation, and/or ti'ansportati~n costs. All such records shall be maintained in lessee's accounting offices for future audit by lessor. Lessee shall maintain ' required records for 6 years after they are generated:or; if an'audlt or investigation is underway, until released of the obligation to maintain such records by lessor· During existence of this lease, information obtained umler this section shall I~e 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 not limited to, 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 appria~:l 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 !essor. If in the conduct of operations, threatened or endangered species, objects of historic or scientific interest, or substantial unanticipated environmental effects are observed, lessee shall itranediately contact lessor. Lessee shall cease 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 substanti'ally different or greater than those associated with normal drilling operations, lessor reserves the right to deny approval 'fl such operations. ' ' ' · Sec. 8. £~.tra~:fion of belium--Lessor reserves the option of exn'acting 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 l~ss0r for damage to lessor's improvements, and shall save and hold lessor harmless from all claims for damage or harm to persons or property 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 of the State or the United States; 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 enva'onmenl in accordance with standard induslxy pract:eea; 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 Acl 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 I. Transfer of lease interests and relinquishment of lea.se--As required by regulations, lessee shall file with lessor any assigmnent or other transfer of an interest in this lease. Lessee may relinquish this lease or any legal subdivision by [ding in the proper office a wrinen 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 premises--At such 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 period 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 committed to an approved cooperative or unit plan or communitization agreement which contains a well capable of production of unitized · ": aubstanees in paying quantities. This provision shall not 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 preven later cancellation for the same defaul occurring at any other time. Lessee shall he subject to applicable prgv'is!ons andpen~ltles of FOGRMA (30 U.S.C. 1701). ~nd all books, accounts, maps, and records relative to operations, surveys, or investigations Sec. 14. Heirs and successors-in-interest--Each obligation of this lease sh~l extend to and be on or ~n the leased lands. Lessee shall maintain copies of all ~0ntracts, sales agreements'; ~ccount~ng: ~ ~ binding upon, and every benefit h~:reof shat inure to the heirs executors administrators records, and dncumentat On such as billings, invoices oi;:siinilar documefitation that saPlx~rts '~ '' ~ ~'' ' · · " · ~ , . . 'successors benefic ar es or assignees of the respect ve parties hereto. FY~t61006 0 0 8 5_ 9 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 ST~ULATION APPLIES TO Al.l. PARCELS LEASE NOTICE NO. 1 WYWi61006 00853 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 APPI JES TO Al J~ PARCELS LEASE NOTICE NO. 2 BACKGROUND: WYW161006' 0 0 8 5 4 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 theNational 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 si-de 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 finhl 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 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 mitigation of anticipated impacts. This negotiation will occur prior to development and become a condition for approval when authorizing the action. THIS NOTICE APPI.IF.S TO Al J. PARCELS 00855 WYW161006 TIMING LIMITATION STIPULATIONS - TLS No surface use is allosved 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 regulatory provisions for such changes. (For guidance on the use of the stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) · 0 08;::31. W ¥ W ! 6 1 0 0 6 ATTACHMENT TO EACH LEASE 00855 NOTICE TO LESSEE 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.