HomeMy WebLinkAbout908718'~%~' %%\~ State of Wyoming
Oil and Gas Lease
Lease # 04-00541
Parcel: 583
Fund: SR
This indenture of lease entered into by and between the State of Wyoming, acting by and through its Board of Land Commissioners
as LESSOR, and the following as LESSEE:
Zinke & Trumbo, Inc.
Section 1. PURPOSE. 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 ddll 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 dioxJde and helium, which may be produced from the
following described land, to wit:
Desc: NWSE ~
Sec: 34 Res Township: 24 North Range: 115 West 6th p.M.
Acres: 40 County: Lincoln Advanced Rental: $ 40.00
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. TERM OF LEASE. This lease shall become effective on the day and year set out below and shall remain in effect for a
pdmary 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 pdmary 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 Lean 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, administrators, successors of, or assigns of the
respective parties hereto.
Section 7. SOVEREIGN IMMUNITY. 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 October
2004 A.D.
LESSOR, STATE OF WYOMING, Acting by and through its Board of Land Commissioners.
State Lands and
LESSEE: Zinke & Trumbo, Inc.
Address: 1202 East 33rd Street
City:. Tulsa State: OK Zip:. 74105
Phone_( 918 ~ 743-5096
Signature
RECEIVED 5/2~/200~ at 10:47; AM
RECEIVING # 908718
BOOK: $86 PAGE: 281
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
OIL AND GAS TERMS
SedJon 1. THE LESSEE AGREES:
{a) BOND. To furnish a bond with a~ aplxoved co.ate sa'ety company authorized to b'amact bus/ness in lie Slae d
W¥~n/ng, of such other su~ety as ma'/be acceptable to the lessa-, in the penad sum as mquked by the carent rdes tithe
State 8oard of Land C.~sionas, co~ upon the pa'/me~ o~ ad rentals and myal~ ~:cn-/ng t° ~ ~ ~
felafin9 thereto, and also condiUoeed oa the payrn~ o/ad danages lo the sudace and kT~Pn;~ ~ ~ ~
development of the lands contained in tiis lease rmy be inoeas~ in such reas~ am°~ as ~e ~ ~ ~
(b)PAYMENTS. To make al pants ang hereunder to the Of~ o/Stale Laxis and I m,es~m~wds, 122 V~ ~
Street, Che~enne, W~/n9 82002q3600.
(c)RENTALS. p,sor to the d~sc~ d dl or gas i~ p~ng quan~ to PWthe less°r ia a~ ~ ~ ~
effectke date he, ed, an a~nual renta/ c/ $1,00 pw acm or fmc6on th~ed.
unless changed by ageement Such renta s° Paid fo~ an~ o~e year sha~ be aerated on the roT'aty ~' lha ~.
due shM be seflt to the lessee. If the renta/is not p~d o~(x before the date it becomes due,
to the lessee, and a penalty of $0.50 per ac~'e for late payment wil be assessed-
The lessee is not legally obtgated to pay ei~ the rental o[ the penalty,b~if ther~a ~ ~ ~p~d~n
ttirb/(30} days a~ the notice d de4au~ ha~ bee~ recdved, thelease w~ ternlnale aut°n'atica~f ~ ~ ~ I~'
pay rental or penalty. THe lessee sha~ nci be en~ to a cmdt on my'aty due ~ any penalty P~d f~' late payments of
(al)ROYALTIES. The roya'Ues to be p~d by lessee
(i) On ~, one. sixth of tha~ produced, sa~ed, and sold from said land, the sa'm to be de~ed ~ ~ w~ ~ t° ~
credit d ~ into the plpe Ere to which the we~s may be co~rmded* .
(~ On gas, including casin¢~ead gas o~ elha* hydrocad~on substmx:es, ~oduced fr°m sad land sa~ed a~l sdd ~ ~
such sale. *
reasonable.
{-~ For mya, ty purposes on gas and natural gasoa~e the v~ue shal be as app~ bY the ~' ~ in ~
detenTin~ of the vatue of natural gaso~ne the falr cost ~ exbac~°n sh~ be c°nsidemd as a deducfi~ ~ ~
lesso~ and in no event shM the price for gas, o~ n~ural gas~, be less than b'mt receked byti~e U~ ~ ~
f(x its roy~ from the sam fietd. .
(v) Natural gas and o~ actuady used for operaang Pal)oses upon t~e land and, except as t° the ultimate sale the~'
gas ~* liqukl h!~rocar~ returned to ~he sand for d~n'tiaa~g b~e Pm~ °f °i a* sa:ond~rY mc°'~W P~ ~
be royalty free. ·
(e) DiSPOSiTiON OF ROYALTY OIL AND GAS, To de~ to the lessix, or t° such incr~dua[' firm °r cap°r~ as b~e
or, at b'~e option d the les,vx, and in lieu d said royalGes in kind, the les.see at~ees to PaY the less3r the fiekt rnarket ~
hydrocarbons sh~ be good merchantable oil, gas, or other kindred hld~, The lessee shaq if nece~ furnish
(f) MEASUREMENTS OF PRODUCI1ON. To gauge, measure a~d mrmct f(x ten~ature ad [xoduc6on Eom ~
epened at al times for the inspec~ d any duly ~ a~m" a "'~ ~' '
To furnish lhe bssor with odginad pipe lirm repolls showing the day, m~h, yea', am3unt, ffa~des, a~l tempmahres d
tg) MONTHLY PAYMENTS AND STATEMENTS. Unless U~e time ~ ~ is oihenvise extended by the ofrce of
Stale La~ and Imestments to make Pa'Fnent o~ o~ be~°m the twentieth (20th) day °f the ca~ mat~ sumee(k~ ~
showin9 in detal the quar~diy and qua~*y d the production Low wea if reqlired where Ixadka') fTa*n the land hereby
form m report prescribed by lessor.
(h) WELLS TO BE DRILLEO. To dali and operate effec'd~,:dy al we~s necessary to reasonably offset wdb upon and
ixoduction from adjoining lands.
To ddg such additional weis at such limes or places as are neces~ and essen6al to the Fope~ development and
cora*~ production of the (ii and gas content of said land.
(i)LOG OF WELLS ANO REPORTS. To keep a io9, in the fo~m al:~o~'~i by the lessa*, ~ each wel ddled b'/lhe k~ssee
on the lands h~n leased, showing the sb~a and cha'acter of the fon~, wa~ sands and nineral dep°~
pene{rated by the dnl, amunt o/casng, size and where set, a~ such °lheHnf°m~ ~ ~ ~ ~ r~e ~
log a* copy thereof shad be fa*fished to the iessa** ·
To f~e Fogress mp~s in the fa-m pms3ibed by the les,sa*, at the end d each thkty {30) day Pe~°d while each weJ ":
To file a~nually, or at such 'dines as ~e lessor may require, maps showing the development d b~e stye and the
Ioca6on d all wetis, pipe lines and other works used ~n connecUon with the °P~'alms °i' the kmsee up°n sad land
To m~.e such otha* repods pedainin9 to the production and operations by the lessee on said land, and repcd su~(~
ir~ownation as may be possessed bYthe lessee °n the weis, pmduc'd°n °[ °p~ns °f °them °n t~s °n ~ ~
may be ca~ed fo~ by the lessor. NI logs, maps, and mpods sh~i be suba'itted in dupicate and tiqe Office °f Stale Lands
and i~nts may wake such repods as cond~ may warranL
(j)PRODUCTION To opaate the wells uPee the laad herein leas~ in a c°n'pe{ent and efficient manner in a~ a*r~
thereunder by walls operated by the lessee or others on cocnedng or contiguous lands to those hased herein. Al pitusa*
meU~ods for the plxpose d sik~nulalin~or inc~'easm9 pmdt~d°n °~ lands heroin leased °iher than th°se in c°nm°n use
shaq fist be presented to the lesso~ fa* approval befa*e being put into actult of~*albn.
No producUon agreements Ibiti~, resb~ng, prorating, o~ othenvise affec6ng the naturalproduciion from s~dland
be entered into by the lessee, ha- shM the lessee rmit, restrict, or pmraie the natural I~*oduc6on from said land h a~waf
or in any e,x.-,nt, except with the consent in writing d the k~sa* first had an °brained*
(k)SUSPENSION OF OPERATIONS. Should any v~ dh*led upo~ lands covered by this lease oMain ixoduct~ d
gas, or othe~ hlrdrocarix)ns in pacng quantities and if the lessee is unal~e t° establish a sa~act°ry ~ ~ ~ ~ ~
the time an}' such suspension of ~perafions is in eilect, the lessee shall continue ~o pay the annual rental of $~00 per
a* ~*ac~ themd ix'o~ided by (c) alx~e, and this lease shM m~n in effect as th°ugh ~ °r ~ w~ ~ ~
said lands.
(~)DIUGFNCE-PREVENTION OF WASTE. To exm*dse reasonable ~,gence in dn~ng, produdng, and operak~ dwels
o~ t~e Ired revered he*eb¥, unless ca,sent to suspend ope~alJons temporady is gra~l by the ~ to calf
rega*d for the p~-'~entJo~ d waste of ~ and gas,°r the en~ °f wa~ b3 the °i °r ga~ beain9 ~ ~ ~a ~ ~
a-Kl to the health and sa/ety of wodfmen a~d empl°!roes; t° plu9 sectr~ in am apF°~ed rna~ner a~ wel be/ore
feet d any of the outer boundaries of the land co~ed hereby, ur/ess to prolect ag~/nsi d~ainage by wells drfled onlaxts
to carry out at the lessee's ex~--rise ad reas°nat/e orders and requlreme~s d the less(x relatNe t° the pm~ d wasm
and presewaJon of the proped7 and the hea#h aad safety d woW, men including the r~a~ng md reseeding of
s/tes and oth~' a'eas dstLa'bed bY dd/ing oPe~aUons and °n failure °f the ~ssee s° t° d° the ~ ~ h~ ~ ~g~
toget he~ with other recourse heroin provided, to e~te~ °~ the Pr~e~/t° repm daTage c~ Pm~ent w~e a ~ ~'s
than the lessor, or lessee d ~az/n9 ~hts Ihemof for actual damages thereto a~l injury to ~ thereon,
(re)TAXES AND WAGES*FREEDOM OF PURCHASE. To pay, when due ail taxes lawfuly assessed and le~ed under
the laws of the Sta{e d W~omn~ upon irl'q~s, oil and gas produced fi'om the land hereunder, or dher rights,
ixopaty or assets of the lessee, to acc°rd M workmen and empt°yees cerrple~e fTeed°m °f purchase' and t° pw ~
wages due worn arid employees in confom~ance with the laws of the State o~ W,/efring.
(n}ASSIGNMENTS OF LEASE-PRODUC'flON AGREEMENTS. Not to assign this lease or any inta'est tha*ein, nor
':- 00282
when a~cx~ t~ ~o so has m ~ted by ~e Board a~d wi be mc~l w~ U~e lea~ The Board resenms the
dght of ~r~3plxoval of such o~ myalUes when in its °Pini°n they bec°me excess~e and hence are ~ ~ ~ ,
(o)DE~JVER PREMISES IN CASE OF FORFEITURE. To de~e~ up the leased prmr/ses, with all pem~anent