United States Department of the Interior

Transcription

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2 United States Department of the Interior Bureau of Land Management New Mexico State Office 1474 Rodeo Road P.O. Box Santa Fe, New Mexico In reply refer to: 3120 (930-lbo) August 28, 2002 NOTICE OF COMPETITIVE LEASE SALE Oil and Gas SALE LOCATION ADDRESS Bureau of Land Management 1474 Rodeo Road Santa Fe, New Mexico Notice is hereby given that on October 16, 2002, the U.S. Department of the Interior, Bureau of Land Management, New Mexico State Office, will offer for competitive sale, pursuant to Title 43 CFR Part 3120 and procedures herein, certain Federal lands for oil and gas leasing. LOCATION: The sale will be held in the second floor conference room, at the Bureau of Land Management, 1474 Rodeo Road, Santa Fe, New Mexico You must be present to bid. TIME: The competitive oral auction will commence at 9:00 a.m. on October 16, The sale room will be open to the public one hour prior to the time indicated above, to allow each interested party time to obtain a bidding number from authorized Bureau personnel. REGISTRATION AND BIDDING NUMBERS: Bidders will be required to obtain a bidding number prior to making any bid. Registration of bidders is required to speed paperwork and will commence at 8:00 a.m., October 16, LANDS OFFERED: The lands to be offered are described herein. Parcels will be offered for oral bid in the order shown in this Notice of Competitive Lease Sale. TERMS OF LEASE: Leases awarded as a result of this oral auction will be for a primary term of 10 years, and so long thereafter as there is production in paying quantities. The royalty will be at a flat rate of 12-1/2 percent of the value or the amount of production removed or sold from the lease. Other terms of the lease are specified on the standard lease (Form b, October 1992 edition). OTHER CONDITIONS: Specific surface use stipulations, where applicable, are specified for each parcel in this Notice of Competitive Lease Sale. Such stipulations shall become part of the lease and shall supersede any inconsistent provisions of the lease form. General surface use requirements are contained in law and regulation. Further details regarding the stipulations can be obtained from the New Mexico State Office. i

3 MINIMUM BID: The minimum acceptable bonus bid will be the lump sum equivalent of $2.00 per acre or fraction thereof. METHOD OF BIDDING: All bids shall be made orally and be based on a per-acre basis for the entire acreage in the parcel and not on the total bid amount. The bid must be rounded up to the next whole acre if fractional acreage is involved, e.g., a parcel of acres will require a minimum bid of at least $1, ($2.00 X 645 acres) to open the bidding process. FRACTIONAL INTERESTS: For some of the parcels, as indicated in the list, the United States holds less than 100 percent of the oil and gas rights. Any lease issued will be only for the percentages or fractions indicated. However, bonus bids and rentals for such parcels shall be based on the gross acreage in the parcel, not the net U.S. interest. Acreage chargeability and production royalty are, in contrast, calculated on the net U.S. interest. RIGHT TO WITHDRAW PARCELS FROM SALE: The Bureau of Land Management reserves the right to withdraw any or all of the parcels from the sale prior to or at the oral auction. In the event of cancellation of the sale, every effort will be made to give appropriate notice to all interested parties. If and when any individual parcels are withdrawn, notice thereof will be posted in the Public Room at the New Mexico State Office, 1474 Rodeo Road, Santa Fe, New Mexico DETERMINATION OF WINNING BID: A winning bid will be the highest oral bid, equal to or exceeding the national minimum acceptable bid specified above. The decision of the auctioneer shall be final. PAYMENT OF BONUS BID, RENTAL AND ADMINISTRATIVE FEE: A bid shall not be withdrawn and shall constitute a legally binding commitment to execute the lease bid form and accept a lease, including the obligation to pay the bonus bid, first year's rental, and administrative fee. Winning bidders shall be required to make payment for the parcel on the day of the oral auction for a total amount consisting of: (1) a bonus bid deposit of at least $2.00 per acre or fraction thereof; (2) the total amount of the first year's annual rental, at a rate of $1.50 per acre or fraction thereof; and (3) an administrative fee of $75.00 per parcel. Failure to pay this minimum deposit may result in assessment of civil penalties pursuant to the Federal Oil and Gas Royalty Management Act. This amount must be tendered at the close of business 4:00 p.m. the day of the sale. The entire amount due may be paid at this time. Any unpaid balance of the bonus bid must be received by the New Mexico State Office by the close of business on the tenth (10th) working day following the auction, which is 4:00 p.m., October 30, 2002, or all monies held by BLM and the right to issuance of the lease shall be forfeited. Any parcel so forfeited may be re-offered by BLM competitively at a later oral auction. Successful bidders for the future interest parcels are subject to these same conditions except (2) above in that no rental or royalty shall be due to the United States prior to the vesting of the oil and gas rights in the United States. FORM OF PAYMENT: Payment shall be made by personal check, certified check, or money order (SUCH FORMS OF PAYMENT MUST BE MADE PAYABLE TO THE DEPARTMENT OF THE INTERIOR - BLM), or by all Major CREDIT CARDS. Payment by cash is NOT allowed. BID FORM REQUIRED; AVAILABILITY: Pursuant to Title 43 CFR , successful high bidders will be required to submit WITH the required payments for each parcel on the day of the oral ii

4 auction of such parcel, a properly signed current competitive lease bid form (Form , October 1989). A separate bid form must be submitted for each parcel. This form is a legally binding offer by the prospective lessee to accept a lease pursuant to the terms and conditions specified herein for the parcel and on the standard lease form. Form may be obtained and executed by the prospective lessee or an authorized representative PRIOR to the oral auction. If the bid form is fully completed before the oral auction, it cannot be modified; portions of the form may be left blank to be completed by the bidder at the auction. If the bid form is not executed prior to the oral auction, the prospective lessee shall be required to complete and sign the bid form at the auction when the payment is tendered. Form , when completed, certifies compliance with lessee qualifications (See Title 43 CFR ) and also certified compliance with 18 U.S.C. 1860, which prohibits unlawful combination of/or intimidation of bidders and certifies that the bid was arrived at independently without unlawful collusion. Forms and b are made a part of this sale notice. AWARD/ISSUANCE OF LEASES: Prospective lessees are advised that leases may be issued, upon signature by the authorized officer, without further action on their part, once all remaining bonus bid monies are timely received. The effective date of the lease shall be the first day of the month following execution of the lease form by the authorized officer, except that leases may, upon written request from the lessee received prior to signature on the lease by the authorized officer, be effective the first day of the month in which issued. Leases for future interest shall be effective as of the date the mineral interests vest in the United States, all else being regular. UNSOLD PARCELS: Parcels contained in this Notice of Competitive Lease Sale for which no bids are received at the oral auction and no noncompetitive presale offers are pending, and which have not been withdrawn from the sale by BLM, shall be available for regular noncompetitive lease offer in accordance with Title 43 CFR Subpart 3110 for a 2-year period. The 2-year period shall commence at 9:00 a.m., October 17, 2002, the hour the public room opens on the first business day after the auction, and ending at 4:00 p.m., October 16, All noncompetitive offers received on that first business day following the auction will be considered simultaneously filed. Offers received thereafter shall receive priority as of the date and time of filing, as specified at Title 43 CFR (a). A drop box will be available at the auction for noncompetitive offers for any parcel which has received no national minimum acceptable bid and all offers placed in the box shall be considered simultaneously filed during the first business day following the close of the oral auction. The drop box will be available until 1 hour following the close of the oral auction. Conflicting applications filed during the first business day following the auction and/or placed in the drop box at the sale will be prioritized by public drawing. This drawing will be held in the BLM Public Room in Santa Fe, NM at 3:00 p.m. on Monday, October 21, iii

5 PENDING NONCOMPETITIVE PRESALE OFFERS: A presale noncompetitive offer filed in accordance with Title 43 CFR (a) for a parcel offered at the sale, and for which no bid is received, has first priority over an offer filed after the sale. Parties are cautioned that any lands in a parcel not sold at the auction, which are subject to a pending noncompetitive presale offer, may not be available for further noncompetitive filings. Those lands will be issued to the party who submitted the presale offer, all else being regular. However, if it is announced at the beginning of the sale that the presale offer has been withdrawn, noncompetitive filings will be accepted after the sale for that parcel. Parcels with pending noncompetitive presale offers are identified in this Notice of Competitive Lease Sale by the notation "Pending Presale Offer No." ", indicated after the parcel description. PUBLIC NOTICE Bidders are reminded that a bid shall not be withdrawn and shall constitute a legally binding commitment to execute the lease bid form and accept a lease, including the obligation to pay the bonus bid, first year's rental, and administrative fee. There have been cases in past oral auctions where the minimum deposit due from the high bidder on the day of the auction was not paid, or was paid by a check drawn on an account with insufficient funds. The Bureau of Land Management will be closely monitoring situations of this nature to determine whether further measures should be initiated to protect the integrity of the system. DUE TO BUDGET RESTRAINTS, EXTRA COPIES OF THE SALE NOTICE WILL NO LONGER BE PROVIDED AT THE SALE. HOWEVER, THEY WILL BE AVAILABLE FOR PURCHASE FROM THE CASHIER. NOTE: SHOULD ASSISTANCE BE NEEDED FOR THE HEARING OR VISUALLY IMPAIRED, PLEASE CONTACT THE NEW MEXICO STATE OFFICE AT (505) BY October 4, THE SALE SITE IS ACCESSIBLE TO THE HANDICAPPED. /s/ Lourdes B. Ortiz Lourdes B. Ortiz Land Law Examiner Fluids Adjudication Team iv

6 PARCELS WITH PRESALE OFFERS AND PARCELS WITHOUT PRESALE OFFERS 10/16/2002 LEASE SALE STATE PARCELS PARCELS ACRES ACRES WITH WITHOUT WITH WITHOUT PRESALE A PRESALE TOTAL PRESALE A PRESALE TOTAL OFFER OFFER PARCELS OFFER OFFER ACRES NM , , KS OK TX TOTALS , , v

7 PLEASE FILL IN THE NAME AND ADDRESS AS IT SHOULD APPEAR ON THE ISSUED LEASE NEW BIDDER REGISTRATION FORM BIDDER NO. (Leave Blank) NAME: TELEPHONE: ADDRESS: CITY: STATE: ZIP CODE: ADDRESS: THE LESSEE MUST BE QUALIFIED TO HOLD A FEDERAL OIL AND GAS LEASE. SIGNATURE DATE

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12 U. S. DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT NEW MEXICO STATE OFFICE OCTOBER 16, 2002 OIL AND GAS LEASE SALE PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 28W 11 SENW,E2SW; P N KS LANE 6TH ORA-2 KSNM S 43W 02 1,2; P N KS 02 S2NE; HAMILTON 6TH KSNM N 03W 34 NW; P N NM SANDOVAL NMNM N 05W 18 1,2; P N NM 18 N2NE,E2NW; MCKINLEY 19 NE; F-15* 27 SW; *F15 APPLIES TO SEC. 18: N2NE,E2NW SEC. 19: NE NMNM 5980 NMNM NMNM NMNM

13 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 06W 01 SW; P N NM 11 NE,SW; MCKINLEY 12 E2,SW; NM-6 NMNM NMNM N 06W 06 SENE; P N NM SANDOVAL NMNM N 06W 33 NE,SW; P N NM SANDOVAL NMNM N 06W 01 1,2,3,4; 1, P N NM 01 S2N2,S2; SANDOVAL 11 W2,SE; 12 ALL; NMNM NMNM NMNM NMNM NMNM

14 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 06W 03 1,2,3,4; 1, P N NM 03 S2N2,S2; SANDOVAL 04 1,2,3,4; 04 S2N2,SW; 09 N2,W2SW; 17 NE; NMNM NMNM NMNM NMNM N 06W 05 1,2,3,4; P N NM 05 S2N2,SE; SANDOVAL 06 1,2; 06 S2NE; NMNM N 06W 10 E2,SW; 2, P N NM 13 ALL; SANDOVAL 14 ALL; 15 N2,SW; PRIOR LEASE NOS.: NMNM NMNM NMNM NMNM NMNM NMNM NMNM N 06W 21 N2,SW; NM 22 W2NE,SENE,NW; 1, P N SANDOVAL 27 E2; 28 NW; NMNM 7008 NMNM 19814A NMNM NMNM NMNM NMNM

15 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 06W 23 W2; 1, P N NM 24 E2,SW; SANDOVAL 25 W2; 26 E2,SW; PRIOR LEASE NOS.: NMNM NMNM NMNM NMNM NMNM N 07W 01 S2; NM 11 NE; P N SANDOVAL 12 SE; 13 NE,E2NW; NMNM NMNM N 07W 19 SE; P N NM 28 NW; SANDOVAL 29 NW,SE; NMNM N 07W 21 W2; P N NM 23 NESE; SANDOVAL 26 S2SE; 30 1,2,3,4; 30 E2W2,SE; NMNM NMNM

16 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 08W 06 2,3,4,5,6,7; 1, P N NM 06 S2NE,SENW,E2SW,SE; SAN JUAN 24 ALL; F-15 APPLIES TO: 34 1,2,3,4; SEC.6: LOTS 2-7, S2NE,SENW,E2SW,SE NMNM N 08W 08 ALL; 1, P N NM 09 W2; SAN JUAN 11 NE; F-15 NMNM N 08W 09 S2N2,SE; P N NM 10 S2NW; SAN JUAN NMNM N 08W 01 3,4; P N NM 01 S2NW; SAN JUAN 02 1,2,3,4; 12 ALL; NMNM NMNM N 08W 04 1,2,3,4; P N NM 04 S2N2,S2; SAN JUAN NMNM

17 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 08W 06 1,2,3,4,5,8,9,10,11; P N NM 06 S2NE,SENW,SE; SAN JUAN 08 E2; NMNM NMNM N 09W 04 1,2; P N NM 04 S2NE,SW; SAN JUAN 05 1,2; 05 S2NE; 08 NE; 09 SW; NMNM N 09W 21 NE,SW; N N NM SAN JUAN F-19 NMNM N 10W 08 SE; P N NM SAN JUAN F N 10W 13 S2; 1, P N NM 15 E2,SW; SAN JUAN 21 W2,SE; F-9 22 N2; 27 NW; NMNM NMNM NMNM

18 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 11W 03 1,2,3,4; 1, P N NM 03 S2N2,S2; SAN JUAN 10 ALL; NMNM N 11W 22 SW; P N NM SAN JUAN NMNM N 11W 25 W2; 1, P N NM 26 S2; SAN JUAN 27 ALL; NMNM NMNM NMNM NMNM N 11W 34 ALL 1, P N NM 35 ALL; SAN JUAN NMNM NMNM NMNM

19 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 20W 17 ALL; 1, P N NM 18 1,2,3,4; HIDALGO 18 E2,E2W2; 19 1,2,3,4; WO-ESA 7 19 E2,E2W2; NMNM NMNM S 17E 22 ALL; 1, P N NM 23 ALL; CHAVES 24 NE,E2NW,NESW,N2SE,SWSE; SENM-S-17* SENM-S-25 WO-ESA 7 *SENM-S-17 APPLIES TO: SEC. 22: SW SEC. 23: NENE SEC. 24: NE,E2NW,NESW,N2SE,SWSE NMNM NMNM S 17E 25 NWNE,S2NE,SENW,S2; 1, P N NM 26 ALL; CHAVES 34 ALL; SENM-S-17* WO-ESA 7 SENM-S-17 APPLIES TO: SEC. 25: S2S2 SEC. 26: S2S2N2S2 SEC. 34: E2NE NMNM S 19E 25 NW,S2; 1, P N NM 26 E2,E2NW,SWNW,SW; CHAVES WO-ESA 7 SENM-S-18 APPLIES TO: SEC. 25: SWSE SENM-S-18* NMNM

20 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 19E 30 1,2; P N NM 30 NE,E2NW; CHAVES 31 1,2; 31 NE,E2NW; WO-ESA 7 NMNM S 19E 33 N2,N2S2; P N NM 34 W2NE,NW,N2SW,NWSE; CHAVES SENM-S-17: SEC.33: N2NE WO-ESA 7 NMNM S 19E 35 N2,N2S2; P N NM CHAVES SENM-S-18: SEC.35: E2NWSE WO-ESA 7 NMNM S 19E 03 1,2,3,4; P N NM 03 S2N2,NESW,N2SE; CHAVES 04 1,2,3,4; SENM-S-17: 04 S2N2,NESW,W2SW,NWSE; SEC. 3: S2NE SEC. 4: SWSW WO-ESA 7 NMNM NMNM

21 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 19E 06 1,2,3,4,5,6,7; 1, P N NM 06 S2NE,SENW,E2SW,SE; CHAVES 07 1,2,3,4; SENM-S-17* 07 NE,E2W2,N2SE,SWSE; SENM-S-18** WO-ESA 7 *SENM-S-17 APPLIES TO: SEC. 6: LOTS 3,4, S2 SEC. 7: LOTS 1,2 **SENM-S-18 APPLIES TO: SEC. 6: LOTS 2,3,4,5 NMNM NMNM NMNM S 19E 08 N2,N2S2,SESE; 1, P N NM 09 E2,S2NW,SW; CHAVES SENM-S-17: SEC. 8: E2SE SENM-S-18: SEC. 9: SESE WO-ESA 7 NMNM S 19E 17 NENE,W2E2,W2,SESE; P N NM CHAVES SENM-S-18: SEC. 17: SESE WO-ESA 7 NMNM NMNM NMNM S 19E 30 1,2,3,4; P N NM 30 E2,E2W2; CHAVES SENM-S-18: SEC. 30: LOT 1 WO-ESA 7 NMNM

22 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 19E 33 ALL; P N NM CHAVES WO-ESA 7 NMNM NMNM S 20E 03 1,2,3,4; P N NM 03 S2N2,S2; CHAVES WO-ESA 7 NMNM S 20E 09 ALL; P N NM CHAVES WO-ESA 7 *SENM-S-18 APPLIES TO: SEC. 9: SENE,S2NW,E2SW,NWSE SENM-S-18* NMNM S 20E 01 1,2,3,4; P N NM 01 S2N2,S2; CHAVES WO-ESA 7 SENM-S-25 NMNM S 20E 12 ALL; P N NM CHAVES SENM-S-18: WO-ESA 7 SEC.12: S2N2SW,S2S2 NMNM

23 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 20E 13 ALL; P N NM CHAVES WO-ESA 7 NMNM S 21E 13 SE; P N NM 24 NE; EDDY WO-ESA 7 NMNM S 21E 26 S2N2,S2; 1, P N NM 34 W2NE,SENE,W2,SE; EDDY 35 ALL; SENM-S-18* WO-ESA 7 SENM-S-18 APPLIES TO: SEC. 26: S2N2N2N2SE,S2NESE,N2SESE, E2SWSE,NWNWSW SEC. 34: S2N2NENW,W2NW SEC. 35: NWNE,NWSWNE,S2NW,NWSW NMNM S 21E 23 S2; P N NM EDDY SENM-S-18: SEC.23: N2N2S2 SENM-S-25 NMNM S 23E 33 S2S2; P N NM EDDY WO-ESA 7 NMNM

24 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 23E 01 1,2; P N NM 01 S2NE,SENW,E2SW,SE; EDDY 04 1,2,3,4; SENM-LN-1 04 S2N2,N2S2; SENM-S-21 SENM-S-25 WO-ESA 7 NMNM NMNM S 24E 18 1,2,3,4,5,6,9,10; P N NM 18 NE; CHAVES SENM-S-18 NMNM NMNM S 24E 22 S2N2,SW,N2SE,SESE; 1, P N NM 27 W2; CHAVES 31 7,8,9,10,11,12; SENM-S-21 NMNM S 25E 11 SW; P N NM 14 NE; EDDY SENM-S-18: SEC. 11: N2SW NMNM NMNM S 26E 03 3,4; P N NM CHAVES SENM-S-18 NMNM

25 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 26E 33 1,2,3,4; P N NM 33 N2NE,SWNE,SE; CHAVES 34 S2SE; SENM-LN-1 35 S2SW,SE; SENM-S-26 APPLIES TO: SEC.34: SESE SEC.35: S2SW,SE NMNM NMNM S 26E 12 ALL; P N NM CHAVES NMNM NMNM S 27E 11 ALL; P N NM CHAVES SENM-S-21 NMNM S 27E 03 1,2,3,4,5,6,7,8,9,10; P N NM 03 11,12,13,14,15,16; EDDY 03 S2; SENM-LN-1 NMNM NMNM NMNM NMNM NMNM

26 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 27E 34 E2NE; P N NM EDDY SENM-LN-1 SENM-S-21 NMNM S 27E 12 SESW,SE; P N NM EDDY SENM-LN-1 SENM-S-21 NMNM S 29E 09 S2NE,SW,NESE,W2SE; P N NM CHAVES NMNM S 31E 03 1,2; P N NM 10 ALL; CHAVES SENM-S-17 SENM-S-22 NMNM NMNM S 33E 18 2; P N NM 18 SENE,E2SE; LEA NMNM

27 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 34E 27 NWNE,SWNW; P N NM LEA SENM-S-19 NMNM S 34E 22 S2; P N NM LEA SENM-LN-1 SENM-S-22 NMNM A S 35E 17 ALL; 1, P N NM 18 1; LEA 18 N2NE,NENW,W2SE; 31 1,2; SENM-S NE,E2NW; NMNM NMNM NMNM NMNM NMNM S 35E 30 2,4; P N NM 30 E2NE,SENW,SESW,S2SE; LEA SENM-S-22 NMNM

28 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE S 38E 01 1,2,3,4; P N NM 04 1; LEA 04 SENE; 11 N2SW,NWSE; SENM-S ,4; 28 SWSW,NESE; NMNM NMNM NMNM NMNM NMNM S 38E 14 4; NM 14 NENW,SWSW; P N LEA 23 1; SENM-S SWNE,NWNW,SWSE; NMNM NMNM N 25E 36 1; P N OK LEFLORE IM ORA-1 ORA-2 ORA(LN-1) ORA-4 (NSO) NM N 25E 20 40,49,51,52,90,91; P N OK 21 63,64,65,66,67,68; LEFLORE NM-8 IM ORA-1 ORA-2 ORA(LN-1) OKNM

29 PARCEL STATE ACRES ACQUIRED FUTURE COUNTY STIPULATIONS OR INTEREST MERIDIAN TOWN SUBDIVISION NAME PUBLIC (YES/NO) U.S.INTEREST SHIP RANGE SEC. (A NUMERIC W/O A PREFIX IS A LOT) OLD SERIAL NO. DOMAIN REV DATE N 19W 12 ACCR & RIPAR AC TO LOT 1; P N OK 12 ACCR & RIPAR AC TO LOT 2; DEWEY 12 ACCR & RIPAR AC TO LOT 3; ORA-1 IM 12 ACCR & RIPAR AC TO LOT 4; ORA-2 12 SEE EXHIBIT A FOR M&B; ORA(LN-1) OKNM

30 EXHIBIT A Page 1 or 5 METES AND BOUNDS DESCRIPTION OF THE ACCRETION AND RIPARIAN ACREAGE TO LOT 1, SECTION 12, T16N-R19W, NOT COVERED BY EXISTING B.L.M. LEASES NM (OK) AND NM (OK) LOCATED ALONG THE CANADIAN RIVER, DEWEY COUNTY, OKLAHOMA (Bearings and Distances are Geodetic) Beginning at the Southeast corner of Lot 1, said point being South 58 43'46" East a distance of feet from the ancient meander corner between Sections 11 and 12, T16N-R19W, Dewey County, Oklahoma. Thence South 21 21'45" West a distance of feet to a proportional point on the 2002 left bank; Thence South 05 12'52" East a distance of feet to a point on the 2002 medial line; Thence along the 2002 medial line the following courses and distances: South 84 47'08" West a distance of feet; South 59 21'23" West a distance of feet; North 87 22'43" West a distance of feet; North 79 27'49" West a distance of feet; North 59 06'14" West a distance of feet; North 27 16'27" West a distance of feet; North 71 22'19" West a distance of feet; North 40 11'03" West a distance of feet; North 45 41'53" West a distance of 3.98 feet to a point on the East line of existing B.L.M. lease NM (OK); Thence along said existing lease North 15 15'00" East a distance of feet to a point on the South line of existing B.L.M. lease NM (OK); Thence along the South and East boundary of said existing B.L.M. lease the following courses and distances: South 74 45'00" East a distance of feet; South 79 00'00" East a distance of feet; North 11 00'00" East a distance of feet to a point on the ancient left bank; Thence along the ancient left bank, South 83 15'00" East a distance of feet to the POINT OF BEGINNING, and containing acres of land more or less. 19

31 EXHIBIT A Page 2 of 5 METES AND BOUNDS DESCRIPTION OF THE ACCRETION AND RIPARIAN ACREAGE TO LOT 2, SECTION 12, T16N-R19W, NOT COVERED BY EXISTING B.L.M. LEASES NM (OK) AND NM (OK) LOCATED ALONG THE CANADIAN RIVER, DEWEY COUNTY, OKLAHOMA (Bearings and Distances are Geodetic) Beginning at the Southwest corner of Lot 2, said point being South 58 43'46" East a distance of feet from the ancient meander corner between Sections 11 and 12, T16N-R19W, Dewey County, Oklahoma. Thence along the ancient left bank, South 83 15'00" East a distance of feet to the Southeast corner of said Lot 2; Thence South 13 56'43" West a distance of feet to a proportional point on the 2002 left bank; Thence South 52 25'21" West a distance of feet to a point on the 2002 medial line; Thence along the 2002 medial line the following courses and distances: North 37 34'38" West a distance of feet; North 51 37'39" West a distance of feet; North 62 13'15" West a distance of feet; North 50 52'31" West a distance of feet; North 44 42'14" West a distance of feet; North 51 25'29" West a distance of feet; North 76 39'59" West a distance of feet; North 74 37'31" West a distance of feet; North 66 01'42" West a distance of feet; North 85 51'13" West a distance of feet; South 84 47'08" West a distance of feet to a point; Thence North 05 12'52" West a distance of feet to a proportional point on the 2002 left bank; Thence North 21 21'45" East a distance of feet to the POINT OF BEGINNING, and containing acres of land more or less. 20

32 METES AND BOUNDS DESCRIPTION OF THE ACCRETION AND RIPARIAN ACREAGE TO LOT 3, SECTION 12, T16N-R19W, NOT COVERED BY EXISTING B.L.M. LEASES NM (OK) AND NM (OK) LOCATED ALONG THE CANADIAN RIVER, DEWEY COUNTY, OKLAHOMA (Bearings and Distances are Geodetic) EXHIBIT A Page 3 of 5 Beginning at the Southeast corner of Lot 3, said point being South 82 45'00" West a distance of feet from the ancient meander corner on the ancient left bank between Section 7, T16N-R18W and Section 12, T16N-R19W, Dewey County, Oklahoma. Thence South 07 00'25" West a distance of feet to a point on B.L.M. existing lease NM (OK); Thence along the West and South boundary of said B.L.M. lease the following courses and distances: South 26 30'00" West a distance of feet; South 63 30'00" East a distance of feet to a point on the East accretion line of said Lot 3; Thence South 07 00'25" West a distance of feet to a proportional point on the 2002 left bank; Thence South 01 20'34" East a distance of feet to a point on the 2002 medial line; Thence along the 2002 medial line the following courses and distance: South 89 20'21" West a distance of feet; South 77 34'17" West a distance of feet; South 65 07'19" West a distance of feet; South 83 07'32" West a distance of feet; South 86 20'34" West a distance of feet; North 78 45'30" West a distance of feet; North 69 23'49" West a distance of feet; North 66 43'06" West a distance of feet; North 37 34'39" West a distance of feet to a point; Thence North 52 25'21" East a distance of feet to a proportional point on the 2002 left bank; Thence North 13 56'43" East a distance of feet to a point on the ancient left bank; Thence along the ancient left bank the following courses and distances: South 83 15'00" East a distance of feet; North 82 45'00" East a distance of feet to the POINT OF BEGINNING, and containing acres of land more or less. 21

33 EXHIBIT A Page 4 of 5 METES AND BOUNDS DESCRIPTION OF THE ACCRETION AND RIPARIAN ACREAGE TO LOT 4, SECTION 12, T16N-R19W, NOT COVERED BY EXISTING B.L.M. LEASES NM (OK) AND NM (OK) LOCATED ALONG THE CANADIAN RIVER, DEWEY COUNTY, OKLAHOMA (Bearings and Distances are Geodetic) Beginning at the Southeast corner of Lot 3, said point being South 82 45'00" West a distance of feet from the ancient meander corner on the ancient left bank between Section 7, T16N-R18W and Section 12, T16N-R19W, Dewey County, Oklahoma. Thence along the ancient left bank, North 82 45'00" East a distance of feet to a point on the West boundary of existing B.L.M. lease NM (OK); Thence along the West boundary of said B.L.M. lease, South 26 30'00" West a distance of feet to a point on the West accretion line of said Lot 4; Thence along the West accretion line of said Lot 4, North 07 00'25" East a distance of feet to the POINT OF BEGINNING, and containing 0.86 acres of land more or less. 22

34 EXHIBIT A Page 5 of 5 METES AND BOUNDS DESCRIPTION OF THE ACCRETION AND RIPARIAN ACREAGE TO LOT 4, SECTION 12, T16N-R19W, NOT COVERED BY EXISTING B.L.M. LEASES NM (OK) AND NM (OK) LOCATED ALONG THE CANADIAN RIVER, DEWEY COUNTY, OKLAHOMA (Bearings and Distances are Geodetic) Beginning at the ancient meander corner on the ancient left bank between Section 7, T16N-R18W and Section 12, T16N-R19W, Dewey County, Oklahoma. Thence South 04 11'30" West a distance of feet to a proportional point on the 2002 left bank; Thence South 38 47'40" West a distance of feet to a point on the 2002 medial line; Thence along the 2002 medial line the following courses and distances: North 51 12'21" West a distance of feet; North 73 02'45" West a distance of feet; North 61 56'24" West a distance of feet; North 80 00'22" West a distance of feet; North 74 14'47" West a distance of feet; North 84 47'16" West a distance of feet; North 80 05'43" West a distance of feet; North 82 59'56" West a distance of feet; South 89 20'22" West a distance of feet to a point; Thence North 01 20'34" West a distance of feet to a proportional point on the 2002 left bank; Thence North 07 00'25" East a distance of feet to a point on the South boundary of B.L.M. lease NM (OK); Thence along the South and East boundary of said existing B.L.M. lease the following courses and distances: South 63 30'00" East a distance of feet; South 75 00'00" East a distance of feet; North 15 00'00" East a distance of feet to the POINT OF BEGINNING, and containing acres of land more or less. 23

35 F-9 CONTROLLED SURFACE USE STIPULATION PALEONTOLOGY Surface occupancy or use is subject to the following special operating contraints: -Restrict vehicles to existing roads and trails -Require a paleontological clearance on surface disturbing activities On the lands described below: For the purpose of: To protect the area for scientific study. -Betonnie Tsosie -Kutz Canyon Paleontological Area -Torrejon Fossil Fauna ACEC Any changes to this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. Bureau of Land Management F-9 Farmington District Office May

36 F-15 CONTROLLED SURFACE USE STIPULATION RIGHT-OF-WAY WINDOW Surface occupancy or use is subject to the following special operating constraints: Oil and gas facilities will be placed so as not to conflict with the placement of rights-of-way within the right-of-way window. On the lands described below: For the purpose of: The management goal of a ROW window is to route ROWs away from special management areas where ROWs are considered incompatible. The best method of achieving this goal is to provide strategic areas through which utilities and roads should be placed to avoid such conflicts. Within these windows, ROW placement would be considered the highest and best use. Land use allocations which conflict with the purpose of the window designations would be discouraged. If the land or mineral pattern around any of the windows changes enough to impact the intent of the designation, the BLM District Manager can issue a decision to remove its special management status. Any changes to this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. Bureau of Land Management F-15 Farmington District Office May

37 F-19 NO SURFACE OCCUPANCY STIPULATION SPECIAL CULTURAL VALUES No surface occupancy or use is allowed on the lands described below: For the purpose of: No surface occupancy or other activity on the surface is allowed under this lease in order to protect cultural values. Any changes to this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. Bureau of Land Management F-19 Farmington District Office May

38 NM-6 CONTINENTAL DIVIDE TRAIL No occupancy or other surface disturbance will be allowed within 1000 feet of the Continental Divide National Scenic Trail Treadway. This distance may be modified when specifically approved in writing by the Bureau of Land Management at the address shown below: Address: Albuquerque Field Office 435 Montano NE Albuquerque, NM (505) Bureau of Land Management NM-6 New Mexico State Office October 1,

39 NM-8 LEASE NOTICE COAL PROTECTION Federal coal resources exist on this lease. Operations authorized by this lease may be altered or modified by the authorized officer (at the address shown below) in order to conserve and protect the mineral resources and provide for simultaneous operations. Address: Tulsa Field Office 7906 E. 33 Rd Street, Suite 101 Tulsa, OK (918) Bureau of Land Management NM-8 New Mexico State Office April 2,

40 ORA-1 FLOODPLAIN PROTECTION STIPULATION CONTROLLED SURFACE USE All or portions of the lands under this lease lie in and/or adjacent to a major watercourse and are subject to periodic flooding. Surface occupancy of these areas will not be allowed without specific approval, in writing, of the Bureau of Land Management. For the following described land(s): Any changes in this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. Bureau of Land Management ORA-1 Oklahoma Field Office November

41 ORA-2 WETLAND/RIPARIAN STIPULATION CONTROLLED SURFACE USE All or portions of the lands under this lease contain wetland and/or riparian areas. Surface occupancy of these areas will not be allowed without the specific approval, in writing, of the Bureau of Land Management. Impacts or disturbance to wetlands and riparian habitats which occur on this lease must be avoided, or mitigated. The mitigation shall be developed during the application for permit to drill process. For the following described land(s): All lands in lease. Any changes in this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. Bureau of Land Management ORA-2 Oklahoma Field Office November

42 ORA(LN-1) LEASE NOTICE THREATENED AND ENDANGERED SPECIES According to preliminary information all or portions of this lease area could contain Federal and/or State-listed threatened or endangered species and/or their habitats. Any proposed surface disturbing activity may require an inventory and consultation with the U.S. Fish and Wildlife Service and/or the State Wildlife agency. The consultation could take up to 180 days to complete. Surface occupancy could be restricted or not allowed as a result of the consultation. Appropriate modifications of the imposed restrictions will be made for the maintenance and operations of producing oil and gas wells. Bureau of Land Management ORA(LN-1) Oklahoma Field Office November

43 ORA-4(NSO) NO SURFACE OCCUPANCY STIPULATION No surface occupancy or use is allowed on the lands described below. The lands may be drilled directionally from an off-site location where occupancy is allowed. On the lands described below: All Lands in Lease. For the purpose of: Protection of a resource or use not compatible with oil and gas development. Any changes in this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. Bureau of Land Management ORA-4(NSO) Oklahoma Field Office November

44 SENM-LN-1 LEASE NOTICE POTENTIAL CAVE OR KARST OCCURRENCE AREA All or portion of the lease are located in a potential cave or karst occurrence area. Within this area, caves or karst features such as sinkholes, passages, and large rooms may be encountered from the surface to a depth of as much as 2,000 feet, within surface areas ranging from a few acres to hundreds of acres. Due to the sensitive nature of the cave or karst systems of this area, special protective measures may be developed during environmental analyses and be required as part of approvals for drilling or other operations on this lease. These measures could include: changes in drilling operations; special casing and cementing programs; modifications in surface activities; or other reasonable measures to mitigate impacts to cave or karst values. These measures may be imposed in accordance with 43 CFR ; 43 CFR ; Onshore Oil and Gas Order No. 1; and Section 6 of the lease terms. Bureau of Land Management SENM-LN-1 Roswell/Carlsbad Field Office February

45 SENM-S-17 SLOPES OR FRAGILE SOILS Surface occupancy or use is subject to the following special operating constraints: Surface disturbance will not be allowed on slopes over 30 percent. Exceptions will be considered for authorized mineral material extraction sites and designated OHV areas, for the installation of projects designed to enhance or protect renewable natural resources, or if a plan of operating and development which provides for adequate mitigation of impacts was approved by the Authorized Officer. Occupancy or use of fragile soils will be considered on a case-by-case basis. For the purpose of: Protecting Slopes or Fragile Soils Bureau of Land Management SENM-S-17 Roswell/Carlsbad Field Office December

46 SENM-S-18 STREAMS, RIVERS, AND FLOODPLAINS Surface occupancy or use is subject to the following special operating constraints: Surface disturbance will not be allowed within up to 200 meters of the outer edge of 100-year floodplains, to protect the integrity of those floodplains. On a case-by-case basis, an exception to this requirement may be considered based on one or more of the criteria listed below. The first three criteria would not be applied in areas of identified critical or occupied habitat for federally listed threatened or endangered species. --Additional development in areas with existing developments that have shown no adverse impacts to the riparian areas as determined by the Authorized Officer, following a case-by-case review at the time of permitting. --Suitable off-site mitigation if habitat loss has been identified. --An approved plan of operations ensures the protection of water or soil resources, or both. --Installation of habitat, rangeland or recreation projects designed to enhance or protect renewable natural resources. For the purpose of: Protecting Streams, Rivers and Floodplains Bureau of Land Management SENM-S-18 Roswell/Carlsbad Field Offices December

47 SENM-S-19 PLAYAS AND ALKALI LAKES Surface occupancy or use is subject to the following special operating constraints: Surface disturbance will not be allowed within up to 200 meters of PLAYAS of Alkali Lakes. Waiver of this requirement will be considered on a case-by-case basis for projects designed to enhance or protect renewable natural resources. An exception for oil and gas development will be considered if Playa lake loss was mitigated by the protection and development of another playa exhibiting the potential for improvement. Mitigation could include: installing fencing; developing a supplemental water supply; planting trees and shrubs for shelter belts; conductingplays basin excavation; constructing erosion control structures or cross dikes; or by improving the habitat in another area. For the purpose of: Protecting Playas and Alkali Lakes Bureau of Land Management SENM-S-19 Roswell/Carlsbad Field Offices December

48 SENM-S-21 CAVES AND KARST Surface occupancy or use is subject to the following special operating constraints: Surface disturbance will not be allowed within up to 200 meters of known cave entrances, passages or aspects of significant caves, or significant karst features. Waiver of this requirement will be considered for projects that enhance or protect renewable natural resource values, or when an approved plan of operations ensures the protection of cave and karst resources. For the purpose of: Protecting Caves and Karst Features Bureau of Land Management SENM-S-21 Roswell/Carlsbad Field Office December

49 SENM-S-22 PRAIRIE CHICKENS No surface use is allowed during the following time periods; unless otherwise specified, this stipulation does not apply to the operation and maintenance of production facilities. Drilling for oil and gas, and 3-D geophysical exploration operations will not be allowed in Lesser Prairie Chicken Habitat during the period of March 15 through June 15, each year. During that period, other activities that produce noise or involve human activity, such as the maintenance of oil and gas facilities, geophysical exploration other than 3-D operations, and pipeline, road, and well pad construction, will be allowed except between 3:00 a.m. and 9:00 a.m.. The 3:00 a.m. and 9:00 a.m. restriction will not apply to normal, around-the-clock operations, such as venting, flaring, or pumping, which do not require a human presence during the period. Additionally, no new drilling will be allowed within up to 200 meters of leks known at the time of permitting. Normal vehicle use on existing roads will not be restricted. Exhaust noise from pump jack engines must be muffled or otherwise controlled so as not to exceed 75 db measured at 30 feet from the source of the noise. Exceptions to these requirements will be considered for areas of no or low prairie chicken booming activity, or unoccupied habitat, including leks, as determined at the time of permitting, or in emergency situations. For the purpose of: Protecting Prairie Chickens Bureau of Land Management SENM-S-22 Roswell/Carlsbad Field Offices December

50 SENM-S-25 VISUAL RESOURCE MANAGEMENT Surface occupancy or use is subject to the following special operating constraints: Painting of oil field equipment and structures to minimize visual impacts will be conducted according to the requirements of Notice to Lessees (NTL) 87-1, New Mexico. Low profile facilities also may be required,when needed to reduce the contract of a project with the dominant color, line, texture, and form of the surrounding landscape. Other surface facilities or equipment approved by the BLM, such as large-scale range improvements or pipelines, will b painted, when needed, to conform with the requirements of visual resource management to minimize visual impacts. Paint colors will be selected from the ten standard environmental colors approved by the Rocky Mountain Coordinating committee. The selected paint color will match as closely as possible the predominant soil or vegetation color of the area. For the purpose of: Protecting Visual Resources Management Bureau of Land Management SENM-S-25 Roswell/Carlsbad Field Office December

51 SENM-S-26 NO SURFACE OCCUPANCY STIPULATION No surface occupancy or use is allowed on the lands described below: For the purpose of: Protecting significant cultural and natural resource protection values within the Garnsey Bison Kill Site Protected area (CRA SMA No. 16) as discussed in the Carlsbad Resource Management Plan. If circumstances or relative resource values change or if the lessee demonstrates that operations can be conducted without causing unacceptable impacts, this stipulation may be waived, excepted, or modified by the authorized officer if such action is consistent with the provisions of the applicable Land Use Plan, or if not consistent, through a planning amendment. If the authorized officer determines that the waiver, exception, or modification is substantial, the waiver, exception, or modification will be subject to a 30-day public review period. Bureau of Land Management SENM-S-26 Carlsbad Field Office Revised January

52 WO-ESA 7 ENDANGERED SPECIES ACT SECTION 7 CONSULTATION STIPULATION The lease area may now or hereafter contain plants, animals, or their habitats determined to be threatened, endangered, or other special status species. BLM may recommend modifications to exploration and development proposals to further its conservation and management objective to avoid BLM-approved activity that will contribute to a need to list such a species or their habitat. BLM may require modifications to or disapprove proposed activity that is likely to result in jeopardy to the continued existence of a proposed or listed threatened or endangered species or result in the destruction or adverse modification of a designated or proposed critical habitat. BLM will not approve any grounddisturbing activity that may affect any such species or critical habitat until it completes its obligations under applicable requirements of the Endangered Species Act as amended, 16 U.S.C et seq., including completion of any required procedure for conference or consultation. 41

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