PARTIAL LEASE CONTINUATION AGREEMENT
(the “Agreement”)
THIS AGREEMENT made as of the day of , 20__.
BETWEEN:
PrairieSky Royalty Ltd.
(herein called the “Lessor")
OF THE FIRST PART
-and-
[Insert Appropriate Company name - Entity]
(herein called the “Lessee")
OF THE SECOND PART
Lessor and Lessee covenant and agree as follows:
- Definitions:
In this Agreement, including this Clause:
- "Effective Date" means the [day] of[month],20__.
- "Lease" means the petroleum and natural gasLease attached hereto as Schedule "A".
- “Preserved Estate” means all petroleum and natural gas in the following formations:
- Formation and description
- “Preserved Lands” means the following described land located in the Province of Alberta:
Twp Rge W M:
- "Terminated Estate" means all zones and formations other than the Preserved Estate.
- "Terminated Lands" means all lands described in the Lease other than the Preserved Lands
- Continuation and Termination:
a.In consideration ofthe mutual convenants and terms set forth herein and other good and valuable considerationincluding the terms set out in clause 2 b. below, the receipt and sufficiency of which is hereby acknowledged, Lessee and Lessor acknowledge and agree that only the Preserved Estate underlying the PreservedLands, insofar as the same are granted by the Lease, shall continue under the terms and provisions of the Lease and the Terminated Lands and Terminated Estate, subject to the provisions set out below,are terminated from the Lease effective as of the Effective Date. Lessor agrees to accept the Terminated Lands and Terminated Estate notwithstanding any provisions to the contrary contained in the Lease, provided however; that Lessee acknowledges and agrees that any obligations of Lessee existing with respect to the environmental, abandonment or reclamation terms of the Lease as of the Effective Date shall continue to bind Lessee with respect to theTerminated Lands and Terminated Estate unless Lessor otherwise agrees in writing.
b.Lessor hereby agrees to waive that offset obligation set forth in Lessor’s [Insert notice type] dated [Insert appropriate date] in exchange for Lessee surrendering those lands and formations comprising the Terminated Lands and Terminated Estate.
- Miscellaneous:
- Lessor and Lessee shall each do and perform all such acts and things, and execute all such deeds, documents, and writings and give all such assurances as may be necessary to give effect to this Agreement.
- This Agreement shall enure to the benefit of and be binding upon each of the parties hereto and their respective successors and assigns.
- This Agreement shall, in all respects, be subject to, interpreted, construed and enforced in accordance with and under the laws of the Province of Alberta and applicable laws of Canada and shall, in all respects, be treated as a contract made in the Province of Alberta. The parties hereto irrevocably attorn and submit to the exclusive jurisdiction of the courts of the Province of Alberta and courts of appeal therefrom in respect of all matters arising out of or in connection with this Agreement.
- Counterpart Execution
IN WITNESS WHEREOF Lessor and Lessee have executed this Agreement effective as of the Effective Date.
LESSOR: / PrairieSky Royalty Ltd.
Per: ______
Print Name:
Print Title:
LESSEE: / [Insert Other Party]
Per: ______
Print Name:
Print Title:
LESSEE: / [Insert Other Party]
Per:
______
Print Name:
Print Title:
Page 1 of 4
PrairieSky File:
For additionalinformation see Land Compliance at
SCHEDULE "A"
The Lease dated [insert lease date] made between [insert original Lessor per Lease] and [insert original Lessee per Lease] attached hereto as Schedule “A” to the Partial Lease Continuation Agreement dated [insert Agreement date].
Page 1 of 4
PrairieSky File:
For additionalinformation see Land Compliance at