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HomeMy WebLinkAbout08154 ORD - 08/31/19668 -29 -66 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE A POOLING AGREEMENT WITH W. B. DANSFIELL AND COASTAL STATES GAS PRODUCING COMPANY, A COPY OF WHICH AGREE - MENT IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE-CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED AND DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE A POOLING AGREEMENT WITH W. B. DANSFIELL AND COASTAL STATES GAS PRODUCING COMPANY, A COPY OF WHICH AGREEMENT IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THE NECESSITY TO EXECUTE THE AFORESAID POOLING AGREEMENT WITHOUT DELAY CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO,.ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION ` AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEET- INGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST, HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND A 'PZFR ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS THE DAY OF , 1966. ATTEST: � MAYOR CITY SEC E ARC THE CITY OF CORPUS CHRISTI, TEXAS MRAS TO SAL FORM T I DAY OF 666 1966: IfY ATTORNEY 1 POOLING AGREEMENT THE STATE OF TEXAS COUNTY OF NUECES KNOW ALL MEN BY THESE PRESENTS. WHEREAS, on the 29th day of April, 1966, a certain Oil and Gas Lease was made and entered into by and between the City of Corpus Christi, Texas, Lessor, and Coastal States Gas Producing Company, Lessee, covering 18.876 acres of land, more or less, in Nueces County, Texas, which property is fully described in said' lease; said lease being recorded in Volume 235 at Page 282 of the Oil and Gas Records, Nueces County, Texas, and reference being expressly here made to said lease and the record thereof for all purposes (hereinafter referred to as "Lease ")j and I WHEREAS, that tract of'land described as Tract II in the Lease (hereinafter referred to as "Tract II") is included within City Drilling Block 449, and W. B. Dansfiell, as Operator, has drilled and completed a well known as the "W. B. Dansfiell , No. 1 G..W. Hatch Well" in such Drilling Block, which well is cap- able of producing oil from a horizon known as the "Corpus Christi 11,850'foot Field "; and WHEREAS, the Railroad Commission of the State of Texas at a formal conference held on July 14, 1966, adopted and estab- lished field rules for the production of oil from the horizon known as the "Corpus Christi 11,850 foot Field ", which field rules provide for proration units of 80.acres plus a 40 acre tolerance and which field rules allocate production entirely on the basis of acreage; and WHEREAS, the Operator, W. B. Dansfiell, the City's lessee Coastal States Gas Producing Company, and other owners of leasehold interests in the area of the W. B. Dansfiell No. 1 G. W. Hatch Well desire to include Tract II in a 115 acre oil unit around such well, and the City of Corpus Christi is agreeable to such action as•being.in the beat interest of the City; NOW, THEREFORE, for and in consideration of the sum of Ten and No /100 Dollars ($10.00) cash in hand paid, the receipt and sufficiency of which are hereby acknowledged, any- thing in the provisions of the Lease to the contrary notwith- standing, Coastal States Gas Producing Company and W. B. Dansfiell are hereby given the right and power to pool Tract II with other lands to create a unit for the production of oil around the W. B. Dansfiell No. 1 G. W. Hatch Well, which unit shall not contain more than 115 acres of land, and agrees that the royalty hereafter payable to it by virtue of production from the W. B. Dansfiell No. 1 G. W. Hatch Well shall be the same as if the Lease provided for oil units of 115 acres; and! in consideration of the agreements made herein by the City of Corpus Christi, Texas, and in consideration of the sum of Ten and No /100 Dollars ($10.00) and other good and valuable consid- eration to them in hand paid by the City of Corpus Christi, W. B. Dansfiell and Coastal States Gas Producing Company have agreed and do hereby agree that they will include Tract II within a 115 acre oil unit to be formed around the W. B. Dansfiell No. 1 G. W. Hatch Well. It is mutually agreed that production from the W. B. Dansfiell No. 1 G. W. Hatch Well attributed to Tract II will not perpetuate the Lease described above during the pri- mary term thereof or thereafter as to any of the lands cover- ed by said Lease, except Tract II. i -2- It is further mutuall agreed and understood that none of the terms of the Lease are hereby amended or changed except to the extent that they cofiflial with the terms of this agreement and the City of Corpus Christi oes hereby•ratify, adopt and con- firm said Lease. IN EVIDENCE WHEREOF, his instrument is execute¢ this day of 966. CITY OF CORPUS CHRISTI ATTEST: City Secretary APP VE AS TO LEGAL FORM THIS O- A OF A vda IT, 1966: Assl TANT CITY AT EY ATTEST: Secretary By: Herbert W. Whitney City Manager W. B. D SFIELL r� COASTAL STATES GAS PRODUCING COMPANY By:. THE STATE OF TEXAS COUNTY OF NUECES BEFORE ME, the under igned authority, on this day personally appeared HERBERT W. WHITNEY, City Manager of the City of Corpus Christi, Texas, knowr to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the samc for the purposes and considera- tion therein expressed, and in the capacity therein stated and as the act and deed of said City. GIVEN UNDER MY HAND IND SEAL OF OFFICE, this the ;day of . 1966. h3- 9 THE STATE OF TEXAS COUNTY OF NUECES J BEFORE ME, the undersigned authority, on this day personally appeared W. B. DANSF ELL, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowl- edged to me that he executed the same for the purposes and consid- eration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of 1 1966. c, nueces uounry, THE STATE OF TEXAS } !J COUNTY OF NUECES BEFORE ME, the under igned authority, on this day personally appeared the of COASTAL STATES GAS PRODUCINt COMPANY, known to me to be the . person and officer whose name s subscribed to the foregoing in- strument, and acknowledged to ae that the same was the act of the said COASTAL STATES GAS PRODUC NG COMPANY, and that he executed the sane as the act of such co poration for the purposes and con - sideration therein expressed, nd in the capacity therein stated. GIVEN UNDER MY HAND NND SEAL OF OFFICE, this the day of 1966. -4- C., Nueces County, CORPUS CHRISTI,, TEXAS 31 DAY OF 9. TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EM RGENCY CLAUSE OF THE FORE- GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPER TIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIRE ENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DAT7 IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE HEREBY REQUEST THAT YOJ SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDINANCE FINALLf ON THE DATE IT IS INTRO - DUCED, OR AT THE PRESENT MEETING OF THE CITY OUNCIL. THE CHARTER RULE WAS SUSPENDED BY DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DUNNE DR. P. JIMENEZ, KEN MCDANIEL RONNIE SIZEMORE WM. H. WALLACE THE ABOVE ORDINANCE WAS PASSED BY DR. MCIVER FURMAN JACK BLACKMON PATRICK J. DUNNE DR. P. JIMENEZ, J KEN MCDANIEL RONNIE SIZEMORE WM. H. WALLACE Y, CITY OF CORPUS CHRISTI} TEXAS HE FOLLOWING VOTE: v HE FOLLOWING VOTE: L �