Loading...
HomeMy WebLinkAbout13170 ORD - 05/05/19760 JKH:vmr:5- 5- 76;lst AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECDTE A LEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND KELLY BELL FOR THE PURPOSE OF INVESTIGATING, EX- PLORING PROSPECTING, DRILLING AND MINING FOR AND PRO- DUCING OIL AND GAS BENEATH THE SURFACE OF THOSE TRACTS OR PARCELS OF LAND DESCRIBED AS BEING A PART OF BLOCKS 3 AND 8 OF THE WESTGATE HEIGHTS SUBDIVISION, AND A PART OF BLOCK 3 OF THE HIGHLAND ESTATES ADDITION, MORE FULLY DESCRIBED HEREINAFTER, AND BEING FOR A PRIMARY TERM OF ONE (1) YEAR, COMMENCING WITH THE DATE OF EXECUTION OF THE SAID OIL AND GAS LEASE, A COPY OF WHICH 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, 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 an Oil and Gas Lease between the City of Corpus Christi, as Lessor, and Kelly Bell, as Lessee, for the purpose of investigating, exploring, prospecting, drilling, mining and operating for and producing gas and gaseous substances beneath the surface of those tracts or parcels of land, being City parcels in the Westgate Heights Subdivision and Highland Estates Addition, described as follows: TRACT ONE Park being part of Blocks 3 and 8 of the Westgate Heights Subdivision as shown on Map thereof recorded in Volume 8, Page 25 of the Map Records of Nueces County, Texas, and TRACT TWO Being part of Block 3 of the Highland Estates Addition, being part of a Subdivision of the Barr- Keeler.tract as shown on map thereof recorded in Volume 4, Page 24 of the Map Records of Nueces County, Texas. The above two (2) tracts of land contain in the aggregate a total of 2.10706 acres. said lease being for a primary term of one (1) year, on the basis of a cash bonus of $100 for total acreage and the royalty of 3/16, commencing with the date of execution of the said 011 and Gas Lease, all as more fully set forth in the lease, a copy of which is attached hereto and made a part hereof, marked Exhibit "A ". SECTION 2. The necessity to authorize the execution of the afore- said Oil and Gas Lease in order that proposed operations on the parcel or tract of land described hereinabove may be commenced without delay creates a public emergency 1.31- 70 0 and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, and having requested the suspension of the Charter rule and that this ordinance take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the day of May, 1976. ATTEST- 'City Secretary MAYOR THE CITY OF CORPUS CHRISTI, TEXAS APP$gVED: _DAY OF MAY, 1976 J. BRUCE AYCOCK, CITY ATTORNEY By Assistant M Attorney • OIL AND GAS LEASE THE STATE OF TEXAS X COUNTY OF NUECES X • DESCRIPTION: Tract One (1): Park- Being part of Blocks 3 and 8 of the Westgate Heights Sub- division as shown on Map thereof recorded in Volume 8, Page 25 of the Map Records of Nueces County, Texas, and, Tract Two (2): Being part of Block 3 of the Highland Estates Addition, being part of a subdivision of the Barr - Keeler tract as shown on map thereof recorded in Volume 4, Page 24 of the Map Records of Nueces County, Texas. The above two (2) tracts of land contain in the aggregate a total of 2.10706 acres. THIS AGREEMENT made this day of , 1976, between the CITY OF CORPUS CHRISTI, TEXAS, Lessor, and KELLY BELL , Lessee, W I T N E S S E T H 1. Lessor, in consideration of Dollars ($ ) (There shall be a Cash Bonus Minimum of $100.00 for total acreage for a one -year primary term, from this date) in cash in hand paid and other good and valuable consideration of the royalties herein provided, and the agreements of Lessee herein contained, hereby GRANT, LEASES and LETS exclusively unto Lessee the above described land for the purpose of investigating, exploring, prospecting, drilling and mining for and producing oil and gas, subject to the limitations contained herein. 2. Subject to other provisions, this lease shall expire at the termination of the primary term unless (a) drilling operations and subsequent oil and /or gas production has commenced on this lease or (b) provided for in paragraph 4 hereunder. Drilling operations meaning the actual drilling into the surface and /or in this case actual reentry operations into a formerly plugged and abandoned well. 3. The royalties to be paid Lessor are (a) an oil, or oil well gas from a well defined by Texas Railroad Commission as an oil well, no less than three - sixteenths of eight - eights (3 /16ths of 8 /8ths) of that produced and saved from said land, the same to be delivered at the wells or to the credit of Lessor into the piepline to which the wells may be connected; (b) on gas, oil, or other substance from a well defined by the Texas Railroad Commission as a gas well, produced from said land and sold or used off the premises, the market value at the well of no less than three - sixteenths of eight- eighths (3 /16ths of 8 /8ths) of the gas or oil so sold or used. 4. Lessee is hereby given the right and power to pool or combine the land covered by this lease or any portion thereof for gas or oil with any other land, lease or leases located adjacent to or continguous with, when in Lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said premises, and upon notifying Lessor, provided that no unit for gas so created shall exceed 320 acres plus a tolerance of ten percent (10 %) in area and no unit for oil shall exceed 40 acres plus a tolerance of ten percent (10%) in area. If production is found on the pooled acreage, it shall be treated as if production is had from this lease but only as to lands covered hereby and included in any pooled unit or units. In lieu of the royalties elsewhere herein specified, Lessor shall receive on production from a unit so pooled only such portion of the royalty stipulated herein as the amount of hip acreage placed in the unit of his royalty interest therein bears to the total acreage so pooled in the particular unit involved. It is distinctly provided that should Lessee pool or unitize say of the land covered by this lease for the production of gas, or gas substances, Lessee shall include all of the land covered by this lease. 5. Lessee is prohibited from conducting any operations of any kind or nature whatsoever on, over or across the leased premises. 6. If prior to discovery of oil or gas on said land Lessee should drill a dry hole or holes on lands pooled herewith or if after discovery of oil or gas the production thereof should cease from any cause, this lease shall not terminate if Lessee commences additional drilling or reworking operations within sixty (60) days thereafter. If at the expiration of the primary term, oil, gas or other mineral is not being produced on lands pooled herewith but Lessee is then engaged in drilling or reworking operations therein, the lease shall remain in force sixty (60) consecutive days, and if they result in the production of oil or gas so long thereafter as oil or gas is produced from said land. In the event a well or wells producing oil or gas in paying quantities should be brought in on adjacent land not pooled with the lands covered by this lease and within 467 feet or draining the leased premises, Lessee agrees to drill such offset wells as a reasonable prudent operator would drill under the same or similar circumstances; provided, however, that should Lessee be unable to obtain a surface location on other lands leased herein, then Lessee shall be excused from any and all liability or obligation to drill such offset well, provided that within thirty (30) days thereafter Lessee seeks and obtains the written permission from the owners of the surface of the lands leased herein for the purpose of drilling and producing such well. 7. The right of either party hereunder may be assigned in whole or in part and the provisions hereof shall extend to the heirs, successors and assigns, but no change or divisions in ownership of the land or royalties, however accomplished, shall operate to enlarge the obligation or diminish the rights of Lessee. No sale or assignment by Lessor shall be binding on Lessee until Lessee shall be furnished with a certified copy of recorded instrument evidencing same. If six or more parties become entitled to royalty hereunder, Lessee may withhold payment thereof unless and until furnished with a recordable instrument executed by all such parties designating an agent to receive payment for all. 8. Lessor hereby warrants and agrees to defend the title to said land and agrees that Lessee at its option may discharge any tax, mortgage or other lien upon said land and in event Lessee does so, it shall be subrogated to such lien with the right to enforce same and apply royalties accruing hereunder toward satisfying same. Without impairment of Lessee's rights under the warranty in event of failure of title, it is agreed that if Lessor owns an interest in said land less than the entire fee simple estate, then the rI royalties to be paid Lessor shall be reduced proportionately. 9. Should Lessee be prevented from complying with any express or implied covenant of this lease, from conducting drilling or reworking operations thereon or from producing oil or gas therefrom by reason of strike, by operation of force majeure or by any Federal or State law or any order, rule or regulation of governmental authority, then while so prevented through no fault of Lessee, Lessee's obligation to comply with such covenant shall be suspended, and Lessee shall not be liable in damages for failure to comply therewith; and this lease shall be extended while and so long as Lessee is prevented by any such cause from conducting drilling or reworking operations on or from producing oil or gas from the leased premises and the time while Lessee is so prevented shall not be counted against Lessee, anything in this lease to the contrary nothwithstanding. • IN WITNESS WHEREOF, ti-lis instrument is executed in duplicate on the date first above written. ATTEST: City Secretary APPROVED AS TO LEGAL FORM: day of 1976. City Attorney THE STATE OF TEXAS X COUNTY OF NUECES X CITY OF CORPUS CHRISTI BY: R. Marvin Townsend City Manager LESSOR BY: KELLY BELL LESSEE BEFORE ME, the undersigned authority, on this day personally appeared R. MARVIN TOWNSEND, City Manager of the City of Corpus Christi, Texas, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, and in the capacity therein stated and as the act and deed of said City. GIVEN UNDER MY BAND AND SEAL OF OFFICE, this the day'of 1976. Notary Public, Nueces County, Texas CORPUS CHRISTI TEXAS 1� DAY of 197 TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCES A PUBLIC EMERGENCY AND INPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL SE PASSED FINALLY ON THE DATE IT IS INTRODUCED AND TNAT SUCH ORDINANCE OR RESOLUTION SMALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR gEQU IRENENT AND PASS TMIS ORDI- NANCE FINALLY ON THE DATE IT IS INTROOUCED� OR AT THE PRESENT MEETING OF ,THE CITY COUNCIL. RESPECTFULLY R aa-- THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE F LOVING VOTE: JASON LUST OR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLET GABE LOZANO, SR. EDWARD L. SAMPLE THE ABOVE ORDINANCE WAS PASSED BY JASON LUBY OR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE 3F