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Home My WebLink About14131 ORD - 01/18/1978JKH:hb:1/16/78 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREE- MENT BETWEEN THE CITY OF CORPUS CHRISTI AND WELTON E. COX, FOR THE PURPOSE OF INVESTIGATING, EXPLORING, PROS- PECTING, DRILLING AND MINING FOR AND PRODUCING OIL AND GAS, SUBJECT TO THE LIMITATIONS CONTAINED IN THE SAID LEASE AGREEMENT, BENEATH THE SURFACE OF THOSE TRACTS OR PARCELS OF LAND DESCRIBED AS FOLLOWS: 1) 10.243 acres between Navigation Blvd. and Paxton Street near Highway 44. 2) .91 acres on McBride Lane near UpRiver Road. 3) 1.35 acres by the City sign shop at the intersection of McBride Lane and Leopard, 4) .37 acres at the intersection of UpRiver Road and I.H. 37, AND BEING FOR A PRIMARY TERM OF THREE (3) YEARS, COMMENCING WITH THE DATE OF EXECUTION OF THE SAID OIL AND GAS LEASE, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO, MARKED EXHIBIT "A ", 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 to execute an Oil and Gas Lease between the City of Corpus Christi, as Lessor, and Welton E. Cox, as Lessee, for the purpose of investigating, exploring, prospecting, drilling, mining and operating for and producing oil and gas, subject to the limitations contained in said Lease Agreement, beneath the surface of that tract or parcel of land described as follows: 1) 10.243 acres between Navigation Blvd. and Paxton Street near Highway 44. 2) .91 acres on McBride Lane near UpRiver Road, 3) 1.35 acres by the City sign shop at the intersection of McBride Lane and Leopard. 4) .37 acres at the intersection of UpRiver Road and I.H. 37, said lease being for a primary term of three (3) years, on the basis of a cash bonus of $650.00 and the royalty of 3 /16ths, commencing with the date of execution of the said Oil and Gas Lease, all as more fully set forth in the said Lease, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A ". MICROFILMED j4131 JUL 0 71120 • • SECTION 2. The necessity to execute a Lease Agreement as here- inabove described 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 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 or resolution be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the J $i-'day of January, 1978. ATTEST: City Secretary APPROVED: DAY OF JANUARY, 1978: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City ney MAYOR THE CITY OF CORPUS CHRISTI, TEXAS This ordnance is in effect and `once with or without the signature of the Mayor, in 6accordance with Article II Section 6 of the City Charter. • OIL AND GAS LEASE THE STATE OF TEXAS x COUNTY OF NUECES x • DESCRIPTION: 1. 10.243 acres of land, more or less, between Navigation Blvd. and Paxton St., being described as follows: 5.243 acres, more or less, out of the SW corner of the J. C. Russell Farm Blocks as recorded in Vol. 3, Page 53, of the Map Records of Nueces County, Texas and same land being described in deed number 200100 from Clara Driscoll, et al, to City of Corpus Christi in Vol. 303, page 312 of the Deed Records of Nueces County, Texas, dated September 27, 1944; and 5.00 acres, more or less, as described in Quitclaim Deed in Vol. 403, page 135 of the Deed Records of Nueces County, Texas, dated July 8, 1948. 2. .91 acres of land, more or less, as described in Vol. 873, page 140, of the Deed Records of Nueces County, Texas, dated November 25, 1959. Said land being a portion of a 5.8 acre tract, known as the Kaler Tract, lying West of the City of Corpus Christi, Texas, out of the original grant to Enrique Villareal and being also a portion of the Ehler 21.78 acre tract. 3. 1.35 acres of land, more or less, out of the Westside Industrial Area, Lot 28, Block 4 described in Vol. 272, page 324 of the Deed Records of Nueces County, Texas. 4. Lots 31, 32, and 33, Block 1, Vancura Addition, as recorded in the Map Records of Nueces County, Texas in Volume 10, page 47. Said land in Deed Records of Nueces County, Texas in Volume 958, page 391, Lillian Vancura, et al to the City of Corpus Christi dated April 6, 1962 SAVE AND EXCEPT portion of land as recorded in Volume 944, page 383, Deed Records of Nueces County, Texas, Lillian Vancura, et al to State of Texas. THIS AGREEMENT made this _11th day of January , 1978, between the CITY OF CORPUS CHRISTI, TEXAS, Lessor, and Welton E. Cox Lessee. W I T N E S S E T H: 1. Lessor, in consideration of Six Hundred Fifty Dollars Dollars ($650.00 - - -) (There shall be a Cash Bonus Minimum of $50.00 per acre and a $10.00 per acre annual delay rental for a three 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 termina- tion 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.. • i 3. The royalties to be paid Lessor are (a) on oil, or oil well gas from a well defined by Texas Railroad Commission as an oil well, no less than three - sixteenths of eight eighths (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 pipeline to which the wells may be connected; (b) on gas, oil, or other sub- stance from a well defined by the Texas Railroad Commission as a gas well, pro- duced 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. Where gas from a well producing gas only is not sold or used, Lessee may, for a maximum of two (2) years beyond the primary term, pay as royalty five dollars ($5.00) per acre, per year, and upon such payment it will be considered that gas is being produced within the meaning of Paragraph 2 hereof for such period, not exceeding two (2) years beyond the primary term. 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 contiguous 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 i created shall exceed 320 acres plus a tolerance of ten percent (107) in area and no unit for oil shall exceed 40 acres in area. If production is found on the pooled acreage, it shall be treated as if production is had from the pooled lands out of this lease whether the well or wells be located on the premises covered by this lease or not. In lieu of the royalties elsewhere herein specified, Lessor shall receive on production from a unit so pooled only such portion of the royalty interest therein bears to the total acreage so pooled in the particular unit involved, but in no event less than one hundred and no /100 dollars ($100.00) in any one year. Any non - unitized acreage may be held for the balance of the primary term by the payment of $10.00 per acre delay rental. 5. 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 mar term ri oil as or other P y r , g 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. 6. 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. 7. 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 royalties to be paid Lessor shall be reduced proportionately. 8. 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 notwithstanding. IN WITNESS WHEREOF, this instrument is executed in duplicate on the date first above written. CITY OF CORPUS CHRISTI BY: R. Marvin Townsend City Manager LESSOR ATTEST: City Secr tary Director of FindWe APPROVED AS TO LEGAL FORM: day of 1977. IT.— RTICTAYCOCK, CITY ATTORNE By: BY: sus nt ity ttorney LESSEE Director of Finance THE STATE OF TEXAS X COUNTY OF NUECES X 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 HAND AND SEAL OF OFFICE, this the day of 1977. Notary Public, Nueces County, Texas .... . ... .. ...... ? M At Ut. In All . s. rI, IMMS7 C= 0 -A CABA NISS FIELD Corpus Christi, Texas I &day o, 19—IL— TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, WYYOR THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspended by the following vote: Jason Luby Eduardo de Ases_ David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. f Edward L. Sample The above ordinance was passed by the following vote: 141-.3_ Jason Luby W,JF Eduardo de Ases David Diaz__ Ruth Gill__ Bob Gulley Gabe Lozano, Sr. Edward L. Sample 141-.3_