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Home My WebLink About14153 ORD - 02/01/1978TEXAS: AN ORDINANCE AUTHORIZING EXECUTION OF AN OIL AND GAS LEASE WITH KELLY BELL, INC., OF CORPUS CHRISTI, FOR A .724 -ACRE TRACT OWNED BY THE CITY UNDER THE LEOPARD STREET FIRE STATION AT NUECES BAY BOULEVARD, ALL AS MORE FULLY DESCRIBED IN THE LEASE, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A "; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, SECTION 1. That authorization is hereby given for execution of an oil and gas lease with .Kelly Bell, Inc., of Corpus Christi, for a .724- acre tract owned by the City under the Leopard Street Fire Station at Nueces Bay Boulevard, more particularly described as follows: All those certain tracts of land containing 0.724 acres of land, more or less, being Lots 6 to 8, inclusive, Block 6, Barthlome Addition as described in Warranty Deed dated August 14, 1942, and recorded in Volume 282, pages 355, et. seq., and Lots 9 and 10, Block 6, Barthlome Addition and as described in Warranty Deed dated January, 27, 1944, and recorded fn Volume 296, pages 247, et.seq., of the Deed Records of Nueces County, Texas, the terms and conditions of said oil and gas lease being more particularly described in the said lease, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A ". SECTION 2.` The necessity to authorize execution of the aforesaid oil and gas lease at the earliest practicable date 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 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,14&_day of February, 1978. ATTEST: City Secretary MAYOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: February 1, 1978 J. BRUCE AYCOC CITY ATTORNEY VL�IICROFILMED By JUL 0 71980 Assistant Zrttorney 541 OIL AND GAS LEASE THE STATE OF TEXAS COUNTY OF NUECES DESCRIPTION: 1. Leopard Street Fire Station. All those certain tracts of land con- taining 0.724 acres of land, more or less, being Lots 6 to 8 inclu- sive, Block 6, Barthlome Addition as described in Warranty Deed dated August 14, 1942, and recorded in Volume 282, Pages 355, et. seq., and Lots 9 and 10. Block 6, Barthlome Addition and as des- cribed in Warranty Deed dated January 27, 1944, and recorded in Volume 296, Pages 247, et. seq., of the Deed Records of Nueces County, Texas. THIS AGREEMENT made retroactive to the 1st day of April, 1976, between the CITY OF CORPUS CHRISTI, TEXAS, Lessor, and KELLY BELL, INC., Lessee. WITN- ESSETH: 1. Lessor, in consideration of Three Hundred Sixty -Two and No /100 Dollars ($362.00) (there shall be a Cash Bonus Minimum of $500.00 per acre for a one year lease) in cash in hand paid and other good and valuable consideration of the royalties herein provided and the agreements of Lessee herein contained, hereby GRANTS, LEASES, and LETS exclusively unto Lessee the above described land for the purpose of investigating, exploring, pros- pecting, drilling and mining for and producing oil and gas, subject to the Timitations contained herein. 2. Subject to other provisions, this lease shall expire at the termination of the primary term unless (a) drilling operations and subse- quent 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 actual reentry operations into a formerly plugged and abandoned well. 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 I• 0 or to the credit of Lessor into the pipeline 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 .o -11 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 created shall exceed 320 acres plus a tolerance of ten percent (10 %) 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. 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 ex- piration 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. -2- • • 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 n.or. diminish. the rights .ofAessie%.. 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 warrant 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. -3- • IN WITNESS WHEREOF, this instrument is executed in duplicate originals as of the date first above written. ATTEST: CITY OF CORPUS CHRISTI _._ City Secretary. BY, -R. Marvin-Townsend City Manager APPROVED: LESSOR DAY OF ,1978: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney Director of Finance ATTEST: KELLY BELL, INC. By. LESSEE THE STATE OF TEXAS I COUNTY OF NUECES I 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 fore- going 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 , 1978. Notary Public In and for Nueces County, Texas THE STATE OF TEXAS p COUNTY OF NUECES BEFORE ME, the undersigned authority, on this day personally appeared , of KELLY BELL, INC., known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said KELLY BELL, INC., a corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of , 1978. Notary Pulbic in and for Nueces County, Texas Corpus Christi, Texas Igtday of , 19_ 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, MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The Charter Rule was suspended by the following vote: Jason Luby Gabe Lozano, Sr. David Diaz Ruth Gill Bob Gulley a., Edward L. Sample The above ordinance was passed by th following vote: Jason Luby Gabe Lozano, Sr. David Diaz Ruth Gill Bob Gulley Edward L. 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