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HomeMy WebLinkAbout14200 ORD - 03/01/1978• JKH:hb:2 /27/78 • AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND DR. ROBERT H. BALME FOR THE PURPOSE OF INVESTIGATING, EXPLORING, PROSPECTING, DRILLING, AND MINING FOR AND PRODUCING OIL AND GAS, SUBJECT TO THE LIMITATIONS CONTAINED IN SAID LEASE AGREE- MENT, BENEATH THE SURFACE OF THAT TRACT OR PARCEL OF LAND DESCRIBED AS A FIVE -ACRE TRACT ON UP RIVER ROAD NEAR NAVIGATION BOULEVARD, 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 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, 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 Dr. Robert H. Balme, 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: Beginning at the S.W. corner of the Corpus Christi Country Club on what is known as Up River Road for the S.E. corner and place of beginning; Thence with the N. line of said road N. 59° 51 min. W. a dis- tance of 191.7 ft. to an iron pin for the S.W. corner; Thence N. 7° 0 min. W. a distance of 662.2 ft. to an iron bar for the N.W. corner of this tract. Thence N. 830 0 min. E. a distance of 300 ft. to an iron pin, intersecting the west line of the Corpus Christi Country Club for the N.E. corner of this tract; Thence with the west line of said Country Club S. 70 0 min. E. a distance of 817.2 ft. to the place of beginning, said lease being for a primary term of three (3) years, on the basis of a cash bonus of $750 and the royalty of 1/5 of 5 /5ths, 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 ". SECTION 2. The necessity to execute a Lease Agreement as here - inabove described creates a public emergency and an imperative public necessity MICROFILMED "JUL 0 7 WO 142[,x() 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 March, 1978. ATTEST: C ary � MAYOR T CITY RPUS CHRISTI, TEXAS APPROVED: DAY OF 1978: J. BRU,CEEAAYCOCK, CITY ATTORNEY By yl.- c Assistant C' ttorney • OIL AND GAS LEASE THE STATE OF TEXAS COUNTY OF NUECES DESCRIPTION: Beginning at the S.W. corner of the Corpus Christi Country Club on what is known as Up River Road for the SE corner and Place of Beginning; Thence with the N. line of said road N. 590 51 min. W. a distance of 191.7 ft. to an iron pin for the SW corner; Thence N. 70 0 min. W. a distance of 662.2 ft. to an iron bar for the NW corner of this tract; Thence N. 83° 0 min. E a distance of 300 ft. to an Tiron pin, intersecting the west line of the Corpus Christi Country Club for the NE corner of this tract; Thence with the west line of said Country Club S. 7 min. E. a distance of 817.2 ft. to the Place of Beginning, as more particularly described in deed of record appearing in Volume 238, page 148, Nueces County Deed Records, dated March 11, 1937. THIS AGREEMENT made this day of . 1978, between the CITY OF CORPUS CHRISTI, TEXAS, Lessor, and Robert H. Balme, M.D. Lessee. W I T N E S S E T H : 1. Lessor, in consideration of Seven Hundred Fifty Dollars ($750.00) (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 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 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 one -fifth of five- fifths (1 /5th of 5 /5ths) 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 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 one -fifth of five - fifths (1 /5th of 5 /5ths) 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 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. 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 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. 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 regu- lation 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 on the date first above written. ATTEST: CITY OF CORPUS CHRISTI City Secretary APPROVED: DAY OF 1978: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney THE STATE OF TEXAS COUNTY OF NUECES By R. Marvin Townsend, City Manager LESSOR Robert H. Ba me, 14.0. 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 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 theL day of 1978. Notary PubTic in and for Nueces County, Texas 4 THE STATE OF TEXAS COUNTY OF NUECES BEFORE ME, the undersigned authority, on this day personally appeared ROBERT H. BALME, M. D., 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of , 1978. Notary Public in and for Nueces County,. Texas 5 Corpus Christi, Tas.... ay of . 19—Z 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 TH CITY. RPUS CHRISTI, TEXAS The Charter Rule was suspended by he following vote: Gabe Lozano, Sr. Bob Gulley David Diaz Ruth Gill Joe Holt Tony Juarez, Jr. Edward L. Sample The above ordinance was passed Gabe Lozano, Sr. Bob Gulley David Diaz Ruth Gill Joe Holt Tony Juarez, Jr. Edward L. Sample te: