HomeMy WebLinkAbout14453 ORD - 08/16/1978TEXAS:
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE
AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND
HAROLD KAFFIE FOR THE EXPLORATION OF THE MINERALS,
SUBJECT TO THE LIMITATIONS CONTAINED IN SAID LEASE
AGREEMENT, BENEATH THE SURFACE OF THAT TRACT OF LAND
DESCRIBED AS THE M. M. GABRIEL 13.47 -ACRE TRACT ON THE
CORPUS CHRISTI INTERNATIONAL AIRPORT, AND BEING FOR
A PRIMARY TERM OF THREE (3) YEARS, A SUBSTANTIAL
COPY OF WHICH LEASE AGREEMENT 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 the City Manager be and he is hereby authorized
to execute a Lease Agreement between the City of Corpus Christi and Harold
Kaffie for the exploration of the minerals, subject to the limitations
contained in said Lease Agreement, beneath the surface of that tract of
land described as the M. M. Gabriel 13.47 -acre tract on the Corpus Christi
International Airport, more particularly described as follows:
A tract or parcel of land in Nueces County, Texas, and being out of Tract
No.,10'of the Margaret Kelly Subdivision, as shown by the map of said Sub -
division recorded in- Volume 8, page 40, Map Records of Nueces County, Texas,
and being particularly described by metes and bounds as follows:
Beginning at the Northeast corner of said tract no. 10, said 'point being at
the intersection of Kosar Road and Farm -to- Market Road #763 and also being
in the South line of Farm Block #23 of the J. C. Russell Farm Blocks;
Thence S 00 25' 50" W along the East line of said tract no. 10 and the center
line of Farm -to- Market Road #763 a distance of 1181.76' to a point for corner;
Thence N 430 11' 10" W a distance of 1632.32' to a point in the North line of
said tract no. 10 and in the center line of Kosar Road;
Thence E along the North line of said tract no. 10 at 1088.32' pass the
Northeast corner of Section #5, Range V of the H. L. Kinney Sectionized Land;
Thence S 890 35' 20" E along the North line of tract no. 10 a distance of
37.70' to the place of beginning, and containing 15.274 acres of land less
a strip of land 40' wide off of the entire East side deeded by J. A. Kosar to
the County of Nueces on July 5, 1941, and recorded in Volume 308, page 632 of
the Deed Records of Nueces County, Texas and less also a strip of land 30'
wide off of the North side deeded to Nueces County March 23, 1953, and recorded
in Volume 601, page 435 of the Deed Records of Nueces County, Texas, leaving
net acreage, herein conveyed, of 13.470 acres of land.
said lease being for a primary term of three (3) years, on the basis of
a cash bonus of Two Hundred Ten Dollars ($210) per acre, commencing
with the date of execution of the said Lease Agreement, all as more fully
set forth in the said Lease Agreement, a substantial copy of which is
attached hereto and made a part hereof, marked Exhibit "A ".
MICROFILM'
14455 "JUL 0 8 19s0
SECTION 2. The necessity to execute a Lease Agreement as herein -
above described creates a public emergency and an imperative public necessity
requiring the suspension of the Charter rule that no ordinance or resolu-
tion 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_Zk day of August,
1978.
ATTEST:
'City-Secretary
APPROVED:
16th DAY OF AUGUST, 1978:
J. BRUCE AYCOCK, CITY ATTORNEY
By 41 �&& �- —
Assistant Ci W51torney
A��
MAYOR
CORPUS CHRISTI, TEXAS
OIL AND GAS LEASE
THE STATE OF TEXAS X
COUNTY OF NUECES X
DESCRIPTION:
A tract or parcel of land in Nueces County, Texas, and being out of Tract
No. 10 of the Margaret Kelly Subdivision, as shown by the map of said Sub-
division recorded in Volume 8, page 40, Map Records of Nueces County, Texas,
and being particularly described by metes and bounds as follows:
Beginning at the Northeast corner of said tract no. 10, said point being at
the intersection of Kosar Road and Farm -to- Market Road #763 and also being
in the South line of Farm Block #23 of the J. C. Russell Farm Blocks;
Thence S 00 25' 50" W along the East line of said tract no. 10 and the center
line of Farm -to- Market Road #763 a distance of 1181.76' to a point for corner;
Thence N 430 11' 10" W a distance of 1632.32' to a point in the North line of
said tract no. 10 and in the center line of Kosar Road;
Thence E along the North line of said tract no. 10 at 1088.32' pass the
Northeast corner of Section #5, Range V of the H. L. Kinney Sectionized Land;
Thence S 890 35' 20" E along the North line of tract no. 10 a distance of
37.70' to the place of beginning, and containing 15.274 acres of land less
a strip of land 40' wide off of the entire East side deeded by J. A. Kosar to
the County of Nueces on July 5, 1941, and recorded in Volume 308, page 632 of
the Deed Records of Nueces County, Texas and less also a strip of land 30'
wide off of the North side deeded to Nueces County March 23, 1953, and recorded
in Volume 601, page 435 of the Deed Records of Nueces County, Texas, leaving
net acreage, herein conveyed, of 13.470 acres of land.
THIS AGREEMENT made this 16th day of August, 1978, between the City of
Corpus Christi, Texas, Lessor, and Harold Kaffie, Lessee.
W I T N E S S E T H:
1. Lessor, in consideration of Two Thousand Eight Hundred Twenty-
Eight and 70/100 Dollars ($2,828.70) (There shall be a Cash Bonus Minimum of
1
$50.00 per acre and $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 consider-
ation 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
+ i
from a well defined by Texas Railroad Commission as an-oil well, twenty -two and
one -half percent (22.5 %) 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 twenty -two and
one -half percent (22.5 %) of the gas or oil-so sold or used. Lessor reserves the
right, at his option, to at any time take his twenty -two and one -half percent
(22.5 %) of the gas well gas, and associated liquids, in kind, all delivered at
the wellhead. For (a) and (b) above, there shall be a minimum annual royalty of
ten dollars ($10.00) per acre. 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 ten dollars ($10.00) 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 unitize 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 360 acres in size. If production is found
on the pooled acreage, it shall be treated as if production is had from this
lease, as to the land so pooled, 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 stipulated herein as the amount of his acreage placed in
the unit or his royalty interest bherein bears to the total acreage so pooled in
the particular unit involved, but in no event less than ten dollars ($10.00) per
net acre in any one year. Any non - unitized minerals will expire at the end of
the primary term, but they may be held for the balance of the primary term by
the payment of ten dollars ($10.00) per acre delay rental.
5. If prior to discovery of oil or gas on said land Lessee shall drill
a dry hole or holes on lands pooled herewith, or if after discovery of oil or gas
N
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 of or draining
the leased premises, Lessee agrees to drill such offset wells as a reasonably
prudent operator would drill under the 'same or similar circumstances.
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.
9. There shall be no drilling in violation of Federal Aviation Administration
Regulations or Corpus Christi Airport Zoning Regulations.
10. Lessee shall provide compensation for damage to surface, crops and
improvements which may be caused by mineral exploration or operations.
11. Upon expiration or termination of this lease, or portion thereof,
Lessee shall provide Lessor a written release of all Lessees rights or interest in
the minerals so expiring or terminating.
12. Lessee is prohibited from drilling on or any access to the surface of the
above described land.
ATTEST: CITY OF CORPUS CHRISTI
City Secretary
APPROVED:
day of ,1978
City Attorney
THE STATE OF TEXAS X
COUNTY OF NUECES
By
R. Marvin Townsend LESSOR
City Manager
By
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
acknowledge 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
Nueces County, Texas
Corpus Christi, Te s
_day of 19 71
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,
The above ordinance was passed
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
14453
OF CHRISTI, TEXAS
lowing vote:
THE
The Charter rule Was suspended
bby
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
I
The above ordinance was passed
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
14453
OF CHRISTI, TEXAS
lowing vote: