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Home My WebLink About14649 ORD - 12/13/1978UDA; j RII . 1 G- If -1 6; 1 bL r� AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE DIVISION ORDERS FOR ANY OIL AND GAS LEASES HERETOFORE AP- PROVED BY ORDINANCE WHERE SUCH DIVISION ORDERS MAY BE REQUIRED AS WELL AS FOR ANY SUCH LEASE AS MAY BE APPROVED IN THE FUTURE, SUBSTANTIALLY FOLLOWING SAMPLE DIVISION ORDER ATTACHED HERETO AS 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 Division Orders for any oil and gas leases heretofore approved by ordinance where such Division Orders may be required, as well as for any such leases as may be approved in the future, by ordinance. Such Division Orders should substantially follow the sample Division Order attached as Exhibit "A ". SECTION 2. The necessity to authorize execution of Division Orders as hereinabove set forth creates a public emergency and an imperative Public necessity requiring the suspension of the Charter rule that no ordi- nance 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, 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 "R., of December, 1978. ATTEST: City Secretary MAYOR APPROVED: THE ITY OF ORP CHRISTI, TEXAS DAY OF DECEMBER, 1978: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant i Attorney 11CR0FIL M E D ja 0 81980 14649 OIL AND GAS DIVISION ORDER LEASE N0. Effective 7 a.m., 19_ TO: Each of the undersigned hereby warrants that he is the owner of the interest set out opposite his name in the oil produced from and in the proceeds of the gas sold from or used off the lease or unit known as which lease or unit covers and includes the land described as follows, to wit: located in the County of Nueces, State of Texas, hereinafter referred to as "property ", as follows: SOCIAL SECURITY CREDIT TO DIVISION OF INTEREST OR TAX ACCOUNT NO. EXHIBIT "A" Until further written notice you are authorized, for your own account, to receive such oil into your possession or the possession of any person or corporation designated by you, the oil so received to be run and measured in accordance with customary pipe line rules and regulations including those of the governmental agency having recognized juris- diction over or control of the production and handling of crude oil in such area. You or your nominee will receive only oil which, in your exclusive opinion or that of your nominee, is merchantable and you may require well owners to treat or steam any unmerchant- able oil at well owners' expense, before acceptance hereunder. The oil run hereunder shall, on the terms herein stated, become your property immediately upon being received into your possession or the possession of your designated nominee; and you agree to receive the oil run hereunder and, subject to the further pro- visions hereof, to pay the respective owners therefor according to the division of interest herein indicated, either at your posted per barrel (42 gallons) field price for similar crude prevailing for the field where produced on the date of each respective run, or, if the oil is purchased by a nominee, the price to be paid shall be the same price received from such nominee, or if you do not post'a price for such oil, the price to be paid shall be an agreed price, and all prices are subject to deduction of applicable costs of gather- ing, transporting, and making merchantable the oil sold hereunder, and the applicable transportation, production, and other taxes thereon, settlements and payments to be made monthly by your check or draft mailed to the respective persons interested to the addresses given herein, provided, however, that you may, at your option, hold without interest, and remit annually for the aggregate of twelve months' accumulation of monthly accruals of amounts less than $5.00. In making settlements for the interest of the undersigned in the proceeds from the sale of gas, you are authorized to use the market value at the wells for the gas sold or used off the property or the net proceeds received by you at the wells when the gas is sold at the wells. You are authorized to make a fair and reasonable charge for gathering and making merchantable the undersigned's share in the gas sold off the property, said charge to be shown as a proper deduction from the gross amount to determine the market value at the well currently payable as royalty. Each of the undersigned hereby (1) warrants and guarantees the title to the oil and the interests in net proceeds from sale of gas sold, or used off the property, credited to him according to the division of interest herein indicated as well as all interests in production of oil from and all interests in the proceeds from the sale of gas sold, or used off said property, hereafter acquired by him, (2) agrees to furnish abstracts or other evidence of title satisfactory to you at any time upon demand, and (3) in case of an adverse claim or claims to the oil run to his credit, or his interest in the net pro- ceeds from the sale of the gas sold, or used off the property, or any part thereof, or to the property from which the oil run to his credit, or the gas sold, or used off the property, is produced, agrees to furnish indemnity satisfactory to you against all adverse claims, and hereby authorizes you to retain all proceeds accruing to the undersigned without any obligation to pay interest on the amount so withheld until the required indem- nity shall have been furnished or until the dispute as to the ownership of the production involved is settled. is hereby relieved of any responsibility for determining when any of the interests herein set forth shall revert to other parties as a result of the completion or discharge of money or other payments from said interests. It is understood that any vendee or assignee of any interest in said property or the production thereof, shall take subject to the terms hereof and you shall not be bound by any sale or assignment of any interest in said property, or the production of oil therefrom or the proceeds from the sale of gas sold or used off the property, until written notice thereof shall be furnished you in the form of the original or a certified copy of the instrument by which said sale or assignment was made. Any change of interest hereunder shall be made subject to this division order and shall be effective at 7:00 o'clock A.M. on the first day of the calendar month following such notice. The word "OIL" as used herein is hereby declared to include all liquid hydrocarbons purchased hereunder, and the word "GAS" as used herein is hereby declared to include all gaseous substances including oil well gas (casinghead gas) purchased hereunder. The undersigned hereby expressly ratify and confirm the division of interest as herein set forth, as well as the oil, gas and mineral lease or leases, pursuant to which oil and gas from the property is being produced and sold, any amendments and supplements to such lease or leases including any designations, declarations or agreements creating the unit including the above described property, if such be the case. -2- The provisions hereof shall be binding upon and inure to the benefit of all parties who execute this instrument, their heirs, successors, and assigns, whether or not all owners listed above execute same, and no subsequent change of ownership from that set out above, however accomplished, shall have any effect to change the binding force of the agreements herein made with reference to said lease or leases or the said instrument creating said unit, as the case may be. A counterpart hereof may be executed by any party or parties, and all counterparts so executed shall be considered as one original instrument. This division order is dated and signed as of the date shown above and shall be effective as to each of the undersigned as of said date. WITNESSES: OWNERS: (Two for each owner) ATTEST: CITY OF CORPUS CHRISTI By City Secretary City Manager APPROVED AS TO LEGAL FORM THIS DAY OF 7g City Attorney N C Corpu$_ Christi, T s day of lg %y 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 CITY The Charter rule was suspended 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 IL4649 CHRISTI, TEXAS