HomeMy WebLinkAbout02721 ORD - 03/08/1950�
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AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY
MANAGER TO EXECUTE FOR AND ON BEHALF
OF THE CITY OF CORPUS CHRISTI AN OIL,
GAS, AND MINERAL LEASE COVERING LANDS
ALONG THE SOUTH SHORE AND BENEATH THE
WATERS OF LAAE MATHIS AND CERTAIN LANDS
ABOVE THE 75 FOOT CONTOUR LINES ADJACENT
TO THE NORTH SHORE OF LASE MATHIS, DATED
MARCH 8TH, 1950, IN AND FOR THE CONSIDW,-
TION SET PORTS AND SUBJECT TO THE CONDI-
TIONS SET FORTH IN SAID LEASE, A COPY OF
WHICH IS ATTACHED BE22TO AND MADE A PART
HEREOF; AND DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF CORPUS CBRISTI,TE%AS:
SECTION I. That the City Manager of the City of Corpus
Christi be and he is hereby authorized and directed to execute
for and on behalf of the City of Corpus Christi an Oil, Gas and
Mineral Lease with A. W. Gragg, of Harris County, Texas, cover-
ing lands along the south shore and beneath the waters of Lake
Mathis and certain lands above the 75 foot contour lines adja-
cent to the north shore of Lake Mathis, dated March 8, 1950s
in and for the consideration and subject to the conditions set
forth in said lease, a copy of which is attached hereto and made
a part hereof, to -wit:
Z'7Z j
AL IXW
bdwan
THIS AG!1T made t av
:THE CITY �,,''.pQS CS)2T9i a �iai 7 tiou oE',Sneaes commtv. Texas
low (whathe+ tm¢'or mm 8). - — — — _ — — — — —
Cee6ga ' OIfE T Lygs IJD ,— •• — - -
L I�as'tn' In,aonaijlmaden AUD
`. ). m hand d, oI the tayeltlee herein provided. mid of
f t6ucun ro prodi.cy pa:, take are of. Vest..
li haiidi taake. Power
-pr; ^ ne4 W COnut9r- ;ELe�b'.�L:
�- - h:...•_..•, ,nd.ww �d�.n}aAvnb.awd- haudwe. its emulwiwe, tfd::fa ➢asRies. -dei ,+ d .. `
AN
R� aM %lid b(Bthi6 }�
^► ahristsi (a%ao IMM
sr aflr i qus share off, aril a.! pe0t of 01ppa ztaa �irae e
a of D�e�$w t3arae y Ud*khnayor Sande sr ,y No« der dim �s17s OrnmtYM � . d�ld oemprlei�g
6D agFep"q r more ar 1seH„ 7iae of Lake aorpas Christi (also
ooatour
a'�6ehhiel,.in r3�ioo 7Pe71s; UVO Oak aa�d � T�a�ii�a9eti Tao�aa�y yl9� �►+ el�g,.
fFAftf. II r An of the land awed by thS City bf corpus Chruft,
i aCja4ent and aoritigaoas to ttaie No► shorn of iaico Corpus gr9 eti (also knom as Ike
off, tiiA 7«0 ft« oomtao-ar lix+a, rsa7aai�*e of'la�tdt siisk�3sF t� 8 ow
eatly
eetab7isYead <and YgaagnIi d btUsdW*s garpne ahfist`1 B4.nte yarkf e17 of said 96zmi
�' smsds
of the- above dasorlbed 1�dty ham; leased„
�h� � erbiae " xeko asd} tdav# • t a A&eoae�,- "12cla« the eertif3.ad tii
gad the a is hereby i=oi pted « It is the iateatioa
and bounds 8paoriptyioas of aa3d s estnb71the4 by each by t
trde all of the leads owned by the lessor in ?'ee simple
of,r the .partips to this lease to iR and S2Is
iaaludod within the '•ebove doeoribed,traats Noss Is SIs
411 _ e_, - -e rL._ R. . — tee- crnNn 1J—
This lease covers, all of the lend deecd6ad above, and iv addition thereto, h covers and there fa hereby leased, let and demised m the Sam
extent as if it were described herein eper�ficallyy, all lends owned or clu med by Lessor adJscant, madgvem to, m a part of the tract or tracts
sperifirally described above, whether such addidonal lands be owned or claimed by deed, limitation or otherwise and whether the came be Inside
or outside the metes and bounds description and whether the same be held under fence by lessor or not and whether such additional lands be In
the named survey, or other survey or surveys. This is a lease In gross and not by the acre and the boons money paid and the rentals provided for
shall he effective to cover all each lands irrespwiive of the number of acres contained therein: and for the pmV m of calculating the paymame
hereinafter provided for, the land Included within the terms of this lease is estimated to acres , whether ft
actually comprises more or I— vs,
2. Subject to the other provisions herein contained, this lease shall be for a term of gems from this dam (called "primary term") and
as long thereafter m oil, gas or other mineral is produced from said land hereunder, or drilling or reworking operalons are conducted therety.
$,. Up rgysltice to be paid by Leasse are: (a) on oil, one-eighLb of that produced and send from said land, the same to be delivered at the
Walla, of 44hsr r t of Lessor into the ,pipe line m which the wells may be connected: L ee may from time m time purchase any royalty all in
Vision, poking the market price therefor prevailing fm the field where produced on the dam of purcham; (b) an gas, including coolughead-
- gae•ror othul,moarams substance, produced from said land and mid or used off the premises or in the manufacdve of grIlne or. other ,t
thcfe-frum, tier market value at the well of one-d" of the gas m mid or used, provided that on gee mid at the wells the royalty shaIl-he one-
eighth of the cement realized from such sale; where gee from a well producing gas only is not mid or used, lessee may pay es, royalty $100.00
por well year and if such payment is made it will be considered that gas L produced within the meaning of Paragraph 2 hereof: and
(c) an a irher minerals mined and marketed, oae•mnth ehher in kind or value at the well or mine, at Lemeda election, except
the royalty shall be fifty cents (500 per long ern. Lessee shall have Lee use of oil, gee, coal, wood and water from said land, * 4"9-W 3tnn
ell& for all operations hereunder, and the royalty on all, gee and coal shell be computed after deducting any m used. duB heee-
a his risk and expense of using gas from any gas well on said land for stoves and Inside lights in the principal dw tflaleee
W m....l..a wa ,"v ".wdr,t Iar .—ti— Iu—uudwr. --
304t+ U1 addition to the royalties provided for in Paragraph j., above, it is furt$er. -
pr#4401, understood and stipulated that the Losses shall pay to lessor, if and uhen
_Di, oil- caill and/or other minerals are produced, saved and marketed from the premises covered
by thio lease, the market value as run to pi line or storage of pipe line compwW, of
one - sixteenth of seven -eighths (].16th of 1/8th.) part of all oil, gas and minerals,
exclusive of oil and gas used for fuel for operating said promisee, that may be produced,
saved and marketed from said premises tinder the terms of this lease, as a perpetual
overriding royalty
L 11
4 if operations ior drilling are not commenced on said land on or before me year from this dam the lease shall than termtoete as to both
parties, unleae an or before such amivermy dam Lessee shall pay or tender to Lessor or credit to the of Lessor to Corpus Christi
National hank ar Corpus Christi Tern, (which bank and ha successors are Leamee
agent and shell eontinne as the depository for all rentals payable hereunder regardless of changes In ownership of add land or the rentals either
by conveyance or by the death or incapacity of Leaser) the sum of Mpprp
(e ). (herein called rental), which shell cover the Privilege of deferring cosearoc®eat of operations for drilling far
a period of twelve (12) months. In like mummer and upon like payments or readers annually the commencement of operations for drilling may be
further deferred for aacceaeive periods of twelve (12) months each during the primary term. The payment or Leader of rental may be made by
the check or draft of Leame delivered to Lessor or to said bank on or before such dam of payment. If each bunk (or any successor bank) should
fail, liquidate or he succeeded by soother bank, or for my reason fail or refuse to accept rental, Lesser shall not be held in default for failure
to make rw,•h payment or Lender of rental until thirty (30) days after Lessor shall deliver to Lessee a proper recordable Instrument, mamiag an-
'Q bank ns agent to receive mob payments or tenders The down cub payment Is conddemdan for this lease accordi. to its terms and aball
net be allocated su mere rental for a period. Lessee may at any time execute and delive, to Lessor or to the depository, a� maned or place of
record a release or releases covering any portion or portions of the above described panels® and thereby surrender this lease as to such portion
m portions and be relieved of all obligations as to the acreage surrendered and thereafter the rentals payable hereunder shall be reduced in the
proportion that the acreage covered hereby Is reduced by said release or releases.
5. Shosld any well drilled on the above described land during the primary term before production Is obtained be a dry hole, or should pro•
ductlon be obtained during the primary term and thereafter cease, then and in either event. If operations for drilling an additional wall are not
commenced or oppeeratiaoe Tor reworking an old well are not pursued on said bud an or before the fast rental paying date next succeeding the
Cs�otioa of prodactfoa or drilling or reworking on egid well or wdls,titan rife leave ejraR terminate unless Leases. an or before said date, shall
regime the paymentcaf rentals llpen resumption. of the puym®t of tenmle,'- Section 4' go the payment of tentele, shall � continue ion [aria
Jun W though there had been no Interruption in the rental payments. If during the last year o the prlmery term and prior to the discovery of
ail or ges on said land Lessee should drill a dry hole thereon, or if after discovery of oil or Sae before or durlog the last year of the prlmmr
term the production thereof should cease during the last year of said term from any coves, na rental payment or operation are necessary In
order to keepp the lease in force during the remainder of the primary term. If. at the expiration of the primary term, Lessee is conducting aperw
lions for drilling a new, well or reworking an old wall, or if, after the expiration of the printery term, production an this lease shall ce ase. rite
pease nevertheless shall continue ee long ea said operations continue or additional o bons are had, which additional operations shall be
deemed to he had where not more then suty (60) days lapse between abandonment of operations on one well and - anummmant of or—dons
d soother well and if production is
discovered this lease shall continue as long thereafter ae oil, gas or other mineral 1s produced and as long
ns additional operations are had. In the event a well or wells producing oil or gas to paying quantities should be brought in on adjacent land
and within one hundred fifty (150) feet of and draining the leased premises, Lessee agrees to drill such affect wells as a reasonably prudent op-
crater would drill under the same or similar eircurstancea Alter the discovery of oil, gas or other mineral In paying quantities on the land em-
braced by this lease. Leases shall reasonably develop the acreage retained hereunder, but in discharging this obligation, Lessee shall other no event
he required q ntoaon drill users than one well per twenty (20) acres of the area retained hereunder and capable of producing oil, gas
in [tay68Aftm productim Lessee shall have the right without Lessors consent to surrender all or any portion of the leased prmdms and be re-
lieved of all obligation as to the acreag$ee eurrendered. Lessee shall have the right at my time during or after the expiration of this lease to re•
move all property and futures placed by Lessee on said land, including the rlgh�t mod � �� all rasing. Than r� cobyo Lessor, Lamm
will burg ell pipe Ileum below ordinary plow depth, and no well abaR ha drill now an
said lond without Le®re consent.
7. The rights of shber party hereunder may be assigned, In whole or in part, and the provisions hereof shall extend to the halts, soccas-
sots and assign of the parties hereto, but no change or division In ownership of the land, rentals, or royalties, however accomplished. shall operate
to enlarge the obligations or diminish the rights of la®ea No change in the owmmsidp of the land or my interest therein, shall be binding on
Lessee until Lasses, shall be furnished with a certified copy of all recorded instruments, all court proceedings and all other necessary evidence of
an y transfer, inheritance, or sale of said rights. In event of the assignment of this lease as m a segregated portion of said land the rentals pay'
able hereunder dull be apportionable among the several leasehold owners ratably according to the surface area of each, and default In rental
yyeyment by one shall not affect the rights of other leasehold owners hereunder. In case Lessee assigns this lease. In whole or to part, Lessce shelf
be relieved of all ebligatian with respect to the assigned portion or portions arising sulumqueset to the dam of e11i�ant.
8. All express or implied covenants of this leasu shall be subject to all Federal and Stars Laws, Execadve Orders. IWee or Regnledom,
and this lease shall tot be La minted, in whole or In part, nor Lessee held liable in damages, for failure to comply therewith, if cmnplianm b
prevented by, or if such failure is the result of, my such Law, Order Role or Regulation.
9. lessor hereby warrants and agrees to defend the rile m said iand and agrees tiiat, lessee at lm option may disdargeamy�tas_ mart
lo. 411jt r locations Shan be e, dtthIclent didtsnoe ,?Z)m the edge or the lake
abutting the property hereby leased on the siorth and S -yuth so as not to ondaiWer or
threaten to contsminate the caster in said lake, directly or indirectly, within the opinion
of the Superintendent of eublie Utility Department of the City of Corpus Christie and
ouch precautioas shall be takart as required by said superintendent safeguarding the
1
Z" said lake as a source of `•ator Supply to the+ extent that di- octiolml drillinE tray be
required as to one or ndors locations.
11. .,The proposal of Lessees dated February 21, 1950. is attached hereto and made a part
hereof.
12. All of the provisions of thin lease shall inure to the benefit of and be binding
upon the partiem hereto. their heirs, admi.nistratorce successors and assignee
Led FiDS'n.'s `7L1 . ,,Y, this irtstrument is executed on the dote first alcove written.
x. T. regge
THE CITY J -' CUPPUS C13HISTI, TEYAS
lassor
Couier, Lamy Rumimcer
City Secretary
APPkkfl-FD AS TJ 14BOAL FUM
— MY Attorney
i
SINGLE AMNOWLEDGMENT
TIM STATE OF
COUNTY OF BEFORE ME, the undersigned authority, on this day personally
appeared—A. W Gregg known to me to be the
uazd tcrtbno 9..,pinXjr dg
israWfurtfie purposes and eonsidevatlat therein e"vemed,"! 2
Given under my hand and anal of office this the any .4 A D. 19
Notary Public In and for -county, Texas.
JOINT ACKNOWLEDGMENT
THE STATE OF TEXAS
COUNTY OF BEFORE ME, the undersigned authority, an this day personally
Wif and
kitown7to me to be the persons whose names an subscribed to the foregoing Instrument, and acknowledged to me that they
executed the same for the purposes and consideration therein expressed; and the seld
Wife of ged. having been ex—l-ed by me privily and apart from her
husband, and having the name fully explained to her, " the said acknowledged said
instrument to be her ad and deed and declared that she had willingly signed the same For the —purposes anreonsideration therein
expressed, and that she did not wish to retract iL
Given under my hand and seal of office this the day Of A.D.19
Public in
07 Ina
STAM-,
-daulty MCM, I
CORE ME, the undersigned authority, an this day pore*—Ily appeared M. B. Collier,
City Manager of the City of Corpus Christi, a municipal corporation of Nueoes County,
Texas, knolm to me to be the person vftoae name is subscribed to the foregoing Instrument.
and acknowledged to me that the some -me the act an& deed of the said City of Corpus
Christi, and that he had executed the said Instrument as the set and deed of said
City of Corpus Christi for the purposes and consideration therein expressed, and in
the capacity therein stated.
GIVW UNDER MY HAND MD SEAL OF OFFICE, this_ day of March, A. D. 1950.
Notary Jeublio in and for uaces County, Texas
4
r
0
IjL)
February 21, 1360
City of Corpus Christi
Corpus Christi, Texas
Please adept ti'ds lott,,;r .'or a ccm;�ercial uil, 1,,as -AYAJ ,.iineral
lease to cover the following, describes land Ownmd -L;; the 01 ty Of C"*PUS
0iristi, in San 11atricir, County, Texas: All of the land m4red b, the
L;.Lty of Christi, Texan, lying; on, alone-, adjacent mc," coati,.U-0::s
to t1le -w,to shore of Like Coll%,"S C:..rl: ;ti kliown ,13 rw,-,e 11atniq),
exclusive of Lwion lyin; ,. "VitgliL the (,f " U
tj : '
I'ark, ar4i all raf Lake corpus (also knvv as l4i(e itals), in-
sofar only as to the oil, t,,at, wnd L:�,eieunJer owned Ly
the CJI.ty of Coz;.kis J erlsti. it 1s specifically mdcrslv)od that t4era
saall be no ,Jcvelooment or prooi5otdo-- of mlncralE; said lake
CorPos (:ri.isti, tinder saki cNcelt L, gaud ttj:rouh vells drilled
directlo,�,ally fror, the shores of saic am(.( th'It dx1illrig or- orations
Unaer z4rtif ty var.,Ue Of said lease souls :tie suujc,e -I' to rc,�. aIations to
protect tiie City water mupply Irma. 'p"Il .ti c-11 C
";,e "'luel Q
zit�t,(3 i Lc nee ag°rees to p. ay vy thc
tine .�'ollowic: cash
(1) ono T,iuuaan,' Lolla-ra in aas:, lamiodiatoly aeon
ciosLip: )� the wil aa6 approval of title w the ,,t�ove
desvribt,c' land wnd -,iincxals as i;ooi! ant itzchantabla in
Vie CUy of C:,orj�.;.s Chr-004 by Losseels attorneye; it
amJer9too-,s tr,,t lass e' attorneys still have a peri-).' of
U"n days a-Xtey execution the lease by V"'S 67-ty, jzond
delivoTi b"j, Ulae wit,: of aornploto -,tbqtI',,Ct c"", titlfl, IR-Sttd'',
to exar.-Lne. title; an f'iirt)+er th t lessee a,';recs to
U0(,'SjT- lo I a° 1,w ty oll- Cc, riais :-is t•" thF
.aw aura Z,3iwi, lo,,% xlcti.
(2) Two Tho,qw- live !IkOred 11"U1ars {i,2,}LX).iYJ) In cas:1, Lx)--
coraw,en,oement of each loc:atl,ori to lee driiled lender said
lease ai.,r L,c- covered thereby. !,aiied On iuilr-m!
Ca4visaioLm 6paclzu, of 2,) per well, the (�-AYZ161,.t IL'I've
provided viii! ufw.ntitatca a blonas oX ,)Or acre on oac!3
20 aci o tract o3 w,Iich ot a -. u.,il is c,r-u:ioace= ;.
City of Ck)ri.us Christi Pat,,,e 2 fetruary 21, 1Y50
It is undere Wod that the lease shall provide for the usual 1/8th
royalty, In additions the City will be allowed to reserve unto itself an
overriding royalty inter st of 1/16th of 7/5ths of all oils gas and other
minerals i,'To<uoe6, save' ,nr,- marketer`, fr,,m the latid ciovere'' by We lease,
un6er sa.id ipat-'e.
Tie uncersiV
ne d Lcv»ee agrees to Five Vic �-Aty of "J—ieti a
i QQC iU sufficient bond to protect the Lity figaliitvc any contarninatitri
of its lake Corpus Christi water sL4p,,,.Iy a.-, tt,,e results of any operation
or actiOrivi A' lasses, unds-i i=cl by virtas of saivi lease.
The i,raciersiyned Lepisce ai_-,rces to wcrl( un(rn, the biilt-',rcision o� the
(;ItY 'Wagger, and submit tea salo :;Uily raports. =f A-1
07,erati% ).
qs, schlumbNrg4ri, and all cat or info.Tnm-t]'Cc; by the
Lessee in Vir corurn t' r rills iy ai'lc all veils; that
911 all will
walls
be
drilled inn 6 complete_, in j.00d ancineerinj-1- practices.
'f6c unde'414nad Txs-qeG a18c� af-rees to use only now casing'
tubirit,' in crillln, well; .;i-j•Jer
Anytiair4_ hereinabove oontajne,r W the coritrary tin twithstaridlla� ', It
is expressly agreed anci un6erotoo,! I.t4.A this 1c, Wr ,roposal is $apple-
Mehtax-y to tfie af-rse.,6erit herekifcjrt -ncje :Yy the .;nd",signed Lessee with
t,e City of i;OrEr.La ctirluti, under cite of I 1 `�Op
relative to lease Qj '}cries 77 lapd on Uie 'Outs whore of
L-kc '- ort.Ls r "risti; that rjipru)kAmatclj 6U acres A land on the 'Soutt,
s. ore of saic , I
Lake, t4c .-ILt'd iv 'Giliaowje '
'� escribou,
are both to be covered by, ax.,o ii.cludecl veit.,4! - onp lease; Ln-iu t'ho wJ.'J'Jo.uu
cash consideration nere'i)anove sin, s?iall j.,e t is e,Airs
Cask eon sifacuatlon t_, be p2ir by Tessoe for the coverir,- ; both sale
a:i:q)roxiw.atQ1j '1,0 acres of laru j;i t:iG `Sit, abore of said take c-'or:pUs
Christi, area t,4c hcroinalbovs de, cr-lbed Ian(], art ?. furtr!ers that the !serein-
ak, , )ve refArrec, to an.d rrovidec royalt"', irstere'-t of 1/1'Ah of
of all "Al' twral' oec : ""he co"cXccl
Gr z d lea =se e s.rall �e icl, P cf the p".41,ximately I- acr<'L "i" Uie
"4--"'are of Ll'kc, -aAc Mhc ,rreinat;ovc cescr-U,ed.
Soars trtiy'
Lessee
"?W
lurch 8, 1950
City of Corpus Christi
Gorpus Christi, Texas
Gentlemen:
ith reference to that certain oil gas aail ninoral
lease between the City of Corpus Christi and 1i. is.
Uregg of Houston, Harris County, Texas, as Lessee,
covering lands along the *oath shore and beneath the
waters of Lakc Mathis and certain lands below the
75' contour lines adjacent to the north shore of Lake
Mathis, dated March �, 1950.
Lt is agreed th =:t all legal obligations regarding off-
sets will be kept and performed and that drilling All
be prosecuted on successive wells with due diligence.
Very truly yours,
k. -A. Gregg
s` b
SECTIOY, II. The neoessity for deriving revenue from
lands now owned by the City of Corpus Christi creates a public
emergency and imperative public necessity requiring the sus-
pension of that certain Charter rule that provides that no
ordinance or resolution shall be passed finally on the day
it is introduced and that such ordinance or resolution shall
be read at three several meetings of the City Council, and,
the mayor having declared that such emergency and necessity
exist and requested that such Charter rule be suspended and
this ordinance take effect and be in full force and effect
from and after its passage, TT IS ACCORDINGLY SO ORDAIN's'D.
PASSED AND APPROVED This 8th day of March, A.D. 1950.
�AJAi1/L.�w
MAYOR
The City of Corpus Christi,Texas
T -
City Secretary
APPROV ED AS TO LEGAL . ORM-
Ci • Attorney
C�orr�pus Christi, Texas
19LO
TO TBS XWRRS OF TO CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
For the reasons set forth in the emergency clause of the fore-
going 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, hereby 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,
4'4x���
MAYOR
City of Corpus Christi, Texas
The Charter rule was suspended by the following vote:
Leslie Wasserman
Jack DeForrest
Barney Cott
Sydney E. Herndon
George L. Lowman 1"
The above ordinance was passed by the following vote:
Leslie Wasserman
(.11.41
Jack DeForrest
/�"`
Barney Cott
Sydney E. Herndon
�=
George L. Lowman
Z72-1