HomeMy WebLinkAbout02794 ORD - 06/20/1950t/31/5G (e.) N
Ali ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR
AND nN BEHALF OF THE CITY OF CORPUS CHRISTI,
TEXAS, TO EXECUTE AN OIL GAS 3M MINERAL LEASE
WITH JACK MODESETT AND B. C. GRAHAM, A PARTNER-
SHIP, DOING BUSINESS AS OI CO., ON A
TRACT OF LPIM OUT OF AIRPORTS D VIS_:ON BEING 'THE
TOTAL ACREAGE OF THE �CTLIFF MAU MUNICIPAL AIR�.'0RT
OF AN ESTIMATED 463.377 AC , A APD
'ENO CERTAIN TRACTS UNDER ' AHICH MINERALS HAVE BEEN
OTHERWISE RESERVED, UNDER THE TERMS AND CONDITIONS
AND FOR THE CONSIDERATION SET FORTH IN SAID LEASE,
A COPY OF WHICH IS MADE A FART HEREOFAND ATTACHED
HERETO; AND DECLARING AN L'MW ENCY.
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 and directed to execute for and on behalf of the City
an oil, gas and mineral lease with Jack Modesett and B. C. Graham,
a partnership, doing business as Nueve Oil Co., on a Bract of
land out of Airport Subdivision being the total acreage of the
Cliff Maus Municipal Airport of an estimated 163.395 acres, save
and except two certain tracts under which minerals have been
otherwise reserved, under the terms and conditions and for the
consideration set forth in said lease, a copy of which is made
a part hereof and attached hereto, to —wits
TU $TdTa OF TU
Comm of Man
TRxR iqA==T► made this the _ day or ifty,
19500 between the City of Csrpas Christi, acting by sad
thsomb ss. n. Conior, its City (Manager, "Y autharisod by
the City "mail of the City el Corpus Christi, Tema, Lesser,
and Jack go"oett and a. C. Groh"# a partnership, doling hami-
Raes as Ruove oil Company, Leso",
WI T993AITJ4
Is Lower, is c of Tom nollars (#W.00)
0" other weninabls comsidsrwentisa heroin expressed, received
*Ad to ibs Moti.ved, of the royalties herein prs►ided and of
the agnamosts of Loss" .heroin contained, hereby g mats►
leases and ,lens unto Lossro* f*r tts purpose, of investigating,
snnplorinS„ prospecting, drilling and neiniag for and producing
Oil, ass and all other "awals, Laying pip* liner. Wilding
talcs► power status, Ulophsns lines and ether structures
therosa, to peroduee, "", taker sears Of. treat, tranurport am
an said pendants and musifts its 0*10yaoss the folu"ing
described land is a+asees county, ?wens► to- dt I
at a �wimt In the Reatt lino
eft rn�1s�Road said point �s � onow
�►p #irpsrt hwk t Sion
st m bL.M da�t of recard is Volume t, loo 26,
Serum"tp ar of ti6a ntr► ?saMpls, tar the
am" 8 00 Rir 0 with the W"t U"Wary line
of said lispaxw lawrk 0abdiMi,su a disUm" of
35�►.57 f is apoint for a cormw of this tracts
them" 8 4610 let a a distanso of 109.41 lest
to a point for a corner at this trenst, said :Let
being MW Y " at th eaid
Park 3WIdi� irport
fkemce d 5 49+ a a distance of 1557x05 foot
to a point in the so nter line of Mbbit flea Read for
a server of thus %Trot
�►eeeee s 290 27e 9 With the senthrlu of Rabbit
Rnra Road a, distance of M.80 foot to a point for a
comer of this trraet
Themos a 890 5d' V a distaaoe of 1500.00 feet
more or less to a paint for a **raw of this tracts
TbAose 9 R4' R7+ I a dis"Moo of X0.00 foot
mere or lows to a point is the materlu of me"m
Read for a corner sf this tenet;
Thermos 2 60* 99 • W wdtt the conO 11" of isoras
Road a distance of 5il5.00 foot mom or loss to a
pout for a corner of ttia tracts
Thence S 89. 569 x with the South boundary
lime of Lots 1, 2, 3 and 4 of the Guggenheim and
Cohn lam Lets, a distanee of 401.90 feet to a
point for a corner of this traot;
Thence A 54. 25t Y with the Southeast boun-
dary line of A;i,rpert Head a distance of 414.85
feet to a point being the point of curve of a
circular currve to the left*
Theme with the are o said circular corner,
Roa being is
distant* boundary
f 1145.20 foot to ae of Airport
point being
the point tangent R 433 to said
with the"atheast bounda-
ry line of said Airport Road a distance of 4700
feet more or lose to a point, the point of curve
of a circular curve to the right having a radius of
2864.59 and a central angle of 8. 04'•
Thence along said curve, being also the
Southeast boundary line of Airport Road, a dis-
tance of 547.72 feet more or less to a point in the
South boundary line of Old Brownsville Road;
Thence R 87' 181 E, 965.78 feet to the place
of beginning;
Containing 463.95 acres of land, more or less.
SATE AND UC_XPT rive (5) certain tracts of land
as followsi Being approximately, P. R. Sykes, 6.274
acres; Wm. Singer, 2.95 acres, J. R. Cain, 3.2 acres;
T. T. Moore, 1.64 acres; and fi. D. Countess, 4.01
acrea; the minerals under which said tracts of land
he Cit e
been M
served by the ors in said deeds to
City Corpus Christi.
This is a lease in gross and not by the acre, and
the bonus money paid and the rentals provided for shall he
effective to cover all of such lands, irrespective of the
number of acres contained therein; and for the purpose of
calculating the payments hereinafter provided for, the
land included within the terms of this lease is estimated to
comprise 463.395 acres, whether it actually comprises more
or less.
2. Subject to the other provisions herein con-
tained, this lease shall be for a term of six (:6) monthgfrom
date hereof (called ■primary term") and as long thereafter
as oil, gas or other mi
Looser into the pipe line to which the trails any be connected;
Lessee may from time to time purchase any royalty oil in its
psisession, paying the market price therefor prevailing at the
field where produced on the date of purchase; (b) on gas, in-
aluding casinghoad gas or other gaseous substance, produced
from said land and sold or used off the premises or in the
manufacture of gasoline or other products therefrom, the market
value at the well of one - eighth of the gas so sold or used,
provided that on gas sold at the wells the royalty shall be
one - eighth of the amount realized from such sale; and (a) on
all other minerals mined and marketed, one -tenth either in
kind or value at the wolf or mine, at Lessee's election, ex-
cept that on sulphur the royalty shall be fifty cents per long
ton. Lessee shall have free use of oil, gas, coal, wood and
water from said land, except water from Lessorts wells, for
all operations hereunder, and the royalty on oil, gas and coal
shall be computed after deducting any so used.
4. Lessee agrees, an or before the expiration of
ninety (90) days from and after written notification of
Lessor of the approval of drilling site selected by bosses
and approval of title by Lessee, whichever is the later date,
to oommenoe operations for the drilling of a well at said
drilling location and to drill the same, with diligence, to
a minimum depth of sewn thousand (7,000) foot, unless oil,
gas, or other minerals are produced, saved and sold at a
lesser depth. Should such well be a dry hole, or should
production be obtained during the primary term and there -
after cease, than and in either of said events, if operations
for drilling an additional well are not commenced, at a loca-
tion selected by Lessee and approved by Lessor, or operations
for reworking the old well are not pursued on said land on
or before the expiration of sixty (60) days, then this lease
shall terminate. If, at the expiration of the primary
term, Lessee is conducting operations for drilling a now
well or reworking an old well, or if at the expiration of
the primary term, production on this leas* shall cease, this
lease shall, nevertholsss, continue as long as said opera-
tions continue or additional operations are had, which
additional operations shall be deemed to be had where not
more than sixty (60) days shall elapse between abandonment of
operations on one well and commencement of operations on
another well, and if production is discovered, this lease
shall continue as long thereafter as oil, gas or other mineral
is produced, and as long as additional operations are had,
subject, however, to the remaining provisions hereof. In
the event a well or wells producing oil or gas in paying
quantities should be brought in on adjacent laud and within
three hundred..siktY(360) feet ofs or Training, the leased
promises, Lessee agrees to drill such offset wells as a
reasonably prudent operator would drill under the same or
similar circumstances, subject, however, to the remaining
provisions hereof. After the discovery of oil, gas or
other mineral in paying quantities on the land embraced by
this latest Lease* shall reasonably develop the acreage re-
tainod hereunder, but in discharging this obligation Losses
shall not, in any event, be required to drill were than one
(1) well per forty (40) acres of the area retained hereunder,
and capable of producing oil, gas and other mineral in paying
quantities, and bosses shall not be bound or obligated to
drill any well on this lease by reason of this provision
until and unless the Lessor approves the drilling site of
each such well to be selected by Lessee, in writing, and
subject to the remaining provisions hereof.
5. After production, Lessee shall have the right
without Lessor+■ consent to surrender all or any portion of
the leased premises and be relieved of all obligation as to
the acreage surrendered. Lessee shall have the right at any
time during or after the expiration of this lease to remove
all property and fixtures placed by Lessee on said ]and, in-
cluding the right to draw and remove all casing. When
required by Lessor, Lessee will bury all pipe lines below
ordinary plow depth and no well shall be drilled within two
cr .runway
hundred (200) feet of any building.now on said land without
Lessor's consent.
6. The rights of either party hereunder may be
assigned, in whole or in part, and the provisions hereof shall
extend to the heirs, successors and assigns 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 Lessee.
No change in the ownership of the land, or any interest
therein, shall be binding on Lessee until Lessee shall be
furnished with a certified copy of all recorded instruments,
all Court proceedings, and all other necessary evidence
of any transfer, inheritance or sale of said rights. In
event of the assignment of this lease as to a segregated por-
tion of said land, the rentals payable hereunder shall be
apportionable among the several leasehold owners ratably ac-
cording to the surface area of each, and default in rental
payments by one shall not affect the rights of other leasehold
owners hereunder. In case Lessee assigns this lease, in whole
or in part, Losses shall be relieved of all obligations with
respect to the assigned portion or portions ark ing subsequent
to the date of assignment.
7. All express or implied covenants of this lease
shall be subject to all Federal and State laws, Executive
Orders, Rules or Regulations, and Lease@ shall not be held
liable in damages for failure to comply therewith, if compliance
is prevented by, or if such failure is the result of, any
such lax, order, rule or regulation.
d. 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 the land, either
in whole or in part, and be,subrogated to such lien with the
right to enforce same and apply rentals and royalties accruing
hereunder toward satisfying saris. Without impairment of Losseels
rights under the warranty in event of failure of title, it is
agreed that if Lessor owes an interest in said land less than
the entire fee simple estate, than the royalties and rentals
to be paid by Lessee to Lessor shall be reduced proportionately.
9. It is agreed that any and all operations by the
Lessee shall be conducted on said property in such manner as not
to interfere with the normal operations and use of the demised
lands as the municipal airport facility of Lessor, and Lessee,
in making this lease, agrees that the development of said lands
for mineral purposes on locations to be approved by Lessor, will
not in any manner interfere with, molest nor retard the use of
the land hereby demised as an airport facility of the City of
Corpus Christi, and Lessor agrees that it will, during any drill-
ing operation, direct traffic which may be entering or leaving
said airport in such manner as to facilitate the drilling of any
well on the demised premises, with safety both to air traffic
and to the necessary equipment of Losses engaged is the drilling
operation, and in such manner as will not lessen the use of the
airport facility of Lessor. All operations shall be conducted in conformity
with regulations provided by City Ordinance.
10. Lessee agrees to carry and keep in full force
and effect during the term of this lease public liability in-
surance of $250,000.00 to any one person and /or 4250,000.00 for
any one aceident, in a company or companies acceptable to Les-
sor, such policies to be surrendered to the City of Corpus
Christi for inspection and approval prior to the commencement of
drilling operations. Lessee agrees to conduct its operations in
such manner as not to interfere with the use of the airport faci-
lity of Lessor as the municipal airport, with safety to traffic
entering, leaving and using the airport.
11. As an additional consideration for this lease,
there shall be paid monthly to the City of corpus Christi,
Lessor, the market value, as ran to pipe line or storage of
the pips lins eompany one- sixteenth of seven- sighths part of
all oil, gas and other minerals, exclusive of oil and gas
used for fuel 'operating said premises, that may be pro-
duced and saved from said premises under the torus of this
lease. There shall under no circumstances be any obligation
or liability to pay said contingent consideration save from
the value of the oil, gas and minerals actually produced and
saved, as set out above.
12. Lessor agrees, upon selection by Lessee of
drilling site for the first well, approved by Lessor, to prompt-
ly take action to officially abandon for municipal airport uses
an area of twenty (20) acres, including the site of the well,
such area to be surveyed and designated in the abandoning ordi-
nance, and not to include any runway; and, thereafter, in like
manner, Lessor agrees to abandon twenty (20) acres, including
the site of each well location, for municipal airport purposes,
and not to include any runway, for each well location selected
by Lessee and approved by Lessor, unless prior to the commeneemant
of any such well or wells the Lessor has abandoned the entire
airport for municipal airport purposes; and it is understood
that Losses shall not be obligated under the terms hereof to
drill additional wail or wells, or to drill to prevent drainage,
as provided by this lease, until Lessor has so abandoned each
drilling site for airport purposes.
13. In the event no oil, gas or other mineral is
being produced and marketed from the above described land,
and should a well or wells capable of producing gas in paying
quantities produce gas only, and such gas be not sold or used,
00
Losses may pay in lieu of royalty a am equivalwilw to
per acre par well per year, for a period not exceeding two (2)
years. If, at the and of such two (2) year period, such gas
produced be still not sold or used, then Lessor shall have
the option of paying to Losses the actual cost of drilling
and completion of such well or wells so capable of producing
gas in paying quantities and upon the exercise of such option
and payment of such costs, this lease shall be cancelled and
of no further fore* and effect. Should Lessor decline to
exercise such option to terminate this lease, this lease
shall continue in full force and effect so long as Losses
continues the making of said annual payments in lieu of
royalty. In the event any such payment in lieu of royalty
is made, if an when made, as to the year for which payment
is made, it will be considered that gas is being produced
within the meaning of Paragraph 2 hereof.
IN WITNESS WHMOF, This instrument is executed on
the date first above written.
NUM OIL COMPANY, A Partnership
By
a ers
LESSSE
THE CITY OF CORFUS CHRISTI, TEAS,
ATTE$Ta LESSOR
By
City secretary City er
IPFSflVID AS TO LEGAL FM
city ruforney
THE STATE OF TXM j
COUNTY OF AST RS j
DIP= 1l, the undersigned authority, a Notary Public
In and for said County and State, on this day ,personally appear-
ed W.B. Collier, City YAAagsr of the City of Corpus Christ, a
municipal corporation, known to me to be the person whose naae
is subscribed to the foregoing instrument, and acknowledged to
as that he executed the same as the act and deed of said City
of Corpus Christi, Texas, for the yaarposes and consideration
therein expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SELL OF OFFICE, this day of June,1950.
Notary Publics Nuoces County, Texas.
SECTION 2. The necessity and desirability of obtaining
revenue from lands now owned by the City creates a public emer-
gency and imperative public necessity requiring the suspension
of the Charter rule that no ordinance or resolution shall be pass-
ed finally on the date 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 having requested that such Charter rule
be suspended and that this ordinance be passed finally on the
day it is introduced and be in full force and effect after its
passage, IT IS ACCORDINGLY SO ORDAINED.
PASSED AND APPROVED, This go _day of 1 A.D. 195C.
'GfN'i i/
HfA' (? 0 -Te IN.i
! _ CITY OF COR15Z CHRISTI, TEXAS
T:
Ci y ecretary
APPROVED AS TO GAL FORM:
ity o ey '
Corpus Christi, Texas
,2Q 1950
TO THE AMMERS OF THE CITY COUIQCIL
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,
City of Corpus Christi; Texas
The Charter rule irms suspended by the follmving vote;
Leslie Wasserman
Jack DeForrest
Barney Cott
Sydney E. Herndon
George L. Lowman
The above ordinance tivas passed
by the following vote;
Leslie '4asserraan
Jack UeForrest
Barney Lott
Sydney E. Herndon�'�✓
George L. Lowman
I
To
Z
INTER - OFFICE COMMUNICATION
Dept.__-- - - - - -' d
From_.., - -- - -- — Date
Subject
Interlineation in 0 &G Lease with Nuevo Oil Co. at'page
6. Aragrph 9. at end of the last sentence and being
a new sentence.