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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.