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HomeMy WebLinkAbout02880 ORD - 09/19/1950WmRAndereon;gp 9119150 (5) AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI TO EXECUTE AN OIL AND GAS LEASE WITH JA CS MODESSETT AND B. C. GRAHAM, A PARTNERSHIP, DOING BUSINESS AS NUEVE OIL COMPANY, ON A TRACT OF LAND OUT OF AIRPORT SUBDIVISION BEING THE TOTAL ACREAGE OF THE CLIFF MAUS MUNICIPAL AIRPORT OF AN ESTIMATED 464 ACRES OF LAND, SAVE AND EXCEPTFTVE CERTAIN TRACTS UNDER WHICH MINERALS HAVE BEEN OTHERWISE RESERVED, UNDER THE TERMS AND CONDITIONS AND FOR THE CONSIDERATION SET FORTH IN SAID LEASE AND BID PROPOSAL.OF LESSEES OPENED ON THE.I2TH DAY OF SEPTEMPER, SAID BID BEING THE MOST ADVANTAGEOUS TO THE CITY CF CORPUS CHRISTI; A COPY OF WHICH LEASE IS ATTACHED HERETO AND MADE A PART HEREOF; REPEALING ORDINANCE NO. 2V11 PASSED AND APPROVED ON THE 20TH DAY OF JUNE, 1950; AND DECLARING AN EMERGENCY, WHEREAS, Ithas been determined by the City Council of the City of Corpus Christi to lease a portion of the lands known as Cliff Maus Minicipal Airport for mineral development purposes, and said council authorized an advertisement for bids, and such notice of intention to lease lands for mineral development pur- poses was duly published, and WHEREAS, Bids have been received, considered and an award made for the most advantageous bid to the City of Corpus Christi, and it is now necessary to enter into a lease for said purpose; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXASr SECTION 1. That the City Manager be, and he is hereby, authorized and directed for and on behalf of the City of Corpus Christi to execute an oil, gas and mineral lease with Jack Modessett and B. Ce Graham, a partnership, doing business as Nueve Oil Company, on a tract of land out of Airport Subdivision being the total acreage - of Cliff Maus Mmnicipal Airport of an estimated 463.95 acres of land, save and except five certain tracts under which minerals have been otherwise reserved, which lease has been awarded said Nueve Oil Company in accordance with the bid proposal of said company and form of lease on file in the office of the City Secre -. tart' of the City of Corpus Christi, Texas, all incorporated and made a part hereof by reference, such bid having been opened on the 12th day of September, 1950 and being the most advantageous to to the City of Corpus Christi, Texas, and according /and under the terms and conditions and for the consideration set forth in said lease, a copy of which is attached hereto and made a part hereof. SECTION 2. That Ordinance No. 2794, passed and approved by the City Council of the City, of Corpus Christi, Texas, on June 20, 1950, is hereby repealed and the same is superseded by this ordinance. SECTION 3. The Necessity and desirability of obtain- ing revenue from lands now owned by the City creates a public em- ergency and an imperative public necessity requiring the suspension of the Charter rule 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 several meetings of the City Councils and the Mayor, having declared that such emergency and necessity exists and having requested that such Charter rule be suspended and that this ordinance be passed finally on the day it is introduced and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED. PASSED AND APPROVED This 3( of September, A.D. 1950, The City of Corpus Christi, Texas ty Secretar y APPROVED AS TO LEGAL FORM: Assns i Y A C us Christi, Texas 1950 TO THE LELMER5 OF TIM CITY COMICIL 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, Layop, City of Corpus Christie Texas The Charter rule was suspended by the foll(nving vote; Leslie Wasserman aw Jack DeForrest Barney Cott �}�p Sydney E. Herndon ({� George L. Lrnvmen ( „� The above ordinance was passed by the following vote: Leslie Aasserraw Jack DeForrest Barney Cott Sydney E. Herndon George L. Lowman / C,Clj TO STA1'S ar WAS .,ouxn Of xui c�iR q I1' u. AohmL NT, made this the lay of September, 19j00 between the City of vorpus GhriWti, sating by and through t. B. Collier, Its City Manager, duly authorlsad by the City Gwsneil of the City of ,orpus �;hristi, Texas, Lessor. and Jack Modwett and Burdett* Graham. also known as B. C. Graham, a partnership, doing business as ltseve Oil Company, Losses& 9 1 T X E S 6 lw T 4 s 1. Lesser, in considorutiw of Ton Dollars (40.0d). and other valuable consideration herein expressed, received and to be rsosiveds of the royalties herein provided and of the agreements of "oesee herein contained, hereby grant@, losses asks lots unto lisssoss for the purpose of iavestigatings exploring, prospecting, drilling and raining tor, and producing oil, gas sai all other minerals, laying }rips liner, building tanks, power stations, tale - phons lines and other structures thereon, to produce, save, tam@ care of, troutm transport and own said products. and housing its err4pyees, the following described land in buttes �,ountys Ter -is, to -wits begiming at a point in the -oath boundary line of 'fie Old Brownsville Road, said point being the northwest corner of the airport Fork subdivision as shown by snap or plat of record in Volume 8, Page 26, of the Flap atcards of Nieoes County, Texas, for the northeast corner of this tracts Thence S 00 220 t with the cwt boundary line of said Airport Park Subdivision a distance of 3544.57 feet to a point for a corner of this tracts Thence 8 460 18' 9 a distance of 109.44 Poet to a point for a ooraer of iris tract, said point being the most southerly corner of the tid Airport Park Subdivisivas 'E'houae S 590 1$0 s a distance of 1557.0 feat to a point in the tenter lis►o of Rabbit ftua Head for a ooruer of this tracts Thence S 290 27' IF with the coaterlinc of Aabtit Ran Road a distanes of &Halo rest to a point for a corner of this tracts 1howo A W 561 b a distance of 1500.00 feet more or loss to a point for a aceor of this tracts :E'hsnao S 290 27' R a distance of 28D -00 Best mare or lass to a point in the aonterlins of Fame hood for a corner of this tracts Thence N 600 33, W with the senterlins of +forme Read a dia- tance of 525.00 foot more or less to a point for a oorner of this tracts Thonee S W 56+ W with the South boundary line of Lots 1, 2, 3 and 4 of the Cull sahois and Cobh firm loots, a distance of 4801.90 feet to a point far a corner of toils tracts disease i 54e 25' k with the NvAh art boundary sins of Airport Arad a distance of 4Ut48 feet to a point being the point of curve of a oiroular ourvs to the lofts lbome with the are of said circular corner, being also the oentheaat boundary lire of Airporthead a distaawo of 1145.W foot to a paint being the point of tssgsesb to said eurves t'hsaoo R 430 050 8 with the owAthaaet boundary l*.ae of said Airport load a distanso of 47W feet more or Isms to a point, the point of onrve of a circular curls to the right basing a radius of M4.39 and a seshtral eagle of 8' 04'l Thomas along said curve, being also the southeast boundary lino of Airport Road, a distance of 547.72 hat sots or loss to a point in the south boundary line of Old brinw-ville Roads Theme, X 070 18* 9 965.76 hot to the plane of beginnings uoutaiuimg 463.95 sore of land, mot® or leas* UVR AN) ks'x'zPT time (5) eertsia treats of land as fullness Using apprealmately, P. R. gybe 6.274 aerNl 1la. Linger, 2.95 across d. $e "In, 3.2 aaress T.. to Meese, 1.61 aoress arA Us :,. Counties, 4.01 assess the mineraic under which said tracts or I*w having boss reserved by the Lrantors in said deeds to the WUy of Gerpus - hri.sti. This is a lease in gross and not by the sare, and the banus money paid and the roatals provided for shall be offootiva to covor all of suet lands, irrespective of the number of sarea contained bhoreins and for the purpose of calculating -he payments hsrsinantar provided for, the land included within the terms of this lease to estimated to comprise 465.395 across. whether it actually ooaprises store or lease 89 Subject to the other provisions herein oeataimed, this lease shall be for a tarn of six (6) moathc from date hereof (called "primary tore °) and as lam& taoreafbor as oil, gas or otx:or mineral is produced franc said land hose - under, or drilling or reworking "ratio= are conducted taer m. 3e The royalties to be paid by Losses are (a) as oil# one- oight.of that produced ass sated from said lasted, the ease to be delivered at the wells or to the credit of lessor into the pipe limey to which the wells soy be cos w"todi Losses say frx;s time to time purchase any royalty oil in its peeseeaion, paying Us market prime therefor prevailing at the field where produced an the date of purchases (b) an Yaps, including casinghead gas or other ,;aeeous substance, pro - duosd from said land and sold or used off the promises or in the masafasture of gasoline or other products therefrom. the sariet value at rths wall of ono - eighth Of the gas so sold or used, provided that an gas sold at the wells the royalty shall be am-eighth of the asbunt realized tram such sales and (c) to all other ndsosxls mimed and marketeds she -tooth either in kind or value at the wall or sines. at Lessee's slooto'h ept that on sulphur the royalty shall be fifty OwAn per In-W toga, 166660 sban bcnte tno we at tail, gma# ovale vwd sad eaten tart 0" lama, a oopt aae%t from Leewwo 0alle# for Sill opme- ticatta b*'- amdrari aend %M VIVA qr •;n ailw ps awed 004 shall be meted aftteer dedaatuK sew so utad. 4. Lannon ate# ,yea OF b0ftle AbW 4WAXsiMbt at ttd,M (30) do* ah" nand a ftw Witt" scot neaetim at Lower at the sraparwol at dsrilliag site mlm*+Ad ® Low" ad am"a% at title w sassy 0hiahaaaer is aw UtOr date, to aorspeum o(4arat mm for the 4ri]IUkg +_t a wall at add drIU- ins leoatico and to drill t?te somm$ with dill a aaa, to a aitatam at waa m tkaommod (7,OW) tarty tatlame OUa gas or otdter adaarala are Dew awed and "U at a laaem dftqh. SWuld a mb 0*11 be a ft h0144 tar abaald poduatim be obta Lmd dot dm the prUwW tell mW thw eaftw wmxOp tbm aril is slthas of said wows, if obomtl,m for da3UUC an a3dltiosaai w*U am wt wommed, at a lmo&U m salaated sad Laasea aatd std tr Laraori or open ititiess for rataa*IM tho edA wall. are not ,.mad an avid land of or before the aajftti,: a of oW,,y (60) des* then ttbda laws dta11 tsnewim►ta. Ifs at tIW ONPI nattOn OC the VVIA tly tswrm, Lamm is ccnftaUW ovweklva w f`a'r drUI14 a am wall or rwomidn an old well# or If at the aapirstica Of the prSAar U04 prprhs U0* 'At a 1000 ShUll 0040e0 tWA 104" wind, tsavm*tMlass, amtitara as lmag as sod opamaticos eootiaes* or additi3>9aai opaaatdawria Sara had# smadt adit%Loreti o�- aaa&Wms ataau be dammed to be load aft% pot aware theta sixV (60) dep "I elapse beabeaaa abm"Amt at ap- WMti,ame tea c w 0611 AW COMMS004000t of agF ,*ratif mt 14 seaotber raffle and if pmkaftm is disoovetarad# this I rasa ahali ar aetiatetb as long tbareatter as al]., gas or otto r oipa vI is pmdwmd amen] as 14 mg as addltl teaI viOs0:tlt,ns era bed, seta aa'l,hataaa Wetra tb M raredet rAZ pa hOMOt. Ts tbO svaet a Weil Or vmU producift sail or gas in z'V+ ttaatt+Atiaa abcaU be kwnetglet ion ant a d4aomt lewd and adthis thm ahttttdred AxW (360) feat of, or draInIng, clove leased pmam. Lassee sttxtaas to drill steads atfast Sella as a remk=*Ar paadaat opetrstar w, 41d slsiu, mder the sow ar slllar auvmstwAm, s*Jamt, #t* the 10own alm s t#aMr"r. After the aswr0ow of tail# gas# was 'Dear 0>ta na is paps UV WMKtlas on the 2attad admoced bjr We lass*, Laeasa obeli rawso*aktlyr dweinp tha aarseaes rataatmod borraarAW# kart In dIOdmftIM data oblipt114 I,," shall w% in nerd s wA, be m*dred to drill aware thM OW(l) eali .AW tasW t, 1_ araM of UP am votdrad bmvw;deorj aad W*Able it pin e4.2r gag Md O*W Nd*$Md fa tregriW qua04tie14 AW Lsr naft aball DA be to" or CI:IU&t0d t© 61111 ate' °ait Ud* 1ee00 Or MYaOn Mf 'this pre G)A MtU OW tiiaeale thO LWAOr a;'PT*Vft U* d -%Uift sits bt IMWh ehl* W*U to • cif. ► Atut" PnWucftO% TANU a mil borer tho K004 arttheett TAm*We s„YaM% tee WAM04W aU W arm WUAS a +An bated proaLime mW tre raltaw ad of all ObUct t " to tho acroop sw7cwww. Lemma shau cave the KOO* 4 OW UMWs ftrift or &rUr tiab *Wlrstd ,u ur this mss, to rawns MU PXOPOrW AW Mxturts placed tV Less" �a soid I=ds, Ilucludir. -be riot tu dnw AM r 4wv* all OAA . 3has 1"+i4%ired W :fir# 1,9sum 1,9 vill bury all Pie UMM f=law det th Al no Well shall to si.tlk� tats 6. IU rIAU of either parfW hersuder sey be, aswircmdi in wW& of ja PUTts Md 'Chas he4 wd bb&U sntrad U the bdn# s etoewMn sad aaM.OM of the pa"Ift bouts ht no chop sr div$a-,ay Is Owftvslti.P Of tie IAVdf reetulae or xe4prettttess hMvW ska a op-4ftts is et land :be abuousm, or awpuix tba Ashu of L"1000 40 B* " the t ,63`43 0f J „ba 1,MMU or MW Intor"t Urvalve awl tiS 10g '0 1 i bo farm WtW a 0a�t'4 -ad COW 4 SU rawaded 1"Stf"00140r all: covet s and etll, OUW 0080$BW OvIdOw Of +rt W UWWCWs iderAtaamr err *Alec at odd righta. In %her shut at the W040MOO OC Aar Uee. as lttr a W.Mmsd Mrum of add I&*, tw rookou pwat"O bail maw altoll be 4VwftmdIU OMM the SOPOs+sl, aaae NOU ONUO4t ratnAW aem"- ift to the eeWERA es 0 IF - of moo rod detwIt is gusto! 1 %W ueta I to Gut .f,rs” then Aubw of Oumw le s4ettold -amrs hare+o>: aw. I& oso toss" as su" this low,% in WWAM or I& ¢mss Low" Shall va volit'"d of *I' Obu.14%om .ith Mpwt is tba ase34 3,rtiw err F-rWOM avisirsq st"K t to the date ett 7. All exWrass Or iMPUOd eMr4aata Of this laps shstl bs pub .U" to erll .ate Md o4tste jaws 9,xao44dt's *M !Wj" or 3aV4U*A,.:tafre a" Lemma OWU awt, be !cold umba a la dowavo tsar teetlu" to saw' th ""i0t it a** pliaaeaa is prevent" bye or if snob failure is the result afs any such laws order, rules or reguk timns S. sasses hereby earrants and agrees to defame the title to anti land and agrees tbat i asses at its option way disehargo OW tans mer61116e es ether jigs unen the land, sith" in whole or in parts end be ssbreptsd to seek items with the rl&M to emfo"m @,me, and apply r+antals sad royaltiat accenting her" Winder toward eAtisfying some. n"Out impLYLwat of Los—Ia rights under the warranty im event or failure at titlos it is agreed that if Lesser enema an interest in said land Iomm, than the emtire fee siapls rotate, then the royalties and rentals to be paid by Lessee to Lomsor shall be redumsd pnopertiseately. y. It is agreed that smy and all operations by dw + -aseam Wehall be "a- dust" an said property is sueh mamaer me not to interfere with the normal ope,stia" and use, of the deals" lauds as the muaieipal airport facility of 4AMors and +,eases, in making this sautes agrees that the development of said lands for mineral purposes em located to re approved by lessors will not in AW canner interfere with, enslsst nor retard the use of the lead hereby demiad As an airport fyasility of the amity of pass jWJ&ti, and lee*or agrees that it Mill. during any swilling eperst on, direst traffic wal0h may be entering or leaving said airport in euoh MUMMY as to faeilitatm the driliinf of nay well an the demiesd promises, witkt safety both to air traffic and to the necessary oquipreut of Lessee engaged in the dr1111W operatio4 and in such mamnor u will net losses the use of the airport fecility of Lessor. All operations ahan be **&dusted in aonforeity With regulatiose provided by vily Oldimaneo. lily Lessee eggs" to marry and loop in fain forms sad offset during the tern of Ohio.J,ea"olio liability imsurkwe of 4250&WO.00 to Amy one person and/or 4250,000.W for aria sums au*idents in a *empmey er caapAaies aa*eptable to lessors such polieiss to be surrsndersd to the .i W of Corpus Whriatt for irrpooticm and appresl, prior to tkw sat of drilling operatioes. Lessso agrees to o*Wwt its operations in amok manner ae not to interfere with the use of the tir' pest fes"Ity of s.sseor as the mrmioipal airports with se�fety to traffic entering. lsaving and using the airport. 11. As am siditiasal eoaaidoratien for this .lesser therm, shall be paid amtk to the tiity of Corps Ghristi• Lessors the varlet talues as rev to pipe line or sterug* or the pipe item easspuW. -ow-sixteenth of "Veen oigkts part of all oils gas, and other minerals, Molusive of oil sad gu nand for fuel and 4peratisg said premises, 'Blast may be prodnood and saved tram said premises under the terms Of this 14600- There shall under me oiremsstameve be any obligation or liability to pay said ocatingowt consideration save from the value of the oil, gas rod minerals sotually prodsaed and sav4d, as set out &ban* 12e In the event no oil, gas or other mineral is being pradfwrd and nastob and rrem the above described land, and &L&Ad a wall or walla capable of producing Ps in paying aivamtities produce gas only, and such gam be not sold or used, Lg9N cry pay in lies at ro alty a sum equivalent to Ave 13o1lars (0540) per aorr per sell per year, for a poried not wwosdiug two (d) years- Us at the end Of suoh two (2) year period, suoh gas produced be still not sold or tsed, then Lessor shall have the option of paying to j.*4te0 the aetkml oust of drilliog and oasapietiom *t au®h sell or sells so capable of produci, gas in paying quantities and upon the eaer- ciao of 6u4h option mad payment of such nests, this loses shall be cancelled and of no furF.taer forco and effect. Should + -rssor decline t0 worsise such option to terminate this louts, this lease shall cautious in full a`ormo and Offset so long as +;esaoo continu4e the making of said &Usual payments in lies of rwyaliky- in the event say such Meant in lieu of royalty is made, if and when mode, as to the year for vkioh payment is node, it trill be considered that gas is bola& produeed within the amazing of :h9t h 2 hovoef* Irj- It to striattlyr understood that the above described land end this ail and gas IOUs ors subsoet in all things to that oart6im egreometad 0rsrreon the I—*or and the United Staten of aseerioa, known as tbs Ai-t Agreement or hasa- Iutiom, adapted and air roved by time City Couooil of the Aty of 4xpu 6hristi, Tesas, on AuV t 7, lS4A- 14. It to oz T sasly agreed by the pansies berets treat no strwotmre or ob- etruotioa, tomporary or otherwise, Noll be erected within two hatadred fifty (250) featperpoodioul" distanoo from mad an each aids of the senter Itam of all romsays existing or proposed, and their extensieve to the airport bandanas, nor sit-in one hundred tmsmtyrfive (125) feet perpendicular diotwwo from and .n mash side of the *enter line of all tasimsys, nor within two hundred (200) feed of any build - ings or parking aprome 150 Aloes it is agreed that, in the svemt a well is drilled on time loosed areas then such drilling sposations shall be prosecuted continuously until some results in produstlem, or in a dry Yale. A11 temporary structuree used in such drilling operations shall be painted and lighted in seek maw,sr as to prseesibod by the Civil Aeronautics AdaWstrdtiass andlUrthsr pre - wised that no permanent strustures of any kind us" in the devslop ownt # pro- duction* or transportation of oils w" and other minerals shall be placed an the abevs doocribed land in such m zwer as to interfere with or introduce basard to the operation of aircraft. 16. It to further agreed tints in this event asy drilling opsratiase for ails gas or other adoorals result in production. losses at its oral cat pones, shall ims"lwtely remove all temporary structures and place all somi.- psrwanemt or permanent equipment in such manner as will set interfere with or introduce any hasard to the operation of aircraft. In ovwmt scab drilling operations result in a dry Yale. then lseasis shall at his awn expense invadi- atmly rsmee all low"rary structures, used In such operation and level the area so :,hat it may safely be used for lending or taxiing aircraft. IN tIM S ft" Wk. this instrument is executed an the date fi ;'st abow written. A i` 4TI My- V7 TU STATE Of MAS COUMY OF ik ncss $ TR CITY OF GORM CURISTIs Ti" irises by city r bS1099 MR. the undersigned authority, a Mobary kablie is and for said Coawrty and status an this day po#sesally appeared W. be Colliers City +meager of tbs City of Corpus Qwtatis a wumicipal oorposaMoas known to rr to 'bite the penes slows amws is subsoribod tot he foregoing instruments aW acknowledged to ns Umt h# exeD ated the pale as for eat &M 44ed of safd 4ity of Gerpum Cjwjstj& fie, for for purposes and osraadoratfma therofn sxproess46 and in tbo Capacity themin stated* tiIVU i NDa ur W "s) A' + SML a? "kill';L0 this day of s IW. ,. TAR STAA OF T" i BA, V lf.' MR, the usdarsi&aed wAhsKty, a So" k4tUie J*. &ed for said County and State, tan tkis day peme ably appeared daak *ftMbt! and &Utttts Qrelnaa *Isla hmm as y. G. OxW* % Jumm to m to be the feWSKS+aiasse Mutes;" subserlbed to tdxa fora Lastrx s and aoimOWl*d &sad to as that tbsyaan esmtsd the sane fer the pw"as and: asesfdera.UQft tU*rwfe ORPOsssd Wd in tbs eaaprsity tswrrefn stated.. GIVU OW,',Mh MY };dAN) U . *,AL ,ax' A t,. Vii* thif day at • 1950. NdSwr a to Cealwy, taeat � j