HomeMy WebLinkAbout02948 ORD - 12/12/1950,• 12/12/5U� (5�
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER
FOR AND ON BEHALF OF TEE CITY OF CORPUS CHRISTI
TO EXECUTE A DIVISION ORDER TO SOUTHERN MINERALS
CORPORATION AUTHORIZING THE RECEIPT OF OIL FROM
OPERATIONS UNDER THAT CERTAIN OIL AND GAS LEASE
TO GUY PATTERSON DATED JANUARY 31, 1950, AND RE-
CORDED IN VOLUME 108, PAGE 150 OF THE OIL AND
GAS LEASE RECORDS OF NUECES COUNTY, TEXAS, COVER-
ING 10.243 ACRES OUT OF BLOCS 19 OF J. C. RUSSELL
FARM BLOCKS SITUATED IN NUECES COUNTY, TEXAS;
PROVIDING FOR ROYALTY PAYMENT TO CITY OF 1 /8TH
AND LEASEHOLD ESTATE OIL PAYMENT TO THE CITY OF
1/16 of 7 /8THS 0. P. UNTIL SAID INTEREST HAS
PAID THE SUM OF $35,000, AND AN EFFECTIVE DATE
OF SEPTEMBER 16, 1950; SAID DIVISION ORDER BEING
MADE A PART HEREOF; AND DECLARING AN EMERGENCY.
WHEREAS, The City of Corpus Christi did grant an oil and
gas lease to Guy Patterson of Eastland County, Eastland, Texas,
covering 10.243 acres located in Nueces County, Texas, and being
described as follows
10.243 acres out of Block Nineteen (19) of J. C.
Russell Farm Blocks situated in Nueces County,
Texas, bounded on the west by Savage Lane and on
the south by the W. Fraser 16 acre tract, and being
in two parts, described as follows:
TRACT Is Consisting of 5.243 acres, described in
ee ated September 2, 1944, from Guaranty Title
and Trust Company and of record in volume 3, page
312 of the Deed Records of Nueces County, Texas.
TRACT II: A tract of 5.0 acres acquired by deed
UaMeT7U41Y 8, 1948, from the United States Govern.
ment to the City of Corpus Christi, and of record
in volume 403, page 135, Deed Records,, Nueces County,
Texas.
aforesaid lease being recorded in the Oil and Gas Records of Nueces
County, Texas, at page 150 in Volume 108 of said records; and
WHEREAS, Thereafter drilling operations were prosecuted
under the terms of said lease, and there has been production from
said operations under said lease; and
WHEREAS, It now becomes necessary to execute a division
order to the Southern Minerals Corporation as the purchaser of oil
from said lease, so that delivery may be made to said corporation
by such pipe line company or companies authorised by Southern
Minerals corporation to so deliver said oil from said leased premises;
a
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF CORPUS CHRISTI, TRYASs
SECTION I. That the City Manager be and he is hereby
authorized and directed for and on behalf of the City to execute
a division order to said Southern Minerals Corporation, for the
purposes and consideration and under the terms of the division
order which is attached hereto and made a part hereof, to -wits
-2-
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Mem 13—rm_ a m —re
SOUTHERN MINERALS CORPORATION
DIVISION ORDER _
TO THE SOUTHERN MINERALS CORPORATION; Dab November 10 __19_L0__
CORPUS CHMS L TEXAS
The undertiveed certify and guarantee that they en the legal ownmr ef teed hereby tnrraat the title to Weir r Pacom
rntmette u oat out below in an ml Produced from ..ell, o,—,ed by A. 34_ Gze gg
on We farm or. Cite o£ Corpus Christi
Anrrea County, m the State of Texas deteribed a fell —:
10.243 acres out of Block Nineteen (19) of J. C. Russell Farm Blocks
situated in Nueces County, Texas, bounded on the west by Savage Lane
and on the south by the W. Fraser 16 acre tract, and being in two parts,
described as follovrs:
TRACT l: .Consisting of 5.243 acres, described in deed dated-September 2,
79M.—from Guaranty Title and Trust Company and of record in volume 3,
page 312 of the Deed Records of Nueces County, Texas.
TRACT IYa A tract of 5.0 acres acquired by deed dated July 8, 1948,
Prom the United States Government to the City of Corpus Christi, and of
record in Volume 403, Page 135, Deed Records, Nueces County, Texas.
Until further vaieea notice , received by you from the u dereigned you ere authorized to recefre oil thaefram, giving
cretin at duetted below, effective 7.00 AM, September. 16, ig r _
CREDIT PixlTZeaPPTr P. C. ADDRESS
City of Corpus Christi, Texas, a
Municipal Corporation 1 /8th R. I.
City of Corpus Christi, Texas ; 1/16 of 7 /8th. O.P.
(Until Southern Minerals Corporation
has been furnished with satisfactory
proof that said interest has paid the
som of $3$,000., or with a release from
the holder of same, then to A. W. Gregg,
his heirs and assigns.)
L. D. French 22/32 of 8 /8ths O.P.
(Until Southern Minerals Corporation
has been furnished with satisfactory
proof that said interest has paid the
total sum of $100,000., or with a re-
lease from the holder of same, then to
A. 1T. Gregg, his heirs and assigns.)
A. W. Gregg 17/128 of B /Sth. W.I.
hairs he1.11 wi g covenants dm arc parts of this division order, and shall be binding on the undersigned. their suet ,
1. Receipts of ml hereunder shall be by Southern Prpe tine Corporati on and/or other pe lino m other
authonzed by yen and shall, . endmced by its run tickets, 6e valid dolivery by the un�eraig.% Far your eeeouvt sad aueh
pipe line company and/or any oilier pipe line m other terrier so auiltorixed in your place end stead may datermiae the quehty
wd net quantity of ad received m accordance w,eh your local cola m force at the time; and eH shell be esteemed m treated
hen n «essary to make it marketable.
2. Abstracts and other evidenca of satisfactory bile will he furnished yon. In the event of a f. Hart to m emuish such
evid u of uilG or in the event o£ question or dispute t aqv time covicemivg tltiG or as to the right d any party claim -
myes 6. beau, fusnveshed �eym -t for the oil, you may hold the proceeds of the ml, mthaut interest, until indemnity satsf.' ony
3 Yau not nxpated t oil in ddf- gven him for fixed periods or to provide storege c ds[ W.
ce plan or otherwise except es ndGwhm yen shell now or hereafter se agree 'ring Unless Y mail or do r,or written
vatice m the contrary, ml rvn bertuvder ahaR become your property when dehverad to ruch pipe Ire romDmy md/or other
autirorued by you, a bang agreed, 6 er, the[ you may at any tame die timm receiving ad bare_ or upon maihng
o delivermg written notice to the undersigned e
4 - The undersigned, and each of them, guarantee d w.rsnt for your benefit and that of say pipe line mother carrier
authorized by van to transport said oil, {het all it tendered hereunder Les been pducad in acwsdence with the laws
and rules, reguletiont and Orden of any governmental body ar agency now having, or that may bereafter have, jurisdtcmes.
5 H m n royals; interests hereunder shell beta 6divsded you h ll 6a a the r;ght m require the '(tan dedgmtion
of a moron gent t yment for she venal holders of the r bd 'dad pomans tLarea[, and yw ehaR na 6e required
to make payment for the subdr.�ded ' t rest tmul such dmpretimr is furnished
6. Od which ra purchased by you hereunder at the ease when n is delivered to such pipe five oompeay end/m other carnet
e ehond by you eMil ba paid for to the er, their ro a a gm peanuts to their respxnva interest shown
above at the pnce ported by you for oil of tLe creme grant;, kind end q lily m tphe partsruIs fseld on the dqy when such oil
is veil 6y�mch W hne company and/or other comer eutitarized oy you, eymml to be made by check or draft welled
that Y may at Y ur tion, hold vnt6out interest,fand remit sheens- aanvually tar the gAe Pr:"1T. (e)v pths dee�c �utatioo
of month); accruals of amounts less than Tao Dollerc ($2.00), payment to be made on or before February 19th and August
19th
of each year in tine reamer shove pronded.
7. Yau shell net be bound by any ale or essigmnent of any intense in said we1L, or the production thereof, mtil written
sttl. thereof shell be turnuhed yon, together wnh an imenemevt m wnmg evidencing such sale or nssignmevt; it being under
ood that any vendee m assignee of any intemt m said wells, or the pductidn thereof, sbell take aubjac[ to the terms hereof.
8 Thu devuran order sbell become valid and binding w each and every own r above nomad as soon . signed by him,
her or r4 regardless of whether or v of the other above named owners have ngned.
9. The holders of tarminahlenotd v vemonary interests bove tout it agree that each will aoneblyvnotlfy
SOUTHERN 1bIINERAIS CORPORATION m wnmg hen ch 61ig ilom hevea been d dihe data the e e unary
serest shall be effective, and each agre m to save and hold harmless SOUTHERN MIN�PAI.S CORPORATION from any
liebsltty m case of Overpayment m mderpeymeet d to indemnify rt from any lass, cost or expomo owsioned by a any
such aver- or mderpapment. All notices rtlotrng thereto shall be addressed to SOUTHEAN M[NF.RAIS LORP M170N, Cor-
pus Christi, Tex.
f0 SOUTHERN MINERAIS CO1tPOMTION is heroby authenmd, et its election, to withhold from the proceeds eccrumee
hereunder, m any mderngned the amount of any aeverencG production, accu emn, or other u levied by or order authority of
the laws of Texa of the United Sates agoivst him fm and ov amount of 6sa mneas m said oil, Ian or lease and to pay
such nix or roses with the wsthheld proceeds.
The City of Corpus Christi under and by virtue of its general warranty in the oil and
gas lease from it to A. ' Gregg, hereby agrees to indemnify and hold Southern Minerals
Corporation, as the purchaser of oil from said lease, free and harmless from any damages
or claims based on possible defects in the lease title given by the said City of Corpus
Christi as result of the payments by Southern Minerals Corporation to A. W. Gregg of
the oil proceeds due him under said lease and this division order.
ATTEST* THE CITY OF CORPUS CHRISTI
By By
- - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The undersigned Mercantile National Bank at Dallas, Dallas, Texas, trustee for the bond-
holders in the deed of trust from the City of Corpus Christi, Texas, to it dated June 1,
1948, covering among ether lands the lands included in this division order, joins herein
at the request of Southern Minerals Corporation, but without any warranty as to the title
to the interests covered; it joining herein solely for the purpose of agreeing that the
above royalty and oil payment interests may be paid direct to the City of Corpus Christi,
until and unless it should receive written notice from this trustee to pay otherwise.
ATTEST( MERCANTILE NATIONAL BANK AT DALLAS
9u ---- -- By-
SECTION II. The necessity of authorizing the taking of
oil from the leased premises creates a public emergency and
imperative public necessity requiring the suspension of the Charter
rule that no ordinance or resolution shall be passed finally on
the date of its introduction and that such ordinance or resolution
shall be read at three several meotinga of the City Council, and
the Mayor, having declared that such emergency and necessity
exist, and requesting that said Charter rule be suspended 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 ACCORDIEGLY SO ORDAINED.
PASSED AND APPROVED, This the 17--rday of December, A. D.
1950.
W
z�
The City of Corpus Christi
ATTEST:
i
APPROVED AS TO LEGAL ROIU�;
(Aly A orney
Corpus Christi, Texas '
December t7% 1950
TO TEE MMERS OF THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
For the reasons sat 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, here-
by 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,
i
11A OR
City of Corpus Christi, Texas
The Charter rule was suspended by the following vote:
Leslie Waeserman
Jack. DeForrest
Barney Cott
Sydney E. Herndon
George L. Lowman [�= �
The above ordinance was passed by the follming vote:
Leslie Wasserman
Jack DeForrest
Barney CottiA—
Sydney E. Herndon
George L. Lowman
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