Loading...
HomeMy WebLinkAbout03098 ORD - 07/24/19514 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON H$HALF OF THE CITY OF CORPUS CHRISTI, TEXAS, TO EXECUTE AN OIL, GAS AND MINERAL LEASE WITH A. W. GREGG, COVERING 518.2 ACRES OF LAND WY OF THE JUAN, MIGUEL, PEDRO AND NEPAMUCENO DELGADO GRANT, ABSTRACT N0. 4, SAN PATHICIO COUNTY, TESAS, AND BEING A PORTION OF 'SHE STATE PARK AT LASE CORPUS CHRISTI(MATHIS LM) FOR AND IN CONSIDERATION OF $5oo AND ROYALTIES AND OTHER CON- SIDERATION STATED IN, SAID LEASE, ACCORDING TO THE TEHMS AND CONDITIONS STATED '!HEREIN. A COPY OF WHICH LEASE IS ATTACHED HERETO AND MAEE A PART HEREOF; AND DECLARING AN MORGENCY. BE IT ORDAINED HY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager of the City of Corpus Christi be, and he is hereby, authorized and directed for and on behalf of the City to execute an oil, gas and mineral lease with A. W. Gregg, cover- ing 518.2 acres of land out of the Juan, Miguel, Pedro and Nepamuceno Delgado Grant, Abstract No. 4, San Patricio County, Texas, and being a portion of the State Park at Rake Corpus Christi (Mathis Lake) for and in consideration of $500 cash and royalties and other considera- tion stated in said lease, according to the terms and conditions there - of, a copy of which lease is attached hereto and made a part hereof. SECTION 2. That the necessity of obtaining revenue from landa owned by the City creates an emergency and an imperative public neces- sity requiring the auq) eneion of the Charter rule that no ordinance or resolution be passed finally on the date of its introduction and that such ordinance or resolution shall be read at three several meet- ings of the City Council, and the Mayor, declaring such emergency and necessity to exist, having requested the suspension of said Charter rule and that this ordinance be passed finally on the date of its introduction and take affect and be in full force and affect from and after its passage, IT IS ACCORDINGLY PASSED AND APPROVED This them —day of July, A. 51. (i MAYOR N�Re •T T: CITY OF CORPUS CHRISTI,TEXAS i acre ary APPROVED AS TO WGAL FORM; orney 30 9g Corpus Christi, Texas TO THE MMERS OF THE CITY COUNCIL Corpus Christi, Texas Gentlemens 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, �09g 'C ' City of Carpus Christi, Texas The Charter rule was suspended by the following vote, Leslie Wasserman Jack DeForrest Barney Cott Sydney E. Herndon �. ' George L. Lowman The above ordinance was passed by the following votes Leslie Viasserman Jack LeForrest Barney Cott_ Sydney E. Herndon George L. Lowman �(w� �09g -f) bgd,d S 17 __ _ ,�_e7 Lest o purpose of investigating, - '0"n g' pr 'pipe lines, building tanks, power stations, telephone H ne AWAVIO-41" 11111m - - -I - eta i h6o.,ai',iW o.h,'jgL1s.' for and producing i fl, gmsa h I all k [Feats ' ( , 7_. Al 4 T .'T4PT: 5aore'qr lase, 9f J�L�i I 1 Iigiisl, 4,jL being the- th6'Citjk`,6f­,,,- :-193-4i L& re&i-ded in #61u�4 3.10,' ajes 60 and 6l� b ed dated P _P Dead ledords, of, ;S P, at ricib T or; less', _O�Lt.: Miguel, P 'Napakudem Delgado Grant;. tAbatraet: J - - -­ —Y and o­'4`-'b6ijig the' aami tract�,6f d , to Centr4 �Lovpqr. and 9 L*Lght,-06mpamy--liy,,dood,da:t4td :L93_0, ., ard,,repordod - o e 6, pages 593,, Reed Reo'o'rd'x "ItIb'TROT i f,,,65.5: of %li�nd' �ui 'of, 'the- Jua#i• Pedro Miguel indiisjiig6ipo,�,Oelgado �4 j,� being same tract of land ;'doi&eyqd, to, the, City, of, Go: 'Abattact Not VP6 ChRiaL, d ' da ted * Augi' dt U , 1934'­—'and' r- s, co;id_ ed in - _,!05s pages -153454,4e6d Iicordi of San Fitii e o GdfuiV "TwEd " "" ­n 7, cs,� U combined I�Oie .8.2. �w�i more, or ease,,,,K- �Ix#e trai� at total of _51, of land , said rand being" j " ' to tbb op en 'r � a 'jetions,'and re s6rt�dtib on - "tain in th ema P a 6�v a _d as t6 tb­ it y 0 f c 0 Ch ti aboVe �af st d 1, all uts eas d _0= aumment r TE)6�S STAN�ARD u. GAS AM L A ast i .0 A, - f, µ J %:671_ _xP1JT# amm wGW_ 21 M, -f) bgd,d S 17 __ _ ,�_e7 Lest o purpose of investigating, - '0"n g' pr 'pipe lines, building tanks, power stations, telephone H ne AWAVIO-41" 11111m - - -I - eta i h6o.,ai',iW o.h,'jgL1s.' for and producing i fl, gmsa h I all k [Feats ' ( , 7_. Al 4 T .'T4PT: 5aore'qr lase, 9f J�L�i I 1 Iigiisl, 4,jL being the- th6'Citjk`,6f­,,,- :-193-4i L& re&i-ded in #61u�4 3.10,' ajes 60 and 6l� b ed dated P _P Dead ledords, of, ;S P, at ricib T or; less', _O�Lt.: Miguel, P 'Napakudem Delgado Grant;. tAbatraet: J - - -­ —Y and o­'4`-'b6ijig the' aami tract�,6f d , to Centr4 �Lovpqr. and 9 L*Lght,-06mpamy--liy,,dood,da:t4td :L93_0, ., ard,,repordod - o e 6, pages 593,, Reed Reo'o'rd'x "ItIb'TROT i f,,,65.5: of %li�nd' �ui 'of, 'the- Jua#i• Pedro Miguel indiisjiig6ipo,�,Oelgado �4 j,� being same tract of land ;'doi&eyqd, to, the, City, of, Go: 'Abattact Not VP6 ChRiaL, d ' da ted * Augi' dt U , 1934'­—'and' r- s, co;id_ ed in - _,!05s pages -153454,4e6d Iicordi of San Fitii e o GdfuiV "TwEd " "" ­n 7, cs,� U combined I�Oie .8.2. �w�i more, or ease,,,,K- �Ix#e trai� at total of _51, of land , said rand being" j " ' to tbb op en 'r � a 'jetions,'and re s6rt�dtib on - "tain in th ema P a 6�v a _d as t6 tb­ it y 0 f c 0 Ch ti aboVe �af st d 1, all uts eas d _0= aumment r This lease covers all of the land described above, . the - named- wwey=oc- other- wrxey -o wcvnYa Thia is a lease in gross and not by the acre and the bonus money paid and the rentals provided for shall be effective to cover all such lends irrespective of the number of acres contained therein: and for purpose of calculating the payments hereinafter provided for, the land included within the terms of this lease is estimated to acres, whether it actually comprises more or less - 2. Subject,to the other provisions herein contained, this lease shall be for a term ofAit years from this date (called "primary term") and as long thereafter as oil, gas or other mineral is produced from said land hereunder, or drilling or reworking operations are conducted thereon. 3. The royalties to be paid by Lessee are: (a) on oil, onaeighth of that produced and saved from said land, the same to be delivered at the wells or to the credit of Lessor into the pipe line to which the wells may be connected: Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas including casingbead gas or other gaseous substance, produced from said land and sold or used off the premises or in the manufacture of gasoline or other pproduct therefrom, the market value at the well of one - eighth of the gas so said or used, provided that on gas sold at the wells the royalty shall be one - eighth of the amount realized from such sale; where gas from a well producing gas only is not sold or used, Lessee may pay as royalty 5100.00 per well per year and if such payment is made it will be considered that gas is being produced within the meaning of Paragraph 2 hereof; and (r) on ell other minerals mined and marketed, one -tenth either in kind or value at the well or mine, at Lessee's election, except that on sulphur the royalty shall be fifty cents (500 per long ton. Lessee shall have free use of oil, gas, coal, wood and water from said land, except water cram Lessors wells, for all operations hereunder, and the royalty on oil, IIs and coal hall be computed after deducting any oo used. Le r shall have the privilege at his risk and expense of using gas from any g •d.land_fo� ' dg hts ' hq�n d��Rin thereon wt of any surplus gas not needed for operations hereunder. EFL 9Siii i1H > R+r 3�>i76iw 4. If operations for drilling are not commenced on said land on or before one year from this data the lease shAll then ter1gLna�aglp both UOZ?W r'es. u_nle�s an or before such anniversary date &al Y o jgpder to Lessor or to the bredit of Lessor i - _ 8M Bank ar W&O Texas, (which bank and its successors are Lessor's agent and shall continue es the depository for all rentals payable help WMMI �f1,p�vn* d ar the rentals either f6YY� rf�7Ri/ noth by eYByce or by the death or incapacity of Lessor) the sum of - ( (herein called rental), which shall cover the privilege of deferring commencement of operations for drilling for period of twelve (12) months In like manner and upon like payments or tenders annually the commencement of operations for drilling may be further deferred for successive periods of twelve (12) months each during the Primary term. The payment or tender of rental may be made by the check or draft of Lessee delivered to Lessor or to said bank on or before such date of payment. If such hank (or any successor bank) should fail, liquidate or be succeeded by another bank, or for any reason fail or refuse to accept rental, Lessee shall not be held in default for failure to make such payment or tender of rental until thirty (30) days after Lessor shall deliver to Lessee a proper recordable instrument, naming an- other bank as agent to receive such payments or tenders. The down cash payment is consideration for this lease according to its terms and shall not be allocated as mere rental for a period. Lessee may at any time execute and deliver to Lessor or to the depository above named or place of .cord . release or releases covering any portion or portions of the above described premises and thereby surrender this lease as to such portion or 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. Should any well drilled on the above described land during the primary term before Production is obtained be a dry hole, or should pro, duction be obtained during the primary term and thereafter cease, then and in either event, if operations for drilling an additional well are not commenced or operations for reworking an old well are not pursued on said land on or before the first rental paying date next succeeding the cessation of production or drilling or reworking on said well or wells, then this lease shall terminate unless Lessee, on or before said date, shall resume the payment of rentals Upon resumption of the payment of rentals, Section 4 governing the payment of rentals, shall continue in form just as though there had been no interruption in the rental payments If during the last year of the Primary term and Prior to the discovery of oil or gas on said land Lessee should drill a dry hole thereon, or if after discovery of oil or gas before or during the last year of the primary term the production thereof should cease during the last year of said term from any cause, no rental payment or operations are necessary in order to keep the lease in force during the remainder of the primary term. If, at the expiration of the primary term, Lessee is conducting opera- tions for drilling a new well or reworking an old well, or if, after the expiration of the primary term, production on this lease shall cease, this lease nevertheless shall continue as' long as said operations continue or additional operations are had, which additional operations shall be deemed to be had where not more than sixty (60) days 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. In the event a well or wells producing oil or gas in paying quantities should be brought in on adjacent land nd- 'thin- one- hundre, Lfifty�W5O�facs•of -sod draining the leased premises, Lessee agrees to drill such offset wells as a reasonably prudent op- n'would drill under the same or similar circumstances After the distovery of oil, gas or other mineral in paying quantities on the land em, braced by this lease, Lessee shall reasonably develop the acreage retained hereunder, but in discharging this obli ation Le shall fn no event be required to drill mo{�nWL{Jjp W�,f(t,K a JWWWepper and capab q�il ap neral fn nay mg_guantfties 6. After production Lessee shall have the right without Lessors consent to surrender all or any po tfo f the leased premises and be re- lieved of all obligation m to the acreage surrendered. Lessee shall have the right at any time during, or/after the expiration of this lease to m move all property and fixtures placed by Lessee on said land, including 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 hundred (200) feet of any residence or beta now on said land without Lessor's consent - 7. The rights of either party hereunder may be assigned, in whole or in part, and the provisions hereof shall extend to the heirs, mcces- sors 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 portion of said land, the rentals pay- able hereunder shall be apportionable among the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other leasehold owners hereunder. In case Lessee assigns this lease, in whole or in part, Lessee shall be relieved of all obligations with respect to the assigned portion or portions arising subsequent to the date of assignment. 8. All express or implied covenants of this lease shall he subject to all Federal and State Laws, Executive Order., Rules or Regulations, and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by, or if such failure is the result of, any such Law, Order, Rule or Regulation. 9. Lessor hereby warrants and agrees to defend the title to said land and aareklgtyhyss�e •at�it?,oQ{+w+ -m!y, dfecher�raayettltt,-o~{tpa i'"aragraph °� ricrac t •ere "is hereby agreed be p - essee as $l: -;ta the Gity of Coipus'Ghrietii;• a; municipal corporations -Nuscea county, Texas * - lesaorgr- .one -- 3`it thirty-second -of eight-eighths (1 /32-of 8%8) of,,all oil, - gas , - casing-head ,gas�- or.other,__. i(t; gaseous, substances producekand� saved -from is-aid land, the gaole.to be deliveired at; ^the.sxel] mz` z or ,cells OT tO the credit of lessor nto the pipe •lifid to° ithIcki it+e x41] 'or :wel]`s "; mar_ ,connected. ,, _ __. _ __ -- -•- -- -- -- ), $a; It is agreed ,that „amp and aU, operationa,,,.by, the lessee, ehall be conducted so as not to in anywiee endanger.ihe aifety of,, or in anyway, contaminate or threaten to contaminate the property of lessor or its Rater supply, and to guarantee the performance of this provision, Including the taking of all precautions, the lessee agrees to deliver a bond in an amount acceptable to the lessor, prior to the commencement of each well. All of the provisions of this lease shall inure to the benefit of and be binding upon the parties hereto, their heirs, administrators, successors, and assigns, IN wj,T SS WkkEREOF, Thi -i instrument is executed 'on the date first above written, ATTEST: CITY OF CORPUS CHRLSTI, T&W, Lessor $Y City Secretary W. 13. Collieri City ManageF APPROVED AS TO LF.=- FORM: A. W. GREGG, LESSEE City Attorney A. W. Gregg THE STATE OF TEXAS Q COUNTY OF NUECES 6 BEFORE ME, The undersigned authority on this day personally* appeared W. B. Collier, City Manager of the City of Corpus Christi, Texas, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and ac- knowledged to me such instrument to be the aet,and deed of said municipal co3p oration and that he executed said instrument as the act and deed of said City of Corpus Christi for the purpose and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This the day of , 1951. NOTkRT PUBLIC in and for Nusces UoUnty, Texas THE STATE OF TEXAS Q COUNTS CF 0 BEFORE ME, The undersigned authority on this day personally appeared.A. 'K. Gregg, known to me to be the person whose name is subscribed to the foregoing instrument and ac- knowledged to me that he executed the same for the purposes and consideration therein ex- pressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This the day of , 1951. O or e., un s A BIOCN COMPAHY-F MUSHLO IM Fidelity and Deposit Company HOME GFEres OF MARYLAND BAL77MORE BOND THE STATE OF TEXAS COUNTY OF NNECES WHEREAS, The undersigned principal, A. W. Gregg, is named as Leases in a certain oil, gas and mineral lease of even date here- with, granting to the said A. W. Gregg, and by the City of Corpus Christi, the right and privilege of drilling for oil, gas and other minerals on certain lands of the City of Corpus Christi, described in said lease and which lands are adjacent to La Fruta Dam and Nueces River, which dam impounds the water reservoir and which river is the source of water supply for the City of Corpus Christi, and WHEREAS, As a part of the consideration for the said lease, said A. 14. Gregg agreed to execute a good and sufficient bond in the aggregate penal sum of Fifty Thousand Dollars for the protection of the Lessor, The City of Corpus Christi, and for the protection of said reservoir and source of water supply; and WHEREAS, By a certain Ifeed of Trust dated Junel,l1948, and supplements thereto, the City has contracted among other things that the lease of any of its lands will not in any manner divert, endanger, or contaminate the City's Water Supply or Water Transportation Facilities; NOW, THEREFORE, In consideration of the premises, and other good and valuable considerations, the undersigned principal, A. W. Gregg, and the undersigned surety are held and firmly bound solely unto the City of Corpus Christi, Texas in the sum of Fifty Thousand and No /100 Dollars conditioned that if the said A. W. Gregg, his heirs, executors, admini- strators, successors, and assigns, jointly and at all times, will keep and perform his said obligation to the end that no operations under said lease, or operations in connection with any other actions, voluntary, natural, or otherwise, will to any extent damage, or in any manner divert, endanger, or contaminate the City's Water Supply or Water Transportation Curt — 14.1 -I I—IS �' D paz5:°�`in:,a's Fidelity and Deposit Company of Maryland page-m- .. Facilities then this obligation shall be void; otherwise to remain in full force and effect for a period of one year from date hereof. Any claim filed hereunder must be discovered, reported and perfected to the Princi- pal and Surety within said period of one year from date hereof. DATED This 27th day of March, 1950 FIDELITY AND DEPOSIT COMPANY OF MARYLAND ur U. Thompa n, Attorney-;A-fact This Power of Attorney limits the act of those named therein to the bonds and undertakings specifically named therein, and they hate no authority to bind the Company azzeept in the manner and to the extent therein stated cmatea[W.ton rzz.u4 POWER OF ATTORNEY Fidelity and Deposit Company of Maryland HOME OFFICE, BALTIMORE, MD. KNOW ALL MEN BY THESE PRESENTS: That the FLnmTy AND DEPOSIT COMPANY of MARYLAND, a corporation of the State of Maryland, by D. C. HANDY, Vice - President, and G. ROBERT HOWELL, Assistant Secretary, in pursuance of authority granted by Article VI, Section 2, of the By -Laws of said Company, which reads as follows: "The President, arFirst Vice- Presidengor Second Vit�President, orany one of theadditional Vice- Presidevtespedallyy thar- ized so to do by the Board of Directors or by the Executive Committee, shall have power, by and with the on an Grace of the Sec- re tary or any one of the Assistant Semetaties, to appoint Rendent Vice- Prandenta, Resident Assistant Searemsice aad Attorneys. m -F t ns the business of the Company may reywre, o m amhvrire any person or p to execute ov behalf of the Co y an�boods, uudertaldngs, recogn�mn , stip. tans, pe mics, contracts, agreements, deeds, and release, and assignmcota o! P dge te, demee,, mortgages and tnscmmenro in the varms of mortgages, and also an ocher instruments and date at. whici, the business of the Company may require, and to affix the seal of the Company thereto." does hereby nominate, constitute and appoint Arthur S. Thompson, of Houston, Texas, its true and lawful agent and Attorney -in -Fact, to make, execute, seal and deliver, for, and on its behalf as surety, and as its act and deed, any and all bonds and undertakings. And the execution of such bonds or undertakings in pursuance of these presents, shall be as binding upon said Company, as fully and amply, to all intents and purposes, as if they had been duly executed and ack- nowledged by the regularly elected officers of the Company at its office in Baltimore, Maryland, in their own proper persons. The end Assistant Santary does hereby certify that the afamgoing is a true copy of Article VI, Section 1, of the By -La of emd Company, and u now m force. IN WITNESS WHEREOF, the said Vice - President and Assistant Secretary have hereunto subscnbed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSIT COMPANY of MARY"ND, this 31st day of August, A.D. 1942. ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND (SIGNED) G. ROBERT HOWELL By D. C. HANDY (SEAL) Assistant Secretary Vice-President C— oe Bu.a tresao ) as. On this 31st day of August A D. 1942, before the subscnber, a Notary Pubbe of the State of Maryland, in and for the City of Baltimore, duly comm,ssfoned and quahfied, came the above named V,re- President and Assistant- Secretary of the Fra3ury Axe Deposit COMPANY OF MARtz —. to me personallyy known to be the md,v,duals and often described in and who tad the pracalmg mstmment, aad they each ackao,],dged tba uec lion of the same, and being by me duly swam, wvemBy and each for himself deposeth and smth, that they are the said officers of the Company aforeNod, and that the seal affixed to the prexd,vg mstmment fs the Corporate Sul of said Company, and that the sad Corporate Seal and their signature, as each officem e duly aFed and subambed m the said inatmment by the authority and direcuon of the card Corporation. IN TssrmoNP WDEREOF, I have hereunto set my hand and affixed my Official Seal, at the City of Balumom, the day and year Fast above wntteo. (SIGNED) E. FRANCES APPLEGARTH (S —) Notary Public My Commission Expires May 3, 1943 CERTIFICATE ' __....... Assistant Secretary of the Fromm AND Daeossr CourANr or MARYLAND, do hereby certfy chat the attached Power of Attorney dated August 31, 1942, in behalf of Arthur S. Thompson, of Hoccum, Texas, e a true and correct copy and that same has been in full force and effect since the date thereof and u in full force and effect on the date of this certificate; aad I do further certify that the said D. C. Handy and G. Robert Howell, who executed the attached Power of Attomey " Vice-president and Assistant Seenetary, respectively, were on the date of the execution of the attached Power of Attorney the duly elected Vice-Prendent and Assistant Secretary of the Fmv.— AND DEFousT Con xxv OF MAaYI.AND, and that the said D. C. Handy was one of the additional Vice- Presidents specially authorized by the Board of Directors to appoint any At- tomey -in -Fact ar to authorize any person or pawns to execute an behalf of the Company any bonds, recognize ces, stipulations, undertaldvgs, deeds, releases of mortgages, covtmets, agreements and pollde,, and to a(iur the seal of the Company thereto as pro- v,ded in said Article VI, Section 2 of the By -Laws of the F— AND DEPOSIT CouFANY of MARYLAND, IN TReso,mr, Wxarmor, I have bacunttoo ,bsmhed my name and -[used the mrpomt�e yfmI of the said Company % ` ---- - ------ �...- L =G Arnrtan eerrwry - --