HomeMy WebLinkAbout03487 ORD - 06/10/1953AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON BEHALF
OF THE 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 A. W.
GREGG DATED JANUARY 214, 1959, AND RECORDED IN VOLUME 77, PAGES
23F-2241 OF THE OIL AND GAS LEASE RECORDS OF JIM WELLS CO.,
TEXAS, COVERING APPROXIMATELY 240 ACRES, MORE OR LESS, LOCATED
IN JIM WELLS AND SAN PATRICIO COUNTIES, TEXAS; AND SUPERCEDING
A DIVISION ORDER AUTHORIZED BY ORDINANCE NO. 27714 AS TO 113.1
ACRES OF LAND SITUATED IN SAN PATRIC10 COUNTY, DATED APRIL 1,
1950;. PROVIDING FOR ROYALTY PAYMENT TO CITY OF 1/2 OF 1/8 j.I.
(.0625) AND LEASEHOLD ESTATEOIL PAYMENT TO THE CITY OF 1/2 OF
1/16 OF 7/8 O.P. UNTIL SAID INTEREST WITH OTHER PAYMENTS HAS
PAID THE SUM OF $500,000.00 AND EFFECTIVE FROM THE DATE OF
FIRST -RUN OF OIL PRODUCED FROM SAID 113.1 ACRES OF LAND; 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 A. W.
GREGG OF HARRIS COUNTY, TEXAS, COVERING 240 ACRES, MORE OR LESS, LOCATED IN JIM WELLS
AND SAN PATRICIO COUNTIES, AND CONSISTING OF TWO TRACTS: TRACT I CONTAINING 21.8 ACRES
AND LOCATED ENTIRELY WITHIN JIM WELLS COUNTY, AND TRACT 11 CONTAINING 218.2 ACRES, MORE
OR LESS, LOCATED IN JIM WELLS AND SAN PATRICIO COUNTIES, BOTH TRACTS BEING DESCRIBED BY
METES AND BOUNDS IN THE AFORESAID LEASE RECORDED IN THE OIL AND GAS RECORDS OF JIM WELLS
COUNTY, TEXAS, AT PAGES 238 -2141 IN VOLUME 77 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 IS NECESSARY TO MODIFY THE DIVISION ORDER HERETOFORE EXECUTE; AND
WHEREAS, IT NOW BECOMES NECESSARY TO EXECUTE A DIVISION ORDER TO THE SOUTHERN
MINERALS CORPORATION AS THE PURCHASER OF OIL FROM SAID LEASE, SD THAT DELIVERY MAY BE
MADE TO SAID CORPORATION BY SUCH PIPE LINE COMPANY OR COMPANIES AUTHORIZED BY SOUTHERN
MINERALS CORPORATION TO SO DELIVER SAID OIL FROM SAID LEASED PREMISES;
NOW THEREFORE, 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
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 -WIT:
SECTION 2: 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 MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING DECLARED THAT SUCH
3 �� -
EMERGENCY AND NECESSITY EXIST, AND REQUESTING THAT SAID CHARTER RULE BE
SUSPENDED AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS
INTRODUCTIONS AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND
AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED.
PASSED AND APPROVED, THIS THE �_ DAY 9i 31
MAYOR
THE Cl F CORPUS CHRISTI, TEXAS
ATTEST:
CITY SECREfAR Vl.EGAL APPROVED AS T FORM:
CITY TTO Y
FOaia t3— pS_If'r,otq 6 CD. —Srn
SOUTHERN AHNERALS CORPORATION
DIVISION ORDER
TOTEM SOUTHERN MINERALS CORPORATION Date April 7 ig 52
CORPUS CHMSTI. TEXAS
T e,„,
The undersigned certify and guarantee that they „are the legal owners of and hereby warrant the title to their respective
intere:rs as set out below in all oil produced from wells operated by_A• W Greve
on the farm of =y of Corpus Christ I "B” Leasg
_= �''1'_.�tz'•t=y�" County, in the State of Texas , described as follows:
a:jrr:a *f lands being a part of the Southern part of a Four - League Grant to
- MIFI'Qte1, Pedro, Juan and Mepomecena Delgado, said survey being in San Patricia, County,
Te,,,:a.s. and about 10 miles North 40 West of the town of San Patricio.
;.idPJSTJ.s in the channel of the Nueces River on the Western boundary of the right -
T`� >.::r;: s3'. A. kL A. P. Railway for the Southeast corner of 94.2 acres which is a
P x, of ti:is survey originally conveyed by T. H. Mathis to J. T. Jamison by deed
r;:, o rr i I I.n. Voii,an e L. Page 254, Deed Records of San Patricio County, Texas;
THS-LiCE following said right -of -way North 31 degrees East 410 varas North 26 degrees
„t 1161 'varas to the Northeast covern of said 94.2 acres, a mesquite 6 inches in
, Jia, (:Yer marked X bears North 63 -3/4 degrees West 18-3/4 varas, North 24 -1/2 degrees
108 -1 /2 varas, an iron pipe on said right -of -way for the Northeast corner of
"f t° ES: - NC- ^°-_.h 56-1114 degrees West 987 varas to the Southeastern boundary of a 100 -acre
tra t of laws conveyed by the Mathis Estate to W. M and J. A. Henderson,
J16Q4 dU s #4 Soutbak4ora bo=d=y 107.3 mar Lo tye;
THENCE South 27 degrees West with the West line of said 94.2 acres at 611 varas
a hackberry (marked six hacks) bears south 52-1/2 degrees East 1 -1/2 varas at 646
varas the channel of said Nueces River and the Southwest corner of said 94.2 acres;
T'HUTCE down the channel of said river with its meanders to the place of beginning.
JYrwi a reie2sa srom Sala oanx is re—
. iy :oathei•n Minerals Corporation,
�:- to A. W. Gregg, his heirs or assigns.)
o1, of CYuisti, Texas 1/16 of 7/8 of 1/2 O.P.
(tlL.til olouthern Minerals Corporation has (.02734375) Corpus Christi, Texas
Y,e. -tr- '�4 °wLwhed a -release of this interest _
iiy of Gorpus Christi, then to A.
W. 0,regg, his heirs or assigns.)
:t'.;,- ,,G-Ay of C?o..r us Christi, Texas 1/8 of 1/2 R. 1.(.0625) Corpus Christi, Texas
W. E. 1/2 of 8/8 (.5000)
THIS DIVISION ORDER MODIFIES AND SUPERCEOES A DIVISION ORDER DATED 11/1/50 INSOFAR
AS THE 113.1 ACRES OF LAND OESCR I9CD HEREIN ARE CONCERNED.
The following covenants also are parts of this division order, and shall be binding on the undersigned, their successors,
heirs and assigns.
1. Receipts of oil hereunder shall be by Southern Pipe Line Corporation and /or any other pipe line or other carrier
authorised by you and shall, as evidenced by its run tickets. be valid delivery by the undersigned for your account, and such
pipe line company and /or any other pipe line or other carrier so authorized in your place and stead may determine the quality
and net quantity of oil received in accordance with your local rules in force at the time; and oil shall be steamed or treated
when necessary to make it marketable-
2- Abstracts and other evidence of satisfactory title will be furnished you. In the event of a failure to so furnish such
evidence of title, or in the event of a question or dispute at any time concerning title, or as to the r' t of any party claim-
ing hereunder to receive payment for the oil, you may hold the proceeds of the oil, without interest, until indemnity satisfactory
to you has been furnished.
3. You are not expected to receive oil in definite quantities or for fixed periods or to provide storage on the credit bal-
ance plan or otherwise except as and when you shall now or hereafter so agree in writing. Unless you mail or deliver written
notice to the contrary, oil run hereunder shall become ,your property when delivered to such pipe line company and/or other
carrier authorized by you, it being agreed, however, that you may at any time discontinue receiving oil hereunder upon mailing
or delivering written notice to the undersigned. -
4. The undersigned, and each of them guarantee and warrant for your benefit and that of any pipe line or other carrier
authorized by y'on to run or transport said oil, that all oil tendered hereunder has been produced in acwtdence with the laws
and rules, regulations and orders of any governmental body or agency now having, or that may hereafter have, jurisdiction.
5. I£ any royalty interests bereuuder shall become subdivided, you shall have the right to require the written designation
of a common agent to receive payment for the several holders of the subdivided portions thereof, and you shall not be required
to make payment for the subdivided interest until such designation is furnished.
6. Oil which is purchased by you hereunder at the time when it is delivered to such pipe line company and/or other carrier
authorized by you shall be paid for to the owners, their successors or aemgns in proportion to their respective interest shown
Shove at the price posted by you for oil of the same gravity, kind and quality m the particular field oa the day when such oil
is received by such pipe line company and/or other carrier authorized by you, ppayment to be made by check or draft mailed
or delivered m or before the 19th day of each calendar month for the oil run drnng the preceding month, provided, however,
that you may at your option, hold without interest, and remit semi - annually for the aggregate of six (6) months' accumulation
of monthly accruals of amounts less than Two Dollars ($2.00), payment to be made on or before February 19th and August
19th of each year in the manner above provided.
7. You shall not be bound by any sale or assignment of any interest in said wells, or the production thereof, until written
notice thereof shall be furnished you, together with an instrument in writing evidencing such sale or assignment- it being under-
stood that any vendee or assignee of any interest in said wells, or the production thereof, shall take subject to the terms hereof.
8. This division order shall become valid and binding on each and every owner above named as soon as Signed by him,
her or it, regardless of whether or not any of the other above named owners have signed.
9. The holders of terminable and reversionary interests above set out, if any, agree that each will seasonably notify
SOUTHERN MINERALS CORPORATION in writing when such obligations have been paid and the date the reversionary
interest shall be effective, and each agrees to save and hold harmless SOUTHERN MINERALS CORPORATION from any
liability in case of overpayment or underpayment and to indemnify it from any loss, cost or expense occasioned by reason of any
such over- or underpayment. All notices relating thereto shall be addressed to SOUTHERN MINERALS CORPORATION, Cor-
pus Christi. Texas.
W. SOUTHERN MINERALS CORPORATION is hereby authorized, at its election, to withhold from the proceeds accruing
hereunder to any undersigned the amount of any severance, production, occupation, or other tax, levied by or under authority of
the laws of Texas or of the United States against him for and on account of his interest in said oil. land or lease, and to pay
such tax or taxes with the withheld proceeds.
The City of Corpus Christi under and by virtue of its general warranty in $he oil and
gas lease from it to A. W. 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 UY'OCeeds due him under said lease and this division order, BUT NOTHING HEREIN SHALL BE
RIGHT
RUED BY ANYONE AS BEING ANY VALIDATION OR RATIFICATION OF ANY LEASE OR LEASEHOLD
RIGHTS FROM THE CITY OF CORPUS CHRISTI, THE CITY OF CORPUS CHRISTI
ATTEST:
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,
19ag, .,, >vering among other lands the lands included in this Division Order, join 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 an
unless it should receive written notice from this trustee to pay otherwise.
ATTEST',
'iii nassess°`..°°„— —
ATTEST,
MERCANTILE NATIONAL BANK AT DALLAS
X
W. E. Walloer
A. W. Gregg
CITY N,4TI014l. BANK OF HOUSTON
CORPUS CHRISTI, TEXAS
1953
I
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS
GENTLEMEN:
FOR THE REASONS SET FORTH {N 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, 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,
1'111z&e't A
OR
CITY OF COR CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
A. A. LICHTENSTEIN
ELLROY KING
P. C. CALLAWAY
JAMES A. NAISMITH
W. JAMES BRACE ,7
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
A. A. LICHTENSTEIN
ELI-Roy KING v
C? f
P. C. CALLAWAY
f 7
JAMES A. NAISMITH'
W. JAMES BRACE L_ '�'
L