HomeMy WebLinkAbout03504 ORD - 07/08/1953TEXAS:
AN ORDINANCE
AUTHORIZING THE CITY MANAGER FOR AND ON BEHALF OF THE CITY OF
CORPUS CHRISTI, TEXAS TO EXECUTE AN OPERATING AGREEMENT WITH
A. W. GREGG IN REGARD TO CERTAIN OIL LEASES BETWEEN THE CITY
OF CORPUS CHRISTI, TEXAS, AS LESSOR, AND A. W. GREGG, LESSEE;
PROVIDING THE TERM OF SUCH AGREEMENT; PROVIDING FOR TERMINATION
UPON THIRTY (30) DAYS NOTICE OF EITHER PARTY AND DEFINING CER-
TAIN EXPENSES, A COPY OF WHICH IS ATTACHED HERETO AND MADE A
PART HEREOF; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED
FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TEXAS, TO EXECUTE AN OPERATING
AGREEMENT WITH A. W. GR €GG IN..REGARD TO CERTAIN OIL LEASES BETWEEN THE CITY
OF CORPUS CHRISTI, TEXAS, AS LESSOR, AND A. W. GREGG, LESSEE; PROVIDING THE
TERM OF SUCH AGREEMENT; PROVIDING FOR TERMINATION UPON THIRTY (30) DAYS
NOTICE OF EITHER PARTY AND DEFINING CERTAIN EXPENSES, A COPY OF WHICH IS
ATTACHED HERETO AND MADE A PART HEREOF, AND READING AS FOLLOWS:
- �oq
OPERATING AGREEMENT
WHEREAS, TOE UNDERSIGNED, A. W. GREGG IS PLAINTIFF, AND THE UNDER-
SOCKED, CITY OF CORPUS CHRISTI IS ONE OF THE DEFENDANTS IN THAT CERTAIN CAUSE
No. 8766 ON THE DOCKET OF THE 226TH DISTRICT COURT OF SAN PATRICIO COUMIY,
TEXAS, WHEREIN THE VALIDITY OF THE FOLLOWING DESCRIBED OIL, GAS AND MINERAL
LEASES IS AT ISSUE%
1. OIL, GAS AND 11!1 UERAL LEASE DATED MARCH 8, 1950 EXECUTED
BY THE CITY OF CORPUS CHRISTI TO A. W. GREGG, AMD RECORDED
IN VOLUME 77, PAGE 593 -5977 OIL AND GAD LEASE RECORDS Or JIM
WELLS COUNTY, TEXAS.
2. OIL, GAS AND MINERAL LEASE DATED JANUARY 31, 19503 EXE-
CUTED BY THE CITY OF CORPUS CHRISTI TO GUY PATTERSON AS LESSEE,
AND OF RECORD IN VOLUME 108, PAGE 7.50 OF THE OIL AND GAS LEASE
RECORD4 OF NUECES COUNTY, COVERING 10.243 ACRES OUT OF BLOCK NINE-
TEEN (19) OF J. C. RUSSELL FARM BLOCKS IN NW£CES COUNTY, TEXAS.
3+ OIL, GAS AMD MINERAL LEASE DATED OCTOBER 16, 1951, EXE-
CUTED 8Y THHp,,E,, CITY OF CORPUS CHRISTI TO A. W. GREGG, OF RECORD
IN VOLUME EAU, PAGE 247 OF THE OIL AND GAS LEAVE RECORDS OF SAN
PATRICIO COUNTY, TEXAS, COVERING THREE TRACTS AGGREGATING 518.2
ACRES OF LAND, MORE OR LESS, SITUATED IM SAN PATRICIO COUNTY,
TEXAS.
4. OIL AND GAS AND MINERAL LEASE DATED JANUARY 211, 1950, FILED
FOR RECORD DN FEBRUAR 17, 1950, OF RECORD IN VOLUME 77 AT PAGES
238 -2$1, OF THE OIL AND GAS LEASE RECORDS OF JU4 WELLS COUNTY,
TEXAS COVERING APPROXIMATELY 2$0 ACRES OF LAND, MORE OR LESS; AND
WHEREAS, PENDING THE FINAL DETERMINATION OF SAID CAUSE THE UNDERSIGNED
SOUTHERN MINERALS CORPORATION IS PURCHASING THE PRODUCTION FROM SAID LEASES AND
HOLDING THE PROCEEDS THEREOF IN ESCROW; AND
WHEREAS, IT IS NECESSARY THAT PROVISION BE MADE FOR THE OPERATION OF
SA40 LEASES PENDING THE FIMAL DETERMINATION OF SAID CAUSE:
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: THAT FOR AMR IN CONSIDER-
ATION OF THE PRE *IfSES, IT IS CONTRACTED AND AGREED BY AND BETWEEN A. W. GREGG,
HEREINAFTER CALLED `GREGG"� CITY OF CORPUS CHRISTI, A MUNICIPAL CORPORATION,
HEREINAFTER CALLED "CITY" AND SOUTHERN MINERALS CORPORATION, HEREINAFTER CALLED
"SOUTHERN MINERALS", AS FOLLOWS!
1• THAT GREGG SMALL CONTINUE TO OPERATE SAID LEASES AND FROM
AND AFTER APRIL 1, 1953, GREGG SHALL BE ALLOWED REIMBURSEMENT
FOR THE REASONABLE LEASEMOLD OPERATING AND MAINTENANCE EXPENSE IN-
CURREV IN OPERATING AND MAINTAINING SAID LEASES, SUBJECT TO THE
OTHER PROVISION$ OF THIS CONTRACT.
2. GREGG $HALL SECURE THE WRITTEN APPROVAL OF THE CITY MANAGER
OF THE CITY OF CORPUS CHRISTI BEFORE INCURRING AN EXPENSE IN
EXCESS OF TWO THOUSAND DIVE 1NINDRED DOLLARS ($2,500.00) FOR
AN+' SINGLE ITEM.
3. IN REIMBURSEMENT FOR OVERHEAD EXPENSES CHARGED TO THE ABOVE
DESCRIBED LEASES, IN ADDITION TO THE ACTUAL COST INCURRED ON
THE LEASES AND IN THE PHYSICAL OPERATION ANA MAINTENANCE THERE -
OF, GREGG SMALL BE PAID MONTHLY FROM THE ESCROW FUND THE SUM OF
FIFTY DOLLARS 1$50.00) PER EACH PRG%%iCIR£. WELL.
4. THAT GREGG %HALL FURNISH ITEMIZED MONTHLY STATEMENTS OF THE
EXPENSES TO BE REIMBURSED, SUPPORTED BY PAID INVOICES AND CERTI-
FI €O OR PHOTOSTATIC COPT ES OF PAYROLL RECORDS, TO THE CITY MANAGER
OF THE CITY OF CORPUS CHRISTI, OR IN HIS ABSENCE TO THE ACTING
CITY MANAGER, FOR APPROVAL. UPON THE APPROVAL OF SUCH STATEMENT
BY SUCH CITY MANAGER OR ACTING. CITY MANAGER, AND UPON PRESENTATION
THEREOF TO SOUTHERN MINERALS, SOUTHERN MINERALS SHALL, TO THE EX-
TENT OF THE FUNDS ON HAND, PA, TO THE SAID GREGG THE AMOUNT Of
5A10 APPROVED STATEMENT. THAT ALL AMOUNTS PAID BY SOUTHERN
MINERALS TO 4REGG SHALL BE CHARGED TO THE ESCROW FUNDS ACCRUED
TO THE INTEREST IN SAID LEASES STANDING IN THE NAME OF GREGG.
5. THAT UPON REQUEST DF SDWTNERN MINERALS, BEFORE RECEIVING PAY-
MENTS UNDER THIS AGREEMENT, GREGG SMALL FURNISH CONSENT IN WRITING
FROM ANY PERSON, FIRM OR CORPORATION HOLDING LIENS UPON, Olt ANY
OTHER INTEREST 1N, THE INTEREST IN SAID LEASES STARDIN& IN THE NAME
OF GREGG,
6. THAT THIS CONTRACT SHALL CONTINUE IN FORCE UNTIL THE FINAL
DETERMINATE ON OF SAIf CAUSE NO. 8166, UNLESS TERMINATED AT AN
EARLIZR DATE UY AGREEMENT OF GREGG AND THE CITY OF CORPUS CHRISTI;
PROVIDED, HOWEVER, THAT AFTER FINAL JUDGMENT SHALL HAVE BEEN
ENTERED iN THE DISTRICT COURT OF SAN PATRICtO COUNTY TEXAS, IN
SAID CAUSE, EITHER A. W. GREGG OR THE CITY OF CORPUS CHRISTI „,AY,
BY GIVING THIRTY DAYS WRITTEN NOTICE TO THE OTHER PARTY AND TO
SOUTHERN- MINERALS, TERMINATE THIS AGREEMENT. IT SHALL BE SUFFICIENT
NOTICE UNDER THIS PARAGRAPH FOR THE PARTY GIVING NOTICE TO MAIL SANE
BY REGISTERED HAIL TO THE CITY MANAGER OF THE CITY OF CORPUS CHRISTI
ANO/OR TO THE LAST KNOWN XODRESS OF THE OTHER 'PARTIES HERETO AS TIM1E
CASE HAY BE. AFTER THE POSTING OF SUCH NOTICE THIS AGREEMENT SMALL
TERMINATE THIRTY DAYS AFTER THE DATE SUCH NOTICE 15 PLACED IN FHE
UNITED STATES MAILS.
'(. NOTHING CONTAINED tN THIS AGREEMENT OR OMITTED FROM IT SMALL IN
ANY WAY OR BgAHMER AFFECT THE FORCE, EFFECT ON PROVISIONS OF THAT
CERTAIN JUDGMENT ENTERED BY TILE DISTRICT COUNT OF SAN PATRICIO COUNTY,
TEXAS, IN CAUSE 410. 8166 1/2, ST,LED ti.. W. GREGG VS. CITY OF CORPUS
CHRI$Tt, ET AL, ON APRIL 3, 1953-
WITNESS THE HANDS OF THE PARTIES HERETO THIS DAY OF JUILY,,
1953-
ATTEST:
CITY SECRETARY
A. Wd GREGG
CITY OF CORPUS CHRIST]
aY
CITY MANAGER
SOUTHERN MINERALS CORPORATION
APPROVED AS TO LEGAL FORM;
BY
WASTOA NJXON, PRESIDENT
CITY ATTORNEY
-2-
SECTION 2. DUE TO THE FACT THAT IT IS ESSENTIAL TO THE WELFARE OF
THE CITY OF CORPUS CHRISTI TEXAS THAT PROPER STEPS BE IMMEDIATELY TAKEN TO
ASSURE THE ECONOMICAL AND CONTINUED OPERATION OF THE OIL WELLS ON THE LEASES
IN QUESTION AND THAT SUCH OPERATION OF SAID WELLS BE NOT HINDRED IN ANY MANNER
CREATES A PUBLIC EMERGENCY AND IMPERATIVE PUBLIC NECESSITY REQUIRING THE
SUSPENSION 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 ST THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING
DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST AND HAVING REQUESTED THE SUSPENSION
OF SUCH CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS
INTRODUCTIONS AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM,ITS PASSAGE
IT IS ACCORDINGLY PASSED AND APPROVED, THIS THE DAY OFr ENV 1953.
MAYOR A� �� TH COM S CHRISTI, TE AS
ATTEST:
ZZ/I
CITY SECRETAR
AP PRO ED AS T(} REGAL FON-
CITY T NEY
ly"a
CORPUS CHRISTI, TEXAS
1953
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS
GENTLEMEN:
FOR THE REASONS SET 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, 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,
�Z
MAYOR -t..
CITY OF CORPUS CV1, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE
FOLLOWING VOTE:
A. A. LICHTENSTEIN
E LLROY KING
/al_el_"�-
P. C. CALLAWAY
JAMES A. NAISMITH
W. JAMES BRACE
THE ABOVE ORDINANCE WAS PASSED BY THE
FOLL dING VOTE:
A. A. LICHTENSTEIN
6
ELLROY KING
P. C: CALLAWAY
x
6
JAMES A. NAISMITH(
T
W. JAMES BRACE
r',
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