HomeMy WebLinkAbout04375 ORD - 10/26/1955EM:10 /24/55
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR
AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TEXAS
TO EXECUTE AN AGREEMENT WITH A. W. GREGG WHEREBY
THE PARTIES AUTHORIZE AND DIRECT SOUTHERN MINERALS
CORPORATION TO PAY OUT OF ESCROW FUNDS THE SUM OF
$16,500.00 TO FIDELITY AND DEPOSIT COMPANY OF
MARYLAND, TO BE HELD BY SAID COMPANY AS COLLATERAL
FOR A BOND DATED OCTOBER 6, 1955, IN LIEU OF THE
SUM OF $16.500.00 HERETOFORE PAID BY A. W. GREGG
TO FIDELITY AND DEPOSIT COMPANY OF MARYLAND, A
COPY OF WHICH AGREEMENT 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, TEXAS:
SECTION 1. THAT THE CITY MANAGER OF THE CITY OF CORPUS
CHRISTI BE, AND HE 15 HEREBY, AUTHORIZED AND DIRECTED FOR AND ON BE-
HALF OF THE CITY OF CORPUS CHRISTI, TEXAS, TO EXECUTE AN AGREEMENT
WITH A. W. GREGG, WHEREBY THE PARTIES AUTHORIZE AND DIRECT SOUTHERN
MINERALS CORPORATION TO PAY OUT OF ESCROW FUNDS THE SUM OF $16,500.00
TO FIDELITY AND DEPOSIT COMPANY OF MARYLAND, TO BE HELD BY SAID COM-
PANY AS COLLATERAL FOR A BOND DATED OCTOBER 6, 1955, IN LIEU OF THE
SUM OF $16,500.00 HERETOFORE PAID BY A. W. GREGG TO FIDELITY AND
DEPOSIT COMPANY OF MARYLAND, A COPY OF WHICH AGREEMENT IS ATTACHED
HERETO AND MADE A PART HEREOF.
SECTION 2. THE NECESSITY FOR ENTERING INTO THE AGREE-
MENT DESCRIBED IN SECTION 1, CREATES AN EMERGENCY AND AN IMPERATIVE
PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT
NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS
INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT
THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING DE-
CLARED SUCH EMERGENCY AND NECESSITY, REQUESTING THE SUSPENSION OF SAID
CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF
ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM
AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO
/SO ORDAINED.
PASSED AND APPROVED THE .4 (p DAY OF OCTOBER, 1955./
ATT ST: ` iiT
MAYOR-
THE CITY OF CORPUS CHRISTI, TEXAS
I7Y E ETAR
APPROV D AS TO LEGA FORM OCT.,: 41955:
CITY ATTORNEY
v
TRU AQRUMW mado and ontored Into as of
this � 44W or 0 19650 by a"
ID*tW*M A* W• QRSWX m Individual, horol"ttor called
'3X'O . *W the 4-ity of 4orpus 4hristi, To, a
MunlCiPbl OorPOration, harolnefter called "611ty",
ii I A i-iiL a i At
wwn", we" am city hav's heretofore entered
;LAt* an Operating Agreement dated July 48, 1953* providing
for th* operation by Ore" or certain oil, Ses and adnersl
104000 00~1146 IWO$ altustod In Jim Wells, lWocea and
ex fttrlolo Countioeg, Texas, pending final datermaAntion
of Lhat '30MAID jaust, No. 8166 ur� the Docket �>f 14mo, 26th
146trUt t�*urt or 6*n Patriclo �'Amty, Texas, wherein the
validity at sold oil, 4" and mineral leases is at Issue,
which oil, gas and mineral, leases are mom fully described
In said Operating Agreement to which reference to here
mad# for the description or *mw and *11 the torus and
provisions or said Qparating Agreemat w4 for gal other
purposebi and
WUXUAS, pursuant to amid Uperating Agreement,
�iouthorn Minerals i;erporation Is holding In wacrow the
proceeds from the sale of oil and Sea rrm said loane*
pending the final determination at the aforesaid ommo of
action# and
WXQU", in connection with Um ".16 at a" to
Txw*11" Gas Company from said oil, &so and mineral leasos
Under co"ract dat" March 29, IM, between Trunkl1no
01" (;OWAWP as SW*r, and A., W. are", as ; 4*11*r, the
BAU Oft" has heretofore Mad a rate voh"Ule With
t ederal Power ConsUalon pursuant to its girder IT4-il)
and
4HMiASs ti * Federal Power u4maalssioa by after
Issued June 3, 1955, In D**Uot no. 0-8"3* suspend" said
rat* schedule& in so for as an Ir4reaso In the #tles price
or ass, w4a requested b� GreSS1 mW
WWMA,15, pursuant to a motion filed by Jra" on
AtWu&t 10, a Z,5, to make avid suspended ratou etfootive,
t;hQ itoderai Power 1 « *44ssicnp 1)y order lasue4 3eptew0er Vp
1955, in said Locket No. 3-8993, Issued an oraor sAkind erfea-
%,1vO said au"Oded rAllAs as of Auaust 10, 1-955, conditiorwd
'OPGA the OX00MUOU by are" at a O*rp*mta bond In the W=
or ki()*500.00 as more fully described In said Federal Power
400saission Order of Septe"ar 22, 1955, to which reforsho*
in bore wad* for all purpoeval &M
WHMAS► are", as prtwipal, and PJASAIty and
Deposit Cavany or Maryland, to Surety, executed a bmw
In the amount of 16,%*.00 dated October 6, 1955► and
9116d 44" With 0A Yederal Power OamiSsion In compliame
with its aforesaid order at Septes"r 22► 19551 and
WWABAS, Fidelity and Deposit Comps oW of Maryland
required 4r*" to deposit the sum of 416,5W*00 in ass& an
collateral for oald bond purauaniL, to the tars " conditions
at a letter fry .Fidelity vW Deposit Company of Plaryland to
- 2 -
A, 4. 3re", dated October Os 195;x, Otto~ tkortto
kJAIbit `,e GOA MA" A part herear and pursu"t to a
collateral a0aawnt so. 33444 attaah*d horeto an fu�xhlblt
and wade a parA� hereof$ and
WMRIZ the CII� of the aforesaid � USF
4xvgg with the Foderal Power Commission in order to "ke
maid suspended rates ertoativ* will inure to the bomfit
of both parties hereto " the parties heroto haver We"
that the oollateral for said bovid should b* paid out of
the funds presently inold in asoraw b;v Southern Minerals
Corporatioar
NQ4, In consideratior., of tho premizes,
It is 444ved aa raUaosz
I*
Tim parties hereto and each ar thm bft*,*bY
►ahorla* mW "root 4outh*m gale Corporation to M
out or the escrow funds st&A""S in its h*Mo pursuant to
Said iqwstiva Agroommt, or duly 8, 1953, the Sm Of $16,500.00
to $1d#11ty " reposit, CoMany of karyloW to b* hold by
Fidolity mjd Deposit OampaxW of karylaM as collateral for
said bond dated wto"r 6, 1955, in lieu at' the am of
416,500.00 heratorore paid try (ire" to FU411ty " DOPOSit
U"Osmy or- f4&ryjwW pursuant t* the terms and proVialons or
4xbit3r,& "All and "I.W! attached hereto,
- 3 -
2*
Upon reoeipt or t aforesaid Oux of 416,500.00
"VF ; *raid scrow lud
and D'OpQ41t Covony of
MarYIWW is hOrODY 4UthOrized " directeid to pay to Gre&;
Nvretofi�ry 6apOGit*,,� Jna,&S. with
an aoilateral Por
a.
Suld bow dated vto�Aer 6, 195:�.
OPM tht 4144kau,%* or Mw aforesaid boad Fidelity
end L-Wstt UOWAAY Of A*rylwW shall, in releuuLngp pursu&At
to Uit Wma aski krovi4ionz of ',A" and attached
flel-aZu, zuid lk,14,16,�-;'W.CK) Lo as deilyarvC, Lo It
surrondt,m 'he saw to zouthorn Anerals Corporation tv fa
�- It '4, Bzrow purou"t w 1taxd k�mewwlit
M' via od, howeVov, 4mt it tiiure i4mll
'Whoratofore have, bars u f1rA4 OettraUation or said t;auaa
Me roam w CwWo heJ4 b� �Quthurn #14nerals
.ov,4oruticri 4uvo LLkwrt-"Oru w*en paid f4ut, Qwtn PldelltV and
Deposit �; wV :y V Aha.Ljj upvjj tilt dtaciaarga L)r
"Id Bond, aurvVr4ez' 4&14 To Lht reuiplunt or
9AU, .'Oorow runda.
IN W3 4- 4*UW , th4 portl s hereto hove executod
t41;s ad"oa� nt as uX Ujo date wid year OLrst abaVk WrLttrin.
4. 4. re"
C11'r9! kilo CORPW 4WISTI
City kar4asr
- 4 -
Tho roregoing &&mtwant Is sipprov-zd as to
rom, ai4 aubsTui�,,�.
VAR
IX�.PL 61T UCXPANY ' F K YLAtW
CORPUS rRISTI) T XAS
195'
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 SUSPEl-
SION 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,
HEREDY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS
THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESE ^!T MEETING
OF THE CITY COUNCIL.
RESPECTFULLY,
r
MAYOR,
THE CITY OF CORPUS CHRISTI, TEXAS
THE CHARTER PULE WAS SVSPENDED BY THE FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULLI �
W. J. ROBERTS ,{
B. E. BIGLER (j
MANUEL P. MALDONADO L'-�-
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULLI
W. J. ROBERTSL,
B. E. BIGLER
MANUEL P. MALDONADO
43� J