HomeMy WebLinkAbout04395 ORD - 11/18/1955A=: 10/5/55
AN ORD I idANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON
BEHALF OF THE CITY OF CORPUS CHRISTI TO ENTER INTO AN
01L AND GAS LEASE WITH MAPLE WILSON FOR THE LEASING ON
A ONE— EIGHTH (1/6) ROYALTY AND CASH BONUS BASIS ON THOSE
CERTAIN LANDS OPINED BY THE CITY OF CORPUS CHRISTI, NUECES
COUNTY TE ?AS WHICH THE CITY OWNS ONLY AN UNDIVIDED ONE —
HALF 1 2 MINERAL INTEREST, DESCRIBED AS LOTS 9 AND 10,
SECTION 21 OF THE FLOUR BLUFF AND ENCINAL FARM AND
GARDEN TRACTS, CONTAINING FORTY 0 ACRES OF LAND, IN
ACCORDANCE 'JITH THE TEMOS AND CONDITIONS OF SAID LEASE,
A COPY OF WHICH 13 ATTACHED HERETO AND MADE A PART HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. THAT THE CITY NIANAG Et, BE AND HE IS HEREBY AUTHORIZED
AND 0 RECTED FOP, AfdD ON BEHALF OF THE CITY OF CORPUS CHRISTI TO ENTER IPITO
AN OIL AND GAS LEASE WITH MAPLE ViILSON FOR THE LEASING ON A ONE— EIGHTH (1/2)
ROYALTY AND CASH BONUS BASIS ON THOSE CERTAIN LANDS OWNED BY THE CITY OF
CORPUS CHRISTI, NUECES COUNTY, TEXAS, WHICH THE CITY OWNS ONLY AN UNDIVIDED
ONE —HALF (1/2) MINERAL INTEREST, DESCRIBED AS LOTS 9 AND 10, SECTION 21, OF
THE FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, CONTAINING FORTY (40)
ACRES OF LAND, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SAID LEASE,
A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF.
43g5
OIL AED GAS LEASE
THIS AGREEMENT, Fade and entered into the day
of , 1955. by and betweenTHE CITY of CORPUS CNRl9TI, TEXAS,
CORPORATION,
A MUNICIPAL it hereinafter called lessor, and MAPLE WILSON, OF LUBBOCK,
TEXAS hereinafter called lessee:
ni I _. A; G .S S E_ V:
That the said lessor, for and in consideration of "'en
and Ito /100 Dollars 010.00 and other good and valuable
corsideration, cash in hand paid, the receipt of which is
hereby acknowledged, and of the covenants and agreements
hereinafter contained on the part of lessee to be paid,
kept and performed, has granted, demised, leased and let,
and by these presents does grant, lease and let unto the
said lessee for the sole and only purpose of exploring,
drilling, mining, and operating, for oil and gas and of
laying pipe lines and of building tanks, power stations and
structures thereon necessary to produce, save and take care
of said products, but only one house for housing its em-
ployees, all that certain tract of land situated in the
county of NUECES , State of Texas, described as d
follows, to -wit:
LOTS Nos. MINE (9) AND TEN (10), SECTION ND. TWENTY -ONE
(21) OF THE FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS
OF NUECES COUNTY, TEXAS, AS SHOWN BY NAP OR PLAT OF SAID
SUBDIVISION OF RECORD IN VOLUME A, PAGE 43, OF THE MAP
RECORDS OF NUECES COUNTY TEXAS, TO WHICH REFERENCE 13 HERE
MADE, CONTAINING FORTY (4+0) ACRES OF LAND.
It is agreed that this lease shall remain in force for
a term of five (5) years from this date, said term being here-
inafter called "Primary Term" amd as long thereafter as oil or
gas, or either of them is produced from said land by the lessee,
In commercailly paying quantities.
In consideration of the premises the said Lessee covenants
and agrees:
The royalties reserved by Lessor and to be paid by Lessee
to Lessor, free from all costs to Lessor, manufacturing or
otherwise, except for Lessors share of severance, ad valorem,
and other taxes normally charged to Lessor's interest, are:
(a) ors oil, one - eighth (1 /8th) of that produced and saved from
said land, the same to be delivered, at the option of Lessor,
at the wells, or to the credit of Lessor into the pipe line to
wrath, the wells may be connected; and (b) on gas, including
casinghead gas or other gaseous substance, produced from said
land and sold or used off the premises, or sold. at the wells,
(and except for the gasoline, condensate, or other products ex-
wracted or manufactured therefrom, which items are covered by
(c) hereof), the royalty shall be one - eighth (1 /8th) of the amount
realized from such sale or one - eighth (1 /8th) of the market price
thereof, whichever is higher; and (a) one - eighth (1 /8th) of the
net amount of gasoline, condensate;, or other products extracted
or manufactured, from natural or casinghead gas or other gaseous
substance produced from said land; and, at the option of Lessor,
Lessee agrees to take or purchase all of the same at the market
price. Lessee shall be under the express duty of removing from
the gas produced, including casinghead gas or other gaseous sub-
stance, the liquid hydrocarbon content (whether in gaseous, spray,
liquid or other form), so far as is practicable, by separators,
dehydrators, or other standard process presently, or in the future,
In use by the industry in general, and in such manner as a normal
prudent operator would do under the same or similar circumstances;
I:essee, for the benefit of the Lessor, shall exercise such reason-
able diligence to procure a market for the production of any g?$
well as a reasonably prudent operator would do under the same or
similar circumstances; and (d) on all other minerals mined or market-
ed, one - eighth (1 /8th) either in kind or value at the well or mine,
2
at Lessor's election, While there is a Gas well on this lease,
but gas is not being sold or used, Lessee may pay as royalty at
monthly intervals a sum, equal to one - twelfth (1/12) of the amount
of the annual rental payable in lieu of drilling operations dur-
ing primary term on the number of acres subject to this lease at
thetime such payment is made, and 11' such payment is made, or
tendered, it will be consld.ered, that r;as is being produced from
I;is lease in paying au utities. Lessee shall have free use of
oil, ;a s, coal and neater from said lard, except water from Lessor's
wells, for all operat.icn!� here,=der, and the royalty on oil, gas
end coal shall be computed ,after deducting, any so used. Lessor
shall have the privilege at his risk and expense of using ,
as
from any gas well on said land for stoves and inside lights in
the principal dwelling thereor_ out of any surplus gas not needed
for operations hereunder.
if no well be commenced on or before the day of
1956, this lease shall termLrzate as to both parties, unless the
Lessee ors or before that ;fate shall pay or tender to the Lessor,
or to the Lessor's credit ir. the Corpus Christi National Bank
at corpus ;hrlstl, Texas, or its successors, or in the
rank at jor its successors,
which shall continue as the depository, regardless of changes in
the ownership of said land, the suu of Forty and ho /100 ( ,140.00)
Dollars, which shall operate as rental and cover the privilege
of deferring the commencement of a well for twelve months, from
said date. In like manner and upon like payments or tenders
the commencement of a well may be further deferred for like
periods of the same number of months sucessively, but only only
during the primary term. And it is understood and agreed that
the consideration first recited herein, the down payment, covers
not only the privilege granted to the date when said first rental
Is payable as aforesaid, but also the Lessee's option of extending
that period as aforesaid, and any and all other rights conferred.
- 3 -
Should the first well drilled on the above described
land be a dry hale, then and in that event, if s second well
Is not cor.menced on said land within: twelve (12) months, there-
after, this lease shall terminate as to both parties, unless
the Lessee on or before the expiration of said twelve (12)
months shall resume the payment of rentals in the same manner
as hereinbefore arovided. And it is agreed that upon the re-
sumptlon of the payment of rentals, as 'before provided, that
the last preceding paragraph hereof, shall continue in force
just as though there had been no interruption in the rental
payments.
If, at the expiration of the primary term of this lease,
oil or gas is not being produced on the leased premises, but
Lessee is then enga ed in drilling for oil or gas, then this
lease shall continue in force so long as drilling operations
are being continuously prosecuted on the leased premises;
a..d drilling operations shall be considered to be continuously
prosecuted if not more than sixty (64) days shall elapse between
the 3o- iplation or abandonment of one well and the beginning, of
operations for the drilling of a subsequent well. if oil or gas
shall be discovered and produced from any such well or wells
drilled or being drilled at or after the expiration of the primary
term of this lease, this lease shall continue in force so long as
oil or gas shall be produced from the leased premises.
It is specially agreed that in the event that oil or gas
is being; produced or is obtained from said premises after the
expiration of the primary term hereof and said production shall
for any reason cease or terminate, Lessee shall have the right at
any time within ninety (90) days from the cessation of such pro-
duction to resume drilling operations in the effort to make said
leased premises again produce oil or gas, in which event this
lease shall remain in force so long assuch operations are continu-
ously prosecuted, as defined in the preceding paragraph, and if
- 4 -
the;i result in production of oil or gas, so long thereafter
as oil or Eas Is produced from the premises.
If said Lessor owns a less interest in the above described
lard than the entire and undivided fee simple estate or no
interest therein, then the royalties and rentals herein, provided
for shall be paid the said Lessor only in proportion which Leseor's
interest, if any, bears to the whole and undivided fee.
Lessee shall have the right to use, free of cost, gas, oil
and water produced on said land for all operations thereon, ex-
cent from water wells of Lessor. When requested by Lessor, Lessee
shall biry pipe line below plow depth. No well shrill be drilled
nearer than two hundred (200) feet to the house or barn now on
said premises without the written consent of the Lessor. Lessee
shrill }pay for damaEes caused by all operations to crowi:� crops
o,l ssid land. Lessee shell have the right at any time tc remove
all machinery and fixtures placed on said premises, incluain_ the
right to draw and remove casing.
if the estate of either party hereto is the
privilete of assinnenZ in whole or in pars; Is expressly allowed,
the covenants hereof shall extend to their heirs, executors,
administrators, successors, or assigns, but no chance 1. the
ow ershlp of the land or assignment of rentals or royalties
shall be binding on the Lessee until after the Lessee has been
ftrnished with a written transfer or assignment, or a, certified
copy thereof. and It is hereby agreed that in the event this lease
shall be assigned as to a part or as to parts of the above describe-
ed lands and assigns or assignees of such part or parts shall fall
or make default in the payment of the proportionate part of the
rents due from him or them, such default shall not operate to
defeat or affect this lease so far as it covers a part or parts
of said land upon which the said Lessee or any assip,�ees thereof
shall make due paymezlt of said rental.
Lessee shall have the exclusive right to build, operate and
maintain pits, reservoirs, pickup stations and. plants for the pur-
- 5 -
pose of picking; up and conserving the waste oil that flows
down the creeks, ravines and across the land embraced in this
lease, whether said oil is produced from land covered by this
lease or other lands, and .Lessor shall be entitled to receive
the royalty hereinbefore reserved on all such oil so saved.
In case of cancellation or terminatlim of this lease for
any cause, Lessee shall have the right to retain under the
terms hereof (20) acres of land around each oil or gas well
producing, being worked on or drilling hereunder (as long as
such operations are continued in good faith) such tract to be
designated by Lessee in as near a square form as practicable.
In the event Lessor considers that Lessee has not complied
with all its obligations hereunder, both express and implied,
before production has been secured or after production has been
secured, Iessor shall notify Lessee in writing, setting out
specifically in what respects Lessee has breached this contract.
Lessee shall thenhave s ?xty (60) days after receipt of said notice
within which to meet or commence to meet all or any part of the
breaches alleged by Lessor. The service of said notice shall be
precedent to the bringing of any action by Lessor on said lease
for any cause, and no such action shall be brought until the
lapse of sixty (60) days after service of such notice on Lessee.
neither the service of said notice nor the doing of any acts by
Lessee aimed to meet all of any of the alleged breaches shall be
deemed anadmission or presumption that Lessee has failed to per-
form all its obligations hereunder.
Lessee shall pay Lessor for all reasonable damages to Lessor's
present and future crops and the surface caused, directly or inn
directly, by Lesseets operations. Lessee agrees to haul off and
away from the leased premises drilling muds and the drilling
residue and all $ebris connected with the drilling or operation
of the wells and premises as promptly as caA be reasonably done
after drilling of each and every well on the herein described land
- 6 -
and to promptly level the land and restore the same to the
high state of cultivation that the same was in prior to the
drilling; of any well as far as is practicable. Lessee will
at all times conduct his operations in such manner as to aid
In the preservation of the surface farming use and value of
this land commensurate with the best standards of the industry.
In laying pipe lines Lessee shall. perform the ditching opera-
tions in such manner that upon the recovering of the ditches
that the top soil will be replaced at the top surface of the
ground, level with the ground., as far as practicable. Ubon
the termination, abandonment, or release of the land covered
by this lease, or any part thereof, Lessee shall remove an7'
remaining equipment, debris and rubbish and completely clean
up all drilling sites, to restore the same in as good farmin,
cond tion as it was before the Commencement of the drillin,
operations. 'she conditions and provisions of this particular
paragraph shall apply, for the benefit of the Lessor, notwit7-
StaUdin any other provisions to the contrary elsewhere pro-
vided ii., this lease.
Lessor hereby warrants and agrees to defend the title
to the lard herein described and agrees that the Lessee shall
have the right at any time to redeem for Lessor by payment
any mortgages, taxes or other liens or interest and other charges
on the above described lands in the event of default of payment
by Lessor and be subrogated to the rights of the holder thereof
and to deduct so paid from rentals or other payments due or which
may became due under this lease.
All express or implied covenants of this lease shall be
subject to all Federal and. State laws, Executive orders, rules
cr 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.
- 7 -
LESSON HEREBY ACKNOWLEDGES THAT HE HAS RECEIVED FROM LESSEE
FOR HIS OWN USE AND REFERENCE A TRUE AND CORRECT COPY OF THIS LEASE.
IN TESTIMONY WHEREOF, WF SIGN, THIS THE DAY OF
1955-
THE CITY OF CORPUS CHRISTI, TEXAS
BY
CITY MANAGER
ATTEST; LESSOR
CITY SECRETARY
APPROVED AS TO LEGAL FORM
OCTOBER , lvj5:
CITY ATTORNEY
APLE �,h LSON
LESSEE
_8_
THAT THE FOREGOING ORDINANCE �W/AfS READ FOR Fil T TIME AND PASSED
TO ITS SECOND READING ON THIS THE rff. AY OF r Ci i 9 1955, BY THE
FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULL)
W. J. ROBERTS
B. E. BIGLER T
MANUEL P. MALDONADO
THAT THE FOREGOING ORDINANCE WAS READ FOR THE SECOND TIME AND PASSED
TO ITS THIRD READING ON THIS tHE DAY OF , 1955, BY THE
FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULLI
W. J. ROBERTS
B. E. BIGLER
MANUEL P. MALDONADO TT
THAT THE FOREGOING ORDINANCE WAS READ FOR THE THIRD TIME AND PASSED
FINALLY ON THIS THE DAY OF , 1955, BY THE FOLLOWING VOTE:
FARRELL D. SMITH
MINOR CULL]
W. J. ROBERTS
B. E. BIGLER
MANUEL P. MALDONADO
PASSED AND APPROVED, THIS THE DAY of
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
ATTEST:
CITY SECRETARY
APPROVED AS TO LEGAL FORM:
CITY ATTORNEY
1955•
THAT THE FOREGOING ORDINANCE WAS READ FOR T E FIRST TIME AND PASSED
TO ITS SECOND READING ON THIS THE (:Y�, DAY OF 1955, BY THE
FOLLOWING VOTE:
THAT THE FOREGOING ORDINANCE WAS READ FOR THE /S F,�OND TIME AND PASSED
TO ITS THIRD READING ON THIS THE �D AY OF /, ` / , 1955, BY THE
FOLLOWING VOTE:
FARRELL D. SMITH (iVjf�
MINOR CULLI
W. J. ROFiERTS
B. E. BILLER:
MANUEL P. MALDONADO
THAT THE FOREGOING ORDINANCE WAS READ FOR THE 'THIRD TIME AND PASSED
FINALLY ON THIS THE �955� L BY THE FOLLOWING VOTE.,
FARRELL D. SMITH
MINOR CULLI
W. J. ROBERTS
B. E. BIGLER L/i.(.1,G'�!✓�
MANUEL P. MALDONADO - '"Ci�{,(�° °'
PASSED AND APPROVED, THIS 'rHE DAY OF ?955•
l
MAYOR -
THE CITY OF CORPUS CHRISTI, TEXAS
ATTEST:
i,Cam / CITY SECRETARY
J APPROVED AS TO�EGAL FORM:
CITY ATTORNtl /
U
4395
FARRELL
D. SMITH
l
MINOR
CULLI
W. J.
ROBERTS
B. E.
BIGLER
t ,
MANUEL
P. MALDONADO
THAT THE FOREGOING ORDINANCE WAS READ FOR THE /S F,�OND TIME AND PASSED
TO ITS THIRD READING ON THIS THE �D AY OF /, ` / , 1955, BY THE
FOLLOWING VOTE:
FARRELL D. SMITH (iVjf�
MINOR CULLI
W. J. ROFiERTS
B. E. BILLER:
MANUEL P. MALDONADO
THAT THE FOREGOING ORDINANCE WAS READ FOR THE 'THIRD TIME AND PASSED
FINALLY ON THIS THE �955� L BY THE FOLLOWING VOTE.,
FARRELL D. SMITH
MINOR CULLI
W. J. ROBERTS
B. E. BIGLER L/i.(.1,G'�!✓�
MANUEL P. MALDONADO - '"Ci�{,(�° °'
PASSED AND APPROVED, THIS 'rHE DAY OF ?955•
l
MAYOR -
THE CITY OF CORPUS CHRISTI, TEXAS
ATTEST:
i,Cam / CITY SECRETARY
J APPROVED AS TO�EGAL FORM:
CITY ATTORNtl /
U
4395