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HomeMy WebLinkAbout15684 ORD - 08/13/1980• AN ORDINANCE AUTHORIZING EXECUTION OF A SURFACE LEASE FOR A 2.07 -ACRE DRILL SITE IN LOT 13, SECTION 56, FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, WITH EXXON CORPORATION AND SUN OIL COMPANY AS LESSEE AND THE CITY OF CORPUS CHRISTI AS LESSOR, FOR A TERM OF UP TO SIXTY YEARS, IN CONSIDERATION OF A CASH RENTAL PAYMENT OF $850 FOR THE FIRST YEAR AND A LIRE AMOUNT PLUS AN ANNUAL INCREASE OF EIGHT PERCENT FOR THE REMAINDER OF THE LEASE TERM, ALL AS MORE FULLY SET FORTH IN THE SURFACE LEASE FOR DIRECTIONAL DRILL SITE, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARRED EXHIBIT "1". BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be authorized to execute a surface lease for a 2.07 -acre drill site in Lot 13, Section 56, Flour Bluff and Encinal Farm and Garden Tracts, situated in the Laguna Madre, Nueces County, Texas, with Exxon Corporation and Sun Oil Company as lessee and the City of Corpus Christi as lessor, for a term of up to sixty years, in consideration of a cash rental payment of $850 for the first year and annual payment of the previous year's rental plus an annual increase of eight percent, all as more fully set forth in the Surface Lease for Directional Drill Site, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "1". MINk iwz 156' 34 .;4 ED SURFACE LEASE FOR DIRECTIONAL DRILL SITE THE STATE OF TEXAS COUNTY OF NUECES KNOW ALL MEN BY THESE PRESENTS: The City of Corpus Christi, hereinafter called "Grantor," for and in consideration of Eight Hundred Fifty and No/100 Dollars ($850.00) cash and other valuable considerations to it in hand paid by Exxon Corporation and Sun Oil Company (a Delaware corporation), hereinafter called "Grantee," the receipt and sufficiency of which are hereby acknowledged and confessed, does hereby grant, lease and let exclusively unto Grantee, its successors and assigns, the following: 1. The right, authority, and privilege to use a 2.07 acre directional drill site at a location as shown on the map marked Exhibit A attached hereto and made a part hereof for all purposes. The directional drill site will be used for the production of oil, gas, or other minerals from one well completed on State Tract 13 in the Laguna Madre, Nueces County, Texas (Exxon Lease No. 57718). This grant includes the right to construct, use, operate, maintain, replace, alter, protect, and remove any and all foundations, derricks, oil or gas wellhead and completion equipment, manifolds, storage tanks, pipelines, telephone and power lines, pits, separators, treating and measuring equipment, water and disposal wells, and all other equipment, fixtures, and facilities necessary or convenient in connection with the drilling for and producing, handling, storing, treating, and marketing of oil, gas or other minerals that may be produced herefrom. 2. Ingress and egress by roads mutually agreeable to Grantor and Grantee. 3. A subsurface easement through and under said directional drill site and through and under any lands of Grantor situated adjacent or contiguous to or in the vicinity of said directional drill site in connection with the drilling of a directional well and the operation and production thereof. The term of this lease shall be limited to sixty years from the date of this lease or sooner if Grantee abandons said leased area. As additional consideration for the rights herein granted, Grantee agrees to pay as rental to Grantor at the Petroleum Superintendent's office located at 302 S. Shoreline, P. 0. Box 9277, Corpus Christi, Texas 78408, on or before the first anniversary date of this lease, the sum of Nine Hundred Eighteen and No/100 Dollars ($918.00) and said rental shall increase eight percent over and above the previous year's rental for each successive year said lease is in effect until such time as Grantee abandons said leased area or the term of the lease expires. Such payment may be made by the check or draft of Grantee mailed or delivered to Grantor at the aforesaid address on or before the anniversary date. Failure of Grantee to pay the said rental within thirty days after the anniversary date of said lease, shall cause said lease to terminate and all rights granted hereunder shall automatically revert to Grantor. It is understood and agreed that the rights herein granted shall be in addition to and not in derogation of any rights now owned by Grantee by virtue of any conveyance or of any oil, gas or mineral lease covering all or any portion of the premises described above. It is understood and agreed by Grantor and Grantee that the oil, gas or other minerals produced from a well drilled from the above described site, the completion interval of which is located under land or leases other than lands in which Grantor owns a royalty or mineral interest, shall be owned by Grantee. It is not necessary for Grantee herein to account to Grantor for any portion of production from the well drilled from said surface location, the completion interval of which is under lands or Teases under which Grantor owns no interest in the minerals or royalties. Grantee shall have the right to enter upon the premises and remove any and all machinery, equipment, or other personal property, whether affixed to the land or not, for six (6) months following termination hereof. It is distinctly understood that this is not a conveyance of the land covered by said surface lease nor of the minerals therein and thereunder, but conveys only the surface lease herein described. It is further agreed that Exxon Corporation will comply with all applicable ordinances and provisions of Chapter 35 of the Code of Ordinances for the City of Corpus Christi and the granting of said lease shall in no manner affect the right of Grantor in enforcing said ordinances. It is further agreed that said lease shall not be transferred, assigned or subleased by Grantee except with the approval of Grantor expressed by ordinance except as between Exxon Corporation and Sun Oil Company (a Delaware corporation) or their successors. -2- TO HAVE AND TO HOLD the aforesaid surface lease together with the rights of ingress and egress, unto Grantee, its successors and assigns, for the purposes set out herein, for so long as used for the purposes, or any part of them, herein granted. EXECUTED this the day of , 1980. EXXON CORPORATION ATTEST: City Secretary APPROVED: DAY OF , 1980: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney By Attorney in Fact SUN OIL COMPANY (Delaware) By Attorney in Fact CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager L.FLOUR 4:1-40, zT Fxon YQpOdir 33d Y! GA obs... 04/ ^iia (/i 4'-' i? s �r 5. 2p r'o/ <�� ' .Sea Sea � yrs.. 4600/ C:Slfj. syc ". 1? FAR • s�o •+��/sem -mss TRACTS Et, Lata 0104j[ DETAIL A N.`\ s>or. F�4o, \ \` / w /- \'"• i3 V.,/ •; ` - • � 0„,:10.. �Sy4"e%, 4 \\/0 C2 % / 4:40 jg % titpDRE 1.17 LACUNA 3., EXHIBIT "A" 300' X 300' SURFACE DRILL SITE a PIPELINE LOT 13 BLK 56 FLOUR BLUFF 8a ENCINAL FARM a GARDEN TRACTS NUECES COUNTY, TEXAS SCALE 1.1000' That the foregoing ordinancew��a,;;read for th first time and Rassed to its second reading on this the J�"� day of 19 Dip , by the following vote: Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky That the foregoing ordinance was read third reading on this the (Q day following vote: Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky That the foregoing ordina for he second time and passed to its of�, 19 $� by the ce was read for the third dime and passed finally on this the I3) day of(,�Lt± , 19go , by the following vote: Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky PASSED AND APPROVED, this the /.9 ' day ATTEST: APPROVED: DAY OF , 19 gp : J. BRUCE AYCOCK, CITY ATTORNEY ay- of , 19 . OR THE r TY OF CORPUS CHRISTI, TEXAS 1.5684 STATE OF TEXAS, County of Nueces. }ss: PUBLISHER'S AFFIDAVIT '��� Before me, the undersigned, a Notary Public, this day personally came........_____. _ __.... L7RRF�iNg- CORTEZ — .__._, who being first duly sworn. according to law, says that he is the ACC.QTINTTNG CJ,Ff g_ of the Corpus Christi Caller and The Corpus Christi Timm, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of 11l170_0 PAS,$A¢,. Qy�QPINANU ON SECOND READING LEASE FOR 1.07 -macre DRILL SITE. of which the annexed is a true copy, Was published in TPF CfRPTT9 (:FTRTSTT f•AT,T,F.E,TTMRS 11th AUGUST 80day one on the day of --..............._—____19__. , and once each........_.__._._..._..thereafter for...__.. _. consecutive.._.__ _ .day_ one Times. 40.81 LORRAINE CORTEZ �_ AGGOUNDING-GLERE - . 12th AUGUST Subscribed and sworn to before me this_._.. day of _ _..-_...._ .. _._ 19. LOIS WINN �.644 y Public, County, Texas f AN A U T H Of,a IINGA N -4X E C U - TION OF A SURFACE LEASE FOR A 2.07 -ACRE DRILL SITE IN LOT 13, SECTION 56, FLOUR BLUFF AND ENCINAL FARM AND,GARDEN TRACTS, WITH EXXON CORPORATION AND SUN OIL COMPANY AS LESSEE AND TME CITY OF COR PUS CHRISTI AS LESSOR, FOR A TERM OF UP TO SIXTY YEARS, IN CONSID- - ERATION OF A CASH RENTAL PAYMENT OF 9850 FOR THE FIRST YEAR AND A LIKE AMOUNT PLUS AN AN-• NUAL INCREASE OF EIGHT PERCENT FOR THE REMAINDER OF THE LEASE TERM, ALL AS MORE FULLY SET FORTH IN THE SURFACE LEASE FOR DIRECTIONAL DRILL SITE, A SUB. STANTIAL COPY OF WHICH 15 ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "1". THE' TTY'Rt0Or ,C''0P THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be authorized to ex- ecute a surface least. for a 2.37 -acre drill site In Lot 13, Section 56, Flour Bluff and Enclnal Farm and Garden Tracts, situated In the La- guna Madre, Nueces County, Texas, with Exxon Corpo- ration and Sun 011 Companys lessee and the City of Corpus Christi as lessor, for a term of up to Stith/ years, In can alderatidn of a cash rental payment of 0850 for the first . year and annual payment 0, the previous years rente plus an annual payment 0 - the previous year's renta plus an annual Increase o' eightpercent, all as mor( fully set forth In the Surface Lease for Directional Orli Site, a substantial copy 01 which Is attached hereto and made a pert hereof, marked Exhibit '1". SURFACE LEASE FOR DIRECTIONAL DRILL SITE THE STA,. 0p0—T XAS COUNTY OF NUECES KNOW ALL MEN BY THESE FRlS1=N 15: The Clfq Corpus Christi, nd berelnatf�r c8),)ad "Grant- or," Eight H n consideration No/130 Dollars • (5850.06) cash and other valuable con- siderations to It In hand paid by Exxon Corporation and Sun Oil Company (a Dela- ware corporation), here. (natter called "Grantee," the receipt and sufficiency of which are hereby acknowl- edged and confessed, does hereby grant, lease and let exclusively unto Grantee, Its successors and assigns, the lolbwing: 'any %an flow imiecrWy ! Granteeby �vlrtbe0fgny Com Mane ar."ie11L pp)), 3000! mineral lease coveirmg-M0br any portion of the premises described above. It Is understood and agreed by Grantor and Grantee that the oil, gas or other minerals prpcl uced from a well drilled Ab10 the above described site, the completion interval of which Is located under land or leases other than lands In which Grantor owns a royal. ty or mineral Interest, shall be owned by Grantee. It Is not necessary for Grantee herein to account to Grantor for any portion of production Irons the well drilled from said surface location, the completion Interval of which Is under lands or theses en. der whic',) Grao0Qtr owns no Interest In the minerals or royalties. Grantee shall have the right to enter upon the prem- ises and remove -any and all machinery,- equipMent, or other personal property, • whether affixed to the land or not, for six (6) months fol. lowing termination h8Ye08. It Is distinctly understood that fhls is nota conveyance of the land covered by said surface lease nor of the mlenrals therein and there- under, but conveys only the surface lease herein de• scribed. II Is further agreed that Exxon Corporation will corn. ply with all applicable ordl. trances and provialons of Chapter 35 of the Code of Or. dlnances for the City of Cor. pus Christi and the granting of said lease shall In no man- ner affect the right of Grant- or In enforcing said ordl. nances. It Is further agreed that said lease shall not be trans. (erred, assigned or sub• leased by Grantee except with the approval of Grantor expressed by ordinante:ex- cept as between Exxon Cor- poration and Sun 011 Com - pang (a Delaware cot 'Oration) or their --W e, cess0rs. TO HAVE AND TO HOLD the aforesaid surface lease together with the rights of in- gress and egress, unto Grantee, Its successors and assigns, for the purposes set out herein,- for ,so long as used for the purposes, or any part of them, herein granted. EXECUTED this the -- day of ---, 1980. EXXON CORPORATION. By Attorney In Fact SUN OIL COMPANY (Delaware) By Attorney In Fact CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager ATTEST: City Secretary APPROVED: I - _ DAY OF .__1980: TTlw right, ant ro t , 080 privilege to use a 2.07 acre directional drill site at 8 lo. cation as shown on the map marked Exhibit A attached hereto and made a part here- of tor all purposes. The di- rectional drill site will be used for the production [doll, gas, or other minerals from one well completed on State Tract 13 in the ,Caguna Madre, Nueces County, Texas (Exxon Lease No. 57718). This grant Includes the right to construct, use, operate, maintain, replace, alter, protect, and remove any and all foundations, der ricks, oil or gas wellhead and • completion equipment, manifolds, storage tanks, p 1pellnes, telephone and - power Inc,l, pits, separators, treating and measuring equipment, wells, water B all dis- posalother equipment, fixtures, and fa. ditties necessary or 00000n - lent In connection with the drilling for the producing, handling, storing, treating, and marketing of oil. gas or other minerals that may be produced herefrom. 2. Ingress and egress by roads mutually agreeable to Grantor and Grantee. 3. A subsurface easement through and under said di• rectIonel drill site and through and under any lends of Grantor situated adtacent or contiguous t0 or In the vi- cinity of said directional drill site In connection with the drilling of a directional ,well and the/00781100 Ind pro- duction thereof. The teenf thiathase glia f bo e limited t0 sixty year, from the ddte of this lease or sooner It Grantee abandons said leased area. As additional consid- eration for the rights herein granted, Grantee agrees tc pay as rental to Grantor a1 the. petroleum Superintend. ant's office located at 302 S. Shoreline, P.O. 9277, Corpus 'Christ), Texas 711408, on or before the first anniversary date of this lease, the sum of Nine Hundred Eighteen and No/100 Dollars (0918.00) and said rental shall Increase eight percent over and above the previous year's rental for each successive year said these is in effect until such time as Grantee abandons said leased area or the term of the lease expires. Suct payment may be made b1 the check or draft 0f Granter mailed or delivered to Grant or at the aforesaid address on or before the annlversar date. Failure of Grantee ti pay the said rental with), thirty days after the an nlversary date of said lease shall cause said tease to ter m)nate an12-#11•71ffinathithf .edhereunder shall automat Welly revert to -Grantor., gtMdtsistobd -ant - fhrtgtd6 he7eh _armful shalt be th+sddRl _t0 hnd not to dorcaayle 0 PUBLISHER'S AFFIDAVIT STATE OF TEXAS, la„ County of Nueces. J� Before me, the undersigned, a Notary Public, this day personally came. IARRAINE CORTEZ who being first duly sworn, according to law, says that he is the ACCOUNTING CLRRR of the Corpus Christi Caller and The Corpus Christi Times, Deily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of NOTICE OF PASSAGE OR ORDINANCE ON FIRST READING AUTHORIZING EXECUTION A SURFACE J.F.ASE FOR. of which the annexed is a true copy, was published in THE. rnRPJJrt .CSBI.STLCALLEE=I S on the 4th day of.._ _AUGUST _.__ ._ 194 and once each. a8T._..._thereafter for_ one consecuttve..__.__.._..__..._..._t�!( ._ 1114 ^one _Times. J LORRAIN CORTEZ ACCOUNTING f] i ACCOUNTING CLERK Subscribed and sworn to before me this_._.._8.a. __day f5frr. LOIS WINN AO Ido Public, ueces County, Texas NOTICE D DINA 'CE OtC FIOST RF -DING n'ITHL 6171.5GF.U- LEASE FOR A 1.07 -ACRE 'DRILL SITE IN LOT 13, I BLUFF AND ENC NAL ' ,FARM ND GAREN I TRACTS, WITH EXXON CORPORATION AND SUN 1 OIL COMPANY AS LESSEE 'AND THE CITY OF COR- ' PUS CHRISTI AS LESSOR, ; FOR A TERMUP TO SIXTY YEARS, NFCONSID IERATOF A RENTALNPAYMENTASH OF 8850 FOR THE FIRST YEAR AND A LIKE I AMOUNT PLUS AN AN- _ NUAL INCREASE OF EIGHT PERCENT FOR THE REMAILEASE TERMS OF HE AS E FULLY SET FORTH NO THE SURFACE LEASE 'FOR DIRECTIONAL ;DRILL SITE, A SUB• STANTIAL COPY OF WHICH IS ATTACHED. HERETO AND MADE A PART HEREOF, MARKED (EXHIBIT"1". given that Notice Is hereby ICorpos l'he City Council of e Christi has,on the ',30th day of July, 1980, ap- proved on first reading th laforementloned ordinanc 'The full text of said ordl• dance Is available to the pub-iI Ills in the Office of the City Secretary- -s -Bill G. Read Bill G. Rend, City Secretary City of Corpus Christi, Te030 PUBLISHER'S AFFIDAVIT STATE OF TERAS, Ls: County of Nueces. f Before me, the undersigned, a Notary Public, this day personally came. LORRAINE CORTEZ who being first duly sworn, according to law, says that he is the ACCOIINTING CLERK of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of AN ORDINANCE OF A SURFACE LEASE FOR 2.07 acre drill site in lot 13, section 569 FLOUR BLUFF. THE CORPUS CHRISTI CALLER -TIMES of which the annexed is a true copy, was published in on the..lSth day of_AUGUST 19 BO , and once each__ day _.__._thereafter for one consecutive.. days one des, 104x4 5QRRATNE rORTR7 accounting clerk Subscribed and sworn to before me this _?0th may of__...._.. AUGUST 19 80 LOIS WINK Notary Public, Nueces County, Texas