HomeMy WebLinkAbout16745 ORD - 12/09/1981sp;12/7/81;lst.
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE YEAR
MINERAL LEASE FOR THE 45.3 ACRE NUECES RIVER PARK
TRACT TO TEXAS EASTERN EXPLORATION COMPANY FOR A CASH
BONUS OF $5,209.50, AN ANNUAL DELAY RENTAL OF $453.00
AND A 22.5 PERCENT ROYALTY, ALL AS MORE FULLY SET
FORTH IN THE LEASE AGREEMENT, A SUBSTANTIAL COPY OF
WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARK-
ED EXHIBIT "A"; AND DECLARING AN EMERGENCY.
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
to execute a three year mineral lease for the 45.3 acre Nueces River Park
Tract to Texas Eastern Exploration Company for a cash bonus of $5,209.50,
an annual delay rental of $453.00 and a 22.5 percent royalty, all as more
fully set forth in the lease agreement, a substantial copy of which is
attached hereto and made a part hereof, marked Exhibit A.
SECTION 2. That upon written request of the Mayor or five Council
members, copy attached, to find and declare an emergency due to the need of
executing the aforesaid mineral lease so that exploration may start at the
earliest possible date, such finding of an emergency is made and declared
requiring suspension of the Charter rule as to consideration and voting upon
ordinances or resolutions at three regular meetings so that this resolution
is passed and shall take effect upon first reading as an emergency this the
qday of December, 1981.
ATTEST:
Ci Secretary
Ci Secretary
APPROVED:
44- DAY OF DECEMBER, 1981
J. BRUCE AYCOCK, CITY ATTORNEY
By
Ass
Cant City Attorney
MAYO
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THE CITY OF CORPUS CHRISTI, TEXAS
MEP 24 i984
OIL AND GAS LEASE
AGREEMENT, made and entered into the 9th day of December, 1981, by
and between the City of Corpus Christi whose post office address is Box
9277, Corpus Christi, Texas 78408, hereinafter called Lessor (whether one
or more), and Texas Eastern Exploration Company, hereinafter called Lessee,
whose address is P.O.Box 2521, Houston, Texas 77001.
1. WITNESSETH: That the said Lessors, for and in consideration of
Five Thousand Two Hundred Nine and 50/100 Dollars ($5209.50) cash in
hand paid, 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 purpose
and with the exclusive right of exploring, drilling for, and producing
oil and gas, subject to limitations contained herein, all that certain
tract of land situated in the County of Nueces, state of Texas, described
as follows, to wit:
Being a part of the Lula Mae Noakes Estate, lying and
situated in Nueces County, Texas and described as
follows:
Beginning at a point, the North East corner of a
13.683 acre tract conveyed to the City of Corpus
Christi, Texas, by deed dated September'18, 1941,
and recorded in the Deed Records of Nueces County,
Texas Volume 274, Pages 48-50, for a corner of
this tract:
Thence S. 74 deg. 53' W with the North Boundary
line of the aforesaid 13.683 acre tract a distance
of 414.0 feet to the East right bank of the Nueces
River for a corner of this tract:
Thence in a northerly direction with the meanders
of the Nueces River a distance of 6,220 feet more
or less, to a point, the intersection of the South
right bank of the Nueces River and the West R.O.W
line of State Highway No. 9 for a corner of this
tract:
Thence S 17 deg. 32' E with the West R.O.W line
of State Highway No. 9 a distance of 5,356.7 feet
to a point, the P C of a circular curve to the
right of radius 2,779.9 feet and curvature 2 deg.:
Thence to the right with said circular curve a dis-
tance of 94.8 feet to the place of beginning, and
containing 45.3 acres, more or less.
2. For the purpose of determining the amount of any money payment
hereunder, said land shall be considered to comprise 45.3 mineral acres,
even though it actually comprises more or less, subject to paragraph 10.
3. It is agreed that this lease shall remain in force for a term of
three (3) years from this date, said term being hereinafter called "Primary
Term" and as long thereafter as either oil or gas is produced from said
land by Lessee subject to termination provisions and hereinafter provided.
4. The royalties to be paid Lessor are (a) on oil, or oil well gas
from a well defined by Texas Railroad Comission as on oil well, twenty-two
and one-half percent (22.57,) of that produced and saved from the net city
land, the same to be delivered at the wells or to the credit of Lessor
into the pipeline to which the wells may be connected; (b) on gas, oil,
or other substance from a well defined by the Texas Railroad Commission
as a gas well, produced from the net city land and sold or used off the
premises, the market value at the well of twenty-two and one-half percent
(22.5%) of the gas or oil so sold or used. Lessor reserves the right at
his option, to at any time take his share of the oil, oil well gas,
gas well gas, and associated liquids, in kind, all delivered at the wellhead.
5. If production of oil and/or gas is not obtained on said land on
or before the_9th day of December, 1982, this lease shall terminate es
to both parties, unless Lessee on or before that date shall pay or tender
by the check or draft of Lessee, and delivered or mailed to Petroleum
Superintendent, P.O.Box 9277, Corpus Christi, Texas 78408 the sum of
$10.00 per acre, which shall operate as rental and cover the privilege
of deferring the production of oil and/or gas for twelve (12) months, from
said date. In like manner, and upon like payments or tenders annually, the
commencement of such production may be further deferred for like periods of
the same number of months successively during the primary term. The cash
bonus is to be considered for this lease according to its terms and shall
not be allocated as mere delay rental for any period. The term "production
of oil and/or gas" means production of oil and/or gas in paying quantities.
6. During the primary term, any portion of or all the lands herein above
described as subject to this lease shall be held under this lease only by the
payment of delay rentals or royalty payments; provided, however, that upon the
expiration of the primary term, said lease will terminate, save as to the number
of acres allocated by the Railroad Commission of Texas for each well from which
oil or gas in paying quantities is being produced.
7. Lessee is hereby given the right and power to unitize or combine
the land covered by this lease or any portion thereof, subject to compliance
with the requirements for City Drilling Blocks, for gas or oil with any other
land, lease or leases located adjacent to or contiguous with, when in
Lessee's judgment it is necessary or advisable to do so in order to properly
develop and operate said premises, and upon notifying Lessor, provided that
no unit for gas so created shall exceed 360 acres in size. If production is
found on the pooled acreage, it shall be treated as if production is had from
this lease, as to the land so pooled, whether the well or wells be located on
the premises covered by this lease or not. In lieu of the royalties else-
where herein specified, Lessor shall receive on production from a unit so pool-
ed only such portion of the royalty stipulated herein as the amount of his
acreage placed in the unit or his royalty interest therein bears to the total
acreage so pooled in the particular unit involved.
8. If at the expiration of the primary term, oil and/or gas is not -
being produced on said lands or on lands, pooled herewith but lessee is then
engaged in drilling or reworking operations therein, the lease shall remain in
force sixty (60) consecutive days, and if they result in the production in -
paying quantities of oil or gas, then said lease will terminate, save as to the
number of acres allocated by the'Railroad Commission of Texas for such well or
wells.
9. The right of either party hereunder may be assigned in whole or in.
part and the provisions hereof shall extend to the heirs, successors and assigns,
but no change or divisions in ownership of the land or royalties, however,
accomplished, shall operate to enlarge the obligation or diminish the rights
of Lessee. No sale or assignment by Lessor shall be binding on Lessee until
Lessee shall be furnished with a certified copy of recorded instrument evidencing
same. If six or more parties become entitled to royalty hereunder, Lessee inay
withhold payment thereof unless and until furnished with a recordable instrument
executed by all such parties designating an agent to receive payment for all.
10. Lessor does not warrant the title to said lqnd and it is agreed that
if Lessor owns an interest in said land more or less than the entire fee simple
estate, then the royalties to be paid Lessor shall be increased or reduced
proportionally.
11. Upon expiration or termination of this lease, or portion thereof,
Lessee shall provide Lessor a written release of all Lessee's rights or. interest
in the minerals so expiring or terminating.
12. Nothing in the lease granted the Lessee will serve as the right to
lay pipelines or operate drilling rigs from the surface of the above described
land.
13. The Lessee will be responsible for damages resulting from the
Lessee's acts, negligence, and/or wrongful conduct of operations. Nothing in
the lease granted the Lessee is intended to absolve the Lessee of this legal
obligation.
14. Should Lessee be prevented from complying with any express or
implied covenant of this lease, from conducting drilling or reworking operations
thereon or from producing oil or gas therefrom by reason of strike, by operation
of force majeure or by any Federal or State law, then while so prevented through
no fault of Lessee, Lessee's obligation to comply with such covenant shall be
suspended, and Lessee shall not be liable in damages for failure to comply
therewith; and this lease shall be extended while and so long as Lessee is
prevented by any such cause from conducting drilling or reworking operations on
or from producing oil or gas from the leased premises and the time while Lessee
is so prevented shall not be counted against Lessee, anything in this lease to
the contrary notwithstanding.
IN WITNESS WHEREOF, this instrument is executed in duplicate on the
date first above written.
CITY OF CORPUS CHRISTI, TEXAS
BY:
ATTEST:
City Secretary
Ernest M. Briones
Acting City Manager LESSOR
APPROVED AS TO LEGAL FORM:
day of , 1981
BY:
CITY ATTORNEY LESSEE
THE STATE OF TEXAS X
COUNTY OF NUECES X
BEFORE ME, the undersigned authority, on this day personally appeared
ERNEST M. BRIONES, Acting City Manager of the City of Corpus Christi, Texas,
known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledge to me that he executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated and as the
act and deed of said City.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
•
THE STATE OF TEXAS X
, 1981.
Notary Public, Nueces County, Texas
COUNTY X
BEFORE ME, the undersigned authority, on this day personally appeared
for Texas Eastern Exploration Company, known to •
me to be person whose name is subscribed to the foregoing instrument, and acknow-
ledged to be that he executed the same for the purposes and consideration therein
expressed and as his free act and deed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
, 1981.
Notary Public
Corp s Christi, Te s
day of , 1981
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance or resolution,
an emergency exists requiring suspension of the Charter rule as to consideration and voting
upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you
suspend said Charter rule and pass this ordinance or resolution finally on the date it is
introduced, or at the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following vote:
LutheF=Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
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