HomeMy WebLinkAbout026994 ORD - 09/19/2006AN ORDINANCE
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE
AN OIL AND GAS LEASE WITH EOG RESOURCES, INC. ON
APPROXIMATELY 160 GROSS ACRES OF LAND OWNED BY THE CITY
OF CORPUS CHRISTI NEAR THE CORPUS CHRISTI INTERNATIONAL
AIRPORT FOR A CASH BONUS BID OF $26,140, $25.00 PER ACRE
DELAY RENTALS, 25% ROYALTY, WITH A THREE YEAR TERM, AS MAY
BE EXTENDED INDEFINITELY BY CONTINUING DRILLING
OPERATIONS.
WHEREAS, the City advertised for bids to lease minerals, with a minimum bid of $300.00
per acre, $25.00 per acre delay rentals, 25% royalty, with a three year term, as may be
extended indefinitely by continuing drilling operations; and
WHEREAS. only one (1) bid was received at bid opening.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. The City Manager, or his designee, is hereby authorized to execute an oil
and gas lease with EOG Resources, Inc. for $26,140 cash bonus, with a $25.00 per
acre delay rental, and a 25% royalty, upon the terms in the bid specifications, which
was determined to be the bid that was most advantageous to the City, for the property
described on the attached and incorporated Exhibit A. A copy of the oil and gas lease
will be placed on file with the City Secretary.
That the fore oin ordinan - w_ a_ read or the first time and passed to its second reading
on this the i, of
, 2006 for the following vote:
Henry Garrett Bill Kelly
Brent Chesney , Rex A. Kinnison
John E Marez � , Jesse Noyola
Melody Cooper :►. Mark Scott
Jerry Garcia
That the oregoing ordinanc was read for the second time and passed finally on this the
s...�.._�._� 2006, by the following vote:
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
day of of
Henry Garrett
Brent Chesney
John E. Marez
Melody Cooper
Jerry Garcia
APPROVED AND PASSED on this _4,1 day of
ATTEST
Armando Chapa, City Secretary
APPROVED: September 7, 2006
Wendy E. Olen
Assistant City Attorney
For City Attorney
n2f;994
2006.
EXHIBIT A
LEASED PREMISES
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Dwrw.BY: YICTORG
WY OF AFrrov,:D er DEBRAK
CORFU CHRISTI
INTERNATIONAL AINPORT
AYIAIION DEPT.
DATE 4/22006