HomeMy WebLinkAboutM1994-147 - 06/14/1994MOTIONS - 6/14/94
Motion awarding a lease to Pittencrieff America, Inc. for lease of mineral interests
belonging to the city, consisting of 0.4167 mineral acres in a 30-acre tract, being
Lot 1 and the west % of Lot 2, Block 48, Flour Bluff and Encinal Farm and Garden
Tracts subdivision in the amount of $405 based on the bid determined to be most
advantageous to the City.
ATTEST:
City Secretary
Mayor'
City of Corpu's~Christi
M94-147
City of Corpus Christi
TO: Juan Garza, City Manager DATE: August 14, 1995
FROM:~amos Senn, Petroleum Superintendent and~~~
~ Alison Gallaway, Assistant City Attorney _
SUBJECT: Execution of Division Orders
Attached are Division Orders from Pittencrieff America,
Inc. for their lease of city minerals granted by City Council
Motion M94-147 on June 14, 1994. The leased minerals have been
pooled with other minerals and allocated to Pittencrieff's Petty
Well No. 1 production for the payment of royalties. The City's
lease reflected an gwnership interest twice the .00008681 RI
determined by the attorneys who prepared the Division Orders and
their explanation is acceptable. Lease paragraph 9 addresses
this type of variance and no council action is required.
Ordinance No. 14649 authorizes the City Manager to execute
Division Orders.
We recommend that you execute the submitted Division Order
with two witnesses so that the city can begin to collect
royalties.
JC:pa
Attachment
Pittencrieff America, Inc.
August 8, 1995
Mr. James Conn, HI
Petroleum Superintendent
City of Corpus Chri
P.O. Box 9277
Corpus Christi, Texas 78469-9277
Re: Lot 1 & WI2 Lot 2, Block 48, FI~EF> Subdivision, Nueces County, Texas;
Title history, Omer McGuire mineral interest
Steve Goff, a brother of Jean Goff Brett, died intestate in 1915 as the owner of a 1/18th mineral
interest under the above refe~mced U'act. He left as his heirs, eq~mlly, Louise Goff Chtlrchill,
Gladys Crider, Sadie Bieberich and Nellie R. McCmire.
Mrs. McCmire died intestnt,% and having no children, her interest (1/72), passed 1/2 to her
husband Omer McGuire, and 1/2 to her siblings. Consequently, Omer McGuire's interest (1/2
of 1/72), tnssed to the City of Corpus Christi by Sheriff's Deed dated November 4, 1975,
recorded in Volume 387, Page 962 of The Deed Records of Nueces County, Texas.
Should yon desire further information, please don't hesJtnt~ to call.
R. Steven Reupke
(512) 882-8522
347 Graham Road Corpus Chdsti, Texas 78418 (512) 937-5273 Fax (512) 937-5058
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 entit~gd to. royalty hereunder, Lessee may withhold paymen~
thereof unless and until furnished with a recordable instrument
executed by all such parties designating an agent to receive
payment for'all.
9. Lessor does not warrant the title to the land described
herein and it is agreed that if lessor owns an interest in said
land mor~--les$ ~ha~ the entir~ fee simple estate~ ~hen the
royalties~to,, be paid Lessor shall be
proPortiOnaiiy. --~--, ....
10. : If the Lessor owns the surface of
increased or reduced
the leased premises,
nothing in the lease granted the Lessee will serve as the right
to lay pipelines or operate drilling rigs
above described land.
11. Upon expiration or termination of
thereof, Lessee shall provide Lessor
Lessee's rights or interest in the
terminating.
.12. The Lessee will
City ordinances and
the Lessee's acts,
operations.
to absolve
be
regulations and for
negligence, and/or
Nothing in the lease granted
from the surface of the
this lease, or portion
a written release of all
minerals so expiring or
responsible for compliance with all
damages resulting from
wrongful conduct of
the Lessee is intended
the Lessee of these legal obligations.
5
PITTENERIEFF AJ~RICA, INC.
P. O. em( 6129
ASI£ESE, IX 796(]8
City of CorFxm Christi
P. 0. 8oxgZTT
Cor~Js Chrieti, TX 78~08
OIL & GAS DIVISION GLIDER
(Tastee)
PIIOFERTY NO.: TX084~10
EFFECTIVE DATE: Octd~r 13, 1994
DATE:
The undersigned severatty and not jointly certifies It is the Legal okner of the interest set out betou of aLt the oil,
gas, cesinghead gas amd related Liquid hydrocmrbono produced Irma the property described betee:
GFEP, ATON:
PROPERTY MANE:
STATE:
LEGAL DESCRIPTION:
OONER ~:
TAX 10/SS# PAYE~:
DIVISION OF INTEII~ST:
PITTEIdERIEFF ~E]IICA, INC.
PETTY FLOON BLUFF (DEEP CONSOL.) GAS UNIT NO. 1
TEXAS
NUECES
Al described m~ Exhibit UA- attached hereto and made · pert hereof
N1573
. _00(X~___I SI
THIS AGF~EIBIT NOES NOT ~ MY LEASE OII CI~IATIIIG ~ NElI~EEN TIE IMTEIIEST OilERS kl~ TIE LESSEE OII OIF. IIATON
OR Ally OTIIER ~ FI]Il TeE ~ 43~ OIL ~11 GI~.
The fottomlog provlaJune apply to m interest outer ("omer') aha -~-__-~,__~cee thle ogreenent:
TFJIflSOF SALE: The~ndersJgneduJii be paid ineccordenoe ~Jth the dJvlslanof interests set out above. The payor shaLL
pay aLL parties et the price agreed to by the operstor for oiL, gee, cesinghend gas and reteted Liquid hydrocarbons to be ectd
pursuant to this division order. Purcheser sheLL coopute quantity end mke correctJon~ for gravity end ten~eretures and make
deductions for Impurities.
For aLL ges taken hereunder, the ~lerslgnod utii he paid the market value et the seLL or seLLs of such gas ~hich for
att purlx~es hereunder shell be considered the price recelvnd by Operator for s~ch gas, under an/presentLy existing or any
future contracts for the sale of gas, et the delivery paint, Less, as operating candittone In Oparator's opinion require, an
amount sufflclent to reimburse Operator for eLL costs Ihcurred in making delivery of any such gee from the ~eiiheed and shaLL
include, bJt not byueyof limitation, the costs of gathering, dehydrating, compresslng, treating end trenspertlng the gas.
PAflEIIT: From the effective date, payment Is to he mede monthly by payer's check, based on this division of interest,
for oil no Later than etxty (~)) days after the end of the calendar month in~hlch eubesquant oil prnductoin ts sold end for gas
and related Liquld hydrucerhens, no Later than ninety (~0) days after the end of the calendar month in ~nlch subsequent gas
production Is sold from the property listed sbove, Less taxes requlredby Law tohe deducted and remitted by payor as purchaser.
Payments of less than $25.00 mayhe eccruadbefore disbursement ontli the total am~nt equals S25.00 ormore, or until December
31 of each year, ~hichever occurs first. Payee egress to refund to payer any amounts sttributebie to an interest or F~rt of an
interest that payee doss not o~n.
]NOERN]TY: The o~er agrees to Indemnify and held payor harmless from eLL LiabiLity resulting from payments made to
the o~er in accordance with eoch divleton of Interest, tncL~xttng but not Limited to attorney fees or judgments tn con~ection
with a~, suit that effects the oaner's Interest to ~nlch payor Is made a party.
OXSPUTE: VITIIilOLO]HGOF FUllS: If · suit Is filed that affects the Interest of the okner, ~rlttennottce shall be given
to payor by the ok~er together ~lth · copy of the complaint or petition filed.
In the event of · claim or dispute that effects title to the division of Interest credited herefn, payor Is authorized
to ~ithhoLdpaymenteeccrutng to Such Interest, ulthout Interest unLees other~iee recluiredbyappllcebie statute, untiL the cLaim
or dis[xJte Is settled.