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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&GT 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.