HomeMy WebLinkAboutMinutes - City Council - Regular - 8/19/1941RL'CES3331) R `('uL%R
Lubbock,Texas, ' gust 19, 1941.
The "ity Commission of the City of Lubbock, "exas, met at 11
in Recessed Regular Session, necessed from Reg- lar L:eeting of
August 14, 1941, at the Regular I.-eeting .'lace in the "ity Hall,
the followindlembers thereof being present, to-vit:
l°ayor C E Slaton, Commissioners + G I.:cl:illan, +d B trice, Ilub Jones,
Garland Ilewsom, City :'Lttorney Duri,,00d L Bradley, uit�T P.:anager ,f IT
Rodgers and City secretary Lavenia -dilliams.
Absent: None.
ORDER AL'I' QRTZl?'G I.:IIVERkL LEASE CITY OF LUBBOCK TO N.C. ;1ALTER AND
'J. EARL bl.:ITH.
Be it remembered that on this, the 19th day of `Lugust, 1941,
at a Recessed Ret•ular meeting of tile City Commission of the City of
Lubbock, Texas, it was duly moved by Commissioner IacE.illan, seconded
by Commissionor Jones, unanimously carried by affirmative vote of
mayor and all city commissioners, Vaat it appearing to the City
Commission, and the City Commission finding, that the mineral estate
in the 886.18 acres of land owned by it in sections one, two and three
ii, Block "B", Lubbock County, Texas, more fully described in accompany-
ing escrow agreement and mineral lease, naming N.C. ':salter and _ir. Earl
with as Lessees, is not and does not constitute any part of the Uity
Light, ',dater, Sewer, or natural gas systems, parks andlor swimming pools,
but constitute oil and r.,ineral land that should be leased, by virtue
of Art. 1267 of the Texas Statute granting such power, and the City
Commission further finding that it ,,;ould be advantageous to the �'ity
of Lubbock and for its benefit to enter into the accompanying escrow
agreement and execute the accompanying mineral lease in favor of
said Lessees according to the terms thereof, the Honorable Carl Slaton,
I.:ayor of the City of Lubbock, is hereby authorized and directed, in
behalf of the Jity of Lubbock, to make and enter into said escrow
agreement and :.:ineral lease with the said N.C. ;falter and 1+. Earl Smith.
Passed and adopted by unanimous vote.
Attest: _ Lavenia '.lillaMs
7%ity�Secretary.
C Z Slaton
`IM r o r�
STATE. OF TEXAS
LUBBO CTi COU!JTY .
CITY OF LUBBOCK
TO
N. C . 'JALTER AND W. EARL Sl:ITH
ESCRO1 AGREM:ENT
The City of Lubbock, Lessor, and 1T.C. '.Talter and ,d. marl
Smith, Lessess, have this day placed copy of this contract, with
accompanying oil and gas lease on 886.18 acres of land out of Sec-
tions one, two and three in Block "B" in Lubbock County, 'Texas, with
Citizens National Bank, Lubbock, Texas, hereby named as depository
or escrow agent, with the agreement that Lessor shall furnish to Lessees
forthwith complete abstract of title to said land, showing Lessor has
good and merchantable title, pith power to make said lease. If lessees
have said abstract examined, they shall forthwith furnish Lessor with
copy title opinion showing any defacts that render title unmerchantable.
Lessor shall have reasonable time in which to cure any such defects.
If Lessor is not able to cure such objections within a reasonable
time, this contract shall be null and void. ihen such good and merchantable
title is furnished, Lessees shall within forty-five days thereaftc2 commence
drilling; of oil well as stated in accompanying lease, and upon the
commencement of such well and accompanying; lease shall be delivered to
Lessees. Should Lessees fail or refuse t, co:.n:.ence said well, or to continue
drilling; same, as stated in said lease, Lessor shall have the right to
declare this contract null and void, and said lease shall be returned to
Lessor. In aduition, there is deposited with copy of this contract with said
escrow agent, the sum of forty -'three :Hundred r'ifty (�4350.00) Dollars
as good faith honey, to be forfeited to the City in the event the
Lessees .fail or refuse to commence said yell n ithin the tine mentioned.
out if said hell is commenced vithin the time stated said sum
shall be returned to Lessees when drilling is commenced.
Delay, if any, caused by strifes, flood, fires, government
interferences or other causes beyond control of Lessees shall not
be counted as part of the forty-five days stated.
This 19th daV of `Lugust, ".D. 1941.
Attest:
Lavenia Williams.
City � c rree t^.ry :
(weal)
OIL, GAS AlTD I:IIT 1-ZAL LEASE
CITY 01 IUPBOCK, J_,ESSOR
By; C ! Slaton Layor
This agreement made this 19th day of August941, between City of
A.C.A
Lubbock, lessor (whether one of more), and Valter and W. Earl
Sr:ith, lessees WITHESSETH:
1. Lessor in consideration of Den L No/100 - - - - Dollars,
(110.00) in hand paid, of the royalties herein provided and of the
agreements of lessee herein contained, hercQ grants, leases and lets
exclusively unto lessee for the purpose of investigating, explorin-,
prospecting, drilling and mining for and producing oil, gas and all
other minerals, laying pipe , lines , building tanks, power stations,
telephone lines and other structures thereon to produce, save,
take care of, treat, transport and own said products, and housing
its employees, the following described land in Lubbock County, Texas
to -wit:
886.18 acres of land, being 786.18 acres out of Section One (1)
and southwest one-fourth (S;V4) of Section Two (2) in Block "B"
(containing 800.15 acres, less 13.97 acres conveyed to F.N. & D.S.
P. Ry. for right-of-way) and 100 acres out of Section three (3)
Block "B" conveyed by Tol and aid Caraway to City of Lubbock by deed
dated Aug. 14, 1925, of record in Vol. 97, P. 438, Lubbock County
Deed Records.
The exercise of rights granted to Lessees under this lease shall of
interfere with construction, maintenance or operation of City's
disposal system on said land.
2. Subject to the other provisions herein contained, this lease shall
be for a tern of ten years fran this date ( called "primary term")
and as long thereafter as oil, gas or other mineral is produced from
said land Lareunder.
3. The royalties to be paid by lessee, are: (a) on oil, one -eighth of
that produced and saved from said land, the same to be delivered at the
wells or to the credit of lessor in the pipe line to which the wells
may be connected; lessee may fror_ time to time purc1-.ase any royalty
oil in its poss6ssion, paying the market price therefor prevailing for
the field viliere produced on the date of purchase; (b) on gas, including
casinghead gas and other vaporous or gaseous substances, produced from
said land, as follows: In case lessee shall itself use gas in the
manufacture of gasoline or other products therefrom 1-8 of 25 per cent
of the market value at the plant of the gasoline or other product rianu-
factured therefrom, quantity of product to be ascertained in a manner
recognized in the industry; in case lessee shall sell gas at the wells,
1-8 of the amount realized frori such sales; and in all other cases when
sold or used off the premises, the market price at the well of 1-8 of
the gas so sold or used; and (c) on all other mineral rained and marketed,
one -eighth, either in kind or value at the well or rain at lessee's
election, excey:t that on sulphur the royalty small be fifty cents (50V)
per long ton.
4. If operations for drilling; are not commenced on said land on or before
one year from t-.ais date this lease shall then terminate as to both
parties unless on or before such anniversary date lessee shall pay or
tender° to lessor or to the credit of lessor in Citizens national Bank at
Lubbock, Texas (which bank and its successors are lessor's agent and
shall continue as the depository for all rentals payable hereunder
regardless of changes in ownership o-' said land or the rentals) the sum
ofLight Hundred yighty jix & 18/100 - - - Dollars (�886.18)',(herein
called rental), which shall cover the privilege of deferring commencement
of drilling operations for a period of ttaje lve 12) months. In like manner
and upon like payments or tenders annually the commencement of drilling
operations may be further deferred for successive periods of ts-jelve (12)
months each durin.� the pri,'ary term. The UDaynont or tender of rental may
be made b the check or draft of lessee mailed or delivered to said Bank
on or before such date of payment. If such bank (or any successor bank)
should fail, liquidate or be succeeded by another bank, or for any reason
fail or refuse to accept rental, lessee shall not be held in default for
_'ailure to make such payment or tender of rental until t':irty (30) days
after lessor shall deliver to lessee a proper recordable instrument,
naming another bank as agent to receive such payments or tenders. The
down cash payment is consideration for this lease according to its terms
and shall not be allocated as mere rental. for a period.
5. If prior to discovery of oil or gas on said land lessee should drill
a dry hole or holes thereon, or if after discovery of oil or gas the
production thereof should cease from, any cause, this lease shall not termi-
nate if lessee cor-me nce s additional drilling or re-,Ajorking operations
within sixty days thereafter or (if it be within the primary term)
comriences or resurne s the payment or tender of rentals on or before the
rental paying date next ensuing after theexpriation of three months from
date of completion of d_•y hole or cessation of production. if at the
expiration of the primary term oil or gas is not being produced on said
land but lessee is then engaged in. drilling or re -working operations there-
on, the lease shall remain in force so long as operations are prosecuted
with no cessation of more than 30 consecutive days, and, if they result in
the production of oil. or gas, so long thereafter as oil or gas is
produced from said land. In the event a well or wells producing oil or
gas in paying quantities should be brought in on adjacent land and
within 150 feet of and draining• the leased premises, lessee a€sees to
drill such offset wells as a reasonably prudent operator ,,4ould drill under
the same or similar circumstances.
6. Lessee shall sieve free use of oil, gas, wood and water fro said land,
except .,.ater from lessor's swells, for all operations hereunder, and the
royalty on oil ana gas shall be computed after deducting any so used.
Lessee shall have the right at any time Burin,-• or after the expiration
of this lease to remove' all propert-, and fixtures placed by lessee on
said land, including the right to draw and remove all casing. -'hen required
by lessor, lessee will bury all pipe lines below ordiliary plow depth, and
no well shali be drilled within tsvo hundred feet of any residence or barn
now on said land without lessor's consent. Lessor shall have the privilege
at his risk and expense of using gas from any gas well on said land for
stoves and inside lights in the principal dwelling thereon out of any
surplus gas not needed for operations hereunder.
7. the rights of either party hereunder may be assigned in vffiole 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, rentals, or
royalties however accomplished shall operate to enlarge the obligations
or diminish the righ ,s 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, In event of assignment of this
lease as to a segregated portion of said lands the rentals payable hereunder
shall be apportionable as between the several leasehold os^aners ratably
according to the surface area of each, and default in rental payment by
one shall not affect the rights of other leasehold owners hereunder.
li six or pore parties becorle entitled to royalty hereunder, lessee may
withold payment thereof unless and until furnished with a recordable
instrument executed by all such parties designating an agent to receive
8. This lease shall not be forfeited, cancelled or terminated for
failure by lessee to perform in ••hole or in part any of its implied
obligations, nor while oil or gas is being produced in paying quantities
for any cause whatsoever, unless there shall first be a final judicial,
ascertainment that such obligation or cause exists and that lessee is
in default. Upon such final determination, lessee is hereby given a
reasonable time thereafter to comply with such obligation, or at lessee's
election, to surrender the lease, with the option 3f reserving under the
term_ of this lease, each producing tell and ten acres surrounding it to
be selected by lessee. Lessee s'n-,ll not be liable in danages for breach
of any implied obligation.
9. Lessor hereb;- warrants and agrees to defend the title to said land
and agrees that lessee at its option may discharge any tax, mortgage or
other lien upon said land and in event lessee does so, it shall be
subrogated to such lien uit=1 the right to enforce same and apply rentals
and royalties accruing hereunder toward satisfying same. .+ithout im-
pairment of lessee's rights under the warranty in event of failure of
title, it is agreed that if lessor owns an interest in said lands less
than the entire fee simple estate, then the royalties and rentals to be
paid lessor shall be reduced proportionately.
10. In addition to royalty provided for above, Lessees agree to pay
to Lessor a bonus of $50.00 per Satre, to-i:vit: Forty Four 'Thousand
'three Hundred Nine and TTo/100 (w44,309.00) Dollars out of one sixteenth
(1/16) of seven eights. (7/8) of the oil and gas as and when produced
and saved from said land, but should the well or wells drilled by
lessees hereunder be dry or not commercial producers there shall be
no personal liability on the part of Lessees to carry out this obligation.
11. If Lessees do not commence drilling of an oil and gas well
on Bone Dart of said land within forty five days from date Lessees
are furnished with good and merchantable title, and continue such
drilling with reasonable diligence, in a good and workman like
manner, to a depth of 5,500 feet, unless oil or gas is found in
paying quantities at a lesser depth, or' unless salt water or sulphur
water, granite or other impervious substances are encountered at a
lesser depth, this lease shall be null and void. This clause is
additional to paragraphs four and five above.
Iiv 'TITNESS ''TIEREOFthis instrument is executed on the date
first above written.
CITY OF LUBBOCK
By C.E. Slatons _w�...._. _._1.'ayor
Attest:
—Lessee
Lavenia �illiar�s
_7it 11 cretsry�-r----
Lessee
"here was discussion of paying 'T.L. Bradshaw two months salary
as Executive Director of Housing Authority of the City of Lubbock,
9250.00 per month from June 15th, 1941, to August 15, 1941, and
it was unanimously _:.greed to pay this salary.
No further business coming up for conoideration, the City Commission
adj -)iu-ned.
Bead and approved this the 28th datr of Llgust, 1941.
iYOR .
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