HomeMy WebLinkAboutMinutes - City Council - Special - 5/1/1968156
MAY 1 1968
May 1, 1968
SPECIAL CALLED CITY COUNCIL MEETING:
The City Council of the City of Lubbock, Texas, met at 2:00 o'clock p.m. in the regular meeting
place in the City Hall, the following members thereof being present to -wit:
Mayor W. D. Rogers, Jr., and Councilmen James H. Granberry, Jack Kastman, Ray J. Diekemper, Jr.,
and W. E. Medlock, City Attorney Fred 0. Senter, Jr., City Manager W. R. Blackwell, Assistant
City Manager Robert Wilson, and City Secretary -Treasurer Lavenia Lowe. Also present in the
Council Chamber was Dr. Clifford B. Jones.
The purpose of this meeting was for further consideration of the contracts between the City of
Lubbock and Standefer and Gray and contract between the City of Lubbock and Southwestern Public
Service Company for the sale of sewage effluent to Southwestern Public Service Company.
68-27-156-366 After due discussion, motion was made by Councilman Kastman, seconded by Councilman Granberry,
(1) motion carried, Mayor Rogers and Councilmen Granberry, Kastman, and Medlock voting Yea, none
F votipg Nay, to authorize the Mayor to execute contracts with Standefer and Gray, being lease
agreement, water lease agreement and option to purchase. Councilman Diekemper requested permis-
sion to abstain from voting on this motion because of possible conflict of interest in view of
the fact that various members of his family own stock in Southwestern Public Service Company.
Councilman Diekemper also stated that he had not participated in work session discussion.
April 26, 1968
Honorable W. D. Rogers, Jr.
Mayor, City of Lubbock
Lubbock, Texas
Dear Sir:
This is to confirm our agreement that we will on demand execute and deliver to the City of
Lubbock a water pipeline easement across our lands described in Exhibit "A" attached to lease
contract whereby the City of Lubbock has leased to Standefer & Gray approximately 470 acres of
land, dated the 1st day of May, 1968, for the purpose of furnishing sewage effluent to South-
western Public Service Company, and also an easement across our said lands for the purpose of
transporting water from wells produced under water lease to the City of the same date. Such
easement to require the burying of the line at least three and one-half feet (3 1/2') below the
surface and to exist so long as such line is used for the purpose of transporting effluent,
location of lines to be agreed upon by all parties.
EXHIBIT "A"
THE STATE OF TEXAS X
COUNTY OF LUBBOCK X
Yours very truly,
/s/ Wylie Hu
WYLIE HUDMAN
J. FRANK GRAY
THIS INDENTURE, made on the lst day of May, 1968, by and between J. Frank Gray and Wylie
Rudman, herein called Landlord, and Standefer & Gray, Inc., a corporation existing under the
laws of the State of Texas, herein called Tenant,
WITNESSETH:
That the Landlords in consideration of the sum of Ten Dollars ($10.00) to them in hand paid
by Tenant and other good and valuable considerations, let and hereby lease to the Tenant and the
Tenant does hereby take and hire from the Landlords all that real estate situated in Lubbock
County, Texas, and described in Exhibit "A" attached hereto.
TO HAVE AND TO HOLD the demised premises for a term commencing this day and ending upon the
termination or expiration of that certain lease contrzct whereby the City of Lubbock has leased
to Tenant approximately Four Hundred Seventy (470) acres of land owned by the City of Lubbock
and which contract provides for the taking of effluent from the City of Lubbock by the Tenant.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year
first above written.
/s/ J. Frank Gray
J. Frank Gray
/s/ Wylie Rudman
Wylie Rudman
Landlord
15,
MAY 1 L968
.,
LJ
ATTEST:
/s/ Wylie Hudman
Secretary
Standefer & Gray, Inc.
By. / s / J. Frank Gray__
President
Tenant
FIRST TRACT: Being 114.34 acres, more or less, out of the West one half of Survey 9, Block S,
and 85.66 acres, more or less, out of the East one half of Survey 10, Block S, Lubbock County,
Texas, more particularly described as follows:
BEGINNING at a point the Northeast corner of Survey 10, Block "S", which -is also the Northwest
corner of Survey 9, Block "S";
THENCE South 890 24' East in the right of way of an East and West paved country road 670 varas to
a point in the right of way, the Northeast corner of this tract;
THENCE South Oo 40' East along the fence line 39 feet, South of the center line stripe in the
pavement as a one half inch iron pipe at a fence corner, in all a distance of 963.41 varas to a
3/4ths inch iron pipe in the fence line, the Southeast -corner of this tract;
THENCE North 890 24' West 670 varas to a•3/4ths .inch iron pipe -in the East line of Survey 10, and
the West line of Survey 9, Block "S";
THENCE North 89.11 feet West 511.2 varas to a 3/4ths inch iron pipe to the Southwest corner of
this tract;
THENCE -North 00 401.West 906.41 varas to a point in the middle of the East-West paved road right-
of-way; the Northwest corner of this tract which is in the North line of Survey 10, Block S, and
there is a 3/4ths inch iron pipe in the West line of this tract at a fence corner 44 feet South
of the Center line stripe of the paved road;
THENCE South 890 18' East along the North line of Survey 10•, Block S, 156.2 varas to a point the
L corner of Survey 10, Block S, and the L corner of this tract;
THENCE North 00 40' West 57 varas to a point, a corner of Survey 10, Block S, and a corner of this
tract;
THENCE 890 18' East along the most North line of Survey 10, Block S, a distance of 355 varas to
the Place of Beginning, and containing in all 200 acres of land, more or less,SAVE AND EXCEPT
that certain mineral interest xeserved by the Grantor in a Deed from General American Life Ins.
Co. to Roy Hise et ux, dated September 29, 1937, rec. in vol. 217, page 182, Deed Records, Lubbock
County., and further SAVE AND EXCEPT that certain mineral interest reserved by the Grantors in a
Deed from V. V. Clark, et al, to J. Frank Gran, et al, dated January 31, 1951, recorded in Vol.
432, Page 365, Deed Records of Lubbock County, Texas;
SECOND TRACT: Being 153.93 acre, more or less out of Section 9, and 10, Block S, G. C. and S. F.
RR. Co., being more particularly described as follows:
BEGINNING at a 3/4ths inch galvanized iron pipe in North -South fence, the southeast corner of the
above described First Tract and being the Northeast corner of this Survey;
THENCE South 00 40' East 728 varas to a fence corner post for the Southeast corner of this Survey;
THENCE North 890 24' West 670 varas to a point in the West line of Section 9, Block "S", said
point being 213 varas North 00 40' West of the southwest corner of Section 9, the common corner of
Section 9 and 10 of Block "S";
THENCE North 890 11' West 355 varas to a point;
THENCE South 00 40' East 57 varas to a point, and being an L corner of this tract;
4
THENCE North 890 11' West 156.2 varas to a 3/4ths inch iron.pipe, the Southwest corner of this
Survey;
THENCE North 00 46' West 784.9 varas to a V4ths inch iron pipe, the Southwest corner of the above
described First Tract and the Northwest corner of this tract;
THENCE South 890 11' East 511.2 varas to a 3/4ths inch iron pipe in the West line of Section 9,
Block S, a corner of this Survey;
THENCE South 890 24' East 670 varas to the Place of Beginning, SAVE and EXCEPT that certain
mineral interest. reserved by the Grantor in a Deed from General American Life Insurance Co. to
Roy Hise, et ux, dated Sept. 29, 1937,.recorded in Vol. 217, Page 182, Deed Records of Lubbock
County, and SAVE AND EXCEPT that certain mineral interest reserved by the Grantors in a Deed from
V. V. Clark, et al to J. Frank Gray, et al, dated September 20, 1952, recorded in Vol. 483, Page
574, Deed Records of Lubbock County, Texas;
THIRD TRACT: That certain tract or parcel of land BEGINNING in the center of East-West park road
being Southeast corner of West one half Section 5, Block 2, situated in Lubbock County, Texas;
THENCE North 557 varas to stone set under fence the Northeast corner of Newman Boles Tract
described in Vol 338, Page 95, Deed Records of said County;
THENCE West 640 varas to point in North line of Newman Boles tract;
THENCE South 152 varas along water line of lake to point;
V�1 1968
THENCE East 32 varas to point South of wet lake;
THENCE South 398.4 varas to point in center line of Public Road;
THENCE South 890 23' East 612 varas to Place of Beginning, being 60.78 acres, and being same land
described in Vol. 583, Page 586, Deed Records, said County, reference to which is made, and sub-
ject to reservations set out therein;
FOURTH TRACT: A Tract or parcel of land out of the Southeast corner of Section 1, Block B,
Lubbock County, Texas, BEGINNING at a point 3774 feet South of Northeast corner of said Section 1;
THENCE West 1176 feet to point;
THENCE South 1427 feet to point;
THENCE East 1176 feet to point;
THENCE North 1427 feet to point, containing 38.525 acres and being the same land described in
Deed recorded in Vol. 448, Page 488, Deed Records said County, being a conveyance from City of
Lubbock to J. Frank Gray, et al, and subject to mineral reservations set out therein;
FIFTH TRACT: All of Section 11, Block B, Lubbock County, Texas, except:
(1) 37.525 acre tract conveyed to City of Lubbock described by metes and bounds in Deed
Recorded in Vol. 453, Page 228, Deed Records of said County;
(2) 9.032 acre tract owned by Clyde H. Clark and described in Partition Deed recorded in
Vol. , Page , Deed Records of said County; and
(3) That part of 30 acre tract now owned by J. Frank Gray, et ux, as shown by Deed Records
of said County, and reference is here made to such Records for all purposes;
PROVIDED there is excepted from this conveyance and reserved unto the Grantor, Jimmie L. Standefer,
her heirs, executors, legal representatives and assigns, and undivided 1/32nd part of all oil and
gas that may be produced from the lands herein conveyed, it being agreed that the 1/32nd interest
reserved and excepted.is a royalty interest only, and Grantor, and anyone claiming under her
shall have no interest in bonuses, and delay rentals paid and to be paid regard Leases and shall
have no control over leasing said land or any part thereof and it shall not be necessary for
Grantors, their heirs, assigns or representatives to join in the making of any lease, but if
oil or gas is produced and saved from such land or any part thereof, then in such event Grantors,
their heirs, representatives and assigns shall receive 1/32nd part thereof.
SIXTH TRACT: The South 150 acres of land out of the 299.1 acre tract of land located in Section
Ten (10), Block S, Lubbock County, Texas, which is described by metes and bounds as follows: �
BEGINNING at a point which bears North 890 18' East a distance of 1118.2 feet from the Northwest
corner of Section 10, Block S; THENCE North 890 18' East a distance of 2739 feet to the West line
of a tract of land previously conveyed by V. V. Clark, et'al, to Frank Gray, et al; THENCE South
00 45' 42" East along the West line of the Frank Gray tract, a distance of 4749.5 feet to the
Southwest corner of the Frank Gray tract;
THENCE South 890 18' West a distance of 2747 feet to a point, the Southwest corner of this tract;
THENCE North 4749.5 feet to the PLACE OF BEGINNING.
The tract herein conveyed is the South 150 acres of 299 acre tract conveyed to Doyce M. Clark by
instrument recorded in Volume 846 at Page 335, Deed Records of said County.
SUBJECT to one -sixteenths (1/16th) royalty reserved by Great American Life Insurance Company in
Deed recorded in Volume 217, Page 181, Deed -Records, and subject to Easements of record in said
County.
EXHIBIT "B"
LEASE AGREEMENT
THE STATE OF -TEXAS X
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK I
THIS CONTRACT made this 1st day of May, 1968, by and between the City of Lubbock, a home
rule municipal corporation of Lubbock County, Texas (hereinafter called "CITY"), and Standefer
& Gray, Inc., a corporation existing under the laws of the State of Texas, with its principal `
offices at Lubbock, Lubbock County, Texas (hereinafter called "COMPANY"), each acting herein by
and through its respective officers heretofore duly authorized.
WITNESSETH THAT :
That the CITY and COMPANY hereby mutually agree that for an in consideration of the exten-
sion of the terms of that certain lease contract dated April 28, 1960, executed by the parties
hereto, and the additional consideration of the terms, conditions and covenants to be kept, done
and performed by COMPANY, CITY does hereby lease the lands hereafter described to the COMPANY for
a period beginning at the date hereof and ending on the 31st day of December, 1990, subject to
the terms, conditions and covenants to be kept, done and performed by the parties hereto as
follows:
ARTICLE I•
The land herein leased consists of approximately four hundred seventy (470) acres of land,
described as follows:
Being all of Section 1, Block B, Lubbock County, Texas, except the areas used for highway
nurnoses and except that hart of said Section 1 owned by J. Frank Grav and Wvlie Hudman;
1
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and the Southwest One -Fourth (SW 1/4) of Section 2, Block B, Lubbock County, Texas, except that
portion thereof containing about fifty-three (53) acres lying North of the Fort Worth & Denver
Railway Company right of way; and all of that part of Section Eleven (11), Block B, owned by
CITY and described as follows, to -wit:
BEGINNING at a point in the Northwest corner of said Section 11;
THENCE South along its West line 1427 feet to a point;
THENCE East 1176 feet;
THENCE North 427 feet;
THENCE West along the North line of said Section 1176 feet to the Place of Beginning.
I.1 The purposes for which the lands herein are leased is declared to be for agricultural and
livestock purposes and any other contrary use thereof shall, at the option of CITY, terminate this
lease.
I.2 The consideration to be paid by COMPANY shall be a cash -rental of $3.00 per acre per year
for all lands now in cultivation or that may be placed in cultivation by COMPANY and it is agreed
that $1,410.00 per year is the agreed annual rental to be paid to CITY by COMPANY hereunder. All
rentals shall be payable on the first day of January of each year, beginning January 1, 1969.
Any installment of rental not paid at the due date hereof,*shall bear interest from said due date
until paid, at the rate of eight per cent (8%) per annum. IF COMPANY fails to pay the rentals
when due within sixty (60) days after demand in writing and delivered to COMPANY by registered or
certified mail (with receipt requested) CITY may at its option terminate this agreement.
ARTICLE II.
II.1 It is understood that the City of-Lubbock's Sewage Treatment Plant is presently located and
situated on the above described land and the City reserves the right to maintain, expand, operate,
change and alter said plant or abandon or discontinue using the present sewage treatment plant
and to construct and maintain a sewage treatment plant of equal or -greater capacity at another
location in lieu of operating and maintaining the sewage plant constructed or to be constructed
in the Northwest -corner of Section 1, Block B, and the City agrees to pump all of the effluent
from the present -plant or additions thereto or plants constructed in lieu of this plant into the
existing earthen storage reservoirs now presently supplied from the existing plant at the expense
of the City, less and except such parts or portion of effluent that the City may sell to industry
and other recipients (specifically excluding sales of effluent for agriculture purposes) and that
effluent which City may use for its own purposes as hereinafter provided. Sewage effluent pro-
duced at sewage treatment plants at locations -more than 5280 feet from the Northwest corner of
Section 1, Block B, is specifically excluded from this contract. The City agrees no industrial
users of effluent supplied from the plants in the Northwest corner of Section 1, Block B, shall
be supplied from other sewage treatment plants without the mutual consent of the parties hereto.
As a part of the consideration hereof company binds itself to accept such sewage effluent at the
earthen reservoirs referred to above and those reservoirs which may by agreement of the parties
hereto be constructed in the future. And the COMPANY further agrees to property distribute such
effluent at its expense onto the lands herein leased and the lands now owned by J. Frank Gray and
Wylie Hudman, which lands have been leased to COMHINY from said J. Frank Gray and Wylie Hudman as
shown by the Lease attached hereto as Exhibit "A". It is further agreed that when necessary, due
to extended wet or inclement weather, or any other reason, the COMPANY may, in order to comply
with its obligations hereunder, provide emergency storage facilities at its own cost and expense,
and does hereby covenant with CITY to exercise care to prevent such effluent from draining into
the Yellowhouse Canyon or onto lands not covered by this Lease or to lands not owned or controlled
by COMPANY, unless otherwise permitted by the owner or owners of such land given in writing, which
shall be subject to all of the terms, conditions and covenants contained in this Agreement.
COMPANY does further covenant with CITY to handle, distribute and/or store and to otherwise
dispose of such sewage effluent upon such lands as aforesaid including the lands covered by said
Lease, or under control of CITY in such manner as not to substantially increase the density of
odors emitting therefrom, or from spreading and causing additional discomfort and annoyance to
nearby inhabitants, and not to use or suffer to be used such effluent in such a manner as to con-
stitute a nuisance, when and after the same is placed on said lands and to keep and maintain all
premises in such condition as to conform with all State and local health regulations, whether now
or hereafter established by the State law or promulgated by the State Department of Health, pro-
vided, however, that such effluent is delivered to the reservoirs herein referred to in conformity
with such regulations and laws.
11.2 COMPANY further agrees that upon receipt of written notice, authorized by the governing body
of the City of Lubbock, that'COMPANY is operating due to its negligence a nuisance in violation of
said State or local health regulations, to correct and abate such condition in a reasonable time
and to do such things as may be pointed out in writing necessary -to correct and abate such condi-
tion. If such effluent should drain into the Yellowhouse Canyon through negligence on the part of
Company or off the described lands onto other lands, or if effluent should be allowed or permitted
to -become a nuisance on account of the manner in which the COMPANY handles or fails to handle said
effluent and is allowed to remain in such -condition without abatement for an unreasonable time
after notice in writing to COMPANY, or if such sewage effluent should be handled, distributed or
stored in such a manner as to increase the density of the odors emitting therefrom or spreading
so as to cause other than normal annoyance and discomfort to nearby inhabitants, the CITY may,
after written notice, terminate this contract. The proper spreading, storage or use of the
effluent as delivered by the CITY shall not be construed as a nuisance under the terms of this
contract.
ARTICLE III. City retains and reserves the right during the term of this contract,if it should
elect, to use any part of the lands owned by it along the Yellowhouse Canyon rim, for the estab-
lishment and enlargement of the City Dump ground for the disposal of trash and garbage hauled
from the City, and to excavate where necessary in the opinion of CITY'to provide more volume for
disposal of such trash and garbage, together with necessary road and roads for ingress and egress
and necessary utilities to and from said dump ground and over and across said land to accomplish
the intent of this reservation. It further reserves the right to construct housing and living
quarters sufficient to accommodate City employees engaged in the maintenance and operation of the
dump grounds, provided, however, upon the exercise of such option CITY will, at its own cost and
expense, replace to the use and benefit of COMPANY a like.amount of land refilled, levelled and
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MAY 3 1968
terraced in the same manner as that land so taken for additional dump ground hereunder and CITY
will also make effluent available at the highest point on such substituted land.
ARTICLE IV.
IV.1 COMPANY by these presents -obligates itself to take good care of and cultivate the lands
leased to it hereunder in a good, farmer -like manner and not to make or suffer to be made any
alteration or waste that would be injurious to said land.
IV.2 COMPANY shall not, without the written consent of CITY, assign this lease or sublease any
part of the above leased land and should said COMPANY attempt to assign this lease or sublease
any or all of the above described land,•then and in that event, this contract shall, at the option
of CITY, terminate as to all parties and be of no further force and effect._
IV.3 At the termination of this Contract, COMPANY shall return the land and leased improvements
and surrender the possession.thereof to the CITY in as good condition as when received, ordinary
wear and .tear excepted.
IV A It is agreed that COMPANY shall have the right upon termination of this lease contract to
remove from the above described City lands, any improvements that may have been placed thereon
-by it, including fences, except.outside boundary fences, the twq fences separating the cultivated
lands from the canyon or pasture lands., and fences around the sewage plant.
IV.5 Should the COMPANY during the life of this contract fail or refuse to keep and perform any
of the covenants or conditions of the same at the time and in the .manner•stated, CITY shall have
the right to enter into said premises and takepossession thereof without notice or demand, except
as herein provided, and without being guilty of trespass and without prejudice to any other
remedy the CITY may.have.
ARTICLE V.
V.1 It is mutually agreed -and understood that the above described lands owned by CITY are possessed
by the CITY for the primary purpose of operating the City Sewage Disposal Plant, and any other
plants that may be constructed for this purpose, and for the additional purpose of disposing of
City sewage, and it is the primary purpose of this lease and.contract to arrange for the continued
disposal of City sewage effluent in order to further safeguard the health of its inhabitants, by
providing for the above method of effluent disposal and care, and.that the leasing of such land
by,the CITY to COMPANY for agricultural purposes is merely incidental to the CITY'S ownership
and this lease is made primarily for the purpose of affording additional facilities as herein-
after defined and management of effluent emitting from the City's sewage disposal system and the
consideration herein agreed to be paid by CITY as Lessor herein, is in consideration of the
services to be performed by COMPANY, as Lessee herein, in handling, caring for and disposing of
all CITY effluent delivered to reservoirs by CITY and the taking.thereof by COMPANY in non -
constant quantities, all as is anticipated and provided.for in this contract.
V.2 This Lease and Contract is executed subject to all of the rights of the City of Lubbock which
it has in said lands, and subject to the terms of any oil and gas leases in existence, or to be
executed by the City of Lubbock affecting such lands.
V.3 It is further agreed that if the effluent is delivered to the reservoirs in such condition
that the maintenance of said water in said reservoirs or the distribution thereof creates a
nuisance or it becomes toxic to such an extent that injury would result -to the land upon which
it is spread or make it impractical to use as irrigation for agricultural products or toxic to
livestock, then, in either event, COMPANY may terminate this contract after giving written notice
to CITY.to correct or remove the conditions causing same.
ARTICLE VI.
VI.1 Notwithstanding other provisions of this agreement it is agreed that a breach by COMPANY of
any obligation arising hereunder shall not work a forfeiture or terminate this lease or contract
or cause the same to be terminated nor be grounds for cancellation hereof in whole or in part
except as herein provided. In the event CITY considers the COMPANY is not complying with the
terms of this contract, CITY shall notify COMPANY in writing of the facts relied upon as consti-
tuting a breach hereof and COMPANY, if in default, shall have a reasonable time, not exceeding
one hundred fifty (150) days after the receipt of such notice, in which to comply with the obliga-
tions hereunder as they may have been pointed out in writing as aforesaid.
ARTICLE VII.
VII.1 Whereas,.it is.anticipated that COMPANY will install or cause to be installed underground
pipelines to convey the effluent upon lands under its control; hence, it is agreed that in such
event, and if this contract is terminated before the term hereof, that the CITY will pay to
COMPANY for such pipe which will be.depreciated so far as this agreement is concerned at the rate
of five per cent (5%) per year upon its costs, and that after applying such.depreciation, the
CITY will pay to the COMPANY, its successors and assigns, a sum equal to one-half (1/2) of the
remaining cost thereof, provided such pipe is in a good state of repair and COMPANY has filed
written statement with the City Engineering Department showing actual cost of pipe and its loca-
tion.
VII.2 It is further agreed that CITY reserves the right to construct necessary utility lines
and pipelines, in, above and below the ground at any location on CITY owned land, provided it
does not interfere with the orderly operation by COMPANY of its effluent disposal system and
subject to paying reasonable crop damages to COMPANY, if any occurs. CITY agrees to furnish at
commercial rates and COMPANY agrees Ko use and timely pay for electric power used and to be used
in connection therewith.
VII.3 It is agreed the CITY will at its own expense maintain four (4) eighteen -inch (18 in.)
outlet.s in the lagoon reservoir consisting of approximately twenty-three (23) acres, and CITY
will provide and maintain at its own cost two (2) pumps capable of pumping thirty five hundred
/A AAA\ Y1 � ��• • - • • � - �• /.. �\ n r _.
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MAY 1 1968
OF THE TWO PUMPS, THE*CITY-will keep installed and maintained the pipe from the reservoir to
the intake side of the pimps and provide valves at this point and COMPANY will take the effluent
from the output side of the two pumps and at COMPANY'S cost provide and maintain pipe, valves and
other appurtenances necessary to carry effluent from the output side. In the event of any default
by COMPANY or its tenants, agents, servants or authorized assigns, the right to take effluent as
provided in this paragraph shall cease and terminate.
VII.4 It is further agreed that in the event the CITY ever abandons the use of the twenty-three
(23) acre reservoir constructed by the CITY upon Section 11, Block B, owned by J. Frank Gray and
Wylie Hudman for the purposes of effluent storage, whether at the end of the term of this contract,
or if terminated previously thereto, then CITY shall level the surface of said reservoir and place
it in a condition suitable for agricultural purposes at CITY'S expense.
ARTICLE VIII. It is mutually conceded and agreed by the parties hereto that COMPANY has for many
years contracted for and has satisfactorily disposed of all of the CITY effluent resulting in a
financial benefit to CITY in that the CITY has not been compelled to construct, maintain and
operate additional facilities and sewage disposal and treatmant plants. The CITY recognizes that
as a result of this satisfactory contractual arrangement between CITY and COMPANY for many years
heretofore that CITY'S effluent has been disposed of at less cost to CITY than any other city in
Texas experiencing the same growth and population increase. CITY further recognizes that COMPANY
has expended large sums of money andmade extensive capital investment upon the lands owned by J.
Frank Gray and Wylie Hudman and upon other lands leased and controlled by -said land owners, in
order to adequately dispose of the CITY effluent during wet and inclement weather, and particularly
during the winter months when such effluent is'unsuitable for agricultural purposes.
VIII.2 It is mutually agreed by the parties hereto that CITY may sell and deliver to any other
firm, corporation, partnership, association ar-individual, for industrial use, City effluent upon
such terms and conditions and for such price as it may determine, and further, that CITY may
take, use and divert CITY effluent for its own uses and purposes during the terns of this contract
and upon the following terms, provisions, conditions and payments to COMPANY, to -wit:
VIII.3 RATE AND PAYMENT
For and in consideration of the sewage effluent water to be sold by CITY under the terms of f
any contract, executed with Southwestern Public Service Company, Amarillo, Texas, or any other
person, firm, partnership, corporation or association, herein agreed to for industrial purposes,
or for effluent diverted by the CITY for its own use and benefit, as contemplated by this contract,
the rate per one thousand (1,000) gallons of effluent so sold or used is to be paid each month by
CITY to COMPANY as follows:
A. CITY agrees to pay COMPANY an amount equal to one cent (1C) per one thousand (1,000)
gallons of constant flow of City effluent as hereinafter defined and two and one-half
cents (2 1/2�) per one thousand (1,000) gallons of demand flow as hereinafter defined.
B. "CONSTANT FLOW" shall be defined herein as the average daily flow of effluent delivered
to all recipients, including the City of Lubbock, and other than COMPANY, computed on
the minimum weekly flow of a contract year hereunder.
C. "MINIMUM WEEKLY FLOW" shall be defined herein as the smallest number of gallons of
effluent delivered to all recipients, including the City of Lubbock, but excluding
COMPANY, during any one week in a contract year.
D. "A CONTRACT YEAR" shall be defined herein as each successive twelve-month period beginning
on the effective date of this contract and ending on each successive anniversary date
during the term hereof.
E."DEMAND FLOW" for purposes of this agreement shall be defined as all effluent furnished to
all recipients including the City of Lubbock, excluding the COMPANY, in excess of the
constant flow hereinabove defined.
VIII.4 All payments due COMPANY hereunder shall be finally calculated as of the end of each con-
tract year as defined above. Provided, however, such payments shall be made in twelve (12)
equal monthly installments during such contract year. The anticipated amount of the monthly pay-
ments shall be agreed upon in advance by the parties hereto and shall be substantially equal to
one -twelfth (1/12th) of the anticipated annual payment due COMPANY. It is understood in this
regard that good faith shall be exercised by the parties in arriving at the amount of the monthly
payment and due consideration shall be given to past annual payments hereunder; it is further
agreed that during the first contract year an estimation -will be made by the parties of the prob-
able constant flow and the probable demand flow, taking into consideration the projected usage by
industrial or other recipients,'including CITY, of effluent and an annual payment will be projecte4
therefrom and one -twelfth (1/12th) of that projected payment will be made monthly to COMPANY.
Such monthly payments shall be made on the first day of each and every month.
Within thirty (30) days after termination of each contract year during the term hereof,
appropriate calculations based upon metered effluent flow will be made by the parties hereto as
to constant flow (as herein defined) and demand flow (as herein defined) of effluent not delivered_
to COMPANY during the prior contract year as well as the payment due and owing COMPANY under the
payment terms hereinabove provided. Ifit be determined that the estimated monthly payments E
theretofore paid by CITY during the prior contract year was less than the,calculated payment due
COMPANY as herein provided, then CITY agrees to pay COMPANY such deficiency within seven (7) days.
In the event it be determined that the estimated monthly payments theretofore paid COMPANY by
CITY exceeded the calculated payment due COMPANY as herein provided, then such overpayment will
be adjusted by subtracting such overpayment from the first monthly payments due COMPANY during the
following contract year.
ARTICLE IX.
IX.1 MEASURING EQUIPMENT -AVAILABILITY OF CITY RECORDS TO COMPANY
162
AY 1 1968
system for the purpose of making satisfactory delivery of effluent to all recipients, including
CITY, other than COMPANY, and to meter the daily flow thereof by a master meter of standard type
for properly measuring the flow of water or a number of master meters, as the CITY elects. The
unit of measurements for effluent metered as herein provided shall be one thousand gallons (1,000
gal.) of water, U. S. Standard .Liquid Measure. COMPANY shall have access at all times to such
metering equipment, but the reading, calibration and adjustment of the meters shall be done only
by employees or agents of the CITY. COMPANY will be notified when CITY plans to test or calibrate
any of its meters so that COMPANY may be represented if it so desires. They CITY shall keep a
true record of all meter readings as transcribed from the reports of CITY'S employees or agents
with respect thereto. Upon written request of COMPANY, the CITY will give COMPANY such informa-
tion as it may request from the CITY'S record books or journals or permit the COMPANY to have
access to.the same in the office of the City during business hours. The CITY hereby agrees to
calibrate its metering equipment as often as it considers necessary and at such other time as
COMPANY may show reasonable evidence of error in such metering equipment. In the event a meter
is out of service or out of repair so that the amount of effluent cannot be ascertained or computed
from the reading thereof, the effluent flowing during such period the meter is out of service or
repair, shall be agreed upon by the parties hereto, by correcting the error if the percentage of
the error is ascertainable by calibration tests or mathematical calculation$ or by estimating the
quantity of effluent delivered during preceding periods under similar conditions when the meter
was registering accurately.
IX.2
CITY agrees to furnish unto COMPANY three (3) outlets on the Southwestern Public Service
Company pipeline to be constructed from the City Sewage Disposal Plant to the Southwestern Public
Service Company facility, at locations to be agreed by the parties hereto, in order to facilitate
the disposal of effluent by COMPANY upon lands controlled by it. It is agreed that COMPANY will
not make -demand for delivery of effluent from such outlets if it will reduce or make impossible
the delivery of the demand flow of effluent to Southwestern Public Service Company and other third
party recipients. CITY further agrees that it will bend every effort in negotiating future con-
tracts to secure authority with purchasers of effluent for provisions of additional outlets for
the benefit of COMPANY to facilitate effluent dispersal and disposal.
IX.3
In order to facilitate the expedient and efficient disposal of City effluent by COMPANY on
lands controlled by COMPANY, the CITY agrees to immediately give notice to COMPANY of all con-
tracts for the sale of effluent to third parties, additional usage of effluent by the CITY for its
own purposes, and the anticipated projected amounts of effluent to be sold.or used by the CITY
on a daily demand and constant flow basis, It being recognized that such notice needs to be given
as far in advance as possible in order that COMPANY may make necessary adjustments in its effluent
disposal program.
ARTICLE X.
X.1 SALE OF EFFLUENT BY COMPANY
Nothing contained in this contract shall prohibit COMPANY from selling or disposing of any or
all of the effluent delivered to it to any other firm, person, association, partnership or corpora-
tion for agricultural use. Such sale shall be subject to all of the other terms and conditions
and rights of the CITY to sell effluent to third parties or its own use thereof. Provided COMPANY
may sell effluent for other purposes with consent of CITY.. 11
ARTICLE XI.
XI.1
If for any reason CITYfails to pay unto COMPANY the monthly payments as herein provided,
then CITY hereby agrees that the certain water lease contract entered into by and between J.
Frank Gray and Wylie Rudman and the City of Lubbock on even date herewith shall, at the option of
J. Frank Gray and Wylie Rudman terminate if such payment remains delinquent and unpaid after sixty
(60) days from mailing notice of such delinquency, without waiving any remedy at law or in equity.
ARTICLE XII.
XII.1 TERM OF CONTRACT
Notwithstanding any other provisions of this contract, the term of this contract is from the
date set forth hereinabove until December 31, 1990, and thereafter until either party shall give
the,other party five years (5 yrs.).notice in writing of its intention to terminate the same.
Notice to be transmitted by registered or certified mail with return receipt requested.
ARTICLE XIII.
XIII.1 GENERAL PROVISIONS
It is agreed that all of the terms, provisions and conditions of this contract fully super-
sede and cancel all of the terms, conditions and provisions of that certain contract entered into
by the parties hereto on the 28th day of April, 1960.
XIII.2 Where the terms of this contract provide for action to be based upon the opinion or deter-
mination of either party to this contract, whether or not stated to be conclusive, said terms
shall not be construed as permitting such action to be predicated upon arbitrary, capricious, or
unreasonable opinions or determinations.
XIII.3 Any notice authorized or required by this contract shall be deemed properly given, if
mailed, postage prepaid, Certified Mail, Return Receipt Requested, to the Office of the City Sec-
retary of the City of Lubbock, -on behalf of the CITY, and to COMPANY at Box 711, Lubbock, Texas.
MAY 1 ISE
EXHIBIT "C"
IL
1
MAY 1 19E'
M
XIII.4 In the event CITY should acquire title to the Gray and Rudman lands, this contract shall
terminate.
XIII.5 If any provisions of this agreement be invalid under existing law or would operate under
existing law to render.this agreement unenforceable, then such provision, insofar as it is neces-
sary to render this agreement enforceable under existing law, shall be deemed to be deleted here -
from and this agreement in all other respects shall remain in full force and effect, subject to
specific options granted to Company hereinabove.
XIII.6 FORCE MAJEURE
Neither party shall be liable for any delay or default in performance hereunder due to any
cause beyond its control, including but not limited to acts of God, or the public enemy, acts or
requests of any County, State or Federal officer, agent or agency purporting to act under duly
constituted authority or any court order, wars, floods, riots, fires, storms, strikes, lockouts,
interruptions of transportation, -freight embargos or failures, exhaustion or unavailability on
the open market or delays in delivery of material, equipment or services necessary to the perfor-
mance of any provision hereof, or happening of unforeseen acts, misfortune or casualty whereby
performance hereunder is delayed or prevented, which performance is prevented by such cause;
provided, however, that the party so affected will use its best efforts to remedy the situation.
ARTICLE XIV.
This agreement is binding upon the respective successors, executors and assigns of the partie
hereto.
ATTEST:
r
LAVENKIA LOWE, City Secre ry
ATTEST:
Isl Wylie Rudman
Secretary
EXHIBIT "D"
THE STATE OF TEXAS. X
STANDEFER & GRAY, INC.
By /sl J. Frank Gray
President
O P T I O N S
COUNTY OF LUBBOCK X
WHEREAS, We, J. FRANK GRAY and WYLIE HUMAN of Lubbock County, Texas, hereinafter called
First Parties, own land situated in.Lubbock County, Texas, more particularly described in Exhibit
"A" attached hereto and made a part hereof; and,
Whereas, the City of Lubbock and Standefer & Gray, Inc., a Corporation, are this day contem-
plating the execution of a contract in writing which is attached hereto -as Exhibit "B" for the
information of the parties, whereunder said Corporation has leased a certain approximately 470
acres of land, described in said contract, from the City of Lubbock for a period extending from
the date hereof until December 31, 1990, and under which contract said corporation has agreed to
take all effluent from the City during the period of such lease contract, under the terms and con-
ditions as set out therein.
NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00), and other good and valu-
able considerations, to us in hand paid by THE CITY OF LUBBOCK, hereinafter called CITY, and to
induce and encourage such City to execute said contract above referred to, We, the said First
Parties, do hereby agree that in the event said contract attached hereto as Exhibit "B" is termi-
nated before the expiration of its term on account of the default of said Corporation, then said
City may enter in and upon all that part of.said Section 11 now owned by the. First Parties, except
the South 1320 feet thereof, and 352.97 acres out of Sections 9 and 10 aforesaid, except the North
1320 feet thereof and -the West 2200 feet of Section 10, and 60.78 acres -out of Section 5, Still -
son and Case Survey and tract 6 described in Exhibit."A", and except all of First Parties' land
owned in Section 1., Block B, as tenant of the First Parties, their heirs, executors and assigns
for a period of three (3)' years from date of entry, subject to the following conditions and cove-
nants:
I.
If the City shall desire to enter in and upon said lands, after such termination of said
City -Corporation contract, on account of default of said Corporation, as aforesaid, such City
shall have the right and privilege to do so, if it shall immediately give to the First Parties
notice in writing of its desire and election to enter in and upon said property under the terms
hereof; and such notice shall name and appoint a disinterested person (one) who shall be a resi-
dent of Lubbock County, Texas, as an arbiter or its part, and thereupon the First Parties, or
either of them hereto shall, within thirty (30) days thereafter, appoint a like person as arbiter
on their -part, and notify the City in writing of such appointment, and thereupon, the two arbiters
who are appointed shall have authority to appoint a third arbiter; but if they shall fail to do sc
within ten (10) days after being notified of their appointment, then either party to this contract
may, upon two (2) days' written notice to the other party, -apply to any judge of a district court
residing in Lubbock County, Texas, and if such judge should refuse to make such appointment withir
ten (10) days, then to any other district judge residing in said county, for the appointment of
such third arbiter, which shall thereupon, by such judge, be duly made, and the three arbiters so
chosen shall appraise and thus determine the value of the use of said land for such period, taking
164
14Y 1 1568
into consideration the improvements -to said land for farm operations and -the production experience
on the land for the past ten years, and the purposes for which it may be used hereunder, and the
award duly made by such arbiters or any two of them, shall be binding and final for the purposes
of this contract except that either party hereto reserves the right of appeal, as provided by law,
and the court to which said appeal may be made shall hear said cause de novo, and it is agreed
that the annual rent to be paid in advance by said City for the'use of said land shall be such
sum as thus determined, the same to be paid annually in advance. The first payment of rent to be
paid within sixty (60) days after the final 'determination hereunder covering the payment of said
rents for the first fiscal year, beginning at such time as such City may take possession of such
property, and of the annual rents to be paid during the remainder of the term, shall be paid
annually in advance on the same day and month that the City has taken possession of the premises,
if it has.
II.
In addition to the rents to be paid by the City to the First Parties, as aforesaid, such
City will also pay upon demand to the First Parties a sum equal to the difference in any ad valo-
rem taxes, which may be assessed against said property by the City of Lubbock and such taxes
assessed and paid for the year 1967.
It is further agreed between the parties hereto, that in the event of such termination of
the contract between the City of Lubbock and Standefer and Gray, Inc., before the expiration of
said contract by its terms and on account of default of said Standefer and Gray, Inc., and said
City does desire to enter in and upon said lands under the terms of this agreement, in such event
the First Parties will peaceably and quietly yield up and surrender the said premises, and
appurtenances, unto the said City.
IV.
Further, in this connection, and in consideration hereof, if said City does take possession
of said land under the terms of this agreement, it is agreed that said land will be cultivated
and farmed in a good farmer -like manner, and shall not be used in any manner that may render said
land unsuitable for farming, and no waste or injury to said land and improvements shall be commit-
ted or permitted by said City during the continuance of its possession of said land, if it does
possess same.
V.
It is further agreed between the parties that as long as the conditions upon which this
agreement is made, that is, the said City shall take possession of said land hereunder and then
shall make default in the payment of rent within thirty (30) days after notice, and demand of the
First Parties, or if said City should fail in the performance of any of the covenants or agree-
ments on its part to be performed hereunder, then from henceforth, the rights of the City m
possess said land as herein granted shall become ended and terminated, and all rights of said City
will be forfeited and shall lapse, as fully as if the term hereof had lapsed by time,and the First
Parties shall have at once all the rights of re-entry upon said premises, and to possess the same
and to enjoy the same, which they would have upon the expiration of this contract if, by lapse of
time, finally. Such re-entry will not constitute a waiver of any rents -then due and payable, nor
for any claims or remedies or causes of action in law and equity; damages; and said City further
agrees to and with the First Parties that upon the -termination of the term hereunder, whether by
lapse of time or under any conditions or provisions contained herein, said City will peacefully
and quietly yield up and surrender the said premises, and all improvements thereon, except any
temporary improvements placed thereon by the City, in'good condition, the usual wear and tear
thereof only excepted. Provided, however, that in the event condemnation proceedings are at any
time instituted by City affecting lands of First Parties described herein, the same shall not be
construed as a breach of this agreement.
VI.
It is agreed by the parties hereto that none of the provisions contained in this contract,
or that certain contract dated of even date herewith executed by the City of Lubbock and Standefer
& Gray, Inc., a Texas Corporation, shall prohibit First -Parties from selling any or all of the
property owned by them and presently leased to Standefer & Gray, Inc., and used by said Standefer
& Gray, Inc. for disposal of -City effluent. Provided, however, that in. -the event First Parties,
their heirs, executors or administrators, should desire to sell any or all of their property
designated on the attached plat in red-, marked Exhibit "C ", and herein referred to, they may do
so and such sale may be made free and clear of any encumbrances or burdens contemplated by this
contract or said contract referred to as Exhibit."B". And, City hereby agrees to execute any
release, quitclaim or acquittance that may be required by prospective purchaser as to such pro-
perty designated in red on the attached Exhibit "C".
Provided, further, that in the event First Parties, their heirs, executors or administrators
receive a bona fide offer of a third party to purchase and first parties desire to sell to such
third party all of the property owned by then and designated on the.attached Exhibit "C", except
those tracts colored -in red, then and in such event, First Parties hereby agree and contract to
give to the City of Lubbock the first right of refusal to purchase said property or any part
thereof upon the same terms, provisions and conditions.as they offer said property for sale to a
third party. City agrees that within sixty (60) days after notice hereunder of First Parties of
their intent to sell said property or part thereof that City shall give written notice (by certi-
fied or registered mail) to them of the City's refusal to purchase same (failure of City to
respond within such time will constitute its refusal to purchase) or tender an executed purchase
contract embodying all of said terms and conditions contained in the written notice to City.
Upon City's refusal to purchase said property, First Parties, their heirs, executors and admini-
strators may sell said property to such third party subject to the burdens and encumbrances upon
said land under provisions of contracts executed by the parties hereto and as set forth in the
contract designated Exhibit "B". In the event that the City purchases all of the land owned by
First Parties, their heirs, executors or administrators, as herein provided for, said sale shall
V
MAY 1 196
WEq
On
include all easements, rights of way and other appurtenances owned by First Parties for pipelines
and storage facilities used in the disposal and disbursement of City effluent.
VII.
It is further expressly understood and agreed that in the event of any termination of this
agreement, the easement recorded in Volume 371, Page 571, Deed Records of Lubbock County, Texas,
and its recorded -amendment, shall not be affected thereby and said easement as amended shall con-
tinue in full force and effect according to its terms.
VIII.
It is agreed by the parties hereto that this contract shall be binding upon our heirs, execu-
tors, assigns, and successors.
IX.
It is agreed that the contract between the parties hereto, dated April 28, 1960, is hereby,
in all things, canceled, simultaneous with the execution hereof.
WITNESS WHEREOF our hands this 1st day of May, 1968.
Ise J. Frank i
J. FRANK GRAY
/s/ Wylie Rudman
WYLIE RUDMAN
FIRST PARTIES
THE
By
W. ' . ROMRS, JR. ,
ATTES
T
:
; a,
LAViENIA LOWE, City Secre ary-Treasurer
THE STATE OF TEXAS
X WATER LEASE CONTRACT.
COUNTY OF LUBBOCK
s
THIS AGREEMENT made this 1st day of May, 1968, by and between J. FRANK GRAY, joined herein
by his wife, LILY W. GRAY, and WYLIE HUDMAN, joined herein by his wife, THELMA HUDMAN, all of
Lubbock County, Texas, hereinafter called "LESSOR", whether one or more, and THE CITY OF LUBBOCK,
a Municipal Corporation, organized under the laws of the State of Texas, of Lubbock County, Texas,
hereinafter called "LESSEE".
I.
Lessor, in consideration of the sum of Ten Dollars ($10.00) in hand paid, the receipt of
which is hereby acknowledged, and of the royalties herein provided and the agreements of the
Lessee herein contained, hereby grants, leases and lets exclusively unto Lessee for the purpose of
investigating, testing, surveying, exploring, prospecting, mining, drilling, operating, and pro-
ducing water within one thousand feet (1,000') of the surface thereof, including the laying of
pipelines, power lines and facilities thereon to produce, save, and transport such waters there-
from, together with right of ingress and regress for such purposes, the lands situated in Lubbock
County, Texas, described in Exhibit "A" attached Hereto and initialed by the parties for identifi
cation.
II.
Subject to the conditions in this contract, this Lease shall remain in full force until the
31st day of December, 1990.
The royalties -to be paid -Lessor is one and one-half cents (1 1/24�) per one thousand (1,000)
gallons of water, U. S. Standard liquid measure, produced from said land, same to be delivered at
the wells and pipelines to which the wells may be connected; the water so produced shall be
metered by meters furnished, installed, operated and maintained at metering points, which meters
whall be of standard type for measuring properly the quantity of water delivered under this
Lease. The Lessor shall have access at all times to such metering equipment, but the reading,
calibration, and adjustment of the meters shall be done only by employees or agents of the Lessee.
Lessor will be notified when Lessee plans to test or calibrate its meters so that they may be
represented if they so desire. The Lessee shall keep a true record of all meter readings as
transcribed from the reports of the Lessee's employees or agents with respect thereto. Upon
written request of the Lessor, the Lessee will give them such information as they may request from
the City's journal or record books or permit the Lessor to have access to the same in the office
of the Lessee during business hours. The Lessee hereby agrees to calibrate its metering equipment
as often as it considers necessary and at such time as Lessor may show reasonable evidence of
error but not less than once eachyear. In the event a meter is out of service or out of repair
so that the amount of water produced hereunder cannot be ascertained or computed from the reading
thereof, the waterproduced and delivered during the period such meter is out of service or out
of repair, shall be agreed upon by the parties hereto, by correcting the error if the percentage
of the error is ascertainable by calibration tests or mathematical calculations, or by estimating
the quantity of production by the deliveries made during preceding periods under similar condition
when the meter was registering accurately.
166
AAY 1 1968
IV.
The royalties retained herein shall be payable at Lubbock, Lubbock County, Texas, on or
before the loth day of each month as water is produced.
V.
Lessor reserves the right to produce for their own purposes, water from irrigation wells
now situated on said land, but not more than five (5) wells, and shall have the right to drill
and produce water during the term hereof for domestic purposes.
VI.
Lessee will bury all pipelines below plow depths, and shall pay on demand to Lessor or their
tenants, as the case may be, for all damages to growing crops resulting from entrance on said
lands by the Lessee, its agents, representatives and employees, and shall leave land in as good
condition as it existed before pipeline was constructed.
VII.
Lessee and Lessor agree to comply fully with all of the rules and regulations of the High
Plains Underground Water Conservation District as they now exist, or may be hereinafter amended,
pertaining to the drilling, spacing and operation of water wells as well as well as producing
water therefrom.
VIII.
If Lessee does not begin development of well field on or f_ebore April 15, 1971, then this
agreement may be terminated at the option of Lessors. It being understood that Lessee intends to
use or -otherwise dispose of underground waters produced under this contract, it is, therefore,
agreed that if any of the wells are not at any time producing by reason of lack of demand on the
part of the Lessee, Lessor may take water from such wells not then in use by the Lessee, by noti-
fying Lessee of the intention to take such water and paying Lessee three cents M.) per 1,000
gallons of water. Such water to be used for agricultural purposes, only; provided Lessors may
sell water from other purposes with consent of Lessee.
M.
It is agreed that in the event the certain lease agreement of this date made by and between
Standefer and Gray, Inc. and the City of Lubbock, which Contract provides for the taking and de-
positing of effluent from the City of Lubbock to Standefer & Gray, Inc. upon the above described
lands, shall terminate or any provision thereof be declared invalid for any reason whatsoever,
then and in such event, this Contract shall at the option of Lessor also terminate fully and com-
pletely.
X.
It being understood and agreed that this Contract places no limit upon the number of water
wells that Lessee may drill upon the above described property for the production of water there-
from, it is agreed that Lessee shall not drill any wells in a location which would detrimentally
affect or interfere with the disposal or storage or transportation of effluent upon or across
said lands -herein described. Further, that such wells -shall not be drilled within two hundred
(200) feet of any residence or barn.now on said land without lessor's consent.
XI.
At the time of the execution of this Contract, it is anticipated by the parties hereto that
parts or parcels of the above described land may be sold by Lessor to third parties for business
or industrial use, which parts or parcels are designated and more particularly set forth in
Exhibits "C" and "D" attached hereto and made a part of this Contract. It is agreed that upon
the sale of said tract or parcel, Lessee shall upon written demand by Lessor duly execute a
release of this contract and agreement as to the acreage so described in said written demand and
designated in the attached Exhibit "A", subject to City's retaining necessarypipeline easements
to be agreed upon by both parties. Lessee agrees not to drill a well, lay a pipeline, or place
any other improvements upon the acreage designated in Exhibits "C" and "D" and attached hereto,
unless agreed to in writing by Lessor.
XII.
Lessor hereby 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 the event
Lessee does so, it shall be subrogee to such lien with the right to enforce same and apply
royalties accruing hereunder toward satisfying same.
XIII.
If Lessee shall fail or make default in the payment of the royalties due Lessor hereunder,
or to comply with any other provision of the Lease, after written.notice to City of such default,
at the option of Lessor, this Lease may be terminated.
If the event of the termination of this Lease, Lessee shall have the right to remove its
pumps, motors and any other surface equipment situated on the above described premises. It is
agreed that Lessee shall not have the right to remove any casing or pipelines buried below the
surface of the land.
XIV.
This Lease and Contract is not assignable by Lessee. Lessee shall have the right at any
time to surrender this Lease to Lessor, their heirs and assigns, by delivering or mailing a
MAY 1 15(
thereupon, Lessee .shall be relieved from all obligations, express or implied, except the payment
of all unpaid royalties then due and owing.
XV.
Lessee shall not -be liable for any delay or default in -performance hereunder due to any cause
beyond its control, including but not limited to Acts of God or the Public Enemy, acts or requests
of -any County, State or Federal Officer, agent or agency purporting to act under duly constituted
authority,or-any court order, wars', riots, f%ods, fires, storms, strikes, lockouts, interruptions
of transportation, or happening of unforeseen acts, misfortune or casualty whereby performance
hereunder is delayed or prevented, which performance is prevented by such cause; provided, however
that Lessee will use its best efforts to remedy the situation.
XVI.
It is further agreed that Lessor reserves the right to lay additional pipelines for the
orderly disposition of City effluent upon the surface of the hereinabove described land, even to
the extent that such pipelines may cross or be constructed adjacent to Lessee's lines to be con-
structed under the terms of this Contract; provided, however, that Lessor's lines will not un-
reasonably interfere with Lessee's operations hereunder.
XVII.
Any notice authorized or required by this Contract shall be deemed properly given, if mailed
by registered or certified mail, return receipt requested, postage prepaid, to the Office of the
City Secretary of the City of Lubbock on behalf of the City and to Lessor at Box 711, Lubbock,
Texas.
WITNESS WHEREOF our hands this 1st day of May, 1968.
J. FRANK GRAY
/.s/ Lily W.
LILY W. GRAY
WYLIE HUDMAN
THELMA HUDMAN
W. D. ROGERS,-m
ATTEST•
$Ak!= f "&Me A
idliz,
LA IA LOWE, Cit Secre ary-Treasurer,
City of Lubbock
"LESSOR"
m
68-27-167-367 Motion by Councilman Granberry; seconded by Councilman Kastman, motion carried, Mayor Rogers and
(2) Councilmen Granberry, Kastman, and Medlock voting Yea, none voting Nay, to -authorize the Mayor
to execute a contract with Southwestern Public Service Company for sale and purchase of treated
sewage effluent, subject to the word "rate" being added after "constant flow" on Page 7 and
changing "of" to "or" after the word "State" on Page 11 being approved by -Southwestern Public
Service Company. Councilman Diekemper requested permission to abstain from voting on this motion
because of possible conflict of interest in view of the fact that various members of his family
own stock in Southwestern Public Service Company. Councilman Diekemper also stated that he had
not participated in work session discussions.
CONTRACT FOR SALE AND PURCHASE OF TREATED SEWAGE EFFLUENT
STATE OF TEXAS
X
COUNTY OF LUBBOCK
KNOW ALL MEN BY THESE PRESENTS:
THIS CONTRACT MADE this 1st day of May, 1968, between City of Lubbock, a Home Rule Municipal
Corporation of Lubbock County, Texas, (hereinafter called "CITY"), and Southwestern Public Service
Company, a New Mexico Utility Corporation, having its principal operating office in Amarillo,
Potter County, Texas, (hereinafter called "COMPANY"), each acting herein by and through its
respective officers heretofore duly authorized.
WITNESSETH THAT:
WHEREAS, Company contemplates constructing.at a location in Section 21, Block S, Lubbock
County, Texas, a generating station, the first unit of which is presently anticipated to be com-
plete on or about June 1, 1971, and
WHEREAS, Company desires to secure a dependable supply of condensing water for the operation
of its new generating station,, and any additions thereto, and
WHEREAS, City is contemplating constructing and operating a.12,000,000 gallons per day
activated sludge sewage treatment plant as a part of its sewage disposal system, which will pro-
duce sewage effluent which can be made suitable and useable by Company as condensing water in its
generating station, and
rnsnnsaAc. t+j. !...S«.... �.. ....11 --A r.....wnr Ane4— t— 1-0-1, of Prnotnri eanitihe
168
AY 1 1368
NOW THEREFORE, in consideration of the mutual covenants herein contained, it is mutually
agreed between City and Company as follows:
ARTICLE I - QUANTITY
.1.1 City agrees to sell and deliver and Company agrees to buy and receive Company's require-
ments for treated sewage effluent upon the following terms and conditions. To this end, City
agrees to make eight hundred forty million (840,000,000) gallons of treated sewage effluent avail-
able to Company annually from and after June 1, 1971, at a point hereinafter described, but in no
event shall this be construed as obligating City to furnish in excess of three million five hund-
red thousand (3,500,000) gallons of such effluent in any single calendar day.
1.2 City further agrees to furnish, at the initial rate specified in Article III, effluent
for test purposes during the period from April 1, 1971, to May 31, 1971, in quantities not
exceeding 3,500,000 gallons in any one calendar day.
ARTICLE II - ADDITIONAL QUANTITY AND OPTIONS
2.1a For the consideration of the amount to be paid by Company in the amounts as herein-
after determined, Company is hereby granted an option to secure additional treated sewage effluent
water needs, and in consideration thereof City agrees to make one billion, eight hundred and
thirty million (1,830,000,000) gallons of treated sewage effluent water available to Company
annually at Company's option from and after June 1, 1973, but in no event shall this be construed
as obligating City to furnish an excess of seven million, seven hundred thousand (7,700,000)
gallons of such water on any single calendar day. The City shall not be obligated under this
Section 2.1a unless Company gives written notice that all or a portion of this additional water
shall be needed by Company on or before thirty-six (36) months before such additional water is
needed but in no event later than 36 months prior to June 1, 1977. Failure by Company to exercise
the option herein granted shall operate to relieve City of any further obligation with respect to
this option which will terminate and be of no further force or effect. The option granted in
,this Section 2.1a is an option to take up to nine hundred ninety million (990,000,000) gallons of
effluent per year in addition to the quantity specified in Article 1.1.
2.1b -For the further and additional consideration of an amount to be paid by Company, as
hereinafter determined, Company is hereby granted by City a second option to secure additional
treated sewage effluent water needs, and in consideration thereof City agrees to make two billion,
eight hundred eighty million (2,880,000,000) gallons of treated sewage effluent water available
to Company annually from and after June 1, 1977, but in no event shall this be construed as
obligating City to furnish in excess of twelve million, three hundred fifty thousand (12,350,000)
gallons of such water on any single calendar day. Provided however, City shall not be obligated
on the second option unless Company gives written notice that all or a portion of this additional
water shall be needed by Company on or before thirty-six (36) months before such additional water
is needed, but in no event later than 36 months prior to June 1, 1986. Failure by Company to
exercise the option herein granted shall operate to relieve City of any further obligation with
respect to the option granted in this Section 2.1b, and the second option shall be terminated and
be of no further force or effect. The option granted in this Section 2.1b is an option to take
up to one billion fifty million (1,050,000,000) gallons of effluent in additionto the number of
gallons specified in Article 1.1, plus the number of gallons, if any, for which the option granted
in Article 2.1a is exercised.
2.1c The consideration to be paid for the first option herein granted shall be an amount
equal to forty percent (40%) of the current rate per one thousand (1,000) gallons as hereinafter
determined under the terms of Article III on the additional nine hundred and ninety million
(990,000,000) gallons of treated sewage effluent water City is required to have available for use
of Company.
2.1d The consideration to be paid for the second option herein granted shall be an amount
equal to twenty per -cent (20%) of the current rate per one thousand (1,000) gallons as hereinafter
determined under the terms of Article III on the additional one billion fifty million (1,050,000,
000) gallons. of water City is required to have available for use of Company.
2.1e If Company determines that less quantity of water service is needed to meet its
requirements at the time it exercises its options, it shall so notify City of the quantity of
water it -will require in the notice that it intends to exercise its option and such quantity so
designated shall thereupon become the obligation of the City to supply Company in lieu of the
larger quantity set forth in Sections 2.1a and 2.1b.
2.2 The amounts to be paid by Company under Article II shall be paid annually in advance at
Lubbock, Texas on or before June 1, 1971 and each June 1 thereafter so long as such options
remain unexpired or until treated sewage effluent is being accepted by Company as a result of
exercising thefirst or second option. Failure to pay any amount due hereunder within fifteen (15)
days after notice of default and demand for payment will, at City's option, relieve City of any
further obligation under the options hereby granted without further acquittance by Company.
2.3 All payments made pursuant to Article II shall be considered advance payments for the
additional effluent to be delivered pursuant to the Company's exercise of either the first and/or
second option or both, as hereinabove granted, and shall be credited to the payments which become
due for such additional effluent; provided, however, that if either of such options be exercised
only in part, -only a pro rata portion of the advance payments made on each option shall be so
credited, and the Company shall receive no credit for the pro rata portion of such advance pay-
ments represented by that portion of the option which is not exercised. It is further agreed
that the -annual pre -payment credits on each option shall be applied in the following manner: the
first annual payment shall be a credit 'for the first year that payments become due for additional
sewage effluent water under each option, and in like manner thereafter until all credits are
exhausted under the respective option. It is further agreed that the Company may release either
option at any time, in whole or in part, and by so,doing, be'relieved of its obligation to con-
tinue such payments in advance, either wholly or in part, as the case may be, effective upon the
date of delivery of a complete or partial release to the City and to the extent specified in such
release, the City shall be relieved of its obligation to make effluent available.
M
MAY 1 196:
ARTICLE III - RATE AND PAYMENT
3.1 The rate to be paid each month by Company per one thousand (1,000) gallons of sewage
effluent water delivered by City under the terms of this contract shall be the sum of the followin;
a.. The.actual pro rated part of the current operation cost of the activated sludge sewage
treatment plant,which current operation cost shall consist of the City's expenditures
` for on -site labor (including fringe benefits and payroll taxes), utilities, supplies,
maintenance and repair, actual bookkeeping and insurance expense allocable to said
facilities.
b. A payment of one cent (1(,%) per one thousand (1,000) gallons on the constant flow, and two
and one-half (2ki�) per one thousand (1,000) gallons -on effluent delivered in excess of
the constant flow, "constant flow" being defined as average daily flow, computed on the
minimum weekly flow of a contract year, "contract year" meaning the twelve (12) months
period, ending on May 31. These rates per one thousand (1,000) gallons shall remain a
fixed cost throughout the life of this contract.
c. The prorated cast to the City per one thousand (1,000) gallons capacity of the activated
sludge sewage treatment plant, amortized over a thirty-five (35) year period at City's
current interest rate. "Prorated cost" shall be determined by dividing total cost
(including amortization charges) by total capacity over a thirty-five (35) year period.
d. Twenty per cent (20%) of the sum of subparagraphs a, b, and c above.
In the event.it becomes necessary for the City to -purchase water from other sources of equal
quality with that herein agreed, to be delivered by City to Company, it is furtheregreed that the
cost of such'additional water shall constitute an additional item of the current operational cost,
which shall be made known by written notice to the Company in advance; in no event shall City be
I� required to furnish Company with water at a rate less than the price paid by the City for an
equal quantity of water of similar chemical and biological quality.
3.2 On or before June 1, 1971, and each June Ist thereafter, the City shall calculate the
cost of operating the activated -sludge sewage treatment plant per one thousand (1,000) gallons for
one twelve (12) month period and the price -paid by the Company per one thousand (1,000) gallons
for sewage effluent water pursuant to the terms of this contract for such twelve (12) month
i, period shall be adjusted upward or downward to the extent that the actual cost of such current
operation per one thousand (1,000) gallons of effluent treated exceeds or is less than that cal-
culated in advance by City. Such actual cost of operation per one thousand (1,000) gallons of
effluent treated shall also be used as the appropriate factor in making billings during the ensuing
twelve (12) months..
Also; on each June 1, the "constant flow" rate will be established by the minimum weekly con-
sumption during the year gust ended. The "constant flow" so established will be used to compute
the "in excess of the constant flow" water used during the preceding year, and the billings ren-
dered during such year will be adjusted accordingly. This minimum will also be used in computing
the bills for the ensuing year, with a review and adjustment of such charges to be made on the
following June-1. For billing purposes .for the first twelve (12) months billing period, beginning
June 1, 1971, the "constant flow" will be assumed to be zero (0), with adjustments, if any, to be
made on June 1, 1972.
The operating cost, "constant flow".rate and amortization cost, will be reviewed each June
1, and billing will be adjusted to reflect any changes, retroactive for the preceding year.
ARTICLE IV - DELIVERY POINT
4.1 It is agreed between the City and the Company that the delivery point of the treated
sewage effluent water to be sold under this contract shall be a point in Section 21, Block S, GC
&'SF Ry Co Survey, Lubbock County, Texas. Company will pay for a pipeline, not less than twenty-
four (24) inches in diameter, to be constructed by City, from'the site of the City's sewage treat -
went plant to said delivery point. Such pipeline, including the right-of-way, shall thereafter
be owned, operated and maintained by the City. Payments for such pipeline shall be made by the
Company as the cost thereof is incurred, and as the Company is billed by the City for such costs.
In this connection, it is understood and agreed by the parties that notwithstanding the statement
of the beginning date of this contract as herein contained, it is necessary that the necessary
right-of-way be furnished in time for the City to commence construction of such pipeline for com-
pletion on or before April 1, 1971. The right-of-way to be furnished by the Company shall consist
only of a right-of-way across the property known to the parties as the V-8 Ranch, and the City
shall obtain or furnish such -other right-of-way as is necessary, without expense to the Company.
4.2 Water pressure at point of delivery shall be not less than 3 p.s.i.
ARTICLE V - MINIMUM CHARGE
5.1 The quantity of effluent delivered and accepted shall at all times be within the control
of Company; provided, however, the'Company shall be and hereby obligates itself to pay for a
minimum of eight hundred and forty million (840,000,000) gallons a year beginning June 1, 1971.
i The Company shall pay the rate specified in Article III for (1) the quantity of effluent actually
used; or (2) 720,000,000 gallons per year, whichever is greater, and shall pay 20% of such rate
for the balance of the 840,000,000 gallon committment,
.5.2- When City commences actual delivery of additional effluent pursuant to Company's
exercise of each option herein granted, Company shall become obligated, and hereby obligates
itself, to pay for the total quantity of effluent which City is then obligated to deliver. Compan
shall pay the rate specified in Article III for (1) the quantity of effluent actually used, or (2)
six -sevenths (6/7) of the total annual commitment, whichever is greater, and shall pay twenty
i per cent (20%) of such rate for the balance of the quantity for which it is obligated to pay.
ARTICLE VI - SALE OF SURPLUS
1'70
Ay 1 1968
as it is capable of meeting the quaranteed quantities of water specified her and in the event
such other users are supplied from the pipeline to be built by City and paid for by Company, as
billed by City during construction, it obligates and binds itself to reimburse Company its pro
rata cost cf constructing such pipeline, provided however, that the re -payment of the pro rata
cost shall not apply to any public use which may include but not be limited to agricultural irri-
gation on city -owned land or lands now under.contract in relation to use of sewage effluent
between the City of Lubbock and Standefer & Gray,, Inc., its successors or assigns.
ARTICLE_VII -QUALITY
Water delivered to Company under this contract will be chlorinated, reclaimed water directly
from the sewage treatment plant of the City of Lubbock or such other water of equivalent quality
as will meet the specifications hereinafter set out, to -wit: .
a. have a pH value of from 6.8 to 9.0 by .the standard method of the American Public Health
Association or another mutually acceptable method, as determined on an average sample
obtained hourly over a twenty-four (24) hour period prior to injection of chlorine.
b. not contain in excess of 25 ppm suspended solids as determined by the standard method of
APHA or another mutually accepted method at the point of delivery.
c. be treated with chlorine in such quantities so that a free residual chlorine of not less
than one tenth (0.10) ppm can be detected in a sample from the water being delivered at
the delivery point herein specified when it is tested fifteen minutes after the sample
is taken, provided that this requirement may be altered at the option of COMPANY to not
less than a sufficient treatment to prevent formation of slime of algae in the water line.
d. not have a biochemical oxygen demand (BOD) in excess of -twenty-five (25) ppm as deter-
mined by the Winkler five day 200 C method, or another mutually acceptable method at the
point of delivery.
ARTICLE VIII - MEASURING EQUIPMENT
8.l Sewage effluent water shall be metered at the point or points of delivery. The City
sha11 furnish, install, operate and maintain at said delivery point a master meter of standard
type for measuring properly the quantity of water delivered under this contract. The City shall
install and maintain a -control system for the purpose of making satisfactory delivery of the
water. The Company shall -reimburse the City for the cost of the meter and control system and any
subsequent maintenance to the meter or control system. Meters for more than one point of delivery
requested by Company shall be furnished, installed, operated and maintained by the City, with the
cost of the meters and installation to be paid by the Company. The Company may, at its option
and expense, install operate, and maintain at said delivery point, a check meter or meters of
standard type. The company shall have access to all such metering equipment at all reasonable
times; but the reading, calibration, and adjustment of the City's master meter shall be done only
by employees or agents of the City. The City shall keep -a true record of all meter readings as
transcribed from the reports of the City's employees or agents with respect thereto. Upon written
request of. the Company, the City will give it such information as it may request from the City's
journal or record books or permit the Company to have access to the same in the office of the City
during business hours.
8.2 The City shall calibrate its metering equipment as often as it considers necessary and
at such time as Company may show reasonable evidence of error, but at.least every twelve (12)
months. If upon any test, the percentage of any inaccuracy'thereof is found to be in excess of
two per cent (2%), registration thereof shall be corrected for a period extending back to the time
when such inaccuracy began if such time is ascertainable-, and.if not, then for a period extending
back one-half (1/2) of the time elapsed since the last date of calibration,but in no event further
back than a period. of six (6) months. In the event the Company has provided no check meter with
reference thereto and if for any reason any master meter is out of service or out of repair so
that the amount of -water delivered cannot be ascertained or computed from the reading thereof, the
water delivered during the period such meter is out of service or out of repair, shall be agreed
upon by the parties hereto, by correcting the error if the percentage of the error is ascertain-
able by calibration tests or mathematical calculations, or by estimating the quantity of delivery
by the deliveries made during preceding periods under similar conditions when the meter was re-
gis,tering accurately.
ARTICLE IX - FORCE MAJEURE
9.1 Neither party.shall be liable for any delay or default in performance hereunder due to
any cause beyond its control,.including but not limited to acts of God, or the public enemy,
acts or orders of any County, State or Federal officer, agent or agency purporting to act under
duly constituted authority or any court order, wars, riots, floods, fires, storms, strikes, lock-
outs, interruptions of transportation, freight embargos or failures, exhaustion or unavailability
on the open market or delays in delivery of material, equipment or services necessary to the per-
formance of any provision hereof, or happening of unforeseen acts, misfortune or casualty whereby
performance hereunder is delayed or prevented, which performance is prevented by such cause; pro-
vided,, however, that the party so affected will use its best efforts to remedy the situation.
9.2 If City's inability to deliver treated sewage effluent water for any reason, including
but not limited to those enumerated above, shall continue for twenty four (24)hours, City shall
make every reasonable effort to supply suitable condensing water from any other available source
at themost favorable price to the Company at which the City is able to secure such water. Nothing
contained herein however, obligates City to supply treated sewage effluent water or other water
in excess of that available from sewage flows of the present and future, or in excess of that
available from contemplated sewage reclamation.
ARTICLE X - GENERAL
10.1 The unit of measurements for water delivery hereunder shall be one thousand (1,000)
gallons of water US standard liquid measure.
�1
MAY 1 19E
10.2 If the Company does not use the total amount of water to which it is entitled in any
particular year, it shall not retain any carry over rights into succeeding years.
10.3 It is understood that this contract is authorized by the City, and is entered into for
the purpose of furnishing and providing Company with a sufficient supply of condensing water for
the operation of its generating station to be located in Lubbock County, Texas, and not for resal
10.4 Where the terms of this contract provide for action to be based upon.the opinion or
determination of either party to this contract, whether or not stated to be conclusive, said term
shall not be construed as permitting such action to be predicated upon arbitrary, capricious, or
unreasonable opinions or determinations.
10.5 All rights of action for breach of this contract are reserved to the City and the Com-
pany. Nothing contained in this contract shall be construed as abridging, limiting, or depriving
the City or Company of any means of enforcing any remedy either at law or in equity for the
breach of any provisions hereof which either party would otherwise have. The waiver of a breach
of any one of the provisions .of this contract shall not be deemed to be a waiver of any other pro
visions hereof, or any other or subsequent breach of any provisions hereof.
10.6 Any notice authorized or required by this contract shall be deemed properly given, if
mailed postage prepaid to the office of the City Secretary of the City of Lubbock on behalf of
the City and to the Manager of the local office of Southwestern Public Service at Lubbock, Texas,
on behalf of the Company. The designation of the person to be notified, or address of such perso
may be changed at any time by similar notice.
10.7 It is expressly recognized by the City that the Company may be.compelled to make neces
sary alterations, repairs, and installations of new or additional equipment from time to time
during the life of this contract which may require Company to shut down its generating operations
during such periods and in such event Company shall not be obligated to take any sewage effluent
water unless and until such time as Company has exercised the option right or rights herein grant
ed and has installed and in operation two or more generating units in this station.
10.8 If any provision of this agreement be invalid under existing law or would operate
under existing law to render this agreement unenforcible, then such provision, insofar as is
necessary to render this agreement enforcible under existing law, shall be deemed to be deleted
herefrom and this agreement in all other respects shall remain in full force and effect.
ARTICLE XI - TERM
The term of this contract is thirty-five (35) years from June 1, 1971, and thereafter until
either party shall give the other party three (3) years notice, in writing, of its intention to
terminate the same.
EXECUTED the day and year first above written.
ATTEST:
i
LA,VENIA LOWE, City Secre ry
ATTEST:
Is/ L. S. Cotter
Assistant Secretary
NO FURTHER BUSINESS COMING UP FOR CONSID]
MEETING, MAY 1, 1968.
ATTEST
LAV NIA LOWE, Cit Secretary -Treasurer
READ AND APPROVED THIS THE 9TH DAY OF MAY, 11
i ATTEST:
1 '
LAVENIA LOWE, City Secre y-Treasurer
CITY OF
W. D. ROGERS> ., Playtmr K
x� v
SOUTHWESTERN PUBLIC SERVICE COMPANY
BY RoY Tolk_
PRESIDENT