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Home My WebLink AboutResolution - 580 - Addendum To Lease Agreement - Standefer & Gray - Additional Sewage Effluent Land - 08/14/1980JCR:cl RESOLUTION #580 - 8/14/80 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Addendum to the Lease Agreement between the City of Lubbock and Standefer and Gray, Inc., attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes ofthisCouncil shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 14th.day of August ,1980. 4 ,4h i, & L McALISTER, MAYOR ATTEST: E elyn ,Ga ga, City Se re Treasurer APPROVED -AS TO FORM: .. n C. Ross, Jr., City ArttoYn.ey (The original copy of the ADDENDUM TO THE LEASE AGREEMENT is a part of the "Waste Water Lease Agreement Between LCC Institute of Water Research, LCC Investment Corporation, J. E. Hancock, et ux and City, located in the vault.)t ADDENDUM TO LEASE AGREEMENT • s. . THE STATE OF TEXAS COUNTY OF LUBBOCK This addendum is entered into .on this the 10 day of f/1 [tl , 1980, by and between the City of Lubbock, a home rule municipal corporation, hereinafter referred to as City, and Standefer and Gray Inc., a corporation existing under the laws of the State of Texas, with its principal offices at Lubbock, Texas, hereinafter called Company. WITNESSETH: WHEREAS,. the City and Company did enter into a lease agreement on the 1st day of May 1968, as amended, a copy of said agreement as amended being attached hereto as Exhibit "A"; and WHEREAS, the agreement attached as Exhibit "A" did provide that the City would pump all of its sewage effluent to lands owned or under the control of Company; and WHEREAS, Company and,City do recognize that it would be advantageous for additional lands to•be provided for the purposes of properly handling the sewage effluent delivered by City to,Company; and WHEREAS, it would be difficult for Company to provide additional land deemed necessary under the premises at this time; and WHEREAS, the City and Company have been approached -by the L.C.C. Institute of Water Research with an offer to provide an additional discharge site for sewage effluent; and WHEREAS, both City and Company would benefit by having an additional dis- charge site: NOW THEREFORE THE CITY AND COMPANY AGREE AS FOLLOWS: 1. That notwithstanding any provision contained in the lease agreement between City and Company, which agreement is attached hereto as Exhibit "A", • the Company does hereby grant to City the right to pump sewage effluent to a discharge site located in Lynn County, Texas, said site to be operated by the L.C.C. Institute of Water Research and hereinafter referred to as Institute Lagoon. 2. The City shall meter the volume of sewage effluent, which City is instructed under paragraph 8 to pump to the Institute Lagoons. The total volume of such effluent pumped in any calendar year to the, Institute Lagoons EXALSZ r "D'' To WAS 7E W,47E4 E-4 T EXHIBIT "B" TO SEWAGE EFFLUENT SUPPLY CONTRACT shall entitle the City during the immediately following year to use an equal volume of sewage effluent (not to exceed 7,200,000 gallons per day) for its own purposes without obligation to pay Company any payments of money. It is under- stood by the parties hereto that sewage�effluent, produced by the sewage treat - went plant or plants, at locations mole than 5,280 feet from the Northwest corner of Section 1, Block B, is specifically excluded from the addendum. t 3. The Company further releases the City from any claim for payment of money for any sewage effluent City may pump to the Institute Lagoon sites in Lynn County, Texas. 4. That Company does hereby agree that it will use the sewage effluent discharged by•City onto the lands operated by Company in such a manner as to comply with all Federal or State laws or regulations and City agrees to deliver sewage effluent to Company's reservoir in conformity with such laws and regu- lations. 5. That Company will with all dispatch commence negotiation with L.C.C. Institute of Water Research leading to an execution of a contractual agreement •between them which will specifically cover the following points: (a) The Agreement shall determine the percentage of sewage effluent which the Company shall be entitled to have pumped to its lands and the per- centage of sewage effluent that shall be pumped to land in Lynn County to be used by L.C.C. Institute of Water Research. (b) The agreement shall designate one party to advise City as to what percentage of sewage effluent shall be pumped to either the properties operated by Company or to the Lynn County property upon which L.C.C. Institute of Water Research is conducting its activities. (c) The agreement shall recognize the City's -right to use for its pur- poses any sewage effluent at no cost to City (see paragraph 2 of this agreement). (d) The agreement shall recognize the City's right to sell and deliver to others such sewage effluent as outlined in the lease agreement between City and Company paragraph VIII 2 (see Exhibit "A" attached hereto) but such right is subject to payment by City to Company as provided in par- agrapii VIII 3 of the lease agreement above mentioned. The agreement shall further contain a provision that only Company is entitled to payment as above set out and L.C.C. Institute of Water Research shall never be entitled to any such payments and will make no claim for same. (e) The agreement shall further recognize that the dispose of all sewage effluent upon the lands City is entitled to . owned or controlled by Company or land being controlled, -owned or used by L.C.C. Institute Water Research and notwithstanding"°any other provisions of the of between Company and L.C.C. Institute of'Water Research, agreement the absolute right to City will have Pump to either the Company's sites or sites under control of L.C.C. Institute of Water Research, any amount of sewage effluent necessary to provide 'for complete disposal of Cit s sew .effluent at any point iy, age n time. Company and L.C.C. Institute of Water Research will further agree to take all such sewage eff luent under such circumstances. 6• Company will file an executed copy of the agreement provided paragraph S above with the City Secretary within a reasonable period ' for in after the execution of this agreement. P °d of time 7. Except as altered or changed by this Addendum Agreement the o lease agreement as amended in March, 1978, shallriginal f - - . remain in effect between the parties her in accordance with the terms and conditions of said original lease agreement attached hereto as Exhibit "Arra 8. City agrees to Pip the percentages of sewage effluent to the as directed Company properties and to the Institute properties cted b 3 y the individual a ed by Company and Institute Ppoint- , provided however, should it become necessary to provide for a complete disposal of City's sewage effluent a the City shall have the absolute*ri ght to t any Point in time, pump Institute sites. to either the Company sites or 9. It is understood that Institute, et al, and City will execute Water Lease Agreement which provides that in the event of certain def a Waste Institute that City has certain rights to enter u aults by on Operate same for discharge of effluent. P the 4,000 acre tract and City accordingly agrees with Company that, in the event that it is quired to enter upon said 4,000 acrec tract, and determines to operate re - manner to produce income therefrom it will same in a give Company first option to manage and operate said 4,000 acres for the disposal of said effluent. In the event Company elects not to operate said 4,000 acres, then Ci shall not be obligated to a ty pay the service charge herein provided for disposal of the effluent on said 4,000 acres; provided, however, should any party or entity pay a service charge for the use or disposal of said effluent, said charges shall be paid to Company; provided that City shall have no obligation in the collection of said charges and shall make no claim against Company for said charges. Executed this the /,��h day of '41-5711,<'l 4 , 1980. T THE CITY OF LUBBOCK STANDEFER & GRAY, INC. BI MCALIS ER, MAYOR ATTEST: ATTEST: elyn Gaffea, City SecretaryC;rreasurer cr tary THE STATE OF TEXAS § COUNTY OF LUBBOCK BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared �..�c. , of STANDEFER and GRAY, INC., a Texas corpor tion, known to me to be the person whose name is subscribed .to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the /.3 day of 1980. t ily Publicinand for u bock County, State of Texas THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE HE, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared BILL McALISTER, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as the act and deed of the CITY OF LUBBOCK and as MAYOR for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ��day of0')-t_cwz� v 1980. Vr-JA.&rj-j\n. '2)j -MU/ - Notary Public in and for Lubbock County, State of Texas 0 r rND Wokpgp INDEX 20956 COAOA, WASTE WATER LEASE AGREEMENT 1. Parties: a. LCC Institute of Water Research b. LCC Investment Corp. C. J. E. Hancock and wife Eileen Hancock d. City of Lubbock t 2. Exhibits: a. Property Description b. Farm Lease and Option to Purchase (as amended) C. Lease and Land Use Agreement between LCC Water Research and LCC Investment Corp. d. Addendum To Lease Agreement between City of Lubbock and Standefer and Gray Corp.' . e. Map 01 d rn CZ co 0 r rND P/SX b JCR:cl RESOLUTION #580 - 8/14/80 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Addendum to the Lease Agreement between the City of Lubbock and Standefer c and Gray, Inc., attached herewith which shall be spread upon the minutes x of the Council and as spread upon the minutes of this Council shall ii constitute and be a part of this Resolution as if fully copied herein in WA detail. t C� t; Passed by the City Council this 14th. day of August ,1980. y: }1 L MCALISTER, MAYOR ATTEST: iAeelyn, Ga ga, City Se reTreasurer APPROVED AS TO FORM: i• G_ i n C. Ross, Jr., City A'tto ey h. � JCR: c1 RESOLUTION #581 - 8/14/80 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Waste I' Water Lease Agreement between the L.C.C. Institute of Water Research, Lubbock Christian College Investment Corporation, J.E. Hancock and wife Eileen i_ Hancock and the City of Lubbock, attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. f' Passed by the City Council this 14th day of August ,1980. f E ILL McALISTER, MAYOR i ATTEST: ` Ejelyn Gaffgtf, City Secreta asurer APPROVED AS TO FORM: i Jq&if C. Ross, Jr., City Attorney I iE r� y C" ci 0 x Cil 0 3E M XN THE STATE OF TEXAS COUNTY OF LUOCK ; NOL1702 PACE 530 LCC INSTITUTE OF WATERRESEARCH • ''' �� RESOLUTION � �• ------ ~ CALLED MEETING August 13, 1980 ' BOARD OF DIRECTORS LCC INSTITUTE,OF WATER RESEARCH R LUBBOCK, TEXAS BE IT• RESOLVED: Lubbock Christian College Institute of Water ' Research (LCCIWR) hereby approves and accepts and authorizes execution of that certain lease agreerpent entitled "WASTEWATER LEASE. AGREEMENT" by and between said LCCIWR and the City of Lubbock, Lubbock County, Texas, said "WASTEWATER LEASE AGREEMENT" o, providing far payment by the City of Lubbock for lease of certain x Iand s.'A n Lynn County, Texas, to LCCIWR, for the purpose of pro— viding a City of Lubbock site for disposal .of effluent sewage from City of Lubbock Treatment Plant through a pipeline to be C31 constructed by LCCIWR from funds provided through Environmental Protection Agency Grant to LCCIWR, and also providing for granting of operation and maintenance rights on said pipeline by the City of P Lubbock; and said LCCIWR also hereby authorizes T.A. Hicks and CZ Harvie Pruitt of said LCCIWR to execute said agreement in the name `J of and as the act of said LCCIWR, and to prepare and negotiate and ND execute and approve any other documents necessary for the carrying out of said "WASTEWATER LEASE AGREEMENT" in the name of and as the act of said LCCIWR. MAJORITY OF BOARD MEMBERS PRESENT: Yes MOTION TO PASS RESOLUTION: Lennis Baker, Board Member MOTION SECONDED BY: T.A. Hicks, Board Member MOTION PASSED: By Unanimous Vote of Board Members Present CERTIFICATION I hereby certify and acknowledge that the above is true and correct 'copy of the resolution passed by the Board of Directors, LCC Institute of Water Research Corporation at a called meeting held on the 13th day of August 1980, at which meeting a majority of the members of the said Board were present, and I further certify that said resolution Is In full force and effect as of the date hereof. DATED: This 13th day of ___August , A. , 19 80_. --- _'_ Secretary, Board of Directors, LCC Institute of Water Research THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared T.A. Hicks _________ __ , known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and as the act and deed of the said LCC Institute of Water Research. i GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 13th day of ,,• B` u s t _, A.D., 1980 - - - - - - - - - - - - - - - - - Seal No y Pub11c e rr=4 i" 41: Lu ock County, Texas `:1 Ys f, +. •'�` My Commission Expires 1M d V� i" t o WASTE WATER LEASE AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement entered into by and between the L.C.C. Institute of Water Research hereinafter called Lessor, Lubbock Christian College Investment Cor- poration, hereinafter called L.C.C. Investment Corporation, J.E. Hancock and wife Eileen Hancock, hereinafter referred to. as Owners and the City of Lubbock a Home Rule Municipal Corporation hereinafter referred to as Lessee: WITNESSETH WHEREAS, J.E. Hancock and wife Eileen Hancock are owners of certain real property in Lynn County, Texas, which property is more particularly described in Exhibit "A" attached hereto and made a part hereof for all purposes; and WHEREAS, the said Owners did enter into a Farm Lease and Option to Pur- chase Agreement with Lubbock Christian College Investment Corporation which Lease Agreement was executed by said parties on the 15th day of December, 1978, (as amended) a copy of which is attached hereto as Exhibit "B" and made a part hereof for all purposes; and WHEREAS, the Lubbock Christian College Investment Corporation, a non profit corporation of the State of Texas, did enter into a Lease Agreement with the Lubbock Christian Institute of Water Research, a non profit corporation of the State of Texas, on the �, day of 1 t t'a , a copy of which is attached hereto as Exhibit "C" and made a part hereof for all pur- poses; and WHEREAS, the Lubbock Christian Institute of Water Research (Lessor in this document) is desirous of leasing to the Lessee (City of Lubbock) for a period of time as herein after specified all of the property described in Exhibit "A" cs attached hereto and made a part hereof; and x WHEREAS, the Lessor has received a grant from the Environmental Protection Agency for purpose of doing water -research; and a c-� WHEREAS, the Lessor is desirous of providing the land described in Exhibit COD "A" to the Lessee as a disposal site for Lessee's sewage effluent; and co co WHEREAS, the Lessee finds it to be in the best interest of the City of Lubbock to acquire the rights hereinafter granted to Lessee for an additional waste water disposal site; and WHEREAS, Lessor finds it to be in its best interest to take said waste for the purposes of its research projects. r VOL' 702 PAGE 531 a voL 1702 Pact- 532 NOW THEREFORE THE PARTIES HERETO DO AGREE AS FOLLOWS: 1. DESCRIPTION: Lessor does by these presents lease and grant to the Lessee the following described real property situated in the County of Lynn, State of Texas: All that property described in Exhibit "A" attached hereto and made a part hereof for all purposes. for the consideration of the rents and covenants hereinafter provided. 2. PURPOSE: The purpose of this Lease is to provide to Lessee an additional site as more particularly described in Exhibit "A" for the purpose of disposing of sewage effluent and to allow Lessor to use such sewage effluent in dis- x charging its responsibilities in providing research on waste water usage which C}n research will also involve agriculture usage of said waste water. v 3. TERM: This lease shall take effect on the date.of execution ►„ Ca hereof by all parties and shall terminate on the 31st day of December, 1998. _A FP1_ 4. OPTION: Lessor does hereby further grant to Lessee, in consideration of Lessee's undertaking hereunder, an option to extend this lease agreement in accordance with the terms and conditions herein contained for a period of 10 years from the expiration date herein above specified. In the event Lessee is desirous to extend the term of this agreement it may do so by notifying the Lessor in writing of its intenetion to do so. Said written notification to be delivered to Lessor not later than September 1, 1993. In the event Lessee exercises this option the sole consideration due Lessor for same shall be payment by Lessee to Lessor of the sum of $1,000.00 per year for each year of the option term not exceeding the total sum of $10,000.00 said consideration to be paid on an annual basis commencing on January 1, 1999 and each January 1st thereafter until the ten years have expired. Save and except the consideration hereinabove specified all of the terms and conditions contained in this agree- ment shall continue in effect during said extended time period. Both Owner and Investment Corporation by their signature hereto agree to honor this option and be bound by its terms. 5. THIRD PARTY AGREEMENT: Lessor hereby acknowledges that it is aware of the fact that Lessee did enter into an agreement with Standefer and Gray, Inc., a Texas Corporation, on the 1st day of May, 1968. That said agreement does require Lessee to deliver all sewage effluent which City does not sell for industrial use or use for its own purposes to said Standiefer and Gray, Inc., in accord with the terms of the aforesaid agreement. In order for Lessee to execute this a lease agreement with Lessor it has been necessary to secure an addendum to said original Lease Agreement between the Lessee and Standefer and Gray, Inc., a copy of said addendum being attached hereto as Exhibit "D" and made a part hereof for all.purposes. Lessor agrees that it will with all dispatch under- take the negotiations set forth,in paragraph 5 of Exhibit "D" and see that the contract contemplated by said paragraph 5 will contain all of the items and terms set forth in paragraph 5 subparagraph a through e. Lessor further agrees to comply with paragraph 6 of Exhibit "D" as set forth. 6. IMPROVEMENTS: As part of the consideration flowing to Lessee and as an inducement for Lessee to execute this document Lessor agrees to undertake the following: (a) To construct a 27" pipeline for purposes fo transporting Lessee's sewage effluent to the property described in Exhibit "A" attached hereto and made a part hereof. (b) To construct the above mentioned pipelines together with all appurtances necessary for operation of said pipeline on the location set forth in Exhibit "E" attached hereto and made a part hereof for all purposes. (c) To allow the Lessee the right of inspection during the construction of said pipeline. (d) To furnish to Lessee two sets of complete plans and -specifications of the above mentioned pipeline. (e) To construct said pipeline in such a manner as will allow said tav C$ pipeline to tie into Lessee's sewage effluent discharge site. C) (f) To deliver to Lessee all necessary legal documents conveying title to the above mentioned pipeline together with all appurtances Cz P_ c3 necessary for its operation to Lessee as soon as Lessor is granted Cn title to said property by the E.P.A. of the U.S. Government. (g) To convey title to said pipeline to Lessee as set forth in sub- paragraph (f) above free and clear of all liens, encumbrances or claims of any nature. 7. OPERATION OF IMPROVEMENT - It is agreed by Lessor and Lessee that after completion of the improvements contemplated in paragraph 6 above that Lessee is hereby granted the right to operate and maintain such improvements. r m - 732 PacF 533 Von' 702 534 It is acknowledged that said improvements will be connected with Lessee's dis- charge site at Lessee's sewage treatment plant and it is necessary for Lessee to have the right=to operate and maintain saidimprovementsso as not to en- danger the operation of its sewage treatment plant. 8. LESSOR'S FAILURE TO CONSTRUCT IMPROVEMENTS: It is understood between the parties hereto that Lessee is executing this lease agreement so as to acquire an additional site for disposal of its sewage effluent and that Lessor Can has agreed to construct certain improvements as described in paragraph 6 above s in order to provide a means of transporting Lessee's sewage effluent to the C� real property described in Exhibit "A" attached hereto. In'the event that '6 Lessor fails to construct said improvements described in paragraph 6 above then in such event the rentals hereinafter set forth payable from Lessee to Lessor shall be refunded to Lessee and this lease agreement shall terminate. 9.- REFUND RESPONSIBILITY: In.the event the events occur that require this lease to terminate and the rentals paid by Lessee to Lessor to be refunded then in such event, as an inducement to Lessee for executing this lease, L.C.C. Investment Corporationdoes hereby agree that in the event Lessor is unable to make a total refund of said rentals that L.C.C. Investment Corporation will make such refund payment to Lessee or any part thereof that Lessor is unable to make. 10. RESPONSIBILITY TO TAKE: It is agreed between Lessor and'Lessee that Lessor will enter into an agreement with Standefer and Gray, Inc., pursuant to paragraph S of this agreement. That the Contract between Standefer and Gray, Inc. and Lessor shall determine the percentage of sewage effluent that Lessee shall pump to the property described in Exhibit "A" attached hereto and operated by Lessor or to the property operated by Standefer and Gray, Inc. It is further recognized that the parties to said contract shall appoint one individual to notify Lessee of the percentages to'be pumped to each location. Lessee hereby agrees to honor said percentage requests so long as said percentage requests are sufficient to take 100% of Lessee's sewage effluent at any given point in time. In the event that said requests for sewage effluent are insufficient to take 100% of Lessee's sewage effluent at any given point in time then in such event Lessee is free to pump any amount of said sewage effluent over the re- quested percentages to the property described in Exhibit 'W' of this agreement and Lessor does hereby agree to take and dispose of said excess in a proper manner. r1 11. RIGHT TO ENTER: It is understood and agreed by all the parties who are signatories to this agreement that in the event that Lessor or any of Lessor's predecessors in interest cease to operate the property described in Exhibit 'W' in such a manner so as to allow Lessee to discharge its sewage effluent upon such lands then in such event the Lessee by these presents is granted the absolute right to enter onto the land and operate said lands in a manner so as to allow the proper discharge of Lessee's effluent upon said lands. In the event that Lessor and Lessor's predecessors in interest fail to operate the premises described in Exhibit "A" in a manner so as to allow Lessee to discharge its sewage effluentthereon and it becomes necessary for Lessee to enter upon the property for purposes of operation, then in such events Lessee's rights to re-enter shall be accomplished as follows: (a) Lessee shall give written notice to Lessor and Lessor's pre- decessors in interest which notice shall point out the area of de- fault or the failure to properly operate the premises described in Exhibit "A" attached hereto and made a part hereof. (b) The written notice of default or failure shall give Lessor or Lessor's predecessors in interest 15 days to correct the default or failure of operation complained of by Lessee. (c) If Lessor or Lessor's predecessors in interest fail to make the necessary corrections or cure the failure of operation complained of by Lessee then such failure to make corrections or to cure the operational problems shall be deemed as a conclusive breach of this agreement and Lessee shall be entitled to enter the premises de- scribed in Exhibit 'W' and take any action necessary to operate said property as a sewage effluent discharge site. c 0 x In the event Lessee does enter the premises in accordance with the above i\7 written procedure it may or may not operate said property in such a manner as 01 to produce income therefrom. It is agreed by all parties signatory to this c m agreement that Lessee's decision in this regard shall be binding on them. In the event Lessee does operate the premises described in Exhibit "A" in such a manner that income is produced therefrom then in such event said income will be distributed as follows: (1) The income shall first be used to pay all expenses incurred by Lessee in connection with the operation of the property described in Exhibit "A". yap I 2 PAcr 535 v34�' r��IL536 (2) After all expenses have been paid as described_in subparagraph (1) above then the balance of income shall be determined and Lessee shall be entitled to 20% of said balance for its efforts in operating the property. (3) After deducting Lessee's 20% as set forth in subparagraph (2) above,the remaining funds (80%) shall be paid to Lessor. In the case of any dispute between Lessor or Lessor's predecessors in interest as to who is entitled to said 80% of the remaining funds then inZVI- c 0 such event Lessee shall deposit said 80% balance into the registery I� of the Court in Lubbock County, Texas, and once having so deposited C." said sum Lessee shall -be forever discharged from its duty to pay said 32 rn money -to Lessor or Lessor's predecessors in interest. It is further agreed by all parties signatory to this agreement that if 00 Lessee does enter the property described in Exhibit 'W' attached hereto that Lessee shall further have the absolute right to lease the premises to a third party for purposes of operating same and such lease shall be upon such terms and conditions as Lessee deems to be in its best interest and shall be for a term of years not toexceed the remaining term of this lease or, the terms provided for in paragraph 4 of this lease exercises its option therein granted. 12. ENVIRONMENTAL COMPLIANCE: Lessor does 'hereby agree that it will use the sewage effluent discharged'by Lessee onto the lands described in Exhibit "A" in such a manner as to comply with'all Federal or State laws or the regu- lations of any Federal or State agency. In this respect Lessor agrees to save the Lessee harmless and to defend any and all claims made by any branch of the Federal or State Government or any individual alleging a failure to comply with Federal or State law or Federal or State regulations applicable to Lessor's use of sewage effluent. 13. NUISANCE: Lessor further agrees that it will operate its research project upon the land described in Exhibit "A" in such.a manner so as not to create either a public or private nuisance as those terms are known in Texas law. Lessor does agree to hold Lessee harmless and to defend any claim brought upon such basis. 14. HEALTH REGULATIONS: Lessor further agrees that it will operate its research project upon the land described in Exhibit 'W' attached hereto in such a manner so as to comply with all Federal, State or local health regulations, whether now or hereafter established. Lessor does agree to hold Lessee harmless and to defend any claim brought upon such basis. 15. INDEMNITY: In the eventthata claim is made against the Lessee as a result of any alleged violation of paragraph 11, 12 or 13 of this agreement and Lessor is unable to, or refuses to hold Lessee harmless and defend said claim or claims, then L.C.C. Investment Corporation, as an inducement to Lessee's execution of this agreement agrees to assume the responsibility of Lessor and defend and hold Lessee harmless. 16. RENTALS: Lessee does hereby agree to pay to Lessor for and in consideration of the Lease herein granted by Lessor to Lessee the total sum of $623,398.00. Said Rental payments to be made as follows: (a) $150,000.00 to be paid on September 1, 1980. (b) $200,000.00 to be paid on September 1, 1981. (c) $200,000.00 to be paid on September 1, 1982. (d) $73,398.00 to be paid on September 1, 1983. Lessor does hereby agree that the payment to it of the monies set forth in sub- paragraph (a) - (d) above will be the total rental it is to receive for the initial term of this lease and that once Lessee has made the payments set forth above Lessee is discharged from further rentals during the initial term of this lease. 17. LESSORS PREDECESSORS IN INTEREST: Lessor's predecessors in interest are as follows: tv C:) G (1) L.C.C. Investment who acquired a farm lease and option to I� purchase from owners on the 15th day of December, 1978, (as amended) C 1 a copy of which is attached to this agreement as Exhibit "B" and made.,;!! rn m a part hereof. Cz (2) J.E. Hancock and wife Eileen Hancock who own the fee title to the real property described in Exhibit "A" attached hereto . In the event that Lessor for any reason whatsoever ceases to operate its research program upon the lands discribed in Exhibit W' and L.C.C. Investment Corporation or Owner enter upon the lands described in Exhibit "A" and the possession of same then in such event both L.C.C. Investment Corporation and Owner, over and above any specific agreement heretofore undertaken by either of them, agree to be bound by the terms of this lease agreement and to honor this agreement in accord with said terms. 18. AGREEMENT RUNNING WITH THE LAND: This agreement between all parties signatory hereto shall be a condition and covenant running with the land described VOL M2 mur 537 VOL" 7-02 538 in Exhibit "A" attached hereto and shall further constitute an equitable ser- vitude thereon and shall bind Lessor and Lessor's predecessors in interest who are signators to this agreement and shall also be binding upon any successor ccr 0 0 in title to the land described in Exhibit "A" attached hereto. Any further conveyance of thie land described in Exhibit "A" shall contain this covenant �~Z and equitable servitude. It is further agreed by all parties hereto that this a rn condition, covenant and equitable servitude shall terminate upon the expiration CZ) Q4 of this lease according to its terms. a EXECUTED THIS THE /14/day of , 1980. THE CITY OF LUBBOCK L.C.C. INSTITUTE OF WATER RESEARCH r r � L� fl! ,. MAYOR ATTEST: • y, �� x �� Seal `) . r • r •gvelyu�G?aIf--0.1Z,it y Secret -Treasurer Secretary 5 COLLEGE INVESTMENT J.E. HANCOCK ;.. r ER ATTEST: EILEEN HANCOCK o S retary OWNER THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared BILL McALISTER, known to me to be the person whose name is subscribed to the foregoing instrument and ac- knowledged to me that he executed the same as the act and deed of the CITY OF ;.- .•,ter;,. b c} as MAYOR for the purposes and consideration therein expressed and • �4 • in l ie paf!4y therein stated. y� ; ER MY HAND AND SEAL OF OFFICE, this the _LqAay of 0,U 0, w ' • w OF L Sea Notary Public in and for Lubbock County, State of Texas THE STATE OF TEXAS § COUNTY OF LUBBOCK $ BEFORE ME, the undersigned., a Notary Public in and for said County and /� , State, on this day personally appeared �I�%� L I f- its . J" � l.� 1 T of L.C.C. INSTITUTE OF WATER RESEARCH, a Texas Corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND..SEAL OF OFFICE, s the da_11of , thiy a 2 ! T v otary Public n SeatLubbock County, State of Texas THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned, a Notary Public in and for said County and Q, State, on this day personally appeared r&611,edz- of LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION, a Texas Corporation, known C'jl to me to be the person whose name is .subscribed to the foregoing instrument, ands m acknowledged to me that he executed the same for the purposes and consideration C.*D therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the A� of rile-ze Sealo ary Public i Lubbock County, State of Texas VOL 1 X02 pmp 539 THE STATE OF TEXAS § VOL.L 702 PAGE 54� COUNTY OF LUBBOCK § BEFORE ME, the undersigned, a Notary Public, in and for said County, Texas, on this day personally appeared J.E. HANCOCK and EILEEN HANCOCK, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same c x for the purposes and consideration therein expressed, and the said EILEEN C. n HANCOCK, wife of the said J.E. HANCOCK, having been examined by me privily and C= apart from her husband, and having the same fully explained,to her, she, the m said EILEEN HANCOCK acknowledged such instrument to be her act and deed, and 00 she declared that she had willingly signed the same for the purposes and con- sideration therein expressed, and that she did not wish to retract it. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of 1984,; , ?ubbock Public in a .r Seat County, State of Texas is THE STATE OF TEXAS COUNTY OF LUBV"'K 'LUBBOCK CHRISTIAN COLLEGE_ INVESTMENT CORPORATION RESOLUTION ~ ��--�-- � CALLED MEETING August 13, 1980 t BOARD OF•DIRECTORS LUBBOCK CHRISTIAN COLLEGE j, INVESTMENT CORPORATION LUBBOCK, 'TEXAS BE IT ,RESOLVED: Lubbock Christian College investment Corporation (LCCIC) hereby approves and accepts and authorizes execution of that .c.errtai'n' lease agreement entitled "WASTEWATER LEASE AGREEMENT" by and between said I,CCIC and the City of Lubbock, Lubbock County, Texas, said "WASTEWATER LEASE AGREEMENT" providing for payment by the City of Lubbock for lease of certain lands 1n Lynn County, Texas, to LCCIC, for the purpose of providing a City of Lubbock site for disposal of effluent sewage from City of Lubbock Treatment Plant through a pipeline to be constructed by LCCIC from funds provided through Environmental Protection Agency Grant to LCCIC, and also providing for granting of operation and maintenance rights on said pipeline by the City of Lubbock; and said LCCIC also hereby authorizes J.B. Potts and Harvie Pruitt of said LCCIC to execute said agreement in the name of and as the act of said LCCIC, and to prepare and negotiate and execute and approve any other documents necessary for the carrying out of said "WASTEWATER LEASE AGREEMENT" in the name of and as the act of said LCCIC. MAJORITY OF BOARD MEMBERS PRESENT: Yes MOTION TO PASS RESOLUTION: J.W. Hamby, Board Member .MOTION SECONDED BY: J.B. Potts, Board Member MOTION PASSED: By Unanimous Vote of Board Members Present CERTIFICATION I hereby certify and acknowledge that th.e above is true and correct copy of the resolution passed by the Board of Directors, LCC Investment Corporation at a called meeting held on the 13th day of August 1980, at which meeting a majority of the members of the said Board were present, and I further certify that said resolution is in full force and effect as of the date hereof. DATED: This 13th-_ day of ___August__ A.D., 19 80 . — _N cu 0 i Sec tart', Board of Directors, CJJ LCC Investment Corporation THE STATE OF TEXAS r;� COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Pubtic in and for said County and State, on this day personally appeared ,T=.A. Hicks ____________ known to me to be the person and `of„f�i„�,gr�.;"whose name is subscribed to the foregoing instrument, and lclrhq r,f'tdged to me that he executed the same for the t ., purposes and i•.d,ion therein expressed and as the act and deed of the said r :LCC/ a:nOtsient Corporation. �G1F =UNDER MY HAND AND SEAL OF OFFICE this the 13th day of Ag o ....... c, ` X3010 Seal L o c k County, Texas My Commission Expires VOL -16-702 PACE 541 r f VOL 1 702 PAGE 542 EXHIBIT "A« The following described trr-ts or parcels of land lying and being situated in Lynn Count y, Texas', to -wit: All of Tracts 2, 3, 4, 5, 6 and 8, in Lea ue and Tract 7 of League Two, according to the mapeor Plat of Wm. D. Green's Subdivision of a Leagues 1 part of.. Lynn Count 2, 3' and 4, Wilson County School Lands, o in Book 57j Page which map or plat is of record County, Texas 38, of the Deed Records of Lynn IV containing 1214.52 acres. All of Tracts 1 C31 7, 9 and 10 in League.l; Tracts 1, O 2' 6' 8, 11. 12, 13 an:! 14 in League 2' League 3; and Tracts 1 2 g % Tract 3 in �, according to the Map or Plat OfdWilliam4, inLeagD. Green C30 Wilson County School Lands, Lynn County, Texas, 3 and 4, which Map or Plat is of record in Book57 Sudivision of a part of Leagues 1, 2Page 38, Of the Deed Records of Lynn County, Texas. THE SURFACE ESTATE ONLY OF TIIE ABOVE DESCRIBED TRACTS OF L INTENDED TO BE COVERED BY THIS EXHIBIT MINERAL, INTERESTS ARE HEREBY RESERVED AND„EXCEPTED.OIL GAS AND OTHE ANDAND ARE ALL OF THE ABOVE DESCRIBED TRACTS OF LAND MENTS AND RIGHTS-OF-WAY.OF RECORD OR ARE SUBJECT VISIBLE ON THE T TO ROADS EASE THE STATE AF4 TEXAS COUNTY OF LUBBOCK `•" LEASE AND LAND USE • _ AGREEMENT The following agreement is entered into by,and between LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION, a non-profit Texas Corpo- ration, organized under the laws of the S t#te of Texas, and USC 501 (0.(3), and LUBBOCK CHRISTIAN COLLEGE INSTITUTE OF WATER RESEARCH, a 'non-profit Texas Corporation, organized under the laws of the State of Texas, and USC 501 (c) (3). 1. WHEREASi THE LUBBOCK CHRISTIAN COLLEGE INSTITUTE OF WAFER RESEARCH (hereinafter referred to as LCCIWR or as The Institute), was organized as a Research and Demonstration entity for conservation, use and treatment of wastewater, commonly referred to as effluent or wastewater, from the City of Lubbock, Lubbock County, Texas, by use, storage and application of same to certain portions•of lands in Lynn County, Texas (See Exhibit A for description of lands involved in this agreement), and whereas said LCCIWR has been funded for this purpose by United States Environmental Protection Agency Grant No. CS806204- 01-2 and amendments thereto (hereinafter referred to as EPA Grant)t and a major portion of said project involves heal effects, and, 2. WHEREASe Said Research and Demonstration Project involves and requires use of and access to portions of certain lands in Lynn County, Texas (See Exhibi U ) which said lands are now under lease anc control of LCCIC (LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION) under agreement and lease and option to,purchase by and between said LCCIC and J. E. AND EILEEN HANCOCK, said agreement dated 15 December 1978, as amended, and . 3. WHEREASe The City of Lubbock which entity (referred to herein as City) will be responsible for maintenance and operation of a pipe- =7 a 0 line from the City Sewage Treatment Plant in the City to lands herein involved in Lynn County, Texas and across portions of said landsl � NOW THEREFORE, in consideration of Ten ($10,00) Dollars and the rn premises herein, and other good and valuable consideration furnished 00 by City and LCCIWR , receipt of which is hereby acknowledged, the said C -TI LCCIC hereby grants, gives and assign to City necessary easements and VOL Pace -543 k.'rlijez T fell 70 LtJ4sre- IBJ,4TEA k'r',4SG- ",eF'CANT LCCIC AND LCGIWR-p-2 VOL M2 PAu 544 access in 6n'4or across said lands for, -the purpose of servicing and operating and maintaining said pipeline for the term of this contract or agreement .or_ as' same may be amended. CD0 4., LCCIC hereby gives, grants and assigns to said LCCIWR, the rights, privileges and easements on above land reasonably necessary � to carry out the Research and Demonstration Project in accordance C"')with terms of said EPA Grant agreement and amendments, which, among other detailed scientific procedures, (not deemd pertinent to this M agr6ement and not included herein) includes construction of the above referred to pipeline for carrying of effluent from City to Lynn County lands and storage lagoons and dispersal of said wastewater on portions of said lands described in Exhibit A and receiving effluent from said pipeline and storing same or dispersing same on portions of said lands for research and demonstration project. 5• In addition to the above privileges and easements necessary to carry out Research and Demonstration Project, the said LCCIC here- by assigns and grants the said LCCIWR the rights and privileges to enter into any agreements, leases and arrangements or.granting of ease- ments to City for the delivery of wastewater (effluent) from said City to and/or upon portions of said lands and/or to storage lagoons located on said lands for the term of this agreement or amendments thereto. All construction of the pipeline from the City and all pipeline lo- cated on lands described in Exhibit A., and construction of any and all storage lagoons and any dispersal pipelines on said lands is to be funded by LCCIWR through Environmental Protection Agency Grant No. CS806204-01-2, and not by City of Lubbock, 6. LCCIC also hereby grants and gives to LCCIWR the rights, privileges and authority to enter into any other agreement, lease or contract, including amendments to any said agreements, with the City of Lubbock and with any other entities and/or persons involved in disposal of of from City of Lubbock sewage treatment plant, and including persons engaged in farming on lands described in Exhibit A, which agreements are necessary and reasonable to effect disposal of said effluent from and by City, and carrying out of Research and Demonstration Project by LCCIWR. No agreements, however, involving disposal or dispersal of said effluent and involving carrying out of -2- LCCIC AND LCCIWR-p-3 Research and Cemonstration Project shall unduly or unreasonably interfere with or.obstruct any normal and reasonable commercial farming operations or leases or any oil, gas and mineral leases on any of -%said lands, and shall be confined to disposal and research and demonstration programs on determined portions of said lands herein described and shall be subject to written approval of LCCIC and J. E. AND EILEEN HANCOCK. if they are still owners of said lands subject to this agreement or subsequent agreements. LCCIC has entered into certain commercial farming leases with individuals farming lands described in Exhibit A., and LCCIC in- cluded in said lease a clause calling for payment of damages to said individuals for crops destroyed or .damaged as a result of research operations under the project herein described. and will, in future leases, include suitable provisions for such damages. 7. The term of this agreement and the terms of any other agree- ments executed pursuant to this agreement by and between'. LCCIC and LCCIWR and/or other persons or entities or entities involved herein, shall be from the date of execution hereof through the date of termination of a certain Lease Agreement entered into by and tween the City of'Lubbock, Texas and Standefer and Gray, Inc, dated 1 May, 1968 and any extensions thereto. Termination of this agreement, however, may be extended by agreement between City of Lubbock, LCCIC and LCCIWR, and J. E. and EILEEN HANCOCK, if said Hancocks are still a, 0 owners of said lands at time of amendment. Amendments to the con- ditions hereof may also be made by written instrument executed by the Cn parties hereto who are owners of who control said lands in Exhibit A. cli 8. If, at any time during the term of this agreement or amend- W 00 ments hereto J. E. and EILEEN HANCOCK divest themselves of ownersip J of lands involved in this agreement, then terms herein shall not apply to them in any way from date of said divestiture. 9• In the event the pipeline herein described is not constructed for any reason, then this contract or agreement is terminated as of the date it is determined that said pipeline will not be constructed. EXECUTED IN MULTIPLE ORIGINALS, THIS 'QDAY O 0,1980, at .`LUBBOCK, LUBBOCK COUNTY. TEXAS. . • ,„�ti {", E "' LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION SeatAf a'lz"s� BYE Zig` ,. —3- 1702 pmt 545 -4- LCCIC AND LCCIWR-p-4 LEASE AND LAND US4 AGREEMENT _. Signatures Cont•d) VOLA7fl2 PAG:546 LUBBOCK CHRISTIAN COLLEGE INSTITUTE=, OF YATER SWEARCH x '� ATTESTS-�� - BY: ♦`�,,��`Title +r ♦ y`tit ro �r a rn f-, J. E. HANCOCK CEJ EILEEN HANCOCK Ott -4- -5- ' VOL1702 PAC, 547 • EXHIBIT The fOAl owing described tracts or parcels of land lying and being situated in Lynn County, Texas, to -wit: • All of Tracts 2, 3, .4, 5, 6 and -8, in League Oi,e, and Tract 7 of League Two, according to the map or plat of Wm. D. Green's Subdivision of a part of Leagues 1, 2, 3, and 4, Wilson County School Lands,.' Lynn County, Texas, which map or plat is of record in Book 57, Page 38, of'the Deed Records of Lynn County, v x Texas, containing 1214.52 acres. All of Tracts 1, 7, 9 and 10 in League.l; Tracts 1 2, 6, 8, 11, 12, 13 IU C.31 and 14 in League 2; Tract 3 ins League 3; and Tracts 1, 2, 3 and 4, in Leayue 4, according to the Map or Plat of William D. Green Subdivision m C0 of a part of Leagues 1, 2, 3 and 4, Wilson County School Lands, Lynn County, Texas, CSD which Map or Plat is of record in Book 57, Page 38, of the Deed Records of Lynn County, Texas. THE SURFACE ESTATE ONLY OF THE ABOVE DESCRIBED TRACTS OF LAND ARE INTENDED TO BE COVERED BY THIS "A" EXHIBIT AND ALL OIL, GAS MINERAL INTERESTS ARE HEREBY RESERVED AND EXCEPTED. AND OTHER ALL OF THE ABOVE DESCRIBED TRACTS OF LAND ARE SUBJECT TO ROADS, EASE- MENTS AND RIGHTS-OF-WAY OF RECORD OR VISIBLE ON THE GROUND. -5- ' VOL1702 PAC, 547 ACKNOWLEDGEMENTS • . 114. t THE STATE OF TEXAS VOL 1 702 PAC,, 548 COUNTY OF LUBBOCK.. BEI'ORE'ME, the undersigned authority, a Notary Public in and for said County and Al Stat a.on, is day personally appeared of Lubbock Christian College In- ver m-ent'Corporation, known to me to be the person and officer whose name�is subscribed to the foregoing instrument and acknowledged to me `at, 'the same was the act of the said Lubbock Christian College Invest- �,:� ed Corporation, a corporation, "and that he executed the same as the {a'S�actofd';.said corporation for the purposes and consideration therein �x°peaaaVd, and in the capacity therein stated. ZE E UNDER MY HAND AND SEAL OF OFFICE, this the 3day of o ` A . D., 1980. rx .� k % d jai a• � l Lt'4� Notary Public n an or L boc County, Seal Texas CIDrn THE STATE OF TEXAS Co COUNTY OF LUBBOCK r' w BEFORE ME, the undersigned authority, a Notary Public in and for said ounty and State on.t s day personally appeared of Lubbock Christian College Insti- tute'o-T Water R6searcli, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said Lubbock Christian College Insti- tute of Water Research, a corporation, and that he executed the same as the act of such corporation for the purposes and consideration there - expressed, and in the capacity therein stated. UNDER MY HAND AND SEAL OFFICE, this thud y of A. D., 1960. i Seal OF TEXAS COUNTY OF LUBBOCK R, 1A 1 Notary b c id and for Lub ck County, Texas BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared J. E. Hancock and Eileen Hancock, known to me to be the persons whose names are sub- scribed to the foregoing instrument and acknowledged to me that they executed the same for the purposes and consideration therein enc eased. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this da of , `.1980. — Notary Pub is n a d fot Lubbo County, „ Texas al p.d.xh {til , f seal 10 THE STATE OF IEXAS COUNTY OF LUi""'�CK 1 ( r LCC INSTITUTE OF.WWATER RESEARCH RESOLUTION , CALLED MEETING August 13, 1980 BOARD OF DIRECTORS LCC INSTITUTE OF WATER RESEARCH g LUBBOCK, TEXAS, BE IT RESOLVED: Lubbock Christian College Institute of• Water Research (LCCIWR), a Texas CorpoFat ion, approve and accept a "LAND AND LAND USE AGREEMENT" by and between said LCCIWR and Lubbock Christian .jrollege Investment Corporation (LCCIC), a Texas Corporation, in which agreement said LCCIC grants to LCCIWR the rights and privileges to enter into any and all agreements, teases and contracts necessary to give LCCIWR or other entities and/or persons, including the City of Lubbock, Texas, easements, rights and privileges relating to bu1FdIng of a s•+ewage effluent pipeline from City of Lubbock, Texas sewage treatment plant to and onto certain lands in Lynn County, Texas, presently under control of LCCIC by virtue of a lease agreement between said LCCIC and ).E. Hancock and Eileen Hancock, and certain rights and privileges concerning placing of said effluent on said lands for various uses, including research and demonstration purposes described in a certain Environmental Protection Agency Grant No. CS806204-01-2 to LCCIWR. Said agreements shall be executed in the name of and as the act of said LCCIWR, and authority is hereby granted to T.A. Hicks .and Harvie Pruitt of said LCCIWR to prepare, approve and execute any and all documents relating to this agreement with LCCIC and with any and all other entities and persons with whom any agreements may be reached. MAJORITY OF BOARD MEMBERS PRESENT: Yes MOTION TO PASS RESOLUTION: T.A. Hicks, Board Member MOTION SECONDED BY: Harvie Pruitt, Board Member MOTION PASSED: By Unanimous Vote of Board Members Present CERTIFICATION I hereby certify and acknowledge that the above 1s true and correct copy of the resolution passed by the Board, of Directors, LCC Institute of Water Research Corporation at a called meeting held on the 13th day of August 1980, at which meeting a majority of the members of the said Board were present, and i further certify that said resolution is in full force and effect as of the date hereof. DATED: This 13th__ day ofA.D., 1980 — ____ --___Augzust, w a Secretary, Board of Directors, C_3't Lc:C Institute of Water Research THE STATE OF TEXAS r" C� COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and ,for,;,_.•;said County and State, on this day personally appeared T.A. Hicks , known to me to be the person and fyAU�e1f%,.whose name is subscribed to the foregoing instrument, and v�" arFac n0 i$%ged to me that he executed the same for the purposes and �co� r Sion therein expressed and as the act and deed of the said s*t4:l=ute of Water Research. = a.aG•1' UNDER MY HAND AND SEAL OF OFFICE, th i s the 13th day of t , A.D. , 19 8 0 — -- _ _ Seal N r PubI is Lubbock County, Texas My Commission Expires--____�___ 'VOL -1.702 PAGE 549 THE STATE OFTEXAS COUNTY OF LIJ,`)CK 0 LUBBOCK _CHRISTIAN COLLEGE INVESTMENT CORPORATION Viol.702 pp��. 5� RESOLUT I ONM �„ ' CALLED MEETING August 13, 1980 BOARD OF DIRECTORS LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION ` LUBBOCK,' TEXAS BE IT RESOLVED: That Lubbock Christian College Investment Corporation (LCCIC), A Texas Corporacion; hereby approves and acce.p,ts- a '"BLAND AND LAND USE AGREEMENT+1* by and between said LCCIC and Lubbock C-hristian College Institute of Water Research (LCCIWR), a Texas Corporation in which agreement said LCCIC grants to LCCIWR the rights and privileges to enter Into any and all agreements, o leases and contracts necessary to give LCCIWR and/or other entities x and/or persons including the City of Lubbock, Texas, easements, rights and privileges relating to building of a sewage effluent. pipeline from City of Lubbock, Texas sewage treatment plant to and onto certain lands in Lynn County, Texas, presently under control of LCCIC by virtue of a lease agreement with J.E. Hancock and 72 Eileen Hancock, and certain rights and privileges concerning placing of said effluent on said lands for various uses, including research and demonstration purposes described in a certain Environmental Protection Agency Grant No. CS806204-01-2 to LCCIWR. Said agreements shall be executed in the name of and as the act of said LCCIC, and authority is hereby granted to Harvie Pruitt and J.B. Potts of said LCCIC to prepare, approve and execute any and ail documents relating to this agreement with LCCIWR and with any and all other entities and persons with whom any agreement/s may be reached. MOTION TO PASS RESOLUTION: Guy Goen, Board Member MOTION SECONDED BY: J.W. Hamby, Board Member MOTION PASSED: By Unanimous Vote of Board Members Present CERTIFICATION I hereby certify and acknowledge that the above is true and correct copy of the resolution passed by the Board of Directors, Lubbock Christian College Investment Corporation at a called meeting held on the 13th day of August 1980, at which meeting a majority of the members of the said Board were present, and I further certify that said resolution is in full force and effect as of the date hereof. DATED: This 13th_ day of __August____ , A.D., 19 80 . f --- ------------------- Sec tary, Board of Directors, Lub ock Christian College Investment Corporation THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared B_P0tts________ , known to me to be the person and ...-o* 'fl�a,gr ,whose name is subscribed to the foregoing instrument, and *A0t'�dged to me that he executed the same for the purposes and fi �fl•�ef t, on therein expressed and as the act and deed of the said ristian College Investment Corporation. F�� d o"ta'ti ��aG UNDER MY HAND AND SEAL OF OFFICE, th i s the 13th day of A.D. , 1980 Sealic - N?bock Publ L4 County,Texas My Commission Expires__ ADDENDUM TO LEASE AGREEMENT THE STATE OF TEXAS COUNTY OF LUBBOCK 4 , This addendum is entered into .on this the -/Gjday ofC 7/, 1980, by and between the City of Lubbock, a home rule municipal corporation, hereinafter referred to as City, and Standefer and Gray Inc., a corporation existing under the laws of the State of Texas, with its principal offices at Lubbock, Texas, hereinafter called Company. WITNESSETH: WHEREAS,. the City and Company did enter into a lease agreement on the 1st day of May 1968, as amended,.a copy of said agreement as amended being attached hereto as Exhibit "A"; and WHEREAS, the agreement attached as Exhibit "A" did provide that the City would pump all of its sewage effluent to lands owned or under the control of Company; and WHEREAS, Company and,City do recognize that it would be advantageous for additional lands to -be provided for the purposes of properly handling the sewage effluent delivered-by-bity to Company;,and WHEREAS, it would be difficult for Company to provide additional land deemednecessaryunder the premises at this time; and WHEREAS, the City and Company have been approached.by'the L.C.C. Institute of Water Research with an offer to provide an additional discharge site for sewage effluent; and WHEREAS, both City and Company would benefit by having an additional dis- charge site: NOW THEREFORE THE CITY AND COMPANY AGREE AS FOLLOWS: co 1. That notwithstanding any provision contained in the lease agreementp Z3.11 between City and Company, which agreement is attached hereto as Exhibit "A", M Cil the Company does hereby grant to City the right to pump sewage effluent to a discharge site located in Lynn County, Texas, said site to be operated by theme L.C.C. Institute of Water Research and hereinafter referred to as Institute CM Lagoon. 2. The City shall meter the volume of sewage effluent, which City is instructed under paragraph 8 to pump to the Institute Lagoons. The total - volume of such effluent pumped in any calendar year to the Institute Lagoons Ey/tIBT7 ''D" T -D UMS TE 10,4746k 4&,+S E AGP-C-Eh7EtiT - EXHIBIT "B" TO SEWAGE EFFLUENT SUPPLY CONTRACIVOL - PAGE 551. got X02 PAu 552 shall entitle the City during the immediately following year to use an equal volume of sewage effluent (not to exceed 7,200,000 gallons per day) for its own purposes without obligation to pay Company any payments of money. It is under- stood by the parties hereto that sewage.':effluent produced by the sewage treat- ment plant or plants, at locations more than 5,280 feet from the Northwest o ZK corner of Section 1, Block B, is specifically excluded from the addendum. M N C11 3. The Company further releases the City from any claim for payment of C= money for any sewage effluent City may pump to the Institute Lagoon sites in Lynn County, Texas. CA 4. That Company does hereby agree that it will use the sewage effluent discharged by -City onto the lands operated by Company in such a manner as to comply with all Federal or State laws.or regulations and City agrees to deliver sewage effluent to Company's reservoir in conformity with such laws and regu- lations. 5. That Company will with all dispatch commence negotiation with L.C.C. Institute of Water Research leading to an execution of a contractual agreement -between them which will specifically cover: the following points: (a) The Agreement shall determine the percentage of sewage effluent which the Companyshall°be entitled;tohave pumped to its lands and the per- centage of sewage effluent that shall be pumped to land in Lynn County to be used by, L. C.C. Institute of Water Research. (b)- The agreement shall designate one party to advise City as to what percentage of sewage effluent shall be pumped to either the properties operated by Company or to the Lynn County property upon which L.C.C. Institute of Water Research is conducting its activities. (c) The agreement shall recognize the City's right to use for its pur- poses any sewage effluent at no cost to City (see paragraph 2 of this agreement). (d) The agreement shall recognize the City's right to sell and deliver to others such sewage effluent as outlined in the lease agreement between City and Company paragraph VIII 2 (see Exhibit "A" attached hereto) but such right is subject to payment by City to Company as provided in par- agrapti VIII 3 of the lease agreement above mentioned. The agreement shall further contain a provision that only Company is entitled to payment as above set out and L.C.C. Institute of Water Research shall never be entitled to any 'such payments and will make no claim for same. I (e) The agreement shall further recognize that the City is entitled to dispose of all sewage effluent upon the lands owned or controlled by Company or land being controlled, owned or used by L.C.C. Institute of Water Research and notwithstanding'any -other provisions of the agreement between Company and L.C.C. Institute of'Water Research. City will have the absolute right to pump to either the Company's sit=es or sites under control of L.C.C. Institute of Water Research, any amount of sewage effluent necessary to provide for complete disposal of City's sewage .effluent at any point in time. Company and L.C.C. Institute of Water Research will further agree to take all such sewage effluent under such circumstances. 6. Company will file an executed copy of the agreement -provided for in paragraph 5 above with the City. Secretary within a reasonable period of time after the execution of this agreement. 7. Except as altered or changed by this Addendum Agreement.the.original lease agreement as amended in March, 1978, shall remain in effect between the parties hereto in accordance with the terms and conditions of said original lease agreement attached hereto as. Exhibit_:'A'.'. 8. City agrees to pump the percentages of sewage effluent to the Company properties and to the Institute properties as directed by.the individual appoint- ed by Company and Institute, provided, however, should it become necessary to provide for complete disposal of City's sewage effluent at any point in time, the City shall have the absolute right to pump to either the Company sites or Institute sites. a . CD x 9. It is understood that Institute, et al, and City will execute a Waste j\7 CA Water Lease Agreement which provides that in the event of certain defaults by C= Institute that City has certain rights to enter upon the 4,000 acre tract and C„. operate same for discharge of effluent. cc CA City accordingly agrees with Company that, in the event that it is re- quired to enter upon said 4,000 acre tract, and determines to operate same in a manner to produce income therefrom, it will give Company first option to manage and operate said. 4,000 acres for the disposal of said effluent. In the event Company elects not to operate said 4,000 acres, then City shall not be obligated to pay the service charge herein provided for disposal [VOL 1702 Pur 553 i ' ' VOL 1 7®2 PAur 554 of the effluent on said 4,000 acres; provided, however, should any party or entity pay a service charge for the use or disposal of said effluent, said charges shall be paid to Company; provided that City shall have no obligation tv 0 in the collection of said charges and shall make no claim against Company for x said charges. C3"t Executed this the ;�_��=—� day of At , 1980. rnrn TETE CITY OF LUBBOCK STANDEFER & GRAY, INC. Ca ..12— S Le 01,1�;1� 67ER, MAYOR - •Nsi X •r. r. y� x .'LTTE T: q= [ a =t.Evayt Gaffge, pity Sera Treas Y� M . M'•+i4 E116 c.�i THE STATE OF TEXAS § ATTEST: Seat urer re dry COUNTY OF LUBBOCK § BEFORE HE, the undersigned, a Notary Public in and for said County and State, on this day personally appeared J , of STANDEFER and GRAY, INC., a Texas corporation, known to me to b the person whose name is subscribed _to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed Ear•,+,,�,: .. . sfiin the capacity therein stated. s ¢'GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of , r tia s Seal �/ ry Public in and for bbock County, State of Texas i THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared BILL McALISTER, known to me to N be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as the act and deed of the CITY OF LUBBOCK and as MAYOR for the purposes and consideration therein expressed and in the capacity �4the�,ein: stated. ER MY HAND AND SEAL OF OFFICE, this the day of , S^ k a Notary Public in and for Lubbock County, State of Texas M Gil m cc VOL 1702 PAG: 555 SUPPLEMENTAL CONTRACT THE STATE OF TEXAS X KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK X THIS CONTRACT is made and entered into this 23 day of March, 1978, 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. W I T N E S S E T H Heretofore, on the 1st day of April, 1968, the Parties hereto entered into that certain Lease Agreement, a copy of which is attached hereto and marked "Exhibit A" for reference. Said attached Lease Agreement has a primary term, as set forth in Article XII. 1 thereof, which terminates on December 31, 1990, or subsequent thereto after five (5) years notice in writing to terminate has been given by either Party. And, it is the desire of the Parties hereto to extend the primary term of such Contract dated April 1, 1968, as hereinafter provided. NOW THEREFORE, in consideration of the mutual agreements co 0 and the considerations of the terms, conditions and covenants to ZK be kept, done and performed by the Parties hereto, the Parties C)l C) do mutually agree and contract that Article XII.l.. of Exhibit A, rn is hereby amended to read as follows: t ARTICLE XII.1 TERM OF CONTRACT W Notwithstanding any other provision of this Contract, the term of this Contract is from the date set forth hereinabove until December .31, 1998, and thereafter until a date five years (5 yrs.) subsequent to written notice of termination of this Contract by either Party. A five year (5 yr.) termination notice may be given by either Party to the other, at any time subsequent to December 31, 1993. Notice is to be transmitted by registered or certified mail with return receipt requested. von 1 702 PAG .571 AN VOL 1702 PAcc 572 PROVIDED, HOWEVER, that the above Amendment is conditioned upon the following two (2) contingencies: (A) That a sewage effluent pipeline contemplated to be constructed with funds derived from a grant from a U. S. Governmental Agency and extending from the present City of Lubbock sewage disposal system to the o North boundary line of the proposed research and develop- ment tract of land consisting of approximately four thousand (4j000j acres lying immediately North of Wilson, Lynn County, Texas, is constructed; (B) That Mr. and Mrs. J. E. Hancock, their heirs P or assigns, have executed a Contract whereby said four thousand (4,000.) acre tract referred to in Paragraph (A) �. above, shall be obligated to and used for the purpose of [-P- environmental and crop production research and disposal of sewage effluent thereon. WITNESS OUR HANDS and seal of office the date first herein- above written. ATTEST: THE CITY OF LUBBOCK By: ROY ASS, Mayor ity Secretary ATTEST: , Secretary STANDEFER & GRAY, INC. By:� 1,411��-�-- 'J. FRANK GRAY, Prggident -2- KJ: th RESOLUTION BE IT RESO._, JED BY THE CITY COUNCIL OF THE CITY O �UBBOCK: THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authorized and directed to execute a Supplemental Contract between the CITY OF LUBBOCK and STANDEFER & GRAY, INC., attached herewith which shall be spread upon the Minutes of the Council and as spread upon the Minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. R Passed by the City Council this 23 day of March , 1978 ROY BASS, MAYOR 1 ATTEST: Treva Phillips, City Secr tary-Treasurer APPROVED AS TO FORM: r Fred O. Senter, Jr., City Attor y VOL 1 702 . PAG: 573 f•. 2 VOL 1702 Pu574 CERTIFICATE OF CORPORATE RESOLUTION I, J. B. POTTS, Secretary of STANDEFER & GRAY, INC., do hereby certify that said corporation is duly organized and existing under the laws of the State of Texas; that all franchise and other taxes required to maintain its corporate existence have been paid when due and that no such taxes are delinquent; that no proceedings are pending for the forfeiture of its Certificate of Incorporation or for its dissolution, voluntarily or involuntarily; that it is o duly qualified to do business in the State of Texas and is in good M C -TA standing in such State; that there is no provision of the Articles C= o z-- of Incorporation or By -Laws of said corporation limiting the power+r of the Board of Directors to pass the resolution set out below and � that the same is in conformity with the provisions of said Articles of Incorporation and By -Laws; that the Secretary is the keeper of the records and minutes of the proceedings of the Board of Directors of said corporation, and that on the 11th day of August, 1980, there was held a meeting of the Board of Directors of said corporation, which was duly called and held in accordance with the law and the By --laws of the. corporation, at which meeting all of the Directors were present; and that at said meeting the following resolution was duly and legally passed and adopted and that the same has not been altered, amended, rescinded or repealed and is now in full force and effect: RESOLVED, that STANDEFER & GRAY, INC. ("Company') execute with the City of Lubbock the Addendum to Lease Agreement, a copy of which is attached hereto; RESOLVED, that Company execute with Lubbock Christian College Institute of Water Research ("Institute") the Sewage Effluent Supply Contract, a copy of which is attached hereto; RESOLVED further, that J. Frank Gray as President and J. B. Potts as Secretary be authorized to execute on behalf of Company any and all instruments necessary or appropriate to effect or carry out these contracts; BE IT FURTIiER RESOLVED that J. Frank Gray be appointed as the desiarated agent of Company for purposes of advising City as to the percentage of sewage effluent to be delivered to Company Lagoons. _j r . 00 R IN WITNESS WHEREOF, I have hereunto set my hand as Secretary of said corporation and have attached hereto the official seal of said corporation this 11th day of August, 1980. J Potts, Secretary (Seal) 0 0 I hereby certify that I am a Director of said Corporation and that the foregoing is a correct copy of the resolutions passed as therein set forth, and that the same is now in full force. p rn s J. Frank Gray, Dire 6117r VOL 1702 02 PACE 575 No Text ill d er V1L'.702 PAGE 556 LEASE AGREEMENT, TH2 STATE OF TEXAS . X , •X - ,KNOW:.ALL MEN BY THESE PRESENTS: COUNTY OF LUB$OCK X THIS CONTRACT made this day of dk , 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. ' WI T N E S S E T H T H A T - - - - - - - - W That the CITY'and COMPANY hereby mutually agree that for and 00 in consideration of the extension of the terms of that certain lease contract dated Apri1-28,:.1960, executed by the parties hereto, and s`the additional consideratidn 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 onthe 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 hun- dred seventy (470).acres of land, described as follows:. Being all of Section 1, Block B, Lubbock County, Texas, except.the areas used .for highway purposes and except that part of said Section l owned by J. Frank Gray and Wylie Hudman; 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. •. -imp 111111 t 1.1 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. `t I.2 The consideration to be laid by -COMPANY shall be 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 $1,4.10.00 per, year is the agreed annual rental to be paid to CITY by COMPANY ..here-'- under. All rentals shall be'payable on the first day of January of- ;.•<. t .. 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 agree- �ment. ARTICLE II. II.1 It is understood that 'the City of Lubbock's Sewage 'Treatment Plan - is presently.located and situated on the above-described land and the City. -reserves the 'right to maintain, expand; operate,: change and alter - . said p lant 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 main- taining the sewage plant constructed or to be constructed in the Northwest corner of Section 1,.Block B,. and the City -agrees to pump l! all of the effluent from the present plant or additions thereto or plant 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 e eluding sales of effluent for agriculture purposes) and that effluent City• may use 'for Its own purposes as hereinafter provided. Sew -9 age affluent produced at sewage treatment plants at locations more,,.*, than 5280 feet from the Northwest corner of Section 1, Block B,` is s.:r:cifically excluded from this contract. The'City agrees no indus-. ----__--. • .. ; VOL 1 7O2 PAGE 557, • coPage 2. CGS von 02 Pace 558 trial 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 he 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 d And the COMPANY further agrees to properly distribute such effluent at.. its exper_se onto the lands herein leased and the lands now owned by J. - Frank Gray and Wylie Rudman, which'.lands have been leased to COMPANY } 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'COYYPANY o may, in order to comply with its obligations hereunder, provide.emer- TN gency storage 'facilities at its own cost and expense:,. and does hereby -o covenant with -CITY . to exercise care .to prevent such effluent from r^ draining into the Yellowhouse :Canyon or onto lands not covered by this.c ..Lease or to lands not owned -or controlled by. COMPANY, unless otherwise of such :land given in writing, which permitted by the. owner. or owners shall be'subject .to all of the terms, conditions and covenants contained in this Agreement.. COMPANY does further. covenant with'CITYto handle,;. distribute Wand/or store and to. otherwise dispose of such :sewage .effluenf 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 constitut, =' is placed on said lands and to keep a nuisance, when and after the same and maintain all premisesin such condition as to conform with all Stat and local health regulations, whether.now-or hereafter established by t State law or promulgated by the State Department .of Health,. provided;. h ever, that such effluent' is delivered. to the reservoirs herein.referred to in conformity with such regulations and laws. II.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 izuisance in violation of said State or local health regulations, to. correct and abate such condi- tion in a reasonable time and to do such -things as may be. Pae 3. -`� ? •.t s. 01. pointed out in. writing necessary* to correct and abate such .condition. If. such effluent should drain into the Yellowhouse Canyon through negligence onxthe . part of Company or, off the described lands onto other lands,.- ;or if effluent should be 'allowed of 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 -con dition without• -abatement, for an, unreasonable time after. -notice in writing -to COMPANY, or if such sewage effluent should be handled, distributed •pr 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' sof the effluent'as -delivered by.'. the .CITY':.' • = shall not be.'construed as a nuisance under:.the. terms -of ,this 'con- -.: 'tract.. ARTICLE -III : • . , . III.1 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 Yel'lowhouse-:Canyon rim, for the establishment and en- - largement of. the :City. Dump ground for the disposal of trash . and: bage hauled from the City*, ,and to excavate where necessary iri 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,.C'7 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 terraced in the :same 'manner.• as ' that land so; taken for additional dump: ground hereunder. and • CITY wilh Page A, ' VO[1702 Rol- 559 I 5 VOL .. 702 PAC:6 also make effluerit available at .the highest point on such substituted •land. ARTICLE IV. •' IV.1 COMPANY by these prsents 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. b,; • IV . 2 COMPANY shall not, - without the written• consent of . CITY,, x' assign this Tease: or sublease any part. of the 'above leased land and .C -n. C:)_ - should said COMPANY* attempt to assign ' this lease or. sublease 'any or all of the above.described land, then and in that event, this con- tract -shall,-* at the .option of CITY,.-. terminateas 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.4 It is agreed that COMPANY shall have the right upon termin- ation of this 'lease contract to remove. from. the 'above described City: .lands, -.any improvements that may have been placed thereon by it, in- cluding fencas,•.'except-outside boundary fences, .the two fences sep- arating•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 iinthei manner stated, CITY shall have the right to enter into 'said premises and take possession 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:: , Page 5. 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 Ve .constructed for this purpose,' and for Fthe 'additional purpose of disposing of City sewage,' and it isthe 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 hereinafter defined and man- agement of effluent emitting'from the City.'s sewage disposal sys- tem and the consideration herein agreed to be paid by CITY as Lessor herein, is in consideration of the services. to be performed ' by COXPANY,,.as Lessee herein, -in handling, caring for and disposing.''. of all CITY effluent delivered to reservoirs by. CITY and the taking thereof by.001XPANY 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. -sub jest to the ..terms of . any oil and gas leases ihtexistence, or to be .. executed1by. 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...•:!' .t 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 x' irrigation for..agricultural products or toxic to livestock, then in either event* ` COMPANY may.terminate .this contract after. giving ' • ". .. . Page '6. : • . . r}�. - • V�1L PAGE 561 . , .. � . �*.•.,; � 1. " f VOL � 702 PASS 562 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 contractor: 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 isnot complying with;the terms of this con- :. tract,• CITY shall . notify COMPANY in writing of the facts relied upon. as constituting 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 obli-- • gations hereunder..as they may have been pointed out in writing as . -aforesaid:. .. .... . ARTICLE VII.. VI I.. '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 I ..(5%) per year upon its costs, and that.after applying such depreci- : ation, 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 -arid COMPANY has filed written statement with :the City. Engineering, Department showing actual cost • of pipe Wand its. -location.• VII.2 . -It is further. agreed that CITY reserves. the right .to con= struct necessary utility. lines and • pipelines:,• in, above. 'and below the ground at any location on CITY owned land, provided -it does not* .. Page 7. interfere with•the orderly operation by COMPANY of its effluent dis posal system•and subject to paying reasonable crop damages to. COMPANY, if any occurs CITY ;agrees to furnish .at commercial rates,. and COMPANY agrees to use and timely pay for electric power.used and to be used in connection therewith*.'. VII.3 Itis agreed the CITY will at its. own expense maintain four. J4) eighteen -inch . (1.8 -in.) outlets -in the lagoon. reservoir consisting.. --S. of approximately twenty-three .(2.3)' acres.,and CITY. will provide and.' maintain at its -own cost two .(2). pumps capable of pumping .thirty five -hundred (3.;500.)., gallons of ,effluent per. minute at a head of ' twenty. -five -'.(25) feet.. In the maintenancel of. the two. pumps, the. CITY will keep installed and maintained the.pipe from the reservoir. to the intake -side of the pumps 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 eventthe 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 -Rudman 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 o€.said reservoir and place'it in a: condition suitable 'for.agricultural purposes at CITY'S expense.. ARTICLE VIII.- • C)l C:) VIII11 It is mutually conceded.and agreed by the parties hereto that COMPANY has for -many years contracted for and has satisfactor-'9 '' ily disposed of all of the CITY effluent resulting in a financial . benefit to CITY in'that the CITY has not been compelled -to construct,* • o maintain and operate 'additional facilities and sewage disposal and f ,, tr aatment. plants ., • The 'CITY recognizes: that as..a a result of this • •• '.dam Page S. �� von" 702 Paso 564 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 and made extensive capital investment upon the lands owned by J. Frank Gray and Wylie Hudman • o and upon other lands leased and controlled by said land owners, in order to adequately dispose of the CITY effluent during wet and U1 inclement weather, and particularly during the winter months when T_ c� m 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, associ- ation or 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 term 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 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 (10) per one thousand (1,000) gallons of constant flow of City effluent as hereinafter defined and two and one-half cents (2 1/20) per one thousand (1,000) gal- lons of demand flow as hereinafter defined. Page 9.. • g.• "CONSTANT FLOW" shall be defined herein as the average daily flow .of effluent delivered to. all recipients, including the Ca.ty. 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 ex! - r :., •cluding COMPANY,, during any one week in,a contract year., D. "A CONTRACT'YEAR".shall be .defined here.in•as each success ive'twelve-month*period beginning on the effective date; of this contract and ending on each successive:anniver�- t . .sary date. during the term hereof. E.. "DEMAND FLOW" for purposes of this agreement shall be.. • defined as .'all effluent furnished to ' all recipients including tk6 City of Lubbock,. excluding the COMPANY, ' in excess of .the constant flow hereinabove -defined..: VIIIA All payments. -due -COMPANY hereunder shall be finally • cal- culated' as of the .end of each .contract 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 payments shall be*.agreed.upon in advance by •, the parties., hereto.. and shall be 'substantially equal to one -twelfth bw (1/12th): of the anticipated annual payment due COMPANY It is o' 'understood in this regard that, good faith 'shall be :exercised by the parties in arriving at .the amount of the monthly payment. and .:CD32 . • due consideration shall be. given to past'annual payments hereunder;S it is further agreed that .during the first contract year an esti-' mation.will be made.by the parties of the probable constant. flow'. and the probable,'deriand flow,-tiking into.consider.ation the projected usage''by. industrial-ar otherrecipients,' including CITY,, of.. ef f luent • t Page 10. I!. ` - �CJr 110*0) VOL 1702 PAGE 566 . and, an annual- payment will be projected- 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 ` g year during the term hereof, appropriate .calculations based upon ' metered effluent flow will be made by. the parties hereto as to con- stant on stant flow (as herein defined) and demand flow as herein defined) "M. • r -cf 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.. If it be determined that the estimated monthly,' payments 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 In the event it be'de termiried that the.estimated monthly payments theretofore paid COMPANY by CITY exceeded the calculated payment* .. r due COMPANY .as herein. provided; :then such 'overpayment will be ad- . justed by. subtracting • such 'overpayment from the first monthly pay ments due COMPANY during the following-contract year. ' ARTICLE 'IX. IX.1•' 'MEASURING EQUIPMENT--AVAILABILITY OF CITY RECORDS TO COMPANY It shall be .the responsibility of CITY at its. expense to install and maintain a controllsystem for the purpose of making • ` satisfactory delivery of effluent to all recipients, including CITYi. . 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 measure- ments for effluent metered as herein provided shall be one thousand: gallons (1.,0.00, gala) of water, U. S. Standard Liquid Measure. COMPANY shall have access -at -,all- 'times to such metering equipment, but the reading;.calibration4and adjustment of the meters-shall be done' .: Page lI.' 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. Tho -'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 information as it may request fromthe 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 percent- age .of the error is ascertainable by calibration tests or -mathemati- cal calculations or.by estimating the'quantity.of effluent delivered during preceding periods under similar conditions when the meter -was., registering accurately.'- 2. ccurately.2 ' CITY agrees to furnish unto. COMPANY three (3) outlets on the Southwestern Public Service Company pipeline .to be .constructed p' from the City Sewage Disposal,Plant to the Southwestern Public Service Company.facilitiy, at locations to. be agreed by the parties hereto, CJ 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 contracts to secure authority wi.thpurchasers of effluent Page E '4702 PAG_ 56' VOL 70 PAGe 568 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 controllgd by COMPANY, the CITY 4 agrees to immediately give notice to COMPANY of all contracts for the,- sale heasale of effluent to third parties, additional usage of.effluent by C the CITY for its own purposes, and the anticipated projected amounts N-) U1 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 O _ 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 corporation. for agricultural use. Stich 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. ARTICLE XI. XI.1 If for any reason CITY fails 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 Hudman and the City of Lubbock on even date herewith shall, at the option of J. Frank Gray and Wylie Hudman 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. - X:I.1 TERM OF CONTRACT Notwithstanding any other provisions of this contract, the Page 13. .� ter. - a- 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.supersede and cancel all of the terms, condi- tions 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 determination 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.!' 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 Secretary 8 of the 'City of Lubbock,. on behalf of the 'CITY, and to. COMPANY at Box 711, Lubbock, Texas.-- TE XIII A . In the event CITY should'acquire 'title .to the Gray and Hudman lands,.this,contract shall terminate.. F-a. XIII.S If any provision of this agreement be invalid under exist- ing law or would operate 'under. existing law to render this agreeneHt,. unenforceable, then such provision, insofar as it is necessary to render this agreement enforceable under existing law, shall be deemed to be deleted herefrom and this-agreement in-all other respectsshall remain in full force and effect,.subject to specific options granted to.Company hereinabove.. Page- 14. I VOL 1702Pac:56 VOL 1702 Mr.570 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,,- lookouts,- interruptions of transportation, freight. embargos -or failures, exhaustion or unavail-t.,%:� ability on the •open market or delays in delivery of material, equip. ment or services necessary to the performance of any provision.'here r" of, or happening of unforeseen acts,- misfortune or casualty whereby. Po; ; 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 IV.This agreement is binding upon the respective 'successors, ..executors and assigns. -of the parties hereto.. CITY OF L CK -. ATTEST B LL 4 .. • W. D. Rogers, r. Mayor -C ty. Secret STANDEFER .& -GRAY, INC. By Pres dent Attest:. S retAty. Page 15. ' �IIAIAAAA�AI��A I��. I I SEWAGE EFFLUENT CONTRACT aTIES �) STANDEFER & GRAY, INC. �) L.C.C. INSTITUTE OF WATER RESEARCH' alIBITS L) LEASE AGREEMENT BETWEEN CITY OF LUBBOCK AND STANDEFER & GRAY, INC. (as amended) �) ADDENDUM TO ABOVE01 T H E S 7 A i L- 01- I L AA z� COUNTY OF LUBK s 1 r LCC INSTITUTE O_F . WA_T_ER RESEARCH i --- RESOLUTION ,�N--- y ' Yt1L. tU PAG: C J78 CALLED MEETING August 13, 1980 BOARD -0 F DIRECTORS LCC INSTITUTE OF WATER RESEARCH LUBBOCK, TEXAS- . � , BE IT jtESOLVED: That Lubbock Christian College Institute of Water Research hereby. approves and authorizes executton of a certain contract entitled "SEWAGE EFFLUENT SUPPLY CONTRACT", a contract by m and between Lubbock Christian College Institute of Water Research o and Standefer. and Gray, Inc., a Texas Corporation said contract providing for supply of City of Lubbock Sewage effluent of Lubbock Christ -tan College Institute of Water Research by said Standef,er and C -n Gray, 'Inc.; and that T.A. Hicks and Harvie Pruitt of Lubbock Christian College Institute of Water Research be and is hereby authorized to execute said contract In the name of and as the act m of said Lubbock Christian College Institute of Water Research (LCCIWR), and to prepare and negotiate and execute any other documents, including amendments thereto, necessary to bring about a the carrying out of said contract. MAJORITY OF BOARD MEMBERS PRESENT: Yes MOTION TO PASS RESOLUTION: Harvie Pruitt, Board Member MOTION SECONDED BY: Don Gregory, Board Member MOTION PASSED: By Unanimous Vote of Board Members Present CERTIFICATION I hereby certify and acknowledge that the above is true and correct copy of the resolution passed by the Board of Directors, LCC Institute of Water Research Corporation at a called meeting held on the 13th day of August 1980, at which meeting a majority of the members of the said Board were present, and I further certify that said re.,solution is in full force and effect as of the date hereof. DATED: This 13th__ day of ____M_August__, A.D., 19 80 . Secretary, Board of Directors, LCC Institute of Water Research THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and for. said County and State, on this day personally appeared T.A. Hicks _ _ _ known to me to be the person and 4.Yof'i,�er' whose name is subscribed to the foregoing instrument, and ac o�faI edged to me that he executed the same for the purposes and c3 r$t'"�On's•%lration therein expressed and as the act and deed of the said =Q tJ titute of Water Research. "w�P ,rN.�.F,' 1/EN UNDER MY HAND AND SEAL OF OFF ICE, this i s the �N_ day of A.D. , 19 _. , d U 0 3 s°+r1t11111\� Seal -------c----,�-� - - No y ubli— L ock County, Texas My Commission Expires_________ THE STATE OF TEXAS ,COUNTY OF LUBV'X �r LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION •+ 1 RESOLUTION r - to CALLED MEETING August 13, 1980 BOARD 'OF ,DIRECTORS ` LUBBOCK CHRISTIAN COLLEGE INVESTMENT CORPORATION LUBBOCK, TEXAS BE IT RESOLVED: Lubbock Christian. College Investment Corporation (LCCIC) hereby approves and accepts and authotizes the execution of a cer.t,a,l-n contract entitled "SEWAGE EFFLUENT SUPPLY CONTRACTN, a contract by and between Lubbock Christian College Institute of Water Research and Standefer and Gray, Inc., a corporation, said contract providing for supply of City of Lubbock Sewage effluent to Lubbock Christian College Institute of Water Research by said Sandefer and Gray, Inc.; and that Harvie Pruitt and J.B. Potts of said Lubbock Christian College Investment Corporation be and 1s hereby authorized to execute said contract in the name of and as' the act of said Lubbock Christian College Investment Corporation, and to prepare and negotiate and execute any other documents, including amendments thereto, necessary to bring about the carrying out of said contract. MAJORITY OF BOARD MEMBERS PRESENT: Yes MOTION TO PASS RESOLUTION: J.W. Hamby, Board Member MOTION SECONDED BY: J.B. Potts, Board Member MOTION PASSED: By Unanimous Vote of Board Members Present CERTIFICATION I hereby certify and acknowledge that the above is true and correct copy of the resolution passed by the Board of Directors, Lubbock Christian College Investment Corporation at a called meeting he id on the 13th day of August 1980, at which meeting a majority of the members of the said Board were present, and I further certify that said resolution is in full force and effect as of the date hereof. DATED: This 13th__ day of _____Aust A_, A.D., 19 80 . -- — ------------------— --- — Se etary, Board 0f Directors Lubbock Christian College Investment Corporation THE STATE OF TEXAS w 0 COUNTY OF LUBBOCK x BEFORE ME, the undersigned authority, a Notary Public in and N) for said County and State, on this day personally appeared 01 �B. P 0 t t s , known to me to be the person and ---- ------- officer whose name is subscribed to the foregoing instrument, and 3 - acknowledged to me that he executed the same for the purposes and ^� consideration therein expressed and as the act and deed of the said Lu.h,bock.Christi-an College Investment Corporation. :. aG�;t/l:N.:U,NDER MY HAND AND SEAL OF OFFICE, th i s the 13th day of u ust' t" r�=. —� *-cam ---- A.D., 19 80 771 eat �l { '• •`z,� N.?a—yub I icF . (13 LCounty, Texas •• my Commission Expires VOL 1702 PACE 579 v t' THE STATE OF TEXAS § WILL w,.r 580 § SEWAGE EFFLUENT SUPPLY CONTRACT COUNTY OF LUBBOCK § THIS AGREEMENT is made this day of''A., 1980, by and between STANDEFER & GRAY, INC., a Texas corporation, as "Company", and LCC Institute of Water Research, a Texas corporation, as "Institute". m W I T N E S S E T H: x WHEREAS, Company has a lease agreement with the City of N') C.n Lubbock, as "City", dated May 1, 1968, as amended March, 1978, a C= copy of which is attached hereto as Exhibit "A"; and r^ WHEREAS, the agreement attached as Exhibit "A" provides that City will pump all of its sewage effluent to lands owned or under control of Company; and WHEREAS, Institute has approached Company with an offer to provide an additional discharge site for sewage effluent located in Lynn County, Texas, hereafter referred to as "Institute lagoon"; and WHEREAS, an addendum to Exhibit "A" is required to allow City to pump sewage effluent to the Institute lagoon and said addendum is attached hereto as Exhibit "B."; and WHEREAS, said Exhibit "B" requires an agreement to be executed between Company and Institute; and NOW THEREFORE, Company and Institute agree as follows: I. Recitations as to Current Volume and Usage A. The present volume of sewage effluent delivered to Company is approximately 15,000,000 gallons per day averaged over the entire year. As the city grows, this volume is expected to increase proportionately. B. Under the contract and addendum attached as Exhibit "A" and Exhibit "B" the City may divert sewage effluent for its own use or for industrial purposes at any time and thereby limit the volume of effluent available to Company or Institute. C. It is contemplated that there is a sufficient volume of sewage effluent to satisfy the requirements of Institute for the 4,000 acres and the agricultural needs of Company. II. Amount of Sewage Effluent to be Pumped to Institute Lagoons Company agrees to furnish to Institute the following sewage effluent to be used only for agricultural or research purposes: A. The total effluent available to Company and Institute shall be divided 50% to Company and 50% to Institute. B. To the extent Company has excess effluent from its 50% over and above its needs for its own use or for service to others, then Institute additionally agrees to accept all such excess up to its maximum pipeline capacity. C. To the extent that Institute has an excess from its 50% over and above its needs, then Company shall have the right to such excess to meet its needs for its own use or service to others. D. J. Frank Gray, or his successor,"as Agent for Company, shall also be appointed and designated by Institute, Hancock, and L-MIC-as the person to advise the city of the percentage of effluent to be: pumped to the Institute lagoons and to the Company lagoons. From time to time and at least a-hnually Institute shall submit in-:'writing to Frank Gray an estimate of its requirements of effluent for research purposes. In no event shall Frank Gray or his successor have any liability to Institute or Company for the volume of effluent actually pumped by City to the Institute lagoons or to the Company lagoons, except for willful. fraud or capricious acts. E:.:-. Institute_ agrees to pair- a reasonable service charge to Company for all sewage- effluent which is used or disposed of on the 4,000 acre tract-, by any firm, person, association, partnership, o x or corporation, including Hancock, LCCIC and Institute, whether C"" for agricultural or research purposes provided+ howeverf neither EPA nor Institute will be obligated to pay any service charge for m sewage effluent used in any particular year for intensive research Cv on any of the 5% of the 4,000 acre tract designated and used in that.., year for intensive research and not for agricultural purposes. 2 . 'VOL" 702 PAGE 581 von" 702 Par,- 582 The amount of this service charge shall be $21.00 per year per acre of land to be used for agricultural purposes for the calendar years 1981, 1982, and 1983. Said service charge is to.. be paid in advance in January of each calendar year and shall o be based upon the total acreage to be used for agricultural purposes during said year. The service charge is paid for the 3E right to use the sewage effluent and is therefore fully accrued m and non-refundable, even if no sewage effluent is actually used by a particular tract or farmer. It is anticipated that the pipeline to the 4,000 acres will be completed during the first part of 1981, and therefore during this year the $21.00 per acre shall be calculated on a pro -rata basis according to the percentage of months remaining in the year after the effluent is available and shall be paid in December, 1981. The amount to be paid as service charge shall be renegotiated every 3 years .during the existence of this contract. During the last 3 months of 1983 the parties will negotiate and agree upon the amount of service charge to be paid for the calendar years 1984, 1985, and 1986. During the existence of this contract the same procedure shall be followed during the last 3 months of _each 3 -year term for the following 3 years, The price to be negotiated shall be based upon the current fair market value of such use -of effluent during the next 3 years; provided, however, during the existence of this contract the amount of this service charge shall never be less than $21.00 per year per acre of land to be used for agricultural purposes. All service charge paid by any party for effluent used or disposed on said 4,000 acres shall alraays be paid to Company, and, no other party shall claim or collect any additional service charge. In the event the amount of the service charge cannot be agreed upon by the parties, the issue of the fair market value.shall be submitted to arbiters as hereinafter provided, 3 f F. Institute agrees to defend and hold harmless J. Frank Gray; the Estate of Lily Wilkins Gray, Deceased; and Company from any claim or claims arising out of the use, transportation, or storage of the sewage effluent from and after the time it is placed in the Institute pipelines. III. Contract between City and Company This agreement is subordinate to and specifically subject to all the terms and conditions set forth in Exhibit "A" and Exhibit "B", which provide, among other things: (1) The City's right to use at no cost for its purposes during any calendar year the volume of sewage effluent specified in paragraph 2 of Exhibit B. (2) The City's right to sell and deliver to others any sewage effluent for industrial purposes and the right to use for its own purposes sewage effluent in excess of the volume set out in the immediately preceding paragraph (paragraph 2 of Exhibit B; paragraph VIII 2, Exhibit A), but said right is subject to payment of service charge (referred to as royalty in Exhibit A) to Company by City. In this respect Institute understands that Company shall 4M C= be solely entitled to any and all such payments and that neither, Institute nor any other party shall ever be entitled to or claim U, any such payments. M (3) Notwithstanding any agreement herein between Company and ga, IND Institute, City has the absolute right when necessary for the com- Cal plete disposal of the sewage effluent at any point in time, to pump any amount of sewage effluent to either Company's lagoons or lagoons under control of Institute. Company and Institute both agree to take all such sewage effluent under such circumstances. (4) Company's right to deliver sewage effluent to other entities as provided in Article X 1 of Exhibit "A". In this respect, Institute agrees that Company shall be solely entitled 4 . 702 PAGE 583 VOL 1 702 PALL 584 to any and all such payments and that neither Institute nor any other party shall ever be entitled to or claim any such payment. (5) This contract is specifically conditioned upon Company's being able to enter into a contract similar to that attached hereto as Exhibit "B". o� 0 c x (6) The term of this agreement shall run contemporaneous U1 with and expire or terminate at the same time as Exhibit "A". IV. rM a F� Contract Runs with Land co It is understood that Institute subleases approximately 4,000 acres from LCCIC, which in turn leases the property from J.E. Hancock. It is also understood that this 4,000 acres is to be used for the disposition of the sewage effluent diverted to Wilson. Accordingly, LCCIC and Hancock specifically agree to all the terms and conditions herein as if their names were inserted every place the Institute's name appears in this agreement. In the event the Institute, LCCIC, or other party in possession of the property fail to perform the obligations of this.contract, then and in that event, Hancock and LCCIC fully agree jointly and severally to be bound by this contract and to accept and dispose on said 4,000 acres all water to be diverted to the Institute lagoon herein and to pay the service charges as herein specified. The covenants and obligations of this agreement, so long as it exists, shall be considered covenants running with the land, and any sale, assignment, lease, conveyance or other transfer of all or any portion of the lands shall be subject to the obligations, covenants, and agreements of this contract, and any purchaser, assignee, lessee, or other transferee of all or any portion of the lands shall be required to assume and perform to the extent necessary those obligations, covenants and agreement of the Institute, LCCIC, and/or Hancock hereunder. 5 V. General A. Nuisance. Institute agrees to properly distribute such effluent at its expense onto the lands owned by Hancock, which lands have been subleased to Institute as shown by the sublease attached hereto as Exhibit "C". It is further agreed that when necessary, due to extended wet or inclement weather, or any other reason, Institute may, in order to comply with its obligations hereunder, provide emergency storage facilities at its own cost and expense, and does hereby covenant with Company to exercise care to prevent such effluent from draining onto lands not owned or controlled by Institute 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. Institute does further covenant with Company to handle, distribute and/or store and to otherwise dispose of such sewage effluent upon such lands 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 constitute 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 federal, state, and local health regulations, whether now or hereafter established. Institute, LCCIC, and Hancock, jointly and severally, further C'n" agree that, upon receipt of written notice, authorized by any Gi governing body, that the sewage effluent disposal is operating as a nuisance in violation of said federal, state, or local health regu- 1 lations, to correct and abate such condition in a reasonable time. B. Specific Performance. The parties hereby declare that it is impossible to measure in money the damages which will accrue to a party hereto by reason of a failure to perform any of the 6 FVOI1702 FAc, 585 VOL1 7oz PAGE 586 obligations under this agreement. Therefore, if any party hereto shall institute any action or proceeding to enforce the provisions hereof, any party or person against whom such action or proceeding is brought hereby waives the claim or defense therein that the cc 0 0 party instituting such action or proceeding has an adequate remedy at law, and such party or person shall not urge in any such action Gs CZ) or proceeding the claim or defense that such a remedy at law exists.; m C. Delivery or Disposal of Effluent to Other Parties. With the written consent of Company, which consent shall not be unrea- GO sonably withheld, Institute may also dispose of or deliver sewage effluent for agricultural purposes onto lands other than the 4,000 acres described in Exhibit "C". Such delivery or disposal shall be by written agreement between Institute and the person or entity to whom the effluent is delivered. This written agreement shall provide that it subject to the terms - and conditions of this contract and shall provide for a service charge to be paid annually in advance for the use or disposal of said effluent; provided, however, that said charges shall never be less than $21.00 per acre per year. All such charges to be paid to Institute shall also be paid by Institute to Company, and no person or entity shall ever claim or collect additional charges. r Immediately upon the execution of any such contract, Institute shall pay to Company all such charges contracted to be paid to finstitute during the first year, and thereafter Institute shall be liable and responsible to pay Company all such charges as they accrue to be paid to Institute whether or not Institute ever collects said charges from said person.or entity. D. Arbitration. If arbitration i.s required to establish the fair market value of the services for the disposal of sewage effluent, then each party shall name and appoint a person (one) as an arbiter on its part, and thereupon the two arbiters who are appointed shall have authority to appoint a third arbiter; but if they shall fail 7 0 to do so 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 within ten (10) days, then to any other district judge residing in said county, for the appoint- ment 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 fair market value, 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 nova. E. 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 0 x performance of any provision hereof, or happening of unforeseen U1 acts, misfortune or casualty whereby performance hereunder is C=) delayed or prevented, which performance is prevented by such cause; provided, however, that the party so affected will use its best C efforts to remedy the situation. F. Not Assignable. This contract may not be assigned, sublet, or assumed without the expressed written consent of Company. G. Notice. Any notice required to be given Institute in writing shall be sufficient if by certified mail to the following address: LCC Institute of Water Research 5601 19th Street Lubbock, Texas 79407 8 VOL 1702 PACE 587 VOL 1 702 PAGE 588 Any notice required to be given Company in writing shall be suffi- cient if by certified mail to the following addresses: Standefer & Gray,.Inc. and J. E. Hancock c/o McWhorter, Cobb & Johnson c/o Norton Baker 1502 Avenue Q 2112 Indiana Lubbock, Texas 79401 Lubbock, Texas H. Contingent upon Construction of Pipeline. This contract is contingent upon the pipeline's being constructed to the 4,000 acre tract at Wilson, Texas. m I. Release of Hancock. The personal liability of J. E. Hancock x and wife, Eileen Hancock, and their estates under this contract N7 C -P shall pass to.their successors in interest in all or any part of the ownership of said 4,000 acres., and they shall have no furtherr" personal liability if and when they have no further interest in CD said 4,000 acres. J. Rights on Termination. In the event the contract between City and Company (Exhibit A) is terminated and Institute continues to have access to said sewage effluent, then. Institute agrees to con- tinue to divide the available effluent with Company on a 50/50 basis for as long -as it has access to said effluent. THIS AGREEMENT, executed in multiple originals, is binding upon the respective successors, executors, and assigns of the parties t hereto ktty� STANDEFER & GRAY, INC if Aty •t �e�" By: 61J, rank Gra , Pres " ent ` ? B ry Potts, Secretary LCC INSTITUTE WATER RESEARCH LUBBOCK CHRISTIAN COLLEGE INVESTMEN97 CORP RATION By: . Hancock Eileen Hancock 9 THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, in and for said County and State, on this day personally -appeared J. FRANK GRAY, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said STANDEFER & GRAY, INC., a Texas corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed, and in the capacity therein stated. �s {{515.{il1 GIVEN U MY HAND AND SEAL OF OFFICE this day of 1980, w tip6t pfiky Public in and for A bock County, Texas Jeal THE STATE OF TEXAS § S COUNTY OF LUBBOCK S BEFORE ME, the undersigned authority, an4 f County and State, on this day personally appeare known to .e me to be the person and officer whose nais subs abed to the foregoing instrument and acknowledged to me that the same was the act of the said LCC INSTITUTE OF WATER RESEARCH, a corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed, and in the capacity therein stated, ,LQ :a G ,GIVEN DER MY HAND AND SEAL OF OFFICE this day of a�980, . ?rJ err Nota y Publi in and or Sial y ,u{ Lubbock Count Texas THE STATE OF TEXAS COUNTY OF LUBBOCK § 0 BEFORE ME, the undersigned authority, i,? nd. fops/;R_ q/ County M and State, on this day personally appeare:se&nVaeYs&4s7t_)scribed 101 known to me to be the person and officer to the foregoing instrument and acknowledged to me that the same was the act of the said LCG INVESTMENT CORPORATION,`%a'Texas rn corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed, C. -D and in the capacity therein stated, 4J •€�''!°,=' GIVEN DER MX HAND AND SEAL OF OFFICE this day of 1980. Not ry Publ c in and f o •, y j,��M TM Sea Lubbock County, Texas , 10 VOL 1702 PAGE 589 � VOL 702 PAc, 599 THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, in and for said County and State, on this day personally appeared J. E. HANCOCK, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. d GIVEN DER MY HAND AND SEAL OF OFFICE this l— day of 1980. g s y s iv rr rr W1 learNota y Public in and fo p f Lubbock County, Texas -o R rn f'i1 k < e s„ r 77-77 CN 1EE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, in and for said County and State, on this day personally appeared EILEEN HANCOCK, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed. GIVEN UP ER MY HAND AND SEAL OF OFFICE this day of 1980. p�'"yiy v� djti fV `r Q,Jk Not ry Pu lic in an o Lubbock County, Texas i,� 11 LEASE AGREEMENT THt STATE OF TEXAS' X ;- X KNOW ALL MEN BY.THESE PRESENTS: COUNTY OF LUBBOCK X THIS CONTRACT made this day of d` , 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. WI-TNESSETH-THAT:- That the CITY'and COMPANY hereby mutually agree that for and in consideration of the extension 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 A6 40.•r. at the date hereof- aindending 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 hun- dred seventy (470) acres. of land, described as follows:. o x Being all of Section 1, Block B, Lubbock County, Texas, except the areas' used for highway purposes and except clSl • that part of 'said Section 1 owned by J. Frank Gray and Wylie Hudman; : and the Southwest One -Fourth (SST 1/4) of Section 2, Block B, Lubbock County, Texas, except that m portion thereof containing about fifty-three (53) acres C lying North of the Fart Worth & Denver Railway Company right of way; W g y; 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. EXHIBIT "A" TO SEWAGE �FLUENT "SUPPLY CONTRACT VOL I�� PAGE 591 ' I r VOL 1702 -PACE592-. I.l The pu'rposes for which the lands herein are leased isdeclared 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 maj be placed in cultivation by COMPANY and it is agreed that $1,4.10.00 pez year is the agreed annual rental to be paid to CITY by'COMPANY.here under. All rentals shall be'payable on the'first day of January of g each year, beginning January 1,,1969. Any installment of rental not., paid at the'due date hereof, shall bear interest from said due date .3 until paid, at the rate 'of eight per. cent (8,%) per annum. If COMPANY."j 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 agree- moment. ARTICLE II.- II.1 I.t is understood that the.City of Lubbock's Sewage Treatment P1i 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 main- . . 'taining 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 pl'a constructed in lieu of this plant into. the 'existing earthen storage reservoirs now presently supplied from the 'existing plant at the expen OIL tae City, less and .except such parts or portion ofeffluent that--. ti .0 the City may sell to*industry and other recipients (specifically excluding sales of effluent for agriculture purposes) and that effluen t1h is a City may use *for its own purposes as hereinafter provided. Sew- age effluent produced at sewage treatment plants at 'location's more-. than 5280 feet from the Northwest corner of Section 1, Block B. is ' srecifically excluded from this contract.- The'City agrees no indus- Page 2. c trial users of effluent supplied from the plants in the Northwest corner of Section 11 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 reservoir which may by agreement of the parties hereto be 'constructed in the futur And the COMPANY further agrees to properly distribute such effluent at.,. . its expense onto the lands herein leased and the 'lands now owned by J. Frank Grey and Wylie Rudman, which .lands have been leased to COMPANY 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 emer- gency 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 'owner or owner.s :of such .land given in writing, which permitted by the shall be"subject to all of the terms,- conditions and covenants containe in this Agreement..: .COMP ANY does further. covenant with CITY to handle, distribute 'and/or store and to. otherwise dispose of such sewage .effluen upon such lands --as aforesaid including the lands covered by said Lease, or under control of CITY in such manner as not to substantially increaE 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 constitui is placed on said lands and to keel a nuisance, when and after the same .;•.' and maintain all premises in such condition as to conform with all Stat and local health'regulations, whether now or hereafter. established by State law or, promulgated by the State Department of Health,.providedj. ever, that such effluent is delivered. to the reservoirs herein referre to in conformity with such regulations and laws. - II.2 COMPANY further agrees that upon receipt of written notice,. . • 4 of Lubbock that COMPANY t - = authorized by _the governing body of the City is operating due to its negligence.a nuisance in violation of said State or local health regulations, to correct and'abate such condi- C .' tion in a reasonable time and to do such, things as may be - C V0 7 PA . Page 3. - �., • / VOL 1 702 -PAC; 594 pointed, out in. writing necessary to correct and abate such .condition. If. such effluent should drain into the Yellowhouse Canyon through negligence onithe 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 .con- dition without-abatement for an unreasonable time after.-notice in ,;_• writing to COMPANY1. or if such sews e•effluent should be handled distributed or stored in such a manner as to•increase'the density Q.D. • of - the odors- emitting therefrom or spreading so as to cause other C 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 con • ' tract.. ARTICLE -III: -III.•1 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 establishment and en- . largement of. the •:City. Dump ground for the disposal of trash-.-and- gar--.,.•.:-'., ' . bage hauled from the .City-, and to excavate where -necessary iri the..- -• • :�•:�'. - - ... ' - _ ' opinion of'CITY to provide amore 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.'' i '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,. Aedelaed and terraced in the 'same ":manner.. as - that • land so- taken for additional dump.-ground hereunder. and- CITY' will•- •i ' . • •. •• 7 . . •. - _• ..- - - . :•�• Page '4 '. '' also make effluent available at the highest point on such substituted -land.. - • ARTICLE IV. ' IV.1 COMPANY by these prsents 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 CON.PANY shall not, without the written. consent of CITY,• �...' assign this lease or sublease 'any part of the 'above leased land and . . M should said COMPANY, :attempt to assign ' this -lease or. sublease 'any or all of the above. described land, then and in that event, this con- tract -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 termin- ation of this 'lease contract to remove • from. the 'above 'described City..: lands,'. any improvements that may have been placed thereon by it, in- cluding fence's,.except outside boundary ferices, . the. two fences pep= • W.. •. crating the cultivated lands from the canyon - or pasture lands, and_ ' fencesaround the •sewage plant. 6:) 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 irz;the manner stated, CITY shall have the -..I right to enter into'said premises and take. possession 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:: Vit'_ _ ... .,•' +:'" .r •�`.;"��•.. .. _ Page 5. -- -5 5 "VOL 702. PAGc • VOL 1702. PAG. 596 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.. o of City sewage effluent-in order to further. safeguard the health •. of its inhabitants, by. providing for the .above method 'of effluentCA disposal and care,. and that .the leasing of such aand by the CITY •.''' , • m to COMPANY for agricultural purposes is merely incidental to. the 9,u, CITY Is ownership and this lease is. made primarily for the purpose of affording -additional facilities as hereinafterdefined and man- agement of effluent emitting 'from the City.'s sewage disposal sys- tem and the consideration herein agreed to-be paid by CITY as Lessor herein, is in consideration of the services. to be performed by CO.MPANY,•. 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 i-n this contract.. V.2 .. ' 'This Lease and Contract is .executed subject to all of thee. ,• :. .rights 'of. the City. of Lubbock which it has in said lands, and. -sub-y ject to the :.terms of any oil. and gas -leases inlexistence, or to be •. executed I by. the 'City. of • Lubbock affecting such lands. V.3 It 'is further. agreed' that if 'the .effluent is delivered .to. i. the reservoirs-in such condition that the maintenance of said water i 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 3t •is spread -or make it impractical to use as irrigation for. agricultural products or toxic to livestock,•;then, i= • in either. event; COMPANY may terminate .this contract after. giving Page '6. 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 r-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 con-'.-tract,- CITY '.shrill notify COMPANY in writing of the facts relied upon. as constituting a breach hereof and COMPANY, if in default, shall have a reasonable 'time,not exceeding one hundred fifty (150) -days- after daysafter the receipt of such -notice,.,,in which 'to comply with the obli- • gation*s hereunde: -ad they may have been pointed out in writing as.::= . .aforesaid:. •• ARTICLE VII. VIh.1 Wl rens,'' 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 succi depreci- ation, the CITY. will pay to the. COMPANY,• its.- successors-14 assigns, a ` sum equal . to one-halt (1/2•) of thd remaining cost thereof; provided such pipe 'is in a good state of repair acid COMPANY has filed writte.,m;• statement with :the City. Engineering Department sha�wng actual cost o . of pipe 'and its. -location. 4 = :.�•- . VII.2 . •'It is •further*. agreed that CITY reserves. thd right ;to con- struct necessary utility. lines and pipelines:; in, above. and below P the. ground at any • location on CITY owned, land, provided • it does not ,? •.'.4 ' _ . _ • - page '.7,.VOL _L7®2. PAGP ` • . ' VOL '- ,• _ 702 mc:598, interfere with the orderly operation by COMPANY of its effluent dis posal system.and subject to paying reasonable crop damages to. COMPANY, if any occurs. CITY agrees to furnish at commercial rites..... and COMPANY. agrees to use and timely pay for electric power. used ' and to be used in connection therewith.. VII.3 Itis agreed the CITY will at its.own expense maintain four (Q) eighteen-inch .(1.8 in.) outlets -in the lagoon reservoir consisti:W1.. of approximately twenty-three .(23)- acres.,' and CITY. will provide and maintain at its own cost two .(2). pumps -capable of pumping thirty U1. five hundred (3.1*500)., gallons of effluent per. minute at a head of G7 twenty-five .(25) feet.: In the maintenancef ofthe two. pumps, the. •• •CITY. will keep installed and maintained the -pipe from the reservoir Q to the intake side of the pumps 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 - the .event of any default by COMPANY. or its. tenants.,* agents, . servants or authorized assigns, the right to take effluent as provided in tl�ls paragraph 'shall cease and terminate.. VII A 'it is further agreed that in -the eventthe CITY ever abandons the use of the-twenty-three (23) acre reservoir constructed by the' i 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 VIII,l It is- mutually conceded. and agreed by the parties hereto that COMPANY has for-many years contracted for and has satisfactor- ily 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 • _ ' , txaatment, plants.i • The CITY recognizes: that as, . a result of this . :.J :. • .. ' Page • 8 . L, " � 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 and made 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 i� sell and deliver to any other firm, corporation, partnership, associ- ation or 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 term of this contract and upon the following terms, provisions, conditions and payments to COMPANY, • to -Wit: VIII.3 RATE AND PAYMENT For and and in consideration of the sewage effluent water _ g to be sold by CITY under the terms of any contract, executed with Southwestern Public Service Company, Amarillo, Texas, or any other person, firm, partnership, corporation or association, herein agreed, a Cn to for industrial purposes, or for effluent -diverted by the CITY for its own use and benefit,,as contemplated by.this contract, the Ul rate per one thousand (1,000) gallons of effluent so sold or used TZ rn is to be paid each month by CITY to COMPANY as follows: ►tom A. CITY agrees to pay COMPANY an amount equal to one cent (10) per one thousand (1,000) gallons of constant flow of City effluent as hereinafter defined and two and one-half cents (2 1/20) per one thousand (1,000) gal - Ions of demand flow as hereinafter defined. Page 9 . VOL'1702PACS 599 •-. ._ _ r VOL 0`2 PAn, 600 • 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 Lief fined herein as the smallest number of gallons of effluent delivered to all recipients, including the City of Lubbock,. but ex- . cluding COMPANY, during any one week in a contract .year. D. "A CONTRACT. 'YEAR". shall be defined herein • as each success- ive 'twelve-month 'period beginning on the effective date • of this contract and ending on• each successive `anniver= .- r 'sary date. during the term hereof. E.. "DEMAND -FLOW" for purposes of this agreement shall be • defined as .all effluerit furnished to ' all recipients including tie .City of Lubbock,. ;excluding the COMPANY, in excess: of the constant flow hereinabove defined.:.: VIIIA :: All payments. due • COMPANY hereunder` shall- be finally - cal- culated' as of the and of each .contract .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 payments 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 esti- = mation.will be;made.by. the parties of the probable constant flow and the probable- 'demand f low, taking into consideration the projected usage''by industriah•or other. recipients.,, including CITY,.; of.,effluent w - • .. .._._ _ � .-;-.:, .. .: 'Page 10. • • � - ,. ,.. .,• .. and an annual payment will be projected- 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 con Stant. flow (as herein defined) and demand flow .(as herein defined) -cf 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.: If it be determined that the estimated monthly_ payments :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) hays: 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 ad- .: justed by. subtracting .such 'overpayment from the 'first -monthly pay ments due COMPANY during the following-contract year.'. ' ARTICLE IX.l'' MEASURING EQUIPMENT-rAVAILABILITY OF CITY RECORDS TO COMPANY:. It shall be -the responsibility of CITY at its. expense to install and maintain a controlisystem for the purpose of making S 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 measure- CLAD ments for effluerit metered as herein provided shall be one thousand gallons (1,000••gal:) of•water,,U. S. Standard Liquid Measure.' ComPANY shall have acpess -at--,all 'times to such metering equipment, but the• . reading;calibration;and adjustment of the meters -shall be done' ' Page 11.' 61 VOL �.7 . PAGc VOL 1702 PAG only by employees or agents of the CITY... COMPANY will be notifie&" when CITY plans to test or calibrate any of its meters so that ' ..COMPANY may be represented if it so desires. The -'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 information as .it may request fromthe .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 suchrn .. 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 percent- age of the error is ascertainable by calibration tests or mathemati- cal calculations -or by estimating the quantity -of effluent delivered -. during preceding periods under similar conditions when the meter was. registering accurately. X.2 . CITY agrees to furnish unto COMPANY. three'(3) outlets on* the Southwestern Public Service Company pipeline:to be.cons tructed from the City Sewage Disposal.Plant to the 'Southwestern Public Service Company facilitiy,.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 contracts to secure 'authority with'purchasers.of effluent : Page '12.: ,. 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 contracts 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 corporation for agricultural use. Such sale shall be subject to all of the otter 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. ARTICLE XI. XI.l If for any reason CITY fails 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 Hudman and the City of Lubbock on even date herewith shall, x at the option of J. Frank Gray and Wylie Hudman terminate if such Cad remains delinquent and unpaid after sixty � payment q P y (b0} days from mailing notice of such delinquency, without waiving any remedy at law or in equity. = CA Cat ARTICLE XII. . _ XII.l TERM OF CONTRACT PAGF•693 Notwithstanding any other provisions •of this contract, the _ Page 13. .� VOL 1702 PAGE 604 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 C�P. •.. registered or certified mail with return receipt requested. G r . rn ARTICLE XIII.; XIII.1 GENERAL PROVISIONS Cn It is agreed that all of the terms,- provisions and conditions of this contract .fully supersede and cancel all of the terms, condi- tions 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 determination of_eithet. 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 giveri,-if mailed, postage prepaid, Certified Mail, Return Receipt Requested, to the Office -of the City. Secretary of the 'City of Lubbock,. on behalf of the 'CITY,. and to. COMPANY at Box 711, Lubbock, Texas.' XIII.4 In the event CITY should acquire title to the Gray and •'. Hudman lands,.this contract shall terminate... XIII.S If any provision of this agreement be invalid under exist- ing law or would operate 'under. existing law to render this agreement unenforceable, then such provision, insofar as it is necessary to render this agreement enforceable under existing law, shall be deemed to be deleted herefrom and this agreement in -all other respects shall remain iA full force and effect,.subject to specific options granted to Company hereinabove.. • ..-Page-14. 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 officerr agent or agency purporting to act under duly constituted authority. or any court order, wars, floods, riots, fires, storms, strikes',- lookouts, interruptions of transportation, freight embargos -or failures,, exhaustion or unavail- ' ability on the open market or delays in delivery of material, equip-. ment or services necessary to the .performance of any provision here- of.. 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. S6, affected, will use its best 'efforts, toremedy the 'situation, ARTICLE• XIV. This agreement is binding.upon the: respective'successors, executors and assigns of the parties hereto.. CITY OF L \ OCK - ATTEST : a x By IlaLG _ W. D. Rogers, , r. Mayor C ty. Secret STANDEFER 4 'GRAY, INC.' ►A By Pres dent Attest:. 67 Sq_crets&y • Page 15. r nn • UVOL� 702 PAGE 605 59 THE STATE OF TEXAS X COUNTY OF LUBBOCK X VOL .702 PAC: 806 SUPPLEMENTAL CONTRACT KNOW ALL MEN BY THESE PRESENTS: THIS CONTRACT is made and entered into this day of March, 1978, 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 g 0 x heretofo•re duly authorized. 01 W I T N E S S E T H TE Heretofore, on the lst day of April, 1968, the Parties 9:y- 00 hereto entered into that certain Lease Agreement, a copy of which is attached hereto and marked "Exhibit A" for reference. Said attached Lease Agreement has a primary term, as set forth in Article XII. 1 thereof, which terminates on December 31, 1990, or subsequent thereto after five (5) years notice in writing to terminate has been given by either Party. And, it is the desire of the Parties hereto to'extend the primary term of such Contract dated April 1, 1968, as hereinafter provided. NOW THEREFORE, in consideration of the mutual agreements and the considerations of the terms, conditions and covenants to be kept, done and•performed by the Parties -hereto, the Parties do mutually agree and contract that Article XII.1. of Exhibit A, is hereby amended to read as follows: ARTICLE XII.1 TERM OF CONTRACT Notwithstanding any other provision of this Contract, the term of this Contract is from the date set forth hereinabove until December 31, 1998, and thereafter until a date five years (5 yrs.) subsequent to written notice of termination of this Contract by either Party. A five year (5 yr.) termination notice may be given by either Party to the other, at any time subsequent to December 31, '.S93. Noticr is to be trans pitted by registered or certified mail with return receipt requested. PROVIDED, HOWEVER, that the above Amendment is conditioned upon the following two (2) contingencies: (A) That a sewage effluent pipeline contemplated to be constructed with funds derived from a grant from a U. S. Governmental Agency and extending from the present City of Lubbock sewage disposal system to the North boundary line of the proposed research and develop- ment tract of land consisting of approximately four thousand (4,000i acres lying immediately North of Wilson, Lynn County, Texas, is constructed; . (B) That Mr. and Mrs. J. E. Hancock, their heirs or assigns, have executed a Contract whereby said four thousand (4,000.) acre tract referred to in Paragraph (A) above, shall be obligated to and used for the purpose of environmental and crop production research and disposal of sewage effluent thereon. WITNESS OUR HANDS and seal of office the date first herein- above written. ATTEST: City Secretary ATTEST: i r Secretary THE CITY OF LUBBOCK By: ROY BASS, Mayor 0 0 x m STANDEFER-& GRAY, INC. Cc -2- 'J. FRANK GRAY, Prps.ident f VOL L 702 PAGE 607 1� KJ:th ( 1 P BE 1T RESOD ,�D BY THE CITY COUNCIL OF THE CITY OF i 1,)BBOCK: VOL 10 7Q2 PAGE D$ ' THAT the MAYOR of the CITY OF LUBBOCK, BE and is here y authorized and directed to execute a Supplemental Contract between the CITY OF LUBBOCK and STANDEFER & GRAY, INC., attached herewith which shall be spread upon the Minutes of the Council and as spread upon the Minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 23 day of March 1978 ail ROY BASS MAYOR o c ATTEST: C.;1 Treva Phillips, ,City Secr Lary -Treasurer cil APPROVED AS TO FORM: CD Fred O. Senter, Jr., City Attor y ADDENDUM TO LEASE AGREEMENT THE STATE OF TEXAS § COUNTY OF LUBBOCK ¢ This addendum is entered into .on this the 14V-6 day of , 1980, by and between the City of Lubbock, a home rule municipal corporation, hereinafter referred to as City, and Standefer and Gray Inc., a corporation existing under the laws of the State of Texas, with its.principal offices at Lubbock, Texas, hereinafter called Company. WITNESSETH: WHEREAS,. the City and Company did enter into a lease agreement on the 1st day of May 1968, as amended, a copy of said agreement as amended being attached hereto as Exhibit "A"; and WHEREAS, the agreement attached as Exhibit "A" did provide that the City would pump all of its sewage effluent to lands owned or under the control of Company; and WHEREAS, Company and.City do recognize that it would be advantageous for additional lands.to.be provided for the purposes of properly handling the sewage effluent delivered by City to Company; and WHEREAS, it would-be difficult for Company to provide additional land deemed necessary under the premises at this time; and WHEREAS, the City and Company have been approached by the L.C.C. Institute of Water Research with an offer to provide an additional discharge site for sewage effluent; and WHEREAS, both City and Company would benefit by having an additional dis- charge site: NOW THEREFORE THE CITY AND COMPANY AGREE AS FOLLOWS: av 1. That notwithstanding any provision contained in the lease agreement x between City and Company, which agreement is attached hereto as Exhibit "A", the Company does hereby grant to City the right to pump sewage effluent to a discharge site located in Lynn County, Texas, said site to be operated by the L.C.C. Institute of Water Research and hereinafter referredto as Institute Lagoon. 2. The City shall meter the volume of sewage effluent, which City is instructed under paragraph 8 to pump to the Institute Lagoons. The total volume of such effluent pumped in any calendar year to the Institute Lagoons F VOL 1 702 PAG,, 6A 9 EXHIBIT "B" TO SEWAGE EFFLUENT SUPPLY CONTRACT r VOL 1 702 PAGE 610 shall entitle the City during the immediately following year to.use an equal volume of sewage effluent (not to exceed 7,200,000 gallons per day) for its own purposes without obligation to pay Company any payments of money. It is under- stood by the parties hereto that sewage.;effluent produced by the sewage treat- ment plant or plants, at locations more than 5,280 feet from the Northwest o _ r, corner of Section 1, Block B, is specifically excluded from the addendum. �a 3. The Company further releases the City from any claim for payment of p money for any sewage effluent City may pump to the Institute Lagoon sites in rn F� Lynn County, Texas. CA 4. That Company does hereby agree that it will use the sewage effluent discharged by -City onto the lands operated by Company in such a manner as to comply with all Federal or State laws or regulations and City agrees to deliver sewage effluent to Company's reservoir in conformity with such laws and regu- lations. 5. That Company will with all dispatch commence negotiation with L.C.C. Institute of Water Research leading to an execution of a contractual agreement -between them which will specifically cover the following points: (a) The Agreement shall determine the percentage of sewage effluent which the Company shall be entitled to have pumped to its lands and the per- centage of sewage effluent that shall be pumped to land in Lynn County to be used by. L.C.C. Institute of Water Research. (b) The agreement shall designate one party to advise City as to what percentage of sewage effluent shall be pumped to either the properties operated by Company or to the Lynn County property upon which L.C.C. Institute of Water Research is conducting its activities. (c) The agreement shall recognize the City's right to use for its pur- poses any sewage effluent at no cost to City (see paragraph 2 of this agreement). (d) The agreement shall recognize the City's right to sell and deliver to others such sewage effluent as outlined in the lease agreement between City and Company paragraph VIII 2 (see Exhibit "A" attached hereto) but such right is subject to payment by City to Company as provided in par- agrapli VIII 3 of the lease agreement above mentioned. The agreement shall further contain a provision that only Company is entitled to payment as above set out and L.C.C. Institute of Water Research shall never be entitled to any such payments and will make no claim for same. (e) The agreement shall further recognize that the City is entitled to dispose of all sewage effluent upon the lands owned or controlled by Company or land being controlled, owned or used by L.C.C. Institute of Water Research and notwithstanding*`any other provisions of the agreement between Company and L.C.C. Institute of'Water Research. City will have the absolute right to pump to either the Company's sites or sites under control of L.C.C. Institute of Water Research, any amount of sewage effluent necessary to provide'for complete disposal of City's sewage .effluent at any point in time. Company and L.C.C. Institute of Water Research will further agree to take all such sewage effluent under such circumstances. 6. Company will file an executed copy of the agreement provided for in paragraph 5 above with the City Secretary within a reasonable period of time after the execution of this agreement. 7. Except as altered or changed by this Addendum Agreement the original lease agreement as amended in March, 1978, shall remain in effect between the parties hereto in accordance with the terms and conditions of said original lease agreement attached hereto as Exhibit "A". 8. City agrees to pump the percentages of sewage effluent to the Company properties and to the Institute properties as directed by the individual appoint- ed by Company and Institute, provided, however, should it become necessary to provide for a complete disposal of City's sewage effluent at any point in time, the City shall have the absolute right to pump to either the Company sites or Institute sites. ZK 9. It is understood that Institute, et al, and City will execute a Waste M Water Lease Agreement which provides that in the event of certain defaults by A Institute that City has certain rights to enter upon the 4,000 acre tract and U1 operate same for discharge of effluent. U) City accordingly agrees with Company that, in the event that it is re- quired to enter upon said 4,000 acre tract, and determines to operate same in a manner to produce income therefrom, it will give Company first option to manage and operate said 4,000 acres for the disposal of said effluent. In the event Company elects not to operate said 4,000 acres, then City shall not be obligated to pay the service charge herein provided for disposal r OL 1702 PAGE 611 ' VOL 1702 PA E 612 of the effluent on said 4,000 acres; provided, however, should any party or entity pay a service charge for the use.or disposal of said effluent, said charges shall be paid to Company; provided that City shall have no obligation S in the collection of said charges and shall make no claim against Company for Cn said charges. C= Executed this the #9-d-ayrn of � , 1980. C.J1 THE CIS OF LUBBOCK STANDEFER & GRAY, INC. 9�b- �M 1 ;�Ga ai�w2� THE STATE OF TEXAS § Se7 c /'7- ATTEST: cretary COUNTY OF LUBBOCK § BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared , of STANDEFER and GRAY, INC., a Texas corp ation, known to me to be th person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. S � F l IVEN UNDER MY HAND AND SEAL OF OFFICE, this th&— day o iG= . . y f Utz v ` ^��*►- ear t ie'a Otqky Public in and for u ock County, State of Texas THE STATE OF TEXAS § COUNTY OF LUBBOCK BEFORE HE, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared BILL McALISTER, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as the act and deed of the CITY OF LUBBOCK and 6 a YRR'•for.the purposes and consideration therein expressed and in the capacity urNrrrr f +.`,'fie. •' .. � ''•.'4P 1 ER MY HAND AND SEAL OF OFFICE, this the day of , a 19$r -=i . :: 7l:i i.111S Notary Public in and for Lubbock County, State of Texas rn F� CJA F VOL 1702 PAU s 13 voL 702 PACE fill LEASE AGREEMENT TH2 STATE OF TEXAS X X -,KNOW'.ALL MEN BY THESE PRESENTS: COUNTY OF LUB15OCK X ' : `tel- d,` , • THIS CONTRACT made this day of , 1968, by and between the City of Lubbock, a home rule -municipal corporation of- Lubbock fLubbock County, Texas (hereinafter called "CITY"), and Standefer o x & Gray, Inc., a:corporation existing under the laws of the State of ion CJ1 I 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. • C73 WI T N E S S E T H T H A T — --- — - — — — — — — — — — That the CITY'and COMPANY hereby mutually agree that for and in consideration of the extension of the terms of that certain lease contract dated Apri1.281;.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 E at the date hereof and ending onthe 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 hun dred'seventy (470) acres of, land, described as follows: Being all of Section 1, Block B, Lubbock County, Texas, except .the areas used for highway purposes and except that part of said Section 1 owned by J. Frank Gray and Wylie Hudman; ;, 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 Fqrt 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. 1.1 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 $1,4.10.00 per; year is the agreed annual rental to be paid to. CITY by COMPANY .here under.. All rentals shall be'payable on the first day of January of :Y 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' agree 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 p lant or abandon or discontinue using the present sewage treatment plant and'to construct .and maintain a sewage *reatment plant .of equal - or greater capacity: at another. location in lieu of operating and main- taining the sewage plant constructed or to be constructed in the Northwest corner of Section l,.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 effluerit .that': the City may sell to industry and other recipients (specifically excluding sales of effluent for agriculture purposes) and that effluent City may use *for its own purposes as hereinafter provided. Sew- age ew-a e affluent produced at sewage treatment plants at locations more-.: '. .han 5280 feet from the Northwest corner of Section 1, Block B,• is o s a—ifically excluded from this contract. The City agrees no indus rn Page 2. f VOL 6� PA6: 615 VOL D02 PAGE 616 trial users of effluent supplied 1 rom 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. d And the COMPANY further agrees to properly distribute such effluent at:.,... r-its expense onto the lands herein leased and the lands.now owned by J. C) Frank Gray and Wylie Hudman, which lands have been leased to COMPANY ....'. from said J. Frank Gray and Wylie Hudman as showri by the Lease attached=_ hereto as Exhibit ."A". It is further`agreed'that_when necessary, due' m to extended wet or inclement weather., or any other. reason, the 'COMPANY C" may, in order to comply with its obligations hereunder., ,provide.emer gency 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 manneras 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 tobe used such effluent in such'a manner. as- to constitute a nuisance, when and after the .same is placed: on said lands and to keep'.- and maintain all premises in suchcondition as to conform with all State and local health regulations, whethernow-.or hereafter. established by.the State law .or promulgated by the State Department .of Health,.providedj. hok ever, that such effluent is delivered-to the reservoirs herein referred to in conformity with such regulations and laws. II.2 COMPANY further agrees that upon receipt of written notice,. authorized by the governing body of the City of Lubbock, that COMPANY t is operating due to its negligence a nuisance in violation of said State or local health regulations, to. correct and abate such condi- tion ina reasonable time and to do such'things as may be Page 3. .� c$J. r. pointed out in,writing necessary to correct and abate such -condition..••; If.such effluent should drain into the Yellowhouse Canyon through negligence onithe 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 .con 'dition 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 con- tract.. ARTICLE III.. III . •1 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 'establishment and en- ... largement of. the •:City. Dump ground for the disposal of trash .and. gar- :..` bage hauled from the .City, and to excavate where necessary in thea 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 thd'right to construct housing and living quarters 'sufficient .to accommodate City employees engaged in the . • , . Com. . - .. maintenance 'and operation of the dump grounds,•provided, however, upon the exercise 'of . such :option CITY will',- at its own cost and a CIAexpense,. replace ':to. the :use and benefit .of COMPANY.a like amount �..: o-, land refilled, levelled and terraced in the' -same manner as that . land so taken for additional dump. -ground hereunder.and-CITY.will . Page A. ' • f VOL 1702 PAGE 617 ,WWII 1�l�M �11111� , III�I�� ft VOL 1702 PAGE 618 also make effluent available at -the highest point on such .'Substituted -land. ARTICLE IV. - IV. 1 V. IV.1 COMPANY by these prsents 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. o IV.2 COMPANY shall not, -without the written consent of CITY,. C" .,... assign this lease or sublease 'any part of the 'above leased land and .=- should said COMPANY' attempt to assign-thislease or.sublease any or m. all of the •above. described land, then and in that event, this con- C73 tract -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 surrenderthe possession thereof to 'the' CITY .in - as good condition as when received, ordinary wear and tear excepted.: IV.4. It is agreed that COMPANY shall have the right upon termin- ation of this ' lease contract to remove from . the 'above described City lands, -.any improvements that may have been placed thereon by. it, in- cluding fend&&,•.' except outside boundary fences, .the two fences sep- arating•the cultivated lands from the canyon or pasture lands, and fencesaround the•sewage plant. IV.S - 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 iinthe manner stated, CITY shall have the right to enter into'said premises and take possession thereof without notice or demand; •,except as: herein` provided, and without being guilty.....*.... of trespass and without•. prejudice •..to any otherremedy' the CITY may have:. Page. .5 . ARTICLE V. V.l understood that the above described'.,_ It is mutually agreed and 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 b'e .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 i 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 hereinafter. defined and man- agement of effluent emitting'from the City.'s sewage disposal sys- tem 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.COMPANYin'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 sub . ject to the :.terms of any oil. and gas -leases. ihiexistence, or to be executed i by the '.City. of, Lubbock affecting such .lands . N.3 It is further. agreed that if 'the .ef.fluent is delivered _to.:' the reservoirs -in -such condition that the maintenance of said water• in said reservoirs or the -distribution thereof creates a nuisance = G 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 ' Page '6. . VOLT P'Cr-619� vol 4702 PAGE 6?O 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 wine •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 con- •tract, CITY'shall notify COMPANY in writing of the facts relied upon.rN� MC. as constituting a breach hereof and COMPANY,. if in default, shall, have. a reasonable 'time., not exceeding one hundred fifty (150) days T' ..after the receipt -of such •notice, in .which to comply with the obli= ::.".. gations hereunder as tYiey may have been pointed out in writing as - • -aforesaid: .. - ARTICLE VII. VII,01 :Whereas, - it is -anticipated that COMPANY will install. or- - cause -to be .installed underground pipelines to convey the effluent upon'.lands•undgr 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 percent (5�) per year upon itscosts, and that after applying such depreci .. ation, 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 ofPipe 'and its. location.. VII.2 . -'It is 'further -agreed that CITY. reserves: the right to con- ' struct necessary utility. lines and- pipelines:, in, ,above. and below the ground at any location on CITY owned land, provided -it does not Page .7. MW 0000" ' interfere with. the orderly operation by COMPANY of its effluent dis posal system*.and subject to paying reasonable crop damages to COMPANY, if any occurs CITY agrees to furnish .at commercial rates ; and COMPANY agrees to 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. 44) eighteen-inch .(1.8 In.) outlets. in the lagoon.. reservoir consistin4 *.1---* . . of approximately twenty-three .(2.3) acres.,- and CITY. will provide 'and.' :. maintain at its own cost two .(2)• pumps 'capable 'of pumping thirty five •hundred (34'500.)., gallons of effluent per. minute at a head of twent-five.'.(25) feet.. in the maintenance' of. thetwo. pumps, the.- CITY he. CITY. will•keep installed and maintained the-pipe from the reservoir to the intake,side of the pumps and provide valves at'this point and COMPANY will take .the .effluentfrom 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 Rudman for the purposes of effluent storage, whether at the end,of o the term of this -contract,, 'or if terthereto, thenpreviously theretothen " -contract,,. CITY shall level .the surface of . said reservoir and place 'it in a - .' U1 d. condition suitable for agricultural purposes at CITY',S expense.. ARTICLE VIII -VIII+1 It is.mutually conceded-and agreed by the parties hereto that COMPANY has for many years contracted for and has satisfactor- .1y disposed of all of the.'CITY effluent resulting in a financial benefit to CITY in that the CITY has not been compelled-to construct, r maintain. and operate 'additional Z facilities and sewage disposal and _F treatment. plants The 'CITY recognizes: that as•.a result of -this Page-8. /.1 1 O: r, i ` VOL 1 702 PAGER? 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 and made extensive capital investment upon the lands owned by J. Frank Gray and Wylie Hudman m 0 and upon other lands leased and controlled by said land owners, x in order to adequately dispose of the CITY effluent during wet and C� inclement weather, and particularly during the winter months when y rn such effluent is unsuitable for agricultural purposes. i -"VIII.2 It is mutually agreed by the parties hereto that CITY may air. i sell and deliver to any other firm, corporation, partnership, associ- ation or 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 term 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 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 (1fi) 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) gal- lons of demand flow as hereinafter defined. Page 9.. 101- 1!001 B.- "CONSTANT FLOW" shall be defined herein as -the average-.'* daily flow .of effluent delivered to. all recipients, • including the C�..ty. of Lubbock,. and other. than COMPANY, . •. computed on the 'minimum weekly flow .o£ 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 ex -r'. :. cluding COMPANY,• during any one week .in a contract year. D, "A CONTRACT.'YEAR".shall be .defined herein•as each succe$s- ' ive 'twelve. -month 'period •beg.inning on the effective date of this contract and ending on -each successive:anniver�.. Bary date. during the term hereof. E.. "DEMAND FLOW" for purposes of this agreement shall be defined as. -all effluent furnished to.'all recipients including tkie .City of Lubbock,.•excluding the COMPANY, • in excess of the constant flow hereinabove defined.:. VIIIA All payments.•due .COMPANY hereunder. shall be finally -cal- culated' As of- the .end of each .contract year as' defined above. Provided, h6wevert.such payments shall•be made in twelve (12) equal:. monthly installments'during.such .contract year. The anticipated amount .of the monthly payments 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 Itis G7 understood in this regard that good faith'shall be:exercised by. the 'parties in arriving at .the amount of the monthly .payment. and C due consideration shall be•.given to past'annual payments hereunder;.. it is further agreed that during the first .contract year an .esti- mation.will be made.by the parties of the probable constant flow': and fiche probable' 'demand flow,, -taking into. consideration the projected a P usage'•b'' industrial •nor other. recipients, including CITY, _ of effluent Page 10. C • -lit• l' VOL702 PAGE 64. and, an annual-payment will be projected-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 monthCD Within thirty. (30) days after. termination of each contract-. x year during. the term hereof, appropriate'.calculations based upon metered effluent flow will be made by. the partieshereto as to con-- ' 94 ., '.. Stant. flow (as herein defined) and demand flow .(as herein defined) ...'.446 cE 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.! If it be determined that the estimated monthly payments 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'determiried that the estimated monthly payments theretofore paid COMPANY by CITY exceeded the:calculated payment'.. 'due 'COMPANY as . herein'. provided; then such 'overpayment will be ad- justed by ' subtracting - such 'overpayment from the first monthly pay-. ments -due COMPANY during the following-contract year. ARTICLE 'IX IX.l'' MEASURING EQUIPMENT--AVAILABILITY OF CITY RECORDS TO COMPANY'.' It shall be the responsibility of CITY at its. expense to install and maintain a controllsystem 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 measure- ments for effluent metered as herein provided shall be one thousand.. gallons (1.,0.00 .gal.-) of water, U. S. Standard Liquid Measure. COMPANY.;;; shall have acress,'at'all'times to such metering equipment, but the- reading;.calibration•:and adjustment of the meters shall be done* Page 11.' I- k..'f •10r . I - • 'rte,• L +. f '1 �. E / 1. _ 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 represented if it so' desires. The.- 'CITY shall keep a true record of all meter readings as transcribed from the reports- of eportsof CITY'S employees or agents with respect thereto. Upon written request of COMPANY, the. CITY will give'COMPANY such information as it may request fromthe .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 meteris-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 percent- age of the error is ascertainable by calibration tests or mathemati- cal calculations or by estimating the•quantity of effluent delivered during preceding periods under similar conditions when the meter. was...:,-: registering accurately. IX.2 Y 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 facilitiy, at •locations to be agreed by the parties hereto,• V..:—. m in order to facilitatethe 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 contracts to secure authority with purchasers of effluent. o Page !•.I C.A term of this contract is from the date set forth hereinabove until December 31, 1990,.and thereafter until eitherparty shall give the other party five. years (5. yrs .) notice in writing of its o intention to terminate .the'same.. Notice .to.be transmitted by registered or certified mail with-teturn receipt requested. ARTICLE XIII.; XIII.1 'GENERAL PROVISIONS itis agreed that all of the terms,- provisions and conditions. of this contract .fully supersede and cancel all of the terms,-.condi- tions erms,'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 determination 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 giveri, if mailed:, postage -prepaid, Certified Mail, Return Receipt Requested, to the Office of the City Secretary of the'City of Lubbock,. on behalf of the. CITY, and to COMPANY at Box 711, Lubbock, Texas.. XIII.4. In the event CITY should acquire title'to the Gray and Hudman lands,.this contract shall terminate. XIII.S If any provision of this agreement be invalid under exist- ing law or would operateundet existing law to render this agreement unenforceable, then such'provision,:insofar as it is necessary to render this agreement enforceable under existing law, shall,be deemed to be deleted herefrom and this agreement in -all other respects.shall remain in full force and effect,,subject to specific options granted to Company hereinabove.. ..Page -14. 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 contracts 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 corporation for agricultural use. Stich 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. ARTICLE XI. m XI.1 c 0 . x If for any reason CITY fails to pay unto COMPANY the monthly payments as herein provided, then.CITY hereby agrees that the certain® c water lease contract entered into by and between J. Frank Gray and Wylie Hudman and the City of Lubbock on even date herewith shall, at the option of J. Frank Gray and Wylie Hudman 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 • f T, Notwithstanding any other provisions of this contract, the IND Page 13. - VOL 702 PAGE 698 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:' t . 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 ,- .lookouts , interruptions of transportation, freight embargos-or failures, exhaustion or unavail- C. ability on the-operi market or delays-in delivery of material, equip-.� ment or services necessary to the performance of any provision.'here-. of, or happening of unforeseen acts., misfortune or casualty whereby. Q;_ performance hereunder is delayed or prevented, which performance. is prevented by such cause; provided, however, that .theparty so' affected will use .its best 'efforts, to remedy the 'situation: ARTICLE- XIV. This agreement is binding.upon the res'pective'successors,. executors and assigns.-of the parties hereto.. CITY OF L ` OCK ATTEST: \ •By. LLQ W. D. Rogers, r. Mayor Uty.Secretaty STANDEFER .& 'GRAY, INC. By Pres dent ., Attest:. Se ret4ty . Page 15. SUPPLEMENTAL CONTRACT THE STATE OF TEXAS X KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK X THIS CONTRACT is made and entered into this 23 day of March, 1978, 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. W I T N E S S E T H: Heretofore, on the lst day of April, 1968, the Parties hereto entered into that certain Lease Agreement, a copy of which is attached hereto and marked "Exhibit A" for reference. Said attached Lease Agreement has a primary term, as set forth in Article XII. 1 thereof, which terminates on December 31, 1990, or subsequent thereto after five (5) years notice in writing to terminate has been given by either Party. And, it is the desire of the Parties hereto to extend the primary term of such Contract dated April 1, 1968, as hereinafter provided. CV 0 c NOW THEREFORE, in consideration of the mutual agreements and the considerations of the terms, conditions and covenants to be kept, done and performed by the Parties -hereto, the Parties do mutually agree and contract that Article XII.l_. of Exhibit A, a. -a. is hereby amended to read as follows: ARTICLE XII.1 TERM OF CONTRACT Notwithstanding any other provision of this Contract, the term of this Contract is from the date set forth hereinabove until December 31, 1998, and thereafter until a date five years (5 yrs.) subsequent to written notice of termination of this Contract by either Party. A five year (5 yr.) termination notice may be given by either Party to the.other, at any time subsequent to December 31, 1993. Notice is to be transmitted by registered or certified mail with return receipt requested. �� < < ' VOL x.702 PAG_ 629 VOL 1702 PAGE 630 PROVIDED, HOWEVER, that the above Amendment is conditioned upon the following two (2) contingencies: (A) That a sewage effluent pipeline contemplated to be constructed with funds derived from a grant from a U. S. Governmental Agency and extending from the present City of Lubbock sewage disposal system to the c North boundary line of the proposed research and develop- x ment tract of land consisting of approximately four thousand (4,000) acres lying immediately North of Wilson, Lynn County, Texas, is constructed; (B) That Mr. and Mrs. J. E. Hancock, their heirs m or assigns, have executed a Contract whereby said four n thousand (4,000.) acre tract referred to in Paragraph (A) ...� above, shall be obligated to and used for the purpose of environmental and crop production research and disposal of sewage effluent thereon. - WITNESS OUR HANDS and seal of office the date first herein- above written. ATTEST: ity Secretary ATTEST: Secretary L THE CITY OF LUBBOCK By: ROY SASS, Mayor STANDEFER & GRAY, INC. -2- .J. FRANK GRAY, Prq$ident " 11 KJ:th BE IT RESOL'Vjr;D BY THE CITY COUNCIL OF THE CITY OF LuBBOCK: THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authorized and directed to execute a Supplemental Contract between the CITY OF LUBBOCK and STANDEFER & GRAY, INC., attached herewith which shall be spread upon the Minutes of the Council and as spread upon the Minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 23 day of March , 1978 ROY BASS, MAYOR ATTEST: Treva Phillips, City Secretary -Treasurer APPROVED AS TO FOR/M: Fred O. Senter, Jr., City Attorney F VOL 1 702 PAGE 63-1A Y VOL 1702 TAGE 632 The following described trr-ts or parcels of land lying and being situated in Lynn County, Texas, to -wit: All of Tracts 2, 31 4, 5, 6 and 8, in League One; and Tract 7 of League Two, according to the map or plat of Wm. D. Green's Subdivision of a part of. tv Leagues 1, 2, 3, and 41 Wilson County School Lands, Lynn County, Texas, which map or plat is of record ZK in Book 57, Page 38, of the Deed Records of Lynn N-) County, Texas, containing 1214.52 acres. All of Tracts 1, 7, 9 and 10 in League.l; Tracts 11 =b 2, 6, 8, 11, 12, 13 and 14 in League 2: Tract 3 in League 3; and Tracts 1, 2, 3 and 4, in League 4,` according to the Map or Plat of William D. Green. • Subdivision of a part of Leagues 1, 2, 3 and 4, Wilson County School Lands, Lynn County, Texas, which Map or Plat is of record in Book 57, Page 38, of the Deed Records of Lynn County, Texas. EXHIBIT "C" TO SEWAGE EFFLUENT SUPPLY CONTRACT Filed for record this the/?Aday of 1980 at- D:J0 o'clock 4 M. C. W; Roberts, County Clerk, Lynn Count , Texas. BY Deputy COUNTY OF LU880CK and —14 rr ( ± ` date at ilw flat this in t""t was RLED a th, RECORDED In #ami haraoa b 1ha Yalu"*y n'A and waa Lubbock (Ay''[F��ff 77 ^/ +� �1U1! LD �1 �� !�� and County, texas 1W .n RECORD D as atamp.d �•pn � � 4." AUG 20 19J'D a e,�OF Luaeo� C:� CoUntyCti Lf -.giG.,.�_f3JCst+�`f"i?Xu.r > as MUM �a.