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HomeMy WebLinkAboutResolution - 032256G - Oil & Gas Lease For Sale - Survey 41 Block A - 03/22/1956RESOLUTION A RESOLUTION BY THE CITY COMMTSSION OF THE CITY OF LUB- BOCK, TEXAS DETERMINING THE ADVISABILITY OF ILkKING AN OIL AND GAS LEASE, DIRECTING THAT NOTICE OF ITS INTENTION TO LEASE TH1kT PART OF SURVEY 41, BLOCK A, LUBBOCK COUNTY, TEXAS, BELONGING TO IT AND CONTAINING 513.77 ACRES MORE OR LESS, FOR OIL AND GA.5 DEVELOPMENT; SETTINGx DATE OF ACUTION AND REQUIREMANTS RELATING TO RECEIVING AND CONSIDERING BIDS, ETC. WHEREAS, the City Commission of the City of Lubbock has duly con- sidered the advisability of making an oil and gas mineral lease of certain lands belonging to the City of Lubbock, including the lands hereinafter des- icribed, and deems it expedient to publish notice of its intention to so lease said lands; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMTSSION OF THE"ZITY OF LUBBOCK: (1) It is hereby declared and determined, in the discretion of the City Commission, to be advisable to make an oil and gas mineral lease of and covering all of the City of -Lubbock Is undivided one-half (1/2) interest in such minerals within and underlying the following described lands owned by said City of Lubbock, and which are situated In Lubbock County, Texas, to -wit: All that part of Survey Forty-one (41) in Block A, located and surveyed by virtue of Certificate No. 401,, issued to H. E. & W. T. Ry. Co., patented to Thomas Jefferson George, Assignee on December 23, 1878, by Patent No. 28, Volume 47, known as Abstract No. 59, containing 513.77 acres, more or less, which was conveyed to the City of Lubbock by deed dated June 19, 1947, which appears of record in the Deed Records of Lubbock County, Texas, Volume 3.53, at page 249, to which reference is hereby made for a better description of said land. (2) That such lease such all or any part of such lands shall be made upon such terms and upon such form ;is shall be acceptable to said City Commis- sion and to the lessee therein;I i provided, however, that the said Commission reserves the right to reject any and all bids for such lease; however, should, any bid be accepted, the'Jease shall retain for the City of Lubbock at least one-eighth (1/8) of all oil -and gas minerals which may be produced from the undivided one-half (1/2) interest which the City of Lubbock owns in the said oil and gas m1nerals within and underlying said lands;: provided that for the purpose of said lease, water shall never be construed to be a mineral; and provided further that the primary term of said lease shall be for no more than a period of ten (10) years from date of execution thereof. (3) The City Secretary is authorized and instructed to give notice of the City Co"mmission's intention to lease said lands by publishing this Reso- lution in its entirety in the Lubbock Morning Avalanche, a newspaper pub- lished in Lubbock, Lubbock County, Texas, having a general circulation therein, said notice to be published once a week for three (3) consecutive weeks prior to the public hearing to be held in the City Commission's regu- lar meeting place in the City Hall at Lubbock, Texas,, ats-I.1d. on the 26th day of April -.P . 1956i- at which time. and place theCity Commission will receive and consider bids for such oil and gas mineral lease. Said City Commission. will receive and consider any and all bids submitted for the ,leasing of all or part of said lands at said hearing which shall be an open publicauction, either for cash and/or on the basis that a well is to be commenced on the property to be leased 'within 90 days from the date of the' acceptance' of the bid by the City Comm:.ssion, and for continuous drilling :within no longer than 90 days between the completion of one well and commencement of the next, or all undrilled acreage to be forfeited. If the bid accepted is for cash only, or cash and for drilling operations, the bidder shall promptly pay to the City of Lubbock the full amount of the bonus as well as not less than one dollar ($1011001 per acre delay rental, if any is required by the bid, covering the Cityks °interest in said lands. All money herein provided' for shall be payable in the City of Lubbock. (4) It is the intention of the Commiss;on to award and sell the lease to the highest and best bidder submitting a bid therefor under the provisions of this Resolution at such public hearing and auction conducted by the Mayor, or, if he be not present, by any membitr of the Com=ssion then chosen by, the +mmzission; provided that if in the judgment of said Commission the bids submitted do not represent the fair value of such lease, the Commis- sion in its discretion may reject same and give notice and call for additional bids. No bids will be considered unless submitted at said hearing. (5) Bidders are given notice that substantially the following provision will be inserted in and made a part of any lease made or executed by the City of Lubbock, to -wit: +What lessor agrees to sell water needed in mining, prospecting and operating, for oil and gas -on the land covered by this lease to lessee at its nearest City pump at. applicable rates, or at the option of lessor, the lessee may by written permit of the City Commis- sion of "the City of Lubbock, be authorized to drill water wells needed'in mining, prospecting or operating for oil and gas on the land covered by this lease. Lessee"accepts this lease with the knowledge that the land covered is primarily used by lessor as a water -well field and by the acceptance roof. this lease, lessee cov- enants that due care` will be exercised in any testing, prospecting and drilling operations to prevent damage to water strata, water sands, water pumps, an water lines, and that due care will be exercised in any drilling operation hereunder to seal off all water strata encountered within 500 feet of the 'land surface, and do all things necessary to prevent drainage of ;water from rater strata and water sands; and that lessor reserves to itself as a mineral or otherwise, all ground water pertaining to the lands covered by this lease. That no explosives will be stored on, in, or -under the leased premises, and no explosives will be used in any prospect- ing, testing, or drilling operations." (6) :Bidders are ,given notice that there is a title opinion covering the ownership of the land and mineral interest owned by the City of Lubbock available for inspection and examination prior to the date for receiving Page 2 0322m Go bids, and all bidders by bidding, agree to accept title as is lihown by said title opinion. Passed by the Commission this2� y o ridh , 19.56 ,ATTEST Fo ptQ� City Attorney, "Oe 6�olz venia -Low' e, City Secretary --Treasurer SHC : kw Page 3