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HomeMy WebLinkAboutResolution - 032256F - Oil & Gas Lease For Sale - Section 5 Block A - 03_22_1956 RESOLUTION A RESOLUTION BY .THE CITY COMI%CSSION OF THE CITY OF LUB- BOCK, .TEXAS, DETERMINING THE ADVISABILITY OF Mik.KING .AN OIL .AND GAS LE_kSE, DIRECTINGi THAT NOTICE OF IT$ INTENTION TO LEASE THAT PART OF SECTION 5, BLOCK A, LUBBOCK COUNTY, TEXAS, BELONGIING TO IT AND-CON.TAININra 640 ACRES MORE OR LESS, F01-1 OIL AND GAS DEVELOPM-ENT; SETTING DATE OF AUCTION AND REQUIREMENTS'RELATING TO RECEIVING AND CONSIDERIN43 BIDS, ETC, WHEREAS, the City Commission of the City of Lubbock has duly considered the advisability of milking an.oil and gas mineral lease of certain lands belonging to the City of Lubbock, including the lands hereinafter des- cribed, and deeme: it expedient to publish notice of its intention to so lease said. lands; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY 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's 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 situtated in Lubbock County, Texas, to-wit- All of Section Five ( ), Block A, Lubbock County,Texas, and described by metes and bounds as follows, to-wit- BEGINNING at a stake for the Northeast corner of Section No. 1, Block A= for the Southwest corner of this tract; THENCE East 1900 varas, to a point for the Southeast corner of this tract; THENCE North 1909 varas to a point for the Northeast corner of this tract; THENCE West 1900 varas to a point ,for the N-arthwest corner of this tract.; THENCE South 1900 varas to the PLACE OF BEGINNING, con- taining 640 acres of land, .mare or less, and being the same land petented to David Studebaker by the State of Texas by Patent No. 160, Volume 35, on December 22, 1877, and recorded in Volume 1, page 140 of the Patent Records of Lubbock County, Texas. (Z) That such lease of all or any part of such lands shall be made upon such term: and upon such form •a.s shall be acceptable to said City Commission and to the lessee therein; provided, however, that the said Connuission re- serves the right to reject any and all bids for such lease; however, should any bid be accepted, the .lease shall retain for the City of Lubbock at least one eighth .(1/8) of all oil and gas minerals which ms y be produced from the un- divided one-half (1/2) interest which the Gity of Lubbock owns in the said oil and gas minerals 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 Comrnissionts 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 Commissionts regu- lar meeting place in the City,Hall at Lubbock,- Texas, at 2 P.M. on the 26 day of Ap r-Z 1956, at which ime and place the itty-C mmiss on ;R rece ve ana cons der bids for such oil and gas miner- al 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 public auction, 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 Commission, and for con- tinuous 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.($1.00 per acre delay rental, if any is required by the bids covering the City's per in said lands. All xnaney herein provided for shall be payable in the City of Lubbock, (4) It is the intention of the Conunission to award and sell the lease to the highest and best bidder submitting a bid therefor under the provis- ions of this Resolution at such public hearing and auction conducted by the Mayor, or, if he be not present, by any pap-mber of the Commission then chosen by the Commission, provided that if in the judgment of said.Comm;s Sion the bids submitted do not represent the fair value of such leases the Commission in its discretion may reject same and give notice and call for _ additional bids. No bids will be considered unless submfitted 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: vtThat lessor agrees to sell water needed in mining, prospecting an . 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 Xor 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 of 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. and water lines, and that due care will be exercised in any drilling 9pe ration,"here under to seal off all water t strata encountered within 500 feet of the land surface, and do all things necessary to prevent drainage of water from grater strata Page Z and water sands;_.tend 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 bids,. and all bidders by bidding, agree to accept title .as is shown by said title opinion. Passed by the Commission this 22 day of March 1956. IVUYOR ATT FPS T: F vcovmd City Att.,rW, venia Lowe, City Secretary=Treasurb r SHG:kw Page 3