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HomeMy WebLinkAboutResolution - 042656D - Accepting Bid - Western Drilling Co, Inc - Section 5 Block A. Best Scan - 04_26_1956 Best Available Scan F ._7-, w o4zo5oD e a,at .g MIZ MR � " = rt y T. 7, Gry C. X'.�'r w..�.�:a• A. iw ft i F TOT,ce.?'}; �.�q`�"� �,?� � �` �:�.��k ClUl",rf" ra"4y, FY'm s4dAY(,'��A: �p }T:lins�?�' iA9iSc ��ak;?..- 6`nr7[.`� u 'Ei a,,,.,...kai' �s" �{d.Gi 4..YY.` �n,7. ei,j �..r'.:.;+!• t*:ory rathcrliwd U-i p—Il it ation O;f.�.#,3Cf`;'w of �n lay' r Rr a;e of �]lds and. rim c5 en $BExt—1 n tar t rn for, 01,110 caa f y fi.. �i'i,$s.t_,1' .i•tyY, " 'ox. p?I..e c n-rb O tL" �.E�Sulz CPaz 2'�Z!�^4 in ubm t Cl,ty v+lai mien #,i i4.= ilzt tots.a bas r tt`i U..:,, Sri: H ;4';er rY lCY`l;'4 t mld$ in Vx, -t, C•e es" n rvom Ln Cit r lI . r City of CC'z,�—� V-- r_,-* 4ri:s:�x�,:q.�+t�aft 34st ^.5=t�.S`A 11�1��!'0�::' z,r, �y'� � �y"�i;�yk>; t zatZo,'tm a bid •INy-0.1%ua-iwe L� ie J,�n�J rt�:`1f w� �IIA�w[.µ �.par th:i .lr";LtSev e. 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' SST �. .4—r.m0, li Zr7'^,,Cl ty coast/-' =::rcr of t o City cat d 0-n-in'`i"t vo-p�' C $ $ �7 :I�iC3°a3,gti HR* T t-rx Gt :"On Cr L 'T.13r,=ln IiY ' 'r,r V*.4c cj:ty vow+1..a.�i e"M''f• " M;a , ° ,7 o retar -T yr 01+2JOSbD P1 L ANQ G,�.S LEASE THIS AGREEM.NT made this the day of . 1956, between CITY OF LUBBPCK, Texas, Lessor, acting by and through its Kayor, hereunto duly authorized, and WESTERN DRILLING C0MPANY,Inc., Lessee, of Lubbock, Texas; FITNESSEM 1. Lessor In tousideratiou of jt-n and no/100 dollars, cash in handpaidi receipt of which is,he-re'by'ackno wltdged. of the royalties herein provided, and of the agreements of Lessee herein contained. hereby grants. leases and lets exclusively unto Lessee for the.purposo of Investigating, exploring, prospecting. drilling and mining farIand producing all and gas, laying pipe lines, building tanks, power stations, telephone lines and other structures thereon to produce, save.take Care of, treat, transport, and own said products, the following described land in Lubbock County, Texas. to-fait: Down to a depth of 5300 feet from tho surface ,Ofithe following described land: BEIM ALL Or SURVEY NO. 5, BLOCK A. A3STRACT NO. ST. 2. Subject to the other provisions herein contained, this lease shall be for a term of six (6) months from this date .called "primary term". and as long thereafter as oil and/or gas is produced from: said land hereunder. 3.: The royalties to be paid by Lessee are: (a) on oil three-sixteenths (3/16) of that produced and saved from said land. the same to be delivered at the cells or totbe credit of Lessor into the pipe line to which the walls may be connected: Lessee may from time to time purchase any royalty oil in its possession, paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including easinghead pas or other gaseous substance, produced from said land and sold or used off the promises or for the extraction of gasoline or other product therefrom, the market *slue at the well of three-sixteenths (3/16) of the gas to sold or used. provided that on gas sold at the' wells the royalty shall be three-sixteenths (3/16) of the amount realized from such sale; Lessee shall have free use of oil and/or gas from said land for all operations hereunder. and the royalty an oil�and gas shell he computed after deducting any so used. 4. It is agreed that this lease shall terminate and be of no further force and effect unless on or before ninety (90) days from date hereof, Lessee Page-1 042(o5bP commences ors causes to be commenced operations for the drilling of a test well for 611:4ad<tit On some portion of the above described lend or on land adjoining apk offsetting the above described land, such well whether located on the isbove� der�bed land or on lend adjoining and offsetting said lend. if commencedt1:shall�ie dillgentlr drilled to a depth to adequately test the Leg Harriton Field Pjx zone expected to be encountered at approximately 49W feet below the.Ourtaae'ett the ground, unless oil and/or gas in commercial quantities is eacounta�ed A'tlai`lesser depth or unless granite or other impenetrable sub- stentia. geasrallr,Vpnsidercd impracticable to drill is encountered at a lesser depth.i ;such drll ng operations to be conducted in accordance with the provisions of snbdlv#sions �a)1 (b) and (c). as follows: (a) If the above mentioned test well is located on some ; portion of the above described land then upon the ouipletloc of some either as a producer or as a dry hole.: i tisee may within ninety (90) days from the completion ofl isame, commence or cause to be commenced the drilling of a: 46sond well on some portion of the above described land, xAde to be drilled to similar depth and in similar manner' <asjthe first well. and in like scanner additional wells I lay be drilled on a continuous drilling program with no ,longer than ninety (90) days occurring between the n upletion of one well and the commencement of the ! €ct well. OY. if said first test well as hereinabove mentioned is located 6i land adjoining and offsetting the land hereinabove dts �rIbed then upon completion of said offset well either as a producer or as a dry hole. Lessee may within thirty t30) drys from the completion of same, commence the drilling bf alwall on some portion of the lands hereinabove described in the same wanaer.and to the depth mentioned above. and upon completion of said well either as a producer or as 'e dry hole. Lessee may within ninety (90) days from the `,ompletlon of same, commence or cause to be commended t'hc drilling of a second well on said land herein described. ,iamle to be drilled to similar depth and in.the some manner as said preceding well, and in like manner,additional wells :;nay be drilled on a continuous drilling program with no'' ) longer than ninety (90) days occurring between the completion �f one well and the ecowncement of the next well. te) Failure on the part of Lessee to commence or cause to be the drilling) of said first test well, either'on �ommenced he lands herein described or on lands adjoining and off- �,) , Isetting safd lands, as set.'forth in subdivisions (a) and (b) above. shall operate to cause this lease to terminate and be Hof no further force and effect. Should said first test well The drilled and completed either on the land :hereiaabovI (described or on adjoining and offsetting lands, as seti' forth !in subdivisions ( and (b) above, andLessee should thtre- after .tail to commence or fail to cause to be commenced.the 1drilling of any additional well or wells within the ;period or periods called for under the continuous drill- ing program as mentioned., then this lease as to all u� idrilled portions of the lands covered thereby shall --, I terminate and be of no further force and effect except i that Lessee shall be entitled-to retain forty (40) Pa ge-2. t acres as near in the fora of a square as possible around each producing well. Termination of this lease as herein provided shall be the only remedy of Lessor in the event of failure of Lessee to commenon said test well or to eom,ence the drilling of any additional well or wells and Lessee sball„mot be liable in damages for say such failure, S. It after discovery of oil or gas the production thereof should cease from any cause, this lease shall not teroinote if Lessee commences additional drilling or re-working operations within sixty (60) days thereafter, and prosecutes such operations with.no cessation of vorse than thirty (30) con- secutive days and if they result in the production of oil and/or gas, so long thereafter as oil and/or gas is produced from said land. In the event a well or wells producing oil and/or gas In paying quantities should be broughtin on adjacent lend and within six-hundred-sixty OW) feet of and draining the leased promises as above described, Lessee agrees to drill such offset wells as a reasonably prudent operator.would`;drill under the same or similar circumstances. 6. Lessee shall have the right at any time during or after the ex- piration of this lease to remove all fixtures and property placed by Lessee on said land, including the right to draw and remove all casing. When required by Lessor, Lessee will bury all pipe lines below ordinary plow depth, and no well shall be drilled within two hundred (200) feet of any resideude or barn now on said land without'Lessor's consent. T. That 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'Citty Comrsis lion of the City of 'Lubbock, be author- ized to drill water oells:aeeded to mining, prospecting or operating for oil and gas on the land covered by.thls lease. Lessee accepts this lease with the knowledge that the land covered is primarily used by Lessor as a water-well field and by acceptance of this lease, Lessee covenants that due care will be exercised in any testing, prospectiag,and drilling operations to prevent damages to water strata, water sands, water,pumps, and water lines, and that due care will be exercised to any drilling operation hereunder to seal off all water strata encountered within 500 feet of the land surface, and do all things to prevent drainage of water from water strata and seater sands; and that Lessor Page-3. .� 04210%1) reserves to itself as a mineral or otherwise, all ground eater pertaining to the lands covered by this lease. Thait no explosives will be stored on. In. or under the leased premises, and ao explosives will be used in any prospecting, testing. or drilling operations. No salt water shall be placed r left on the land. The rights of either party hereunder may be assigned in whole or in part and the provisions hereof shall extend to the heirs, successors and assigns but no change or division in ownership of the land or royalties however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No sale or assigime nt by Lessor shall be binding on Lessee until Lessee shall be furnished with a certified copy of recorded Instrument evidencing same. 9. The breach by Lessee of any obligation arising bereunder shall not worts a forfeiture or termination of this lease nor cause a termination or reversion to the estate created hereby nor be grounds for cancellation hereof in whole or in part save as herein expressly provided. 10. Lessor hereby warrants and agrees to defend the title to said land and agrees that Lessee at its option may discharge any tax, mortgage or other lien upon said land and in event Lessee does so, it shall be sub- rogated to such lieu with the right to enforce same and apply royalties accruing hereunder toward satisfying same. Without Impairment of Lessee's i rights under the warranty in event of failure of title, it is agreed that it Lessor owns an interest in said land less than the entire fee simple estate. then the royalties to be paid Lessor shall be reduced proportionately. 11. This lease shall be subject to all federal and state laws, executive orders, rules or regulations, and to all orders, rules, regulations or reecamendations of all federal or state officers. agencies, boards, commiss- ions or committees which in any way, directly or indirectly. relate to or affect performance of any of the express or implied covenants of this lease, and this lease shall mot be forfeited or terminated in whole or in part,nor shall Lessee be liable in damages. for failure to comply with any of the express or implied covenants of this lease, if such compliance is prevented by, or if such failure results from complianee with any such law, order, rule, regulation or recommendation. Page-4. 0*20sbD 12. Lessor's warranty of title is limited to all of the surface and an undivided one-half (1/2) interest in end to the minerals in. on and under the above described lead. IN WITNESS WHER80F, this instrument is executed on the date first above written. ATTEST; CM OF LU81 OM, TEXAS By. BY ifoyor City SecretarylavenQa Lowe = RRRST, 7R, k=4 City Attorney Page-5. i- 042(4 G 1) STATE Cr TEXAS CGM7Y Cr LIIBBOCK 3 BEFORE LE, the undersigned authority, a Notarylublic in and for said Lubbock County, Texas, on this day personally appeared S. S. Forrest,Jr., Mayor of the City of Lubbock, Texas, known to me to be the person whose name Is subscribed to the foregoing instrument, and acknowledged to we that he executed the same as the act and deed of said City of Lubbock. Texas, for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN O MER XY IWO AND SEAL of office, this the day of A. D. 1956. Notary Public, Lubbock County, Texas 1