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HomeMy WebLinkAboutResolution - 2031 - Street & Alley Use License- Texland Petroleum- Secondary Oil Recovery Operations - 05_23_1985Resolution 2031 May 23, 1985 Agenda Item #27 JWF:da 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 Street and Alley Use License Agreement with Texland Petroleum, Inc., for secondary oil recovery operations, 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 ATTEST: ttanette tsoya, Lity 5ecr APPROVED AS TO CONTENT: 23rd day of May , 1985. AL HENRY, YOR Jim er am, Assistant i y`�anager for V2vplopment Services APPROVED AS TO FORM: A J. Wfy Fullingim, Assidtant City/Attorney Resolution f2031 STREET AND ALLEY USE LICENSE THE STATE OF TEXAS COUNTY OF LUBBOCK This indenture made this 23rd day of May , 1985, being the date of this Agreement between the CITY OF LUBBOCK, TEXAS, a Home Rule Municipal Corporation, and TEXLAND PETROLEUM, INC., Lubbock County, Texas, hereinaft-er called "LICENSEE." WITNESSETH: Subject to the terms, conditions and provisions herein, the CITY OF LUBBOCK does hereby grant to the LICENSEE, the right, privilege and license to use a portion of dedicated streets and alleys to -construct and maintain an underground pipeline for secondary recovery operations for oil production, this license being classified as a subsurface license. LICENSEE shall have a minimum cover of at least 42 inches from the ground surface, except that, under circumstances approved by all franchised utilities and the City of Lubbock utilities engineer, variances in depth and casing requirements at specific locations may be allowed. Locations of pipelines shall be as located on attached map and constructed to specifications noted at Exhibit A, under the following conditions: (A) Licensee shall require a certified "as built" plan to be submitted for construction of the system to the wellhead. (B) Licensee or any contractor working for Licensee shall report pressure testing results (to the City of Lubbock) within the system or at any wellhead on the same basis as submitted to the Texas Railroad Commis- sion. (C) Any time a packer is to be set, relocated, or replaced in an injection well, the Oil and Gas Inspector of the City of Lubbock shall be notified three (3) days in advance of the location and approximate time of day. (D) All franchised utilities of the City of Lubbock and the City of Lubbock shall be notified prior to installation of facilities by Licensee in any affected area so their interests may be protected as to their existing facilities in said affected area. (E) Any oil or salt water which shall escape by leaks and/or rupture in pipelines or other facilities maintained by Licensee which shall pollute and/or damage the streets and/or alleys or the property of others shall be removed and the land restored to its original condition. (F) If in the future the Licensee makes written request to the City Council for the use of additional pipelines and other facilities for secondary oil recovery in the streets and alleys in the vicinity of the present operation, in the discretion of the City Council of the City of Lubbock such additional pipelines or other facilities may be added to this License by Resolution of the City Council and payment of such additional fees as determined by the City Council subject to revision as provided herein. 1. The term of this grant shall be for five (5) years from date hereof, and shall be automatically extended for successive five (5) year terms not to exceed twenty (20) years in any event unless either party shall give written notice of termination to the other party sixty (60) days before the expiration of the first, second or third five (5) year term, as the case may be, and the CITY OF LUBBOCK retains the right at its election to cancel and revoke this license with or without cause upon thirty (30) days notice to LICENSEE. Said notice shall be deemed properly served -if deposited in the post office, postage paid, addressed to LICENSEE at 3402 Fort Worth National Bank Building, Fort Worth, Texas 76102, or the last known address of LICENSEE. Upon expiration or cancellation and revocation of this license by the CITY OF LUBBOCK or the abandonment of the license by the LICENSEE, the improvements that are permitted under this license shall be removed by the LICENSEE and the propery shall be restored to its original condition at no cost or expense to the CITY OF LUBBOCK. In the event LICENSEE fails or refuses to remove such improvements after demand by the CITY OF LUBBOCK, the CITY OF LUBBOCK shall take possession and remove or cause to be removed such improvements, and the expense incurred shall be assessed against LICENSEE for which LICENSEE shall be liable. 2. LICENSEE shall pay to the CITY OF LUBBOCK as a compen- sation for such grant the sum of FIFTEEN THOUSAND THREE HUNDRED SEVENTEEN AND 50/100 ($15,317.50) DOLLARS cash in advance contemporaneously with the acceptance and execution hereof by LICENSEE for the first five (5) year term of this license, and thereafter such rate of compensation which is based on procedures and policies as established by the City Council of the CITY OF LUBBOCK based on an appraisal of the fair market value of such land by the Right of way Department of the CITY OF LUBBOCK as applied to the formula for determining such rate established by the City Council. If such rate is not changed by the CITY OF LUBBOCK, the rate for the preceding five (5) year term shall apply. The CITY OF LUBBOCK shall notify the LICENSEE of any change in rates in writing ninety (90) days before the start of the five (5) year term to which such change in rate shall apply, and if such notification be not timely made then the rate for the preceding five (5) year term shall apply. 3. The LICENSEE agrees to pay all costs arising out of the exercise of this license herein granted, including but not limited to the replacement and repairing of paving, sidewalks and utilities of any nature occasioned by the placement of flags as authorized by this license. 4. In the event the CITY OF LUBBOCK determines that the existence of such use interferes with or causes the rerouting or realignment of any public utility, franchised utility or sanitary or storm sewer line constructed or to be constructed by the CITY OF LUBBOCK or franchised utility, the LICENSEE agrees to reim- burse the CITY OF LUBBOCK or such utility, as the case may be, for its expense in relocating or rerouting over and above the expense which would have been incurred except for LICENSEE'S use herein. -2- 5. This license is not transferable by the LICENSEE without first receiving the written consent of the City Manager of the CITY OF LUBBOCK. 6. This license is made subject to the condition that should the LICENSEE exercise any right under the license herein granted and prepare or begin to complete any part of the construc- tion as herein contemplated across any or all of the above set out property, then and in that event said LICENSEE, his heirs and assigns, will at all times defend, indemnify and otherwise hold the CITY OF LUBBOCK, its agents, servants and employees harmless from any and all claims, demands, actions, causes of action, suits at law or in equity of whatsoever kind or nature which may grow out of or be related to the making of this license or the construction or maintenance and use permitted herein. The CITY OF LUBBOCK, at its option, may require -an agreement with any - contractors hired by LICENSEE to perform the construction, repair or maintenance permitted herein, which agreement will indemnify the CITY OF LUBBOCK from and against all claims, liability, cost and expense growing out of the performance of the work to be done by such contractor. The CITY OF LUBBOCK may further require such contractor, when engaged in the construction, repair or mainten- ance permitted herein, to furnish, without expense to the CITY OF LUBBOCK, a reliable surety bond, in an amount and in a form satisfactory to the said CITY OF LUBBOCK, guaranteeing the faithful performance of all the terms, covenants and conditions contained in said agreement, and a certified copy of a policy of public liability assumed by contractor in said agreement with the CITY OF LUBBOCK. The CITY OF LUBBOCK agrees to give notice to LICENSEE prior to incurring any costs or expenses or the payment of any such claims or demands in order to give LICENSEE a reasonable opportunity to settle or adjust the same. 7. LICENSEE agrees and is required to furnish a policy of public liability and property damage insurance, within limits specified by, and in a form satisfactory to the City Attorney for the CITY OF LUBBOCK, and which names the CITY OF LUBBOCK as the insured, said policy covering the uses herein granted. B. All of the covenants and provisions of this license shall be binding upon and inure to the benefit of the successors, legal representatives, assigns and the duly authorized agents of the parties hereto to the same extent and effect as the same are binding upon and inure to the benefit of the parties hereto, but no assignment hereof by the LICENSEE, its successors and assigns, shall be binding upon the CITY OF LUBBOCK without the consent of the CITY OF LUBBOCK in each instance, except as specified in numbered paragraph five (5). 9. LICENSEE, by the acceptance of the uses permitted herein, understands and agrees that no interest, title or rights of possession are intended or implied except those expressly set forth herein, and LICENSEE waives any and all claims in and to the light poles and public ways it is permitted to use hereby and agrees to give peaceful possession of said property covered herein upon termination or cancellation of this license. -3- CITY OF U OCK BY: A A HEN , MA ATTEST: Ranet Boyd, City Secretary AGREED TO AND ACCEPTED this 23rd day of May , 1985. LICENSEE: TEXLAND PETfiOLEUM, INC. BY: R. J. Schumacher, PRESIDENT APPROVED AS TO CONTENT: Jim WrAram, Assitant City Manager for lopment Services APPRO D AS TO FORM: J P! rth Fullingim, Assists City Attorney THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned for said County, Texas, on this HENRY, MAYOR, known to me to be scribed to the foregoing instru he executed the same as the act and as Mayor, for the purposes sed and in the capacity therein authority, a Notary Public in and day personally appeared ALAN the person whose name is sub- nent and acknowledged to me that and deed of the CITY OF LUBBOCK and consideration therein expres- stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 23rd day of May , 1985. Notary Public, LbbbobT< County, Texas -4- THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared R. J. SCHUMACHER, President, 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 as the act and deed of said TEXLAND PETROLEUM, INC. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 1965. Notary Public, Tarrant County, Texas -5-