HomeMy WebLinkAboutResolution - 265 - Award Lease For Oil And Gas To Allspaugh Comp - 09_13_1979JWF:hw A.
RESO #265 - 9/13/79
RESOLUTION
1 WHEREAS, the City Council of the City of Lubbock has determined that it
would be to the best interest of the City of Lubbock and to the public interest
` to lease certain lands for oil and gas and other mineral development; and
WHEREAS, notice has been duly published as required by the Natural Resources
Code of the State of Texas of the intention of said City Council to lease certain
lands for such development; and
WHEREAS, bids have been received pursuant to said notice as required by law,
and said bids were closed on September 4, 1979, in accordance with said notice,
and said matter was set down for consideration at a public hearing at 11:00 A.M.
on the 13th day of September, 1979, in City Council chambers at City Hall,
Lubbock, Texas, and after consideration of the bids it was determined that only
one bid was received and it was from the The Allspaugh Company of Potter County,
Texas, said company being the successful bidder, and after due consideration the
City Council determined that the bid of said company would be to the best interest
of the City of Lubbock and that a 38.58 acre tract out of the Southeast part of
Section 4, Block S, G. C. & S. F. Ry. Co. Survey, Lubbock County, Texas, being a
part of tract 8, S. I. Johnson Subdivision of said Section 4 and a 4.428 acre
tract of land out of Sections 3 and 4, Block S, G. C. & S. F. Ry. Co. Survey,
Lubbock County, Texas; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT The Allspaugh Company is hereby awarded a lease for oil
and gas and other mineral development for said 38.58 acre tract and 4.428 acre
tract for a primary term of five (5) years, the bonus consideration to be THIRTY-
FIVE DOLLARS ($35.00) per acre, and the delay rentals for the remaining four (4)
years of the primary term to be ONE DOLLAR ($1.00) per acre for each of said four
(4) years. The City of Lubbock is to have a 1/8 royalty interest.
SECTION 2. THAT the Mayor of the City of Lubbock is hereby authorized
and directed to execute for and on behalf of the City of Lubbock, as lessor, an
oil and gas and other mineral development lease in favor of the said successful
bidder, The Allspaugh Company, in accordance with the notice publised for such
purposes.
Passed by the City Council
this 13th day of September 1979.
WEST, MAYOR
•'ATT$ST'e --- -
'- velyn Ga ga, City c y-Treasurer
APPROVED AS TO FORM:
J. rth Fullingim, Asst. Cia Attorney
RESOLUTION#265 9/13/.79`'
s�Praducor.:e—t=pecial) OIL' AND GAS LEASE
Ckla Ran. Webr... TEXAS
t11 "I (Paid -up Lease —No Delay Rentals)
` 'THIS AGREEMENT mode -and :Mrire Inro by .area betw.:n
of �Lubboek Count�.^.Texas.a.. -.--- " hereinafter eelkd lessor (whether one or more) and ..
Thelspau�h?_ComQanv� r, Potter CountJppJ�� Texas
-. Z,.-.. 1)enrrotter mfkdkssee:
WITNESSETM:: that. tenor far onAin considarorion of."T@A.a.nd T1o/1o0 .--_ _=voLIARS tt 10.00
.H hard Paid, receipt of which is hereby acknowledged, and of the agreements of lessee hereirafter set forth herby Oronts, demises, levies and lets
exclusively unto said lessee the lands .hereinafter described for the purpose of Prospecting 'exploring -by geophysical and other methods, drlilirq,minng
1 K operating lornrd producing al or.aas, +or both, Irrcludirg,.but rat ps'o limitohon, easnng�neod pas,. cosinghead gasoline, .gas -condensate (distillate) Dorf.
any substance; whether slmibr or d(asimllop yroduced jn o gaseous store, Sopatherwith.the right to construct and maintain pipe lines, telephone and elec-
hic lines, looks, powers, ponds, roodw'ori: Pbnts;1 equipment, andsinxtures tbereon to Produce,sove and take core of said oil end gas, and the exclusive
T right fo elect •air, goat voter; brine and other tlulds from any swrte inro'Yhe sutiaur}oce strata and onYand .oil other rights and privileges necessory,,in-
cident rot or convenient for the ecoromhcol aperotion o} sold fond, alone or tonloiMly w""nth neighboring land, for the Production, saving and taking care of
oTil��and".Oos,and the injection of art gas, wafer, brine; :and ofteh7er fluids into._Me subsurface.: strata, saidv lands being situated in the County of
Iellb)ZIID$,_ — State -of _ _TezaB., and being described as follows t"it•.
Arxac_of�].anc�s�tzt�of therS.ititheaet Raxt 9f�BeaLtQ,�419ck S, Q.0 dc,
F: $ Clc u �C, t k 0c aunty, T �4as�" :heirs• s. part` of Tract -8, S I :
Johnsonaio'`said` Section_4, and �iiein� more particularly
described as follows. ,
_ _ ... , .
Beginning,�st a 1�2" iron iilpe set_-Smtb- 0 6' W -A+. 1264 -9 feet fro -the_._ .tee ..��� 0-- aL— 'Qw.a L.w.. e,♦- w«A t...,...e ..�.e w,.w -.�—
ti to ' t ran n+"•
-this greet:
LQe _found for the
right-of-way line of U. S .,Highwallo i +for the -Northwest corner of
t hi s.;.t ract , - --
Thein �zQtxth Z3°��' F" high. Ay__r�,8ht-of-war, s distance of
rl lt� eg 11 'Iron pip s' __'Qr theNortheast corner of this
.tract
Thence Sough O�yO'4 East 1 89 feet to. the. Place of Beginning...
Of Section. - TowndniD -- Rcngs it being the purpose and intent of lessor
to 100", and lessor does hereby tepee, all of the beds or .interests in lands owned by lessor which adjoin the ]lands above described or which Ile in the sec- .
tion or sections herein specified. for all purposes of this Note; sold lands shall be deemed to contoin_,38-58_ocres. _
Subject to the ether provisions herein contained, this lease shall remain in force for o term o£_— g;" yeors from this date (herain'colled
"primary term") and as bop thereafter as oil and gas, or either of them, is produced from the above described land or drilling operations ore continuously
Prosecuted as hereinafter provided. 'Drilling operations" includes eperotions for the drilling of o new well, the reworking, deepening or Plugging back of
a well or hole or other operations conducted in an effort to obtain or re-establish production of oil or gos; and drilling operations shall be considered to
be "continuously prosecuted'" if not more than 60 days shall-elopse between the completion or obondo inent of one well or hole and the commencement
of drilling operations on another well or hole. If, at the expiration of the primary term of this lease, oil or gas is not being produced from the above
described land but lessee is then engaged in drilling operations, this lease shall continue in force so long cis drilling operations am continuously prosecuted;
and if production of oil or gas results from ant Such drilling operations, this loose shall continue in fora so loop os oil o gas stall be Produced" If, after
the expiration of the primary term of Mis lapse, production from the above described land should cease, this loose shall not terminate if lessee is then
prosecuting drilling operations, or within 60 days after each such cessation of production commences drilling operations, and this loose shall remain in force
so long as Such operotnoni ors continuously prowcuted, and if production results therefrom, then as lore thereafter as oil w gas is produced from the
above described lord. - - In consideration of the premises, lessee covenants and agrees: -
let. To deliver, free of cost, to lessor at the wells, or to the credit of lessor in the pipeline to which the wells may be connected, the equal one -eighth
(Val port of all oil and other liquid hydrocorbom produced end saved from the leased premises, or, at lessee's option, to pay to lessor for such one-
- eghth (Ve) royalty the market price at the well for such oil and other liquid hydrocarbons of like grade and gravity .provoiltrg on the day Such oil and
other liquid hydrocarbons are run from the lease..
2nd. To pay lessor one -eighth (ys) of the proceeds received by lessee of the well for oil gas (including all substances contained in such gas) produced
from the loosed premises and sold by lessee; if Such gas is used by lessee off the leased premises or used by lessee for the manufacture of wsirghead
Gasoline or other products, to pay to lessor one -eighth `n/s) of the prevailing market price of the well for the gas so used.
The consideration paid to lessor for this lease includes consideration in lieu of delay rental provisions and the rights and obligations of the parties
u hereder shall be the Same as if this lease contained provisions for the payment of periodic delay rentals throughout the primary term hereof and each
Such delay rental hod been timely paid and accepted by lessor. - If a well capable of producing gas or gas and Cos -condensate In paying quantities located on the teased premises (oron acreage pooled or cmmli-
-. doted with all or o portion of the leased Premises into o unit for the drilling or operWign of Such well) is at any time shut in and no gos or gos-condensote
therefrom is sold or used off the premises or for the manufacture of gosolina or other products, nevertheless Such shut-in well shall be deemed to be a well
- on the loosed premises producing gas in paying quantities and this lease will continue in force during all of the time or times while such well is so shut in,
whether before or after the expiration of the primary term hereof. Lessee shell use reasonable diligence to market gas or gas and goscondenswe copob)e
of being produced from Such shut-in well but shall be under ra obligation to market such products under terms, conditions or cirwmntonces which, in
lessee's judgment exercised In good faith, arc unsatisfactory. Lessee shot] be obligated to pay or tinn der to lessor within 45 days after the expiratioof
each period of one year in length (annual period) during which Such well is so shut in. as royolty, an amount equal to $1.00 per ern for the acreage
covered by..this lease as to which the leosehold rights ore, at the end of such onnual period, owned by the lessee making Such payment; provided that, if
lessor owns less than the full and entire royalty interest in such acreage, such payments shall be such port (calculated on a royalty -acre basis) of said
amount as I.—'e royalty interest beers to the full and entire royalty interest in such acreage; and provided further that, if ass or gas -condensate from
such well is sold or used as aforesaid before the and of any such annual period, or if, at the and of any such annual period, this leans b being maintained
in force and sffect,wherwise than by reason of Such shut-in well 'lessee shell not be obligLted to poy or tender, tor that
particular annual per, said
Sum of money. Such payment shall be deemed a royalty under all provisions of this loose. Such payment may be mode or tendered to lessor or to lessw'a
exas omm e Bank bock,, Texas
creek tin c
-� ._._.�_€---6onk'ot� _ f !
.wrhidn bank and irssuceesson shall continue as the 'dopovroryrcgordless of changes in the-ownersAiP of tord'bnd or the•rht to recewe roygMy �nereurder r;
Royalty ownership as of the lost day of each such annual period as shown by lessee's records shall poyorn Moe determination of the party or parties on- _
j, tithed to receive such payment- .:.::„ y,.. - 1
If lessor owns a less interest in the land covered by this loose than the entire and undivided -fee Simple mineral ostpto tharetrt, then whether +Of' opt'"
_ sash less interest is referred to or described heroin, all royalties herein provided shall be paid lessor only in the proportion (calculated on o royalty-ocre
basis) which the royo]ty 'interest owned byla
. him m id land bears to the full and entire royalty interest n said land..._, ,
If the estate of either party hereto is assigned or sublet, and the privilege of assigning or subletting in whole or in part -.a expressly allowed the ex -
press and implied covenants hereof shall extend 1o'LMe sublessees, successors and ossig,,s of the parties; and in the event of on assignment or Subletting
by kisses, lessee shall be relieved and discharged as Yo the leasNndd rights so assigned or sublet from any liability to lessor thereafter accruing upon any
of the covenants or conditions of this lease, either express or implied. No change in the ownership of the land or royalties, however accomplished,shall
operate to enlarge the obligations or diminish therights of lessee or.require separate measuring or installation of separate tanks by lessee. Notwithstanding
any actual or constructive knowledge of or notice to lessee, no change in the ownership of said land w of the right to receive royalties hereunder, or of
any interest therein, whether by reason of death, conveyorice or any other matter, shall be binding an lessee (except at lessees option in any particular
case) until 90 days after lessee has been fumished written notice thereat, and the supporting information hereinafter referred to, by the party claiming as
a result of Such change in ownership or interest. Such notice shall besupportedby original w certified copies of all documents and other instruments or
proceedings, necessary"in leee'sss opinion to. -establish the ownership of.ths claming .party,
Lessee may, at any firrit,execute and deliver to lessor or place of.:rocerd a release eoverinQ oil or any Port of the acreage embraced in the loosed
.. Promises or covonng any one or mom nines, formations pr depths underlying all or part of. Such acreage, and tlforeupon shall be relieved of all obli.
'. potions thereafter to accrue with respect to the acreage, :zones, formations or depths covered by such release.
1.:: -.
` Lessee is granted the right, from time to time while this feose is in force, ro po il'into a separate .operating unit or uniti all or any pert of the land
_ oovend by this lease with other land, lease or leases, or interests therein (whether such other interests ore pooled by o,voluntory agreement on the part.
of the owners thereof or by the exercise of a right to pool by the lessees hereof), when in lessee's judgment it is necessary or advisable in order to pro-,
mom conservation, to property develop or operate the land and interests to be pooled, pr to obtain a multiple production allowable from any governmental
agency having control over Such motten. Any pooling hereunder may cover all oil and gas, or any one m mom of the substances covered by this lease,
ant may cover one or more or off zones or formations underlying all or any portion or portions of the loosed Premises. Any unit formed by Such pooling
shall be of abutting or cornering tracts and shall not exceed 640 acres (plus a tolercrre of 10%) for gas or gas -condensate and shall not exceed 80 acres
(plus a tolerance of 10%) for any other substance covered by this loose; provided that if any governmental regulation or order shall prescribe a spacing ,
pattern for the development of a field wherein the above described land, or o portion rhareaf, is located, or allocate a producing allowable based on acreage
per well, then any such unit may embrace as much additional acreage as may be so prescribed or as may be permitted in such allocation of allowable- The
area pooled and the zones or formations and wbstme" pooled stall be set forth by lessee in a "declaration of pooling" filed for record in the county or -
carmies in which the pooled area is located.. Such pooling "it be effective on the dote Such doclorotion is filed unless a later effective dote is specified
in Such declaration. In liw of the royalties elsewhere herein specified, except shut-in gas well royalties, lessor shall receive on production from on area
a •: -
1TTtllnnl—
soil
,;s7
x
so pooled only such portion of the royalties which, in the absence of such pooling, would be payable hereunder to lessor on production from the land
1 covered by this lease which is placed in the pooled area as the amount of the surface acreage ,n the land covered by this lease which is placed in the
pooled ores Dears to the omcunt of the surface ocreage of the entire pooled area. Nothing herein contained shall authorize a effect any transfer of any
title to any leasehold, royalty or other interest pooled pursuant hereto, The commencement of a well, the conduct of other drilling operation, the com-
pletion of a well or of a dry hole, or the werotim of a producing well on the pooled area, shall be considered for oil pu s (except for royalty pur-
pousl the come as if sold well were located on, or such drilling operations woe conducted upon, the lands covered by this lease whether or not such well
is Iccoted upon, or such drilling operotions are conducted upon, soid lands. Lessee may terminate any pooling effected pursuant hereto at any time
the pooled unit is not producing and no drilling operotim, are being conducted thereon by executing ord tiling of record in the county or counties in
who h the pooled area is located a written derloranon of the termination of such pooling, provided that the pooling of all interests net covered by this lease
which comprise a part of such pooled unit be also terminated in some effective manner.
Lessee shall hove the right to use, free of cost, oil, gas and water produced-"m said land for its operosioro thereon except water from wells of lessor.
Lessee shall hove the right of any time to remove all machinery, and fixtures .placed on said premises, including the right to draw and remove .casing.
No part of the surface of the leased premises shall, without the'ivriftsn consent of lessee, be let, granted or licensed by lessor to any other party or the
location, construction or monn inteocs of structures, tanks, pits, reservoirs, equipment, .or: machinery to. be.used for the purpose of exploring, developing
at operating adjacent lands for oil, gas or other minerals.
Lessee shall bury below plow bepth Its pipe lines on the leased premises when requested,by o lessor owning on interest In the $.does. No welt "I
be drilled nearer than 2DO feet to any house or born now on said premises without the written consent of the eraser of the surface an which such house
or born is located. Lessee shall pay for damages to growing crops caused by its operations on said lads.
lassar hereby warrants and agrees to defend the* title to the lords herein described but if the interest of lessor- covered by this Mate- isexpri ily,
. Noted to be less then the entire fee or mineral estate, lessor's worronty shall be limited to the interest so stated. Lessee may purchase or lease the rights
of any porty claiming my interest in said land and exercise such rights as may be obtained thereby but lessee shall not suffer any forfeiture nor incur
"any go
to lessor by reason thereof. Lessee shall hove the -fight at any time to poy'for lessor, any mortgage, taxes or other lien an mid lands, in the
event of defoult of payment by lessor, and be subnogoted to the rights of the holder thereof, and any such payments made by lessee for lease may be
deducted from airy amounts of money which may be— due lessor under this lease. -
All express provisions and implied' covenants of this lease shell be subject to allapplicablelows, governmental 'order, rules and regulation. This
koseshaft not be terminated in whole or in part her lessee held liable in domtpes, bemuse of a .temporary cnsetion of production or of drilling operations
m
" duef.to breakdown of equipent.or due to the repairing of t well or wells, or becwat of foilosre to comply with any of the express provisions of implied
covenants of this lease if such foilure,is. the result of the exercise of governmental authority,. war, armed hostilities, lock of mtirkn, act of God strike; -
civil disturbance, fire explosion, flood'or orry.other couse: reasonably beyond:. the ,eontrolYof.iesses
This "kose and all provision; •thereof .shall be opolicoble to and rf
pp n upon tns. Shout an their respective f thepa tied asstpro. Reference hen.
n ro ease this lessee shall ll nevo reference bi their respective arty or p and exec is Should any one a more of the gentles homed above as lessors
not execute this lease, it .shall heverflsekss be binding upon the party a parties execufep the some. - -
Notwithstanding. anything .herein:.to the,.,,contrary, .. it 3s expressly provided
that. Lessee shall not enter_:upon any' part' of the surface.. ofthe: land
herein lease$- for" any purpose....
AN WITNESS WHEREOF,this-kaw Is exeatted as of theday and yeor first above written; -- `
Attl38.- �e City,-._of':Lubbock-__--
t.................-
_ t
&l.
elyn fga k es , Mayor` '-'_
City See reta-ry-Treasu er
ACKNOWLEDGMENT
THE STATE OF
COUNTY OF BEFORE ME, the undersigned authority,
...__.... ._.......
in and for said County, Texas, on this day personally appeared .................. i_ .
...................................................................................._.........._._...............I........ ............. _ ._._
known to me to be the.plxxon.......:whose name ....................subccrlbed to the foregoing instrument, and acknowledged to me that
.-he ... _•,,executed'the same for. the purposes and consideration therein expressed.' ' ' e _
GIVEN UNDER MY HAND AND SEAL OF OFFICE, This ...__ ..........:....day of......—..._..........
A.D.19..._.__
........ ...... .
Notary Public; ...-:. ....... .......... __.. County
i". My Commission Expires
ACKNOWLEDGMENT
THE STATE OF - -
undersigned BEFORE ME, the authority, * •-
': .war• L ,r,,.. ... � ,..' '.
In and for said County, Texas; on this day personal appesre'd
f known to me to be the person.. whose Hama .,..:,subscribed to the foregoing instrument, and acknowledged to me that
.:
...he.i :_:executed the same for the purposes and eonakleration therein espeeasld. ly, CG ` C
bIVEN UNDER MY HAND AND SEAL OF OFFICE, Title. :. day of......_ ......:r , A D..19.. .�
_.......... .... _ _ _ . _ ....
Notary Public,
My Commission Expires
• •-- • CORPORATION ACKNOWLEDGMENT ..
THE STATE OF Teyxas , BEFORE ME, the undersigned anti>o>its,
COUNTY OF_ .._,_A:IU�) V—P._ ` � . _
in and for said County. Texas, on this day personally appeared Dirk West, Mayo I'_s._
-� ,known to me to be the person and officer
whose�t[aftie •is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said
1'he j[ %3+Ilbbion$,_a Muni cipaL_
_iI:" ation, and that he executed the same as the act of such corporation for the purposes and consideration therein
exp><essed'o" and in the capacity therein stated.
GIVEN UNDER MY'HAND AND SEAL OF OFFIC ,� A.D. 19 e?
_ • Notary u iG, _ County,
w My Cotnzn ion Expires
�. tale.. Kern.. Nebr. •fhuiucers'88—br. TEXAS aU OIL AND GAS LEASE
-
'11.71) - (Paid -up Lease —.No Delay Rentals), -
,THIS AGREEMENT mode one anteed into thh - l day of - Septedbe sex..,, -�, IV7 by one between
the Cty_of _ubbock,-_s "Munici al Cor oration
afLubbock County, TexaB henmof»r called lessor [whether one a more), and
The Alll%_Company w, _ ,;afAPott�e^r-county. Texas; hereinafter called lessee;
WITNESSETH: that lessor, for and In consideration at.. ..Ten...ansi...:nQ/.J.k/S!._-- ---- DOLLARS IS 10,00 -_).
.. in hard paid, receipt of which is hereby acknowledged and of the ogrNmenh of lessee hereirwher set -forth hereby ,9=,s, demises, bases and lets
exclusively unto said lessee the fonds hereinafter described for this purpose of prospectmp exploring by. Geophysical and other methods, driliij, mining, -
t operating for sand producing oil or gas, or both, including, but not as
o limitation, cmslnghead gas, Cearngheod goaline, gos-condensate idistiilate) and
- any substance, whether slmilor w drssrmslar, produced in a gaseous state, togetherwith the right to consrnxt and maintain pipe lines, telephone and elec-
trig linear looks, Gowen, ponds, roadways, plonk, equipment, and structures Im—n'to produce, save and take core of saidoiland pas, and the exclusive -
- rightto inject dirgos,wate,brine andother•hluids"from any' source` into the subsurface strata and any and all other tights and privileges necessary, in-
cident to, or convenient for the ecommrcol operation of said land, olone or :conjointly with neighboring land, for the production, loving and taking care icf
oil and
l gas and the injection of air, gas, water, brine, and other files+fds into the subsurface strata, said. lands being situated in the County of
IA N__O3r.4.i.. �-.Store of.+.. Texa P-,L.. .. and beirp described as follows, to -wit:
A tract._of land out of -Sections -sand W...-Block So G.C.i§cSeF. Ry. Co. Survey,
Lubbock .County; !Texas;=.describedi,,by, metes and bounds as •follows::.
A'vo3nnitns-fl+--+i,,o'Nrirthwo`a•h rernAr'ef�"ssi'ld''SeCtion-1L RAMP_ t1PiTIC 'thth -
No rt
.Theme
TYao.�
Thence' No
Thence No
135" East, 517 _ eet�to;_the Horth Right-or-i
sterlY 'alowr ttie higttti-or-Way of 1.00p"Z J9 a cnora distance
West 31+�7 feet—• roc_
9c17 25 E�f — ast�179 "eel -._ o tie ace . o _. egTn— Uri— ... ...:
of Section--:.-'--'-....__�'-.'-._".., Township--�-.-- _�__.`-_.-.-.-_., Range_ ___._.. .., it being the purpose and intent of kisser
to loose, and lessor does hereby loose, all of the lands or interests in fonds owned by lessor which adjoin the lands ppabove described or which lie in the sec.
. Lion or sections herein specified. For op purposes of this lame, said lands shall be deemed to contain.— y'_+.2.V—acres. -
Subject to the other provisions herein contained, this lease shall remain in force for a term cf—_5.__yeors from this date ,(herein tolled
"primary term") and as long thereafter as oil and pas, or either of them, is produced from the above described land or drilling operations are continuously
prosewted,as hereinafter provided. "Drilling operations" includes cperaticns for the drilling of o new, well, the reworking, deepening or plugging back of
a wall or hole or other operations conducted n an effort to obtain or e-estcblish production of oil or gas; and drilling operations shall be considered to
be
"continuously prosecuted" if not more Mon 60.doys Noll elapse between the completion or abandonment of one well or hale and the commencement
of drilling operotim. an another well or hole. If, of the expiration of the primary term of this lease, oil or gos is not being produced from the above
described land but lessee is them engaged in drilling operations, this lease shall continue in force to long as drillmg operations ore Cantinuousy prosecuted;
and if production of oil or gas results from any such drilling operations, this loose stall continue in force a long as oil or gas shall be produced. If, oho
the expiration of the primary term of this lease, production from the above described land should cease, this lease shall not terminate If lessee is then
prosecuting drilling operations, or within 60 days after each such cessation of production commences drilling operations, and this lease shall remain in force
along
as such operations ore continuously prosecuted, and if production results therefrom, then as long thereafter os oil or gos is produced from the
above described tend.
In consideration of the premises, lessee covenants and agrees:
let. To deliver, free of Cost, to lessor at the wells, or to The credit of lessor in the pipeline to which the wells may be connected, the equal oneaighth
(1/e) port of all oil and other liquid hydrocarbons produced and soved from the lapsed premises, or, at lessee's option, to pay to lessor for such one-
aiyhih (1/e) royalty The morko price of the well for such oil anm d other liquid hydrocorboof like grade and gravity prevailing on the day such oil and
other liquid hydrocarbons are run from the lease.
god. To pay lessor ome ighth (1/g) of the proceeds received by lessee at the well for all gas (including all substances contained in such gas) produced
from the loosed premises and said by lessee; if wch p, s is used by lessee off the loosed premises or used by lessee for Me manufacture of casirgheod
gosolim or other products, to pay to lessor one-
eighth (t/e) of The prevailing market price at the well for the gos so used.
The consideration paid to lessor for this lease includes consideration in lieu of delay rental provisions and the rights and obligations of the parties
hereunder sholl be the same Cos
s if this lease contained provisions for the payment of periodic delay rattans throughout the primary term hereof and each
such delay rental had been timely paid and accepted by lessor. -
If a well Capable of producing gas or goo and gos-condensate in paying quontities heated on the leased ,premises (at an acreage pooled or cormli-
dated with all or o portion of the leased premises into o unit for the drilling or operatign of such well) is at any time shut in and no a" or
gos-condensate
Therefrom is said or used off the premises or for the manufacture of gasoline or other products, nevertheless such shut-in well shelf be deemed to be a well
an Me leased premises producing gas in paying quantities and this lease will continue in force during all of the time or times while such well is a shut in,
whether before or after the expiration of the primary term hereof. Lessee sholl use reasonable diligence to monket gas or gas and gestondmwt* ce is
of being produced from such shut-in well but shall be under no obligation to market such products under terms, conditions or circumstances which, in
losses's judgment exercised in good faith, are unatisfectory. Lessee shall be obligated to pay or tender to lessor within e5 days after the expiration of
each period of one year in length lannual period) during which such well is so shut in, as royalty, an Amount equal to $1.00 per acre for the acreage
covered by this lea. os to which the leasehold rights ore, at the and of such annual period, owned by the lessee making such payment; provided that, if
lessor owns feu than the twit and entire royalty i forest in such ocrempe, such payments shall be such port 1Calculotad on o roya lty1cro basis) of wed
amount os lessor's royalty interest been ro the twit and mtire royalty interest in such acreage; and provided further shot, if pas or gigs -condensate from
such
well is sold or used as aforesaid before the and of any such annuol period, or if, of the and of any such annual period, this lease is being maintained
m force and effect otherwise than by reason of such shut-in well, -lessee shall not be obligated to pay or tender, for that porticular annual period, said
sum of matey. Such Payment shall be deemed o royaly under all provisions of this lease. Such payment may be made or tendered to lessor or to lesser's
Texas Co erce Bank' T
credit Ili the ` �.�i �_�..y:_.Bankatw+iibb.Q.f�'.k�Texass�"�„'_„
which bonli and its wcceswn shall continue at the `depository regardless of Charges in the ownership of said land or the right to receive royalty hereunder..
Royalty ownership as of the lost day of wch such o=1. period es Chown by'lessro's records shall gown the determination of the party or -parties en-
:: titled to receive such Payment. _... ,..:F -, , .,.. .. .:. _...
- _.set...... , ., - F1 li ..
If lessor owns a less interest in the land covered bisy thIacono than the entire aid undivided fee simple mineral estate therein, .then whether or not
such less interest is referred to or described herein, all neyolties herein provided shall be paid lessor only in The proportion (Calculated on a royalty -acre
basis) which the royalty, interest owned by him in said land, bears to the full and entire royalty interest in mid land. ....
If the estate of either party hereto is assigned or sublet, and the privilege of assigning or subletting in whole or in port is expressly allowed, the ex-
n and a an
implied covenants hereof shall extend to sublessees, successors and assigns of the parties; and in the event of an assignment or subletting
pblessee, lessee sholl be relieved and discharged as to the ]""I dd rights ossigned or sublet from any liability to lessor thereafter accruing upon y
aMe covenants or conditions of this lose, either express w implied. No change in the ownership of the land or royalties, however accomplished, shall
operate to enlarge the obligations or diminish the rights of lessee or require -Perot. meowring or installation of .Perot* tanks by lessee. Notwithstanding
any actual or constructive knowledge of or notice to lessee, no change in the ownership of said land or of the right to receive royalties hereunder, or of
any interest thereon, whether by roman of death, conveyance or any other matter, Nall be binding on lessee (except at lessee's option in any particular
case) until 90 days after lessee has been furnished written notice thereof, and the supporting information hereinafter referred to, by the party claiming as
o result of such change in ownership o interest. Such notice shall be supported by original or ttrtifitd copies of all document and other instruments or
proceedings necessary to lessee's opinion to establish the ownership of the claimingparty.
Lessee may, at any time, execute and deliver to lessor or place of record a rel*ose covering :eft or any.port of the acreage embraced in the loosed
premises or covering any one a more zones, formations or depths underlying all or any part of such acreage, and therouptsrt sltoll be relieved of oil obli. -
actions Thereafter to accrue with respect to the oaepge. zones, fomatims or depths Covered by wch+eleose..:,. .. .. _
Lessee is granted the right, from time to time while this lease is in force, to pool into o separate operating unit ar units all or any port of the Ionic!Covered by this lease with otherland, lease or [cases, or interest therein (whether wch other interests ore pooled by o voluntary agreement on the part
�:.of the owners Thereof or by the exercise of a right to pool by the lessees thereof), when in lessee's judgment it is necessary or advisable in order to pro—
mote conservation, to properly develop or operate the land and interests to be pooled, or to obtain a multiple production, allowable from any governmental
agency having Control over such matters. Any pooling hereunder may cover oil oil and gas, or any one or mare -of -the substances covered by this lease,
and may cover one or more or all zones or formations underlying all or any portion or portions of the loosed premises. Any unit formed by such pooling
shell be of abutting or cornering tracts and shall not exceed 6e0 acres (plus a tolerance of 10%) for am or gm -condensate and shall not exceed 8D acres
(plus a tolerance of J_0%) for any other substance covered by this lease; provided that if any governmental regulation or order shell prescribe o spacing
patt*m for the development of a field wherein the obese described land, or a portico thereof, is located, or climate a producing allowable based on oc1T
per well, then any such unit may embrace m much odditionol acreage as may be so prescribed on os may be permitted wch allocation of ollowoble. The
ores pooled and the zones or formations and substonces pooled shall be set forth by lessee in a- "declaration of pool in in filed for record in the county or
counties - which the pooled ores is located. Such pooling sholl be *tractive on the dote such declaration is filed un?ess a later effective dote is specified
in such declaration. in lieu of the royolties elsewhere herein specified, except shut-in got well royolties, loser shall receive an production from an area
x-
so pooled only such portion of the royalties which, in the absence of such Occhrig, would be payable hereunder to lessor on product— from the land
covered by this lease which is placed in the pooled area as the amount of the surface acreage in the land covered by this lea- which is Sicced in the
pooled area peon to the orn l f of the surface aoeoge Of the entire pooled onto. Nothing herein contained shall outhorile or effect any transfer of any
title to any leosehold, royalty or other interest pooled pursuant hereto. The ccrmnencement of a well, the conduct of other drilling operations, the carn.
pletion of o well or of o dry hole, or the operation of o producing well On the pooled area, shall be considered for oil purposes (except for royalty Put -
poses) the some m if said well were located on, or such drilling operations were conducted upon, the lands covered by this lease whether Or not such well
as fcceted upon, Or such drilling operations are Conducted uppn,. said lands. Lessee 'may termterminate any pooling effected pursuant hereto or any time
the pooled unit is not producing and no drilling operations ore being conducted thereon by executing and filing of record in the county or counties in
which the pooled area is located o written declaration Of the termination of SUCH pooling, provided that the pooling of all interests not covered by this lease
which comprise a port of such pooled unit be also terminated in some effective manner.
e shall hove the right to use, free
Lesseof cost, oil, gas .and water -produced an said bird for its operations thereon except water hont wells of lessor.
Lessee shall have the right at any time to remold all machinery and fixtures placed an said premises, including the right to pamov (Raw and ree casing.
No part of the surface of the $eased premises shall, without the written consent of lessee, be let, granted or licensed by lessor to ony other party fa the
lccotion, construction or moinrenance of structures, tanks, pas, reservoirs, equipment, Or machinery to be used for the purpose of exploring, developing
or operating adjacent lands for oil, Vol or other minerals. - -
Lessee shall bury below plow bepth its pipe fines On the leased premises whkn requested,by a lessor owning on interest is the sufloce. No wall pall
be drilled nearer than 2DO feet to any house or born now on mid premises without the written consent of the owner of the surface an which such house
or born is located. Lessee shall pay for damages to growing crops caused by its Operations on said lands. -
Lesser hereby warrants and agrees to defend the title to the lands herein described"but if the interest of lessor covered by this lam is expressly
stated to be less than the entire lee or mineral estate, lessor's warranty shall be limited to the interest Sostated. -Lessee may purchase or Inou the rights
of my party claiming my interest in mid land and exercise such rights as may be obtained thereby but lessee shall not suffer my forfeiture nor incur
any liability to lessor by mown thereof. Lessee shall hove the ilght at any time to pay for lessor, any mortgage, taxes of. other lien On'bid lands, in the
event of default of payment by lessor, and be subrogoted to the rights of the holder thereof, and any such payments mode. by Insure far time may be
deducted from any amounts of money which may become due lessor under this lease.All express provisions and implied covenants of this lease shall be wbiect to oil applicable laws, governmental alders, rules and regulations, .This
lease Salt not be terminated in whale or in part, nor lessee held lioble in damages,. because of a temporary cessation of production or of drilling operations
due to breakdown of equipment or due to the repairing of a well or wells, or because of failure to comply with any of the express provisions or implied
covenants of this lease if such failure is the result of the exercise of governmental authority. wor, armed hostilities, lock of market, Oct of iod strike,
civil disturbance, fire, explosion, flood or any;other cause. reasonably, beyond the control .of, lessee.
This lease and oft provisions :.thereof sholf`be',opplicoble to and hinding upon the parties and their respective successors and assigns.. Reference here -a • .
in to lessor and lessee shall include reference to their respective successors and assigrro_ Should any one or more of the parties named above as lessors
not execute this lea-, it shall nevertheless be binding upon the party or porkies executing the some.
Notwithstanding anything.herein to the_contrary, It is expressly provided
that Lessee. shall _not enter.upon any part of the surfaee;of the,land
herein. leased for any"r'purpose..,
tN WITNESS.WMEREO;'•this.kafe:S.Spat:trfed,trs of the doy- grid:year.first above written F"-
Atte.€�.._�..:.:..._._�:..._:__ _: �...__: ... The:•C.ity. Qf:.Lubb..o��_.�_..___.-__,_ ,...
= by: irk West- Mayor
Evel�in Ga fg
Cityzecretary--tress er
ACKNOWLEDGMENT
THE STATE OF
COUNTY OFs... BEFORE ME, the undersigned authority,
... .....
in and for said County, Texas, on this day personally appeared........_ :_...:......... _........... _.-_........................... _..............................
............................................... ........................................................... »........................................................... :........... ................. .... ............ ..._._
known to me to be the person ........ whose name... .............. ;..subscribed to the foregoing instrument, and acknowledged to me that
le.. —...executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, This ....... ...............day of ........ ...... ....... ............ A.D.19........_. .
...... ........ ............ _ ......... - ...... _..._.......... .......»..._..... _ __ _ _
Notary. Public, .... ................. _................... _ County,
My Commission Expires.
r..:..I ACKNOWLEDGMENT
THE STATE BEFORE ME, the undersigned authority,
COUNTY OF.. ...........
In and.for said County, Texas; on this day personally appeared..' ._ ....._ _ _:. _ _. ». _..:.... .....».__ .»..
..._....... .. ........ .
known to me to be the person ......whose name _. .:.eubseribed to the foregoing instrument, and acknowledged to me that
he:..„:. executed the same for the purposes and consideration therein expressed. -
GIVEN UNDER MY HAND AND SEAL OF OFFICE, This.
:.: .::. day _ .. a
-.
o ..:.. A.D 19
r .. .... Notary Publse, _ _.. ...County, .
My Commission. Expires
CORPORATION ACKNOWLEDGMENT
THE STATE OF.,Texas .
COUNTY OF__ .... Tru�bo �. ,>. t
' BEFORE: ME the undersigned authority,
in and for said -County, Texas, on this. day personally appeared... DIXk West ..Mayo r, ,
c ..known to me to be. the person and officer
whose came is-au�sar4*d-.to the foregoing instrument and acknowledged to me that the same was the act of the said
wrap Qon;-and that he -executed the same as the ale of such corporation for the purposes and consideration therein
expresiela sshd in the capacity therein stated..' �
Q*EN UNDER MY -HAND AND SEAL OF OFFI �� _day A.D. 19"
Notary P c, — County,
My Commission Expires __! �_).�-- ........-•---
THE ALZ.SPAVCiI-2 COA6PANY O IL AND GAS PROPIRTI ES
1715 AMERICAN NATIONAL BANK BUILDING
806/373-9481
P. O. BOX 2544 c AMARILLO, TEXAS 79105
September 7, 1979
Mr. Worth Fullingim
Assistant City Attorney
City of Lubbock
Box 2000
Lubbock, Texas 79457
Re: 38.58 acre tract out of Section 4,
& 4.428 acre tract out of Sections
3 & 4, Block S, G.C.& S.F. Ry. Co.
Survey, Lubbock County, Texas.
Dear i•.r. Fullingim,
Please find enclosed the original 011 and Gas Leases which cover
the above captioned tracts of land. If the acknowledgments or
signature lines do not meet with your approval, please alter them
so that they will be correct.
I have also enclosed a collection draft payable to the City of
Lubbock in the amount of 01509.58. This is the remaining 90% of
the bonus and delay rental payments due under these 2 leases.
After Mayor West and Ms. Gaffga have executed the leasesand :Mayor
West's acknowledgments have been taken, have the perso with
authority endorse the collection draft. Then take the draft and
the executed leases to the Collections Desk of the Texas Commerce
Bank of Lubbock and deposit them for collection though our bank
The First National Bank of Amarillo. Please instruct your bank to
use the enclosed self-addressed, stamped envelope to forward these
documents and draft to our bank. Its purpose is to avoid damage
to these leases by our banks automatic letter opener.
Should you have any questions, please call me. Thank you for your
consideration in this matter.
ai¢_ra7TC»
3HS,
ery oLiA trulV.Camp
ours,
V` �-!,
Phillips 11, Jr.
VOW seiel •ell!"'V
tcct ■oa '0 •d
)lung 1ouo11oN tsn3 an `nZ1H1
Auedu100 46neds111y ayl
fo 4uno»o alit 01 06L0Y puo panlaz)w anl0A
6 S ----6 S ,o0 Ad _d
'SVOID IS 40019 '+� '8 suol,4oes jo 1no 4oasi ejo-e 8zit'tt VP 401314 9JOu 89.9C
:BU1Jan03 asoal SOD pu0 110 J01 u0l40J8plsu07
Sadlloa----------------------------p p >3 : pi pespunu till Puss oq 10
-li14T07-30 Z13ab0 3H1 01 AW
-.lop cep ueNq Ilo,. e{ p.jges leu yap s!gsYhV gBls -oil sAop—eT—'u!gl!"" •eU!1 10 toes•ddo el vH9^s •Pled eq e1
-`Y _ A� •---t��— a- Bs dB�I 5016L SVX31 'OIIIXWV •bfSL X09 'O '17�
C7f+ X �tS7a37'�OC S3rJI1TadB'-S'-S7a 3HS
ON lwaa N01031103 " -
"NOTICE OF INTENTION OF
- -�_ • f'-"""'" CITY OF LUBBOCK TO LEASE LAND FOR
r OIL AND GAS MINERAL DEVELOPMENT
Notice is hereby given that the City of Lubbock determines that it
is advisable to lease land, owned by it and hereinafter described, for
oil and gas" mineral development, and said City hereby intends to so
_ __lease the following described -tracts of land containing 38.58 acres, and
4.428-acres respective ly,_to-wit:-
- -
-..- ......_. TRACT 1 - _...__::::.. .. _ ._ .:.... c-.•r. :..
___—_.... ...._:_.. �-Ctract:of- land -out of the-'Southea'sf part -of Section-4, Block S,•`- --
$:$.R Co....Surve Lubbock Count Texas, being i part -
- -. Y� Y..: .. Y..
-= - of_Tract 8, S. L -Johnson Subdivision of said Section-4 and being.-
--' - --more, particularly- described,,as..follows:
__- _"1EGINNING at• a.3/.2" _iron:pipe set':South.89° 16' 'West:1264.9-feet _
-- --- :from the. Sotheast:, corner.;of,- said. Section 4, for the" Southeast 'and.:-.
..
u— _
r_:1ie :corneof=his:asact,
g3nningT -- - - -_'- - -
- — ---- THENCE South--89 162"West-a433.99 feet -to a 3/4".iron pipe
_... ...
--- -- ---••_ -for : them-.Southwest-corner_of this tract;''-
-__
:.�=:�...• ,....:_._:" THENCE .North 0. "44__West T065.2 feet t6;9..1/2 .iron. pipe set._..-
_ 1n the South right-of-way.line of U.S. Highway No. 84mfor the .
-Northwest corner of this tract; _
....:.THENCE South 730 37'. East along said highway right-of-way, a
of 2546.14 feet .to a 1/2" iron pipe set for the Northeast,
corner of -this tract; _ - _ _ _
-_ - THENCE South 0° 501- 49".. East 315.82 feet -to the PLACE=OF BEGINNING._-==
1 6
i
JWF:yb
THENCE South 0° 50' 49" East 315.82 feet to the PLACE OF BEGINNING.
TRACT 2
4.428 acres of land out- of Sections-- 3 and- 4, Block S, Lubbock..---... .
1 County; Texas; described by metes-•ah'd-bounds as follows:
_... -
BEGINNING at N.W. corner of Sec. 4, Block S,"same.being N.E.
I. ..corner of Sec. 3, Block-S, in'Lubbock..County, Texas;
:THENCE North 89° 17' 25" East, 150 feet; - 7
-THENCE South 0' 42' 35" East, 517 feet to North R-O-W of -
Loop 289;
THENCE Southwesterly along the Loop R-0-W a chord distance of
feet;::.._:: :. -: .. _. .... .
THENCE North 0':421 35" West 648.7 feet;
THENCE North 89' 17'•-25" East 179 feet to the PLACE OF BEGINNING..
The lease shall contain the following Clause "Not withstanding anything
herein to the contrary it is expressly provided that Lessee shall not -enter upon
any part of the surface of the land hereia leased for any purpose"
Written bid proposals should be submitted by United States mail addressed to:
- Denzel Percifull, Director•of Public Services of City of Lubbock, P O Box 2000
Lubbock, Texas 79457, and mailed in sufficient time to reach said,adressee before
bid closing time as hereinafter stated.
:-Such written - _ - • - - _bid proposals should contain the following: -•=:•'
A statement as_.to the --number of_ years for the primary term
. :..
.:...of the"cease proposed b the bidder, which -
-= - _ Y_.- , primary term cannot_ _
_;exceed -10. years _under -Article 71.010-of- the Natural 'Resources -
- =
Code of .the ".State of=Texasc: =..-
::_�:.
: --;;=_-.- 2 The bonus -cash :considerationper -acre proposed 'to be -
for the lease _The . delay 'rental consideration to .be paid.
annually under _the-
--:
_ - _ _ :•3) ` The amount: ofroyalty.:which -is proposed to be` retained ---
-'_-'The 'City_of' I_pbboc_.must._be not,less .than one-eight_loyalty —
--'--- - under Arf3cle 71:009�of the.Natural Resources Code=of the�$tate..
-
cashier. cheek payable to the pity of-3.ubbock =3n ttie - = -
_ _ - - __ amount�f::aOX:•of_ the=totahf the --bonusand` delay ientals -for
- 3-be entire primary: tezm=of ahe lease' to"be applied on. the •-_ -
- - ---
••- - ----• - _3ease payment _if the_bidder:, is the successful bidde=' otheiwise-- �-�•- --
-- - = acid bid deposit shall be' returned to' -the bidder if :the' bidder
_._:..�_:•: ..:. . _ . =3s unsuccessful.•,... _ .._..... __.
I 1!
r I� jwf;yb
(5) The,'primary.term for the proposed lease should be stated
(not to exceed ten years as provided by law).
The=City of .Lubbock reserves the right to.reject any and all bids. --The
City of Lubbock will `close All bidding at 4:00 'oklock P.M. on the 4th.. day of -
%September,-1979., - -and- will -'thereafter conduct a- public -hearing to consider. such_:;,
bids at '11:06 o'clock`A:M.'*'on-:13th day of. -September, 1979,-Im--City--Council
Chambers'at City Hali,_Lubbock, Texas, and thereafter -consider the awarding
_.
of at-said•:tune and date._ -:.The successful bidder will then execute==-
. ... ---....._. .- - --- ..
sa_ id oil .,.. g as _and.__other minerals Tleate with said- City on form satisfactory
to the City Attorney" Lnd-liF.compliance-with -this notice, the- successful -bid;
and payment of 'balance of the lease bonus payment then due
The successful bidder -lessee would have to pool the lands hereinabove
described with adjacent lands also leased for oil and gas mineral development__.
in. -order to drill fora well -because entry .upon the lands hereinabove described
.for'such purposes (or any purpose) as shown by. -the Clause with respect.to entry .
:hereinabove required to be 4nseried in the lease. _
Pooling as regard mun44palities is authorized by Section 711.052 of the
___Natural Resources Code of the State of Texas. This proposed lease is not
concerned with coal and lignite, andshall be applicable thereto.•
This Notice is executed this.9th day of August, 1979.
7.
- Dirk West, Mayor
Evelyn Ga ga, City Sec tary-Treasurer"
Bvelya Gaff PURCHASE REQUISITION G
REG. BY Sa CITY'OF "LUEM012July 3 79K DATE
TO PURCHASING DEPT. — Purchase the Following Goods to be Delivered
Lubbockvaanche Journal Location
T AlChg. Accct.ct.NN
o. 1003-413434
. QUANTITY
DESCRIPTION: brand, Catalog No., Size, Wt.
Unit Cost
Total Cos.
Item No.
Need
NOTICE OF PUMC HEARING . , . _ .. 17 "g .9.
Adva
PUME CALL V= ODSTS An COMPOMD-. .
(Lease of land for oil and aineral development)_,_. .....,
,,...
FOR PURCHASING DEPT.
roTAL
Terms - F. O. B
Delivery
Pricing
P. 0. NO. j BID NO. I APPPROYED I' BUDGET
2
3
4
S
6
1-1-1