HomeMy WebLinkAboutResolution - 2014-R0230 - Amendment To Surface Use Agreement - Yates Exploration Corp. - HLAS - 06/26/2014RESOLUTION
WHEREAS, in April of 1999, the City of Lubbock ("City") purchased the surface estate
to certain real property in Lynn County, Texas, commonly known as the Hancock Land
Application Site (the "HLAS");
WHEREAS, in connection with such purchase, the City acquired surface use agreements
from (i) the grantor of the surface of the HLAS (also an owner of an undivided interest in the
mineral estate); and (ii) other undivided owners of the mineral estate in all or part oi'the HLAS,
which provided for, among other things. the payment of damages and numerous restrictions upon
the use of the surface of the I I LAS by the mineral o wrierslmineral lessees;
WHEREAS, pursuant to that certain Surface Use Agreement (the "Original Agreement"),
dated on or about Jul) 12, 2011 by and between: the City and Yates Energy Corporation
("Yates"), Yates (the mineral lessee of certain portions of the HLAS), further stipulated to
limited permitted surface use activities and agreed upon the required damage payment for such
activities;
WHEREAS, Yates and the City desire to amend the Original Agreement by providing f'or
(i) increased surface damages; and (ii) notice of operations to the City, as concerns mineral
exploration and production activities; NOWTHEREFORE:
BE IT RESOLVED BY T IE 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 an Amendment of' Surface Use Agreement (the
"Amendment"), by and between the City of Lubbock and Yates Exploration Corporation. related
to use of the surface of the Ilancock Land Application Site in Lynn County, Texas liar mineral
exploration and production activities, and all related documents. Said Amendment is attached
hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the
minutes of the Council,
BE IT FURTHER RESOLVED:
THAT the City of Lubbock hereby ratifies, confirms and affirms the Original Agreement.
as amended hereby, in all respects and for all purposes.
Passed by the City Council June 26, 2014,
GL ROBERTSON, MAYOR
TTEST:
City
AS TO CONTENT:
AS TO FORM:
Casner, Assistant City Attorney
LSA
;.
June 17, 2014
City of Lubbock
Attention: Glen C. Robertson, Mayor
P.O. Box 2000
Lubbock, Texas 79457
Re: Amendment to Surface Use Agreement dated July 12, 2012
Ladies and Gentlemen:
This letter agreement (this "Amendment") amends that certain Letter Agreement dated July 12,
2012 (the "Surface Use Agreement"), by and between Yates Energy Corporation ("Yates") and the City
of Lubbock, regarding operations on Tracts 2 and 3 of League 4, Wilson County School Land, according
to the map or plat of the William D. Green Subdivision recorded in Vol. 57, Page 38, Deed Records of
Lynn County, Texas (the "Premises"), as follows:
1. For all new oil and gas wells drilled by Yates on the Premises, the payment described in
the first paragraph of the Surface Use Agreement for all damages associated with the drilling,
completion, equipping and operating of such wells, including but not limited to roads, locations, flow
lines, and electrical lines (collectively, the "General Damages Settlement"), shall be increased to $7,500
per well. For the avoidance of doubt, the General Damages Settlement does not cover damages related
to the possible installation of any tank batteries, the payment for which, if necessary, shall be made in
accordance with Paragraph 4.E of the Surface Use Agreement, or any actual damages resulting from
the failure of Yates to comply with its obligations under the Surface Use Agreement.
2. At least ten (10) days prior to the commencement of operations on each well to be drilled
by Yates on the Premises, Yates shall provide written notice of such operations to the City of Lubbock,
including a map showing the location of such well, and payment to the City of Lubbock of the General
Damages Settlement for such well. Yates hereby provides such notice as to the LCU #2 Well, and has
enclosed a map showing the location of such well, together with payment of $7,500.00 as full
satisfaction of the General Damages Settlement for such well.
To the extent the terms of this Amendment are in conflict, or inconsistent, with the terms of the
Surface Use Agreement, the terms and provisions of this Amendment shall control. Except as hereby
amended, all terms and provisions of the Surface Use Agreement (including the express prohibition of
occupancy or use of the Irrigated Area) shall remain unchanged and in full force and effect, and the
Surface Use Agreement is hereby adopted, ratified, and confirmed.
Yours very truly,
YATES ENERGY CORPORATION
Fred Yates
President
AGREED, ACCEPTED AND
PAYMENT ACKNOWLEDGED this of 2014.
CITY OF LUBBOCK, TEXAS
GLEN C/. ROBERTSON, MAYOR
ATTEST:
APPROVED AS T CONTENT:
i
ood ra in, City Engineer
APPROVED AST ORM:
Richard Casner, Assistant City Attorney
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