HomeMy WebLinkAboutResolution - 2005-R0251 - Street And Alley Use License - Texland Petroleum LP - Secondary Oil Recovery - 06/23/2005Resolution No. 2005-RO251
June 23, 2005
Item 20
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the C'ty 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 for secondary oil recovery operations, between the City of Lubbock
and Texland Petroleum, L.P.; and related documents. Said Contract is attached hereto
and incorporated in this resolution as if fully set forth herein and shall be included in the
minutes of the City Council.
Passed by the City Council this 23rd day
ATTEST:
Reb cca Garza, City Secretary
APPROVED AS TO CONTENT:
Ed Bucy, Right of Way AgoWit
APPROVED AS TO FORM:
Linda Chamales, Senior Attorney/Office Practice
gs/:ccdocs/AULic-Texland Petroleum LP
May 11, 2005
Resolution No. 2005-RO251
STREET AND ALLEY USE LICENSE
THE STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK
This License made this 23rd day of J , 2005, being the
date of this Agreement between the CITY OF LUBBOCK, TEXAS, a Home Rule Municipal
Corporation, and TEXLAND PETROLEUM, L.P. h:reinafter 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. LICENSE 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 Commission.
(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 pipeline 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.
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 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 days (30) notice to LICENSEE. Said notice shall be deemed properly served if
deposited in the post office, postage paid, addressed to LICENSEE at 777 Main Street, Suite
3240, Fort 'Worth, Texas 76102.
Upon the expiration or cancellation and revocation of this license by the CITY OF
LUBBOCK, or the abandonment of this license by the LICENSEE, the improvements that are
permitted under this license shall be removed by the LICENSEE and the property 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.
1. LICENSEE shall pay to the CITY OF LUBBOCK as compensation for such grant
the sum of FIVE THOUSAND EIGHT HUNDRED THIRTEEN ,AND 25/100 DOLLARS
($5,813.25) 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
may be changed for each succeeding five '3) year term by the CITY OF LUBBOCK to a 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 is not made, then the rate for
the preceding five (5) year term shall apply.
2. The LICENSEE agrees to pay all costs arising out of the exercise of this License
herein granted including, but not limited to, the cost of cleanup of any oil, hazardous substance,
or other material, the replacement and repair of paving, sidewalks and utilities of any nature
damaged as a result of the construction authorized by the License.
3. In the event the CITY OF LUBBOCK determines that the License herein granted
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, LICENSEE agrees to reimburse 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.
4. This License is not transferable by the LICENSEE without first receiving the
written consent of the City Manager of the CITY OF LUBBOCK.
5. This License is made subject to the condition that should the LICENSEE exercise
any right under this License and prepare or begin or complete any part of the construction as
herein contemplated across any or all of the above described property, then and in that event,
said LICENSEE, its successors and assigns, will at all time 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 and 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 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 contractors. The CITY OF LUBBOCK may further require any of said
contractors, when engaged in the construction, repair or maintenance 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 insurance assumed by said contractors 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.
STREET & ALLEY USE LICENSE
TEXLAND PETROLEUM, INC.
6. 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.
7. 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 and contractors 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 or 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 four (4).
8. 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 public way it is
permitted to use hereby and agrees to give peaceful possession of said property covered herein
upon termination or cancellation of this license. No interest for real property is conveyed or
granted by this License.
ATTEST:
Reb cca Garza, City Secretary
APPROVED AS TO CONTENT:
Ed Bucy, Right -of -Way Agent
APPROVED AS TO FORM:
Linda Chamales
Senior Attorney/Office Practice
CITY OF LUBBOCK
AGREED TO AND ACCEPTED this 23rd day of June , 2005.
LICENSEE: TEXLAND PETROLEUM, L.F.
By:_ /497>' 4"- "�
Robert J. Schumacher
Title: Chairman of the Board
STREET & ALLEY USE LICENSE
TExLAND PETROLEUM, INC.
THE STATE OF TEXAS
COUNTY OF LUBBOCK
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared Marc McDougal, Mayor of the City of Lubbock, 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.
GIVE ODER MY HAND AND SEAL OF OFFICE this, day
01 \,& , 2005.
Notary Public in and for the State of Texas
PAT KIDD
• Notani Public, Slate of Texas
� � �{r` hF.y t'lonNrnssio� Expires fl3-28.2009
THE STATE OF TEXAS
COUNTY OF
My Commission Expires:
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared ' ,O bei J. o�C.ht v,�ei.h t %
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 as an act and deed of said TEXLAND PETROLEUM,
GIVEN UNDER MY HAND AND SEAL OF OFFICE this -7 th day
of www. , 2005.
.� Notary Public in and for the State of Texas
so<ravaUc LEAH GURLEY
NOTARY PUBLIC My Commission Expires:
STATE OF TEXAS
Nr1 of�` My Comm. Expires 7-14-2006
gs/Cityatt/Georgia/Licenses/Street&Allcy Use Lic-Texland Petroleum Inc
May 11, 2005
STREET & ALLEY USE LICENSE
TEXLAND PETROLEUM, INC.
EXHIBIT " A "
Drawing Reference Number: 1
Street/R-O-W Name: Newcomb Street
Line Length: 411 L.F. (open cut)
Street/R-0 -W Conditions: Unimproved, dirt
Line Description: 2" fiberglass (2000 psi), TXLD Well #1
Line Location: Beginning in east line of Mesa Road (N. Avenue F) in the
centerline of Newcomb Street at Line Sta. 22+44, thence east
along the centerline of Newcomb Street 411 feet to the west line
of Avenue E at Line Sta. 26+55.
Drawing Reference Number: 2
Street/R-O-W Name: Ash Avenue
Line Length: 111 L.F. (bore)
Street/R-O-WConditions: 30 -foot paved with curb and gutter
Line Description: 2" fiberglass (2000 psi) carrier line, encased in 4" Sc. 40
PVC in 12" CMP bore casing, Riverlawn King #1
Line Location: Beginning in the east side of Ash Avenue approximately 315 feet
north of Ursuline Street at Line Sta. 6+80, thence southwesterly
1.11 feet across Ash Avenue,'Line Sta. 1+91, to a point in the
west side of Ash Avenue approximately 266 feet north of Ursuline
Street. `
Drawing Reference Number: 3
Street/R-O-W Name: Alley - Demarco Addition
Line Length: 459 feet (open cut)
Street/R-O-W Conditions: Unimproved, dirt
Line Description: 2" fiberglass (2000 psi), Riverlawn King #1
Line Location: Beginning at the north end of a 20 -foot alley, 15 feet east of
the northeast corner of Block 2, Demarco Addition, at Line Sta.
14+61, thence south along said 20 -foot alley 459 feet to the
north side of Tulane Street, Line Sta. 19+20.
Drawing Reference Number: 3
Street/R-O-W Name: Tul ane, Street
Line Length: 116 feet (open cut)
Street/R-O-W Conditions: Unimproved, dirt
Line Description: 2" fiberglass (2000 psi), Riverlawn King #1
Line Location: Beginning in the north side of Tulane Street approximately 70
feet east of the intersection of Park Lane in Riverlawn Addi-
tion, at Line Sta. 19+20, then south 20 feet, thence west along
Tulane Street 86 feet, thence South 10 feet to the south side of
Tulane Street in the intersection of Park Lane, at Line Sta.
20+36.
Drawing Reference Number: 3
Street/R-0-W Name: Park Lane - Riverlawn Addition
Line Length: 305 feet (open cut)
Street/R-O-W Conditions: Unimproved, dirt
Line Description: 2" fiberglass (2000 psi), Riverlawn King #1
Line Location: Beginning in the south side of Tulane Street at its intersection
with Park Lane, Line Sta. 20+36, thence south along the west
side of Park Lane 296 feet, thence west 9 feet to the west side
of Park Lane, Line Sta. 23+41.
Drawing Reference Number: 5
Street/R-O-W Name: North University Avenue (F.M. 1264)
Line Length: 110 feet (bore)
Street/R-O-W Conditions: Strip paved (52°), bar ditch
Line Description: 2" fiberglass (2000 psi) in 4" Sch. 40 PVC encased in 12" CMP
bore casing, Webb #3 Well
Line Location: Beginning in the east side of University Avenue approximately
120 feet north of intersection with Marlboro Street in Cresthill
Addition at Line Sta. 26+73, thence west 110 feet across
University Avenue to the west side at Line Sta. 26+83.
Drawing Reference Number: 6
Street/R-O-W Name: Owen Street
Line Length: 1,471 L.F. (open cut)
Street/R-O-W Conditions: Unimproved, dirt
Line Description: 4" fiberglass (2000 psi), East Satellite injection Station
Line Location: Beginning in the south side of Owen Street at the intersection
of Avenue E at Line Sta. 4+02, thence north across Owen Street
40 feet, thence east along Owen Street 1,431 feet to the west
right-of-way of U.S. 87 (I-27).
Drawing Reference Number: 7
Street/R-O-W Name: Yucca Lane
Line Length: 1,476 L.F. (1,305 L.F. open cut, 60 foot bore at Manioca, 66 foot
bore at Mesa Road, 45 foot bore at Yucca)
Street/R-O-W Conditions: Strip paved, no curb and gutter
Line Description: 2" fiberglass (2000 psi), 12" CMP bore casings, O'Hair Well
#2
Line Location: Beginning in the west line of Manioca Road at its intersection
with Yucca Lane at Line Sta. 66+81, thence east along Yucca Lane
1,431 feet, thence south across Yucca Lane 45 feet to the south
line of Yucca Lane at Line Sta. 81+57.
Drawing Reference Number: 9
Street/R-O-W Name: Kent
Line Length: 60 L.F. (bore)
Street/R-O-W Conditions: Strip paved, bar ditch
Line Description: 2" fiberglass in 4" Sch. 40 PVC and 4" fiberglass in 8" Sch.
40 PVC, encased in 16" CMP bore casing
Line Location: Beginning at the south line of Kent Street approximately 40 east
of east right-of-way I-27 at Line Sta. 147+51, thence north
across Kent Street 60 feet to its north line at Line Sta.
148+11.
Drawing Reference Number: 10
Street/R-O-W Name: Kent Street
Line Length: 100 L.F. (bore)
Street/R-O-W Conditions: Strip paved, bar ditch
Line Description: Six 2" fiberglass (2000 psi), each in 4" Sch. 40 PVC encased
in 16" CMP bore casings
Line Location: Beginning in the north line of Kent Street approximately 35 feet
east of east line of the P & SF RR at Line Sta. 4+95, thence
south across Kent Street 100 feet to its south line at Line Sta.
5+95.
Drawing Reference Number: 11
Street/R-O-W Name: Kent Street
Line Length: 80 L.F. (bore)
Street/R-O-W Conditions: Strip paved, no curb and gutter
Line Description: Two 2" fiberglass (2000 psi), each in 4" Sch. 40 PVC encased
in 12" CMP bore casings
Line Location: Beginning in the north lane of Kent Street approximately 1950
feet west of P & SF RR at Line Sta. 25+78, thence south across
Kent Street 80 feet to its south line at Line Sta. 26+58.
Drawing Reference Number: 12
Street/R-O-W Name: Kent Street
Line Length: 2,392 L.F. (2,312 L.F. open cut, 80 L.F. bore)
Street/R-O-W Conditions: Strip paved
Line Description: 2" fiberglass (2000 psi) in 4" Sch. 40 PVC (at bore) encased
in 12" CMP bore casing
Line Location: Beginning in the north right-of-way of Kent Street approximately
1,950 feet west of the P & SF RR at Line Sta. 0+00, thence west
along Kent Street 2,312 feet, thence south across Kent Street 80
feet to the south line.
Drawing Reference Number: 13
Street/ R -O -W Name: Yucca Lane
Line Length: 660 L.F. (open cut)
Street/ R -O -W Conditions: Strip Paved, no curb & gutter
Line Description: 3" low pressure production line- fiberglass (600 psi),
Lubbock Country Club #3
Line Location: Beginning in the north R -O -W of Yucca Lane at line station
0+00 ( sta. 8T+45 O'Hair Lateral), thence east along Yucca
Lane 650 feet, thence north 10 feet to the north line of
Yucca Lane at line station 6+60.
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Agenda Items and Comments - City Council Meeting for June 23, 2005 '"
Page 4
CITY OF LUBBOCK
ITEM #/SUBJECT:
## Consider a resolution authorizing the Mayor to execute a street and alley use
license with Texland Petroleum, L.P., for the use of dedicated streets and alleys
to construct and maintain underground pipelines for secondary recovery
operations for oil production (Kent Street east of University Avenue and
adjacent to the Lubbock Country Club area).
BACKGROUND/DISCUSSION:
In May of 1985, Texland Petroleum took out a 20 year street and alley use license
for 14 street and alley pipeline crossings in street and alley locations in the
Lubbock Country Club area (North I-27 and Yucca Lane) and Kent Street east of
University Avenue. In June of 1985, an amendment added three additional lines
to bring the total to 17. This license is expiring and Texland has requested to
renew the license for an additional 20 years. Three pipeline crossings have been
omitted from this original license reducing the total linear feet to 7,751 feet.
Texland will be charged for this new license as follows: $00.15 cents per foot X
7,751 feet = $1,162.65 per year or $5,813.25 each five-year term.
FISCAL IMPACT:
Income to the City of $1,162.65 per year.
SUMMARY/RECOMEDATION:
The Right -of -Way Department recommends the approval of this street and alley
use license renewal with Texland.
Ed Bucy
Right -of Way Agent