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Home My WebLink AboutResolution - 6571 - Oil Divison Order - Navjo Crude Oil Markerting Company - Navajo Property - 10/28/1999Resolution No. 6571 Oct. 28, 1999 Item NO. 16 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 an Oil Division Order, regarding Navajo property number 02243, Section 12 and 13, Block A, T.T. RR Co. Survey, by and between the City of Lubbock and Navajo Crude Oil Marketing Company, and any other related documents. Said Oil Division Order is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 28th day of October 1999. T MAYOR ATTEST: Khythtyarnell, City Secretary APPROVED AS TO CONTENT: Ed Bucy Right -of -Way Agent APPROVED AS71-044 . AZ'4� � 1 v`— Mchard K. Casner Natural Resources Attorney RKC:cp Cedoes/NavajoCrudeOilMarketingCoRes October 6. 1999 Resolution No. 6571 Oct. 28, 1999 Item No. 16 INDEMNIFYING NAVAJO CRUDE OIL MARKETING COMPANY OIL DIVISION ORDER To: Navajo Crude Oil Marketing Company Effective Date: June, 1999 P.O. Box 159, Artesia, NM 88211-0159 Telephone: (505) 748-3311 Fax: (505) 746-1211 Property Number/Name: #02243 - City of Lubbock Operator Name: H. L. Brown, Jr. Property Description: LUBBOCK COUNTY, TEXAS SECTION 12 & 13, BLOCK A, T.T. RR CO SURVEY Owner Name SEE ATTACHED DIVISION Owner Number: and Address: OF INTEREST EXHIBIT Type of Interest: Decimal Interest: PLEASE DO NOT DETACH The undersigned certifies the ownership of their decimal interest in production or proceeds as described herein payable by Navajo Crude Oil Marketing Company. Navajo Crude Oil Marketing Company shall be notified, in writing, of any change in ownership, decimal interest, or payment address. All such changes shall be effective the first day of the month following receipt of such notice. Navajo Crude Oil Marketing Company is authorized to withhold payment pending resolution of a title dispute or adverse claim asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and reimburse Payor any amount attributable to an interest to which the undersigned is not entitled. Navajo Crude Oil Marketing Company may accrue proceeds until the total amount equals $100.00 or pay annually if the amount is greater than $10.00, whichever occurs first, or as required by applicable state statue. This Division Order does not amend any lease or operating agreement between the undersigned or the lessee or operator or any other contracts for the purchase of oil and gas. In addition to the terms and conditions of this Division Order, the undersigned and the Payor may have certain statutory rights under the laws of the state in which the property is located. Special Clause r ATTEST: �yl� ( %/� Owner's Signature �- INDY SITTOIV, MYOR Kaythie Dan 11 - City Secretary Owner's SS#/Tax ID# 1-75-6000590-6 Owner's Daytime Telephone # (806)- 775-2352 Owner's Fax # (806) - 775-3074 Federal Law requires you furnish your Social Security or Taxpayer Identification Number. Failure to comply will result in 31% tax withholding and will not be refundable by Payor. ti. DATE: Tue Sep 07, 1999 HOLLY CORPORATION & SUBSIDIARIES TIME: 8:10:39 Division of Interest - Exhibit Lease: 00002243 Sub: Name: CITY OF LUBBOCK G/L Comp: 84 Division: 50 Period: 06-1999 Operator: 003135 Name: H L BROWN, JR Division Of Type Owner Name Interest Interest 001117 H L BROWN JR 0.59026560 WI P O BOX 2237 MIDLAND, TX 79702-2237 001117 H L BROWN JR 0.12500000 OR P O BOX 2237 MIDLAND, TX 79702-2237 034610':CITY OF LUBBOCK 0.16448440 RI ATTN ED BUCY RIGHT OF WAY AGENT P 0 BOX 2000 LUBBOCK, TX 79457-0001 034676 BERNIE BARASCH 0.01171880 WI 5432 78TH ST LUBBOCK, TX 794242802 034677 CAL FARLEY BOYS RANCH 0.06250000 RI P 0 BOX 1890 AMARILLO, TX 791740001 034678 MARTHA.L QUILLEN HARMON 0.02301560 RI 4918 94TH ST LUBBOCK, TX 460661717 034680 JOHN LOUIS QUILLEN 0.02301560 RI 12542 VALLEY HOME RD OAKDALE, CA 953619204 Interest Total: 1.00000000 REPORT: DC3 PAGE : . 1 Larry Hertel, City Engineer Agenda Items and Comments — City Council Meeting for October 28, 1999 Page 2 CITY OF LUBBOCK AGENDA ITEM SUMMARY ITEM #/SUBJECT: # Consider a resolution authorizing the Mayor to execute an oil division order with Navajo Crude Oil Marketing Company for the sale of crude oil in Sections 12 & 13, Block A, Lubbock County, Texas (North of Loop 289, West of University Avenue). BACKGROUND/DISCUSSION: In 1984, the City leased out their property in Sections 12 and 13, Block A (Burl Huffman Park Area) for oil exploration. Oil wells were drilled and production began. Since 1984, the purchaser of crude oil from these wells has changed several times and the most recent is Amoco. Amoco has now sold their interest to Navajo Crude Oil Marketing Company of Artesia, New Mexico and this division order will confirm this transfer. SUMMARY/RECOMMENDATION: The Right -of -Way Department recommends the approval of this division order.