HomeMy WebLinkAboutResolution - 2208 - Ratification Of Pooling Agreement On Oil & Gas Lease With W.E. Medlock, Sr. - 12/12/1985MH:js
RESOLUTION
Resolution #2208
December 12, 1985
Agenda Item #41
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 Ratification
of a Pooling Agreement on an Oil & Gas Lease between the City of Lubbock
and W. E. Medlock, Sr., 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 12th
ATTEST:
, uity
APPROVED AS TO CONTENT:
&.a 0) A'444--' q 4,& -
Obert Massengale, As stent City
Manager for Financial Services
APPROVED AS TO FORM:
i
Michele Xiart, ssistant City Attorney
A- .,R December 1GnC�
73
Alms-
r.
I 'A.INno7r:*un1
nwr'
$861 og i
Aq ucainq p9e._,j o sa., t
Aliodoid joall In.).110 q,11 10 0950,1 IWO ayC) 0
Ainp sum puo Qju Ag uQj,,:j,I podLt:olt 2,J,11
C48 10 PUQ I'lop
• 041 tDLIJ Apto3Aq;0:44J
)DOSOM 40 ANPOD
Mal do RIVIS
-1-i d
9T 2N qn;170A
u4j
✓'��' �etv�vt �o'• Resolution #2208
nr -0. �oX 2-OUo von �� � o
-T94 57 AGE 5
/-WMPZW/STATE OF TEXAS §
§ RATIFICATION OF OIL AND GAS UNIT
COUNTY OF LUBBOCK § 2010
WHEREAS, by Oil and Gas Lease dated November 9, 1984, the
CITY OF LUBBOCK, TEXAS, as Lessor, demised, granted, leased and
let unto W. E. MEDLOCK, SR., as Lessee, for the sole and only
purpose of prospecting and drilling for, and producing, oil
and/or gas, certain lands located in Lubbock County, Texas, said
Oil and Gas Lease being recorded in Vol. 1930, Page 511, Deed
Records of Lubbock County, Texas, reference here being made
thereto for all purposes (said instrument hereinafter called the
"City Lease");
WHEREAS, by instrument dated January 10, 1985, a copy of
which Pooling Agreement is attached hereto as Exhibit "A" and
made a part hereof for all purposes, W. E. MEDLOCK SR., MARTHA
LOUISE HARMON, joined by her husband BILLY DEAN HARMON, and JOHN
LOUIS QUILLEN, joined by his wife, LINDA ANNE QUILLEN, executed a
certain Voluntary Pooling Agreement and Designation for Pooling
Leases in Units of Specified Acreage (hereinafter called the
"Pooling Agreement"), pursuant to which said parties pooled
certain acreage included in the City Lease with acreage included
in other leases described therein, for the purpose of creating
two (2) drilling units of forty (40) acres each, said units being
described by metes and bounds in Exhibits "B" and "C,"
respectively, attached to the Pooling Agreement;
WHEREAS, the approval of the CITY OF LUBBOCK, TEXAS, is
necessary for the purposes of authorizing the pooling of its
interest in the City Lease, and the CITY OF LUBBOCK, TEXAS,
desires to approve the aforesaid Pooling Agreement;
NOW, THEREFORE, for and in consideration of the recitals and
other good and valuable consideration to it in hand paid, the
receipt and sufficiency of which is hereby acknowledged by the
CITY OF LUBBOCK, TEXAS, the CITY OF LUBBOCK, TEXAS, hereby agrees
to become a party to the Pooling Agreement with respect to all of
its interests in and to the two (2) forty (40)-acre drilling
units described therein, and does further ratify and confirm the
Pooling Agreement the same as if the City of Lubbock, Texas, had
been an original signer thereof.
This Agreement is executed this 12th day of
VOL 2067 PAGE e
December ,
1985, but shall be effective for all purposes as of 12:01 a.m. on
January 10, 1985.
CIT
SFAL By
S
City Secretary
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
This instrument was acknowledged before me on the 1-00, day
of o0sr-e,,� , 1985, by ALAN HENRY, as Mayor of the City of
Lubbock, Texas. C::
Notar Public, State of Texas
SEAL My commission expires
f4—
APPROVED AS TOO CONTENT
Robert MassengaYA, Assistant
City Manager for Financial
Services
APPROVED AS TO FORM-
MichWle Hart, Assristant City
Attorney
- 2 -
EXHIBIT "A"
to
RATIFICATION OF OIL AND GAS UNIT
VOLUNTARY POOLING AGREEMENT AND DESIGNATION
FOR POOLING LEASES IN UNITS OF SPECIFIED ACREAGE
Resolution #2208
VOL 2067 PAGE 7
WHEREAS, MARTHA LOUISE HARMON, joined by her husband, BILLY
DEAN HARMON, and JOHN LOUIS QUILLEN, joined by his wife, LINDA ANNE QUILLEN,
executed as lessors an oil, gas and mineral lease with W.E. MEDLOCK, SR.,
as lessee, covering a 111.06 acre tract of land out of Section 13, Block
A, Lubbock County, Texas; and
WHEREAS, W.E. MEDLOCK, SR. has obtained an oil, gas and mineral
lease from the City of Lubbock, Texas, as lessor, covering its interest
in the same 111.06 acre tract of land out of Section 13, Block A, Lubbock
County, Texas, along with additional acreage out of Section 12, Block A,
Lubbock County, Texas, as shown on the survey plat attached hereto as Exhibit
A and incorporated herein by reference; and
WHEREAS, W.E. MEDLOCK, SR. proposes to combine part of the
interest of MARTHA LOUISE HARMON, BILLY DEAN HARMON, JOHN LOUIS QUILLEN
and LINDA ANNE QUILLEN in the 111.06 acre tract of land out of Section 13,
Block A, Lubbock County, Texas, with additional acreage leased from the
City of Lubbock, Texas, to form cw o (2) forty (40) acre drilling units
shown on the attached Exhibit A as Well No. 1 and No. 2, and more particularly
described by metes and bounds on Exhibit B and Exhibit C which are attached
hereto and incorporated by reference; and
WHEREAS, MARTHA LOUISE HARMON, BILLY DEAN HARMON, JOHN LOUIS
QUILLEN and LINDA ANNE QUILLEN are desirous of authorizing such a pooling
arrangement in view of the benefits which will accrue to them therefrom:
NOW, THEREFORE, for and in consideration of the premises and
in consideration of the benefits to be derived by the undersigned, and for
the further consideration of the sum of One Dollar ($1.00) cash in hand
paid to the undersigned lessors by W.E. MEDLOCK, SR., the receipt and
sufficiency of which are hereby acknowledged and confessed, it is hereby
agreed by and between said Lessee and Lessors as follows, to -wit:
1. The Lessors hereby fully authorize, empower and grant unto
Lessee the power and right to combine or pool said lease or portions thereof
into units of not more than forty (40) acres each, as set forth on the
attached Exhibits, for the purpose of developing and operating the acreage.
VOL 2067 $
2. If the area included in a unit should embrace acreage lying
within two or more leases and should production of oil or gas be had from
. such unit, it shall be considered that such production is had from each
of the leases out of which acreage is taken in order to form such unit,
and each such lease will be credited with that portion of the production
of oil or gas from such until that will equal the ratio between the acreage
taken from the lease and placed in the unit and the total acreage in the
unit. For example: should a 20 -acre unit be formed by taking five acres
from one lease, five acres from another lease and ten acres from still another
lease, then it will be considered that one-fourth of the production received
from the unit will accrue to the first lease mentioned, one-fourth thereof
to the second lease mentioned and one-half thereof to the third lease men-
tioned, and an accounting to the royalty holders under each respective lease
will be made accordingly. It will be considered upon obtaining production
of oil or gas from any such unit that production is being had from each
lease from which acreage is taken in order to form such unit, but such pro-
duction shall be apportioned between the several leases as provided above.
3. In performing the development obligations under said leases,
the Lessee in no event shall be required to drill more than one well on
each unit to each separate horizon from which oil or gas may be produced
in paying quantities. Nothing herein contained shall be so construed as
to increase or add to the obligation of reasonable development contained
in said leases.
4. As further consideration for the execution of this instrument,
Lessee agrees that after pooling agreements similar hereto have been signed
by all the persons, firms or corporations who own mineral and royalty interests
in the survey or surveys in which said lease is located, it will commence
operations for drilling a well within the area herein pooled during the
time period set forth in said lease. After such well is commenced Lessee
shall drill the same with due diligence and dispatch to a depth of appro-
ximately 5600 feet, unless oil, gas or other mineral is encountered at a
lesser depth, or dome material, cavity or heaving shale is encountered at
a lesser depth. Failure of Lessee to commence said well as above provided,
and to drill the same with due diligence and dispatch as provided above
shall result only in the dissolution of this agreement to pool, and shall
vot 2067 ?ASE 9
in no way affect or impair the Lessee's rights under the above mentioned
oil and gas mineral lease.
This agreement may be executed in any number of counterparts,
and each such counterpart so executed shall have the same force and effect
as an original instrument, and as if all of the parties to the aggregate
counterparts had signed the same document, or the same may be ratified by
a separate instrument in writing referring to this contract.
THIS AGREEMENT shall be binding upon and inure to the benefit
of the parties thereto, their respective heirs, successors, assigns and
legal representatives.
IN WITNESS WHEREOF, this instrument is executed in multiple
originals this the day of ( , 1985.
Lessors: Lessee:
MARTHA LOUI E HARMON W.E. MEDLOCK, SR.
,ea It 41, Cj V
BILLY A HARMO
i
JOHN [LOUIS QUILLEN
LINDA ANNE QUILLEN
VOL 2067 PAGE
THE STATE OF TEXAS 1
1
COUNTY OF CASTRO 1
BEFORE ME, the undersigned authority in and for said County
and State, on this day personally appeared BILLY DEAN HARMON and wife, MARTHA
LOUISE HARMON, known to me to be the persons whose names are subscribed
to the foregoing instrument, and acknowledged to me that they executed the
same for the purposes and consideration therein expressed, and in the capacity
therein stated.
of
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this
January , 19 85.
THE STATE OF CALIFORNIA
COUNTY OF STANISLAUS
22 day
_ •IIZIL��
No ary Public in d for
e State of Texas
BEFORE ME, the undersigned authority in and for said County
and State, on this day personally appeared JOHN LOUIS QUILLEN, 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 con-
sideration therein expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this 10th day
of January , 19-0-L.
THE STATE OF CALIFORNIA
COUNTY OF STANISLAUS
� � 1
Notary Public in and for
The State of California
BEFORE ME, the undersigned authority in and for said County
and State, on this day personally appeared LINDA ANNE QUILLEN, known to
me to be the person whose name is subscribed to the foregoing instrument,
and acknowledged to me that she executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated.
of
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this 10th day
January , 19 85.
•w.•.r.�..�a►r.tw,:v:.:••�_.:.t_ahtt.oen.+.n•nm•ns nr•:.r••++: iia::
CH V4 �FAL
S1 AMS1 AUS COW I f.'
?u6 CC:1 r�:Y
• •��
���'-lAlutu,,:.,dlt;, tl;l i:�L ISS•, ��
THE STATE OF CALIFORNIA
COUNTY OF STANISLAUS
� � 1
Notary Public in and for
The State of California
BEFORE ME, the undersigned authority in and for said County
and State, on this day personally appeared LINDA ANNE QUILLEN, known to
me to be the person whose name is subscribed to the foregoing instrument,
and acknowledged to me that she executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated.
of
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this 10th day
January , 19 85.
•w.•.r.�..�a►r.tw,:v:.:••�_.:.t_ahtt.oen.+.n•nm•ns nr•:.r••++: iia::
CH V4 �FAL
S1 AMS1 AUS COW I f.'
My coannissiUII ESP na 211. 190
-.1
` Notary Public in and for
The State of California
10
VOL 2007 PAGE 11
THE STATE OF TEXAS I
1
COUNTY OF LUBBOCK i
BEFORE ME, the undersigned authority in and for said County
and State, on this day personally appeared W.E. MEDLOCK, SR., 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this 22.Y10R day of
N amew%o�, 19%5.
.�� WM. MARK THOMPSON
Naanr Public, 8ula of Toxo
My Commission Eapds$ October 28. 1987
YYl .
Notary Public in and for
The State of Texas
1,•UxkyC X Ot'l:a<A'1'ING CO. --------------_.__________---------------City of Ufl)bock Well !de. 1,2,3,
P.0. fox 5545 5 & f,
LtAAxu:k, Taxas 79417
VOL 2067 PAsE 12
Harmn-City of Lubbock Unit 11-
_ ,n. - Nu.3 ,Oto 13tn 'U
Qi w B1 4 I w �+� EL. 3227.7 , ,n
°r 1 to. ra '" -- '10..._104.
:2 -IJ 3'04 09 w • 416.6'« Ala.4 o. /
W 83.50' 30" w - 351.05 • , ;nr► 4 r ,
4•n Ac . "d 40 A
N 44. 54' SV W • 164.0".11 r, r'" v n _
2Q
- i
.• •) dl v }46.6
Q
:2 0'3 410' -- —.. 1044
'a87'�I 35"w 1s16.3t' �',
'➢ EG .3 , 5
, 13.15oAt.4 Z O' u
E C _
i '>`. 0 C. 1 �.
. 4 r o 40 M o
F
.9,
1%5-1 Ac. QLP� 5 p,�•as' tri" r., • 1510.4'
5 99. (1' 35° W • 1.3.18 J a a. 's
UC K A
Harmon -City of Lubbock Un t #:L u C� . 3 29 3 330' r
---- Z s u 69 .!I 51' w �
.n 1310' I
` 40 Ac. C, 100'
L. U D B O C_ V:, o � is U U `J't rt f • E X A `J I
0
I ( SCALE 10
J �j
w ,j
.�
:p 61
REVISED DEC.
c� ^
7.
-- --- — - .. W 6 3*41' ?.`i' V4 - 1600' 1140.8' '_--- - —
��
OF
io i�:i i•i: WIL50111 9
OPE'MMI R . Medlock Operating Company..
. ,3 . . e
FID . Edmisson 21,.1 ` ��
LEASE . City of Lubbock
ACRES IN I.A.SI: . 409.01 acres :.
DLSCRIPPION . A tract of lend out of Section 12, 13 and 17,
Block A, IAMboc:k County, 'texas (as shown on
this plat).
e
crnl'Irlm) roRRrxT
o n N. Wi. son
P.egistered Public Surveyor-
WILSON SURVEYING COO, INC
(806)76D.3388 • 1716 AVEIIUE H • LUDDOCIC TEXAS 79101
fh. 244-9 #20,431
EXHIBIT "A"
LITIT r ran a
VOL 2067 PAGE 13
A forty (40) acre tract of land out of Sections 12 and 13, Block A, Lubbock
County, Texas, more particularly described by metes and bounds as follows,
to -wit:
BEGINNING at a point in the North section line of Section 12 676.6 feet
east of the Northwest corner of said Section 12 for the Norhteast corner
of this tract;
THENCE South 1320 feet to a point in Section 12 for the Southeast corner
of this tract;
THENCE West 1320 feet to a point in Section 13 for the Southwest corner
of this tract;
THENCE North 1320 feet to a point in the North section line of Section 13
for the Northwest corner of this tract;
THENCE Esat 1320 feet to the place of beginning.
EXHIBIT B
VOL 2067 PxuE 14
WG 1 t RV1 7
A forty MY acre tract of land out of Sections 12 and 13, Block A, Lubbock
County, Texas, more particularly described by metes and bounds as follows,
to -wit:
BEGINNING at a point in Section 12 which is 1320 feet South of the North
section line of Section 12 and 676.6 feet East of the West section line
of Section 12 for the Northeast corner of this tract;
THENCE South 1320 feet to a point in Section 12 for the Southeast corner
of this tract;
THENCE West 1320 feet to a point in Section 13 for the Southwest corner
of this tract;
THENCE North 1320 feet to a point in Section 13 for the Northwest corner
of this tract;
THENCE East 1320 feet to the place of BEGINNING.
EXHIBIT C
BAKER, FIELD, CLIFFORD, KRIER & WEBB, INC.
ATTORNEYS AT LAW
Norton Baker 4LU WD1ANA
T. Nike Field LUBMXK. TEXAS 70{10
Karl plttord
Stephen T. Rd"
W. Rom Webb. Jr.
Womb Brown
WaL Nark lbom"M
Stephen J. Stone
8dward R Smith
(W coomel)
City of Lubbock
P. O. Box 2000
Lubbock, TX 79457
November 20, 1985
Resolution #2208
TELEPHONE
(800) 704-0800
Attention J. Robert Massengale
Assistant City Manager for Financial Services
Re: Oil and Gas Lease Dated November 9, 1984, between the City
of Lubbock, Texas, as Lessor, and W. E. Medlock, Sr., as
Lessee, covering 1200 acres of land situated in Lubbock
County, Texas
Dear Mr. Massengale:
In my continuing review of the documents relating to the cap-
tioned lease, it has come to my attention that the City of
Lubbock did not join in the Pooling Agreement creating the 40 -
acre proration unit on which the first well on the captioned
lease was drilled. Accordingly, I am enclosing herewith a Ratifi-
cation of the Pooling Agreement for approval by the City of
Lubbock. Attached to the ratification instrument is a copy of the
original Pooling Agreement with a plat showing the location of
the 40 -acre units and the wells, and metes and bounds descrip-
tions of the two 40 -acre drilling units covered by the Pooling
Agreement. On behalf of P S P Operating, Inc., the owner and
operator of this lease, we hereby formally request that the City
ratify the unit agreement.
I am assuming that for an action of this nature, the approval of
the City Council will be necessary. If you concur, please see
that the matter is placed on the City Council agenda at the
earliest possible time. Following receipt of the City's ratifica-
tion, the original Pooling Agreement and an original copy of the
City's Ratification will be filed in the County Clerk's office.
We have received the abstract of title covering the well site,
and are in the process of preparing the necessary division order
title opinion so that payment of royalties may commence. However,
we will not be in a position to finalize that opinion until the
Pooling Agreement has been ratified. In addition to the City's
Ratification, we are having to obtain the ratification of the
owner of an outstanding royalty interest in one of the City
tracts. In examining the abstract, we discovered that prior to
the time the City acquired that certain 202.82 acre tract
City of Lubbock
Page 2
November 20, 1985
designated as Tract V in the captioned Oil and Gas Lease,
previous owners reserved a 1/16 royalty interest in the oil, gas
and other minerals. That interest is now owned by Mrs. W. C.
Neel, a widow, who resides in Amarillo. I have spoken to Mrs.
Neel regarding her ratification of the unit, and I am sending her
a ratification agreement by letter of even date herewith.
If you should have any questions regarding this request, or need
additional information in connection with the well, please give
me a call. Your kind attention to this request is appreciated.
Sincerely,
Wm. Mark Thompson
FIVI TU m;44
Enclosure
cc: P S P Operating, Inc.
Attn. Marie Heathington
P. 0. Box 413
Lubbock, TX 79408