HomeMy WebLinkAboutResolution - 2688 - Authorize Mayor To Sign Amendment To Oil & Gas Lease, City Of Lubbock & PSP - 11/12/1987BLL:da
RESOLUTION
Resolution #2688
November 12, 1987
Agenda Item #19
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
Amendment to Oil and Gas Lease by and between the City of Lubbock and PSP
Operating, Inc., 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 19th day of Novamhc, , 1987.
C , c�l'kxr
B.C.
ATTEST:
APPROVED AS TO CONTENT:
. Robert
City Manager for Financial Services
APPROVED AS TO FORM:
Benjamin C. Linton, Assistant
City Attorney
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AMENDMENT TO OIL AND GAS LEASE
Resolution #2688
This Amendment, made and entered into on this 9th day of
November, 1987, which is the effective date hereof, by and
between the City of Lubbock, Texas, Lessor and PSP Operating,
Inc., a Texas Corporation.
WHEREAS, the Oil and Gas Lease executed by Lessee and Lessor
on the 9th day of November, 1984 has a primary term of three (3)
years commencing on the date of the execution of said lease and
as long thereafter as oil and/or gas is produced in paying
quantities thereunder, and
WHEREAS, Comanche Canyon No. 1 was completed July 17, 1985,
and is presently producing in paying quantities, and
WHEREAS, due to the development of the Lubbock Lake Landmark
State Historic Site and the accompanying additional and
unanticipated delays, Lessee might not be able to commence
operations for the drilling of Comanche Canyon No. 2, (the next
succeeding well) within the time required by said lease, and
WHEREAS, Lessor and Lessee desire to extend the primary term
of said lease to a period of four (4) years commencing on the
date of the execution of said lease to provide adequate time for
the commencement of additional drilling opertions.
THEREFORE, in consideration of the mutual promises of Lessor
and Lessee, and other good and valuable consideration, receipt of
which is hereby acknowledged, Section 4 of such Oil and Gas Lease
is hereby amended to read as follows:
114. PRIMARY TERM: The primary term of this lease
is a period of four years commencing on the date of the
execution of this lease and as long thereafter as oil
and/or gas is produced in paying quantities hereunder."
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IN TESTIMONY WHEREOF, this instrument is executed on the
18th day of
LESSOR:
CITY OF LUBBOCK
November
1987.
LESSEE:
PSP OPERATING, INC.
C
BY: BY.
G. y ,
1b�
B. C. MCMINN, MAYOR Marie Heathington
President and Secre ary
ATTEST:
Rane to Boyd, City Secre ary
THE STATE-bF TEXAS §
COUNTY OF LUBBOCK §
BEFORE ME, the undersigned authority, a Notary Public in and
for said County, Texas, on this day personally appeared Marie
Heathington, President, 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 as the act
and deed of PSP Operating, Inc..
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 18th day of
November , 1987.
TERICA C. FINCH
Notary Public
STATE OF TEXAS t}
Of � MY Ow m. EXP. May 12. 1830 I.
THE STATE OF TEXAS
COUNTY OF LUBBOCK
Notary Public, Lubbock County,
Texas
N
P
BEFORE ME, the undersigned authority, a Notary Public in and
for said County, Texas, on this day personally appeared B. C.
McMINN, Mayor, 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 this 19th day of
November , 1987.
r�-4 '�Jlmm-
Notary Public, Lubbock County,
Texas
-2-
••PRtPARtU 06—LO-91"
DIVISION ORDER
TO: LANTERN PETROLEUM CORPORATION LEASENO. TX67775-01
P.O. Box 2281
Midland, Texas 79702
Each of the undersigned certify and guarantee that he is the legal owner of and hereby warrant title to the interest
set out opposite his name in the oil produced from
PSP OPFNATTNr;. INC- — CITY nF 111RRnCK lease
located in county or Parish
described as:
State of
PLEASE, SEE EXHIBIT "A", ATTACHED HERETO AND MADE A PART HEREOF;
PLEASE, DO NOT REMOVE EXHIBIT "A" FROM THIS DIVISION ORDER.
to be effective at 7:00 A.M. the first day of 11 IN F - loot
OWNER NO. CREDIT TO DIVISION OF INTEREST
28590 CITY OF LUBBOCK TEXAS .16448440 RI
All covenants appearing on the reverse side hereof are incorporated herein by reference and the undersigned agree that each shall be
deemed and considered an essential part of this division order in like manner mid will% the same effect as if printed alsoe our signatures.
SOCIA SECURITY OR TAX
SIGNATO(E OF WITNESS OR ATTESTOR NATURE OF OWNER I.D.
SOCIA
ACCOUNT.
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ay
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BY
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BY
TITLE:
(OFFICER. PARTNER, TRUSTEE EXECUTOR etc.)
MAIL CHECKS TO FOLLOWING ADDRESS:
ZIP CODE — — — —— — — ——
The following covenants are also part of this Division Order and shall become valid and binding upon each and every
interest owner above named upon execution hereof by such interest owner, and upon his or her successors, legal representa-
tives and assigns, without regard to whether any other interest owner or owners have so signed.
1. The oil run hereunder shall become your property upon delivery into your custody or into the custody of any 'other
purchaser whom you may resell such oil, or that of any carrier or agent designated by you or such other purchaser, and the
undersigned agree to look solely to you for payment of oil purchased hereunder and shall have no claim or recourse against
any subsequent purchaser.
2. Subject to the other provisions hereof you agree to pay for such oil according to the division of interest shown above
at the price posted by you for the same kind and quality of oil in the particular field on the day in which it is received by
you, or if you do not post a price for such oil, it shall be the price paid by 'you for such oil. The word "oil" used herein shall
mean crude oil, condensate or other liquid hydrocarbons.
Quantities shall be computed from regularly compiled tank tables or by other reliable methods of computation, and the
volume correction shall be made for temperature and impuritites according to the prevailing practice and the rules and
regulations prescribed by the Commission or other legal authority of the state where the purchases hereinunder are made
Payment for crude oil, condensate or other liquid hydrocarbons purchased hereunder shall be made monthly by check to
the parties of interest at the addresses given herein, for the amount of the purchase price due such parties, respectively, less
(1) any taxes required by law to be deducted and paid by you as purchaser and (2) transportation and/or handling charges,
agreed to by the operator of said property. You may at your option, hold without interest, and remit annually for the aggregate
of twelves months' accumulation of any monthly accruals of amounts less than $26.00.
3. The operator shall be required to treat or steam any unmerchantable oil at the owners' expense, and the term barrel as
used herein shall mean a barrel of 42 U.S. gallons.
4. It is agreed that the Operator will furnish abstracts, title opinions, and other evidence of title satisfactory to you at any
time on demand. In the event of failure to so furnish such evidence of title, or in the event of any dispute or question con-
cerning title to the above lands, or the oil produced therefrom, you may hold the proceeds of all oil received and run, without
interest, until indemnity satisfactory to you has been furnished or until such dispute or question of title is corrected or
removed to your satisfaction. And in the event any action or suit is filed in any Court affecting title either to the real property
above described or to the oil produced therefrom in which any of the undersigned are parties, written notice of filing of such
action shall immediately be furnished to you by the undersigned, stating the Court in which the same is filed and the title
of such action or suit, and you or your agents shall be held harmless from any judgement rendered in such suit, and all
reasonable costs and expenses incurred defending against said claim, whether in your defense or in the defense or your agents,
shall be paid by the undersigned.
6. Each signer hereof severally agrees to notify you in writing of any change in ownership, and no transfer shall be binding
upon you until a transfer order and the recorded instrument evidencing such transfer, or certified copy thereof, shall be
furnished to you. Transfer of interest shall be effective no earlier than the first day of the calendar month in which notice
is received by you. You are hereby relieved of any responsibility for the determining when any.of the interests herein shall
increase, decrease, be extinguished or revert to other parties as a result of the completion or discharge of money or other
payments from said interest, or as a result of the expiration of any time or term limitation (either definite or indefinite) or
as a result of the increase or decrease in production, or as a result of a change in the allocation of production affecting the
above tract or any portion thereof under any agreement or by order of Governmental authority, or resulting from any other
contingency, and until you receive notice in writing to the contrary, you are hereby authorized to continue to remit pursuant
to the above division of interest In the event said written notice is not received by you, you shall be held harmless for error
resulting in over or underpayment, or a wrong payment of any such sum or sums.
6. Working interest owners and/or operators who execute this division order, and each of them, guarantee and warrant that
all oil tendered hereunder has been or will be produced and delivered in compliance with all applicable federal, state and local
laws, orders, rules and regulations.
7. This division order shall become valid and binding upon each and every owner as soon as signed by such owner,
regardless of whether or not any other owners have so signed; and in consideration of the purchase of oil hereunder, consent
is hereby given to you and any pipe line company which you may cause to connect with the wells or tanks on said lease to
disconnect and remove such pipe line in case of termination either by you or us of purchases under this division order.
EXHIBIT "An
TX62775-00
A forty (40) acre tract of land out of Sections 12 and 13, Block A, T.T. Ry.
Co. Sur., Lubbock County, Texas, consisting of two separate tracts, which
tracts are more particularly described by metes and bounds as follows:
TRACT A:
Beginning at a 3/4" iron pipe, found for the Northeast and beginning corner
of this description, whence the Northeast corner of Section 13, Block A
bears North 89 deg. 41' 51" West, 676.6 feet;
THENCE South 0 deg. 05' 00" West, 1320.0 feet to a 1/2" iron rod, set for the
Southeast corner of this description;
THENCE North 89 deg. 41' 51" West, at 676.0 feet pass the West line of Section
12 and the East line of Section 13, continuing for a total distance of 831.95
feet to a point for the Southwest corner of this description;
THENCE North 0 deg. 05' 33" West, 1320.0 feet to a 1/2" iron rod, set for the
Northwest corner of this description;
THENCE South 89 deg. 41' 51" East, along the North line of Section 12 and 13,
836.00 feet to the point of beginning.
Containing 25.27 acres.
TRACT B:
BEGINNING at a point for the Northeast and beginning corner of this description,
whence the Northeast -corner of Section 13, Block A, bears South 89 deg. 41' 51"
East, 159.4 feet;
THENCE South 0 deg. 05' 33" East, 1320.0 feet to a point for the Southeast cor-
ner of this description;
THENCE North 89 deg. 41' 51" West, 488.05 feet to a 1/2" iron rod, set for the
Southwest corner of this description;
THENCE North 0 deg. 05' 00" East, 1320.0 feet to a 1/2" iron rod, set for the
Northwest corner of this description;
THENCE South 89 deg. 41' 51" East, along the North line of Section 13, 484.0
feet to the point of beginning.
Containing 14.73 acres.
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RE: LEASE NAME . ........................... CITY OF LUBBOCK
LANTERN'S LEASE TX62775-00
/1 :L.1 Y:�'� TI�I'�L>I�3.'I = =t , TsriI ►L"f� j. I1
DEAR INTEREST OWNER:
EFFECTIVE WITH JUNE 1911 PRODUCTION, LANTERN PETROLEUM
CORPORATION WILL BEGIN PURCHASING THE OIL PRODUCED OFF OF
THE ABOVE NOTED PROPERTY.
ENCLOSED YOU WILL FIND TWO COPIES OF THE DIVISION ORDER
COVERING YOUR INTEREST IN THIS PROPERTY, PLEASE SIGN AND
RETURN THE FIRST COPY WITHIN SIXTY (60) DAYS SO THAT WE WILL
NOT HAVE TO PLACE YOUR PROC EDS IN SUSPENSE. THE 2ND COPY
IS FOR YOUR RECORDS. THE AAGUNT OF FURTHER CORRESPONDENCE
WILL BE REDUCED IF YOU WILL FOLLOW THE BELOW INSTRUCTIONS:
SIGNATURE:
SIGN YOUR NAME EXACTLY AS IT IS SHOWN ON THE
DIVISION ORDER. HAVE YOUR SIGNATURE
WITNESSED.
SIGNATURE BY
IF DIVISION ORDER IS TO BE SIGNED BY ANY
SECOND PARTY:
PARTY OTHER THAN THE NAMED OWNER• WE MUST
HAVE EVIDENCE OF THE SECOND PARTY'S RIGHT
TO SIGN.
PARTNERSHIP:
IF ONLY ONE MEMBER OF A PARTNERSHIP EXECUTES
THIS ORDERS PLEASE INCLUDE EVIDENCE OF HIS
RIGHT TO DO S0.
CORPORATIONS:
(1) A DULY AUTHORIZED OFFICIAL OF THE
COMPANY SHOULD SIGN THE DIVISION ORDER.
(2) HAVE THE SIGNATURE ATTESTED BY THE
APPROPRIATE CORPORATION OFFICER. (3) AFFIX
THE CORPORATE SEAL.
MAILING
PRINT OR TYPE YOUR MAILING ADDRESS ON THE
ADDRESS:
DIVISION ORDER• ALONG WITH YOUR TAX I.O. OR
SOCIAL SECURITY NUMBER.
IN ORDER TO RECEIVE YOUR CHECKS PROMPTLY9
PLEASE INCLUDE YOUR "ZIP + 4" ZIP CODE.
YOUR DIVISION ORDER SHOULD NOT BE CHANGED IN ANY WAY UNLESS
YOU INCLUDE DOCUMENTARY EVIDENCE JUSTIFYING THE CHANGE. IF
YOU HAVE ANY QUESTIONS, PLEASE DON'T HESITATE TO CONTACT US.
CINDY REYNOLDS
v� LANTERN PETROLEUM CORPORATION
(915) 692-6371
9I �_