HomeMy WebLinkAboutResolution - 5199 - Lease Option Contract - James D Parks - Post-Lateral Pipeline - 06/24/1996RESOLUTION NO. 5199
,Tune 24, 1996
Item #17
SOLUTIO
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 Lease Option Contract between the City of j
Lubbock and James D. Parks, attached hereto and 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.
APPROVED AS TO CONTENT:
Ed Bucy, Right -of -Way Agent
APPROVED AS TO FORM:
arold Wi ar , Assistant City Attorney
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THE STATE OF TEXAS
COUNTY OF LUBBOCK
RESOLUTION x0.5199
June 24, 1996
Item ##17
KNOW ALL MEN BY THESE PRESENTS:
LEASE OPTION CONTRACT
This Lease Option Contract is made this 24th day of June , 1996,
in Lubbock County, Texas, by the CITY OF LUBBOCK, TEXAS, a Horne Rule Municipality,
referred to in this Option Contract as "Optionor," and JAMES D. PARKS, referred to in this
Option Contract as "Optionee."
WHEREAS, Optionor is the owner of real property in Lubbock County, Garza County
and Lynn County, Texas, referred to in this Option Contract as "the Property" and described as
follows:
Approximately 32 miles of eight inch (8") pipeline known as the Post -Lateral
Pipeline, which begins on a three (3) acre tract of land in Section 4, Block S,
G.C.&S.F. Ry. Co. Survey, Lubbock County, Texas, and which three (3) acre
tract is adjacent to the Holly Avenue Power Station, which is owned and operated
by the Optionor and running from such point in Lubbock County, Texas, to such
pipeline's connection to the field pipeline system of the Post -Montgomery
Waterflood Unit No. 1 located in the Garza Field, Garza County, Texas.
WHEREAS, Optionee desires to acquire the exclusive right of first refusal and the option
to lease, without becoming obligated to lease, the Property at an agreed price and under specific
terms and conditions to be determined;
NOW THEREFORE, it is agreed as follows:.
Grant of Option
1. For the consideration expressed in Numbered Paragraph 3 of this Option Contract,
Optionor hereby grants to Optionee the exclusive right of first refusal and the option to
lease the Property described above at a price and under the terms to be determined.
O tion Perit�d
2. This option and right of first refusal shall commence on June 24, 1996, and continue in
effect until December 24, 1996. Optionor and Optionee both have the right, upon thirty
(30) days notification, to cancel this contract, regardless of the reason.
of
Consideration
3. This option and right of first refusal is granted in consideration of Optionee's payment to
Optionor the sum of 'THREE HUNDRED AND NO/100 DOLLARS ($300.00) payable
by check drawn to the order of Optionor, receipt of which is to be received by Optionor.
Forfeiture of Consideration
4. If Optionee fails to exercise this option before its expiration, the consideration paid herein
shall be retained by Optionor.
Exercise of Option
This option may be exercised by Optionee depositing written notice to such effect in the
United States mail before the date and time of expiration of the option period as stated in
Numbered Paragraph 2 herein. The giving of such notice shall necessitate the execution
of a lease agreement by both parties to this contract.
Notices
6. Any notice, tender or delivery to be given hereunder by either party to the other may be
effected by personal delivery in writing or by registered or certified mail, postage prepaid,
return receipt requested. Mailed notices shall be addressed as set forth below, but either
Optionee or Optionor may change its address by written notice in accordance with this
paragraph.
To the Optionor: Ed Bucy, Right -of -Way Agent
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
To the Optionee: James D. Parks
34 Village Drive
Canyon, Texas 79015
Inspection and Testin
7. Optionor grants the Optionee the right to inspect the pipeline and pipeline easements and
equipment, to perform tests of any nature, and to conduct any type of environmental
assessments and structure analysis of the improvements as long as said inspection or
analysis does not involve shutdown of the pipeline.
LEASE OPTION CONTRACT
JAMES D. PARKS ---- PAGE 2
3
Indemnification.
8. Optionee shall hold Optionor harmless and indemnify and defend Optionor against any
and all claims and lawsuits arising out of or in any manner connected with the inspection
and testing of the Property or equipment by its agents, servants, representatives,
customers or invitees during the term of this contract.
this 24th day of June , 1996, at Lubbock
County,
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ATTEST:
Betty U. Jo son, City Alecretary
APPROVED AS TO CONTENT:
Ed Bucy, Right -of -Way gent
APPROVED AS TO FORM:
ALV&
Harold Wil ard, Assistant City Attorney
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JAWS D. PARKS
LEASE OP'T'ION CONTRACT
JAMES D. PARKS ---- PAGE 3