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HomeMy WebLinkAboutResolution - 2902 - Agreement - Archie & Mildred Baker - Water Rights Purchase - 08/25/1988HW:dw RESOLUTION Resolution #2902 August 25, 3.988 #18 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 Water Rights Purchase Agreement by and between the City of Lubbock and Archie Baker and Mildred Baker of Clovis, New Mexico, 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 25th day of August 1988. 'B. C. MCMINN, MAYOR qeA5=; C -e Rano Boyd, City Secreta APPRO ED A CONTENT: Sa Director of Water Utilit es APPROVED AS TO FORM: arold Willard, Assistant Cit Attorney 11 HW:dw RESOLUTION Resolution #2902 August 25, 1988 Item #18 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 Water Rights Purchase Agreement by and between the City of Lubbock and Archie Baker and Mildred Baker of Clovis, New Mexico, 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 25th day of August , 1988. Z. 1�f Af :Aco�rd B. C. McMINN, MAYOR ATTEST: -- Ranette Boyd, City -Secret ry APP OVED AS T 0 NT am Wahl, Director of Water Utilities APPROVED AS TO FORM: gt-4�J �j� arold Willard, Assistant City Attorney r HW:dw Resolution #2902 WATER RIGHTS PURCHASE AGREEMENT STATE OF TEXAS § COUNTY OF BAILEY § KNOW ALL MEN BY THESE PRESENTS: THAT ARCHIE BAKER and MILDRED BAKER, of Clovis, New Mexico, hereinafter called Owners, and the City of Lubbock, Texas, hereinafter called City, do hereby enter into the following Water Rights Purchase Agreement. WITNESSETH WHEREAS, the Owners do own in fee simple absolute that certain property situated in Bailey County, Texas, and hereinafter described in Exhibit "A" attached hereto; and WHEREAS, the Owners desire to sell to the City water rights to the property after Owners acquire such rights; and WHEREAS, the City desires to purchase these same water rights from the Owners; NOW THEREFORE, in consideration of the premises, the covenants and agreements herein contained and other valuable consideration, the City and the Owners do hereby enter into the following Articles of Agreement. ARTICLE I 1. Payment: The City hereby agrees to purchase from Owners the water rights appurtenant to the property described in attached Exhibit "A" less and except that one acre previously conveyed by special warranty deed of September 28, 1987, from J r Travelers Insurance Company to Archie Baker and subsequently deeded to Eastern New Mexico University, and to pay Owners a total sum of Six Hundred Twenty -Five Thousand and No/100 Dollars ($625,000.00) for the water rights. Said payment shall be made in full at the closing of this transaction, which shall occur as soon as practicable after the approval of this contract by City. 2. Title: Owners hereby agree to provide City with an abstract of title showing valid marketable title to the water rights to the property described in Exhibit "A", less and except that one acre referred to here and above. The City shall have a period of 60 days in which to have the abstract examined and to notify Owners in writing of any title defects; Owners will promptly take all necessary corrective action to cure such defects, and the sale of the water rights herein described to City will be closed as soon as reasonably possible thereafter. In the event that Owners are unable to cure any defects in the title as above mentioned within 120 days after such defects have been brought to Owners' attention by City, then in such event City may terminate this agreement without any liability to City. A true and correct copy of the abstract above referenced shall remain with City and the original shall be returned to Owners upon closing. 3. Access to Property: The City shall have the right of ingress and egress over and across the surface of the land described in attached Exhibit "A", less the one acre excepted, for the purposes of performing all exploration, construction and development of facilities for the withdrawal of underground water -2- pursuant to the water rights conveyed by this agreement. The City shall reseed and restore that surface area destroyed or damaged by the City's activity to develop, explore or deplete the water conveyed by this agreement. All roads developed for the continuing service of wells shall be constructed in such a manner as to minimize soil erosion as much as practicable. 4. Deed: Owners agree to convey said water rights by general warranty deed and a copy of said proposed deed is attached hereto as Exhibit "B". 5. Personal Property: Existing pumps in irrigation wells numbered 1, 2, 7, and 8 of that map attached and marked as Exhibit "B" to the proposed general warranty deed shall be considered the personal property of the Owners and the City shall remove those four existing irrigation pumps from the respective wells within the next eighteen months and place them at such location on the subject property as directed by Owners. 6. Cooperative Benefits: All benefits derived from the purchase of electricity from the Bailey County Electric Cooperative or its successors to the date of closing shall be surrendered to Owners or their heirs, successors or assigns. Thereafter all power purchased by City shall be credited to City as capital credit from the Bailey County Electric Cooperative. ARTICLE II 1. "Water Rights", as used in this agreement, means all of the percolating and underground water in and under and that may be produced from wells from the property described in attached Exhibit "A", together with the exclusive right to take said water from such land. However, Owners except and reserve the right to use only so much of the water in and under the premises described in Exhibit "A" as may be reasonably necessary to drill for oil, gas or other minerals; but it is understood that water from this property may not be used for the enhancement of the production of oil, gas or other minerals. owners also except and reserve the right to use so much of the water in and under the property described in Exhibit "A" as may be necessary for usual and normal domestic use and ranching operations or similar undertakings upon said property, including the right at all times to drill and maintain one (1) irrigation well or any replacement well within 100 feet of the location of said irrigation well. Owners further except and reserve for a period of twenty years the right to use so much of the water in and under the property as may be necessary to replenish and enlarge the existing stock pond located on the said property to a maximum of one acre. Said existing stock pond is identified as "pond" on that map attached to the proposed General Warranty Deed and marked Exhibit "B" thereto. City shall have the exclusive right to use and shall take title to all other irrigation wells and may drill additional wells. 2. "Surface Rights", as used in this agreement, means the use and enjoyment of all of the surface of the said property described in Exhibit "A" not involved in the production or transportation of underground water by the City. -4- 3. "Mineral Rights", for the purpose of this agreement, shall include the rights to all minerals in, on or under the surface of the property described in Exhibit "A", with the exception of percolating and underground water. For the purpose of this agreement, neither water nor minerals in water shall be construed as minerals. 4. owners, their heirs, successors and assigns shall have the right to obtain water from the City's pipeline facilities, if available, on request, for livestock waterings, provided the City shall make the tap and owners shall, at their own expense, install the waterings a minimum of 50 feet from such tap and in accordance with State Health Department regulations. 5. The City shall hold the Owners harmless from any and all claims for damages arising from the City's exercise of the water rights herein conveyed (including any claims arising from subsidence of the lands of others caused by or related to extraction of water by the City), whether such claims are brought by the City's agents or employees or by any member of the public. 6. The City will comply with all applicable present and future laws, rules and regulations related to the drilling for and extraction of water. 7. This Agreement supersedes and is in lieu of the Water Rights Lease Agreement executed by Archie Baker and Keith Blair and the City of Lubbock, Texas, on the 16th day of December, 1982, wherein the City acquired certain rights to underground water beneath a portion of the property described in attached Exhibit "A"; and upon execution of this Water Rights Purchase 1 -5- Agreement, it is expressly understood that all remaining obligations incurred pursuant to said Water Rights Lease Agreement by any of the parties thereto, their heirs, successors and assigns -- particularly the City's obligation to make further monetary payments to Owners pursuant to the terms of said Lease Agreement -- shall cease and no longer have any effect. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto, and their respective heirs, executors, successors and assigns. WITNESS our hands this 25th day of August , 1988. CITY OF LUBBOCK, TEXAS C• . C. McM NN, MAYOR AT : ; Ran ttte Boyd, Ci -Ey- S r tary APPROVED AS TQ CONTENT: n /Scfm Wahl, Director of Water Utilities APPROVED AS TO FORM: arold Willard, Assistant City Attorney HIE BAKER MILD ED BAKER -6- STATE OF NEW MEXICO ) ss. COUNTY OF CURRY ) BEFORE ME, the undersigned, a Notary Public in and for Curry County, New Mexico, on this day personally appeared ARCHIE BAKER and MILDRED BAKER, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 24th day of August, 1988. Notary Pu li , State of New Mexico My Commission Expires:ge 4 STATE OF TEXAS ss. COUNTY OF LUBBOCK BEFORE ME, the undersigned, a Notary Public in and for; Lubbock County, Texas, on this day personally appeared B. C./ McMINN, Mayor of the City of Lubbock, a home rule municipal corporation, known to me to be the person whose name is subscribed for the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity herein stated, and as the act and deed of said City of Lubbock.....��,/� STEN NDER MY HAND AND SEAL OF OFFICE, this tk day 1988. r No My , 5ta Commission Expires: MMISSIO EYP+ tF ' NO EMBER OLIVIA R. StDL;S -7- EXHIBIT A PROPERTY DESCRIPTION All that certain real estate situated in Bailey County, Texas, more particularly described as follows: Tract I: All of Section Number ONE (1), the East 364.7 acres of Section Number TWO (2), the East 356.4 acres of Section Number THREE (3); the South One-half (S/2) of Section Number FOUR (4); all in Block S-3, John H. Stephens Survey, Bailey County, Texas. TRACT II: The South 477.4 acres of Section Number FIFTY-SEVEN (57), Block Z, W.D. & F.W. Johnson Subdivision, Bailey County, Texas. e EXHIBIT B THE STATE OF TEXAS § PROPOSED GENERAL WARRANTY DEED COUNTY OF BAILEY § KNOW ALL MEN BY THESE PRESENTS: That ARCHIE BAKER and MILDRED BAKER, of Clovis, New Mexico, hereinafter called Grantors, for and in consideration of the sum of ONE DOLLAR ($1.00), cash and other valuable consideration, to Grantors in hand paid by the CITY OF LUBBOCK, a home rule municipal corporation of Lubbock County, Texas, hereinafter called Grantee, have GRANTED, SOLD and CONVEYED, and by these presents do GRANT, SELL and CONVEY unto the said Grantee all of the percolating and underground water in, under and that may be produced from wells from the tract(s) of land described in Exhibit "A", attached hereto and made a part hereof for all purposes (less and except that one (1) acre previously deeded by Travelers Insurance Company to Owners by Special Warranty Deed of September 28, 1987, and subsequently deeded to Eastern New Mexico University), together with the exclu- sive right to take such.water from said tract(s) of land and to use the same for disposition to cities and towns situated in Bailey, Hockley, Lamb and Lubbock Counties, Texas, together with perpetual rights.of ingress and egress in, over and on said lands, so that the Grantee of said water rights may at any time and any location (except as herein provided) drill additional water wells and test wells on said lands for the purpose of investigating, exploring, producing and obtaining access to percolating and underground water; together with the right at all times to string, lay, con- struct and maintain water pipelines (at a depth of 42 inches or more beneath the ground), power lines, communication lines, air vents and observation wells; to take title to and operate existing irrigation wells and pipelines situated on said property; to con- struct and maintain access roads on and over said land necessary or incidental to any of said operations (and Grantors, their heirs, successors and assigns shall also be entitled to.use.such.roads, so long..as..such.use is not.inconsistent.with or interferes -with -any of said operations), together,with the right at all times to erect necessary housing for wells, equipment;and.supplies, together with a perpetual easement for all..such purposes, together with the right to use all that part of said land necessary or incidental to the taking of percolating and underground water and the production, treatment and transmission of water therefrom and delivery of said water to the water system of the CITY.OF LUBBOCK, except that the CITY OF LUBBOCK does covenant and agree that no permanent buildings shall be placed on the subject property which require the use of more than 250 square feet of the surface estate at any single loca- tion; subject to the rights reserved by the Grantors, their heirs, successors and assigns, to: (1) such quantities of water as may be necessary for usual and normal domestic use and ranching operations or similar undertakings upon said land, (2) to drill and maintain one (1) irrigation well or any replacement well within 100 feet of the location of said irrigation'well, (3) the preservation and ex- pansion of that stock pond (not to.:exceed_one acre.in size) presently on the property for a period of -twenty years from the date_of.the deed, (4) such -other rights as are reserved by -Grantors in the Water Rights Purchase Agreement attached hereto, and incor- - 2 - porated herein by reference and made a part hereof as if fully copied herein in detail, and Grantors, their heirs, successor and assigns and the owners of petroleum and other mineral leases on said property shall be allowed to use so much of the water in and under the premises as may be reasonably necessary to drill for oil, gas or other minerals from Grantors' wells, and the same is hereby reserved, provided, no percolating or underground water from said land may used for the enhancement of the production of oil, gas or other minerals in the area where said land is located. It is understood that, for the purpose of this deed, neither water nor minerals in water shall be construed as minerals. Furthermore, it is agreed that right-of-way and damages for the construction of and operation of the above described installa- tions and facilities are included in the consideration to be paid for the water rights herein conveyed to City. The tracts of land containing the water rights herein conveyed are described in Exhibit "A" attached hereto, less and except that one acre previously identified as the property of Eastern New Mexico University. Said tracts of land described in Exhibit "A" attached hereto, less and except that one acre previously deeded to Eastern New Mexico University, contain 2163 acres of land, more or less. It is understood that Grantee may also cross the property de- scribed in Exhibit "A" with pipelines, power lines, roads and any appurtenances necessary to transport water produced from other properties not described in Exhibit "A" without additional payment for easements. - 3 - In accepting and...recording this deed, the CITY OF LUBBOCK, its successors and assigns, covenant and agree, within a reasonable time after conducting any operations on said land, to remove there- from any trash, debris and other material or objects deposited on said land by actions.or operations of the CITY OF LUBBOCK, its agents and employees, which.clutter up or. detract from ahe•useful- ness.of said..lands by Grantors. Further the.City shall reseed and restore all surface area destroyed or damaged by City's activity to develop, explore or deplete the water rights conveyed by this deed. Where the Grantee,_its successors or assigns construct new roads through an inside or an outside fence, the Grantee shall install and maintain in such openings, gates of durable construction. It is.understood that locking _gates on -.the outside fences -shall not affect:. the .right of entry, ingress or egress,_of authorized offi- cers,.employees and contractors of-the.CITY OF.LUBBOCK in connec- tion with the full enjoyment of water rights herein conveyed. It is expressly understood and -agreed that no water well shall be drilled by the CITY OF LUBBOCK, its successors or assigns, within one-fourth (1/4) mile of any of the presently existing wind- mill, domestic or livestock wells, the locations of which are de- scribed in Exhibit "B", which is attached hereto and made a part hereof. It is the Grantors' intention by this deed to GRANT, SELL and CONVEY unto.the CITY OF LUBBOCK, its successors and assigns, the percolating and underground,.water in and under and that may be pro- duced -from the tract(s) of_land hereinafter described in Exhibit. "A" (less that previously described one acre), with the rights in- - 4 - cident thereto, and this deed is being made and delivered by the Grantors and accepted by the Grantee with the distinct understand- ing that the conveyance does not cover the surface of said prop- erty, nor any interest in and to any of the oil, gas or other minerals in and under or that may be produced from the said land, and the same is excepted from this conveyance, and the Grantors re- serve unto themselves, their heirs and assigns, all of the surface rights not expressly conveyed, and all of the oil, gas and other minerals in and under and that may be produced from the herein con- veyed property which have not been heretofore conveyed or reserved. TO HAVE AND TO HOLD the above described premises, together with all and singular, the rights and appurtenances thereto in any- wise belonging unto the said CITY OF LUBBOCK, a municipal corpora- tion of Lubbock County, Texas, its successors and assigns forever; and Grantors do hereby bind themselves, their heirs, executors and administrators, to Warrant and Forever Defend all and singular the said premises unto the said CITY OF LUBBOCK, its successors and assigns against every person whomsoever lawfully claiming, or to claim the same or any part thereof. 1988. WITNESS our hands this day of ARCHIE BAKER MILDRED BAKER - 5 - THE STATE OF NEW MEXICO § COUNTY OF CURRY § BEFORE ME, the undersigned, a Notary Public in and for Curry County, New Mexico, on this day personally appeared ARCHIE BAKER and MILDRED BAKER, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of , 1988. Notary Public, State of New Mexico My Commission Expires: EXHIBIT A PROPERTY DESCRIPTION All that certain real estate situated in Bailey County, Texas, more particularly described as follows: Tract I: All of Section Number ONE (1), the East 364.7 acres of Section Number TWO (2), the East 356.4 acres of Section Number THREE (3); the South One-half (S/2) of Section Number FOUR (4); all in Block S-3, John H. Stephens Survey, Bailey County, Texas. TRACT II: The South 477.4 acres of Section Number FIFTY-SEVEN (57), Block Z, W.D. & F.W. Johnson Subdivision, Bailey County, Texas. MAIN RESIDENCE Cr FOREMAN RESIDENCE 1 BAKER/GLAIR FARM 0--- BAILEY COUNTY 67ac. EXHIBIT "8" x I 1 *2 167 ac. LIVESTOCK WORKING FACILITIES *7 $ DENOTES$ 0IRRIGATION WELLS 12S'a X LIVESTOCK WATERING FACILITI ES X _ • DOMESTIC WELLS _ --ACCESS ROADS 1 y 125 ac. ' #k 3 i 0x 1 I I *6 125 ## 9 1 1 X 125 c. x �k12 1 POND 196.5 as 196.5 ac 04 �� 45 1 — — -0— — — Q — — — -- — — — � --� • �� 1 #k 4I;II•A #k11 *12-A *12 10 167 ac. 12500. sQrlo,