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HomeMy WebLinkAboutResolution - 2019 - Lease Agreement - Birdwell Cattle Company - Water Rights - 05/09/1985DGV:cl Resolution #2019 May 9, 1985 Agenda Item#24 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 a Water Rights Lease Agreement between the City of Lubbock and Birdwell Cattle Company, 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 9th day of May , 1985. AL HENRY, MAY ATTEST: Kanettr- tsoya, pity 5ecr APPROVED AS TO CONTENT: am Wahl, Director of water Utilities APPROVED AS TO FORM: n Vanaiver, Assistant City } Resolution #2019 AGRIVEST. INC. P.O. BOX 996. 500 WINDING BROOK DRIVE, GLASTONBURY. CONNECTICUT 06033 (203) 659-3711 May 6, 1985 Mr. J. E. Birdwell Birdwell Cattle Company Route 5 Muleshoe, TX 79347 Res CML Loan #97141-R, Birdwell Cattle Company Dear Mr. Birdwell: AgriVest, Inc. is the agricultural investment advisor to Connecticut Mutual Life Insurance Company and it is in this capacity we are writing. We are in receipt of the Water Rights Lease Agreement that has been negotiated between yourself and the City of Lubbock. We have reviewed the agreement and do not object to it provided that upon advance written notification the City of Lubbock will redirect its annual lease payment to Connecticut Mutual should there be a default in the Connecticut Mutual deed of trust and note. Should you and the City of Lubbock be agreeable to the foregoing, please sign below indicating approval and return a copy of this letter for our records. An original and copy has also been prepared for Birdwell Cattle Company and the City of Lubbock. Upon receipt of this executed document, we will consent to the lease when received. Mr. J. E. Birdwell May 6, 1985 page 2 Should you or any other readers of this letter have any questions, do not hesitate to contact this office. Very truly yours, "e.(015 - William Mf as`cucci _ Director, Portfolio Services WMP:jw encl. cc: F. W. Holder, Jr. Harold Brown, Esq. The foregoing terms and conditions are acknowledged and accepted. BIRDWELL CATTLE COMPANY A Partnership By J. E. 91rdwellf Managing Partner CITY OF LUBBOCK Alan Henry, M yor ATTEST: Ranette oyd, City Sec eta y VOL 1962 PA9264 KF File And Return To Tom "Nivens R -O -W WATER RIGHTS LEASE AGREEMENT . STATE OF TEXAS § COUNTY OF BAILEY § This Agreement entered into by and between Birdwell Cattle Company, a Texas general partnership; hereinafter called Owner, and the City of Lubbock,' a home rule municipal corporation of Lubbock County, Texas, hereinafter called City: WITNESSETH WHEREAS, Birdwell Cattle Company is owner of certain real property located in Bailey County, Texas, which Property is more particularly described in Exhibit "A" attached hereto and made a part hereof for all purposes; and WHEREAS, the said Owner is desirous of leasing the rights to the underground water located under the land described in Exhibit "A", except for such rights to said underground water as may be herein retained by said Owner; and WHEREAS, the said City is desirous of teasing the rights to the underground water located under the land described in Exhibit "A", except for such rights to said underground water as may be herein retained by said Owner; and WHEREAS, the said City finds it to be in the best interest of the citizens of the City of Lubbock 'to acquire the rights hereinafter granted to the City; and WHEREAS, the said Owner finds it to be in their best interest to grant the rights hereinafter set out to the City; NOW THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS: 1. DESCRIPTION: The Owner does by these presents, pursuant to the terms hereof, lease and grant to the City the rights to all underground water located under the following described real property, together with improvements and rights of surface use as herein described, situated in Bailey County, Texas, save as herebelow provided: All that Property described in Exhibit "A" attached hereto and made a part hereof; SAVE AND EXCEPT, Owner retains the right 'to take and use water from the Owner's existing wells, or from any additional wells which City may drill as replacement .wells for any of the said four existing wells, " for domestic uses and livestock watering purposes (not including commercial feedlot purposes),, and, The right to take and use a total of 1044 acre feet during the calendar years 1986 through and inclusive of 1993 for purposes of irrigating grass growing and to be grown upon the property described in Exhibit "A", provided however, such taking and use as provided in this sub -paragraph shall only occur during the period between October 1st through and inclusive of March 30th during the term hereof; and, The right to take and use such amount of water as shall be necessary to establish a crop of grass on the property, provided however such taking and use as provided in this sub -paragraph shall be completed prior to January 1, 1986. Owner shall pay the costs for utilities, per meter readings, incurred in connection with the uses of water as retained in this Paragraph 1. Except for the use by Owner of said wells, including pumps and appurtenances, in connection with the rights retained by Owner, and as otherwise provided in Paragraph 7(d) below, the City shall have the exclusive right to use the existing four (4) wells together with pumps and appurtenances and to modify the existing wells as required to comply with the Texas Department of Health regulations, and shall have the right to use and operate existing pipelines on the Owner's .property described in Exhibit "A" and shown in Exhibit "B". A map showing the location of four (4) existing irrigation wells.is attached hereto as Exhibit "B" and made a part of this Agreement for all purposes. This lease and grant is made by the Owner for the consideration of rents and covenants hereinafter set out. 2. PURPOSE: The purpose of this Agreement is to provide the City with a source of potable underground water during the term of this Agreement and to provide the Owner with a market for such potable -underground water during the term of this 'Agreement. 3. TERM: This Agreement shall take effect upon the date of execution hereof by all parties and shall terminate December 31, 1993, subject to the City having first opportunity to continue said Agreement by amendment executed at such time. If the City and the. Owner fail or refuse to reach an agreement by the time of termination of this Agreement, then the. Owner may negotiate or sell such rights to others. 4. IMPROVEMENTS: As part of the consideration flowing to the Owner and as an inducement to Owner to execute this document, the City agrees to undertake the following: (a) To construct a pipeline gathering system for purposes of transporting said underground water to the City's existing pipeline. The depth to the top of such pipeline shall be not less than 42 inches below the land surface. (b) To modify existing well construction to meet the regulations of the Texas Department of Health. Y01 I962 Pl+GE265 -2- VOL 1992 PmE266 (c) To install the City's well houses on all wells. All equipment such as valves, meters, back-flow prevention devices and other appurtenances necessary for the City's operation and use of the Owner's wells and installed by the City shall be the property of the City and may be removed by the City at the expiration of this Agreement, except as provided in sub- paragraph 4(d) below. All pipelines will remain in place. (d) To maintain the wells and to leave no less than four (4) operable wells at the expiration of the Agreement, the same to be in like condition as when delivered to City, save for reasonable wear and tear, as shall be the other improvements of Owner used by City. However, the City does not guarantee the availability of water from such wells. (e) City shall be entitled, at its sole cost and expense to drill and equip an additional well or wells to replace existing well in case of necessary abandonment of one or more of same, provided at no time shall there be more than four operable wells on the property. (f) At the expiration of this Lease or'use,- City shall pull Owner's pumps from the wells and store- same at a location designated by Owner. 5. DUTIES OF OWNER: The Owner agrees to undertake the following duties and obligations as part of the consideration flowing to the City under this Agreement: (a) To transfer to the City during the term of this Lease all of the Owner's rights under existing contracts for use on the property of electric power from existing electric lines. However, the Owner reserves the right to retain any refunds pursuant to such contract which accrues prior to July 1, 1985 (b) To plant only. tow water use crops from the time of execution of this Agreement until the expiration of this Agreement. (c) To provide the City with access on and after July .1, 1985 , 19851 for the purpose of installing pipelines and equipment. Thereafter access shall be allowed for all required purposes pertinent to, the operation and maintenance of said wells and pipelines. 6. DUTIES OF CITY: The City hereby agrees to undertake the following duties and obligations as part of the consideration flowing to the Owner pursuant to this Agreement: (a) To pay for water during the term of this Agreement as set out in Exhibit "C", which is attached hereto and made a part hereof for all purposes, -3- ■ • a provided said taking shall only be during the period between April '1st through and inclusive of September 30th during the term hereof. (b) To take na more than sixteen (16) acre feet of water per acre during the term of this Agreement. (c) To pay the Owner a total payment of Five Hundred Twenty -Two i Thousand (522,000) Dollars as scheduled in Exhibit "C". (d) To meter the water produced by a meter furnished, installed, operated and maintained by the City, which meter shall be of standard type for measuring properly the quantity of water delivered under this Lease. The Owner shall have access at all times to such metering equipment, but the reading, calibration, and adjustment of the meters shall be done only by employees or agents of the City. The Owner will be notified when the City plans to test or calibrate its meters so that the Owner may be represented if 'so desired. The City shall keep a true record of all meter readings as transacted from the reports of the City's :employees or agents with respect thereto. The City hereby agrees to calibrate its metering equipment as often as it considers necessary and at such time as the Owner may show reasonable evidence of error but not less than once each year. In the event the meter is out of service or out of repair so that the amount of water produced hereunder cannot be ascertained or computed from the reading thereof, the water produced and delivered during the period such meter is out of service or out of repair, shall be agreed upon by the parties hereto, by correcting the error if the percentage of the error is acertainable by calibration tests or mathematical calculations, or by estimating the quantity of production by the deliveries made during preceding periods under similar conditions when the meter was registering accurately.- (e) ccurately:(e) The City shall indemnify and hold harmless the Owner, its Partners, agents and employees from all suits, actions, or claims of any character, type or description brought or made for or on account of any injuries or damages alleged, received or sustained by any person or persons or property, including City's agents or employees, arising out of, or occasioned by the City's .lease of the said underground water, the use of property described in Exhibit "A", and improvements thereon, except for wind erosion or the results of wind erosion on or emminenting from the Property, except as provided in Paragraph '10 hereof. (f) Except for the payment for utilities used by. Owner as provided in Paragraph .1 above; City shall pay all costs and expenses incurred in VOL 1962 PAGE 267 -4- VOL 1962 P46E 268 connection with its operations of and on the property and improvements thereon. 7. JOINT AGREEMENTS: All parties to this Agreement further agree as part of the consideration flowing to each to do the following: (a) The City, by and through its employees, agents and representatives, has personally inspected the well field site and has conducted such tests as are necessary to satisfy the City as to the availability,, quality and quantity of water available, it being understood and agreed that the Owner does not quarantee water availability, potability, quality or quantity and the City is not relying upon any representations of warranties of the Owner with regard thereto. The expense of any treatments or tests necessary to obtain or maintain potability shall be born by the City. (b) The City does not quarantee that at the expiration of this Agreement that there will be any underground water remaining on said property, and Owners, their heirs, successors and assigns shall not hold City responsible for depletion of underground water beneath the Property described In Exhibit "A" hereto attached. (c) The City shall be responsible for construction and maintenance of all power lines, roads, pumps, control equipment, and pipelines used to serve the City facilities during the term of this Agreement. (d) Notwithstanding and in addition to the provisions of Paragraph 1 above regarding Owner's .retained rights, conditioned upon the Consent of City, which shall not be unreasonably withheld, Owner shall be permitted to take and use water from the wells to prevent loss of grass turf due to drought and to prevent soil erosion and land damage. 8. ENVIRONMENTAL AND HEALTH COMPLIANCE: The Owner hereby agrees to abide by the Texas Department of Health regulations regarding land uses adjacent to municipal water supply wells as set out in Exhibit "D". 9. AGREEMENT RUNNING WITH THE LAND: This Agreement between all parties signatory hereto shall be a condition and covenant running with the land described in Exhibit "A" and shall further constitute an equitable servitude thereon and shall bind the Owner and Owner's .heirs and successors in title to such land. Any further conveyance of the land described in Exhibit 'A"'' hereto shall contain this covenant and equitable servitude. It is further agreed by all parties hereto that this 'condition, covenant and equitable servitude shall terminate upon the expiration of this Agreement according to its terms. _5� 10. RIGHT TO ENTER AND OPERATE WELL FIELD: It is understood that the City may at any time after July 1, 1985 have full rights of ingress and egress in, over, and on said lands so that the City may string, lay, construct, and maintain water pipelines, power lines, communication lines, air vents, blowoffs, surge structures, observation wells (provided same are developed without spillage onto the lands) and -access roads on and over said lands necessary or incidental to any of said operations,' together with the right to erect housing for wells and associated equipment, meters and communications equipment, together with easements for the duration of this Agreement for all such purposes, together with the rights to use all that part of said lands reasonably necessary or incidental to the taking of ground water and the production, treating and transmission of water therefrom and delivery of said water to the existing pipelines of the City of Lubbock, and the City shall, within a reasonable time after conducting any construction or maintenance operations on said land, remove therefrom any trash, debris and other material or objects which clutter or detract from the usefulness of said lands to the Owner thereof. it is further understood and agreed to by the City and the Owner that indiscriminate traffic by motor vehicles and equipment is detrimental to the soil and the vegetation on the land surface; therefore, it is hereby agreed that both parties shall restrict the move- ment of such vehicles to roads, well sites, and right-of-way for pipelines and power lines which are existing or may be established in the future. it is further understood and agreed that f rm equipment may perform the normal functions of such equipment in the cultivation and harvesting of crops on land that is in cultivation or may be placed in cultivation in the future. City shall maintain roads on the property in such condition to prevent wind erosion blow -outs. The City shall be free of damage to soil and vegetation caused by construction or maintenance of City's facilities, except as otherwise specifically stated to the contrary herein. Existin natural gas pip,elihes on the Owner's .property and Owner's underground wa er system or other property (except as herein specifically excluded) shall be repaired by the City where same are damaged during construction or opera ions hereunder by the City. Where the City constructs and uses roads across and through boundary, line fences, ' the City shall furnish and install gates equipped with locks, it being understood that locking gates on the outside fences shall inl no way effect the right of entry, ingress and egress' of authorized officers, I employees, and contractors of the City engaged in the business of the City Pertaining to the full enjoyment of water rights herein VOL 1962 PAGE266 -6- VOL 196-2.0 PAGE270 conveyed. Where the City constructs and uses new roads across and through fences within the boundaries of said land, the City shall, at the option of the Owner, furnish and install gates with fasteners but without locks. During construction and for operations hereunder the City shall be allowed access to the leased property across other property owned or leased by the City. The City may make use of existing pipelines situated on the Owner's property described in Exhibit "A" and an existing pipeline situated on the southwest quarter of Section 41, State Capitol Land Block Z. EXECUTED by the parties hereto this 14th day of May 1985. OWNER: B IRDWELL CATTLE COMPANY, CITY OF LUBBOCK: A Partnership By: E. Bir well, Man ging artner Henry, Mayor, ATTEST: anet oyd, City Secretary_ sed APP VED AS TO CONTENT am Wahl, -'Director oWater Utilities APPROVED AS TO FORM: Aon)1d VG. Vandiver First Assistant City Attorney CONSENT AND AGREEMENT: The following corporations, partnerships, and/or persons have an interest in all or a portion of the Land subject to this Agreement: (a) The Connecticut Mutual Life Insurance Company. (b) Small Business Administration, an agency of the Government of the United States of America. The corporations, agency, and/or entities hereinabove named hereby agree that their liens and/or interests in the property shall be subject to the terms of this Water Rights Lease Agreement and will honor this Agreement in accord with said terms and conditions should such corporations, agency and/or entities -7- obtain title to all or part of such land during the term of this Agreement. THE CONNECTICUT MUTUAL LIFE SMALL BUSINESS ADMINISTRATION INSURANCE COMPANY By: AgriVest, Inc., Its Attorney-' F By: By: r Vice President ATTEST.i �G-/� Ee T• �D��` $.r i ctor ..f VOL 1962, PAGE 271 -8- ACKNOWLEDGMENTS VOL 1962 PAGE2 /2 STATE OF TEXAS § COUNTY OF LUBBOCK § This instrument was acknowledged before me on 29 f�••r^ by J. E. BIRDWELL, Managing Partner on behalf of BIRDW -kL C`AT7LE COMPANY, a Partnership. SO o ry bflLubbocicCou t ex My commission expires :_4 �- STATE OF TEXAS § COUNTY OF LUBBOCK § �Thit- instirument was acknowledged before me on by- ALAN HE NF Y, -Mayor of the CITY OF LUBBOCK, a Municipbl Co poration, on behalf of said' orporation. Notary Public, Lubboek County, Texas LSIVCWA My commission expires: / 3 0A 1 S7 -9- EXHIBIT "A" THE FOLLOWING DESCRIBED FOUR TRACTS ARE ALL SITUATED IN BAILEY COUNTY, TEXAS, TO -WIT:. A tract of land containing 156.8 acres, more or less, out of the Southwest part of Section Number Twenty Five (25), Block Z, W. D. & F. W. Johnson's -Subdivision, Bailey County, Texas, as shown by Sylvan Sanders plat recorded in Vol. 64, Page 181, Deed Records of Bailey County, Texas, and commonly referred to as the Southwest Quarter (SW/4) of Section Number. Twenty Five (25), Block Z, W. D. & F. W. Johnson's Subdivision, Bailey County, Texas. A tract of land containing 162.9 acres, more or less, out of the Southeast part of Section Number Forty (40), Block Z. W. D. & F. W. Johnson's Subdivision, Bailey County, Texas, as shown by Sylvan Sanders plat recorded in Vol. 64, Page 181, Deed Records of Bailey County, Texas, and commonly referred to as the Southeast Quarter (SE/4).of Section Number Forty (40), Block Z, W. D. & F. W. Johnson's Subdivision, Bailey County, Texas. A tract of land containing. 169.11 acres, more or less, out of the Southwest part of Section Number Forty (40), Block Z, W. D. & F. W. Johnson's Subdivision, Bailey County, Texas, as shown by Sylvan Sanders plat recorded in Vol. 64, Page 181, Deed Records of Bailey County, Texas, and commonly referred to as the Southwest Quarter (SW/4) of Section Number Forty (40) Block Z, W. D. & F. W. Johnson's Subdivision, Bailey County, Texas. F3 TRACT A tract of land containing 175.3 acres, more or less, out of the Southeast part of Section Number Forty One (41), Block Z, W. D. & F. W. Johson's Subdivision, Bailey County, Texas, as shown by Sylvan Sanders plat recorded in Vol. 64,. Page 181, Deed Records of Bailey County, Texas, and commonly referred to as .the Southeast Quarter (SE/4) of Section Number Forty One (41)., Block Z, W. D. & F. W. Johnson's Subdivision, Bailey County, Texas. VOL 1962 .PA 2'73 r EXHIBIT "S" vol 1962 PAu274 ■ Y -141B 17-"C ., PROPOSED PAYMENT SCHEDULE July 1985 January 1986 January 1987 January 1988 January 1989 January 1990 January 1991 January 1992 January 1993 $260,310 No Payment 37,384 37,384 37,384 37,384 37,384 37,384 37,386 522,000 VOL 1.992 PAM275 E X H I B I T "D " VOL 1962 PmE 276 EXCERPT, FR -OM: RULES and REGULATIONS for PUBLIC WATER SYSTEMS, Texas Department of Health, Water Hygiene Division, 1978, page 8, which are in effect in February 1985. "(c) Ground water sources and development. (1) Ground water sources shall be so located that there will be no danger of pollution from flooding or from insanitarysurroundings, such as cesspools, privies, sewage, livestock and animal pens, solid waste'disposal sites, or abandoned and improperly sealed wells. (A) No well site which is within 50 feet of a tile or concrete sanitary sewer, septic tank, or storm sewer, or which is within 150 feet of a cesspool or septic tank open -jointed drainfield will be acceptable for the development of a public drinking water supply well. Sanitary or storm sewers constructed of materials as specified in .005(c)(1)(A) may be located at distances of less than 50 feet from a proposed well site provided that written approval from this Department is. obtained prior to construction of the well. (B) No. -well site shall be selected which is within 500 feet of a sewage treatment plant or within 300 feet of a sewage wet well, sewage pumping station, or a drainage ditch which contains.industrial waste discharges or the wastes from sewage treatment systems. (C) No water wells shall be located within 500 feet of animal feed lots, solid waste disposal sites or lands irrigated by sewage plant effluent. (D) Livestock in pastures shall not be allowed s_= within 50 feet of water supply wells. (E) Abandoned water wells in the area of a proposed source shall be plugged and sealed properly to prevent possible contamination of fresh water strata. The procedures and methods to be followed in plugging and sealing we'll s shall be obtained from the Texas Department of Water Resources, Austin, Texas. (F) A sanitary control easement covering that portion of the lands within 150 feet. of the well location shall be secured from all such property owners, and recorded in the deed records at the county courthouse. The easement shall provide that none of the pollution hazards covered above or any facilities that might create a danger of .pollution to the water to be produced from the well will be located thereon. Copies of the recorded easements shall be submitted with plans -.and specifications submitted.for review." SPECIAL AND LIMITED POWER OF ATTORNEY CONNECTICUT MUTUAL LIFE INSURANCE COMPANY A CONNECTICUT CORPORATION to AGRIV[ST' INC. -A CONN KNOW ALL MEN BY THESE PRESENTS' which are intended to constitute a special and limited power of attorney, that the undersigned Connecticut Mutual Life Insurance Company, a Connecticut corporation having its principal place of business at 140 Garden Street, Hartford' Connecticut 06154 hereinafter referred to as "Principal" does hereby appoint AgriUeat' Inc., a Connecticut corporation' hawing its principal place of business at Glastonbury, Connecticut 06033^ hereinafter referred to as "Agent," as attorney in fact to act in the name, place and stead of Connecticut Mutual Life Insurance Company, with respect to the following matters: l. Tu execute modifications of promissory notes' mortuanas, and deeds of trust; extensions of principal to nut later than existing maturity; partial releases; releases of personal liability; assumption agreements; full payment statements; satisfactions or releases of mortgage; satisfactions or releases of deeds OF trust; substitutions of security; equipment lien waivers; non -disturbance agreements; subordination of mortgage or dead of trust to mineral leases; deeds OF easements and rights of way; and endorsements of Ioan drafts and chocks for damage to property, all in connection with the Agricultural Investment PurtfoIiO of Principal. 2. Notwithstanding anything to the contrary contained herein, Agent shall have no pouer, on behalf OF Principal to execute any document, or take any actiun, not specified above. J. The powers granted under this Special and Limited Power of' Attorney may be changed or, reduced at any time, and this Special and Limited Power of Attorney may be revoked at any time, by written instrument duly executed by Principal. 4. Agent is hereby empowered to act pursuant to this Power by and through its President or Vice President. Agent is granted no authority under this Power to delegate any of the foregoing powers to any other parson or persons. 5. The following is a specimen of the form of signature to be used by Agent when actino pursuant to this Power. CONNECTICUT MUTUAL LIFE INSURANCE COMPANY, a Connecticut Corporation By: AGRIUEST' INC.' Its Attorney -in -Fact 8v: Its [President) [Vice President] IN WITNESS WHEREOF', Connecticut Mutual Life Insurance Company' declares uodor the penalties of perjury that it has examined this Special and Limited Power of Attorney and to the bast of: its knowledge and belief it is true and correct and complete and has caused this Special and Limited Power of AtLornax to be executed as of the 17th day of April, 1985. CONNECTINSURANCE ATTEST: COMPANY By C~^�^sls+=ntSecretary ____ Executive Vice President STATE OF CONNECTICUT) COUNTY OF HARTFORD '~ On April 17' 1985, bafure mm' the underoionad°.d`Ndtary Public in and For said County and State, paroonmIIx appeared Robert E. Stevens, known to ma to � be the Executive Vice President, and JuIyan A. Butler, knmunto ma to be the - Assistant Secretary of Connecticut Mutual Life Insurance Company, the corporation that executed the within instrument on behalf f the�i C� therein named, and acknowledged to me that such corporation exec,d within instrument. Witness my hand and official eamI. My Commission expires: 3/31/89 --------------------- Sed