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Res 150-88 7/19/1988RESOLUTION NO. J —, /-/ RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO LEASE FOR OIL, GAS AND OTHER MINERALS CERTAIN LANDS LOCATED AT LAKE ARROW- HEAD IN ARCHER COUNTY, TEXAS. WHEREAS, the City of Wichita Falls has received a request that certain land owned by the City in Archer County in the south side of Lake Arrowhead be leased for oil, gas and other minerals. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. It is advisable, under proper circumstances, to lease for development of oil, gas and other minerals the following described tracts of land situated in Archer County, Texas, to -wit: Tract 1. 35.03 acres, more or less, out of Lot No. 4 in Block 3 of the Clark and Plumb Subdivision according to the plat recorded in the deed records of Archer County, Texas, said 35.03 acres, more or less, being described in that certain deed dated September 15, 1965, from W. A. Morath and wife, Hattie Morath, to the City of Wichita Falls, which deed is recorded in Volume 308, Page 86, Archer County Deed Records. Tract 2. 54.96 acres, more or less, out of Lot No. 3 and Lot No. 20 in Block 3 of the Clark and Plumb Subdivision, according to the plat recorded in the deed records of Archer County, Texas, said 54.96 acres, more or less, being described in that certain deed dated September 25, 1965, from Nick Schenk and wife, Mary Schenk, to the City of Wichita Falls, which deed is recorded in Volume 308, Page 213, Archer County Deed Records. SECTION 2. Any such oil, gas and mineral lease shall provide for at least 3/16 royalty, and shall have a primary term of no more than 3 years. SECTION 3. Most of the above property is located below the 926 foot elevation contour, which is the spillway elevation of Lake Arrowhead; no actual drilling nor any other operations may occur on the property below the 926 foot elevation contour. No actual drilling nor other operations may occur on the property above the 926 foot elevation contour unless the location of each a, well is approved in advance by the City, and the methods used in drilling and producing such well meet all of the specifications to be required by the City for protecting the water in the lake. SECTION 4. Any such lease may contain a pooling provision. SECTION 5. A separate lease will be considered on each tract, but a bid on a portion of a tract will not be considered. SECTION 6. City shall give notice of intention to lease such land by publication once a week for three consecutive weeks in a newspaper published in Archer County, the county in which the land is located, which notice shall describe the land and designate the time and place at which the City Council will receive and consider bids for such lease. SECTION 7. City will not warrant the title to the minerals in such land. The City apparently owns all the minerals, subject to outstanding non - participating royalty interests. SECTION 8. The City Council will reserve the right to reject any and all bids, and give notice and call for additional bids, if same is determined to be in the best interest of the City. PASSED AND APPROVED this the 19th day of July, 1988. ATTEST: City tlerk M A Y R