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Res 196-88 10/4/1988RESOLUTION NO. lfl - 0 RESOLUTION ACCEPTING BIDS FOR OIL, GAS AND MINERAL LEASES ON TWO TRACTS OF LAND OUT OF LOTS NO. 4, NO. 3 AND NO. 20 IN BLOCK 3 OF THE CLARK AND PLUMB SUBDIVISION, ARCHER COUNTY, TEXAS, NEAR LAKE ARROWHEAD. WHEREAS, the City of Wichita Falls has advertised for bids for oil, gas and mineral leases on two tracts of land in Archer County, Texas, described as follows: 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. WHEREAS, two sealed bids were received and opened by the City Council, and considered by the Council at a public hearing on October 4, 1988; and, WHEREAS, 3 -T Exploration, Inc., who bid $25.00 per acre bonus, with 3 /16ths royalty, and a primary term ending June 21, 1991, for a lease on Tract 1, is found to be the highest and best bidder on that tract; and, WHEREAS, 3 -T Exploration, Inc., who bid $20.00 per acre bonus, with 3 /16ths royalty, and a primary term ending November 30, 1989, for a lease on Tract 2, is found to be the highest and best bidder on that tract. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Such bids of 3 -T Exploration, Inc. are hereby accepted, and the City Manager is authorized to execute oil, gas and mineral leases to said bidder. Such leases shall provide no actual drilling nor other operations may occur below the 926 foot elevation contour, and no actual drilling nor other operations may occur above the 926 foot elevation contour unless the location of each well is approved in advance by the City, and the methods used in exploring, drilling and producing must meet all of the specifications required by the City for protecting the water in Lake Arrowhead. Prior to commencement of drilling a well, Lessee shall pay to City the applicable surface damages; after completion of a well, and after plugging and abandonment of a well, Lessee shall restore the surface as near as practicable to the condition that existed before the drilling. PASSED AND APPROVED this the 4th day of October, 1988. 1 ►_ mow WIN ATTEST: City Clerk