Res 204-85 12/17/1985RESOLUTION NO. 204-85
RESOLUTION APPROVING LICENSE FOR EXPLORATION AND
PRODUCTION OF METHANE GAS AT OLD RIVER ROAD CLOSED
LANDFILL TO CLARK ENERGY, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS , TEXAS , THAT :
That certain license for exploration and production of
methane gas at old River Road closed landfill, a copy of which is
attached hereto, to Clark Energy, Inc . , is hereby approved, and
the City Manager is authorized to execute the same for the City
of Wichita Falls .
PASSED AND APPROVED this the 17th day of December, 1985 .
M A Y O R
A/10101°.'
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ATTEST :
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City Clerk
LICENSE FOR EXPLORATION AND PRODUCTION
OF METHANE GAS AT OLD LANDFILL
WHEREAS, the City of Wichita Falls, Texas ("City") is the
owner of an interest in a tract of land containing 52 acres, more
or less, out of the southeast quarter of the J.A. Scott Survey
No . 14 , Abstract 304 and the northeast quarter of the J .A. Scott
Survey No. 12 , Abstract 296 , in Wichita Falls, Wichita County,
Texas, said tract being more fully described by metes and bounds
in Exhibit A, which is attached hereto and incorporated herein;
and,
WHEREAS, City formerly operated a sanitary landfill on such
tract, but such landfill has been closed and is no longer used as
such by the City; and,
WHEREAS, it is believed that the solid waste which has been
buried by City in this landfill has generated methane gas, and that
such gas can be produced and used as a power source for a combustion
engine which could run a generator and produce electricity which
could be sold; and
WHEREAS , City owns only the surface to most of such tract of
land; it is City' s position that such methane gas does not consti-
tute a part of the mineral estate, but rather it belongs to the
surface owner as it is a product of solid waste which was deposited
on the surface by City, the surface owner; and,
WHEREAS, City has been requested to execute an agreement with
private parties which would allow them to produce such methane gas
from this tract by drilling a hole or holes into the old closed
landfill .
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that City, for
and in consideration of One Dollar ($1 .00) and other valuable
consideration, including the receipt of payment of a portion of the
proceeds from the sale of the electricity generated and sold by the
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use of such methane, does hereby grant unto Clark Energy, Inc .
a license to go upon the above-described land for the purpose of
investigating, exploring and drilling for and producing methane
gas from the old closed landfill located on such tract .
This license shall be in force and effect for a term of
three (3) years and as long thereafter as such methane gas is
produced from such landfill.
Clark shall pay to City an amount equal to 10 % of the proceeds
received from the sale of the electricity generated by the use of
such methane gas; if such gas is sold, Clark shall pay City 10 %
of the proceeds received from the sale of such gas . It is under-
stood that such payment from production shall be net to the City, and
shall not be reduced, even though Clark may also make payments to
mineral owners or other parties .
Clark shall not conduct any operations on such land without
first obtaining proper authorization from the Texas Department of
Health . Clark will be required to obtain any and all permits
required by such Department of Health, and shall at all times comply
with all rules and regulations of the Department of Health and
all other applicable rules, statutes and ordinances .
At such time as the project is terminated, Clark shall plug
all wells and remove all their equipment in compliance with all
Texas Department of Health rules and regulations, and all other
applicable rules, statutes and ordinances . In addition, Clark
shall return the surface of the tract to as near as possible the
condition it was in at the commencement of this license.
This license may not be assigned by Clark without the express
written permission of City, which permission will not be unreason-
ably withheld .
By accepting this license, Clark agrees that it will indemnify
and hold harmless City from all claims and causes of action for
damages to persons and property arising out of its operations
under this license. Clark also agrees that it will perform, for
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itself and City, any requirements made by the Texas Department of
Health regarding the landfill which are brought about by this
license .
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