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Res 186-82 10/19/1982RESOLUTION NO. 46--4a RESOLUTION APPROVING BID OF LESLIE B. FINNELL, JR. AND APPROVING OIL AND GAS LEASE ON 73 . 3 ACRES, MORE OR LESS, AT LAKE KICKAPOO, ARCHER COUNTY, TEXAS. WHEREAS, the Board of Aldermen of the City of Wichita Falls has determined that it is advisable to lease for oil and gas the land hereinafter described, and published notice of its intention to lease such land in accordance with Sections 71. 004 and 71. 005 of the Texas Natural Resources Code; and, WHEREAS, at the meeting on September 21, 1982 , the date specified in such notice, the Board of Aldermen has received, opened and considered, at a public hearing, the bid received, in accordance with Section 71. 006 of such code; and, WHEREAS, the Board of Aldermen believes that the bid of Leslie B. Finnell , Jr. , of $5. 50 per acre represents the fair value of the lease on such property. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS , THAT : Such bid of Leslie B. Finnell, Jr. for $5. 50 per acre is hereby accepted, that certain oil and gas lease, a copy of which is attached hereto, between the City and such bidder is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. PASSED AND APPROVED this the 19th day of October, 1982 . 111" Fr. k: A Y 0 R ATTEST: e. Cit Clerk OIL AND GI c LEASE x,,, ,,;' i A(R L:Lt:1 Made and entered into this 21st day of c rite Jvr ly ' A v` - 1-:.+ wk,ar - .. st«''' hyandhos.,,n City of Wichita Fal s T- .s a M. • •••• •• T_ Wichita Falls, Texas b Party of the First part,hereinafter called lessor (whether one or more) and " . - T,.sli.e B. Finnell Jr. P.D. Drawer Z, Wichita Fa11s,TX.76308 Party of the second pan, hereinafter called lessee. WITNESSETH,That the said lessor. for and in consideration of=Ten and DVC----_-------_.,. DOLLARS Halt in hand paid, receipt of which a hereby acknowledged and of the covenants and agreements hereinafter contained on the part of lessee to be paid,kept and performed,has granted,demised,leased,and Fa and by these presents doe. grant. demise, lease and let unto the said lessee, its ' _ successors and assigns for the sole and only purposes of surveying by geological, geophysical and all other methods.mining and operating for oil and gas,which terms include but not by way of limitation,casinghcad gas„easmghead•gasoline, distillate, condensate and all other liquid sad VISCOUS hydrocarbons, and laying pipe lines, and•building tanks,powers, stations and structures thereon to produce, save and take care of saidst products, all that certain tract of land. together with any reversionary rights therein.situate in the County of Archer State of, Texas described u follows,tow 73.3 acres of land, :Tore or less, described and identified in Exhibit A,- attached hereto and made a part hereof for all purposes. i,,,a, It is spiced that this lease 3)c shall remain in Corse for a term of years from date, and as long thereafter as oil or gas, or either of them,is produced from.acid land by the lessee,its.successors and assigns. In consideration of the premises the said lessee covenanu and agrees; yf' +,"mot `ss- >+''-r.” rt t *"'r';.` 1/1,First,The lessee shalt deliver to the credit of lessor as royalty, free of cost in the pipe line to which lessee may connect it wells,the equalnte•eighch part of all oil and other liquids produced and saved from the leased premises, or, at lessee's option, may buy or sell such anwetasbilt3/1. royalty and pay lessor the market price for oil or other liquid of like grade and gravity prevailing in the field on the day such oil or other liquid is run into pipe lines or into storage tanks. a r_ a Second.To pay lessor 3/16 • of the market value at the well for gas from each well where gas only is found and used off the ey", ?..'`. .lit.'s s„! 'r; '"` " premises,and lessor to have gas free of cost from any such well for all stoves and all inside lights in the principal dwelling house on eucb hod during the same time by making his awn connections with the well at his own risk and expanse. Third,To pay lessor , 3/16 gasoline - . f the market value at the well for gas produced from any ail well and used off the premises,or for the If n of swell befcomme ced onsaid land on or before commercial Z1Stday of September 19 83 this lease shall terminau as to both parties,unless the lessee on or before that date shall pay or tender to the lessor or to the lessor's credit in the YParkerSquareBankBankat Wichita Falls, Texas or its successor or successors,or any bank with which it may be merged,or consolidated, or which succeeds to its business or assets or any part thereof. by urchase or otherwise,which shall continue as the depository regardless of changes fn the ownership of the said land, the sum of ;,, Seventy Three and 30/100 DOLLARS. r.,..:4;-%,'..,-,.....:......",f,'..7-?';.'.- which shall operate as a rental and cover the privilege of deferring the commencement of a well for twelve months from said date. In like manner and upon Iike payments or tenders the commencement of a well may be further deferred for like periods of the same number of . " s.-_.-- months successively. And it is understood and agreed that the consideration'first recited herein, the down payment, covers not only the pm•tleges granted to the date when said first rental is payable as aforesaid, but also the lessee's option of extending that period as aforesaid, and any and al! other rights conferred. Rentals may be paid by check or draft and may be remitted by mail. Mailing of rental on or before the rental-paying date shall be deemed a timely tender thereof and shall preclude termination of this lease. Notwithstanding the-death of the lessor. - ".... or his successor in interest, the payment or tender of rentals in the manner provided above shall be binding on the heirs,devisees, executors and administrators of such person. Should any well drilled on the land above described be a dry hole or cease to produce and there are.no other producing well or wells on the land or drilling operations are not being conducted thereon, then and in that event if a well is not commented before the next rental paying date this lease shall terminate as to both parties, unless the lessee on or before the next rental paying date-shall resume the payment of rentals in the same amount and in the same manner as hereinbefore provided, and it is agreed upon the resumption of the payment of rentals, as above • • provided,the last preceding paragraph hereof, governing the payment of rentals and the effect thereof, shall continue in force as though there, had been no interruption in the rental payment. If mid lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein,then the royalties and ,` f. - M s47. sitj,4, ` - ,r •.,.- , rentals herein provided shall be paid the lessor only in the proportion which his interest bears to the whole and undivided fee. However. such rentals shall be increased at the next succeeding rental anniversary after lessee has been notified of any reversion having occurred to cover the interest so acquired. Lessee shall have the right to use,free of cost,gas,oil and water produced on said land for its operations thereon, except water Irom well a ,,' of lessor.Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw ant: , .'v K "r-t'e' 3rf '+k-" remove casing. Lessee shall pay for damages caused by its operations to growing crops on said lands. When requested by the lessor, lessee shall bury his • _ - pipe lines below plow depth, No well shall be drilled nearer than 200 feet to the house or barn now on said premises,without the written con- scat of the lessor. Lessee shall have the right to drill to completion with reasonable diligence and dispatch (7) any well commenced within the term of this lease and (2) any well commenced before the completion of a well which has been commenced within such term. If oil and gas or either of them be found in paying quantities in any such well,this lease_ shall continue and be in force with like effect as if such well had been completed within the terms of years herein first mentioned. Lessee is hereby granted the right and power to pooi or combine the acreage covered by this least,or any portion thereof,with other land, lease or leases in the vicinity thereof at any time and from time to time, whether before or after production. when in Lessee's judgment it is necessary or advisable to do so for the prevention of waste and the conservation and greatest ultimate recovery of oil or gas. Such pooling shat be into a unit or units not exceeding in area the acreage prescribed or required in any Federal or-Scats law, order, rule or regulation for the - drilling or operation of one well, f Such pooling shall be effected by Lessee's executing and filing in the office where this lease is recorded an instrument identifying and describing the pooled-acreage. The production of pooled substances and devel- - oament and operation on any portion of a unit so pooled,including the commencement, drilling, completion and operation of a well thereon, s shall be considered and construed, and shalt have the same effect, except for the payment of royalty, as production, development and opera- bon on the leased premises under the terms of this lease.The royalties herein provided shall accrue and be paid to Lessor on pooled substances produced from any unit in the proportion, but only in the propcirtion, that Lessor's acreage interest in the land covered hereby and placed in the , unit bears to the total acreage in the land placed in each unit. If the estate of either party hereto is assigned,and the.privilege of assigning in whole or in part is expressly allowed,the covenants hereof shall extend to their heirs, executors, administrators, successors or assigns,but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until after the lessee has been furnished with a written transfer or assignment or a certified copy thereof; and it is hereby agreed m the event this lease shall be assigned as to a part or parts of the above described lands and the assignee or assignees of such part or parts shall fail or make default in the payment of the prnportiona_t p art of the rents due from him or them, such de• fault shall not operate to defeat or affect this lease in so far as it covers a part or parts of said lands which the said lessee or any assignee thereof shall make due payment of said rentals. An assignment of this lease, in whole or in part, shall as so the extent of such assigrser.: .,,,t,.y ;rytf"w9'3R'•7'".!'K:.yi'sir`,-,ytx G,,::relieve and discharge the lessee of all obligations hereunder, Compliance with any now or hereafter existing act,bill or statute purporting to be enacted by any Federal or State legislative authority, or with orders,judgments,decrees,roles, regulations made or promulgated be State or Federal courts. State or Federal offices, boards, eomm'Leiuna or committees purporting to be made under authority of any such act,bill or statute,shall not constitute a violation of any of tlse :rtes ,: :ht. lease or be considered a breath of any clause, obligation, covenant, undertaking, condition or stipulation contained herein, nor shall it be err } t''+. constitute a cause for the termination, forfeiture, reversion or resesung of any estate or interest herein and hereby created and act out,nor shall any such compliance confer any right of entry or become the basis of any action for damages or suit for the forfeiture or cancellation hesevf: and while any such purport to be in force and effect they shall,when complied with by lessee or assigns, to the extent of such compliance op. trate as modifications of the terms and conditions of this lease where inconsistent therewith. Lessee may-as any time surrender this lease, in whole or in part, by delivering or mailing a release to the lessor,or by plaaog a recast.of . record in the proper county, Lessor hereby releases and relinquishes any right of homestead, dower of tummy they or either of them may have in or to the leased land Lessor hereby agrees that the lessee shall have the right at any time to redeem for lessor, by payment, any mortgage, uses or outset lens on the above described lands to the event of default of payment by lessor, and be subrogared to the rights of the holder thereof. These lease and all its terms, conditions and stipulations binds each ese;..,r.g lessor and shall extend to and be binding on his assigns, w.., .......heirs L d<vures and sutstuors, and those of the lessee, though unsigned by :or lessors named herein. No drilling rlvy occur on the leased premises until the location of any well(s) is approved by t"ue City of Wichita Falls, and it must Ileet specifications designed to protegI aatte_r i.^.n; 't ITNEss V'HElttor,lair sign the day and year Iirs:above written. L` AY•it" ='r` t",''°'f .- v4 St'y,,;.. :.*." '4' '3`Z' SEAL)CITY OF WICHITA FALLS TF'K11S rat SEAL)by: S!_1r_) C:S'i'S'Z'r.':'rn,'SEAL) SEAL I Page 4 _ of 19 Pages ArTPT1rL,n If-PM TTn- Tract 1: Being all of the Juana Hensely Survey, Abstract 1096, and being the same land conveyed by a Warranty Deed from Etta Forgy to E. R. Fain April 14, 1924, and recorded in Page 341, Volume 81 of the Deed Records of Archer Couty, Texas: BEGINNING at a point on the North line of the G. W. Dugan Survey,.Abst. 1193, and running thence North 637.6 feet k;a• ;;;;: ;; ';; ::f to a point on the South line of Survey No. 174, in the name of Robert Carson; Thence West with the South line of the Robert Carson Surveys Nos. 174 and 175, 4286 feet to a stone the N.W. corner of this survey and the S.W. corner of the Robert Carson Survey No. 174; Thence South 656.3 feet to a point on the North line of the said G.W. Dugan Survey, the said point being the S.E. corner of the J.D. Lyles Survey, Abst.1105; Thence East with the North line of the said Dugan Survey 4300 feet to the place of beginning and containing 73.3 acres of land, more or less. EXHIBIT "A" Attached to and made a part of that certain OIL & GAS LEASE, dated September 21, 1982, by and between CITY OF WICHITA FALLS,,TX., 4 as.lessor, and LESLIE B. FINNELL JR. , as lessee. Page 5 of . 19 Pages Agenda_•z.tem No.