Res 1764 2/3/1976RESOLUTION NO. /76VV
RESOLUTION APPROVING CONTRACT WITH
SANFORD P. FAGADAU FOR SALE OF RAW
WATER FROM LAKE ARROWHEAD FOR OIL LEASE
WATERFLOOD.
WHEREAS, Sanford P. Fagadau is the Unit Operator
of the Grinke Unit, which is composed of several oil leases
or portions of leases in Clay County, Texas east of Lake
Arrowhead, which unit was created under and by virtue of
the authority of the Railroad Commission of Texas by Oil
and Gas Docket No. 9-64710 and approved on January 22nd,
1975; the Unit Agreement establishing such Grinke Unit
is recorded in Volume 274, Page 1 of the Clay County Deed
Records; and
WHEREAS, Mr. Fagadau plans to waterflood this unit
and he desires to purchase raw water from Lake Arrowhead
for this purpose, up to a maximum of 3 , 000 barrels (126,000
gallons) per day.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN
OF THE CITY OF WICHITA FALLS, TEXAS , THAT:
That certain contract, a copy of which is attached hereto,
between the City of Wichita Falls and Sanford P. Fagadau,
providing for the sale of raw water from Lake Arrowhead
for waterflood purposes, is hereby approved, and the City
Manager is authorized to execute the same for the City of
Wichita Falls.
PASSED AND APPROVED this the 3rd day of February,
1976.
M A Y O R
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ATTEST:
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C TY CLERK
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THE STATE OF TEXAS X
COUNTY OF CLAY X
Contract for Sale of Raw Water for Waterflood
This agreement made and entered into this the 3rd day of
February, 1976 , between the City of Wichita Falls, Texas, here-
inafter called "City" , and Sanford P. Fagadau, hereinafter called
Fagadau" ,
WITNESSETH:
WHEREAS, Sanford P. Fagadau is the Unit Operator of the
Grinke Unit, which is composed of several oil leases or portions
of leases in Clay County, Texas east of Lake Arrowhead, which
unit was created under and by virtue of the authority of the
Railroad Commission of Texas by Oil and Gas Docket No. 9-64710
and approved on January 22, 1975; the Unit Agreement establishing
such Grinke Unit is recorded in Volume 274, Page 1 of the Clay
County deed Records; and,
WHEREAS, Mr. Fagadau plans to waterflood this unit, and
r thishedesirestopurchaserawwaterfromLakeArrowheadfor
purpose, and the City of Wichita Falls is willing to sell him
water for this purpose.
NOW, THEREFORE, for and in consideration of the mutual
covenants herein contained, City and Fagadau do hereby agree
as follows:
City agrees to sell to Fagadau raw water from Lake Arrowhead
to be used for waterflooding the Grinke Unit described above.
The maximum amount of water to be sold under this contract shall
be 126 ,000 gallons per day.
It is agreed that Fagadau will pay to the City for such
water at the rate of fifteen cents (150) per thousand (1, 000)
gallons, and such water shall be pumped from the lake by Fagadau
at no cost to City.
Fagadau shall furnish and maintain at his expense at the
pumping site metering equipment of a standard type acceptable
l
to City, and City shall have the right to test such meter at all
reasonable times.
City shall bill Fagadau monthly for the water used during
the previous month, and Fagadau shall pay for such water within
thirty days after the date of such bill.
This contract shall extend for a period of fifteen years
from the date hereof, or as long as oil is produced in paying
quantities from such Grinke Unit, whichever is shorter.
Fagadau must secure a valid permit or other authority
from the Texas Water Rights. Commission for the use of such
water before delivery will be made of any water called for
under the terms of this contract.
It is understood that the rate paid for water under this
contract shall be subject to change at such times as the water
rates within the City of Wichita Falls are changed. Whenever
such rates within the City of Wichita Falls are changed, the
rates to be paid by Fagadau under this contract shall be changed
proportionately.
At any time of drought, or other time when there is insuffi-
cient supply of water for municipal purposes, City reserves the
right to curtail the amount of water to be sold to Fagadau
hereunder; provided, however, that such amount shall not be re-
duced below 25, 000 gallons per day without City' s first giving
Fagadau two months notice so that he can develop a new source of
water supply.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed as of the day and year first above
stated.
CITY OF WICHITA FALLS, TEXAS
By:
Gerald G. Fox
City Manager
ATTEST:
CITY CLERK
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Approved as to form:
CITY ATTORNEY
Sanford P. Fagadau
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