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HomeMy WebLinkAbout0082_755 AN 01WINANCE DET&MINING TILNT IT IS ADVISABLE TO SILL AN OIL, GAS, AND MINL1WL LEASE ON CLIZTAIN LANDS BLLONGING TO T1IE CITY OF GEORGETO't N, TEXAS, AND PROVIDING FOR T11E GIVING OF PUBLIC NOTICL OF SAID PROPOSED SALE IVIiL;U AS, Article 54211), Revised Civil Statutes of Texas, prescribes the procedure for the selling of leases for mineral development purposes by political subdivisions of the State of Texas; and WIILHEAS the City of Georgetown, Texas, now owns the following tract of land, hereinafter described more fully; and WHEREAS the City Council of the City of Georgetown is the duly authorized gov erning body of said City, NOW THE11LEFOUE: BE IT ORDAINED BY TILL CITY COUNCIL OF TIIE CITY OF GEORGETOWN, TIMS: SECTION I. and includes, in addition to the above-described tract containing 478.19 acres, more or less, all land, if any, contiguous or adjacent to or ad'oin- ing the land above described and (a) owned or claimed by lessor, or (bj which lessor has the right to include in this lease, or (c) as to which lessor has a preference right of acquisition. Such lease is to contain a provision authorizing the lessee to pool or unitize the rights covered by such lease in oil or gas on, in, or under the above-described land with any other lands, leases, mineral estates, or parts thereof, to form a drilling or spacing unit or units for the exploration, development, and production of oil or gas; provided, the drilling or spacing units shall not exceed the minimum number of acres upon which an oil or gas well may be located in order to comply with the rules, regulations, or orders of the Railroad Commission of Texas or any other regulatory body, state or federal, having authority to control or regulate the spacing of such oil or gas wells; such lease also to contain a provision prohibiting lessee from conducting under the terms of said lease any operations upon the surface of said land but providing that lessee shall have the right of exploring, drilling, mining and operating for and producing any or all oil, gas or other minerals covered by said lease in and under said land by operations located on lands pooled or unitized therewith and/or through any operations which do not involve the use of the surface of said land. SECTION II. (a) That an oil, gas and mineral lease on said tract of land is to be sold at public auction to be held in the City of Georgetown, Texas, at the City Ball on the 9th day of October, 1967, at 8:00 o'clock P.M., by the City Council of the City of Georgetown, Texas. (b) That the lease will be awarded to the highest and best bidder submitting a bid therefor; provided, that the City Council reserves the right to reject, in its discretion, all bids submitted if none of them represent the fair value of said lease. (c) That the royalty to be reserved in said lease shall be at least one-eighth; provided, however, that on production from a pooled unit only such proportion of the royalty provided for in such lease shall be due as the amount of lessor's acreage in the unit or its royalty interest therein on an acreage basis bears to the total acreage contained in the unit. The City of Georgetown, T xas, acting through its City Council, hereby determines, in its discretion,pthat it is advisable to lease the following described tract of land for mineral development purposes: M 478.19 acres, more or less, out of the David Wright League, Abstract 0 13, Williamson County, Texas, being all of that certain tract con- taining 598.69 acres of land, more or less, described in deed dated V January 24, 1942, executed by J. F. Hausenfluck et al. to the City of Georggtown, recorded in Volume 312, at page 121, of the Deed Records of Williamson County, Texas, save and except that certain tract containing 120.5 acres of land, more or less, described in deed dated October 14, 1946, executed by the City of Georgetown, Texas, to Sam Harris, Sr., recorded in Volume 339, at page 437, of the Deed Records of Williamson County, Texas; and includes, in addition to the above-described tract containing 478.19 acres, more or less, all land, if any, contiguous or adjacent to or ad'oin- ing the land above described and (a) owned or claimed by lessor, or (bj which lessor has the right to include in this lease, or (c) as to which lessor has a preference right of acquisition. Such lease is to contain a provision authorizing the lessee to pool or unitize the rights covered by such lease in oil or gas on, in, or under the above-described land with any other lands, leases, mineral estates, or parts thereof, to form a drilling or spacing unit or units for the exploration, development, and production of oil or gas; provided, the drilling or spacing units shall not exceed the minimum number of acres upon which an oil or gas well may be located in order to comply with the rules, regulations, or orders of the Railroad Commission of Texas or any other regulatory body, state or federal, having authority to control or regulate the spacing of such oil or gas wells; such lease also to contain a provision prohibiting lessee from conducting under the terms of said lease any operations upon the surface of said land but providing that lessee shall have the right of exploring, drilling, mining and operating for and producing any or all oil, gas or other minerals covered by said lease in and under said land by operations located on lands pooled or unitized therewith and/or through any operations which do not involve the use of the surface of said land. SECTION II. (a) That an oil, gas and mineral lease on said tract of land is to be sold at public auction to be held in the City of Georgetown, Texas, at the City Ball on the 9th day of October, 1967, at 8:00 o'clock P.M., by the City Council of the City of Georgetown, Texas. (b) That the lease will be awarded to the highest and best bidder submitting a bid therefor; provided, that the City Council reserves the right to reject, in its discretion, all bids submitted if none of them represent the fair value of said lease. (c) That the royalty to be reserved in said lease shall be at least one-eighth; provided, however, that on production from a pooled unit only such proportion of the royalty provided for in such lease shall be due as the amount of lessor's acreage in the unit or its royalty interest therein on an acreage basis bears to the total acreage contained in the unit.