HomeMy WebLinkAboutO-1956-503
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ORDINANCE NO. 503
AN ORDINANCE DETERMINING THAT IT IS ADVISABLE TO SELL
AN OIL. GAS. AND MINERAL LEASE ON CERTAIN LANDS BELONGING
TO THE CITY OF LA PORTE. TEXAS. AND PROVIDING FOR
THE GIVING. OF PUBLIC NOTICE OF SAID . PROPOSED SALE
WHEREAS the City of La Porte I Texas I now owns the fol-
lowing tract of 1andl hereinafter described more fully; and
WHEREAS the City Commission of the City of La Porte is
the duly authorized. governing body of said city; and,
WHEREAS by resolution passed by said, City Commission on
May 181 19561 it was determined that bids for an oill gasl and.
mineral lease covering said. city I s airport property (same being
the land hereinafter described) be advertised for; and
WHEREAS the notice which was given pursuantr to said
resolution specified that bids for such lease would be received by
the City Clerk until 4:00 p.m. on the 5th day of Junel 1956; and
WHEREAS Article 5421p (formerly Article 5400a) I Revised.
Civil Statutes of Texasl prescribes the procedure for the selling
of leases for mineral d.evelopment purposes by political subdivisions
of the State of Texas; and,
WHEREAS the aforesaid notice was not published in accord-
ance with the requirements of said Article 5421PI which tact has
caused, some question to be raised about the sufficiency of said
notice; and
WHEREAS no bids were received by said City Clerk as of
the time set by the aforesaid. notice for the receipt of such bids;
and.
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WHEREAS said City Commission of said City of La Porte de-
sires to advertise again for bids for such lease on the hereinafter
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described land., and further desires that the notice to be given
shall conform to the requirements of said Article 542lpi NOW,
THEREFORE,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
LA PORTE
SECTION I.
The City of La Porte, Texas.. acting through its City
Commission.. hereby determines.. in its descretion, that it is ad-
visable to lease the following tract of land for mineral develop-
ment purposes, as tollows:
All that certain piece or parcel of land situated.
in the County or Harris.. State of Texas, more par-
ticularly d.escribed as follows:
Being all of Lots 1, 2, and, 3.. and part of Lot 4,
Block 1.. part of Lots 1 to 5, inclusive.. ~ock 2,
and, part of the road. lying between said Blocks 1
and 2.. W. J. Payne Subdivision (according to a
plat recorded in the Records of Harris County, in
Deed Record. :Books 384.. at Page 161), and being
more particu,larly d.escribed as tollows:
BEGINNING at the northeast corner of W. M. Jones
SurveYi
THENCE due South 3160.2 feet along the East line
of said. W. M. Jones Survey, to its intersection
with the Northerly line of the right of way for
Spencer Roadi
THENCE North 890 33' West, 4136.6 feet along said
Northerly right of way line to a pointi
THENCE due North 3157.8 feet to a point on the
North line of said W. M. Jones SurveYi
THENCE South 890 35' East, 4136.6 feet along the
North line of said, survey to the point of BEGINNING,
containing 300.0 acres, more or less,
and being the same land. described in Deed from Helen
Elizabeth Preston, Individually and as Independent
Executrix of the Estate of Dora Lloyd Preston,
deceased., to the United States of America, dated
May 15, 1943, and. recorded in Vol. 1284, Page 4, of
the Deed. Records of Harris County, Texas.
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and includes, in addition to that above described,
all land" if any contiguous or adJacent to or adjoin-
ing the land. above described and. (a) owned or claimed
by lessor by limitation, prescription, possession,
reversion, or unrecorded instrument, or (b) as to
which lessor has a preference right of acquisition;
such lease 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, d.evelopment, 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,
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state orf'ederal, having authority to control or regulate the
spacing of such oil or gas wells.
SECTION II.
(a) That the lease on said tract is to be sold at a
public auction to be held in the City of' La Porte, Texas, at the
City Hall on the 11th day of'
. 1956, at 4:30 o'clock
Auoust
L.m., by the City Commission of La Porte, Texas.
(b) That'the lease will be awarded. to the highest and
best bidder submitting a bid therefor, provided that the City Com-
mission reserves the right to reject, in its discretion, all bids
submitted if' none of' them represent the f'air value of' such 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; and that the primary term
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of said. lease shall not exceed five years.
(d) That the lease will specify that the annual delay
rental payment provided. for therein shall be in the amount of
$1500.00 (300 acres at $5.00 per acre).
(e) That the City of La Porte will obtain the approval
of the Civil Aeronautics Administration to such lease.. which ap-
proval will be evidenced. by said Civil Aeronautics Administration's
execution of such lease through a duly authorized official. Each
bid.. and, any sale of a lease made pursuant thereto.. shall be on
condition that the City of La Porte shall obtain such approval; if
such approval is refused by said Civil Aeronautics Administration..
then each bid and any such sale shall be deemed to be cancelled..
provided.. that if such approval has not been obtained within one
hundred and twenty (120) d.ays following any such sale.. the succ'ess-
ful bidder may at his option and at any ttme thereafter withdraw
his bid and cancel such sale.
SECTION III.
(a) That the Mayor and, City Clerk are hereby authorized.
and directed to cause to be published once a week for three con-
secutive weeks.. in some newspaper having a general circulation in
Harris County.. Texas.. and also in a local newspaper.. the follow-
ing form of notice for said lease above mentioned.. evidencing the
City's intention to sell same:
liTHE STATE OF TEXAS:
COUNTY OF HARRIS:
Notice is hereby given that the City of La Porte..
Texas.. acting through its duly authorized governing
body.. the City Commission.. offers to receive b1ds for
an 011.. gas.. and mineral lease on the following
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described tract or parcel of land belonging to said
City:
(Here describe the land)
"Bidding for such lease will be at a public auction
to be held at !ilQ o'clock L.m. on Friday
. the
17th day of AUQust
1956~ at the City Hall in the
City of La Porte~ Harris County, Texas, at which time
and place the City Commission of the 'City of La Porte
will receive and consid,er all bid.s submitted. for the
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leasing 01' said, land. The Commission reserves the
right to reject any and. all bids submitted which are
not deemed by it to be representative 01' the fair value
01' such lease.
"The terms on which any such lease will be sold
are as tollows:
"(1) Such lease shall contain a provision
authorizing the lessee to pool or unit-
ize the rights covered by such lease in oil
or gas on, in, or under the above-described
land With any other land.s, leases, mineral
estates, or parts thereof, to form a drill-
ing or spacing unit or units for the explora-
tion, development~ and production of oil or
gas, provided the drilling or spacing units
shall not exceed, the minimum number 01' acres
upon which an oil or gas well may be located
in order to comply with the rules, regula-
tions, 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.
"(2) The royalty reserved to the City of La Porte
shall not be less than one-eighth; provided~
however, that on production from a pooled
unit only such proportion 01' the royalty pro-
vided tor 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.
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"(3) The primary term of such lease shall not
exceed. five years.
11 ('4) The lease will specify that the annual
delay rental payment provided for therein
shall be in the amount of $1500.00.
11(5) That the City of La Porte will obtain the
approval of the Civil Aeronautics Adminis-
tration to such lease~ which approval will
be evidenced by said. Civil Aeronautics
Administration's' execution of such lease
through a duly authorized official. Each
bid~ and any sale of a lease made pursuant
thereto~ shall be on cond,ition that the City
of La Porte shall obtain such approval; if
such approval is refused by said Civil
Aeronautics Adm1nistration~ then each bid
and.. any such sale shall be deemed to be can-
celled~ provided. that if such approval has
not been obtained within one hundred. and
twenty (120) days following any such sale~
the successful bidder may at his option and
at any t1me thereafter withdraw his bid and
cancel such sale.
11(6)
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The lease will be executed on a form at-
tached to Ordinance No. 503 (here
insert the number of this ordinance)~
dated July 6. 1956 (here insert
the date of this ordinance -( 1956 ~ as
Exhibit "A" thereto.
~,d ~.,
Mayor of ~ ~
La Porte~ Texas
Baker
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That the Mayor and. City Clerk are further authorized
and directed to cause '_ the above form of notice to be published
in not less than three public places within the corporate limits
of the City of La Porte for a period of at least ten days prior
to the date of said public hearing.
SECTION IV.
That said lease shall be executed on the form attached
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. hereto and, marked Exhibit' "Aft.
PASSED I APPROVED I and. EFFECTIVEI this the 6th day
of
July
. 1956.
~,kf~1
Mayor of the ty of
La Porte I Texas
~..
G,~.~~':"i:'~g~'" ...~.
'\"\0" ,_ ~ ,., I
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;~"-:-":City C];erki;r.C:J,.ty of
',~"I.a PorteS!exas
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This is to certify that the above and foregoing ord.i-
nancel after its due introductionl was read'l adoptedl and made an
ordinance of said City of La Porte at a
Regular
meeting of such City Commission on the -i!.!l. day of July
wing vote:
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H. P. Pfeiffer
Mayor I voting aye
. Commissionerl voting
. Commissionerl voting
aye
L. R. Rigby absent
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~~~~./j~
City C1erkl City of
La Portel Texas
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By
APPROVED:
CIVIL AERONAUTICS ADMINISTRATION
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CITY OF LA PORTE, TEXAS
By ./, ')' U. ~. ~ ~
' Mayo~'
City Clerk
ATTEST:
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(f) Lessee shall not interfere With the acoess roads to the airport,.} <-
and shall not interfere With any other person or agency;; ~~;V:' .,' ."a. law:t~.' -'M,.i1!~
right to use said leased premises ,or with any bUild1na'~"qJi.i ).,;'''oMerltl~, cr~'f';'
.y kind thereon belonging to any other person or agency,"'!;' with thei~"""
ght to enter thereon and remove said buildings or improvements therefrorn.
(g) During time of war or national emergency the lessor shall have
the right to lease the landing area or any part thereof to the United
States Government for military or naval use, and, if any such lease is
executed, the provisions of this instrument insofar as they are inconsisten'~
with the provisions of the lease to the Government, shall be suspended.
18. The Civil Aeronautics Administration, acting through a duly authorizE!d
officer, executes this lease for the sole purpose of evidencing its approval
of same.
IN TESTIMONY WHEREOF, we sign as of the day and year first above written..
.
(e) Further, it is agreed that in the event any drilling operations
for oil, gas or other minerals result in production, lessee at his own .
expense shall. immediately remove all temporary structures and place all
semi-permanent or permanent equipment in such manner as will not interfere
with or introduce any hazard to the operation of aircraft. In event such
drilling operations result in a dry hole, then lessee shall at his own
expense immediately remove all temporary structures used in such operation
and level the area so that it may be safely used for landing or taxiing
aircraft. .
17. (a) This lease is subject and subordinate to and is controlled by'
all the provisions, stipulations, covenants and agreements in that certain
deed dated June 4, 1947 from the United States of America to lessor,
recorded in Volume 1614, page 190, Deed Records of Harris County, Texas,
conveying the La Porte Municipal airport properties to lessor the same as
if set out in full herein, and lessee agrees to abide by and enforce all
such provisions, stipulations, covenants and agreements. T.his lease is
also subject to all orders, rules and regulations of the Civil Aeronautics
Administration now in force or hereafter promulgated and lessee agrees
to abide by and enforce all of same and all such rules, regulations arid
orders are made a part hereof the same as if set out in full herein. Thil3
lease is subject to approval by the Civil Aeronautics Administration and
shall be effective only as of the date of such approval.
~ (b) It is further especially agreed by the parties hereto that no
~ructures or obstructions, temporary or otherwise, shall be erected with~~n
350-foot perpendicular distance from and on each side of the center line ()f
all runways and their extensions to the airport boundaries and within 150.-
foot perpendicular distance from and on each side of the center line of all
taxiways; also, that no structure shall be erected nearer than 200 feet
from any buildings; nor shall any structure placed on the airport by the
lessee be of a height greater than 150 feet from the level of the runway
at the nearest point; and no structure or obstruction as aforesaid shall
be erected which will. be in violation of the Zoning. Order enacted for the
protection of this airport by the Airport Zoning Board or as may be approved
by said Board.
(c) It is especially understood and agreed that the lessee and his
assigns, shall give to the City Commission of the City of La Porte, Texas,
and the Civil Aeronautics Administration, notice in writing of the locatio:n
of any contemplated well on said property and that if neither the Civil
Aeronautics Administration nor the City Commission of the citf of La Porte,
Texas, objects to said location within a period of thirty (30J days from
tI receipt of written notice thereof, the said lessee and his assigns
proceed to drill the well at the location specified in said notice,
~_ovided same does not contravene other provisions of this lease or the
further restrictions and obligations imposed by said City Commission of
the City of La Porte, Texas.
(d) Also it is agreed, that in the event a well is drilled on the
leased area then such drilling operations shall be prosecuted continuously
until same results in production or a dry hole. All temporary structures
)U\ed in such drilling operations shall be painted and lighted in such
! .~lDer as is prescribed by the Civil Aeronautics Administration, and further
~_ovided that no per~ent structures of any kind used in the development,
production or transportation of oil, gas, and other minerals shall be placed
on the above-described land in such manner as to interfere with or introduce
hazard to the operation of aircraft.
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141. This lease shall be binding upon each party who executes it without regard to whether it is executed by all those named herein as lessor. .
15... Lessor hereby warrants and agrees to defend title to said land against the claims of all persons whomsoever. Lessor's' rights a~d in'terests hereundel' shall
be charged primarily with any mortgages. taxes or other liens, or interest and other charges on said land. but lessor agrees that lessee shall have the right .\t any
~e to payor reduce same for lessor, either before or after maturity. and be lubrogated to the rights 0' the holder thereof and to deduct amounts so paie. from
._..,__ ,,~ other paym..:nts payable or which may become payable to lessor and/or assigns under this lease. Lessee is hereby given the right to acquire for i15 own
". 01.....1., leases. or assignments coveri!'4' any interest or claim in said land which lessee or any other party contends is outstanding and not covered here!:y and
~~.. though such outstanding i'C'terest or claIm lle invalid or adverse .to lessor. _:. ... . -. u .' ._~ ~ .
iT>i.'6;~'n' :'ii'he 'power"'Cartd . authority granted to lessee in paragraph 13 hert,9t ,!i ',:.,;'!,:, :'
shall be limited to and shall be no greater than that authorizedi;~Py';~n~":~:'k:;I~':i~'"'
provisions of Chapter 262, page 686, Acts of 1953, 53rd Leg1s1at~e. Qf';;,~T':i
the State of Texas. . {?:::". .
11. In the event lelsor .considers that'lessee has not complied with-all-its' obligations hereunder, both express and implied. lessor shall notify lessee in writing, ""t;'
setting out specifically in what respects lessee has "breached this' contract. Lessee shall then have sixty (60) days alter .receipt of said notice witbin wbich to meet
or commence to meet all or any part of the breaches alleged by lessor. The service 01 said notice s\1all be. precedent to the brInging of any action by lessor on said. ......
lease for any cause, ,alid no such action shall .be. brought until the lapse of sixty (60) days after service 01 such notice on lessee. Neither. the service of saB notice .....
nor .the do!ng .of any acts by lessee aim~ to meet all or any'of the alleged breaches shall be deemed an admission or pnis.umptionthat.:lessee has failed to. perform _:'.~ ~~
all Its obligatIons hereunde~. . '. --- ..,.
. . 12 Lessee mar at any time and fro~ time to time execute and deliver to lessor 'or file for record a release or r~leas~s of' ihis leas~ ,as ~ 'l\"uj. part or aU 'Of".id
. land. or oJ any maneral or horizon thereunder, and thereby be relieved of all obligations as to the relea~ acreage or interest. If this lease is so released ;,5 to aU
. minerals and horizons under a portion of said land, the delay rental and other payments computed in accordance therewith shall thereupon be reduced in the propor-
.aion that the. acreage released bears to' the acreage which was covered by' this lease immediately prior to such release.
..... 13. (a> Lessee is hereby granted the right, at its option, to pool or unitize all or any part of said laad and of this lease as to any or all minerals or horizons
,~reunder, wit" other lands, lease or leases, or portion or portions thereof, or mineral or horizon thereunder, so as to establish units containing not more than 45
~ia"c acres: provided, however, a unit may be established or an existing unit may be enlarged to contain not more than 640 acres plus 10% acreage tolerance, if
-- -- '__' ,:>,,1)" as to gas or only as to gas and liquid hydrocarbons (condensate) which are not a liquid in the subsurface reservoir. If larger units are required uader
~y governmental rule or order, for the drilling or operation of a well at a regular location, or for obtaining maximum allowable from any well to be drilled, drilling,
or already drilled, any such unit may be established or enlarged to conform to the size required by such governmental order or rule. Lessee shall exel"C1 se said
option as to each desired unit by executing an instrument identilying such unit and filing it for record in the public office in which the lease is recorded. :~ch of
said options may be exercised by lessee from time to time, and whether belore or after production has been established either on said land or on the portiOD of said
land included in the unit or on other land unitized therewith.
(b) Any operations conducted on any part of such unitized land shall be considered, for all purposes, except the payment of royalt}', operations co:llducted
under this lease. There shall be allocated to the land covered by this lease included in any such unit that proportion of the total production of unitized nainerals
from wells in the unit, after deducting any used in lease or unit operations, which the number of surface acres in the land covered by this lease included in the
unit bears to the total number of surface acres in the unit. The production so allocated shall be considered for all purposes, including the pa)'ment .or deli'.ery of
royalty, overriding royalty, and any other payments out of production, to be the entire production of unitized minerals from the portion of said land 'Covered hereby
and included in such unit In the same manner as though produced from said land under the terms of this lease. The owner of the reversionary estate of aay term
royalty or mineral estate agrees that the accrual of royalties pursuant to this paragraph or of shut-in royalties from a well on the unit shall satisfy any linlitation
of tenn requiring production of oil or gas.
(c) The formation of such unit shall not have the effect of changing the ownership of any delay rental or shut.inlroduction royalty which may becon:.e pay.
able under this lease. Neither shall it impair the right of lessee to release from this lease all or any portion of said Ian , except that lessee may not so rell:ase as
to lands within a unit while there are operations thereon for unitized minerals unless all pooled leases are released as to lands 'within the unit.
(d) Lessee may dissolve any unit established hereunder by filing for record in the public office where this lease is recorded a declaration to that effect, if at
that time no operations are being conducted thereon for unitized minerals. Subject to the provisions of this paragraph 13. a unit once established hereunder shall
remain in force. so long as any lease subject thereto shall remain in force.
(e) A unit may be sO established, modified or dissolved during the life of this lease, but in no event later than twenty (20) years after the date hereof.
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4' . PRo'DU!:I!RS 8. REVISaD-TEXA8 (RRVI.ED '.'8) PRINTED IN U. 8. A.
CARClILL'&-HO....TON . ~-
OIL, GAS AND MINERAL LEASE
"EXHIBIT' A"
AGREEMENT. Made and entered into th.. day of
the City of La Porte. Texas~ acting herein through
to authority ~ranted. him by its City Commission
. 19 , by and between
its Mayor, pursuant
whose post office address i.
, hereinafter called lessor
(whether one or more), at'" .. . hereinafter called lessee:
eITNESSETH: 1. Lessor, in consideration of t,.:: . ; nollars, receipt of which is hereby acknowl.edged,
of the covenants and agreements of lessee hereinafter contaihed, does hereby grant, lease Oln!! let unto lessee the land covered herehy for the p)Jrp<lses and wIth the
usive right of exploring, drilling, mining and operating for, ; producing and owning oil, gas, sulphur and all other minerals (whether or not sImIlar to those men-
tIoned). together with the right to make surveys on said land, l8;y pipe Jines, establish and utilize facilities}or surfacl! or subsurface disposal of ~alt wat~r, construct
roads and bridges, dig canals, build tanks, power stations, telephone lines, employee 'houses and other structures on saId land, necessary or us~ful In lessee s operations
in exploring, drilling for, producing, treating, storing and transpOrting minerals produced from the land covered hereby or any other land adjacent thereto. The land
covered here~y, herein called "said land", is located in the County of Harris State of Texas , and is described as follows: .
...~.: .. .. ';;r..~~...'t"';--.:'''''.'''''':;.!'...'
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and includes, in addition to that above described, all land, if any, contiguous or adjacent to or adjoining the land above described and (a) owned or claimed by lessor
by limitation, prescription, possession, reversion or unrecorded instrument or (b) as to which lessor has a preference right of acquisition. Lessor agrees to execute any
supplemental instrument requested by lessee for a more complete or accurate description of said land. For the purpose of determining the amount of any bonus, delay
-tal or other payment hereunder, said land shall he deemed to contai" ~OO Dcres, whether actually containing more or less, and the above recital of
---:;-- '" ;!!!y tract sh,,1I be deemed to be the true acreage thereof. Lessor accepts the bonus and agrees to accept the delay rental as lump sum considerations for
lease and all rights and options hereunder. ,
....... 2. Unless sooner terminated or longer kept in force under other provisions hereof, this lease shan remain in force for a term of tJ.iG ye~ ff.om the date
hereof, hereinafter called "primary term", and as long thereafter as operations, as hereinafter defined, are conducted upon said land with no cessation" for more
than ninety (90) consecutive days. .
3. Whenever used in this lease the word "operations" shall mean operations for and any of the following: drilling, testing, completing, reworking, recompleting,
deepening, plugging back or repairing of a well in search for or in an endeavor to ohtain production of oil, gas, sulphur or other minerals, excavating a mine, pro-
duction of oil, gas, sulphur or other mineral, whether or not in paying quantities.
4. As royalty, lessee covenants and agrees:
(a) To deliver to the credit of lessor. in the pipe line to which lessee may connect its wells, the equal one-eighth part of all oil produced and saved by lessee from
said land, or from time to time, at the option of lessee, to pay lessor the average posted market price of such one. eighth part of such oil at the wells as of the day
it is run to the pipe line or storage tanks, lessor's interest, in either case, to hear one-eighth of the cost of treating oil to render it marketable pipe line oiL
(b) To pay lessor on gas and casinghead gas produced from said land (1) when sold by lessee, one-eighth of the amount realized by lessee, computed at the
mouth of the well, or (2) when used by lessee off said land or in the manufacture of gasoline or other products, the market value, at the mouth of the well, of one.
eighth of such gas and casinghead gas.
~ 'fll ,a! lusu llU Mllir {f19lij ,r- 1-8 tll'll (??AI1 Fft"ft.!.) -- all slllr..... mlft...! Oft.! mD.It,,>A" IIF lItilln.! hi' 'A"AA tm6D.;.! ..... _
(d) To pay lessor'on all other minerals mined and marketed or utilized by lessee from said land~~~inV~ vl?ue \\li'h\ w~IJ.rmin'~\1~P.
election. '.' :
, (e) If, at the expiration of the primary term or at any time or times thereafter, there is any well on said land or on lands with which said land or any portion
thereof has been pooled, capable of producing oil or gas, and all such wells are shut in, this lease shall. nevertheless, continue in force as 'though operations were
heing conducted on said 'Iand for so long as said wells are shut in, and thereafter this lease may be continued in force as if no shut in had occurred. Lessee cove~.
nants and agrees to use reasonahle diligence to produce, utilize, or market the minerals capable of being produced from said wells, but in th~ exercise of such dili;
'gence, lessee shall not he obligated to..install or furnish facilities other than well facilities and ordinary lease facilities of now lines, separator, and"lease tank. and.
shall not be required to settle labor trouble or to market gas upon terms unacceptable to lessee. If, at any time in this paragraph above specified. all such wells are
shut in for a period of ninety consecutive days, and during such time there are no operations on said land, then at or be.fore the !!xph:ation of said ~i.net1 ,day peri!,d, .
lessee shall payor tender, by check or draft of lessee, as royalty, a sum equal to the amount of annual dela)! rental proVIded for In thIS lease. Lessee shall make' like
payments or tenders at or before the end of each anniversary of the expiration of said ninety day period If upon su~ anniversary this lease is Iieing:.i:ontiriued in
force solely by reason of the provisions of this paragraph. ~ach such payment or tender shall be made to the parties who at the time of. payment wO!lld. be entitled
to receive the royalties which would be paid under this lease if the wells Were producing, and may be deposited in any depository bank named below. NoiJlingherein
shall impair lessee's right to release as provided in paragraph 12 hereof. In event of assignment of this lease in whole or in part, liability for payment (hereunder
shall rest exclusively on the then owner or owners of this lease, severally as to acreage owned by each. '. ,
--
~ If operations are not conducted on said land on or before the first anniversary date hereof, this lease shall terminate as to both parties, unless lessee on or
~._. - .Ai': date shall, subject to the further provisions hereof, payor tender to lessor or to lesscn:'s credit in th"
Bank at or its successors, or in tbA Rank at
or its successors, which shall continue as the depositorY1 regardless of changes in ownership, of delay rental, the sum of ,I '500 .00 which shall
operate as delay rental and cover the privilege of defernng operations for one year from saId date. In like manner and upon like payments or tenders. operation.
may be further deferred for like periods of one year each during tl\e primary term. If at any time that lessee pays or tenders delay rental, two or more parties
are, or claim to be, entitled to receive same, lessee may, in lieu of any other method of payment herein provided, payor tender such rental, in the manner above
specified, either jointly to such parties or separately to each in accordance with their respective ownership, thereof, a. lessee may elect. Any payment hereunder
may be made by check or draft of lessee deposited in the mail or delivered to lessor or to a depository bank on or before the last date for payment. Said delay
rental shall be apportionable as to said land on an acreage hasis, and a failure to make proper parment or tender of delay rental as to any portion of said land
or as to any interest therein shall not affect this lease as to any portion of said land or as to any Interest therein as to which proper payment or tender is made.
Any payment or tender which is made in an attempt to make proper payment, but which is erroneous in whole or in part as to parties, amounts, or depositories
shall nevertheless he sufficient to prevent termination of this lease and to extend the time within which operations may be conducted in the same manner as though
a proper payment had been made; provided, however, lessee shall correct such error within thirty (30) days after lessee has received written notice thereof from
lessor.
6. If at any time or times during the primary term operatic;lns are conducted on said land and if all operations are discontinued, this lease shall thereafter term-
inate oD its anniversary date next following the ninetieth clay after such discontinuance unless on or before such anniversary date lessee either (1) conducts opera.
tions or (2) commences or resumes the payment or tender of delay rental; provided. however, if such anniversary date is at the end of the primary term, or if there
is no further anniversary date of the primary term, this lease shall terminate at the end of such term or on the ninetieth day after discontinuance of all operations.
whichever is the later date, unless on such later date either (1) Jessee is conducting operations or (2) the provisions of paragraph 4(e) or 14 are applicable.
7. Lessee shall have the use, free from royalty. of water, ot\1er than from lessor's water wells, and of oil and gas produced from said land in all operations
hereunder. Lessee shall have the right at any time to remove all machiner)' and fixtures placed on said land, including the right to draw and remove casing.
No well shall be drilled nea,'er than 200 feet to the house or ham now on said land without the consent of the lessor. Lessee shall pay for damages caused by its
operations to growing crops and timber on said land. .
8. The rights and estate of any party hereto may be assigned in whole or in part and as to any mineral. All of the covenants, obligations, and considerations of
this lease shall extend to and be binding upon the parties qej"eto, their heirs, successnrs, assigns, and successive assigns. No change or division in the ownership of
said land, royalties, delay rental, or other moneys, or any part thereof, howsoever effected, shall increase the obligations or diminish the rights of lessee. including,
but not limited to, the location and drilling of wells and tjle measurement of production. Notwithstanding any other actual or constructive knowledge or notice
thereof of or to lessee, its successors or assigns, no change or division in the ownership of s!lid land or of the'j rolalties, delay rental, or other moneys, or the right
to receive the same. howsoever effected, shall be binding upon the then record owner of this lease until thirty (30) days after there has been furnished to such
record owner at his or its principal ,Place of business by lessor or lessor's heirs, successors, or assigns, notice, of such change or division. supported by either origi.
.-!Ials or duly certified copies of the Instruments which have been properly filed for record and w!dch evidence lsuch change (r division, and of such court records and
~.. --. transcrIpts. or other documents as shall be necessary in the opinion of such record owner to establish the validity of such change or division. If any
~=~ ;:!;;';ii; in ownership occurs by reason of the death of the owner, lessee may, nevertheles. ,Payor tender such royalties, delay rental, or other moneys, or p"rt
~Ceur, to the credit of the decedent in any depository' bank named above. In the event of assIgnment of this lease as to any part (whether divided or undivided)
.. " :;~~aid land, the del..y rental parable hereunder shall be apoortionable as bel ween the several leasehold owners, ratahly according to the surface area or undivided
.. ... C~C='c ~~. es,!1h, .I!!.c! d~fault i.n del~ ~~-!&!.payment b~'- O!Ie shall not affect the right 0' ot!ser leasehold owners hereunder. .'
q .....~ !r"'~. ., .~ ... '/j."t,....-t. .. ..~......-::::..=-.:......
~. , If this 'lease'. covers (either now 'or"-h~rea.iter) Q lesa. 1nt~:t',est .in..._.;.
the. oill.gas,. sulphurl or other minerals 1n'all or any pa~t. otsa1:d land' _;~ '<"_~~~<
,than the e'ntire . and >.undivl(l"E!d fee s~ple. 'esta~~ (wheth~l" 1~.8J.C?,~~,s}~lnt~t~.st':0;.:4
.1s herein specified or not h,..or. no: ;1nterest. therein, then the r.ot8:.1ties;/:;,":"~_.;:)~
delay rental, and other moneys accruing from any part as to lfhich this..... .<:,"~
.lease covers less than such full interest shall be paid only in the pro- ~).
portion which the interest thereinJ if anyJ covered by this lease at the
time that such payment: is madeJ bears to the whole and undivided fee simple
estate therein. All royalty interest covered by this lease (whether or
not owned by lessor) shall be paid out of the royalty herein provided.
10. If this lease is cancelled for any cause, it shall nevertheless
remain in force and effect as to (1) sufficient acreage around each well-
as to which there are operations to constitute a drilling or maximum allow-
able unit under applicable governmental regulationsJ (but in no event less
.than.forty. ac.resL such acreage to be designated by lessee as nearly as
~~~~ticable in the form of a square centered at the wellJ or in such shape
then existing spacing rules requirej and (2) any part of said land in-
~~uued in a pooled unit on which there are operations. Lessee shall also
have such easements on said land as are necessary to operations on the
acreage so retained.
-"".....-
'...J
.,
All that certain piece or parcel of land situated 1n the
County of Harrls1 State of Texasl more particularly de-
scribed as follows:
Being all of Lots 11 21 and 3, and part of Lot 41 Block 11
part of Lots 1 to 5, inclusive, Block 21 and part of the
road lyin~ between said Blocks 1 and 21 W. J. Payne Sub-
division (according to a plat recorded in the Records of
Harris County# in Deed Record Books 384# at Page 161), and
being more particularly described as follows:
BEGINNING at the Northeast corner of W. M. Jones Survey;
THENCE due South 3160.2 feet along the East line of said
W. M. Jones Survey, to its intersection w.ith the Northerly
line of the right of way for Spencer Road;
THENCE North 8g0 33' West# 4136.6 feet along said Northerly
right of way line to a point;
THENCE due North 3157.8 feet to a point on the North line
of said W. M. Jones Survey;
THENCE South 890 35' East, 4136.6 feet along the north line
of said survey to .the point of BEGINNING I containing 300.0
acres# more or less#
and being the same land described in Deed from Helen Elizabeth
Preston# Individually and as Independent Executrix of the
Estate of Dora Lloyd Preston4 deceasedl to the United States
of America, dated May 15, 19 3, and recorded in Volume 1284,
Page 4, of the Deed Records or Harris County, Texas.
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