HomeMy WebLinkAbout148 - 01/15/1991 - AUTHORIZING THE MAYOR TO ENTER INTO AN OIL AND GAS LEASE WITH BRIGHT AND COMPANY ORDINANCE NO. 148, 1990
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE MAYOR TO ENTER INTO AN
OIL AND GAS LEASE
WHEREAS, the City is the owner of the Southwest Quarter of Section 13,
Township 6 North, Range 68 West of the 6th Principal Meridian, being the property
which was purchased by the City pursuant to Resolution No. 90-74 for the proposed
future regional Wastewater Treatment Plant; and
WHEREAS, the City has been requested to enter into an Oil and Gas Lease
with Bright and Company (a San Antonio, Texas oil company) with said Lease to
provide the City the sum of Four Thousand Dollars ($4,000) as "paid-up" rent and
the potential for royalties accruing to the City in the event of the discovery
of commercial quantities of oil or gas in the amount of 13% of the proceeds,
payable monthly at the prevailing market rate; and
WHEREAS, said Lease provides that there shall be no surface occupancy of
the Leased Premises without the prior written consent of the City, and includes
a limitation of five years for the payment of shut-in royalties and provides for
the Lessee's indemnification of the City; and
WHEREAS, except as modified as outlined above, the Lease proposed to the
City is a standard "Producers 88-Paid Up" lease; and
WHEREAS, the City Council has determined that it is in the best interest
of the City that said Lease be entered into between the City and Bright and
Company, and has further determined that the Lease will not materially impair
the viability of the water and wastewater utility system as a whole and that it
will be a benefit for the citizens of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that the Mayor be, and she heveby is, authorized to execute a standard "Producers
88-Paid Up" Lease between the City and Bright and Company, for the leasing of
the mineral interests owned by the City in the Southwest Quarter of Section 13,
Township 6 North, Range 68 of the 6th Principal Meridian, upon the terms and
conditions as contained in said Lease and as described above, with said Lease
to continue for a period of three (3) years from December 4, 1990, unless mineral
production is accomplished during said period of time.
Introduced, considered favorably on first reading, and ordered published
this 18th day of December, A.D. 1990, and to be presented for final passage on
the 15th day of January, A.D. 1991 .
Mayor
ATTEST:
1ML"-
City Clerk
Passed and adopted on final reading this 15th day of January, A.D. 1991 .
Ma or
AT ES
City Clerk