HomeMy WebLinkAboutRES 09-368 RESOLUTION NO. 09-368
WHEREAS,the City of Beaumont currently has an agreement with Cimarex Energy
Company for drilling on the Beaumont Municipal Airport property; and
WHEREAS, a new agreement was required to drill a deeper well that includes 80.07
acres of the Beaumont Municipal Airport and 83.35 acres on an adjacent tract; and
WHEREAS, it was imperative that the agreement be expeditiously executed to
prevent loss of revenue from the pooled well; and
WHEREAS, on December 8, 2009, City Manager Kyle Hayes executed the new
agreement with Cimarex Energy Company;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the agreement with Cimarex Energy Company executed on December 8, 2009, by
the City Manager, attached hereto as Exhibit "A," be and it is hereby ratified.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of
December, 2009.
- Mayor Becky Ames -
Cimarex Energy Co.
15 East 5"' Street, Suite 1000
Tulsa, Oklahoma 74103-4346
Phone: (918) 295-1768
Fax: (918) 295-1893
November 16, 2009
City of Beaumont
801 Main Street
Beaumont, Texas 77701
Attn: Mr. Kyle Hayes
RE: Nine Dragons No. 1
Part of A. Huston, A-33
Part of A. Savery, A-46
Jefferson County, Texas
Dear Mr. Hayes:
Cimarex Energy Co. is preparing to drill the Nine Dragons No. 1 well in the A. Huston League, A-
33 County, Texas. The surface and bottom hole locations will be located on the Manion,
et al tract just north of the City of Beaumont airport lease. however Cimarex proposes forming the
unit shown below and requests your permission to include 80.07 acres out of the City of Beaumont
lease.
1.) In the event Cimarex drills and completes the Nine Dragons No. 1 well, the unit will
comprise 180 acres and will include the following tracts:
Tract 1 Manion, et al 83.35 acres
Tract 2 Airport Acres 16.58 acres
s
Tract 3 City of Beaumont 80.07 acres
Total 180.00 acres
2.) After the presentation to you of a recorded copy of the Unit Designation that establishes a
unit meeting the criteria set forth in Paragraph 1 above, you will promptly execute a
Ratification of Unit, substantially similar in form and content to the instrument which is
attached hereto and made a part hereof as Exhibit "A".
3.) It is specifically understood and agreed that nothing contained herein shall alter or amend
the provisions of the City of Beaumont lease except as may be necessary to permit the
formation of the unit for the proposed Nine Dragons No. 1 well. The parties reserve all of
their respective rights and obligations under the City of Beaumont lease pertaining to
matters other than the unit for the Nine Dragons No. l well.
EXHIBIT "A"
Page Two
4.) This Letter Agreement constitutes the entire agreement among the parties with respect to the
matters discussed herein and supersedes any prior representations or understandings,
whether written or oral, among the parties.
s:X, t ktF
5.) This Letter Agreement will remain in effect for a period of from the date hereof-,
provided that a unit formed in accordance with this agreement will remain in effect for as
long as production or operations maintain Lessee's rights in accordance with the City of
Beaumont lease.
6.) This Letter Agreement shall bind and inure to the benefit of the parties hereto and their
respective heirs, successors and assigns.
If the foregoing meets with your approval, please execute in the space below and return one (1)
oril;inal to the attention of the undersigned. Should you have any questions in this regard, please do
not hesitate to call.
Very truly yours,
k- (
Cindy A. Croft
Senior Landman
CAC: sn
Attachment
fl
ACCEPTED AND AGREED TO THIS g ! DAY OF 4e/ . 2009.
City of Beaumont
B
}_
Kyle Hayes
City Manager
RATIFICATION OF POOLED UNIT
CIMAREX NINE DRAGONS UNIT NO I
STATE OF TEXAS §
COUNTY OF JEFFERSON §
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS: Cimarex Energy Co., as Operator, whose address is 15 East 5"' Street, Suite 1000,
Tulsa, Oklahoma 74103-4346 executed and filed of Record that certain Unit Declaration and
Designation as Instrument #2009023892 of the Official Records of Jefferson County, Texas
("Unit Declaration"); and,
WHEREAS: The pooled unit established by the Unit Declaration is depicted on the plat and
description which is attached hereto and made a part hereof as Exhibit "A", and,
WHEREAS; The undersigned, Kyle Hayes, City Manager for the City of Beaumont, whose
address is 801 Main Street, Beaumont, Texas, 77701, executed an Oil and Gas Lease, as
"Lessor" in favor of Cimarex Energy Co., a Memorandum of which Oil, Gas and Mineral Lease
is recorded as Instrument #2007041074 of the Official Records of Jefferson County, Texas
("Lease"); and,
WHEREAS; The Lessor desires to ratify and adopt the Unit Declaration, as to their respective
interests under the Lease.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Lessor hereby ratifies and adopts the Unit Declaration and confirms
the validity of the pooling of the interests under the Lease in accordance with the terms and
conditions of the said Unit Declaration.
Executed this �
g day of _ &A&- , 2009, but effective as of the date of the Unit
Declaration.
LESSOR:
CITY OF BEAUMONT
By:
1
Kyle Hayes
City Manager
ACKNOWLEDGMENTS
STATE OF TEXAS §
§
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on the day of r '�y�; 2009, by
Kyle Hayes, City Manager of the City of Beaumont, acting in said capacity on behalf of the City
of Beaumont, Texas.
RAMONA WEEMS
My commission Expires
�y� November 04,2011 Notary Public, State of Texas
Cimarex Energy Co.
15 East 5"' Street, Suite 1000
Tulsa, Oklahoma 74103-4346
Phone: (918) 295-1768
Fax: (918) 295-1893 =Aj
November 16, 2009
City of Beaumont
801 Main Street
Beaumont, Texas 77701
Attn: Mr. Kyle Hayes
RE: Nine Dragons No. 1
Part of A. Huston, A-33
Part of A. Savery, A-46
Jefferson County, Texas
Dear Mr. Hayes:
Cimarex Energy Co. is preparing to drill the Nine Dragons No. 1 well in the A. Huston League, A-
33, Jefferson County, Texas. The surface and bottom hole locations will be located on the Manion,
et al tract just north of the City of Beaumont airport lease; however Cimarex proposes forming the
unit shown below and requests your permission to include 80.07 acres out of the City of Beaumont
lease.
l.) In the event Cimarex drills and completes the Nine Dragons No. 1 well, the unit will
comprise 180 acres and will include the following tracts:
Tract 1 Manion, et al 83.35 acres
Tract 2 Airport Acres 16.58 acres
Tract 3 City of Beaumont 80.07 acres
Total 180.00 acres
2.) After the presentation to you of a recorded copy of the Unit Designation that establishes a
unit meeting the criteria set forth in Paragraph 1 above, you will promptly execute a
Ratification of Unit, substantially similar in form and content to the instrument which is
attached hereto and made a part hereof as Exhibit "A".
3.) It is specifically understood and agreed that nothing contained herein shall alter or amend
the provisions of the City of Beaumont lease except as may be necessary to permit the
formation of the unit for the proposed Nine Dragons No. 1 well. The parties reserve all of
their respective rights and obligations under the City of Beaumont lease pertaining to
matters other than the unit for the Nine Dragons No. 1 well.
Page Two
4.) This Letter Agreement constitutes the entire agreement among the parties with respect to the
matters discussed herein and supersedes any prior representations or understandings,
whether written or oral, among the parties.
5.) This Letter Agreement will remain in effect for a period of from the date hereof,
provided that a unit formed in accordance with this agreement will remain in effect for as
long as production or operations maintain Lessee's rights in accordance with the City of
Beaumont lease.
6.) This Letter Agreement shall bind and inure to the benefit of the parties hereto and their
respective heirs, successors and assigns.
If the foregoing meets with your approval, please execute in the space below and return one (1)
original to the attention of the undersigned. Should you have any questions in this regard, please do
not hesitate to call.
Very truly yours,
Cindy A. Croft
Senior Landman
CAC: sn
Attachment
ACCEPTED AND AGREED TO THIS g DAY OF l��(! 2009.
City of Beaumont
By
Kyle Hayes
City Manager
RATIFICATION OF POOLED UNIT
CIMAREX NINE DRAGONS UNIT NO. 1
STATE OF TEXAS §
COUNTY OF JEFFERSON §
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS: Cimarex Energy Co., as Operator, whose address is 15 East 5"' Street, Suite 1000,
Tulsa, Oklahoma 74103-4346 executed and filed of Record that certain Unit Declaration and
Designation as Instrument #2009023892 of the Official Records of Jefferson County, Texas
("Unit Declaration"); and,
WHEREAS: The pooled unit established by the Unit Declaration is depicted on the plat and
description which is attached hereto and made a part hereof as Exhibit "A", and,
WHEREAS; The undersigned, Kyle Hayes, City Manager for the City of Beaumont, whose
address is 801 Main Street, Beaumont, Texas, 77701, executed an Oil and Gas Lease, as
"Lessor" in favor of Cimarex Energy Co., a Memorandum of which Oil, Gas and Mineral Lease
is recorded as Instrument #2007041074 of the Official Records of Jefferson County, Texas
("Lease"); and,
WHEREAS; The Lessor desires to ratify and adopt the Unit Declaration, as to their respective
interests under the Lease.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Lessor hereby ratifies and adopts the Unit Declaration and confirms
the validity of the pooling of the interests under the Lease in accordance with the terms and
conditions of the said Unit Declaration.
Executed this g day of A AV , 2009, but effective as of the date of the Unit
Declaration.
LESSOR:
CITY OF BEAUMONT
By:
Kyle Hayes
City Manager
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on they day of �? �T , 2009, by
Kyle Hayes, City Manager of the City of Beaumont, acting in said capacity on behalf of the City
of Beaumont, Texas.
i
20,`�{1Y PUBS RAMONA WEEMS
My Commission Expires
q�� November 04,2011 Notary Public, State of Texas