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HomeMy WebLinkAboutRES 11-288 RESOLUTION NO. 11-288 WHEREAS, the City of Beaumont entered into an amended lease with Cimarex Energy Company, of Tulsa, Oklahoma, executed July 28, 2010 for 275.44 acres of land in the A. Savery League, and, WHEREAS, Ballard Exploration Company, Inc., of Houston, Texas, is preparing to drill the Garden Villas No. 1 well; and, WHEREAS, Ballard Exploration intends to form a pooled gas unit of approximately 265.1489 acres which includes 38.4914 acres out of the City of Beaumont lease with Cimarex; and, WHEREAS, a Letter Agreement with Cimarex Energy Company was signed on September 16, 2011 by the City Manager to allow for the 38.4914 acres to be included in the unit; and, WHEREAS, City Council ratification of the Letter Agreement will remain in effectfor a period of one year; provided that a unit formed in accordance with the agreement will remain in effect for as long as production or operations maintain rights in accordance with the lease; WHEREAS, the Letter Agreement needed to be executed in order for the City of Beaumont to participate in the well; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and THAT the Pooling Letter Agreement with Cimarex Energy Company executed on September 16, 2011 is hereby ratified. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 4th day of October, 2011. - yor Becky Ames -