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1
AN ORDINANCE
ENTITLED AN ORDINANCE AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN OIL, GAS:_ AND...MI_NERAL -
LEASE ON BEHALF OF THE CITY OF BEAUMONT AS_$ESSOR,
LEASING TO SUN OIL COMPANY, AS LESSEE, THE FOLLOW-
ING DESCRIBED PROPERTY SITUATED.IN'JEFFERSON
COUNTY, TEXAS: LOTS 4, '5 AND 6,.BLOCK E, LOTS 1,
2, 31 42 5 AND 61 BLOCK H. LOTS 2, 3 AND 81 BLOCK
F, LOT,12, BLOCK D, LOTS 4, 5 AND 6, BLOCK B, ALL
OF BLOCK A, ACREAGE LOTS 1, 41 8,.9 AND 12, THE
NORTH HALF OF ACREAGE LOT 6, ALL.OF SAID LOTS AND
BLOCKS BEING IN WHAT IS KNOWN AS THE SUTHERLAND
.,ADDITION TO THE, CITY OF BEAUMONT$ JEFFERSON COUNTY,
TEXAS, SAID SUTHERLAND ADDITION BEING PART OF THE
HEZEKIAH WILLIAMS, JR. SURVEY. ALSO AN.UNDIVIDED
THREE-FOURTHS INTEREST IN•AND TO THE WEST HALF OF
SUBDIVISION 3 OF THE HEZEKIAH WILLIAMS,.JR. SURVEY
AS PARTITIONED 'BETWEEN THE_.HEIRS OF E...R. COLLIER,
EXCEPTING ELEVEN ACRES THEREOF.DESCRIBED,IN A DEED
FROM JOSEPH OVERY TO L. A. BERGIN DATED OCTOBER 17,
1923, RECORDED IN VOLUME 234, PAGE'5720DEED RECORDS
OF JEFFERSON COUNTY, TEXAS, FOR EXPLORATION FOR: -AND
PRODUCTION OF OIL, GAS OR-OTHER;MINERAL=S, A COPY
OF SAID IE ASE CONTRACT BEING.HERETO ATTACHED.
WHEREAS, Sun Oil Company, which maintains an office in
the City of Beaumont employing a large number of the citizens
of the City of Beaumont, now being the owner of an oil., gas
and mineral lease covering the following described land owned
by the City of Beaumont, to -wit:
Lots 4, 5 and 6, Block E, Lots 1, 2, 3, 4, 5 and 6,
Block H, Lots 2,-3, and 8, Block F, Lot 12, Block D,
Lots 4,.5 and 6, Block B, all of Block A, Acreage -
Lots 1, 42 8, 9 and 12, the North Half of Acreage
Lot 6, All of said lots and blocks being'in what is
known as the Sutherland Addition to the City of
Beaumont., -Jefferson County, Texas_;. :said Sutherland
Addition -be ' ingpart of the .Hezekiah':.Williams, Jr.
Survey. Also an.undivided three-fourths interest in
and to the west half of .Subdivisi.on' 3 of the Hezekiah
Williams, Jr.'Survey as partitioned between the heirs
of E. R. Collier, excepting eleven acres thereof de-
scribed in a deed from Joseph Overy to L. A. Bergin,
dated October 17, 1923., recorded in Volume 234, Page
572, Deed Rdcords of Jefferson County, Texas;
Said lease being dated`December 14, 1937,'.from the City of
Beaumont to C. Stanley Banks ,as lessee, recorded in Volume
441, Page 505, Deed Records of Jefferson County, Texas, de-
sires to enter into a new oil, gas and mineral lease with
the said City of Beaumont of,different terms and conditions
than the present lease contract, which new lease contract
will supersede and take the place of the presently existing
lease contract; and
WHEREAS, the proposed oil, gas and mineral lease con-
tract has been drafted by the lessee, Sun Oil Company, and
a copy of the same is hereto attached and the terms and
provisions of said oil, gas and mineral lease contract ap-
pear to be advantageous to the City of Beaumont.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF BEAUMONT:
That the Mayor and the City Clerk be, and they are
hereby authorized and directed to execute on behalf of the
City of Beaumont the §`aid oil, gas and mineral lease con-
tract, leasing to the said Sun Oil Company for oil, gas and
mineral purposes the property hereinabove described in ac-
cordance with the terms and provisions of the oil, gas and
mineral lease contract, a copy of which is hereto attached.
PASSED by the City Commission on this the o2/ qday of.
July, A. D. 1942.
4
With Pooling Provision
Producers 88 (Rev. 8-38) 12-38 r V v (F
OIL, GAS AND MINERAL LEASE
THIS AGREEMENT madeo .._... f;.
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Lessor (whether one or more) whose address is: ..................... .....-ly,....-_,Y
. z:, `_r w ;, :,f ?.•, ? _..............----------------------Lessee, WITNESSETH:
and_------------------....-•-----......_......�....._-_.___..._..:.._.._...:--------------------------------------------------•----•------------•-------------------- .. -
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1. Lessor in consideration of = `...............`..................... W-:. - .......... __ -a
r.r..........a..yn...................+. n...»..a•�.-ae.,.... D
Mars
($- . ....J, in hand paid, of the royalties herein
--��----�-�---•��---�- provided, and of the agreement of Lessee herein contained, hereby grants, leases and
lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and producing oil, gas and all other minerals,
laying pipe lines, building tanks, power stations, telephone lines and other structures thereon to produce, save, take care of, treat, transport and own said
products, and housing its employees, the following described land in............ _ - _ _
av$ t;lc:Jr1 -1� fy - County Texas, -
t
� y � � to wi
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2. Subject to the other provisions herein contained, this lease shall he for a term of (called "primary term") and as long
thereafter as oil, gas or other mineral is produced from said land or land with which said land is pooled hereunder.
S. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the same to be delivered at the wells
or to the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its possession,
paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other gaseous
substance, produced from said land and- sold or used off the premises or in the manufactureof gasoline or other product therefrom, the- market value
at the well of one-eighth of the gas so sold or used, provided that on gas sold at the wells •the royalty shall be one-eighth of the amount realized from
such Bale; where gas from a gas well is not sold or used, Lessee may pay as royalty $100.00 .per well per year and if such payment is made it will be
considered that gas is being produced within the meaning of Paragraph 2 hereof; and • (c) on all other minerals mined and marketed, one-tenth either
in kind or value at the well or mine, at Lessees election, except that on sulphur the royalty shall be fifty cents (50c) per long ton. Lessee shall have
free use of oil, gas, coal, wood and water from said land, except water from Lessor's wells, for all operations hereunder, and the royalty on oil, gas and
coal shall be computed after deducting any so used. Lessor shall have the privilege at his risk and expense of using gas from any gas well on said land
for stoves and inside lights in the principal dwelling thereon out of any surplus gas not needed for operations hereunder.
4.. Lessee, at- its option, is hereby given the._ right- and power to, pool or combine the acreage covered by this lease or any portion thereof with
other land, lease or leases in the immediate vicinity thereof, when in Lessee's judgment it is necessary or advisable to do so in order properly to de-
velop and operate sai& premises in compliance with the spacing rules of the Railroad Commission of Texas or. other lawful authority, or when to do
so would, in the judgment: of Lessee,' promote the conservation of the oil and gas in and under and that may be produced from said premises, such pooh
ing to be into a unit or units not exceeding 40 acres each. Lessee shall execute in writing an instrument identifying and describing the pooled
acreage. The entire acreage so . pooled into a tract or unit shall be treated, for all purposes except the payment of royalties on production from
the pooled unit, as if it were included in this lease. If production is found on the pooled acreage, it shall be treated as if production is had from this
lease, whether the well or wells be located on the premises covered by this lease or not. In lieu of the royalties elsewhere herein specified, Lessor shall
receive on production from a unit so pooled only such portion of the royalty stipulated herein as the amount of his acreageplaced in t e .unit or hi - -
royalty interest therein on an' acreage basis bears 'to the total acreage so pooled in tha-particular-unit i_nvolye_d: '
5. If operations for drilling are not commenced on sat_ d land or on acre-
age pooled therewith as above provided on. or before December 14, 1942, this
lease shall then terminate as to .bath parties, unless on or before such
date Lessee shall pay 'or tender to Lessor or to the credit of Les sor in the
First National Ba_2k at Beaiffaont, Texas; (which bm-ik and its successors are
Lessor►s agent and shall continue as the depository for any and all rentals
Payable hereunder regardless of changes in ownership of said land or the
rentals) the sum of Nine Hundred Fifty-eight and 75/100 Dollars , ($958.75) ,
(herein called rental), which shall cover the privilege of deferring commence
ment of drilling operations for -a period of si'a (6) months. In like manner
and upon like payments or tenders semi-annually the commencement of drilling
operations may be further deferred for successive periods of six (6) months
each daring the primary terms.. The pal m.ent or tender of rental may be made
by the cheep or draft of Lessee mailed or delivered to Lessor or to said barLc
on or before such date of payment, if such bank (or any successor bank)
should fail, liquidate or be succeeded by another bank, or for any reason
fail or refuse to accept rental, Lessee shall not be held in default for fail-
-...
laying pipe line's, building tanks, power stations, telephone lines and other structures thereon to produce, save,-takeVcare of,�treat, transportLand own said
products, and housing its employees the following described land int,f r ............................................_.................................................... County Texas, to -wit:
CL
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2. Subject to the other provisions herein contained, this lease shall be for a term of beh�`" �"" "
.- '"-''"' (called "primary term") and as long
thereafter as oil, gas or other mineral is produced from said land or land with which said land is pooled hereunder.
S. The royalties to be paid by Lessee are: (a) on oil, one-eighth of that produced and saved from said land, the same to he delivered at the wells
or to the credit of Lessor into the pipe line to which the wells may be connected; Lessee may from time to time purchase any royalty oil in its possession,
paying the market price therefor prevailing for the field where produced on the date of purchase; (b) on gas, including casinghead gas or other gaseous
substance, produced from -said land and- sold or used off the premises or in the manufacture of gasoline or other product therefrom, the. market value
at the well of one-eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one-eighth of the amount realized from
such sale; where gas from a gas well is not sold or used, Lessee may pay as royalty $100.00 .per well per year and if such payment is made it will be
considered that gas is being produced within the meaning of Paragraph 2 hereof; and,(.) on all other minerals mined and marketed, one-tenth either
in kind or value at the well or mine, at Lessee's election, except that on sulphur the royalty shall be fifty cents (60c) per long ton. Lessee shall have
free use of oil, gas, coal, wood and water from said land, except water from Lessor's wells, for all operations hereunder, and the royalty on oil, gas and
coal shall he computed after deducting any so used. Lessor shall have the privilege at his risk and expense of using gas from any gas well on said land
for stoves and inside lights in the principal dwelling thereon out of any surplus gas not needed for operations hereunder.
4. Lessee, at. its option, 1s hereby given -the- right-- and -power to. pool or combine the acreage covered by this lease or any portion thereof with
other land, lease or leases in the immediate vicinity thereof, when in Lessees judgment it is necessary or advisable to do so in order properly to de-
velop and operate 'said premises in coaipfiance with- the- spacing rules of the Railroad Commission of. Texas or. other lawful authority, or when to do
so would, in the judgment of Lessee,promote the conservation of the oil andgas in and under and that may be produced from said premises, such pool,
ing to he into a unit or units not exceeding 40 acres each. Lessee shall execute in writing an instrument identifying and describing the pooled
acreage. The entire .acreage so pooled into a tract or unit shall he treated, for all purposes except the payment of royalties on production from
the pooled unit, as if it were included in this lease. If production is found on the pooled acreage, it shall be treated as if production is had from this
lease, whether the well or wells be located on the premises covered by this lease or not. In lien of the royalties elsewhere herein specified, Lessor shall
receive on production from a unit so pooled only such portion of the royalty stipulated herein as the amount of his acreage placed in -the unit or hiss_ _
royalty interest therein on an acreage basis bears to the total acreage so po oled'in the-particular-unitinvolyed.-_
5. if operations for drilling are not commenced on as! d land or on acre-
age pooled therewith as above provided on. or,.before Dene -tuber 14, 1842, this
lease shall then terminate as to .both parties, unless on or before such
date'Lessee shall pay or tender to Lessor or t,o the credit of Lessor in' the
First National Bank at Beaumont, Texas,, (which bank- and its successors are
Lessorts agent a','d shall continue as the depository for any and all rentals
payable hereunder regardless of changes in ownership, of said land or the
rentals) the sum of Nine Hundred Fifty-eight a�.d 75/100 Dollars_($958.75),
(herein called rental), which shall cover the privilege of deferring commence
meat of drilling operations forra period of six (6) months. In like manner
and upon like payments or tenders semi-annually the commencement of drilling
operations may be further deferred for successive periods of sig; (6) months
each during the primary term. The payment or tender of --rental may be made
I by the check or draft of Lessee mailed or delivered to Lessor or to said baz21c
on or before such date of payment. If such bank (or any successor bank)
should fail, liquidate or be succeeded by another bank, or for w y reason
fail or refuse to aocept rental, Lessee shall not be held in default for fail-
ure to rake such payment or to-zder of rental until thirty (30) days after
Lessor shall deliver to Lessee a proper recordable instrLunent, naming another
bank as agent to receive such payments or tenders. The down cash payment is
consideration for this lease according to its terms and shall not be allocated
as mere rental for a period. Lessee may at any time execute and deliver to
Lessor or to the depository above named or place of record a release or re-
leases covering any portion or portions of the above described premises and
thereby surrender this lease as to such portion or portions and be relieved
ofall obligations as to the acreage surrendered, and thereafter the rentals
payable hereunder shall be reduced in the proportion that the acreage covered
hereby is reduced ,by said release or releases.
e reach by Lessee of any obligation arising hereunder shall not work a forfeiture or termination of this lease nor cause a termination or
reversion of the estate created hereby nor be grounds for cancellation hereof in whole or in part. In the event Lessor 'considers that operations are not
at any time being conducted in compliance with this lease, Lessor shall notify Lessee in writing of the facts relied upon as constituting a breach hereof,
and Lessee, if in default, shall have sixty days after receipt of such notice in which to commence the compliance with the obligations imposed by virtue
of this instrument. After the discovery of oil, gas or other mineral in paying quantities on said premises, Lessee shall reasonably develop the acreage
retained hereunder, but in discharging this obligation it shall in no event be required to drill more than one well per forty (40) acres of the area re-
tained hereunder and capable of producing oil, gas or other mineral in paying quantities.
10. Lessor hereby warrants and agrees to defend the title to said land and agrees that Lessee at its option may discharge any tax, mortgage or
other lien upon said land, either in w{lole or in part, and in event Lessee does so, it shall be subrogated to such lien with the right to enforce same
and apply rentals and royalties accruing hereunder toward satisfying same. Without impairment of Lessee's rights under the warranty in event of fail-
ure of title, it is agreed that if Lessor owns an interest in said land less than, the entire fee simple estate, then the royalties and rentals to be paid Lessor
shall be reduced proportionately.
11. When drilling or other operations are delayed or interrupted by lack of water, labor or materials, or by fire, storm, Rood, war, rebellion,
insurrection, riot, strike, differences with workmen, or failure of carriers to transport or furnish facilities for transportation, or as a result of some order,
requisition or necessity of the government, or as the.result of any cause whatsoever beyond the control of the Lessee, the time of such delay or interrup-
ti_ o4hall not be counted against Lessee, anything in this lease to the contrary notwithstanding,
12* So lorlg as the �laterent of lossur Oxy. and to the most 111 '?f Q�` �u�d��r�
�s �: i}
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Of d
AN ORDINANCE
ENTITLED AN ORDINANCE AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN OIL, GAS AND MINERAL
LEASE ON BEHALF OF THE CITY OF BEAUI4MONT AS LESSOR,
LEASING TO SUN OIL COMPANY, AS LESSEE, THE FOLLOW-
ING DESCRIBED PROPERTY SITUATED IN JEFFERSON
COUNTY, TEXAS: LOTS 4, 5 AND 6, BLOCK E, LOTS 11
2, 32 4, 5 AND 6, BLOCK H, LOTS 2, 3 AND 8, BLOCK
F, LOT 12, BLOCK D, LOTS 4, 5 AND 6, BLOCK.B, ALL
OF BLOCK A, ACREAGE LOTS 1, 42 81 9 AND 12, THE
NORTH HALF OF ACREAGE LOT 6, ALL OF SAID LOTS AND
BLOCKS BEING IN WHAT IS KNOWN AS THE SUTHERLAND
ADDITION TO THE CITY OF BEAUMONT,. JEFFERSON COUNTY,, --.
TEXAS, SAID SUTHERLAND ADDITION BEING PART OF THE
HEZEKIAH WILLIAMS, JR. SURVEY. ALSO AN UNDIVIDED
THREE=FOURTHS INTEREST IN AND TO THE WEST HALF OF
SUBDIVISION 3 OF THE HEZEKIAH WILLIAMS, JR. SURVEY
AS PARTITIONED BETWEEN THE HEIRS OF E. R. COLLIER,
EXCEPTING ELEVEN ACRES THEREOF DESCRIBED IN A DEED
FROM JOSEPH OVERY TO L. A. BERGIN DATED OCTOBER 17,
1923,.RECORDED IN VOLUME '234, PAGE 572, DEED RECORDS
OF JEFFERSON COUNTY, TEXAS, FOR EXPLORATION FOR AND
PRODUCTION OF OIL, GAS OR OTHER MINERALS, A COPY
OF SAID LEASE CONTRACT BEING HERETO ATTACHED.
WHEREAS, Sun Oil Company, which maintains an office in
the City of Beaumont employing a large number of the citizens
of the City of Beaumont, now being the owner of an oil, gas
and mineral lease covering the following described land owned
by the City of Beaumont, to -wit:. -
Lots 4, 5 and 6, Block E, Lots 1, 2, 3, 4, 5 and 6,
Block H, Lots 2, 3, and 8, Block F, Lot 12, Block D,
Lots 42 5 and 6, Block B. all of Block A, Acreage
Lots 1, 41 8, 9 and 12, the North Half of Acreage
Lot 6, All of said lots and blocks being in what is
known as the Sutherland Addition to the City of
Beaumont, Jefferson County, Texas, said Sutherland
Addition being part of the Hezekiah Williais, Jr.
Survey. Also an undivided,three-fourths interest in
and to the west half of Subdivision 3 of the Hezekiah
Williams, Jr. Survey as partitioned between the heirs
of E. R. Collier, excepting eleven acres thereof de-
scribed in a deed from Joseph Overy to L.;`A. Bergin,
dated October 17, 1923, recorded in Volume 234, Page
572, Deed Records of Jefferson County, Teas;
Said lease being dated December 14, 1937, from the City of
Beaumont to C. -Stanley Banks as -lessee, recorded in Volume
441, Page 505, Deed Records of Jefferson County, Texas, de-
sires to enter into a new oil, gas and mineral lease with
the said City of Beaumont of different terms and conditions
than the present lease contract, which new lease contract
will supersede and take the place of the presently existing
lJ' L 1t , `f - 4
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lease contract; and
WHEREAS, the proposed oil, gas and mineral lease con-
tract has been drafted by the lessee, Sun Oil Company, and
a copy of the same is hereto attached and the terms and
provisions of said oil, gas and mineral lease contract ap-
pear to be advantageous to the City of Beaumont.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF BEAUMONT:
That the Mayor and the City Clerk be, and they are
hereby authorized and directed to execute on behalf of the
City of Beaumont the said oil, gas and mineral lease con-
tract, leasing to the said Sun oil Company for oil, gas and
mineral purposes the property hereinabove described in ac-
cordance with the terms and provisions of the oil, gas and
mineral lease contract, a copy of which is hereto attached.
PASSED by the City Commission on this the 21st day of
July, A. D. 1942.
LESLIE LOWRY
AY0R
STATE OF TEXAS j
COUNTY OF JEFFERSON j
I, Hugh Blevins, City Clerk of the City of Beaumont,
Texas, do hereby certify that the above and foregoing is a
true and correct copy of an Ordinance passed by the City
Commission of the City of Beaumont in regular session held
July 212 194:22 the original of which is on file in this
office.
Given under MY hand and seal of the City of Beaumont this the
28th day of July, A. D., 1942.
ity Clerk,, City of Beaumont, Texas