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Home My WebLink AboutAgenda Report - July 15, 1987 (72)CITY COUNCIL MEETING JULY 15, 1987 RECEIPT OF BIDS FOR OIL AND GAS LEASE ON CERTAIN CITY PROPERTY LOCATED IN THE AREA OF THE WHITE SLOUGH WATER POLLUTION CONTROL PLANT Council wa, reminded thac Resolution No. P7-60 was adopted at the June 3 1987 ouncil meeting declaring Council's CC -27(d) intention to call for bids for a certain oil and gas lease on City property located in the area of the White Slough Water Pollution Control Plant. The call for Lids was advertised pursuant to law. Resolution No. 87-60 sets forth that the bidders shall submit sealed proposals tc the City Clerk on or before 5:00 p.m. Wednesday, July 15, 1987 and that the bids will then be coened publicly and declared by the City Clerk at the July 15, 1987 Council Meeting. Bids were therefore opened and declared publicly by the City Clerk as follow,,: Resolution No. 87-60 sets forth that - 1) The minimum annual rental shall be $20.00 per acre. 2) The royalty share payable for oil, gas and other hydrocarbons produced from wells on the leased land shall be orie-sixth (1/6th) to be computed as provided in said form of lease. 3) The term of the lease shall be for three (3) years and for such longer period (not to exceed 35 years) during which oil, gas and other hydrocarbon substances shall be produced from said leased land, or lands with which the leased land may be pooled. 4) The form of the lease shall be a standard oil and gas lease form such as is used by Shell Oil, Standard Oil, Phillips Petroleum, or any other major oil ccmpany. 5) The variable bidding factor from which bids shall be received shall be the cash bonus consideration, payable upon submittal of the bid. 6) Bids may be submitted on either Parcel 1 (390 acres or Parcel 2 (137 acres +/-) or may be submitted on Parcels I and 2 combined (527 acres RECEIVED 1) NGC Energy Company, 2320 Courage Drive, Suite 110, Fairfield, CA Parcel I - 390 acres - Cash bonus and first years rental - Cashiers check in the amount of $11,895.00 2) Sun Exploration and Production Company, 2151 Alessandro, Suite 190, Ventura, CA Parcel 2 - 137 acres - Cash bonus and first years rental - Cashiers Check in the amount of $3,425.00 On motion of Council Member Reid, Hinchman second, Council directed staff to analyze the bids received a.nd bring back , a recommendation regarding the matter at the August 5, 1987 Council m � eettng. � - TO THE CITY Ck 1UNCII FROM.: THE CITY MANAGER'S OFFICE SUBJECT_ RECEIPT OF BIDS FOR OIL AND GAS LEASE ON CERTAIN CITY PROPERTY LOCATED IN THE AREA OF THE WHITE SL.UGN WATER POLLUCTION CONTROL PLANT (LOCATED WEST OF THORNTON ROAD APPROX.IMAIELY TWO MILES SOUTH OF HIGHWAY 12) RECOMMENDED ACTION: Following the opening and declaring publicly by the City Clerk of the bids received for an oil and eas lease on certain city property located in the area of the White Slough Water Pollution Control Plant, that Council direct sta,f to analyze the bids received and bring back a-ecommendation regarding tie matter at the August 5, 198? Council me�ling. Council will recall that following a number of inquiries, Resolutirn No. 87-60 was adopted at the June 3, 1987 Council meeting declaring Council's intention .to call for bids for a certain oil and gas lease on certain City property located in the area of the White Slough Water Pollution Control Plant. The call for bids was advertised pursuant to law. Resolution No. 87-60 sets forth that the bidders shall submit sealed proposals to enter- i -to the subject lease ag-eement to the City Clerk on or before 5:00 p.m. Wednesday, July 15, 1987. The bids will then be opened publicly and declared by the City Clerk at ;he July 15, 1987 Council meeting. AMR:jj COUNCO14 TXTA.02D Alice M. Reimche City Clerk CiT1 COL'tiC;i. iOtiN t; fRznd•;'.. c\IDE R 'ayor Pro Tempore DAVID M H{N(.H,Nt.AN IAMF.S W PINKERTON• 1, fREt 1i REED CITY OF LORI CITY HALL, 221 WEST PINE STREET CALL BOX 3006 LODI, CALIFORNIA 952-A -191 0 (209)334-5634 tE LECONER . Q-09).133 b:95 July 21, 1987 Mr. J. R. Maccoun Landman Natural Gas Corporation of California 2320 Courage Drive, Suite 110 Fairfield, CA 94533 Dear Mr. Maccoun: THOMAS A. PETERSON Cth• Manager ALICE M REIN"10A Lith, Clerk RONALD M STEIN City Attorney Please be advised that, pursuant to City of Lodi Resolution No. 87-60 - A Resolution of the City Council of the City of Lodi, California, Declaring its Intention to Call for Bids for a Certain Oil and Gas Lease and Making Findings in Connection Therewith, your bid was opened and publicly declared at the Council meeting of July 15, 1987. Council directed staff to analyze the bids received and bring back a recommendation regarding the matter at the August 5, 1987 council meeting. You will be advised at the earliest possible date of Council's actions regarding this matter at the August 5, 1987 meeting. Should you have any questions, please do not hesitate to call this office. Very truly yours, Alice M. Reimche City Clerk AMR: JJ CITY COI_:,1C IL E�'ELVN At OI SON ,Mai C I `� Y d i F L O D I IO,H" R tRar:<iv1 SN!DI R LLL AAA �J 7aa; 7r I" ;, r-, p.>rE is tiY HA! l_ ?i WE 5-1 Ptv E' jTRt E.1 L'?.v!D tis ,,,..:., AI! SO?. ;•.106 JAMES by PiNKERTON. Ir LORI. CALIFORNIA 95241-1910 FRED M RECD (209)334-5634 TEM SER A2'N) M 67" July 21, 1987 THOMAS A PETERSON •� ratan �Gr.. �liC i. \i hE1�tCHE Sun Exploration and Production Company 2151 Alessandro, Suite 190 Ventura, CA 93001 Gentlemen: Please be advised that, pursuant to City of Lodi Resolution No. 87-60 - A Resolution if the City Council of the City of Lodi, California, Declaring its Intention to Call for Bids for a Certain Oil and Gas Lease and Making Findings in Connection Therewith, your bid was opened and publicly declared at the Council meeting of July 15, 1987. Council directed staff to analyze the bids received and bring back a recommendation regarding the matter at the August 5, 1987 council meeting. You will be advised at the earliest possible date of Council's actions regarding this matter at the August 5, 1987 meeting. Should you have any questions, please do not hesitate to call this office. Very truly ^yours, Alice M. Reimche City Clerk AMR:JJ CGty Attorney