HomeMy WebLinkAboutAgenda Report - August 5, 1987 (84)CITY ��l�lu arsi L.-�.-MG
AUGUST 5, 1987
AWARD BID FOR CERTAIN
OIL AND GAS LEASES IN
THE AREA OF THE i;HITE
SLOUGH POLLUTION CONTROL
PLANT
RES. NO. 87-96 Council was reminded that, at the July 15, 1987 Council
meeting, the following bids for certain oil and gas leas
CC -27(d) in the area of the White Slough eater Pollution Control
Plant were publicly opened and declared:
Bid I
NGC Energy Company
2320 Courage Drive
Suite 110
Fairfield, CA 94523
Parcel 1 390 acres at $20.00 per acre $ 7,800.00
(first years rental)
Cash bonus $ 4,095.00
A Cashiers Check was included with the bid
in the amount of $11,895.00
Bid 2
Sun Exploration and Production
2151 Alessandro
Suite 190
Ventura, CA 93001
Parcel 2 137 acres at $20.00 per acre $ 2,740.00
(first years rental)
Cash bonus $ 685.00
A Cashiers Check was included with the bid
in the amount of $ 3,425.00
Council was further reminded that Resolution No. 87-60 wi
adopted by the Lodi City Council on June 3, 1987 declarii
its intention to cat , for bids for a certain gas and o -
lease on this property. The resolution provided for big
on either parcel or on both parcels. Parcel I tota'
approximately 390 acres and parcel 2 totals approximate'
137 acres.
The bidding factors contained in Resolution No. 87-60 are
as follows:
1. The minimum annual rental shall be $20.00 per acre
2. The royalty shall be one-sixth (1/6th)
3. The term of the least shall be for a minimum of three
years but not Lo exc_ed 35 years.
a. The form of the lease shall be a standard oil and gas
lease form such as used by major oil companies.
5, the ane variable bidding factor as allowed by state
ined t° be a cash bonus payable upon
statute was determ
submittal of the bid:
Council adopted Resofor
lution No. 87-6��locatedt�in then area
certain oil and gas leases on property
f the White Slough Water Polluandn SunControl
Exploration
Plant to R*ion and IGC
of Parcel 1
Energy Company outlined above.
Production on Parcel 2 as €�v:
TO THE CITY COUNCIL ( DATfNO.
FROM. THE CITY MANAGER'S OFFICE August 5, 1987 1
SUBJECT:
AWARD BID FOR CERTAIN OIL AND GAS LEASES IN THE AREA. OF THE WHITE SLOUGH
POLLUTION CONTROL PLANT (AREA LOCATED WEST OF THORNTON ROAD APPROXIMATELY TWO
MILES SOUTH OF HIGHWAY 12) AND AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE
THE SUBJECT LEASE AGREEMENTS ON BEHALF OF THE CITY
At the July 15, 1987 Council meeting, the following bids for certain oil and
gas leases in the area of the White Slough Water Pollution Control Plant were
publicly opened and declared:
Bid 1
NGC Energy Company
2320 Courage Drive
Suite 110
Fairfield, CA 94523
Parcel 1 390 acres at $20.00 per acre
(first years rental)
Cash bonus
A Cashiers Check was included
with the bid in the amount of
Bid 2
Sun Exploration and Production
2151 Alessandro
Suite 190
Ventura, CA 93001
Parcel 2
137 acres at $20.00 per acre
(first years rental)
Cash bonus
A Cashiers Check was included
with the bid in the amount of
$7,800.00
$4,095.00
$11,895.00
$2,740.00
$ 685.00
$3,425.00
Council will recall that Resolution No. 87-60 was adopted by the Lodi City
Council on June 3, 1987 declaring its intention to call for bids for a certain
gas and oil lease on this property. The resolution provided for bids on either
parcel or on both parcels. Parcel 1 totals approximately 390 acres and parcel
2 totals approximately 137 acres.
The bidding factors contained in Resolution No. 87-60 are as follows:
1. The minimum annual rental shall be $20.00 per acre
PACE NO. TWO AWARD 5IJ FOR CERTAIN OIL AN, CAS LEAS'S
2. The royalty shall be one-sixth (1/6th)
3. The term of the lease shall be for a minimum of three years but
not to exceed 35 years.
4. The form of the lease shall be a standard oil and gas lease form
such as used by major oil companies.
5. The one variable bidding factor as allowed by state statute was
determined to be a cash bonus payable upon submittal of the bid.
The bids have been reviewed and found to be in order by City Attorney Stein and
Finance Director Holm
RECOMMENDED ACTION: That Council adopt Resolution No. 87-96 awarding the bids
for certain oil and gas leases on property located in the area of the White
Slough Water Pollution Control Plant to NGC Energy Company on Parcel I and Sun
Exploration and Production on Parcel 2 as outlined above.
Mice M. Reimche
City Clerk
AMR:jj
COUNCO14
TXTA.02D
I
r EiY COi�tii_i�
\1 dvo! i rU 1 eniiSeri.
DAVIv M HINCHMAN
!A.tit[SW PINKIE RTON.Ir
EREO t.t REID
CITY OF LORI
'I -
Y HALL, 1" IALjl PiN1 ..i! L 1
CALL BOY Ak)>
LODI. CALIFORNIA 95241-1910
(209) i34-5634
1EHCO TE i (2011 3, t r.'vs
August 6, 1987
Sun Exploration and Production Company
2151 Alessandro, Suite 190
Ventura, CA 53001
Re: bas and Oil Lease - City of Lodi
Gentlemen:
City ;\ta ngge
RONALD -M. STEIN
Crty Attorney
This letter will confirm that the bid contained in your letter of July
10, 1987 to the City of Lodi regarding the City of Lodi Oil and Gas
Lease was accepted by the Lodi City Council, and a certified copy of
Resolution No. 87-96 - Resolution Awarding the Bids for Oil and Gas
Leases on property located in the area of White Slough Water Pollution
control Plant Property is enclosed.
Also enclosed herewith please find an original and two copies of the
Subsurface Oil and Gas Lease which has been executed by the Mayor and
City Clerk with their signatures acknowledged. Would you please cause
two copies of this document to be executed and returned to the City of
Lodi. Please have the signature of your corporate representative on
these documents acknowledged.
We will have the document recorded and will send you a photostatic copy
of the documents with the recordation information shown.
F -
If you have any questions regarding this matter, please do not hesitate
to contact this office.-
Very truly ours, ,
Alice M. Reiniche
City Clerk
(IT) COUtif.IL
: bkitti \h l)L SON. Mavor
it Fid. R :Randy) SKID[ k
DAVID .M HINCHVAN
IANtES W I"NURTON. Ir
FRkO M REID
CITY OF LODI
CITY HALL. 221 WE.'S1 )'INE iiRtLI
CALL BOX 3006
LODI. CALIFORNIA 45241 1910
(209) 334-5634
,I LKOP11R I,^ Sit h711i
August 6, 1987
NGC Energy Company
2320 Courage Drive, Suite 110
Fairfield, CA 94523
Re: Gas and Oil Lease - City of Lodi
Gentlemen:
T HON;aj A. i i Rj(;T:
t .h tt r..t e•,r
RONAAD M SiE;N
(,'v Attomev
This letter will confirm that the bid contained in your letter of July
14, 1987 to the City of Lodi regarding the City of Lodi Oil and Gas
Lease was accepted by the Lodi City Council, and a certified copy of
Resolution No. 87-96 - Resolution Awarding the Bids for Oil and Gas
Leases on property located in the area of White Slough Water Pollution
control Plant Property is enclosed.
Also enclosed herewith please find an original and two copies of the
Subsurface Oil and Gas Lease which has been executed by the Mayor and
City Clerk with their signatures acknowledged. Would you please cause
two copies of this document to be executed and returned to the City of
Lodi. Please have the signature of your corporate representative on
these documents acknowledged.
We will have the document recorded and will send you a photostatic copy
of the documents with the recordation information shown.
If you have any questions regarding this matter, please do not hesitate
to contact this office.
Very truly yours,
Alice M. Reimche
City Clerk
RESOILUTION NO. 87-96
RESOLUTION AWARDING BIDS ON CERTAIN OIL AND GAS LEASES
ON PROPERTY LOCATED IN THE AREA OF THE
WHITE SLOUGH WATER POLLUTION CONTROL PLANT
WHEREAS, on June 3, 1987 the City Council of the City of Lodi
adopted Resolution No. 87-60 "A Resolution of the City Council of t!c
City of Lodi Declaring Its Intention to Call for Bids for a CertainOi
and Gas Lease and Making Findings in Connecticrt Therewith";
WHEREAS, pursuant to Resolution No. 87-60, the City Clerk
published the subject resolution in both the "Lodi News Sentinel" and
the "Stockton Record", newspapers of general circulation published and
printed in the city and county where the property is situated;
WHEREAS, pursuant to Resolution No. 87-60, the City Clerk did
receive and open the following bids at the July 15, 1987 council
meeting:
Bid
NGC Energy Company
2320 Courage Drive
Suite 110
Fairfield, CA 94523
Parcel 1 390 acres at $20.00 per acre $7,800.00
(first years rental)
Cash bonus $4,095.00
$-11—,8-9 5.3M
(Check received in the amount of
$11,895.00 which includes the
1st years rental and cash bonus)
One-sixth (1/6th) royalty
Term of 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
with which the leased land may be
pooled.
87-96
Bid 2
Sun Exploration and Production
2151 Alessandro
Suite 190
Ventura, CA 93001
Parcel 2 137 acres at $20.00 per acre $2,740.00
(first years rental)
Cash bonus $ 685.00
$3,425.00
(Check received in the amount
of $3,425.00 which includes
the 1st years rental and cash
bonus)
One-sixth (116th) royalty
Term of 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
with which the leased land may be
pooled.
WHEREAS, Resolution No. 87-60 provides that bids may be submitted
on either Parcel 1 (390 acres +) or Parcel 2 (137 acres +) or may
be submitted on Parcels 1 and 2 combined (527 acres +)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Lodi that the award of bid on certain oil and gas leases on property
located in the area of the White Slough Water Pollution Control Plant
shall be made to NGC Energy Company on Parcel and the `un Exploration
and Production Con:?any on Parcel 2 as heretofore set forth.
Dated: August 5, 1987
87-96
I hereby certify that Resolution No. 87-96 was passed and adopted by
the City Council of the City of Lodi in a regular meeting held August
5, 1987 by the following vote:
Ayes: Council Members - Clson, Snider and Reid
Noes: Council Members - None
Absent: Council Members - Hinchman and Pinkerton
Alice M. Reimche
City Clerk
oved as to form
ona d M. Stein
City Attorney
87-96