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HomeMy WebLinkAboutAgenda Report - October 1, 1986 (87)CITY OOLMIh METIM _LA OMBER 1, 1986 RESOLUTION OF INTE WION TO CALL FOR BIDS FOR A CERTAIN OIL AND GAS LEASE RES. NO. 86-149 Council was informed that the City has receiN43d several inquiries recently indicatinq an interest in entering into CC -27(d) an Oil and Gas Lease on certain City property. Section 7058.5 of the Public Resources Code of the State of California provides that, before a lease or any operating agreement or other type of agreement for the production of oil, gas, or other hydrocarbons is entered into, the governing body of a city shall in open meeting adopt a resolution declaring its intention to take such action. The subject resolution shall fix a time not less than 30 days thereafter and place for a public meeting of said governing body, at which meeting sealed proposals to ?ease or contract will be received and considered. Council adopted Resolution No. 86-149 - Resolution of Intention of the City Council of the City of Lodi, declaring its intention to call for a certain oil and gas lease and setting the bid opening for December 3, 1986. C111UNCIL COMMUNICATION T07 THE CITY COUNCIL DATE NO. FROM. THE CITY MANAGER'S OFFICE October 1 1986 SUBJECT- RESOLUTION OF INTENKTION TO CALL FOR BIDS F`OR A CERTAIN OIL AND GAS LEASE The City has received several inquiries recently indicating an interest in entering into an Oil and Gas Lease on certain City property. Section 7058.5 of the Public Resources Code c`_ the State of California provides that, before a lease or any operating agreement or other type of agreement for the production of oil, gas, or other hydrocarbons is entered into, the governing body of a city shall in open meeting adopt a resolution declaring its intention to take such action. The subject resolution shall fix a time not less than 30 days thereafter and place for a public meeting of said governing body, at which meeting sealed proposals to lease or contract will be received and considered. The resolution shall, before the date of such meeting, be published once a week for four successive weeks in one or more newspapers of general circulation in the city where the property is situated. Based on information received, it is staff's recannendation that the following bidding factors be established: 1. The minium annual rental shall be $30.00 per acre. 2. The minir mn cash bonus shall be $10,000. 3. The variable bidding factor shall be the percentage of royalty on all oil, gas, minerals, or other hydrocarbons that may be produced from said land. That the City Council adopt Resolution No. 86-149 - 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 and setting the time and date to receive bids as 5:00 p.m., Wednesday, December 3, 1986. ALICE M. City Clerk RESOLUTION NO. 86-149 A RESOLUTION OF THE CITY COUNCIL OF M CITY OF LORI, CALIFORNIA, DECLARING ITS DMI?TION TO CALL FOR BIDS FOR A CERTAIN OIL AND GAS LEASE AND MAKING FINDINGS IN CONNECTION ECTION THEREWrM The City Council of the City of Lodi, California, does resolve as follows: SECTION 1. Pursuant to Sections 7058 and 7058.5 of the Public Resources Code of the State of California, the City Council declares that it intends to call for bids for a lease agreement for the production of oil, gas and other hydrocarbons. SECTION 2. Said lease shall cover all land lying more than 500 feet below the surface of that certain land upon which a bid is submitted. The City will be receiving bids on two (2) alternate locations both situated in the County of San Joaquin, State of California, and more particularly described as follows: Alternate 1 Portions of Sections 23, 24, 25 and 26, Township 3 North, Range 5 East, Mount Diablo Rase and Meridian, also being describ d as Assessor's Parcels 055-120-1, 055-120-7, 055-130-4, 055-130-13, 055-130-14, 055-130-15, 055-150-11, 055-15042, 055-150-14, 055-150-15, and 055-15u-:7. The property is also cm mnly known as the (City of Lodi) White Slough Water Pollution Control Facility. This property is highlighted on the attached Exhibit A and totals approximately 763 acres. Alternate 2 Portions of Sections 23 and 26, Township 3 North, Range 5 East, Mount Diablo Base and Meridian, also being described as the Westerly portion of the City of Lodi White Slough Water Pollution Control Facility property. This portion of City property is highlighted on the attached Exhibit B and totals approximately 392 acres. Exhibits A and B are on file in the office of the City Clerk. SECTION 3. The mininum annual rental shall be $30.00 per acre. SECTION 4. The minimun cash bonus shall be $10,000. 11 SECTION 5. 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. SECTION 6. 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 ccrnpany. SECTION 7. The variable bidding factor from which bids shall be received shall be the percentage of royalty on all oil, gas, minerals, or other hydrocarbons that may be produced from said land. SECTION 8. The bidder shall sutadt a sealed proposal to enter into said lease a.3ieement and the same shall be received at the office of the City Clerl: c,f the City of Lodi located in the City Hall on or before 5:00 p.m. Wednesday, December 3, 1986 and said bids shall be opened and publicly declared by the Council at its regular meeting in the City Hall, Lodi, California to be held at 7:30 p.m. on said date. Said bids shall contain a cashier's or certified check covering the full amount of the cash bonus consideration including the first year's rental and shall indicate the willingness of the leasee to enter into a lease containing at least the minimimi proposals set forth herein. SDCI'ION 9. The City Clerk shall publish this resolution once a week for four successive weeks in the Lodi News Sentinel, a newspaper of general circulation published and printed in the city and county where the property is situated. I hereby oertify that the foregoing resolution was passed and adopted by the City Council of the City of Lodi in a Regular Meeting held Wednesday, October 1, 1986 by the following vote: AYES: Council Members - Olson, Pinkerton, Snider, Hirschman and Reid (Mayor) NOES: Council Members - None ABSENT: Council Members - None ABSTAIN: Council Members - None / V- 1/117i ALICE M. DCHE City Clerk 86-149 ti EXHIBIT "A" Portions of Sections 23, 24, 25 and 26, Township 3 North, Range 5 East, Mount Diablo Base and Meridian, also being described as Assessor's Parcels 055-120-1, 055-120-7, 055-130-4, 055-130-13, 055-130-14, 055-130-15, 055-150-11, 055-150-12, 055-150-14, 055-150-15, and 055-150-17. The property is also commonly known as the (City of Lodi) White Slough Water Pollution Control Facility. This property is highlighted below and totals approximately 763 acres. EXHIBIT "B" Portions of Sections 23 and 26, Township 3 North, Range 5 East, Mount Diablo Base and Meridian, also being described as the Westerly portion of the City of Lodi White Slough Water Pollution Control Facility property. This portion of City property is highlighted be- low and totals approximately 392 acres.