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Home My WebLink AboutAgenda Report - December 3, 1986 (71)CITY SIL MFS TING DECE43M 3, 1986 D OIL AVID GAS LEASE NO BIDS RECEIVED City Clerk Reimche reminded t}wa, Council that at its Regular Meeting of October 1, 1986, Council adopted Resolution No. CC --27(d) 86-149 declaring the Council's intention to call for bids for a certain oil and gas lease. Sealed bids were to be delivered to the City Clerk's office no later than 5:00 p.m., December 3, 1986. Legal notice regarding the call for bids appeared in local newspapers and in a well known trade paper. Numerous telephone calls were received indicating interest in the matter; however, no bids wt�re received by the deadline set forth in the Resolution of Intention. COUNCIL COMMUNICATION TO- THE CITY COUNCIL DATE: NO. FROM; THE GtT7 MANAGER'S OFFICE December 3, 1986 SUBJECT: OIL AND GAS LEkSE (CITY PROPERTY LOCATED IN THE AREA OF THE WHITE SIAUGH WATER POLUJPION COWROL PLANT) Council will recall that at the Regular Council Meeting of October 1, 1986 Resolution 86-149 was adopted declaring the Council's intention to call for bids for a certain oil and gas lease (See Exhibit A attached) The call for bids was advertised pursuant to law. This office has received numerous telephone calls regarding the matter. Resolution 86-149 sets forth that U-se bidders shall submit sealed proposals to enter into the subject lease agreement to the City Clerk on or before 5:00 p.m. Wednesday, December 3, 1986. The bids will then be opened publicly and declared by the City Clerk at the Decwber 3, .1986 Council meeting. The Council may act upon the matter at this meeting or direct staff to analyze the bids and bring back a rec=wzxlaticn to the Council at the next Council meting. Alice M. Re City Clerk UNCIL COZIMUNICAT11--V THE CITY COUNCIL FROM: THE CITY MANAGER'S OFFICE SUBJECT: RESOLUTION OF IMEMION TO CALL FOR BIDS FOR 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. NO. 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 o`.her hydrocarbcns 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, befcre 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 recommendation that the following biddinq factors be established: 1. The mininum annual rental shall be $30.00 per acre. 2. The minimum 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 Maki.ig Findings in Connection Therewith and setting the time and date to receive bids as 5:00 p.m., Wednesday, December 3, 1986. ALICE M. RENME City Clerk r_. Exhibit A RESOL TPICN NO. 86--149 A RESOI=ICN OF THE CITY C(XV CIL OF THE CITY OF LODI , CAL MRNIA, DB=ARING ITS IN!=iCN TO CALL FOR BIDS FOR A CERTAIN OIL AND GAS LMSE AND MAKING FINDINGS IN OQNNECrIONi TENTH The City Council of the City of Lodi, California, does resolve as follows: SVMCNt 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 I`or bids for a lease agreement for the production of oil, gas and other hydrocarbons. SECTICN 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: �i�Mr-7-ITTI.-M1 Portions of Sections 23, 24, 25 and 26, Township 3 Nor+.h, 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, --S5-130-14, 055-130-15, 055-150-11, 055-150-12, 055-150-14, 055-150-15, and 055-150-17. The property is also cannatly known as the (City ► of Lodi) White Slough Water Pollution Oontrol 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 an the attached Exhibit B and totalu mately 392 acres. Exhibits A and B are on file in the office of the City Clerk. SDCTICN 3. The minimum annual rental shall be $30.00 per acre. SECTICN 4. The mininnan cash bonus shall be $10,000. 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 campany. 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. SDLTICN 8. The bidder shall submit a sealed proposal to enter into said lease agreement and the same shall be received at the office of the City Clerk of the City of Lodi located in the City Ha1I 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 rcqular 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 minimum proposals set forth herein. SDLTICN 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 certify 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 vete: AYES: Council Members - Olscn, Pinkerton, Snider, Hinchnan and Reid (Mayor) NOES: Council Mermbers - None ABSENT: council Members - None ABSTAIN: Council Members - None ALICE M. REIMCHE City Clerk 86-149 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 Stough Water Pollution Control Facility. This property is highlighted below and totals approximately 763 acres. L _ ._. � _ �.•.� .. .. { ...w � Lac _ ♦w ♦r 27 if •t. , t I —_-RIO BLANCO.... TRACT l u EXHIBIT "B" Portions of Sections 23 and 26, Township 3 North, Range 5 East, Mount Diablo Srse 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. 1 f 103 i { ». .—'-RIO BLANCO .. TRACT � is 34 33