RES NO 01-03-1991 RESOLUTION NO. /..-3
A RESOLUTION AUTHORIZING THE MAYOR AND THE CITY
CLERK TO ENTER INTO AN OIL AND GAS LEASE.
WHEREAS, the City of Van Buren is record owner of certain
property in Section 10, Township 9 North, Range 32 West, which is
presently being possessed and used by the Van Buren Water and
Sewer Department; and,
WHEREAS, said property approximates 25.21 acres; and,
WHEREAS, Tom Brown, Inc., has submitted to the Van Buren
Water and Sewer Department an Oil and Gas Lease dated
November 28, 1990, requesting a Lease for a primary term of three
years for a price of $947.70; and,
WHEREAS, the Van Buren Water and Sewer Commission by
Resolution did recommend on December 11, 1990, that the City
Council enter into said Oil and Gas Lease and did request that
the City remit to the Van Buren Water and Sewer Department the
proceeds from that Lease.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN,
ARKANSAS, that the Mayor and City Clerk are hereby authorized to
enter into and to execute the above described Oil and Gas Lease
with Tom Brown, Inc., dated November 28, 1990, and that proceeds
from the execution of that Lease be remitted to the Van Buren
Water and Sewer Department.
This Resolution passed and approved this 24th day of
January, 1991.
CITY OF VAN BUREN, ARKANSAS
By n �i�
ALLEN RAY O P A MAYOR
ATTEST:
ANN CITY CLERK
sxhiuit "o^ attace a ,a� at r
ou �o and being made |r o+ ceLa/" oil
and gas lease dated 11-28-90, city of Van ooreo, lessor and Tom
grown, Inc.., zess
Fart of aw/4 SE/4 and part of SE/1 SE/1 described as beginning at
the ww/c SW/4 as/4 thence Cast. aznng North line of Said SW/4 as/1
�16„6 +t, thence South „350.0 ft., thence west 800.0 ft toence
North ono.o ft to worth lice of •aid SC/1 ow/o, thence {East 10a.4
ft to po:int of beginning.
Part ci' the SC/1. as/1 of Section zn, Township p wcrto, nanos oc
weut being more particuzarzy uescri s mec�
ue u as f:�ow: csmni^g at
the sw/c of saiu SE/4 as/4 thence Worth 10:1,1 +t, thence ovvt» an
deg 01. min Cast zzz- ft, t»wnce South ap deg ca min east p/.vn
ft, �hience oout.h 11 dog no min sast n��rz +t to the point of
ueoim/inn; thence Perth oz uso »o min sasi coo.r ft, t/ece siast
ze5.02 thence oou10 294. na +t, thence North 70 ding 18 miff
weof 80,7 ft thence North uz .e9 58 min west 90.07 rt. thence
North a' deg »o min West zr.z* ft to point of beoinni
That n^rt of tHe falling uescrAueu tract tying wEt^in Section
10 being 8 e',,; 3:'.. :4 t::::::1 as par' i:. of tfte SE/1 as/4 and SW/1 SC./41 of
Section /o part of the ws/* HE/4 of Section zn beginning at a
noin4, 17e North of the aw/co,oer of said SE/1 as/1 cr sec 10,
run North 71 deg c2. min West 155.8 ft., wor zpo ft, East zoV
4:1., to the wes� line of said Sc/4 as/A, worth p.h•np saSo line
89.8 ft., East 450 ft., South 618.1 ft,, worL.^ 70 ueo 1.8 min we
00,7 •t., worth ac deg na pin west po.ar ft,, North 61 ueo 52 min
West l/0.4+ ft., North ar ueo zo min west p7'o» rt., North ao deg
01 min west 11c�nN. ft. to the we51: line cif the SE/1 'F7 South
n,^ 4 to the rojot of beginning.
The East o*o feet of the folliowinn tract being part o+ the EE/1
SE/4 and being mure narticu/arz/ ucscrAHDeu *s follows:: oeqivoio:
of point 201,01 rt. North 0 t He s4.1/corner of said SE/0 as/o,
run thence worJf 00n.o rt., ca /po ft.,, unuth 105.2 •EL.,, west
270 rt., North deg uo min west 165.7 ±t. to the point of
beginning.
r.,t of Hp/ SE/4 2s/4 ccmme"Th.ny at the ws/c of said NC/1 as/1
oe/a t tent,: west ajonn Worth line of sa/a we/* Ss/1 as/* c•�a ft
to wys• side of O. coun ro~a (peev/oovse road), thunca South 00
deg zz min west along rivot of way 309.7 +t to noint of Le:innhnn
cvn•Jt along r/w South oo deg c' min west �o.o ft.., thence
xorA1 ov deg •p min west oo„o ft., thence North 00 deg 21 min
East �V.o ft,, u`e,.ce South ap oeo 0;9 mi.` cast �0.0 ft to point
of beginning.
ozz that. part. ot fie NW/0 described as beginning at a point on
thin ceoter line of �ees creex where it crosses the wur.h boundary
line of Section 10, thence rvn in aoutowes direction down
the ce"terzi"e of said creek. to the South I•ne the WW/A,
thence west 4 c 1 os wes1.ero edge of Lees crcc/, thence in a
worUxeasterzr direct along 5a4o western edge to the worto �i.ne of
apcticn 10, t11ence sast to o^in, of ue9lo"/np.
Signed for :01entJ,4ca±Icn:
42
OIL AND GAS LEASE
(Arkansas Paid-UP)
a This ApRI made and enlel into this 9 g day of November 19 5 by and between
City of Van Buren
hereinafter called Lessor, whose address is
and TORT Brown, Inc. hereinafter called Lessee, whose address is
I P n Pox 2608
MidlaRA Texas 79709
WHINESSETH:
I. That Lessor, lor and in consideration of the sum ol Ten and more Dollars (510.00 morel In hand paid, and OI the covenants and agreements
hereinafter contained 10 be performed by the Lessee, does hereby grant, demise, lease and let unto said Lessee
the hereinaller described land, for the purpose ol carrying on geological, geophysical and other exploration work, and the drilling and operating tor,
producing and saving all of the 0.1. gas. and other hydrocarbons, all that certain tract of land, together with any reversionary rights therein, situated in
the County of Crawford State 01 Arkansas, and described as follows:
Section 10, Township 9 North, Range 32 West
See Exhibit "A" attached hereto and made a part hereof.
contaning 25.21 acres, more or less, and also, in addition to the above described land. any and all ships or
parcels of land, other Irian those constituting regular governmental subdivisions. adjoining or contiguous to the above described land and owned or
claimed by Lessor, all of the foregoing land being hereinafter referred to es 'leased premises'. 11 Is the intention of the Lesos, herein that Me leased
premises Cover and include all lands owned OI claimed by Lessor m the above numbered governmental section Or sections together wpm any and all
accretions thereto wnUher or not herein accurately and completely described.
2. This lease shall remain in force for a primary term ol three 3 years and as long thereafter as oil, gas or other
hydrocarbons is produced from said leased premises or from lands pooled therewith.
3. Lessee shall deliver, tree of cost, to Lessor at the wells, or to the credit 01 Lessor in the pipeline t0 which the wells may be connected, the equal
one-month pan ol all Oil and other liquid hydrocarbons produced and saved from the leased premises, or at Lessee's option, to pay Lessor for such one-
eighth royalty the market price at the well for such oil and other liquid hydrocarbons of like grade and gravity prevailing on the day such Oil and other
liquid hydrocarbons are run tram the lease stock tanks.
4. Lessee shall pay Lessor one-eighth of the proceeds received by Lessee al the well for all gas (including all substances contained In such gas)
produced I rom the leased premises and sold by Lessee. 11 such gas is used by Lessee oft the leased premises or used by Lessee for the manufacture of
casinghead gasoline or other products, Lessee shall pay Lessor one-eighth of the prevailing market price at the well for the gas so used.
5. II a well capable Of producing gas or gas and gas-condonsale in paying quantities located on the leased premises for on acreage pooled or
consolidated with all or a portion of the leased premises into a unit lor the drilling or operation of such welt) is at any time shut in and no gas Or gas-
Condensate therefrom, is sold or used oft the premises or for the manufacture 01 gasoline or other products, nevertheless such shut -in well shall be
deemed 10 be a well On the leased premises producing gas In paying quantities and this Lease will continue in force during all of the time or Mmes while
such well is so shot in, whether before or alter the expiration of the primary term hereof. Lessee shall use reasonable diligence 10 market gas or gas
condensate capable 01 being produced from such snuhin well but shall be under no obligation to market such products under terms, conditions or
circumstances which, in Lessees judgment exercised in good faith, are unsatisfactory. Lessee shall be obligated to pay or lender to Lessor within 45
days after the expiration of each period of one year in length (annual period) during which such wall is so shut in, a royally 01 One Dollar 151.001 per net
royally acre retained hereunder as of the end of such annual period; provided Mal, if gas or gaa'condenaale from such well is sold or used as aforesaid
before the end o1 any such annual period, or II, at the end of any such annual period, this Lease is being maintained in lorco and enact otherwise than by
reason of such shut-in well. Lessee shall not be obligated to pay or lender. for that particular annual period, said sum Of money. Such payment shall be
deemed a royalty under all provisions of this Lease. Son payment may be made or tendered l0 Lessor or 10 Lessees credit In the
Bank al Or its successors, which Bank and its successors are the
Lessors agent and shall continue as the depository for any and all sums payable under this Lease regardless of changes of ownership in said land, or in
the right to received royalty hereunder. Royally ownership as of the Iasi day of each such annual period as shown by Lessee's records shall govern the
determination of the pony or parties entitled 10 receive such payment.
6. Lessee hereby is given the right at its option, al any time and whether before Of after production, to pool for developement and operation purposes
all many part or pans 01 leaded premises or rights therein with any other land In the vicinity thereof, or with any leasehold. operating or other rights or
interests in such other land s0 3510 create units of such size and sunace acreage as Lessee may desire but containing not more than fony'live 1451
acres; provided, however, a unit may be established hereunder containing not more than 640 acres plus 10% acreage tolerance it unitized On)ya5 to gas
rights or Only as to gas and gas-condensate, except that units pooled for oil or oil and gas lor or In conjunction with reprOSauring, pressure maintenance,
cycling and secondary recovery operations or any one or more of Same, may be formed 10 include not more than 320 acres. II at any time larger units are
required under any (hen applicable law. rule, regulations or order of any governmental authority for the drilling, completion or operation of a well, or for
obtaining maximum allowable Irom any contemplated, drilling or completed well, any such unit may be established or enlarged to conform to the size
specified by such law, rule. regulation or order. Each unit shall be created by Lessees recording a Declaration of Pooling containing a description of the
unit so created.
Operations on any pan of any lands s0 pooled shall, except for the payment of royalties, be considered operations on leased premises under this
Lease, and, notwithstanding the status of a wed at the time of pooling, such operations shall be deemed to be in connection with a well which was
commenced on leased premises under this Lease. The lerm as used herein shall include. without limitation, the following: commencing,
construction of roadways, preparation of drillsite, drilling, (eating, completing, reworking, recompleting, deepening, plugging back, repressuring.
pressure maintenance. cycling, secondary recovery operations, or the production of oil or gas, or the existence of a shut-in well capable of producing oil
or gas.
There shall be allocated to the portion of leased premises included in any such pooling such proportion of the actual production from all ands so
pooled as such portion Of leased premises, computed on an acreage basis, bears 10 the entire acreage of the lands so pooled. The production so
allocated shall be considered for the purpose of payment or delivery of royalty to be Ills entire production for the portion of leased premises included in
such pooling in the same manner as though produced Tram such portion of leased premises under the terms of this Lease.
7. 11 the Lessor owns a lesser interest in the above described land than the entire and undivided mineral estate therein. then the royalties herein
provided for shall be paid the said Lessor only in the proportion which his interest bears to Me whole and undivided mineral estate.
8. 11 the estate of either parry hereto is assigned, and the privilege of assigning in whole or in pan is hereby expressly allowed. the COvenanb hereof
shall extend to their heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or the minerals to and under the
same or assignment of royalties shall be binding on Lessee unless Lessee shall have been lurnished ninety 190) days before payment hereunder of such
royalties, with candied copies 01 recorded instruments showing evidence 01 11(10.
9. Lessee shall have the right to use, tree of cost, gas.oil and water found on said land for Its operations, except water from the wells of the Lessor.
When required by the Lessor. the Lessee shall bury Its pipelines below plow depth and shall pay reasonable damages for injury by reason of its
operations to growtng crops on said land. Nowell shall be drilled nearer than 200 feet lo any house Or barn or other structure on said, ^remises a:.9 the
dale of this Lease without the written consent of the Lessor. Lessee shell have the right at any time during. or after the expiration ol this Lease to enter
upon the property and to remove all machinery, fixtures, and other structges plated on said premises, including the right 10 draw and remove all casing,
but the Lessee shall be under no obligation to do so.
10. Notwithstanding anything contained in this Lease to the contrary, it is expressly agreed thall the Lessee shall commence operationsasprovided
herein al any lime while Ihis Lease is in force, this Lease shall remain in force and its terms shall continue so long as such operations are prosecuted,
and it production results therefrom. Then as long as production is maintained.
11. II, alter the expiration of the primary term of this Lease. production on the leased premises should cease Iron any cause, this Lease shall not
terminate provided Lessee commences operations for additional drilling or reworking within sixty (60) days from such cessation, and Ihis Lease Shall
remain in face during the prosecution of such operations and if production results therefrom. then as long as production is maintained.
12. Lessee may at any time surrender Or cancel this Lease in whole or in pad by delivering or mailing such release to the Lessor. or by placing such
release of record in the proper County. In case this Lease is surrendered or cancelled as to only a portion of the acreage covered (hereby, then all
payments and liabilities thereafter accruing under the terms of this Lease as to the portion cancelled shall cease. As to the portion of the acreage not
released, the terms and provisions of this Lease shall continue and remain in lull force and effect for all purposes.
13. All provisions hereof. express or implied. shall be subject to all Federal end Slate Laws end Inc orders, rules and regulations of all governmental
agencies administering the same, and this Lease shall not in any way be terminated wholly or partially, nor shall the Lessee be liable in damages for
failure to comply with any of the express or implied provisions hereof Il such failure accords with any such laws. orders, rules or regulation$. Should the
Lessee be prevented during the last year of the primary term hereof Iron drilling a well hereunder by the order of any constituted authority having
Jurisdiction, or it Lessee shall be unable during said period to drill a well hereunder due to the equipment necessary in the drilling thereof not being
available for any cause. the primary term of this Lease shall continue until one year alter said order is suspended or said equipment is
a
allable.
1a. Lessor hereby warrants and agrees to del end thetilletothe land herein described and agrees that the Lessee. at its option, may payor discharge
in whole or in pars any taxes. encumbrances, or other liens existing, levied or assessed against the above-described lands, and in the event Lessee
exercises such option, it shall be subrogated to the rights of any holder or holders thereof and may reimburse itself by applying any royalty accruing
hereunder 10 the amount of any such encumbrance, lax or other lien paid by Lessee.
15. Lessee hereby is given the right 10 acquire lor its own benefit, deeds, leases, or asslgnmenis covering any Interest or claim in leased premises
which Lessee or any other party contends Is outstanding and not covered hereby and even though such outstanding interest or claim be Invalid or
adverse lo Lessor. In the event Inc validity of this Lease be disputed by Lessor or by any other person. then, for the period such dispute remains
undisposed ol: Lessee snail be relieved of all obligations hereunder to explore or develop teased premises; all 00yatties or other payments which would
otherwise accrue shall be suspended lor such period; and this Lease automatically shall be extended for an additional period equal to the duration ol
such period.
16. 11 is specifically understood Thal each wile and husband named herein and executing this Lease. lor the consideration above set out, and the
covenants and agreements contained in this Lease to be performed by the Lessee, does hereby release and relinquish unto said Lessee, all right of
dower, curlesy and homestead in and 10 the lands covered hereby for the purposes of this Lease.
17. This Lease and all its terms, conditions and stipulations shall extend la and be binding on all successors in lille ol said Lessor or Lessee.
IN WITNESS WHEREOF, this Lease is executed as of the date tirst set out hereinabove.
Social Security or Tax Identification Number: LESSOR:
ACKNOWLEDGMENTS
STATE OF__ .1. (Individual Acknowledgment)
COUNTY OF ss.
Before me a Notary Publ,c in and 10r
County, on Ihis day personally appeared
known In me to be me person(s) whose names) subscribed Co the IOregoing inslrumeni and acknowledged 10 me
Inal he_. executed the scone for t purposes and conslderallons :herein eepresse0, Including Ina relmemshmanl of
dower, curlesy and homestead.
Given under my hand and seal of ollice this day Of
My commission expires
Notary Public
STATE OF 1' (10,01 Acknowledgment)
COUNTY OF 1. s.
On this day ol 19 before coo the undersigned Notary Public m and for said
County and Slate. personally appeared and
his wile, known to me to be the persons whose
names are subscribed to the foregoing instrument and acknowledged that they executed the same as (heir tree and voluntary act and deed for he purposes and
consideralion therein mentioned and set lonh. including the relinquishment of dower. cunesy and homeslead. In witness whereof 1 have hereunto set my nand
and of hcial seal.
My commission expires
Notary Public
STATE OF
COUNTY OF
This Instrument was tiled for record on Inc day of 19 at o'clock M.. ano may recorded
in Book Page of the records of this oXice.
By
Clerk Or Deputy)