RES NO 05-02-1980 S z -tcWb
CITY OF VAN BUREN, ARKANSAS
RESOLUTION NO. oC'a� -1980
A RESOLUTION AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE OIL'AND
GAS LEASE FOR CITY OWNED PROPERTY IN SECTION 20, T -N -9, R -31 -W IN
CRAWFORD COUNTY, ARKANSAS. (Fire Station
WHEREAS, Energy Leasing:,Service of:Forf,Smith, Arkansas, has
proposed leasing 0.474 acres of c.ty t owned- :property,.
and
t* t
WHEREAS, Energy Leasing Service has'offeredtthe. City $'10.Q0 for
a five year paid up Oil and Gas Lease which contains a
3/16 royalty interest, and
WHEREAS, the City of Van Buren is willing to ac cept.the terms of
this proposal.
THEREFORE, BE IT RESOLVED, by the City, Council of the City of Van
Buren, Arkansas:
THAT, the Mayor is hereby authorized and directed to execute
the aforementioned Oil and Gas Lease.
•THAT, a copy of said Oil and Gas Lease, after' execution, will
be attached as part of this resolution:
PASSED AND APPROVED THIS 19th DAY OF May 19• 80
ill/
t»
MAYOR
'-'ATTEST:
-.....e c// .L L1
CI -Y CL RK- TREA'URER
OIL AND GAS LEASE
(Paid -up Lease No Delay Rentals)
THIS AGREEMENT, made and entered into this... ..day of May
19 80 by and between
City of Van Buren, Arkansas
of City Hall, Van Buren,Arkansas 72956 hereinafter caned lessor (whether one or mare), and
Robert D. Burr
of hereinafter called lessee:
WITNESSETH that lessor, for and in consideration of TEN OVC DOLLARS (y. 10.00
in hand paid, receipt of which is hereby acknowledged, and of the agreements of lessee herenafter set forth hereby grants. demises, leases and lets
e exclusively unto sold lessee the lands hereinafter described tor the purpose of prospecting, exploring by geophysical and other methods, drilling, mining,
OPe rating for c p ne lor
ucngl or is with or bath including, but not Os a limitation; cosingheod gas, cosingheod gasol ne, OOs- COr¢lensare (distillate) and
onC s ubs, tce, produced in a gaseous stale, together the night to construct and maintain pipe lines, telephone and e$ec-
powers. n Ponds, roadways, plants, equipment, and structures thereon to produce, save end take core nl said oil and gas, and t he e•clusive
right to inwc t air, gas, water brine and other fluids from any source into the subsurface suora and any and oil other rights aria pnvdeges neceSsary, in-
Oacnt 10, or ICOnvement for t h e economical operation of said Tana. alone or conjointly with neighboring land, for the production, saving and taking care of
oil and gas and the injection of. op, cos, water, bone, and other fluids Into Inc svbsurloce strata, said lands being situated in the Count y o
Crawford star, ar Arkansas
and being described as follows, to -wit:
SEE EXHIBIT "A" ATTACHED
THERE ARE TO BE NO SURFACE OPERATIONS 'OF ANY,KIND
CONDUCTED- THE. HEREIN DESCRIBED LAND WITHOUT THE
EXPRESS WRITTEN CONSENT OF THE LESSOR.
p
of t$ect un 2Q Township 9 North'. Ranee 31 ,West it being the Purpose ond intent of lessor
to lease ond_leuor does. he eby- lease, all of the lands or interests n 'lands owned by lessor which adjoin the lands above described cr which lie m the sec I
torn on-sections -hery n specified For all purposes 0 this lease, said' lands shall be' deemed to contain 47� l
acres.
Subled t i the aloe provisio s�herein•c ned,- loose shail in for for a t of fSV ''(5)
primp t rrn"l' and os long thereaf! r os oil and gas, or either of them, produced from is years f• from this dole (h a nt called ly
oros0<utedb otrheu hof,sr,yrocldea.. "Drilling o0emtions .tndutles c p lend or drilling operations are continuously
0 s fsl.the.dnllirig above of a well, ell, t the reworking, deepening or plugging back of I
a well or ha .r'.i
ooth jpemtitns 0!. more to an effort to.ob leis or ;.ro re- estoestonlish production of oil or gas; and drilling operations snail be considered to
be j' cc tpyowsly Boson fedy`:f mot more than 60 days ,sholt.elapse •between'_the.cTn or abandonment of one well or hole and the commencement
Iing opetotions on f
anoih<welor hale. If, of the expiration of the primary term erm of of this ,ease, oil .or gas is not being produced from the above
descr ed.la d -nut le see then engaged In drilling oD illing s, this lease shall continue in force so long as drilling operations are continuously pros;
end it production of of Or_gyt results from any such grilling Operations, this !ease hall continue in. force so long os oil or gas shall Oe produced. It, otter 1
r
the expuafion'oh the primary term of this lease; production:from the above describuc lane should cease, this lease shall nor terminate if lessee is men
Prasocu Yung drilling operations, or within 60 days otter each such cessation of prcauction commences drilling operations, and this loose shall remain in force
c long s such operations a continuously prosecuted, and it production rnsa,ts therefrom, then as long thereafter as oil or gas
k produced from the
ocve described land.
In corisideraliop crthe_ premises, lessee covenants and agrees:
lst. To:deliveL- Lrog oC`cci? to lesser at the wells, or to the credit of lessor in the pipeline to which the wells may be connected, the equal 3/16
o t -:'t :011 Oil end other- hydrocarbons produced and saved from the leased premises, or, at lessee's option, to pay to lessor for such
'J C: •ro,'blty the market twice at the well for 'such oil and other liquid hyCmcprbons of like grade ono gravity preycibng on the day such oil and
other lyduid" hyd��roo orbans or, rur< from the loose.
•1ntl` Tr pay leymu ..3/`I€ k of the proceeds received' by lessee of the well for all gas' (including all substances contained such gas) produced
c •tom Jhtt n.n, prernjp. ono sold by es oo; if erns yas is used by lessee off th le ased in
codl c other SS 3 b premises sel o used by lessee for the rnan�lactu re of casinghead
Fc acts to.p`v p lessor of the prevailing market price at the well for the gas so used.
=TThe 1 consider paid to Yesior for this lease includes consideration in lieu of. delay rental' provisions and the rights and obligations of the parties
n.reu de shall,pe -the some.or it loose contained provisions for the payment of 'Der odic delay rentals Throughout the primary term hereof and each
5-.i la M;eetal had -been timely' paid and accepted by. lessor.
;7711- i payin
well Wapabla 'of gas Or got .ond '005- condenstate in Paying Quantities located on the leased premises for on ((creep. pooled or c sali-
dated h all portion of the °see premises into a unit for tne.drilbng or operation of such well) is at any lime Shut In and no an
.therefrom..s scld'or esed.ott the prernnec or for the manufacture of 'gasoline or other gas deemed o be cn sate
on tne.leased'uremises producing gas In g i Pfa is, rin oIl less such afro r T well sho se well to be c well
wherner' before cr after the ex 9 quantities and' will all u r in farce d dning oe to m e rime or times while such well is ,e shut of
of bein expiration well the primary under o n obligation Lesseo atoll cr e ta such -le duct, u de mnr t un r ns aria gm-coNn a ich in
tl pr o men. Item edch shut -In wall put shall u< under. n eeshall to' market such ar y or is de t ter 'thin 45 o circumstances o ,er which, in
lessee's .judgment o exercised i length lann ugl ere d dur Losho shall be phut area to pay or tender to lessor within ut <5 days after the e acre or
per and h o,lease.o I l math (henual hold period) rights re, at t h e e if is ch' 'shut in, ri royalty an she lessee ea nt a to Su ch per Oct; for Inc me acreage
Covered by rho, the-full -f and en leasehold rights are, such end of such annual period, owned by the le (cue making such oyalry-c provided Ina r, it
lessor awns es ss•rhan oIry and be 0 the interest sue roy aleagn, lest y
in such o eoQ b< such pert (calculated further on a royal. 9 03 -0 ba;lsl or said
s such wt as Iesso. or y interest o aforesaid before the full and 'entire such ro vanes- tares+ in such a t o n; and n suc tl nnual period, if Bas m acs bei m ate from
inch well n.so or m <d as ofh d before the end of any such anns o i he be o t ig a te d of pay 01 tender, l re rio this lease c Dump maintained
in toi coo effect pa Phan" be dee of: such
o.olty shut-in well, lessee shall net be p --Soma o fray pr be fdr rho; pmts calm r sual period, said
Burr. cf money,. Such payment sha!I' deameo a roy'alfy under all'. previsions of Jnis'i *ase. Such •DOVm*nf may ne rndtle or tendered to lessor or to !esso.':
credit in the
Bonk of
which bank and its successors shall continue as the depository regardless of changes in,lhe ownership of soid land or the right to receive royalty hereunder
Royalty ownership as of the lost Coy of each such an dal. period us- shown. by lessee's- records shall govern the determination of the parry or parties e n
titled to receive such pcyment.-
If lessor owns a less interest :in the land covered by this :lease tfspn the entire and undivided' fee simple mineral estate therein, then whether or not
ch less interest it referred to or described harem all royalf es hereln pro ded shail'Do paid lessor only in the proportion (calculated an 0 royalty -acre we is) which the :royalty_interesr owned by_him In sad lond ro the ul ono untie royalty' mterest,in. soid land
If the estate of either party hereto is assigned OF sablef and the pri of assigning 0 sublettin0'in' whole or in part is expressly allowed, the ex-
Press and implied covenants hereof shall extend :to the sub ease•, 'successors ond- a1s:pnf of the "part es, ond in the event of an assignment or subletting
by lessee, lesue be relieved d d'dlscharged as ta' the lleasehobd rIghrs so assigned or suoletm from any liability to lessor thereof ter accruing upon any
o the covenants or Conditions of the lease; either •xpres5'i or Imp eel /i-r N6 cttongol inl the ownership of the' land or royalties, however accomplished,. sholl
operate to enlarge the obligations or diminish. the rights al•lessee require separate' meeluringl Or installation of separate tanks by lessee. Notwithstanding
any actual or constructive knowledge of or 'notice to`,lessee; :.no changban "ihe.awnership'ot aid ilond.or'of`the right to receive royalties hereunder, or of
any interest therein, whether by 4eoson of• death, c0nvey0nCs-a any -other molter, shall; be binding' on lessee (except of lessee's option in any particular
case) until 90 days' otter lessee hos ;been-. furnishiecr.written ffoliC. thtroo' ond 511. supportinc lntormatlan. herein referred to, by the party claiming as
a result of such change in' ownership or interest.. Such notice shall be` supported by original or Certified copies of all documents and other Instruments or
proceedings necessary in lessee's opinion to esfabltsh the;. ownership of tithe cla'rning,par ty
Lessee may, at any time, execute and •delive tta iesioe pace o/ •record o release covering, all or any port of the °creep* embraced in the leased
premises or covering any ant or more zones, tarmOHOne or depths underlying tall or any part Of such acreage, and thereupon shall be relieved of all obli-
gations therootter 10 accrue with respect to the acreage, zones/formations or depths covered by such release.
Lessee is granted the right,' from time to time while. this lease is in force,'fo 'pool into a separate operating unit or units all or. any port of the land
covered by this lease with other lona, lease or leases, Or interests therein (whether such other nterests are pooled by a voluntary agreement on the poet
of the owners thereof Or by the exorcise of o 'tight t°'coot by the lessees'thereof)/ when in le'sel'', juaament if is necessary 01 advisable in order to pro-
mote conservation, to properly develop or operate the tand'rond !nfore'.ti't0 be' pooled; or to °bra :n 0 multiple prOduchon aliowable from any Oowrnmemal
agency o
having control over such matters. Any pooling' hereunder may `cover oil ro11 'and gas, 0r any ono or more of the substances covered by tnis lease,
and y cover one or or all zones or formations underlying all er any portion 'or portions of the leased eremites. Any unit loaned by such pooling
sholl be of abutting Or cornering Unds and shall nor exceed 640 acres (plus -0'W/trance of 10%) for pas or pea- conaansate and shrill not exceed 80 acres
(plus a Inletonce of .10%) for any other substance covered ay Chit loose; provided that .if any governmental rapulal ion or order shall prescribe a spacing
pattern for the development of a field wherein. the above described. land, Onn. portion thereof, is lo<aroa, or allocota a Producing oltawoble based on acreage
Pot well, then any such unit may embrace as much. adairional. acreoge•as may be so,presenbed or 0s may be permitted in such education of al;owabla The
onto pooled and the zones or formations and substances.pooled shall- be :set'forth-by .lessee Inc declaration of pooling tiled for record in the county or
counties in which the pooled areawis located. Such 'pooling shall, be. etf,ctivo'on.the'dote such.declarotien -is filed unless a later effective dare is specified
in such dectarafion. In lieu of 4151 royalties. elsewhere heron specified, except.{ lion• jn' ,OasOvellrravaltl•L +N•sor,shall receive on production from an area
L) guided =only such portion cf the royalties which/in tne9absence of such p0 ll n9,' would be Peyublu hereu to 'It so, on p:oductiun from the Intl
((were(' by mu lease which is placed in the pooled,areti'ds'thelarnoon_Y tt O the'. surtoceiocreog•.in' the land Covered by this leave which is placed In the
ded ores bears to the amount ot• the surface acreoge'`of theeenbre poolsrf area_:'. Nothing herein contained shod authorize or ettect any transfer of any
to any leasehold royalty or other' interest pooled pursuontchereto:. The ccmmencorrentof- o.weli, the conduct of.otner drilling operations, the cam
oiemon ot.o well or of a dry hole, or the operation of a.produarg -well on tae' pooled.orea; shall be considered icr all purpa eS (except for rOVOItY pw-
pv%es) the some as if said well were located on, or'such `drilling operations were conducted. uoon,.the,lancIt ire -erne by tills lease whether or not corn well
n .scaled op,n, or such •Ming operations ore conducted upon,, said Hoods.. Lessee may rermlntee one Pooling •f fooled r su rer her era ut o:ey time
a•. Coated um s nn r i net °rocun j Lind n drprr:•a operations. are being conducted thereo by. executing and f ding of record in nq county ,nl
n.ch the pooled cree n located a writhe, nnclorarian of The termmawn pt sxch Pooling], Provided that the pooling of oil Interests not covered by Ines leas*
+nich Comprise 0 Dort of such pooled u be alto terminoted,in Wm, of feclive. manner.
Lima* shell hove !he right to use free O! cost odj'gOS'and w predated on said land for its operations' 'I he a c wilier fr.,m wells of
Lessee shall hove the right at o y tore to remove LW -machtnety and i xryr es placed on said pitta se me ,Rrwg the r ght •t draw and re a n.
Ho port of the surface of the le sod premises hot!, wi:h!u written consent lessee be granted or Itcensed by lessor 1 y other volt
.cation, Construction or maintenance of structures, to th
ks; pits reser. firs,' equipment,- or machinery -to be used for the purpose of exploring, developing
or operoling adjacent :ands tor oil, gas or other minerals.
Lessee shah bury below plow depth its pipe 1 Lies i on the lensed premisei when regaestod by •'lain& owning an Interest In the iurlace. No well shad
he drilled nearer thon 200 teat to any home or barn now on said premises without the written consent of the owner at the surtoce on which such house
0, barn Is .prated. Lessee shod poy for domoges to:praw sg.crops' caused.by its oaerations on said.: lands.._,
Lesser hereby warrants and agrees w detend the title to.the Oands herein described,. bur rf.. the interest -0f lessor covered by this lease is expreaiy
stored to be as than the entire fee or mineral estate, letters warranty shall -be limped to the:interest so stated. Lessee ma.. purchase or lease the rights
of ony Party claimny ony merest in said land and exercise such nghts'a.'may be able:ned thereby but lessee Sh011 'er env torte ru re non ineur
ony liability to lessor by reason thereof. Lessee shat.. hbve:the rlaht-ot any t Lie to iris tot lewur, a mortoage taxers met W n n n sod lands n the
ant of default of payment by lessor, and be subrogoted to the 'rights of". the: holder, thereof, and. n y:such payments made by lessee tor lessor may Pc
deducted tram any amounts of money whin may became.duc x jesscr under •this lose.
Al. express pia u se .s and dmplred covenanta of th a lease Shalt De"u .f.c to all apul cable lu p6 1rr n •ders rul and regular ens This
re shah nut be term n h le L loe i poet, nor 1 .s. h iJ U e bec
domoye;, a of a temporary cessation of production n a dr a ny opera: ions
to breakdown o sou omens or du m the 000 rr�q oho well Or. well:, hr bec ousa' f fo Iwo'to Comply with any of the u•u'en pray s alas or npl ed
coy enonts of this lease it :uch failure Is the result of, try 'exercise ot'gov emmentaI authority,' w.r, armed hostilities, lack of market too of God strike,
n
civil d sturbace, fire, explosion, flood or any other Cou1e :reasonably 0 n and the contr.,
0l IesscW'
This tense and oil per vii ens "hereof snail be oppl fo.'and binding upon ine •ies' thi r resOacttve successors and ossiana Reference here
t 1, lesser and lessee shut. incit.ide reference to that respeeevo Successors and.assigns .Should any one Or more of Inc par es nomed above as lesson
r execute Ihrs loose, it shall nevertheless be binding 'upOn the ",party ar porbes'executing, the. some.;,'.
Fach wife above named hereby ions in the execution and' delivery of this "leoso for the Durposn of conveying, releasing and ref nau sty nr,
he Me paroat.es one cons deral on aforesaid, all of her :right, title, interest and estate to sold land, including any rights of dowser and homestead which
she moy hove therein.
•WI1NESS WHEREOF, This lease Is executed s of the day and year fist above written.
i.
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(FED. ID. Y
TE OE At:i.{A AS
INTY OF.,.CRAWFC't•E.`L� ss
On this•' 0?0 day of in the year 1980, 'before me,_Ci ,r-,2
M a Notary Pu}�tic =:in -an 'for .sa county a d stare, sonally pear ed �F e�f
and /fir ic. a E be h
ern to v nor, gravy =d to me on th oath ,of to be
d� and of the City of
Buren; c
rn ies and known to me to -5e the persons who executed the within
trumern o::. k7Onr if _of the 'City' of Van Buren, Arkansas, and acknowledyud
me thdf of Van Buren, Arkansas, executed the same.
Commission E xpires: Notary Public.
liwl _executed the some as free gad voluntary act and deed for the purposes dad consideration 'herein Ines
ionced,cnd set forth.". IN WITNESS WHEREOF I. hove hereunto set my hand and officio! seal.
My commission expires:
Notary Public
STATE OF
COUNTY OF ,SS (lndi viduoi— Arkansas)
On this day of 19 before me the undersigned Notary Public in and for
said County and State, personally appeared
and is
d
his wife, known to me to be the person whose Home subscribed to the foregoing instrument and acknowledged s
that executed the some as free and voluntary oct and deed for the purposes and consideration therein rnen-
i
ed and set, forth '.IN,WITNESS WHEREOF I hove hereunto set my hand and official seal,
ilp
commission exp yes:
-z.. ills{
Notary Public "Sig
STATE OF. Ti:
COUNTY OF 1 SS" (Certificate of Recording) r'n
This instrument was filed for record on the day of 19 at o'clock .M c'.
and recorded in Book al Page of the records of this office.
i.
By
Clerk of the Circuit Court and Ea Officio Recorder Deputy
APTY(e?R.+12F2DING RETURN TO:.
This'- In s t rument Prepared by: Energy Leasing Serv
m ce, P. 0. Box 3925,
Fort Smith;• "Arkansas 72913
EXHIBIT "A"
Section 20, Township 9 North, Range 31 West
A part of the SW 1/4 of said Section, more particularly described
as follows: Commencing at a point where the North right of
way line of Bryant Road intersects the West line of Section 20;
thence along said North right of way line South 87 55' East
271.72 ft. to the point of beginning; thence continuing South
87 55' East along said right of way line 75.0 ft.; thence
North 1 57' East 140.0 ft.; thence North 870 55' West 75.0
ft.; thence South 1 57' West 140.0 ft. to the place of
beginning.
All that part of the following described land lying within
Section 20, Township 9 North, Range 31 West:
Part of the MW 1/4 of the SW 1/4 of Section 20 and part of the
NE 1/4 of the SE 1/4 of Section 19, Township 9 North, Range 31
West, more particularly described as follows: Beginning at
the point of intersection of the centerline of North 28th
Street with the North line of Bryan Road, said point beina on
the West line of said Section 20 and running thence along the
said line of Bryan Road North 87 33' West 25 ft. to a point on
the West line of North 28th Street; thence along the same
North 1 57' East 387.30 ft. to a point on the Southeasterly
line of 3. S. Highway 64/71; thence along the same North 52° 37'
East 64.64 ft. to a point on the East line of North 28th Street;
thence along the same South 1 57' West 428.39 ft. to a point
on the North line of Bryan Road; thence North 87 S5' West 2
L
ft. to the point of beginning, beina a 50 ft. Wide strip of land
between the North line of Bryan Road and the Southeasterly line
of U. S. _1c.;?.',day 64/71 (North 28th Street) according to
survey by Rogers and Associates dated October 14, 1977.
S_IG.D FOP IDEN:CIFI.CATIuN:
0