2005-126
2005-126
FILE REFERENCE FORM
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
Amended by Ordinance No. 2006-173 06/20/06 )R
, S:\OUR DOCLlMENTS\Ordinances\05L~irport Ordinance Dan A Hughes.doc
ORDINANCE NO.
AN ORDINANCE CLARIFYING, AMENDING AND RATIFYING THE OIL, GAS AND
MINERAL LEASE AT THE CITY OF DENTON AIRPORT DATED JANUARY 17, 2002; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Dan A. Hughes Company, "Lessee", of Oil, Gas and Mineral Lease of the City
of Denton Airport, dated January 17, 2002, "Lease", and the City of Denton desire to clarify, amend
and ratify the Lease to provide for the full development of the lease and to create in advance the gas
units in anticipation of completion; and
WHEREAS, Lessee and the City of Denton also desire to clarify, amend and ratify the lease
to provide for the unavailability of horizontal drilling rigs and the unusual amount of rainfall; and
WHEREAS, the City desires to authorize the City Manager to execute the Lease to clarify,
amend and ratify the lease with Dan A. Hughes Company at the City of Denton Airport to provide
for the above mentioned terms. NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. Incorporation of Preamble. The above and foregoing preamble is incorporated
into the body of this Ordinance as if copied herein in its entirety.
SECTION 2. The City Manager or his designee is hereby authorized to execute a lease in
substantially same form as attached Exhibit A, clarifying, amending and ratifying the Oil, Gas and
Mineral Lease at the City of Denton Airport dated January 1, 2002.
SECTION 3. If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by
a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions
of this Ordinance, and the City Council hereby declares it would have passed such remaining
portions of this Ordinance despite such invalidity, which remaining portions shall remain in full
force and effect.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~_~5~day of ~°~/~d~ ,2005.
EULINEBROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
EDWIN~IN/~ CITY ATTORNEY
BY: "~ /
~ /
2
MODIFICATION, CLARIFICATION & RATIFICATION
OF OIL, GAS & MINERAL LEASE
City of Denton Airport
STATE OF TEXAS
§
§
§
KNOW ALL MEN BY THESE PRESENTS THAT:
COUNTY OF DENTON
WHEREAS:
(a) By Oil, Gas and Mineral Lease dated January 17, 2002, a Memorandum of which is recorded in
Volume 5010 at page 858 of the Official Public Records of Denton County, Texas, The City of
Denton leased to Enexco, Inc. the 554.14 acres of lands therein described ("Lands") on the terms
and conditions therein set forth ("Lease");
(b) Dan A. Hughes Company has succeeded to all of the rights of Enexco, Inc. in and to the Lease
and has drilled and completed as a horizontal well capable of producing gas in paying quantities
the City of Denton - Airport #2-H Well ("#2 Well") on the Leased Premises;
(c) The Lease does not specifically define "Oil Units or Gas Units" in the context of horizontal
wells; and
(d) The parties desire hereby to modify the Lease to provide for the development of the Leased
Premises by the drilling of horizontal wells, to confirm the validity and existence of the lease as
to all of such Lands; and to effect the other modifications of the Lease as hereinafter set forth:
NOW THEREFORE, for the sum of ten dollars ($10.00) dollars and other good and valuable
consideration paid to each of the undersigned the receipt and sufficiency of which are hereby
acknowledged and the mutual covenants and benefits arising hereunder, the City of Denton acting herein
by and through its City Manager, Michael A. Conduff, duly authorized by resolution to execute this
Modification, Clarification and Ratification of Oil and Gas Lease, whose address is 215 East McKinney,
Denton, Texas 76201 ("Lessor"), and Dan A. Hughes Company, a sole proprietorship whose address is
208 East Houston Street, Beeville, Texas 78102 ("Lessee") have agreed to Modify, Clarify and RatifY and
by these presents do hereby Modify, Clarify and Ratify the Lease in the manner hereinafter set forth.
1. Lessor and Lessee agree that the Lease is ambiguous with respect to whether the #2 Well maintained
the Lease as to all of the Lands or only the north 512 acres of the Lands. In consideration of the
modification of the continuous development provisions of the Lease, the marketing covenants,
increase in the royalty interests of Lessor and other covenants and benefits deriving hereunder, Lessor
and Lessee have agreed to resolve such ambiguity by construing the provisions of the Lease so that
the #2 Well shall have maintained and shall maintain the Lease in full force and effect as to all of the
Lands for a period ending at midnight on July 1,2005. Thereafter, such well shall maintain the Lease
only as to the Gas Unit established therefore as hereinafter set forth.
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
" Ille I~ands shall be divided into tbc four (4) tracts described and designated as Tracts 1-4 on tbe
scbedule attached hereto as Exhibit A.
3,
II' on or beli1re thc date sct I,xth in Section I, Lessee comillences the actual drilling of "'lOther
hmizoillal well on the Lands. then the Lease shall continue in force and elfect as to all of thc Lands so
long as not more than one hundred cighty (180) days elapse between the date the drilling rig used to
drill a well on the Lands is released and the date the actual drilling operations commence I{¡r a
sllbscquent well on the Lands with a drilling rig capable of drilling such well to its permitted depth,
4,
Upon the expiration of the continuous development of the Lands in accordance with thc provisions of
Section 3 above, this Lease shall terminate as to all Lands not then located in an Oil Unit or Gas Unit
(liS set I{¡rth in the Lease and modilied herein "r horizontal wells) upon which there is located a well
pl'Odueing or capable of producing oil and/or gas in paying quantities and, as to cach such unit. this
Icellse shall terminate as to all depths below a depth of one hundred feet (100') beneath the deepest
borizon then producing or capable of producing in the well 1,,1' which such unit was esmblished,
5. With respect to a horizontal well drilled on any of Tracts 1-4, the tract upon which such well is
located shall be considered as the "Oil Unit" or "Gas Unit" J()J' such well and it shall not be necessary
1,,1' the Lessee to designate such units as set fÒ,1h in Section 13 of the Lease.
~, Tract 2 shall be the Gas Unit 1,,1' the #2 Well.
7.
With respect to any Lands as to which the Lease terminates or is released, Lessee shall never the less
rctain all of the rights granted in the Lease with respect to the use of such lands I{¡r the ingress and
egress to the Lands as to which the Lease has not terminated or been released. including rights
pertaining to roads and pipelines,
8,
With respect to any well completed upon the Lands as a well capable of producing oil and/or gas in
paying quantities, Lessee covenants to use its best, diligent ef ()J1s to commence the sale ofproduction
h'(Jm such well as promptly as is practicable. It is undcrstood that wells drilled on Tracts 3 alld 4 will
rcqnire more extensive pipeline construction to commence such sales.
I),
With respect to that pm't of Tract 4 known as the "South Runway I:xtension" (being all of that part of
I'ract 4 lying south of the south line of thc William Smith Survey, A-118S and containing
approximately 40 acres), Lessee shall attempt to secure actual production Ii'om such lands by
soliciting the owners of oil aod gas leases covering adjoining lands to I"rm a pooled unit and drill a
horizontal well. Lessor shall cooperate in such clt"rts. particularly with respect to granting the rights
to pool such lands with adjoining lands. The I"ilure to secure the development shall not affect the
validitv of the Lease as to Tract 4, Lessee shall not be required to solicit such development if the
'aille would reduce the allowable for any well drilled on Tract 4 below the amount of production
wh ich can be actually produced from such well.
III. With respect to Tmcts I. 3 and 4, the one-lifth (115) royalty fraction provided in the Lease shall bc
illcreased and challged to olle-fourth (1/4) in all installces where such li'action appears in the Lease.
With respect to Tract 2. the one-lil"th (115) royalty fraction shall remainunchallged.
II. II' allY term or provision of this Modilication conlliets with the provisions of the Lease. the terms and
provisions of this Modification shall prevail and control.
~.todiliCil1l1J!l. Cl<lIdicalioli alld Raldical!oll
1'luglJCs 10 Cil\,o!Ï)eIllOIi
I'age 2 oJ'7
A!rporl I"",sc
Deliioll COIIIll\', Te,as
F'or and in consideration recited herein, Lessor hereby ratilies, adopts and conlirms the Lease
liS the slime as moditied and eillri1led herein and does hereby grllllt, lease and let unto Lessee the Llinds.
"Ihject to lInd in lIccordlince with the terms and provisions of the Lease, as modified lInd eilirilied in this
agreement.
IN WITNESS WHEREOF this instrument has been executed by each of the undersigned on the
"lite such execution is acknowledged. but the same shlill be elïcctive IÙr lIli purposes liS of Janullry 16.
2005,
LESSOR
CITY OF DENTON
c»¡~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B, ~m r - L,kr:fu< V
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
Uv/:21¡II/~ ç-GI1~
. , (/
LESSEE
DAN A, HUGHES COMPANY
~
,t"ddíeali,,", Clantíealion and Ralilíealinn
1'llIgh" I" Cilv OrOel1lnn
I'age 3 or 7
1\lrpOrl Lease
rknl"n Clllll1ly, r"lIs
SIAJ'[ OF TEXAS
COUNTY OF DENTON
gD Tljjs instrum1:iJ'i));'!Jicknowledgcd beiÒre me on this Ie .f:day of //7Q/'? , 2005, by 1V~1;1
, C-<~..ft: as the City !V(anager 01' the City of Denton, a municipality established under the laws of
Tc"as, on behalf of said city.
ivtv cl\lnmission ex ,ires:
'r,~C);"';'" LINDA HOLLEY
~i /"'! f,. Notary Public
~ :,: State of Texas
~ "::", My Comm, Exp, 12.08,2005
STA'I'C ,
COUNTY OF BEE
T,his instrument was a,Cknowledged bei"re me on this ~1.Jday of vit. .. , 2005, by Dan ^-
Hughes, owner of Dan A. Hughes Cnmpanv, a solie l' Jrietorship. .L.LfQ
. '\ ,
of Texas
My
KATHERINE A, YOUNG
NOTARY PUBLIC
STATE OF TExAS
My Commission Expires 11,18-2008
"todil"C'"'O'L Clarilícalioo and t(,"ilícatioo
Il1Igh" 10 Cily or Del1lol1
Page 4 01'7
¡\,rporl Lease
Delli 011 COllllty. Tc,\as
EXHIBIT A
TRACT 1: Contain;n!! 138.54 acres, more or less:
Commencing at the North West corner of the W. Smith Survey, ^-1188 and continuing in an
easterly direction 1100 leet along the north line to a point.
Thencc in a southerly direction 510 leet ti'01ll the north line of the w, Smith Survey, ^-1188. Said poim
being the Poim of Beginning.
I'hcllcc ill an easterly dircction to a point in the W. Neil Survey, A-'!70, being 430 ICet l'rom the north line
all(l 245 feet fì'om the wcst line ofthc W. Neil Survey, A-970.
Thence ill a southeasterly direction to a point in the W, Neil Survey, ^-970, being 123 I teet east of the
western line of the W. Neil Survey. A-970 and 1535 teet south of the northern survey line ol'the
W, Neil Survey, A-970, Said line being a common boundary line between tract I alld tract 2.
IÎlcllee in an easterly direction to a point 1847 leet cast from the western line of the W, Neil Survey.
;\-970 and 1520 tCet south ol'the northern survey line of the W, Neil Survcy, A-970, Said point
heing the most southeasterly point of tract 2.
Thcnee south to a point I 131 feet lIorth 01' the northwest corner of the .I, Bacon Survey, A-1540 located
on the east line of the W, Neil Survey, A-970,
Thence west to a point in the W. Neil Survey, A-970, being 206 feet south of the so 11th survey line of the
W, Smith Survey. A-1188 and 1987 ket west of the slirvey boundary between the W, Neil
Survey, A-970 and the.l. Hardill Sruvey, A-1656,
Thellce in a northwesterly direction to a poillt in the W. Smith Survey, A-1188, being the Point of
Beginning.
TRACT 2: Contain;n!! 138.54 acres, more () ' less:
Conl1l1encing at the NE corner of the W, Smith Survey, A-1188 and cominlling in an easterly direetioll
1216 lCet along the north line of the W. Neil Survey, A-970 being the Point of Beginning.
Thencc ill an easterly direction 326 leet to a point on the North line of the W, Neil Survey, ^-970.
Thcnce in a southerly direction to a point in the W, Neil Slirvey, A-970, being 1541 lCet east ti'om the
western line 01' the W, Neil Survey, ^-970 and 697 teet south of the northern survey line of thc
IV, Neil Survey, A-970.
Thellce ill a easterly direction to a point in the W. Neil Survey, A-970, being 1879 ICet cast from the
western survey line of the W, Neil Survey, ^-970 and 677 teet south of the northern survey line
01' the IV. Neil Survey. A-970,
Thellee in a southerly directioll to a point in the W. Neil Survey. A-970. being 1889 lCet east li'om the
wcsternline of the W, Neil Survey, A-970 and 1503 teet south of the northern survey line ol'the
IV, Neil Survey. A-'!70,
Thence ill a westerly direction to a point in the W. Neil Survey. A-970, being 1234 ICet cast frolll the
western line 01' the W. Neil Survey. A-970 and 1541 leet south of the nolthern slIrvcy line of the
W. Neil Survey. A-970,
"todilïe¡rliolJ, ClarilïcalrOIJ and [(milicatJoo
Ilo,ul1es 10 CilvorUcoloo
['dgc 5 or?
Airpor! I.cdse
DelJlolJ COlllJlv. 'Ie,s:1S
Thence in a northwesterly direction to a point in the W. Wilburn A-1419 survey, being 697 feet west from
the eastern line of the W. Wilburn A-1419 survey and 872 feet north of the southern survey line
of the W, Wilburn A-1419 survey,
Thence in a northerly direction to a point in the W, Wilburn A-1419 survey, being 739 feet west from the
eastern line of the W. Wilburn A-1419 survey and 2473 feet n0l1h of the southern survey line of
IheW,WilburnA-1419survey,
Thence in an easterly direction to a point on the east linc of the W, Wilburn A-1419 survey, being 2498
leet north ofthc southwest corner of the W. Wilburn A-1419 survey,
Thence in an southerly direction to a point on the east linc of the W. Wilburn A-1419 survey, being 2289
leet north ofthc southwest corner of the W. Wilburn A-1419 survey,
Thence in a easterly direction to a point in the T. Toby A-1285 survey, being 805 feet east I¡'om the
western line of the '1', Toby A-I285 survey and 291 feet south of the n0l1hern survey line of the 'I'
Toby A-1285 survey,
Thence in a southeasterly direction to a point in the '1', Toby A-1285 survey, being I 3S I leet east from the
lI'estern line of the '1', Toby A-I285 survey and 1666 feet south of the northern survey line of the
'1', Toby A-1285 survey,
Thence in a southerly direction to the Point of Beginning located on the northern line of the W, Neil
Survey, A-970.
TRACT 3: Cuntainin!! 138.54 acres, more or less:
Colllmencing at the Southeast corner of the D. Davis, A-356 and continuing in a northerly direction
807 feet along thc east survey line to a point. Said point being the Point of Beginning,
Thence in a northerly direction to a point in the W, Wilburn A-1419 survey, being 286 feet cast li'om the
lI'estern line of the W, Wilburn A-1419 survey and 1019 feet north of the northeast corner of the
survey line of the D. Davis, A-356 survey.
Thence in an easterly direction to a point in the W, Wilburn A-t419 survey, being 739 feet west /í'om the
eastern line of the W. Wilburn A-1419 survey and 2473 feet north of the southern survey line of
the W, Wilburn A-1419 survey. Said point being the northeast corner of tract 2,
Thencc in a southerly direction to a point in the W, Wilburn A-1419 survey, being 697 teet lI'est from the
eastern line of theW, Wilburn A-1419 survey and 872 feet north of the southern survey line of
Ihc W, Wilburn A-1419 survey,
Thence in a southeasterly direction to a point in the W, Neil Survey, A-970, being 253 leet cast tì'om the
lI'est line and 427 leet south from the north line of the W. Neil Survey, A-970,
Thence in a westerly direction to a point on the west line of the W, Smith A-1188, being the Point of
Beginning,
TRACT 4: Contain;n!! 138.54 acres, mul'e or less:
Tract 4 shall contain the remaining acreage not previously described in tracts 1,2, or 3, and lying within
the boundaries of the 554,14 acre tract described in the lease.
TRACTS 1-4 ARE DEPICTED ON THE PLAT ATTACHED HERETO AS EXHIBIT A-I.
"'Ioddiemi"n. Clarilieati"n and Raldieati"n
IllIgl1CS 10 CiIV "rDelll"n
Pagel",r?
Airp"rl Lea"
I"nlon COLlllly. '['"as
EXHIBIT A-I
S co.
" I
0
I B U P
,,' "
rr," y
,¡ S,
3
D A V'S
, . Jr, 6
0
'" DOE"
A. ß 51
1/
I
I
0
H',
,
R E E
.,
1
I_,
,,-,-,-.1
D"n P, Hugl1as Company
Developmem riel
u
~~
w"
HA"'"R"
A",
C'""" C"",,', ,""
",todd;ellIHHI. Cb,i!;calion IInd I(IIIi!;colion
lIug]¡e'loCilvoi'Do!l1on
Pllge 7 01'7
6 ,
A. , ,
rl A ROil'
^ '" ,;
I 0
~"
.,-
Alrporl Lell,e
Deilioo Coonly, '[e,,",
City of Denton
City Attorney's Office
215 E. McKinney
Denton TX 76201
MEMORANDUM OF
MODIFICATION, CLARIFICATION & RATIFICATION
OF OIL, GAS & MINERAL LEASE
City of Denton Airport
STATE OF TEXAS ,
,
S
s
COUNTY OF DENTON ~
KNOW ALL MEN BY THESE PRESENTS THAT:
I.lya Modification, Clarification & Ratitication of Oil, Gas & Mineral Lease of even date
herewith, the City of Denton whose address is 25 East McKinney, Denton, Texas 7620 I and Dan
A. Hughes Company, a sole proprietorship whose address is 20X East Houston Street, Beeville,
Texas 7X I 02 have moditied and clarified the terms and provisions of the Oil, Gas and Mineral
Lease dated January 17,2002, a Memorandum ofwhieh is rccorded in Volume 5010 at page X5X
of the Official Public Records of Denton County, Texas, ti'om the City of Denton to Enexco,
Inc., covering the 554. I 4 acres of lands therein described.
IN WITNESS WHEREOF this instrument has been executed by each of the undersigned
on the elate such execution is acknowledged.
L1~SSOR
CITY OF DENTON
I3v:
M
(il'fL
ATTEST:
.lENNIFER WALTERS. CITY SECRETARY
"'~/fl';t JJafftUd
APPROV.:D AS TO LEGAL FORM:
HERBERT L. PROUTY. CITY ATTORNEY
130' ,;()tJNH; cQ(/~
\ .
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
MA Y Ri::MOVE OR STRIKE ANY OF THE FOLLOW1NG INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
LESSEE
DAN A. HUGHES COMPANY
STATE or TEXAS
COUNTY OF DENTON
~
This instrul!Jf.1ll was acknowledged beli:lfe Ille on this & ~Iav of /h&-y .2005, bv Mi<hucl
R"~!;,'(-r:;tt: as theT'ii'l~f.Jnager of the City of Denton. a Illunici,;ality established under tl;e laws of
Tc,"s. on beh:r1f of ,,,id city.
dtc of Texas
STIHE OF TEXAS
COUNTY OF BEE
Tllis instrulllent was acknowlcdgcd belDre Ille on this ~U.day Of~r(\t'Lt... ,2005. by Dan i\.
HlIghcs, owner of Dan A. Hughes Compauy, a "I 'opri.etorship., :---0
/'
'Texas
e KATHERtNE A. YOUNG
NOTARY PUBLIC
;; STATE OF TEXAS
'f,. My Commission Expires 11-18-2008
,
1\,1" (',",
','
i'vlclll()r,llldllll1 (}f [VllldiJicatioll Agn:clnent
Hughcs to City or Dcnton
Pag\::2 01'2
Airport LC,ISC
DCl1!on County. Texas
~ J
III
~~
i~
Clo
~~
.~
:l
Ii
l:'l
UPON FILING, PLEASE RETURN TO:
The City of Denton
City Attomey'.s Office
215 East McKinney Street
Denton, IX 76201
~
gj
~~
h
~~
~
2
-
7-
~
Ilm"illn~"!111 ~il~i~ "1"~lill~I~III~11
70200500055619
Denton County
Cynthia Mitchell
County Clerk
Denton, TX 76202
Recorded On: May 11, 2005
Instrument Number: 2005-55619
As
Oil & Gas
Parties: CITY OF DENTON
To
Billable Pages: 4
Number of Pages: 4
Comment:
.. Examined and Charged as Follows: ..
Oil & Gas
Total Recording:
20.00
20.00
............ THIS PAGE IS PART OF THE INSTRUMENT ............
Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY
because of color or race is invalid and unenforceable under federal law.
File Information:
Document Number: 2005-55619
Receipt Number: 192739
Recorded Dateffime: May 11, 2005 10:27 A
Record and Return To:
CITY OF DENTON
215 E MC KINNEY
DENTON TX 76201
User / Station: J Smith - Cash Station 2
THE STATE OF TEXAS}
COUNTY OF DENTON}
I hereby certify that this Instrument was FILED In the File Number sequence on the dateftlme
printed heron, and was duly RECORDED In the Official Records of Denton County, Texas.
~
County Clerk
Denton County, Texas