2003-357SAOur Documents\Ordinances\03\ae-Advertisement for Southlakes Oil & Gas Lease Ord2.doc
ORDINANCE NO. RO03 3- 7
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE REJECTION
OF THE R.L. ADKINS BID AND AUTHORIZING THE RE-ADVERTISEMENT FOR A
NON-DRILL SITE/POOLING AGREEMENT FOR SOUTH LAKES PARK IN THE CITY OF
DENTON, TEXAS AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on July 16, 2002 the City Council of The City of Denton held a public
hearing pursuant to Chapter 26 of the Texas Parks and Wildlife Code and made the
determination that the sub-surface use of South Lakes Park for the purpose of an Oil and Gas
Non-Drill Site/Pooling Agreement should be allowed and the surface of the park may still be
used by its patrons after completion of the sub-surface use of the park; and
WHEREAS, pursuant to Chapter 71 of the Texas Natural Resources Code, the City
Council of The City of Denton has determined that it is advisable to lease the sub-surface of
South Lakes Park for the purpose of an Oil and Gas Non-Drill Site/Pooling Agreement; and
WHEREAS, the City Council authorized the City Manager or his designee to bid the sub-
surface mineral interests for a Non-Drill Site/Pooling Agreement at South Lakes Park according
to law; and
WHEREAS, no bids were submitted during the initial bid for a Non-Drill Site/Pooling
Agreement at South Lakes Park and since that time, several oil and gas developers have
requested that the City re-bid the sub-surface mineral interests, however, the subsequent bids
submitted on May 13, 2003 for South Lakes Park did not meet the minimum bid specifications;
and
WHEREAS, the City Council desires to rejected all bids and authorized the City Manager
or his designee to re-bid the sub-surface mineral interests for a Non-Drill Site/Pooling
Agreements at South Lakes Park with no minimum bid specifications according to law.
WHEREAS, the subsequent bid submitted by R.L. Adkins was withdrawn and the City
Council desires to reject the R.L Adkins bid and authorize the City Manager or his designee to
re-bid the sub-surface mineral interests for a Non-Drill Site/Pooling Agreements at South Lakes
Park with no minimum bid specifications according to law
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings contained in the preamble of this ordinance are incorporated
into the body of this ordinance.
SECTION 2. The City Council rejects the R.L Adkins bid submitted for the non-
drilling, paid-up pooling agreement for Oil and Gas Lease agreements for South Lakes Park to
the City of Denton Purchasing Department on August 4, 2003.
SECTION 3. That pursuant to Chapter 71 of the Texas Natural Resources Code, the
City Council hereby authorizes the re-advertisement for a Non-Drilling, Paid-Up Pooling
Agreement for an Oil and Gas Lease Agreement for South Lakes Park within the City of Denton,
Texas.
SECTION 4. That this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the *t- day of 2~ Cl L1~YIL.X6~J~~ 2003.
~"a_
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY: