2003-181S:\Our Documents\Ordinances\03XRe-Advertisement for Southlakes Oil & Gas Lease Ord.doc
ORDNANCE NO.
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING TI-YE RE-
ADVERTISEMENT FOR A NON-DRILLING, PAID-UP POOLING AGREEMENT FOR AN
OIL AND GAS LEASE AGREEMENT FOR SOUTH LAKE PARK WITHIN 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
heating pursuant to Chapter 26 of the Texas Parks and Wildlife Code and made the
determination that the sub-surface use of South Lake Park for the purpose of an Oil and Gas
Nondrilling/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 Section 71.005(a) 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 Lake Park for the purpose of an Oil and Gas Nondrilling/Pooling Agreement; and
WHEREAS, the City Council authorized the City Manager or his designee to bid the sub-
surface mineral interests for a Nondrilling/Pooling Agreement at South Lake Park according to
law; and
WHEREAS, no bids were submitted during the initial bid for a Non-Drilling/Pooling
Agreement at South Lake 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 Lake Park did not meet the minimttm bid specifications; and
WHEREAS, the City Council desires to reject all bids and authorize the City Manager or
his designee to re-bid the sub-surface mineral interests for a Nondrilling/Pooling Agreements at
South Lake 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 all bids submitted for the non-drilling, paid-up
pooling agreement for Oil and Gas Lease agreements for South Lake Park to the City of Denton
Purchasing Department on May 13, 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 Lake 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 /~-~ day of (/'~dOq./__~ ,2003.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY