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2003-183S:\Our Doeuments\Ordinances\03xtBid Process-NorthLakes-Denia-Airport.doe ORDINANCE NO. ,:ff~7~..,~ -/~ AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE REJECTION OF ALL BIDS AND THE RE-ADVERTISEMENT FOR A NON-DRILLING, PAID-UP POOLING AGREEMENT FOR OIL AND GAS LEASE AGREEMENTS FOR NORTH LAKES PARK, DENIA PARK, AND THE AIRPORT OPEN SPACE PARK, WITHIN THE CITY OF DENTON, TEXAS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on January 7, 2003 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 North Lakes Park, Denia Park and the Airport Open Space Park for the purpose of an Oil and Gas Nondrilling/Pooling Agreement should be allowed and the surface of the parks 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-surfaces of North Lakes Park, Denia Park and the Airport Open Space Park for the purpose of an Oil and Gas Nondrilling/Pooling Agreements; and WHEREAS, the bids that were submitted did not conform to the bid specifications for the non-drilling, paid-up pooling agreement for Oil and Gas Lease agreements for North Lakes Park, Denia Park, and the Airport Open Space Park to the City of Denton Purchasing Department on May 13, 2003; 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 North Lakes Park, Denia Park and thc Airport Open Space Park with no minimum bid specification 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 North Lakes Park, Denia Park, and the Airport Open Space 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 Oil and Gas Lease Agreements for North Lakes Park, Denia Park and the Airport Open Space Park within the City of Denton, Texas. SECTION 4. and approval. PASSED AND APPROVED this the /~//day of EULINE BROCK, MAYOR That this ordinance shall become effective immediately upon its passage ,2003. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY