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Home My WebLink AboutPR 14732: OIL & GAS LEASEinteroffice MEMORANDUM To: Mayor, City Council, and City Manager ~ From: Val Tizeno, First Assistant City Attorney ~~~` Date: May 16, 2008 Subject: P. R. No. 14732; Council Meeting of May 20, 2008 Attached is P. R. rfo. 14732 approving a partial assignment as to an oil and gas lease as it pertains to 7.55 net mineral acres, more or less, and being a part of Lot 14, Block 25, Port Acres Subdivision. VRT:gt Attachment cc: VIA FACSIMILE (713) 266-3639 Connie C. Noble, CPL SQUARE MILE ENERGY, L.L.C.. z.pr14732 memo P. R. No. 14732 05/14/08 gt RESOLUTIONf NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PARTIAL ASSIGNMENT AS TO AN OIL & GAS LEASE AS IT PERTAI]!iS TO 7.55 NET MINERAL ACRES, MORE OR LESS, A]!TD BEING A PART OF LOT 14, BLOCK 25, PORT ACREIS SUBDIVISION WHEREAS, the City Council approved Resolution No. 07-025 on January 16, 2007, authorizing thE~ City Manager to execute an oil and gas lease as it pertains to 7.55 net mineral acres, more or less, and being a part of Lot 14, Block 25, Port Acres Subdivision with Square Mile Energy, L.L.C.; and WHEREAS, Paragraph 18 of said Lease provides that the rights of Lessee may be assigned only with the written consent of Lessor; and WHEREAS, the City Council approved Resolution No. 07-080 on February 28, 2007, authorizing the City Manager to execute a partial assignment as to an Oil & Gas Lease as it pertains to 7.55 net mineral acres, more or less, and being a part of Lot 4, Block 25, Port Acres Subdivision from Square Mile Energy, L.L.C. to KiwiEnergy, Ltd. and to Oil & Gas Ventures, L.L.C.; and WHEREAS, the City received a letter from Square Mile Energy, L.L.C., dated May 6, 2008, pertaining to approving a Consent to Assign, as delineated in Exhibit "A". NOW THEREFORE, BE IT RESOLVEI) BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: z.pr14732 Section 1. That the fact; and opinions in the preamble are true and correct. Section 2. That the City Council approves the assignment in substantially the same form as denoted in Exhibit "B", with a condition being inserted that the assignment is being approved on the condition that the City is only required to give notice to Square Mile Energy, LLC", and it will serve as notice to all assignees. Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2008, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers NOES: MAYOR ATTEST: ACTING CITY SECRETARY z.pr14732 APPROVED AS TO FO ;7 '"d/ L- CITY ATTORNEY gyp. 1 ~ ~~ APPROVED FOR ADMINISTRATION: CITY MANAGER z.pr14732 EXHIBIT ~~A" Square Mile Energy, L.L.C. May 6, 2008 RECEIVEt~ MAY 0 7 200$ City of Port Arthur LEGAL DEPARTMENT Attention: Mr. Mark Sokolow, City Attorney 444 4th Street Port Arthur, Texas 77640 RE: Consent to Assign Oil & Gas Lease covering 7.55 acres Jefferson County, Texas Dear Mr. Sokolow: On January 18, 2007 the City of Port Arthur executed an Oil & Gas Lease to Square Mile Energy, L.L.C. (Square Mile) covering 7.55 acres of land, more or less, a part of Lot 14, Block 25, Port Acres Subdivision. Paragraph 18 of said lease provides that Lessee obtain written consent from Lessor for any assignment of rights under the lease. By agreement dated March 1, 2007, the City of Port Arthur gave consent to Square Mile Energy, L.L.C. to assign 21.5625% interest to K:iwiEnergy, Ltd. and 13.75% interest to Oil & Gas Ventures, L.L.C. The three parties now desire to assign partial interest to their industry associates and employees as set out on the attached agreement. After the assignment, Square Mile will still own 39.9997:>%. KiwiEnergy, Ltd. will own 19.4275% and Oil & Gas Ventures, L.L.C. will own 9.5%. We are hopeful that this request for written consent to assign will be favorably considered by City Council at the May 20, 2008 Council Meeting. We will have a company representative in attendance to answer any questions the Council may have. We greatly appreciate your help and cooper;~tion in these matters. If you have any questions, or concerns, do not hesitate to call me at (713) 953-3499. Respectfully submitted, SQUARE MILE ENERGY, L.L.C. ~I ~~"~v Connie C. Noble, CPL Land Manager 5847 San Felipe, Suite 2940 Houston, Texas 77057-3010 Phone (713) 266-3685 Fax (713) 266-3639 EXHIBIT ~~B" CONSENT TO ASSIGN STATE OF TEXAS § COUNTY OF JEFFERSON § KNOW ALL MEN BY THESE PRESENTS: THAT WHEREAS, heretofore, under date of January 18, 2007, the City of Port Arthur, as Lessor, did execute and deliver to Square Mile Energy, L.L.C., as Lessee, an oil and gas lease, recorded under File No. 2007003217 of the Official Public Records of Jefferson County, Texas, hereafter referred to as the "Lease", covering certain land situated in the Port Acres Subdivision, Jefferson County, Texas, briefly described as follows, to wit: 7.55 net mineral acres, more or less, and being a part of Lot 14, Block 25 of the Port Acres Subdivision, Jefferson County, Texas and being the same land described in a Correction Deed dated December 18, 1967 from C. Daily and wife, Gertrude Daily to the City of Port Arthur ,and recorded in Volume 1542, Page 206 of the Deed Records of Jefferson County, Texas. said land being more fully described in said Lease, reference to said Lease and to the record thereof being here made for all purposes; and, WHEREAS, Paragraph 18 of said Lease provides that the rights of Lessee may be assigned only with the written consent of Lessor; WHEREAS, on March 1, 2007, the City of Port Arthur granted Square Mile Energy, L.L.C. consent to assign 21.5625% interest to KiwiEnergy, Ltd., and 13.75% interest to Oil & Gas Ventures, L.L.C., said Consent to Assign agreement being recorded as File 2007008562 of the Official Records of Jefferson County, Texas; and WHEREAS, Square Mile Energy, L.L.C'., KiwiEnergy, Ltd., and Oil & Gas Ventures, L.L.C. all desire to assign a portion of it's rights~~ in said Lease so that after all assignments are made the interest in the lease will be owned by the below named companies, to-wit: COMPANY INTEREST Square Mile Energy, L.L.C. 39.9975% 5847 San Felipe, Suite 2940 Houston, TX 77057 KiwiEnergy, Ltd. 19.4275% 5847 San Felipe, Suite 2949 Houston, TX 77057 Oil & Gas Ventures, L.L.C. 9.500% 1131 Bayou Road Beaumont, TX 77705 JHJ Properties, Ltd. 1.000% 6 Bayou Brandt Beaumont, TX 77706 Brick Street Resources, LLC 1.500% 1015 Galveston Coleman, TX 76834 Consent to Assign Page Two -Continued Tiger Exploration, L.L.C. 2.500% 2203 Riva Row, #1309 The Woodlands, TX 77380 Icarus, Inc. 1.250% 719 Sawdust Road Suite 109 The Woodlands, TX 77380 Zachry Exploration, Ltd. 5.000% 310 S. St. Mary's Street, Suite 2000 San Antonio, TX 78205-3108 M. M. Cone, Inc. 3.000% 909 Wirt Road Houston, TX 77024 Loveless Asset Management, L.L.C. 10.500% 5847 San Felipe, Suite 2940 Houston, TX 77057-3010 Reimert Family Partners, Ltd. 1.125% 6 Winners Circle Houston, TX 77024 Gerico Enterprises, LLC 0.500% 300 Sutton Place Georgetown, TX 78628 Fischer Interest LLC 0.500% 11316 Surrey Oaks Houston, TX 77024 Long Run Oil Company 0.500% 7000 North Mo-Pac Expressway, Suite 200 Austin, TX 78731 Lilac Energy, Inc 1.000% 814 Soboda Court Houston, TX 77079 Coastland Energy, Inc. 0.250% P. O. Box 1799 Conroe, TX 77305 Reynolds Resources, LLC 0.250% P. O. Box 131275 Houston, TX 77219 LL&K Exploration, L.L.C. 0.750% 8982 Willow Springs Lane Conroe, TX 77301 Consent to Assign Page Three -Continued KK&M Investments, L. L. C. 0.250% 1515 Lake Charlotte Lane Richmond, TX 77469 Zephyr Investment Co., L.L.C. 0.250% 504 Woodland Street Houston, TX 77219 Robert C. White 0.250% 31919 Churchill Field Lane Fulshear, TX 77441 MDMB Investments, LLC 0.250% 18254 Foreman Road Iowa, Louisiana 70647 Shade Tree Investments, L.L.C. 0.250% 5847 San Felipe, Suite 2940 Houston, TX 77057-3010 Pelican Exploration, LLC 0.200% P. O. Box 2723 Port Aransas, TX 78373 NOW THEREFORE, pursuant to Paral;raph 18 of said Lease, the CITY OF PORT ARTHUR, Lessor (whether one or more), does hereby consent to the assignment of interest in said Lease to the herein named companies. This instrument shall be binding upon the undersigned and its successors and assigns. EXECUTED this day of LESSOR CITY OF PORT ARTHUR By: Stephen Fitzgibbons, City Manager STATE OF TEXAS § COUNTY OF JEFFERSON § 2008. This instrument was acknowledged before; me on the day of 2008 by Stephen Fitzgibbons, as City Manager oI'the City of Port Arthur, Texas. Notary Public in and for the State of Texas * Per Resolution No. , this assignment is conditioned that the City of Port Arthur is only required to give notice to Square Mile Energy, LLC and it will serve as notice to all assignees.