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Home My WebLink AboutPR 23239: RELEASE OF ASPECT ENERGY'S DRILLING AND ROAD USE BONDS FOR SASSINE ROAD ('itv of ort rthu - www.Por thurTx.gov INTEROFFICE MEMORANDUM Date: August 18, 2023 To: The Honorable Mayor and City Council Through: Ronald Burton,CPM, City Manager From: Pamela D. Langford, CFM, CPM, Assistant City Manager- Operations/Director of Development Services t,%f Flozelle C. Roberts, EIT, MEng, MBA, Director of Public Work 80 RE: P.R.No. 23239-Release of Aspect Energy's Drilling and Road Use Bonds for Sassine Road Introduction: Staff recommends that the City Council adopt Proposed Resolution No.23239,which authorizes the release of the drilling and road use bonds for Sassine Road for Aspect Eneergy, LLC of Denver, Colorado. Background: Drilling Bond City Council approved Resolution 21-235,which authorized Permit Number 173 for the drilling, completing, and operating of an oil and gas permit within the City by Aspect Energy, LLC (Aspect Energy). City Council subsequently approved Resolution 22-258 granting the one-year extension of Permit 173. "Remember,we are here to serve the Citizens of Port Arthur" 444 4th Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 Road Use Bond Aspect Energy applied for and was granted, through Resolution 22-404, a road use permit for Sassine Avenue for mobilization and drilling operations associated with the oil and gas permit City Council authorized in Resolution 21-235. Aspect Energy has notified the City that its drilling efforts are complete, and the company is requesting the release of the drilling and road use bonds. Staff has found the City's property condition to be satisfactory. Budget Impact: There is no funding impact. Recommendation: It is recommended that City Council approves P.R. 23239 authorizing the release of the drilling and road use bonds for Aspect Energy, LLC of Denver, Colorado. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R.No.23239 08/08/2023 FCR Page 1 of 3 RESOLUTION NO. A RESOLUTION RELEASING THE OIL AND GAS DRILLING BOND AND ROAD USE BOND FOR SASSINE AVENUE GRANTED TO ASPECT ENERGY, LLC OF DENVER, COLORADO. THERE IS NO FUNDING IMPACT. WHEREAS,the City Council authorized Resolution 21-235,authorizing Permit 173 for the drilling,completing,and operating of an oil and gas permit within the City by Aspect Energy,LLC of Denver, Colorado; and, WHEREAS,City Council subsequently approved Resolution 22-258 granting the one-year extension of Permit 173; and, WHEREAS,Aspect Energy applied for and was granted,through Resolution 22-404,a road use permit for Sassine Avenue for mobilization and drilling operations associated with the oil and gas permit City Council authorized in Resolutions 21-235 and 22-258; and, WHEREAS,Aspect Energy has informed the City that its drilling efforts are complete,and the company is requesting the release of the drilling and road use bonds; and, WHEREAS,staff has found the City's property condition to be satisfactory;now,therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT,the facts and opinions in the preamble are true and correct; and, THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to execute,on behalf of the City,releases of the oil and gas drilling bond(Exhibit A)and the road use bond for Sassine Avenue(Exhibit B)for Aspect Energy, LLC of Denver, Colorado; and, P.R.No.23239 08/08/2023 FCR Page 2 of 3 THAT, a copy of the caption of this resolution be spread upon the minutes of the City Council. READ,ADOPTED,AND APPROVED,this day of ,2023 AD, at a regular meeting of the City Council of the City of Port Arthur, Texas, by the following vote:AYES:Mayor: Councilmembers: NOES: . Thurman Bill Bartie Mayor ATTEST: Sherri Bellard, TRMC City Secretary APPROVED AS TO FORM: eglit,i - is R. � -r to, Esq. i , Attorney P.R.No.23239 08/08/2023 FCR Page 3 of 3 APPROVED FOR ADMINISTRATION: Ronald Burton, CPM City Manager Pamela D. Langford, CFM, CPM Assistant City Manager—Operations/Director of Development Services P Pj - AYtt, L - szelle C oberts, E Eng, MBA Director blic W• P. R. 23239 Exhibit A THURMAN BILL BARTIE,MAYOR RON BURTON TIFFANY HAMILTON,MAYOR PRO TEM City of CITY MANAGER COUNCIL MEMBERS: SHERRI BELLARD,TRMC WILLIE BAE LEWIS n r t T t h uc _ CITY SECRETARY KENNETH MARKS THOMAS J.KINLAW III Texas VAL TREND DONALD FRANK,SR. CITY ATTORNEY August 29, 2023 RELEASE Endurance Assurance Corporation issued a Drilling Bond (Bond No. EACX4014275) in the amount of $25,000.00 (the "Bond") at the request of Aspect Energy, LLC, as Principal, for the benefit of the City of Port Arthur, TX, as Obligee ("Obligee"). Obligee hereby fully and unconditionally discharges and releases the Bond and releases Endurance Assurance Corporation, its parents, affiliates and subsidiaries from any and all past, present, and future liability under said Bond. The undersigned warrants that he or she has the authority to execute this Release on behalf of the Obligee and to bind the Obligee hereunder. Signed By: Name: Ronald Burton Title: City Manager Please print name and title above Signed by an Officer with requisite authority to sign on Obligee's behalf. P. R. 23239 Exhibit B THURMAN BILL BARTIE,MAYOR RON BURTON TIFFANY HAMILTON,MAYOR PRO TEM City of CITY MANAGER COUNCIL MEMBERS: SHERRI BELLARD,TRMC WILLIE BAE LEWIS r t rt h u _ CITY SECRETARY KENNETH MARKS THOMAS J.KINLAW HI o Texas VAL TIZENO DONALD FRANK,SR. CITY ATTORNEY August 29, 2023 RELEASE Endurance Assurance Corporation issued a Road Use Permit Performance Bond (Bond No. EACX4014276) in the amount of $150,000.00 (the "Bond") at the request of Aspect Enemy, LLC, as Principal, for the benefit of the City of Port Arthur, TX, as Obligee ("Obligee"). Obligee hereby fully and unconditionally discharges and releases the Bond and releases Endurance Assurance Corporation, its parents, affiliates and subsidiaries from any and all past, present, and future liability under said Bond. The undersigned warrants that he or she has the authority to execute this Release on behalf of the Obligee and to bind the Obligee hereunder. Signed By: Name: Ronald Burton Title: City Manager Please print name and title above Signed by an Officer with requisite authority to sign on Obligee's behalf.