HomeMy WebLinkAboutMINUTES - 09221992 - 1.52 I ® .52
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: September 22, 1992
FROM: Richard J. Martinez, Acting Interim Executive Director
SUBJECT: OIL AND GAS LEASE AGREEMENT
FLEET OIL COMPANY
I. RECOMMENDED ACTION:
ADOPT Resolution No. 3655 authorizing the execution of a Memorandum of Oil and
Gas Lease and an Oil and a 20-year Gas Lease at CA011004, Los Nogales, Brentwood,
with Fleet Oil Company by the Chair of the Board of Commissioners, as recommended by
the Advisory Housing Commission
II. FINANCIAL IMPACT:
Fleet Oil Company will pay the Housing Authority a yearly amount of $240 for
the term of the lease. If oil or gas is found, Fleet Oil will also pay the Housing
Authority royalties equal to the value of one sixth of all the oil or gas produced
and removed from the leased land.
III. REASONS FOR RECOMMENDATION/BACKGROUND:
Fleet Oil Company has requested that the Housing Authority enter into an Oil
and Gas lease and a Memorandum of Oil and Gas Lease with Fleet Oil Company for some
of the Los Nogales Public Housing property located in Brentwood. The term of the
lease is for 20 years, or until it is determined that there zire no longer sufficient
paying quantities of gas or oil extractable from the leased land.
As this is a subsurface lease, Fleet Oil would not bring any equipment on site
or drill on site. All pipe lines or other equipment would run a minimum of 500 feet
under the surface of the property. Fleet Oil 'has agreed to the following conditions
in the leases: a. Fleet Oil will pay for testing, cleaning up and monitoring that
may be required because of the discharge of hazardous materials onto the property;
b. Fleet Oil will indemnify and hold harmless the Housing ALIthority in the event
that any person or property is damaged as a result of their activities; and, c.
Fleet Oil agrees to drill and operate all wells which are located within the City of
Brentwood in accordance with Chapter 17.680 of the Brentwood Municipal Code, which is
a noise abatement ordinance.
At its Regular Meeting on September 14, 1992, the Advisory Housing Commission
voted to recommend adoption of Resolution No. 3655 authorizing the execution of a
Memorandum of Oil and Gas Lease and an Oil and Gas Lease with i=1eet Oil Company by
the Chair of the Board of Commissioners.
CONTINUED ON ATTACHMENTS YES SIGNATURES l � '
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON pZ APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF COMMISSION RS ON THE DATE SHOWN.
CC: ATTESTED rhA?�� '�a J'��
hil Batchelor. Clerk of the
Board of Commissioners
M302/7-e3 BY DEPUTY
THE BOARD OF COMMISSIONERS
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO. 3655
RESOLUTION AUTHORIZING THE EXECUTION OF AN OIL AND
GAS LEASE AND A MEMORANDUM OF OIL AND GAS LEASE WITH
FLEET OIL COMPANY BY THE CHAIR OF THE BOARD
WHEREAS, Fleet Oil Company believes that payable quantities of oil
or gas are located under Housing Authority property in
Brentwood described in Exhibit A attached herewith; and
WHEREAS, Fleet Oil Company has requested that the Housing
Authority enter into a subsurface Oil and Gas Lease and
a Memorandum of Oil and Gas lease for said property; and
WHEREAS, the Housing Authority of the County of Contra Costa (the
"Authority" ) is a public entity; and
WHEREAS, Fleet Oil will pay the Authority a yearly amount of $240
for the term of the lease and royalties equal to the
value of one sixth of all the oil or gas produced and
removed from said leased land; and
WHEREAS, County Counsel has reviewed the documents and determined
that the Authority can enter into such agreements; and
WHEREAS, the Authority wishes to enter into these leases with the
understanding that no liability will be incurred by such
action and that the funds received will be used to
support Authority activities; and
WHEREAS, because this is a subsurface lease only, Fleet Oil will
not bring any equipment on the property nor drill on the
property; and
WHEREAS, Fleet Oil will hold harmless and indemnify the Authority
in the event that any person or property is damaged as a
result of Fleet Oil' s activities; will pay for any
testing, clean-up and monitoring resulting from the
discharge of hazardous materials onto the property; and
will abide by all local noise abatement ordinances;
NOW, THEREFORE, BE IT RESOLVED, as follows :
1 . That the Board of Commissioners of the Housing
Authority of the County of Contra Costa does hereby
approve the Oil and Gas Lease and the Memorandum of Oil
and Gas Lease between the Housing Authority and Fleet Oil
Company for Housing Authority property located in
Brentwood and described in Exhibit A attached.
2 . That the Chair of the Board is hereby authorized and
directed to execute the above described lease documents,
and any amendments or modifications thereto.
3 . That this resolution shall take effect immediately.
PASSED AND ADOPTED THIS 1717/94
day of , 19 ,
by the following vote of the Commissioners :
AYES : Commissioners Powers, Fanden, Schroder, Torlakson, P1cPeak
NOES : None
ABSENT: None I hereby certify that this to a tnie and cofrect copy of
an action taken and entered on the minutes of the
ABSTAIN: None Boar!of Supe re on the date sh
ATTESTED:
PHIL BAT HELOR,Clerk of the Board
C C: County Administrator of S pervisors and County Administrator
County Counsel
Housing Authority by ___ .._ - ,Deputy
EXHIBIT "A"
196-38-014
12-142-11, 15 AND 16
A part of Lot 129 of Subdivision Number Three of Brentwood
Irrigated Farms as said lot is delineated and so designated on
that certain map entitled "SUBDIVISION NUMBER THREE OF BRENTWOOD
IRRIGATED FARMS" and filed on September 11, 1917 in the office
of the County Recorder of said County of Contra Costa, State of
California, in Map Book 16 at page 324 thereof, said part of
said Lot 129 being more particularly described as follows:
Beginning at the northeasterly corner of said Lot 129 and
running thence along the easterly line of said Lot 129 South 0'
08 ' West 660. 2 feet to the line common to Lots 129 and 130;
thence along said common line South 89 ' 28 ' West 788 . 3 feet;
thence North 0' 08 ' East 666. 4 feet to a point on the north line
of said Lot 129 ; thence along said north line North 89 . 55 ' East
788 . 3 feet to point of beginning, containing 12 . 00 acres more of
less.
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