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Home My WebLink AboutMINUTES - 08061996 - C29 1� TO: BOARD OF SUPERVISORS, as the Governing Body of the Contra Costa County Flood Control and Water Conservation District FROM: J. MICHAEL WALFORD, CHIEF ENGINEER DATE: August 6, 1996 SUBJECT: Drainage Areas 104 and 105 Oil and Gas Leases Lower Sand Creek and Bloomfield Basin Project Nos.: 7589-6D8513 and 7590-6D8515 Task: ACQ Account: 3540 SPECIFIC REQUEST($)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION 1. Recommended Action: A. APPROVE Amendment and Ratification of Oil and Gas Lease(2)with Enron Oil & Gas Company and Sunset Exploration, Inc., and ACCEPT Quitclaim Deeds (2) dated June 20 and July 26, 1996 from Enron Oil &Gas Company and Sunset Exploration, Inc. B. AUTHORIZE Chief Engineer to execute said Amendment and Ratification Agreements on behalf of the District. C. DIRECT the Real Property Division to have the above referenced Quitclaim Deeds recorded in the office of the County Recorder. Continued on Attachment: X SIG NATUREr--,-_� RECOMMENDATION OF COUNTY ADMINISTRATOR ^_RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OT3iER ti VOTE OF SUPERVISORS '- ,/ UNANIMOUS (ABSENT ) AYES: NOES: - ABSENT: ABSTAIN: t ► �this fa a bus and pct of DLD:Io en action faxen and entered on the minutes�1% g:lrealpropltemp1bo12.6 Board of Supervisorson a oats shown. 9 9 Orig. Div: Public Works(R/P) PHIL aboud Contact: Donna Dawkins(313-2224) clew +o cc: County Administrator P.W.Accounting IV Recorder(via RIP) if. Financial Impact: Revenue: Possible future royalty share of one-sixth for mineral rights owned by District from Enron Oil & Gas Company and Sunset Exploration, Inc. Ill. Reasons for Recommendations and Background: The District owns the mineral rights on portions of its basin properties. Enron and Sunset own surface rights on a portion of District property and Oil and Gas Leases on all of District's property. The Amendment and Ratification of Oil and Gas Lease is necessary in order to provide a greater royalty share on the Bloomfield Basin to the District and to clarify the terms and conditions of the leases. Acceptance of the Quitclaim Deeds will provide the District with all surface rights for the development of Lower Sand Creek and Bloomfield basins. Enron Oil Gas & Company and Sunset Exploration, Inc., which own these rights, have offered to exchange these rights for the District's Amendment and Ratification of the Leases. This exchange of rights will enable the District to proceed with the basin projects and will allow Enron Oil&Gas Company and Sunset Exploration, Inc. to proceed with their drilling and exploration on adjacent properties. IV. Consequences of Negative Action: Time is of the essence in order to secure the exchange of the mineral and surface rights. Recording Requested by: Contra Costa County Flood Control Return to: Contra Costa County Public Works Dept Real Property Divisior Attn: Donna Dawkins 255 Glacier Drive Martinez, CA 94553 STATE OF CALIFORNIA COUNTY OF CONTRA COSTA Quitclaim and .Release of Surface Rights KNOW ALL MEN BY THESE PRESENTS: THAT, REFERENCE IS HEREBY MADE to that certain Oil and Gas Lease, dated December 3, 1959, a memorandum of which is recorded in Book 3582, at Page 678, of the Official Records of Contra Costa County, California (said lease and memorandum thereof being hereinafter called "said lease'), whereby Loris V. Lea and Reine Lea, husband and wife, as Lessor, leased certain lands (hereinafter called "leased land'). in said County for oil and gas development purposes to Shell Oil Company, a corporation, as lessee; AND WHEREAS; the undersigned ENRON OIL & GAS COMPANY, a Delaware corporation, and SUNSET EXPLORATION, INC., a California corporation (hereinafter collectively called "Lessee") are the present owners of all of the said Lessee's interest in and under said lease: NOW, THEREFORE, in consideration of the premises and the understandings hereinafter contained, Lessee hereby surrenders and relinquishes unto CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT, a political subdivision of the State of California, and to its successors and assigns, all of Lessee's rights under said lease to use the surface and the subsurface from the surface to a depth of five hundred feet (500') measured vertically from the surface of that portion (but only of that portion) of the leased land more particularly described as follows: PARCEL 1780: Real property in the City of Brentwood, Contra Costa County, California, being a portion of PARCEL ONE described in the deed to Loris V. Lea and Reine Lea recorded July 20, 1951, in Book 1794 of Official Records at page 549, records of said County, described as follows: Commencing at the northwest comer of said Lea PARCEL ONE (1794 O. R. 549) said point being the southwest comer of the parcel of land described in the instrument to Victor R. Castello and Marjorie Lola Castello, Trustees under the 1989 Victor R. Castello and Marjorie Lola Castello living trust, dated May 25, 1989, recorded June 22, 1989 in Book 15148 of Official Records at page 936, records of said County; thence, along the boundary of said PARCEL ONE (1794 O. R. 549), south 890 21' 59" east 509.74 feet to the Point of Beginning; thence, from the Point of Beginning, continuing along said boundary of PARCEL ONE, south 890 21' 59" east 1010.00 feet; thence south 10 28' 31" west 274.87 feet; thence, leaving said boundary of PARCEL ONE, north 890 21' 59" west 540.00 feet; thence north 760 35' 54" west 225.00 feet; thence north 650 17' 52" west 270.000 feet; thence north 00 38' 01" east 115.00 feet, to the Point of Beginning. Containing an area of 5.64 acres of land, more or less. Nothing herein contained shall be deemed or construed in any way to constitute a surrender, quitclaim or relinquishment of or to limit or otherwise prejudice any other rights which Lessee owns under said lease, including (without limitation) the right to drill into or through, produce from and/or otherwise use the subsurface of all or any portion or portions of the above described land below such five-hundred foot depth. IN WITNESS WHEREOF, the undersigned have executed this instrument this day of . 1996. Lessee: ENRON OIL&GAS COMPANY By: Doug Weaver - 411 Agent and Attorney-in-Fact SUNSE RATI , INC. By: Robert E. Nunn President Recording Requested by: Contra Costa County Flood Control Return to: Contra Costa County Public Works Dept Real Property Divisior _ Attn: Donna Dawkins 255 Glacier Drive Martinez, CA 94553 STATE OF CALIFORNIA COUNTY OF CONTRA COSTA QUITCLAIM AND RELEASE OF SURFACE RIGHTS KNOW ALL MEN BY THESE PRESENTS: THAT, REFERENCE IS HEREBY MADE to that certain Oil and Gas Lease, dated January 22, 1960, a memorandum of which is recorded in Book 3782, at Page 368, of the Official Records of Contra Costa County, California (said lease and memorandum thereof being hereinafter called "said lease"), whereby John Castello and Catherine Castello, as Lessor, leased certain lands (hereinafter called "leased land") in said County for oil and gas development purposes to Shell Oil Company, a corporation, as Lessee; AND WHEREAS; the undersigned ENRON OIL & GAS COMPANY, a Delaware corporation, and SUNSET EXPLORATION, INC., a California corporation (hereinafter collectively called "Lessee") are the present owners of all of the said Lessee's interest in and under said lease: NOW, THEREFORE, in consideration of the premises and the understandings hereinafter contained, Lessee hereby surrenders and relinquishes unto CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT, a political subdivision of the State of California, and to its successors and assigns, all'of Lessee's rights under said lease to use the surface and the subsurface from the surface to a depth of five hundred feet (500') measured vertically from the surface of that portion (but only of that portion) of the leased land more particularly described as follows: PARCEL 1779 Real property in the City of Brentwood, Contra Costa County, California, being a portion of the parcel of land described in the instrument to Victor R. Castello and Marjorie Lola Castello, trustees under the 1989 Victor R. Castello and Marjorie Lola Castello Living Trust, dated May 25, 1989, recorded June 22, 1989, in Book 15148 of official records at Page 936, records of said County, described as follows: Commencing at the southwest corner of said Castello parcel (15148 O.R. 936) said point being the northwest corner of PARCEL ONE described in the deed to Loris V. Lea and Reine Lea recorded July 20, 1951 in Book 1794 of Official Records at Page 549, records of said County; thence, along the southerly boundary of said Castello parcel (15148 O.R. 936), south 890 21' 59" east 509.74 feet to the Point of Beginning; thence from the Point of Beginning, leaving the said southerly boundary of said Castello parcel; north 181 11' 21" east 717.92 feet to a point on the northerly boundary of said Castello parcel; thence along said northerly boundary, south 700 27' 59" east 20.00 feet; thence south 630 53' 59" east 180.40 feet; thence south 10 11' 01" west 147.11 feet; thence south 8911 21' 59" east 110.00 feet; thence north 1° 11' 01" east 94.96 feet; thence south 631 53' 59" east 18.32 feet; thence south 790 02' 59" east 160.00 feet; thence south 490 47' 59" east 200.00 feet; thence south 681 14' 59" east 390.00 feet; thence north 850 34' 01" east 62.96 feet; thence, leaving said northerly boundary of the Castello parcel, south 10 28' 31" west 369.28 feet; thence south 34° 16' 17" west 186.19 feet to a point on the boundary of said Castello Parcel (15148 O.R. 936); thence, along said boundary north 890 21' 59" west 147.96 feet; thence, north 10 28' 31" east 274.87 feet; thence north 890 21' 59" west 1010.00 feet to the Point of Beginning. Containing an area of 13.57 acres of land, more or less. Nothing herein contained shall be deemed or construed in any way to constitute a surrender, quitclaim or relinquishment of or to limit or otherwise prejudice any other rights which Lessee owners under said lease, including (without limitation) the right to drill into or through, produce from and/or otherwise use the subsurface of all or any portion or portions of the above described land below such five-hundred foot depth. IN WITNESS WHEREOF, the undersigned have executed this instrument this _day of 1996. LESSEE: ENRON OIL & GAS COMPANY Ag�� By: D. Weaver Agent and Attorney-in-Fact SU=:: . By: Robert E. NurJ President mAebp13004.doc