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HomeMy WebLinkAboutMINUTES - 12071993 - 1.16 H A./ TO: BOARD OF SUPERVISORS FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR Ya DATE: DECEMBER 7, 1993 SUBJECT: OIL AND GAS LEASE - BRENTWOOD AREA Project No.: 0674-6U4200 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) &BACKGROUND AND JUSTIFICATION e I. Recommended Action: APPROVE Amendment to Subsurface Oil, Gas and Mineral Lease with Nahama & Weagant Energy Company and AUTHORIZE the Board Chair to sign said Amendment on behalf of the County. II. Financial Impact: The original lease provides for a $50 per acre rental fee and a one-fourth royalty on production, if any. The primary term of the lease is for 5 years. The Amendment increases the road right of way subject to the lease from three to approximately 4.5 acres; revenues to increase directly proportional to the acreage increase. III. Reasons for Recommendations and Background: The Board approved the original lease on February 26, 1991. The Amendment adds 1.5± acres sof road right of way (a portion of Balfour Road and Byron Highway) to the area covered by the lease. No surface rights are involved. Lessee seeks to establish the production of natural gas from this prospect. IV. Consequences of Negative Action: Loss of revenue as outlined in Section II above. Continued on Attachment: SIGNATURE:—&a& � RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON DEC 7 1993 APPROVED AS RECOMMENDED OTHER VOT OF SUPERVISORS UNANIMOUS (ABSENT AYES: NOES: ABSENT: ABSTAIN: I hereby certify that this is a true and correct copy if RF:gIo an action taken and entered on the minutes of the c:BOa7.t12 Board of Supervisors on the date shown. ATTESTED: DEC 1993 Orig. Div: Public Works (R/P) PHIL BATCHELOR,clerk of the Board Contact: Roger Frost (313-2223) of Supervisors and Cou ty Administrator cc: County Administrator ` By "Deputy Auditor-Controller (via R/P) P. W. Accounting j Recorder (via R/P) i i I RECORDING REQUESTED BY AND / WHEN RECORDED SEND TO: Nahama & Weagant Energy Company 4700 Stockdale Hwy. , Ste. 110 Bakersfield , CA 93309 (93-112) Unincorporated area of Contra Costa Co. , California AMENDMENT TO SUBSURFACE OIL, GAS AND MINERAL LEASE THIS AGREEMENT made and entered into as of this 20th day of October, 1993 by and between COUNTY OF CONTRA COSTA, a political subdivision of the State of California, hereinafter called "Lessor" , and NAHAMA & WEAGANT ENERGY COMPANY, a California corporation, hereinafter called "Lessee" ; W I T N E S S E T H THAT WHEREAS, Lessee presently holds all of the Lessee' s right, title, and interesf under that certain Subsurface Oil , Gas and Mineral Lease dated February 26 , 1991, entered into by and between Lessor and Lessee herein, covering 3.024 acres, more or less, situated in Contra Costa County, California, more particularly described in said Lease, a Short Form of which was recorded June 26 , 1991 , as Instrument No. 91-123708, in Book 16693, at Page 832, Official Records of said County and State; and WHEREAS, it is the desire of the parties hereto to amend said lease to include additional lands by modifying the description and the amount of acreage as hereinafter provided ; NOW, THEREFORE, in consideration of the sum of Ten Dollars ( $10.00) in hand paid by Lessee to Lessor and other good and valuable considerations, the receipt and adequacy of which are hereby acknowledged, and of the covenants and agreement contained h in said lease, Lessor does hereby grant, demise, lease and let said land to Lessee, its successors and assigns, for the purposes and upon all the same terms, provisions and conditions, as contained in said lease of February 26 , 1991 , and does hereby join and concur in said lease, and as a Lessor, the said lease is hereby recognized ; ratified, and confirmed as to all of the terms, conditions, recitals and stipulations therein contained , and the parties hereto agree: 1 ) That the description of the leased land as it appears on Exhibit "A" of said lease and Short Form, is hereby deleted in its entirety and the description attached hereto as Exhibit "A" is substituted therefor. '13 - 212 CONTRA C OOT A CO . A N!N 0 b w 1 2) That the amount of acres indicated on Page 1 of said lease is hereby deleted and substituted therefor is the acreage amount of 4.50 acres, more or less. 3) That said lease is a valid and subsisting lease and the rental payments due hereunder have been .paid by Lessee and received by Lessor and operate to defer the commencement of drilling operations until February 26 , 1996 . As hereby amended , said Lease shall be and remain in full force and effect as to all its terms and provisions. This agreement shall be binding upon and shall inure to the benefit of the heirs, personal representatives, successors and assigns of the parties hereto. This agreement may be executed in any number of counterparts with the same force and effect as though all parties signed the same document. IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first hereinabove written. LESSOR LESSEE COUNTY OF CONTRA COSTA NAHAMA & WEAGANT ENERGY COMPANY BY: cho ol, L�Jo4-c� S� Peggy Morgan, Manager of Lands BY: 0,9 20 rt, S State of California County of Contra Costa On before me, Roger H. Frost, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Signature Roger H. Frost EXHIBIT "A• Attached to and made a part of that certain Amendment to Subsurface Oil , Gas & Mineral Lease dated October 20, 1993, by and between COUNTY OF CONTRA COSTA, as Lessor, and NAHAMA . & WEAGANT ENERGY COMPANY, as Lessee. DESCRIPTION: Portions of Sections 16 , &. 22, Township 1 North, Range 3East, MDB&M PARCEL 1. COMMENCING at a point, said point being a stake 19 X 2 inches, on the Westerly line of said Section 16 , 40.034 chains North of the Southwest -corner of said Section 16 , being the common corner of Sections 16 , 17, 20 .and 21, running thence South 890 59 ' 37" East 2161 feet to a stake 2 x 4 inches, running thence South 000 23' 15" West 25 feet, thence running North 890 59 ' 37" West 2161 feet more or less to the Westerly boundary of said Section 16 , thence along said boundary North 000 23' 15" East 25 feet more or less to the point of beginning. PARCEL 2. BEGINNING at the Northwest corner of the J . Meyer property, which is the Northeast corner of the Desmond McCabe property; thence Easterly 3109 feet more or less along the line between the property of J . Meyer and Manuel Basta to Northeast corner of the property of J . Meyer; thence South 25 feet to a point; thence Westerly 3109 feet to a point; thence North 25 feet to the place of beginning . PARCEL 3. A portion of the Northwest Quarter of the Northwest Quarter of Section 22, Township 1 North, Range 3 East, MDB&M, described as follows: The 22 foot strip of land along the North side of Parcel "A" and "B" fronting on Balfour Road and the 22 foot strip of land along the West side of Parcels "A" and "C" fronting on Byron Highway shown as "22 FT. STRIP DEEDED TO CONTRA COSTA COUNTY" on the Parcel Map filed January 23, 1973, in Book 26 of Parcel Maps at Page 9 , Contra Costa County records. b i i i i I f 7 3- 1 1 2 CONTRA COOTA GO . AMEND . bw 3