HomeMy WebLinkAboutMINUTES - 11141995 - C76 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Richard J. Martinez,Executive Director
DATE: November 14, 1995
SUBJECT: RESOLUTION EXECUTING AN EXTENSION AND MODIFICATION OF OIL AND GAS
LEASE BETWEEN THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
AND FLEET OIL COMPANY FOR HOUSING AUTHORITY OWNED PROPERTY IN
BRENTWOOD
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
ADOPT Board Resolution No. 3765 AUTHORIZING the Executive Director of the Housing Authority of
the County of Contra Costa to execute a certain Extension and Modification of Oil and Gas Lease between the
Housing Authority of the County of Contra Costa and Fleet Oil Co., a California Corp. to acknowledge the change
in ownership of the lessee, by Mesne Assignment of record, and to extend the"working date"of the original lease.
II. FINANCIAL IMPACT: None.
III. REASONS FOR RECOMMENDATION/BACKGROUND
Pursuant to Board Resolution No. 3655, approved on September 22, 1992,the Housing Authority and Fleet
Oil Company entered into a subsurface Oil and Gas Lease and a Memorandum of Oil and Gas Lease for certain
Housing Authority owned property in Brentwood. Subsequently,Fleet Oil Company assigned the lease,by Mesne
Assignment of record,to its partners which are now collectively called"Lessee". The original Lease required that
the lessee commence drilling operations on the leased land on or before the"working date"which was defined as 3
years from the date of execution of the Lease. The Lessee anticipates that they will be able to start drilling within
the next year. The Lessee is,therefore, requesting that the Housing Authority extend the working date for an
additional 2 years, or for a-total of five(5)years. The Extension and Modification acknowledges the change in
ownership structure for the Lessee and changes the working date to five years from the date of execution for the
original Lease. All other terms of the Lease and the Memorandum stay the same. Staff is recommending that this
Extension and Modification of the Lease be effective as of September 21, 1995.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not to authorize the execution of the Extension and
Modification of Oil and Gas Lease,the lessee would not be able to drill nor provide the yearly compensation to the
Housing Authority.
CONTINUED ON ATTACHMENT: X YES SIGNATURE
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON November 14, 1995 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X —UNANIMOUS (ABSENT none ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTED November 14, 1995
PHIL BATCHELOR,CLERK OF
THE BOA OF COMMISSIONERS
AND CO Y ADMINISTRATOR
BY ,DEPUTY
THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO.3765
EXECUTING AN EXTENSION AND MODIFICATION OF AN OIL AND GAS LEASE BETWEEN THE HOUSING
AUTHORITY OF THE COUNTY OF CONTRA COSTA AND FLEET OIL COMPANY FOR
HOUSING AUTHORITY OWNED PROPERTY IN BRENTWOOD
WHEREAS, the Housing Authority of the County of Contra Costa(hereinafter referred to as"Housing Authority")is a public
body,corporate and politic established under the laws of California and empowered to own property;and
WHEREAS, the Housing Authority and Fleet Oil Company entered into a subsurface Oil and Gas Lease and a Memorandum of
Oil and Gas Lease,pursuant to Board Resolution No.3655,for Housing Authority owned property in Brentwood
described in Exhibit A attached herewith;and
WHEREAS, Fleet Oil Company subsequently assigned the lease,by Mesne Assignment of record,to its partners which are
now collectively called"Lessee";and
WHEREAS, the original Lease required that the Lessee commence drilling operations on the leased land on or before the
"working date"which,was defined as three(3)years from the date of execution of the Lease;and
WHEREAS, the Lessee anticipates that they will be able to start drilling within the next year and therefore requests that the
Housing Authority extend the working date for an additional two(2)years,or for a total of five(5)years;and
WHEREAS, an Extension and Modification of the Oil and Gas Lease,attached herewith as Exhibit B,delineates the change in
the ownership structure for the Lessee and changes the working date to five years from the date of execution of the
original Lease,all other terms and conditions of the Lease remaining the same;and
WHEREAS, the best interests of the Housing Authority would be served by authorizing and directing the Executive Director of
the Housing Authority to execute the Extension and Modification of the Oil and Gas Lease between the Housing
Authority and the Lessee:
NOW,THEREFORE,BE IT RESOLVED,as follows:
1. That the Board of Commissioners of the Housing Authority of the County of Contra Costa hereby authorizes
the Executive Director of the Housing Authority to execute that certain Extension and Modification of Oil and Gas Lease
between the Housing Authority and the Lessee for the Housing Authority property located in Brentwood and described in
Exhibit A attached.
2. That this resolution shall take effect immediately.
PASSED AND ADOPTED THIS 14 day of November , 19 9 5 ,by the following vote of the Commissioners:
AYES: Commissioners Rogers, Smith, DeSaulnier, Torlakson and Bishop
NOES: None
ABSENT: None
ABSTAIN: None
EXHIBIT "At'
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 '
081 , 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 ' 551 .East
788 .3 feet to point of beginning, containing 12 . 00 acres more of
less .
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f
Recording requested by and EXHIBIT "B"
when recorded mail to:
SUNSET EXPLORATION COMPANY
10500 Brentwood Blvd
Brentwood, California 94513
EXTENSION AND MODIFICATION OF OIL AND GAS LEASE
THIS AGREEMENT, made and entered into this 22nd day of September, 1995 by and between HOUSIN(
AUTHORITY OF THE COUNTY OF CONTRA COSTA, hereinafter called "Lessor" and WESTERN CONTINENTA
OPERATING COMPANY, a California Corporation; FLEET PROPERTIES a California General Partnership; FLEE
RUSSELL WHITE JR.; RONALD E.NUNN; SUNSET EXPLORATION COMPANY,a California General Partnershil
hereinafter collectively called "Lessee".
WITNESS ETH
Reference is made to that certain Oil and Gas Lease dated September 22,1992 and to the Short Form of identic:
date vouch short form.was recorded October 19,1992 as Instrument 92-275715 in Book 17946, page 754,Official Recorc
of Contra Costa County, California, covering the real property situated in said County and State, more particularl
described therein.
WIJEREAS the parties hereto desire to modify the working date of the aforesaid Oil and Gas lease set fort
herein.
WHEREAS by Mesne Assignment of record, Lessee is now the owner and holder of foresaid Oil, Gas an
Mineral Lease.
NOW THEREFORE, for good and valuable consideration, Lessor and Lessee agree as follows:
1. Said Oil and Gas Lease is hereby amended by deleting the word and figure "three (3)" in Paragrap
1 on Page 1 and inserting in lieu thereof the word and figure "five" (5).
2. Lessor hereby leases to Lessee the real property described in said Oil and Gas Lease and short for]
thereof for the term as extended herein and for the purposes and on the terms and conditions set forth in said. Oil an
Gas Lease.
3. All rents provided to be paid under said Oil and Gas lease have been paid to date hereof, and n
default or defaults exist thereul.der and said Oil and Gas Lease hereby expressly is ratified, approved and confirme
and declared to be in good standing,and as herein modified,all tenns and provisions thereof shall inure to the benef
of and be binding upon the heirs, executors, administrators, successors and assigns of the respective parties hereto.
IN WITNL-SS IVIIEREOF, this agreement has been executed as of the day and year first above written.
LESSOR LESSEE
1 l
MOUSING AUTHORITY OF THE COUNTY WESTERN CONTINENTAL OPERATING COMPAN
OF CONTRA COSTA
By By
Chair, Board of Commissioners George R. I_aPerle, President
Extension &Modification of Oil & Gas Lease
Housing Authority of the CCC
Page 2
FLEET PROPERTIES
By
Fleet Russell White,Jr.
Fleet Russell White, Jr.
Ronald E.
SUNSPT E, �O
f
B1
Y '
Robe E. Nunn