HomeMy WebLinkAboutPacific Basin Development Company - 1947-05-09 a
d
h. Y
.. . ..,Lr , .rl.., .Y�.'".'i.,ti 4.t;2. ..i:'. .te 4'1't'..-•'+.:. ti +;)ci'" ..YA t, 1rhT' 1 yd +.rh {..a,.. ,.+ •.`,;,. ;; ef` j.T'f��.
•"I'. i K ?.'/. ..1+ +r i'..i tF 't'. 'kt'ti_1Y 4` �'. �:r1Y >, w„ t•r5
i
.1
�1
THIS AGREEMENT made and entered in'
as. of tAe
of Ysy, 1947, by and between PACIFIC -BASIN DEVELt}PiO1T
ssevada corporation, hereinafter called First Party. and the
City of Huntington Beach, a t�,atil cipal .corpo.y�:tion, . here inaf ter
called Second Party, witnesseih. that:
WHEREAS, Fir fit Party is the owner o`'. William Gerard Cer-
tificate X . 2$ Subdivision No. 5, lsaued. Lander Act of Congress �
of .April. 18, 1855 (10 Stat 849) , entitling the owner thereof to
select and locate 40 acres of publie' land without restriction as
�. t; the kind and character;. and.
WHFMFAS there. exists a. large body of nunlic land lying �
' . WIthin and adjacent to the said City and oceanward from the line '
? of mean low t:1.de in which are bot'�oned. numerous oil yells drilled
from upland.e within said Olty, said public 1anz being within r
the area bounded by a line runi-.ing as follows :
Commencizig at t moint of intersection of the pro-
ection South.o Yee center line of Ninth street In
J n 1
the City of HLintington B _ ch.� vith the line of mean '
} ' low tide ; 'thence Sout3, 1 strafe. line along, said
1. f t� . t
projection of ►paid center line oa Ninth retreat approxi-
t► '- e io f 'said r�etiel, three mAlee to the poinet, nter ect n o
r line with the line of the Sout�h,�C, itSr L mita of said
1�1Cityy of Hunti _tar Be�ac7;1; . th 9 'xh s aRo:�.; said line
• r the S t' ..� m t�3 f id�Cf-t * t h� oro ection
a to ou y i o as 3n ,,,. J
of said. fin Wes;, a point 5000 fee�st 'oi the"
j Southwest o"�rner of riald. City Wa
r etace Nort. frc,ri
said pint , in a straight 11n� ' w the ±i z�•--
i t4;3,4�E;4-44F 4,1e-1-t4.�-4f:--eLg-t4 Q!yv,. to the -w. Mkt of irster-
i zection with the Une of ;dean low tide; . tTtti"East �
x aloix ; said l±ne of ;jean loco tide to the point of
beginning; Luid
Wi?k1REAS, Second PEwty deairee to acquire tin oil lease from
the united states Gover-i en" on said lands o:o title to as much
thereof as possible;` mid
WHEREAS , First party desires to obtain a dependable source
of oil Supply,
` + THEREFORE,
NOW EREFORE, in consideration of the premises and of
t
the covenants of the respective pexties herein set, fortis,
IT IS AOIREED ae follovr9:
FIRST: First Party will :
' (A) Transfer to Second Party said
t Certificate of Gerald Scrip for the '
;j
.' purposes of this agreement; t
f (8 ) Pay the expense o`.' locating said
certifir:nte an hereinafter -provided arcl
1 •fit
,.�� rxs+r +l�sr++tm�-rresl:s«nr�rr.+rt1!��!rrr��o*�-�s�smxe+r�ru+xt�--ter.-aa�atrxc»uzser�s:etr�a: ,,�_�armu�or.*esrssa.+net»vr+�7s�raeas:rt+se�n�ss_�
Y
i
a.
z
i
of assisting; the Second Party In
either obt, nine, a pa►ent to the lands '
unon which said certificate is located
�. )r obtaining; an oil lease from t he United
States Gov r rm:icnt upon the lands herein-
above described. or so much thereof ss may a
■
be so leased.;
(C ) Proceed as soon a.s prs.ctieal with the
dr_1.1ing, s.t its own expense , of oil yells 4
a unon lands covered by s ?i r! scrip location, '
ns co, t,,,)..ctor for Second Party, 7.o herein-
ill after provided andu thereafter proceed.,
;, +a
z Pt its own ex-pEnFe, ��it?� the 0111gent pro-
duction of oil and &as from such yells ;
(D) ::,nke the oayruente out of the proceeds
of nroduc uion from ttrells drilled by First,
Party i.s provided in Subd Lvision (A ) of'
THDRD Here-of;
( ) HolC. Second. Party hai.^mlese of fnc.
from ny and all claims for labor Pnd/or
mRterial.s or c.ther expe:rise P,riaine in
connection with the drill!.-IC, of said wells .
SL;.00IID : Second PP.rty will :
` (A) ll_thl.n ten days cause sP.in Certiflonte
of Gerard Scrip tr, be located upon such
portion a* portions of the lands here inabove
' desczla.bed as s vIl hereafter be deaJ nated.
by the Cicy Attorney of Second Party and be
approved by First Party and therenfttir co-
operate fully in prosecuting; said location
r rind in nefotiating for an oil lease from
the nited States G.i America tc Seconc=. Party
on said l,gnds hereinabove described on terries
K Fig least P.s favorable: as these in the fnrL
of lease published in Section 192. 28 of
Title C3 of the Code of Federal Regulat+.ons
k and., upon agreement being; reached for Pxiy
such least: , to promptly execute the snnle;
�.; (S ) i:: t;ie event of a lease being -IxEcutMd
by the United SL'ates of America r,' Second
Party , or in the event saw6 scrip certifl-
cn..te should be rri l;hdraviii f roral f il'ng with
4 Lhc United States by mutu.Ul agreement of the
A pasties or in the event the Mink; pna.
location of said scrio should be finally
rejected. by the United States Govern-mint ,
then in any of ae.id events said cer; if icate
k of Gerard. Scrip s:A=a 1. b-- :ra:isferrw-.d by
Second Party to First Party and redelivered
to First Pa.-ty "?nd Seconc. Ps.rty *,iill :promptly
so trarnefer and redellver the samie ;
� � r
r
t
2.
�' r...w..•�."•7�'!'!P!+���+^T.+^7.f++!+: :'+.f�'+rk"!+�. r� N'L�'[1'tt'i`.f'h!!lrt..^ltt�rlY�St ITy""�'!!"'xtf•.1�`t!w;9e.'T!t!t'N"NtaeYll:7s�i YS.tltt!+..A.
}
r
1
s
J.
t
• s • r
(C) Authorize , a-nd does hereby authorize,
• :, .�- First Party, as soon as i,t deems practical ,
}' as contractor for Second Party to drill
vells for the production of oil and gas �
upon the landss covered by said scrip loeption
an4. in the evert of the execution of an oil.
lease by the United States of Atrerica to
Second Party then also to drill upon such.
` portions of the lands so leased uo Second
♦ ,+',
Tarty asFirst Party shall deem advisable ;
4' ;D ) Promptly upon execution of an oil lenne
between the United Staten and Second Party ,
" Second party will enter »pore negotiations
V,rith "hose no- producing oil from said lamds
i'ur subleasing; to then those portlons --)f acid
lands novi occup'Led by ,velle drilled or
a-aerated 'by them on. a basis which will provide
for payment to Second. Party of all vioneys
necessary to pay to the United States all
royal.— �� vrA.L L i.s entitled t it l ed under Its
s` said lease , from salt] :,tells , and in addition
royalties to Second 'Party of not less than
ten per cent (1Q' ) of the production from
said wells , all of said royalties to be
payable in kind and said subleases to be
In4 form and substance corformAMr; to the
form of lease published in sold. Section
192,208 of Title 43 C.F,R. , hereina,bove referred
to except as hereina,bove orovided tiz -tt it
Ella].? be modified in substance;
r
f
. (E ) PF,y to First Party ss part conslilertation
for the use of said Gerard Scrip and. its other
covens.ats iiereunder, pane-half of a3.1 royalties `
received by Second Party resulting frClm the
negotiations mentioned in Subdivision (D )
above of this Article SECC117D and tu-ider said.
subleases or undo- or by virtue of said sub--
leases except the portion of said .oyv_lt.1es
is payable by Second, Party to the Unit;;d
St,nten
(F ) sell to F12 Fit Party -tl royalty oil derived
`�. by it front any source at the nrevEalling; market
price panted. or published by the panted. " Oil
of California, for that are, ; and use its best
enderv��r to arrange to retain for this rurpose
i t'_ie oll which the United Sta.;:ea nJZht ta1ce
f as royalty imoler its lease.
THIRD: This agreement is intended to be , and s*Aali be
i carlatruee3 n.s , In pns,t a dril' inj; r--nd operating agreement
ray snA between Second, Party &�! owner Fu-id First Pt rty as
y � contractor and it is r11'�.1tur-lly :-reed a,;-
'1
(A) F,,t In conr3ld.-ratlon of First Par-Loy' s
providing said Gerard Certificate end. bearing;
the exnenses mentioned in this aC.rPement , First.
i
,
•� ... rn+++r+�rn--+-�*�rr�r.«,.....-..,,+.+.,.....,..+.......r.,.�y.s+,t„�,,*+,snme -sr,rcx�s-nr.:rwtsmc:+serrxcrre.� . _ rasa-�.,s'nr���tssr_� nyrsnwrs�anxsatrer�cs�rer�x
r
t
t
' Party, as contractor- of second Party shP11 L-lave
the right to retain all of the production from
dells drilled by First Part,, by making paymenus
as follows:
(1) In the event Secon�° Party obtains a lease
2 frorr, the United States uhen by payin-- to Second
Peaty five per cent (5% t of the market -,rice of
production saved and- sold from said. we lie, based
on the market urlce posted or published. by the
Standard. Gil Company of California for that area,
and in addition pay in j; tc. Second. Pr-xty or to the
ullLtee Sua:t?s , as .may be agreed., the ar"�ount of
�y money necessary to pay the royp.liy providers "or
in such lease on production from wells drilled
by F1rst; Party on the leased area.; or
� ..; (2) In the event said drilling by First Party
Is on lands upon which said scrip is located an-,
not on l.�ands under lease from the United States ,
then by paying to Second. Party twenty per rent
(20%) of the mrutket price of the production saved
a.nc? sold from said ells , determined as herein-
above provided, which payments shall be in lieu
of tie psyrrents provided. in parar,ranh (1 ) of
this Subd.ivi Sion (A) .
t1.11 edict ���=}'%1Frnun by Second Party shall be made an or before
the 1LIPt1l of each mon,h for 'the preceding calendar .,nonth,
a (B ) 1llAt the words "oil" and ttr)roJ.uct:ionrt as used
herelt� et•+en includes oil, ;Ps and o;;izer hydrocarbon
' substances .
(C ) Each of the parties ;lereby nrLreee to duly
exeout'e , promptly upon &mand. of the other, any �
end. all vapers, instru—nente or docu-mente necessary
or convenlent to the conswnma.tion of the oro�;ral�
cf�:zter�lplc.t<.yd by this agreement cr to ff site uY�i.a
s ; ; agreement fully effectIve,
(n ) This ,.r ee,yen t sh,a11 int;2 e to the benefit of ,
anrll shall bind , respectivelf, First Party rand its
s succeseors rand asaig71e , and Second Party.
�.
:i?I ►trI'�P3�;SS t-�:;t,iiEC�F' the parties hereto execute this agreel;len.t.
f i STATE OF CALIFORNIA, f ,
+n SS,
County of Los Angeles
t O%t Tw 9th -_.-fay of Ma _, A.D., 19-AZ, before err,
} a Notary Public in and for said County and State, personally appeared
----- �--�-a -GAU F, known to me to be the
President.and__.__�L�� _�-� ,. R known rn me to he the
I ASS-LL.,Secrtrary of the _..PO.�.0 pASIN D�ELOPNfLN : ��04
4'
t the Corporation that executed the within Imtrument, known to rre to be the persons who
` executed the within !mtrument, on behef of the Corporation herein Wa ned, and acknowledged
' to me that surh Corporation executed the same, v
IN WrNEss WiiEREor, I haer he•euntn set -. h. nd and atfixrd y fAcial oral the day and
&-Par in this «rtiRrate krsr about u•rst en,
,
f'
Notary 1 uhtir in and or laid Count, and Stair.
�� l.(tr.fltfStGG Gt ![tY uK. :•�~
ACKNn1YLEDtRME.17—Con-.--pet6. t! 5sc , L. A. Co.—WOLCOTr! FORH 229
' ,�1 TF1�'<tCttt+••t•�••r'n+w^t'T!K'x'tu^' -. . . .. .._... .. _ �. 1* T•LKT"R117L'IEt'tL"TlA��'!l]lYR1"'C"NSS'!G"a':M4'R!'�'+r±,4!'SB.'MSYt .�. _irtow+...•+•.w,.r..�..w+w..wi .�
4
,e
1
C
t
Party , as cor_traozor• of Second Party shall have
the right to retain all of the Production from
velle drilled by First Party by naking payments
' as follows :
(1 ) In the event Second Party obtains a. lease
from the Uni'teca. Suites then by p��.y int to Second
Party five per cent (5% ) of the r,3arlyet price of
i production saved F-21n sold fx•or,I said wells , based
on ,lie market price nested or published by the
Stazida,rd. Oil Company of California for that a.ree.,
and in addition prying 'to Second PtLrty or to the
U11. ;e Lft 69 , R o Ri ae . ;reed., the mount of
; oney necessary to pay the royplty provided for
in such lease on production from :hells drilled
by First Part;; on the leaved area; or
(^) In the event said drilling by First Party
Is on lands upon which said scrip is located an
not on lands under lease from One Unite6 Ststo
t:-.en la;t payinE to Second Party tvienty per cent
(20 5) of the market" price of the production saved. �
r nc:. sold f2'rJI1 said v:ella , determined as herein-
" ,i'oove provided, willch pay- ents shall be in lieu
of tale payments ;crovlO.ed. in pa.ra.#'raph (1 ) of
"218 Subdivision' (Ai .
All salO Payments by Secon(l Party shell be made on or before
x
the 15th of eaca month for t he price iing calendar month. ,
F (B ) '+•hat the worcls "oil" fuid uoroduction" as used
:1erein each includes oil , c�as 411a other hydrocarbon
"
substr:•lc�:s .
(C ) Each of the oalrtierj liereb,y aCrees to duly �
execute , promptly upon demand of the other, eny �
and all papers , instru.;!ents or docunj ente necessa?•y
or convenient to the consum;ii Lion of the progrnm
cintempl.;;,ted by this agreement or to mvke this
#, �;�;r��e��,ent fully ef.i'ec ve. i
r
(D) This aureement shal1 inure to the benefit of ,
anfl shall bind, respectively, First Party an:) its
succesecre and assigns , and Second Party. ,r
Ili WIC HESS W!- N.ECF the parties lie.^eto execute thiE sgreer,ent
".i►e day and year first -above mentioned by their officers duly aut;lorized.
PACIFIC BASIN DEVELOP:'..*ENT CO. , First: Par•;;y,
By
Att(3E?`v : PTesidellt
t
(C":�.PCF,hTE Sri 1
VAA1 S e c r e u R 2'y .
Cs:i1' vF :i��i'.'1�1GTGi1 BI;AC i, Second Pnri";j,
7� r
Atte
' v : . ,/
S:F:yor
City Clerl= • SE `
( `;1 `:F CITY)
l')
%2.
46
s' ---+e--,r-t+ `„+�-�»� -*�++ere�r+nr•Y'Yw. rst+ s: ttntre azrrttr:a Mosel rrn:rc.e�x++W��r!rser z urrnni "-- �Mtr2
i