Loading...
HomeMy WebLinkAboutXTRA ENERGY CORPORATION Subsurface Oil & Gas Lease Downtown Area 1982-1983 - 1982-01-01XTRA ENERGY CORPORATION 717 WALTON STREET SIGNAL HILL. CALIFORNIA 90806 TELEPHONES: (213) 424-8549 OR (213) 426-9467 JOHN D. CARMICHAEL VICE PRESIDENT PACIFIC OPERATIONS Xtra Energy Corporation plans to unitize an area of approximately 200 acres in the Huntington Beach townlot area. This area will then be developed on a pattern of approximately 10 acres per well with the intent of initiating a waterflood in the middle and lower Bolsa zones. All drilling will be done from a central drill site to minimize the environmental impact on the residents of the area. It might be noted that the waterfloods in the Los Angeles Basin have historically yielded as much oil as has been produced by primary means of production. That is, if 1,000,000/bbls of oil can be produced from a field by primary means, it may be expected than an additional 1,000,000 bbls can be recovered with a waterflood program. Xtra Energy Corporation is now actively developing an area in the townlot portion of the City of Carson from two central drill sites. The company is familiar with townlot development and is sensitive to the concerns of the residents in the nearby homes. JDC:sc 6-18-82 i • XTRA ENERGY CORPORATION 717 WALTON STREET SIGNAL HILL. CALIFORNIA 90806 TELEPHONES: (213) 424-8549 OR (213) 426-9467 JOHN D. CARMICHAEL VICE PRESIDENT PACIFIC OPERATIONS Xtra Energy Corporation was formed in 1980 as a subsidiary of Production Operators, Inc. (POI). POI is a highly successful service company that, for 21 years, has specialized in handling complex and difficult compression and gas handling problems for oil and gas producers. Since the mid-1970's, POI has been increasingly involved in enhanced recovery projects and production operations. The attached annual report provides further information on POI. Xtra was formed to utilize POI's acquired skills in engineering and operation in the development of company -owned production, particularly difficult production requiring secondary and enhanced recovery methods. The company owns the Ranger Carriers CO2 pipeline system, which is delivering CO2 to Long Beach Oil Development Company for injection into oil reservoirs in the Los Angeles Basin. This $9,000,000 system has capacity to deliver approximately 20 MMSCFD of CO2 at a pressure of 1600 psig. Additionally, Xtra is the managing general partner of Wilmington Tertiary Ventures, Ltd., a partnership formed for the development of an oil property in the North Flank of the Wilmington, California Field. It is planned to utilize the Ranger Carriers System to deliver CO2 for injection into that field. The company is currently working on the development of other fields in California and Louisiana. The management and financial base of Production Operators, along with the capabilities of Xtra's management and operations staff, provide a solid foundation for future success. Resume's of several of Xtra's personnel are attached. For more information regarding our company, please contact Mr. Thomas Little, telephone (213) 424-8549. TLL:sc Attachments 6-16-82 BIOGRAPHICAL PROFILES Doyle D. Seifert, President of Xtra Energy Corporation. Following graduation from Tulsa University in 1952 with a degree in Petroleum Engineering, Mr. Seifert was employed by The California Company (a SOCAL subsidiary) in the Rocky Mountain Area. Mr. Seifert subsequently joined Franco Wyoming Oil Co. as Division Production Manager for the Rocky Mountains and later for the Pacific Coast Area and in 1964 accepted a position with U. S. Oil & Refining Co. (Los Angeles) as Vice President, Production and Exploration. In 1969, he initiated the industry's first field -wide immiscible carbon dioxide injection crude oil recovery project at Ritchie Field near E1 Dorado, Arkansas and following that successful recovery project, implemented a joint venture with Phillips Petroleum Company to develop and explot the Lick Creek Meakin Sand Unit immiscible carbon dioxide enhanced recovery project. In 1980, Mr. Seifert formed (with Production Operators, Inc.) Xtra Energy Corporation and is a principle of that firm. John D. Carmichael, Vice President, Pacific Operations of Xtra Energy Corporation. After receiving a degree in Petroleum Engineering from University of Southern California in 1950, Mr. Carmichael served as Production Superintendent for Terminal Drilling Co. in the Los Angeles Basin. Subsequently he served for many years as Eastern Venezuela District Production Manager of the Mene Grande Oil Company (a Gulf Oil subsidiary). After managing a local drilling company in Venezuela for approximately four years, Mr. Carmichael returned to the Los Angeles area and joined the City of Long Beach Department of Oil Properties. During nine years with the Department of Oil Properties, he was intimately involved in all drilling production, secondary and tertiary recovery projects associated with the City of Long Beach and the State of California tidelands properties. As Manager of Production and Engineering for the Department of Oil Properties, he coordinated and administered operations of the City oil production contractors, Long Beach Oil Development Company, THUMS Long Beach Company and Powerine Oil Co. In mid 1981, Mr. Carmichael joined Xtra Energy Corporation and is directing the development and exploitation of the Company's California properties. Thomas L. Little, Vice President, Project Development of Xtra Energy Corporation. Following graduation from the University of Texas in 1969 with a degree in Mechanical Engineering, Mr. Little was employed by Humble Oil b Refining Company (now Exxon) in their Industrial Sales Department. In 1971, Mr. Little joined Production Operators, Inc. where he served in management capacities in operations, engineering and marketing. In 1980, Mr. Little was named a Vice President of Production Operators. Joining Xtra Energy in 1981, he has assisted in the development of the Ranger Carriers CO2 pipeline distribution system and the evaluation and development of other Company projects in California and Louisiana. /sc 6-16-82 LONG BEACH PRESS TELEGiM — SUNDAY JANUARY 16, 1983 JIM ROBINSON, editor Water N E ram. ... �. Oil, gas and water separated after,removal from ground Al k,-Ir ���-� .;- `�....�J�li/j:�'.�.:��-.% ✓r �.,..�. ... .rot i:.4'!y �'✓: /a}'P: � �Si �r'��':!.'"fd•;V� ,�•,,,.j,:�•r{•`,;.'/g�; 4J.��..a°�f..o ��L.o:p�,o. :d1•�.� �'. -a/� �� 17°'..yy{�., °i..o D• .ir � c,'AridfJj' •'� ;'i 11 Gas i Water Gas \/ ,, UVatur v I �1 Oil pool PRESS-TELEGRAM/Mark INW.1"n THIS ILLUSTRATION ;outlines how the city's CO2 recovery a buffer, is forced through the oil reservoir by the high-pressure . system works.. The CO2 gas, upper left, is injected Into the gas, which in turn both "swells" the crude and forces it toward ground in alternate succession with water. The water, acting as nearby producing wells. ,._° q/f )11� k .Bu. hopes to pump new life info oil field By Gregory W. Griggs in the project was a former waste more than $3 million for the CO2 the thick crude and allow it to Staff writer product of a hydrogenation unit - project. Under the program the flow more easily to producing n a move to extend the life of at the Texaco refinery at Alameda city was allowed to sell 182,540 wells for extraction. St. and Pacific Coast Highway. barrels of oil, which had been reg- Accordin to a 1974 ublics- the Wilmington oil field, g P John D. Carmichael, vice preai ulated into slower -tier price cote - Long Beach Oil Develop= tion of the Interstate Oil Compact ment Co. is experimenting'. dent of Pacific operations for gory of $7 a barrel, at the market Commission, "Secondary and Xtra Energy, says about 19 mil- price of about $25 a barrel and Tertiary Oil Recovery Processes," with two pilot projects that may eventually unearth up to 15 mil-; . lion cubic feet a day of the non reinvest the difference in the CO2 a steam injection system has the lion barrels sotto oil. polluting gas byproduct — com- recovery project. abililty to greatly improve the posed of about 85 percent CO2 Recovery enhancement amount of oil that can be recov- The city's onshore oil develop- and 14 percent nitrogen — was . projects are nothing new to the ered. er and a firm called Xtra Energy previously allowed to escape into city. In an attempt to fight sub - Corp. have invested more than the atmosphere. sidence — the sinking of land as "OIL RECOVERY by a steam- $20 million and $10 million re- underground oil is removed — flood averages about 40 percent. spectively to build a system for HYDROGENATION is the pro- Long Beach began pumping water ranging from 35 to 50 percent in injecting carbon dioxide (CO2) cess of adding hydrogen to low- into the underground reservoir in reservoirs where the primary re - into the oil reservoir below the grade crude to raise it to a higher May 1953. covery is 2-12 percent of the ini- city to increase production by an grade and produce a higher yield In addition to arresting, the tial oil in place,' according to the additional 15 percent to 17 per- of gasoline and diesel fuel, Carmi- sinking of parts of the city — commission's publication. cent. chael explains. which by 1960 had caused some However, the city's Garrison Xtra purchases the CO2 from $90 million in damage, threatened And the city,, alone,, has em- says the development company is barked on a amaller•scale project-" Texaco, boosts its pressure to property valued at more than less optimistic about the potential using a steam generator hundreds `1600 pounds per square inch at $600 million and put the future of success m the steam project for of feet underground. It hopes to its $10 million compressor station the Naval Shipyard in jeopardy the Wilmington oil field and is and pipes it to Lon Beach Oil — the water injection greatly in- ' increase oil recovery by up to an Development Co.'s pipeline junc- creased the amount of oil extract- Projecting additional recovery of additional percent. only 17 to 20 percent because of tion in the port area, from where ed. Both projects are part of the it's sent to the injection wells. Xtra Energy's Carmichael, who Previous water flooding. city's third -phase, or tertiary, oil The development company is is also the current president of the When the CO2 and steam pro - recovery plan. Drilling a well and under contract to purchase 7.5 Long Beach Petroleum Club, says cesses are combined, Garrison extracting oil under its -own billion cubic feet from Xtra En- industry people joke that water says, an estimated 15 million bar - pressure is considered primary ergy over the life of a two-year injection was a program in which rels of extra oil can be realized drilling, and, in :Long Beach's contract at $2.20 per million cubic the city tied down the oil compa- from the city's portion of the tar case, the injection of ocean water feet, Carmichael says. nies and forced money into their zone over the life of its develop - into the ground to halt subsidence During that period, the city es- pockets. ment. is a secondary recovery process. timates it will recover approxi- Nonetheless, Garrison is cau- William H. Garrison, the devel mately 3.5 million barrels of oil LONG BEACH OIL Develop- tious in his appraisal of the en- opment company's manager of en- that it couldn't have obtained ment's other enhanced recovery chanced recovery systems and gineering, says the 10-month-old without the CO2 process. project — the injection of steam says the city is awaiting final re - system pumps.an average of 1,400 The potential of the CO2 pro- into the oil reservoir — was begun sults. million cubic feet of CO2 under cess, which has been around for last October on a much smaller "In the steam project we still high pressureAnto the ground some 30 years, is such that Xtra • .scale and is projected to produce a have to prove that a downhole daily. The CO2 mixes with the oil Energy is planning to inject the further 200,000 barrels of oil over steam generator is a process that: to "swell" it -and reduce its thick gas into the reservoir under its the next five years. can be expanded to a large scale," news, or viscosity, allowing the oil; own 27 local wells in the next few An expansion of an earlier pilot Garrison says. "The reason for to move more freely toward the months, Carmichael says. He says project co -sponsored by Long this is that technology is still very producing wells, where it's ex- the firm is planningg to expand to Beach and the federal govern- young and there are obviously tracted. 50 wells using the CO2 process by ment, the steam injection system some problems that will have to the end of the year. uses one of the first subterranean be overcome, namely the long - EIGHT INJECTION WELLS al- "Now we're getting 10 to 15 steam generators of its Size, pro- term running of a generator ternate between pumping water, barrels of oil per day, per well on ducing 1,700 pounds per square downhole. and CO2 referred to as a water primary recovery,' Carmichael inch of pressure. "In the CO2 project, the recov- and gas, or WAG, process — into says. "We hope they'll getup to Rather than sending steam ery process itself has yet to be a portion of the city's uppermost 50 barrels when they use .the down a well shaft, and suffering a proven in this field and we hope oil reservoir, known as the tar CO2." loss of pressure due to friction, to be able to have a handle on zone, to drive the crude to 40 pro- A Department of Energy en the Long Beach Oil system sends that within the next year. We ducing wells, hanced oil recovery incentive pro- a cylindrical, natural gas -powered should know whether or not this The water is used as a stabiliz- gram begun in 1980 allowed Long generator down the well shaft, would be a feasible project to ex- er to push the oil. The CO2 used Beach Oil Development to raise where it creates steam to "melt" pand." Contract Representative Xtr*rgy Corporation h L WILLIAM O. BRIGGS JR. y / (714) 645-7114 419 Main St., # 157 Huntington Beach, CA 92648 6/13/83 H. Diane Border Assistant Planner City of Huntington Beach 2000 Main St. Huntington Beach, Calif. 92648 Dear Diane: Enclosed herewith are three originals of the Xtra Energy Corporation Subsurface Oil and Gas Lease as to the mineral rights owned by the City of Huntington Beach, said lease having been approved for execution by the City by the City Council on the night of June 6, 1983 Each of these three originals has been executed by Xtra Energy Corporation, said execution and acknowledgment thereof being on page 5. The original Lessor's Signature Page is next attached with reference thereon to "Exhibit All as to the description of the parcels being leased, and additional reference thereon to "Signature Page 2" such page being the separate page for the actual signatures of the City officials (due to lack of sufficient space for same on the original Lessor's Signature Page). The last page is said "Exhibit A." The City officials are to affix their respective signatures on each of the three "Lessor'sSignature Page Z" with notarial acknowledgment on each as to the Mayor's and City Clerk's signatures, the acknowledgment form being near the bottom of each of said signature pages. Additionally, either the Mayor or the City Clerk is to affix initials on the bottom of Exhibit A and in the space near where "five" and "5" has been inserted for "ten" and 111.0" in paragraph three, page one of the lease (this being the change of the Primary Term of the lease from ten to five years). As I understand it, you are to attend to getting the signatures of the City Attorney and City Administrator and the City Clerk's office is to attend to getting the signatures and notarial acknowledgments as to the Mayor and City Clerk. Upon completion of this execution of these three originals by the City, please inform me and I will then hand deliver the check for the first rental consideration, and pick up two of these three originals, one being for recording in Orange County and one being for Xtra's records. The remaining third original is for the City records. Thani: you. Cordially yours, 1 �,;; .�� `William 0. Briggs Jr-ll P.S. We need the Federal Tax ID # of the City; please just have It noted on a seprate piece of paper for me to pick up with the executed lease forms. Thanks. WHEN. RECORDED MAIL TO: SPACE ABOVE THIS LINE FOR RECORDER'S USE THIS LEASE, made as of the 6th, day of 4111ne . 1983by and between the parties whose names are subscribed hereto as Lessor on the Signature Page attached hereto, hereinafter called "Lessor (whether one or more), and Xtra Energy Corporation, a corporation, hereinafter called "Lessee". WUNESSE'TH 1. The lands covered by this lease are all that portion lying below five hundred feet (500') from the surface of the land described on the Lessor's Signature Page attached hereto and is hereinafter referred to as the "leased land". Not withstanding any provision to the contrary contained herein, this lease and all rights granted to Lessee hereunder are expressly limited to those depths lying below five hundred feet (500') from the surface of the land described on the Lessor's Signature Page, and Lessee shall not have the right to enter upon or use the surface of such land lying above said depth. 2. Lessor, for and in consideration of the sum of One Dollar ($1.00) and of other valuable consideration in hand paid, the receipt and adequacy of which is hereby acknowledged, and of the covenants and agreements hereinafter contained on the part of Lessee to be kept and performed, does hereby let, demise and lease unto Lessee, its successors and assigns the leased land now owned or hereafter acquired by Lessor, by operations of law or otherwise, with the exclusive and sole right to prospect, explore, mine, drill and operate the leased land for oil, gas, and other hydrocarbon substances, hereinafter referred to as "said substances", and to pro- duce, take, treat, store, remove and to dispose of said substances from the leased land, and the right to inject into the leased land, gas, steam, water, salt water or other fluids for purposes of pressure maintenance or secondary and tertiary recovery of said substances from the leased land and the right to conduct secondary and tertiary recovery operations, together with all other rights necessary or convenient for any and all of said purposes including, but not limited to subsurface rights of way for drilling, repairing, redrilling, deepening, maintaining, operating, abandoning, reworking and removing wells, into anough said leased lands, and such other necessary subsurface easements in and through the leased lands. five (5) 3. This lease, except as otherwise herein provided, shall remain in force for a term of ten W] years from the date hereof and for so long thereafter as said substances shall be produced from the leased land, or land with which the leased land may be pooled, or a unitized area in quantities deemed paying by Lessee, or so long as Lessee shall conduct drilling operations (including, but not limited to, drilling, deepening, plugging back, redrilling, repairing, cleaning out and similar operations) on the leased land or lands with which the leased land may be pooled, or shall be excused therefrom as hereinafter set forth. Commencing at the end of the second year of the term hereof if Lessee has not theretofore commenced drilling operations on said lands, lands pooled therewith, or within the unitized area, or established production of oil, gas or other substances from said lands or lands pooled therewith, or within the unitized area, Lessee shall pay or tender annually in advance, to Lessor, as rental, an amount equal to the amount paid as specified on Lessor's Signature Page, which payment or tender shall operate as rental and as consideration for deferring the commencement of drilling operations for a period of one (1) year from and after the expiration of that period for which an advance rental has been paid. In like manner and upon like payments or tenders, the commencement of drilling operations may be further deferred for like periods successively within the term hereof. The consideration paid for this lease covers all rentals for the first two (2) years of the term hereof. 4. The expression "royalty share" as used hereinafter shall mean the fraction one -sixth (1/6) and all royalties shall be payable on a quarterly basis not later than the last day of January, April, July and October of each calendar year for the preceding calendar quarters ending December 31, March 31, June 30 and September 30, respectively. 5. Lessee shall pay to Lessor as royalty on oil the royalty share of all oil produced, saved and removed form the leased land. Lessee may purchase Lessor's royalty oil at the public posted market price currently offered and paid in the field on which the leased land is located for oil of like gravity and quality the day the oil is removed from gauging tanks. In the event there is no such public posted market price, Lessee may purchase Lessor's royalty oil at the same price the company or companies purchasing the majority of the oil in the field in which the leased land is located shall be paying for crude oil of like gravity and quality. In the event Lessee shall treat the oil produced for the purpose of making the same marketable, Lessor shall bear his royalty share, of the cost of treating such oil and for disposing of water or other waste materials by Lessee, which Lessee may deduct from any payments due Lessor. In determining the gravity, quality and quantity of oil purchased, the methods and practices including metering which are usual and customary among major oil purchasing companies shall be followed. The customary temperature corrections and deductions for in- jected oil, water and other substances shall be made. 6. In case of sale by Lessee of gaswuced from said leased land in the natural stw produced, Lessee shall pay Lessor in cash the royalty share of the net proceeds of such sale received by Lessee. In case gas produced from said leased land is utilized by Lessee (in excess of the amount herein allowed to be used by Lessee free of royalty) in the natural state as produced, Lessee shall pay Lessor in cash the royalty share of the market value of the gas so utilized. In case Lessee delivers such gas to a third party for treat- ment, Lessee shall pay Lessor in cash (a) the royalty share of the market value of the net natural gasoline and/or net other liquefied petroleum gases redelivered to Lessee and utilized by Lessee (in excess of the amount herein allowed to be used by Lessee free of royalty) and (b) the royalty share of any net proceeds received by Lessee from the sale of natural gasoline and/or other liquefied petroleum gases redelivered after deducting the royalty share of the cost of delivery for sale and (c) the royalty share of any net pro- ceeds received by Lessee from the sale of residual dry gas redelivered to Lessee and (d) the royalty share of the market value of residual dry gas redelivered to Lessee and utilized by Lessee (in excess of the amount herein allowed to be used by Lessee free of royalty). In case Lessee shall extract in its own plant or facility on said leased land or elsewhere natural gasoline and/or other liquefied petroleum gases from the gas produced from said leased land, Lessee shall pay Lessor in cash as royalty (a) the royalty share of 40% of the market value of the net natural gasoline and/or net other liquefied petroleum gases so extracted and utilized by Lessee (in excess of the amount herein allowed to be used by Lessee free of royalty) and (b) the royalty share of 40010 of any net pro- ceeds received by Lessee from the sale of the net natural gasoline and/or other net liquefied petroleum gases so extracted and sold by Lessee after deducting the royalty share of the cost of delivery for sale and (c) the royalty share of 60% of any net proceeds received by Lessee from the sale of residual dry gas and (d) the royalty share of 60% of the market value of residual dry gas utilized by Lessee (in excess of the amount herein allowed to be used by Lessee free of royalty). The market value of natural gasoline or other liquefied petroleum gases for the purposes hereof shall be the price as posted and generally paid by major processors for products of like specifications and quality effective in the same district on the date of extraction by Lessee or of redelivery to Lessee. The market value of gas in its natural state and residual dry gas for the purposes hereof shall be the price generally paid to Lessee by the major purchaser for gas of like specifications and quality effective in the same district on the date of delivery or redelivery to Lessee. Lessee shall have the right to deduct from Lessor's royalty on any gas produced hereunder the royalty share of the cost, if any, of compres- sion for delivery, transportation and/or delivery thereof. Lessee shall have the right to commingle gas produced from said leased land with other gas and thereupon the royalty shall be computed upon an appropriate fraction of the commingled gas. Nothing in this agreement contained shall require Lessee to save, market or utilize gas from said leased land unless there be a surplus above lease requirements and a market at the well for same, nor shall Lessee be required to extract or cause to be extracted any products therefrom. 7. Lessee shall not be required to account to Lessor for or pay royalty on oil, gas, natural gasoline, other liquefied petroleum gases, hydrocarbons, associated substances or water used by Lessee in its operations hereunder (including, without limiting the generality hereof), for fuel and/or lifting and/or injection purposes anywhere in said leased land, and gas or other substances used as fuel or lost or consumed in the gathering, compressing for processing and processing thereof and Lessee may use such oil, gas and other substances free of charge. In no event shall Lessee be responsible to Lessor for its failure or inability to save any of said substances, or for shrinkage or loss thereof, and royalty shall not be payable in respect to any of such substances lost through evaporation, leakage, fire or otherwise. In the event Lessee in its operations hereunder shall substitute other fuel or power for fuel obtained from said leased land, Lessee shall be entitled to deduct from the amount of the increased royalty accruing thereby to Lessor the royalty share of the cost of such other fuel or power, provided that no deduction hereunder shall in any event exceed the amount of such increased royalty. 8. Lessee may commingle oil produced from any pooled area or operating unit created under the provisions of Paragraph 24 hereof with oil produced from any other operating unit which is producing from the same pool or structure and located in the vicini- ty thereof. For the purpose of accounting hereunder, the quantity of oil produced and saved from each operating unit shall be deter- mined on the basis of gauges or meter readings and adjusted to conform to the shipping tank measurements of the commingled oil. Lessee shall take samples and make test of the oil produced and saved from each operating unit or units prior to commingling and such samples and test shall be the basis of determining the gravity and water, sand and other foreign substance of such oil. 9. There shall be no obligation upon the part of Lessee to drill in or produce from and operate the leased land, so long as the market price in the field for oil of the quality and gravity produced on said property shall be Five Dollars ($5.00) or less per barrel at the well. Lessee may at any time and from time to time suspend the production of gas from the leased land, but such production of gas may not be suspended, however, when there is a market for the gas in the field at a price which will pay Lessee to drill for and produce the same with a reasonable profit. 10. Lessee agrees to perform all operations in a careful, workmanlike manner and in accordance with the laws of the State of California. Lessee shall keep full records covering the production and sale of gas, oil and natural gasoline from the leased land, and such records shall be open at all reasonable times to the inspection of Lessor or Lessor's duly authorized representative. 11. Lessee agrees, subject to the other provisions of this lease, to operate completed oil or gas wells with reasonable diligence and in accordance with good oil field practice so long as such well shall produce oil or gas in quantities deemed paying by Lessee; provided, however, that Lessee shall not be obligated to remove any oil, gas or other hydrocarbon substances produced from the leased land by any means other than a subsurface line. 12. All the labor to be performed and materials to be furnished in the operations hereunder shall be at the sole cost and expense of Lessee, and Lessor shall not be chargeable with, nor liable for, any part thereof, and Lessee shall keep said land duly and fully protected against all liens of every character arising from or connected with its operations. Lessor hereby grants unto Lessee full power and authority to do and perform all and every act and thing necessary or appropriate to be done to protect said leased land against all liens of every character arising from or connected with its operations, including the right to post a Notice of Non- Responsibiltiy on behalf of Lessor. 13. In consideration of the payment Me by Lessee to Lessor for the execution of thine, it is agreed that Lessee may at any time, or from time to time, either before or after discovery of oil in the leased land, quitclaim this lease, either in its entirety or in part, and thereupon Lessee shall be released from all further obligations as to the part or parts so quitclaimed, and all rentals and drilling obligations as set forth in this lease shall be reduced pro rata according to the amount of acreage so quitclaimed by Lessee; it being particularly understood, however, that all leased lands so quitclaimed shall remain subject to —and Lessee shall have the right to use and enjoy —such subsurface rights of way and easements through the quitclaimed portion of the lands as may be necessary or convenient, in whole or in part, for Lessee's operations in the leased land retained under this lease or other lands whether or not pooled with the leased land; provided, however, that any well drilled through any such quitclaimed portion of the leased land shall have no part of its producing interval in such quitclaimed portion. 14. Lessee shall pay all taxes levied on its improvements and personal property. Lessor shall pay all taxes and assessments on the leased land, exclusive of Lessee's mineral rights therein, and on all other improvements and personal property thereon. All increase in the taxes and assessments on the leased land or, if Lessee shall have quitclaimed a portion thereof, on such part as is retained by Lessee under this lease, caused by or resulting from the discovery or production of said substances thereon and therefrom, whether assessed upon the leased land as a whole or as mineral rights or otherwise, and all charges and taxes of whatsoever kind or collected by reason of the production, sale or removal of said substances from the leased land shall be borne by the parties hereto in the pro- portion of the royalty share by Lessor and the remainder by Lessee. If Lessor shall fail to pay any taxes, assessments or charges re- quired to be paid by Lessor, Lessee may at its option pay the same and in such event Lessee may reimburse itself for such taxes, assessments or charges so paid by it from any royalties or rentals accruing hereunder. 15. On the expiration of this lease, or its sooner termination, Lessee shall quietly and peaceably surrender possession of the leas- ed lands to Lessor, and shall cause a good and sufficient quitclam deed to be placed of record in said County. 16. 'Upon the violation of any of the terms or conditions of this lease by Lessee and the failure to begin to remedy the same within ninety (90) days after written notice from Lessor so to do and thereafter diligently and in good faith to prosecute the remedy- ing of such default, then at the option of Lessor this lease shall forthwith cease and terminate and all rights of Lessee in and to said lands shall be at an end, saving and excepting the then existing producing, shut-in or injection wells, subsurface rights of way necessary for continuing Lessee's operation in lands retained in the unit area, and subsurface rights of way and easements to other lands. Forfeiture shall be the only remedy of Lessor for failure to comply with any of its obligations hereunder except such as related to the payment of money. In respect to any breach relating to the payment of money the accrual of which Lessee in good faith disputes, Lessor, if Lessee pays the undisputed portion thereof, shall have no right to declare a forfeiture until the existence of such breach has been fully judicially determined and Lessee has not within thirty (30) days after such final judicial determination com- plied therewith, in which latter event Lessor may declare the absolute forfeiture of this lease except as hereinabove or otherwise pro- vided, and all of Lessee's other rights hereunder except the right to remove Lessee's property. 17. Notwithstanding anything in this lease contained to the contrary, it is expressly understood and agreed that the obligations of Lessee hereunder shall be suspended so long as and to the extent that Lessee is prevented or hindered from complying with such obligation in part or in whole by the elements, accidents, strikes, lockouts, riots, delays in transportation, inability to secure materials in the open market, acts of war or conditions attributable to war or compliance by Lessee with federal, state, county, municipal or other governmental agency regulations, rules or orders including but not limited to failure or refusal to grant land use or operating licenses or permits, or with proration or curtailment regulations of authorities constituted by law, or other causes beyond the reasonable control of Lessee, whether similar or dissimilar to the foregoing. This lease shall remain in full force and ef- fect during any suspension of any of Lessee's obligations under any provisions of this paragraph and for a reasonable time thereafter, provided, that after the removal of the cause or causes preventing or hindering the performance of such obligation, Lessee diligently commences or resumes the performance of such obligation. Lessee shall have the right to join in the execution of and to comply with the voluntary agreement of producers representing a majority of the production in the district in which the leased land is located with respect to proration or curtailment of production in said district, provided such agreement is not contrary to law or to comply with any laws, regulations or governmental orders with respect to any such proration or curtailment of production. Whenever Lessee is required to make a payment or suffer termination of this lease as to any of the lands included hereunder as an alternative to commencing drilling operations, then, so long as the obligation to commence drilling operations is suspended by any provision of this paragraph, Lessee shall not be required to make such payment nor shall this lease be terminated. If before Lessee may commence drilling operations in the leased land it must secure a permit therefor or approval thereof in any form from any federal, state, county or municipal body or agency, then if Lessee shall have applied for such permit within sixty (60) days prior to the date upon which such drilling operations must be commenced under the terms of this lease to avoid a forfeiture or termination thereof, the obligation to commence such drilling operations shall be suspended until such time as such permit is granted, or in the event such permit is denied so long as Lessee shall in good faith and with due diligence conduct proceedings appearing from such denial, for a period of thirty (30) days thereafter; provided, however, that in no event shall such obligation be suspended under this paragraph beyond a period of two (2) years from the time upon which such drilling operations should otherwise have been com- menced. 18. In the event that the leased land is less than the entire fee interest in the lands described, or if mineral rights only are leased and less than the entire mineral rights are covered, then the royalties herein provided for shall be paid Lessor only in the proportion which Lessor's interest bears to the entire undivided fee interest in the land as a whole or in the mineral rights therein. If it develops that Lessor owns less than the interest purported to be leased hereby, then the rentals herein provided for shall be paid Lessor only in the proportion which Lessor's interest bears to the interest purported to be leased hereby. If Lessor owns a greater interest in the lands described than is purported to be leased hereby or hereafter acquires any additonal afteracquired interest or title, and Lessor agrees to give Lessee written notice of any such acquisition as soon as the same is made, in which event the rentals and royalties payable to Lessor shall be increased proportionately. 19. Lessor hereby agrees to defen,ssor's title to the leased land and agrees that ee, at its option, may pay and discharge any taxes, mortgages or other liens existing, levied or assessed on or against the leased lan and, in the event it exercises such option, it shall be subrogated to the rights of any holder or holders thereof and may reimburse itself by applying to the discharge of any such mortgage, tax or other lien, any royalty or rentals accruing hereunder. Lessee, at its option, shall have the right to defend any suit brought attacking Lessor's title to the leased land, or to bring a quiet -title action in Lessor's name to validate Lessor's title thereto or in its own name to validate Lessee's title to the leasehold created hereby, and in such case Lessor agrees fully to assist and cooperate with Lessee in any such action. The reasonable cost and expense of any action to defend or validate Lessor's title shall be deductible by Lessee from monies becoming due to Lessor hereunder. 20. If the estate of either party hereto is assigned or conveyed (and the privilege of assigning in whole or in part is expressly allowed), the rights and obligations created hereby and the covenants hereof shall extend to and be binding upon such party's assigns or transferee, and the party so assigning or transferring such interest shall thenceforth be released from all obligations hereunder to the extent of the interest so assigned or transferred, but no change of ownership in the land or in the rentals or royalties shall be recognized by Lessee until Lessee has been furnished with written notice of such transfer or assignment, with evidence thereof satisfactory to Lessee, which notice shall designate in writing the address to which checks covering payments affected by such change shall be mailed. 21. All statements of production and royalty and all payments to be made by Lessee to Lessor hereunder shall be sent to the per- sons whose names are hereunto subscribed as Lessor on the Signature Page attached hereto, respectively, at the addresses shown thereon. Lessee shall, upon notification of change of ownership in the lands or in rentals or royalties hereunder, as provided in Paragraph 20 hereof, divide and distribute the same to the new owner of such interests; provided, however, that at any time after royalty becomes payable hereunder, Lessee may, at its option, withhold payment of such rentals or royalties until parties owning a majority of Lessor's interest designate in writing a recordable instrument delivered to Lessee, a bank, trust company or corporation in California, as a common agent and depository, to receive all payments due hereunder to such persons. Such designation may be changed at any time in the same manner. Delivery of all statements and payments hereunder may be made by depositing the same in the United States mail duly addressed to Lessor at the above address or addresses or to such agent and depository which shall con- stitute full performance of Lessee's obligation to make such delivery. In the event that the amount payable under this lease shall result in a payment of less than Twenty-five Dollars ($25.00) becoming due Lessor, Lessee may, at its option, withhold and accrue sufficient period payments until the total due Lessor exceeds Twenty-five Dollars ($25.00). 22. Lessee may give any notice or deliver any document hereunder to Lessor in person or by delivering the same by mail addressed to Lessor at the address shown on the signature page attached hereto. Any notice from Lessor to Lessee shall be given by sending the same by mail addressed to Lessee at 717 Walton Street, Signal Hill, California 90806. All notices so given by mail shall be deemed delivered when deposited in any United States Post Office. Either party may at any time by appropriate written notice to the other change the address to which that party's notices are to be sent. 23. For the consideration paid at the time of execution of this agreement and without any additional consideration to be paid therefor, Lessor hereby grants to Lessee and its assigns the exclusive easement and right to drill into and through the leased land, by means of a well or wells, whether producing or injection drilled from surface locations outside the leased land together with the sole and exclusive right to repair, redrill, deepen, maintain, rework and operate such wells and produce said substances from, or inject gas, steam, water, saltwater, or other fluids into, such wells which may be drilled into or through the leased land or into other land, whether or not pooled with the leased land; such subsurface rights -of -way, easements and servitudes to continue for the duration of this lease and thereafter as hereinafter provided. If Lessee shall assign to any third party or parties such subsurface rights granted to Lessee under this paragraph, the said subsurface rights of Lessee shall not thereby be diminished, in such event both Lessee and its assignee shall have, hold and enjoy said rights, each independently of the other. The subsurface rights of Lessee and of each assignee of Lessee under this paragraph shall continue after the expiration, surrender, forfeiture or other termination of this lease for a period of twenty (20) years from the date of this lease and so long thereafter as said substances are produced by means of any such well or as drilling, redrilling or remedial operations are being conducted with respect to any such well. Lessee and each such assignee utilizing any such rights after the expiration, surrender, forfeiture or other termination of this lease shall pay to Lessor a rental for each well subsequently maintained by it under or through the leased land at the rate of One Dollar ($1.00) per annum per foot of the horizon- tal projection (computed to the nearest foot) of the surveyed course of the part of the well of such Lessee or assignee lying within the confines of the leased land, the rental with respect to any such well to commence on the completion thereof and to continue until such well is abandoned in accordance with the requirements of the State of California; provided, however, that Lessor shall not be entitled to receive any rental under the provisions of this paragraph during such times as Lessor is entitled to receive royalty or ren- tals under other provisions of this lease. During the term of this lease, Lessor shall not grant any subsurface rights of way, easements or servitudes in and to the leased land in respect to the drilling for or the production of said substances to any other person, firm or corporation without the written consent of Lessee. 24. Lessee is hereby given the right at its sole option, to combine or pool all or any part of the leased land with all or any part of any other tract or tracts of land, so as to create by such combining or pooling one or more operating units for development and pro- duction of oil, gas and other hydrocarbon substances. Lessee may commit the leased lands and the pooled lands to any such unit at anytime within 20 years from the execution of this lease. Any such unit may include all or any part of the lands within any oil drilling district which embraces the leased land. Such unit and leased land shall be subject to all of the provisions and conditions of any such oil drilling district and any present or future laws, ordinance, rules or regulations of any Federal, State, County or municipal body or agency. If any such unit becomes effective Lessee shall promptly record such unit agreement and give written notice to Lessor. In the event of such pooling or unitization, then in lieu of computing royalties upon substances produced from the leased land as provided in Paragraph 4 and 5 hereof, production allocated to a pooled area or the leased lands by any such unit agreement shall be appor- tioned and shared by the lessors of such leased lands or pooled lands on the basis of the proportion of the surface acreage of the leas- ed land to the total surface acreage of all ands with which the leased lands have been d; and in lieu of the taxes provided to be borne under Paragraph 17 hereof, Less r shall bear the royalty share of such taxes on 1 i in such unit and taxes on the produc- tion therefrom in the same proportion as production is allocated to the leased lands. Lessee may at any time quitclaim to the person entitled thereto all or any part of the land included in such unit and thereupon Lessee shall be released from all further obligations with respect to land so quitclaimed. The division of royalties from such unit between each Lessor and other owners of interest in such unit shall not be changed, altered or affected notwithstanding any subsequent surrender or quitclaim or forfeiture of any land in such unit, save and except land surrendered because of lack of good and merchantable title; provided, however, that in the event the leased land or any part thereof, after surrender or quitclaim or forfeiture shall be made subject to any other oil or gas lease or a well be commenced thereon for oil or gas, then such of the above described leased lands so surrendered or quitclaimed or forfeited shall thereupon and forever thereafter be excluded from participating in the benefits accruing from such unit, but Lessee shall not be held responsible or accountable for payments made without actual knowledge of the execution of any such other oil or gas lease or the drilling of any well for oil or gas in such quitclaimed, surrendered or forfeited land. Lessee may, at its sole option, at any time when there is no production from such unit of oil or gas in quantities deemed paying by Lessee, terminate such operating unit by a written declaration thereof, in the same manner in which it was created. Upon the termination of any such operating unit, if only a part of the leased land was included therein, this lease shall no longer be considered as a separate and distinct lease, and the effect of such terminations shall be to return this lease to the status in which it was immediately prior to the creation of such operating unit as though no operating unit had been created. 25. This agreement may be executed in any number of counterparts with the same force and effect as if all parties signed the same document. The execution hereof by any person named as Lessor herein shall bind such person's interest whether or not any other person named as Lessor shall execute the same. 26. The entire agreement between the parties is set forth in this lease, and no covenant or agreement, express or implied, other than those set forth in this lease, shall be binding upon either of the parties hereto except insofar as this lease may subsequently be modified by written agreement of the parties. 27. In the event leased land is pooled under Paragraph 24 hereof, the benefits of Lessor including rent and royalty accruing under the provisions of Paragraph 24 hereof are appurtenant to the leased land of Lessor, and any transferee or subsequent owner of the title to the leased land of Lessor shall be entitled to receive such appurtenant benefits under Paragraph 24 hereof, except to the extent that such benefits shall be expressly reserved or shall have been theretofore transferred in whole or in part. A reservation or exception of all or any specified portion of the minerals or oil or gas or other hydrocarbon substances in any instrument shall con- stitute, for the purpose of this agreement, a reservation or exception of all or such specified portion of the appurtenant benefits under Paragraph 24 hereof. 28. The Lessor has executed an extra copy of the Lessor's Signature Page attached to this lease, and it is hereby agreed that such Lessor' Signature Page may be attached to an identical copy of this Subsurface Oil and Gas Lease, together with other signature pages from other identical oil and gas leases executed by other lessors, for the sole purpose of recording the same in the Official Records of the county wherein said leased lands are situate, it being expressly understood that the attaching of such Signature Page to a similar lease shall not constitute a pooling or combining of the leased land with any other land. 29. Subject to the provisions hereinabove set forth, this lease and agreement shall be binding upon and inure to the benefit of the heirs, administrators, successors and assigns of the respective parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this lease to be executed the day and year first above written. Xtra Energy Corporation By LESSEE STATE OF CALIFORNIA COUNTY OF Los Angeles ) ss On this 6th 1983 day of June in the year,Mbefore me Shi r1 Pv Cmnpann1P , a Notary Public in and for said County and State residing therein, duly commissioned and sworn, personally appeared , T T.Little known to me to be the Vice President of said corporation, and known to me to be the person who executed the within instrument on behalf of said Xtra Energy Corporation the corporation that executed and whose name is subscribed to the within instrument, and acknowledged to me that Xtra Energy Corporation executed the same pursuant to a resolution of its Board of Directors. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year in this certificate first above written. OFFICIAL SEAL ki - IpLE CANAPANALE " 4 .-� IIOTAGiY'PbLtC CALIFORNIA LOS ANGELES COUNTY My Comm. expi es OCT 28, 1985 C� J • THIS PAGE INTENTIONALLY LEFT BLANK 42-100-151,245,257;275,279 OSSGR'S SIGNATURE PAGIO ALL THAT PORTION OF THE LANDS LYING BELOW FIVE HUNDRED FEET(5001 BELOW THE SURFACE OF: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF Together with all right, title and interest which the undersigned may now have or hereafter acquire in the above -described premises or in the real property included in any avenues, alleys, highways, roads or streets adjacent to the above -described premises. without any right to Lessee to use the surface or that portion of the subsurface lying above the depth of five hundred (500') feet below the surface of the above -described premises. The Lessor hereby leases the above -described land located in Orange County, California, to Xtra Energy Corporation, subject to the terms and provisions of the Subsurface Oil and Gas Lease to which this Lessor's Signature Page is attached. SUBSCRIBING WITNESS Mineral Interest 100% Parcel No. 25-041-18, 25-042-05, 041-20 LESSOR TH CITY O� tJUNTINGTQN BEACH, a unicipa Corporation SEE LESSOR'S SUPPLEMENTAL SIGNATURE PAGE By: IDENTIFIED AS "LESSOR°S SIGNATURE PAGE 2", ON AIMING THE ACTUAL LESSOR SIGNATURES, ATTACHED HERETO AND MADE A PART HEREOF. 25-071-45, 25-036-10, 25-041-19, ptn 25- B yr: Acreage_1.799 Amount Paid 179.90 ADDRESS: 2000 Main St., to Lessor and amount to be used as rental pursuant to Huntington Beach, Ca. 92648 Paragraph 2 of said Subsurface Oil and Gas [_ease. STATE OF CALIFORNIA I COUNTY OF Ss Tax zn No q5 - (vo o b -7d 3 - W On before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me to be the same person whose name is subscribed to the within instrument as a subscribing witness thereto who being by me duly sworn, deposed and said that he resides in the County of State of California; that he was present and saw personally known to him to be the same person(s) described in and whose name(s) is (arc) subscribed to the within instrument as a (the) party(ies) thereto, sign and execute the same; and that he, the affiant, then and there subscribed his name to said instrument as a witness. WITNESS my hand and official seal. Notary Public STATE OF CAUFORNIA COUNTY OF I .. On appeared 19 before me, the undersigned, a Notary Public in and for said County and State, personally name_ subscribed to the within Instrument, and acknowledged to me that WITNESS my hand and official seal. known to me to be the person whose executed the same. Notary Public Check No. • CJ ATTEST:- LESSOR'S SIGNATURE PAGE 2 City Clerk 003 REVIEWED AND APPROVED.. i City Administrator STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. Mayo APPROVED AS TO FORM; 6 (3 City Attorney INITIATED AND APPROVED. ctor of -Development Services On this' day of lg, before me, a Notary Public in and for said County/and State, personally appeared , known to me to be the Mayor and�_, known to me to be the City Clerk of the City of Huntington Beach, the municipal corporation that executed the within instrument, known to me to be the persons who executed the within instrument on behalf of said municipal corporation and acknowledged to me that such municipal corporation executed the same. h OFFICIAL SEAL CONNIE A. BROCKWAY (� NOTARY PUBLIC - CALIFORNIA PRINCIPAL OFFICE IN ORANGE COUNTY MY COMMISSION EXPIRES OCT 10 1985 0 EXHIBIT "A" Parcel 1 Lots 17 and 19 of Tract No. 73, in the City of Huntington Beach, County of Orange, State of California, as per Map recorded in Book 10, Page 21 of Miscellaneous Maps. Parcel 2 The North 165 feet of Block 2204 of East Side Villa Tract, in the City of Huntington Beach, County of Orange, State of California, as shown on Map recorded in Book 4, Page 65 of Miscellaneous Maps. Parcel 3 Lot 7 in Block 1801 of Vista del Mar Tract, Section 5, in the City of Huntington Beach, County of Orange, State of California, as shown on Map recorded in Book 4, Page 15 of Miscellaneous Maps. Parcel 4 Lots 12 and 13 of Block 1502, Vista del Mar Tract, Section 8, in the City of Huntington Beach, County of Orange, State of California, as shown on Map recorded in Book 4, Page 79 of Miscellaneous Maps. INITIAL .�4----------------------- 42-100-245,151,257,279,275 0 0 EXHIBIT "A" Parcel 1 Lots 17 and 19 of Tract No. 73, in the City of Huntington Beach, County of Orange. State of California, as per Map recorded in Book 10, Page 21 of Miscellaneous Maps. Parcel 2 The North 165 feet of Block 2204 of East Side Villa Tract, in the City of Huntington Beach, County of Orange, State of California, as shown on Map recorded in Book 4, Page 65 of Miscellaneous Maps. ParrPl I Lot 7 in Block 1801 of Vista del Mar Tract, Section 5, in the City of Huntington Beach, County of Orange, State of California, as shown on Map recorded in Book 4, Page 15 of Miscellaneous Maps. Parcel 4 Lots 12 and 13 of Block 1502, Vista del Mar Tract, Section 8, in the City of Huntington Beach, County of Orange, State of California, as shown on Map recorded in Book 4, Page 79 of Miscellaneous Maps. INITIAL �............... 42-100-245,151,257,279,275 REQUESI FOR CITY COUNCIL ACTION Date June 6, 1983 Submitted to: Honorable Mayor and City Council Submitted by: Charles W. Thompson, City Administr ®rl -o Prepared by: James W. Palin, Director, Development Services fl Subject: XTRA ENERGY CORPORATION SUBSURFACE OIL AND GAS EASE Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: bu STATEMENT OF ISSUE: The Xtra Energy Corporation would like to lease 1.799 acres of City - owned mineral rights in the downtown area as part of a possible oil "unitization" program. RECOMMENDATION: Authorize the Mayor to execute the subsurface lease in the name of the City for City -owned mineral rights in the Xtra project area. ANALYSIS: The Xtra Energy Corporation, a Louisiana company with California operations based in Signal Hill, is attempting to "unitize" a 200- acre portion of the City's downtown area, as depicted on the attached vicinity map. Xtra is seeking the City's signature on a subsurface oil and gas lease for 1.799 acres of City -owned mineral rights within the project area. Like the American Petrofina unitization project currently under development in another part of the downtown, Xtra's project involves consolidating the mineral rights and active oil production interests in the project area so that oil can be produced on a pool -wide basis, rather than on a well -by -well basis. Following unitization, Xtra plans to initiate a secondary recovery operation from a limited number of consolidated oil "islands". The centralized site or sites will replace the individual, scattered oil operations that now exist in the project area. In addition, the proposed uniti- zation program, if successful, will result in several other benefits to the City including increased revenues from "per barrel" production fees, royalties on the City's mineral interests, and other oil pro- duction taxes and fees. Staff has determined that the attached Xtra Energy Lease is very similar to the American Petrofina Lease signed by the City in 1981, although both the magnitude of this project and the City's interest in it differ from the Petrofina project. Both leases provide for a one -sixth royalty on oil and gas produced, although a clause was in- serted into the American Petrofina Lease that would provide the City with an increased royalty if at least ten percent of the mineral owners included in the project were to receive royalties larger than 51-11 PI O 4/81 6 r • OIL AND GAS LEASE, Cont. June 6, 1983 Page 2 one -sixth. It should be noted that the City owned the mineral rights to a significant portion of the Petrofina project area, whereas the mineral rights owned by the City represent only a tiny fraction of the Xtra project. It is therefore unlikely that the City would hold a strong enough bargaining position to effect insertion of a similar clause in the Xtra Lease. The term of the Xtra Lease is five years from the date of signature and for so long thereafter as oil, gas or other hydrocarbon substances are produced. In the American Petrofina Lease signed by the City, the primary term was reduced to five years, extendable to ten years only if 75 percent of the leasable mineral rights were acquired. This stipulation was added to the Petrofina Lease to ensure that Petrofina was actively pursuing unit formation. Although some unit projects can be very difficult to assemble, the Xtra Energy project is smaller than American Petrofina's. At this point, Xtra has acquired nearly 90 percent of the necessary mineral rights and is now in pre - engineering stages. At present, Xtra is simply requesting that the City sign the lease to participate in the unit project. The location of the drilling island(s) has not yet been determined, but the necessary EIR, zone changes and permit processes will ensure that the project is thoroughly reviewed by the City before it is approved. When it is implemented, however, this project will produce beneficial impacts by both increasing the amount of oil produced and consolidating the scattered oil operations that presently exist in the area. FUNDING SOURCE: None required. ALTERNATIVE ACTIONS: 1. Do not authorize execution of the lease. Because the City -owned mineral rights represent a fractional portion of total mineral rights in Xtra's project area, unitization would likely be under- taken without the City's participation. However, the City would then forfeit its share of royalty payments when oil is produced by the unit. 2. Defer action on the lease pending further study. Council should then direct staff to assemble the information the Council feels is necessary to make a decision. ATTACHMENTS: 1. Vicinity Map and Parcel Maps 2. Xtra Energy Lease 3. Xtra Energy materials JWP:DB:jlm w .:} I�I;IIII� 7-'-- -'7 a " CF-C t� CF-E ow ._ ra C `'�1';_ f •CJ.x�- N ,i �s— CF-R \AM- 3 FINA /1 @� �►'���ir ���.� "r �° — �i ii ii � �, i i R 1-1 r 1 q OELAWARE 6 70 'i1' i�/S 6lss' )S' ,2• SJ9 F(D Cr a .ms s EAST S/0 V/LLA is/O '-ALLEY A $ O1 3 3 eo f:. + _. e v O 8Z K 2304 6ty► - . a o tu r 26 25 24 O • � �' 6y f2 °2 Lt.ee J ¢ 60 , 5,.71• K p0 WH/TESANOS LW/VE O1 1 ft at' .) 60 53.ei' Go" U ♦i# ,�� 5 21 22 23 PAR / ti 39 PAR 2 41 P.w 1 AV. 8 7/ 8L z 303 )oo ' PAR. 4 Ow' 8LK.. 240.3 s ' ° /.06/ AC 3 PAR AARA ` _ _. /4 AC h fe See• __ 62• w)' & HUNT/NGTON �+ W 02 is MARCH /948 EAST S/OE V/L LA TRACT M. M. 4 - 65 TRACT NO 897/ M. M 367 - 4 6,47 TRACT NO. 9/75 M. M. 385- 46,47 PARCEL MAP P. M. 91 - 32 38 37 36 : ? :e J TRACT 0 /VO. 9/75 r,. ' 31 ,]J3 eJw0• )O' 'w'w' ee wJ' , L sTREE r W W NOTE- ASSESSOR'S 81-OCK 8 ASSESSORS MAP JUL 8 PARCEL NUMBERS BOOK 25 PAGE 07 SHOWN IN CIRCLES COUNTY OF ORANGE HUNrINGTON VIsTj DfL 8 ALABAMA 2 5-03 08 STREET 60' IF AAR. 2 "4 ta4 3' 33 31 14 go i (�� ", I —• �, Zl 14 1 - , i ;�k a I p M. 114 - 25 6 U�-A —Z fa --j 9 8 20 ;jrx� 4 7- —1, Z it 32 12 or C2 9) 12 A 14 "' 29 28 5 q�) 0 5 6 27 26. 7, /a Z7fd y4— 19 24 7 LA .ens 22 23 r, 5 ) 121 Atz - ze-s- 9 'srRE.-r 11 12 0 5 12 1 /0 S MARCH 1948 VISTA DEL MAR TR. MM 4-15 PARCEL MAPS PM 114-29 14 23-07 NOTE - ASSESSORS BLOCK a PARCEL NUMBERS SHOWN IN CIRCLES RECEIVED JUL 1982 Devetoprrert servC,3; ASSESSOR'S .WAP BOOK 25 PAGE 03 COUNTY OF ORANGE 09 $ HUNT/NGTON 21 R M. /e�9.3 •- IJ 1 9 4 28 Q ice u 3 29xo:„ 2 b oz 30 31 0 � J� ND. �0172 yr L ALABAMA J s 1 o 1b, 3 •r V/$T 1 D4L M R ! I 1 I I (� I 1 I I I 2570'9„ B.,17,.16-13•. 4.!.Y WATSONS ADD. M. M. 3-39 T.J. WATSONS' RE -SUB. M M 4 - 56 VA, -?CH /948 VISTA DEL MAR TRACT M. M. 4 - 79 SUMM/ T TRACT M. M. 7-1 TRACT NO 73 MM /0-2/ TRACT NO. /O/72 M. M. 447- /, 2 % 0)VS 11II 3m L(��2#) QII1II " GI1,I1II1 s/M1° n/019„ 6.13. 4.,'3, rProo.R 2., N N --�n BLK.,;2 ----- /402 s 2 W i3 30 19 Q 1♦ ®-74io----- 27 Z6 --------- 4! /6 24 - n -'a_ 5' y ------%9 23 12 Q =0 --tr- m 4 .H .71 6 .31 .41 NOTE -ASSESSORS BLOCK & PARCEL NUMBERS SHOWN IN CIRCLES I 25-04 STREET 57' WAT Sa ONS , for/6 52• 22 57' 19 20 21 `ADD. 35 79 29 3S --- -- _, 26 27 n 26 33 24 33 22 35 -35 z�/1112 • /3' /4; / 1/6/ /7• B" /9.•�20/ t I I 11' 1 2� t/1� 8 1 tl0 29 28 13 n �}• � I 1 I f4' z7 ao so so' 27 zr 51 . STREET o I 1 1 I I I 1 I I I� 0� I 1✓ i I 1 � i 11 1 i TR?4Ct 9' 8' . 71 6' 3' 41 31 ?' / n • 3D r I WA=NS' ADD. 24-05 RECEIVt9 I JUL 1982 ' i Darebpment Service: ASSESSOR'S MAP Q BOOK 25 PAGE 04 ttr` COUNTY OF ORANGE +' INTER -DEPARTMENT COMMUNICATION V HU.N'IINGTON BLAt H CHARLES W. THOMPSON GAIL H11TTON IO From City Administrator City Attorney Subject XTRA ENERGY OIL AND GAS LEASE Date May 26, 1983 The terms and conditions of the subject lease are essentially the same as those found in the Petrofina lease recently approved by the City Attorney. The only major changes in the new lease involve the absence of the "favored nations" clause which gives the city an in;rease in the event others receive more than the royalties to be paid under our lease. In light of the small percentage that the city holds of the entire unitization and the fact that the dollar amoun,' in revenue to the city is relatively small, there appears to be little li.k:�lihoc�d of success in negotiating a change thereon. GAIL HUTTON City Attorney�T GH:ps cc: James W. Palin pe'