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1962-0141RESOLUTION N0. 62R -141 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING ITS INTENTION TO LEASE PROPERTY FOR THE PRODUCTION OF OIL, GAS AND OTHER HYDROCARBONS. WHEREAS, the City Council of the City of Anaheim, County of Orange, State of California, is authorized to acquire and hold real property pursuant to the statutory authority under which it was granted; and WHEREAS, the City of Anaheim is the owner of the real property hereinafter described; and WHEREAS, by letter to the City Council of the City of Anaheim dated August 21, 1961 an offer has been received to lease the hereinafter described real property and to include said real property in an exploratory area embracing adjoining property; a form of which lease accompanied said letter of August 21, 1961 and is on file in the records of the City of Anaheim; and WHEREAS, the City Council finds and determines that the leasing of the hereinafter described property will not substantially interfere with the use of the property for play- ground or park purposes, and that by the terms of said lease the recovery of all oil, gas and hydrocarbon substances will be accomplished by slant drilling from surface locations out- side of the boundaries of said property; NOW, THEREFORE, IT IS RESOLVED AND ORDERED by the City Council of the City of Anaheim as follows: 1. The City Council of the City of Anaheim hereby declares its intention to lease the property hereinafter described for the production of oil, gas, asphaltum and other hydrocarbons, and to include said property in an exploratory area embracing adjoining property. 2. The property to be leased is described as follows: PARCEL 1: That portion of the easterly 10.50 acres of the southwest quarter of the northeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho Los. Coyotes, as per map recorded in Book 51, Page 10 of Miscellaneous Maps, in the office of the County Recorder of said county, lying northerly of the following described line: Beginning at a point on the West line of said northeast quarter, South 0 46' 50" East 534.95 feet from the westerly prolongation of the South line of Tract No. 1161, as per map recorded in Book 36, Pages 45 and 46 of said Miscellaneous Maps; thence North 88 34' 25" East 844.25 feet; thence North 1 25' 35" West 32.00 feet; thence North 88 34' 25" East 299.64 feet to the beginning of a tangent curve concave southwesterly having a radius of 300.00 feet; thence southeasterly along said curve to the East line of said southwest quarter. -1- Finance Dir Manager R/W PARCEL 2: That portion of the southwest quarter of the northeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho Los Coyotes, as per map recorded in Book 51, Page 10 of Mis- cellaneous Maps, in the office of the County Recorder of said county, lying northerly of a line that bears North 88 34' 25" East from a point on the West line of said northeast quarter, South 0 46' 50" East 534.95 feet from the westerly prolongation of the South line of Tract No. 1161 as per map recorded in Book 36, Pages 45 and 46 of said Miscellaneous Maps, EXCEPT that portion thereof lying East of the West line of the East 10.50 acres of said south- west quarter, ALSO EXCEPT that portion thereof included within the following,described lines: Beginning at the intersection of the West line of said northeast quarter with the westerly prolongation of the South line of said Tract No. 1161; thence South 0 46' 50" East 534.95 feet along said West line; thence North 88 34' 25" East 844.25 feet; thence North 0 46' 50" West 371.85 feet to the beginning of a tangent curve concave southwesterly and having a radius of 200.00 feet; thence northwesterly 83.10 feet along said curve through a central angle of 23 48 24" to the beginning of a reverse curve concave northeasterly and having a radius of 200.00 feet; thence northerly 83.10 feet along said reverse curve through a central angle of 23 48' 24 thence North 0 46' 50" West 0.30 feet to the point of intersection of the South line of said Tract No. 1161 with the center line of Moraga Street, as shown on the map of said Tract No. 1161; thence South 88 38' 30" West 810.20 feet to the point of beginning. PARCEL 3: The West half of the west half of the east half of that portion of the northeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho San Juan Cajon de Santa Ana, as per map recorded in Book 51, Page 10 of Miscellaneous Maps, in the office of the County Recorder of said county, lying southerly of the southerly line of Tract No. 1202, as per map recorded in Book 37, Pages 27 and 28 of Miscellaneous Maps, and northerly of the center line of Crescent Avenue, as said center line is shown on the map filed in Book 41, Page 26 of Record of Surveys, in the office of the County Recorder of said county, EXCEPT that portion thereof lying westerly of the following described line: Beginning at a point in the West line of said northeast quarter, distant thereon South 0 46' 50" East 534.95 feet from the -2- westerly prolongation of the South line of Tract No. 1161, as per map recorded in Book 36, Pages 45 and 46 of Miscellaneous Maps, in the office of the County Recorder of said county; thence North 88 34' 25" East 1143.89 feet; thence North 1 25' 35" West 32.00 feet to the beginning of a curve concave southwesterly having a radius of 300.00 feet, the radial at the be- ginning of said curve bearing South 1 25' 35" East; thence southeasterly along said curve 188.65 feet, more or less, to a point in the West line of the southeast quarter of the northeast quarter of said Section 7, said point being the true point of beginning; thence continuing southeasterly along said curve 286.10 feet to a line tangent to said curve and parallel with the West line of said southeast quarter of the northeast quarter; thence along said parallel line South 0 45' 24" East 534.89 feet, more or less to the South line of said northeast quarter. PARCEL 4: That portion of the east half of the west half of the east half of the northeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho San Juan Cajon de Santa Ana, as said section is shown on a map recorded in Book 51, Page 10 of Miscellaneous Maps, in the office of the County Recorder of said county, lying southerly of the southerly line of Tract No. 1202, as per map recorded in Book 37, Pages 27 and 28 of Miscellaneous Maps, and northerly of the center line of Crescent Avenue, as said center line is shown on a map filed in Book 41, Page 26 of Record of Surveys, in the office of the County Recorder of said county, EXCEPT the easterly 120.00 feet of the northerly 548.00 feet thereof, as conveyed to Anaheim Union High School District by deed recorded February 10, 1958, in Book 4190, Page 597 of Official Records. PARCEL 5: That portion of the northeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho Los Coyotes, as shown on a map recorded in Book 51, Page 10 of Miscellaneous Maps, in the office of the County Recorder of said county, described as follows: Beginning at the intersection of the westerly prolongation of the southerly line of Tract No. 1161, as shown on a map recorded in Book 36, Pages 45 and 46 of said Miscellaneous Maps, with the westerly line of said northeast quarter; thence North 88 38' 30" East 431.32 feet to the true point of beginning; thence South 0 46' 50" East 534.44 feet to the South line of the land described in the deed to the City of Anaheim, recorded June 29, 1956, in Book 3562, Page 297 of Official Records; -3- thence North 88 34' 25" East 412.92 feet to the southeast corner of said land; thence North 0 46' 50" West 371.85 feet to the beginning of a tangent curve, concave southwesterly, having a radius of 200.00 feet; thence northwesterly 83.10 feet along said curve through a central angle of 23 48' 24" to the beginning of a re- verse curve concave northeasterly, having a radius of 200.00 feet; thence northerly 83.10 feet along said reverse curve through a central angle of 23 48' 24 thence North 0 46' 50" West 0.30 feet to the southerly line of said Tract No. 1161, said point also being the intersection of said southerly line with the center line of Moraga Street as shown on said map; thence South 88 38'30" West 378.88 feet along said southerly line to the true point of beginning, EXCEPT that portion thereof described as follows: Beginning at the intersection of the westerly prolongation of the southerly line of Tract No. 1161, as shown on a map recorded in Book 36, Pages 45 and 46 of said Miscellaneous Maps, with the westerly line of said northeast quarter; thence South 0 46' 50" East 534.95 feet; thence North 88 34' 25" East 844.25 feet to the true point of beginning; thence North 0 46' 50" West 32.00 feet; thence South 88 34' 25" West 274.00 feet; thence South 1 25' 35" East 32.00 feet; thence North 88 34' 25" East 273.65feet to the true point of beginning, ALSO EXCEPT one fourth of an acre of land in the form of a square in the northeast corner of the west half of the southwest quarter of the north- east quarter of said Section 7. PARCEL 6: The northerly 8 acres of that portion of the southwest quarter of the southeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho Los Coyotes, as per map recorded in Book 51, Page 10 of Miscellaneous Maps, in the office of the County Recorder of said county, conveyed to Kenneth B. Wallace as Trustee by Document No. 79333 recorded June 8, 1956, in Book 3539, Page 220 of Official Records, said parcel of land being more particularly described as a whole as follows: The west half of the southwest quarter of the southeast quarter of said Section 7, EXCEPT the South 7 acres of the east half of said west half, PARCEL 7: The northerly 6 acres of the east half of the southwest quarter of the southeast quarter of Section 7, Township 4 South, Range 10 West, in the Rancho Los Coyotes, as per map recorded in Book 51, Page 10 of Miscellaneous Maps, in the office of the County Recorder of said county. -4 together with all right, title and interest which the undersigned may now have or hereafter acquire in the above described premises and in the real property included in any avenues, alleys, highways, roads or streets adjacent to the above described premises, without any right in 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. 3. Said lease shall be an individual lease and may include land in the following exploratory area: The Southwest quarter of the Northeast quarter (SWONE') and the West half of the Southeast quarter of the Northeast quarter (W'SEkNEk) and the South edst quarter (SE1) of Section 7; the South half of the Southwest quarter (SkSWW) and the West half of the Northwest quarter of the Southwest quarter (W'NW SW') of Section 8; the Northwest quarter (NW's) and the West half of the Northwest quarter of the Northeast quarter (W NKNE3) and the South half of the Northeast quarter (SkNEE) of Section 17; and the Northeast quarter(NE1) of Section 18, all in Township 4 South, Range 10 West, as said sections are shown on the map recorded in Book 51 at Page 10 of Miscellaneous Maps, In the office of the County Recorder of said county; EXCEPTING THEREFROM that portion of the South half of the Northeast quarter (SNE') of said Section 17 lying easterly of the easterly line of Tract No. 647. as said tract is shown on the map thereof recorded in Book 20 at Page 34 of Miscellaneous Maps in the office of the County Recorder of said County. 4. The minimum term for which said land will be leased shall be two (2) years from the date the bid is awarded. The maximum term for which said land will be leased shall not exceed thirty -five (35) years from the date the bid is awarded. 5. The minimum rental for which said land will be leased shall be: (a) $2405.00 as consideration for the execution of said lease and as rental for the first two years commencing on the date the bid is awarded. (b) Thereafter $60.00 per acre, per year until drilling operations are commenced within the ex- ploratory area or said lease surrendered or terminated as to the property described in the foregoing Paragraph 2. -5- at 3:00 Hal fixed as Council, received (c) The lessors in said exploratory area will pool their interests and will share in all benefits accruing to a production unit within the exploratory area in the ratio which the acreage owned by each lessor bears to the entire acreage of a production unit within said ex- ploratory area. The benefits which shall accrue and which are to be so pooled and shared thereto will be sixteen and two- thirds per cent (16 -2/3 of all oil, asphaltum, and other hydrocarbons extracted and saved from the land now or herein- after subject to a production unit within said exploratory area, sixteen and two- thirds per cent (16 -2/3 of the net proceeds received from the sale of all gas produced, saved, and sold from the lands now or hereinafter subject to a production unit within said exploratory area, and the sale value of sixteen and two thirds per cent (16 -2/3 of the gasoline credited to a production unit within said exploratory area. BE IT FURTHER RESOLVED that March 20 ,1962, o'clock P.M., in the City Council Chamber in the City the City of Anaheim, State of California, is hereby the time and place for a public meeting of said City at which meeting sealed proposals to lease will be and considered. BE IT FURTHER RESOLVED that this resolution shall, before the date of such public meeting, be published once a week for four successive weeks in the Anaheim Bulletin, a newspaper of general circulation in the county where said real property is situate. BE IT FURTHER RESOLVED that bidders may base their bids upon the form of oil and gas lease heretofore received by the City Council as hereinabove recited. The one variable, biddable factor will be the amount paid as consideration for the execution of said lease and rental for the first two years which sum shall be a minimum of $2405.00 as provided in Para- graph 5(a) above. BE IT FURTHER RESOLVED that the City Council does hereby advise that the use of the surface soverlying the oil property described in the foregoing Paragraph 2 shall not be substantially interfered with by the lease of the oil prop- erty described in the foregoing Paragraph 2 for the production of oil, gas and other hydrocarbons, and that the recovery of all hydrocarbon substances shall be from a site other than the leased land, and shall be accomplished by slant drilling. BE IT FURTHER RESOLVED that each bid submitted shall be accompanied by a bank money order, certified check or cashier's check to the order of the City of Anaheim in the amount of the bid for said lease under Sub Paragraph (a) of Paragraph 5 hereof, and each bidder shall agree in writing that he will reimburse the City of Anaheim for the cost of publishing this Resolution of Intention in accordance with the foregoing paragraph should the bid of such bidder be accepted. -6- BE IT FURTHER RESOLVED that the City Council re- serves the right to reject any and all bids and to withdraw said oil property from lease. AND BE IT FURTHER RESOLVED that any and all bids shall be delivered to Mr. Keith A. Murdoch, City Manager of the City of Anaheim, whose address is City Hall, Anaheim, California, not later than the date and hour hereinabove mentioned for the opening and considering of bids. THE FOREGOING RESOLUTION is approved and signed by me this 13th day of February, 1962. ATTEST: CI7Y CLERK OF THE CITY OF A i HEIM STATE OF CALIFORNIA) COUNTY OF ORANGE ss. CITY OF ANAHEIM (SEAL) -7- I, DENE M. WILLIAMS, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 62R -141 was introduced and adopted at a regular meeting provided by law, of the City Council of the City of Anaheim, held on the 13th day of February, 1962, by the following vote of the members thereof: AYES: COUNCILMEN: Chandler, Coons, Fry, Thompson and Schutte NOES: COUNCILMEN: None ABSENT: COUNCILMEN: None AND I FURTHER CERTIFY that the Mayor of the C ity of Anaheim approved and signed said Resolution No. 62R -141 on the 13th day of February, 1962. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 13th day of February, 1962. CITY CLERK OF THE CITY OF ANAHEIM