6700 RESOLUTION NO. 6 , 700
A RESOLUTION AUTHORIZING A LEASE AGREEMENT BY AND
BETWEEN THE CITY OF LITTLE ROCK, ARKANSAS AND PHF
EXPLORATION CO. , INC. ; AND PRESCRIBING OTHER
MATTERS RELATING THERETO.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS :
SECTION 1 . That there be, and there is hereby
authorized the execution and delivery of a Lease Agreement
by and between the City of Little Rock, Arkansas, and PHF
Exploration Co. , Inc. in substantially the form and with
substantially the contents as set out in the attached
Exhibit "A" , which is included herein as if set out line for
line and word for word; and that the Mayor and City Clerk
are hereby authorized and directed to execute and deliver
the Lease Agreement for and on behalf of the City.
SECTION 2 . That the Mayor and City Clerk be and they
are hereby authorized and directed, for and on behalf of the
City, to do all things, execute all instruments and
otherwise take all action necessary to the realization of
City' s obligations under the Lease Agreement.
SECTION 3 . That this Resolution shall be in full force
and effect from and after its passage and approval .
PASSED: November 17 , 1981 .
APPROVED:
MAYO R
ATTE
1, ,u
Cit! Clerk
(SEAL)
Amended Exhibit "A"
LEASE AGREEMENT
THIS AGREEMENT made and entered into this day of
, 19_, by and between the City of Little
Rock, Arkansas, hereinafter called Lessor , and PHF
Exploration Co. , Inc. , hereinafter called Lessee.
WITNESSETH :
1 . That Lessor , for and in consideration of the sum of
Dollars in hand
paid, and of the covenants and agreements hereinafter
contained to be performed by the Lessee, does hereby grant,
demise , lease and let unto said Lessee the hereinafter
described land, for the sole purpose of carrying on
exploration work, and the drilling,4to a depth of 500 feet,
and operating for , producing and saving all of the methane
gas (CH) , all that certain tract of land, together with
any reversionary rights therein, situated in the County of
Pulaski , State of Arkansas, and described as follows :
E 1/2 of the NW 1/4 of Section 9 , Township 1
South , Range 12 West less and except that part of
the SE 1/4 of the NW 1/4 lying South of a line
parallel to and 1 ,050 feet North of the South line
of said SE 1/4 of said NW 1/4 and further
excepting a tract described as starting at the NE
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corner of the NE 1/4 of the NW 1/4 Section 9 ,
Township 1 South, Range 12 West; thence S 03
degrees 12 ' W 316 feet along the East line of said
NE 1/4 of the NW 1/4; thence S 62 degrees 28 ' W
• 284 feet along the North line of the Texas Eastern
Transmission Corporation' s right of way; thence N
89 degrees 23 ' W 1060 feet to the West line of the
NE 1/4 of the NW 1/4; thence N 3 degrees 09 ' E 450
feet along the West line of said Northeast Quarter
(NE 1/4) of the NW 1/4; thence S 89 degrees 23 ' E
1305 feet along the North line of said NE 1/4 of
the NW 1/4 to the point of beginning, containing
35 .2 ± acres ; Being a part of the same land
conveyed to Grantor as Parcel 5 , by Deed from
Aluminum Company of America, dated May 5 , 1969
recorded in the Circuit Court, Pulaski County,
Arkansas, Deed Book 1076 , Page 155 .
2 . This Lease shall remain in force for a primary term
of THREE (3) years, with the option to extend the term of
the lease for two additional periods of three (3) years
each, which option may be exercised by the Lessee in its
sole discretion, and as long thereafter as methane gas is
produced from said leased premises., Provided, however, that
if Lessee shall at any time during the term of the lease , or
any extension hereof, determine that methane gas cannot be
produced on the leased premises in commercially marketable
quantities, the Lessee shall within sixty (60) days of such
determination deliver to Lessor its written notice of intent
to terminate the Lease not later than thirty (30) days
thereafter .
ross
3 . Lessee shall pay Lessor one-eighth of the, proceeds
received by Lessee/1at the well from the sale of all methane
gas (including all substances contained in such gas)
produced from the leased premises and sold by Lessee. If
such gas is used by Lessee of the leased premises, Lessee
shall pay Lessor one-eighth of the prevailing market price
for the methane gas so used. Lessee shall make royalty
payments hereunderrmonthly beginning on the first day of the
first full month after commencement of production during the
primary term of the lease and any extension hereof, or at
such other time or times as may be mutually agreed upon by
the Lessor and the Lessee.
4 . If the Lessor owns a lesser interest in the
above-described land than the entire and undivided mineral
estate therein, then the royalties and rentals herein
provided for shall be paid the said Lessor only in the
proportion which its interest bears to the whole and
undivided mineral estate. There shall be no relationship
between the amount of rentals paid hereunder and the amount
of royalties which may be paid on production.
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5 . If the estate of either party hereto is assigned,
and the privilege of assigning in whole or in part is hereby
expressly allowed subject to the Lessor ' s consent to any
assignment by the Lessee which consent shall not be
unreasonably withheld, the covenants hereof shall extend to
their heirs, executors, administrators, successors or
assigns, but no change in the ownership of the land or the
minerals in and under the same or assignment of rentals or
royalties shall be binding on Lessee unless Lessee shall
have been furnished ninety ( 90 ) days before payment
hereunder of such rentals or royalties, with certified
copies of recorded instruments showing evidence of title;
and it is hereby agreed that in the event this lease shall
be assigned as to a part or as to parts of the land and the
assignee or assignees of such part or parts shall fail or
make default in the payment of the proportionate part of the
rents due from him or them, such default shall not operate
to defeat or affect this lease insofar as it covers any part
or parts of said land upon which Lessee or any assigneee of
Lessee shall make due payment of said rental. If six or
more parties become entitled to rentals or royalties
hereunder , Lessee may withhold payment thereof unless and
until furnished with a recordable instrument executed by all
of such parties designating an agent to receive payment for
all.
6 . Lessee shall have the right to use , free of cost,
water found on said land for its operations. When required
by the Lessor , the Lessee shall bury its pipelines below
plow depth and shall pay reasonable damages for injury by
reason of its operations to the surface of the property, or
Lessee may restore the surface of the property to the
condition in which it existed prior to the commencement of
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operations thereon. No well shall be drilled nearer than
200 feet to any house or barn or other structure on said
premises as of the date of this Lease without the written
consent of the Lessor . Lessee shall not later than one year
after the expiration of this Lease enter upon the property
and remove all machinery, fixtures, and other structures
placed on said premises, including the withdrawal and
removal of all casing.
7 . Notwithstanding anything contained in this Lease to
the contrary, it is expressly agreed that if the Lessee
shall commence operations as provided herein at any time
while this Lease is in force , this Lease shall remain in
force and its terms shall continue so long as such
operations are prosecuted, and if production results
therefrom, then as long as production is maintained.
8 . Lessee may at any time surrender or cancel this
Lease in whole or in part,4upon thirty (30) days written
notice to the Lessor , by delivering or mailing such release
to the Lessor , or by placing such release of record in the
proper County. In case this Lease is surrendered or
cancelled as to only a portion of the acreage covered
thereby, then all payments and liabilities thereafter
accruing under the terms of this Lease as to the portion
cancelled shall cease, and any rentals thereafter paid may
be apportioned on an acreage basis. As to the portion of
the acreage not released, the terms and provisions of this
Lease shall continue and remain in full force and effect for
all purposes.
9 . All provisions hereof, express or implied, shall be
• subject to all Federal and State Laws and the orders, rules
and regulations of all governmental agencies administering
the same, and this Lease shall not in any way be terminated
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wholly or partially , nor shall the Lessee be liable in
damages for failure to comply with any of the express or
implied provisons hereof if such failure accords with any
such laws, orders, rules or regulations.
10 . Lessor hereby warrants and agrees to defend the
title to the land herein described and agrees that the
Lessee, at its option^and after ten (10) days written notice
to the Lessor , may pay or discharge in whole or in part any
taxes , encumbrances, or other liens existing, levied or
assessed against the above-described lands , and in the event
Lessee exercises such option, it shall be subrogated to the
rights of any holder or holders thereof and may reimburse
itself by applying any royalty or rentals accruing hereunder
to the amount of any such encumbrance, tax or other lien
paid by Lessee.
11 . upon ten (10) days written notice to Lessor ,
Lessee hereby is given the right to acquire for its own
benefit, deeds, leases, or assignments covering any interest
or claim in leased premises which LESSEE or any other party
contends is outstanding and not covered hereby and even
though such outstanding interest or claim be invalid or
adverse to LESSOR. In the event the validity of this lease
be disputed by LESSOR or by any other person, then, for the
period such dispute remains undisposed of : LESSEE shall be
relieved of all obligations hereunder to explore or develop
leased premises; all royalties, rentals, or other payments
which would otherwise accrue shall be suspended for such
period; and this lease automatically shall be extended for
an additional period equal to the duration of such period.
12 . This Lease and all its terms, conditions and
stipulations shall extend to and be binding on all
successors in title of said Lessor or Lessee.
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13 . The Lessee shall upon three (3) days notice from
Lessor make available for inspection by Lessor or its agents
all books and records of account pertaining to Lessee ' s
operations on the leased premises.
14 . Lessee covenants and agrees to indemnify and hold
harmless the Lessor for all damages , claims and causes of
action arising from Lessee ' s use and occupation of the
leased premises.
15 . Lessor covenants and agrees that during the
primary term of the lease or during any extension hereof, it
will not lease or otherwise grant to any other person or
persons the right or privilege of engaging in the
exploration for , drilling,,to a depth of 500 feet, and
production of methane gas , on adjacent or contiguous
property owned by the Lessor .
16 .ALessee covenants and agrees to maintain the leased
premises and to conduct its operations thereon in a safe
manner and to provide to the Lessor semiannually the
certificate of an engineer licensed by the State of Arkansas
that he has inspected the premises and found the same to be
maintained and operated in said safe condition.
17 . Lessee affirms that it is an equal opportunity
employer and that it does not discriminate on the basis of
race, sex, creed or national origin.
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IN WITNESS WHEREOF this Lease is executed as of the
date first set out hereinabove.
CITY OF LITTLE ROCK, ARKANSAS ,
AS LESSOR
By
ATTEST: Mayor
By
City Clerk
(Seal)
PHF EXPLORATION CO. , INC.
AS LESSEE
By
President
ATTEST:
By
Secretary
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STATE OF ARKANSAS)
ss
COUNTY OF PULASKI)
On this day of , 19_., before me the
undersigned Notary Public, duly commissioned, qualified and
acting, within and for said County and State, appeared in
person the within-named
and , to me personally well
known, who stated that they were the Mayor and Clerk of the
City of Little Rock, Arkansas, a city of the First Class and
were duly authorized in their respective capacities to
execute the foregoing instrument for and in the name and
behalf of said city, and further stated and acknowledged
that they had so signed, executed and delivered said
foregoing instrument for the consideration, uses and
purposes therein mentioned and set forth.
In testimony whereof, I have hereunto set my hand and
official seal this day of , 19_.
Notary Public
My Commission Expires :
8
J ♦
STATE OF ARKANSAS)
ss
COUNTY OF PULASKI)
On this day of , 19 , before me the
undersigned Notary Public, duly commissioned, qualified and
acting, within and for said County and State, appeared in
person the within-named
and , to me personally well
known, who stated that they were the President and Secretary
of the PHF Exploration Co. , Inc. , an Arkansas Corporation,
and were duly authorized in their respective capacities to
execute the foregoing instrument for and in the name and
behalf of said Corporation, and further stated and
acknowledged that they had so signed, executed and delivered
said foregoing instrument for the consideration, uses and
purposes therein mentioned and set forth .
In testimony whereof, I have hereunto set my hand and
official seal this day of , 19_.
Notary Public
My Commission Expires :
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