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HomeMy WebLinkAboutResolution Central City Local Government Corporation (CCLGC) FWCCLGC-2012-01RESOLUTION CCLGC-2012-01 OF THE BOARD OF TRUSTEES CENTRAL CITY LOCAL GOVERNMENT CORPORATION AUTHORIZING A LEASE OF PROPERTY AT 1201 ALSTON A VENUE TO XTO ENERGY, INC. WHEREAS, the Central City Local Government Corporation (the "Corporation") owns approximately 1.227 acres of real property, being Lot 5, Block 1, Magnolia Green Addition, in the vicinity of 1201 Alston Avenue (the "Property"); and WHEREAS, the Corporation received a revised offer from XTO Energy, Inc. ("XTO") dated October 7, 2011 to voluntarily pool such Property into the proposed Westco Al Unit 1OH; and WHEREAS, after considering all the options for harvesting the minerals under the Property, including participating as a Working Interest Owner or through a Farmout Agreement, staff believes it is in the Corporation's best interests to voluntarily enter into a lease of the minerals underlying the Property with XTO, which includes, among other things, a bonus of not less than four thousand dollars ($4,000) per acre and a royalty of not less than twenty-five percent (25%). NOW, THEREFORE, BE IT RESOLVED that the Corporation hereby authorizes staff to negotiate and finalize a lease for the minerals underlying the Property that include, among other things, a bonus of not less than four thousand dollars ($4,000) per acre and a royalty of not less than twenty-five percent (25%); and FURTHER RESOLVED, that the President of the Corporation is hereby authorized to execute such lease and any other documents necessary to effectuate such lease, as approved by staff and the Corporation's legal counsel; and FURTHER RESOLVED, that the Secretary or any Assistant Secretary of the Corporation is hereby authorized and directed to certify the adoption of this Resolution. Adopted this 61h day of March, 2012. ? Vl(. JJ 4 ?( C ov ) Name: Kathleen Hicks Title: President