15-01 Non-Drilling Oil & Gas Well Lease - Gibson & Assoc

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PLACED ON IST READING & REFERRED TO THE RULES & ORDINANCE, S COMMITTEE 2/20/01, PLACED ON 2ND READING & REFERRED BACK TO RULES & ORDINANCES COMMITTEE 3/5/01. ORDINANCE NO. 15-01 BY: Corrigan, George, Roth, Seelie, Skindell, Smith. AN ORDINANCE requesting Council's specific approval of an option contract between the City of Lakewood and Ronald A. Gibson & Associates, inc ('Gibson") granting Gibson the exclusive right and option to enter the Lakewood Park #1 Oil and Gas well and conduct such tests and workover efforts as necessary to determine whether commemial oil and gas production can be established from the well, to acquire Non-Drilling Oil & Gas Lease on the lands and requesting Council find that it is impractical to award the contract under competitive bidding procedures and that it is cost effective and in the best interest of the City to enter into this agreement without competitive bidding, in accordance with Lakewood Codified Ordinance §111.04(a)(10). WHEREAS, there is a capped oil and gas well located in Lakewood Park; and WHEREAS, the City has been approached by Ronald A. Gibson & Associates, Inc. who has indicated thatthe capped well at Lakewood Park may be a producing wall; and WHEREAS, the City has received a proposal from Ronald A. Gibson & Associates, Inc. whereby they would investigate and conduct necessary tests, at no cost to the City, to determine whether or not reopening the wall would be beneficial to the City. Now, therefore, BE IT ORDAINED BY THE CITY OF LAKEWOOD, STATE OF OHIO Section 1. Lakewood City Council hereby finds that it is impractical to award the Option Agreement and Non-Drilling Oil & Gas Lease under competitive bidding procedures and that it would be cost effective and in the best interest of the City to award the contract without competitive bidding. Section 2. Lakewood City Council hereby approves the Option Agreement (attached hereto as Exhibit A) by and between the City of Lakewood and Ronald ~ Gibson & Associates, Inc. granting the exclusive option and right to Ronald A. Gibson & Associates, Inc. to enter the Lakewood Park #1 Oil and Gas wall and conduct such tests and .workover efforts as necessary to determine whether commemial oil and gas production can be established from the wall, to acquire Non-Drilling Oil & Gas Lease on the lands for a period of one year. The City is entitled to one-eight (1/8th) royalty for all oil produced and marketed from the premises during the option period. Section 3. Lakewood City Council hereby approves the attached Non-Drilling Oil & Gas Lease between the City of Lakewood and Ronald A. Gibson & Associates, Inc. (Attached hereto as Exhibit B) granting Ronald A. Gibson & Associates, Inc. all of the oil and gas and the constituents of either, in and under Lakewood Park, produced from Lakewood Park #1 oil & gas well for a primary term of two (2) years, with an option to renew for a period not to exceed twenty-five (25) years. The City of Lakewood is entitled to one-fourth (1/4~) royalty for oil produced and marketed from the premises. Section 3. The Director of Public Works and/or the City of Lakewood's Procurement Officer are hereby authorized to enter into an option agreement and the Non-Drilling Oil & Gas Lease with Ronald A. Gibson & Associates, Inc. Section 4. It is found and determined that all formal actions of this Council conceming and relating to the passage of this ordinance ware adopted in an open meeting of this Council, and