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Meeting Date:	02/26/2024
Award ITB 2024-002 Webb County Non-Surface Use Oil and Gas Lease
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action to award Invitation to Bid (ITB)2024-002 "Webb County Non-Surface Use Oil and Gas Lease" to sole bidder, Proven Energy LLC., for the purpose of entering into a two (2) year Non-Surface Use Oil and Gas Lease for County owned property described as an approximate 3.5-acre tract of land, more or less situated in Mrs. Mary Doss, Survey 1593, Abstract 533, Webb County, Texas, in accordance with Chapter 71 of the Texas Natural Resources Code and to further authorize the Civil Legal Department to negotiate the terms & conditions of the lease agreement and any other matters incident thereto.[Account #1001-1250-362100 Royalties]

Issue: Webb County authorized the solicitation of formal bids for the purpose of entering into a Non-Surface Use Oil and Gas Lease for a certain designated County-owned property described as an approximate 3.5-acre tract of land, more or less situated in Mrs. Mary Doss, Survey 1593, Abstract 533, Webb County, Texas.

Solution: Consideration to award to sole bidder Proven Energy, LLC., for a two (2) year term, a royalty of 25% and a bonus of $2,500.00 per acre or total of $8,750.00.

Result: If approved, authorize General Counsel to proceed with the preparation of a Non Surface Use Oil and Gas lease between Webb County and Proven Energy, LLC.

Background:

N/A

Previous Court Action:

Fiscal Impact

Budget Account Number:	1001-1250-362100
Funding Source:	Royalties
Balance:	N/A
Financial Impact:
1001-1250-001-362100 (Royalties / Revenues)

Attachments
Proven Energy LLC