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Meeting Date:	04/08/2024
Approval of Oil and Gas Lease and accompanying Memorandum of Oil and Gas Lease
Submitted for:	Fortunato Paredes	Submitted By:	Fortunato Paredes
Department:	Civil Legal Division

Subject:

Discussion and possible action to approve a Two Year (April 8, 2024 through April 7, 2026) Non-Surface Use Oil and Gas Lease with accompanying "Memorandum of Oil and Gas Lease" with Proven Energy, LLC involving a 3.5-acre tract owned by Webb County with the County to receive a one-quarter (1/4) royalty on production and a bonus of Two Thousand Five Hundred dollars ($2,500) per acre ($8,750 total) for the lease of the tract, authorizing the County Judge to execute all relevant documents and any other matters incident thereto. [Receivable to the General Fund]

Issue: On August 14, 2023, Webb County authorized the County’s Purchasing Agent to solicit bids for the lease of a 3.5-acre tract located on Interstate 35 and just north of US 83 for mineral development.

Solution: On February 26, 2024, the Commissioners Court awarded Bid (ITB) 2024-002 to the sole bidder, Proven Energy LLC, for the mineral development of the 3.5-acre tract where Webb County are the sole owners of the mineral rights to said tract. The county employed the services of an oil and gas attorney, David Garcia Attorney-at-Law P.C., to negotiate the terms and conditions of the oil and gas lease.

Result: Approve the Non-Surface Use Oil and Gas Lease for a period of two years.

Background:

Background: Pursuant to Invitation to Bid 20240-002, Webb County is leasing for mineral development to a 3.5 acre tract whose minerals are owned by Webb County.

Previous Court Action:

None

Fiscal Impact

Budget Account Number:	N/A
Funding Source:	N/A
Balance:	N/A
Financial Impact:
Bonus Payment of $8,750.00 and 1/4 rouyalty interest on production

Attachments
Oil and Gas Lease