HomeMy WebLinkAbout6805 - Assignment of a Contract0
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6/21/68
RESOLUTION NO. 6805
A RESOLUTION OF THE CITY COUNCIL OF THE CITY. OF
NEWPORT BEACH CONSENTING TO THE ASSIGNMENT OF A
CONTRACT
WHEREAS, the City of Newport Beach pursuant to Resolu-
tion No. 4300 executed an Amendment to Contract dated January
31, 1955, in which Monterey Oil Company and Humble Oil & Refining
Company were referred to as "Contractor "; and
WHEREAS, the City of Newport Beach, pursuant to Resolu-
tion No. 5117 adopted November 9, 1959, consented to the transfer
of all the rights, privileges and obligations of the above men-
tioned Amendment to Contract to Humble Oil.& Refining Company, a
Texas corporation; and
WHEREAS, Humble Oil & Refining Company is presently the
sole owner of all rights, privileges and obligations under said
contract; and
WHEREAS, Humble Oil & Refining Company has requested
the City's consent to a conveyance of all its rights, privileges,
and obligations under said contract with the City of Newport Beach
to Armstrong Petroleum Corporation; and
WHEREAS, it appears that the transfer and assignment
would not interfere with the obligations of said company under
said contract;
NOW, THEREFORE, BE IT RESOLVED that the City hereby
consents to the transfer of the rights, privileges and obliga-
tions of Humble Oil & Refining Company, under said contract, to
Armstrong Petroleum Corporation upon the following conditions:
1. The transferee, Armstrong Petroleum Corporation,
shall expressly assume,under the terms of a conveyance, all of
the obligations and liabilities of Humble Oil & Refining Company.
2. The City shall be furnished a certified copy of
said conveyance.
3. An Amendment of Contract be executed, within 30
days of the date of this resolution, between the City and
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6/24/68
Armstrong Petroleum Corporation. Said Amendment to Contract shall
provide for the following changes-
(a) City Council approval shall be required prior
to the conduct of any form of secondary recovery work in the
City oil field.
(b) Improvements in existing landscaping and addi-
tional new landscaping improvements shall be provided on the
site according to a specific plan approved by the City.
(c) The liability insurance coverage to be pro-
cured by Armstrong, naming the City as an additional insured,
shall have limits of $100,000.00 $300,000.00 for personal
injury and $100,000 for property damage.
(d) That Armstrong agrees that the City shall have
the right to terminate the contract at such time that less
than seven of the present fourteen wells are in operation and
producing; further, that at all times the average production
for the operational wells will be a minimum of seven barrels
of oil per well per day, based upon the annual output.
(e) There shall be no assignment or transfer of
any part or parts of the contract without the consent of the
City Council.
(f) At such time as the City Council determines that
the operation of said oil field is creating a blight on the
community, Council may terminate contract by giving Armstrong
Petroleum Corporation one year's written notice to terminate.
ADOPTED this 24th day of June, 1968. n ��
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Mayor
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City Glerk
2.
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
Alok CITY OF NEWPORT BEACH )
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I, LAURA LAGIOS, City Clerk of the City of Newport Beach, California,
do hereby certify that according to the records of the City of Newport Beach
filed and maintained in my office, the foregoing Resolution No. 6805 was
duly and regularly adopted, passed, and approved by the City Council of the
City of Newport Beach, California, at a regular meeting of said City Council
held at the regular meeting place thereof, on the 24 day of June
by the following vote, to wit:
AYES, COUNCILMEN:
NOES, COUNCILMEN:
Marshall, McInnis, Rogers, Hirth, Gruber
None
ABSENT,
COUNCILMEN:
Shelton,
Parsons
Dated this
28 day of June
1968.
City Clerk and x -Of cio Clerk of the
City Council, City of -Newport Beach,
State of California
, 1968,