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HomeMy WebLinkAboutC-1391 - Sale of crude oilCITY OF NEWPORT BEACH CALIFORNIA 6 7v City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 DATE August 3, 1971 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. 1391 Description of Contract Sale of Crude Oil Authorized by Resolution No. 7502 , adopted on 7 -26 -71 Effective date of Contract July 2, 1971 Contract with Qlamplin Petroleum Company Address 444 Houston Natural Cas Houston, Texas 77002 Amount of Contract see contract city Clerk 0 October 29, 1971 Mr. R. Armstrong P. 0. Box 1546 Newport Beach, CA 92663 46 Enclosed is a copy of the agreement between Champlin Petroleum Cogmy and the City of Newport Beach for the purchase of crude oil. This agreement was authorized by the City Council by the passage of Resolution No. 7502 on July 26, 1971. ,aura Lagios City Clark LL:swk enc. cc: City Attorney Assistant City Manager 40 August 3, 1971 Champlin Petroleum Company 444 Houston Natural Gas Building Houston, Texas 77002 Attention: Mr. Kenneth A. Potter, Manager Crude Oil Trading Dncicsed is a copy of the agreement with the City of Newport Beach for the puzrhase of crude oil. This agreement was authorized by the Ci*y Ccunoil lv the passage of Resolution No. 7502 on July 26, 1971. Doris M. George Deputy City Clerk; DM:swk enc. a CRUDE OIL PURCHASE ALES CONTRACT ORIGINAL, �Ty IIIIS CDNi ?ACT. dated this 2nd _day of Julys 1971, by and between CITY OF HEWFOM MAM as first party, hereinafter called the Seller. and CHAWLIN PETRZOLEMI COMPANY, a corporation, as socond party, hereinafter called the Buyer, VITNESSETH: 1. TERM. The term of this Contract shall commence on the. 1st day of August. 1971, and shall end on the 31st day of July, 1972. This Contract is also subject to termination at the option of Buyer under the circumstances set forth in paragraph 14. 2. QUANTITY. The Seller hereby sells and agrees to deliver to the Buyer all the crude petroleum oil (herein called the "Crude "), subject to the maxisaaa limitation set forth in paragraph 12 hereof of a gravity of not less than seventeen (17') degrees A.P.I. at a temperature of sixty de- grees Fahrenheit produced during the term hereof by the Seller from the properties situated in the Wilmington oil field on property more particularly described in paragraph 3 hereof. 3. PROPERTY DESCRIPTION. The description of the property in- ctuded within the terms and provisions of this Contract is set forth at length in Exhibit One, attached hereto and made a part hereof. 4. GUARANTEE. The Seller represents that the Crude to be pro- duced from the above property and the right of the Seller to deliver same are free and clear of encumbrance or other obligation, and Seller hereby warrants title to all Crude delivered hereunder. Seller agrees to indemnify and hold harmless the Buyer from all loss, damage, cost or liability which it may sustain by reason of any encumbrance or other obligation affecting the right of the Seller to produce, sell or deliver crude, or by reason of the title to Crude not being in the Seller or by reason of Crude not having been produced in strict compliance with all applicable laws, and rules and regulation issued thereunder. 5. DELIVERY. All deliveries hereunder are to be made from the tankage of Seller situated an the property described in paragraph 3 hereof and either (i) into the pipeline facilities of Standard Oil Company of Calif- ornia. Western Operations, Inc., for the account of Buyer, or (ii) into tank trucks nominated by Buyer as specified in paragraph 14 thereof. All deliveries made under this agreement shall be gauged either in the tankage of the Seller 0 -2- 0 or through appropriate LACT units. Delivery shall not be considered made nor shall title to Crude pass to Buyer until crude has been delivered into pipeline or tank truces nominated by Buyer. When required by Buyer. the Seller will deliver ail crude of a gravity under twenty degrees (20 °) A.P.I. at a temperature not less than one hundred degrees (1000) Fahrenheit nor more than one hundred seventy degrees (170 °) Fahrenheit: the proper tempera- ture within this range being dependent upon the gravity of the Crude. Buyer will advise Seiler of the proper temperature. 6. GRAVITY. The gravity of the Crude delivered hereunder shall be determined in accordance with A.S.T.H. 287 in its latest revision. 7. B. S. 8 W. The B. S. 1 W. content of the Crude delivered hereunder shalt be determined in accordance with A.P.I. Standard 2500 in Its latest revision. using such mutually satisfactory cutting solution as will fully precipitate the B. S. ! W. determined in the Crude by the above tests. buyer shall make a deduction for all B. S. 3 W. as determined by the tests heminabove mentioned. Buyer shall have the right to refuse to accept any Crude containing in excess of three percent (3f) B. S. A W. In the event Buyer agrees to accept Crude in excess of three percent (3t) B. S. d W.. then Buyer shall charge a dehydration charge and Seller agrees that said charge can be deducted by Buyer from payments hereunder. 8. TEMPERATURE. Sixty degrees (600) Fahrenheit is established as the normal temperature for all crude delivered hereunder. Correction in volume for Crude delivered at temperatures other than sixty degrees (600) Fahrenheit shall be made according to the "Standard Abridged Volume Correction Table for Petroleum Oils" A.S.T.H. designation 0- 206 -36. 4. SAMPLES. All samples for testing shalt be taken from delivery tanks or from the automatic sample container on the LACT unit and shalt re- present a composite of the crude oil to be delivered hereunder. It is expressly understood and agreed that Buyer shall not be re- quired to accept any Crude produced in violation of the orders of any properly constituted State or Federal authority or produced in excess of the quotas fixed from time to time by any reasonable conservation or curtailment program or fixed by the Oil Umpire or any deputy umpire of the State of California. 10. TESTING. Buyer shall notify Seller prior to conducting gravity or B. S. 6 W. tests. Tests shall be conducted in the presence of a represents- tive of the Seller if the Seller so requests. • -3- 11. MAXIMUM! LIMIT. Buyer shall not be required to accept Crude under this Contract in excess of fifteen thousand (18,000) barrels during any one month. In the event the total quantity of oil available for delivery in any one month should exceed the fifteen thousand (15,000) barrels specified herein, Seller shall notify Buyer of such excess. Within ten (10) days after such notification by Seller, Buyer shall advise Seller in writing whether it is willing to accept the excess in accordance with the teams of this agreement or is declining to purchase the sans. In the event Buyer declines to purchase the excess, Seller may make the surplus quantities available to any other buyer. 12. INTERRUPTION OF DELIVERIES OR RECEIPTS. In the event of any temporary interruption of the operations of Seller by reason of or caused by or arising out of strikes, fires, washouts, sanding of wells. breakage of equipment, tankage or pipe lines, war, declared or undeclared, inevitable cause, or any cause whatsoever, not under the control of Seller, the Seller shall not be required to deliver Crude hereunder during the period of such temporary Interruption, but deliveries shall cwemenee immediately upon the cessation of such temporary interruption. In the event of the total or partial temporary interruption of the business of the Buyer by reason of or caused by or arising out of any of the aforesaid causes, or any cause whatsoever, not under the control of the Buyer, the Buyer shall not be required to receive any Crude here- under during the period of such temporary interruption but receipt thereof shalt commence imnmediately upon cessation of such temporary interruption. 13. PRICE. For all crude oil delivered hereunder by Seller Into the facilities of Standard Oil Company of California, Western Operations, Inc., pipeline! system for the account of Buyer, Buyer agrees to pay and Seller agrees to accept the price posted by Standard Oil Company of California, Western Operations, Inc., for crude oil of like volume and gravity as posted by Stan- dard Oil Company in their Schedule #149 dated November 24, 1970, for Newport (other than Anaheim Sugar area) listed in Column 1 of the above Schedule. From time to time and as often as Standard Oil Company, for any reason, refuses to accept for the account of Champlin, crude oil from the properties as des- cribed in this agreement and it is necessary for Champlin to purchase and move the crude by tank truck, then the price which Buyer agrees to pay and Seiler agrees to accept will be the price as listed above less the cost to Buyer of the tank truck movement from the lease tanks to Buyer's Wilmington, California refinery. -4- 0 14. IRREGULAR DELIVERIES. If at any time Crude offered for delivery hereunder shall not be within the limitations and specifications herein prescribed, Buyer, at its option, may accept such.Crude, but no such acceptance shall be deemed a waiver of Buyer's right at any time thereafter to require deliveries hereunder to strictly conform to the herein limitations and specifications, or the Buyer's right to thereafter refuse to accept oil not conforming to said limitations and specifications. 15. PAYMENT. All payments for Crude delivered hereunder shall be made to Seller or to Seller's assignee named in a written assignment which has actually been received by Buyer at the time payment is due hero- under. Such payment for Crude delivered hereunder in any calendar month shall be made on the twentieth (20th) day of the following month. If, It the time any payment is due but unpaid, a conflicting claim or claims are or may be made against Buyer as to title of Seller or Seller's assignee to any Crude delivered hereunder or any part thereof or any payment due here- under or any portion thereof, Buyer may, (i) withhold all payments then and thereafter becoming due pending final determination of the rights of con- flicting claimants or (ii) file an appropriate action in interpleader and thereafter discharge all further obligations to make payments hereunder, by paying the Court the amount of any withheld payments as.well as all payments thereafter becoming due. A conflicting claim or claim shall be deemed to exist whenever Buyer has reason to believe that there is any de- fect in Seller's title to the Crude produced from the property described in Paragraph 3, including but not limited to any attachment or any lien asserted on any Crude delivered hereunder or any payment therefor otherwise due here- under. In the event that such conflicting claim exists at any time then Buyer may terminate this Contract by thirty days' written notice to Seller. In the event there shall be imposed by any properly constituted governmental authority, a sales tax in addition La any such taxes as now existing, Seller agrees to pay the same, further agreeing that if they be not paid by Seller, they may be paid by Buyer and deducted from the amount of payments otherwise due hereunder. • 16. NOTICES. 11 -5- Any notice required or desired to be served hereunder army be served by registered U. S. Mail, postage prepaid with return receipt requested and addressed to the parties hereto at the addresses indicated below or at such address as either party may desig- nate by notice to the other: Champlin petroleum Company 444 Houston Natural Gas Building Houston, Texas 77002 City of Newport Beach 3300 Newport Boulevard Newport Beach. California 92660 Notice by mail shall be deemed served on the expiration of the second business daffy following mailing. Everything herein contained which binds or affects the parties hereto shall in like manner bind and affect their respective successors and assigns. IN WITNESS WHEREOF, the said parties hereto have caused this Contract to be executed in duplicate. ATTEST: Deputy City rk CHAMPLIN PETROLEUM COMPANY B Maanag- er,`Gru a U11 Trading CITY OFF NEW'POff BEACH yor EXHIBIT ONE All those certain uplands, tidelands, sub- merged lands and filled lands owned by the City of Newport Beach, lying between the southwesterly prolongation of the southeasterly line of 53rd Street, as said 53rd Street is laid out and shorn upon a map of Ocean Front Tract, Newport Beach, recorded in Book 4, page 12 of Miscellaneous Maps, records of Orange County, California, and the westerly boundary line of the City of Newport Beach, and south- westerly of the Northeasterly line of Ocean Front, formerly Ocean Avenue, as said Ocean Avenue is laid out and shown upon said map of Ocean Front, and map of Seashore Colony Tract, recorded in Book 7, page 25 of Miscellaneous Maps, records of said County. RE�C1,¢7IQN )O. 7502 A RESOLVW OF THE CITY COUNCIL OF TUB CITY OF =fPO BEACH AUTHORIZING THE MMCUTION OF All. AGREEPM?r BETWEEN THR CITY OF NWWORT BYACH AND CHAYPLIN )rT;TROLEUM CQ1 V)UW FOR 'THL PURCHASE OF CRUD: OIL REAS, there ha "-been presonted.to the City Council of the City of Newport Beach a certain contract between the City of Newport ".3eacth and Champlin Petroleum Company for the purchase Of crude oilj and U'1-OREAS, the City Council has considered the terms and conditions of said contract and found them to be fair and equitable t NCO, THEREFOR$, BN IT RESOLVED that said contract for the purclmae-of crude oil is approved, and the Mayor and City Clark are hereby authorized and directed to execute the same on behalf of the City of Newport Beach, ATTiST: ADOPTED this 26th day of July , 1971 li� Mayor CRUDE OIL PURCHASE /SALE CONTRACT THIS CONTRACT, dated this 2nd day of July 1971, by and between ARMSTRONG PETROLEUM CORPORATION as first party, herein- after called the Seller, and CHAMPLIN PETROLEUM COMPANY, a corporation, as second party, hereinafter called the Buyer, W I T N E S S E T H : 1. TERM. The term of this Contract shall commence on August 1, 1971, and shall end on July 31, 1972. This Contract is also subject to termination at the option of Buyer under the circumstances set forth in paragraph 14. 2. QUANTITY. The Seller hereby sells and agrees to deliver to the Buyer and the Buyer agrees to purchase and receive all the crude petroleum oil (herein called the "Crude"), subject to the maximum limita- tion set forth in paragraph 10 hereof of a gravity not less than seventeen (111 degrees A.P.I. at a temperature of sixty degrees Fahrenheit produced during the term hereof by the Seller from the property situated in the Newport oil field on property more particularly described in paragraph 3 hereof. 3. PROPERTY DESCRIPTION. Property known as the Banning Lease more fully described in Exhibit A 5 B attached hereto and made a part hereof. 4. GUARANTEE. The Seller represents that the Crude to be produced from the above property and the right of the Seller to deliver same are free and clear of encumbrance or other obligation, and Seller hereby warrants the title to ail Crude delivered hereunder. Seller agrees to indemnify and hold harmless the Buyer from all loss, damage, cost or liability which it may sustain by reason of any encumbrance or other obliga- tion affecting the right of the Seiler to produce, sell or deliver Crude or by reason of the title to Crude not being in the Seller or by reason of Crude not having been produced in strict compliance with all applicable taws, and rules and regulations issued thereunder. 5. DELIVERY. All deliveries hereunder are to be made from the tankage of Seller situated on the property described in paragraph 3 hereof and either (I) into the pipeline system of Standard Oil Company of California, Western Operations, Inc., for the account of Buyer or (ii) • -2- • into tank trucks nominated by Buyer as and when the oil is produced and accumulated in approximately shipping tank lots. Deliveries shall be gauged in the tankage of Seller or through LACT meters. Delivery shall not be considered made nor shall title to Crude pass to Buyer until Crude has been delivered into pipeline or tank trucks nominated by Buyer. The Seller shall equip each delivery tank with a gate valve and shall connect its delivery tanks into a suitable suction line. Delivery tanks of Seller are to be calibrated by licensed tank calibrating engineers whenever, in the opinion of Buyer, such calibrating is necessary and such calibrations shall govern the measurement of Crude subsequently delivered from such delivery tanks. Cost of such calibrating is to be paid by Buyer when required by Buyer. The Seller will deliver all Crude of a gravity under twenty degrees (200) A.P.I. at a temperature of not less than one hundred degrees (1000) Fahrenheit nor more than one hundred seventy degrees (1700) Fahrenheit; the proper temperature within this range being dependent upon the gravity of the Crude. Buyer will advise Seller the proper temperature. 6. GRAVITY. The gravity of the Crude delivered hereunder shall be determined in accordance with A.S.T.M. 287 in its latest revision. 7. B. S. i W. The B. S. 8 W. content of the Crude delivered hereunder shall be determined in accordance with A.P.I. Standard 2500 in its latest revision. using such mutually satisfactory cutting solution as will fully precipitate the B. S. A W. determined in the Crude by the above tests. Buyer shalt make a deduction for all B. S. 8 W. as determined by the tests hereinabove mentioned. Buyer shall have the right to refuse to accept any Crude containing in excess of three percent (3%) B. S. 8 W. In the event Buyer agrees to accept Crude in excess of 3% B. S. 8 W., then Buyer shall charge a dehydration charge and Seller agrees that said charge can be deducted by Buyer from payments hereunder. 8. TEMPERATURE. Sixty degrees (600) Fahrenheit is established as the normal temperature for all Crude delivered hereunder. Correction in volume for Crude delivered at temperatures other than sixty degrees (60•) Fahrenheit shall be made according to the "Standard Abridged Volume Correction Table for Petroleum Oils" A.S.T.M. designation D- 206 -36. 9. SAMPLES. All samples for testing shall be taken from said delivery tanks by the Buyer in the presence of a representative of Seller, 0 -3 should Seller so desire. All such samples shall be tested by the Buyer at its laboratory or such other point as may be mutually agreed upon and, if required by Seller, shalt be made in the presence of its representative. It is expressly understood and agreed that Buyer shall not be required to accept any Crude produced in violation of the orders of any properly constituted State or Federal authority or produced in excess of the quotas fixed from time to time by any reasonable conservation or curtailment program or fixed by the Oil Umpire or any deputy umpire of the State of California. 10. MAXIMUM LIMIT. Buyer shall not be required to accept any Crude in excess of 2,000 barrels in any one month. i1. INTERRUPiION OF DELIVERIES OR RECEIPTS. In the event of any temporary interruption of the operations of Seller by reason of or caused by or arising out of strikes, fires, washouts, sanding of wells, breakage of equipment, tankage or pipe lines, war, declared or undeclared, inevitable cause, or any cause whatsoever, not ender the control of Seller, the Seller shall not be required to deliver Crush' hereunder during the period of such temporary interruption, but deliveries shall commence im- mediately upon the cessation of such temporary interruption. In the event of the total or partial temporary interruption of the business of the Buyer by reason of or caused by or arising out of any of the aforesaid causes, or any cause whatsoever, not under the control of the Buyer, the Buyer shall not be required to receive any Crude hereunder during the period of such temporary interruption but receipt thereof shall commence immediately upon cessation of such temporary interruption. 12. PRICE. For all Crude oil delivered under this Contract into the pipeline facilities of Standard Oil Company of California, Western Operations, Inc., for the account of Buyer, Seller agrees to accept and Buyer agrees to pay, except as herein otherwise provided, the current price on the date of delivery, as posted by the Standard Oil Company of California, Western Operations, Inc., for Crude from the Newport field of tike grade and gravit,.,. For all Crude oil delivered by Seller into tank trucks as nominated by Buyer. Seller agrees to accept and Buyer agrees to pay a price equal to the prices posted by Standard Oil Company of California, Western Operations, Inc., for Crude oil of like grade and gr ^vity less the actual trucking cost of trucking 0 -4 0 the Crude from the tanks situated on Seller's property to Buyer's facilities located in Wilmington, California. Buyer shall not be obligated to accept Crude into tank trucks in less than minimum tank truck toads. 13. IRREGULAR DELIVERIES. If at any time Crude offered for delivery hereunder shall not be within the limitations and specifications herein prescribed, Buyer, at its option, may accept said Crude, but no such acceptance shall be deemed a waiver of Buyer's right at any time thereafter to require deliveries hereunder to strictly conform to the herein limitations and specifications, or the Buyer's right to thereafter refuse to accept oil not conforming to said limitation and specifications. 14. PAYMENTS. All payments for Crude delivered hereunder shalt be made to Seller or to Seller's assignee named in a written assign- ment which has actually be received by Buyer at the time payment is due hereunder. Such payments for Crude delivered hereunder in any calendar month shall be made on or before the twentieth day of the following month. If, at the time any payment is due but unpaid, a conflicting claim or claims are or may be made against Buyer as to title of Seller or Seller's assignee to any Crude delivered hereunder or any part thereof or any payment due hereunder or any portion thereof, Buyer may, without incurring liability, (i) withhold all payments then and thereafter becoming due hereunder pending final determination of the rights of conflicting claimants or (ii) file an appropriate action in interpleader and thereafter discharge all further obligations to make payments hereunder, by paying the Court the amount of any withheld payments as well as all payments thereafter becoming due. A conflicting claim or claims shalt be deemed to exist whenever Buyer has reason to believe that there is any defect in Seller's title to the Crude produced from the property described in Paragraph 3, including but not limited to any attachment or any lien asserted on any Crude delivered here- under or any payment therefor otherwise due hereunder. In the event that such conflicting claim exists at any the during the term hereof then Buyer may terminate this Contract by thirty days' written notice to Seller. In the event there shall be imposed by any properly constituted governmental authority, a sales tax in addition to any such taxes as now existing, Seller agrees to pair the same, further agreeing that if they be not paid by Seller, they may be paid by Buyer tnd deducted from the amount of payments otherwise due hereunder. • -5 • 15. NOTICES. Any notice required or desired to be served hereunder may be served by registered U. S. Mail, postage prepaid with return receipt requested at the aldresses indicated below or at such other addresses as either party may designate by notice to the other: Champlin Petroleum Company 444 Houston Natural Gas Building Houston, Texas 77002 Armstrong Petroleum Corporation P. 0. Box 1546 Newport Beach, California 92663 Notice by mail shall be deemed served on the expiration of the second business day following mailing. Everything herein contained which binds or affects the parties hereto shall in like manner bind and affect their respective successors and assigns. IN WITNESS WHEREOF, the said parties hereto have caused this Contract to be executed in duplicate. CHAMPLIN PETROLEUM COMPAN Manager, Crude Oil Trading ARMSTRONG PETROLEUM CORPORATION BY. 0 • EXHIBIT A Beginning at the intersection of the northeasterly pro- longation of the centerline of Flat Street, 30 feet in width, of "Ocean Front Tract, Newport Beach ", as shown on a map recorded in Book 4, Page 12, of Nlscellaneow Maps, records of Orange County, California, and the northeasterly boundary line of said "Ocean Front Tract% running thence North 33031'30" East along said northeasterly prolongation of said centerline 120 feet to the point of intersection of the southwesterly prolongation of the centerline of 61st Street of "River Section, Newport Beach ", as shown on a map rccorde: in Book 4. Page 25 of Miscellaneous Maps, recordsoof said County, with the southwesterly boundary line of said "Fiver Section "; Thence South 56.28130" East 551.50 feet along the south - westerly linecof said "River Section" to the most southeasterly corner of Lot 1 of said "River Section "; Thence North 23'18'30" Nest 103.81 feet along the north- easterly line of lots 1 and 2 of Block 158 of said "River Section" to a point on the northeasterly line of Lot 2 of said "River Section "; Thence South 78 °20'30" East 46.50 feet along the centerline of the state highway to the northwesterly terminus of the ordinary high tide line of the Pacific Ocean in Newport Bay, being the "SOUTH LINE" established by the Decree rendered in the action entitled "City of Newport Beach, plaintiff, vs. Orange County Improvement Association and others, defendants, Case No. 23586, Superior Court of the state of California in and for the County of Orange ". a certified copy of which Decree was recorded September 19, 1928, in Book 201, Page 253 of Official Records of said County; Thence South 60.19'50" East along the said "SOUTH LINE" 693.19 feet; Thence South 11.00'34" Nest 260.59 feet to a point on the northeasterly line of Lot 5 in Block 54 of "Ocean Front Tract'. Newport Beach, as shown on a map recorded in Book 49 Page 12. of Miscellaneous Flaps, Records of Orange County. California; Thence north 56.28130" Nest along said northeasterly boundary line of "Ocean Front Tact" a distance of 1,299.17 feet to the point of beginning, and covering 5.135 acres, mom or less. IL 0 • EXHIBIT 8 A strip of land of irregular width, being a portion of that certain real property described in deed to the Pacific Electric Railway Company, recorded in Book 785, Page 453 of Official Records, in the Office of the Recorder of Orange County, and a portion of that certain real property "Second" described in deed to the Los Angeles Inter -Urban Railway Company, recorded in Book 103, Page 356 of Deeds, Records of Orange County, lying between the northwesterly bowtdary of the City of Newport Beach (being identical with the southeasterly line of Summit Street and the northeasterly prolongation thereof) and the center line of 53rd Street and the prolongation thereof across said strip of land. EXCEPTING therefrom the surface of said strip of land and the subsurface of said strip of land to a depth of 5OO feet measured from the surface of the ground. ALSO EXCEPTING therefrom the streets and alleys shown on Yap of Newport Beach, recorded in Book 3, Page 26 of Miscellaneous Maps, in the Office of the Recorder of Orange County. The above- described strip of land being subject to Easement for Highvay, described in Deed to the City of Newport Beach, dated June 17, 1926, and subject to Easement $or the Opening of Orange Street, 50 feet wide, by Dead dated September 280 1936, from the Pacific Electric Railway Company to the City of Newport Beach. Also a strip of land, 60 feet in width, adjacent to the southerly boundary of the above described strip of land, being a portion of those certain real properties "first" described in Dead& to the Los Angeles inter -Urban Railway Company, recorded in Deed Books 108, Page 244, and 103, Page 356, Records of Orange County, being also a portion of that certain real property described in Deed to the Los Angeles Inter -Urban Railway Company, recorded in Deed Book 139, Page 90 in the Office of the Recorder of Orange County, lying between the northenastarly boundary of the City of Newport Beach (being Identical with the southeasterly line of Summit Street and the northeasterly prolongation thereof) and the center tine of 53rd Street and the pro- longation thereof across said strip of land. EXCEPTING therefrom the surface of said strip of land and the subsurface of said strip of land to a depth of 500 feet measured from the surface of the ground. ALSO EXCEPTING therefrom all that certain real property described in Deed to Newport Beach Company, recorded in Book 139, Page 41 of Deeds, in the Office of the Recorder of Orange County. The above - described 60 foot strip of land being subject to Easement for the Opening of Orange Street, 50 feet wide. by Deed dated September 28. 1936, from the Pacific Electric Railway Company to City of Newport Beach. Subject also to the Opening or widening of a street along the southwesterly side by Condemnation No. 28144.