1998 09 16 BAWA MinutesMINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE BAYTOWN AREA WATER AUTHORITY
September 16, 1998
The Board of Directors of the Baytown Area Water Authority, Harris County,
Texas, met in regular session on Wednesday, September 16, 1998, at 7425 Thompson
Road, in the BAWA Conference Room with the following in attendance:
Robert L. Gillette, President
Dan Mundinger, Vice President
Peter R. Buenz, Secretary
Knox Beavers, Board Member
Roy L. Fuller, Board Member
The meeting opened with a quorum present, and the following business was
conducted.
Consider Approval of Minutes for the Regular Meeting on August 26, 1998
Board Member Mundinger moved for approval of the minutes for the regular
meeting held on August 26, 1998. Board Member Beavers seconded the motion. The
vote follows:
Ayes:
Nays:
Manager's Report
Board Members Beavers, Buenz, Fuller, Gillette, and Mundinger
None
Planergy Program Through Houston Lighting & Power — The Planergy Program
has requested eleven curtailments. BAWA has received a check for $3,951 for the two
curtailments in June. There were four curtailments in July with 130% participation
resulting in payment of $5,298. For the last five curtailments, the computer at the plant
reflected 120-130% participation. Therefore, BAWA should receive another check for
approximately $5,000 resulting in a total payment to BAWA of approximately $15,000
for this year.
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Minutes of the BAWA Meeting — September 16, 1998
Hold Public Hearing on Proposed Oil, Gas and Mineral Lease
President Gillette opened the public hearing of the Board of Directors of the
Baytown Area Water Authority concerning the bid received for the Oil, Gas and Mineral
Lease on the property located at 7425 Thompson Road, Baytown, Harris County,
Texas. Since there was no one present desiring to speak, the hearing was closed.
Consider Award of Oil, Gas, and Mineral Lease
The City Attorney explained that the lease grants the Lessee the right to explore,
prospect, mine and drill for oil, gas and sulfur and conduct various tests appurtenant to
such operation. The initial lease is for three years and will extend for so long thereafter
as gas or sulfur is being produced.
Royalty payments will be as follows:
Oil — 1/5 of all oil produced and saved by Lessee or the market price of all oil
produced and saved by Lessee
Less
1/5 of cost to treat oil to render it marketable.
Gas — 1/5 of the amount realized by Lessee or
When used by Lessee, 1/5 of the amount realized from the sale of gasoline or
other products and 1/5 the amount of residue gas.
Sulfur - $1.00 per long ton.
Shut-in royalty of $2.00 per acre.
Lessee is granted the power to pool.
At the expiration or termination of the Lease, Lessee must, when requested by
the General Manager of BAWA, remove all property and fixtures on the leased
premises. No well will be drilled within 200 feet of any building or structure located on
the property at the time of the execution of the lease without written consent. The lease
may be assigned by either party.
980916-3
Minutes of the BAWA Meeting — September 16, 1998
The administration recommended acceptance of the bid of Sanchez Oil & Gas
Corporation in the amount of $31,823.58 for Oil, Gas and Mineral Lease.
Board Member Buenz moved to award the bid to Sanchez Oil and Gas
Corporation. Board Member Beavers seconded the motion. The vote follows:
Ayes:
Nays:
Board Members Beavers, Buenz, Fuller, Gillette, and Mundinger
None
Manager's Report (continued)
Revenue Projections — The BAWA budget is based on 11 mgd, while the year to
date is up to 11.7 mgd, resulting in $250,000 extra revenue. This amount is offset by
the $50,000 paid for raw water.
Economic Growth — With the economic growth taking place in and around
Baytown, the administration will be coming to the board in early 1999 with a plan to
increase plant capacity and reliability.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
Peter R. Buenz
Secretary
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