FLATONIA CITY OF FLATONIA REGULAR CITY COUNCIL MEETING Council Chambers/City Hall 125 E. South Main, Flatonia, Texas October 4, 2023 City Council Meeting 6:00 pm AGENDA Opening Agenda Call to Order Invocation & Pledge Citizens' Participation Police Chief Utility Director Code Enforcement City Manager Consent Agenda Reports September Activity September Report September Report September Report C1. Consider and take appropriate action on the September 12, 2023 meeting minutes. C2. Consider and take appropriate action on the September 21, 2023 meeting minutes. C3. Consider and take appropriate action on the financial statements for September 2023. Discussion Agenda D1. Discuss nominees to fill the upcoming vacancy fori the City ofl Flatonia representativeont the Fayette County Appraisal District Board of Directors. D2. Discuss the Fiscal Year 2023-2024 budget for the Chamber of Commerce. Deliberation Agenda DA10.1.2023.1 Consider and take appropriate action to approve Resolution #2023.10.1 affirming the park boundaries for Memorial Park and directing the City Manager and City Attorney to coordinate cleanup and lighting of the park property, including removing: any remaining private items afterten(10)days. Consider and take appropriate action to approve the proposed city projects using funds from the GLOMOD grant. Thej projects include sludge removal from the wastewater treatment plant, replacing water well#10, and replacing Consider and take appropriate action to approve two designated parkings spots in front ofClover Connection for use during morning drop-off hours. Consider and take appropriate action to approve Ordinance #2023.10.1 revising the code ofordinances to delete the curfew established in ordinance #410 adopted March 3, 2007, an ordinance to establish curfew hours for Consider and take appropriate action to approve Resolution #2023.10.2 Considera and take appropriate action to approve the Contract for Assessment and Collection Services with the Fayette County Appraisal District. Consider and take appropriate action to approve Ordinance #2023.10.2, an ordinance relating to the use ofhotel occupancy taxes fort the construction of improvements related to interconnectivity and accessibility between municipal parks and local tourist attractions and lodging. Consider and take appropriate action to approve the proposed oil and gas lease with Rosewood Resources. The proposed property location is 21.936 acres, M. Muldoon League #14, A-76 and the W.A. Faires Survey, A-180 DA10.1.2023.2 AC water lines on the southwest side of town. DA10.1.2023.3 DA10.1.2023.4 minors of the City of Flatonia, Texas. DA10.1.2023.5 DA10.1.2023.6 DA10.1.2023.7 updating the hazard mitigation action plan. DA10.1.2023.8 Fayette County, Texas. Adjournment I,t the undersigned authority dol hereby certify that thel Notice ofMeeting was posted on thel bulletin board outside the front door oft the City Hall ofthe City ofFlatonia, Texas, aj place convenient and readily accessible to the general public at all times and said) Notice was posted on the following date and time September: 29,2023, by 5:00 p.m. andi remained so] posted continuously for at least 72 hours preceding the scheduled time ofs said meeting. Jacqueline Ott, City Secretary, City of Flatonia NOTICEOF ASSISTANCE AT THE PUBLIC MEETING EXECUTIVE SESSION STATEMENT The City Council reserves the right to adjoum into The Flatonia City Hall is wheetchair accessible. executive session at any time during the course of this Access to the building is available at the primary meeting to discuss any of the matters listed above, as entrance: facing Main! Street. Persons with disabilities authorized by the Texas Government Code, Section who plan to attend this meeting and who may need 551.071 (Consultations with Attorney), 551.072 auxiliary aids or services such as interpreters for (Deliberations about Real Property), 551.073 persons who are deaf or hearing impaired, readers, or (Deliberations Regarding Gifts and Donations), 551.074 large print are requested to contacti the City Secretary's (Personnel Matters), 551.076 (Deliberations Regarding Office at 361-865-3548 or by FAX: 361-865-2817 at Security Devices or Security Audits), 551.086 (Certain least two working days prior to the meeting sO that Public Power Utilities: Competitive Matters) and: 551.087 appropriate arrangements can be made. (Deliberation Regarding Economic Development Negotiations). Agenda Removal Notice This Public Notice was removed from the official posting board at thel Flatonia City Hall on the following date and time: By: Jacqueline Ott, City Secretary, City of Flatonia FLATONIA POLICE DEPARTMENT 205 E. South Main St. Flatonia, TX78941 Office: 361-865-3337 Fax: 361-865-3039 September 2023 Monthly Report To: From: Subject: Calls for Service: Flatonia City Council Flatonia Police Department September Monthly Report There were 399 calls for service for this month. Offense /Incident Report Activity: On September 1, 2023, Officer Kalina and Sergeant Tunis responded to a report of multiple grass fires. Officer Kalina and On September 6, 2023, Officer Roggenkamp was dispatched to a disturbance involving two females. Officer Roggenkamp was able to diffuse the situation, obtain photos and video, and transport one subject to Fayette County. jail. On September 8, Flatonia ISD celebrated "First Responder Recognition Night."F Fire, EMS, and Police departments from the area were honored on thet field before the Flatonia homecoming football game. Chief Lee Dick, Sergeant Trey Tunis, Investigator Geneva Titus, and OfficerTaylor Amos attended to represent the Flatonia Police Department. On September 12, 2023, Investigator Titus spoke at a Lions Club meeting regarding financial crime and local criminal trends. On September 14, 2023, Officer Amos responded to a report ofay pregnant female who was feeling ill and possibly suicidal at aconvenience store. When Officer Amos arrived, the female advised she was suffering from emotional distress. Officer Amos spent time talking with the female until the situation was resolved and the female agreed to go to a medical center. On September 14, a severe storm passed through Flatonia. Reported damage included power outages, blocked roadways and property damage. Sergeant Tunis, who was the on-duty officer at the time, Officer Amos, who stayed on after her regular shift, and Chief Dick who responded from his home, assisted the fire department, city crews, and others during the Sergeant Tunis assisted the Flatonia Fire Department in extinguishing the fire. storm and throughout the night as residents began to assess and report damages and issues. NO FURTHER DETAILED INFORMATION IS PUBLISHED DUE TO ON GOING INVESTIGATION OF CASES. Arrests and Pending Charges There was 1 (one) direct custody arrest for the month of September. Traffic Contacts: All Flatonia Police Officers, including command staff, have conducted traffic control throughout the city and specifically in the areas of town that complaints have been received related to speeding and stop sign violations. Flatonia officers will continue to conduct stationary and mobile radar and observe traffic at intersections to address the traffiç concerns. On September 13, Chief Dick attended an 8-hour Geriatric Education for EMS Course held at Fayette County EMS Headquarters. This course focuses on assessment and treatment of older patients and various special considerations when encountering older patients. Thank you to Cordial Emergency Medical. Services LLC and Fayette County EMS for the On September 18, 2023, Chief Dick completed an online course on 12-Lead EKG's and presentation of non-STEMI and STEMI On September 19, Investigator Geneva Titus beganreceiving training in background investigations in accordance with TCOLE On September 25, 2023, Chief Dick participated in online training on Chronic Obstructive Pulmonary Disease as part of On September 26, 2023, Chief Dick completed online training related to electric and hybrid vehicle fires as part of continuing In-Service Training and Events: opportunity to attend this course. myocardial infarctions as part of Paramedic recertification. and department policies and procedures. Paramedic recertification. education for TCFP recertification. August Type Number Agency Assist Accidents Animal Complaint Citizen Assist Civil Matter Close Patrol Funeral Escort Ministerial Voucher Motorist Assist School Patrol/Security Suspicious Person Traffic Hazard Transient Call Walk In Disturbance Welfare Check Traffic Stops Incident Reports Offense Reports Follow Ups Scam Traffic Control Training Other Total 8 5 2 0 4 108 1 1 1 101 2 0 0 3 3 1 70 11 7 5 0 57 4 6 399 Flatonia Police Department September 2023 9/1 Hook up temporary electric: service for new house on Walnut. Hook up new electric service on E. South Main. Work on 5thSt. Work on N. Converse. Tighten secondary on line in Praha. Hi Ranger not operatingproperly. 9/4 9/5 Sewer blockage in Hwy 90 between Elm & Pecan Take Hi Ranger to LCRA for repairs, brought home when finished. Sewer blockage in Hwy 90 between Elm & Pecan Online meeting with Langford & Assoc. Escort house move. 9/6 Sewer blockage on 90 @ Elm. Repair water leak at Mill & 3rd. Clean up area where Grifaldo house stood. Meet with Befco about AC line replacement. Work on 7th St, 95 to Market. 9/7 TXDOT sidewalk crew hit water line @ Flatonia Wildcat, repaired. Patching. Patching 9/8 9/11 9/12 Working on drive @ Grifaldo place Work on park road through Grifaldo drive 9/13 Park road Change meter size @ 7a acre for RR construction. 9/14 Read meters. Storm blew in, worked all night clearing limbs from streets & electrical outages. 9/15 Continue with storm repair. Read meters. Replace secondary on house on W 7th near Tom Green after hours. 9/16 Limbs down on a power line on S Mill. Clear trees blocking W Old Spanish Trail. Repair water leak on Hackberry near 10th. Repair water leak on 5 Mile Creek Rd. near the creek 9/18 Finish reading meters. 9/19 Pulled aerator out of sewer plant, motor shorted. Pullp pump out of lift station #6, unclog and reinstall. Cover water line @ 7acre, reset valve stack. Disconnect electrical service @ residence on Penn @ 3rd. Service replacement. Repair 4 streetlights. Cut fallen tree off of secondary on Arnim Ln @ N Converse. Foundation to 7-acre park restrooms poured today. Hook up new electric service on Penn @ 3rd. Take aerator motor to Electric Motor Service in LG. Put in meter pole for new residence on 955. Put in meter pole for 7 acre park. Haul downed trees to sewer plant Picked up Altec @ LCRA (not repaired) Begin hauling trees to sewer plant. 9/20 Repair water leak on S. Converse near 6th 9/21 Repair water leak on S. Mill. Take Altec to Houston Altec repair facility. Remove fallen tree from TXDoT Hwy 90 ROW Hook up repaired electric service on E6 6th St. Hook up new electric service on Barium Ln. Replace culvert for a customer on N. Hudson. Replace water meter & valve on WS 9th & Colorado. Repair downed primary neutral on FM 154 Hook up new electric service on Hwy 90W. 9/22 9/24 Call to check AC not working very well @ the Civic Center. Found bad compressor on 1 Call to shut off water at residence on Hwy 90E @ Garbade Lane due to water leak. unit. 9/25 Limb pickup Cut tree hanging on cable & phone lines putting stress on adjoining poles. 9/26 Limb pickup Meet with Synagro and Befco about sludge in pond #1 Replace cut edge on maintainer. After hours call for power out near the school. 7/27 Limb pickup Repair water leak on 11thSt. near Market St. Cut limbs off secondary on Hwy 90E. 9/28 9/29 Limb pickup Power outage at the golf course Limb pickup. Trim limbs out of electric lines on Faires near Old Hallettsville. o FLATONIA) CODE COMPLIANCE OFFICE 125 E. South Main St. PO Box 329 Flatonia, TX 78941 To: Flatonia City Council From: Araceli Mancilla de Hernandez Subject: Monthly report Date: September: 2023 Compliance Report Summary Araceli Mancilla de Hernandez, Code Compliance Official Phone: 361-865-3548 Email: ode@c.ftatonia.tkus 6Citizen Concerns/Complaints 1Field Investigation Spots Tall grass/weeds-4 Trash/debris-3 Bulding/structures- Junk vehicles- 2nd, notice = Phone calls made for: Trash/debris- In-person meetings: Trash/debris- Letters sent for: Notes: Working with al business owner to clean up trash/debris around their property after several citizen complaints. City Manager'sl Report To: Mayor Geesaman & City Council From: Sonya Bishop, City Manager Re: Monthly City Manager's! Report CC: Staff Date: 10/4/2023 Mayor and Council, 1. Planning and Zoning: a. Possibly approving a structure variance, subdivision ordinance street variance and a replat. 2. Economic Development: on this project. a. EDC voted tol have lightsi installed at Memorial Park. Ginny Sears is working with Jack b. EDC has two BIP grant applications. One is processed with documentation, however the other was submitted with handwritten receipts signed by the business owner. Those receipts are not applicable to the grant. Code Enforcement: a. Are report will be submitted. Road Construction: a. TxDOT continues to work on the sidewalk project. They will start Highway 90 b. Met with TxDot to discuss having al handicap accessible cross walk installed. They are going to work on the project. The challenge is the corner where the museum is. This will not be ai fast project that can take 18 months or longer. Also, discussed the dangerous intersections, flooding, and sidewalks towards Amigos. sometime in April or May. Utility Projects: a. The GLO CDBG MIT SUP 22-119-001-D359 grant for the sewer is moving along and there is nothing new to report. Parks and Pool: a. The pool has been resurfaçed. b. The restrooms at 7 Acre Park are in thej process ofb being built. Jack received al bridge that he would be putting over the creek at the park. This was d. The Parks Committee President and I spoke about changing those meetings to given to the city by the county. quarterly. Administration: a. There was significant damage during the storms, as you are all aware. A gentleman named Brad Baron was driving through Flatonia and saw the damage; he contacted me and asked ifH he could help by volunteering his equipment and workforce. Ia accepted his generous offer and compiled a list. He went to New Braunfels to get his gear and came out to help clean up private properties from the trees, etc. This man had no connections to Flatonia but saw needy folks and wanted to help. Having this man do sO much for a community he doesn'tl live in was greatly appreciated. Financial Report: a. The auditors are working on the 2020 budget and sadly we are running into worse problems with this audit than in 2019. We are going to do our best. This concludes the City Manager Report for submission at the October 4, 2023, City Council meeting. FLATONIA Minutes Flatonia City Council Public Hearing September 12, 2023 at 5 p.m. PH9.1.2023.1 Mayor Geesaman opened the public hearing at 5:02 p.m. The proposed Fiscal Year 2023-2024 budget was discussed at a series of special budget in August. meetings There was no citizen participation. Mayor Geesaman closed the public hearing at 5:03 p.m. Regular Meeting September 12, 2023 at 6 p.m. Present: Mayor Mayor Pro Tem Councimembers Dennis Geesaman Joanye Eversole Ginny Sears Allen Kocian Donna Cockrell Travis Seale Sonya Bishop, Jacqueline Ott Lee Dick Jack Pavlas City Manager City Secretary Police Chief Utilities Director Opening Agenda Call to Order Mayor Geesaman called the meeting to order at 6:01 p.m. Invocation & Pledge Councilman' Kocian led the invocation and pledges. Citizen Participation in the mornings. Reports Police Chief Utility Director Dawn Wulfs spoke as aj parent requesting ac designated drop-offzone at Clover Connection Daycare August Activity August Report Councilman Seale commented on citizen complaints regarding thej potholes in the parking lot near. Josesito'srestaurant. It was noted that potholes area line item on: the upcoming budget. Councilman Seale asked if TXDOT would consider adding sidewalks on the north side of I-10, and City Manager Bishop informed Council that the TXDOT representative said not Mayor Geesaman stated something must be done with the truck parking lot at Amigo's Travel Center. It was decided to escalate thej process to: fine the property owners due to the lack of action on previous clean-up requests. at this time. Code Enforcement August Report City Manager Presentations August Report Erica Grimm with YOLOTX Statewide Travel TV Show presented to the filmed advertisement for the City of Flatonia. They were attracted to Flatonia Council, the pitching a Joseph Willrich and Bradley Loehr with Befco Engineering presented the tentative projects to be completed with the upcoming grant money. They also discussed other ongoing projects. but are open to recording other areas oft the city. by Czhilispiel Consent Agenda C1. C2. C3. Councilman Seale motioned to approve the August 8, 2023, meeting minutes. Councilwoman Cockrell seconded the motion. None opposed. Councilman Seale motioned to approve the August 22, 2023, meeting minutes. Councilwoman Cockrell seconded the motion. None opposed. Councilman Seale made a motion to approve the financial statements for August 2023. Councilwoman Sears seconded the motion. None opposed. Motion carried. Motion carried. Motion carried. Discussion Agenda D1. Ity was discussed to add designated parking for Clover Connection Daycare. Mayor Pro Tem Eversole suggested the surrounding business owners find a private solution. This will be added as a deliberation item on the agenda at Itv was discussed to fill the vacancy for the City of Flatonia representative on the Fayette County Appraisal District Board of Directors. City employees are not allowed to serve. This will be added as a deliberation Itv was discussed tol have thei Public Hearing to approve thel Fiscal Year 2023- 2024 tax' rate on Thursday, September 21, 2023, at 5:00 p.m. The Special City Council meeting will take place immediately after at 5:15 p.m. the next regular meeting. D2. item on a future agenda. D3. Deliberation Agenda DA9.1.2023.1 DA9.1.2023.2 Councilwoman Sears moved to approve Ordinance #2023.9.1. Mayor Pro Tem Eversole seconded the motion. None opposed. Motion carried. Councilman Seale moved to approve using HOT funds tol hire YOLOTX to create one 6-minute segment about the City of Flatonia and one 4-minute segment about Czhilispiel marketing video. Councilwoman Cockrell Councilman Kocian moved to end the meeting. Councilman Seale seconded the motion. None opposed. Motion carried. Mayor Geesaman seconded the motion. None opposed. Motion carried. Adjournment adjourned the meeting at 7:43 p.m. Signed Dennis Geesaman Mayor Attest Jacqueline Ott City Secretary FLATONIA Minutes Flatonia City Council Public Hearing September21, 2023 at 5 p.m. PH9.2.2023.1 Mayor Geesaman opened the public hearing at 5:00 p.m. The proposed Fiscal Year 2023-2024 tax rate was discussed at a series of special budget meetings in August. There was no citizen participation. Mayor Geesaman closed the public hearing at 5:01 p.m. Special City Council Meeting September 21, 2023 at 5:15 p.m. Present: Mayor Mayor Pro Tem Councilmembers Dennis Geesaman Joanye Eversole Ginny Sears Allen Kocian Donna Cockrell Travis Seale Sonya Bishop Jacqueline Ott City Manager City Secretary Opening Agenda Call to Order Mayor Geesaman called the meeting to order at 5:15 p.m. Invocation & Pledge Councilman Kocian led the invocation and pledges. Deliberation Agenda DA9.2.2023.1 Adjournment Councilwoman Cockrell moved to approve Ordinance #2023.9.2. Councilman Seale seconded the motion. None opposed. Motion carried. Councilman Seale moved to end the meeting. Councilman Kocian seconded thei motion. None opposed. Motion carried. Mayor Geesaman adjourned the meeting at 5:30 p.m. Signed Dennis Geesaman Mayor Attest Jacqueline Ott City Secretary I Z 3 9 & * L I à V 8 8 88888 000 00 800000 &" 3 888 no Hoo 2 CV 8 88888 8 00000 d0 o 0888 E 80000 o &m 3 i : 38 45 e a - AAA A AAA AAA AAA e6 - E 5E AA A AR 88 4 e 3 338 da d0 10 de P oo : - 8 0o N d8 8 e - - - - R A RA 88 88 as $ 8 a3 88 4 88 4a 1 ee - - 00808 o o 280000 2F F 08888 6888 A 20000 o 88 22 33 8888888: 3 2 2 - I e E 8 2 22 - I la 9 & E 2 3 88888 0000 88888 000 - 3 00 088888 00000 a N 888888 a 00000 0888 88888 00000 d%e 8888 888888 Fayette County Appraisal District CHIEF APPRAISER Richard Moring RPA, RTA DEPUTY CHIEF APPRAISER Barbara A. Genzer RPA, RTA OFFICE MANAGER Amber R. Moerbe OFFICERS OF1 THEI BOARD Dudley Piland, Chairman Glenn Altwein, Vice Chairman Arnold Romberg, Secretary 111 South Vail Street P.O. Box8 836, La Grange, Texas 78945 Telephone 979-968-8383 FAX979-968-8385 August 1, 2023 Mayor Dennis Geesaman City of] Flatonia PO Box 329 Flatonia, TX 78941 Dear Mayor Geesaman, The term for Fayette County Appraisal District Board of Director, Mr. Brad Cosson, will expire on December 31, 2023. The city may re-appoint Mr. Cosson to another two-year term ending Please place this item on the city's agenda and return it to our office no later than November 30, 2023. New and returning directors will take their oaths of office at the January 2024 meeting of December 31, 2025 or select another director. the district's board of directors. Ifyoul have any questions do not hesitate to contact me at (979)968-8383. Respectfully, Richard Moring Chief Appraiser Below are the Flatonia Chamber of Commerce HOT funds 2024 budget details. Salary (60%) $24,000 Advertising $3,200 Office Supplies $1,300 Website Billboard CZ Advertising $3,000 2024TOTAL $33,750 Prior year funds $33,752 $1,750 $500 Please let me know ify youl have any questions or require further details. Regards, Casey Ring CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.1 Consider and take appropriate action to approve Resolution #2023.10.1 affirming the park boundaries for Memorial Park and directing the City Manager and City Attorney to coordinate cleanup and lighting of the park property, including removing any remaining private items after ten (10) days. Summary: An ordinance to affirm the park boundaries for Memorial Park. Option(s): Imove to approve Resolution #2023.10.1. If you are opposed to not 2nd or make any motion. If a motion is not made, the item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, if the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. RESOLUTION: #2 2023.10.1 A RESOLUTION OF THE CITY OF FLATONIA, TEXAS APPROVING AFFIRMING THE PARK BOUNDARIES FOR MEMORIAL PARK AND DIRECTING THE City Manager ANDCITY ATTORNEYTOCOORDINATE CLEANUP AND LIGHTING OF THE PARK PROPERTY, INCLUDING REMOVAL OF ANY PRIVATE ITEMS REMAINING AFTERTENDAYSOFAPFROVALOFTHE RESOLUTION. WHEREAS, Ordinance 2021.5.2 WHEREAS, the City Council has been advised and has determined that the rules and regulations proposed by the City Manager and the Parks Committee will benefit the City of] Flatonia and its citizens and promote the public good and health. WHEREAS, section Sec. 1.13.001 of Ordinance 2021.5.2 states No person shall: A. Deposit any earth, sand, rock, stone, mineral, oil, or other substance within any park facility, dig or remove any such material from within any park facility. Nor shall he erect or attempt to erect any building or structure of any kind by driving or setting up posts or piles, ori in any City of] Flatonia. WHEREAS, Ordinance 2021.5.2 adopted May 11, 2021 Page 2 of 12 manner appropriate or encumber any portion of the real property owned, operated, controlled, or managed by the City, B. Dig up, pick, remove, mutilate, injure, cut, or destroy any turf, tree, plant, shrub, bloom, flower, C. Cut, break, injure, deface, or disturb any building, sign, fence, bench, structure, apparatus, D. Without aj permit from the City Manager or designee, make or place on any tree, plant, shrub, bloom, flower, building, sign, fence, bench, structure, apparatus, equipment, or property, or on any portion thereof, any rope, wire, mark, writing, printing, sign, card, display, or similar inscription without aj permit from the City Manager or designee; artifact, or archeological site, or any portion thereof. equipment, or property, or any portion thereof; or ord device. NOW, THEREFORE, BE IT RESOLVED APPROVING AFFIRMING THE PARK BOUNDARIES FOR MEMORIAL PARK AND DIRECTING THE City Manager AND CITY ATTORNEY TO COORDINATE CLEANUP AND LIGHTING OF THE PARK PROPERTY, INCLUDING REMOVAL OF ANY PRIVATE ITEMS REMAINING AFTER TEN DAYS OF NOW,THEREFORE, BEI IT RESOLVED BY THE CITY OF FLATONIA, TEXAS: APPROVAL OF THE RESOLUTION. PASSED AND APPROVED by the City Council of the City of Flatonia, Texas, on first reading on the 4th day of October 2023. CITY OF FLATONIA, TEXAS By: Dennis Geesaman Mayor ATTEST: Jacqueline Ott City Secretary APPROVED ASTOFORM AND LEGALITY: Barbara Boulware-Wells City Attorney STEPS SIDEWALK FOUND "x" IN CONCRETE N 76'47'10" E 0.32' (EAST), N8 881345"E 25.00' / 0.21" TWO STORY BUILDING 0.033 ACRES TWO STORY BUILDING LOT 12 LOT 11 N 66"2 & 2433 W LOT 10 LOT 9 LOT 8 LOTS 9-7 CY OF FLATONIA VOL. 1321, PG. 585 O.R.F.C.,X, 0.113_AC JOSEPH BREADS a THERESA WILKS VOL 1415, PG. 180 BLOCK O.R.F.C.,TX. W 36 ONE STORY BUILDING WM PP FOUND 3/8" IRON ROD POINT OF BEGINNING FOUND 1/2" IRON ROD 25' ALLEY LEGEND PPo POWER POLE WMe WATER METER FENCE LINE BEARING L1 S8 8813'45" W DISTANCE 3.00' NOTES: 1. BEARINGS SHOWN HEREON ARE BASED ON THE TEXAS COORDINATE SYSTEM OF 1983, (NAD83) SOUTH CENTRAL ZONE, PER GPS OBSERVATIONS. 2. (BEARING DISTANCE) INDICATES RECORD BEARING AND DISTANCE. 10 0 10 20 30 40 50 SCALE: 1"= 20 FEET BARTON SASSOCIATES LAND SURVEYING HFRFRY STATF THAT THS PIAT SHOWS THF CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.2 Consider and take appropriate action to approve the proposed city projects using funds from the GLO MOD grant. The projects include sludge removal from the wastewater treatment plant, replacing water well #10, and replacing AC water lines on the southwest side oftown. Summary: Deliberation to approve proposed grant projects. Option(s): Imove to approve the proposed city projects using funds from the GLOMOD grant. The projects include sludge removal from the wastewater treatment plant, replacing water well #10, and replacing AC water lines on the southwest side of - Ifyou are opposed to not 2nd or make any motion. If a motion is not made, the town. item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrel!: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, if the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.3 Consider and take appropriate action to approve two designated parking spots in front of Clover Connection for use during morning drop-offhours. Summary: Consider and take appropriate action to approve two designated parking spots in front of Clover Connection for use during morning drop-offhours. Option(s): Imove to approve two designated parking spots in front of Clover Connection for If you are opposed to not 2nd or make any motion. If a motion is not made, thel use during morning drop-offhours. item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, if the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.4 Consider and take appropriate action to approve Ordinance #2023.10.1 revising the code of ordinances to delete the curfew established in ordinance #410 adopted March 3, 2007, an ordinance to establish curfew hours for minors oft the City ofFlatonia, Texas. Summary: Consider and take appropriate action to approve Ordinance #2023.10.1 revising the code of ordinances to delete the curfew established in ordinance #410 adopted March 3, 2007, an ordinance to establish curfew hours for minors ofthe City ofFlatonia, Texas. Option(s): Imove to approve Ordinance #2023.10.1 revising the code of ordinances to delete the curfew established in ordinance #410 adopted March 3, 2007, an ordinance to establish curfew hours for minors oft the City ofl Flatonia, Texas. Ify you are opposed to not 2nd or make any motion. If a motion is not made, the item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, ift the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. CITY OF FLATONIA ORDINANCE NO. 2023.10.1 AMENDMENT TO CITY OF FLATONIA CODE OF ORDINANCES, DELETING DIVISION TWO, CURFEW, OF ARTICLE 8.02, MINORS,AN ORDINANCE TO ESTABLISH CURFEW HOURS FOR MINORS OF THE CITY OFI FLATONIA, ,TEXAS, WHEREAS, the Texas State Legislature passed House Bill No. 1819 in the 2023 Legislative session that, in part, amended Chapter 370 oft the Texas Local Government Code by adding ai new Section 370.007 entitled "Juvenile Curfews Prohibited," which prohibits a political subdivision from adopting or enforcing any order, ordinance, or other measure that imposes a curfew to WHEREAS, the City Council recognizes and understands that the City can no longer regulate curfew hours for minors and therefore must delete Section 8.02, Minors, Division Two, Curfew. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SECTION 1. FINDING OF FACT. The facts and matters set forth in the preamble of this SECTON 2. AMENDMENT TO THE CODE. That Division Two, Curfew, of Article 8.02, SECTION 3. REPEAL OF CONFLICTING ORDINANCES. All ordinances or parts of ordinances inconsistent or in conflict herewith are, to the extent ofs such inconsistency or conflict, SECTION 4. SEVERABILITY. Ini the event any clause, phrase, provision, sentence, or any part ofthis Ordinance or the application ofthe same to any person or circumstances shall for any reason be adjudged invalid or held unconstitutional by a court ofcompetent jurisdiction, it shall not affect, impair, or invalidate this Ordinance as whole or any part or provision hereof other than the part declared to be invalid or unconstitutional; and the City Council of the City of Flatonia, Texas, declares that it would have passed each and every part of the same notwithstanding the omission ofany such part thus declared tol bei invalid or unconstitutional, whether there be one or more parts. SECTION 5. OPEN MEETINGS COMPLIANCE. That it is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public as required by law and that public notice oft the time, place and purpose ofs said meeting was given as required PASSED AND APPROVED by the City of Flatonia City Council on this 4th dayofOctober? 2023. regulate the movement ofactions of person younger than 18 years of age; and FLATONIAS, TEXAS, AS FOLLOWS: Ordinance are hereby found to be true and correct. Minors, is hereby deleted in its entirety. hereby repealed. Ordinance 410. by the Texas Open Meetings Act, Texas Government Code, Chapter 551. By: Dennis Geesaman, Mayor Barbara Boulware- Wells, City Attorney ATTEST: City Secretary Jackie Ott 9/22/23, 11:20AM 88(R) HB 1819- Introduced version- Bill Text 88R8009 CJD-D By: Cook H.B. No. 1819 A BILL TO BE ENTITLED AN ACT relating to the repeal of the authority of political subdivisions BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article 45.045(c), Code of Criminal Procedure, (c) This article does not limit the authority of a court to order a child taken into custody under Article 45.058 fer-45.059). SECTION 2. Article 45.060(a), Code of Criminal Procedure, (a) Except as provided by Article [Atieles) 45.058 [ene 45.0591, an individual may not be taken into secured custody for offenses alleged to have occurred before the individual's 17th SEÇTION 3. Section 51.02(15), Family Code, is amended to (15) "Status offender" means a child who is accused, (A) running away from home under Section (B) a fineable only offense under Section to adopt or enforce juvenile curfews. is amended to read as follows: is amended to read as follows: birthday. read as follows: adjudicated, or convicted for conduct that would not, under state law, be a crime if committed by an adult, including: 51.03(b) (2); 51.03(b) (1) transferred to the juvenile court under Section 51.08(b), but only if the conduct constituting the offense would not have been criminal if engaged in by an adult; as described by Section 51.03(b) (4); (C) a violation of standards of student conduct (D) e-voletkon-oteme-cvrfew-ordimenee [E11 a violation of a provision of the Alcoholic (E). [F] a violation of any other fineable only ererdert Beverage Code applicable to minors only; or offense under Section 8.07(a)(4) or (5), Penal Code, but only if the conduct constituting the offense would not have been criminal if engaged in by an adult. to read as follows: SEÇTION 4. Section 38.003(a), Government Code, is amended (a) The judge of a county, justice, or municipal court, in accordance with Section 38.002, may award money from a judicial donation trust fund established under Section 38.001 to eligible children or families who appear before the court for a truancy [er eurfew) violation or in another misdemeanor offense proceeding before the court. read as follows: Judicial System: Family Code; and SEÇTION 5. Section 71.0352, Government Code, is amended to Sec. 71.0352. JUVENILE DATA: JUSTICE, MUNICIPALI AND TRUANCY COURTS. As a component of the official monthly report submitted to the Office of Court Administration of the Texas (1) a justice court, municipal court, or truancy court (A) truant conduct under Section 65.003(a), (B) the offense of parent contributing to ere-viokatiom-ot-e-loce deytime-curfew shall report the number of cases filed for: nonattendance under Section 25.093, Education Code; and erdimenee-adoped-under-Geetion-341-98 Leeal YERERE-tSerana, htps/capiollexasgowileamhtmlMB01819lhtm 1/2 9/22/23, 11:20AM 88(R) HB 1819-Introduced version- Bill7 Text (2) in cases in which a child fails to obey an order of a justice court, municipal court, or truancy court under circumstances that would constitute contempt of court, the justice court, municipal court, or truancy court shall report the number of for delinquent conduct as provided by Article 45.050(c)(1), Code of Criminal Procedure, or Section 65.251, Family Code; or privileges as provided by Article 45.050(c) (2), Code of Criminal Procedure, or Section 65.251, Family Code. by adding Section 370.007 to read as follows: incidents in which the child is: (A) referred to the appropriate juvenile court (B) held in contempt, fined, or denied driving SECTION 6. Chapter 370, Local Government Code, is amended Sec. 370.007. JUVENILE CURFEWS PROHIBITED. (a) otwithatanding_anv other law, a political subdivision may not adopt or enforce an order, ordinance, or other measure that imposes acurfew to regulate the movements or actions of persons younger (b) This section does not apply to a curfew implemented under Chapter 418, Government Code, for purposes of emergency SECTION 7. Section 8.07(e), Penal Code, is amended to read (e) A person who is at least 10 years of age but younger than 15 years of age is presumed incapable of committing an offense described by Subsection (a)(4) or (5)lrother-then-en-offense-under e-juvenile-eurfew-erdimenee-er-order). This presumption may be refuted if the prosecution proves to the court by a preponderance of the evidence that the actor had sufficient capacity to understand that the conduct engaged in was wrong at the time the conduct was engaged in. The prosecution is not required to prove that the actor at the time of engaging in the conduct knew that the act was a criminal offense or knew the legal consequences of the offense. SECTION 8. The following provisions are repealed: (1) Article 45.059, Code of Criminal Procedure; (2) Section 341.905, Local Government Code; (3) Section 351.903, Local Government Code; and (4) Section 370.002, Local Government Code. SECTION 9. A violation of a juvenile curfew ordinance or order may not be prosecuted or adjudicated after the effective date of this Act. If on the effective date of this Act a criminal or civil action is pending for a violation of a juvenile curfew ordinance or order, the action is dismissed on that date. However, a final conviction or adjudication for a violation of a juvenile curfew ordinance or order that exists on the effective date of this SECTION 10. This Act takes effect September 1, 2023. than 18 years of age. management. as follows: Act is unaffected by this Act. htps.lcapto.1exas.gowodoceRaleahhtml-B01819.htm 2/2 9/22/23, 11:15AM City of Flatonia, TXI MINORS City of Flatonia, TX Friday, September 22, 2023 Chapter 8. Offenses and Nuisances ARTICLE 8.02. MINORS Division 1. Generally $8.02.001. through S 8.02.030. (Reserved) Division 2. Curfew $8.02.031. Definitions. For the purpose of this division, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular and words in the singular include the plural. The word Establishment Any privately owned place of business carried on for a profit or any place of amusement Juvenile. Any person under the age of seventeen (17) years of age, or, in equivalent phrasing, any Operator. Any individual, firm, association, partnership or corporation operating, managing, or conducting any establishment, and, whenever used in any clause prescribing a penalty, the term as applied to associations or partnerships shall include the members or partners thereof and as applied to Parent. Any natural parent of a juvenile, al legal guardian, or any adult person, eighteen (18) years or older, in whose care the juvenile has been placed by the natural parent or legal guardian. Public place. Any public street, highway, road, alley, park, playground, public building, parkway or Remain. To stay behind, to tarry and stay unnecessarily upon a public place, including congregating in groups totaling four (4) or more juveniles in which any minor included would not be using the public place for an ordinary or serious purpose such as passage or going home. Toi implement this definition with more precision and precaution, numerous exceptions will be provided hereinafter to indicate that this is not a mere prohibitory or presence type curfew ordinance. More exceptions become available to juveniles with increasing years and advancing maturity as appropriate in the interest of reasonable Time ofn night. The prevailing local standard time at the date in question, whether central standard time or central daylight savings time, as observed by the public. The time maintained by the city police "shall" is always mandatory and not merely directory. or entertainment to which the public is invited. person oft the age sixteen (16) years old or younger. corporations shall include the officers thereof. vacant lot. regulation. psle.oasROcompureTguc-10rsR 1/4 9/22/23, 11:15AM City ofF Flatonia, TXI MINORS department shall be the prima facie evidence oft the time of day for continued implementation oft this Yearsofage. The time from one birthday, such as the sixteenth, to the next, but noti including the day of the next birthday. Thus, upon a person's seventeenth birthday, he or she will cease to be aj juvenile division. regulated by this division. (2001 Code, sec. 8.701) $8 8.02.032. Curfew established. Its shall be unlawful for any person sixteen (16) years of age or younger to be or remain in or upon any public place or in or upon any establishment within the city during the following times: (1) 11:00 p.m. on any Sunday, Monday, Tuesday, Wednesday or Thursday until 6:00 a.m. of the following day; and (Ordinance 410 adopted 3/13/07) $8.02.033. Exceptions. (2) 12:01 a.m. until 6:00 a.m. on any Saturday or Sunday. (a) In the following exceptional cases a juvenile in or upon any public place or in and upon an establishment shall not be deemed in violation of this division; this section is intended as a clear (1) When the juvenile is accompanied by his parent, legal guardian or authorized adult supervisor. (2) When exercising First Amendment rights protected by the United States Constitution, such as the free exercise of religion, freedom of speech and the rights of assembly. It shall be deemed ab bona fide exercise of such rights if the assembly, whether parade or demonstration, has been permitted by the city or other bona fide religious, social or school activities involving the (3) When engaged in performing an errand or other legitimate business at the direction of a parent, guardian or supervisory adult, including travel to and from such location by a direct (4) When the juvenile is on the sidewalk at the place where such juvenile resides, or on the sidewalk of either next-door neighbor, when said neighbors do not object to such presence. (5) When the juvenile is engaged in employment activities, such as, but not restricted to, (b) All of the above-cited exceptions to the curfew ordinance include travel to and from such activity by a direct route, and this division is in no way to be construed as limitation upon normal travel by a (c) Each of the foregoing exceptions are severable, and in addition other possible exceptions may be added hereto in the future as warranted by experience as illuminated by the views of students, school personnel, citizens, neighborhood spokesmen, parents, officers and persons in authority guide forj juveniles, their parents, and law enforcement officials: right to assemble. route. newspaper delivery. juvenile engaged in interstate movement. concerned positively with minors as well as. juvenile delinquency. (2001 Code, sec. 8.703) S C 8.02.034. Parental responsibility. peAaOcApPmurs0TgaS-410/sA 2/4 9/22/23, 11:15AM City of Flatonia, TXI MINORS Itshall be unlawful for a parent knowingly to permit or by insufficient control to allow a juvenile in his or her care to be or remain in any public place or to be or remain in any establishment other than for excepted activities during the curfew hours established by this division. The term "knowingly" includes knowledge which a parent should reasonably be expected to have concerning the whereabouts of a juvenile in such parent's custody. It shall be prima facie evidence of violation of this section if a responsible parent has no knowledge of a juvenile's whereabouts during the hours of curfew established by this division. The purpose of this section is to require neglectful or careless parents to meet the community standard of parental responsibility. (2001 Code, sec. 8.704) $8.02.035. Duties of business operators. Its shall be unlawful for the owner or operator of a business establishment to allow aj juvenile to remain upon such business premises during the hours of curfew established in this division beyond the time necessary to conduct an excepted activity. It shall be no defense to this section that juvenile made a purchase, if the juvenile did not immediately make such purchase upon arrival and depart immediately thereafter. It shall be a defense to prosecution under this section that the owner or operator of such business establishment has promptly notified the city police department that juveniles present on the premises after hours have refused to depart. (2001 Code, sec. 8.705) $8.02.036. Enforcement procedures. (a) Al law enforcement officer, upon finding or having his or her attention called to any juvenile in oron ap public place or in or on the premises of al business establishment in a prima facie violation of this division, may take the juvenile into custody. Such juvenile may be transported to the city police department. Upon arrival at the police department, a parent, legal guardian or other responsible adult shall be immediately notified to pick up such juvenile. An officer taking aj juvenile into custody shall also have discretion to release such juvenile to a parent, legal guardian or other responsible adult under circumstance deemed appropriate by the officer. An officer may also issue a warning notice to the juvenile in accordance with section 52.01 of the Texas Family Code and order such juvenile to go directly and promptly to his or her home. Delinquent conduct or conduct indicating a need for supervision under sections 51.03 and 52.01 of the Texas Family Code shall be handled in (b) Upon picking up aj juvenile in custody, said parent, legal guardian or other responsible adult may be questioned about the circumstance of the juvenile's activities. This is intended to permit ascertainment, under constitutional safeguards, of relevant facts, and to centralize responsibility for accurate, effective, fair, impartial and uniform environment and recording, thus making available experienced supervisory personnel, the best of facilities, and, if required, referral to social agencies equipped to handle family problems that may be disclosed by investigation. In the absence of convincing identification, an officer on the street may use his or her best judgment in determining age. Procedures shall be constantly refined in the light of experience, and changes herein may be (c) In any event, an officer shall within twenty-four (24) hours file a written report on the juvenile incident or shall participate to the extent possible in the preparation and filing of such a report by (d) When a parent, legal guardian or other responsible adult has come to take charge of a juvenile and the appropriate information has been received, the juvenile shall be released to the custody of the parent, legal guardian or other responsible adult. If a parent, legal guardian or other responsible adult cannot be located or fails to take charge of the juvenile, then the juvenile shall be released to appropriate authorities. However, the police department shall have the discretion to refuse to release aj juvenile to an adult other than the parent or legal guardian oft the juvenile. accordance with applicable provisions of the Family Code. made on the basis of such experience. his supervisor. ps/cOcompMurTpu6-10P509 3/4 9/22/23, 11:15AM City of Flatonia, TXI MINORS (e) Aj juvenile may not be held at the police department for more than six (6) hours; during such time, (1) The office must be an unlocked, multipurpose area that is not designated, set aside, or used (2) The juvenile may not be secured physically to a cuffing rail, chair, desk, or stationary object; (3) The juvenile may not be held longer than necessary to accomplish the proposes of identification, investigation, processing, release to parent, guardians or custodians, and the following procedures shall be observed: as a secure detention area or part of a secure detention area; arrangement of transportation to school or court; and (4) The office may not be designated or intended for residential purposes. (2001 Code, sec. 8.706) $8.02.037. Penalty. Prevailing community standards as reflected by this division require the availability of criminal penalties in order for this division to be a viable instrument for the maintenance of such standards. Consequently, violation of this division by a juvenile, parent or business establishment owner or operator shall be deemed to be a misdemeanor punishable by a fine in accordance with the general penalty provision found in section 1.01.009 of this code. Each day any violation continues constitutes a separate offense. (2001 Code, sec. 8.707) psleogOcompmuris0rpid-107is.R 4/4 CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.5 Consider and take appropriate action to approve Resolution #2023.10.2 updating the hazard mitigation action plan. Summary: Consider and take appropriate action to approve Resolution #2023.10.2 updating the hazard mitigation action plan. Option(s): Imove to approve Resolution #2023.10.2 updating the hazard mitigation action Ifyou are opposed to not 2nd or make any motion. Ifa motion is not made, the plan. item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, if the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. RESOLUTION #2023.10.2 RESOLUTION FOR CITY OF FLATONIA APPROVAL OF HAZARD MITIGATION ACTION PLAN UPDATE WHEREAS, natural hazards in the City of Flatonia area historically have caused significant WHEREAS, the Federal Disaster Mitigation Act of2000 and Federal Emergency Management Agency (FEMA) require communities to adopt al hazard mitigation action plan tol be eligible for the full disasters with losses of life and property and natural resources damage; and range of pre-disaster and post-disaster federal funding for mitigation purposes; and WHEREAS, FEMA requires that communities update hazard mitigation action plans every five years in order to be eligible for the full range of pre-disaster and post-disaster federal funding for mitigation purposes; and WHEREAS, the City of Flatonia has assessed the community's potential risks and hazards and is committed to planning for a sustainable community and reducing the long-term consequences of natural and man-caused hazards; and WHEREAS, the Fayette County Hazard Mitigation Action Plan Update outlines a mitigation vision, goals and objectives; assesses risk from a range of hazards; and identifies risk reduction strategies and actions for hazards that threaten the community. NOW THEREFORE BEI IT RESOLVED THAT: 1. The Fayette County Hazard Mitigation Action Plan Update is approved in its entirety; 2. The City of Flatonia will pursue available funding opportunities for implementation oft the proposals designated therein, and will, upon receipt of such funding or other necessary resources, 3. The City of Flatonia vests with the Mayor the responsibility, authority, and means to inform all parties oft this action; assure that the Hazard Mitigation Action Plan Update will be reviewed at least annually; and that any needed adjustments will be presented to the City Council for 4. The City of Flatonia to take such other action as may be reasonably necessary to carry out the objectives of the Hazard Mitigation Action Plan Update and report on progress as required by seek to implement the actions contained in the mitigation strategies; consideration; and FEMA and the Texas Division of Emergency Management (TDEM). ADOPTED this 4th day ofOctober 2023. Dennis Geesaman, Mayor Jacqueline Ott, City Secretary CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.6 Consider and take appropriate action to approve the Contract for Assessment and Collection Services with the Fayette County Appraisal District. Summary: Consider and take appropriate action to approve the Contract for Assessment and Collection Services with the Fayette County Appraisal District. Option(s): Imove to approve the Contract for Assessment and Collection Services with the Ifyou are opposed to not 2nd or make any motion. Ifa motion is not made, the Fayette County Appraisal District. item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, if the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. Fayette County Appraisal District CHIEF. APPRAISER Richard Moring RPA, RTA DEPUTY CHIEF APPRAISER Barbara A. Genzer RPA, RTA OFFICEI MANAGER Amber R. Moerbe OFFICERS OFTHE BOARD Dudley Piland, Chairman Glenn Altwein, Vice Chairman Amold Romberg, Secretary 11 South Vail Street P.O.B Box 836, La Grange," Texas 78945 Telephone 979-968-8383 FAX979-968-8385 August 1, 2023 Mayor Dennis Geesaman City of] Flatonia PO Box 329 Flatonia, TX 78941 Re: Contract for Assessment and Collection Services To whom it may concern, The contract the Fayette County Appraisal District currently has with your taxing jurisdiction for Assessment and Collection Services will expire on December 31, 2023. The enclosed contract is for two years ofs service, 2024 and 2025. Our goal is to continue toj provide all taxingjurisdictions with prompt, quality service you have grown to expect from our office. Please return the enclosed contract to our office by November 1, 2023. Ifyou have any questions concerning the contract, please feel free to contact me. Sincerely, Richard-Moring, RPA/RTA Chief Appraiser THE STATE OF TEXASS COUNTY OF FAYETTE $ CONTRACT FOR ASSESSMENT AND COLLECTION SERVICES On this the following agreement: day of 2023, the Fayette County Appraisal District (hereinafter called District") and the City of Flatonia (hereinafter called "taxing unit"), enter into the PURPOSE The parties to this agreement wish to consolidate the assessment and collection of taxes in one agency, the Fayette County Appraisal District. The parties enter this agreement property eliminate the duplication of the existing system and to promote governmental efficiency. to The parties enter this contract pursuant to the authority granted by Section 6.24, Property Tax Code, and Chapter 791 of the Texas Government Code. TERM This contract shall be effective from January 1, 2024 to December 31, 2025 provided, however, that the District shall complete performance of services to be performed for the 2026 tax December 31, 2025, if the District finds extension to be necessary. To remain effective, this year contract must be approved by any subsequent governing bodies of the parties toi this contract. after SERVICES TO BE PERFORMED (1) The District shall collect the ad valorem property taxes owing to the taxing unit. The District further agrees to perform for the taxing unit all the duties provided by the laws of the State of Texas for the collection of said taxes. (2) The District shall perform all the assessment and collection functions set outi ini the definitions section of the contract. Specifically, the district agrees to prepare tax statements for each The district shall mail said tax statement to each taxpayer within the district. taxpayer. (3) The taxing unit hereby agrees that the chief appraiser of the district shall perform all the duties required by law of the tax assessor-collector of each taxing unit in regard to assessing and collecting ad valorem taxes. PAYMENT The taxing unit agrees to pay the District the cost of performing the services specified above. These costs shall be allocated among the taxing units contracting for assessment and collection services in the following manner: each taxing unit shall pay the portion of the cost of assessing and collecting equal to the proportion of district cost to be paid by that taxing unit under Section 6.06(d) of the Property Tax Code. 1 The cost of assessing and collecting taxes for each taxing unit shall be paid to the appraisal districti ini four quarterly installments due at the same time as the payments due in accordance with Tax Code Sec. 6.06(e). The chief appraiser and the governing body of the taxing unit ap payment from a taxing unit or to arrange a different method of payment. agree to may delay REMITTANCE OF COLLECTION The taxes collected for each taxing unit shall be remitted to the unit monthly. Taxes collected shall be remitted on or before the fourth Tuesday of each month following the month in which such sums are collected. Remittance tot the taxing units may be more frequent during peak collection periods. ADMINISTRATIVE PROVISIONS (1) All expenses incurred by the district for the assessment and collection of taxes shall be clearly kept on the books and records oft the District. The taxing units ort their designated representatives are authorized to examine the records to be kept by the District at such reasonable times and intervals as the taxing units deem fit. Such books and records will be kept in the offices oft the District. (2) The district agrees to obtain as surety bond fort the chief appraiser. Such bond willl be payable to the District Board of Directors ini the amount of three hundred thousand dollars ($300,000). MISCELLANEOUS PROVISIONS (1)Thetaxing unit agrees tot transfert to the possession and control oft the District, without charge, copies of all records necessary for the performance of the duties and responsibilities of the district pursuant to this contract. These records shall include all tax records, including delinquent tax or rolis, records available to the taxing units. (2) The District shall not be liable to the taxing units on account of any failure to collect taxes nor shall the chief appraiser be liable unless the failure to collect taxes results from some failure on his to perform the duties imposed upon him by law and by this agreement. part (3) Payments by the taxing unit for the service under this contract shall be made from current (4) The document containing the no new revenue and voter approval tax rates calculations be submitted to the taxing unit in such timely manner as to allow the unit to publish the effective rate will as revenues available to the taxing units. prescribed by the truth-in-taxation laws in Chapter 26 of the Property Tax Code. DELINQUENT TAX SUITS The taxing unit expressly authorizes the district to employ by contract legal counsel for the collection of delinquent taxes at a fee not exceeding 20 percent oft the delinquent taxes, penalties, and interest collected. The taxing unit expressly authorizes such counsel to institute and prosecute delinquent tax suits and any other required legal actions on behalf of the taxing unit to collect its taxes. The taxing unit also expressly authorizes thel District tot take all actions necessary toi impose on its behalf the penalty authorized by Section 33.07 and Section 33.08, Texas Property Tax Code. 2 INTEREST INCOME AND TAX CERTIFICATE FEES TO BE RETAINED BY DISTRICT (1) The taxing unit agrees that all interest income accrued on funds collected by the District pursuant to this contract shall belong to and be retained by the District, subject to the refund requirements of Tax Code $6.06(). (2) The taxing unit agrees that all fees collected by District for the preparation and issuance of tax certificates will belong to and be retained by the District, subject to the refund requirements of Tax Code $6.06(). DEFINITIONS For purposes of this agreement, the terms 'assessment" and "collection" shall include the following: calculation oft the no new revenue and voter approval taxi rates, calculation oft tax, preparation ofo current and delinquent tax rolls, prorating oft taxes, correction of clerical errors in tax rolls, collections of current liabilities, collection of delinquent taxes, providing additional penalty for collections issuance of refunds. The term 'assessment" shall not include those functions defined as' "appraisal" costs, the Property Tax Code and shall include those functions addressed in Chapter 26 of the and Tax by Code. above. Property Executed at Texas on the date and year first written FAYETTE COUNTY APPRAISAL DISTRICT Mayor/Board President Chairperson Vice-Chairperson Secretary 3 CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.7 Consider and take appropriate action to approve Ordinance #2023.10.2, an ordinance relating to the use of hotel occupancy taxes for the construction of improvements related to interconnectivity and accessibility between municipal parks and local tourist attractions and lodging. Summary: Consider and take appropriate action to approve Ordinance #2023.10.2, an ordinance relating to the use of hotel occupancy taxes for the construction ofi improvements related to interconnectivity and accessibility between municipal parks and local tourist attractions and lodging. Option(s): Imove to approve Ordinance #2023.10.2. If you are opposed to not 2nd or make any motion. If a motion is not made, the item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, ift the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action on a request and wishes to create a record as to why the denial is justified. ORDINANCE NO. 2023.10.2 AN ORDINANCE RELATING TO USE OF HOTEL OCCUPANCYTAXES FOR CONSTRUCTION OF IMPROVEMENTS RELATEDTO INTERCONNECTIVITY, AND ACCESSIBILITY BETWEEN MUNICIPAL PARKS. AND LOCALTOURISTATTRACTIONS. AND LODGING WHEREAS, cities are allowedt tos adopt a municipal hotel occupancy tax ordinance in ordert to raise revenue WHEREAS, city parks are popular attractions visited year-round by a significant number of tourists and WHEREAS, city parks are utilized for multiple large annual events and festivals that are attended by a WHEREAS, City of Flatonia's( ("City's") city parks are in need of additional improvements and amenities and City desires to enhance connectivity of the parks with lodging establishments and tourist attractions; WHEREAS, City desires to include improvement to accessibility accommodations in any improvements to allow all tourists to visit and participate in the lodging establishments and the tourist attractions; and WHEREAS, the City's tourism and hotel and lodging industries would benefit from the expenditure of municipal hotel tax revenue on construction ofi improvements and connectivity to the city parks, as tourist and visitors frequently visit the city parks and trails, and improvements to the city parks and trail system will improve the quality and number of amenities available at said city parks for use and enjoyment by tourists and visitors to the cities and surrounding area as well as provide a better venue for hosting the WHEREAS, cityt tourism and hotel and lodgingi industries would benefit from the expenditure ofmunicipal hotel tax revenue on construction oft trails and sidewalks that connect city parks to lodging establishments and other tourist attractions, which will increase the use and enjoyment by tourists and visitors of lodging NOWTHEREFORE, BE ITA ANDI ITI IS HEREBY ORDAINED BYTHE CITY COUNCILOF THE CITY OF FLATONIA, TEXAS, THAT THE REVISED GENERALORDINANCES OF1 THE for the promotion of tourism and the hotel and lodging industry; and visitors to the cities and surrounding areas; and significant number oft tourists and visitors to the city and surrounding areas; and and annual events and festivals; and establishments, parks, tourist attractions, and related public facilities; CITY OF FLATONIA. ARE HEREBY. AMENDED AS FOLLOWS: SECTION1: FINDINGS OF FACT: The foregoing recitals are incorporated into this ordinance by SECTION2: USE OF HOTEL OCCUPANCY TAXES.. Chapter 11 "Hotel/Motel Occupancy Tax," Article 11.04.002"Levy; Exceptions; Use of Revenue" is hereby amended to include Subsection (d) as set (d) improvements to the city parks, sidewalks and trail system provide better interconnectivity as well as SECTION3: REPEALER: In the case ofany conflict between the other provisions oft this ordinance and SECTION4: SEVERABILITY:1 Ifany provision ofthis ordinance or the application thereofto any person orc circumstances is held invalid, that invalidity or the unenforceability will not affect any other provisions ora applications oft this ordinance that can be given effect without thei invalid provision. SECTIONS: EFFECTIVE DATE: This ordinance shall be effective on1 the day ofsigning,. SECTION6: PROPER NOTICE & MEETING: It is hereby officially found and determined that the meeting at which this ordinance was passed was open to the public, and that public notice ofthet time, place, and purpose of said meeting was given as required by the Open Meetings Act, Texas Government Code, reference as findings of fact as ifexpressly set forth herein. out below: improvements to accessibility accommodations. any existing ordinance of the City, the provisions oft this ordinance will control. 2023. Chapter 551. READ and APPROVED on First Reading on the 4th day ofOctober 2023. Approved: By: Mayor Dennis Geesaman ATTEST: City Attorney Barbara Boulware-Wells City Secretary Jacqueline Ott CITY OF FLATONIA Agenda Summary Form Agenda # Title: DA10.1.2023.8 Consider and take appropriate action to approve the proposed oil and gas lease with Rosewood Resources. The proposed property location is2 21.936 acres, M. Muldoon League #14, A-76 and the W.A. Faires Survey, A-180 Fayette County, Texas. Summary: Consider and take appropriate action to approve the proposed oil and gas lease with Rosewood Resources. The proposed property location is 21.936 acres, M. Muldoon League #14, A-76 and the W.A. Faires Survey, A-180 Fayette County, Texas. Option(s): Imove to approve the proposed oil and gas lease with Rosewood Resources. The proposed property location is 21.936 acres, M. Muldoon League #14, A-76 and If you are opposed to not 2nd or make any motion. If a motion is not made, the the W.A. Faires Survey, A-180 Fayette County, Texas.. item is dead. Sears: Seale: Kocian: Mayor Geesaman Cockrell: Mayor Pro Tem Eversole: "Negative" motions are generally not permitted. To dispose of a business item, the motion should be phrased as a positive action to take, and then, if the group desires not to take this action, the motion should be voted down. The exception to this rule is when a governing body is asked to take action ona request and wishes to create a record as to why the denial is justified. ROSEWOOD RESOURCES May 18, 2023 City of Flatonia P.O. Box 329 Flatonia, Texas 78941 Re: Offer to Lease for Oil and Gas Exploration 21.936 acres, M. Muldoon League #14,A-76 and the W. A. Faires Survey, A-180 Fayette County, Texas (hereinafter referred to as "SubjectLand") Dear Sir or Madam: Please consider this formal offer from Rosewood Resources, Inc. (hereinafter referred to: as "Rosewood"), for an oil and gas lease on the mineral interest owned by you, in the Subject Land, at the following terms: Primary Term: 3 years Bonus: $600 per net mineral acre (the "Bonus") Royalty: 22.5% Lease Form: mutually agreeable Option to extend for an additional 2 years @ $400 per net mineral acre Prior to closing, Rosewood shall have the ongoing right to confirm marketable title to thel lands covered by the Lease. Rosewood Resources reserves the right to terminate this offer at any point in time. Wel hope to hear from you regarding this offer. Best Regards, Shawn Davis Shawn Davis, RPL Contract Landman for Rosewood Resources, Inc. (979) 702-1289 ShasmméniPl@gmailcom NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU. ARE Al NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANYOR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEPOREITISFILED FORI RECORD: INTHEI PUBLIC RECORDS: YOUR: SOCALSECURITYNUNBER OR YOUR DRIVER'SI LICENSE NUMBER. MEMORANDUM OF OIL AND GAS LEASE STATE OFTEXAS COUNTY OF FAYETTE S S 5 KNOW ALL MEN BY THE PRESENTS: Bei it remembered that made effective as of the 18h day of May, 2023, an Oil, Gas and Mineral Lease (the "Lease") was made and entered into between City of Flatonia hereinafter referred to as "LESSOR", whose address is P.O. Box 329, Flatonia, Texas 78941, and Rosewood Resources, Inc., a Delaware corporation hereinafter referred to: as "LESSEE", whose address is 2101 Cedar Springs Rd., Ste. 1500, Dallas, TX 75201. Under the terms of the Lease, Lessors granted, leased and let exclusively unto Lessee for the purpose of exploring, drilling, operating for, producing and owning oil, gas and their respective constituent products, together with the right to make survey's, lay pipelines, build tanks and roads and other structures thereon necessary or useful in Lessee's operations in exploring, drilling for, producing, treating, storing: andt transporting said products from the land leased thereunder, those certain lands oft the Lessors situated in Fayette County, 21.936 acres of land, more or less, being a part of the M. Muldoon League #14, Abstract 76, and the W.A. Faires Survey, Abstract Tract1-17,840 Square Feet of1 land, more orl less, being aj part oft the M.1 Muldoon League #14, Abstract 76, Fayette County, Texas, being more particularly described int that certain' Warranty Deed dated November 18,1 1964 from F.X. Brunner and Annette Brunner, husband and wife to City ofl Flatonia, recorded in Volume 365, atl Page 133, Deed Records, Fayette County, Texas. Tract 2-1 10.00 acres of land, more or less, being a part of thel M. Muldoon League #14, Abstract 76, Fayette County, Texas, being more particularly described in that certain' Warranty Deed dated September 22, 1938 from E. A. Arnim to City ofl Flatonia, recorded Tract 3- 10.50 acres of land, more or less, being a part of thel M. Muldoon League #14, Abstract 76, Fayette County, Texas, being more particularly described: asl First" Tract: and Second' Tracti in that certain' Warranty Deed dated) June 10, 1949 from Quinn Braddock, eta altoL. A. Wheeler, Mayor oft the City ofl Flatonia, recorded in Volume 234, at Page 39,1 Deed Records, Fayette County, Texas. Tract4-2,970: Square' Varas ofland, more or less, being aj part oft the W.A. Faires Survey, Abstract 180, Fayette County, Texas, being more particularly described in that certain Warranty Deed dated October 7,1 1925 from E. A. Arnim and Mary A., Johnson to M. Fernau, Mayor of the City of Flatonia, recorded in Volume 127, at Page 78, Deed Records, Fayette County, Texas. Tract 5- 0.50 acres of land, more or less, being aj part of the W. A. Faires Survey, Abstract 180, Fayette County, Texas, being more particularly describedi in that certain' Warranty) Deed dated September 15, 1925 from) John Farek and wife, Louise Farek tol M. Fernau, Mayor of the City ofl Flatonia, recorded in' Volume 127, at Page 79,1 Deed] Records, Fayette County, Texas. Including such land, if any, which may underlie roads, rights of way, or easements on or adjoining the above described lands (the "Leased Unless sooner terminated orl longer kepti in force under other provisions thereof, the Lease shall remain in effect for at term of three (3); years from the date thereof (therein called "primary term"), with an option to extend said primary term for an additional two (2) years, Executed copies of the Lease are in the possession of Lessors and Lessee at the offices of Lessors and Lessee at their addresses This instrument may be executed either as one instrument or in several partially executed counterparts and the original and all counterparts shal! be construed together and shall constitute one instrument. Should less than all of the named Lessors execute this instrument, this instrument shall be binding on those who are signatories. For recordation and all other purposes, the separate signature pages and acknowledgments may be affixed to the body of an original instrument without necessity of recording the entirety of each separate IN WITNESS WHEREOF, the parties hereto have executed and made this instrument effective as of the 18h day of May, 2023 to evidence ofrecordi in the Official Records oft the County Clerk of Fayette County, Texas, the existence oft the Lease and for all other purposes. Texas, comprising: 21.936 acres of land, more or less, described as follows: 180, Fayette County, Texas, being more particularly described as the following five (5) tracts: in Volume 175, at Page 12, Deed Records, Fayette County, Texas. Premises.") and as long thereafter as operations, as therein defined, are conducted upon said land. listed first above. counterpart. LESSOR: City ofl Flatonia By: Its: ACKNOWLEDGEMENT STATE OFTEXAS COUNTY OF as_ Thisi instrument was: acknowledged before me on this day of 2023, by. oft the City of Flatonia. Notary Public, State of' Texas STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE THISLEASEis: made and entered into tob bc effective on the 4hdayofOctober. 2023, deemed the Effective Date, between City ofl Flatonia, whose address is P.O. Box 329, Flatonia, Texas 78941, hereinafter referred to as" "LESSOR" and Rosewood Resources, Inc, ai Delaware corporation 1.Inc considerations ofa ac cash! bonusi ink hand paida and the covenantsherein contained, Lessorl hereby grants, leases andl letse exclusively tol Lessee thef following described 21.936 acres ofl land, more or less, being a part of the M. Muldoon League #14, Abstract 76, and the W.. A. Faires Survey, Abstract 180, Fayette County, Texas, being more particularly described as the following five (5) tracts: Tract1-17,840 Square Feet ofland, more or less, being aj parto oft the M. Muldoon League #14, Abstract' 76, Fayette County, Texas, being more particularly described in that certain Warranty Deed dated November 18, 1964 from F. X. Brunner and Annette Brunner, husband and wife to City of Flatonia, recorded in Volume 365, at Page 133, Deed Records, Fayette Tract2-10.00 acres ofland, more or less, being a part of thel M. Muldoon League #14, Abstract 76, Fayette County, Texas, being more particularly described in that certain Warranty Deed dated September 22, 1938 from E. A. Arnim to City of Tract3-1 10.50 acres of land, more or less, being a part of the M. Muldoon League #14, Abstract 76, and the W. A. Faires Survcy, Abstract 180, Fayette County, Texas, being more particularly described as First Tract and Second Tract in that certain Warranty Deed dated June 10, 1949 from Quinn Braddock, et al to L. A. Wheeler, Mayor of the City of Flatonia, Tract 4- -2,970 Square Varas of land, more or less, being a part of the W. A. Faires Survey, Abstract 180, Fayette County, Texas, being more particularly described in that certain Warranty Deed dated October 7, 1925 from E. A. Arnim and Mary A.J Johnson tol M. Fernau, Mayor of the City ofl Flatonia, recorded in' Volume 127,at! Page 78, Deed Records, Fayette County, Tract 5 - 0.50 acres of land, more or less, being a part of the W. A. Faires Survey, Abstract 180, Fayette County, Texas, being more particularly described in that certain Warranty Deed dated September 15, 1925 from John Farek and wife, Louise Farek to M. Fernau, Mayor of the City of Flatonia, recorded in Volume 127, at Page 79, Deed Records, Fayette int thec county ofl Fayette, State ofTexas, containing 21.936 gross acres, more orl less, (including any intereststherein whichl Lessor may hereafteracquire by reversion, prescripuons or otherwise), fort they purpose exploring for,developing. producing andr marketing oilz and gas, along with allh hydrocarbon: and nonhydmcarbon substances produced i association therewith. The term "gas" as used herein included helium, carbon dioside and other commercial gases, as well as hydmocarbon gases., All other minerals are reserved tot thel Lessor herein, Ina addition to the above described leased premises, thisl lease: alsoc covers accretions and any small strips or parcels of land now or hereafter owned by Lessor which are contiguous or adjacent to the above described leased premises, and, in consideration ofthe aforementioned cash bonus, Lessor agrees to execute: at Lessee's request any additional or supplemental instruments fora more complete or accurate description oft the land so covered. For the purpose of determining the amount ofa any shut in royalties hereunder, the number of gross acres above specified shall be deemed correct, whether actually 2. This lease, whichi isa" "paid- up" lease requinng nor rentals, shall bei in force fora primary term of three (3) years from the date hereof,: and fora as long thereafter as oil org gas or other substances covered hereby are producedi inp paying quantities from the leased premises or from lands pooled therewith ort thisl lease is otherwise 3. Royalties ond oil, gas and other substances produced ands saved hereunder shall bej paid by Lessee to Lessor as follows: (a) For oil and otherl bquid hydrocarbons separated at Lessee's separator facilities, the royahy shall be 22.5% ofs such production, tol be deliveredat Lessee's option to Lessor at the wellhead or to Lessor's credit at the oil purchaser's transponation facilities, providedt that Lessee shall have the continuing rightt to purchases such production: at the wellhead market price then prevailingi int the samef field (ori iftherei is nos such price theng prevailingi int the same field, theni int ther nearest fieldi iny which therei is sucha prevailing price) forproduction ofs similar grade and gravity; (b) for gas (including casinghead gas) and allo other substances covered hereby, the royaltys shall be 22.5% of the proceeds realized by Lessce from thes sale thercof, less proportionate part ofa adv valoremt taxes and productions severance, or otherexcise taxes and the costs incurredby Lesscei inc delivering, processing or otherwise marketing such gas or other substances, provided that Lessee shal! have the coninuing right to purchase such production at the prevailing wellhead market price paid for production ofs similar qualirty in the same field (ori if therei IS nos such price then prevailing in the same field, then in thet nearest fieldi in which there is such a prevailing price) pursuant to comparable purchase contracts enteredi into on the same or nearest preceding date as the date on which Lessee commences its purchases hereunder, and( (C)i ifatt the endo oft the primary term or anyt ume thereafter one or more wells ont the! leased premises orl lands pooled therewith are capable ofi producing oil or gas or other substances covered hereby inp paying quantities, but such well or wells: are either shut in or production therefrom is not NUMBER. PAID UP OIL AND GAS LEASE hereinafter referred to as" LESSEE", whose address is 2101 CEDAR: SPRINGS RD., STE. 1500, DALLAS, TX 75201. land, hereinafter called leased premises: County, Texas. Flatonia, recorded in' Volume 175, at Page 12, Deed Records, Fayette County, Texas. recorded in Volume 234, at Page 39, Deed Records, Fayette County, Texas. Texas. County, Texas. more orl less. maintainedi inc effect pursuant to the provisions hereof, beings soldi by Lessee, such well or wellss shall nevertheless be deemed tol bep producing inj paying quanuities for the purpose ofr maintaining this] lease, lffora a period of 90 consecutive days such well or wells: are shut in or production therefrom is not being sold by Lessee, then Lessee shall pay shut- in royalty oft twenty five dollars ($25.00) pera acret then covered by this lease, such payment tob ber made tol Lessor ort tol Lessor's crediti int the depository designated below, ond or beforet the end ofs said 90-day period and thereafter on or before cach anniversary of the end ofs said 90-day period while the well or wells are shut inc or production therefromi is not being soldb by Lessee: provided thati ift this leasei isc otherwise being maintained by operations, ori ifp productioni is beings sold by Lessee from another well or wells on thel leased premises orl lands pooled therewith, no shur-i int royalty shall be due until the end oft the 90-day period next following cessation ofs suçh operations or production. 4. Alls shur-i in royalty payments under this lease shall bep paid ort tendered to Lessor or tol Lessor's crediti in] DIRECTTOI LESSOR AT ABOVE. ADDRESS or its successors, whichs shalll bel Lessor's depository agent forr receiving payn ments regardless ofc changes in the ownership ofs saidi land.. Allp payments ort tenders may ber made inc currency, orb by check orb by draft and such payments or tenders tol Lessor ort tot the depository bys deposic in the U.S. Mails ina stamped envelope addressed tot the depository or to the Lessor at the last address known to Lessee shall constitute proper payment. Ift the depository should liquidate or be succeeded by another institution, or for any reason fail or refuse to: accept payment hereunder, Lessor shall, at Lessee's request, deliver tol Lessce a proper recordable instrument naming 5. If Lessec dnlls a well whichi is incapable of producingi inp pay ing quantities (hereinafter called' "dry hole") ont the leased premises orl lands pooled therewith, ori ifall production (whether or not inp paying quantitics) permanenty ceases from any cause, then in the event this lease iss not otherwise being: maintained int force it shall nevertheless remain in force if Lessee commences operations for reworking ane existing we!l orf ford drilling an: additional well orf for otherwise obtaining or restoring prnduction ont thel leased premises or lands pooled therewith within 90d day's after completion ofo operations ons such dry hole or within 90 days after such cessation of all production. Ifatt the end oft the primary term, or at any time thereafter, thisl lease is not otherwise beingr maintained inf force bur Lessee is then engagedi in drilling, reworking ora any other operations reasonably calculated to obtain or restore production therefrom, this lease shall remaini in force so! long as any one orr more ofs such operations are prosecuted with no cessation ofr more than' 90 consecutive days, andi ifa any such operations result in the production of oil or gas or other substances covered hereby, as longt thereafter ast there is productioni in paying quantities from the leased premises orl lands pooled therewith. After completion ofa well capable ofp producingi n paying quantities hereunder, Lessee shall drills such additional wells ont thel leased premises orl lands pooledt therewith asa reasonably prudent operator would drill under the same or similar circumstances to (a) develop the leased premises as tof formations then capable of producingi inj paying quantities on thel leased premises or lands pooled therewith, or (b) to protect the leased premises from uncompensated drainage by any well or wells located on other lands not pooled 6.(A) Lessee, at its option, is hereby given the right and power to pool or combine the leased premises, or any portion thercof, as to oil: and gas, or either of them, with any other land covered by this lease, or with: any other contiguous land, lease orl leases tot the extent stipulated herein. Lessee's failure to properly pay shur- inr royalty shall render lessee liable for the amount due, buts shall not operate to terminate this lease. another institution asd depository agent tor receive payments. therewith. Theres shall ber noc covenant to drille exploratory wells ora any: additional wells except as expressly provided herein. Q Units pooled for oill hercunder may include any amount ofa acreage up to, but not exceeding: (a) 80acres fore cach oilv well thati isn nota al Horizontal Drainhole' Well as defined by Railroad Commission ofTexas Statewidel Rule 86(4) (a" "Horizontal Drainhole Well");or (b) ift the oily welli isal Horizontall Drainhole W'ell, 640: acres plus ar masimum acreage tolerance of 10%. (1) Units pooled forj gas hereunder may include: any: amount ofa acreage upt to, butr not exceeding: (a) 640 acres, plusa a1 maximum: acreage tolerance of 10%, around cach gas well thati is not: a Horizontal Drainhole Well; or (b) If the gas well isal Horizontal Drainhole Well, the greater of (s) 640 acres plus a maximum acreage tolerance of 10%, or () 403 acres plus an (m) Ina any case, an: areal larger (but nots smaller) than those describedi in () or ( above, (x) ifp permitted by the Texas Railroad Commission in accordance with its rules; or (y) in order tod conform tot the well spacing or density pattem oft the Railroad Commission of Texas under the Statewide or Special Field Rules applicable to the reservoir or field interval in question. The terms "oil well" and "gas well" mean the well classification given to the Lessee under the provisions hercof may pool or combine acreage covered by this lease or any portion thercof as above provided as to oili in: any one or more strata and as tos gas in: any one or more strata. The units formed by pooling as to: any stratum or strata necd not conform ins size or area with the units into which the lease 1s pooledi ina any other stratum ors strata and oil units need not conform to gast units. The poolingi inc one or more instances shall not exhaust the rights oft thel lessee to poolt this lease or portions thereof into other units, and pooling for vertical wello does not preclude separate pooling for Horizontall Drainhole' Wells. Au unit formed containing more than one stratum may ber modified at any time to exclude one or more strata, sok longa as Lessee shall file for record int the appropriate records oft the county in which the leasedy premises arel located ani instrument describing and designating the pooled unit and upon such recordation the unit will bec effective as to allp parties hereto, their heirs successors and assigns rrespecuve of whether or not (D) Lesseer may ati its discretion exercise its pooling option before or after commencing operations or completing: and oil org gas well ont thel leased premises and the pooled unit may include but itis not required toi include land orl leases upon which a well capable of producing oil or gas in paying quantities has theretofore been completed ort upon which operations fort thec drillingo ofawell fore oil org gas have theretofore! been commenced. Ar pooled unit established hereunder shall be effective for allp purposes even though chere may ber mineral, royalty orl leaschold interests int the lands includedi int the unit which are not Ifany pooled unit formed! hercunder contains less than the maximum number of acres specified above, Lessee may, at any time, whether before or after production is obtained, enlarge the pooled unit by adding: additional acreage, but the enlarged unit shall in no event exceed the applicable size set forth additional amount of acreage equalt to 40 acres for each 500 feet oft horizontal displacement oft the well bore between the first and last" Take Points. applicable well by the Railroad Commission ofTexas. (B) there isr no production ofu unitized substances from such excluded stratum or strata: at the ume of such modification. the uniti isi likewise effective as to: allc other owners ofs surface, mineral, royalty or other rights ini landi includedi ins such unit. (O effectively pooled or unitized. (E) above. Ifane existing unit is enlarged or otherwise amended, the: amendment willl be effective on the first day oft the first month followingi its recordation For purposes oft maintaining this leasei inf force and effect, operations or production anywhere ona a pooled unit or units including any part of the leased premises shall be considered to be operations or production on this lease. For the purpose ofc computing the royaities to which owners ofr royalties and payments outo ofp production ande each oft them shalll bec enticled on production ofc oil and gas, or cither of them, from the pooled unit, there shall be: allocated tot thel land covered by this lease andi included ins said unit (or to each separate tract within the uniti ift thisl lease covers separate tracts within the unit) a pro rata portion oft the oil: and gas, ore either oft them, produced from the pooled unit: after deducting that used for operations on the pooled unit, There shal! be: allocated tot thea acreage covered by this lease: andi includedi int thep pooled unit (or to each separatet tract within the uniti ift this lease covers separate tracts within the unit) that pro: rata portion oft thec oil and gas, or either oft them, produced from the pooled unit which the number ofs surface: acres covered by this lease (ori ine eachs such separate tract) andi includedi in thep pooled unit bears tot the total number ofs surface acres included in ther pooled unit. (G) By fling of recordi int the: applicable countya ac declaration oft termination, Lessee may terminate any pooled unit created! hereunder at: any time, so longa asat (H) Ifthisl lease now orl hereafter covers separate tracts, nor pooling ofr royakyi interest: as berween any separatet tracts is intended ors shalll bei impliedr merely from the inclusion ofs such separate tracts within this leasel but Lessee shall nevertheless have the right to pool as provided herein with consequent allocation of production as provided: above. The term "separate tract" means any tract withr royalty ownerships differing, now or hereafter, eithera as tor parties or amounts, For the purpose of computing the royaly tos which owners oft royalties and payments out of production: are entitled on production of oil or gas froma Cross Unit Well, there shall be allocated tos each pooled unit containing" Take Points ina Cross Unit Well a pro rata portion oft the production from the Cross Unit Well, which pro rata portioni is equal tot thet total production from the Cross Unit Well multiplied by a fraction, ther numerator of which is the Productive Drainhole Lengh int the applicable pooled unit: and the denominator of whichi is thet totall Productive Drainhole Lengthi int the Cross Unit Well. The portion oft the production from: Cross Unit Well: allocated toap pooled unit containing this lease shalll be further alloçatedt tot the owners ofr royalties. and payments out of production under this leasc: as provided fori in paragraph FI hercof, Operations on or production from a Cross Unit W'ell shall be ine che applicable county, unless the amendment: states: ac different effective date. (F) such time therei is no productioni inj paying quantities from such pooled unit. from that of any other part oft thel leased premises. Pooling hereunder shall not constitute: a cross- conveyance ofi interests. Ina addition tot thec creation of pooled units as provided fori in this provision, Lessee may, at its option, drill Cross Unit Wells. (D 0) deemed tol be operations on or production ont this lease, leases not includedi ins such pooled unit. (K) Certain Defined Terms: "Cross Unit Well" means a Horizontal Drainhole Well with Take Points in: (x) two or more pooled units, or 0) a pooled unit and one or more "Take Point" means any point alonga a horizontal wellbore where oil org gas canl be produced in the wellbore from the reservoir or field intervali in (I) "Productive Drainhole Length" means the horizontal length of the wellbore path that begins at the first Take Point and runs along the actually surveyed path of the wellborc tot the last Take Point. This length willl be determined by an' "asc drilled" survey performed afier the cross-unit welli is 7. IfLessor ownsl less than thet full mineral estate in allo or any part of thel leased premises, ther royaltics ands shut ini royalties payable hereunder fora any well on any part ofd the leased premises orl lands pooled therewith shalll be reduced to the proportion that Lessor's interest ins such part oft the leased premises bears to the full mineral 8. Thei interest ofe citherl Lessor or Lessee hereunder may be assigned, devised or otherwise transferred in whole ori inp part, by area and/or! by depth or zone, and the rights and obligations of the parties! hereunders shali extendt tot their respective heirs, devisces, executors, administrators, successors and: assigns. No changei in Lessor's ownership shall have the effect ofr reducing the rights or enlarging the obligations ofl Lessee hercunder, and no change inc ownership shal!l be binding onl Lessee until 60d days after Lesseel has been furnished the originald ord certified ord duly authenticated copics oft the documents establishing sucho changes ofo ownership tot thes satisfaction ofl Lessee or until Lessor has satisfied the notification requirements contained in Lessee's usual form ofc division order. Int the event of the death of: any person entitled tos shur- in royalies hereunder, Lessec may pay or tender such shut- -in royaktics to the credit of decedent ord deceden.'s estate in the depository designated above. Ifat any time two or more persons are entitled to shut-in royalties hercunder, Lessee may pay or tender such shut-i in royalties to such persons ort tot their credit in the depository, eitheri joindy or separately in proportion to the interest which each owns. Iflessee transfers its interest hereunder in whole ori inp part Lessee shall be relievedof: allo obligations thereafter arising wich respect tot thet transferred interest, and failure of the transferce tos satisfy such oblagations with respectt tot thet transferred interest shall not affect the rights of Lessee with rdspect to any interest not so transferred. lfLessect transfers a full or undivided interest in: allo or any portion of the area covered! by chis lease, the obligation top pays ort tenders shut-inr royalties hereunder: shall bec divided between) Lessee: and thet transfereei inp proportiont tot the net: acreage 9. Lesseer may, ata anyt time andf from time tot time, delivert tol Lessor or file ofr record: written release of thisl lease: ast toal full or undividedi interesti ins allor: any portion oft the area covered by this lease or any depths or zones thereunder, and shall thereupon ber relieved of allo oblagations thereafter arising wich respect tot thei interest so 10. Inc explonng for, developing, producing and marketing oil, gas: and other substances covered! hereby on thel leased premises orl lands pooled or unitized therewith, inprimary and/ forc enhanced recovery, Lessee shall have ther right ofi ingress and egress along with the right to conduct such operations ont thel leased premises as may ber reasonably necessary for such purposes, including but not limited to geophysical operations, the drilling of wells, and the construction: and use of roads, canals, pipelines, tanks, water wells, disposal wells, injection wells, pits, electric andt relephone lines, power stations, and other facilities deemed necessary! by! Lessee tos discover, produce, storc, treat and/or transport production. Lesseer may usei ins such operations, free ofc cost, any oil, gas, water: and/or other substances produced on the leased premises, except ater from Lessor's wells orp ponds. Ine exploring, developing. producing or marketingf fromt thel leasedp premises orl lands pooledt therewith, the ancillary rights granted herein shall: apply (a) tot the entirel leased premises describedi in Paragraph I above, norwithstanding any partial release or other partial termination of this lease, and (b) to any otherl landsi inv which! Lessor now orl hereafter has authority tog grant such rights int the vicinity oft the leasedp premises orl lands pooled therewith. Whenr requested by Lessori in writing, Lessee shall bury its pipelines below ordinary plow depth on culivated lands. No well shall bel located less than 200 feet from any house or barn now ont the leased premises or other lands used by Lessee hercunder, without Lessor's consent, and Lessee shall pay for damage caused by its question. drilled: and completed. estatei ins such part oft thel leased premises. interest in thisl lease then held bys each. released. operations tol buildings and otheri improvements now on the leased premises or such other lands, and to commercial timber and growing crops thereon. Lessee shall have the right at any time toI remove its fixtures, equipment and materials, including well casing, from the leased premises ors such other lands duringt the term oft this 11. Lessee's obligations undert this lease, whether express ori implied, shall bes subject toa all: applicable laws, rules, regulations and orders ofa any governmental: authority havingjurisdictioni including restrictions ont thec drillinga andy productionofwells;: and the priceofoil.g gas and other substances coveredhereby. Whend drilling, reworking, production or other operauons are prevented or delayed by such laws, rules, regulations or orders, or by inability to obtain necessary' permits, equipment, services, material, water, electricity, fuel, access or easements, orb by fire, flood, adverse weather conditions, war, sabotage, rebellion, insurrection, riot, strike orl labor disputes, or by inability: to obtain a satisfactory market for production or failure of purchasers or carriers to take or transport such production, or by any other cause not reasonably within! Lessec's control, this lease shall not terminate because ofs such prevention or delay, and atl Lessees option, the period ofs such prevention or delay shall be: added to thet term hereof. Lessees shall not bel liable for breach ofa any express or implied covenants oft this lease when drilling, production or other operations are so prevented, delayed or interrupted. Int the event the causes beyond the control of Lessee prevent Lessee from timely completing any obligation under this agreement, lessee will provide written notice ofs same to Lessor, an explanation of thei intent to cure, work around, or otherwise resolve any such issue as soon as 12. Nol litigation shall bei initiated by Lessor with respect to any breach ord defaul by Lessee hereunder, for a period ofa ar least 90 days after Lessor has given! Lessee written notice fully describing the breach or default, andt then only iflessee fails tor remedy thel breach or default, withins such period. Int thes event the matteri isl liugated andt there isaf finalj judicial determination that abreach or defaul has occurred, this lease shall notl be forfeited or cancelled inv whole ori in part unless lessec isg givena 13.1 Lessor hereby warrants and: agreest to defend tide conveyed tol Lessee hercunder, and agrees that Lessce at Lessee's option, with permission from Lessor, which will: notb be unrcasonably withheld, may pay ando discharge any taxes, mortgages orl liens existing, levied or assessed ond or againstt the leasedp premises. IfLessee exercises such option, Lessee shal! be subrogated tot ther rights oft thet party tou whom paymenti isr made: and,i ina addition to its other rights, may reimbursei itselfo out of any royaltics ors shur- inr royalties otherwise paya able tol Lessor hereunder. Int the event Lessee is made aware of any claim inconsistent with Lessor's tide, Lessce may suspend the payment oft royalies and shut- int royalties hereunder, withour interest, until Lessec has been furnished satisfactory evidence that such claim has been resolved. 14. Should the right ori interest ofLessec hereunder be disputed by Lessor, ina manner that stops production or otherwisei interruptsl Lessee's use oft the property, or any other person, the time covered by the pendency of such dispute shall not be counted: against Lessee cither as affecting thet term of the lease or for any other purpose, andl lessee may suspend: all payments without interest until there isa final adjudication or other determination ofs sucho dispute. 15. Lesseci iss specifically authorized tot utlize andt traverse the sub-surface oft thel leased premises for allp purposesi incidental to thec exploration for oil: and gas! by ofd directionally drillinga awello orv wells tob bel bottomed beneath other lands not owned by Lessor, including the rightt to directionally drill, complete, operate and produce such well or wells, to conduct any operations which may ber necessary, usefuld or desirablei in exploring for or producing minerals therefrom, to plug or abandon such well or wells and tor remove casinga and other equipment therefrom, which rights, if commenced during the term oft this lease, shall continue until onel hundred cighty 16. This Contract, and any addendums hereto, represents the entire agreement between the Parties ast to its subject matter: and shall bey governed by and construedi in accordance with thel laws oft the State ofTexas, without regard to conflict ofl law provisions. Venue fora dispute arising from this Contract shall bei in Fayette County, Texas. Nothing! herein shall constitute a waiver of Lessor's sovereign immunity or the constitutionally, statutory, or common law rights, privileges, immunities or 17. Lessee shall hold the Lessor and its counciimembers, officers, employces, and agents harmless from claims, damages, losses and expenses (jointly, "Claims"), including reasonable attorneys' fees, arising out of, or resulting from or arising under this! lease, to the extent such liabilities, damage, loss, or expense IS caused by the negligent, grossly negligent, ori intentional: act or willful misconduct ofl.essor, anyonc directly ori indirectly employed by it, anyone for whose acts iti isi legally liable, or by thes state oft thel leasedI land. lfthe parties are concurrently negligent, each pariy" 'sliability shalll bel limitedt to that portion of negligence attriburabler toita asd determined 18. MLessses stilizss ans parts ofi the Surface nfs the Leasl Premises. Lessees shallo obtain: andr maintain insurance coverage with a minimum ofa million dollar policy ($1,000,000) covenng: any incidents, injuries, claims, ord damages arisingr out ofa any acuons: authorized by this lease or shall ceruify sufficient fundst fors self insurance for thes same: andu palsudautansgss shall provide tol Lessor ani insurance certificate listing the coverage, or certification of selfi insurance, before performing: any oft the IN WITNESS' WHEREOF, this lease is executed tol bec effective as of the date first written: above, but upon execution: shall bel binding ont thes signatory and the signatory'sheirs, devisees, executors, administrators, successors: and assigns, whether orr nott thisl lease has been executed by all parties hereinabove named: as Lessor. FOR ADDITIONAL PROVISIONS TO THIS LEASE, PLEASE SEE EXHIBIT "A" ATTACHED TO. AND MADE A PART OF lease ors within: ar reasonable timet thereafter. reasonably possible after Lessor 1s: aware oft the conditions causing the failuret top perform. reasonable time after saidj judicial determination tor remedy the breach oro default and Lessee fails toc dos so. (180) daysa after cessation oft the use or exercise thercof. defenses ofLessor under the: applicable proportionate responsibility rules oft thes state of Texas. tasks authorized ont the subject propertics undert this agreement. FOR ALL PURPOSES. LESSOR: City ofl Flatonia LESSEE: Rosewood Resources, Inc. By: Its: By: Its: ACKNOMLEDGEMENT STATEOFTEXAS COUNTY OF. as_ Thisi instrument was acknowledged before me on this day of 2023,by. of the City of Flatonia. Notary Public, State of Texas ACKNOWLEDGEMENT STATE OFTEXAS COUNTY OF. as_ Thisi minentvasicmoiages before me on this day of_ 2023,by of Rosewood Resources, Inc. Notary Public, State of Texas EXHIBIT "A" ADDENDUM ATTACHED TO ANDI MADE A1 PART OF OIL, GASA ANDI MINERAL. LEASE BY AND BETWEEN CITY OF FLATONIA, 1. This Exhibit A Takes Precedence. NOTVITHSTANDINGI ANYTHING CONTAINED HEREINTO: THE CONTRARY, the following provisions shall apply as an exhibit to the foregoing Oil, Gas and Mineral Lease, and shall be in force and effect as a part of said Lease. In the event ofa conflict between the provisions contained: in this Exhibit' "A" andt the provisions as stated on the printed lease form, 2. Liquids and Gas Oaly. Norwithstanding any provision in chis Lease to the contrary, it is hereby agreed between Lessor and Lessee that chis Lease covers only oil, gas, and associated hydrocarbons, as well: as sulphur, all inl liquid, gaseous or vaporous forms or state, which can or may be produced through the bore ofa well. No other minerals or substances including, but not limited to, iron ore, coal, lignite, 3. Additional Property. This lease also covers (a) any and all accretions to the above described lease premises; (b) any and all unused small or nominal strips or parcels ofl land contiguous or adjacent to the above described lease premises, and which are owned or claimed by lessor by limitation, prescription, possession, reversion or unrecorded instrument, or as to which Lessor has preferential right of acquisition; and (C) any and alll lakes, rivers, streams, roads, easements and right of way's now orl hereafter owned or claimed by Lessor which traverse or adjoin any of the above described lease premises. Itis not the intent of the foregoing provision to effect al lease of any large tracts ofl land, which are capable of being separately described, but which are not specifically described as part of the leased premises. 4.1 Further Acts. Lessor and Lessee acknowledge that for the consideration paid herein, they agree to execute, if applicable, any instruments to clarify the full mineral interest leased, property description and/or acreage content of the lands leased herein. Itis further agreed and understood, if applicable, that the Lessors and their predecessors, ancestors, and/or heirs in title, agree to execute respective agreements necessary to acknowledge, ratify, quitclaim, subordinate and/or clarify the full mineral ownership of the lands leased herein 5. Counterparts. This instrument may be signed in any number of counterparts, each of which shall be binding on the party or parties sos signing regardless of whether all oft the owners joini in the granting of this agreement and the failure of any party named herein as Lessor to sign this agreement shall not: affect its validity as to those whose signatures appear hereon or on: a counterpart hereof. For convenience inr recording, the Lessor hereby authorizes the Lessee to detach the signature pages and the acknowledgment, pages from any counterpart of 6. Geographic. Pugh Clause. Norwvithstanding: anything tot the contrary herein contained, when ap pooled unit or units are created, either by governmental authority or by voluntary action of the parties, or by Lessee pursuant to the terms of this Lease, which include all or a portion of the Leased Premises, drilling operations, payment of shut-in gas royalty or production from the pool, sand, or formation for which such unit or units were created, all: as defined by said governmental authority, or by said voluntary unitization agreement, or by said pooling declaration, shall maintain this Lease in force after the expiration of the primary term, but only as to that portion of the Leased Premises included ins said unit or units, regardless of whether said drilling operations or production are on or from the Leased Premises. As to any portion or portions of the Leased Premises not included in the geographic boundaries of the pooled unit or units, this Lease shall 7. Shut In Royalty Limitation. Norwithstanding: any provision in this Oil, Gas and Mineral Lease to the contrary, Lessee cannot hold this lease under the shut-in royalty provision for more than two (2) years in the aggregate beyond the primary term of this lease or any 8. Lease Memorandum. Lessor and Lessee agree that, at Lessee's option, Lessee may decide not to record this Lease in the public records, but may decide to record: al Notice of Lease. In the event that the Lease is recorded, this Exhibit A shall be recorded with it, and 9. Operations. Whenever usedi in this lease the word' "operations" shall mean operations for and any of the following: drilling, testing completion, reworking, re-completing, deepening, plugging back or repairing ofa well ins search for or in an endeavor to obtain production ofoil, gas, sulphur or other minerals permitted by the lease, excavatinga a mine, production of oil, gas, sulphur or other mineral permitted by 10. Free Royalty. Itis agreed between the Lessor and Lessee that, norwithstanding any language herein to the contrary, all oil, gas or other proceeds accruing to the Lessor under this lease or by state law shall be without deduction, directly or indirectly, for the cost of AS LESSOR, AND ROSEWOOD RESOURCES, INC., AS LESSEE. the provisions in this Exhibit' "A"s shall prevail. bentonite and gravel or any other hard minerals shall be covered hereby. pursuant to the numerous conveyances transterring interest in and to the acreage leased herein. this Lease, attach them toas single counterpart and record them together as: a single instrument. terminate at the end oft the primary term (as defined herein). extension. together this Lease and chis Exhibit A shall be considered tol be one document. this lease, inp paying quantities. producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing the oil, gas and such 11. Depth Severance. At the expiration of the primary term or cessation of continuous development: as provided herein, whichever is later, this Lease shall terminate as to all depths and horizons greater than 100 feet below the base of the deepest formation to which a well 12. Horizontal Pooling. IE the well is a Horizontal Drainhole Well, then the pooling size will be the greater of (s) 640 acres plus a maximum acreage tolerance of 10%, or () 40 acres plus an additional amount of acreage equal to 40: acres for each 330 feet of horizontal other products produced hereunder to transform the product into marketable form. has been drilled and found to be capable of production inj paying quantities. displacement of the well bore between the first and the last Take Points. 13. Land Use: (Reference herein to Lessor also. refers to surface owner) A. Should Lessor or tenants on the leased premises suffer loss of, or damage to, crops, trees, turf, livestock, water wells, fences, roads, other personal property, buildings or otheri mprovements, as a result of operations of Lessee under this lease, B. Within a reasonable time, Lessee shall fill: all pits made by Lessee upon the leased premises, level offa all mounds made by Lessee upon the lease premises, and remove all debris and rubbish placed by Lessee upon the leased premises. Upon cessation of use thereof by Lessee, it will notify Lessor of such cessation and at the option of the Lessee will leave on the premises as part of the property of Lessor all cattle guards, water wells, bridges and roads placed thereon by Lessee, its successors or assigns. An oilfield gate shall be placed at the entrance onto the lease premises through which the Lessee will have access to the premises with regard to: any well being drilled on thel lease premises orl land pooled therewith. Said oilfield gate shall be kept closed and locked at: all times except during cimes of entrance by Lessee, its agents and parties operating under thel Lessee, or by Lessor with permission from Lessee. Lessee agrees to maintain all roads and paths upon which it travels in: a condition whichi is as good as or better than the condition of such road or pathway prior to Lessee's entry upon thea above-described tract. Lessee will use its best effort tol build roadsi in: al location as tol least affect the surface of thel lease premises. While: a drilling rig is on location Lessee must post a 24-hour guard ati its point of entry to the leased premises to C. The well equipment andl location shall be kept as clean: as possible at all times, and roads used by Lessee should be kept ing good state of repair. IfLessori inspects any meters or any other production equipment, Lessori is doings so: at Lessor's own D. Notvithstanding the general terms of grant contained in this lease, the Lessee is not given the right to erect or maintain refining facilities, or: any other extraction or treating facilities on the leased premises unless directly related to thej production, treatment, and: recovery of oil, gas, sulphur, and other leased minerals from this lease or from land pooled therewith. 14. Other. Provisions. Neither Lessee, nor its agent, employees or contractors shall be permitted to bring firearms, alcohol or dogs or 15. Removal of Equipment All equipment owned by Lessee must be removed from the leased premises within a reasonable amount Lessee agrees to pay Lessor or such tenants the actual amount of their said loss or damage. prohibit entry to the property by unauthorized persons. risk and Lessor: assumes alll liabilities for any damage or loss caused by Lessor's actions. do any hunting or fishing upon the lease premises. oft time after the termination of this lease. Under no circumstances. should the same become the property of Lessor. 16. Surface Damages. Lessee shall pay to Lessor surface damages in the amounts set forth below: A. Two Thousand and Five Hundred: Dollars ($2,500.00) per acre covered by any Drilling Pad placed, used or occupied by B. One Thousand and No/100 Dollars ($1,000.00) per: acre otherwise utilized by Lessee, or covered by any roads, access ways, ditches, canals, other rights of way or structures placed or used' by Lessee on the Leased Premises. Lessee. Such Drilling Pads shall not exceed six (6) acres each in: area. 17. Pipelines. A. Lessee may construct pipelines and flowlines as necessary to transport oil, gas and other hydrocarbon and non- hydrocarbon substances produced from the leased premises and/or lands pooled therewith and maintain such easements on: and across the leased premises as necessary to service and maintain them. Lessee agrees to pay Lessor damages in the amount of One Thousand: and No/1001 Dollars ($1,000.00) pera acre for all pipelines constructed on the leased premises and damages and right of way acquisition in the amount of One Thousand and No/100 Dollars ($1,000.00) per acre for all pipelines constructed on the unleased premises. B. lessee: agrees tol bury: ally pipelines with: a coverof at least thirty SIN (36") inches from the topoft the pipe to thes surface oft they ground andt toplace: all pipclinc improvements below thes surface outside of Drilling: and Production Pads. Lessce agrees to "double ditch" all pipcline trenches. The tops soil will be placed to one: side and in backflling the ditch, the 18. Cross Unit Wells. In addition tot the creation of pooled units as provided fori in this lease, Lessee may, ati its option, drill Cross Unit Wells. For the purpose of computing the royalty to which owners of royalties and payments out of production are entitled on production of oil or gas from: a Cross Unit Well, there shall be allocated to each pooled unit containing Take Points in: a Cross Unit Well a pror rata portion oft the production from the Cross Unit Well, which pro rata portion is equal to the total production from the Cross Unit Well multiplied by a fraction, the numerator of which is the Productive Drainhole Length in the applicable pooled unit and the denominator of which 1s the total Productive Drainhole Lengthi in the Cross Unit Well." The portion of the production from: a Cross Unit Well: allocated to a pooled unit containing this lease shalll be further allocated to the owners of royalties and payments out of production under this lease as provided fori in paragraph 61 hereof. Operations on or production from a Cross Unit Well shall be deemed to be operations on or production on this lease. For the purposes of this agreement, "Cross Unit Well" means a Horizontal Drainhole Well with Take Points in: (s) two or more pooled units, or () a pooled unit: and one or more leases noti includedi ins such pooled unit, "Takel Point" means any pointa alongal horizontal wellbore where oil or gas can be produced int the wellbore from the reservoir or fieldi interval in question, and' "Productive Drainhole Length" means the horizontal length of the wellbore path that begins att the first" Take Point and runs along the actually surveyed path of the wellbore to the last Take Point. This length will be determined by: an "as drilled" survey performed after the cross-unit well is drilled and completed. 19. Option to Extend. Lessee is hereby given the option to extend the primary term of thisl lease for an additional two (2): year period. This option may be exercised by Lessee: at: any time during the primary term of che leasel by payment to the Lessor of$400.00 per net mineral acre. Should this option be exercised asl herein provided, then this lease shall be considered for all purposes as havinga a primary term of five 20. No Surface Operations. NOTWITESTANDING ANYTHING TO THE CONTRARY HEREIN, LESSEE SHALL NOT CONDUCT ANY SURFACE OPERATIONS OF ANY KIND ON THE SURFACE OF THE LEASED PREMISES (INCLUDING, BUT NOT LIMITED TO, DRILLING OPERATIONS, CONSTRUCTION OF ROADS, CONSTRUCTION OF PIPELINES, DRILLING OF WATER WELLS, CONSTRUCTION OF ELECTRIC POWER LINES, ETC.), UNLESS CONSENT IS GIVEN BY LESSOR OR THEIR SUCCESSORS OR ASSIGNS, WHICH WILL BE GIVEN IF SUCH CONSTRUCTION DOES NOT INTEREFERE WITH LESSEE'S USE OF THE PROPERTY AND WHICH WILLI NOT tops soil willl be replaced ont top oft thel backfill after the construction. (5): years. OTHERWISE! BE UNREASONABLYWITHHELD. LESSOR: City of Flatonia LESSEE: Rosewood Resources, Inc. By: Its: By: Its: ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF. as Thisinstrument was acknowledged before me on this day of 2023, by of the City of Flatonia. Notary Public, State of Texas ACKNOWLEDGMENT STATEC OFTEXAS COUNTY OF Thisi instrument was acknowledged! before me ont this_ day of 2023,by. of Rosewood Resources, Inc., Notary Public, State of Texas