WESTERN GAS ASKS KATY ISD TO CONSIDER APPROVING LEASES:
Western Gas Resources Storage, Inc.
12200 N. Pecos Street
Suite 230
Denver, Colorado
80234-3439
(303) 452-5603
Sent by FAX: Hayes (713) 391-3432
Thompson (713) 391-4514
March 26, 1993
Dr. Hugh Hayes
Superintendent, Katy ISD
6301 South Stadium Lane
Katy, TX 77494
Mr. Stanley Thompson
P. O. Box 575
Katy, TX 77492
RE: Oil and Gas Lease and Lease of Subsurface
Katy Natural Gas Storage Project
Fort Bend County, Texas
Dear Dr. Hayes and Mr. Thompson:
Western requests that the Katy ISD please consider approving the referenced leases at your April board meeting. As stated in the February 17 letters, total consideration is $3,437.60 ($500.00 for the Lease of the Subsurface and $2,937.60 for the Oil and Gas Lease). If the district wishes to discuss any changes to the agreements as presented, I am willing and available to meet.
Also, please note that although it is not included in the total stated consideration, Western hereby offers to the district (as we have to numerous owners recently) a payment of $1,500.00 per tract (total of $3000.00) as a "litigation avoidance" payment.
At this time, all of the interests (both surface and mineral) within the reservoir outline have been leased, condemned, or scheduled for condemnation.
Facility construction is proceeding on schedule. If you or any board members would like to visit the site, please contact Jim Junkins or Steve Weinhold at 395-7050.
Western regrets that our project has been accompanied by misunderstanding, controversy and (in some cases) hostility. We also regret that the benefits of the project are not yet appreciated. We are convinced that, after the facility is in full operation, its benefits will become obvious and early concerns will be seen to be unfounded.
Some of our employees have already moved into the district. They, as do all of us at Western, look forward to a long and harmonious relationship with the district. I can be reached at 1-800-933-5603. I look forward to hearing from you.
Sincerely,
David H. Sander
Sr. Landman
xc: Mr. Ken Leach