HomeMy WebLinkAboutContract 31372RCVD i.;Fi r SECRETARY � �%�
��. _2 _U5g0II:44 ;ONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
THAT for good and valuable consideration, under and by virtue of that certain Oil and
Gas Lease dated February 15, 2005, (the "Lease"), the CITY OF FORT WORTH, having an
address of 1000 Throckmorton Street, Fort Worth, Texas 76102, ("Lessor,") has leased, let and
demised unto DALE RESOURCES, L.L.C., a Texas limited liability company, having an
address of 2121 San Jacinto Street, Suite 1870, LB -9, Dallas, Texas 75201 ("Lessee"), those
certain lands situated in Tarrant County, Texas as described in Exhibit "A" attached hereto and
made a part hereof (the "Lands"), for the purpose of exploring, drilling and mining for and
producing oil, gas, sulphur and other products produced as a component part of oil or gas from
the wellbore, in and under the herein described Lands, owned or claimed by Lessor, necessary to
Lessee in operations to produce, save, take care of, treat, transport and own said oil, gas, sulphur,
and other products produced as a component part of the oil and gas from the Lands under the
terms and conditions set forth in the Lease.
Subject to the other provisions therein contained, said Lease provides for a primary term
of two (2) years and as long thereafter as either oil or gas is produced in paying quantities from
the Lands.
Reference is hereby made by Lessor and Lessee to the Lease, the same as if copied herein
in full, for the terms and provisions pertaining thereto and for all other purposes.
This Memorandum shall not be deemed to enlarge, restrict or change the rights of any of
the parties under the Lease.
This Memorandum is executed for the purpose of filing this instrument of record in the
official Records of Tarrant County, Texas, to give notice to all third parties dealing with Lessor
or Lessee or with the lands above described of the existence of the Oil and Gas Lease. The Oil
and Gas Lease and this Memorandum shall be binding upon Lessor and Lessee and their
respective heirs, successors and assigns. Originals of the Oil and Gas Lease are in the possession
of Lessor and Lessee. A copy of the Oil and Gas Lease is on file with the City of Fort Worth
City Secretary's Office.
IN WITNESS WHEREOF, the parties have executed this instrument as of the
day of February, 2005.
LESSOR:
CITY FORT WORTH
By:�
Marc A. tt, Assis .ant City an,
ATTEST: _-_ltr.�aCt �AuutthorizatioR
City Secretary
APPROVED TO ND LEGALITY:
By:
A sistant City Attorney
u2
rV '';wpho u'��,
LESSEE:
DALE RESOURCES, L.L.C.
By:
Ann F. Vandenberg
Vice President
ACKNOWLEDGMENTS
STATE OF TEXAS
COUNTY OF TARRANT
Before me, a notary public, on this day personally appeared
�k T A�isTa47—City Manager of the City of Fort Worth, known to me to be the
person whose name is subscribed to the foregoing instrument and acknowledged to me that the
same is the act of the City of Fort Worth, and that he executed the same as its City Manager, for
the purposes and consideration expressed in the foregoing instrument.
Given under my hand and seal of office this% li"day of 2005.
RM3E
Notary Public, State of Texas
J
My Commission Expires:ee (�
e,7-,16 ®-A,907 Notary's Printed Name
STATE OF TEXAS
COUNTY OF DALLAS
This instrument was acknowledged before me on this the day of February, 2005, by
Ann F. Vandenberg, Vice President of Dale Reso ces, L.L.C. a Texas Limited Liability
Company, on behalf of said company.
N tary Public,,,Sta of Tex s
My Commission Expires:
Notary's Printed Name
zv.,e
HEATHER M.BARCIAMY COMMISSION EXPIRESJUN 1,2006
Memorandum of Oil and Gas Lease 2
Dated February 15, 2005 by and between
City of Fort Worth, as Lessor, and
Dale Resources, L.L.C., as Lessee qq
EXHIBIT "A"
Attached to and by reference made a part of that certain Oil and Gas Lease between the City of Fort Worth,
as Lessor, and Dale Resources, L.L.C., as Lessee dated the 15`h day of February, 2005.
Gateway Park, 751 Beach Street, being a tract of land out of the A. C. Warren Survey, Abstract
No. 1686; the J. Blackwell Survey, Abstract No. 148; the P. T. Welch Survey, Abstract No.
1642; the E. Johnson Survey, Abstract No. 852; the J. Lynch Survey, Abstract No. 942; the J.
Cross Survey, Abstract No. 304; the Sycamore Heights Addition, Volume 309, Page 11; and
Volume 6866, Pages 256-260, as recorded in the Deed Records of Tarrant County, Texas.
Quanah Parker Park, 5401 Randol Mill Road, located in a portion of land situated in the J.W.
Haynes Survey, Abstract No. 764 and in the J. Blackwell Survey, Abstract No. 149, in the City
of Fort Worth, as recorded in Volume 12871, Page 510, as recorded in the Deed Records of
Tarrant County, Texas.
Tandy Hills Park, 3325 View Street, located in a portion of land situated in the Enoch S. Johnson
Survey, Abstract No. 852; Peter T. Welch Survey, Abstract No. 1642, as recorded in Volume
3442, Page 582; and the John Lynch Survey, Abstract No. 942, as recorded in the Deed Records
of Tarrant County, Texas.
The above three tracts of land are more particularly described by metes and bounds on the
attachments marked I, II and III.
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GATEWAY PARK
Being a tract of land out of the A.C. Warren Survey, A-1686; the
J. Blackwell Survey, A-148; the P.T. Welch Survey, A-1642; the
E. Johnson Survey, A-852; the J. Lynch Survey, A-942; the J. Cross
Survey; A-304, and the Sycamore Heights Addition, Volume 309,
Page 11.
Beginning at the northeast corner of the tract described in the deed
from Amon G. Carter Jr. and Ruth Carter Johnson to the City of Fort
Worth recorded in Volume 6866, Pages 256-260 in the Deed Records of
Tarrant County, Texas.
THENCE: South no degrees 01 minutes 35 seconds west 2,957.76 feet;
THENCE: North 89 degrees 59 minutes 07 seconds east 183.67 feet;
THENCE: South 30 degrees 51 minutes 33 seconds west 46.23 feet;
THENCE: South 17 degrees 01 minutes 35 seconds west 619.53 feet;
THENCE: South 8 degrees 15 minutes 30 seconds west 56.36 feet;
THENCE: South 57 degrees 39 minutes no seconds west 550.32 feet;
THENCE: South 61 degrees 39 minutes no seconds west 610.10 feet;
THENCE: South no degrees 19 minutes 53 seconds east 56.64 feet;
THENCE: South 56 degrees 42 minutes 9 seconds west 1,046.73 feet;
THENCE: Along a curve with a radius of 5,490.00 feet in a south
.and westerly direction 2,682.17 feet along said curve;
THENCE: South 83 degrees 26 minutes 24 seconds west 1,444.65 feet;
THENCE: North 84 degrees no minutes 32 seconds west 461.82 feet;
THENCE: North 62 degrees 54 minutes 32 seconds west 143.37 feet;
THENCE: North 76 degrees 5 minutes 32 seconds west 183.16 feet;
THENCE:
North
no degrees
7
minutes 26 seconds east
239.83 feet;
THENCE:
North
no degrees
23
minutes
22 seconds west
137.3 fee ; -
THENCE:
North
66 degrees
41
minutes
38 seconds east
801.72 feet;=,=.�,?1,
THENCE:
Along
a curve with
a radius
of 448.14 feet
in a eAsterly
direction 545.68
feet
along
said cure;
THENCE:
North
70
degrees
42 minutes
28 seconds east 452.96
feet;
THENCE:
North
no
THENCE:
South
43
degrees
32
minutes
22
seconds
east
466.75 feet;
THENCE:
North
89
degrees
30
minutes
38
seconds
east
224.33 feet;
THENCE:
North
no
degrees
01
minutes
18
seconds
east
9.31 feet;
THENCE:
North
50
degrees
58
minutes
42
seconds
west
185.0 feet;
THENCE:
North
24
degrees
42
minutes
22
seconds
west
668.0 feet;
THENCE:
North
37
degrees
2 minutes
10.seconds
west
365.0 feet;
THENCE:
North
53
degrees
58
minutes
20
seconds
west
1,080.12 feet;
THENCE:
North
8
degrees
20 minutes
16
seconds
west 64.2 feet;
THENCE:
North
22
degrees
37
minutes
34
seconds
east
185.22 feet;
THENCE:
South
52
degrees
08
minutes
31
seconds
east
641.82 feet;
THENCE:.
South
78
degrees
48
minutes
58
seconds
east
530.76 feet;
THENCE:
North
70
degrees
42 minutes
28 seconds east 452.96
feet;
THENCE:
North
no
degrees
1 minute 18
seconds east 774.10 feet;
THENCE:
South
89
degrees
58 minutes
42 seconds east 880.52
feet;
THENCE:
North
no
degrees
1 minute 18
seconds east 1,544.27
feet;
THENCE:
South
89
degrees
58 minutes
42 seconds east 91.70
feet;
THENCE: North no degrees 1 minute 18 seconds east 1,153.08 feet;
THENCE:. North 89 degrees 31 minutes 35 seconds east 1,,358.78 feet;
THENCE: Along a curve with a radius of 2,788.60 feet in an
easterly direction 563.76 feet along said curve;
THENCE: North 77 degrees 56 minutes 35 seconds east 1,599.52 feet;
THENCE: Along a curve with a radius of 2,288.46 feet in an
easterly direction 383.02 feet along said curve to the
PLACE OF BEGINNING and containing 503.693 acres of land.
II
QUANAH PARKER PARK
Field Notes for a Tract of land to be conveyed to the City of Fort Worth, by the Amon G. Carter
Foundation; North Tract:
Being a tract of land out of the J. Brockman Survey, Abstract Number 102, the' W. R. Reeder Survey,
Abstract Number 1303, and the A. C. Warren Survey, Abstract Number 1686, situated about 5 1/2 miles
North 80 degrees East from the courthouse in Tarrant County, Texas, and also being a portion of that
certain tract of land as conveyed to A. G. Carter by deed recorded in Volume 1919, Page 211, of the Deed
Records of Tarrant County, Texas, and also being a portion of that certain tract of land as conveyed to the
Amon G. Carter Foundation, by deed recorded in Volume 8780, Page 1354, of the Deed Records of
Tarrant County, Texas, and being more particularly described by metes and bounds as follows:
Beginning at a 7/8 inch iron rod, found at the northwest comer of that certain tract df land as conveyed to
TEXAS ELECTRIC SERVICE COMPANY, by deed recorded in Volume 4205, Page 585 of the Deed
Records of Tarrant County, Texas, said iron being in the east line of a 3725 acre tract of land as conveyed
to Emma Henderson Mann, by deed recorded in Volume 1626, Page 360, of the Deed Records of Tarrant
County, Texas, from which a Texas Electric Service Company monument found at the southeast -corner of
that certain tract of land as conveyed to TEXAS ELECTRIC SERVICE COMPANY, by deed recorded in
Volume 4213, Page 422 of the Deed Records of Tarrant County, Texas, said monument also being the
southeast corner of said Mann Tract, bears South 00 degrees,,06 minutes, 53 seconds West, 150.17 feet;
Thence with said east line, North 00 degrees 06 minutes 53 seconds East, at 50.05 feet, pass the northeast
corner of said TEXAS ELECTRIC SERVICE COMPANY TRACT, from which a %," Iron Rod, found,
bears South 89 degrees 53 minutes 03 seconds East, 1.24 feet, at 941.14 feet pass a 7/8 inch iron rod,
found, for the southwest comer of the said Reeder Survey, Abstract Number 1303, from which a 3/4 inch
iron rod %vas set in the remains of a Burr Oak Stump, the original witness comer, at South 87 degrees 30
minutes East, 26.39 fact from said corner, at 1541.14 feet passing a 518 inch capped iron rod marked
"CITY FT. WORTH SURVEY SECTION" set, at 1587.14 feet passing a 7/8 inch iron rod, found, on the
top of bank of the Trinity River, in all 1666.08 feet to the center of the Trinity River, a northwest comer of
said Carter Tract;
Thence down the middle of the Trinity River with its meanders, the following courses and distances.
South 79 degrees 15 minutes East, 164 feet; and North 89 degrees 34 minutes East, 265 feet; and South 50
degrees 30 minutes East, 130 feet; and South 36 degrees 45 minutes 06 seconds East, 725.5 feet, and South
37 degrees 03 minutes East, 162 feet; ar.d South 69 .iegrees 04 minutes 06 seconds East, 104.17 feet to a
northeast comer of said Carter Tract, the northwest comer of said Carter Foundation Tract, from which a
'/," Pipe found, on the top of bank, bears Sbuth 01 degrees 21 minutes 16 seconds East, 90.00 feet; and
South 67 degrees 45 minutes East, 633.95 keel; and South 44 degrees 16 minutes East, 284.2 feet; and
South 85 degrees 21 minutes East, 179.5 feet; acid North 41 degrees 53 minutes East, 797.5 feet; and North
76 degrees 25 minutes East, 262.2 feet; anA South 57 degrees 49 minutes East, 166.5 feet; and South 06
degrees 19 minutes East, 333 feet:; and South 34 degrees 20 minutes East, 245 feet; and South 89 degrees
East, 744.28 feet, to the northeast comer of said Carter Foundation Tract;
Thence with the east lint. of said tract, South 00 decrees 14 minutes East, at 91.80 feet, passing a 7/8 inch
iron rod, found, on the top of bank, in all 416.03 feet to a capped 5/8 inch iron rod marked "CITY FT.
WORTH SURVEY SECTION' set at the northeast corner of that certain tract of land as conveyed to the
City of Fort Worth by B. J. Crow, Eiccutive Director of Amon G. Carter Foundation by deed recorded in
Volumc 9236, Page 157 of the Deed Records of Tarrant County, Texas;
Thence with the north line of said City Tract, North 83 degrees 44 minutes 56 seconds West, 559.07 feet
(called 559:45 feet) to a capped 5/8 inch iron rod marked "CITY FT. WORTH SURVEY SECTION" set
for its northwest comer,
Thence with the west line of said City Tract, South• 06 •degrees 15 minutes 04 seconds West, 120.00 feet to
a capped 5/8 inch iron rod marked "CITY FT: WORTH SURVEY SECTION' set for its southwest corner,
in the north line of a that certain tract of land • as conveyed to TEXAS ELECTRIC SERVICE COMPANY,
by deed recorded in Volume 4201, Page 163•6fihi Decd Records of Tarrant County, Texas;
Thence with said north line, North 83 degrees 44 minutes 56 seconds West, 2241.64 feet to a Texas
Electric Service Company monument found at the northwest corner of said Trac[, the northeast corner of
the aforesaid TEXAS ELECTRIC SERVICE COMPANY Tract,
Thence with the north lint of said tract, South 82 degrees 05 minutes 02 seconds Wes[, 999.08 feet to a 7/8
inch iron rod found at an angle point in said line;
Thence continuing with said line, South 89 degrees 36 minutes 1 I seconds West, 185.06 feet, to the Place
of Beginning and containing 72.2 acres of land more or less.
Field Notes for a Tract of land to be conveyed'to the City of Fort Worth,. by the Amon G..Caaor
Foundation; South Tract_
Being a tract of land out of the John W. Haynes Survey, Abstract Number 764, the A. C. Warren Survey,
Abstract Number 1686, and the James Blackwell Survey, Abstract Number 148, about 5 12 miles North 80
degrees East from the courthouse in Tan -ant County, Texas, and also, being a portion of that certain tract of
land as conveyed to A. G. Carter by decd recorded in Volume 1919, Page 211, of the Deed Records of
Tarrant County, Texas, and being more particularly described by metes and bounds as follows:
Beginning at a Texas Electric Service Company monument, found, in the south line of the A. C. Warren
Survey, said monument also being the southeast comer of that certain tract of land as conveyed to Texas
Electric Service Company by deed recorded in Volume 4213, Page 422, of the Deed Records of Tarrant
County, Texas; and being in the south line of a 372.5 acre tract as conveyed to Emma Henderson Mann, by
deed recorded in Volume 1626, Page 360 of the Deed Records of Tarrant County, Texas;
Thence with the east line of said 372.5 acres, North 00 degrees 06 minutes 53 seconds East, 50.16 feet to a
518 inch iron rod with "City Fort Words Survey Section" cap, set, said iron rod being the most.westerly
southwest comer of a tract conveyed to Texas Electric Service Company by deed recorded in Volume
4205, Page 585, of the Deed Records of Tarrant County, Texas, from which a Texas Electric Service
Company monument, found, bears North 89 degrees 32 minutes 47 seconds East, 0.30 feet;
Thence with the south line of said Texas Electric Service Company tract, North 89 degrees 32 minutes 47
seconds East, 193.68 feet to a 5/8 inch 'iron rod with "City Fort Worth Survey Section" cap, set;
Thence continuing with the south line of said Texas Electric Service Company tract, North 82 degrees 05
minutes 43 seconds East, 992.97 feet to a 718 inch iron rod, found, from which a Texas Electric Service
Company monument, found, bears South 88 degrces 06 minutes 03 seconds West, 2.66 feet;
Thence South 0l degrees 21 minutes 16 seconds East, 53.37 feet to a Spike, found in the center of Randal
Mill Road;
Thence generally with the center of Randol Mill Road the following courses and distances: South 89
degrees 12 minutes 13 seconds West, 49.63 feet; and South 87 degrees 50 minutes 57 seconds West, 50.00
feet; and South 84 degrees 19 minutes 24 seconds West, 49.97 feet; and South 83 degrees l8 minutes 03
seconds West, 49.98 feet; and So�!th 82 degrees 07 minutes 31 seconds West, 50.00 feet; and South 79
degrees 25 minutes 22 seconds West, 49.98 feet; and South 78 degrees 27 minutes 18 seconds West, 50.01
feet; and South 78 degrees 26 minutes 05 seconds West, 50.00 feet, South 77 degrees 23 minutes 21
seconds West, 199.94 feet, South 74 degrees.7 minutes 12 seconds West, 49.97 feet; South 72 degrees 35
minutes 36 seconds West, 49.98 feet; and South 68 degrees 28 minutes 1.2 seconds West, 50.00 feet; and
South 57 degrees 59 minutes 46 seconds West, 50.01 feet; and South 52 degrees 42 minutes 21 seconds
West, 49.96 feet; and South 45 degrees 20 minutes 21 seconds West, 50.05 feet; and South 41 degrees lS
minutes 27 seconds West, 49.90 feet; and South 40 degrees 23 minutes 25 seconds West, 49.93 feet; and
South 39 de -green 49 minutes 47 seconds West, 49.98 feet, to a 5/8 inch iron rod with "City Fort Worth
Survey Section" cap, set;
Thence continuing with the center of Randol Mill Road, South 40 degrees 22 minutes 46 seconds West,
429.95 feet, to a 5/8 inch iron rod with "City Fort Worth Survey Section" cap, set;
Thence continuing with the center of Randol Mill Road, South 39 degrees 49 minutes 02 seconds West,
460.66 feet, to a 513 inch iron rod with "City Fort Worth Survey Section" cap, set;
10
Thence continuing with the center of Randol Mill Road, South 39 degrees 14 minutes 05 seconds West,
504.08 feet, to a 5/8 inch iron rod with "City Fort Worth Survey Section" cap, set, from Which a 7/8 inch
iron rod, found, bears North 39 degrees 46 minutes 00 seconds East, 0.94 feet;
Thence South 89 degrees 46 minutes 00 seconds West, 203.82 feet, to a spike found in the center of East
First Street, at the southeast corner of a 60 foot strip of land dedicated for Right of Way, according to the
plat of Lot 1, Block 1, Arc Park Addition, according to plat filed in Volume 388-176, Page 67 of the Plat
Records of Tarrant County, Texas;
Thence North 00 degrees 10 minutes 58 seconds West, at 24.92 feet, passing a 7/8 inch lrori rod, found, at
60 feet passing a 5/8 inch iron rod with "City Fort Worth Survey Section" cap, set, for the southeast corner
of said Lot 1, in all 1277.31 feet to a 7/8 inch iron rod, found for the northeast corner of said Lot 1, and
also being in the south line of said 3725 acre tract;
Thence with the south line of said 372.5 acre tract, North 89 degrees 36 minutes 08 seconds East, at 469.74
feet passing a Texas Electric Service Company monument, found, for the southwest corner of the aforesaLd
Texas Electric Service Company tract, in all 869.79 feet to the Place of Beginning and containing 23.4
acres more or less, of which 1.9 acres lies with the existing Right of Way of Randol Mill Road, leaving a
net area of 21.5 acres. f.
III
TANDY HILLS PARK
J-.
have GRANTED, SL...J AND CON EYED, and by these presents do
CONVEY unto
the CITY OF FORT WORTH, A Municipal Corporation,
�f
tSELL AND
of Tarrant County, Texas, all that certain property situated in Tarrant
County, Texas, described ns follows, to -wit:
Situated in Tarrant County, Texas, Being 105.25 acres of land, more or less, out of
the ENOCH S. JOF,NSON SURVEY, Abstract No. 552; PETER T. WELCH SURVEY, Abstract Pio.
f 1642, and the JOHN V=H SURVEY, Abstract No. 942 in Tarrant County, Texas, and' �
being described by metes and bounds as follows: 'll
BEGI-TiITG at a point in the East line of the said Peter T. Oelch Survey, Abstract No.
164.2 and the South Right -of -Way lire of the Fort Worth -Dallas Turtnnike, a distance of'I
954.4 feet Nrorth of the Southeast corner of the said Peter T. WelciZ Surrey, Abstract ]
No. 1G4?;
i TH2FOE SOUTH 0 Degrees, 20 tHnutes East alor_- the East line of the said Peter T.
! T;elch Survey, Abstract 13b. 1642, a distance 'of 984.4 Feet to itf s, Southeast Corner; �!
TRZN.0F. SOUTH 1 Degree, 30 I- nutes East a distance •of 1722.6 Feet to an iron pine for
coi:;er;
TI, N,'.E SOUT:1 a distance - of 225.6 Feet to an iron pin fo'r corner;
i EKOE NORTH u9 Degrees, 35 rLLnutes WEST a distance of 1984.4 Feet to a pipe for
Corner; J
T3rP;C? iORT?i 0 Degree, 19 %:inutes Hest a distance of 574.3 Feet to a pipe for Co_ner;
T ENCi NTO TH 89 Degrees, OS Minutes West a•distance of 75.2 Feet to a Bois'D Arch
sta''KCz for corner; III
• Ti EnCF, NORTH0 Degree, 03 lei -mutes Wast a distance of 1196.7 Feet to a pin in the Sout��1]
,ht -of -Way Line of the said Fort Worth -Dallas Turnpike;
'T_aNCL in a_'D!6rLTRFASTERLY direction along the said South Right -of -clay line of the sainll
Port.?North-Dallas Turnpike, along a Cuh•ve with a Radius of 5980 Feet; •a distance o ;I
1576,1 Feet tp::she. end of said Curve; +
Tr�l�?CE-. NORTU+__751 Degrees 20 ;Minutes EAST a. distance of 773.1 :Feet to the ,PUCE 0 l]I
;,. •1 III
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1: ' TO HAVE AND TO. HOLD the said premises, together with all rights, hereditaraents and appurte-
a
j. successors
nances thereto belonging, unto the said grantee, above named, its/:heizz and assigns forever. And
+ We do hereby bind ourselves, our heirs, executors and administrators, to,'WARRANT
!� AND FOREVER DEFEND the title to said property unto the said grantee above named, izs
successors
/heirs and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part
theraof.
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/4/2005
DATE: Tuesday, January 04, 2005
LOG NAME: 30EASTSIDEGAS REFERENCE NO.: L-14010
SUBJECT:
Approval of Lease Agreement for Natural Gas Drilling under Eastside Parks (Gateway, Quanah
Parker, and Tandy Hills) with Dale Resources, LLC
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under the Eastside Parks (Gateway, Quanah Parker, and Tandy Hills) with Dale Resources, LLC for
one two-year term.
DISCUSSION:
On August 24, 2004 (M&C C-20233), Fort Worth City Council authorized staff to advertise a request for
proposals from private companies to drill for natural gas under Eastside parkland, which is comprised of
the Gateway, Quanah Parker, and Tandy Hills City parks. The total available acreage is 702.65 acres.
A request for bid proposals (RFP) was advertised for three consecutive weeks in two daily publications: the
Commercial Recorder, published on October 28, November 3, and November 11; and the Fort Worth Star
Telegram, published on October 28, November 5, and November 11. The RFP was also advertised twice
in the Fort Worth Business Press in the November 7-13 and November 21-27 issues.
The following sealed bids were received and opened on December 2, 2004:
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Dale Resources LLC $2,031.00 $1,427,082.00 25
Four Sevens Oil Company $1,151.00 $ 808,750.00 25
Frost Brothers Resources, LLLP $1,000.00 $ 702,650.00 25
The bids received were evaluated by staff and the City's mineral asset management consultant, JPMorgan
Chase to determine the best overall bidder. In addition to the lease bonus rate and royalties paid to the
City, the bidder's drilling plan, reputation, financial status, project team, and compliance history were also
evaluated. On December 14, City staff and representatives from JPMorgan Chase met with
representatives of each bidder to obtain additional information and clarification of each proposal.
City staff and JPMorgan Chase determined, based upon the proposal content and follow-up interview, that
the Dale Resources LLC bid is the overall best bid.
In accordance with the Alternative Assets Agency Account Agreement between JPMorgan Chase and the
City (City Secretary Contract 29698), JPMorgan Chase will serve as the depository of the lease bonus
revenue until the City adopts a Gas Lease Revenue Policy. The recommendation to adopt this policy is
scheduled to be brought before Council on January 11, 2004.
Page 2 of 2
The properties in the lease agreement are located in COUNCIL DISTRICTS 4 and 8, Mapsco 64T, U, V, X,
Y, and Z; 65N, P, S, and T; and 78A, B, and C.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds due
to the City under this agreement.
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office by: Marc Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: A. Douglas Rademaker (6157)
i1H,1•IIl•n�n� l•A-f —,4,+ •]CT ?/15/2005