HomeMy WebLinkAboutContract 35404 ur0`3ET ��
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MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the—it day of 2007, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY OF FORT WORTH,a
home rule municipal corporation of the State of Texas, c/o Director, Department of
Engineering, 1000 Throckmorton Street, Fort Worth, Texas 76102, hereinafter called
"(LESSOR)"; and CHESAPEAKE EXPLORATION LEMTED PARTNERSHIP, an
Oklahoma Limited Partnership, P.O. Box 18496, Oklahoma City, Oklahoma 73154,
hereinafter called ("LESSEE"), where LESSOR hereby grants, leases and lets exclusively to
LESSEE for the purpose of exploring for, developing, producing and marketing oil and gas,
together with any liquid or gaseous substances produced in association therewith, from the
following described land situated in Tarrant County,Texas,to-wit:
A 3.16 acre tract of land being all of Lots 1,2,3,4,5,6,7,8,9, 10,11,12, 13,and 14,Block 16
of Greenway Place Addition to the City of Fort Worth, as described in that certain Warranty
Deed,dated September 12, 1968,from William Garland Ellis,Jr.,a widower,as Grantor,to City
of Fort Worth,a municipal corporation,as Grantee,and recorded in Volume 4615,Page 847 of
the Deed Records of Tan-ant County,Texas.
Subject to the other provisions therein contained, said lease provides for a primary term
of two (2) years, from the date thereof, and as long thereafter as oil or gas or other substances
covered therein are produced in paying quantities from the leased premises or from lands pooled
therewith,or this lease is otherwise maintained in effect pursuant to the provisions therein.
An Executed copy of said Oil and Gas Lease is in the possession of LESSEE at its
address indicated above.
0
Executed this the day of 2007.
LESSOR: LESSEE:
CITY OFF T O TH CI-IES EAKE EXPLORATION
L D
By: By: ff rritt
Title:Assistant City Manager Its:Land ager M
ST:
By: C4r ,
Title:City Secretary
APPROVED AS TO FORM AND LEGALITY:
By.
Title:Assistant City Attorney
.ontra t Authoriaatioa 1 �y' ;�;=1 '1r�� ;rD
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
$
COUNTY OF
BEFORE ME, ,deZna— 4 a h it the undersigned notary public, on
this day personally appeared Marr!A M+ ,]mown to me to be the person whose
name is subscribed to the foregoing instrument and, that (s)he has executed the same for the
purposes and consideration therein expressed.
GIVEN under my hand and seal of office this day ofd-fes_
2007.
Notary Public,State o eras
My Commission Expires: 7-A6-07
Commission Number: D�,37'9/—7
C771
THE STATE OF TEXAS $
$
COUNTY OF
BEFORE ME, the undersigned notary public, on
this day personally appeared ,known to me to be the person whose
name is subscribed to the foregoing instrument and, that (s)he has executed the same for the
purposes and consideration therein expressed
GIVEN under my hand and seal of office this day of
2007.
Notary Public,State of Texas
My Commission Expirrs
Commission Number
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned notary public, on
this day personally appeared 'known to me to be the person whose
name is subscribed to the foregoing instrument and, that (s)he has executed the same for the
purposes and consideration therein expressed
GIVEN under my hand and seal of office this day of
2007.
Notary Public,State of Texas
My Commission Expires:
'fie Ifl, VOL
Commission Number:
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this I of 2007,
by Cliff J.Merritt as Land Manager of Chesapeake ploration Limited Partnership on behalf of
said corporation. (F—OA.
tary Public,State of Oklahoma
My Commission Expires: 05 1c-, '201 I
Commission Number: 0 00 eN.ett�"%
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/3/2007
DATE: Tuesday, April 03, 2007
LOG NAME: 30DELGA PARK REFERENCE NO.: **L-14300
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Energy Corporation for Natural Gas
Drilling Under 3.16 Acres More or Less of City-Owned Properties Located in Tarrant County Texas
Known as the Delga Park
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 3.16 acres more or less of City-Owned Properties Located in Tarrant County Texas known as
Delga Park to Chesapeake Energy Corporation, for a two-year term.
DISCUSSION:
On November 8, 2006, (M&C L-14250) Fort Worth City Council authorized the conversion of dedicated
parkland known as Delga Park for the purpose of subsurface drilling and extraction of natural gas.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial
Recorder, published on January 25, February 1, and February 8, 2007.
The following sealed bid for the gas lease was received and opened on February 15, 2007.
Bidders Lease Bonus/Acre Total Lease Bonus % Royalty
Cheasapeake Energy Corporation $6,047.00 $19,108.52 25
The bid received was evaluated by staff and the City's mineral asset management consultant, JPMorgan
Chase. 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.
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 requests wire transfer of the funds. The net transfer to the City less the JPMorgan
Chase fee is estimated to be $18,153.09 more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of 3 percent
on City-owned property of 40 acres or more without an investment goal. On leases of City-owned property
of 700 acres or more, the City has established an option of either a 3 percent M/WBE goal or the inclusion
of an M/WBE investor. This lease is less than 40 acres therefore no M/WBE participation goal is
required.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the City's Park Improvement
Fund to complete the Master Plan for Delga Park.
The Property is located in COUNCIL DISTRICT 8, Mapsco 63 P.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 6/20/2007
Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds due
the City under this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929990100 $18,153.09
Submitted for City Manager's Office by: Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 6/20/2007