HomeMy WebLinkAboutContract 35406 CITY SECRETARY
CONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the 1[b day of K ,2007,a Paid Up
Oil and Gas Lease.was made and entered into by and between the TY OF FORT WORTH,a
home rale 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 FXPLORATDON'-LE%flTED PARTNERSHIP, an
Oklahoma Liunnited 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 3.65 acre tract of land being all of Blk A Lot A1,.GII.LMORE STRIPS ADDITION,an addition to
the City of Fort Worth,Tarrant County,Texas as described in that certain deed dated July 13, 1934,
from S.M.Grains,as Grantor,The City of Fort Worth,as Grantee,recorded in Volume 1210 Page
121 in Deed Records of Tarrant 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.-L&
Executed this the-L&ay of 2007.
LESSOR: LESSEE:
CITY OF FO ORTH CHESAPEAKE EXP ORATION
DAPAR Boa
By. afC By:M J. a
Title:Assistant City Manager Its:Land Manger M iz
ATTEST:
By
Title:City Secreta.
APPROVED AS TO FORM AND LEGALITY:
�Z
By:
Title:Assistant City Attorney
Contract luthoriaatiox
Date
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF d ra-47
$
BEFORE ME, -C771"e Go�1J�' the undersigned notary public, on
this day personally appeared Marc,A r Q* ]mown to me to be the person whose
name is subscribed to the foregoing instrument dance, 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 lic,State of Texas
My Commission Expires:�—e
Commission Number 006 j'�� yam/—7 "�"� ,
EHETTIE�rt,,1. I A
y,! MY COMMISSir. E
July 26,2u07—j,
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:
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:
Commission Number.
2
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 Exploration Limited Partnership on behalf of
said corporation.
NotVy Public,State of Oklahoma
My Commission Expires: OS 12011 "a011IMPIti",,,��
Commission Number:. 5 � E L 4 1,
3•tt0T004805M1`;
z N',EXP.05116111 �`
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3
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/17/2007
DATE: Tuesday, April 17, 2007
LOG NAME: 30HELICOPTER REFERENCE NO.: **L-14307
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Energy Corporation for Natural Gas
Drilling under 3.65 Acres More or Less of City-Owned Property Located at the End of Nixon Street
and SW of 1-35 in Tarrant County, Texas, Known as the Police Helicopter Pad
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 3.65 acres more or less of City-owned property located in Tarrant County, Texas, known as
the Police Helicopter Pad to Chesapeake Energy Corporation, for a two-year term.
DISCUSSION:
On May 17, 2005, (M&C G-14798) Fort Worth City Council authorized City staff to advertise a request for
proposals from private companies to drill for natural gas under 500 acres of miscellaneous City-owned
properties. The Police Helicopter Pad property is located at the end of Nixon Street just west of 1-35 and
north of Delga Park. Acceptance of this lease agreement will reduce the approved 500 miscellaneous
mineral acres of City-owned parcels by 3.65 mineral acres more or less.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial
Recorder, published on February 15, February 22, and March 1, 2007.
The following sealed bid for the gas lease was received and opened on March 8, 2007:
Bidders Lease Bonus/Acre Total Lease bonus % Royalty
Cheasapeake Energy Corporation $6,150.00 $22,447.50 25
The bid received was evaluated by staff and the City's mineral asset management consultant,
JPMorgan. 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 and the City
(City Secretary Contract 29698), JPMorgan will serve as the depository of the lease bonus revenue until
the City requests a wire transfer of the funds. The net transfer to the City (less the JPMorgan fee of
approximately $1,122.37) is estimated to be $21,325.13 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 Capital Projects Reserve
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 6/20/2007
Page 2 of 2
Fund.
The Property is located in COUNCIL DISTRICT 8, Mapsco 63 K.
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
GC10 446100 013010001000 $21,325.13
Submitted for City Manager's Office bT. 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