HomeMy WebLinkAboutContract 35901 CITY SECRETARY1�
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 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, L.L.C., successor by merger to
Chesapeake Exploration 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:
SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF
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.
Executed this the 1-0( y of 2007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Exploration Limited nership
By: Marc A.Ott By:Cliff Nferritt
Title: Assistant City Manager Assistant City Manag&:Land anager
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City Secretary
Date
APPROVED AS TO FORM AND LEGALITY:
By-(_- -)t44.e'09X1
Assistant City At rnefy�--�
Date:
1
ACKNOWLEDGEMENTS
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: oob�l3 5q 1-�J
HEMELAN`_
MY COMMISSION EXPIRES
442011
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this of 2007,
by Cliff J. Merritt as Land Manager of Chesapeake Exploration,L.L.C.on be alf of said
corporation.
..",1N11.... M Notary Public,State of Oklahoma
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My Commission Expires: - ao�ooasos`
Commission Number: =ait.a oo=
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EXHIBIT"A"
5.5 acres (Riverside Park-South), more or less, part of the J. Little Survey, A-958, more particularly
described by metes and bounds in that certain Deed dated August 8, 1937, by and between Tarrant
County,as Grantor and the City of Ft.Worth Parks Department,as Grantee,as recorded in Volume 1345,
Page 480 of the Deed Records in Tarrant County,Texas.
3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/10/2007
DATE: Tuesday, July 10, 2007
LOG NAME: 30RIVERSIDE SO REFERENCE NO.: **L-14351
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership, for
Natural Gas Drilling under 5.5 acres, more or less, of City-Owned Properties Located in Tarrant
County, Texas, known as the Riverside Park - South
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 5.5 acres, more or less, of City-owned properties located in Tarrant County known as the
Riverside Park - South to Chesapeake Exploration Limited Partnership for a two-year term.
DISCUSSION:
On October 31, 2006, (M&C L-14262) Fort Worth City Council authorized the conversion of dedicated
parkland known as Riverside Park for the purpose of subsurface drilling and extraction of natural gas. The
entire park consists of 31.545 acres, more or less, with the northern section of the park being 26.045 acres
and the southern section consisting of 5.5 acres. Initially, it was not understood that the park included the
southern section of Riverside Park which is often used as the Smoke Pit Bar-B-Q restaurant parking
lot. As a result, the two sections of the park were bid out as separate tracts. The award of this lease is for
the southern section (5.5acres) of Riverside Park. The award of the northern section of the park (26.045
acres) will be presented to Council by a separate Mayor and Council Communication.
A request for bid proposals (RFP) for the southern 5.5 acres of Riverside Park - South was advertised for
three consecutive weeks in the Commercial Recorder, published on May 10, 2007, May 17 and May 24,
2007.
The following sealed bid for the gas lease was received and opened on May 31, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royally
Chesapeake Exploration Limited Partnership $6,675.00 $36,712.50 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 administrative
and legal fees is estimated to be $34,876.87, 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
Logname: 30RIVERSIDE SO Page I of 2
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 Park Gas Lease Projects
Fund to complete the Master Plan for Riverside Park.
The Property is located in COUNCIL DISTRICT 2, Mapsco 63 U.
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 $34,875.87
Submitted for City Manager's Office by; Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker(6157)
Additional Information Contact: Jean Petr (8367)
Logname: 30RIVERSIDE SO Page 2 of 2