HomeMy WebLinkAboutContract 35913 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&hy of' 2007, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY VOF ORT 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 t day of 007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Exploration Limi d Partnership
r
By: Marc A.Ott By:CI Merritt
Title: Assistant City ManagelAssistant City Manager Its:Land Manager
ATTEST: l —� ��
or.tract authorization
}City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant City ttorney
Date:
— l
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF -7A'-,w- ,7—
BEFORE
A'Ndn7BEFORE ME, the undersigned notary public, on
this day personally appeared G4 a44Z- ,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 T*day of JCcrYl�l
2007. �
=�C
Notary Public,State of Texas
My Commission Expires:
Commission Number: /Glo�lU SSP/
MVOOMMSS.JLNANEpIpES
428,2011
STATE OF OKLAHOMA
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this_ 2b of_ &1 �" ,2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
°EN°EL o Notary Public,State of Oklahoma
TAIj T,
,o7004805 ; =-
My Commission Expires:_
Commission Number:
2
EXHIBIT-A-
22.871
XHIBIT"A"22.871 acres of land(Riverside Park),more or less,and more thoroughly described as follows:
Tract 1:
A 14.62 acre tract of land being out of, and a part of the John Little and W.H. Little Surveys, Abstract
Numbers 958 and 945 as described in that certain Warranty Deed dated March 6, 1975 from Max H.
Eubank and W.R. Childress,and Childs Construction Company, Inc, as grantors,to City Of Fort Worth,
as grantee.
Beginning at the most easterly southwest corner of that certain tract conveyed to W.P Colbum by deed
recorded on Volume 1127,Page 71,Deed Records,Tarrant County,Texas;
Thence south 00 degrees 28 minutes west along a fence 98.0 feet to an iron pin for comer;
Thence south 86 degrees 30 minutes west along a fence 176.0 feet to an iron pin for corner on the east
bank of the Trinity River;
Thence northwesterly along the east bank of said river, north 47 degrees 57 minutes west 167.48 feet.
North 41 degrees I I minutes west 525.47 feet. North 44 degrees 43 minutes west 171.25 feet. North 41
degrees 41 minutes feet,west 478.52 feet.North 46 degrees 16 minutes west 98.82 feet.North 20 degrees
05 minutes west 73.47 feet. North 47 degrees 03 minutes west 57.36 feet.North 36 degrees 38 minutes
west 221.04 feet,and north 58 degrees 08 minutes west 43.59 feet to an iron pin for corner;
Thence north 63 degrees 37 minutes east 67.57 feet to an iron pin for corner;
Thence south 87 degrees 51 minutes east along a fence 540.69 feet to an iron pin for corner in the
proposed west ROW line of Oakhurst Scenic Drive;
Thence southeasterly along the proposed west ROW line of Oakhurst Scenic Drive,south 34 degrees 19
minutes east 144.88 feet to an iron pin for the beginning of a curve to the right having a radius of 4963.09
feet,then along said curve to the south 28 degrees 17 minutes east 207.38 feet to the beginning of a curve
to the left having a radius of 1245.79 feet then along said curve to the left 231.93 feet to the end of curve,
and then south 46 degrees 00 minutes east 101.78 feet to an iron pin for corner in the present west ROW
line of said Oakhurst Scenic Drive;
Thence along the westerly line of said Oakhurst Scenic Drive as follows, then along a curve to the left
having a radius of 2964.9 feet,a distance of 9.0 feet to the end of curve,then south 37 degrees 17 minutes
east 116.04 feet, south 89 degrees 20 minutes east 64.34 feet to an iron pin, then south 37 degrees 17
minutes east 119.04 feet to the beginning of a curve to the right having a radius of 1096.3 feet,and then
along said curve to the right 69.56 feet to an iron pin for comer;
Thence north 89 degrees 17 minutes west 114.46 feet to the point of beginning and containing 14.477
acres of land and there is also 0.143 acres lying outside of said proposed ROW of Oakhurst Scenic Drive,
therefore containing in all 14.62 acres of land.
Tract 2:
Being 1.8070-acre tract of land,more or less,Beginning at a point in the East Right of Way line of the
proposed project of the Oakhurst Scenic Drive,County Project No. 3026;said point being 50 ft.from
and at right angles to Section 68+23.2 on the center line of the proposed project.
Thence North 89°02' West with the northern property line of said Tarrant County Tract I]7.0 ft.to a
point the west Right of Way line of the Oakhurst Scenic Drive.
Thence around a curve to the right whose radius is 1096.3 ft.for a distance of 116.0 ft.more or Tess to
a point the end of said curve.
Thence south 28°07' east with the west Right of Way line of the approved project for a distance of
230.5 ft.to a point the beginning of a curve to the right whose radius is 1860.1 ft.
Thence around said curve 50 ft.westerly from and concentric to the centerline of said project for a
distance of 204.3 to a point the end of said curve.
Thence south 22°02'east with the west Right of Way Zine of the said Project for a distance of 21.6 ft. to
a point the beginning of a curve to the left whose radius is 1005.4.
Thence around said curve 50 ft. Westerly from and concentric to the center line of the said project for a
distance of 257.3 ft. to a point the end of said curve.
Thence south 36° 18' east with the west Right of Way line of the said project 131.7 ft. to a point
the north.Right of Way line of Park Street.
Thence north 33°42' cast with the north Right of way line of Park Street for a distance of 101.6 ft. to a
point the east Right of Way line of the said project.
Thence north 36° 18' west with the east.Right of Way line of the said project 113.6 ft, to a point a
curve to the right whose radius is 905.4 ft.
Thence around said curve for e distance of 229.3 ft. to the end of said curve.
Thence north 22°02' west with the east Right of Way line of the said project 21.6 ft. to a point.the
beginning of a curve to the left whose radius is 1960.1 ft.
Thence around said curve for a distance of 15.8 ft. to a point.
3
Thence north 891 02' west with the south property line of the T&N 0 Railroad tract 107.1 ft. to a
point.
Thence north 0°58'east with the westerly property line of the T&.N O Railroad tract 218.1 ft. to a
point the east Right of way line of the said project.
Thence north 28°07' west with the east Right of Way line of the said project 183.3 ft. to a point the
beginning of a curve to the left whose radius is 1196.3 ft.
Thence around said curve for a distance of 41.2 ft. to a point the place of beginning. Containing in all
1.8070 acres of land.
Tract 3:
A 0.426 acre tract of land being out of, and a part of the John Little Survey, Abstract Number 958 as
described in that certain Warranty Deed dated May 30, 1936 from Tarrant County,as grantors,to City Of
Fort Worth,Park Department,as grantees.
Tract 1: Beginning at a point in the easterly right of way line of the proposed Riverside Scenic Drive,
County Project Number 3026, being 100 feet easterly from and at right angles to Station 52-07.5 on the
center line of the said proposed project,said point also being 400 feet east of and 1063 feet south of the
northwest comer of the John Little Survey,Tarrant County,Texas;
Thence south 37 degrees 40 minutes eat with the easterly right of way line of the proposed project 2.1 feet
to the beginning of a curve to the right whose center bears south 52 degrees 20 minutes west 1532.7 feet;
Thence in a southeasterly direction along said curve 100 feet easterly from and concentric to the center
line of the proposed project 130.56 feet to the Band of said curve;
Thence south 32 degrees 48 minutes east with the easterly right of way line of the proposed project 30
feet to the southerly property line of a tract of land owned by the T.&N.O.Railroad Company;
Thence north 89 degrees 02 minutes west with the southerly property line of the said tract 91.3 feet to a
point the westerly property line of said tract;
Thence north 00 degrees 58 minutes east with the westerly property line of a tract of land owned by the T.
&N.0.Railroad, 129.1 feet to the place of beginning,containing in all 0.135 acres of land.
Tract 2: Beginning at a point in the easterly right of way line of the proposed Riverside Scenic Drive,
County Project Number 3026, being 50 feet easterly from and at right angles to Station 70-47.7 on the
center line of the proposed project,said point also being 2548.2 feet south from and 1174 feet west of the
northeast corner of the John Little Survey,Tarrant County,Texas;
Thence south 28 degrees 07 minutes east with the easterly right of way line of the proposed project 47.2
feet to the beginning of a curve to the right whose center bears south 61 degrees 53 minutes west 1960.1
feet;
Thence in a southwesterly direction along said curve 50 feet easterly from and concentric to the center
line of the proposed project,200.3 feet to a point the southerly property line of a tract of land owned by
the T.&N.0.Railroad Company;
Thence north 89 degrees 02 minutes west with the southerly propert line of a tract of land owned by the
T.&N.0. Railroad Company, 167.1 feet to the westerly property line of a tract of land owned by the T.
&N.0.Railroad;
Thence north 00 degrees 58 minutes east with the westerly property line of a tract of land owned by the T.
&N.0.Railroad Company,218.1 feet to the place of beginning,containing in all 0.291 of an acre of land.
Tract 4:
A 0.141 acre tract of land being out of, and a part of the John Little Survey, Abstract Number 958 as
described in that certain Warranty Deed dated October 25, 1937 from R.A. McGinnis and George B.
Eagle,as grantors,to City Of Fort Worth,Park Department,as grantees.
Beginning at a point in the north right of way line of State Highway Number 121, where the east right of
way line of the Oakhurst Scenic Drive, County Project Number 3026, intersects the north right of way
line of State Highway 121; said point being north 59 degrees 55 minutes east 240.0 feet, more or less
from a point at a right angle to the east end of the bridge over the Trinity River on State Highway 121 &
10, said east right of way line of Oakhurst Scenic Drive, County Project Number 3026, being 27.5 feet
easterly from and at right angles to the center line of said project;
Thence north 15 degrees 43 minutes west with the east right of way line of the Oakhurst Scenic Drive for
a distance of approximately 317 feet,more or less;
Thence south 9 degrees 18 minutes east for a distance of approximately 328.0 feet to a point in the north
right of way line of State Highway 121 & 10;
Thence north 59 degrees 55 minutes east with the north right of way line of State Highway Numbers 121
& 10, a distance of approximately 39.5 feet to the place of beginning, containing in all 0.141 acres of
land.
4
Tract 5:
Being 5.8770-acre tract of land, more or less,Beginning at a point in the Easterly right of way line of the
proposed Riverside Scenic Drive,County Project No. 3026, same being the beginning of a curve to the
right whose center bears North 47'20'East 140.5 ft.also being 100 ft.Easterly from and at right angles to
station 40+62.5 on the center line of the proposed project; said point being also 252 ft.West of and 23.8
ft.south of the Northeast corner of the W.H.Little Survey,Tarrant County,Texas;
Thence in a Northeasterly direction along said curve 100 ft.Easterly from and concentric with the center
line of said project 21.6 ft.to the Northern property line of a tract of land owned by Angela Spartos,same
being the north line of the W.H.Little Survey;
Thence North 89°02' west with the Northern property line of a tract of land owned by Angela Spartos
102.48 ft. crossing the center line of the said project at Station 39+50, in all 204.96 ft. to a point on a
curve to the left whose center bears North 41°14'East 340.5 ft.same being the Westerly right of way line
of the new proposed project;
Thence in a Southeasterly direction,along said curve 100 ft.Westerly from and concentric with the center
line of said project 176 ft.to the end of said curve;
Thence South 42'40'East with the Westerly right of way line of the proposed Riverside Scenic Drive
5.5 ft.to a point the beginning of a curve to the right whose center bears South 47°20' West 1332.7ft.;
Thence In a Southwesterly direction along said curve 100 ft. Westerly from and concentric with the
center line of the said project 269.8 ft.to the end of said curve;
Thence South 30°44' East with the Westerly right of way line of the said proposed project 2.8 ft.to the
beginning of a curve to the left whose center bears North 59'16' East 2964.9 ft.
Thence in a Southeasterly direction along said curve 100 ft. Westerly from and concentric with the
centerline of the said proposed project 143.32 ft.to the end of said curve;
Thence South 33"30' East with the Westerly right of way line of the proposed project 613.7 ft. to the
beginning of curve to the Left whose center bears North 56°30'East 1055.4 ft.
Thence in a Southeasterly direction along said curve 100 ft.Westerly from said concentric with the center
line of the said proposed project 49.7 ft.to a point the southerly property line of a tract of land owned by
Angela Spartos; said point also being 100 ft. Westerly from and radially from Station 51+62.6 on the
center line of the proposed project;
Thence South 89°02' East with the Southerly property line of a tract of land owned by Angela Spartos,
128.3 ft.crossing the center line of the proposes project at Station 52+55, in all 180.3 ft. to a point the
East property line of a tract of land owned by Angela Spartos:
Thence North 0°58'East with the East property line of a tract of land owned by Angela Spartos 93.1 ft.to
the Easterly right of way line of the proposed project;
Thence North 37°40' West with the Easterly right of way line of the proposed project 7.8 ft. to the
beginning of a curve to the right whose center bears North 52'20'East 855.4 ft.
Thence in a Northwesterly direction along said curve 100 ft.Easterly from end concentric with the center
line of the proposed project 62.24 ft.to the end of said curve;
Thence North 33°30' West with the Easterly right of way line of the proposed project 631.1 ft. to the
beginning of a curve to the right whose center bears North 56'30'East 2764.9 ft.
Thence in a Northwesterly direction along said curve 100 ft.Easterly from and concentric with the center
line of the proposed project 137.7 ft.to the end of said curve;
Thence North 30'44' West with the Easterly right of way line of the proposed project 2.8 ft. to the
beginning of a curve to the left whose center bears South 59'16' west 1532.7 ft.
Thence in a Northwestern direction along said curve 100 ft.Easterly from and concentric to the center of
the proposed project 310.99 ft.to the end of said curve;
Thence North 42'40'West with the Easterly right of way line of the proposed project 5.5 ft.to the place
of beginning.Containing in all 5.8770 acres of land.
5
City of Fort Worth, Texas C/O
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/10/2007
DATE: Tuesday, July 10, 2007
LOG NAME: 30RIVERSIDEPARK REFERENCE NO.: **L-14352
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership, for
Natural Gas Drilling under 26.045 acres, more or less, of City-Owned Properties Located in Tarrant
County, Texas, known as the Riverside Park
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 26.045 acres, more or less, of City-owned properties located in Tarrant County known as the
Riverside Park to Chesapeake Exploration Limited Partnership for a two-year term.
DISCUSSION:
On October 31, 2006, (MSEC 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 northern section (26.045 acres) of Riverside Park. The award of the southern section of the park (5.5
acres) will be presented to Council by a separate Mayor and Council Communication.
A request for bid proposals (RFP) for the northern 26.045 acres of Riverside Park was advertised for three
consecutive weeks in the Commercial Recorder, published on April 26, May 3 and May 10, 2007.
The following sealed bid for the gas lease was received and opened on May 17, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty,
Chesapeake Exploration Limited Partnership $7,932.00 $206,588.94 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 $196,259.49, more or less.
The City has established a Minority Women Business Enterprise (M/ BE) 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/ BE goal or the inclusion
Logname: 30RIVERSIDEPARK Pa¢e 1 of 2
r � Y
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 P, Q.
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 4461000 801929990100 $196.259.49
Submitted for City_Managees Office by Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker(6157)
Additional Information Contact: Jean Petr(8367)
Logname: 30RIVERSIDEPARK Page 2 of 2