HomeMy WebLinkAboutContract 36884 CITY SECRETARY /3 -S
CONTRACT NO. 3L
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 2008, a Paid Up
Oil and Gas Lease was made and entered into by and between the CIT F 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., 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_'day of 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.
By: MrC A t��r By:Criff J. erritt
Title:Assistant City Manager Its:Land Manager
ATTEST: -�
Y,\F\�
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant City Att rney
Date:
Contrlict h thorizationM
vggE �L,? p�I7�1
Date
1
04-15-03 A10:49 IN
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF § ,,pp
BEFORE ME, oC4inst_ 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 I7 day of c
2008. ——
Notary Public, to e of Texas
My Commission Expires: D 7 A4—j?O I/
Commission Number: OoG q,35rr/—�
HETTIE LANE
_ MY COMMISSION EXPIRES
? July 26,2011
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA § n n
This instrument was acknowledged before me this 25" of I Vl 2008,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
;tiN'e�Ll, Not blit,State of Oklahoma
p 07004805`_
My Commission Expires: I
Commission Number:
EXHIBIT A
0.5710 acres, more or less, being Tract IF of the Jacob Brockman Survey, A-102, the same
property described as Parcels 2A, 2B and 2C of the Randol Mill Road Righ-of-Way in that
certain Warranty Deed dated September 29, 1987,from Riverbend,a Texas General Partnership,
as Grantor to The City of Fort Worth, as Grantee, recorded in Volume 9236, Page 147 of the
Deed Records of Tarrant County,Texas.
3 F
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/18/2007
DATE: Thursday, January 18, 2007
LOG NAME: 30CITY LEASES REFERENCE NO.: G-15588
SUBJECT:
Authorize the Provision for Administrative Approval of Leases for Natural Gas Drilling under City-
Owned Properties of Two Acres or Less in Size
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to approve and execute leases for
natural gas drilling under City-owned properties that are two acres or less in size.
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 3,651 estimated mineral acres of City-owned
properties. Most of these properties range from 3 to 800 acres or more in size.
From time to time, the City is asked to lease isolated City-owned properties in various locations that are two
acres or less. City staff is recommending that gas leases for these properties be administratively approved
for natural gas drilling leases after evaluation of the gas company's drilling plan, reputation, financial status,
project team, and compliance history by engineering staff and the City's mineral asset management
consultant, JPMorgan Chase. Staff will report the negotiated lease bonuses and royalty to the City Council
through the regular monthly gas lease report. The leases would be executed through an internal
administrative process involving the Engineering Department, the City Attorney's Office and the City
Manager's Office.
Requirements and guidelines to be followed in determining eligibility for inclusion in the Adminstrative Gas
Lease Process are as follows:
• City-owned property two acres or less that is not a City park
" No surface use of any kind
• No identified adverse impact to the surrounding neighborhood
" Compliance with the City's gas drilling ordinance
• Minimum bonus to be determined by current market rate
" Minimum royalty of 25 percent
" The distrubution of lease bonus and royalties will be in accordance with the revenue
distribution policy approved by the City Council
" No MWBE goal will be required due to the size of the parcels
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 and
royalty revenue until the City requests wire transfer of the funds.
Logname: 30CITY LEASES Page 1 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
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: 30CITY LEASES Page 2 of 2