HomeMy WebLinkAboutContract 36888 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_�day of J AN�A 2008, 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., 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 I'- day of Fe3ava2`(,2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.
By: _ By:Cliff J. itt
Fernando Costa,Acting Its:Land Manager M,
Title:Assistant City Manager
ATTEESST4
1 i `GJ`f'� My
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant Cit A omey ,:�``]• L z,v �
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ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF ;9 I-.grt r §
BEFORE ME, ff-TTi e- ba-i e, the undersigned notary public, on
this day personally appeared Fe-rgah 12o5T� ,known to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged, that (s)he has executed the
same for the purposes and consideration therein expressed.
GIVEN under my hand and seal of office this N day of
2008.
:*�•'• '•zfi_ MtT iE LANE
My comm s: N EXPIRES Notary Public,State of Texas
July 26,2411
My Commission Expires:
Commission Number: L1D�aQ3�gj�rj
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this Vf�k of Mtn{'(, i ,2008,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
"."""' Nota ublic,State of Oklahoma
'
§C 0700A805-`. -
My Commission Expires:
Commission Number:
OF O
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2
EXHIBIT A
1.236 acres,more or less,being a triangular tract or parcel out of the Oakhurst Additon,an
Addition to the City of Fort Worth,Texas,more particularly described by metes and bounds in
that certain Plat Map dated April 13, 1925 recorded in Volume 204 Page 107 of the Plat Records,
Tarrant County,Texas;
NT
Oakhurst Park
3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/27/2007
DATE: Tuesday, November 27, 2007
LOG NAME: 30OAKHURST PARK REFERENCE NO.: **L-14425
SUBJECT:
Authorize Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas
Drilling Under 1.236 Acres, More or Less, of City-Owned Properties Located in Tarrant County,
Texas, Known as Oakhurst Park
RECOMMENDATION:
It is recommended that the City Council authorize the acceptance of a lease agreement for natural gas
drilling under 1.236 acres, more or less, of City-owned properties located in Tarrant County, Texas, known
as Oakhurst Park, to Chesapeake Exploration, L.L.C.
DISCUSSION:
On September 11, 2007, (M&C L-14397) Fort Worth City Council authorized the conversion of dedicated
parkland known as Oakhurst Park for the purpose of subsurface drilling and extraction of natural gas.
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, including 500 acres of miscellaneous parcels and right of way. Oakhurst Park is located
in north Fort Worth and is bounded on the east by Maple Leaf Street, on the north by Daisy Lane, and on
the south by Carnation Avenue. Acceptance of this lease agreement will reduce the approved 500
miscellaneous mineral acres of City-owned parcels by 1.236 net mineral acres, more or less.
A request for bid proposals (RFP) for Oakhurst Park was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, published on October 4, October 11, and October 18, 2007.
The following sealed bid for the gas lease was received and opened on October 25, 2007:
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration, L.L.C. $6,327.00 $7,820.17 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 $7,429.16, 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: 30OAKHURST PARK Pagel 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.
Revenues received from this lease will be administered in accordance with the current City Council Policy
on Gas Well Revenues.
The Property is located in COUNCIL DISTRICT 2, Mapsco 63 L.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection and deposit
of funds due the City under this agreement.
TO Fund/AccounVCenters FROM Fund/Account/C enters
C282 446100 801929990100 $7,429.16
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: 30OAKEURST PARK Page 2 of 2