HomeMy WebLinkAboutContract 37598 CITY SECRETARY 'Zi 9
CONTRACT NO. 5
MEMORANDUM OF OIL AND GAS LEASE 15
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the 4-= day of , 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., an Oklahoma limited liability
corporation, 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, Texan 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 , 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, L.L.C.,
An Oklahoma limited liability corporation
&V1.
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BY F&_rh an d,0 G�osTa By: Cliff J. erritt
Title: Assistant City Manager Its: Land Manager �.Q
ATTEST: L- I g q d 7
,f4 Contract Aut orizatioa
City cretary
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APPROVED AS TO FORM AND LEGALITY:
B )L4
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Assistant CiAttorn OFFICIAL RECORD
Date: �'--,l Z —i? CITY SECRETARY
FT.WORTH,TX
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, `� the undersigned notary public, on
this day personally appeared ��, Q� Look'—. , 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 /6 qday of
2008.
HETTIE LANE
rk,v coMrIiiss,CN EXPIREsN ry Public, State of Texas
L
July 26 20i1
My Commission Expires: 0,7—,9
Commission Number:OOIo Q3.S9/
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this !/Utl ofAUMA- 52008,
by Cliff J. Merritt as Land Manager of Chesapeake Exploration, L.L.C. on b alf of said
corporation.
wlLa
Nota Public, State of Oklahoma
#07004805
My Commission Expires: �EXP.05,,5.++
Commission Number:
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OFFICIAL RECORD
CITY SECRETARY
L FT.WORTH,TX
EXHIBIT"A"
(I"through 4h Street ROW)
Tract 1 (0.00009183 acres):
A portion of Lot 6, Block 8, Riverside Addition, Third Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 8945, at Page 1039, described by metes and bounds
as follows:
BEGINNING at the southeast corner of Lot 6;
THENCE: North 89 degrees 44 minutes 53 seconds West along the South line of Lot 12, 1.69
feet to a point on a curve, the center of which bears South 71 degrees 56 minutes 23 seconds East
a radius distance of 50.0 feet;
THENCE: Northeasterly along said curve to the right an arc distance of 4.28 feet to a point of
reverse curve, the center of which bears North 67 degrees 02 minutes 14 seconds West a radius
distance of 80.0 feet;
THENCE: Northeasterly along said curve to the left an arc distance of 0.55 feet to a point in the
East line of Lot 6;
THENCE: South no degrees 15 minutes 07 seconds West along the East line of Lot 6, 4.52 feet
to the place of beginning and containing 4 square feet of land more or less.
Tract 2 (0.01962810 acres):
A portion of Lot 1, Block 9, Riverside Addition, Third Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 9263, at Page 265, described by metes and bounds
as follows:
BEGINNING at the southwest corner of Lot 1;
THENCE: North no degrees 15 minutes 87 seconds East along the West line of Lot 1, 53.37 feet
to a point on a curve, the center of which bears North 72 degrees 11 minutes 47 seconds East a
radius distance of 80.0 feet;
THENCE: Southeasterly along said curve to the left an arc distance of 39.17 feet to a point of
reverse curve, the center of which bears South 44 degrees 09 minutes 24 seconds West a radius
distance of 50.0 feet;
THENCE: Southeasterly along said curve to the right an arc distance of 24.46 feet to a point in
the South line of Lot 1;
THENCE: North 89 degrees 44 minutes 53 seconds West along the South line of Lot 1, 33.45
feet to the place of beginning and containing 855 square feet of land more or less.
Tract 3 (0.04453627 acres):
A portion of Lot 10, Block 22, Riverside Addition, First Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 8876, at Page 2040, described by metes and bounds
as follows:
BEGINNING at the southwest corner of Lot 10;
THENCE: North no degrees 16 minutes 07 seconds East along the West line of Lot 10, 31.18
feet to a point on a curve, the center of which bears North 15 degrees uta second
OFFICIAL RECORD
CITY SECRETARY
3 FT.WORTH,TX
West a radius distance of 640.38 feet;
THENCE: Northeasterly along said curve to the left an arc distance of 52.51 feet to a point in
the East line of Lot 10;
THENCE: South no degrees 16 minutes 07 seconds West along the East line of Lot 10, 47.17
feet to its southeast corner;
THENCE: North 89 degrees 43 minutes 53 seconds West along the South line of Lot 10, 50.0
feet to the place of beginning and containing 1,940 square feet of land more or less.
Tract 4 (0.04749770 acres):
A portion of Lot 11 and 12, Block 22, First Filing, Riverside Addition, an addition to the City of
Ft. Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in
that certain Warranty Deed, recorded in Volume 8927, at Page 15, described by metes and
bounds as follows:
BEGINNING at the Southwest corner of Lot 12;
THENCE: North 00 degrees 16 minutes 07 seconds East along the West line of Lot 12, 22.07
feet;
THENCE: South 44 degrees 16 minutes 55 seconds East 12.58 feet to a point on a curve, the
center of which bears North 6 degrees 47 minutes 19 seconds West with a radius distance of
640.38 feet;
THENCE: Northeasterly along said curve to the left an arc distance of 93.03 feet to a point in
the East line of Lot 11;
THENCE: South 00 degrees 16 minutes 07 seconds West along the East line of Lot 11, 31.18
feet to its Southeast corner;
THENCE: North 89 degrees 43 minutes 53 seconds West along the South line of Lots 11 and
12, 100.0 feet to the place of beginning and containing 2,069 square feet of land, more or less.
Tract 5 (0.09049587 acres):
A portion of Lot 8, Block 22, Riverside Addition, First Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 8925, at Page 2309, described by metes and bounds
as follows:
BEGINNING at the Southwest corner of Lot 8;
THENCE: North 00 degrees 16 minutes 07 seconds East along the West line of Lot 8, 67.41 feet
to a point on a curve, the center of which bears North 23 degrees 42 minutes 16 seconds West a
radius distance of 797.13 feet;
THENCE: Northeasterly along said curve to the left an arc distance of 55.63 feet to a point in
the East line of Lot 8;
THENCE: South no degrees 16 minutes 07 seconds West along the East line of Lot 8, 87.29 feet
to a point on a curve, the center of which bears North 27 degrees 52 minutes 17 seconds West a
radius distance of 563.56 feet;
THENCE: Southwesterly along said curve to the right an arc distance of 9.64 feet to a point in
the South line of Lot 8;
THENCE: North 89 degrees 43 minutes 53 seconds West along the South line of Lot 8, 41.46
4
EOFFICIAL RE]RD
SECREWORTH
feet to the place of beginning, and containing 3,942 square feet of land, more or less.
Tract 6 (0.06538108 acres):
A portion of Lot 9, Block 22, Riverside Addition, First Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 8926, at Page 2375, described by metes and bounds
as follows:
BEGINNING at the Southwest corner of Lot 9;
THENCE: North no degrees 16 minutes 07 seconds East, along the West line of Lot 9, 47.17
feet to a point on a curve, the center of which bears North 19 degrees 48 minutes 36 seconds
West a radius distance of 640.38 feet;
THENCE: Northeasterly along said curve to the left an arc distance of 0.95 feet to a point of
compound curve the center of which bears North 19 degrees 53 minutes 42 seconds West a
radius distance of 797.13 feet;
THENCE: Northeasterly along said curve to the left an arc distance of 53.0 feet to a point in the
East line of Lot 9;
THENCE: South no degrees 16 minutes 07 seconds West along the East line of Lot 9, 67.41 feet
to its Southeast corner;
THENCE: North 89 degrees 43 minutes 53 seconds West along the South line of Lot 9, 50.0 feet
to the place of beginning and containing 2,848 square feet of land, more or less.
Tract 7 (0.00303030 acres):
A portion of Lot 1, Block 35, Riverside Addition, First Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 9149, at Page 1152, described by metes and bounds
as follows:
BEGINNING at the northwest corner of Lot l;
THENCE: South 89 degrees 43 minutes 53 seconds East along the North line of Lot 1, 35.53
feet to a point on a curve, the center of which bears North 8 degrees 08 minutes 36 seconds West
a radius distance of 72 0.3 8 feet;
THENCE: Southwesterly along said curve to the right an arc distance of 25.8 feet;
THENCE: South 42 degrees 16 minutes 49 seconds West 14.86 feet to a point in the West line
of Lot 1;
THENCE: North no degrees 16 minutes 07 seconds East along the West line of Lot 1, 14.35 feet
to the place of beginning and containing 132 square feet of land more or less.
Tract 8 (1.67060000 acres):
Lot 3, 4, 5, 6, 7, 8 & 9, Block 9, and Lot 3, 4 & 5, Block 17, Riverside Addition, Third Filing, an
addition to the City of Ft. Worth, Tarrant County, Texas, being part of the B.E. Waller Survey,
A-1659, as described in that certain Plat, recorded in Volume 204-A, at Page 114, Plat Records,
Tarrant County, Texas.
OFFICIAL RECORD
5 CITY SECRETARY
FT.VVORTH,TX
Tract 9 (0.31140000 acres):
Lots 1 & 2, Block 17, Riverside Addition, Third Filing, an addition to the City of Ft. Worth,
Tarrant County, Texas, being part of the B.E. Waller Survey, A-1659, as described in that certain
Plat, recorded in Volume 204-A, at Page 114, Plat Records, Tarrant County, Texas. SAVE AND
EXCEPT the North 100 feet of said lots, and being the same property conveyed to Chas.
Rutledge on September 12, 1912, as recorded in Volume 583, Page 119, Deed Records, Tarrant
County, Texas.
Tract 10 (0.01320018 acres):
Lot 12, Block 8, Riverside Addition, Third Filing, an addition to the City of Ft. Worth, Tarrant
County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that certain
Warranty Deed, recorded in Volume 8780, at Page 2283, Deed Record, Tarrant County, Texas.
Tract 11 (0.06887052 acres):
The East 60 feet of Lot 8, Block 1, Riverside Addition, First Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being part of the B.E. Waller Survey, A-1659, as described in that
certain Plat, recorded in Volume 63, at Page 97, Plat Records, Tarrant County, Texas.
Tract 12 (0.16069789 acres):
Lot 7, Block 22, Riverside Addition, First Filing, an addition to the City of Ft. Worth, Tarrant
County, Texas, being part of the B.E. Waller Survey, A-1659, as described in that certain Plat,
recorded in Volume 63, at Page 97, Plat Records, Tarrant County, Texas.
Tract 13 (0.0196 acres):
A 0.0196 acre tract of land, the B.E. Waller Survey, Abstract Number 1659, as described in that
certain Warranty Deed, recorded in Volume 6531 at Page 507, Tarrant County, Texas, described
by metes and bounds as follows:
BEGINNING at the northwest corner of said Sheppard tract:
THENCE: North 89 degrees 56 minutes 41 seconds East along the North line of said tract 100.0
feet to its northeast corner;
THENCE: South no degrees 16 minutes 07 seconds West along said East line 9.72 feet;
THENCE: North 89 degrees 51 minutes 59 seconds West 100.0 feet to a point in the West line
of said Sheppard tract;
THENCE: North no degrees 16 minutes 07 seconds East along the West line of said tract 8.38
feet to the place of beginning and containing 855 square feet of land more or less.
Tract 14 (0.0216 acres):
A 0.0216 acre tract of land, the B.E. Waller Survey, Abstract Number 1659, as described in that
certain Warranty Deed, recorded in Volume 6214 at Page 303, Tarrant County, Texas, described
by metes and bounds as follows:
BEGINNING at the northwest corner of said First Land Company Tract;
THENCE: North 89 degrees 56 minutes 41 seconds East along the North line of said tract 115.0
feet to its northeast corner;
THENCE: South no degrees 16 minutes 07 seconds West along the East line of said tract 8.38
feet;
OFFICIAL RECORD
6 CITY SECRETARY
FT.WORTH,TX
THENCE: North 89 degrees 51 minutes 53 seconds West 115.0 feet to a point in the West line
of said tract;
THENCE: North no degrees 16 minutes 07 seconds East along the West line of said tract, 8.0
feet to the place of beginning and containing 942 square feet of land more or less.
Tract 15 (0.0101 acres):
A 0.0101 acre tract of land, the B.E. Waller Survey, Abstract Number 1659, as described in that
certain Warranty Deed, recorded in Volume 7959 at Page 293, Tarrant County, Texas, described
by metes and bounds as follows:
BEGINNING at the northwest corner of said First Land Company Tract;
THENCE: North 89 degrees 56 minutes 41 seconds East along the North line of said tract 50.0
feet to its northeast corner;
THENCE: South no degrees 16 minutes 07 seconds West along the East line of said tract 8.88
feet;
THENCE: North 89 degrees 51 minutes 53 seconds West 50.0 feet to a point in the West line of
said tract;
THENCE: North no degrees 16 minutes 07 seconds East along the West line 8.88 feet to the
place of beginning and containing 440 square feet of land more or less.
Tract 16 (0.03443526 acres):
West 10 feet of Lots 8, 9, & 10, Baker Brothers Addition, an addition to the City of Ft. Worth,
Tarrant County, Texas, being part of the A. McLemore Survey, A-1056, as described in that
certain Plat, recorded in Volume 310, at Page 21, Plat Records, Tarrant County, Texas.
Tract 17 (0.02467860 acres):
A portion of Lot 2, Block 9, Riverside Addition, Third Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 8872, at Page 771, described by metes and bounds
as follows:
BEGINNING at the southwest corner of Lot 2;
THENCE: North 49 degrees 33 minutes 25 seconds East 65.95 feet to a point in the East line of
Lot 2;
THENCE: South no degrees 15 minutes 07 seconds West along the East line of Lot 2, 43.0 feet
to its southeast corner;
THENCE: North 89 degrees 44 minutes 53 seconds West along the South line of Lot 2, 50.0 feet
to the place of beginning and containing 1,075 square feet of land more or less.
Tract 18 (0.01776860 acres):
A portion of Lot 2, Block 17, Riverside Addition, Third Filing, an addition to the City of Ft.
Worth, Tarrant County, Texas, being a part of the B.E. Waller Survey, A-1659, described in that
certain Warranty Deed, recorded in Volume 9149, at Page 1149, described by metes and bounds
as follows:
BEGINNING at the East line of Lot 2, South no degrees 22 minutes 37 seconds West along the
East line of Lot 2, 100.0 feet from its northeast corner;
7 OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
THENCE: North 89 degrees 37 minutes 23 seconds West 46.01 feet;
THENCE: North 54 degrees 12 minutes 11 seconds East 57.00 feet to a point in the East line of
Lot 2;
THENCE: South no degrees 22 minutes 37 seconds West along the East line of Lot 2, 33.64 feet
to the place of beginning and containing 774 square feet of land more or less.
END OF EXHIBIT "A"
8 OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/4/2007
DATE: Tuesday, December 04, 2007
LOG NAME: 301 ST TO 4TH REFERENCE NO.: '"*L-14427
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas
Drilling Under 2.6207 Acres, More or Less, of City-Owned Properties Located in Tarrant County,
Texas, Known as the 1 st to 4th Street Right-of-Way
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 2.6207 acres, more or less, of City-owned properties located in Tarrant County, Texas, known
as the 1st to 4th Street Right-of-Way to Chesapeake Exploration, L.L.C.
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, including 500 acres of miscellaneous parcels and right-of-way (ROW). First through 4th
Street ROW is 17 small tracts of 1st Street Right-of-Way from approximately Penland to Riverside Drive.
Acceptance of this lease agreement will reduce the approved 500 miscellaneous mineral acres of City-
owned parcels by 2.6207 net mineral acres, more or less.
A request for bid proposals for 1st to 4th Street ROW was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, published on October 4, 11, and 18, 2007.
The following sealed bid for the gas lease was received and opened on October 25, 2007.
Bidder Lease Bonu/Acre Total Lease Bonus % Royalty
Cheasapeake Exploration, L.L.C. $6,356.00 $16,657.16 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 $15,824.30, 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.
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/18/2008
Page 2 of 2
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 8, Mapsco 63 V.
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/Account/Centers FROM F u nd/Accou nt/C enters
C223 446100 201929990100 $15,824.30
Submitted for City Manager's Office by: Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/18/2008