HomeMy WebLinkAboutContract 40517 CITY SECRETARY
CONTRACT NO.--
MEMORANDUM OF OF OIL AND GAS LEASF,
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the day of i r V , 2010, 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, 1000 Throckmorton Street, Fort
Worth, Texas 76102, hereinafter called "(LESSOR)"; and CHESAPEAKE EXPLORATION,
LLC, 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 J U N f'—,, 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE F,XPLORATION, LLC, an
Oklah a imited liability company
By: Fernando Costa By: David G . Brannen
Title: Assistant City Manager Its: Land Manager
ArT,
TEST: �1aD` "0000000 0
°owo
ity Secretary Vo o
° 00000000O �xA�
C�Y
d�
¢d
APPROVED AS TO FORM AND LEGALITY:
Assistant City Atto ey contract Authorization
Date: -
Date
06-03-10 A09:42 IN
06-28-1 o Al 1 :46 IN OFFICIAL RECORDCITY SECRETARY
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned, a notary public, on this day personally appeared
Fernando Costa, known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged that he has executed the same for the purposes and consideration
therein expressed.
GIVEN under my hand and seal of office this la day of .Jon e—, ,
2010.
No ry Public, State of Texas
My Commission Expires: ,;R;+.
I. ;:: EVONIA DANIELS
Commission Number: •:- "= MY COMMISSION EXPIRES
July 10,2013
STATE OF OKLAHOMA §
COUNTY OF DO OVI�W §
BEFORE ME, the un ersigned, a notary public, on this day personally appeared
known to me to be the person whose name is
jkr
subscribed to the foregoing instrume 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 day of
2010.
of k y Public, State o ahoma
My Commission Expires:
Commission Number: _ ' !OP010055
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
EXHIBIT A
79.842 acres, more or less, as better described in the following fourteen (14) tracts:
Tract#1: 1.563 acres, more or less, out of the E. Littlepage Survey, Abstract No. 971, more
particularly described by metes and bounds in that certain Warranty Deed dated
November 22, 1976, by and between the Candleridge Development Corporation,
as Grantors and the City of Ft. Worth, as Grantee, recorded in Volume 6140, Page
413 of the Deed Records in Tarrant County, Texas;
Tract#2: 4.425 acres, more or less, out of the James W. Williams Survey, Abstract No.
1599, more particularly described by metes and bounds in that certain Warranty
Deed dated November 22, 1976, by and between Candleridge Development
Corporation, as Grantors and the City of Ft. Worth, as Grantee, recorded in
Volume 6140, Page 414 of the Deed Records in Tarrant County, Texas;
Tract#3: 5.132 acres, more or less, out of the E. Littlepage Survey, Abstract No. 971, more
particularly described by metes and bounds in that certain Warranty Deed dated
November 22, 1976, by and between Candleridge Development Corportion, as
Grantors and the City of Ft. Worth, as Grantee, recorded in Volume 6140, Page
416 of the Deed Records in Tarrant County, Texas;
Tract 44: 1.083 acres, more or less, being all of Block 28 out of the Candleridge Addition,
an addition to the City of Fort Worth, more particularly described by metes and
bounds in that certain Warranty Deed dated August 5, 1976 by and between
Candleridge Development Compnay, as Grantors and the City of Ft. Worth, as
Grantee, recorded in Volume 6077, Page 468 of the Deed Records in Tarrant
County, Texas;
Tract 45: 25.176 acres, more or less, being Tract A, Block 20 out of the Candleridge
Addition, an addition to the City of Fort Worth more particularly described by
metes and bounds in that certain Warranty Deed dated August 5, 1976, by and
between Candleridge Development Corporation, as Grantors and the City of Ft.
Worth, as Grantee, recorded in Volume 6077, Page 469 of the Deed Records in
Tarrant County, Texas;
Tract 46: 13.458 acres, more or less, being Tract A, Block 21 out of the Candleridge
Addition, an addition to the City of Fort Worth, more particularly described by
metes and bounds in that certain Deed dated August 5, 1976, by and between the
Candleridge Development Corporation, as Grantors and the City of Ft. Worth, as
Grantee, recorded in Volume 3226, Page 599 of the Deed Records in Tarrant
County, Texas;
Track#1 5.087 acres, more or less, being Tract A, Block 27 out of the Candleridge
Addition, an addition to the City of Fort Worth by metes and bounds in that
certain Warranty Deed dated August 5, 1976, by and between Candleridge
Development Corporation, as Grantors and the City of Fort Worth, as Grantee,
recorded in Volume 6077, Page 477 of the Deed Records in Tarrant County,
Texas;
Tract 48: 8.448 acres, more or less, being Tract A, Block 8, out of the Candleridge
Addition, an Addition to the City of Fort Worth, more particularly described in
that certain Warranty Deed dated June 7, 1976 by and between Candleridge
Development Corporation, as Grantor and the City of Fort Worth, as Grantee,
recorded in 6036, page 879 of the Deed Records in Tarrant County, Texas;
Tract#9: 5.888 acres, more or less, being Tract A Block 45 out of the Candleridge Addition,
an Addition to the City of Fort Worth, a portion of which is more particularly
described in that certain Warranty Deed dated June 7, 1976 by and between
Candleridge Development Corporation, as Grantor and the City of Fort Worth, as
3 OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
Grantee, recorded in 6036, page 882 of the Deed Records in Tarrant County,
Texas;
Tract #10: 5.086 acres, more or less, being all of Block 47 out of the Candleridge Addition,
an Addition to the City of Fort Worth, more particularly described in that certain
Warranty Deed dated June 7, 1976, by and between Candleridge Development
Corporation, as Grantors and the City of Fort Worth, as Grantee, recorded in
6036, page 884 of the Deed Records in Tarrant County, Texas;
Tract 411: 2.02 acres, more or less, being all of Block 48 out of the Candleridge Addition,
an Addition to the City of Fort Worth, more particularly described in that certain
Warranty Deed dated June 7, 1976, by and between Candleridge Development
Corporation, as Grantor and the City of Fort Worth, as Grantee, recorded in 6036,
page 886 of the Deed Records in Tarrant County, Texas;
Tract#12: 1.25 acres, more or less, being all of Block 49 out of the Candleridge Addition,
an Addition to the City of Fort Worth, more particularly described in that certain
Warranty Deed dated June 7, 1976, by and between Candleridge Development
Corporation, as Grantor and the City of Fort Worth, as Grantee, recorded in 6036,
page 887 of the Deed Records in Tarrant County, Texas;
Tract#13 0.656 acres, more or less, being a tract of land out of the James W. Williams
Survey, A-1599, more particularly described by metes and bounds in that certain
Warranty Deed dated December 29, 1975, by and between Trailwood Land
Company, as Grantor and the City of Ft. Worth, as Grantee, recorded in Volume
5941, Page 315 of the Deed Records in Tarrant County, Texas;
Tract 14 0.57 acres, more or less, being a tract of land out of the James W. Williams
Survey, A-1599, more particularly described by metes and bounds in that certain
Warranty Deed dated December 29, 1975, by and between Trailwood Land
Company, as Grantor and the City of Ft. Worth, as Grantee, recorded in Volume
5941, Page 318 of the Deed Records in Tarrant County, Texas;
(Candleridge Park)
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
4
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/18/2010
DATE: Tuesday, May 18, 2010 REFERENCE NO.: L-14982
LOG NAME: 06CANDLERIDGE PARK
SUBJECT:
Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the Amount of
$280,644.63 for Natural Gas Drilling Under 79.842 Acres of City-Owned Properties Known as Candleridge
Park Located at 4301 French Lake Drive (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 79.842 acres more or less of City-owned properties known as Candleridge Park to
Chesapeake Exploration, LLC for a two-year primary term.
DISCUSSION:
On November 17, 2009, (M&C L-14893) City Council authorized the conversion of Candleridge Park for
subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP) for Candleridge Park was advertised for three consecutive weeks in
the Fort Worth Star-Telegram, published on March 18, March 25 and April 1, 2010.
The following sealed bid for the gas lease was received and opened on April 8, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Royalty
Chesapeake Exploration, LLC f $3,515.001 $280,644.63 25.00
Percent
The bid received was evaluated by staff and the City's Mineral Management Consultant, Midkiff Oil and
Gas. 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. Timely award and execution of
this lease will allow for inclusion of these properties in the drilling unit currently being formed.
In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract
Number 37980, the net transfer to the City is estimated to be $275,031.74 more or less.
The City has established a Minority/Women Business Enterprise (M/WBE) participation goal of three
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 three percent M/WBE goal or
the inclusion of an M/WBE investor. Chesapeake has committed to meet or exceed the stated M/WBE
goal.
Logname: 06CANDLERIDGE PARK Page 1 of 2
Revenues received from this lease will be deposited according to the current Financial Management
Policy Statements (M&C G-16747, approved November 3, 2009) which direct 100 percent of the bonus to
the Parks and Community Services Capital Improvements Fund to be used for capital improvements at
this park. This park has not received funds from Federal or State grants and therefore the mineral
revenues are unrestricted. Other revenue received from this lease will be allocated as follows: i. Fifty
percent of the revenue will be allocated to the Capital Projects Reserve Fund; and ii. Fifty percent of the
revenue will be allocated to the Fort Worth Permanent Fund.
The property is located in COUNCIL DISTRICT 6, Mapsco 103 B, C, D, F, G and H.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that the Planning and Development Department is
responsible for the collection and deposit of funds due the City.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929963400 $280,644.63 C282 531260 801929963400 $5,612.89
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
1. Accounting records MC 06 CAN DLERIDGE PARK.pdf (CFW Internal)
2. Exhibit 1.pdf (Public)
Logname: 06CANDLERIDGE PARK Page 2 of 2