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HomeMy WebLinkAboutContract 35590 CITY SECRETARY`S 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 2007, 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 LIMITED PARTNERSHIP, an Oklahoma 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: 39.56 acres, more or less, out of the M. J. Brittain Survey Abstract# 104, Tarrant County, Texas and being more particularly described by metes and bounds in that certain Warranty Deed dated October 2, 1969 from Thomas W. Harris and wife Mary Anne Harris to Elite Parks Inc. and recorded in Volume 4792,Page 474 of the Deed Records of Tarrant County, Texas: Tract 1: Being 19.56 acres of land out of the M.J. Brittain Survey, in Tarrant County, Texas, and being described by metes and bounds as follows: Beginning at an iron pin 541.7 varas South of the Northwest corner of the M.J. Brittain Survey, said point being the Southwest corner of a 50acre tract deeded to Nicholas Dayton by W.T. Parker and wife on the 29`h day of September, 1908, by deed recorded in Vol. 285, Page 410, of the Deed Records of Tarrant County,Texas; Thence east 726.0 feet to the point of beginning of this tract; Thence South 0 degrees 07 minutes west along a line 726.0 feet east of and parallel to the West line of said M.J. Brittain Survey, 1193.0 feet to a point for corner; Thence North 88 degrees 48 minutes East, along fence line, 736.0 feet to an iron pin for corner in the West line of Parker Henderson Road; Thence North 1 degree 34 minutes West, along the West line of Parker Henderson Road, 1178.0 feet to an iron pin for corner, said corner being the Southeast corner of said Dayton 50 acre tract; Thence west along fence line, 701.0 feet to the point of beginning and containing 19.56 acres more or less; Save and except any part or portion thereof in the use or occupancy of any public road or highway. Tract 2: Being 20 acres of land, more or less, out of the M.J. Brittain Survey, Tarrant County, Texas, and described by metes and bounds as follows: Beginning at an iron pin 541.7 varas South of the Northwest corner of the M.J. Brittain Survey, said point being the Southwest corner of a 50 acre tract deeded to Nicholas Dayton by W.T. Parker and wife on the 29'h day of September, 1908, as recorded in Vol. 285, Page 410, Deed records of Tarrant County,Texas; Thence South 0 degrees 07 minutes West along the West line of said survey, 1208.2 feet to an iron pin for corner; Thence North 88 degrees 48 minutes east, along fence line, 726.0 feet to a point for corner; Thence North 0 degrees 07 minutes East 1193.0 feet to a point for corner, said point being in the South line of said Dayton 50 acre tract; Thence West along fence line 726.0 feet to the point of beginning, and containing 20 acres, more or less. 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 1 ARIC.II I HCOR Igu �^j� 55Ajjpp�;l(J address indicated above. Executed this the '7 day of J ijAje , 2007. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION LIMIT D PARTN RSHIP By: Marc A.ttt By: Ch f rritt M k Title: Assistant City Manager It``s: Land Manager ATTEST: contract AUthorizatioA �) &A�-, &L��By: Title: City Secrekary Date APPROVED AS TO FORM AND LEGALITY: By: Title: Ass' City Attorney ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF T rra�T § BEFORE ME, //e7'tie. /�-e— the undersigned notary public, on this day personally appeared Rebs,-7- ,D, ,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 7 day of 2007. _ HETTIE LAP MY CO1'MISSION (PIRES July _ 7 Notary Public, State of Texas My Commission Expires: July 26, 2007 Commission Number: 00693591-7 STATE OF OKLAHOMA § COUNTY OF OKLAHOMA § This instrument was acknowledged before me this L� of (ll�kb , 2007, by Cliff J. Merritt as Land Manager of Chesapeake Exploration Limited Partnership on behalf of said corporation. A*. eo'-4 �� Notary Public, State of Oklahoma 90 v r O Y•.. p 07004905•`: My Commission Expires: Commission Number: `s a•. G`S. i„'F/IO F n 1p`�`v`h• 2 � �w� � � FT. 'UN, TEX. Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/22/2007 DATE: Tuesday, May 22, 2007 LOG NAME: 30PRAIRIE DOG REFERENCE NO.: **L-14322 SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for Natural Gas Drilling Under 39.56 Acres More or Less of City-Owned Properties Located in Tarrant County, Texas, Known as the Prairie Dog Park RECOMMENDATION: It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling under 39.56 acres more or less of City-owned properties located in Tarrant County known as the Prairie Dog Park to Chesapeake Exploration Limited Partnership for a two-year term. DISCUSSION: On June 20, 2006, (M&C L-14201) Fort Worth City Council authorized the conversion of dedicated parkland known as Prairie Dog Park for the purpose of subsurface drilling and extraction of natural gas. A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial Recorder, published on August 24, 2006, August 31, 2006 and September 7, 2006. The following sealed bids for the gas lease were received and opened on September 14, 2006. Bidder Lease Bonus/Acre Total Lease Bonus %Rova1_yt Chesapeake Exploration Limited Partnership $10,818.00 $427,960.09 26% Marshall R. Young Oil Co. and Quicksilver Resources, Inc. $6,000.00 $237,360.00 25% Dale Resources, L.L.C. $6,000.00 $237,360.00 25% Llano Royalty, Ltd. $5,050.00 $199,778.00 25% The bids received were 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 of$21,398.00 is estimated to be $406,562.00 more or less. The City has established a Minority Women Business Enterprise (MI 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/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://www.cfwnet.org/council_packet/Reports/mc_print.asp 8/1/2007 Page 2 of 2 It is anticipated that the lease bonus and royalty proceeds will be deposited in the City's Park Improvement Fund to complete the Master Plan for Prairie Dog Park. The Property is located in COUNCIL DISTRICT 5, Mapsco 92H. 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 446100 801929990100 $406,562.00 Submitted for City Manager's Office Marc A. Ott (8476) Originating Department Head: A. Douglas Rademaker (6157) Additional Information Contact: Jean Petr (8367) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 8/1/2007