HomeMy WebLinkAboutContract 40792 CITY SECRETARY
CONTRACT NO... _7 5a
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the _1_ C day of JULY 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 JULY 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC
n Oki ho limited liability company
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By: Fernando Costa By: David G. Brannen
Title: Assistant City Manager Itand Manager
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Data -
Date:
09-15-10 P 2:08 IN
09-1 -10 A10: 6 IN
OFFICIAL RECORD
CITY SECRETARY 1 07-20-10 A09:20 IN
FT.WORTH,TX
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Fernando Costa,
Assistant City Manager of the City of Fort Worth, a home-rule municipal corporation of the State of
Texas, known to me to be the person whose name is subscribed to the foregoing instrument and, that he
has executed the same for the purposes and consideration therein expressed.
41
GIVEN UNDER MY HAND AND SEAL OF OFFICE this A??�day of 2010.
[SEAL]
zzn� Ace Notary Public in and forth �'"rrE:ED
State of Texas ;
My Commission Expires:
Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
0MIA §COUNTY OF �JA�t §
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared
David Brannen, Land Manager, on behalf of Chesapeake Exploration, L.L.C., an Oklahoma Limited
Liability Company, known to me to be the person whose name is subscribed to the foregoing instrument
and, that he has executed the same for the purposes and consideration therein ex1prressed.
GIVR MY HAND AND SEAL OF OFFICE this d y of UU 2010.
[SEE
h JTA I -Notary Public in and for the
State of u
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My Co mission Expire =p=EXP.1o/15112 Q=
.r�� � Print Name of Notary Public Here ='�F A�g�\c;.�o�
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OFFICIAL RECORD
CITY SECRETARY'
FT.WORTH,TX
2
Exhibit -A-
7.63337906 acres, more or less, better described in the following fourteen (14) tracts:
1. 0.28696051 acres, more or less, being Lots 11 & 12, Block 119, Polytechnic Heights
Addition to the City of Fort Worth, Tarrant County, Texas, being part of the J. W. Sublet
Survey, Abstract Number 1409, according to plat recorded Volume 63, page 109, Deed
Records of Tarrant County, Texas.
2. 5.22291073 acres, more or less, being Lots 1 through 9, Block 118 and Lots 1 through
10, Block 119, Polytechnic Heights Addition to the City of Fort Worth, Tarrant County,
Texas, being part of the J. W. Sublet Survey, Abstract Number 1409, according to plat
recorded Volume 63, Page 109, Deed Records of Tarrant County, Texas.
AND
Lots 1 through 5 and Lots 8 through 12, Block C, Millett Addition to the City of Fort
Worth, Tarrant County, Texas, being part of the J. Tuell Survey, Abstract Number 1530,
according to plat recorded Volume 204, Page 44, Deed Records of Tarrant County, Texas.
3. 0.20087236 acres, more or less, being Lots S, Block 112, Polytechnic Heights Addition
to the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney
Survey, Abstract Number 1286, according to plat recorded Volume 388-Q, page 291,
Deed Records of Tarrant County, Texas
4. 0.17217631 acres, more or less, being Lot R, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas
5. 0.17217631 acres, more or less, being Lot Q, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County. Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas
6. 0.17217631 acres, more or less, being Lot P, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
7. 0.17217631 acres, more or less, being Lot O, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
8. 0.17217631 acres, more or less, being Lot N, Block 112, Polytechnic Heights Addition to
the City of Fort Worth,Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291,Deed
Records of Tarrant County, Texas.
9. 0.17217631 acres, more or less, being Lot M, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
OFFICIAL RECORD
CITY SECRETARY 3
FT.WORTH,TX
10. 0.17217631 acres, more or less, being Lot L, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
11. 0.17217631 acres, more or less, being Lot K, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
12. 0.20087236 acres, more or less, being Lot A, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
13. 0.17217631 acres, more or less, being Lot B, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
14. 0.17217631 acres, more or less, being Lot C, Block 112, Polytechnic Heights Addition to
the City of Fort Worth, Tarrant County, Texas, being a part of the W. McKinney Survey,
Abstract Number 1286, according to plat recorded Volume 388-Q, page 291, Deed
Records of Tarrant County, Texas.
(Titus Paulsel Park)
OFFICIAL RECORD
CITY SECRETARY
F1 WORTH,TX
4
M&C Review 41s� -ORW Pagel of 2
official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA F4'RTWORTH
COUNCIL ACTION: Approved on 7/13/2010
DATE: 7/13/2010 REFERENCE NO.: L-15011 LOG NAME: 062040 TITUS
PAULSEL PARK
NOW PUBLIC
CODE: L TYPE: CONSENT HEARING:
NO
SUBJECT: Approve Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the
Amount of$22,991.74 for Natural Gas Drilling Under 7.633 Acres More or Less of City-
Owned Properties Known as Titus Paulsel Park Located at 2000 Binkley Street (COUNC
DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural ga
drilling under 7.633 acres more or less of City-owned properties known as Titus Paulsel Park to
Chesapeake Exploration, LLC, for a two-year primary term.
DISCUSSION:
On March 23, 2010, (M&C L-14941)the City Council authorized the conversion of Titus Paulsel Park
for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP)for Titus Paulsel Park was advertised for three consecutive week
in the Fort Worth Star-Telegram, published on April 22, April 29 and May 6, 2010.
The following sealed bid for the gas lease was received and opened on May 13, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Royalty
Chesapeake Exploration, LLC $3,012.00 $22,991.74 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 bein
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 $21,957.11 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. This lease is less than 40 acres therefore no
M/WBE participation goal is required.
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 and/or State grants and
http://apps.cfwnet.org/council_packet/mc-review.asp?ID=l 3712&councildate=7/13/201 0 07/14/2010
M&C Review An► ..lk Page 2 of 2
therefore the mineral revenue is unrestricted. Other revenue received from this lease will be allocate
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 5, Mapsco 78 P.
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.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929966000 $22,991.74 C282 531260 801929966000 $1,034.63
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
MC map l?Upg
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13712&councildate=7/13/2010 07/14/2010