HomeMy WebLinkAboutContract 40805 CITY SECRETARY
MEMORANDUM OF OIL AND GAS LEASECONTRACT ISG.
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the day of^� y L �f , 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�Qday of V L , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC
an Oklaho a limited liability company
By: Fernando Costa By: David G. Brannen
Title: Assistant City Manager Its: Manager
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09-2� CITY SECRETARY
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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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2010.
[SEAL
'tNotary Public in and for the UNDAM.HIRRUNOER
,State of Texas '; MY COMMISSION EXPIRES
February 2,2014
My Commission Expires:
Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
COUNTY OF
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 expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this d of (Wo 2010.
[SEAL]
hl�� � I Notary Public in and for the
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OFFICIAL RECORD
CITY SECRETARY
FORT WORTH, TX
Exhibit "A'"
29.69 acres, more or less, as better described in the following tracts:
Tract 1
Being 12.806 acres of land out of the J. W. Oxford Survey, Abstract Number 1201, the T. O.
Moody Survey, Abstract Number 1069, and the Abraham Stallions Survey, Abstract Number
1396, Tarrant County, Texas, said 12.806 acres of land being all of that certain Tract A, Block
30, Phase I, Westpoint, an addition to the City of Fort Worth, Tarrant County, Texas, as recorded
in Volume 388-110, Pages 11 through 13, Tarrant County Plat Records; said 12.806 acres of land
being more particularly described by metes and bounds as follows:
BEGINNING at the Northeast corner of said Tract A, Block 30, said corner being the
intersection of the South right-of-way line of Farmers Branch ( a 50-foot public street) and the
West right-of-way line of Westpoint Boulevard ( a 120-foot public street);
THENCE South 00 deg 21 min 33 sec West along the West right-of-way line of said Westpoint
Boulevard 163.37 feet to the beginning of a curve to the right whose centerpoint bears North 89
deg 38 min 27 sec West, 3,106.16 feet;
THENCE along said curve to the right in a Southwesterly direction and continuing along said
West right-of-way line of Westpoint Boulevard through a central angle of 02 deg 29 min 16 sec a
distance of 134.95 feet to the Southeast corner of said Tract A, Block 30, said corner also being
the intersection of said West right-of-way line with the North right-of-way line of Panay Way
Drive (a 50-foot public Street);
THENCE N 89 deg 23 min West along said North right-of-way line 268.24 feet to the beginning
of a curve to the left whose centerpoint bears South 00 deg 37 min West 925.0 feet;
THENCE along said curve to the left in a Southwesterly direction and continuing along said
North right-of-way line through a central angle of 40 deg 01 min 00 sec a distance of 646.04 feet
to the end of said curve;
THENCE South 50 deg 36 min West continuing along said North right-of-way line a distance of
22.35 feet to the intersection of the North right-of-way line of said Panay Way Drive and the
North right-of-way of Peppertree Lane (a 50-foot public street) said point being the beginning of
a non-tangent curve to the left whose radius is 525.0 feet and whose long chord bears North 49
deg 05 min 49 sec West 192.61 feet;
THENCE along said curve to the left in a Northwesterly direction along the North line of said
Peppertree Lane through a central angle of 21 deg 08 min 23 sec a distance 193.70 feet to the end
of said curve;
THENCE North 50 deg 40min West continuing along the North right-of-way line of Peppertree
Lane a distance of 294.9 feet to the beginning of a curve to the left whose centerpoint bears
South 30 deg 20 min West 575.0 feet;
THENCE along said curve to the left in a Southwesterly direction and continuing along said
North right-of-way line of said Peppertree Lane through a central angle of 67 deg 55 min 00 sec
a distance of 681.59 feet to the end of said curve;
THENCE South 55 deg 25 min West Continuing along the North right-of-way line of said
Peppertree Lane 262.98 feet to a point;
THENCE North 02 deg 19 min 31 sec West 171.84 feet to a point;
THENCE North 50 deg 22 min 16 sec East 166.19 feet to a point;
OFFICIAL RECORD
3 CITY SECRETARY
FORT WORTH, TX
THENCE North 66 deg 35 min 43 sec East 146.01 feet to a point;
THENCE North 74 deg 16 min 45 sec East 140.25 feet to a point;
THENCE North 79 deg 09 min East 122.18 feet to a point;
THENCE East 122.0 feet to a point;
THENCE North 05 deg 29 min East 158.49 feet to a point in the South right-of-way line of
Farmers Branch, said point being the beginning of a non-tangent curve to the right whose radius
is 675.0 feet and whose long chord bears South 75 deg 20 min 13 sec East 56.22 feet;
THENCE along said non-tangent curve to the right in a Southeasterly direction with the South
right-of-way line of Farmers Branch through a central angle of 04 deg 46 min 26 sec a distance
of 56.24 feet to the end of said curve;
THENCE South 72 deg 57 min East 98.86 feet to the beginning of a curve to the right whose
centerpoint bears South 17 deg 03 min West 1,375.0 feet;
THENCE along said curve to the right in a Southeasterly direction and continuing along the
South line of Farmers Branch through a central angle of 10 deg 08 min 00 sec a distance of
243.18 feet to the end of said curve;
THENCE South 62 deg 49 min East continuing along the South line of said Farmers Branch
110.68 feet to the beginning of a curve to the left whose centerpoint bears North 27 deg 11 min
East 300.0 feet;
THENCE along said curve to the left in a Northeasterly direction through a central angle of 42
deg 29 min 00 sec a distance of 222.44 feet to the end of said curve;
THENCE North 74 deg 42 min East continuing along the South line of said Farmers Branch
190.24 feet to the beginning of a curve to the right whose centerpoint bears South 15 deg 18 min
East 1, 375.0 feet ;
THENCE along said curve to the right in an Easterly direction and continuing along the South
line of said Farmers Branch through a central of 15 deg 18 min 00 sec a distance of 367.17 feet
to the end of said curve;
THENCE East continuing along the South line of said Farmers Branch 264.9 feet to the POINT
OF BEGINNING and containing 12.806 acres of land.
Tract 2
The 13.122 acre Lot marked as "PARK" and the 3.762 acre Lot marked as "PARK", Westpoint
Addition, Phase 2, Section 1, an addition to the City of Fort Worth, Tarrant County, Texas, being
part of the T. O. Moody Survey, Abstract Number 1069 and part of the Abraham Stallions
Survey, Abstract Number 1396, as described by that certain Plat recorded in Volume 388-123,
Page 67,Plat Records,Tarrant County, Texas, and containing 16.884 acres of land.
(George Markos Park)
4
M&C Review Pagel of 2
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Official site of the City of Fort Worth,Texas
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CITY COUNCIL AGENDA FooRTHs
COUNCIL ACTION: Approved on 7/13/2010
DATE: 7/13/2010 REFERENCE NO.: L-15012 LOG NAME: 06GEORGE MARK(
PARK
CODE: L TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Approve the Acceptance of Lease Agreement with Chesapeake Exploration, LLC, in the
Amount of$89,426.28 for Natural Gas Drilling Under 29.69 Acres More or Less of City-
Owned Properties Known as George Markos Park Located at 400 Academy
Boulevard (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural ga
drilling under 29.69 acres more or less of City-owned properties known as George Markos Park to
Chesapeake Exploration, LLC, for a two-year primary term.
DISCUSSION:
On March 23, 2010, (M&C L-14942)the City Council authorized the conversion of George Markos
Park for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP)for George Markos Park was advertised for three consecutive
weeks in the Fort Worth Star-Te%gram, 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
Royally
Chesapeake Exploration, LLC $3,012.00 $89,426.28 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 $85,402.10 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=13665&councildate=7/13/2010 07/14/2010
M&C Review 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 7, Mapsco 58 X and Y and 72 B and C.
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 to the City.
TO Fund/Account/Centers FROM F u nd/Accou nt/C enters
C282 446100 801929965800 $89,426.28 C282 531260 801929965800 $4,024.18
Submitted for City Manager's Office l�. Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
M&C map.opa
http://apps.cfwnet.org/council_packet/mc review.asp?ID=13665&councildate=7/13/2010 07/14/2010