HomeMy WebLinkAboutContract 40807 CITY SECRETARY
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 theday of �] U L`�' , 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 , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC
/ an O 7limited liability ompany
By: Fernando Costa By: David G. Brannen
Title: Assistant City Manager Its: Land Manager
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Date: �' � Date
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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]
Notary Public in and for the tiK+"' ,, UNDAM.HI WNOER
State of Texas = MY COMMISSION EXPIRES
Febuq 2,2014
My Commission Expires:
Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
COUNTY OF L §
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 ex ressed.
HAND AND SE
GIVEN UNDER MY HA.,., ....L SEAL OF OFFICE this day of , 2010.
[SEAL] „G
vREN
WO—Notary Public in and for the
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State of =n ExP.1w15r1z Q
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IC,,o,um,ission E res: .
Print Name of Notary Public Here
OFFICIAL RECORD
CITN" SECRETARY
FORT WORTH, T.'.'-”
Exhibit"A"
10.4 acres of land, more or less, better described in the following two (2)tracts of land:
Tract 1:
Being 9.44 acres of land, more or less, out of the T.O. Moody Survey, Abstract No. 1069, and
the P. Caldwell Survey, Abstract No. 365, Tarrant County, Texas and being a portion of the
203.15 acre tract of land conveyed to West/Loop 820 Partners by deed recorded in Volume
12927, Page 38, Deed Records, Tarrant County, Texas, said 9.44 acres being more particularly
described by metes and bounds as follows:
BEGINNING at a 5/8" iron pin set at the northwest corner of the tract of land as described to
KAYCO, Inc., in Volume 9157, Page 2182, Deed Records, Tarrant County, Texas, said point
being a point in the east right-of-way line of Academy Boulevard (120' public row) said point
being the point of curvature of a non-tangent curve to left having a radius of 3226.98 feet, a
central angle of 03 degrees, 17 minutes, 55 seconds, a chord length of 185.76 feet and a chord
bearing of North 02 degrees, 00 minutes, 11 seconds East;
THENCE along said curve to left a distance of 185.79 feet to a 5/8" iron pin;
THENCE North 00 degrees, 21 minutes, 05 seconds East, and with said right-of-way line, a
distance of 24.58 feet to a 5/8" iron pin set, said point being the southwest corner of Lot 1, Block
1, Cornerstone Addition, an addition to the City of Fort Worth, as recorded in Cabinet B, Slide
1586, Plat Records, Tarrant County;
THENCE South 89 degrees, 40 minutes, 28 seconds East and with the south line of said Lot 1, a
distance of 850.00 feet to a 5/8" iron pin set at the southeast corner of Lot 1;
THENCE North 00 degrees, 21 minutes, 05 seconds East, and with the east line of said Lot 1, a
distance of 350.00 feet to a 1/2" iron pin set at the northeast corner of Lot 1;
THENCE South 89 degrees, 40 minutes, 28 seconds East, 100.00 feet to a 5/8"iron pin set;
THENCE South 00 degrees, 19 minutes, 32 seconds East, 280.00 feet to a 5/8" iron pin set;
THENCE South 89 degrees, 40 minutes, 28 seconds East, 648.25 feet to a 5/8" iron pin set, said
point also being the point of curvature of a tangent curve to the right with a radius of 175.00 feet,
a central angle of 18 degrees, 01 minutes, 17 seconds, a chord length of 48.77 feet and a chord
bearing of South 81 degrees, 39 minutes, 50 seconds East;
THENCE along said curve to the right a distance of 48.93 feet to a 5/8" iron pin set, said point
also being the point of curvature of a non-tangent curve to the left with a radius of 1630.00 feet,
a central angle of 02 degrees, 35 minutes, 43 seconds, a chord length of 73.83 feet and a chord
bearing of South 23 degrees,06 minutes, 02 seconds East;
THENCE along said curve to the left a distance of 73.84 feet to a 5/8" iron pin set, said point
being a point in the north line of a certain tract of land described to Joseph P. Delaney as
recorded in Volume 13445, Page 203, Deed Records, Tarrant County;
THENCE North 89 degrees, 34 minutes, 57 seconds West, and with said north line, 49.97 feet to
a 5/8" iron pin set in the northwest corner of said Joseph P. Delaney tract;
THENCE South 05 degrees, 51 minutes, 07 seconds West, and with the west line of said Joseph
P. Delaney tract, 206.94 feet to a 1/2" iron pin found in the north line of the aforementioned tract
of land to KAYCO, Inc.;
THENCE North 89 degrees, 39 minutes, 21 seconds West, with said north line, 1553.35 feet to
the POINT OF BEGINNING, and containing 411,383.91 square feet or 9.44 acres, more or less.
WFICIAL �A i.4
3 CITY SECRETA
41=ORT WORTH
Tract 2:
0.96 acres, more or less, being Lot 27, Block 1, Willow Wood Addition, an addition to the City
of Fort Worth, Tarrant County, Texas, according to the plat recorded in Cabinet A, Slide 8949,
Deed Records of Tarrant County, Texas.
(Settlement Plaza Park)
OFFICIAL HtGORD
CITY SECRETARY
FORT WORTH, TX
4
M&C Review �-. Pagel of 2
official site of the city of Fort Worth,Texas
CITY COUNCIL AGENDA FQRTWOR H
COUNCIL ACTION: Approved on 7/13/2010
DATE: 7/13/2010 REFERENCE L-15013 LOG NAME: 06SETTLEMENT PARK
NO.: PLAZA
CODE: L TYPE: NOW PUBLIC CONSENT HEARING:
NO
SUBJECT: Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the
Amount of$31,324.80 for Natural Gas Drilling Under 10.40 Acres More or Less of City-
Owned Properties Known as Settlement Plaza Park Located at 9745 Francesca
Drive (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural ga
drilling under 10.40 acres more or less of City-owned properties known as Settlement Plaza 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 Settlement Plaza
Park for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP)for Settlement Plaza Park was advertised for three consecutive
weeks 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 $31,324.80 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 bidders 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 $29,915.18 more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of thre(
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=13663&councildate-7/13/2010 07/14/2010
M&C Review AML AM*. 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 Z and 72 C and D.
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 Fund/Account/Centers
C282 446100 801929965900 $31,324.80 C282 531260 801929965900 $1,409.62
Submitted for City Manager's Office by- Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
M&_C_map.jpg
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13663&councildate=7/13/2010 07/14/2010