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Home My WebLink AboutContract 39505 "'ITY SECRETARY '`ONTRACT NO_ �o — 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 0 C T3 r- E , 2009, 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 a C Tb (3E(L, 2009. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC , an Oklaho a limit rliability company By: By: Clif . Merritt Title: Assistant City Manager Its: Land Manager ATTEST: ^nn;._act Authorization l i MCity SLecrdetarp�_�� 4,, rf APPROVED AS TO FORM AND LEGALITY: By(— Assistant y Assistant City Att rneejy Date: OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX 1 ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, ,iAQ n il) n the undersigned notary public, on this day personally appeared FerWndn eloca , known to me to be the person whose name is subscribed to the foregoing instrument 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_ � 1 day of C�G1 2009. P4otary Public, State of Texas My Commission Expires: r;;m'r"" EVONIADANIELS Commission Number: ' "= MY COMMISSION EXPIRES July 10,2013 STATE OF OKLAHOMA § COUNTY OF OFWVVW § BEFORE ME, 1,a IA*-W l I YVJ I the undersigned notary public, on this day personally appeared Cliff J. Merritt-Land Manager , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged that (s)he has executed the same for the purposes and consideration therein expressed. �p GIVEN under my hand and seal of office this Z* day of 01► , 2009. Ao4taryblic, State of Oklahoma My Commission Expires: 55 Commission Number: 7 s EXHIBIT A 6.805734 ACRES, MORE OR LESS, better described as follows: Lot 1, Block 1, Southside Pump Station, an addition to the City of Fort Worth, Tarrant County, Texas, being part of the W. Wheat Survey, Abstract Number 1645, as described in that certain Plat, recorded in Volume A, at Page 12948, Plat Records, Tarrant County, Texas. SAVE & EXCEPT, Lots 1 and 2, Block 2, Wiesenberger Addition # 3, an addition to the City of Fort Worth, Texas, being part of the W. Wheat Survey, Abstract Number 1645, as described in that certain Plat recorded in Volume 1744, Page 39, Deed records, Tarrant County, Texas. (Southside Pump Station) 3 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/29/2009 DATE: Tuesday, September 29, 2009 REFERENCE NO.: L-14846 LOG NAME: 06SOUTHSIDE PUMP STATION 0062040 SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., in the Amount of $18,906.33 for Natural Gas Drilling under 6.805 Mineral Acres of City-Owned Properties Known as Southside Pump Station Located at 1800 West Waggoman Street RECOMMENDATION: Approve acceptance of lease agreement with Chesapeake Exploration, L.L.C., in the amount of $18,906.33 for natural gas drilling under 6.805 mineral acres of City-owned properties known as Southside Pump Station located at 1800 West Waggoman Street. DISCUSSION: A Request For Bid Proposals (RFP)for Southside Pump Station (7.205 acres) was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on July 2, 9 and 16, 2009. The following sealed bid for the gas lease of Southside Pump Station (7.205 acres)was received and opened on July 23, 2009. Bidder Lease Bonus/Acreotal Lease Bonus Percent lRoyally Chesapeake Exploration, LLC. $2,778.0 $20,015.49125.00 Percent The total available acreage in the Southside Pump Station is 7.205 acres however the mineral acreage contained in any bid is subject to title review by the bidding company. Upon further title review of the mineral ownership of the property by Chesapeake Exploration, LLC, it was determined that a previous owner of a portion of the property had reserved minerals and the City owned a net mineral interest of 6.805734 acres. Therefore, the total lease bonus will be reduced accordingly to $18,906.33. 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$18,055.55 more or less. The City has established a Minority Women Business Enterprise (M/ BE) 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 shall be deposited according to the Financial Management Policy Statements, which currently direct the bonus and royalty for Water and Sewer assets 50 percent to Water http://apps.cfwnet.org/ecouncil/printmc.asp?id=12361&print true&DocType=Print 9/30/2009 Page 2 of 2 and Sewer Capital Projects Fund, 25 percent to the Fort Worth Permanent Fund and 25 percent to the Utility Street Reconstruction Capital Improvement Projects Fund. The property is located in COUNCIL DISTRICT 9, Mapsco 90G. 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 P245 446100 601149990100 $9,453.17 P245 531260 601149990100 $425.38 P245 446100 601149990300 $4,726.58 P245 531260 601149990300 $212.70 T124 446100 060124099901 $4,726.58 T124 531260 060124099901 $212.70 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. Exhibit 1.pdf (Public) http://apps.cfwnet.org/ecouncil/printmc.asp?id=12361&print=true&DocType=Print 9/30/2009 a- ' 'eel ri �,.,, i � �. ]�,.•-? J 4= ' Vit•• '� � 'd ,rF � _ { -,p �r - -• � �. 94 T7 20 p I L i w 1 —54 af 1 11 � 11 :11 � + • --• • •