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Home My WebLink AboutContract 39784 " 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 the A. day of J ANDA a:< , 204,Q 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—4 day ofJ AN klA QY , 2040. LESSOR: LESSEE: CITY OF FORT WORTH ahoma a CHESAPEAKE EEXPL R taTIO ,liaLL y company ;A; By: By: Cliff . Merritt Title: Assistant City Manager Its: Land a n a g e r 4.p4'OU�� ATTEST: p�S*_ _�O� City Secretary oo 0 d� * 00 00 APPROVED AS TO FORM AND LEGALITY: akr4 rix.oA Assistant Cit A mey Date: ` �f OFFICIAL RECORD CIN SECRETARY �'( -�OJr F . WORTH, TX Contract authorization Date 1 ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned notary public, on this day personally appeared , 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. A.pp GIVEN under my hand and seal of office this day of 1' , 208 otary Public, State of Texas My Commission Expires: Commission Number: " 'r'' '°�'�� NW%=_ EVONIA DANIELS _,. MY COMMISSION EXPIRES July 10,2013 STATE OF OKLAHOMA § COUNTY OF b H*0 MA § BEFORE ME, LA JIL ar l TrR 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. 11 U GIVEN under my hand and seal of office this day of vU 'Ua 24. eAA7, �11Y tan"W"111 " taryy Public, State of Oklahoma 08010055 My Commission Expires: lcnn EXP 10/14— Commission Number: OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX EXHIBIT A 5.372 ACRES, MORE OR LESS, better described in two (2) tracts as follows: Tract 1: A 2.893 acre tract of land, J. Jennings Survey, Abstract Number 851, as described in that certain Warranty Deed, recorded in Volume 2002, at Page 278, described by metes and bounds as follows: BEGINNING at a point in the North line of the J. Jennings Survey, said point being North 88° 22' West 240 feet from the Northeast corner of said Jennings Survey; THENCE South 450 feet to a point; THENCE West 280 feet; THENCE North 450 feet to a point in the North line of the J. Jennings Survey; THENCE South 88° and 22' East 280 feet to the PLACE OF BEGINNING. Tract 2: A 2.479 acre tract of land, J. Jennings Survey, Abstract Number 851, as described in that certain Warranty Deed, recorded in Volume 2829, at Page 308, described by metes and bounds as follows: Being a part of the John Jennings Survey and beginning at the northeast corner of said Jennings survey said point being also the northeast corner of the 33.7 acre tract of land conveyed to the Jefson Building Corporation by L.L. Rector dated October 25, 1954 and recorded in Volume 2787 Page 251, deed records of Tarrant County, Texas; THENCE southerly along the east line of John Jennings survey 450 feet to a point; THENCE westerly 450 feet south of and parallel to the north line of the John Jennings survey 240 feet to a point, said point being the southeast corner of a tract of land conveyed by L.L. Rector to the City of Fort Worth by deed recorded in Volume 2022 Page 278, deed records of Tarrant County, Texas; THENCE northerly 240 feet westerly of and parallel to the east line of the John Jennings survey and along the east line of the above described tract of land 450 feet to the north line of the John Jennings survey, said point also being the northeast corner of the tract of land conveyed by L.L. Rector to the City of Fort Worth; THENCE easterly along the north line of the John Jennings survey 240 feet to the PLACE OF BEGINNING, and containing 2.479 acres of land. (Stephens Park) OFFICIAL RECORD CITY SECRETARY 3 FT. WORTH, TX M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA Foa�H COUNCIL ACTION: Approved on 12/15/2009 DATE: 12/15/2009 REFERENCE NO.: L-14905 LOG NAME: 06STEPHENS PARK 1 CODE: L TYPE: NOW PUBLIC CONSENT HEARING: NO SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., in the Amount of$13,521.32 for Natural Gas Drilling Under 5.372 Acres Known as Stephens Park and Seminary Hill Water Tower Located at 2701 West Gambrel[ Street RECOMMENDATION: It is recommended that the City Council approve the acceptance of a Lease Agreement for natural gas drilling under 5.372 acres, more or less, of City-owned properties known as Stephens Park and Seminary Hill Water Tower to Chesapeake Exploration, L.L.C., for a two year primary term. DISCUSSION: On July 28, 2009, (M&C L-14815) the City Council authorized the conversion of Stephens Park for subsurface drilling and the extraction of natural gas from an off site location. A Request for Proposals (RFP) for Stephens Park was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on July 30, 2009, August 6, 2009, and August 13, 2009. The following sealed bid for the gas lease was received and opened on August 20, 2009. Bidder Lease Bonus/Acre Total Luse Bonus Royally Chesapeake Exploration, L.L.C. $2,517.00 $13,521.32 25 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 being formed. In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract No. 37980, the net transfer to the City is estimated to be $12,912.87, 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 50 percent to the Water Department and 50 percent to the Parks Department. On June 23, 1948, and December 22, 1954, (Fort Worth City Council Minutes) the City Council acquired two tracts of land for use of the Water Department for the Seminary Hill Water Tower. Subsequent to that time, a portion of the property came to be known as Stephens Park. On November 4, 2003, (C-19842) and on July 20, 2004, (C-20161) the City Council approved playground and other park improvements to several parks including Stephens Park using grant funds from the United States Department of Interior and the Texas Parks and Wildlife Department. Use of grant funds at Stephens Park causes future revenue derived from Stephens Park to remain within the park system. The United States Department of Interior and the Texas Parks and Wildlife Department, royalties and other fees received from this gas well lease or license agreements associated with this park, shall be allocated 50 percent to the Citywide Park Capital Improvement Projects Fund and 50 percent to the Fort Worth Permanent Fund — Park System Endowment Fund. Revenues received from the portion of the property (2.686 acres) allocated http://apps.cfwnet.org/council_packet/mc review.asp?ID=12875&councildate=12/15/2009 12/15/2009 M&C Review Page 2 of 2 ".4. 7-4& to the Water Department will be distributed according to the Financial Management Policy Statements, which currently direct the bonus and royalty for water and sewer assets 50 percent to Water 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. According to the current Financial Management Policy Statements, (M&C G-16632, approved July 21, 2009) 100 percent of the bonus (2.686 acres) will remain in the Parks and Community Services Capital Improvements Fund to be used for capital improvements at this park. Since this park received funds from the United States Department of Interior and the Texas Parks and Wildlife Department, royalties and other fees received from this gas well lease or license agreements associated with this park, shall be allocated 50 percent to the Citywide Park Capital Improvement Projects Fund and 50 percent to the Fort Worth Permanent Fund — Park System Endowment Fund. Revenues received from the portion of the property (2.686 acres) allocated to the Water Department will be distributed according to the Financial Management Policy Statements, which currently direct the bonus and royalty for Water and Sewer assets 50 percent to Water 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 3, Mapsco 90K. 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 801929930600 $6,760.66 C282 531260 801929930600 $304.22 P245 446100 601149990100 $3,380.33 P245 531260 60114990100 $152.11 P245 446100 601149990300 $1,690.16 P245 531260 601149990300 $76.06 T124 446100 060124099901 $1,690.17 T124 531260 060124099901 $76.06 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Susan Alanis (8180) Additional Information Contact: Jean Petr (8367) ATTACHMENTS Exhibit 1.pdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=12875&councildate=12/15/2009 12/15/2009 jJ At � at �• ��,` :Y� �� ;:.°Y�I yr � - •"�,>�.*EAG " �� `:�a a f - 14 tF, EApprove Acceptance of Lease Agreement as •w. i yap$ with Chesapeake4 i. 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