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Home My WebLink AboutContract 42845 CITY SECRETARY CONTRACT NO. 42b45 MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § BE IT REMEMBERED that on the 94.' day of UCM W , 2011, 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. pq®�oIFOP?p 4a� Executed this the_g y of P eCe trb(�V' 92011. a►o° %0 0 -A pyoo-! mi LESSOR: ATTEST: v 0 0�' CITY OF FORT WORTH *% *d 000OOoo °oo '"'/1 4 4y lc�400,d�l 2, - Fernando Costa ilonald Gonzales Assistant City Manager Assistant City Secretary APPROVED AS TO FORM AND LEGALITY: Assista6i City Attorney l�-15Z°(2 Contract authorizatioa 12.16 t1 DateOFFIC RECORD' CITY SECRETARY - :46 IN 12-08-11 PO4:58 INFT. WORTH,TX 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. r,, '/ -01 GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of J� b� 2011. [SEAL] Notary Public in and for the ti "� ANDA M.HIRRUNGER State of Texas ;I MY COMMISSION EXPIRES Febnry Z 2014 My Commission Expire PLb ab I Print Name of Notary Public Here LESSEE: CHESAPEAKE EXPLORATION, LLC an Oklahoma limited liability company &' 440� David G. Brannen Land Manager ;FL THE STATE OF OKLAHOMA § 00"R COUNTY OF &z § 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. Z GIVEN UNDER MY HAND AND SEAL OF OFFICE this a&day of 1201K [SE �»uuu Notary Public in and for the \`��.��`ieY HUM,a'�%,�� State of GLHII � -1 My Commission Expires: = Print Name of Notary Public Here _ #11001263 EXP.02/14/15 _ OFFICIAL RECOR .,F of 0K�-P.�``� CITY SECRETARY FT. WORTH, TX EXHIBIT A 28.511 ACRES OF LAND, MORE OR LESS, BEING ALL OF THAT CERTAIN 29.205 ACRES OF LAND, MORE OR LESS, OUT OF THE A. McLEMORE SURVEY, ABSTRACT 1056, TARRANT COUNTY, TEXAS, BEING MORE PARTICULARY DESCRIBED BY METES AND BOUNDS IN THAT CERTAIN DEED DATED AUGUST 31 ST, 1926, BY AND BETWEEN, JAMES WELCH, JOHN M. WELCH, JAMES B. WELCH, MAMIE A. WELCH, ATHLEEN WELCH, AND MRS. GUS SHAW, FORMERLY KNOWN AS IDA A. WELCH, JOINED BY HER HUSBAND, GUS SHAW, BEING ALL OF THE HEIRS OF MRS. ELLA A. WELCH, WIFE OF JAMES WELCH, AS GRANTOR, AND THE CITY OF FORT WORTH, AS GRANTEE, RECORDED IN VOLUME 938, PAGE 460, OF THE DEED RECORDS OF TARRANT COUNTY, TEXAS; SAVE AND EXCEPT 0.694 ACRES OF LAND CONVEYED TO A.E. WILEMON AND F.O. WILEMAN IN THAT CERTAIN DEED DATED OCTOBER 10TH, 1951 IN VOLUME 2370 PAGE 595, DEED RECORDS OF TARRANT COUNTY, TEXAS. SYLVANIA PARK (HEIDI UNIT) M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FOR TH COUNCIL ACTION: Approved on 12/6/2011 DATE: 12/6/2011 REFERENCE NO.: L-15292 LOG NAME: 062050 SYLVANIA PARK CODE: L TYPE: NON-CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Acceptance of Lease Agreement with Chesapeake Exploration, LLC, in the Amount of$146,100.00 for Natural Gas Drilling Under 29.22 Acres, More or Less, of City- Owned Properties Known as Sylvania Park Located at 3700 East Belknap Street (COUNCIL DISTRICT 4) RECOMMENDATION: It is recommended that the City Council authorize the acceptance of a Lease Agreement for natural gas drilling under 29.22 acres, more or less, of City-owned properties known as Sylvania Park to Chesapeake Exploration, LLC, in the amount of$146,100.00 for a two-year primary term. DISCUSSION: On February 26, 2008, (M&C L-14481)City Council authorized the conversion of Sylvania Park for subsurface drilling and the extraction of natural gas from an off site location. A Request for Bid Proposals (RFP)for Sylvania Park was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on February 12, 2009, February 19, 2009 and February 26, 2009. Bid Opening was scheduled for March 5, 2009, however no bids were received for Sylvania Park. In October 2011, Chesapeake Exploration, LLC, requested to lease Sylvania Park and offered a bonus of$5,000.00 per acre for a total bonus of$146,100.00, 25 percent royalty and the City's standard two-year lease term. The offer by Chesapeake Exploration, LLC, was evaluated by Staff. The lease bonus rate, royalties and other terms meet the City's requirements and are consistent with current market offers. Chesapeake Exploration, LLC, has leased the majority of the surrounding area. Timely award and execution of this lease will allow for inclusion of these properties in the drilling unit currently being formed. 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-17156 approved December 14, 2010)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. Since this park received state or federal grant funds, royalties and other fees received from this gas lease will be allocated 50 percent to the Park Gas Lease Project Fund and 50 percent to the Park System Endowment Gas Lease Fund. The property is located in COUNCIL DISTRICT 4, Mapsco 64N. http://apps.cfwnet.org/council_packet/mc review.asp?ID=16149&councildate=12/6/2011 2/4/2012 M&C Review Page 2 of 2 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 under this agreement. TO Fund/Account/Centers FROM Fund/Account/Centers C282 446100 801929933100 $146,100.00 Submitted for City Manager's Office by. Fernando Costa (6122) Originating Department Head: Randle Harwood (6101) Additional Information Contact: Jean Petr(8367) ATTACHMENTS Sylvania_Park.pdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=16149&councildate=12/6/2011 2/4/2012