HomeMy WebLinkAboutContract 43038 CITY SECRETARY
CONTRACT N0. u?moo
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 , 2012, a Paid Up
Oil and Gas Lease was made and entered into by and between the CVY 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. L4
Executed this the L day of 12012.
LESSOR: ao4 0 'Q�� ATTEST:
Ar CITY OF FORT WORTH p7(,00000000000
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Fernando Costa 0� *00 00g ity Secr ,?'��
Assistant City Manager �a 000000000
APPROVED AS TO FORM AND
LEGALITY:
Contract uthoriaatioi - I
/ Assist City Attorne
Date
OFFICIAL RECORD
CITY SECRETARY
3-28-12 P02:34 IN FT. 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2012.
[SES
Notary Public in and for,the �'"�f� -; LINDA M.HIRP UNGER
i: MY COMMISSION EXPIRES
State of Texas q; FebaM 2,2014
My Commission Expires:
E12 -2, LZP I I l Print Name of Notary Public Here
UnGla` 6� 4trv- lIxyy
LESSEE:
CHESAPEAKE EXPLORATION, LLC
an Oklahoma limited liability company
V. V4244�
David G. Brannen
Land Manager
THE STATE OF OKLAHOMA §
COUNTY OF C-- §
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.
UNDER MY HAND AND SEAL OF OFFICE this If—
GIVEN day of R±n lar 2012.
[ L]
Notary Public in and for the ______________________________ ,
State of b -�4mCi� ____
STA CINDY M.COLLINS
Nohq PublicMy Commission Expires: �'a'7rl� ; State of Oklshorm
A& '4A. C ol.t,dl Print Name of Notary Public Here;C-,mission#1-------_Expires -----6127115',-
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
EXHIBIT A
13.5 acres of land, more or less, being all of the certain 41.1 acres of land, more or less, being a tract of
land out of the G. W. Coonrod Survey, Abstract 291, Tarrant County, Texas, and being more particularly
described by the metes and bounds in the certain deed dated April 5`h, 1944, by and between W. R.
Howard and wife, Birdie Ida Howard, as Grantor(s), and the City of Fort Worth, as Grantee, and recorded
in Volume 1929, Page 39, of the Deed Records of Tarrant County, Texas; SAVE AND EXCEPT 27.6
acres of land, more or less, being all of the Blocks 1, 2, 3, 4, 5, 6, and Hughes Ave, Coleman Ave,
Eastover Ave, and Garrison Ave, out of the Eastover Addition, Second Filing, an addition to the City of
Fort Worth, Tarrant county, Texas, according to the certain plat recorded in Volume 388-G, Page 43, of
the Plat Records of Tarrant County, Texas.
(EASTOVER PARK)
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/24/2012
DATE: Tuesday, January 24, 2012 REFERENCE NO.: L-15309
LOG NAME: 062050 EASTOVER PARK
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, LLC, in the Amount of$47,250.00
for Natural Gas Drilling Under 13.5 Acres, More or Less, of City-Owned Properties Known as Eastover
Park Located at 5400 Eastland Drive (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a Lease Agreement for natural gas
drilling under 13.5 acres, more or less, of City-owned properties known as Eastover Park located at 5400
Eastland Drive to Chesapeake Exploration, LLC, in the amount of$47,250.00 for a two-year primary term.
DISCUSSION:
On March 10, 2009, (M&C L-14728) City Council authorized the use of Eastover Park for the purpose of
subsurface drilling and extraction of natural gas from an off site location.
On October 26, 2011, the property was advertised for bid in the Fort Worth Star-Telegram with bids due
on November 3, 2011. No bids were received. The property was advertised for bid a second time on
November 9, 2011 with bids due November 17, 2011 and again no bids were received.
On December 12, 2011, Chesapeake Exploration, LLC, requested to lease the Eastover Park property
and a bonus of$3,500.00 per acre for a total bonus of$47,250.00, 25 percent royalty and the City's
standard two-year primary lease term was agreed upon.
Staff evaluated the offer by Chesapeake Exploration, LLC, including the lease bonus rate, royalties paid to
the City and the drilling plan. Chesapeake Exploration, LLC, has leased the majority of the surrounding
area and has a drill site to access the minerals. Timely award and execution of this lease will allow for
inclusion of this property 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 was 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.
Logname: 062050 EASTOVER PARK Page 1 of 2
The property is located in COUNCIL DISTRICT 5, Mapsco 78R.
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.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929933200 $47,250.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
1. M&C EastoverPark.pdf (Public)
Logname: 062050 EASTOVER PARK Page 2 of 2