HomeMy WebLinkAboutContract 43503 CITY SECROARY
TRACT 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 AIX day of /�� , 2012, a Paid Up
Oil and Gas Lease was made and entered into by and between th 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 five (5) 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. 4004na����
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Executed this the�day of , 2012. ,q.�°�° oo� d
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LESSOR: ATTEST: �v$ g�{�
CITY OF FORT WORTH P
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Fernando Costa City Secretary
Assistant City Manager
APPROVED AS TO FORM AND
LEGALITY:
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Assistant Oity Attorne
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Contract Authorization
Date OFFICIAL RECORD
CITY SECRETARY
03-16-111 PO4:51 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 /-I- day of 2012.
[SEAL
Notary Public in and for theEE7:,i
EVONW DANIEI SState Of TeXaSMY COMMISSION EXPIRES.?° AdY 10�2013
My Commission Expires:
Z !Q- Print Name of Notary Public Here
LESSEE:
CHESAPEAKE EXPLORATION, LLC
an Oklahoma limited liability company
V 4'z��
David G. Brannen
Land Manager
THE STATE OF OKLAHOMA §
COUNTY OF �G, y. §
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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this A day of 2012.
[SEA�.� jLG�' Notary Public in and for the a�+►'°"_"aos �,,
State of 6K1C.l &0'-C' ~ ray
x 72007039
My Com ssion Expires: "Z?-1
Print Name of Notary Public HereoK��
Exhibit A
BEING 144.446 acres land, more or less, situated in the Heirs of Hays Covington
Survey Abstract Number 256 and the Edward Wilburn Survey Abstract Number 1679, in
the City of Fort Worth, Tarrant County, Texas, being a portion of that certain tract of
land as described in deed to the City of Fort Worth as recorded in Instrument Number
D211206523, that certain tract of land as described in deed as Parcel No. 3 as recorded
in Volume 1492, Page 343, a portion of Lot 16 thru Lot 21, Block 6 Alta Mere Addition,
an addition to the City of Fort Worth as recorded in Volume 1037, Page 413 of the
Deed Records of Tarrant County, Texas, those certain tracts of land as shown in Plat as
Lot 5 thru Lot 7 of Block 16 of Z. Boaz Country Place Addition, an addition to the City of
Fort Worth as recorded Volume 204, Page 93 of the Plat Records of Tarrant County,
Texas, and being more particularly described by metes and bounds as follows:
BEGINNING in the centerline intersection of Calmont Avenue (variable right-of-way width)
and Lackland Road (60 foot right-of-way width) (NAD27 grid northing 388,309.15 and easting
2,020,203.74), from which a found five-eighths inch steel rebar (controlling monument) bears N
14° 04' 21" E , a distance of 346.29 feet in the intersection of the easterly right-of-way line of
said Lackland Avenue and the southerly right-of-way line of Interstate Highway 30 (variable
right-of-way width), for the northwesterly corner of that certain tract of land as described in deed
to Lindsay Bradford Holland as recorded in Volume 14908, Page 222 of said Deed Records;
1. THENCE, S 090 06' 00" W, departing the centerline of said Calmont Avenue, along the
centerline of said Lackland Road, a distance of 23.21 feet to a point;
2. THENCE, S 000 27' 51" W, continuing along the centerline of said Lackland Road, a
distance of 3,199.89 feet to a point, from which a found one-half inch steel rebar bears S 450
30' 39" E , a distance of 40.49 feet;
3. THENCE, N 890 32' 09" W, departing the centerline of said Lackland Road, a distance
of 430.00 feet to the northwesterly corner of Lot 8 and the southwesterly corner of Lot 7,
Block 16 of said Z. Boaz Country Place Addition;
4. "THENCE, S 000 27' 33" W, along the westerly line of said Z. Boaz Country Place
Addition, a distance of 1,329.51 feet to a point in the northeasterly right-of-way line of
Camp Bowie West (variable right-of-way width) and the southwesterly corner of that certain
tract of land as described in deed to Dale R. Green and Norma J. Green as recorded in
Volume 14467, Page 138 of said Deed Records, from which a found one-half inch steel
rebar bears S 610 13' 16" E , a distance of 1.95 feet;
5. THENCE, N 820 44' 14" W, along the northeasterly right-of-way line of said Camp
Bowie West, a distance of 998.94 feet to a point;
6. THENCE, N 890 30' 01" W, departing the northeasterly right-of-way line of said Camp
Bowie West, a distance of 57.14 feet to a point in the centerline of the abandoned Irene
Drive (60 foot right-of-way width), from which a found one-half inch steel rebar
(controlling monument ) bears S 120 23' 40" W , a distance of 147.54 feet in the
southwesterly right-of-way line of said Camp Bowie West and the westerly right-of-way
line of existing Irene Drive (variable right-of-way width), for the northeasterly corner of Lot
1, Block 1 Steak and Ale Addition, an addition to the City of Fort Worth as recorded in
Cabinet 388-65, Slide 29 of said Plat Records;
7. THENCE, N 000 29' 59" E, continuing along the centerline of said abandoned Irene
Drive, a distance of 2,352.21 feet to a point in the centerline intersection of said abandoned
Irene Drive and abandoned Slocum Avenue (60 foot right-of-way width);
8. THENCE, N 890 30' 22" W, along the centerline of said abandoned Slocum Avenue, a
distance of 129.93 feet to a point;
9. THENCE, N 130 00' 40" W, departing the centerline of said abandoned Slocum Avenue,
a distance of 30.09 feet to a point in the northerly right-of-way line of said abandoned
Slocum Avenue;
10. THENCE, N 89° 30' 22" W, along the northerly right-of-way line of said abandoned
Slocum Avenue, a distance of 10.70 feet to a point as the southwest corner of said Parcel
No. 3, said point also being in the easterly line of that certain tract of land as shown in Plat
as Lot 1R1 of Block 14A Alta Mere Addition, an addition to the City of Fort Worth as
recorded in Volume 388-103, Page 455 of said Plat Records and the beginning of a curve to
the right;
11. THENCE, Northwestwardly, along said curve to the right and the westerly line of Parcel
No. 3, having a central angle of 12° 34' 18", a radius of 1,538.74 feet, and an arc length of
337.63 feet, the chord bears N 060 05' 30" W, a distance of 336.95 feet to a point in the
easterly line of that certain tract of land as shown in Plat as Lot IRA of Block 14A Alta
Mere Addition, an addition to the City of Fort Worth as recorded in Cabinet B, Slide 3396 of
said Plat Records;
12. THENCE, N 000 11' 39" W, continuing along said westerly line of Parcel No. 3 and the
easterly line of said Lot IRA of Block 14A Alta Mere Addition, a distance of 421.63 feet to
a point in the centerline of abandoned Rosewood Avenue (60 foot right-of-way width), said
point also being in the westerly line of abandoned Railroad right-of-way (variable right-of-
way width) described in deed to Texas & Pacific Railroad as recorded in Volume 1492,
Page 343 of said Deed Records;
13. THENCE, S 890 31' 09" E, departing said westerly line of Parcel No. 3, a distance of
40.62 feet to a point in the centerline of abandoned Texas & Pacific Railroad (right-of-way);
14. THENCE, N 000 00' 20" W, along the centerline of abandoned Texas & Pacific Railroad
(right-of-way), a distance of 394.18 feet to a point;
15. THENCE, S 890 45' 55" E, departing the centerline of Texas & Pacific Railroad (right-
of-way), a distance of 40.76 feet to a point in the easterly line of said abandoned Texas &
Pacific Railroad (right-of-way);
16. THENCE, N 000 11' 39" E, along the easterly line of said abandoned Texas & Pacific
Railroad (right-of-way), a distance of 361.79 feet to a point in the southerly line of that
certain land as shown in Plat as Lot 6AR2 of Block 5 Alta Mere Addition, an addition to the
City of Fort Worth as recorded Cabinet B, Slide 2751 of said Plat Records;
17. THENCE, S 890 31' 00" E, a distance of 112.62 feet to a point;
18. THENCE, N 000 29' 59" E, a distance of 488.94 feet to a point in the centerline of said
Calmont Avenue;
19. THENCE, N 880 29' 06" E, along the centerline of said Calmont Avenue, a distance of
1,480.58 feet to the POINT OF BEGINNING and containing 6,292,075 square feet or
144.446 acres of land, more or less.
Basis of Bearing is the Texas State Plane Coordinate System, Texas North Central Zone
4202, North American Datum 1927 (NAD27).
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/14/2012
DATE: Tuesday, August 14, 2012 REFERENCE NO.: L-15424
LOG NAME: 06N Z BOAZ LEASE
SUBJECT:
Authorize Lease Agreement with Chesapeake Exploration, LLC, in the Amount of$110,595.50 for Natural
Gas Drilling Under 140 Acres of North Z Boaz Park and Golf Course Located at 3200 Lackland Road
(COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council authorize a lease Agreement for natural gas drilling under 140
more or less of City-owned properties known as North Z Boaz Park and Golf Course with Chesapeake
Exploration, LLC, for a five-year primary term.
DISCUSSION:
On September 27, 2011, (M&C L-15258) the City Council approved City Secretary Contract No. 42203
with the Heirs of Z Boaz Park south and North Z Boaz Park and Golf Course for release of deed reverter
terms in exchange for the heirs retaining a 40 percent interest in the mineral estate. As part of the Mineral
Agreement for release of the deed reverter terms, the City agreed to use 17 percent of all royalties, bonus
proceeds and any other sums received by the City in connection with the oil, gas and other minerals for
the upkeep, maintenance and beautification of the properties.
On November 1, 2011, (M&C L-15279) the City Council held a public hearing and authorized use of the
subsurface of North Z Boaz Park and Golf Course for the drilling and extraction of natural gas from an off
site location.
On May 8, 2012, (M&C L-15361) the City Council authorized rejection of the bid from Chesapeake
Exploration, LLC, for natural gas drilling under North Z Boaz Park and Golf Course because the bid failed
to comply with minimum bid requirements, and authorized Staff to bid or negotiate a lease at a future time.
Staff subsequently negotiated the following lease terms with Chesapeake Exploration, LLC:
. $1,250.00 per acre bonus ($110,595.50 total bonus);
. Twenty-five percent royalty; and
• Five year lease term with option to renew for three years at the initial bonus per acre price.
North Z Boaz Park and Golf Course is estimated to contain a total of 140 acres, more or less, of which the
City retains a 60 percent mineral interest or 84 net mineral acres. Because there are streets surrounding
North Z Boaz Park and Golf Course and mineral ownership is calculated to the center of the street, the net
mineral acreage for leasing this property will be 88.476 net mineral acres.
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
Logname: 06N Z BOAZ LEASE Page 1 of 2
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. The negotiated lease requires Chesapeake to meet or exceed the
three percent M/WBE goal established by the City of Fort Worth.
Revenues received from this lease will be deposited according to the Mineral Agreement with the heirs
(CSO No. 42203) which directs 17 percent of all gas related revenues be dedicated to North Z Boaz Park
and Golf Course and per the current Financial Management Policy Statements (M&C G-17470 approved
December 13, 2011) which direct bonus, royalty and other natural gas related fee revenue derived from
designated golf course property to be allocated in the following manner: i. Fifty percent of the revenue will
be used to retire existing debt in the Municipal Golf Fund and upon retirement of all debt, the revenue will
be applied to the reserve fund balance until such time that the required fund policy reserve of 10 percent
in excess of the annual operating budget is achieved; and ii. Fifty percent of the revenue will be used to
cash fund golf capital improvement projects.
The property is located in COUNCIL DISTRICT 3, Mapsco 74J and 74N.
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
P243 446100 801929968700 $18,801.24
P243 446100 801929990100 $45,897.13
D102 446100 0132000 $45,897.13
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 ZBOAZ 07-27-2012.pdf (Public)
Logname: 06N Z BOAZ LEASE Page 2 of 2