HomeMy WebLinkAboutContract 44576 CITY SECRETARY
CONTRACT N0. qLv
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 , 2013, a Paid Up
Oil and Gas Lease was made and entered in o by and between the ITY OF FORT WORTH, a
home rule municipal corporation of the State of Texas, 1 00 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 theARday of , 2013.
LESSOR: ATTEST:
CITY OF FORT WORTH ►►„�� °o
Fernando Costa °o�ooa0000°a-lcaPiScret
Assistant City Manager 00
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APPROVED AS TO FORM AND
LEGALITY:
AssistanCity Attorney
OFFICIAL RECORD l�e
CITY SECRETARY contract lduthoriaatioa RECEIVED MAY 14 2053
FT. WORTH, TX ILI11
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Date 11
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 lb day of 2013.
[SEA
Notary Public in and for the •
EVONIA DANIELS
State of Texas MY CQMMISSION EXPIRES
•••'.�a,�:•'' J*10,2013
My Commission Expires:
7—/D L3 Print Name of Notary Public Here
LESSEE:
CHESAPEAKE EXPLORATION, LLC
an Oklahoma limited liab' ity company
Clifford J. M rritt JVG�
Vice President—Land, Southern Division !?�
THE STATE OF OKLAHOMA §
COUNTY OF
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared
Clifford J. Merritt, Vice President — Land, Southern Division, 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 2t day of Mil , 2013.
VC�r���o[ary Public in and for the ap ,
State of 0K14,GtP*L-_�- ~
•12007= a
.011pl �
My Commission Expires:—7—Z-1'1(P ly
G CAh� Print Name of Notary Public Here °;t
Exhibit A
15.45 acres, more or less, being a tract of land situated in the Isaac Carodine A-357 Survey,
Tarrant County, Texas, being that same tract of land as described in that certain Warranty Deed
with Vendor's lien dated April 15, 1948 from R.K. Faubus and wife, Ann Faubus to The City of
Fort Worth, a Municipal Corporation as recorded in Volume 1994 Page 599, Deed Records,
Tarrant County, Texas.
HANDLEY PARK
(LANCASTER UNIT)
M&C Review Page ] of 2
Official site of the City of Fort`Noith, rt%xas
CITY COUNCIL AGENDA ° T ° li
COUNCIL ACTION: Approved on 4/2/2013
DATE: 4/2/2013 REFERENCE G-17849 LOG NAME: 062050HANDLEYPARK
NO..
NOW PUBLIC
CODE: G TYPE: CONSENT HEARING: NO
SUBJECT: Authorize Execution of a Lease Agreement with Chesapeake Exploration, LLC, for Natural
Gas Drilling Under 15.45 Acres, More or Less, of City-Owned Properties Known as
Handley Park Located at 6201 Beaty Street (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council authorize execution of a lease Agreement for natural gas
drilling under 15.45 acres more or less of City-owned properties known as Handley Park to
Chesapeake Exploration, LLC, for a two-year primary term.
DISCUSSION:
On July 10, 2012, (M&C L-15396) the City Council conducted a Public Hearing and authorized
subsurface drilling and extraction of natural gas at Handley Park from an off-site location.
The location of the park was outside the current drilling unit. However, Chesapeake Exploration,
LLC, has offered to include the property within the drilling unit based on timely leasing. Staff
negotiated the terms of this lease due to the imminent drilling schedule which did not allow sufficient
time to advertise for bids as standard procedure. Further, due to the size and location of the property
it is unlikely that another gas company would bid on this property.
The lease with Chesapeake Exploration, LLC, will include the following terms:
$2,000.00 per acre bonus ($30,900.00 Total Bonus)
25 percent royalty
Two-year primary term
The City's standard lease will be revised for this property to include a 365 day continuous drilling
provision instead of the 120 day continuous drilling requirement.
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 property is less than 40 acres. Therefore,
no M/WBE goal is required.
Revenues received from this lease will be deposited according to the current Financial Management
Policy Statements (M&C G-17551 approved March 20, 2012) which direct 100 percent of the bonus
to the Park Gas Lease Project 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 5, Mapsco 79H and 80E.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18248&councildate=4/2/2013 6/27/2013
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 801929933700 $30,900.00
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
Handley Park Map for M&C.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18248&councildate=4/2/2013 6/27/2013