HomeMy WebLinkAboutContract 37611-A1 s
CITY SECRETLY # ,
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INSTRUMENT B FOR RECORD� B UB L10 RECORDS:YOUR
S OCTAL�Tr NUMB ERMISIC2 S E MW ER,
AMENDMENT AND EXTEKSIQN OF 011-a,GAS AND MINERAL LEASE
L 0570-210 Elect<+ai1 Hy Hew'd
STATE OF TEAS § Ohesapeako ope;atin",lea
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
WHEREAS,CM OF FORT WORTH,a horse rule municipal corporation of the state of '
Texas,whose address is 1000 Throckmorton Street,Fort Worth,Texas 76102("Lessoe)executed
that certain Oil, Gas and Mineral Ise("the Lease) September 15,2008, and of betive
September 15,2008 unto CHESAPEAKE EXPLORATION,LLC,an Oklahoma limited liability
company("Lessee"),which is recorded as Instrument#D208377273 of the Official Public Records
of Tanant County,Texas,covering lands more specifically described therein;and,
NVHEREAS,Total E&P USA, Inc., ("rots]") whose address is 1201 Louisiana Street,
Suite 1800, Houston, Texas, 77402, acquired an undivided, hventy-five percent (25%) of
Chesapeake's working ingest in the aforementioned Lease;
WHEREAS,Lessor and Lessee now desire to amend the Lease and extend the primary term
of the Lease by an additional ono(1)year as hereinafter set forth.
NOW,THEREFORE,for good and valuable consideration in hand paid to Lessor by Lessee,
the receipt and sufficiency of which is hereby acknowledged,Lessor does hereby amend the Lcasa
to read as follows:
"The pri mary tern shall extend to September 15,2411,and for as long thereafter as oi),
Ps or other minerals covered hereby are producing in paying quantities from the leased
premises,or from land pooled therewith,or the Lease is otherwise maintained in effect
pursuant to the provisions her*W
It is understood and agreed by the parties hereto that the provisions hereof shall supersede
any provisions to the cont7rary in the Lease. For adequate consideration,Lessor does hereby adopt,
ratify and confirm the Lease,as amended hereby,and-does hereby stipulate that the Lease remains
in full force and effect. afar as is necessary,Lessor does hereby lease,let,and demise to Lessee
the lands covered by the Lease, pursuant to the terns and provisions of the Lease, as of the
Effective Date set forth heroin.
The terms and provisions hereof shall be binding upon the parties hereto, their respective
heirs,legatees,devisees,personal representatives,successors and assigns.
IN WrrNESS WHEREOF, this instrument is hereby made effective as of tha 150' day of
September,2008,regardless of the actual date of execution and acknowledgment by any or all of
the parries constituting the Lessor herein.
LESS •
C1't'Y OF PORT'WURTH Contract Author i anion
�01 Tit v
By:. Date
Aasistant Ctry Manager ,� �POT
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ATTEST: X�
city Secretary
• 2010, VIP: .0000000 00000 page I 2
TARRANT. Doc. .�p��93��4,�,�1'11�91 ..�.�.
1
APPROVED AS TO PDRM AND UGALITY:
By:
Assi0ml City Att
Date:
L
I
CHESAPEAKE EE.PLaRA 10N,L.L.C.
an Oklahoma Jhmted l;sbili mpany
Hy:
Henry J. Seni ident--
Land and Lega! Coin
Total E&P USA,Jne,
By: �-
3varrta: Rio Bonn In
INN PrwIdent,Buatrieaa art Shy
ACKNOWLEDGEMENT
THH STATE OF TEXAS �
CDI.JNTY OFT ARRANT
insWount 8s sc wledged before me on this flee aLk day o f 20 10 by
myMm $ otary Publio,State of Tee
i4m2m
STATE OF OKLAHOMA
COUNTY OF OKLAHOMA �
this ins ummt was acknowledged Wore me on WIIE5n day of 20 14,by Hmvy J.
Hood,as Senior Vice Pmldent-Land and Legal&Geneml Counsel of Chesapeake ExpkNadon,L L.0 on
behalf of oaf d linuked liability aor%"% VV
IOW N P/F ffil
1
My Commission Numbed; 3'3
My Commission Expur-4 t .;C
f �
chess'l.;1"t. ills.Inc.
THE STATE OF TEXAS Oklahunsa Ca),10K 73154
COUNTY OF g
a inat�vment w ac wkdg d ba do this da of 2010,by
to- IUA +�- ae ,OA4 of Total E&P
5A,Inc.,on behal f of said corporation.
,,.�.st�.+srr�✓..Grr r�r
JOY W PHILLIPS
*1JOYARY PUS sTArd Qf TS 14i t4 8 Te
1iY PUS aM A1ltEs
auLY 31,201
1112912010, v�P: .aovo0oa�aoao Pale 2 of 2
TARRANT, Doc: .000293094 ,
M&C Review Pagel of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FoRTWORTH
COUNCIL ACTION: Approved on 5/20/2008
DATE: 5/20/2008 REFERENCE NO.: L-14559 LOG NAME: 30RODEOPARK
CODE: L TYPE: NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of Lease Agreement with Chesapeake Exploration, L.L.C., with a
Bonus Amount of$257,563.25 and a 25 Percent Royalty for Natural Gas Drilling Under
Rodeo Park, Located at 2605 North Houston Street
RECOMMENDATION:
It is recommended that the City Council authorize execution of a lease agreement with a bonus of
$257,563.35 and a 25 percent royalty for natural gas drilling under 15.354 acres, more or less, of
City-owned properties located at 2605 North Houston Street in Tarrant County, Texas, in what is
known as Rodeo Park to Chesapeake Exploration, L.L.C., for a two-year primary term.
DISCUSSION:
On January 15, 2008, (M&C L-14461) Fort Worth City Council authorized the conversion of dedicated
parkland known as Rodeo Park for the purpose of subsurface drilling and extraction of natural gas.
On February 19, 2008, (M&C L-14472) Fort Worth City Council authorized City staff to advertise a
request for proposals from private companies to drill for natural gas under 5,422 estimated mineral
acres of City-owned properties, including Rodeo Park. Rodeo Park is located at 2605 North Houston
Street.
A request for bid proposals (RFP)for Rodeo Park was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, published on January 31, February 7, and 14, 2008.
The following sealed bids for the gas lease were received and opened on February 21, 2008:
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Chesapeake Exploration, LLC $ 16775.00 $ 257563.35 25 Percent
XTO Energy, Inc. $ 13911.00 $ 213589.50 25 Percent
The bids received were evaluated by staff and the City's mineral asset management consultant,
JPMorgan Chase. In addition to the lease bonus rate and royalties paid to the City, the bidders'
drilling plan, reputation, financial status, project team and compliance history were also evaluated.
In accordance with the First Amendment to City Secretary Contract No. 29698, Alternative Assets
Agency Account Agreement with JPMorgan Chase and the City, JPMorgan Chase will serve as the
http://apps.cfwnet.org/council_packet/mc review.asp?ID=9638&councildate=5/20/2008 10/9/2012
M&C Review Page 2 of 2
depository of the lease bonus revenue until the City requests wire transfer of the funds. The net
transfer to the City less administrative and legal fees is estimated to be $252,412.08, more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of 3
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 3 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 administered in accordance with the current City Council
Policy on Gas Well Revenues.
The Property is located in COUNCIL DISTRICT 2, Mapsco 62F and 62G.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection and
deposit of funds due the City under this agreement. The Parks and Community Services Department
will be responsible for further distribution of the funds deposited according to the current financial
policy.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929990100 $252.412.08
Submitted for City Manager's Office by: Fernando Costa (8476)
Originating Department Head: A. Douglas Rademaker(6157)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
30RODEO PARK.pdf
http://apps.cfwnet.org/council_packet/mc review.asp?ID=9638&councildate=5/20/2008 10/9/2012