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HomeMy WebLinkAboutContract 40023-A4 CITY SECRETARV CONTRACTNO,P_ NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. AMENDMENT NO. IV TO OIL AND GAS LEASE Reference is hereby made to that certain City Secretary Contract Number 40023, Oil and Gas Lease (hereinafter referred to as "Lease") dated the 15t" day of March, 2010 by and between City of Fort Worth, as Lessor, and Quicksilver Resources, Inc., as Lessee, such Memo of Lease, City Secretary Contract Number 40022, is recorded in Document Number D210067244 of the Public Records of Tarrant County, Texas covering the following described lands located in Tarrant County, Texas, to wit: 1005.7321 acres of land,more or less as described in Exhibit A attached to said Lease. WHEREAS, Section 1.04 of the Operations Restrictions Agreement incorporated into the Lease as Exhibit B prohibits the Lessee from using any part of the leased land other than the Operations Site for any other Facilities without the written consent of the Lessor and Water Department; and WHEREAS, the Water Department gave verbal consent to the Lessee to use part of the leased land other than the Operation Site as valley storage; and WHEREAS, it is now the desire of Lessee to obtain the written consent of the Lessor and the Director of the Water Department pursuant to Section 1.04 to use a portion of the leased land other than the Operation Site as valley storage as shown on Exhibit A to this amendment of the Lease. NOW THEREFORE, the undersigned do hereby agree that the Lessee shall have the written consent of Lessor to use a portion of the leased land other than the Operation Site as valley storage as shown in Exhibit A. Such consent shall be conditional on the Lessee obtaining a permit from the City's Floodplain Administrator as required by the City Code. Lessee must comply with Chapter 7, Article VIII, Floodplain Provisions, of the City Code and specifically adhere to the Corridor Development Certificate requirements of Sections 7-385 through 7-391. Lessee shall be strictly limited to using only that portion of the leased land as shown in Exhibit A for this purpose. Lessee shall provide the Lessor and the Water Department with an "as built" exhibit prior to re-commencing its storage activity at the leased land as shown in Exhibit A and shall provide forty-eight hours advance notice to the Water Department prior to further storage activity. Lessee agrees to allow the Water Department access to the storage site at all reasonable times. Lessee further agrees that it will not expand nor seek to expand the valley storage area indicated in Exhibit A despite the build out of the gas well pad site or other operations. OFFICIAL RECORD CITY SECREETARY The consent of the Water Department Director shall be given by signature of the Assistant City Manager, Jesus J. Chapa. All other terms and conditions of the Oil and Gas Lease, City Secretary Contract No. 40023 and as recorded in the Lease Memo (City Secretary Contract No. 40022) and in Document Number D210067244 of the Public Records of Tarrant County, Texas which are not amended herein, shall remain in full force and effect throughout the term of the Lease. This fourth amendment to the Lease shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, legal representatives, successors and assigns. EXECUTED this X day of ;2015. Lessor: Lessee: CITY OF FORT WORTH QUICKSILVER RESOURCES INC .,w � Jesus J. Chapa Clay/Blum Assistant City Manager Vice-President US Land ®0® ®a0 "w ATTFS ntract Authorization Cary Kays d City Secreta ©�°°a4 t PROVED AS TO ORM AN EGA''' hrista R:Lopez-Reynol s Sr. Assistant City Attorney OFFICIAL 2 The consent of the Water Department Director shall be given by signature of the Assistant City Manager, Jesus J. Chapa. All other terms and conditions of the Oil and Gas Lease, City Secretary Contract No. 40023 and as recorded in the Lease Memo (City Secretary Contract No. 40022) and in Document Number D210067244 of the Public Records of Tarrant County, Texas which are not amended herein, shall remain in full force and effect throughout the term of the Lease. This fourth amendment to the Lease shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, legal representatives, successors and assigns. EXECUTED this �. day of 2015. Lessor: Lessee: CITY OF FORT WORTH QUICKSILVER RESOURCES INC i/ Jesus J. Chapa Clay Blume Assistant City Manager Vice-President US Land ATTEST: Mary Kayser City Secretary APPROVED AS TO FORM AND LEGALITY: Christa R. Lopez-Reynolds Sr. Assistant City Attorney "FICIiAL ti"IECi` RIK), 2 1:-T.W01 fir it)TX ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Jesus J. Chapa, 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 ii, 2015. [SEA LINDA M.WIRRLINUDR Notary Public in and for the =*�lin ' MY COMMISSION EXPIRES State of Texas U My Commission Expires o, at I i ri i .. t t t°° Print Name of Notary Public Here THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Clay Blum, Vice-President US Land of Quicksilver Resources, Inc., known to me to be the person whose name is subscribed to the foregoing instrument and, that (s)he has executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2015. [SEAL] Notary Public in and for the State of Texas My Commission Expires: Print Name of Notary Public Here OFFICIAL RECORD ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Jesus J. Chapa, 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 2015. [SEAL] Notary Public in and for the State of Texas My Commission Expires: Print Name of Notary Public Here THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Clay Blum, Vice-President US Land of Quicksilver Resources, Inc., known to me to be the person whose name is subscribed to the foregoing instrument and, that (s)he has executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 4 day of 2015. Notary Public in and for the State of Texas MI A41 ELAINE KEENOM x a �� MY Cot91r19i! n Explre My Co ,r on Exp es: �� ' March 13, 2017 mt Name of Notary Public Here I)FFICIAL RECORD 3 HTY 151 ECR ETuARY �o Ali / r i/� r 11i1/ /�i /1 ✓✓✓ W o IL gmmgl/✓ j/ �i GIN rs d � � W Q �� .v o � �ws i J �V v iP o,✓ es m �" t i g i t (n ✓. r� .11 191 1 1 I J oo " E6 p % + + � i(�1 0 w > n=i x W z uJ� G 4 U >Q G now W IN bilk,I{ y 8 o ��. E b 1a MEv °soGG i Hf {i� V o) OPS O11 t� i a jj r R e � p 9-10 133HS 33S 3 N I l H 0 1 V W 8 a r+i+ns nao so r.oun�aa+urn ramay.aru moei+a io3roee a3r+io u,>am sera ao nor+u r.i ossn as of ia+sw wrc rums r'oo eo uasaoea_ui 3a.+.oa3u o3iraoaaoo.n 3�eass„r+oiss3aoea ao o3o,oaa s+ssao on sn+av+n000 so asnae �oininsau verya m Nnvrs iron nazn snross�x oaosr-ne�esrsaxasuo.Fer aa,f�zz snao saaee rrrn as iosn�r,v zzu,rozraeaauoaa a.wn wanes^ns�+ra as eunv�o M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORT COUNCIL ACTION: Approved on 312/2010 REFERENCE 06VILLAGE CREEK DATE: 3/2/2010 NO.: L-14936 LOG NAME: WATER TREATMENT PLANT CODE: L TYPE: CONSENT HEARING: NO SUBJECT: Approve the Acceptance of a Lease Agreement with Quicksilver Resources, Inc., in the Amount of$11,772,001.80 for Natural Gas Drilling Under 1,006.154 Acres of City-Owned Properties Known as Village Creek Wastewater Treatment Plant Located 4500 Wilma Lane for a Two Year Primary Term (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council authorize the acceptance of a Lease Agreement for natural gas drilling under 1,006.154 acres, more or less, of City-owned properties known as Village Creek Wastewater Treatment Plant located at 4500 Wilma Lane, to Quicksilver Resources, Inc., for a two year primary term. DISCUSSION: A Request for Bid Proposals (RFP) for Village Creek Wastewater Treatment Plant was advertised for four consecutive weeks in the Fort Worth Star-Telegram, published on December 10, 2009, December 17, 2009, December 24, 2009, and December 31, 2009. The following sealed bids for the gas lease were received and opened on January 7, 2010. Percent Bidder Lease Bonus/Acre Total Lease Bonus Royalty Quicksilver Resources, Inc. $11,700.00 $11,772,001.80 26 Chesapeake Exploration, L.L.C. $8,888.00 $8,942,696.75 26 XTO Energy, Inc. $8,711.00 $8,764,607.49 26 Newark Energy, LLC $5,525.00 $5,559,000.85 25 In addition, each company agreed to a one percent overriding royalty based on the minimum terms of the bid. The bids received were evaluated by staff and the City's Mineral Management Consultant, Midkiff Oil and Gas. In addition to the lease bonus rate and royalties paid to the City, the bidder's drilling plan, reputation, financial status, project team and compliance history were also evaluated. Timely award and execution of this lease will allow for inclusion of these properties in the drilling unit currently being formed. In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract No. 37980, the net transfer to the City is estimated to be $11,672,001.80, more or less. 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 http://apps.cfwnet.org/council_packet/me review.asp?ID=13089&councildate=3/2/2010 8/27/2015 M&C Review Page 2 of 2 M/WBE goal or the inclusion of an M/WBE investor. Quicksilver Resources, Inc., has agreed to meet the three percent M/WBE participation goal. Revenues received from this lease shall be deposited according to the Financial Management Policy Statements, which currently direct the bonus and royalty for Water and Sewer assets 50 percent to Water and Sewer Capital Projects Fund, 25 percent to the Fort Worth Permanent Fund and 25 percent to the Utility Street Reconstruction Capital Improvement Projects. The property is located in COUNCIL DISTRICT 5, Mapsco 67H, 67M, 68G, 68J, 68K, 68L, 68M and 68N. 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. TO Fund/Account/Centers FROM Fund/Account/Centers P245 446100 601149990100 $5,886,000.90 P245 531260 601149990100 $50,000.00 P245 446100 601149990300 $2,943,000.45 P245 531260 601149990300 $25,000.00 T124 446100 060124099901 $2,943,000.45 T124 531260 060124099901 $25,000.00 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Susan Alanis (8180) Additional Information Contact: Jean Petr(8367) ATTACHMENTS Exhibit 2.pdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=13089&councildate=3/2/2010 8/27/2015