HomeMy WebLinkAboutContract 34808 s.
CITY SECRETA
CONTRACT NO.
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AMENDMENT TO OIL AND GAS LEASE
Reference is hereby made to that certain Oil and Gas Lease (hereinafter referred to as
"Lease") dated the 22°d day of August, 2006, by and between CITY OF FORT WORTH, as
Lessor, and DALE RESOURCES, L.L.C., as Lessee, which lease is recorded in Document
#D206334298 of the Public Records of Tarrant County,Texas,covering the following described
lands located in Tarrant County,Texas,to wit:
10.887 acres, more or less, out of the E. Little Survey, Abstract No. 954 and the F. G.
Mulliken Survey,Abstract No. 1045,more particularly described by metes and bounds in
that certain Plat Map dated April 1, 1977, recorded in Volume 388-111, Page 95 of the
Plat Records in Tarrant County,Texas.
Whereas it is the desire of said Lessor and Lessee to amend the description of said Lease.
Now Therefore, the undersigned do hereby delete the description in Paragraph No. 1 of said
lease as described above and in its place insert the following:
22.5 acres, more or less, out of the E. Little Survey, Abstract No. 954 and the F. G.
Mulliken Survey,Abstract No. 1045,more particularly described by metes and bounds in
that certain Warranty Deed dated October 27, 1952 by and between J. B. Angell and
wife,Ada May Angell,as Grantors,and City of Fort Worth, Texas,as Grantee,recorded
in Volume 2510,Page 556 of the Deed Records,Tarrant County,Texas;
Furthermore the undersigned do hereby ratify,adopt and confirm said Lease as hereby amended,
as a valid and subsisting Lease and the undersigned Lessor does hereby grant,demise,lease and
let unto Dale Resources, LLC, the present owner of said Lease, the premises described above,
subject to and in accordance with all of the terms and provisions of said Lease as hereby
amended.
This agreement shall be binding upon and inure to the benefit of the parties hereto,their
respective heirs,legal representatives,successors and assigns.
EXECUTED the day of 2006,but for all purposes effective
August 22,2006.
LESSOR:
Bv:
Assistant City Manager
ATTEST:
Cort i J�uthorizatio
City Secretary Date
APPROVED AS TO FORM AND LEGALITY:
By.
istant City Attorney
Cit 6 3auffil
- - Ft, w-Oleo, TEX.
f
ources,L.L.C.
rence B.Dale
sident
STATE OF TEXAS
COUNTY OF TARRANT
This instrument was acknowledged before me on ���.��,rz L�c� / 2006,
by Marc A.Ott as Assistant City Manager of the City of Fort Worth,Tarrant County,Texas,on
behalf of said municipality.
ROSEUABARNEB -�c.�'F�c.
MY COMMISSION EXPIRES Notary Public State of Texas
4r :` March 31,M
STATE OF TEXAS
COUNTY OF DALLAS
This instrument was acknowledged before me on t u �� 2000 by
Lawrence B.Dale as President of Dale Resources,L.L.C.,a Texas corpo tion on behalf of said
corporation.
- �PZ�Ao Nam
;o rg CHRIS OLDHAM Notary Public State of Texas
t=q` NOTARY PUBLIC
im *! State of Texas
IF
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ff."MR, EX.
Pagel of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/15/2006
DATE: Tuesday, August 15, 2006
LOG NAME: 30AWARD POLICE REFERENCE NO.: **C-21614
SUBJECT:
Approve Acceptance of Lease Agreement with Dale Resources, LLC, for Natural Gas Drilling under
10.885 Mineral Acres More or Less of City-Owned Properties Located in Tarrant County Texas
Known as the Police Pound
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 10.885 mineral acres more or less of City-owned properties located in Tarrant County known
as the Police Pound to Dale Resources, LLC for a two-year term.
DISCUSSION:
On May 17, 2005, (M&C G-14798) Fort Worth City Council authorized City staff to advertise a Request for
Proposals (RFP) from private companies to drill for natural gas under 3,651 estimated mineral acres of
City-owned properties, including 500 acres of miscellaneous parcels and right-of-way. The property known
as the Police Pound is located in the Police Vehicle Pound Addition, Block 1, Lot 1 at 1301 East Northside
Drive. Acceptance of this lease agreement will reduce the approved 500 miscellaneous mineral acres of
City-owned parcels by 10.885 net mineral acres more or less.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial
Recorder, published on June 15, 22 and 29, 2006.
The following sealed bid for the gas lease was received and opened on July 6, 2006.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Dale Resources, LLC $6,125.00 $66,670.63 26
The bid received was 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 bidder's drilling plan,
reputation, financial status, project team and compliance history were also evaluated.
In accordance with the Alternative Assets Agency Account Agreement between JPMorgan Chase and the
City (City Secretary Contract 29698), JPMorgan Chase will serve as the 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 $64,003.80 more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of 3% 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% 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.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the Capital Projects Reserve
Fund.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/8/2007
Page 2 of 2
The property is located in COUNCIL DISTRICT 4, Mapsco 63 J.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds due
the City under this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
GC 10 446100 013010001000 $64,003.80
Submitted for City Manager's Office bK Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: A. Douglas Rademaker (6157)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/8/2007