HomeMy WebLinkAboutContract 35514 1TY
SECRETARY"ONTRgCT NO. 35n4
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:
YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
MEMORANDUM OF PAID UP OIL AND GAS LEASE
THE STATE OF TEXAS )
)ss.
COUNTY OF TARRANT )
KNOW ALL MEN BY THESE PRESENTS,that CITY OF FORT WORTH, a home
rule municipal corporation of the State of Texas located within Tarrant, Denton, and
Wise Counties, Texas as Lessor, executed and delivered to CHESAPEAKE
EXPLORATION LIMITED PARTNERSHIP, P.O. Box 18496, Oklahoma City, OK
73154-0496, as Lessee, a Paid Up Oil and Gas Lease dated s?Etlae Z00!7
(the"Lease"), covering the following described land:
See Exhibit"A"attached hereto and made a part hereof.
WHEREAS, said Oil and Gas Lease and all rights thereunder are now owned by
CHESAPEAKE EXPLORATION LIMITED PARTNERSHIP, an Oklahoma limited
partnership, whose address is P.O. Box 18496, Oklahoma City, Oklahoma 73154-
0496.
The Lease is to provide for a primary term of Two(2)years from r-7Une Z 24>01
and as long thereafter as oil, gas and related hydrocarbons are produced in p ying
quantities from the Lands, or lands pooled or unitized therewith, according to and by the
terms and provisions of the Lease. The Lease is subject to other various terms,
conditions and provisions, all of which have been agreed to by and between Lessor and
Lessee, as set forth in the Lease.
The Lease, with all of its terms, covenants and other provisions, is referred to
and incorporated into this Memorandum for all purposes. If there is a conflict between
the terms of this Memorandum and the terms of the Lease, the terms of the Lease shall
control in all respects. Lessor and Lessee have possession of fully executed copies of
the Lease.
The purpose of this Memorandum of Paid Up Oil and Gas Lease is to evidence
the existence of the Paid Up Oil and Gas Lease and to give third parties notice of the
same.
LESSOR: CITY OF FORT WORTH
By: C L" 14 ow
i PPIROVED AS TO
Name: Marc A.Ott FORM AND LEGALITY:
Assistant ci .mac.
Title:
ASS TANT CITY ATTORNEY
,ttested Sy;
LESSEE:CHESAPEAKE EXPLORATION LIMITED PARTNERSHIP, FNA-Z�!!�L�
an Oklahoma limited pa ership Marty Hen ix
r'!tv Secretary
hf
By: ' I a.
Cliff J. Merritt k I
.ontract Authoriaatiox
9 6�
Land Manager-Barnett Shale
y Date 9
ACKNOWLEDGMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT _§
BEFORE ME, a n-C- the undersigned notary
public, on this day personally appeared h,. 1). C ocd.y 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 % dray of Fey _ 2007.
Notary Public, State of Texas
My Commission Number: _July 26,2007
My Commission Expires: 00693591-7
STATE OF OKLAHOMA }
} ss:
COUNTY OF OKLAHOMA }
This instrument was acknowledged before me this day of_ '�
2007, by CLIFF J. MERRITT, LAND MANAGER—BARNETT SHALE of CH APEAKE
EXPLORATION LIMITED PARTNERSHIP, on behalf of said partnership.
Notary Public, State of Oklahoma
My Commission Number:
My Commission Expires:
nu Q�5
EXHIBIT"A"
4.03 acres, more or less, out of the R. Crowley Survey, A-313, more particularly
described by metes and bounds in that certain Deed dated August 15, 1941, by and
between J.M. Lamb and wife, Emma Morgan Lamb, as Grantor and the City of Fort
Worth, as Grantee, recorded in Volume 1493, Page 590 of the Deed Records of Tarrant
County, Texas.
(University Drive N./Trinity River)
END OF EXHIBIT"A"
71
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Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/29/2007
DATE: Tuesday, May 29, 2007
LOG NAME: 30UNIV DR LEASE REFERENCE NO.: **L-14325
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for
Natural Gas Drilling Under 4.03 Acres, More or Less, of City-Owned Properties Located in Tarrant
County, Texas, known as University Drive North/Trinity River
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 4.03 acres, more or less, of City-owned properties located in Tarrant County, known as the
University Drive North/Trinity River to Chesapeake Exploration Limited Partnership 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 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 University Drive
North/Trinity River lease is located at 400 North University Drive just east of the University Drive Bridge at
the West Fork of the Trinity River. Acceptance of this lease agreement will reduce the approved 500
miscellaneous mineral acres of City-owned parcels by 4.03 mineral acres, more or less.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial
Recorder, published on March 29, April 5 and April 12, 2007.
The following sealed bid for the gas lease was received and opened on April 19, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploation
Limited Partnership $6,126.00 $24,687.78 25
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 of $1,234.39 is estimated to be $23,453.39 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.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the Capital Projects Reserve
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 7/12/2007
Page 2 of 2
Fund.
The Property is located in COUNCIL DISTRICTS 2 and 9, Mapsco 62 S,T.
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/C enters
GC10 446100 013010001000 $23,453.39
Submitted for City Manager's Office by: Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 7/12/2007