HomeMy WebLinkAboutContract 35896 CSECRETARY
CONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the !Aay of 2007, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY OF FORT WORTH,a
home rule municipal corporation of the State of Texas, c/o Director, Department of
Engineering, 1000 Throckmorton Street, Fort Worth, Texas 76102, hereinafter called
"(LESSOR)"; and CHESAPEAKE EXPLORATION, L.L.C., successor by merger to
Chesapeake Exploration Limited Partnership, 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 theday o (2A� 007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Exploration LimitqjPartnership
By: M gyre_ ,¢,• /-1'-/ - By:CliffCager erritt
Title:Assistant City Manager Its:Land M a
ATTEST:
,J,�
City ecretary
APPROVED AS TO FORM AND LEGALITY:
B�.f
Assistant City Att /ey
Date:
44 F�yQ q
Contract authorization
Cate 1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF (a!'Ya 4 7-- §
BEFORE ME, f�e7 Ti e- Zig the undersigned notary public, on
this day personally appeared Go,>Jo 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 Y# day of
2007.
Notary Public,State of Texas
My Commission Expires: Z''7',;1 - ;ZD�� ""f:. HE7E LANE
MV COMMISSION EXPIRES
Commission Number: e z G`l.�.S�/- July 2s,2011
7 .; .
STATE OF OKLAHOMA §
§
COUNTY OF OKLAHOMA § LL
This instrument was acknowledged before me this U of �LU h 2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
Public,State of Oklahoma
fJ aOTMy Trh
S p 07004805
My Commission Expires: =„Irxa.050SM
Commission Number: =,9;.pug�``s:
2
EXHIBIT"A"
31.946 acres of land(Greenway Park),more or less,and more thoroughly described as follows:
Tract#I
Legal Description(946/585):
Being 60.24 Acres out of the R. BRIGGS,W.H.LITTLE and J.L177LE SURVEYS in Tarrant County,
Texas,described by metes and bounds as follows:
BEGINNING at a atone in the South line of Belknap Street if projected 260 feet North 60 deg.East from
the center of the main line of the C.R.L&T.R.R.,said point of beginning being the Southwest corner
of a tract of land deeded to L.L.Hawes by Chas. Evans et ux on the 17th day of May, 1906,said deed
being recorded in Book 219,page 330,Deed Records of Tarrant County,Texas;
THENCE North 60 deg.East with the South line of said tract at 942 1/2 feet a stone marked X In the
South Line of the W.H.Little Survey 233 1/2 feet West of Its Southeast corner,at 2747'/2 feet the top of
levy at 2878 1/2 feet a 8—inch cottonwood tree marked X to its cardinal point,in all 3072 1/2 feet to the
middle of the channel of the Trinity River;
THENCE up said channel with its meanderings;
North 25 deg.West 235 feet;
North 31 1/4 deg.East 330 feet;
North 10 1/2 deg.East 300 feet;
North 14 1/4 deg.West 252 feet the Northeast corner of this tract;
THENCE SOUTH 60 deg.West 3409 feet,the Northwest comer of said Hawes tract 260 feet North 60
deg.East from the center of the main line of the Chicago,Rock Island and Texas R.R.track;
THENCE South 21 3/4 deg.East 30 feet a stone the Northwest corner of a tract of land deeded to the
Terminal Grain Company by L. L.Hawes on the 1 lth day of May, 1908,said deed being recorded in
Book 234,page 575.Deed Records of Tarrant County,Texas;
THENCE North 60 deg.East 200 feet an iron,the Northeast corner of said Terminal Grain Co.Tract;
THENCE with the East line of said tract and parallel to the main line of the C.R.1.&T.R.R.Co.track;
South 21 3/4 deg.East 50 feet;
South 20 3/4 deg.East 100 feet;
South 19 3/4 deg.East 100 feet;
South 18 1/4 deg.East 100 feet;
South 17 1/4 deg.East 80 feet a stone the Southeast corner of said Terminal Grain Co.tract;
THENCE South 60 deg.West 200 feet a stone the Southwest corner of said Terminal Grain Co. tract;
THENCE South 17 1/4 deg.East 20 feet;
THENCE South 16 1/4 deg.East 100 feet;
THENCE South 15 1/4 deg.East 100 feet;
THENCE South 14 1/4 deg.East 100 feet;
THENCE South 13 1/4 deg.East 100 feet to the place of beginning;
Being 5.91 acres out of the R.BRIGGS SURVEY, 15.5 acres out of the W.H.LITTLE SURVEY and
38.83 acres out of the J.LITTLE SURVEY in all 60.24 acres,exclusive of a strip of land off of the North
side of the above described tract deeded to Tarrant County by L.L.Hawes on the 28th day of January,
1908,said deed being recorded in Book 284 page 210,Deed Records of Tarrant County,Texas,and being
the same land conveyed to L.L.Hawes by Charles Evans and Wife,Goldie G.Evans by deed dated May
17, 1906,recorded in Book 219,page 330,Deed Records of Tarrant County,Texas.
LESS AND EXCEPT the following 2 tracts of land described below,resulting in a total acreage of 28.929
acres.
11.131 acres,more or less,out of the W.H.Little Survey,Abstract No.945,and the R.Briggs Survey,
Abstract No. 116,more particularly described by metes and bounds in that certain Plat Map dated July
31,1978,recorded in Volume 388-123,Page 59 of the Plat Records in Tarrant County,Texas;
20.18 acres,more or less,out of the W.H.Little Survey,Abstract No.945,and the J.Little Survey,
Abstract No.958,more particularly described by metes and bounds in that certain Deed dated October
31,1958,by and between the City of Fort Worth,a municipal corporation,as Grantor,and the State of
Texas,as Grantee,recorded in Volume 3288,Page 20 of the Deed Records in Tarrant County,Texas;
Tract#2
Legal Description(D205329704):
"Sump Tract 1"BEING a tract of land situated in the John Little Survey,Abstract No.958,Tarrant
County,Texas and being a part of Lot 1,Block 1,Tindall Center,an addition to the City of fort Worth
1 =! h �
3 t ��;
according to the plat recorded in Cabinet A,Slide 9452,Plat Records,Tarrant County,Texas said tract of
land being more particularly described by metes and bounds as follows:
BEGINNING at a point for the southeast corner of said Lot 1,Block 1,Tindall Center,being the
southwest corner of that certain tract of land as described by deed to the City of Fort Worth and recorded
in Volume 13592,Page 30,Deed Records,Tarrant County,Texas;
THENCE South 61*00'45"West,with the south line of said Lot I,Block I,Tindall Center,a distance of
309.48 feet to a point for the east line of a 30 foot Sanitary Sewer Easement,recorded in Cabinet A,Slide
9452,Plat Records,Tarrant County.Texas and being the beginning of a non-tangent curve to the right
having a central angle of 2518*25",a radius of 485.00 feet and chord bearing and distance of North
00*21*02"East,212.48 feet;
THENCE departing the south line of said Lot I,Block 1,Tindall Center,with east line of said 30'
Sanitary Sewer Easement and with said non-tangent curve to the right in a northeasterly direction,an arc
length of 214.22 feet to a point for the beginning of a reverse curve having a central angle of 25*44*36",
o radius of 715.00 feet and chord bearing and distance of North 00*07*57"East,318.56 feet;
THENCE continuing with the east line of said 30 foot Sanitary Sewer Easement and with said reverse
curve in a northeasterly direction,an are length of 321.25 feet to a point;
THENCE North 05*12*03"West,departing the east line of said 30 foot Sanitary Sewer Easement,a
distance of 60.68 feet to a point;
THENCE North 20*31*06"East,a distance of 21.20 feet to a point;THENCE South 88*i 413"East,a
distance of 28.25 feet to a point;THENCE South 3311*12"East,a distance of 29.54 feet to a point;
THENCE North 06*48*01"East,a distance of 12.71 feet to o point in an east line of aforementioned Lot
1,Block 1,Tindall Center and in a west line of aforementioned City of Fort Worth tract;
THENCE South 26T3'15"East,with the east line of said Lot 1,Block 1.Tindall Center and with the west
line of said City of Fort Worth tract,a distance of 499.80 feet to the POINT of BEGINNING and
containing a calculated area of 89,781 square feet or 2.061 acres of land.
"Sump Tract 2" BEING a tract of land situated in the John Little Survey,Abstract No.958,Tarrant
County,Texas and being a part of that certain tract of land as described by deed to the City of Fort Worth
and recorded in Volume 13592,Page 30,Deed Records,Tarrant County,Texas,said tract of land being
more particularly described by metes and bounds as follows:
BEGINNING at a point for the southwest comer of said City of Fort Worth tract and being the southeast
comer of Lot 1,Block 1,Tindall Center,on addition to the City of fort Worth according to the plat
recorded in Cabinet A,Slide 9452,Plat Records,Tarrant County,Texas;
THENCE North 26T3'15"West,with a west line of said City of Fort Worth tract and with an east line of
said Lot 1,Block 1,Tindall Center,a distance of 499.80 feet to a point;
THENCE North 06'48'01"East,departing the west line of said City of Fort Worth tract and the east line
of said Lot 1,Block 1,Tindall Center,a distance of 88.25 feet to a point;
THENCE South40"39'29"East,a distance of 84.34 feet to a point;
THENCE South28*45*23*East,a distance of 73.94 feet to a point;
THENCE South33'31'18"East,a distance of 85.27 feet to a point;
THENCE South22"20'50"East,a distance of 46.26 feet to a point;
THENCE South28*32'07"East,a distance of 191.84 feet to a point;
THENCE South 09"51'28*East,a distance of 96.84 feet to a point in the south line of aforementioned
City of Fort Worth tract;
THENCE South 61 "0I'12"West,with the south line of said City of Fort Worth tract,a distance of 60.64
feet to the POINT of BEGINNING and containing a calculated area of 41.664 square feet or 0.956 acres
of land.
4
L_� 1
City of Fort Worth, Texas
Mayor and Council Communication DP
COUNCIL ACTION: Approved on 7/17/2007
DATE: Tuesday, July 17, 2007
LOG NAME: 30GREENWAY PARK REFERENCE NO.: **L-14355
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for
Natural Gas Drilling under 32.589 Acres More or Less of City-Owned Properties Located in Tarrant
County, Texas, known as the Greenway Park
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 32.589 acres more or less of City-owned properties located in Tarrant County known as the
Greenway Park to Chesapeake Exploration Limited Partnership for a two-year term.
DISCUSSION:
On September 19, 2006, (M&C L-14248), Fort Worth City Council authorized the conversion of dedicated
parkland known as Greenway Park for the purpose of subsurface drilling and extraction of natural
gas. Originally, Greenway Park extended eastward to what is currently Riverside Park. When the Trinity
River channel was changed, approximately 9 acres of Greenway Park became a part of the riverbed and
the City retained the mineral interest. The total park area today consists of approximately 22 acres of
useable land. This lease consists of the existing Greenway Park as it is today and the portion of the former
park land under the Trinity River making a total of 32.589 acres more or less.
A request for bid proposals (RFP) for Greenway Park was advertised for three consecutive weeks in the
Commercial Recorder, published on May 10, May 17 and May 24, 2007.
The following sealed bid for the gas lease was received and opened on May 31, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus °%Royalty
Chesapeake Exploration
Limited Partnership $6,675.00 $217,531.58 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 is estimated to be $206,655.00 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
Logname: 30GREENWAY PARK Pagel of 2
i
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 Park Gas Lease
Project Fund to complete the Master Plan for Greenway Park.
The Property is located in COUNCIL DISTRICT 2, Mapsco 63 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/Centers
C282 446100 801929990100 $206.665.00
Submitted for City Manager's Office by: Marc A. Ott (8467)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr(8367)
Logname: 30GREENWAY PARK Page 2 of 2