HomeMy WebLinkAboutContract 35916 CITY SECRETARY;
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 day 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 the L�'day o J�&2007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Explor tion LimiteO Partnership
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By: rc A.Ott By:Cliff erritt
Title:Assistant City Manager Assistant City Manage: Land Manager
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City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Assis ant City Atto6ey
Date: X x747
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Contra�c(t'�AuthorizatioA
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Date
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ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned notary public, on
this day personally appeared ._ _,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_
2007.
Notary OA—Ii—c, State of Texas
My Commission Expires:2�,�0-/j
Commission Number: rJ
LANE
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STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this _of -��r?1 2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
,rwjp0"°4py No ry Public,State of Oklahoma
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My Commission Expires: N07004805
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Commission Number:
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2
EXHIBIT"A"
28.164 acres of land, more or less, being all that certain 65.788 acres of land,more or less, being all of
Lot 1, Block 1, Sycamore Golf Course Addition,an addition to the City of Fort Worth,Tarrant County,
Texas, according to the Plat recorded in Cabinet A, Slide 1389, of the Plat Records of Tarrant County,
Texas; SAVE AND EXCEPT: Two tracts of Land; Tract No. 1: 35.314 acres of land, more or less, as
described by metes and bounds in that certain deed dated May 30, 1991,by and between Tarrant County
Water Control and Improvement District No. 1, as Grantor, and the City of Fort Worth, as Grantee,
recorded in Volume 10296,Page 1169 of the Official Public Records of Tarrant County,Texas.Tract No.
2: 2.310 acres of land described in the Right-of Way Deed recorded in Volume 4366, Page 330, Deed
Records,Tarrant County,Texas,and described by metes and bounds as follows;
BEGINNING at a steel rod in the East line of a tract conveyed to John H. Cochran and Wife Susan
Cochran in Deed recorded in Volume 1631, Page 349, Deed Records, Tarrant County, Texas, South 17
deg 25 min East 3.8 feet from the Northeast corner thereof,
THENCE South 17 deg 25 min East 280.7 feet to a steel rod at a Southeast corner thereof;
THENCE South 89 deg 40 min West 286.8 feet to a Bois D'Arc stake at a re-entrant corner thereof;
THENCE South 0 deg 08 min East 166.0 feet to a Southeast corner thereof;
THENCE North 89 deg 21 min West 160.0 feet to a steel rod set for a Southwest corner thereof;
THENCE North 0 deg 08 min West 166.0 to a Bois D'Arc stake at a re-entrant corner thereof;
THENCE North 89 deg 59 min West 58.7 feet to a steel rod set for a Southwest corner thereof;
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/4/2007
DATE: Tuesday, September 04, 2007
LOG NAME: 30SYCAMORECKGAS REFERENCE NO.: **C-22360
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for
Natural Gas Drilling under 30.474 Mineral Acres, More or Less of City-Owned Properties Located in
Tarrant County Texas known as the Sycamore Creek Golf Course
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 30.474 mineral acres more or less of City-owned properties located in Tarrant County known
as the Sycamore Creek Golf Course to Chesapeake Exploration Limited Partnership for a two-year term.
DISCUSSION:
On February 20, 2007, (M&C G-15598) Fort Worth City Council authorized the conversion of dedicated
parkland known as Sycamore Creek Golf Course for the purpose of subsurface drilling and extraction of
natural gas. The total available acreage in Sycamore Creek Golf Course is 65.788 acres with a 30.474 net
mineral acre interest owned by the City of Fort Worth.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Fort Worth Star-
Telegram, published on June 7, June 14, and June 21, 2007.
The following sealed bid for the gas lease was received and opened on June 28, 2007.
Bidder Lease Bonus/Acre Total Lea$e Bonus %Royalty
Chesapeake Exploration Limited Partnership $7,124.00 $217,096.78 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 is estimated to be $206,241.93, 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 City's Park Gas Lease
Project Fund to complete the Master Plan for Sycamore Creek Golf Course.
Logname: 30SYCAMORECKGAS Paee 1 of 2
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The Property is located in COUNCIL DISTRICT 8, Mapsco 77H.
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.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929990100 $206.241.93
Submitted for City Manager's Office by: Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
Logname: 30SYCAMORECKGAS Page 2 of 2