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HomeMy WebLinkAboutContract 36041 K CITY : RETARY 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 ay ofC*UJ_1 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 ®I 2007. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C., successor by merger to Chesapeake Exploration Limited Partnership By: arc A. Ott By:Cliff .Memtt Title: Assistant City Manager Its: Land Manager ATTEST: Ll L 'antra t a thor<zatioa� City Secretary nrl ,ate APPROVED AS TO FORM AND LEGALITY: By( G✓xt "t-1, Assistant City Atto ey Date: �� �� ACKNOWLEDGEMENTS THE STATE OF TEXAS § § COUNTY OF § BEFORE ME, the undersigned notary public, on this day personally appeared :fie_. /1,� 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 qday of 2007. HE ME LANE + MYCO26 20EXPIRES JU� Notary Public,State of Texas s My Commission Expires: Commission Number: ©�,3,5'�/—7 STATE OF OKLAHOMA § COUNTY OF OKLAHOMA § This instrument was acknowledged before me this_ of Ocbyeeiy 2007, by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said corporation. Notary Public,State of Oklahoma .J L/O''•q My Commission Expires: - $0700480; Commission Number: — 2 EXHIBIT"A" 30.024 acres of land(Berry/Yuma Yard),more or less,and more thoroughly described as follows: Tract# 1 (7.57 acres): Portions of the George W.Hartzog and W.R.Loving Surveys situated about 3 VZ miles southeast from the Courthouse in Tarrant County,Texas, and embracing a portion of the second tract described in the deed from Lena Renfro et Al,to Lizzie Dupre,of record in Vol.401,page 485,of the Deed Records of Tarrant County. Beginning at a northeast corner of said tract in the east line of the said W.R.Loving Survey and 869 varas south from the northeast corner of the said Hartzog Survey. Thence south along said east line 780 feet to a stake in the northerly line of right of way of the H.&T.C. R.R.Co.,50 feet from center of tract. Thence along said right of way line,parallel with and 50 feet from said track center:-north 53 degrees 43 minutes west, 106 9/10 feet;and north 57 degrees 16 minutes west, 102 8110 feet and north 61 degrees 25 minutes west, 100 feet;and northn65 degrees 34 minutes west, 100 feet,and north 70 degrees, 10 minutes west, 100 feet; and north 73 degrees 29 minutes west, 100 feet; and north 76 degrees 41 minutes west, 100 feet;and north 77 degrees 42 minutes west,486-1/10 feet to the intersection of said right of way line and the east line of right of way fence of the I.&G.N.R.R.Co.,90 feet from track center of said 1.&G. N.R.R. Thence north 15 degrees 23 minutes east along said right of way fence,parallel with and 90 feet from said track center,407-8/10 feet to the northwest corner of said Dupre tract. Thence east 1005-9/10 feet to the place of beginning. There is also included with the above tract a strip fifteen feet wide and adjoining the east right of way of the 1. & G. N. R. R. Co from a point opposite the underhead crossing of said 1. & G. N. R. R. and extending in a southwesterly direction about 350 varas tot the north line of the above described tract and containing in both parcels together thirteen and 65.100(13.65)acres. LESS AND EXCEPT: A parcel of land out of the G.W.Hartzog Survey,Abstract No.697,and the W.R.Loving Survey, Abstract No.948,also being a portion of a tract conveyed to the City of Fort Worth,by deed recorded in Volume 1642,Pages 333&334,Deed Records,Tarrant County,Texas more particularly described as follows: Beginning at the northwest corner of said City tract said point also being the southwest corner of a tract conveyed to Paul.H.Brandt by deed recorded in Volume 1799,Page 283,Deed Records,said point being easterly a perpendicular distance of 90.0 feet from the centerline of the I&GN Railroad; Thence: South 15 degrees 19 minutes 38 seconds West along the westerly line of said City tract 90.0 feet easterly of and parallel to said centerline of railroad,421.7 feet to a point on a curve,the center of which bears North 13 degrees 19 minutes 28 seconds East a radius distance,of 5,679.58 said point being 50.0 feet northerly of and radical to the centerline of the Southern Pacific Railroad; Thence:Easterly along said curve to the left and along a line 50.0 feet northerly of a Said centerline of railroad an arc distance of 133.04 feet to a point of tangent; Thence;South 78 degrees 01 minutes 04 seconds East along the southern line of said City tract, 50.0 feet northerly of and parallel to said centerline of railroad 381.81 feet to the beginning of a curve to the right, the center of which bears South 11 degrees 58 minutes 56 seconds West a radius distance 1,482.4 feet; Thence: Southeasterly along said curve to the right and the southerly line of said City tract along a line 50.0 feet,northerly of and concentric to said centerline,an arc distance of 167.07 feet; Thence:North 18 degrees 33 minutes 40 seconds East 207.3 feet; Thence:North 40 degrees 38 minutes 25 seconds West 174.05 feet; Thence:North 71 degrees 34 minutes 34 minutes 02 seconds West 165.96 feet to a point in a chain link fence; 3 Thence:North 16 degrees 46 minutes 55 seconds East along said chain link fence 185.79 feet to a point in the northerly line of said City tract and the southerly line of said tract described in Volume 1739,Page 283; Thence:South 89 degrees 56 minutes 52 seconds West along the northern line of said City tract and the southerly line of said tract described in Volume 1790,Page 283,400.74 feet to the place of beginning and containing 6.08 acres of land more or less. Tract#2(16.463 acres): Portion of the S.P. Loving and W.R. Loving Surveys situated about 3-112 miles southeast from the Courthouse in Tarrant County, Texas,and embracing the eastern portion of the second tract described in the deed from Lena Renfro et al,to Lizzie Dupre,of record in Vol.401,page 485,of the Deed Records of Tarrant County. Beginning at a stake in a north line of said tract 350 feet east of the re-entrant corner thereof,which is in the line between the said surveys, and this stake is the northeast corner of the tract conveyed to the H.&T.C.R.R.Co.by Mrs.Lizzie Dupre et al,by a deed of record in Vol.676,page 187,said records. Thence east along said north line 251 feet to a stake for the northeast corner of said tract. Thence along the easterly boundary of said tract:-south 35-112 east,438-9110 feet to a stake;and south 31- 1/2 east,277-8/10 feet to a stake; and south 28 east,94-4110 feet to a stake; and south 15 east,566-6110 feet to a stake;and south 26 west, 180-5/10 feet to a stake;and south 66 west,72-2/10 feet to a stake;and south 74 west,61-1/10 feet to a stake;and south 65 west, 10 feet to as stake in the northerly line of right of way of the H.&.T.C.R.R.Co.,50 feet from track center. Thence along said right of way line;-north 49 degrees 10 minutes west parallel with and 50 feet from said track center, 274 feet; and north 40 degrees 50 minutes east 50 feet; and north 49 degrees 10 minutes west,parallel with and 100 feet from track center, 380 feet to a stake at the southeast corner of the said tract conveyed to the said H.&T.C.R.R.Co.by the deed of record in Vol.676,page 187. Thence along the eastern boundary of said tract;-north 38 west,258-2/10 feet to a stake;and north 772- 4/10 feet to the place of beginning and containing sixteen and 463/1000(16.463)acres. Tract#3 (5.651 acres): A portion of the S.P.Loving Survey and a portion of a 37.3 acre of land known as Lot No.4: Beginning at a point in the west line of the S.P. Loving Survey, six hundred seventy(670)feet north of the center of the main tract of the Fort Worth Branch of the Houston&Texas Central Railroad Company, said point being an ell corner of a 37.3 acre tract,of which the land herein conveyed was a part,and also the southwest corner of the J.M.Ellis tract; Thence east with the dividing line between the land of the grantor herein and the J.M. Ellis tract,three hundred fifty(350)feet to the northeast corner of the tract of land herein conveyed; Thence south parallel with the west line of the S.P.Loving Survey,seven hundred seventy(770)feet to a point near a gully,which said point is one hundred fifty(150)feet northward and at right angles from the said center line of railroad; Thence south 38 degrees east, two hundred fifty-five (255) feet to a point one hundred (100) feet northward and at right angles from the said center line; Thence westward, parallel with said center line and one hundred feet therefrom, six hundred sixty(660) feet to a point in the west line of the S.P.Loving Survey; Thence north with the said west line, five hundred thirty-six (536) feet to the place of beginning, containing 5.651 acres of land, and being the same property which was conveyed by Lizzie B. Dupre et vir to Houston & Texas Central Railroad Company by deed dated October 15, 1920, and recorded in Volume 676,page 187,of the Tarrant County Deed Records. 4 ^aU I Tract#4(0.34 acres): A portion of the W.R. Loving Survey situated about 3 '/miles southeast from the Courthouse in Tarrant County,Texas. Beginning at the southeast corner of the first tract described in the deed from Lizzie Dupre ,to Lena Renfro,of record in Vol.401,page 482,of the Deed Records of Tarrant County,a stake in the east line of said Loving Survey 864 varas south from the northeast corner of the George W.Hartzog Survey. Thence south along said east line five varas or 13-9110 feet to the northeast corner of the tract conveyed by Lena Renfro et al,to Lizzie Dupre by a deed of record in Vol.401,page 485,of said records. Thence west 1005-9/10 feet to the east fence along the right of way of the I.&G.N.R.R.Co. Thence along said fence line north l5 degrees 23 minutes east, 14-4110 feet to a stake at the southwest corner of the said Lena Renfro tract. Thence east along the south line of said Renfro tract, 1002-2/10 feet to the place of beginning and containing thirty-four onc-hundreths of an acre. 5 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/14/2007 DATE: Tuesday, August 14, 2007 LOG NAME: 30BERRYYUMAYARD REFERENCE NO.: **L-14360 SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for Natural Gas Drilling Under 29.864 Acres More or Less of City-Owned Properties Located in Tarrant County, Texas, Known as the Berry/Yuma Yard Located at 3250 Yuma RECOMMENDATION: It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling under 29.864 acres more or less of City-owned properties located in Tarrant County known as the Berry/Yuma Yard to Chesapeake Exploration Limited Partnership for a two-year term. DISCUSSION: On May 17, 2005, Fort Worth City Council authorized City staff (M&C G-14798) 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 Berry/Yuma Yard lease is located at 3250 Yuma just south of Berry Street east of 1-35. Acceptance of this lease agreement will reduce the approved 500 miscellaneous mineral acres of City-owned parcels by 29.864 mineral acres more or less. A request for bid proposals (RFP) was advertised for three consecutive weeks in the Fort Worth Star- Telegram, published on June 7, June 24, 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 Lease Bonus % Royalty Chesapeake Exploration Limited Partnership $6,777.00 $202,388.33 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 $192,268.90 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 Logname: 30BERRYYUMAYARD Pagel of 2 required. It is anticipated that the lease bonus and royalty proceeds will be deposited in the City's TPW Gas Well Revenue Fund for use on street improvement projects. The property is located in COUNCIL DISTRICT 8, Mapsco 91C. 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 C223 446100 201929990100 $192.268.90 Submitted for City Manager's Office b Marc A. Ott (8476) Originating Department Head: A. Douglas Rademaker(6157) Additional Information Contact: Jean Petr (8367) Logname: 30BERRYYUMAYARD Page 2 of 2