HomeMy WebLinkAboutContract 36046 CRET
:�Olt'TRACT 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 c 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., 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 day of 12007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
r
By: tt
By:Cliff Z Merritt
Title:Assistant City Manager Its: Land Manager
TTEST:
ntract h
City Secretary Q7
APPROVED AS TO FORM AND LEGALITY:
B.y��
Assistant/City A60Aey
Date: Go �� v
1 _..
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF
BEFORE ME, the undersigned notary public, on
this day personally appeared -� �, 4 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.
GL=��GIVEN under my hand and seal of office this�r� day of ,
2007.
-- i
HEMELANE
tdY COMMISSION EMPIRES
;+ July 26,2011
vi Notary Public,State of Texas
My Commission Expires:
Commission Number: p(F
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this 1 J of 64v k 2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
No ary Public,State of Oklahoma
,•���OTNRy...r�
My Commission Expires: _
olERPA5/15/11; `
Commission Number: e ;
OF DKA',.•
2
EXHIBIT"A"
8.8 acres of land(W.Northside Drive ROW),more or less,and more thoroughly described as follows:
8.8 acres, more or less, out of the F.G. Mulliken Survey A-1045 and the E. Little Survey A-954, more
particularly described by metes and bounds in that certain Warranty Deed dated January 28, 1954 by and
between Nicholas Vloitos and wife,Katie Vloitos,and Despina as Grantors and the City of Fort Worth,as
Grantee,recorded in Vol.2674,Pg.43 of the Deed Records,Tarrant County,Texas:
Beginning in the South right of way line of the Tarrant County Water Control and Improvement District
No. 1 at a point from which an iron set for the Southwest comer of Block 1, Riverside Gardens Addition
to the City of Fort Worth,bears North 73°58"East 71.63 feet;
TIIENCE South 10°47"East 179.79 feet to a point;
THENCE South 1 V 16"West 155.50 feet to a point;
THENCE South 22° 18"West 160.00 feet to a point:
THENCE 2°21"West 254.95 feet to a point;
THENCE 51°6"West 125.41 feet to a point;
THENCE 73°33"West 148.60 feet to a point;
THENCE 86°3"West 148.60 feet to as point;
THENCE North 841 28"West 335.40 feet to a point on the East right of way line of the Tarrant County
Water Control and Improvement District No. 1;
THENCE South 12°8"West 161.15 feet along said right of way line to a point;
THENCE North 871 32"East 119.30 feet to a point;
THENCE South 07°42"East 243.50 feet to a point;
THENCE North 861 5"East 176.90 feet to a point;
THENCE North 730 33"East 176.90 feet to a point;
THENCE North 83°30"east 125.41 feet to a point;
THENCE North 48°20"East 282.29 feet to a point;
THENCE South 73°29"East 110.0 feet to a point;
THENCE South 56° 13"East 155.94 feet to a point;
THENCE South 33° 16"East 155.95 feet to a point from which a Bois d'Arc stake set for the Southwest
corner of Block 7,bears North 68°54-112 minutes East 69.72 feet;
THENCE North 68° 12"East to a point in the West line of Samuels Avenue,
THENCE in a Northwesterly direction along the West line of Samuels Avenue 1455.32 feet to a point
where said line intersects the South right of way line of Tarrant County Water Control and Improvement
District No. 1;
THENCE South 73°58"West along said South right of way line to the point of beginning,containing 8.8
acres,more or less.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/4/2007
DATE: Tuesday, September 04, 2007
LOG NAME: 30NORTHSIDE 8.8 REFERENCE NO.: **L-14387
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas
Drilling Under 8.8 Acres, More or Less, of City-Owned Properties Located at the Intersection of
Northside Drive and Samuels Avenue in Tarrant County, Texas
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 8.8 acres, more or less, of City-owned properties located located at the intersection of
Northside Drive and Samuels Avenue in Tarrant County, Texas, to Chesapeake Exploration, L.L.C., 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 Northside Drive— 8.8
Acres lease is located at the intersection of Northside Drive and Samuels Avenue. Acceptance of this
lease agreement will reduce the approved 500 miscellaneous mineral acres of City-owned parcels by 8.8
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 July 12, July 19 and July 26, 2007.
The following sealed bid for the gas lease was received and opened on August 2, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration, L.L.C. $6,577.00 $57,877.60 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 $54,983.72, 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.
Logname: 30NORTHSIDE 8.8 Page 1 of 2
It is anticipated that the lease bonus and royalty proceeds will be deposited in the TPW Gas Well Revenue
Fund.
The Property is located in COUNCIL DISTRICTS 2 and 9, Mapsco 62 M,R.
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 $54.983.72
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: 30NORTHSIDE 8.8 Page 2 of 2