HomeMy WebLinkAboutContract 36048 OiT( SECRETARY
-014TRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
rA
HE IT REMEMBERED that on theay 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 I'.ART 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 th day o 07.
LESSOR: LESSEE:
CITY OF FORT WORTII CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Exploration Limited Partnership
ay: Ma e A. By: Cli . Merritt
Title:Assistant City manager Its:Land Manager _ _
7^_7
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:C-5,4r"
Assistant Cittty��Atto ey
Dale: /V''
1
ACKNOWLEDGEMENTS
THF,STATE OF TEXAS §
COUNTY OF §
BEFORE ME, t� 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 Q
2007.
COMMISSION
EXPIRES —'
{� July 26,2bt 3
otary Public, State of Texas
My Commission Expires:
Commission Number:
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this ( J-"e1 of D C bf ,2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration, L.L.C.on behalf of said
corporation.
Not Public,State of Oklahoma
oTM
My Commission Expires: _ '%07004805': c
Commission Number:
OF
2
EXHIBIT"A"
4.3 acres of land(Northside Drive),more or less,and more thoroughly described as follows:
Being a 4.300 acre tract of land being a tract out of the W.W.WHEAT SURVEY,Abstract No. 1647,in
Fort Worth,Tarrant County,Texas,and being a tract conveyed to the City of Fort Worth,recorded in
Volume 2674,Page 41, Deed Records,Tarrant County,Texas,and being more particularly described by
metes and bounds as follows:
BEGINNING at an iron set on the South line of the S.K.Smith Survey at the point on which the East
right-of-way line of the Tarrant County Water Control and Improvement District No. I intersects;which
point bears South 89 degrees 44 minutes East 143 feet from an axle which is also on the South line of the
S.K.Smith Survey and which point is also 203 feet South 89 degrees 44 minutes East from the Southeast
corner of the W.W.Wheat Survey which corner is located on the centerline of the Trinity River as it
existed on 1 August 1949.
THENCE North 2 degrees 28 minutes West along the said East right-of-way line of the Tarrant County
Water Control and hnprovement District No. I for a distance of 477.92 feet to the point of intersection
with the South right-of-way line of the proposed 12th Street Connection.
THENCE North 57 degrees 30 minutes West along said south right-of-way line for a distance of 257.5
feet,more of less,to a point on the East line of W.W.Wheat Survey,at which point is the southerly
corner and the point of beginning of the tract of land described herein and which point is also on the
centerline of the Trinity River as it existed on I August 1949.
THENCE North 57 degrees 30 for a said distance of 190 feet,more or less,to a point of which is 447.47
feet North 57 degrees 30 minutes West from the East right-of-way line of the Tarrant County Water
Control and Improvement District No. 1.
THENCE in a Northwesterly direction along a curve to the right having a radius of 673,69 feet through an
angle of 30 degrees 36 minutes 30 seconds for a distance of 359.56 feet to a point.
THENCE North 26 degrees 53 minutes 30 seconds West 148.26 feet.
THENCE along a curve to the left having a radius of 768.6 feet and being tangent to the preceding course
for a distance of 117 feet,more or less,to a point on the line of the W.W.Wheat Survey as described in
the deed referred to herein-before as being recorded on Page 308 of Volume 2108 of the Deed Records of
Tarrant County,Texas;continuing along said river to the most southerly corner of this tract which was the
point of beginning;enclosing some 4.3 acres,more or less.
3
City of Fort Worth, Texas Gb
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/10/2007
DATE: Tuesday, July 10, 2007
LOG NAME: 30NORTHSIDE DR REFERENCE NO.: **L-14347
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for
Natural Gas Drilling under 4.3 Acres, more or less, of City-Owned Properties Located in Tarrant
County, Texas, known as "Northside Drive 4.3 Acres"
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 4.3 acres, more or less, of City-owned right of way properties located in Tarrant County known
as "Northside Drive 4.3 Acres" 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 Northside Drive 4.3
Acres lease is located in the S. K. Smith Survey, A-1417, just north of Northside Drive between 1-35 and
Cold Springs Road. Acceptance of this lease agreement will reduce the approved 500 miscellaneous
mineral acres of City-owned parcels by 4.3 mineral acres more or less.
A request for bid proposals (RFP) for "Northside Drive 4.3 Acres' 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 $25,702.50 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 $24,417.38, 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.
Lo-name_ 30NORT 4SIDE DR pnoP 1 of
Because this property was acquired by the City for the extension of 12th Street in 1954, it is anticipated
that the lease bonus and royalty proceeds will be deposited in the TPW Gas Well Revenues Fund.
The Property is located in COUNCIL DISTRICT 2, Mapsco 63 K.
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
C223 446100 201929990100 $24.417.38
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 DR Page 2 of 2