HomeMy WebLinkAboutContract 36050 Ci 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 theday of W&L. 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 18446, 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 , ;007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Exploration Limited artnership
y: Marc . Ott By:Clif J. Merritt
Title: Assistant City Manager Its: Land Manager
ATTEST:
r.tr`-�t A thoriza
City-Secretary 0 �1 r
APPROVED AS TO FORM AND LEGALITY:
Assistant City orney
Date:
._....- l ; 7 1 -
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF -03171-at. t §
BEFORE ME, e77i the undersigned notary public, on
this day personally appeared_�C� y ¢.477 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. �,nn
GIVEN under my hand and seal of office this day of 14
2007.
NETTiE LANE
MY COMMISSION EXPIRES
July 26,2011 Notary Public,State of Texas
My Commission Expires:
Commission Number: o?G I,5yl
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STATE OF OKLAHOMA §
§
COUNTY OF OKLAHOMA § II--
"This instrument was acknowledged before me this of �C I} 2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
Not Public,State of Oklahoma
o a%
007004806
My Commission Expires: exv.oens„ua;
Commission Number: s9r.Aue _r
pF O,c.
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EXHIBIT"A"
2.77 acres of land(E. Little Survey),more or less,and more thoroughly described as follows:
LEGAL DESCRIPTION: Two and seventy-seven hundredths(2.77)acres out of southwest portion of the
E. Little Survey just north of Fort Worth in Tarrant County, Texas, beginning in the middle of the
channel of Trinity River, where same is intersected by the west line of right-of-way of the G.C.& S.F.
Railway 50 feet from track center:
Thence up said river channel with its meanders south 86 west 160 feet,to a point whence the angle corner
in the east side of the north wing wall of the steel rod driven in the ground in a projection of the south line
of the east portion of the south line of the east portion of the south wing wall of said concrete bridge and
18.3 feet from the southeast corner of said wall;
Thence south 4-314 East 394 feet to a stake in the East line of the Samuel's Avenue road;
Thence north 62 East 310 feet to the West line of right-of-way of said railway 75 feet line;
Thence north 60 East 25 feet;
Thence north 36 west about 430 feet to beginning, containing two and seventy-seven (2.77) hundredths
acres;
And right-of-way extending from the north line of N.W. 18°i Street to the South line N.E. line 23 d Street.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/14/2007
DATE: Tuesday, August 14, 2007
LOG NAME: 30ELITTLE SURV REFERENCE NO.: **L-14363
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for
Natural Gas Drilling Under 2.77 Acres More or Less of City-Owned Properties Located in Tarrant
County, Texas, Known as the "E. Little Survey, 2.77 Acres"
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 2.77 acres more or less of City-owned properties located in Tarrant County known'as the "E.
Little Survey, 2.77 Acres" to Chesapeake Exploration Limited Partnership for a two-year term.
DISCUSSION:
On May 17, 2005, Fort Worth City Council authorized via (M&C G-14798) 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 E. Little Survey, 2.77
Acres lease is located in the E. Little Survey, on the north side of Fort Worth between Northside Drive and
23rd Street just east of Samuels Avenue. Acceptance of this lease agreement will reduce the approved
500 miscellaneous mineral acres of City-owned parcels by 2.77 mineral acres more or less.
A request for bid proposals (RFP) for "E. Little Survey, 2.77 Acres" 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 per Acre Total Lease Bonus % Royalty
Chesapeake Exploration
Limited Partnership $6,545.00 $18,129.65 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 $17,223.16 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: 30ELITTLE SURV Pagel of 2
required.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the City's Capital Project
Reserve Fund.
The property is located in COUNCIL DISTRICTS 2 and 8, Mapsco 62M.
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 F u nd/Accou nt/C enters FROM Fund/Account/Centers
GC10 446100 013010001000 $17.223.16
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: 30ELITTLE SURV Page 2 of 2