HomeMy WebLinkAboutContract 36052 tCRETARY
�ON'I'RAi 7' NO. U c
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 they of C 2007.
LESSOR: LESSEE,:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, L.L.C.,
successor by merger to Chesapeake
Exploration Limited Partnership
g a By: Cliff J. erritt
Y�
Title:Assistant City Manager Its: Land Manager
City Secretary —����..�\�
APPROVED AS TO FORM AND LEGALITY:
Assistant Cit/'y ttorney
Date:
' ';
9 I
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF — 4,tn�
BEFORE ME, the undersigned notary public, on
this day personally appeared -,Wg4 e-- ,¢_ - 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 ofG: �
2007.
NETfIE LANE
MY COMMISSION EXPIRES
• 'v? s duly 28,201t Notary Public,State of Texas
My Commission Expires:
Commission Number: 006 9 3 9/--7
STATE OF OKLAHOMA §
§
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this of �i 2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration, L.L.C.on behalf of said
corporation.
44
..........
1`f ry Public, State of Oklahoma
E
J�EH. l�O,r
My Commission Expires: 1 007004806-_
Commission Number: o,
a-o8c Pve
2
EXHIBIT"A"
7.883 acres of land(McCray Park),more or less,and more thoroughly described as follows:
A tract of land situated in Block 6, HANDLEY HEIGHTS SOUTH ADDITION to the City of Fort
Worth, Tarrant County, Texas, as recorded in Volume 388-F, Page 5, Deed Records of Tarrant County,
Texas, said tract of land being portions of Lots 9, 10, 11 and 12 of Block 6, said tract being more
particularly described by metes and bounds as follows:
BEGINNING at a 112 inch iron rod set at the Southwest corner of said Lot 12 in the right-of-way line of
Quail Trail(unimproved at this point);
THENCE North 09 degrees 24 minutes East 1108.0 feet along the East right-of-way line of said Quail
Trail to a 1/2 inch iron rod which lies South 09 degrees 24 minutes West 12.0 feet from the Northeast
corner of said Lot 9;
THENCE along the original deed calls said Easterly line of Tract 1 (0.81 acre tract)conveyed to F, H.
Jeanes and Eepanita Jeanes and recorded in Volume 4101,Page 390 and along the deed calls and original
contour line of elevation 550 as conveyed to the City of Arlington and recorded in Volume 3143, Page
155 and along the Easterly line of Tract 2(1.08 acres)conveyed to F. H.Jeanes and Espanita Jeanes and
recorded in Volume 4101,Page 390 the following courses and distances:
North 80 degrees 31 minutes 50 seconds East 9.1 feet.North 86 degrees 14 minutes East 93.8 feet;
South 20 degrees 54 minutes East 135.3 feet,South 50 degrees 49 minutes West 119.6 feet;
South 42 degrees 05 minutes East 110.7 feet,South 32 degrees 16 minutes East 101.3 feet;
South 86 degrees 23 minutes East 117.5 feet,South 03 degrees 04 minutes East 163.1 feet:
South 04 degrees 31 minutes West 96.5 feet,South 21 degrees I 1 minutes West 86.1 feet;
North 84 degrees 15 minutes West 66.8 feet,South 66 degrees 19 minutes West 85.9 feet;
South 40 degrees 56 minutes West 97.9 feet, South 58 degrees 28 minutes East 116.4 feet;
South 50 degrees 42 minutes West 114.5 feet,South 81 degrees 29 minutes West 96.9 feet;
South 44 degrees 46 minutes West 189.9 feet to a point in the South Zine of said Lot 12;
THENCE North 89 degrees 46 minutes Chest 26.4 feet to a POINT OF BEGINNING and CONTAINING
approximately 6,068 acres of land.
Also:
BEING a parcel of land situated in the J.A.Creary Survey,Abstract No.269,and being a portion of Lots
6, 7 and 8, Block 6, Handley Heights South Addition, an addition to the City of Fort Worth, Tan-ant
County, Texas, according to the plat recorded in Volume 388-F, Page 5, Plat Records, Tarrant County,
Texas,and being more particularly described as follows:
COMMENCING ata 1/2 inch iron rod found in place at the northwest corner of Lake Arlington Park;
THENCE north 09 degrees, 24 minutes, 00 seconds east,220.09 feet along the east right-of-way line of
Quail Road(65 foot wide right-of-way)to the POINT OF BEGINNING for the herein described tract of
land at elevation 550.0 above Mean Sea Level (National Geodetic Survey Datum), said 550.0 elevation
being the elevation of the service spillway of Lake Arlington.
THENCE along the 550.0 foot contour as it meanders as follows:
North 85 degrees,04 minutes,43 seconds cast,31.75 feet;
North 81 degrees,30 minutes,51 seconds east,38.03 feet;
North 33 degrees,01 minutes,05 seconds east,57.83 feet;
North 18 degrees,50 minutes,46 seconds east,84.01 feet;
South 75 degrees,34 minutes,59 seconds east,31,40 feet;
North 76 degrees,54 minutes,35 seconds east,39.76 feet;
North 59 degrees,33 minutes,46 seconds east,84.07 feet;.
North 35 degrees,06 minutes,09 seconds east,41.91 feet;
North 21 degrees,07 minutes,23 seconds east,35,04 feet;
North 02 degrees,40 minutes,36 seconds east,38.87 feet;
North 22 degrees,25 minutes,34 seconds west,40.16 feet;
Nath 59 degrees,51 minutes,03 seconds west,43.13 feet.
North 39 degrees,41 minutes,50 seconds west, 1 1 1.72 feet;
North 52 degrees,03 minutes,21 seconds west, 12.59 feet;
North 58 degrees,53 minutes,35 seconds west,29.93 feet;
North 41 degrees,39 minutes,58 seconds west,54.18 feet;
to a point in the east line of Quail Road;
THENCE south 29 degrees,24 minutes,00 seconds west,88.50 feet along the east line of Quail Road to a
set 518 inch iron rod with a red plastic cap stamped"City of Fort Wath Survey Section;"
THENCE south 09 degrees,24 minutes,00 seconds west along the east line of Quail Road,at 71.00 feet
passing a set 518 inch iron rod with a red plastic cap stamped"City of Fort Worth Survey Section" set at
the northwest corner of Lot 7, Block 6,1landley Heights South Addition,and at 351.0 feet passing a set
5J8 inch iron rod with&red plastic cap stamped"City of Fort Worth Survey Section"set at the northwest
corner of Lot 8, Block 6, Handley Heights South Addition, in all 422.91 feet to the POINT OF
3
BEGINNING and encompassing 79,075 square feet more or less, save and except a flowage casement
retained by the City of Arlington between the 550.0 and 560.0 elevations.
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City of f=ort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/10/2007
DATE: Tuesday, July 10, 2007
LOG NAME: 30MCCRAY PARK REFERENCE NO.: **L-14344
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership, for
Natural Gas Drilling under 8.818 acres, more or less, of City-Owned Properties Located in Tarrant
County, Texas, known as the McCray Park
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 8.818 acres, more or less, of City-owned properties located in Tarrant County known as the
McCray Park to Chesapeake Exploration Limited Partnership for a two-year term.
DISCUSSION:
On January 23, 2007, (M&C G-15596) Fort Worth City Council authorized the conversion of dedicated
parkland known as McCray Park for the purpose of subsurface drilling and extraction of natural gas.
A request for bid proposals (RFP) for McCray Park was advertised for three consecutive weeks in the
Commercial Recorder, published on April 26, May 3 and May 10, 2007.
The following sealed bid for the gas lease was received and opened on May 17, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration
Limited Partnership $12,257.00 $108,082.25 25.5
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 $102,678.13 more or less.
'The City has established a Minority Women Business Enterprise (M/ BE) 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/ BE investor. This lease is less than 40 acres therefore no MI BE participation goal is required.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the Park Gas Lease
Projects Fund to complete the Master Plan for McCray Park.
Logname: 30MCCRAY PARK Page ] of?
The Property is located in COUNCIL DISTRICT 5, Mapsco 80 S, W.
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/C enters
C282 446100 801929990100 $102.678.13
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: 30MCCRAY PARK Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/23/2007
DATE: Tuesday, January 23, 2007
LOG NAME: 80EUGENEMCCRAY REFERENCE NO.: G-15596
SUBJECT:
Conversion of Parkland at Eugene McCray Park at Lake Arlington for the Purpose of Subsurface
Drilling and the Extraction of Natural Gas from an Off-Site Location
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing under the guidelines set forth by the Texas Parks and Wildlife Code, Chapter
26, Protection of Public Parks and Recreation Lands;
2. Find that no feasible or prudent alternative exists to drilling and extracting gas from underneath this park
site;
3. Find that the proposed conversion includes all reasonable planning to minimize harm to the parkland;
and
4. Close the public hearing and authorize the City Manager to convert the dedicated parkland for
subsurface drilling and the extraction of natural gas from approximately 6.07 acres of parkland situated in
Eugene McCray Park at Lake Arlington, located in the J.A. Creary Survey, Abstract Number 269, recorded
in Volume 388-F, Page 5, of the Deed and Records of Tarrant County, Texas.
DISCUSSION:
The City of Fort Worth has been approached by a number of interested parties for the purpose of extracting
natural gas from the Barnett Shale Formation. This formation occurs throughout most of Fort Worth and a
large amount of gas drilling has already occurred throughout the City. The City of Fort Worth has contracted
with J.P. Morgan Chase to develop and manage the City's gas mineral assets.
In accordance with the Texas Parks and Wildlife Code, Chapter 26, the City of Fort Worth seeks to convert
the subsurface areas of Eugene McCray at Lake Arlington for the purpose of gas drilling and extraction.
This conversion only proposes the use of the subsurface. Attached for the Council's reference is an aerial
photograph of the Eugene McCray Park at Lake Arlington.
Letters announcing the proposed conversion were sent out to Carver Heights East Neighborhood
Association, Historic Carver Heights Neighborhood Association, Ramey Place Neighborhood Association,
and The Bunch Ellington Club Neighborhood Association.
On November 29, 2006 the Parks and Community Services Advisory Board endorsed staffs
recommendation that the City Council authorize the conversion of Eugene McCray at Lake Arlington for the
use of subsurface natural gas drilling and extraction from an off site location.
In accordance with state law, the conversion was advertised in the Fort Worth Star-Telegram on December
Logname: 80EUGENEMCCRAY Page 1 of 2
25, 2006, January 1, 2007 and January 8, 2007. An exhibit was provided for public view for 30 days at the
Parks and Community Services Department administration offices located at 4200 South Freeway, Suite
2200.
Eugene McCray Park at Lake Arlington is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City Funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office b}L Libby Watson (6183)
Originating Department Head: Melody Mitchell (Acting) (5704)
Additional Information Contact: David Creek (5744)
Logname: 80EUGENEMCCRAY Page 2 of 2