HomeMy WebLinkAboutContract 36072 CITY SECRETARY r
CONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT § 11
BE IT REMEMBERED that on the l-day of 2007, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY OFF RT 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 the 4day of4 007.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
successor by merger to Chesapeake
Exploration Limited Partnership
i
By: 11:rc A. By:Clif J. erritt
Title: Assistant City Manager Its:Land Manager
ATTEST:
11DC\
,,tract A,.,.t-horizatioR
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant City Atto ey
Date: 1-07
1 1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OFc�i, zcr §
BEFORE ME, --2 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 r e, �ay of
2007.
Notary Public,State of Texas
My Commission Expires:
Commission Number: ee,6 4 X591-fNE
•_.
HE
MY COMMI S OtN E PIKES
�`"l4h�i'* July pg,2011
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA
This instrument was acknowledged before me this of 00;fi`12r ,2007,
by Cliff I.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
Notary Public,State of Oklahoma
My Commission Expires:_ _ #07004805',
Commission Number: o:.oa
,vi:UUJdo 7.. 1
EXHIBIT A
20.1805 acres,more or less,out of the W.H.Little Survey,Abstract No.
945,and the J.Little Survey,Abstract No. 958,more particularly
described by metes and bounds in that certain Deed dated October 31,
1958,by and between the City of Fort Worth,a municipal corporation,as
Grantor,and the State of Texas,as Grantee,recorded in Volume 3288,
Page 20 of the Deed Records in Tarrant County,Texas.
3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7110/2007
DATE: Tuesday, July 10, 2007
LOG NAME: 301-35 ROW REFERENCE NO.: **L-14341
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for
Natural Gas Drilling under 20.18 Acres, more or less, of City-Owned Properties Located in Tarrant
County, Texas, known as the 1-35 ROW
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 20.18 acres, more or less, of City-owned right of way properties located in Tarrant County
known as the 1-35 ROW 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 1-35 ROW lease is
located in the J. Little Survey, A-958 and the W. H. Little Survey, A-945, under 1-35 W just west of
Greenway Park. Acceptance of this lease agreement will reduce the approved 500 miscellaneous mineral
acres of City-owned parcels by 20.18 mineral acres.
A request for bid proposals (RFP) for 1-35 ROW 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 $134,701.50 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 $127,966.42, 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: 30I-35 ROW Page 1 of
I
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 T.
FISCAL INFORMATIONICERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds due
the City under agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
C223 446100 201929990100 $127,966.42
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: 30I-35 ROW Page 2 of 2