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HomeMy WebLinkAboutContract 36188 ic 1-:7, MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § BE IT REMEMBERED that on the-L-rday of No am bGy 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., an Oklahoma limited liability corporation, 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. -W� Executed this the L day of DV fid ,2007. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C., An Oklahoma limited liability corporation c By: are q. ,)77- By:Cliff J.Mferritt Title:Assistant City Manager Its:Land Manager (L ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: B Ci' - _wit oC� Assistant City Attorney Date: //- at- (:)-7 - I4L-tol _— ':ontract Authorizati.oa 'sate -� i ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF /arra i7T § jj BEFORE ME, A27-7-Y— ,Uaey the undersigned notary public, on this day personally appeared M arm A4 CJT7` ,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 f day of 2007. HETTIE LANE MY COMMISSION EXPIRES duly 26,2011 Notary Public,State of Texas My Commission Expires: Commission Number: O©C,5P,3 9`Y/-� STATE OF OKLAHOMA § COUNTY OF OKLAHOMA § I L This instrument was acknowledged before me this ("I of 2007, by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said corporation. F ,k#- Notary Public,State of Oklahoma My Commission Expires: 54�8p Commission Number: „wuu,00• 2 EXHIBIT"A" (Anderson-Campbell Park) An 11.49 acre tract of land,described as Tract 2 of Abstract 1405,Peter Schoonover Survey,City of Fort Worth, Tarrant County, Texas, and consisting of 11.49 acres, more or less and being the same land described in that certain General Warranty, dated February 16, 2000 and recorded in Instrument No. D200077813,Official Records,Tarrant County,Texas. 3 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/16/2007 DATE: Tuesday, October 16, 2007 LOG NAME: 30ANDERSON-CAMP REFERENCE NO.: L-14409 SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas Drilling Under 11.49 Net Mineral Acres, More or Less, of City-Owned Properties Located in Tarrant County, Texas, known as Anderson-Campbell Park RECOMMENDATION: It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling under 11.49 net mineral acres, more or less, of City-owned properties located in Tarrant County, known as the Anderson-Campbell Park, to Chesapeake Exploration, L.L.C., for a two-year term. DISCUSSION: On August 14, 2007, (M&C L-14370) Fort Worth City Council authorized the conversion of dedicated parkland known as Anderson-Campbell Park for the purpose of subsurface drilling and extraction of natural gas. A request for bid proposals (RFP) was advertised for three consecutive weeks in the Fort Worth Star- Telegram, published on August 23, August 30, and September 6, 2007. The following sealed bid for the gas lease was received and opened on September 13, 2007. Bidder Lease Bonus/Acre Total Lease Bonus Percent Royalty Chesapeake Exploration, L.L.C. $8,278.00 $95,114.22 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 $90,358.51, 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. It is anticipated that the lease bonus and royalty proceeds will be deposited in the City's Park Gas Lease Project Fund to complete the Master Plan for Anderson-Campbell Park. Logname: 30ANDERSON-CAMP Page 1 of 2 The Property is located in COUNCIL DISTRICT 7, Mapsco 61 L, M. 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 C282 4461000 801929990100 $90,358.51 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: 30ANDERSON-CAMP Page 2 of 2