HomeMy WebLinkAboutContract 36500 ;;ITY S �
SECRETARYa�
,oONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the 1h day of 200e, a Paid Up
Oil and Gas Lease was made and entered into by and between the CI 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.
Executed this the 0day o ,20015
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
An Oklahoma limited liability corporation
mn i4r,f
�,.,.
By: Mans A.Ott By:Cliff J. rritt
Title:Assistant City Manager Its:Land Manager
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant Ci Att mey
Date: /— q—r
contrac • Aqthprization
Date
M
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF
BEFORE ME, —' �o the undersigned notary public, on
this day personally appeared 16 ,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 u.
Notary Public,State of Texas
My Commission Expires:
Commission Number: yt�b 93 '11 '7
E:EE:1 XPIRES
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this h' _ofCCP&J� ;,Rr ,2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
EA
Not Public,State of Oklahoma
My Commission Expires: = 9p7ppAR05
z=
Commission Number:^ '=- '
EXHIBIT"A"
(East Freeway Water Tower)
2.57 acres,more or less,situated in the W.L.Tandy Survey,Abstract Number 1538 in Tarrant
County,Texas as described in that certain General Warranty Deed dated July 25, 1957 from the
AMON G.CARTER FOUNDATION to THE CITY OF FORT WORTH recorded in Volume
3148,Page 486,Deed Records,Tarrant County,Texas.
3
Pagel of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/18/2007
DATE: Tuesday, December 18, 2007
LOG NAME: 30E FRWY TOWER REFERENCE NO.: **L-14437
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas
Drilling Under 2.57 Acres, More or Less, of City-Owned Properties Located in Tarrant County,
Texas, Known as the East Freeway Water Tower
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 2.57 acres, more or less, of City-owned properties located in Tarrant County, Texas, known as
the East Freeway Water Tower to Chesapeake Exploration, L.L.C., for a two-year primary 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 East Freeway Water
Tower is located along IH-30 between Bridge Street and Saint Lawrence. Acceptance of this lease
agreement will reduce the approved 500 miscellaneous mineral acres of City-owned parcels by 2.57 net
mineral acres, more or less.
A request for bid proposals (RFP) for The East Freeway Water Tower was advertised for three consecutive
weeks in the Fort Worth Star-Telegram, published on October 11, 18 and 25, 2007.
The following sealed bid for the gas lease was received and opened on November 1, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration, L.L.C. $6,333.00 $16,275.81 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 $15,462.01, 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.
Revenues received from this lease will be administered in accordance with the current City Council Policy
on Gas Well Revenues.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 1/4/2008
Page 2 of 2
The Property is located in COUNCIL DISTRICT 4. Mapsco 65 W.
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
PE45 446100 0601000 $15,462.01
Submitted for City Mana_ger's Office by: Marc A. Ott(8476)
Originating Department Head: A. Douglas Rademaker(6157)
Additional Information Contact: Jean Petr(8367)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 1/4/2008