HomeMy WebLinkAboutContract 37565 CITY SECRETARY_
0! 7RACT 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 12 "day of 2008, a Paid Up
Oil and Gas Lease was made and entered into by and between the ITY 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��ay of T 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
An Oklahoma limited liability corporation
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By: &r-nand, a2sTa By:Cliff . itt
Title:Assistant City Manager Its:Land Manager
ATTEST:
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:;ontract Authorization
CitySecretary 5���0�
APPROVED AS TO FORM AND LEGALITY:
By: k ..x —'-
Asst t City tto y
Date:
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
3
COUNTY OF
BEFORE, ME, the undersigned notary public, on
this day personally appearedknown to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged, that (s)he has executed the
same for the purposes and consideration therein expressed.
ZOE
GIVEN under my hand and seal of office this day,of
2008.
Notary Public,State of Texas
My Commission Expires:Dj- /
Commission Number:
HETTIE LANE
MY COP,'NIISoION EYPRES
`"`•`` July 26,2011 1
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA
This instrument was acknowledged before me this NJ of 12008,
by Cliff J.Merritt as Land Manager of Chesapeake Exp oration,L.L.C.on be if of said
corporation.
Evjie—
...........-0 ECC"' Not Public,State of Oklahoma
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J--'�'OTA,gy Tl"
My Commission Expires:' ap7pp4805
Commission Number:_
OF OF
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
2
EXHIBIT"A"
(Maddox Park)
Lots 15,16,17,18,19,20,Block 12,M.G.Ellis Addition,an addition to the City of Fort Worth,
Tarrant County,Texas,being part of the M.C.Jobe Survey,Abstract Number 886,as described
in that certain Plat,recorded in Volume 63,at Page 19,Plat Records,Tarrant County,Texas.
END OF EXHIBIT"A"
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
3
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/20/2008
DATE: Tuesday, May 20, 2008
LOG NAME: 30MADDOX PARK REFERENCE NO.: L-14'SSS
SUBJECT:
Authorize Execution of Lease Agreement with Chesapeake Exploration, L.L.C., with a
Amount of $7,716.30 and a 25 Percent Royalty for Natural Gas Drilling Under Maddox
Located at 2414 Gould Avenue, Just South of Northwest 25th Street
RECOMMENDATION:
It is recommended that the City Council authorize execution of a lease agreement with a bon
$7,716.30 and a 25 percent royalty for natural gas drilling under 0.85 acres, more or less, of City-c
properties located in Tarrant County, Texas, known as Maddox Park located at 2414 Gould Avenu
south of Northwest 25th Street to Chesapeake Exploration, L.L.C., for a two-year primary term.
DISCUSSION:
On January 15, 2008, (M&C L-14462) Fort Worth City Council authorized the conversion of dedi
parkland known as Maddox Park for the purpose of subsurface drilling and extraction of natural gas.
On May 17, 2005, (M&C G-14798) Fort Worth City Council authorized City staff to advertise a reque
proposals from private companies to drill for natural gas under 3,651 estimated mineral acres of
owned properties, including 500 acres of miscellaneous parcels and right of way. Maddox Park is to
at 2414 Gould Avenue. Acceptance of this lease agreement will reduce the approved 500 miscellar
mineral acres of City-owned parcels by 0.85 net mineral acres, more or less.
A request for bid proposals (RFP) for Maddox Park was advertised for three consecutive weeks in the
Worth Star-Telegram, published on January 31, February 7, and 14, 2008.
The following sealed bid for the gas lease was received and opened on February 21, 2008:
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Chesapeake Exploration, L.L.C. $9,078.00 $7,716.30 25 Percent
The bid received was evaluated by staff and the City's mineral asset management consultant, JPM(
Chase. In addition to the lease bonus rate and royalties paid to the City, the bidder's drilling
reputation, financial status, project team and compliance history were also evaluated.
In accordance with the First Amendment to City Secretary Contract Number 29698, Alternative A
Agency Account Agreement with JPMorgan Chase and the City, JPMorgan Chase will serve a
depository of the lease bonus revenue until the City requests wire transfer of the funds. The net trans
the City less administrative and legal fees is estimated to be $7,330.48, more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of 3 pe
on City-owned property of 40 acres or more without an investment goal. On leases of City-owned prc
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/2/2008
Page 2 of 2
of 700 acres or more, the City has established an option of either a 3 percent M/WBE goal or the incl
of an M/WBE investor. This lease is less than 40 acres therefore no M/WBE participation goal is requi
Revenues received from this lease will be administered in accordance with the current City Council I
on Gas Well Revenues.
The Property is located in COUNCIL DISTRICT 2, Mapsco 62 F.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection and d,
of funds due the City under this agreement. The Parks and Community Services Department v
responsible for further distribution of the funds deposited according to the current financial policy.
TO Fund/Account/Centers FROM Fund/Account/C enters
l^i202 446100 801929990100 $7,330.48
Submitted for City Manager's Office by: Fernando Costa (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/2/2008