HomeMy WebLinkAboutContract 37567 ^iErA
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MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the IO day of - 2008, a Paid Up
Oil and Gas Lease was made and entered into by and between thJ 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.
1I11 >\
Executed this the P day of 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
An Oklahoma limited liability corporation
By; By:Cliff J. Ad
Title:Assistant City Manager Its: Land Ma ager
n•R-
ATTEST: I 40 0 O�
Contra�t Authorization
City Secretary g
Date
APPROVED AS TO FORM AND LEGALITY:
Assistant City AJ16rney v
Date: ��0
OFFICIAL RECORD
1 CITY SECRETARY
FT.WORTH,TX
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF Z,41� § �p
BEFORE ME, �p�R�� the undersigned notary public, on
this day personally appeared &mhc— ,known 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.
GIVEN under my hand and seal of office this A) day ofd
2008.
Notary Public,State of Texas
My Commission Expires:
Oo��3s9/-7 �'�'�� �`�= HErneu+NE
Commission Number:
'- MyCOMhv119SI0N E.FiR�S
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STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA
This instrument was acknowledged before me this C.1J' of 2008,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behad of said
corporation.
Nota ublic,State of Oklahoma
p 07004005 '
My Commission Expires: _ ;EZP.oS 5 s
Commission Number:
OP 0-
R
IAL RECORD
SECRETARY
WORTH,TX
EXHIBIT"A"
(Gid Hooper Park)
Tract 1:
Lot 6,Block E,Bubar Subdivision,an addition to the City of Fort Worth,Tarrant County,Texas,being a
part of B.E.Waller Survey,Abstract Number 1659,as described in that certain Plat,recorded in Volume
1665,at Page 296,Tarrant County,Texas.
Tract 2:
A 0.88451860 acre tract of land,being part of the B.E.Waller Survey,Abstract Number 1659,as
described in that certain Warranty Deed,recorded in Volume 6074,at Page 426,Tarrant County,Texas,
described by metes and bounds as follows:
BEGINNING at a%"iron pin at the northeast corner of Block"G",and the northeast corner of the
Trentman tract,the coordinates of said point are:X=2,060,441.22,Y=397,101.98;
THENCE South no degrees 29 minutes 48 seconds east along the east line of Block"G",94.44 feet to a
%"iron pin at the northeast corner of a tract of land conveyed to George H.Evans by deed recorded in
Volume 816,page 67,Deed Records of Tarrant County,Texas;
THENCE North 89 degrees 45 minutes 52 seconds West along the north line of the Evans tract 100.00
feet to a yz"iron pin at the northwest corner of the Evans tract;
THENCE South no degrees 29 minutes 46 seconds east along the West line of the Evans tract 50.0 feet to
a%"iron pin at the southwest corner of the Evans tract;
THENCE North 89 dgrees 45 minutes 52 seconds West along the south line of Block"G",passing a'h"
iron pin at 176.39 feet,in all 201.39 feet to the southwest corner of the Trentman tract;
THENCE North no degrees 29 minutes 46 seconds West along the west line of the Trentman tract,
passing a%"iron pin at 50.0 feet,in all 144.44 feet to a%2"iron pin at the northwest corner of the
Trentman tract in the north line of Block"G';
THENCE South 89 degrees 45 minutes 52 seconds east along the north line of Block"G"and the north
line of the Trentman tract 301.39 feet to the place of beginning and containing 38,529.63 feet of land,
more or less.
Tract 3:
A 0.11478420 acre tract of land, being part of the B.E. Waller Survey, Abstract Number 1659, as
described in that certain Warranty Deed,recorded in Volume 6078, at Page 867,Tarrant County,Texas,
described by metes and bounds as follows:
BEGINNING: at a 'h" iron pin situated South no degrees 29 minutes 46 seconds East along the east line
of Block G, 94.44 feet from a %" iron pin at the northeast corner of Block G, the coordinates of said
northeast corner of Block G,are:X=2,060,441.22,Y=397,101.981-
THENCE:
=397,101.98;THENCE:North 89 degrees 45 minutes 52 seconds West along the north line of said Evan Tract 100.00
feel:to a'/2"iron pin at the northwest corner of said Evans Tract;
THENCE: South no degrees 29 minutes 46 seconds East along the west line of said Evans Tract 50.0 feet
to a%"iron pin at the southwest corner of said Evans Tract;
THENCE: South 89 degrees 45 minutes 52 seconds East along the south line of said Evans Tract 100.00
feet to a point at the southeast corner of Block G,and the southeast corner of said Evans Tract;
THENCE:North no degrees 29 minutes 46 seconds West along the east line of Block G, 50.0 feet to the
place beginning.
OFFICIAL RECORD
3 CITY SECRETARY
FT.WORTH,TX
Pagel of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/29/2008
DATE: Tuesday, July 29, 2008
LOG NAME: 30GID HOOPER PK REFERENCE NO.: L-14607
SUBJECT:
Authorize Execution of a Lease Agreement with Chesapeake Exploration, LLC, with a Bonus
Amount of $13,125.01 and a Twenty-Five Percent Royalty for Natural Gas Drilling Under Gid
Hooper Park Located at 814 Retta Street
RECOMMENDATION:
It is recommended that the City Council authorize execution of a lease agreement with a bonus amount of
$13,125.01 and a twenty-five percent royalty, for natural gas drilling under 1.277 acres more or less of City-
owned properties located in Tarrant County, Texas, known as Gid Hooper Park located at 814 Retta Street
to Chesapeake Exploration, LLC, for a two-year primary term.
DISCUSSION:
On February 26, 2008, (M&C L-14478) Fort Worth City Council authorized the conversion of dedicated
parkland known as Gid Hooper Park for the purpose of subsurface drilling and extraction of natural gas.
On February 19, 2008, (M&C L-14472) Fort Worth City Council authorized City staff to advertise a request
for proposals from private companies to drill for natural gas under 5,422 estimated mineral acres of City-
owned properties, including 500 acres of miscellaneous parcels and right-of-way. Gid Hooper Park is
located at 814 Retta Street in the area south of the Trinity Railway Express line and between Sylvania
Avenue South and Riverside Drive. Acceptance of this lease agreement will reduce the approved 500
miscellaneous mineral acres of City-owned parcels by 1.277 net mineral acres more or less.
A request for bid proposals (RFP) for Gid Hooper Park was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, published on March 20, 27, and April 3, 2008.
Bidder Lease Bonus/Acre Total Lease Bonus 7Royally
Chesapeake Exploration, LLC $10,278.00 $13,125.01 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 First Amendment to City Secretary Contract Number 29698, Alternative Assets
Agency Account Agreement with JPMorgan Chase and the City, 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 from JPMorgan Chase is estimated to be $12,468.75 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
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/12/2008
Page 2 of 2
of 700 acres or more, the City has established an option of either a 3 percent MNVBE goal or the inclusion
of an M/VVBE investor. This lease is less than 40 acres therefore no MNVBE participation goal is
required.
Revenues received from this lease will be administered in accordance with the current City Council Policy
on Gas Well Revenues.
The Property is located in COUNCIL DISTRICT 8, Mapsco 63Z.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection and deposit
of funds due the City from this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 4461000 801929990100 $13,125.01 C282 5XXXXX 801929990100 $656.26
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 9/12/2008