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MEMORANDUM OF OIL AND 4GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the day o , 2008, a Paid Up
Oil and Gas Lease was made and entered into by and betty en 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.
Executed this the eday of %6�1 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, L.L.C.,
An Oklahoma limited liability corporation
475rww.,.�4�
By: 5&,rmaAdo COSrB By: ClifT &lerritt'
Title: Assistant City Manager Its: Land Lanager
lu•�•
ATTEST: L- I qsolq
Contract .Authorization
City ecretary
Date
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant City tto ey
Date: —0 -z-,)' aV
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
§
COUNTY OF — §
BEFORE ME, c .L 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 acknowledged, 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
2008. _ _ --
r' HETTIE LANE I
'= "dCppgfvll�SG';E`'.Fip,.c
July 26,
Notary Public, State of Texas
My Commission Expires: o
Commission Number:_ ol>ti�I3 SQ/-7
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this of_ , 2008,
by Cliff J. Merritt as Land Manager of Chesapeake Exploration; L.L.C. on Sehalt of said
corporation.
Nota Public, State of Oklahoma
#07004805
My Commission Expires:
Commission Number: ,,'rF°ua+``6'
2 OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
EXHIBIT "A"
(Trinity Blvd. ROW)
6.086 acres, more or less, being:
Tract 1:
4.649 acres, more or less, being more particularly described in that certain Warranty Deed from
the City of Euless to the City of Fort Worth dated December 1, 1966, recorded at Volume 4340,
Page 553, Deed Records, Tarrant County, Texas;
Tract 2:
0.918 acres and 0.519 acres, more or less, being more particularly described in that certain Deed
Dedication from the City of Euless to the City of Fort Worth dated March 16, 2000, recorded in
Volume 14371, Page 330, Deed Records, Tarrant County, Texas.
OFFICIAL RECORD
3 CITY SECRETARY
FT.WORTH, TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/15/2008
DATE: Tuesday, July 15, 2008 REFERENCE NO.: L-14599
LOG NAME: 30TRINITY ROW
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., with a Bonus Amount of
$62,302.38 and a Twenty-Five Percent Royalty for Natural Gas Drilling Under Trinity Boulevard Right-of-
Way Located Just West of Raider Road
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement with a bonus of
$62,302.38 and a twenty-five percent royalty for natural gas drilling under 6.086 acres more or less of
City-owned properties located in Tarrant County known as Trinity Boulevard right-of-way 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.A A Trinity Boulevard
right-of-way is located just west of Raider Road.A A Acceptance of this lease agreement will reduce the
approved 500 miscellaneous mineral acres of City-owned parcels by 6.086 net mineral acres more or
Iess.A A
A request for bid proposals (RFP) for Trinity Boulevard ROW was advertised for three consecutive weeks
in the Fort Worth Star-Telegram, published on January 17, 24, and 31, 2008.
The following sealed bid for the gas lease was received and opened on February 7, 2008.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration, L.L.C. $ 10237.00 $ 62302.38 25%
The bid received was evaluated by staff and the City5ETMs mineral asset management consultant,
JPMorgan Chase.A A In addition to the lease bonus rate and royalties paid to the City, the bidders€TMs
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.A A The net
transfer to the City from JP Morgan Chase is estimated to be $59,187.26 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.A A 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.A A This lease is less than 40 acres therefore no M/WBE participation
Logname: 30TRINITY ROW Page I of 2
goal is required.A A
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 5 Mapsco 54W and 54X.
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.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C223 446100 201929990200 $62,302.38 C223 VARIOUS 201929990200 $3,115.12
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
1. 30TRINITY ROW.pdf (Public)
2. Exhibit A - Trinity Blvd ROW(2).doc (Public)
Logname: 30TRINITY ROW Page 2 of 2