HomeMy WebLinkAboutContract 37600 CITY
CONTRACT No y
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT § pp
BE IT REMEMBERED that on the f -K-' day of - . 2008, a Paid Up
Oil and Gas Lease was made and entered into by and between thel 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.
tL
Executed this the day of 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, L.L.C.,
An Oklahoma limited liability corporation
By: �'er� o CasT� By: Cliff J. itt
Title: Assistant City Manager Its: Land Manager Mk A.
ATTEST- L_ g !s
Contract huthorizatioa
A J 1 1%Z,_.-
1,4yt City Jecretary 4
Date
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant City A mey
Date:
OFFICIAL RECORD
CITY SECRETARY
1 FT.WORTH,TX
• f
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF �n1,Q��` §
BEFORE ME, �1��_.m.tA— the undersigned notary public, on
this day personally appeared 2;g6,zg," gj, , 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.
Notary ublic, State of Texas
My Commission Expires: -7—,44,—Ac//
Commission Number: D069359/ l HETTIE LANE
—� � " "Ii COMMISSION EXPIRES
July 26,2011
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this of (,(S� ' 2008,
by Cliff J. Merritt as Land Manager of Chesapeake Exploration, L.L.C. on be if of said
corporation.
oJEN EL��OT, No Public, State of Oklahoma
0700480
My Commission Expires: E#XP.0511551
,5`
Commission
Number:
OFFICIAL RECORD
CITY SECRETARY
2 FT.WORTH,TX
r
EXHIBIT"A"
(East Regional Library)
4.92 acres, more or less, situated in that certain tract or parcel of land out of the P. E. Coleman Survey
Abstract 372, Tarrant County, Texas, being more particulary described by metes and bounds in that
certain Warranty Deed dated January 22, 1991 from ALDEN E. WAGNER, JR., TRUSTEE, ALDEN E.
WAGNER, JR. INDIVIDUALLY AND ALDEN E. WAGNER, SR., INDIVIDUALLY to THE CITY
OF FORT WORTH, A MUNICIPAL CORPORATION, Recorded in Volume 10156, Page 132, Deed
Records, Tarrant County, Texas, and that certain Special Warranty Deed dated May 31, 1994.
END OF EXHIBIT"A"
OFFICIAL RECORD
CITY SECRETARY
3 FT.WORTH, TX
Pagel of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/18/2008
DATE: Tuesday, March 18, 2008
LOG NAME: 30E REG LIBRARY REFERENCE NO.: L-14495
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas
Drilling Under 4.929 Acres More or Less of City-Owned Properties Located in Tarrant County,
Texas, Known as East Regional Library 2
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 4.929 acres more or less of City-owned properties located in Tarrant County, Texas, known as
East Regional Library 2 to Chesapeake Exploration, L.L.C., for a two-year primary term.
DISCUSSION:
On November 1, 2005, (M&C C-21123) Fort Worth City Council authorized the acceptance of a lease
agreement for natural gas drilling under the East Regional Library property located at 6301 Bridge Street
with Four Sevens Oil Co., Ltd., for a two-year term. The Lease was subsequently acquired by
Chesapeake Exploration, L.L.C., Due to lack of compliance with the lease terms, this lease was released
(Instrument No. D20724445) on November 16, 2007 and has been re-bid.
A request for bid proposals (RFP) for East Regional Library 2 was advertised for three consecutive weeks
in the Fort Worth Star-Telegram, published on December 20 and 27, 2007, and January 8, 2008.
The following sealed bid for the gas lease was received and opened on January 10, 2008:
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration, L.L.C. $7,136.00 $35,173.34 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 $33,414.68 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.
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/18/2008
Page 2 of 2
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 4 Mapsco 65 V.
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. The Finance Department will be responsible for further
distribution of the funds deposited according to the current financial policy.
TO Fund/Account/C enters FROM Fund/Account/Centers
GC10 446100 013010001000 $33,414.68
Submitted for City Manager's Office by: Fernando Costa (Acting) (6140)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/18/2008