HomeMy WebLinkAboutContract 37602 CITY SECRETAR? . O�
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the day of Szpj , 2008, a Paid Up
Oil and Gas Lease was made and entered into by and between tQ 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.
&d�ay
Executed this the of , 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, L.L.C.,
An Oklahoma limited liability corporation
By: f7ernaando C„�' By: Cli f J. 4dritt
Title: Assistant City Manager Its: Land Manager
ATTEST:
411
� . City ecretary contract Authorization
l �xl�x
APPROVED AS TO FORM AND LEGALITY:
Assistant City City Att rney p
Date: �7-12"e—o 0
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX 1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF
BEFORE ME,— ,; 0� the undersigned notary public, on
this day personally appeared ��na� ��- ��,�7— , 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 /,S-Pt day of o ,
2008.
HETTIE LANE
1
July 2s.2oi1 Notary Public, State of Texas
My Commission Expires:
Commission Number: pp/
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 be if of said
corporation.
`eWl�t�L'L
�J�EN EL T,� Notary ublic, State of Oklahoma
.SraO1aR l-
-` #070048051
EXP.OSII5I'I t
My Commission Expires: N.'..
Commission Number: %,F'OF '
R
IAL RECORD SECRETARYWORTH,TX
2
EXHIBIT"A"
(Meadowbrook Water Tank)
5.648 acres, more or less, situated in that certain tract or parcel of land out of the William Mann Survey
Abstract 995 and the Edward Taylor Survey Abstract 1561, Tarrant County, Texas, being more
particulary described by metes and bounds in that certain Warranty Deed dated August 4, 1982 from
HERMAN J. SMITH to THE CITY OF FORT WORTH, A MUNICIPAL CORPORATION, Recorded in
Volume 7347, Page 1002, Deed 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 3/18/2008
DATE: Tuesday, March 18, 2008
LOG NAME: 30MEADOWBROOK REFERENCE NO.: L-14496
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas
Drilling Under 5.648 Acres More or Less of City-Owned Properties Located in Tarrant County,
Texas, Known as Meadowbrook Water Tank 2
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 5.648 acres more or less of City-owned properties located in Tarrant County, Texas, known as
Meadowbrook Water Tank 2 to Chesapeake Exploration, L.L.C., for a two-year primary term.
DISCUSSION:
On November 1, 2005, (M&C C-21125) Fort Worth City Council authorized the acceptance of a lease
agreement for natural gas drilling under the Meadowbrook Water Tank property located at Bridge Street
north of 1-30 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. D20742444) on November 16, 2007 and has been re-bidden.
A request for bid proposals (RFP) for Meadowbrook Water Tank 2 was advertised for three consecutive
weeks in the Fort Worth Star-Telegram, published on December 20 and 27, 2007, and January 3, 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. $7,178.00 $40,541.34 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 $38,514.28 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 66 S.
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 Water Department will be responsible for further
distribution of the funds deposited according to the current financial policy.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE45 446100 0601000 $38,514.28
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 9/18/2008