HomeMy WebLinkAboutContract 37608 Y 9EC�RETA Y
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 , 2008, a Paid Up
Oil and Gas Lease was made and entered into by and between tO 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 then--' day of 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, L.L.C.,
An Oklahoma limited liability corporation
By: Fera ammo Cs-Ta By: Cliff J. Merritt
Title: Assistant City Manager Its: LandManager
MA.
ATTEST: L- i L\ss,&
Contract Authoriaatioz
ity ecretary
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Date
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant Ci A orney
Date:
OFFICIAL RECORD
CITY SECRETARY 1
FT.WORTH,TX
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF _Sums §
BEFORE ME, the undersigned notary public, on
this day personally appearedl'�, a , , 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 Public, State of Texas
My Commission Expires: D7 of roto// __ :T71
Commission Number: D o 'lv � �/—� I ;;:a A<:: HE7NE
MY CO dESJu
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this �LIyn' of_ , 2008,
by Cliff J. Merritt as Land Manager of Chesapeake Exploration, L.L.C. on be if of said
corporation.
NotakLKblic, State of Oklahoma
My Commission Expires: = `#07004305 '
Commission Number: =�` .7,77
'9jnmiwao"
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX 2
EXHIBIT"A"
(Northside Park)
12.0266 acres, more or less, being Lots A and B, Block 128H of the North Fort Worth Addition and all of
Blocks 2-5 of the Evans-Cambron Addition, Additions to the City of Fort Worth, Tarrant County, Texas,
more particularly described by metes and bounds in those certain Plats recorded in Volume 388-180, Page
4 and Volume 310, Page 86 of the Plat and Deed Records in Tarrant County, Texas.
END OF EXHIBIT"A"
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX 3
Pagel 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: 30NORTHSIDEPARK REFERENCE NO.: L-14558
SUBJECT:
Authorize Execution of a Lease Agreement with Chesapeake Exploration, L.L.C., with a Bonus
Amount of $134,060.51 and a 25 Percent Royalty for Natural Gas Drilling Under Northside Park,
Located South of Northwest 20th Street, West of Lagonda Avenue, and East of Homan Avenue
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a lease agreement for natural gas drilling
with a bonus of $134,060.51 and a 25 percent royalty under 12.0266 acres, more or less, of City-owned
properties located in Tarrant County, Texas, known as Northside Park located south of Northwest 20th
Street, west of Lagonda Avenue, and east of Homan Avenue 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 dedicated
parkland known as Northside 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. Northisde Park is located
south of Northweat 20th Street, west of Lagonda Avenue, and east of Homan Avenue. Acceptance of this
lease agreement will reduce the approved 500 miscellaneous mineral acres of City-owned parcels by
12.0266 net mineral acres, more or less.
A request for bid proposals (RFP) for Northside Park was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, published on February 14, 21, and 28, 2008.
The following sealed bid for the gas lease was received and opened on March 6, 2008:
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Chesapeake Exploration, L.L.C. $11,147.00 $134,060.51 25 Percent
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 less administrative and legal fees is estimated to be $127,357.48, more or less.
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 9/18/2008
PaL,e 2 of 2
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 MM/BE investor. This lease is less than 40 acres therefore no M/WBE 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 2, Mapsco 62J and N.
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 Parks and Community Services 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
C282 446100 801929990100 $127,357.48
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 9/18/2008