HomeMy WebLinkAboutContract 37637 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING
INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN
REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:
YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
AMENDMENT TO OIL AND GAS LEASE
Reference is hereby made to that certain Oil and Gas Lease (hereinafter referred to as
"Lease") dated the October 10, 2007 by and between City of Fort Worth, as Lessor, and
Chesapeake Exploration, L.L.C., as Lessee, whose address is P.O. Box 18496, Oklahoma City,
Oklahoma 73154, such lease is recorded in Document Number D207398919 of the Public
Records of Tarrant County, Texas covering the following described lands located in Tarrant
County, Texas, to wit:
20.738 acres of land,more or less as described in Exhibit A attached to said Lease.
Whereas it is the desire of said Lessor and Assignee to amend said Lease in order to
correct the legal description provided for in the Lease.
NOW THEREFORE, the undersigned do hereby amend Exhibit "A" as written in the
Lease and add the following tract of land to said Exhibit"A":
2.27 acres, more or less,being a portion of the W.W.Wheat Survey,situated about 1 '/:miles N 17 E
from the Courthouse in Tarrant County,Texas and embracing a portion of the third tract described
in Volume 1210,Page 121.
Beginning at a point in the south line of said Wheat Survey S. 89 degrees 44' East 209.8 feet from its
southwest corner. Thence,along said line,S.89 degrees 44' East 206 feet to the southeast corner of
said City of Fort Worth tract. Thence East 209 feet from its southwest corner. Thence,along said
line S 89 degrees 44' East 206 feet to the southeast corner of said City of Fort Worth tract. Thence N
13 degrees 34' West 150.7 feet to an iron pipe. Thence N.28 degrees 53'west 407'/2 feet to an iron.
Thence N.65 degrees 02' west 75 feet to a point in the northeast right of way of the T.&P.R.R.
Thence along said right of way southwesterly 218 feet. Thence S.28 degrees 53' East 290 feet; thence
S. 13 degrees 34' east 74'/:feet to the place of beginning and containing 2.27 acres.
NOW THEREFORE IN CONSDERATION of the above and the receipt to valuable
and adequate consideration,the undersigned do hereby ratify, adopt and confirm said Lease as
hereby amended, as a valid and subsisting Lease and the undersigned Lessor does hereby grant,
demise, lease and let unto Chesapeake Exploration, L.L.C., the present owner of said Lease, the
premises described above, subject to and in accordance with all of the terms and provisions of
said Lease as hereby amended.
This agreement shall be binding upon and inure to the benefit of the parties hereto, their
respective heirs, legal representatives, successors and assigns.
EXECUTED the—�day of , 2008, but for all purposes effective October 10, 2007.
Lessor:
City of Fort Worth Al ted by: ,
Fernando Costa,Assistant City Manager
Marty Henmit S"l "y
ATTEST: Contract Authoriaatioa
Chesapeake Lease Amendment Date
1
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
APPROVED AS TO FORM AND LEGALI T Y:
Date: V
Assignee:
Chesapeake Exploration,L.L.C.,as Successor in Interest to
Chesapeake Exploration Limited Part rship
An Oklahoma Limited Liability Co pany
:
B u 4 Ic
Y
Henry J.Hood,Sr.Vice Presi ent—Land and Legal & General Counsel
STATE OF TEXAS
COUNTY OF TARRANT
BEFORE ME,the undersigned, a Notary Public, on this day personally appeared Fernando Costa,
Assistant City Manager, known to me to be the person whose name is subscribed to the foregoing
instrument and,that(s)he has executed the same for the purpose and consideration therein expressed.
GIVEN MY HAND AND SEAL OF OFFICE THIS_7 day of 92008.
IHETTIEMY Notary Public State of Texas
,f,F
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
Before me,the undersigned, a Notary Public in and for said County and State, on this - _
day of 0 � , 2008, personally appeared Henry J. Hood, Senior Vice President—Land and Legal
&General unsel of Chesapeake Exploration,L.L.C., an Oklahoma Limited Liability Company,to
me known to be the identical person who subscribed the name of the maker thereof to the foregoing
instrument and acknowledged to me that he executed the same as his free and voluntary act and deed and
as the free and voluntary act and deed of such corporation, for the uses and purposes therein set forth.
Given under my hand and seal the day and year last above written.
Notary Public O lahoma
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2 CITY SECRETARY
FT.WORTH,TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/10/2007
DATE: Tuesday, July 10, 2007 REFERENCE NO.: **L-14343
LOG NAME: 30LITTLEGILMORE
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration Limited Partnership for Natural
Gas Drilling under 20.738 acres, more or less, of City-Owned Properties Located in Tarrant County, Texas,
known as 5EoeW. H. Little Survey & T. C. Gilmore Estates Addition 5E" 20.738 Acres"
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 20.738 acres, more or less, of City-owned properties located in Tarrant County known as
5EoeW. H. Little Survey & T. C. Gilmore Estates Addition 5E" 20.738 Acresa€to Chesapeake Exploration
Limited Partnership for a two-year 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 The W. H. Little Survey
& T. C. Gilmore Estates Addition 5E" 20.738 Acres lease is located west of I-35 between Cold Springs
Road and the Trinity River just south of Northside Drive.A Acceptance of this lease agreement will reduce
the approved 500 miscellaneous mineral acres of City-owned parcels by 20.738 mineral acres more or
less.
A request for bid proposals (RFP) for 5EoeW. H. Little Survey & T. C. Gilmore Estates Addition 5E" 20.738
Acresa€was advertised for three consecutive weeks in the Commercial Recorder, published on May 10,
May 17 and May 24, 2007.
The following sealed bid for the gas lease was received and opened on May 31, 2007.
Bidder Lease Total Lease %
Bonus/Acre Bonus Royalty
Chesapeake Exploration Limited $ 6675.00 $ 138426.15 25
Partnership
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 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.A The net transfer to the City less administrative
and legal fees is estimated to be $131,504.84, more or less.
Logname: 30LITTLEGILMORE Page 1 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.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 MAA/BE investor.A This lease is less than 40 acres therefore no M/WBE participation goal
is required.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the Capital Projects
Reserve Fund.
The Property is located in COUNCIL DISTRICT 2, Mapsco 63 P.
FISCAL INFORMATION / CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds
due the City under this agreement.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GC10 446100 013010001000 $131,504.84
CERTIFICATIONS:
Submitted for City Manager's Office by: Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
No attachments found.
Logname: 30LITTLEGILMORE Page 2 of 2