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HomeMy WebLinkAboutContract 38320 4 OITY SECRETARY Cha CONTRACT NO MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § BE IT REMEMBERED that on the 25 day of EB" , 2009, a Paid Up Oil and Gas Lease was made and entered into by and between the CITE. OF FORT WORTH, a home rule municipal corporation of the State of Texas, 1000 Throckmorton Street, Fort Worth, Texas 76102, hereinafter called "(LESSOR)"; and DALE PROPERTY SERVICES, L.L.C, 2100 Ross Avenue, Suite 1870, LB-9, Dallas, Texas 75201, 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 ZS day of A 2009. LESSOR: LESSEE: CITY OF FORT WORTH DALE PROPERTY SERVICES, L.L.C. By: B . M�Y.E TA�PFto Title: Assistant City Manager Its: �� T ATTEST1ES1 . �7)A A I±1)b, V�_ City Secretary APPROVED AS TO FORM AND LEGALITY: Assistant City Att ey Date: OFFICIAL RECORD CITYS�CRETARY Contract �,�:thorizatio�. FT.WORTH,TX Oate 03-12-09 P-1 :55 IN 02-27-09 A09 :44 IN 1 ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF § BEFORE M8, the undersigned notary public, on this day personally appeared �Qy, � -�, , 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. �t GIVEN under my hand and seal of office this day of , 2009. Notary Public, State of Texas My Commission Expires: ; wok;fi HErrIE LANE Commission Number: _ -9 , con+Jui2y 2s c 1 EF;P�"nEs c,2. 1 STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, _ the undersigned notary public, on this day personally appeared"Vhl" Tot 1 , 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 #& etc 2009. fr.. Not ublic, S of Te My Commission Expires: 1�, 20 1 Commission Number: ..o'01 p e'' RYAN REX BELLOMY '. Notary Public,state of Texas ' = My Commission Expires August 17, 2011 2 EXHIBIT A 0.750 ACRES. MORE OR LESS, OUT OF THE S.K. Smith Survey, A-1417, more particularly described by metes and bounds in that certain Deed dated January 20, 1954 by and between T.S. Christopher, Trustee, as Grantor and the City of Fort Worth, as Grantee, recorded in Volume 2691, Page 596 of the Deed Records, Tarrant County, Texas. 3 M&C Review Page I of 2 CITY COUNCIL AGENDA FLIRT IVO RTII COUNCIL ACTION: Approved on 1/18/2007 DATE: 1/18/2007 REFERENCE NO.: G-15588 LOG NAME: 30CITY LEASES CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO SUBJECT: Authorize the Provision for Administrative Approval of Leases for Natural Gas Drilling under City-Owned Properties of Two Acres or Less in Size RECOMMENDATION: It is recommended that the City Council authorize the City Manager to approve and execute leases for natural gas drilling under City-owned properties that are two acres or less in size. 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. Most of these properties range from 3 to 800 acres or more in size. From time to time, the City is asked to lease isolated City-owned properties in various locations that are two acres or less. City staff is recommending that gas leases for these properties be administratively approved for natural gas drilling leases after evaluation of the gas company's drilling plan, reputation, financial status, project team, and compliance history by engineering staff and the City's mineral asset management consultant, JPMorgan Chase. Staff will report the negotiated lease bonuses and royalty to the City Council through the regular monthly gas lease report. The leases would be executed through an internal administrative process involving the Engineering Department, the City Attorney's Office and the City Manager's Office. Requirements and guidelines to be followed in determining eligibility for inclusion in the Adminstrative Gas Lease Process are as follows: * City-owned property two acres or less that is not a City park * No surface use of any kind * No identified adverse impact to the surrounding neighborhood * Compliance with the City's gas drilling ordinance * Minimum bonus to be determined by current market rate * Minimum royalty of 25 percent http://apps.cfwnet.org/council_packet/mc_review.asp?ID=7045&councildate=I/18/2007 3/13/2009 M&C Review Page 2 of 2 ' The distrubution of lease bonus and royalties will be in accordance with the revenue distribution policy approved by the City Council ' No MWBE goal will be required due to the size of the parcels 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 and royalty revenue until the City requests wire transfer of the funds. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers 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 http://apps.cfwnet.org/council_packet/mc review.asp?ID=7045&councildate==I A 8/2007 3/13/2009