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HomeMy WebLinkAboutContract 38391 CITY SECRETA CONTRACT NCS 3m � MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § L n�1 BE IT REMEMBERED that on the day of a, , 2009, a Paid Up Oil and Gas Lease was made and entered into by and between the CIT 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, LLC, 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 the Z day of FF LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC , an Oklahoma li ted liability compan By: By: Clif . Merritt Title: Assistant City Manager Its: Land a n a g e r ATTEST: _ LL__L� ap )�A a Acuthorizatioa City Secretary APPROVED AS TO FORM AND LEGALITY: B Assistant City Atto ey Date: �� 77 OFFICIALRECORD CITY SECRETARY FT.WORTH,TX 03-31 -09 PO4 :52 IN 02-03-09 A10:55 IN 1 ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF _ �an�-�►� § BEFORE ME, �_ �ce the undersigned notary public, on this day personally appearedQ, , 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 A""� day of 7,6L,:2"&, , 2009. Notary Public, State of Texas My Commission Expires: Commission Number:_ 6a _ ° = HETTIE LANE m'•, " MY COMMISSION �EXPIRES I STATE OF OKLAHOMA § COUNTY OF Ol M orrna § BEFORE ME, I 1A [,r Y(� the undersigned notary public, on this day personally appeared known to me to be the person whose name is subscribed to the foregoing instrument and acWhowledged 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_ 2009. "•• Public, tate of exas ��aE •.TRS''',-. My Commission Expires: 010055 ryp Intl Commission Number: 'anumuu OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX 2 Exhibit"A" 0.619 acres, more or less being described as; Being a portion of Tract 4, T.B. Taylor Survey, A-1539, in the City of Fort Worth, Tarrant County, Texas, more particularly described as follows: BEGINNING at the northwest corner of said Tract 4, said corner being 30.00 feet northerly of the northeast corner of Lot 1, Block 19, Westcliff Addition to the City of Fort Worth; THENCE in an easterly direction along the north line of said Tract 4, a distance of 150.0 feet to a point; THENCE in a southerly direction along a line 150.0 feet easterly of and parallel to the west line of said Tract 4 and the east line of Block 19, of said Westcliff Addition a distance of 180.0 feet to a point; THENCE in a westerly direction a distance of 150.0 feet to a point in the west line of said Tract 4, said point being the southeast corner of Lot 2, Block 19, of said Westcliff Addition; THENCE in a northerly direction along the west line of said Tract 4 and the east line of said Block 19 a distance of 180.0 feet to the place of beginning and containing 0.619 acres of land. ORICIAL RECORD' CITY�ECRETAR ORTH,TX City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/18/2007 DATE: Thursday, January 18, 2007 REFERENCE NO.: G-15588 LOG NAME: 30CITY LEASES SUBJECT: Authorize the Provision for Administrative Approval of Leases for Natural Gas Drilling under City-Owned Properties of Two Acres or Less in SizeA 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.A A 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 Iess.A A 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.A A Staff will report the negotiated lease bonuses and royalty to the City Council through the regular monthly gas lease report.A A 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: A A A A*A A A A City-owned property two acres or less that is not a City park A A A A*A A A A No surface use of any kind A A A A*A A A A No identified adverse impact to the surrounding neighborhood A A A A*A A A A Compliance with the City's gas drilling ordinance A A A A*A A A A Minimum bonus to be determined by current market rate A A A A*A A A A Minimum royalty of 25 percent A A A A*A A A A The distrubution of lease bonus and royalties will be in accordance with the revenue A A A A A A A A A A distribution policy approved by the City Council A A A A*A A A A 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. Logname: 30CITY LEASES Page 1 of 2 FISCAL INFORMATION / CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers 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: 30CITY LEASES Page 2 of 2