HomeMy WebLinkAboutContract 38442 CITY SECRF a,
CONTRACT NO. .�3NAa4
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the ZSR''day ofd ✓' , 2009, a Paid Up
Oil and Gas Lease was made and entered into by and between the CIT11 OF FORT WORTH, a
home rule municipal corporation of the State of Texas, 1000 Throckmorton Street, Fort
Worth, Texas 76102, hereinafter called "(LESSOR)"; and FOUR SEVENS ENERGY CO.,
LLC, 201 Main Street, Suite 1455, Fort Worth, Texas 76102, 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 Spay of l'v , 2009.
LESSOR: LESSEE:
CITY OF FORT WORTH FOUR ENS E Y CO, LLC
s ,
By: By:
Title: Assistant City Manager Its•
ATTEST:
y V\
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By: � _
Assistant City A rney
Date: 9--2r-0.7
OFFICIAL RECORD
WYSECRETARY
FT.WORTH,Tx
Contract Authorizatiox
il �gld-,
Date
04-16-09 A09:27 IN
02-27-09 A08 :43 IN
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, % p ,_ the undersigned notary public, on
this day personally appeared -�,a1 �� 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.
4t
GIVEN under my hand and seal of office this day of ,
2009.
Notary Pub ic, ate of Texas
My Commission Expires: _ HETTIE LANE
Commission Number: MY COMMISSION EXPIRES
*� July 26,2011
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, I Pav 1'd e YD'S the undersigned notary public, on
this day personally appeared kq(Q 1-4, <LkL, , 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 ZSday ofGfo✓
2009.
Notary Public, State of Texas
My Commission Expires:
Commission Number:
1rpV PUB
DAVID R. MOSS
MY COMMISSION EXPIRES
OCTOBER 19,2010
GF
2
EXHIBIT A
1.213 acres of land,more or less, out of the E. Wilburn Survey, A-1679, being further described as
follows:
Lot A., Block 19, Highland Homes Addition to the City of Fort Worth, Tarrant County,
Texas, according to plat recorded in Volume 388-46, Page 826, Deed Records of Tarrant
County, Texas.
r M&C Review Pagel of 2
CITY COUNCIL AGENDA FORTORTII
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=1/18/2007 4/16/2009
M&C Review Pane 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 F u nd/Accou nt/C enters
Submitted for City Manager's Office-b 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 rcview.asp?ID=7045&councildate=l/l8/2007 4/16/2009