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CONTRACT
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MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the 5 fday ofv, , 2009, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY + 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 EDIT"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 ��lay of o_ , 2009.
LESSOR: LESSEE:
CITY OF FORT WORTH FOUR SEV S ENERG O, LLC
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By: By:
Title: Assistant City Manager Its:
ATTEST:
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City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant City orney
Date: IL
contract Authorization OFFICIALRECORD
g I d-7 CITY SECRETARY
Date
FT.WORTH,TX
1 04-16-09 A09:28 IN
02-27-09 A08 :42 IN
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned notary public, on
this day personally appeared�Q �r , 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 o25 day of ,
2009.
Notary Public, State of Texas
My Commission Expires:
Commission Number: H�rrtEuwE
....
MY COMMISSION EXPIRES
y July 26,2011
'.;;of ie4,•'
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, av i'- the undersigned notary public, on
this day personally appeared , known to me to be the person whose
name is subscribed to the foreg ing 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
a
2009.
c
Notary Public, State of Texas
My Commission Expires:
Commission Number:
1pY PV9
:° 'rte DAVID R.MOSS
�'•'•; jy MY C0�4VIISSION EXPIRES
2
EXHIBIT A
0.607 ACRES. MORE OR LESS, out of the Peterson Pate and the Hays Covington Surveys, situated
about 6 miles South, 80 deg. West from the Court House in Tarrant County, Texas, and embracing
portions of the first and second tracts described as the third parcel in the deed from Loan Oak Land
Company to Amon G. Carter, dated December 30, 1935, recorded in Volume 1298, Page 2 of the Deed
Records,Tarrant County, Texas.
Beginning at the Southeast corner of the said first tract, the Northeast corner of the second tract, in the
South line of the said Pate Survey, the North line of the said Covington Survey, and 647 varas from the
Southwest corner of the said Pate Survey which is the Southeast corner of the J.R. Pan-ner Survey, a stone
for the corner;
Thence South 41.5 feet to an iron in the North line of the former Weatherford Road, now known as
Calmont Street;
Tthence South 88 degrees, 21 minutes West along said North line 200 feet to an iron;
Thence North 151.4 feet to a stake;
Thence South 80 degrees 44 minutes East 202.5 feet to a stake in the East line of the said first tract;
Thence South 71.6 feet to the place of beginning.
3
M&C Review Page 1 of 2
CITY COUNCIL AGENDA FORTWMOrRTII
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&counciIdate=l/18/2007 4/16/2009
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 ireview.asp?ID=7045&councildate=1/18/2007 4/16/2;009