HomeMy WebLinkAboutContract 38553 CITY SECRETAr 3.
CONT, .. .�.,T NO
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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 Z day of A PR 1 (_ . 2009, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY 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 (day of A P 2 L , 2009.
LESSOR: LESSEE:
CITY OF FORT WORTH DALE PROPERTY SERVICES, L.L.C.
By: F&r h A�n �ILTB M% �R ) O
Title: Assistant City Manager Its: ?aesawp r4T
ATTEST: C aNaw
f�A " &�� Contract Authorization
City Secretary 0 1 'T 1O(i
Date
APPROVED AS TO FORM AND LEGALITY:
Y
Assistant City Att rney
Date:
OFFICIAL RECORD
CITYSECRETARY
Fr.WORTH,TX
Q5-08-09 A10:26 IN
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF Tom►rr an 7- §
BEFORE ME, _ Y&Tr-c L a n e the undersigned notary public, on
this day personally appeared F'� -no-ic�o C�osT 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
2009.
Notary Public, State of Texas
My Commission Expires: 9,7-,g I.
Commission Number: oo 6
E(.ANE
STATE OF TEXAS §
COUNTY OF DALLAS §
BEFORE ME, TVgj, / the undersigned notary public, on
this day personally appeared IY v. , 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 7-7 day of ,
2009.
Not ublic, Sta o exa
My Commission Expires:
Commission Number: RYAN REX BELLOMY
Notary Public,State of Texas
My Commission Expires
August 17, 2011
2
EXHIBIT A
25.738 acres, out of the E. Little Survey, Abstract No. 954, more particularly described as
follows:
METES & BOUNDS DESCRIPTION TRAIL DRIVERS PARK NORTH TRACT
Being a 26.890 acre tract of land situated in the E. Little Survey, Abstract Number 954, Tarrant
County, Texas, and being part of the tract of land described in the deed to the City of Fort Worth
recorded in Volume 1055, Page 586, Deed Records, Tarrant County, Texas, also being all of the
tract of land described in the deed to the City of Fort Worth recorded in Document Number
D206407073 said 26.890 acre tract of land being more particularly described as follows:
BEGINNING at the intersection of the southerly right-of-way line of NE 28th Street (a variable
width right-of-way) with the easterly right-of-way line of Guenther Avenue (a 60 foot wide
right-of-way), and being the northwest corner of the remainder of Block 6 of Diamond Hill and
addition to the City of Fort Worth according to the plat recorded in Volume 388, Page 21, Plat
Records, Tarrant County, Texas;
THENCE with the southerly right-of-way line of NE 28th Street and the northerly lines of the
remainders of Blocks 6, 7 and 8 of said Diamond Hill addition North 88°32'38" East a distance
of 1054.59 feet;
THENCE departing the southerly right-of-way line of NE 28th Street and said northerly lines
with the westerly lines of Lots 9 through 17 inclusive of Block 8 of said Diamond Hill addition
South 20°55'02" West at a distance of 447.78 feet passing a 1/2-inch iron rod found in the
northerly right-of-way line of Irion Avenue (a variable width right-of-way, 55.7 feet wide at this
point) said 1/2-inch iron rod found being the southwest corner of said Lot 17, continuing in all a
distance of 507.70 feet to the southerly right-of-way line of Irion Avenue, and being in the north
line of Lot 7 of Block 9 of said Diamond Hill addition;
THENCE with the southerly right-of-way line of Irion Avenue and the north line of said Lot 7
North 89°16'59" East a distance of 73.65 feet to the northeast corner of said Lot 7;
THENCE departing the southerly right-of-way line of rion Avenue and the north line of said Lot
7 South 20°55'02" West a distance of 298.26 feet;
THENCE South 24°37'50" West a distance of 586.80 feet to the common west corner of Lots 18
and 19 Block 11 said Diamond Hill addition, from which a 3/8-inch iron and bois d'arc stake
found for the most westerly northwest corner of said Lot 19 bears South 24°37'50" West a
distance of 19.13 feet;
THENCE with the common line of said Lots 18 and 19 South 65'22'10" East a distance of
140.72 feet to a 1/2-inch iron rod found in the northwesterly right-of-way line of Glendale
Avenue (a 60 foot wide right-of-way) for the common east corner of said Lots 18 and 19;
THENCE departing the common line of said Lots 18 and 19 with the northwesterly right-of-way
line of Glendale Avenue the following courses and distances:
South 24°33'21"West a distance of 92.49 feet;
South 72°35'38" West passing at a distance of 149.00 feet a 3/8-inch iron rod found for
the southwest corner of Lot 21 said Block 11, continuing in all a distance of 209.00 feet;
South 05023"09" East a distance of 6024 feet to the northerly line of the vacated 66 foot
wide Fort Worth Cotton Belt Railway right-of-way;
THENCE departing the northwesterly right-of-way line of Glendale Avenue with the northerly
line of said vacated Fort Worth Cotton Belt Railway right-of-way South 73004'51" West a
distance of 304.16 feet to the southeast corner of Lot 2 Block 4 of said Diamond Hill addition;
THENCE with the east lines of Lots 2 through 13 inclusive of said Block 4 North 01046'51"
East a distance of 613.55 feet to the common east corner of Lots 13 and 14 of said Block 4;
THENCE departing the east lines of said Lots 2 through 13 with the common line of said Lots 13
and 14 North 89'10'15" West a distance of 125.02 feet to a 1-inch pipe found in the easterly
right-of-way line of Peak Street (a 60 foot wide right-of-way), for the common west corner of
said Lots 13 and 14;
3
THENCE departing the common line of said Lots 13 and 14 with the easterly right-of-way line
of Peak Street North 01'46'5 1" East a distance of 102.91 feet to the southeasterly right-of-way
line of Irion Street (a 60 foot wide right-of-way at this point);
THENCE with the southeasterly right-of-way of Irion Street North 50°10'29" East a distance of
94.32 feet;
THENCE departing the southeasterly right-of-way of Irion Street North 38°52'00" West at a
distance of 60.00 feet passing the east corner of Lot 28 Block 5 of said Diamond Hill addition,
continuing with the northeast line of said Lot 28 in all a distance of 210.00 feet to the north
corner of said Lot 28;
THENCE departing the northeast line of said Lot 28 with the northwest lines of said Lot 28 and
Lot 29 of said Block 5 South 50°10'29" West a distance of 100.00 feet to the common west
corner of said Lot 29 and Lot 30 of said Block 5;
THENCE with the common line of said Lots 29 and 30 South 38°52'00" East a distance of
150.00 feet to the northwesterly right-of-way line of Irion Street;
THENCE departing the common line of said Lots 29 and 30 with the northwesterly right-of-way
line of Irion Street the following courses and distances:
South 49°49'09" West a distance of 52.49 feet;
North 88'18'18" West a distance of 78.76 feet;
THENCE departing the northwesterly right-of-way line of Irion Street North 01'40'13" East a
distance of 80.00 feet;
THENCE North 88°19'47" West a distance of 35.00 feet to the easterly line of Lot 2 of said
Block 5;
THENCE with the easterly lines of Lots 2 through 11 inclusive of said Block 5 the following
courses and distances:
North 01'40'13" East a distance of 13.93 feet;
North 06°24'27" West a distance of 475.06 feet to the south line of Lot 12 of said Block
5;
THENCE departing the easterly line of said Lots 2 through 11 with the south line of said Lot 12
North 83°05'03" East at a distance of 93.30 feet passing the westerly right-of-way line of
Glendale Avenue and the southeast corner of said Lot 12 departing the south line of said Lot 12
continuing in all a distance of 153.65 feet to the easterly right-of-way line of Glendale Avenue;
THENCE with the easterly right-of-way line of Glendale Avenue North 00°46'00" West a
distance of 297.38 feet to the POINT OF BEGINNING. Containing a computed area of
1,171,315 square feet or 26.890 acres.
4
METES & BOUNDS DESCRIPTION TRAIL DRIVERS PARK SOUTH TRACT
Being a 14.588 acre tract of land situated in the E. Little Survey, Abstract Number 954, Tarrant
County, Texas, and being part of the tract of land described in the deed to the City of Fort Worth
recorded in Volume 1055, Page 586, Deed Records, Tarrant County, Texas, said 14.588 acre
tract of land being more particularly described as follows:
BEGINNING at a 1/2-inch iron rod in concrete found in the southerly right-of-way line of
Brennan Avenue (a 60 foot right-of-way) for the common north corner of Block 17 of Diamond
Hill an addition to the City of Fort Worth according to the plat recorded in Volume 388, Page 21,
Plat Records, Tarrant County, Texas and the tract described in the deed to Deanna Lee Walker
recorded in Document Number D203457498, Deed Records, Tarrant County, Texas;
THENCE with the common line of said Block 17 and said Walker tract South 09°52'09" West a
distance of 723.58 feet to a 1/2-inch iron rod in concrete found for the southwest corner of said
Walker tract;
THENCE departing said common line with the westerly line of PARCEL #1 as described in the
deed to the City of Fort Worth recorded in Volume 4649, Page 854, Deed Records, Tarrant
County, Texas South 09°52'09" West a distance of 579.52 feet to the common line of Block 20
and Block 23 of said Diamond Hill addition;
THENCE departing the westerly line of said PARCEL #1 with the common line of said Blocks
20 and 23,North 80°07'51" West a distance of 415.00 feet;
THENCE North 09°52'09" East a distance of 32.50 feet to the southeast corner of Block 21 said
Diamond Hill addition and being in the northerly right-of-way line of an unnamed street (a 60
foot right-of-way);
THENCE with the northerly right-of-way line of an unnamed street and the southerly line of said
Block 21 the following courses and distances:
South 78°47'23"West a distance of 166.97 feet;
South 59°36'51" West a distance of 40.00 feet to a point in the easterly right-of-way line
of Perry Street(a 60 foot right-of-way) and the westerly line of said Block 21;
THENCE departing the northerly right-of-way line of an unnamed street and said southerly line
with the easterly right-of-way line of Perry Street and the westerly line of said Block 21 the
following courses and distances:
North 02°58'21"East a distance of 377.00 feet;
North 57°19'37" East a distance of 30.96 feet to a point in the southerly right-of-way line
of Peak Street(a 60 foot right-of-way);
THENCE departing the easterly right-of-way line of Perry Street continuing with the westerly
line of said Block 21 and the southerly and easterly right-of-way lines of Peak Street the
following courses and distances:
South 80°26'20"East a distance of 31.40 feet;
North 54'33'15"East a distance of 83.03 feet;
North 09°52'09" East a distance of 274.23 feet to the northwest corner of Lot 12 said
Block 21, and being in the southerly right-of-way line of an unnamed street;
THENCE departing the easterly right-of-way line of Peak Street and the westerly line of said
Block 21 with the northerly line said Lot 12 and the southerly right-of-way line of an unnamed
street South 80°07'51" East a distance of 119.59 feet to the easterly line of Block 16 of said
Diamond Hill addition;
5
THENCE with the easterly line of said Block 16 North 09°49'56" East passing at a distance of
300.00 feet a 5/8-inch iron with yellow cap marked "DOWDY" found for the common east
corner of said Lots 5 and 6, continuing in all a distance of 487.75 feet to a concrete monument
found in the southerly right-of-way line of Brennan Avenue and being the northeast corner of
said Block 16;
THENCE with the southerly right-of-way line of Brennan Avenue North 75°36'33" East passing
at a distance of 21.93 feet the northwest corner of the aforementioned Block 17 of said Diamond
Hill addition continuing with the southerly right-of-way line of Brennan Avenue and the
northerly line of said Block 17 in all a distance of 368.78 feet;
THENCE continuing with the southerly line of Brennan Avenue and the northerly line of said
Block 17 South 71'58'23" East a distance of 80.33 feet to the POINT OF BEGINNING.
Containing a computed area of 635,160 square feet or 14.58 acres.
Save and Except:
A 15.74 acre tract of land, more or less, being situated in the E. Little Survey, A-954, in the City
of Fort Worth, Tarrant County, Texas and being comprised of all of Block 17, save and except
the eastern most 60 feet, all of Block 20, save and except the eastern most 60 feet and all of
Block 21 of the Diamond Hill Addition, an addition to the City of Fort Worth, according to the
Plat dated July 23, 1912, recorded in Volume 388, Page 21, Deed Records, Tarrant County,
Texas, being more fully described by Metes and Bounds as follows:
BEGINNING: at a 5/8 inch iron rod being in southern right-of-way line of Brennan Road and
being a northeastern corner of said Block 17 (Y = 408,751.91, X = 2,051,117.10), bearing N
34042'22" W, 4487.77 feet from the Southeast corner of said E. Little Survey;
THENCE: South 10°23'50" West for a distance of 724.31 feet to a 1/2 inch rod round;
THENCE: South 1092'44" West for a distance of 592.06 feet to a point for corner;
THENCE: North 89°23'00" West for a distance of 382.80 feet to a point for corner;
THENCE:North 89°54'00" West for a distance of 150.10 feet to a point for corner;
THENCE: South 60°20'00" West for a distance of 84.39 feet to a point for corner;
THENCE: North 03°26'33" East for a distance of 478.50 feet to a point for corner;
THENCE: North 57°47'49" East for a distance of 30.95 feet to a point for corner;
THENCE: South 79°58'08" East for a distance of 30.40 feet to a point for corner;
THENCE:North 55°01'28" East for a distance of 83.02 feet to a point for corner.
THENCE:North 10°20'21" East for a distance of 274.19 feet to a point for corner;
THENCE: South 79039'39" East for a distance of 119.57 feet to a point for corner;
THENCE: North 1098'08" East for a distance of 520.59 feet to a point for corner;
THENCE: North 76°04'45" East for a distance of 375.21 feet to a point for corner;
THENCE: South 71'24'39" East for a distance of 74.45 feet to a point for corner;
THENCE: South 10°23'50" West for a distance of 31.46 feet to the POINT OF BEGINNING
containing 15.74 acres, more or less.
6
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/7/2009
DATE: Tuesday, April 7, 2009 REFERENCE NO.: C-23428
LOG NAME: 06TRAIL DRIVERS
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., in the Amount of
$128,690.00 for Natural Gas Drilling Under 25.738 Acres of City-Owned Property Known as Trail Drivers
Park North Tract Located at 1700 Northeast 28th Street
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a Lease Agreement for natural gas
drilling under 25.738 acres, more or less, of City-owned properties located in Tarrant County, Texas,
known as the Trail Drivers Park North Tract at 1700 Northeast 28th Street to Chesapeake Exploration,
L.L.C., for a two year primary term.
DISCUSSION:
On September 19, 2006, (M&C L-14251) Fort Worth City Council authorized the conversion of dedicated
parkland known as Trail Drivers Park for the purpose of subsurface drilling and extraction of natural gas.
On January 9, 2007, (M&C C-21927) Fort Worth City Council approved the acceptance of a Lease
Agreement (Lease) for a two year term with Dale Resources, L.L.C., for natural gas drilling under the
36.40 acres, more or less, of Trail Drivers Park. The lease was executed and effective January 24, 2007.
Chesapeake Exploration, L.L.C, subsequently acquired the lease from Dale Resources, L.L.C. The Lease
was amended on April 15, 2008, to include an additional 5.078 mineral acres, more or less, making the
total acreage 41.478 acres.
A portion of Trail Drivers Park, 15.74 acres of the south portion of the park, was included in the Hudson
Unit so that drilling could commence. The remaining 25.738 acres of the north portion of the park were not
included in a drilling unit and the Lease expired on January 24, 2009. Per the Lease terms, upon
expiration of the lease, portions of the property which are not included in a producing drill unit become
available for lease again.
Chesapeake Exploration, L.L.C., has offered to re-lease the 25.738 acre north portion of Trail Drivers Park
again from the City and pay an additional bonus of$5,000.00 per acre, $128,690.00 total, for an additional
two year lease term. The royalty percentage would be 25 percent which is consistent with the original
lease.
Staff and the City's mineral asset management consultant, Midkiff Oil and Gas, evaluated the offer and
Lease terms and recommend acceptance of the lease for the 25.738 acre north portion of Trail Drivers
Park per the terms outlined above and because no other gas company has an interest in the area directly
surrounding this property.
In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract No.
37980, $7,791.05 of the above total is for consultant fees, resulting in a net transfer to the City of
Logname: 06TRAIL DRIVERS Page I of 2
$122,898.95.
This Lease is less than 40 acres so no M/WBE participation goal is required.
Revenues from this Lease will be administered in accordance with the current City Council Policy on Gas
Revenues.
The property is located in COUNCIL DISTRICT 2, Mapsco 62H.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that the Planning and Development Department is
responsible for the collection and deposit of funds due the City under this lease.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929990100 $128,690.00 C282 531260 801929990100 $5,791.05
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
1. c282 unspecified.doc (CFW Internal)
2. TRAILDRIVERSPARK MC map.pdf (Public)
Logname: 06TRAIL DRIVERS Page 2 of 2