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Home My WebLink AboutContract 39037 CITY SECRETARY e� CONTRACT X10. 3163 MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § BE IT REMEMBERED that on the 3 day of Pq V G %JS r , 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 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 3 day of j Lys u 5T , 2009. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC , an Oklahoma limit liability company By: By:Cliff 1Y. Merritt Title: Assistant City Manager Its:L a n d Manager ATTEST:r�� Contract Authorization City Secret 11 a 3 I b 5 Date APPROVED AS TO FORM AND LEGALITY: By: `' Assistant Cit Z�orney Date: OFFICIAL RECORD CIN SECRETARY WORTH, TX 1 - - 9 - 2 ' ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF TARRANT 9 BEFORE ME, S the undersigned notary public, on this day personally appeared F , 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 (il.5 2009. otary Public, State of Texas ti's. k=. My Commission Expires: =• EVOMA DAMELSMY COMMISSION EXPIRES Commission Number: ''r•..• Ady to,2o13 STATE OF OKLAHOMA § COUNTY OF § BEFORE ME, 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 acknowledged that (s)he has executed the same for the purposes and consideration therein expressed. GIVEN under my hand and seal of office this 11L day of T11 , 2009. 'A 'Aauv� (� Notary Public, State of Oklahoma My Commission Expires: _ "0e0+ooss Commission Number: 9� ��Op oK�P as �amxna` 2 EXHIBIT A 93.769 acres of land, more or less, described in the following four (4) tracts: 43.003 acres of land, more or less, being a tract of land out of the J. Davis Survey, Abstract No. 418 and the J. Van Riper Survey, Abstract 1590, being more particularly described by metes and bounds in that certain Deed dated July 17, 1909, by and between Ed Seibold, as Grantor, and the City of Fort Worth as Grantee, recorded in Volume 343, Page 228, in the Deed Records of Tarrant County, Texas 45.204 acres of land, more or less, being a tract of land out of the J. Davis Survey, Abstract No. 418 and the J. Van Riper Survey, Abstract 1590, being more particularly described by metes and bounds in that certain Deed dated March 29, 1926, by and between G.W. Seibold and wife, Bessie Seibold and C.F. Seibold and wife, Carrie D. Seibold, as Grantors and City of Fort Worth as Grantee, recorded in Volume 914, Page 472, in the Deed Records of Tarrant County, Texas. 5.312 acres of land, more or less, being a tract of land out of the J. Davis Survey, Abstract No. 418, being more particularly described by metes and bounds in that certain Deed dated January 9, 1913, by and between John B. Pope and wife, Allie Pope, as Grantors and the City of Fort Worth as Grantee, recorded in Volume 416, Page 187, in the Deed Records of Tarrant County, Texas. 0.25 acres of land, more or less, being a tract of land out of the J. Davis Survey, Abstract No. 418, being more particularly described by metes and bounds in that certain Deed dated June 28, 1933, by and between Clyde A. Watkins, as Grantor, and the City of Fort Worth Park Board, as Grantee, recorded in Volume 1196, Page 586, in the Deed Records of Tarrant County, Texas. (Sycamore Park) 3 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/28/2009 DATE: Tuesday, July 28, 2009 REFERENCE NO.: C-23689 LOG NAME: 06SYCAMORE PARK 0062040 SUBJECT: Approve the Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., in the Amount of $263,772.02 for Natural Gas Drilling Under 93.769 Acres of City-Owned Properties Known as Sycamore Park Located at 2525 East Rosedale, South of Vickery Boulevard, West of South Beach Street, North of Rosedale Street and East of Sycamore Terrace RECOMMENDATION: It is recommended that the City Council approve the acceptance of a Lease Agreement for natural gas drilling under 93.769 acres of City-owned properties known as Sycamore Park to Chesapeake Exploration, L.L.C., for a two year primary term. DISCUSSION: On April 14, 2009, (M&C L-14734) the City Council authorized the conversion of Sycamore Park for subsurface drilling and the extraction of natural gas from an off site location. On February 19, 2008, (M&C L-14472)the City Council authorized City staff to advertise a Request for Bid Proposals (RFP) from private companies to drill for natural gas under 5,422 estimated mineral acres of City-owned properties, including 500 acres of miscellaneous parcels and right of way. Sycamore Park is located at 2525 East Rosedale Street, south of Vickery Boulevard, west of South Beach Street, north of Rosedale Street and east of Sycamore Terrace. Acceptance of this Lease Agreement will reduce the approved 500 miscellaneous mineral acres of City-owned parcels by 93.769 net mineral acres, more or less. A RFP for Sycamore Park was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on May 28, 2009, June 4, 2009, and June 11, 2009. The following sealed bid for the gas lease was received and opened on June 18, 2009. Lease Total Percent Bidder Bonus/Acre Lease Bonus Royally Chesapeake Exploration, L.L.C. $2,813.00 $263,772.02 25 The bid received was evaluated by staff and the City's Mineral Management Consultant, Midkiff Oil and Gas. In addition to the lease bonus rate and royalties paid to the City, the bidder's drilling plan, reputation, financial status, project team and compliance history were also evaluated. Timely award and execution of this lease will allow for inclusion of these properties in the drilling unit currently being formed. In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract No. 37980, the net transfer to the City is estimated to be$258,496.58, more or less. The City has established a Minority Women Business Enterprise (M/WBE) participation goal of three percent on City-owned property of 40 acres or more without an investment goal. On leases of City-owned property of 700 acres or more, the City has established an option of either a three percent M/WBE goal or http://apps.cfwnet.org/ecouncil/printmc.asp?id=12022&print=true&DocType=Print 7/28/2009 Page 2 of 2 the inclusion of an M/WBE investor. Chesapeake Exploration, L.L.C., has agreed to meet the required M/WBE participation goal of three percent. Revenues received from this lease will be administered in accordance with the current City Council Policy on Gas Well Revenues. The Property is located in COUNCIL DISTRICT 8, Mapsco 77M and 78J. FISCAL INFORMATION I 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 agreement. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers C282 446100 801929990100 $263.772.02 C282 531260 801929990100 $5,275.44 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. Accounting records m&c 06SYCAMORE PARK 0062040.pdf (CFW Intemal) 2. Exhibit 1.pdf (Public) http://apps.cfwnet.org/ecouncil/printrnc.asp?id=12022&print—true&DocType=Print 7/28/2009 MAYOR AND COUNCIL COMMUNICATION MAP SYCAMORE PARK R*. I REQUEST AUTHORIZATION TO APPROVE ACCEPTANCE OF LEASE AGREEMENT WITH CHESAPEAKE OPERATING, L.L.C. y W . t Y Vic- k e ry SEMINARY FEED( - I W ' A LIFOR AN rte ` Y 1!' IJ 0 3,850 7,700 15,400 Feet DETAIL SHOWING THE PROJECT LOCATION I , , I , , , I (NOT TO SCALE)