HomeMy WebLinkAboutContract 40294 CITY SECRETARY
CONTRACT NO,
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the _ day of M A , 2010, 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-a day of /V1 A Y ,2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC, an
Oklahoma limit liability company
By: Fernando Costa By: C f f f 117. Merritt
Title: Assistant City Manager Its: Land Manager
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APPROVED
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APPROVED AS TO FORM AND LEGALIT11� 4SQa�'
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Assistant City Atto ey Contract Authorization
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N OFFICIAL RECORD
CITY SECRETARY
IORTH,TX
06-09-10 A09:47 IN
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ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned, a notary public, on this day personally appeared
Fernando Costa, known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged that he has executed the same for the purposes and consideration
therein expressed. gg
GIVEN under my hand and seal of office this- day of M ,
2010.
4tary Public, State of Texas
My Commission Expires: ......,
Commission Number:' " EV MIADANEXPI
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MY COMMISSION EXPIRES
My 10,2013
STATE OF OKLAHOMA §
COUNTY OFOH/AhbrKA,c,(,Iff §
BEFORE ME, the and rsigned, a notary public, on this day personally appeared
T.
- , known to me to be the person whose name is
subscribed to the foregoing instrument Ad 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 -M ,
2010. V/
N 'ry, ,, No Public, State of Oklahoma
1108010055
My Commission Expires
Commission Number:
OFFICIAL RECORD
CITY SECRETA`.`."
'B RTH. TX
2
EXHIBIT A
30.02 acres, more or less, being a part of Block 3, as described in Vol. S, Page 253, District
Court Minutes of Tarrant County, Texas, a part of the G. J. Assabranner Survey, Abstract
Number 7, and being more particularly described as follows:
Beginning in the centerline of Bowman Springs Road, being 733.3 feet South 89 degrees 54
minutes West of the Northwest corner of Block 1 as described in Vol. S, Page 253, District Court
Minutes of Tarrant County, Texas; thence South 50 degrees 04 minutes East 238.93 feet; the
beginning of a curve with a radius of 1027.25 feet, and around the arc of said curve 388.59 feet,
the end of said curve and point of compound curvature with a second curve to the right with a
radius of 592.48 feet, and around the arc of said second curve 286.63 feet, the end of said second
curve; thence South 0 degrees 40 minutes East 706.49 feet; thence South 80 degrees 32 minutes
West 89.79 feet, the beginning of a curve to the right with a radius of 636.43 feet, and around the
arc of said curve 103.89 feet, the end of said curve; thence South 89 degrees and 53 minutes
West 460 feet, the beginning of a curve to the right with a radius of 402.96 feet, and around the
arc of said curve 629.75 feet, the end of said curve; thence North 0 degrees and 34 minutes West
415 feet, the beginning of a curve to the right with a radius of 640.95 feet, and around the arc of
said curve 430.46 feet, the end of said curve; thence North 37 degrees 55 minutes East 69.1 feet,
the beginning of a curve to the left with a radius of 238.08 feet, and around the arc of said curve
160.16 feet, the end of said curve; thence North 0 degrees 38 minutes West 40 feet to the
centerline of said Bowman Springs Road; thence with the centerline of Bowman Springs Road
North 89 degrees and 54 minutes East 324.63 feet to the place of beginning.
(Village Creek Park)
OFFICIAL RECORD
CITY SECf�ETARY
3 FT.
W0RTH,TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/13/2010
DATE: Tuesday, April 13, 2010 REFERENCE NO.: L-14966
LOG NAME: 06VILLAGE CREEK PARK
SUBJECT:
Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the Amount of
$107,261.50 for Natural Gas Drilling Under 30.02 Acres Known as Village Creek Park Located at 4750
Wilbarger Street (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a Lease Agreement in the amount of
$107,261.50 for natural gas drilling under 30.02 acres, more or less, of City-owned properties known as
Village Creek Park to Chesapeake Exploration, LLC, for a two year primary term.
DISCUSSION:
On February 9, 2010, (M&C L-14931) the City Council authorized the conversion of Village Creek Park for
subsurface drilling and the extraction of natural gas from an off site location.
A request for bid proposals (RFP) for Village Creek Park was advertised for three consecutive weeks in
the Fort Worth Star-Telegram, published on February 18, 2010, February 25, 2010, and March 4, 2010.
The following sealed bid for the gas lease was received and opened on March 11, 2010.
Percent
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Chesapeake Exploration, LLC $3,573.00 $107,261.50 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
Number 37980, the net transfer to the City is estimated to be $102,434.74, 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
the inclusion of an M/WBE investor. This lease is less than 40 acres therefore no M/WBE participation
goal is required.
Revenues received from this lease will be deposited according to the current Financial Management
Policy Statements (M&C G-16632, approved July 21, 2009) which direct 100 percent of the bonus to the
Parks and Community Services Capital Improvements Fund to be used for capital improvements at this
Logname: 06VILLAGE CREEK PARK Page 1 of 2
park. Since this park received funds from the Texas Parks and Wildlife Department and the Urban Park
and Recreation Recovery Program, royalties and other fees received from this gas well lease or license
agreements associated with this park, shall be allocated 50 percent to the Citywide Park Capital
Improvement Projects Fund and 50 percent to the Fort Worth Permanent Fund — Park System
Endowment Fund.
The property is located in COUNCIL DISTRICT 5, Mapsco 93A.
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 Agreement.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929932700 $107,261.50 C282 531260 801929932700 $4,826.76
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 06 VILLAGE CREEK PARK.pdf (CFW Internal)
2. Exhibit 1.pdf (Public)
Logname: 06VILLAGE CREEK PARK Page 2 of 2