HomeMy WebLinkAboutContract 40296 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 3 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 3 day of AA , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC , an
Oklaho a limite4 liability company
By: Fernando Costa By: C l i f f Merritt
Title: Assistant City Manager Its. Land a n a g e r
a4gn��n�
Av f°ar y►�a
ATTEST: p, 0oaooaooQ O
0 0
a pl u 0;0 0
0
o
City Secretary 0 d
0 a
00 000 4J
C 0000000 p
APPROVED AS TO FORM AND LEGALITY:��11�a
^ontract- Authorization
Assistant City Atto y `t�1 1311 Q
G �
Date: Dat P
OFFICIAL RECORD
CITY SECRETA1.71
E
FT.WORTH.T%
06-09-10 A09:48 IN
1
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.
GIVEN under my hand and seal of office thij_/1-day ofMm
2010. '
Notary Public, State of Texas
My Commission Expires:
Commission Number:' ;= EVONIA DANIELS
;. MY COMMISSION EXPIRES
Jury 10,2013
STATE OF OKLAHOMA §
COUNTY OF 0 ��OVIUMA §
BEFORE ME, the un e signed, a notary public, on this day personally appeared
GU1 known to me to be the person whose name is
subscribed to the foregoing instrument nd acknowledged that (s)he has executed the same for
the purposes and consideration therein expressed:
GIVEN under my hand and seal of'office this—Q-�day of Iq 6W ,
2010.
Notary Public, a e of Oklahoma
T
�•#D8010p55 '=
My Commission Expires: :EXP"iDnm�z
Commission Number:
rtFTW
AHJ
2
EXHIBIT A
133.551 acres, more or less, better described as Lot 1, Block 1, Meadowbrook Golf Course
Addition, an addition to the City of Fort Worth, Tarrant County, Texas, as described in that
certain Plat dated May 8, 1991, recorded in Cabinet A, Pages 837-840, Tarrant County, Texas.
(Meadowbrook Golf Course)
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/13/2010
DATE: Tuesday, April 13, 2010 REFERENCE NO.: L-14965
LOG NAME: 06MEADOWBROOK GOLF COURSE
SUBJECT:
Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the Amount of
$639,308.64 for Natural Gas Drilling Under 133.551 Acres Known as Meadowbrook Golf Course Located
at 1815 Jenson Road (COUNCIL DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a Lease Agreement in the amount of
$639,308.64 for natural gas drilling under 133.551 acres, more or less, of City-owned properties known as
Meadowbrook Golf Course to Chesapeake Exploration, LLC, for a two year primary term.
DISCUSSION:
On February 9, 2010, (M&C L-14930) Fort Worth City Council authorized the conversion of Meadowbrook
Golf Course for subsurface drilling and the extraction of natural gas from an off site location.
A request for bid proposals (RFP) for Meadowbrook Golf Course was advertised for three consecutive
weeks in the Fort Worth Star-Telegram, published on February 11, 2010, February 18, 2010, and
February 25, 2010.
The following sealed bid for the gas lease was received and opened on March 4, 2010.
Percent
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Chesapeake Exploration, LLC $4,787.00 $639,308.64 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 $626,522.47, 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. Chesapeake Exploration, LLC, has committed to meet or exceed the
three percent M/WBE goal established by the City of Fort Worth.
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 bonus, royalty and other natural
Logname: 06MEADOWBROOK GOLF COURSE Page 1 of 2
gas related fee revenue derived from designated golf course property to be allocated in the following
manner: 1) 50 percent of the revenue will be used to retire existing debt in the Municipal Golf Fund and
upon retirement of all debt, the revenue will be applied to the reserve fund balance until such time that the
required fund policy reserve of 10 percent in excess of the annual operating budget is achieved; and 2) 50
percent of the revenue will be used to cash fund golf capital improvement projects.
The property is located in COUNCIL DISTRICT 4, Mapsco 65X, 65Y, 79B and 79C.
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.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
D102 446100 0132000 $319,654.32 D102 531260 0132000 $6,393.08
P243 446100 801929990100 $319,654.32 P243 531260 801929990100 $6,393.09
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 MEADOWBROOK GOLF COURSE.pdf (CFW Internal)
2. Exhibit 1.pdf (Public)
3. FAC VERIFICATION.doc (CFW Internal)
Logname: 06MEADOWBROOK GOLF COURSE Page 2 of 2