HomeMy WebLinkAboutContract 40505 CITY SECRETARY
CONTRACT NO. 'u
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 /, 'f 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 5 day of M A 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAP AKE EXPLORATION, LLC, an
Oklahom\a limited liability company
By: Fernando Costa By: David G . Brannen
Title: Assistant City Manager a �l Land Manager
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City Secretary moo°
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APPROVED AS TO FORM AND LEGALaIa (�AXa�aO
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Assistant City Att ey -,�ntract Authorizatiox
Date:
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
1
06-28-10 A11 :50 IN
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 thisCS" ' ` day of
2010.
17
otary Public, State of Texas
My Commission Expires:
Commission Number: 1XN— V EVONIA DANIELS
': 'e MY C3WISSION EXPIRES
'' {!a^it•� July 10,2013
STATE OF OKLAHOMA §
COUNTY OF DMCI hO W, §
BEFORE ME,, the undersigned, a notary public, on this day personally appeared
y� 1��1 Qq(� known to me to be the person whose name is
subscribed to the foregoing instrumedt 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 RAV
2010.
i
%"IN i,, of Public, State of Oklahoma
My Commission Expires: ± ':4108010055.';
Commission Number: "'A
'' OF OK�P\```
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OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
2
EXHIBIT A
Being 16.77 acres of land out of the W.W. Wheat Survey, Abstract No. 1646, and the L Flores
Survey, Abstract No. 507, Tarrant County, Texas and being a portion of that certain tract of land
conveyed to IFS Candleridge Investors, L.P. by deed recorded in Volume 7199, Page 1884, Deed
Records, Tarrant County, Texas, said 16.77 acres being more particularly described by metes and
bounds as follows:
BEGINNING at a 1/2"' iron pin found at the northwesterly corner of said IFS Candleridge
Investors, L.P. tract, said pin also being on the easterly right of way line of Trail Lake Drive (60'
row);
THENCE South 26 degrees, 59 minutes, 42 seconds East, along said right of way line, 704.59
feet to a 1/2" iron pin found for the beginning of a curve to the right with a radius of 861.90 feet,
whose long chord bears South 21 degrees, 26 minutes, 54 seconds East 165.02 feet;
THENCE along said curve and said right of way in a southerly direction through a central angle
of 10 degrees, 59 minutes, 13 seconds a distance of 165.27 feet to the Point of Beginning of the
herein described tract;
THENCE North 61 degrees, 14 minutes, 29 seconds East 1,494.68 feet to a 1/2" iron pin found
on the west right of way line of South Hulen Street (120" row);
THENCE South 44 degrees, 10 minutes, 30 seconds East along said right of way line, 139.24
feet to a 1/2" iron pin set;
THENCE South 65 degrees, 40 minutes, 47 seconds West, 694.84 feet to a 1/2" iron pin set;
THENCE South 31 degrees, 41 minutes, 29 seconds West, 70.00 feet to a 1/2" iron pin set;
THENCE South 34 degrees, 16 minutes, 11 seconds East, 718.57 feet to a 1/2" iron pin set;
THENCE North 87 degrees, 23 minutes, 45 seconds East, 60.22 feet to a 1/2" iron pin set at the
beginning of a non-tangent curve to the left with a radius of 230.00 feet, whose long chord bears
South 03 degrees, 40 minutes, 25 seconds West, 50.30 feet;
THENCE along said curve in a southerly direction through a central angle of 12 degrees, 33
minutes, 21 seconds a distance of 50.40 feet to a 1/2" iron pin set;
THENCE South 87 degrees, 23 minutes, 45 seconds West, 23.88 feet to a 1/2" iron pin set;
THENCE South 53 degrees, 35 minutes, 43 seconds West, 579.95 feet to a 1/2" iron pin set;
THENCE South 33 degrees, 51 minutes, 38 seconds East, 112.07 feet to a 1/2" iron pin set;
THENCE South 55 degrees, 01 minute, 17 seconds West, 50.01 feet to a 1/2"iron pin set;
THENCE South 33 degrees, 51 minutes, 38 seconds West, 786.84 feet to a 1/2" iron pin set,-
THENCE
et;THENCE South 65 degrees, 40 minutes, 47 seconds West, 285.79 feet to a 1/2" iron pin set on
the east right of way line of said Trail Lake Drive and the beginning of a curve to the left whose
radius is 861.90 feet, and whose long chord bears North 05 degrees, 54 minutes, 38 seconds
West, 300.68 feet;
THENCE along said curve and said right of way line in a northerly direction through a central
angle of 20 degrees, 05 minutes, 28 seconds for an arc length of 302.23 feet to the POINT OF
BEGINNING" and containing 16.77 acres, more or less.
(Kingswood Park)
EOFFICIALCORDTARYH,TX
3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/20/2010
DATE: Tuesday, April 20, 2010 REFERENCE NO.: L-14970
LOG NAME: 06KINGSWOOD PARK
SUBJECT:
Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the Amount of
$29,347.50 for Natural Gas Drilling Under 8.385 Acres of City-Owned Properties Known as Kingswood
Park Located at 7505 Trail Lake Drive (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 8.385 acres, more or less, of city-owned properties known as Kingswood Park to
Chesapeake Exploration, LLC, for a two-year primary term in the amount of$29,347.50.
DISCUSSION:
On November 17, 2009, (M&C L-14893) the City Council authorized the conversion of Kingswood Park for
subsurface drilling and the extraction of natural gas from an off-site location. The total available acreage in
Kingswood Park is 16.77 acres with a 8.385 net mineral acre interest owned by the City of Fort Worth.
A Request for Bid Proposals (RFP) for Kingswood Park was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, on February 25, 2010, March 4, 2010 and March 11, 2010.
The following sealed bid for the gas lease was received and opened on March 18, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
_ Royalty
Chesapeake Exploration, LLC $3,500.00 $29,347.50 25.00
Percent
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 $28,026.87 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.
Logname: 06KINGSWOOD PARK Page 1 of 2
Revenues received from this lease will be deposited according to the current Financial Management
Policy Statements (M&C G-16747, approved November 3, 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 park. This park has not received funds from Federal or State grants and therefore the mineral
revenues are unrestricted. Other revenue received from this lease will be allocated as follows: i. Fifty
percent of the revenue will be allocated to the Capital Projects Reserve Fund; and ii. Fifty percent of the
revenue will be allocated to the Fort Worth Permanent Fund.
The property is located in COUNCIL DISTRICT 6, Mapsco 103 E, F, J and K.
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 to the City.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929963700 $29,347.50 C282 531260 801929963700 $1,320.63
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 KINGSWOOD PARK.pdf (CFW Internal)
2. Exhibit 1.pdf (Public)
Logname: 06KINGSWOOD PARK Page 2 of 2