HomeMy WebLinkAboutContract 40517-A1 CITY SECRETARY
CONTRACT NO._�40 1 - 1
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,YOU MAY REMOVE
OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT
TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE
PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
FIRST AMENDMENT TO OIL AND GAS LEASE
This First Amendment to Oil and Gas Lease (this "First Amendment") is entered into by and
between CITY OF FORT WORTH, a home rule municipal corporation of the State of Texas, whose
address is 1000 Throckmorton Street, Fort Worth, Texas 76102 ("Lessor"), and CHESAPEAKE
EXPLORATION,LLC, whose address is P.O. Box 18496, Oklahoma City, Oklahoma 73154 (the "Lessee"),
to be effective for all purposes as of the 1 st day of June, 2010 (the "Effective Date").
WHEREAS, reference is hereby made to that certain Oil and Gas Lease, dated effective the 1 st
day of June, 2010, by and between Lessee and Lessor covering 79.842 gross acres more or less in Tarrant
County, Texas, a Memorandum of which lease is recorded as Instrument Number D210160123 in the
Official Public Records of Tarrant County,Texas (the"Lease");
WHEREAS, Lessor and the Lessee hereby desire to execute this First Amendment.
NOW, THEREFORE, Lessor and the Lessee, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged and confessed, and the covenants and agreements stated
herein,hereby amend the terms of the Lease as set forth below:
The entirety of the Exhibit A of the Lease is removed and replaced by the following new Exhibit:
81.369 acres, more or less, as better described in the following sixteen(16)tracts:
Tract#1: 1.563 acres, more or less, out of the E. Littlepage Survey, Abstract No. 971, more
particularly described by metes and bounds in that certain Warranty Deed dated
November 22, 1976, by and between the Candleridge Development Corporation, as
Grantors and the City of Ft. Worth, as Grantee, recorded in Volume 6140, Page 413 of
the Deed Records in Tarrant County,Texas;
Tract#2: 4.425 acres, more or less, out of the James W. Williams Survey, Abstract No. 1599, more
particularly described by metes and bounds in that certain Warranty Deed dated
November 22, 1976, by and between Candleridge Development Corporation, as Grantors
and the City of Ft. Worth, as Grantee, recorded in Volume 6140, Page 414 of the Deed
Records in Tarrant County, Texas;
Tract#3: 5.132 acres, more or less, out of the E. Littlepage Survey, Abstract No. 971, more
particularly described by metes and bounds in that certain Warranty Deed dated
November 22, 1976, by and between Candleridge Development Corportion, as Grantors
and the City of Ft. Worth, as Grantee, recorded in Volume 6140, Page 416 of the Deed
Records in Tarrant County, Texas;
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX Page 1
Tract#4: 1.083 acres, more or less, being all of Block 28 out of the Candleridge Addition, an
addition to the City of Fort Worth, more particularly described by metes and bounds in
that certain Warranty Deed dated August 5, 1976 by and between Candleridge
Development Compnay, as Grantors and the City of Ft. Worth, as Grantee, recorded in
Volume 6077, Page 468 of the Deed Records in Tarrant County, Texas;
Tract#5: 25.176 acres, more or less, being Tract A, Block 20 out of the Candleridge Addition, an
addition to the City of Fort Worth more particularly described by metes and bounds in
that certain Warranty Deed dated August 5, 1976, by and between Candleridge
Development Corporation, as Grantors and the City of Ft. Worth, as Grantee, recorded in
Volume 6077, Page 469 of the Deed Records in Tarrant County, Texas;
Tract#6: 13.458 acres, more or less, being Tract A, Block 21 out of the Candleridge Addition, an
addition to the City of Fort Worth, more particularly described by metes and bounds in
that certain Deed dated August 5, 1976, by and between the Candleridge Development
Corporation, as Grantors and the City of Ft. Worth, as Grantee, recorded in Volume
3226, Page 599 of the Deed Records in Tarrant County, Texas;
Tract#7: 5.087 acres, more or less, being Tract A, Block 27 out of the Candleridge Addition, an
addition to the City of Fort Worth by metes and bounds in that certain Warranty Deed
dated August 5, 1976, by and between Candleridge Development Corporation, as
Grantors and the City of Fort Worth, as Grantee, recorded in Volume 6077, Page 477 of
the Deed Records in Tarrant County,Texas;
Tract#8: 8.448 acres, more or less, being Tract A, Block 8, out of the Candleridge Addition, an
Addition to the City of Fort Worth, more particularly described in that certain Warranty
Deed dated June 7, 1976 by and between Candleridge Development Corporation, as
Grantor and the City of Fort Worth, as Grantee, recorded in 6036, page 879 of the Deed
Records in Tarrant County,Texas;
Tract#9: 5.888 acres, more or less, being Tract A Block 45 out of the Candleridge Addition, an
Addition to the City of Fort Worth, a portion of which is more particularly described in
that certain Warranty Deed dated June 7, 1976 by and between Candleridge Development
Corporation, as Grantor and the City of Fort Worth, as Grantee, recorded in 6036, page
882 of the Deed Records in Tarrant County,Texas;
Tract#10: 5.086 acres, more or less, being all of Block 47 out of the Candleridge Addition, an
Addition to the City of Fort Worth, more particularly described in that certain Warranty
Deed dated June 7, 1976, by and between Candleridge Development Corporation, as
Grantors and the City of Fort Worth, as Grantee, recorded in 6036, page 884 of the Deed
Records in Tarrant County, Texas;
Tract#11: 2.02 acres, more or less, being all of Block 48 out of the Candleridge Addition, an
Addition to the City of Fort Worth, more particularly described in that certain Warranty
Deed dated June 7, 1976, by and between Candleridge Development Corporation, as
Grantor and the City of Fort Worth, as Grantee, recorded in 6036, page 886 of the Deed
Records in Tarrant County, Texas;
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX Page 2
Tract#12: 1.25 acres, more or less, being all of Block 49 out of the Candleridge Addition, an
Addition to the City of Fort Worth, more particularly described in that certain Warranty
Deed dated June 7, 1976, by and between Candleridge Development Corporation, as
Grantor and the City of Fort Worth, as Grantee, recorded in 6036, page 887 of the Deed
Records in Tarrant County, Texas;
Tract#13 0.656 acres, more or less, being a tract of land out of the James W. Williams Survey, A-
1599, more particularly described by metes and bounds in that certain Warranty Deed
dated December 29, 1975,by and between Trailwood Land Company, as Grantor and the
City of Ft. Worth, as Grantee, recorded in Volume 5941, Page 315 of the Deed Records
in Tarrant County, Texas;
Tract#14 0.57 acres, more or less, being a tract of land out of the James W. Williams Survey, A-
1599, more particularly described by metes and bounds in that certain Warranty Deed
dated December 29, 1975,by and between Trailwood Land Company, as Grantor and the
City of Ft. Worth, as Grantee, recorded in Volume 5941, Page 318 of the Deed Records
in Tarrant County, Texas;
Tract#15 .567 acres, more or less, being all of tract IFF, out of the James W Williams Survey A-
1599, City of Fort Worth, Tarrant County, Texas, and being those lands conveyed by
Trailwood Land Company, a partnership composed of Irwin Krauss and S.G. Payte to the
City of Fort Worth by Warranty Deed dated 11/19/1976 and filed on 12/27/1976 at
Volume 6148, Page 186, of the County Clerk Records in Tarrant County, Texas;
Tract#16 .960 acres, more or less, being all of tract 1GG, out of the James W. Williams Survey, A-
1599, City of Fort Worth, Tarrant County, Texas, and being those lands conveyed by
Trailwood Land Company, a partnership composed of Irwin Krauss and S.G. Payte to the
City of Fort Worth by Warranty Deed dated 11/19/1976 and filed on 12/27/1976 at
Volume 6148, Page 188, of the County Clerk Records in Tarrant County,Texas;
EXECUTED on the date(s) subscribed to the acknowledgements below, but for all purposes
effective as of the Effective Date hereof.
LESSOR:
CITY OF FORTH WORTH
By: Fernando Costa
Title: Assistant City Manager
APPROVED A S TO Attested by: 4 -wu
F M A LEGALITY: �
Marty Hendrix, 'ty Secretary �, °� d
jy O Op 0 Q
ASSIS ANT CITY ATTORNEY j �,{1�0°
Y NO 00 o='d
Contract Authorization OFFICIAL RECORD ��*°°o°Qo°000°0
s'��� p ��l y 1 i� CITY SECRETARY aaZl �`EXR 4aA'
Date FT. WORTH, TX
See Attached Signature Page
ESNER.
CHESAPEAKE EXPLORATION,"LLC
By. ffenty j. flood
Tide. Senim Vice President-Land and tu�-Cjerreral-C-o=el
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on this Z day o , 2011, by
Fernando Acosta, as Assistant City Manager, of CITY OF FORT WORTH.
Y ey'
EVONIADANIE:,.S otary Public, State of T xas
:��•" �"'
" 1YOO , EXFRt:
JuS
Juy10,0,2013 I V n �Q/��e
�~~--�� (� �S Notary's name (printed)
My commission expires: —fid—l3
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me on this� day of va , 2011, by
Henry J. Hood, as Senior Vice President - Land and Legal & General Counsel, of C SAPEAKE
EXPLORATION,LLC , on behalf of said limited liability company .
I'r�mwau
Notary Public, State of 0 k 1'ah o
La wz,�i 1�uc z' It 866
Notary's name (print6j) EXP°y02"4=
My commission expires: �..........�P�,,.'
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Page 4
LESSEE:
Chesapeake Exploration,L.L.C.
an Oklahoma limited liabili ompany
By:
Henry J. d,Senior Vice Pr ident—
Land an Legal&Gene ou 1
w
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORT
COUNCIL ACTION: Approved on 5/18/2010
DATE: 5/18/2010 REFERENCE L-14982 LOG NAME: 06CANDLERIDGE PARK
NO..
NOW PUBLIC
CODE: L TYPE: CONSENT HEARING:
NO
SUBJECT: Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the
Amount of$280,644.63 for Natural Gas Drilling Under 79.842 Acres of City-Owned
Properties Known as Candleridge Park Located at 4301 French 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 79.842 acres more or less of City-owned properties known as Candleridge Park to
Chesapeake Exploration, LLC for a two-year primary term.
DISCUSSION:
On November 17, 2009, (M&C L-14893) City Council authorized the conversion of Candleridge Park
for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP)for Candleridge Park was advertised for three consecutive weeks
in the Fort Worth Star-Telegram published on March 18, March 25 and April 1, 2010.
The following sealed bid for the gas lease was received and opened on April 8, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Royalty
Chesapeake Exploration, LLC $3,515.00 $280,644.63 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 $275,031.74 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. Chesapeake has committed to meet or exceed
the stated M/WBE goal.
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.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13507&councildate=5/18/2010 01/11/2011
M&C Review Page 2 of 2
The property is located in COUNCIL DISTRICT 6, Mapsco 103 B, C, D, F, G and H.
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.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929963400 $280,644.63 C282 531260 801929963400 $5,612.89
Submitted for City Manager's Office by- Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
Exhibit 1.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13507&councildate=5/18/2010 01/11/2011
M&C Review Page 1 of 1
;f ii;631 1,.„f rhr. C;ly-}F;rt i'vcrtti,T;=xas
CITY COUNCIL AGENDA FoRi
COUNCIL ACTION: Approved on 11/9/2010
DATE: 11/9/2010 REFERENCE NO.: L-15093 LOG NAME: 062050 10 PERCENT
LEASES
CODE: L TYPE: NOW PUBLIC CONSENT HEARING: NO
SUBJECT: Authorize the City Manager to Execute Leases and Lease Amendments for Previously
Approved or Executed Leases for Natural Gas Drilling Under City-Owned Properties to Add
Adjoining Acreage Up to Five Acres or Ten Percent More, Whichever is Greater
RECOMMENDATION:
It is recommended that:the City Council authorize the City Manager to execute leases and lease
amendments for previously approved Mayor and Council Communications or administratively
executed Leases found to have additional contiguous land area of five acres or 10 percent more,
whichever is greater.
DISCUSSION:
From time to time after mineral leases are approved by City Council or administratively executed by
the City Manager as permitted by Mayor and Council Communication L-14889, additional City-owned
mineral interests contiguous to the approved mineral lease are discovered during the final mineral
title review process completed by the gas company.
The City standard oil and gas lease language contains a "more or less"clause to accommodate
acreage variances that may be found during the final mineral title research process. It is an
acceptable practice in the industry to add additional acreage to the center of a street that abuts the
lease property through "strips and gores"or to add small adjoining tracts to the mineral lease. The
City requires that the bonus and royalty for this additional property to be paid at the same rate as the
original lease.
Staff is recommending that the City Council give the City Manager the authority to execute mineral
leases or lease amendments for previously approved Mayor and Council Communications or
administratively executed leases in order to add adjoining acreage up to five acres or 10 percent
more, whichever is greater.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14414&councildate=11/9/2010 01/10/2011