HomeMy WebLinkAboutContract 40647 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 _A_ day of J U L , 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 COYOTE PETROLEUM
VENTURES, LTD, 306 W. 7"' Street, Suite 701, Fort Worth, Texas 76102-4906, 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 day of , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH COYOTE PETROLEUM VENTURES,LTD
By: Fernando Costa By: L. H M445i/ll
Title: Assistant City Manager Its: M"Aler
4boa�t�n
as F��r n�?
ATTEST: -7,0 10**� _O-(
0000000 -0s���
�Q ,
Ewo
City Secretary o$0
� d
APPROVED AS TO FORM AND LEGALITY: aa� 000Ay
B �a L 0 0
Contra t Authorization
Assistant City ttorney ��
Date: ! ��''! Date
OFFICIAL.RECORD
CITY SECRETARY
FT.WORTH TX
07-21-10 P02:44 IN
07-30-10 P03:59 IN
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME,the undersigned, a Notary Public, on this day personally appeared Fernando Costa,
Assistant City Manager of the City of Fort Worth, a home-rule municipal corporation of the State of
Texas, known to me to be the person whose name is subscribed to the foregoing instrument and, that he
has executed the same for the purposes and consideration therein ey�essed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this�-day of .2010.
[SEAL] /
Notary Public in and for the
EVONIA DANIELS
State of Texas =* *: My COMMISSION EXPIRES
My Commission Expires: JLdy 10,2013
Print Name of Notary Public Here
THE STATE OF §
§
COUNTY OF §
�D BEFORE,,/ME the undersigned, a Notary Public, on this day personally appeared
C/1 •�►K.Isl�JA,!O /// , on behalf of Coyote Petroleum Ventures, LTD,
known to me to be the person whose name is subscribed to the foregoing instrument and, that he has
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this�'7a day of 2010.
7
[SEAL] `
wIJ Notary Public in and for the
State of �tY S ENHEISER
Notary Public
My Commission Expires: * * STATE OF TEXAS
Print Name of Notary Public 4,r OF My Comm.Exp.04/2612013
2
EXHIBIT A
5.99 acres, more or less, being Lot 18, Block 10-R, Jinkins Heights Addition to
the City of Fort Worth, Tarrant County, Texas according to the Plat thereof
recorded in Volume 388-80, Page 6, Deed Records, Tarrant County, Texas, and
described by metes and bounds as Tract 2 on Exhibit "A" of a certain Special
Warranty Deed recorded in Volume 15422, Page 173 of the Deed Records in
Tarrant County, Texas.
(J.T. Hinkle Park)
3
M&C Review ,(, Pagel of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FoRTW RTH
COUNCIL ACTION: Approved on 7/13/2010
DATE: 7/13/2010 REFERENCE NO.: L-15006 LOG NAME: 062040 J. T.
HINKLE PARK
CODE: L TYPE: NON-CONSENT PUBLIC NO
HEARING:
SUBJECT: Approve the Acceptance of Lease Agreement with Coyote Petroleum in the Amount of
$29,950.00 for Natural Gas Drilling Under 5.990 Acres More or Less of City-Owned
Properties Known as J. T. Hinkle Park Located at 6521 Shady Dell Drive (COUNCIL
DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural ga
drilling under 5.990 acres more or less of City-owned properties known as J. T. Hinkle Park to Coyot
Petroleum for a two-year primary term.
DISCUSSION:
On March 23, 2010, (M&C L-14942)the City Council authorized the conversion of J. T. Hinkle Park
for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals(RFP)for J. T. Hinkle Park was advertised for three consecutive weeks
in the Fort Worth Star-Telegram, published on April 1, April 8 and April 15, 2010.
The following sealed bid for the gas lease was received and opened on April 22, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Royalty
Coyote Petroleum $5,000.00 $29,950.00 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 bein
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 $28,602.25 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-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 and/or State grants and
http://apps.cfvvnet.org/council_packet/mc—review.asp?ID=l 3720&councildate=7/13/2010 08/02/2010
M&C Review Page 2 of 2
therefore the mineral revenue is unrestricted. Other revenue received from this lease will be allocate,
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 7, Mapsco 46P.
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.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929965500 $29,950.00 C282 531260 801929965500 $1,347.75
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
MC map (2),IpQ
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13720&councildate=7/13/2010 08/02/2010