HomeMy WebLinkAboutContract 40690 KV141UALLY
ID: D210185065 CITY SECRETARY
County: TARRANT CONTRACT NO. L1 1) le 67 L7
Date: July 30, 2010 Time: 2:50 PM
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 j L`j , 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 XTO Energy Inc., 810 Houston
Street, Fort Worth, Texas 76102, 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 j V L , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH XTO ENERGY IN .
By: Fernando Costa By: Edwin s.Ryan,Jr.
Title: Assistant City Manager Its: sr.vice Pres:denc—Land Administration
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APPROVED AS TO FORM AND LEGALITY:
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Date: Date
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
08-17-10 P03:45 IN 07-20-10 A09:20 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 ex ressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2010.
[SEAL] -
Notary Public in and for the
State of Texas _ =MY4:�A(
AWIS ON EXPIRESMy Commission Expires: 2013
Print Name of Notary Public Here
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE M the undersigned, a Notary Public, on this day personally appeared
on behalf of XTO Energy, Inc., 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 Q%6 day of 2010.
[SE ]
otary Public in and for the
WEE F.WILKESState of 1C 4S C STATE OF TEXASION EXPIRES:-209 2
My Commission Expires:
Print Name of Notary Public Here
2
Exhibit A
28.675 acres, more or less, of a called 27.10 acres of land situated in the Enoch Johnson Survey,
A-852, and the Perry Anderson Survey, A-32, both in Tarrant County, Texas, being a portion of
the Stratford Addition to the City of Fort Worth, according to the Plat thereof recorded in
Volume 204, Page 80, Plat Records, Tarrant County, Texas, and being more particularly
described in that certain Deed dated April 11, 1924, from Beacon Hill Land Company, a
corporation, to the City of Fort Worth, a municipal corporation of Tarrant County, Texas, as
recorded in Volume 823, Page 423, Official Public Records, Tarrant County, Texas; property
further clarified in that certain Quit Claim Deed dated April 4, 1927, from the City of Fort
Worth, a municipal corporation, to Beacon Hill Land Company, a corporation, as recorded in
Volume 953, Page 168, Official Public Records, Tarrant County, Texas.
(Stratford Park)
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M&C Review Pagel of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA F°'�
COUNCIL ACTION: Approved on 7/13/2010
DATE: 7/13/2010 REFERENCE NO.: L-15010 LOG NAME: 062040 STRATFORD
PARK
CODE: L TYPE: NOW PUBLIC CONSENT HEARING: NO
SUBJECT: Approve the Acceptance of a Lease Agreement with XTO Energy Inc., in the Amount of
$81,300.00 for Natural Gas Drilling Under 27.10 More or Less Acres of City-Owned
Properties Known as Stratford Park Located at 4057 Meadowbrook Drive (COUNCIL
DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 27.10 acres more or less of City-owned properties known as Stratford Park to XTO
Energy Inc. for a two-year primary term.
DISCUSSION:
On May 4, 2010, (M&C L-14943)the City Council authorized the conversion of Stratford Park for
subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP)for Stratford Park was advertised for three consecutive weeks in
the Fort Worth Star-Telegram, published on May 13, May 20 and May 27, 2010.
The following sealed bid for the gas lease was received and opened on June 3, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Ro alt
XTO Energy Inc. $3,000.00 $81,300.00 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 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 $77,641.50 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
therefore the mineral revenue is 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
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ii. Fifty percent of the revenue will be allocated to the Fort Worth Permanent Fund — General.
The property is located in COUNCIL DISTRICT 8, Mapsco 78 D.
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 801929966300 X81,300.00 C282 531260 801929966300 $3,658.50
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).jpg
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13 73 4&councildate=7/13/2010 8/26/2010