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Home My WebLink AboutContract 40702 XEC;ORDED ELECTRONICALLY ID: D210180783 County: TARRANT CITY SECRETARY Date: _July 27, 2010 Time: 1.5� 77 Pm .� CONTRACT NO. LLO 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 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 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 f day of L 2010. LESSOR: LESSEE: CITY OF FORT WORTH XTO_ENERGY INC. By: Fernando Costa By: Edwin S.Ryan,Jr. Title: Assistant City Manager Its: sr.Vice President—hand Administration ATTEST: - FJAor ®Oo�®R�O` 0 0 & o00 °City Secretary 0�o 0 *� �� Id 10, o oj APPROVED AS TO FORM AND LEGALITY: 0000 �U � 00. Assis ant City Att ey Contra t Authorization Date: ��l LJ � Date OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX 07-21-10 P02:44 IN 08-17-10 P03:47 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 forth State of Texas EVONIA DANIELS =y ,; MY CCMMISSM EXPIRES My Commission Expires: 10,ry 2013 Print Name of Notary Public Here THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, ( undersigned, a Notary Public, on this day personally appeared ,11 'j lGU f\. 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 day of_ 'l 2010. [SEA61 )�,&A'.�F&11'aotary Public in and' for the State of CHARLA F.bdlLKES e=.• i`• NOTARY PUBLIC STATE OF TEXAS ; ,•ijP: COMMISSION EXPIRES: My Commission Expires: '''•>E°F`�+`' 2o�2 `' t�rssdsxf �fr�#y Print Name of Notary Public Here 2 s Exhibit A 55.93 acres of land, more or less, situated in the William Edwards Survey, A-471, Tarrant County, Texas, known as Oakland Lake Park, and being more particularly described in that certain Warranty Deed July 25, 1927, from W. B. Pyron to the City of Fort Worth, Texas, a municipal corporation, as recorded in Volume 991, Page 37, Official Public Records, Tarrant County, Texas. (Oakland Lake Park) 3 M&C Review Pagel of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoRT WoRni COUNCIL ACTION: Approved on 7/13/2010 DATE: 7/13/2010 REFERENCE NO.: L-15008 LOG NAME: 062040 OAKLAND LAKE PARK NOW PUBLIC CODE: L TYPE: CONSENT HEARING: NO SUBJECT: Approve the Acceptance of Lease Agreement with XTO Energy Inc., in the Amount of $160,500.00 for Natural Gas Drilling Under 53.5 More or Less Acres of City-Owned Properties Known as Oakland Lake Park Located at 1645 Lake Shore Drive (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling under 53.5 acres more or less of City-owned properties known as Oakland Lake Park to XTO Energy Inc., for a two-year primary term. DISCUSSION: On May 4, 2010, (M&C L-14945)the City Council authorized the conversion of Oakland Lake Park for subsurface drilling and the extraction of natural gas from an off site location. A Request for Bid Proposals (RFP)for Oakland Lake 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 Royalty XTO Energy Inc. $3,000.00 $160,500.00 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 $153,277.50 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 greater than 40 acres but less than 700 acres; therefore a three percent M/WBE participation goal is required. XTO Energy Inc., has agreed to meet or exceed the three percent 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. Since this park received funds from the Texas Parks and Wildlife Department and the Urban Park and Recreation Recovery Program, royalties and other fees received http://apps.cfwnet.org/council_packet/mc review.asp?ID=13735&councildate=?/13/2010 8/26/2010 M&C Review Page 2 of 2 from this gas well lease or license agreements associated with this park, shall be allocated 50 percent to the Citywide Park Capital Improvement Projects Fund and 50 percent to the Fort Worth Permanent Fund — Park System Endowment Fund. The property is located in COUNCIL DISTRICT 8, Mapsco 64Z, 65W, 78D and 79A. 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 801929932800 $160,500.00 C282 531260 801929932800 $7,222.50 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=1373 5&councildate=7/13/2010 8/26/2010