HomeMy WebLinkAboutContract 40801 CITY SECRETARY
CONTRACT NO, O
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�t , 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 1 (\day of J U L , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC
an Okla limited liability company
By: Fernando Costa By: David G. Brannen
Title: Assistant City Manager �Its-.a.1nnd Manager
ATTEST: p�OU0000000pooa ���
City Secretary o
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APPROVED AS TO FORM AND LEGALITY:
Contract Authorizatioa
A t City Atto ey `1ha10
Date
Date: L�D a
( 9-20-10 P 4:44 1N
07-22-10 A08 :50 IN
OFFICIAL RECORD
CITY SECRETARY 1
FORT WORTH, TX
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 expressed.
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GIVEN UNDER MY HAND AND SEAL OF OFFICE this_Iq__ day of I VLA 2010.
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gvzldDL In Notary Public in and for the �"`'' c; UNWM.HIR
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�- • '`�';` My COMMISSION EXPIRES
State of Texas
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My Commission Expires:
Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
COUNTY OF W W( §
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared
David Brannen, Land Manager, on behalf of Chesapeake Exploration, L.L.C., an Oklahoma Limited
Liability Company, 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;,I*d-ay of ,2010.
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[SEAL] ```SJ�yEN TRL�.
Notary Public in and for the ,?#�� Y'.I
State Of _ CGWIO055 1.
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Exhibit "A"
10.899 acres, more or less, being Tract 1 of the William Stone Survey, A-1400, Tarrant County,
Texas, and being the same land conveyed in that certain Tax Resale Deed, dated October 23,
2008, to the City of Fort Worth, a Municipal Corporation, as recorded in Instrument No.
D208432258, Official Public Records, Tarrant County, Texas.
(113 10 South Freeway)
.� 3
Page 1 of 1
Tidwell, Allison
From: Petr, Jean
Sent: Tuesday, September 21, 2010 1:08 PM
To: Tidwell, Allison; Gilmore, Karen
Cc: Alanis, Susan
Subject: RE: Question About Gas Leases
Allison—
Yes, the City had to reject the bids which were non compliant but since we'd already bid the properties out and CHK was
the only bidder, CHK came back and gave us the minimum bid amount. The rejection M&C was to follow all procedures.
Let me know if this clears up the questions, and if not, feel free to call.
Jean
L-15009–Southcreek Park
L-15004– 11310 S. Freeway
From: Tidwell, Allison
Sent: Tuesday, September 21, 2010 12:36 PM
To: Gilmore, Karen
Cc: Petr, Jean; Alanis, Susan
Subject: Question About Gas Leases
Importance: High
Contract Nos. 40801 & 40802 referenced M&C L-15004 dated 7/13/10, and Contract Nos. 40803 and 40804
referenced M&C L-15009 dated 7/13/10, but the M&Cs are confusing because they states that the City is
rejecting Chesapeake's bids and authorizing rebids or negotiations at a future time. The leases were signed by
the attorney three days after Council approved, so does that mean that Chesapeake renegotiated the leases?
When responding, please do so by email, so I can keep with the contract file. Thanks!
Administrative/Records Technician
City Secretary's Office
Phone: (817)392-6090
Fax: (817)392-6196
www.fortworthgov.org/csec
"Individuakv, we are one drop. Together, we are an ocean."-RYunosuke Satoro
9/21/2010
M&C Review Ank. Pagel of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Fa�H
COUNCIL ACTION: Approved on 7/13/2010
DATE: 7/13/2010 REFERENCE NO.: L-15004 LOG NAME: 062040 11310
SOUTH FRWY
CODE: L TYPE: NON-CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize the Rejection of Bid from Chesapeake Exploration, LLC, for Natural Gas Drillin(
Under 10.899 Acres More or Less of City-Owned Properties Known as 11310 South
Freeway and Authorize Re-Advertisement(COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council:
1. Reject the bid from Chesapeake Exploration, LLC, for natural gas drilling under 10.899 acre;
more or less of city-owned properties known as 11310 South Freeway; and
2. Authorize staff to re-advertise or negotiate the project at a future time.
DISCUSSION:
A Request for Bid Proposals (RFP)for 11310 South Freeway 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
Ro alt
Chesapeake Exploration, LLC $2,000.00 $21,798.00 25.00
Percent
The bid received was evaluated by staff and the City's Mineral Management Consultant, Midkiff Oil
and Gas. Staff is recommending that City Council reject the bid because it failed to comply with
minimum bid requirements and authorize staff to re-advertise or negotiate a lease on the property at
a future time.
The property is located in COUNCIL DISTRICT 6, Mapsco 119E.
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: Susan Alanis (8180)
http://apps.cfwnet.org/council_packet/mc review.asp?ID=13710&councildate=7/13/2010 07/14/2010
M&C Review Am. .•� Page 2 of 2
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
0_62040.11310 South_Freeway.pdf
http://apps.cfwnet.org/council_packet/mc—review.asp?ID=1371 O&councildate=7/13/2010 07/14/2010