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Home My WebLink AboutContract 40803 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 day of 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 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_tNay of , 2010. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC an O 1limited liability company U/, 7, By: Fernando Costa By: David G. Brannen Title: Assistant City Manager Its: Land Manager .�4avu�>Z ATTEST: 0,00��aaa e ° 0000°o �vL� City Secretary �0 %�0 °DO, 0 1 00 �0 o°° ° a APPROVED AS TO FORM AND LEGALITY: �� °►°O00000° A a�Adu�aa�o- AssistantCity tt rney 1-- 15009 �✓/w Contract Authorizatiox Date: D / *111 Date OFFICIAL RECORD 09-20-10 PO4:43 IN Qi-7/ SECRETATX RY WORTH, 07-22-10 A08:50 IN 1 ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OFTARRANT § 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this l l day of 2010. [sE ] Notary Public in and for the ,��"�' LINDA M.HIRRLINGER State of Texas ` ' '' MY COMMISSION EXPIRES February 2,2014 My Commission Expires: Print Name of Notary Public Here THE STATE OF OKLAHOMA § COUNTY OF U F��Q § 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�IAILA expre GIVEN UNDER MY HAND AND SEAL OF OFFICE this m ay of ,2010. [SEAL] guk\.� Notary Public in and for the "0kEN rR State of . R << e #08010055 :EXP.10/15/12 Q My Commission Expires: 9�F....... Print Name of Notary Public Here °.cF oK�P OFFICIAL RECORD 2 YSECRETARY ETA FORT WORTH, TX Exhibit "A" 15.9779 acres of land, more or less, being described as Block 12, South Creek Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, and the same land conveyed in the Deed of Gift from McCart 85-Acre Joint Venture to The City of Fort Worth, recorded in Volume 7691, Page 519, Deed Records of Tarrant County, Texas. (South Creek Park) OFFICIAL RECORD CIT- Y SECRETARY FORT WORTH, TX 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 "Individually, we are one drop. Together, nye art,an ocean. Ryunosuke Satoro 9/21/2010 M&C Review low Aft Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA Foil COUNCIL ACTION: Approved on 7/13/2010 DATE: 7/13/2010 REFERENCE L-15009 LOG NAME: 062040 SOUTHCREEI NO.: PARK CODE: L TYPE: NOW PUBLIC CONSENT HEARING: NO SUBJECT: Authorize the Rejection of Bid from Chesapeake Exploration, LLC, for Natural Gas Drillin( Under 15.9779 Acres More or Less of City-Owned Properties Known as Southcreek Park Located at 6746 Westcreek Drive and Authorize Re-Advertisement (COUNCIL DISTRIC' 6) RECOMMENDATION: It is recommended that the City Council: 1. Reject the bid from Chesapeake Exploration, LLC, for natural gas drilling under 15.9779 acres or more or less of city-owned properties known as Southcreek Park located at 6746 Westcreek Drive, and 2. Authorize staff to re-advertise or negotiate the project at a future time. DISCUSSION: On November 17, 2009, (M&C L-14893)the City Council authorized the conversion of Southcreek Park for subsurface drilling and the extraction of natural gas from an off site location. A Request for Bid Proposals (RFP)for Southcreek Park was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on March 4, March 11 and March 18, 2010. The following sealed bid for the gas lease was received and opened on March 25, 2010. Bidder Lease Bonus/Acre Total Lease Bonus Percent Ro alt Chesapeake Exploration, LLC $2,000.00 $31,955.80 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 104A. 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 http://apps.cfwnet.org/council_packet/mc review.asp?ID=13714&councildate=7/13/2010 07/14/2010 M&C Review ANIL '"ok Page 2 of 2 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).* http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13714&councildate=7/13/2010 07/14/2010