HomeMy WebLinkAboutContract 39507 "ITY SECRETARY
ONTRACT NO,
..E MORANDUM 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 D C �� E 2_c 2009, 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 2— day of 0 C Y,� Ci E C,2009.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC , an
Oklahoma lim ' ed liability company
�ut„��Il GNB
/Br y: i�2mg By: Cliff Ntrritt
Title: Assistant City Manager Its: land Manager
ATTEST:
i
Aut-OL zatioA-
City Secretary —
Date
APPROVED AS TO FORM AND LEGALITY:
By GSL
Assistant City orney
Date: G6 --Z—e
M
RECORDRETARYRTH,TX
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, an l eLS the undersigned notary public, on
this day personally appearedBr"arn 8aerner-dor Fcrmndo&%IvVro me to be the person whose
name is subscribed to the foregoing instrument and acknowledged that (s)he has executed the
same for the purposes and consideration therein expressed.
GIVEN under my hand and seal of office this olU d day of &Cy be ,
2009.
Lary Public, State of Texas
My Commission Expires: .....
Commission Number: EVONIA DANIELS
` MY COMMISSION EXPIRES
''t July 10,2013
STATE OF OKLAHOMA §
COUNTY OF OIL jRhOma §
BEFORE ME, LftU,yUTyjAj I the undersigned notary public, on
this day personally appeared Cliff J. Merritt-Land Manager known to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged that (s)he has executed the
same for the purposes and consideration therein expressed.2 YA
GIVEN under my hand and seal of office this � J day of Oyt V►%W ,
2009.
��Do rklahoma
TAI�P'
1 S 08010055;
My Commission Expires: =u,:-Exp.1011511 f
Commission Number: s9r'puss) °
4 •...F.
2
EXHIBIT A
4.93 acres, more or less, being all of Lot 1, Block 1, Stagecoach Pump Station Addition, an
addition to the City of White Settlement, Tarrant County, Texas, being part of the B.B.B. & C
RR Co. Survey, A-218, as described in that certain Plat, recorded in Volume A, Page 6558, Plat
Records, Tarrant County, Texas.
(Stagecoach Pump Station)
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/22/2009
DATE: Tuesday, September 22, 2009 REFERENCE NO.: L-14834
LOG NAME: 06STAGECOACH PUMP STATION
SUBJECT:
Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC, in the Amount of
$12,339.79 for Natural Gas Drilling Under Approximately 4.93 Acres of City-Owned Properties Known as
Stagecoach Pump Station Located at 8800 West Freeway, White Settlement
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a Lease Agreement in the amount of
$12,339.79 for natural gas drilling under 4.93 acres, more or less, of City-owned properties known as
Stagecoach Pump Station located at 8800 West Freeway, White Settlement.
DISCUSSION:
A Request for Bid Proposals (RFP) for Stagecoach Pump Station was advertised for three consecutive
weeks in the Fort Worth Star-Telegram, published on August 6, 2009, August 13, 2009, and August 20,
2009.
The following sealed bid for the gas lease was received and opened on August 27, 2009.
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Chesapeake Exploration, LLC $2,503.00 $12,339.79 25 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 No.
37980,the net transfer to the City is estimated to be$11,784.50, 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 shall be deposited according to the Financial Management Policy
Statements which currently direct the bonus and royalty for Water and Sewer assets 50 percent to Water
and Sewer Capital Projects Fund, 25 percent to the Fort Worth Permanent Fund and 25 percent to the
Utility Street Reconstruction Capital Improvement Projects Fund.
The property is located in White Settlement, Mapsco 73E.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that the Planning and Development Department is
http://apps.cfwnet.org/ecouncil/printmc.asp?id=12427&print=true&DocType=Print 9/22/2009
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responsible for the collection and deposit of funds due the City.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
P245 446100 601149990100 $6,169.89 P245 531260 601149990100 $277.65
P245 446100 601149990300 $3,084.95 P245 531260 601149990300 $138.82
T124 446100 060124099901 $3,084.95 T124 531260 060124099901 $138.82
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
1. 06Stagecoach Pump Station Revised.pdf (Public)
2. Accounting Record M&C 06STAGECOACH PUMP STATION.pdf (CFW Internal)
3. Exhibit 1.pdf (Public)
http://apps.cfwnet.org/ecouncil/printinc.asp?id=12427&print=true&DocType=Print 9/22/2009