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Home My WebLink AboutContract 39712 �. ► SECRETARY DONTRACT NO. 3� NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § COUNTY OF TARRANT § THIS MEMORANDUM, made this J Aday of J AN10 A2`- , 2010, by and between The City of Fort Worth, 1000 Throckmorton Street, Ft. Worth, Texas 76102 hereinafter called "Lessor", and QUICKSILVER RESOURCES, INC., 777 West Rosedale, Suite 300, Ft. Worth,Texas 76104 hereinafter called"Lessee." WITNESSETH: That Lessor, for a valuable consideration and in consideration of the covenants of the Lessee set forth in that certain Oil and Gas Lease made and entered into this day by and between the parties hereto covering the land hereinafter described, does hereby lease unto Lessee for the sole and only purpose of exploring for and producing and marketing oil and gas, including casinghead gas and other gaseous substances from, all that certain land situated in the County of Tarrant, State of Texas, and more particularly described on Exhibit A. The term of said Oil and Gas Lease is for two (2) years from the date thereof and so long thereafter as oil or gas is being produced in paying quantities from the lease premises, or land pooled therewith, or so long thereafter as drilling, deepening or reworking operations for the production of oil and gas are being conducted thereon, as therein provided. Reference is hereby made to executed copies of said Oil and Gas Lease in possession of Lessor and Lessee respectively, for all of the provisions thereof, and by this reference same are incorporated herein and made a part hereof in all respects as though fully set forth herein. IN WITNESS WHEREOF, the parties hereto have caused the Memorandum of Oil and Gas Lease to be executed effective as of the day and year first herein written. LESSOR: CITY OF FORT WORTH By: Assistant City Manager -Qrtract jkuthorizatio1* ATTEST: .-- k Z �Q Date City Secreta APPROVED AS TO FORM AND LEGALITY: OFFICIAL RECORD CITY SECRETARY By: tJ FT. WORTH TX Assistant CityyfJ� Date: LESSEE: Quicksilver Resources, Inc. By: Date:_ 112-010)-610 THE STATE OF TEXAS § § COUNTY OF § y- BEFORE ME,the undersigned, a Notary Public, on this day personally appeared f erl tIC6) Li sfvj�� ,known to me to be the person whose name is subscribed to the foregoing instrument and, that (s)he has executed the same for the purposes and consideration therein expressed. j GIVEN UNDER MY HAND AND SEAL OF OFFICE this '1�_day of, "L)A- 2010. [SEAL] ; Notary Public in and for the MYP�•,, EVONIADANIELS State Of Texas ": PAY COMMISSION EXPIRES July 10,2013 My Commission Expires: Print Name of Notary Public Here THE STATE OF TEXAS § COUNTY OF _ �C fi ( § I BEFORE ME,the undersigned, a Notary Public,on this day personally appeared 1 known to me to be the person whose name is subscribed to the foregoing instrument and, that (s)he has executecy the same for the purposes and consideration therein expressed. GIVEN DER MY AN AND SEAL OF OFFICE this X20 day of 0[0. [ EAL Notary Public in and for the Ell State of Texas MIMI ELAINE KEENOM M Commiss n Ex fres:"Aw 44649 Z 3My Commission Expires Y p March 13, 2013 /�17print Name of Notary Public Here m L RECORDCRETARYRTH, TX EXHIBIT A 9.066 acres, more or less, located in the J. A. Creary Survey, Abstract No. 269, Tarrant County, Texas, being (i) 6.068 acres, more or less, the lands described in a Warranty Deed, dated June 26, 1986, from Longhorn Constructors Inc. to the City of Fort Worth, recorded in Volume 8595, Page 1103, Deed Records, Tarrant County, Texas, and (ii) 1.815 acres, more or less, the lands described in a Special Warranty Deed, dated January 27, 1995, from the City of Arlington to the City of Fort Worth, recorded in Volume 11879, Page 1161, Official Public Records, Tarrant County, Texas; and (iii) 1.183 approximate acres of land, more or less, being the lands located within the lateral boundaries of Quail Road insofar as they are situated West of and contiguous to Lots 6C1, 713, 813, 9C, 1013, 11C, and 12C Block 6, of the Handley Heights South Addition herein through to the centerline of Quail Road, together with all strips, gores,and other parcels of land owned or claimed by the City of Fort Worth." [the"Subject Lands"]. (McCray Park) M RECORDCRETARYRTH, TX Pae 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/12/2010 A DATE: Tuesday, January 12, 2010 REFERENCE NO.: L-14909 LOG NAME: 06EUGENE MCCRAY PARK SUBJECT: Approve Acceptance of Lease Agreement with Quicksilver Resources Inc., in the Amount of$45,540.09 for Natural Gas Drilling Under 7.883 Acres Known as Eugene McCray Park at Lake Arlington (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling under 7.883 acres more or less of city-owned properties known as Eugene McCray Park at Lake Arlington to Quicksilver Resources Inc., for a two-year primary term. DISCUSSION: On January 23, 2007, (M&C G-15596) City Council authorized the conversion of Eugene McCray Park at Lake Arlington for subsurface drilling and the extraction of natural gas from an off site location. On July 10, 2007, (M&C L-14344) City Council approved acceptance of a lease agreement with Chesapeake Exploration Limited Partnership (Chesapeake) for a two-year term with bonus per acre rate of$12,257, total bonus of$108,082.25 and 25.5 percent royalty. The lease was executed and effective on October 29, 2007 with an expiration date of October 29, 2009. The city did not receive a request for an extension or renewal of the lease prior to the expiration date and as a result the lease expired leaving the property available to be leased a second time. A Request for Bid Proposals (RFP) for Eugene McCray Park at Lake Arlington was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on November 12, November 19 and November 26, 2009. The following sealed bid for the gas lease was received and opened on December 3, 2009. Bidder Lease Total Lease Percent Bonus/Acre Bonus Royalty Quicksilver Resources Inc. $5,777.00 $45,540.09 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 $43,490.79 more or less. The city has established a Minority Women Business Enterprise (MM/BE) participation goal of 3 percent on city-owned property of 40 acres or more without an investment goal. On leases of city-owned property �++•• //�.,,,c a fumPt nro/P�nnncil/nrintmc.asn?id=12922&vrint-true&DocType=Print 1/13/201 P Page 2 of 2 of 700 acres or more, the city has established an option of either a 3 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 (MSEC G-16632 approved July 21, 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 from this gas well lease or license agreements associated with this park are considered restricted and 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 5, Mapsco 80S and 80W. 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. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers C282 446100 801929931200 $45.540.09 C282 531260 801929931200 $2,049.30 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. Accounting Info.pdf (CFW Internal) 2. Exhibit 1.pdf (Public) http://apps.cfwnet.org/ecouncil/printme.asp?id=12922&print=true&DocType=Print 1/13/2010 j a , Vft r' FI IML cS Approve Acceptance . Agreementwith • Ak y . lie 1 1� -- • •