HomeMy WebLinkAboutContract 40037 CITY SECRETARY
CONTRACT NO.__`;
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
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BE IT REMEMBERED that on the day of j (, L1, 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 day of
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC, aa
Oklahoma 1 ' mi liability company
By: Fernando Costa By: C l i f f M e rr i t
Title: Assistant City Manager Its: La-11 Manage r
ATTEST:
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APPROVED AS TO FORM AND LEGALITY: 0� 0Q d
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OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned, a notary public, on this day personally appeared
Fernando Costa, known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged that he has executed the same for the purposes and consideration
therein expressed.
GIVEN under my hand and seal of office thisa"day of
2010.
Aa Public, State of Texas
My Commission Expires:
Commission Number: '= EVONIA DANIELS
MY COMMISSION
July 10,2013
STATE OF OKLAHOMA §
COUNTY OF 0V-j0 VW1.A §
BEFORE ME, the undersigned, a notary public, on this day personally appeared
0A . known to me to be the person whose name is
subscribed to the foregoing instrume 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 day of k ar
2010.
(A A A D 0
Not ry Public, State o Oklahoma
q
My Commission Expires:
Commission Number: � ExP.10"5"z=Q=
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2
EXHIBIT A
A portion of the E.H. Burke Survey, A-160, situated about 7 miles southwest from the court
house in Tarrant County, Texas and being a part of the First Tract conveyed to W.T.
Humble by Deed recorded in Volume 517, Page 41, Deed Records, Tarrant County, Texas,
and being more particularly described as follows:
BEGINNING at a stake in the north line of said Burke Survey and 902.7 feet from its Northwest
corner, said stake being the Southeast corner of Lot 8 in Block 49 of Ridglea Hills Addition and
the Northeast corner of the 1-4876/10,000 acre tract conveyed to the Fort Worth Independent
School District by the Deed recorded in Volume 3244, Page 54, Deed Records, Tarrant County,
Texas;
THENCE North 87 degrees 49 minutes East along the North line of the Burke Survey to and
along the South line of'Block 49-A of said Ridglea Hills Addition and continuing in all 702.4
feet to a stake for corner;
THENCE: South 48 degrees 54 minutes East 96.6 feet to a stake for corner in the Northwesterly
line of Stove Foundry Road;
THENCE: South 49 degrees 29 minutes West along said line of the Stove Foundry Road, a
distance of 984.3 feet to a galvanized iron for corner;
THENCE: North 2 degrees 1 1 minutes West at 317.2 feet to a pipe at the Southwest corner of
said 1-4876/10,000 acre tract, and continuing in all 677.2 feet to the point of beginning, and
containing 6.53 acres, more or less.
(Ridglea Hills Park)
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/23/2010
DATE: Tuesday, February 23, 2010 REFERENCE NO.: L-14933
LOG NAME: 06RIDGLEA HILLS PARK
SUBJECT:
Approve the Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., in the Amount of
$19,701.01 for Natural Gas Drilling Under 6.53 Acres Known as Ridglea Hills Park Located at 4589
Stonedale Road (COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement with Chesapeake
Exploration, L.L.C., in the amount of$19,701.01 for natural gas drilling under 6.53 acres, more or less, of
City-owned properties known as Ridglea Hills Park to Chesapeake Exploration, L.L.C., for a two-year
primary term.
DISCUSSION:
On November 17, 2009, (M&C L-14891) Fort Worth City Council authorized the conversion of Ridglea
Hills Park for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP) for Ridglea Hills Park was advertised for three consecutive weeks in
the Fort Worth Star-Telegram, published on December 17, December 24 and December 31, 2009.
The following sealed bid for the gas lease was received and opened on January 7, 2010.
,Bidder Lease Bonus/Acre ,Total Lease Bonus Percent Ro alt
Chesapeake Exploration, L.L.C. $3,017.001 $19,701.01 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 $18,814.47 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 will be deposited according to the current Financial Management
Logname: 06RIDGLEA HILLS PARK Page 1 of 2
Policy Statements (M&C 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, the Land and Water
Conservation Fund, and the National Park Service, royalties and other fees received from this gas 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 3, Mapsco 74X.
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 801929932600 $19,701.01 C282 531260 801929932600 $886.54
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 records M&C06RIDGLEA HILLS PARK.pdf (CFW Internal)
2. Exhibit 1.pdf (Public)
Logname: 06RIDGLEA HILLS PARK Page 2 of 2