HomeMy WebLinkAboutContract 41254 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 _L_�day of , 2010, a Paid Up
Oil and Gas Lease was made and entered into by and be 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 theW-0day of , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION, LLC
Tr
m imited liability company
By: Fernando Costa By: David G. Brannen
Title: Assistant City Manager Its: Land Manager
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APPROVED AS TO FORM AND LEGALITY:�� 000000p0°0°° a
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Assistant City-Ateorney Contract Authorizatiou
Date: --
Date
OFFICIAL RECORD
CITY SECRETARY
- : * FT. WORTH, TX
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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.
DLW�J4�'Bl A D SEAL OF OFFICE this ��— day of /� 2010.
MY COMMISSION PI S
�;1! • March 31,2013
O;
[SEAL]
Notary Public in and for the
State of Texas
My Commission Expires: .3/J 1/.3
30602" AA&45.—Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
COUNTY OF 0 ki a h o 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 this2"d'ay of Nwe,1166W 2010.
[SEAL] 41�p % v V U=1
oLary Public in and for the z
State of - ` #10007[166
N:EXP 09/22/14;S
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1.M e! Print Name of Notary Public Here
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Exhibit "A"
All that certain tract or parcel of land out of the ELLIS LITTLEPAGE SURVEY, ABSTRACT
NO. 971, Tarrant County, Texas, and being a portion of that same tract conveyed to the County
of Tarrant as described in Deed recorded in Volume 3835, Page 467, Deed Records, Tarrant
County, Texas, and being further described by metes and bounds as follows:
COMMENCING at a 1-1/2 inch steel rod found at the Northwest corner of a tract of land
conveyed to the City of Fort Worth, Tarrant County, Texas, as described by Deed recorded in
Volume 6560, Page 526, Deed Records, Tarrant County, Texas;
THENCE South 89 degrees 29 minutes 54 seconds East along the North boundary line of said
tract, 1.26 feet to a steel rod at the Northeast corner of said tract. Said point being the point of
beginning of the herein described tract;
THENCE South 89 degrees 29 minutes 54 seconds East along the South boundary line of
Parkwood East Phase 1, an Addition to the City of Fort Worth, Tarrant County, Texas, as
recorded in Volume 388-127, Page 62, Deed Records, Tarrant County, Texas, and generally
along fence, 1060.74 feet to a steel pipe;
THENCE South 00 degrees 29 minutes 43 seconds West along the Southerly West boundary line
of said addition and generally along a fence, 689.89 feet to a steel rod in the North right-of-way
line of Columbus Trail (a 60 foot public right-of-way);
THENCE North 89 degrees 30 minutes 17 seconds West along said North right-of-way line and
generally along a fence, 1325.94 feet to a steel rod at the beginning of a curve to the right whose
radius bears North 00 degrees 29 minutes 43 seconds East at 74.00 feet;
THENCE along said curve thru a central angle of 119 degrees 32 minutes 00 seconds, a total arc
distance of 154.38 feet to a steel rod in the Easterly right-of-way line of West Cleburne Road (a
60 foot public right-of-way);
THENCE North 30 degrees 01 minutes 43 seconds East along said right-of-way line, 283.04 feet
to a steel rod at the South corner of said tract conveyed to the City of Fort Worth;
THENCE North 30 degrees 11 minutes 33 seconds East along the East boundary line of said
tract, 383.65 feet to the place of beginning, and containing 19.828 acres of land, more or less.
(Southside Service Center)
OFFICIAL DRECORDCITY SECFT. WOR
3
M&C Review AM. amkN Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FoRT WoRTH
COUNCIL ACTION: Approved on 10/26/2010
DATE: 10/26/2010 REFERENCE L-15088 LOG NAME: 06SOUTHWEST
NO.: SERVICE CENTER
CODE: L TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Approve Lease Agreement with Chesapeake Exploration, LLC, in the Amount of
$69,635.94 for Natural Gas Drilling Under 19.828 Acres of City-Owned Property Known a
Southside Service Center Located at 7801 West Cleburne Road (COUNCIL DISTRICT 6;
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural ga
drilling under 19.828 acres more or less of City-owned property known as Southside Service Center
to Chesapeake Exploration, LLC, for a two-year primary term.
DISCUSSION:
A Request for Proposals (RFP)for Southside Service Center was advertised for three consecutive
weeks in the Fort Worth Star-Telegram, published on August 5, 2010, August 12, 2010 and August
19, 2010.
The following sealed bid for the gas lease was received and opened on August 26, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Royalty
Chesapeake Exploration, LLC $3,512.00 $69,635.94 25.00
percent
Vantage Fort Worth Energy LLC $3,850.00 $76,377.80 25.00
percent
The bids received were evaluated by staff. 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. Chesapeake Exploration, LLC, has a permitted well site to drill this property,
therefore, staff is recommending award of this lease to Chesapeake. Timely award and execution of
this lease will allow for inclusion of these properties in the drilling unit currently being formed. The Cii
has established a Minority/Women Business Enterprise (M/WBE) participation goal of three percent
on City-owned property.
In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract
No. 37980 in effect at the time, the net transfer to the City is estimated to be $66,502.33 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
Policy Statements (M&C G-16747 approved November 3, 2009). Revenue received from this lease
http://www.fortworthgov.org/council_packet/mc review.asp?ID=14318&councildate=l0... 10/27/2010
M&C Review A" A0k Page 2 of 2
will be allocated as follows: i. Fifty percent of the revenue will be allocated to the Capital Projects
Reserve Fund; and ii. Fifty percent of the revenue will be allocated to the Fort Worth Permanent
Fund.
The property is located in COUNCIL DISTRICT 6, Mapsco 103 L.
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 the City.
TO Fund/Account/Centers FROM Fund/Account/Centers
GC10 446100 006060001000 $34,817.97 GC10 531260 006060001000 $1,566.80
T127 446100 006127099901 $34,817.97 T127 531260 006127099901 $1,566.81
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
065outhside Service..Center.pdf
http://www.fortworthgov.org/council_packet/mc_review.asp?ID=14318&councildate=10... 10/27/2010
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