HomeMy WebLinkAboutContract 41276 CITY SECRETARY
CONTRACT NO, 41
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_�� , 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 XTO Energy Inc., 810 Houston
Street, Fort Worth, Texas 76102, 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_a day of Jy p�J , , 2010.
LESSOR: LESSEE:
CITY OF FORT WORTH XTO ENERGY INC..
By: Fernando Costa By: Edwin S.Ryan,Jr. 0
Title: Assistant City Manager Its: Sr.Vice President—Land Administration
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CITY SECRETARY
FT.WORTH,TX
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Contract Authorization
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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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this � day of nbue 6W 2010.
[SEAL]
Notary Public in and for the ,
State of Texas LINDA M.HARUNGER
MY COMMISSION EXPIRES
February Z 2014
My Commission Expires:
Print Name of Notary Public Here
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BE ME thu er igned, a Notary Public, on this day personally appeared
I)I ' V11 11 & , on behalf of XTO Energy, Inc., known to me to be
the person who- 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 AN SEAL OF OFFICE this day of 2010.
[SEAL]
Notary Public in and for the
State of S ���ar� DEDRA L.NUNEZ
Notary Public
My Com ission Expires: STATE OF TEXAS
� .29, Print Name of Notary Public Here �'�OFp My Comm.Exp.01128/2012
Exhibit A
18.022 acres of land, more or less, of a called 17.56 acres, situated in the Thomas White Survey,
A-1636, and the A. Vought Survey, A-1585, both in Tarrant County, Texas, and being more
particularly described in the following ten (10) tracts:
TRACT 1: 3.58 acres of land, more or less, situated in the Thomas White Survey, A-1636,
Tarrant County, Texas, being a portion of that certain 37.50 acre tract more particularly
described in that Warranty Deed dated June 15, 1912, from J. A. Evans and wife, Annie Conner
Evans, to the City of Fort Worth, a municipal corporation, as recorded in Volume 410, Page 161,
Official Public Records, Tarrant County, Texas, and being more particularly described by metes
and bounds in the following two tracts:
Tract One: Beginning at a point located on the northern right-of-way line of IH-30, more
particularly described as being 838.544 feet North and 887.648 feet East of the southwest corner
of the said Thomas White Survey;
THENCE North 79 degrees 55 minutes and 17 seconds East 40.623 feet;
THENCE South 0 degrees 0 minutes and 13 seconds West 114.376 feet;
THENCE South 0 degrees 5 minutes and 10 seconds East 0.655 feet;
THENCE South 0 degrees 0 minutes and 9 seconds East 149.591 feet;
THENCE North 89 degrees 58 minutes and 8 seconds West 40.006 feet;
THENCE North 0 degrees 0 minutes and 9 seconds West 149.555 feet;
THENCE North 0 degrees 0 minutes and 29 seconds East 107.937 feet to the point of beginning,
containing 0.24 acre of land, more or less.
Tract Two: Beginning at a point located on the northern right-of-way line of IH-30, more
particularly described as being 961.701 feet North and 1265.273 feet East of the southwest
corner of the said Thomas White Survey;
THENCE North 70 degrees 20 minutes and 28 seconds East 274.907 feet;
THENCE North 85 degrees 13 minutes East 4.875 feet;
THENCE North 85 degrees 28 minutes and 54 seconds East 46.016 feet;
THENCE North 82 degrees 14 minutes and 49 seconds East 50.916 feet;
THENCE North 79 degrees 0 minutes and 19 seconds East 50.889 feet;
THENCE North75 degrees 50 minutes and 31 seconds East 48.441 feet;
THENCE North 39 degrees 32 minutes and 5 seconds East 92.505 feet;
THENCE North 76 degrees 42 minutes and 10 seconds East 229.035 feet;
THENCE South 82 degrees 4 minutes and 53 seconds East 86.85 feet;
THENCE South 73 degrees 33 minutes and 14 seconds East 100.294 feet;
THENCE South 73 degrees 32 minutes and 49 seconds East 57.67 feet;
THENCE South 0 degrees 0 minutes and 8 seconds East 192.228 feet;
THENCE South 89 degrees 59 minutes and 59 seconds West 415.734 feet;
THENCE South 89 degrees 59 minutes and 46 seconds West 560.564 feet to the point of
beginning, containing 3.34 acres of land, more or less.
TRACT 2: 4.51 acres of land, more or less, situated in the Thomas White Survey, A-1636,
Tarrant County, Texas, being a portion of that certain 4.985 acre tract more particularly
described in that Receiver's Deed recorded on January 9, 1947, from Claude Arthur, Receiver, to
the City of Fort Worth, as recorded in Volume 1868, Page 422, Official Public Records, Tarrant
County, Texas, and being more particularly described by metes and bounds as follows:
Beginning at a point located on the northern right-of-way line of IH-30, more particularly
described as being 961.701 feet north and 1265.273 feet east of the southwest corner of the said
Thomas White Survey.
THENCE North 89 degrees 59 minutes and 46 seconds East 560.564 feet;
THENCE South 19 degrees 5 minutes and 46 seconds East 90.198 feet;
THENCE South19 degrees 6 minutes and 6 seconds East 154.311 feet;
3
THENCE South 89 degrees 59 minutes and 57 seconds West 905.918 feet;
THENCE North89 degrees 59 minutes and 20 seconds West 74.107 feet;
THENCE NorthO degrees 5 minutes and 10 seconds West 0.655 feet;
THENCE North 0 degrees 0 minutes and 13 seconds East 114.376 feet;
THENCE North 79 degrees 54 minutes and 15 seconds East 30.102 feet;
THENCE North 70 degrees 20 minutes and 5 seconds East 307.036 feet;
THENCE North 70 degrees 22 minutes and 34 seconds East 21.961 feet to the point of
beginning, containing 4.51 acres of land, more or less.
TRACT 3: 5.31 acres of land, more or less, situated in the Thomas White Survey, A-1636,
Tarrant County, Texas, being a portion of that certain 16.57 acre tract more particularly
described as the First Tract in that Warranty Deed dated October 2, 1946, from the Fort Worth
Calvary Club, a corporation, acting by and through John W. Naylor, its duly authorized
President, to the City of Fort Worth, a municipal corporation, as recorded in Volume 1843, Page
462, Official Public Records, Tarrant County, Texas, and being more particularly described by
metes and bounds as follows:
Beginning at a point located on the northern right-of-way line of Interstate 30, more particularly
described as being 838.544 feet North of the Southwest corner of the said Thomas White Survey;
Thence South 89 degrees 29 minutes and 50 seconds East 105.231 feet;
Thence South 89 degrees 30 minutes and 16 seconds East 756.047 feet;
Thence South 89 degrees 29 minutes and 42 seconds East 18.02 feet;
Thence North 79 degrees 49 minutes and 1 second East 8.496 feet;
Thence South 0 degrees 0 minutes and 29 seconds West 107.937 feet;
Thence South 0 degrees 0 minutes and 9 seconds East 149.555 feet;
Thence South 89 degrees 59 minutes and 59 seconds West 891.501 feet;
Thence North 0 degrees 50 minutes and 37 seconds East 263.637 feet to the point of beginning,
containing 5.31 acres of land, more or less.
TRACT 4: 0.370 of an acre, more or less, of a called 0.22 of an acre, situated in the Thomas
White Survey, A-1636, Tarrant County, Texas, being Lots 1 and 2, Block A, Spring Park
Addition, according to the Plat thereof recorded in Volume 63, Page 101, Plat Records, Tarrant
County, Texas, and being more particularly described in that certain Warranty Deed dated
August 8, 1947, from Frances P. Matta and husband, Joe Matta, Beatrice P. Parra and Brigido
Parra, husband of the said Beatrice P. Parra, to the City of Fort Worth, a municipal corporation,
as recorded in Volume 1932, Page 319, Official Public Records, Tarrant County, Texas.
TRACT 5: 0.407 of an acre, more or less, of a called 0.22 of an acre, situated in the Thomas
White Survey, A-1636, Tarrant County, Texas, being Lots 1 and 2, Block D, Spring Park
Addition, according to the Plat thereof recorded in Volume 63, Page 101, Plat Records, Tarrant
County, Texas, and being more particularly described in that certain Warranty Deed dated
January 7, 1948, from W. F. Burke and wife, Ava Burke, to the City of Fort Worth, a municipal
corporation, as recorded in Volume 1973, Page 466, Official Public Records, Tarrant County,
Texas.
TRACT 6: 0.143 of an acre, more or less, of a called 0.048 of an acre, of an acre, situated in the
Thomas White Survey, A-1636, Tarrant County, Texas, being all of Block B-1, according to the
Plat thereof recorded in Volume 63, Page 101, Plat Records, Tarrant County, Texas, and being
more particularly described in that certain Warranty Deed dated January 31, 1948, from Pedro
Pulido to the City of Fort Worth, a municipal corporation, as recorded in Volume 1977, Page
120, Official Public Records, Tarrant County, Texas.
TRACT 7: 0.674 of an acre, more or less, situated in the Thomas White Survey, A-1636,
Tarrant County, Texas, and being more particularly described in that certain Warranty Deed
dated May 31, 1948, from I. S. Hawley and wife, Ella Hawley, to the City of Fort Worth, a
municipal corporation, as recorded in Volume 2011, Page 522, Official Public Records, Tarrant
County, Texas.
TRACT 8: 2.31 acres of land, more or less, situated in the Thomas White Survey, A-1636,
Tarrant County, Texas, and being more particularly described in that certain Warranty Deed
4
dated May 18, 1948, from William P. Ramsey and wife, Lorene E. Ramsey, to the City of Fort
Worth, a municipal corporation, as recorded in Volume 2002, Page 569, Official Public Records,
Tarrant County, Texas.
TRACT 9: 0.048 of an acre, more or less, of a called 0.018 of an acre, situated in the Thomas
White Survey, A-1636, Tarrant County, Texas, and being more particularly described in that
certain Warranty Deed dated June 25, 1948, from Pedro Pulido to the City of Fort Worth, a
municipal corporation, as recorded in Volume 2011, Page 479, Official Public Records, Tarrant
County, Texas.
TRACT 10: 0.67 of an acre, more or less, situated in the A. Vought Survey, A-1585, Tarrant
County, Texas, and being more particularly described in that certain Judgment dated June 25,
1963, with the City of Fort Worth, as the Petitioner, and J. G. Williams, as the Defendant, as
recorded in Cause No. 58078, County Court At Law, Tarrant County, Texas.
(1-30 ROW II)
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M&C Review Page 1 of 1
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Official site of the City of Fort worth,Texas
CITY COUNCIL AGENDA FORTH
COUNCIL ACTION: Approved on 11/9/2010
DATE: 11/9/2010 REFERENCE NO.: L-15093 LOG NAME: LEASE 10 PERCENT
LEASES
CODE: L TYPE: NON- PUBLIC CONSENT HEARING:
NO
SUBJECT: Authorize the City Manager to Execute Leases and Lease Amendments for Previously
Approved or Executed Leases for Natural Gas Drilling Under City-Owned Properties to Add
Adjoining Acreage Up to Five Acres or Ten Percent More, Whichever is Greater
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute leases and lease
amendments for previously approved Mayor and Council Communications or administratively
executed Leases found to have additional contiguous land area of five acres or 10 percent more,
whichever is greater.
DISCUSSION:
From time to time after mineral leases are approved by City Council or administratively executed by
the City Manager as permitted by Mayor and Council Communication L-14889, additional City-owned
mineral interests contiguous to the approved mineral lease are discovered during the final mineral
title review process completed by the gas company.
The City standard oil and gas lease language contains a "more or less"clause to accommodate
acreage variances that may be found during the final mineral title research process. It is an
acceptable practice in the industry to add additional acreage to the center of a street that abuts the
lease property through "strips and gores"or to add small adjoining tracts to the mineral lease. The
City requires that the bonus and royalty for this additional property to be paid at the same rate as the
original lease.
Staff is recommending that the City Council give the City Manager the authority to execute mineral
leases or lease amendments for previously approved Mayor and Council Communications or
administratively executed leases in order to add adjoining acreage up to five acres or 10 percent
more,whichever is greater.
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
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc review.asp?ID=14414&councildate=11/9/2010 11/10/2010
M&C Rgyiew Pagel of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORTWORTH
COUNCIL ACTION: Approved on 9/21/2010
DATE: 9/21/2010 REFERENCE NO.: L-15059 LOG NAME: 0620401-30
ROW II
CODE: L TYPE: NON-CONSENT PUBLIC NO
HEARING:
SUBJECT: Approve the Acceptance of a Lease Agreement with XTO Energy Inc., in the Amount of
$71,954.96 for Natural Gas Drilling Under 13.703 Acres of City-Owned Properties Known
as 1-30 ROW II Located between University Drive and Montgomery Street(COUNCIL
DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 13.703 acres of City-owned properties known as 1-30 ROW II to XTO Energy Inc. for a
two-year primary term.
DISCUSSION:
A Request for Bid Proposals (RFP) for 1-30 ROW II was advertised for three consecutive weeks in the
Fort Worth Star-Telegram, published on July 15, 2010, July 22, 2010 and July 29, 2010.
The following sealed bid for the gas lease was received and opened on August 5, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Rovaltv
XTO Energy, Inc. $5,251.00 $71,954.96 25.00
ercent
Chesapeake Exploration, LLC $4,233.00 $58,005.21 25.00
percent
The bids received were 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. Upon review of
the bids submitted, XTO Energy, Inc., offered the highest bonus and has a drillsite to develop this
site. Therefore, it is recommended that the award of this lease go to XTO Energy, Inc. 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 $68,716.99.
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
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 General Endowment Fund
(Gas Wells).
The property is located in COUNCIL DISTRICT 7, Mapsco 76 J.
http://apps.cfwnet.org/council_packet/mc review.asp?ID=14133&councildate=9/21/2010 09/22/2010
MSC Re+vaew Page 2 of 2
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 $35.977.48 GC10 531260 006060001000 $1,618.98
T127 446100 006127099901 $35.977.48 T127 531260 006127099901 $1,618.99
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Susan Alanis (8180)
Additional Information Contact: Jean Petr(8367)
MEN T S
ATTACH
MCmap (2).ipa
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14133&councildate=9/21/2010 09/22/2010
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