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Home My WebLink AboutContract 41846 CITY SECRETARY CONTRACT N0. L4( L+ 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 Mau 2011, 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 114Ldayof J 2011. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION,LLC �/ an�k/lfahoma united liability company 6;4/•t _ V By:Fernando Costa By:David G.Brannen Title:Assistant City Manager 4��ys: Land Manager plF�®0.01P ATTEST: a o„° °0010, ogO. City Secretary ° ° aaaa°000ppp°°oO pa I-►515 APPROVED AS TO FORM AND LEGAAuSVc ntract Authorization By; Date Assistant City Attorney Date: ��l�Wt 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, 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. (� AND AND SEAL OF OFFICE this ///-�day of 2011. •M,p'*.. SOSEL A BARNES _usi? MY COMMISSION EXPIRES Match 31,2013 IOU AT I . Ye4liI-W�j Notary Public in and for the State of Texas My Commission Expires: _31-4111-3 A05,e J1A A91f,4N?_*rint Name of Notary Public Here THE STATE OF OKLAHOMA § COUNTY OF 0Vj1hov" § 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. GNEN UNDER MY HAND AND SEAL OF OFFICE this 2 day of_ 2011. [SEAL Notary Public in and for the ``\liiililtlk'1111I State of aC.IGt.11ow�,J � y UA.fp AV .............. F ' My Commission Expires: ��P• ojaRr Print Name of Notary Public Here #11001263 c ; [XP.02/14/15, Q OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX 2 Exhibit"A" Being 16.231 acres of land,more or less,out of the J.Jennings Survey,A-873,Lot 1,Block 42 of the Meadow Creek Addition,an addition to the City of Fort Worth,Tarrant County,Texas and being more fully described in that certain deed from Redwood/JDB Properties,Inc.to the City of Fort Worth on May 5, 1988,Volume 9381,Page 641. (CREEKSIDE PARK) 3 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/22/2011 DATE: Tuesday, March 22, 2011 REFERENCE NO.: L-15157 LOG NAME: 062050 CREEKSIDE PARK SUBJECT: Authorize Lease Agreement with Chesapeake Exploration, LLC, in the Amount of$57,230.51 for Natural Gas Drilling Under 16.231 Acres of City-Owned Properties Known as Creekside Park Located at 3100 Roddy Drive (COUNCIL DISTRICT 6) RECOMMENDATION: It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling under 16.231 acres more or less of City-owned properties known as Creekside Park to Chesapeake Exploration, LLC for a two-year primary term. DISCUSSION: On September 14, 2010, (M&C L-15044) the City Council authorized the conversion of Creekside Park for subsurface drilling and the extraction of natural gas from an off site location. A Request for Bid Proposals (RFP) for Creekside Park was advertised for three consecutive weeks in the Fort Worth Star-Telegram, published on January 20, 2011, January 27, 2011 and February 3, 2011. The following sealed bid for the gas lease was received and opened on February 10, 2011. Bidder Lease Bonus/Acre Total Lease Bonus Percent i Ro alt _ Chesapeake Exploration, LLC $3,526.00 $57,230.51 25.00 Percent The bid received was 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. Timely award and execution of this lease will allow for inclusion of these properties in the drilling unit currently being formed. 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-17156 approved December 14, 2010) which direct 100 percent of the bonus to Logname: 062050 CREEKSIDE PARK Page 1 of 2 the Parks and Community Services Capital Improvements Fund to be used for capital improvements at this park. This park has not received funds from Federal and/or State grants and therefore the mineral revenue is unrestricted. Other 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 Fort Worth Permanent Fund. The property is located in COUNCIL DISTRICT 6, Mapsco 104 N. 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. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers C282 446100 801929964000 $57,230.51 CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Randle Harwood (6101) Additional Information Contact: Jean Petr (8367) ATTACHMENTS 1. 2 Accounting Verification 062050 CREEKSIDE PARK.pdf (CFW Internal) 2. Creekside Park MC.ipg (Public) Logname: 062050 CREEKSIDE PARK Page 2 of 2