HomeMy WebLinkAboutContract 41850 CITY SECRETARY
CONTRACT NO. 44 18S d
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 , 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 Lill day of F Y I U U ,2011.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,LLC
M�
ITo limited lia company
By:Fernando Costa By:David G.Brannen
Title:Assistant City Manager Its: Land Manager
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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,
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.
roti+ri �VENk4@FA*qYHA D AND SEAL OF OFFICE this day of 44142011.
�• '£ MY COMMISSION EXPIRES
'�y.�.. March 31,2013
Notary Public in and for the
State of Texas
My Commissio�n�Ex%fi, x
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Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
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COUNTY OF M1 01 §
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 this leday of ldd&q2011.
[SEAL
Notary Public in and for the \��. H1Up''�i�,
State of O{_14btoyo,2 h
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Print Name of Notary Public Here = EXP.02J14/15
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OFFICIO► aiECORD
CITY SECRETARY
FT.WORTH,TX
2
Exhibit"A"
Being 6.58 acres of land,more or less,out of the H.Gonefacio Survey,A-2027,Block 14,
Lincolnshire Addition,an Addition to the City of Fort Worth,Tarrant County,Texas as recorded
in Volume 388-171,Pages 77-78 of the Plat Records of Tarrant County,Texas and being more
fully described in that certain deed from Lincolnshire Developments Ltd.Partnership to the City
of Fort Worth on April 3, 1990,Volume 9914,Page 1477.
(LINCOLNSHIRE 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-15158
LOG NAME: 062050 LINCOLNSHIRE PARK
SUBJECT:
Authorize Lease Agreement with Chesapeake Exploration, LLC, in the Amount of$23,201.08 for Natural
Gas Drilling Under 6.58 Acres of City-Owned Properties Known as Lincolnshire Park Located at 1425
Horncastle Street (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 6.58 acres more or less of City-owned properties known as Lincolnshire 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 Lincolnshire Park
for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP) for Lincolnshire 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, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
,Royalty
Chesapeake Exploration, LLC $3,526.00 $23,201.08 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 LINCOLNSHIRE 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 R.
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 801929967000 $23,201.08
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 LINCOLNSHIRE PARK.pdf (CFW Internal)
2. Lincolnshire Park MC.ipg (Public)
Logname: 062050 LINCOLNSHIRE PARK Page 2 of 2