HomeMy WebLinkAboutContract 42018 CITY SECRETARY
CONTRACT NO._ d-CJ 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/3 day of M A`e ,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 1a day of ,44 A!{ ,2011.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,LLC
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ho a rted liability/company
G'c�t.ss•.� L� /J4�/
By:Fernando Costa hyc,�t By:David G.Brannen
Title:Assistant City Manager a'5� *V', ;,QzJts: Land Manager
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City Secretary V � op0001
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APPROVED AS TO FORM AND LEGALITY:
By: � �- ContractI Authorization
Assistant City Attorney '9- 1"7- (Q
Date: Date
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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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this A'" day of 2011.
[SEAL] Z,06-�-
Notary Public in and for th
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State of Texas .� EVONIA DAOELS
MY COMMISSION EXPIRES
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My Commis s on Expires: J*10,2013
�"'/D-43 Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
COUNTY OF t lKDYItiA-� §
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 ZVdday of 2011.
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Notary Public in and for the �.�``y�SY...H.... .` �
State of 0k,10 hoy►Ra, ZP:•-jOTAR`--, 'M,-
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EXHIBIT A
1,365.8 acres,more or less,located within the following surveys:Jacob Wilcox Survey,A-1715,
Jacob Wilcox Survey,A-1716,M.De La Garza Survey,A-616,Moses Townsend Survey,A-
1552,A.M.Clear Survey,A-360 and the J.M.Basquis Survey,A-85 and being all mineral
interest owned by The City of Fort Worth within the area labeled as Zone 3A as outlined on the
map attached as Exhibit B.
LESS&EXCEPT 63.0637 acres,more or less,described in the following 14 tracts:
TRACT 1
Lot 10A1,Block 16,Lake Worth Leases,being a portion of Lot 10A,Blk 16,Lake Worth Leases
Addition,an addition to the City of Fort Worth,Tarrant County,Texas,being part of the Jacob
Wilcox Survey,Abstract Number 1716,described in that certain Warranty Deed,recorded in
Instrument D207412382,described by metes and bounds as follows:
BEGINNING at a''/2 inch iron capped RPLS 1983 found in the south line of Surfside Drive said
iron being the most easterly northeast corner of said Lot 10-A and the northwest corner of Lot
10-8,Block 16;
THENCE South 06 degrees 45 minutes 25 seconds West, 135.47 feet to a11/2 inch iron capped
RPLS 1983;
THENCE South 08 degrees 24 minutes 12 seconds East 59.06 feet to a h inch iron capped RPLS
1983;
THENCE South 00 degrees 54 minutes 07 seconds West 51.31 feet to a point from which pk nail
bears South 75 degrees 00 minutes 29 seconds East,0.73 feet;
THENCE South 72 degrees 26 minutes 22 seconds West 56.48 feet to a point;
THENCE North 89 degrees 07 minutes 19 seconds West 31.08 feet to a point;
THENCE North 00 degrees 49 minutes 22 seconds East at 75.19 feet passing a'!2 inch iron
capped Lone Star RPLS 5746 set continuing in all
152.23 feet to a'/z inch iron capped Lone Star RPLS 5746 set;
THENCE North 28 degrees 13 minutes 27 seconds West 7.05 feet to a'/2 inch iron capped Lone
Star RPLS set;
THENCE North 33 degrees 51 minutes 15 seconds East 6.28 feet to a'/z inch iron capped Lone
Star RPLS set;
THENCE North 00 degrees 49 minutes 22 seconds East 111.57 feet to a'1/2 inch iron capped
Lone Star RPLS set;
THENCE 80 degrees 49 minutes 57 seconds East,with the south line of said Surfside Drive,
90.12 feet to the POINT OF BEGINNING and containing 3.700 acres of land,more or less.
TRACT 2
Lot 10A2,Block 16,Lake Worth Leases,being a portion of Lot 10A,Blk 16,Lake Worth Leases
Addition,an addition to the City of Fort Worth,Tarrant County,Texas,being part of the Jacob
Wilcox Survey,Abstract Number 1716,described in that certain Warranty Deed,recorded in
Instrument D207412382,described by metes and bounds as follows:
13EGINNING at a V2 inch iron capped RPLS 1983 found in the south line of Surfside Drive said
iron being the most easterly northeast corner of said Lot 10-A and the northwest corner of Lot
10-13,Block 16;
THENCE South 06 degrees 45 minutes 25 seconds West, 135.47 feet to a'/2 inch iron capped
RPLS 1983;
THENCE South 08 degrees 24 minutes 12 seconds East 59.06 feet to a'/2 inch iron capped RPLS
1983;
THENCE South 00 degrees 54 minutes 07 seconds West 51.31 feet to a point from which pk nail
bears South 75 degrees 00 minutes 29 seconds East,0.73 feet;
THENCE South 72 degrees 26 minutes 22 seconds West 56.48 feet to a point;
THENCE North 89 degrees 07 minutes 19 seconds West 31.08 feet to a point;
THENCE North 00 degrees 49 minutes 22 seconds East at 75.19 feet passing a''/2 inch iron
capped Lone Star RPLS 5746 set continuing in all 152.23 feet to a'/2 inch iron capped Lone Star
RPLS 5746 set;
THENCE North 28 degrees 13 minutes 27 seconds West 7.05 feet to a'/2 inch iron capped Lone
Star RPLS set;
1 OIL AND GAS LEASE-LAKE WORTH 3A
THENCE North 33 degrees 51 minutes 15 seconds East 6.28 feet to a''/2 inch iron capped Lone
Star RPLS set;
THENCE North 00 degrees 49 minutes 22 seconds East 111.57 feet to a%2 inch iron capped
Lone Star RPLS set;
THENCE 80 degrees 49 minutes 57 seconds East,with the south line of said Surfside Drive,
90.12 feet to the POINT OF BEGINNING and containing 0.5600 acres of land,more or less
TRACT 3
Lots 11 & 12,Block 16,Lake Worth Leases Addition,an addition to the City of Fort Worth,
Tarrant County,Texas,being part of the Jacob Wilcox Survey,Abstract Number 1716,as
described in that certain Plat,recorded in Cabinet A,Slide 1375,Plat Records,Tarrant County,
Texas,containing 1.480 acres more or less.
TRACT 4
Lots 1R, 1R1,2R,2R1,4R1,4R2,5R,5R1,6R,6R1,8AR'1,8AR1A,9R-1, 10R1, 12R,
13R,14R, 14R1, 15R, 15RI,16R, 17R,18R,19R,22R,23R,23R1,24R,25R,26R,28R,29R,
30R,31R,32R,33R,and 36R Block 17,Lake Worth Leases Addition,an addition to the City of
Fort Worth,Tarrant County,Texas,being part of the J.Wilcox Survey,Abstract Number 1716,
as described in that certain Plat,recorded in Volume A,Page 5107,Tarrant County,Texas,
containing 24.3000 acres of land more or less.
TRACT 5
Lots 3R and 3R1,and a portion of Lot 4R,Block 17,Lake Worth Leases Addition,an addition to
the City of Fort Worth,Tarrant County,Texas,being part of the J.Wilcox Survey,Abstract
Number 1716,as described in that certain Plat,recorded in Volume A,Page 5107,Tarrant
County,Texas. Described by metes and bounds as follows found in Document Number
D205159834:
BEGINNING at a p.k.nail found in rock(Control Monument)in the Northwest line of
Watercress Road for the Southeast corner of said Lot 3R same being the Southwest corner of Lot
2R of said Lake Worth Leases,said p.k.nail being South 48 degrees 26 minutes 56 seconds East
(base bearing per plat in Cabinet A,Slide 5107-5110,P.R.T.C.T.),235.25 feet from a 5/8"
capped Brook Baker rebar rod found(Control Monument)in the South line of Jarvis Way for the
Northwest corner of Lot 3R same being the Northeast corner of said Lot 4R;
THENCE South 67 degrees 48 minutes 07 seconds West, 115.08 feet along the Northwest line of
Watercress Road same being the Southeast line of Lot 3R to a 5/8"rebar rod found for the
Southwest corner of Lot 3R same being the Southeast corner of said Lot 4R;
THENCE North 22 degrees 37 minutes 49 seconds West 55.16 feet along the common line
between Lots 3R and 4R to a 5/8"rebar rod found;
THENCE North 23 degrees 30 minutes 52 seconds West,76.24 feet to 5/8"rebar rod found;
THENCE North 18 degrees 58 minutes 33 seconds West,40.12 feet to an angle iron found in the
common line between Lots 3R and 4R;
THENCE North 15 degrees 38 minutes 54 seconds West,44.82 feet to a 5/8"rebar rod found in
the South line of Jarvis Way same being the North line of Lot 4R;
THENCE 50.44 feet along the South line of Jarvis Way same being the North line of Lots 3R
and 4R in curve concave to the North whose radius is 50.00 feet and chord is North 83 degrees
51 minutes 33 seconds East,48.33 feet to a 5/8"capped Brooks Baker rebar rod found;
THENCE North 55 degrees 14 minutes 12 seconds East,33.92 feet along the South line of Jarvis
Way same being the North line of Lot 3R to a 5/8"capped Brooks Baker rebar rod found for the
Northeast corner of Lot 3R same being the Northwest comer of Lot 2R;
THENCE South 39 degrees 10 minutes 27 seconds East,91.27 feet along the common line
between Lots 3R and 2R to a 1/�"capped 1983 rebar rod set;
THENCE South 23 degrees 54 minutes 29 seconds East, 122.73 feet continuing along the
common line between Lots 3R and 2R to the POINT OF BEGINNING and containing 22,159
square feet or 0.5000 acres of land more or less.
TRACT 6
Lot 9R2A,Block 17,Lake Worth Lease,being a portion of Lot 9R„Block 17,:Lake Worth
Leases,an addition to the City of Fort Worth,Tarrant County,Texas,being part of the A.M.
Clear Survey,Abstract Number 360,and the J.Wilcox Survey,Abstract Number 1716,as
described in that certain Plat,recorded in Cabinet A,Slide 5107,Plat Records,Tarrant County,
Texas.Described in that certain Warranty Deed,recorded in Volume 16375,Page 178,metes
and bounds as follows:
2 OIL AND GAS LEASE-LAKE WORTH 3A
BEGINNING at a P.K.nail set for the most northerly comer of Lot 9R-2;
THENCE South 44 degrees '16 minutes 28 seconds East a distance of 118.5 feet along the
northeasterly line of Lot 9R-2 to a'h"iron pin set with cap marked,"AREA SURVEYING';
THENCE South 45 degrees 43 minutes 32 seconds West a distance of 22.70 feet to an"X"cut in
concrete;
THENCE North 33 degrees 24 minutes 03 seconds West a distance of 120.31 feet to the POINT
OF BEGINNING, Containing 0.031 acres of land more or less.
TRACT 7
Lot 9R2R,Block 17,Lake Worth Leases,being a revision of Lots 9R-2 and l OR-2,Block 17,
Lake Worth Leases,an addition to the City of Fort Worth,Tarrant County,Texas,being part of
the J.Wilcox Survey,Abstract Number 1716,according to the Plat thereof as recorded in
Volume B,Page 2513,Plat Records of Tarrant County,Texas,containing 0.6155 acres of land
more or less.
TRACT 8
Lot 9R3,Block 17,Lake Worth Leases,being a portion of Lot 9R,Block 17,Lake Worth
Leases,an addition to the City of Fort Worth,Tarrant County,Texas,being part of the A.M.
Clear Survey,Abstract Number 360,described in that certain Warranty Deed,recorded in
Volume 16375,Page 178,metes and bounds as follows:
BEGINNING at the most northerly northwest comer of Lot 9R,
THENCE the following courses and distances along the east line of Lot 9R; South 89 degrees 55
minutes 44 seconds East a distance of 46.57 feet;South 54 degrees 04 minutes 45 seconds East
distance of 25.98 feet; South 60 degrees 19 minutes 47 seconds East a distance of 28.68 feet;
South 04 degrees 09 minutes 53 seconds West a distances 122.02 feet; South 17 degrees 19
minutes 37 seconds East a distance of 57.14 feet to northerly line of Watercress Road and to the
southeast comer of said Lot 9R;
THENCE North 44 degrees 16 minutes 31 seconds West a distance of 229.43 feet to a point in
the westerly line of Lot 9R;
THENCE North 00 degrees 04 minutes 16 East a distance of 102.38 feet to the POINT of
BEGINNING,said described tract containing 0.502 of an acre of land more or less.
TRACT 9
Lot l OR2R,Block 17,Lake Worth Leases Addition,an addition to the City of Fort Worth,
Tarrant County,Texas,being part of the A.M.Clear Survey,Abstract Number 360,as described
in that certain Plat,recorded in Volume B,Page 2358,Tarrant County,Texas,consisting of
0.5552 acres of land more or less.
TRACT 10
Lots 1,3,4,6,7,9,Block'18,Lake Worth Leases Addition,an addition to the City of Fort
Worth,Tarrant County,Texas,being part of the Jacob Wilcox Survey,Abstract Number
1716,and the A.M.Clear Survey,Abstract Number 360,as described in that certain Plat,
recorded in Cabinet A,Slide 5191,Plat Records,Tarrant County,Texas,containing 4.500 acres
more or less.
TRACT 11
Lots 2,3,4,6,7,8,9, 10, 13, 14, 15, 16, 17 and 20 Block 19,Lake Worth Leases,an addition to
the City of Fort Worth,Tarrant County,Texas,being part of the A.M. Clear Survey,Abstract
Number 360,as described in that certain Plat,recorded in Volume A,Page 6146,Tarrant
County,Texas,containing 8.800 acres of land more or less.
TRACT 12
Lots 21,23,24,25,26,27,28,29,30,31 Block 19,Lake Worth Leases Addition,an addition to
the City of Fort Worth,Tarrant County,Texas,being part of the Jacob Wilcox Survey,Abstract
Number 1716,and the A.M.Clear Survey,Abstract Number 360,as described in that certain
Plat,recorded in Cabinet A,Slide 5216,Plat Records,Tarrant County,Texas,containing 5.6500
acres more or less.
3 OIL AND GAS LEASE-LAKE WORTH 3A
TRACT 13
Lots 3,4,5,6,7,8,9A,9B, 10, 11, 13, 14, 16, 17, 19,20,22,23,24 and 26,Block 20,Lake
Worth Leases,an addition to the City of Fort Worth,Tarrant County,Texas,being part of the
Jacob Wilcox Survey No.33,Abstract Number 1716 and the A.M.Clear Survey,Abstract
Number 360,as described in that certain Final Plat,recorded in Cabinet A,at Page 5783,Plat
Records,Tarrant County,Texas,containing 11.0000 acres more or less
TRACT 14
Lot 13,Block 21,Lake Worth Leases,being a portion of,Lot 13,Block 21, Lake Worth Leases,
an addition to the City of Fort Worth,Tarrant County,Texas,being part of the,M.De La Garza
Survey Abstract Number 616 and the A.M.Clear Survey,Abstract Number 360,as described in
that certain Plat,recorded in Cabinet A,at Slide 9273,Plat Records,Tarrant County,Texas,
only that portion of Lot 13,Block 21,Lake Worth Leases,that lay in the M. De La Garza Survey
Abstract Number 616 and containing 0.8700 acres more or less.
Containing 1,302.163 acres,more or less.
(Lake Worth Zone 3A)
4 OIL AND GAS LEASE-LAKE WORTH 3A
Exhibit B - Lake Worth Gas Leasing Zone - 3A ! ;"",
Zone 3A
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Estimated Acreage for Zone 3A: 9365.8
0 0.25 0.5 1 1.5 2
IMME Miles
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/17/2010
DATE: Tuesday, August 17, 2010 REFERENCE NO.: L-15039
LOG NAME: 062040LAKE WORTH ZONE 3A
SUBJECT:
Approve the Acceptance of a Lease Agreement with Chesapeake Exploration, LLC in the Amount of
$11,304,726.60 for Natural Gas Drilling Under 1,365.80 Acres More or Less of City-Owned Properties
Known as Lake Worth Zone 3A (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 1,365.80 acres more or less of City-owned properties known as Lake Worth Zone 3A to
Chesapeake Exploration, LLC for a two-year primary term.
DISCUSSION:
The Lake Worth Zone 3A area consists of approximately 1,365.80 acres that includes City-owned land,
parks and water properties in the upper northwest area of the lake below Highway 199. The
accompanying exhibit delineates the exact area of the lease.
On March 25, 2008, (M&C L-14502) the City Council authorized the conversion of parks in Lake Worth
Zone 3A for subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP) for Lake Worth Zone 3A was advertised for three consecutive weeks
in the Fort Worth Star-Telegram, published on June 24, 2010, July 1, 2010 and July 8, 2010.
The following sealed bid for the gas lease was received and opened on July 15, 2010.
Bidder Lease Bonus/Acre Total Lease Bonus Percent
Ro alty
Chesapeake Exploration, LLC $8,277.00 $11,304,726.60 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. No use of the surface within the
lease area will be allowed. Further, Chesapeake Exploration, LLC has agreed to comply with additional
lease requirements for erosion control measures and preservation of ecology at off lease drill sites used to
recover minerals under this lease.
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 $11,204,726.60 more or less.
Logname: 062040LAKE WORTH ZONE 3A Page 1 of 2
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. Chesapeake Exploration, LLC has agreed to meet the three percent
M/WBE participation goal.
Per the City's Financial Policy, funds from Water and Sewer property and park land located in and around
Lake Worth (except the Nature Center and Refuge) shall be designated for qualified expenditures in the
development and execution of the 2007 Lake Worth Capital Improvement Implementation Plan, until such
time as the plan projects are completed.
At this time, in Zone 3A, it is estimated that the total lease area includes 1,365.80 acres more or less.
Once Chesapeake Exploration, LLC has finalized their property review and surveys, the actual amounts of
mineral acreage owned by the City with the Lake Worth Zone 3A will be calculated and the revenue
distributed according to the Financial Policy as outlined above.
The property is located in COUNCIL DISTRICT 7, Mapsco 44 T, U, V, Y, Z, 45 S and T.
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 under this agreement.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C246 446100 601159990100 $11,304,726.60 C246 531260 601159990100 $100,000.00
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. 3A - no exhibit.pdf (Public)
2. Accounting records M&C062040LAKE WORTH ZONE 3A.pdf (CFW Internal)
Logname: 062040LAKE WORTH ZONE 3A Page 2 of 2