HomeMy WebLinkAboutContract 42355 CITY SECRETARY
CONTRACT NO.y
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STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
SECOND AMENDMENT TO OIL AND GAS LEASE
This Second Amendment to Oil and Gas Lease (this"Second Amendment") is entered into by and
between CITY OF FORT WORTH,a home rule municipal corporation of the State of Texas,whose
address is 1000 Throckmorton Street, Fort Worth, Texas 76102 ("Lessor"), and CHESAPEAKE
EXPLORATION, L.L.C., whose address is P.O. Box 18496, Oklahoma City, Oklahoma 73154 (the
"Lessee"),to be effective for all purposes as of the 1 st day of June, 2010(the"Effective Date").
WHEREAS, reference is hereby made to that certain Oil and Gas Lease, dated effective the 1st
day of June,2010, by and between Lessee and Lessor covering 79.842 gross acres more or less in Tarrant
County, Texas, a Memorandum of which lease is recorded as Instrument Number D210160123 in the
Official Public Records of Tarrant County,Texas(the"Lease");
WHEREAS, reference is hereby made to that certain First Amendment to Oil and Gas Lease,
dated effective the 1st day of June, 2010, by and between Lessee and Lessor covering 81.369 gross acres
more or less in Tarrant County, Texas, which is recorded as Instrument Number D211037829 in the
Official Public Records of Tarrant County,Texas (the"First Amendment");
WHEREAS, Lessor and the Lessee hereby desire to execute this Second Amendment.
NOW, THEREFORE,Lessor and the Lessee,for good and valuable consideration,the receipt and
sufficiency of which is hereby acknowledged and confessed, and the covenants and agreements stated
herein,hereby amend the terms of the Lease as set forth below:
The entirety of the Exhibit A of the Lease is removed and replaced by the following new
Exhibit:
92.912080 acres,more or less, as better described in the following sixteen(16) tracts:
Tract 1: Being all of Block 28, Candleridge Addition, Phase IV, an addition to the City of Fort Worth,
Tarrant County, Texas as recorded in Volume 388-107, Page 34 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 8/5/1976 and filed on 8/26/1976 at
Volume 6077, Page 468, of the County Clerk Records, Tarrant County, Texas, containing 1.083
acres, more or less, for subject tract, and 0.210806 calculated acres, more or less, for adjacent
streets.
Tract 2: Being all of Tract A, Block 20, Candleridge Addition, Phase III, an addition to the City of Fort
Worth,Tarrant County,Texas as recorded in Volume 388-107,Pa es 32, 33 and 33A of the Tarrant
County Plat Records and being situated in the James W. Willia s urvW
tlepage
Survey, A-971 and the I. Flores Survey, A-507, City of Fort W *FFas, and
CITY�7'.
Candleridge Park-2nd Amendment.docx Page 1
08- -
being those lands conveyed by CandleRidge Development Corporation, a Texas Corporation, to the
City of Fort Worth by Warranty Deed dated 8/5/1976 and filed on 8/26/1976 at Volume 6077,Page
468, of the County Clerk Records, Tarrant County, Texas, containing 25.176 acres, more or less,
for subject tract, and 3.07321 calculated acres, more or less,for adjacent streets.
Tract 3: Being all of Tract A, Block 21, Candleridge Addition, Phase N, an addition to the City of Fort
Worth, Tarrant County, Texas as recorded in Volume 388-107, Page 34 of the Tarrant County Plat
Records and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant
County, Texas,and being those lands conveyed by CandleRidge Development Corporation,a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 8/5/1976 and filed on 8/26/1976 at
Volume 6077, Page 468, of the County Clerk Records, Tarrant County, Texas, containing 13.458
acres, more or less, for subject tract, and 1.312940 calculated acres, more or less, for adjacent
streets.
Tract 4: Being all of Tract A, Block 27, Candleridge Addition, Phase N, an addition to the City of Fort
Worth, Tarrant County, Texas as recorded in Volume 388-107, Page 34 of the Tarrant County Plat
Records and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant
County, Texas,and being those lands conveyed by CandleRidge Development Corporation,a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 8/5/1976 and filed on 8/26/1976 at
Volume 6077, Page 468, of the County Clerk Records, Tarrant County, Texas, containing 5.087
acres, more or less, for subject tract, and 0.287777 calculated acres, more or less, for adjacent
streets.
Tract 5: Being all of Tract A, Block 8, Candleridge Addition, an addition to the City of Fort Worth,
Tarrant County, Texas as recorded in Volume 388-98, Page 30 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599 and the W.W. Wheat Survey,A-1646,
City of Fort Worth, Tarrant County, Texas, and being those lands conveyed by CandleRidge
Development Corporation, a Texas Corporation, to the City of Fort Worth by Warranty Deed dated
6/7/1976 and filed on 6/21/1976 at Volume 6036, Page 879, of the County Clerk Records, Tarrant
County, Texas, containing 8.448 acres, more or less, for subject tract, and 1.151258 calculated
acres,more or less, for adjacent streets.
Tract 6: Being all of Tract A, Block 45, Candleridge Addition, an addition to the City of Fort Worth,
Tarrant County, Texas as recorded in Volume 388-102, Pages 6 and 7 of the Tarrant County Plat
Records and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant
County, Texas,and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 6/7/1976 and filed on 6/21/1976 at
Volume 6036, Page 879, of the County Clerk Records, Tarrant County, Texas, containing 5.888
acres, more or less, for subject tract, and 0.810322 calculated acres, more or less, for adjacent
streets.
Tract 7: Being all of Block 47, Candleridge Addition, an addition to the City of Fort Worth, Tarrant
County, Texas as recorded in Volume 388-102, Pages 6 and 7 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 6/7/1976 and filed on 6/21/1976 at
Volume 6036, Page 879, of the County Clerk Records, Tarrant County, Texas, containing 5.086
acres of land, more or less, for subject tract, and 0.962081 calculated acres, more or less, for
adjacent streets.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Candleridge Park-2nd Amendment.docx Page 2
Tract 8: Being all of Block 48, Candleridge Addition, an addition to the City of Fort Worth, Tarrant
County, Texas as recorded in Volume 388-102, Pages 6 and 7 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 6/7/1976 and filed on 6/21/1976 at
Volume 6036, Page 879, of the County Clerk Records, Tarrant County, Texas, containing 2.020
acres of land, more or less, for subject tract, and 0.580362 calculated acres, more or less, for
adjacent streets.
Tract 9: Being all of Block 49, Candleridge Addition, an addition to the City of Fort Worth, Tarrant
County, Texas as recorded in Volume 388-102, Pages 6 and 7 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 6/7/1976 and filed on 6/21/1976 at
Volume 6036, Page 879, of the County Clerk Records, Tarrant County, Texas, containing 1.250
acres of land, more or less, for subject tract, and 0.382990 calculated acres, more or less, for
adjacent streets.
Tract 10: Being all of Tract A, Block 35, Candleridge Addition, Phase V, an addition to the City of Fort
Worth, Tarrant County, Texas as recorded in Volume 388-108, Page 83 of the Tarrant County Plat
Records and being situated in the E. Littlepage Survey A-971, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 11/22/1976 and filed on 12/13/1976
at Volume 6140, Page 413, of the County Clerk Records, Tarrant County, Texas, containing 1.563
acres of land, more or less, for subject tract, and 0.419162 calculated acres, more or less, for
adjacent streets.
Tract 11: Being all of Tract A, Block 37, Candleridge Addition, Phase V, an addition to the City of Fort
Worth, Tarrant County, Texas as recorded in Volume 388-108, Page 83 of the Tarrant County Plat
Records and being situated in the E. Littlepage Survey A-971, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by CandleRidge Development Corporation, a Texas
Corporation, to the City of Fort Worth by Warranty Deed dated 11/22/1976 and filed on 12/13/1976
at Volume 6140, Page 413, of the County Clerk Records, Tarrant County, Texas, containing 5.132
acres of land, more or less, for subject tract, and 1.454384 calculated acres, more or less, for
adjacent streets.
Tract 12: Being all of Tract A, Block 36, Candleridge Addition, Phase V, an addition to the City of Fort
Worth, Tarrant County, Texas as recorded in Volume 388-109, Page 73 of the Tarrant County Plat
Records and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant
County,Texas,and being those lands conveyed by CandleRidge Development Corporation,a Texas
Corporation,to the City of Fort Worth by Warranty Deed dated 11/22/1976 and filed on 12/13/1976
at Volume 6140, Page 413, of the County Clerk Records, Tarrant County, Texas, containing 4.425
acres of land, more or less, for subject tract, and 0.650746 calculated acres, more or less, for
adjacent streets.
Tract 13: Being all of Tract 1, Candleridge Addition, an addition to the City of Fort Worth, Tarrant
County, Texas as recorded in Volume 388-102, Pages 6 and 7 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by Trailwood Land Company, a partnership composed of
Irwin Krauss and S. G. Payte to the City of Fort Worth by W /1975 and
filed on 12/30/1975 at Volume 5941, Page 315, of the CourtbPOfbIJ&1cffk6t County,
CITY SECRETARY
Candleridge Park-2nd Amendment.docx FT. WORTH, TX Page 3
Texas,containing 0.656 acres of land,more or less,for subject tract, and 0.124187 calculated acres,
more or less,for adjacent streets.
Tract 14: Being all of Tract 2, Candleridge Addition, an addition to the City of Fort Worth, Tarrant
County, Texas as recorded in Volume 388-102, Pages 6 and 7 of the Tarrant County Plat Records
and being situated in the James W. Williams Survey, A-1599, City of Fort Worth, Tarrant County,
Texas, and being those lands conveyed by Trailwood Land Company, a partnership composed of
Irwin Krauss and S. G. Payte to the City of Fort Worth by Warranty Deed dated 12/29/1975 and
filed on 12/30/1975 at Volume 5941, Page 318, of the County Clerk Records, Tarrant County,
Texas,containing 0.570 acres of land,more or less,for subject tract,and 0.122853 calculated acres,
more or less,for adjacent streets.
Tract 15: Being all of Tract IFF,the Tarrant County Tract I.D.,out of the James W.Williams Survey,A-
1599, City of Fort Worth, Tarrant County, Texas, and being those lands conveyed by Trailwood
Land Company, a partnership composed of Irwin Krauss and S. G. Payte to the City of Fort Worth
by Warranty Deed dated 11/19/1976 and filed on 12/27/1976 at Volume 6148, Page 186, of the
County Clerk Records, Tarrant County, Texas, containing 0.567 acres of land, more or less, for
subject tract,and 0 calculated acres,more or less,for adjacent streets.
Tract 16: Being all of Tract 1 GG,the Tarrant County Tract I.D.,out of the James W. Williams Survey,A-
1599, City of Fort Worth, Tarrant County, Texas, and being those lands conveyed by Trailwood
Land Company, a partnership composed of Irwin Krauss and S. G. Payte to the City of Fort Worth
by Warranty Deed dated 11/19/1976 and filed on 12/27/1976 at Volume 6148, Page 188, of the
County Clerk Records, Tarrant County, Texas, containing 0.960 acres of land, more or less, for
subject tract,and 0 calculated acres,more or less,for adjacent streets.
EXECUTED on the date(s) subscribed to the acknowledgements below, but for all purposes
effective as of the Effective Date hereof.
LESSOR:
APPROVED A• AND LEGALITY: CITY OF FORT WORTH
By:
Fernando Costa
Title:Assistant City Manager
Attested by: LESSEE:
f—Y"*\ CHESAPEAKE EXPLORA ON,L.L.C.
an Oklahoma limited liab' ' company
Marty Hendrix, ity °°a° o����
100
o�
° o���d By:
0 , Henry J. Hood, r Vice President—
o � Land and Legal&General Counsel
o°°0000000OFFICIAL RECORD
CITY SECRETARY 0�a���no�a�p Contract Authorization
FT.We"N 2n Amendment.docx i ? Page 4
Date
ACKNO W LEDGrUENTS
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on this�g�ay o , 2011, by
Fernando Acosta,as Assistant City Manager,of CITY OF FORT WORTH.
tary Public, State of exas
Notary's name(printed) r� ;�a`�`'`'' 'rg EVONIA DANIELS
My commission expires: MY COMMISSION EXPIRES
July 10,2013
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me on this day of O t1 bol-, 2011, by
Henry J. Hood, as Senior Vice President - Land and Legal & General Coun el, of CHESAPEAKE
EXPLORATION,L.L.C. on behalf of said limited liability company.
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My Commission Numb_r:
My Commission Expires: EXP. 02/14/15 € —
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OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
Candleridge Park-2nd Amendment.docx Page 5
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/26/2011
DATE: Tuesday, July 26, 2011 REFERENCE NO.: L-15221
LOG NAME: 062050 CANDLERIDGE PARK
SUBJECT:
Approve the Amendment to the Candleridge Park Oil and Gas Lease with Chesapeake Exploration, LLC, in
the Amount of$43,296.33 as Added Bonus for 11.543 Additional Acres (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council Approve the Amendment to the Candleridge Park Oil and Gas
Lease with Chesapeake Exploration, LLC, in the amount of$43,296.33 as bonus for 11.543 additional
acres, more or less, correcting the original lease acreage.
DISCUSSION:
On November 17, 2009, (M&C L-14893) City Council authorized the conversion of Candleridge Park for
subsurface drilling and the extraction of natural gas from an off site location.
On May 18, 2010, (M&C L-14982) City Council authorized the acceptance of a lease agreement for
natural gas drilling under 79.842 acres more or less of City-owned properties known as Candleridge
Park. Shortly after execution of the lease, it was determined that additional acreage should be included in
the lease. The First Amendment to the lease was executed to add 1.57 acres to the original lease making
a total of 81.369 acres, more or less, with additional bonus of$5,367.41. Upon further review and
calculation, 11.543080 acres were actually attributed to the property bringing the total lease acreage to
92.912080 acres, more or less, as reflected in the Second Amendment to the Candleridge Park lease.
On November 9, 2010, (M&C L-15093) City Council authorized the City Manager to execute lease
amendments for five acres or ten percent of the lease whichever is more. The additional acreage in the
Second Amendment is 11.543080 acres, more or less, which is greater than ten percent of the original
lease and the First Amendment.
Approval of this Mayor and Council Communication (M&C) will correct the lease acreage amount in the
Second Amendment and accurately reflect the intent of the lease authorized in M&C L-14982.
In accordance with the City's Mineral Management Consulting Agreement, City Secretary Contract
Number 37980 in effect at the time of the lease, the net transfer to the City is estimated to be $42,430.40,
more or less.
The additional revenues received from the Amendments to this lease are considered bonus and 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 the Parks and Community Services Capital
Improvements Fund to be used for capital improvements at this park.
The property is located in COUNCIL DISTRICT 6, Mapsco 103 B, C, D, F, G, and H.
Logname: 062050 CANDLERIDGE PARK Page 1 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.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929963400 $43,296.33 C282 531260 801929963400 $865.93
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. 062050 Candleridge Park071111.pdf (CFW Internal)
2. M&C CandleridgePark.pdf (Public)
Logname: 062050 CANDLERIDGE PARK Page 2 of 2