HomeMy WebLinkAboutContract 42586 CITY SECRETAR1r�25$�,
CONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the 45--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. 6V—/�
Executed this the day of f/n,{'[112011.
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,LLC
an`OkklahJw4m
limited liability com any
L V _
By:Fernando Costa By:David G.Brannen
Title:Assistant City Manager 4ob6s� nd Manager
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City Secretary
APPROVED AS TO FORM AND LEG LIT
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By: l`NV"�� tL q_-;2,7-Li
Assistant City Attorney Date
Date: I
10-07-11 P02:23 IN
OFFICIAL RECORD,
11-21-11 A11 :35 IN 1 CITY SECRETARY
FT.WORTH,TX
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-4 day of CQ/V 2011.
[SE. of.40�
Notary Public in and forth
State of Texas =tea PIONIAOANIELS
6iy COMMISSION EXPIRES
am July 10,2013
My Commission Expires:
�7—/D 1.3 Print Name of Notary Public Here
THE STATE OF OKLAHOMA §
COUNTY OF _ 014L*lbKA §
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,]mown 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 /q"day of_ 0e4.6t✓ 2011.
[SEAL], /j
Notary Public in and for the
State of -
f r
My Commission Expires:
Cuw4sTorpWn LA4Ah4,4 Print Name of Notary Public Here
OFFICIAL RECORD
CITY SECRETARY
2 FT.VVORTH,TX
Exhibit"A"
Being 11.95892,acres more or less,and known as Lot 1, Block 14A, Woodhaven Country Club
Estates, an addition to the City of Fort Worth, Tarrant County, Texas, being part of the P.E.
Coleman Survey,A-372 and the H. Robinson Survey,A-1315, according to the Plat recorded in
Volume 388-97,Page 25,Plat Records,Tarrant County,Texas.
WOODHAVEN COUNTRY CLUB ESTATES,LOT 1,BLOCK 14A
(RUTHERFORD AND BURKE UNITS)
3
M&C Review ® Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Fb w
COUNCIL ACTION: Approved on 9/27/2011
DATE: 9/27/2011 REFERENCE NO.: L-15257 LOG NAME: 062050
WOODHAVEN
CODE: L TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration, LLC, in the
Amount of$59,794.60 for Natural Gas Drilling Under 11.958 Acres, More or Less, of City-
Owned Properties Known as Woodhaven Country Club Estates, Lot 1, Block 14A, Located
at 5901 Boca Raton Boulevard (COUNCIL DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 11.958 acres more or less of City-owned property known as Woodhaven Country Club
Estates, Lot 1, Block 14A, located at 5901 Boca Raton Boulevard to Chesapeake Exploration, LLC,
for a two-year primary term.
DISCUSSION:
A Request for Bid Proposals (RFP)for Lot 1, Block 14A, Woodhaven Country Club Estates was
advertised for two consecutive weeks in the Fort Worth Star Telegram, published on August 3, 2011
and August 10, 2011. The Bid Opening was scheduled for August 11, 2011, however no bids were
received.
A lease for this property was subsequently negotiated with Chesapeake Exploration, LLC, based on
$5,000.00 per acre bonus. Chesapeake Exploration LLC, has agreed to all terms of the City standard
lease which include a two-year primary term, 25 percent royalty and no surface use. Based on the
bonus per acre rate, compliance with standard City lease terms and access to a drillsite to develop
the minerals, it is recommended that the lease be awarded to Chesapeake Exploration LLC. 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 property is less than 40 acres therefore no
M/WBE 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) and will be allocated 50 percent to
the Capital Projects Reserve Fund and 50 percent to the General Endowment Gas Lease Fund.
The property is located in COUNCIL DISTRICT 4, Mapsco 65U.
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 to the City.
TO Fund/Account/Centers FROM Fund/Account/Centers
http://apps.cfwnet.org/council vacket/mc review.asn?ID=15908&councildate=9/27/2011 09/27/2011
M&C Review Page 2 of 2
40
GC10 446100 006060001000 $29.897.30
T127 446100 006127099901 $29.897.30
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr(8367)
ATTACHMENTS
5901 Boca Raton M&C.gdf
htto://aDos.cfwnet.ore/council Dacket/mc review.asD?ID=15908&councildate=9/27/2011 09/27/2011