The URL can be used to link to this page

Home My WebLink AboutContract 42588 CITY SECRETARY CONTRACT NO. 4252> 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 0ydr,&.1 , 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 the2f day of ,2011. LESSOR: LESSEE: CITY OF FORT WORTH CHESAPEAKE EXPLORATION,LLC Oklaho limited liability c mpany 7�� 1�- By:Fernando Costa By:David G.Brannen Title:Assistant City Manager Ittss: Land Manager a0FMir0 ATTEST: X7 ° '0 °° -0 % 01 0 ° 0, City Secretary 0 d p ° cd 000 0 0 p°p0 0p 41 APPROVED AS TO FORM AND LEG LI a�5-t4'p - 152510 Contract: Authorization By: ok '-Z:4--11 Assistant Cit Attorney Date Date: 4 �. . OFFICIAL RECORD CITY SECRETARY t 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. GPJEN UND MY HAND AND SEAL OF OFFICE thiis.,-�day o f y2011. [SEA Notary Public in and for the State of Texas -, t *e EVONIq ANl My Comm,;-4—i &. n Ext 3re�: �'f.P,tti MYC0"Miss,0,7,RES Print Name of Notary Public Here J°ry 1 a,2013 THE STATE OF OKLAHOMA § COUNTY OF 6 k 1 ar om A § 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. TI GIVEN UNDER MY HAND ANSEAL OF OFFICE this /0 day of MVUMdE9- 12011. [SEAL] �Y/ n Notary Public in and for the State of My Commission Expires: Print Name of Notary Public Here OFFICIAL RECORD CITY SECRETARY 2 FT.WORTH,TX Exhibit"A" Being 4.679 acres,more or less,described as follows: Tract 1C1,being a tract of land out of the Edward Taylor Survey,Abstract No. 1561,Tarrant County,Texas,being more particularly described in the metes and bounds of that certain Warranty Deed dated October 15, 1963 by and between Aro Jones and Elizabeth Jones Kirkpatrick,as Grantor and the City of Fort Worth,as Grantee,recorded in Volume 3682 Page 289,Deed Records,Tarrant County,Texas. Save and Except:0.496 acres of land,situated in the Edward Taylor Survey,Abstract No. 1561,Tarrant County,Texas,and being more particularly described in that certain Quit Claim Deed dated August 31, 1988 by and between the City of Fort Worth,as Grantor,and San Antonio Savings and Loan Corporation,as Grantee,recorded in Volume 9575 Page 2209,Deed Records,Tarrant County,Texas. (MEADOWBROOK WATER TANK 3) (RUTHERFORD UNIT) 3 M&C Review Pagel of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA Fo I i COUNCIL ACTION: Approved on 9/27/2011 DATE: 9/27/2011 REFERENCE NO.: L-15256 LOG NAME: 062050 WATER TANK CODE: L TYPE: NON-CONSENT PUBLIC NO HEARING: SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration, LLC in the Amount of$26,700.00 for Natural Gas Drilling Under 5.34 Acres, More or Less, of City- Owned Properties Known as the Meadowbrook Water Tank, Located at Bridge Street Just North of 1-30 (COUNCIL DISTRICT 4) RECOMMENDATION: It is recommended that the City Council approve the acceptance of a Lease Agreement for natural gas drilling under 5.34 acres more or less of City-owned property known as the Meadowbrook Water Tank, located at Bridge Street just north of 1-30 to Chesapeake Exploration, LLC, for a two year primary term. DISCUSSION: On November 1, 2005, (M&C C-21125) City Council approved a lease with Four Sevens Oil Co., Ltd., for natural gas drilling under the Meadowbrook Water Tank Property for a two-year primary term. A total bonus of$9,884.00 was collected by the City. The lease was subsequently acquired by Chesapeake Exploration, LLC. Due to lack of compliance with the lease terms, the lease expired and was rebid in January 2008. On March 18, 2008, (M&C L-14496) City Council approved a lease with Chesapeake Exploration, LLC, for natural gas drilling under the Meadowbrook Storage Tank property for a two year primary term. A total bonus of$40,541.34 was collected by the City. This lease also expired due to lack of compliance with the lease terms. In compliance with the City policy to bid out properties greater than five acres, a Request for Bid Proposals (RFP)for the Meadowbrook Water Tank 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 Water and Sewer Gas Lease Capital Projects Fund, 25 percent to the Water and Sewer Gas Lease Utility Construction Fund and 25 percent to the Water and Sewer Endowment Gas Lease httn:Hanns.cfwnet.orgJcouncil nacket/mc review.asn?ID=15909&councildate=9/27/2011 09/27/2011 M&C Review Page 2 of 2 Fund. The property is located in COUNCIL DISTRICT 4, Mapsco 66W. 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. TO Fund/Account/C enters FROM Fund/Account/Centers P245 446100 601149990100 $13.350.00 P245 446100 601149990300 $6,675.00 T124 446100 060124099901 $6,675.00 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Randle Harwood (6101) Additional Information Contact: Jean Petr(8367) ATTACHMENTS M&C Water Tower2.12df httn-//anns_cfwnet_nro/cnuncil nacket/mc review_acn?TT)=15909Rrcrnmcildate=9/27/2011 09/27/2011