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Home My WebLink AboutContract 42752 CITY SECRETARY 2�5Z CONTRACT N0. MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § BE IT REMEMBERED that on the6��Iday of&hk , 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 ooa�� address indicated above. p 600 °fr �®�T��a� Executed this the / day of , 2011. p��y 00 JV 0 o ®�� V0 LESSOR: ATTEST: °o ° 0 0 0 CITY OF FORT WORTH �Aa� j:�000°0,10*p �� a��A► ,ate Fernando Costa Marty Hendri Assistant City Manager City Secretary APPROVED AS TO FORM AND L- 152�4 LEGALITY: Contract AuthorizationT� �_ "0/ Assistant ity Attorney Date OFFICIAL RECORD CITY SECRETARY FT', WORTH, TX IN 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, ]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 cexpprressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 1'7 day of �� 2011. [SEALearl' N46)ZAi6t� - Notary Public in and for the State of Texas EVON1q p MY CO&WISSIpry X My Commission Expires: 'Uy 10 2013 IRES Print Name of Notary Public Here LESSEE: CHESAPEAKE EXPLORATION, LLC an Oklahoma limited liability company David G. Brannen Land Manager 6 THE STATE OF OKLAHOMA § COUNTY OF § i 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 thisL day of ��/ ,2011. [SE J-X�j Notary Public in and for the State of l�l�3flD1MA� ``\``� �Y My Commission Expires: dP�"� Ry.�'Aj�' Print Name of Notary Public Here #11001263 = _ EXP.02/14/15 - N CITY ' � � FT. WORTH, Ty Exhibit"A" Being 22.480 acres, more or less, situated in the G. Herrera Survey, Abstract No. 2027, Tarrant County, Texas, as described in that certain Warranty Deed dated April 23, 1964, from E. L. TRIMBLE, LEE S. DICKERSON and J. S. DUBOSE to the CITY OF FORT WORTH, recorded in Volume 3937, Page 579, Official Public Records, Tarrant County, Texas. (HALLMARK PARK) M&C Review Pagel of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORTH COUNCIL ACTION: Approved on 10/25/2011 DATE: 10/25/2011 REFERENCE NO.: L-15274 LOG NAME: 062050 HALLMARK PARK CODE: L TYPE: NOW PUBLIC CONSENT HEARING: NO SUBJECT: Approve Acceptance of Lease Agreement with Chesapeake Exploration, LLC, in the Amount of$112,400.00 for Natural Gas Drilling Under 22.480 Acres of City-Owned Properties Known as Hallmark Park Located at 820 Sycamore School Road (COUNCIL DISTRICT 6) RECOMMENDATION: It is recommended that the City Council authorize acceptance of a Lease Agreement for natural gas drilling under 22.480 acres more or less of City-owned properties known as Hallmark Park to Chesapeake Exploration, LLC, in the amount of$112,400.00 for a two-year primary term. DISCUSSION: On August 17, 2010, (M&C L-15044)the City Council authorized the conversion of Hallmark Park for subsurface drilling and the extraction of natural gas from an off site location. A Request for Bid Proposals(RFP)for a natural gas lease for Hallmark Park was advertised for two consecutive weeks in the Fort Worth Star-Telegram, published on September 14, 2011 and September 21, 2011. The following sealed bid for the natural gas lease was received and opened on September 22, 2011. Bidder Lease Bonus/Acre Total Lease Bonus Percent Ro •alt Chesapeake Exploration, LLC $5,000.00 $112,400.00 25 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 plans was also evaluated. Timely award and execution of this lease will allow for inclusion of this property 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 the Parks and Community Services Capital Improvements Fund to be used for capital improvements at this park. This park has not received funds from grants and therefore the mineral revenue is unrestricted. Royalty and other revenues 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 General Endowment Gas Lease Fund. http://apps.cfwnet.org/council_packet/mc review.asp?ID=16015&counciidate=10/25/2011 1/17/2012 M&C Review Page 2 of 2 The property is located in COUNCIL DISTRICT 6, Mapsco 104H and 105E. 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 F u nd/Accou nt/C enters FROM Fund/Account/Centers C282 446100 801929966900 $112.400.00 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 Hallmark park.jpg http://apps.cfwnet.org/council_packet/mc review.asp?ID=16015&councildate=10/25/2011 1/17/2012