HomeMy WebLinkAboutContract 43007 CITY SECRETARY
CONTRACT N0. zl 3oo--7
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 , 2012, a Paid Up
Oil and Gas Lease was made and entered into by and between th C Y 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 th4 day of , 2012.
LESSOR: Qo on��t ATTEST:
CITY OF FORT WORTH AV F 00 oke
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Fernando Costa 0 00 city ec N t/�,(,ijt S91
Assistant City Manager � a°°u00000°o° �,d
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APPROVED AS TO FORM AND
contract uthor zatIOR LEGALITY:
PA i/� v.`�tDI r - 14�
Date Ass'istantktity Attorney
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
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(V day of kb'U&-Lt4 2012.
[SE L] p M HiRRI.iNG, �
Notary Public in and for the =*• My coMMISS&I FxPiREs
State of Texas ?;�f^�• February2 ER
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My Cori sion Expires:
({ D , (�l u Print Name of Notary Public Here
LESSEE:
CHESAPEAKE EXPLORATION, LLC
an Oklahoma limited liability company
David G. Brannen
Land Manager
THE STATE OF OKLAHOMA §
I,n §
COUNTY OF OKX L_§
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 tD9fday of (,��!' , 2012.
[SEAL
Notary P is -n and for the `\\���„�rrrrr►�y,��,
State of ` •{ HUMp��,,���
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Print Name of Notary Public Here - #1 i0o1263
EXN. )2J14115 Q
OFFICIAL RECORD �:��N� •.. PUgX\ ...'- O'
f?zCITY SECRETARYOF•,,,ii�lrrrrrr� '66 _•�
FT. WORTH, TX
Exhibit A
Being 11.993 acres of land, more or less, out of the W. Stone Survey, A-1400, Block G, Lot 1 out of the
Coventry Addition, an addition to the City of Fort Worth, Tarrant County, Texas and being more fully
described in that certain deed from The Cities Corporation to the City of Fort Worth on December 30,
1982,Volume 9157, Page 1150.
(DEER CREEK PARK)
. .
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/5/2011
DATE: Tuesday,April 05, 2011 REFERENCE NO.: L-15163
LOG NAME: 06062050 DEER CREEK PARK
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration,LLC,in the Amount of$42,934.94
for Natural Gas Drilling Under 11.993 Acres of City—Owned Properties Known as Deer Creek Park Located
at 1800 Hemphill Street(COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas drilling
under 11.993 acres more or less of City—owned properties known as Deer Creek Park to Chesapeake
Exploration,LLC,in the amount of$42,934.94 for a two—year primary term,located at 1800 Hemphill
Street.
DISCUSSION:
On September 14,2010, (M&C L-15044)the City Council authorized the conversion of Deer Creek Park for
subsurface drilling and the extraction of natural gas from an off site location.
A Request for Bid Proposals(RFP)for Deer Creek Park was advertised for three consecutive weeks in the
Fort Worth Star—Telegram,published on January 20,2011,January 27, 2011 and February 3,2011.
The following sealed bid for the gas lease was received and opened on February 10, 2010.
Bidder se BonuslA= Total Lease Bonus Percent
Ruak
Chesapeake Exploration, LLC $3,580.00 $42,934.94 25.00 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 plan,reputation,financial status,project team and compliance history were also evaluated.
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 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 Federal and/or State grants and therefore the mineral revenue is
unrestricted.Other revenue 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 Fort Worth Permanent Fund.
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The property is located in COUNCIL DISTRICT 6,Mapsco 119 E.
FISCAL INFORMATION:
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
C282 446100 801929966800 $42.934.94
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. 2 Accounting records 06062050 DEER CREEK P RK.pdf
2.Deer Creek Park MC.inQ