HomeMy WebLinkAboutContract 44748 Crnr sECRETARY
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 day of OWL& , 2013, 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. Ahay
Executed this the ofc 13.
LESSOR: ��� 00000 W_ _
®` ATTEST:
CITY OF FORT WORTH dp.goo c
O 00000000Com'
Fernando Costa �a44A54cc• Ci y Secret
Assistant City Manager
APPROVED AS TO FORM AND
LEGALITY:
Pku{&
,A:ss'istantthty Attorn
OFFICIAL RECORD
CITY SECRETARY
RECEIVED AUG 26 2013 FL 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�_day o 2013.
[SEAL `
W_t�� Y4�ze Notary Public in and
State of Texas '"`"14: EVONIA DAMIELS
MY COMMISSION EXPIRES
Ady 10,2013
My Comn ission Expires:
04
�lD3 Print Name of Notary PuRic Here
LESSEE:
CHESAPEAKE EXPLO TION, LLC
an Ok khoma limited Iia 'lity company
Clifford J. erritt
Vice Presid nt—Land, Southern Division
THE STATE OF OKLAHOMA §
COUNTY OF 6�1(, hCW C,�_ §
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared
Clifford J. Merritt, Vice President — Land, Southern Division, 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_L day of ,2013.
otary Pu 'c in and for the � pTRT�
Sir
ate of = #12007039
MC91miiss}g� p x i es:
y L0%'�. (CO z Print Name of Notary Public Here oN��o„`P���
Exhibit A
A Tract of land situated in the C.T. Hilliard Survey, Abstract No. 715, Tarrant County, Texas, described
by metes and bounds as follows:
Beginning 480 varas North and 566.7 varas South 89 degrees 20 minutes West of the Southeast corner of
the C.T. Hilliard Survey;
THENCE South 89 degrees 20 minutes West 376.3 varas;
THENCE South 0 degrees 20 minutes East 150 varas;
THENCE North 89 degrees 20 minutes East 376.3 varas;
THENCE north 0 degrees 20 minutes West 150 varas to the place of beginning and containing
approximately 10 acres of land, being the same land described in a certain deed executed by W. S. Keller
and wife, Fannie Keller, to W.C. Jones, dated May 1, 1916 recorded in Volume 414, Page 566, Deed
Records of Tarrant County, Texas, and being Warranty Deed to the City of Fort Worth, a Municipal
Corporation. The same land described in a certain deed executed by Evelyn Jones Griffin and husband,J.
P. Griffin, to O. S. Jones, Jr., dated June 23, 1947 recorded in Volume 1915, Page 215, Deed Records of
Tarrant County,Texas;
SAVE AND EXCEPT that part conveyed to the City of Fort Worth from O.S. Jones,Jr., also known as C.
S. Jones, Jr., and wife Dollie Mae Jones, by deed dated September 25, 1970, recorded in Volume 4949,
Page 17, Deed Records of Tarrant County,Texas.
(SHACKLEFORD PARK)
(VAQUERO UNIT)
M&C Review Pagel of 2
�.fi�aal bite of the i,ay of Fort'0jot1h, Texas
CITY COUNCIL AGENDA FORTT11
COUNCIL ACTION: Approved on 6/4/2013
DATE: 6/4/2013 REFERENCE G-17911 LOG NAME: 06SHACKLEFORD PARK
NO..
NOW PUBLIC
CODE: G TYPE: CONSENT HEARING:
NO
SUBJECT: Authorize Lease Agreement with Chesapeake Exploration, L.L.C., in the Amount of
$20,000.00 for Natural Gas Drilling Under Ten Acres of Shackleford Park Located at 4615
Shackleford Street (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize a lease Agreement for natural gas drilling under ten
acres more or less of City-owned property known as Shackleford Park to Chesapeake Exploration,
L.L.C., for a two year primary term.
DISCUSSION:
On January 24, 2012, (M&C L-15313) the City Council authorized the subsurface use of Shackleford
Park for the extraction of natural gas from an off site location.
A Request for Bid Proposals (RFP) for the Shackleford Park property was advertised for two
consecutive weeks in the Fort Worth Star-Telegram, published on May 1, 2013 and May 8, 2013.
The following sealed bid for the gas lease was received and opened on May 9, 2013.
Bidder Lease Total Lease Percent
Bonus/Acre Bonus Ro alt
Chesapeake Exploration, $2,000.00 $20,000.00 25.00
L.L.C. percent
The bid received was evaluated by Staff in regard to the lease bonus rate and royalties paid to the
City, the bidder's drilling plan, reputation, financial status, project team and compliance
history. Chesapeake Exploration, L.L.C., met all the minimum requirements of the bid and is,
therefore recommended for award of this lease. Timely award and execution of this lease will allow
for inclusion of the 10 acres of Shackleford Park 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-17801) approved February 5, 2013 which direct 100 percent of the bonus
to the Park Gas Lease Project 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.) 50 percent of the
revenue will be allocated to the Capital Projects Reserve Fund; and (ii.) 50 percent of the revenue will
be allocated to the General Endowment Gas Lease Fund.
The property is located in COUNCIL DISTRICT 8, Mapsco 92C.
FISCAL INFORMATION/CERTIFICATION:
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18488&councildate=6/4/2013 8/26/2013
M&C Review Page 2 of 2
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.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 446100 801929968300 $20,000.00
_ _. .......__. ...... ... . ............. . __ ....... _. ... __.. ................_. ...
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Jean Petr(8367)
D. J. Harrell (8032)
ATTACHMENTS
Shackleford Park.pdf
http://apps.cfwnet.org/council_packet/mc review.asp?ID=18488&councildate=6/4/2013 8/26/2013