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Home My WebLink AboutContract 45623 CITY SECRETARY, Z CONTRACT NO. Electronically Recorded L 0 6 7 0 6 3 9 MEMORANDUM OF OIL AND GAS LEASE Chesapeake Operating, Inc. STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § 4j BE IT REMEMBERED that on the O`-' day of , 2014, a Paid Up Oil and Gas Lease was made and entered into by and between th 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 thep�day of , 2014. LESSOR: ATTEST: CITY OF FOR WORTH ORS ®�T�® Fe nand C to / $ _ Secre j Assistant City Manager `� �J v$ 8 4O'D0000000 rEX1 APPROVED AS TO FORM AND EGALITY: a� r' Assistvant City Attorn i m v 3 OFFICIAL RECORD c CITY SECRETARY FT.WORTH,TX THE STATE OF TEXAS § COUNTY OF TARRANT § 6rd(L 4"ODJ 4114, BEFORE ME,the undersigned,a Notary Public, on this day personally appeared Ferhando 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 of 2014. S ALl Notary Public in and for the State of Texas s `` �y CO � �ON p ES My Com�miX10n`F pines: February 2,2018 ot, Print Name of Notary Public Here LESSEE: CHESAPEAKE EXPLORATION,LLC, an Oklahoma limited liability company By: Stan Williams II Its: Manager—Land,Barnett&Haynesville 0 THE STATE OF OKLAHOMA § COUNTY OF 091&K464611 § BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Stan Williams II, Manager—Land, Barnett& Haynesville, 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 J1day of fAam 12014. lSX] _..�t.�t.• A�i� Notary Public in and for the ---------—------------------ - -.-_ - r State of CXWv 0MA 1 ANN DEXTER f se�►� Notary PubNcStIft M Commission Expires. a ord.rwme S W�ll�� Commloalpt��94002744 Expin4 0 /27/18 INAL6 21.2.0119 Print Name of Notary Public Here flash Ixxitr Exhibit A Tract 445 of Ridgmar Addition BEING a 7.442 acre tract of land situated in the John Collett Survey, Abstract Number 262 and the Peterson Pate Survey, Abstract Number 1202, located in the City of Fort Worth, Tarrant County, Texas, and being all of Block 22, Ridgmar Addition, an addition to the City of Fort Worth, as recorded in Volume 388-19, Page 45 of the Plat Records of Tarrant County, Texas (P.R.T.C.T.), and being all of the area between said Block 22 and the centerline of the adjoining roads, said 7.442 acre tract being more particularly described as follows: BEGINNING at the centerline intersection of Saxony Road (a 50' width right-of-way) and Aden Road (a 50' width right-of-way); THENCE South 62 degrees 17 minutes 46 seconds East, with the centerline of said Saxony Road a distance of 324.56 feet to the centerline intersection of said Saxony Road and Versailles Road (a 50' width right-of-way) also being the beginning of a curve to the left, having a radius of 326.99 feet and whose chord bears South 09 degrees 22 minutes 09 seconds West, a distance of 204.03 feet; THENCE southwesterly, continuing along said curve to the left, departing the centerline of said Saxony Road, with the centerline of said Versailles Road, through a central angle of 36 degrees 21 minutes 25 seconds and an arc distance of 207.49 feet to the beginning of a compound curve to the left, having a radius of 3,663.89 feet and whose chord bears South 12 degrees 49 minutes 47 seconds east, a distance of 525.54 feet; THENCE southeasterly, continuing with the centerline of said Versailles Road, along said curve to the left, through a central angle of 08 degrees 13 minutes 32 seconds and an arc distance of 525.99 feet to the end of said compound curve to the left; THENCE South 18 degrees 13 minutes 36 seconds East, continuing with the centerline of said Versailles Road, a distance of 140.50 feet to the centerline intersection of said Versailles Road and Genoa Road (a 60' width right-of-way) also being the beginning of a curve to the right, having a radius of 1,731.77 feet and whose chord bears South 69 degrees 59 minutes 54 seconds West, a distance of 95.99 feet; THENCE southwesterly, continuing along said curve to the right, departing the centerline of said Versailles Road, with the centerline of said Genoa Road, through a central angle of 03 degrees 10 minutes 35 seconds and an arc distance of 96.00 feet to the end of said curve to the right; THENCE South 71 degrees 35 minutes 57 seconds West, continuing with the centerline of said Genoa Raod, a distance of 321.52 feet to the centerline intersection of said Genoa Road and Saxony Road (a 50' width right-of-way); THENCE North 18 degrees 21 minutes 16 seconds West, departing said Genoa Road, with the centerline of said Aden Road, a distance of 34.94 feet to the beginning of a curve to the right, having a radius of 3,047.97 feet and whose chord bears North 14 degrees 59 minutes 35 seconds WIL AND GAS LEASE-MARY AND MARVIN LEONARD PARK having a radius of 3,047.97 feet and whose chord bears North 14 degrees 59 minutes 35 seconds West, a distance of 334.09 feet; THENCE northwesterly, continuing with the centerline of said Aden Road along said curve to the right through a central angle of 06 degrees 17 minutes 00 seconds and an arc distance of 334.26 feet to the end of said curve to the right; THENCE North 11 degrees 48 minutes 53 seconds West, continuing with the centerline of said Aden Road, a distance of 323.17 feet to the beginning of a curve to the right, having a radius of 650.77 feet and whose chord bears North 07 degrees 44 minutes 35 seconds East, a distance of 435.75 feet; THENCE northeasterly, continuing with the centerline of said Aden Road, along said curve to the right, through a central angle of 39 degrees 07 minutes 13 seconds and an arc distance of 444.33 feet to the POINT OF BEGINNING and containing 7.442 of an acre, or 324,184 square feet of land, more or less. (MARY AND MARVIN LEONARD PARK) (RIDGMAR UNIT) Page 1 of 5 Electronically Recorded Tarrant County Official Public Records 5/19/2014 9:10 AM D214101167 �uwt 16ati��.v PGS 5 $32.00 Mary Louise Garcia Submitter. SIMPLIFILE R CHESAPEAKE OPERATING, INC ATTN: RECORDING TEAM P.O. BOX 18496 OKLAHOMA CITY, OK 73154 Submitter: CHESAPEAKE OPERATING, INC MARY LOUISE GARCIA TARRANT COUNTY CLERK TARRANT COUNTY COURTHOUSE 100 WEST WEATHERFORD FORT WORTH, TX 76196-0401 DO NOT DESTROY WARNING —THIS IS PART OF THE OFFICIAL RECORD ELECTRONICALLY RECORDED BY SIMPLIFILE ANY PROVISION WHICH RESTRICTS THE SALE, RENTAL OR USE OF THE DESCRIBED REAL PROPERTY BECAUSE OF COLOR OR RACE IS INVALID AND UNENFORCEABLE UNDER FEDERAL LAW. M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoRoRrFI COUNCIL ACTION: Approved on 5/13/2014 DATE: 5/13/2014 REFERENCE ,L-15681 LOG NAME: 06RATIFYMMLEONARDPARK NO.. CODE: L TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Ratification of Correction Deed with the Heirs of Mary Leonard on the Mineral Lease Agreement with Chesapeake Exploration, LLC, for Natural Gas Drilling Under City-Owned Property Known as Mary and Marvin Leonard Park (COUNCIL DISTRICT 3) RECOMMENDATION: It is recommended that the City Council: 1. Ratify the Correction Deed providing for the heirs of Mary Leonard to retain a 25 percent non- executive mineral interest in the Mary and Marvin Leonard Park 7.442 mineral acres donated to the City on October 5, 1983; and, 2. Ratify the lease Agreement for natural gas drilling under City-owned property known as Mary and Marvin Leonard Park 7.442 total mineral acres more or less, 5.5815 mineral acres to the City; 1.8605 mineral acres to the Leonard heirs in the amount of$26,047.00 total $19,535.25 to the City; $6,511.75 to the Leonard heirs for a two year primary term and suspension of the bidding requirement. DISCUSSION: The City began receiving requests to lease the minerals under Mary and Marvin Leonard Park in 2011, however, the deed contained reversionary terms and conditions that required a negotiated resolution with the Leonard heirs. In 2014, the City again received a request to lease the minerals under the park and reinitiated negotiations with the agent for the Leonard heirs. The heirs agreed to release the deed's reversionary terms and conditions by Correction Deed and as consideration will retain a 25 percent non-executive mineral interest. The execution of the Correction Deed then allowed the City to enter into a mineral lease with Chesapeake Exploration, LLC . The location of the park is in the center of a unit already being drilled by Chesapeake and one well has been drilled. Additional wells are scheduled to be drilled in June 2014. Therefore timing was of the essence to enter into a lease Agreement after the Correction Deed was executed and a public hearing in compliance with Chapter 26 of the Texas Parks and Wildlife Code was conducted. Furthermore, this action requires the suspension of the bidding requirement by City Council which by ratification of the lease will be granted. The Public Hearing to comply with Chapter 26 of the Texas Parks and Wildlife Code for the purpose of subsurface drilling and extraction of natural gas from an offsite location was held on May 6, 2014 (M&C L-15680) and the Correction Deed has been executed by the Leonard heirs. Staff executed a lease for Mary and Marvin Leonard Park with a $3,500.00 per acre bonus which was above the current market. Chesapeake Exploration, LLC, agreed to all terms of the City standard lease, including a two year primary term and 25 percent royalty. Total bonus for the City's 5.5815 net mineral acres is $19,535.25. This Mayor and Council Communication will ratify the execution of the Correction Deed, approve the lease Agreement and provide for the suspension of the bidding requirement. The Financial Management Policy Statements (M&C G-18067 approved December 3, 2013) direct 100 percent of the bonus to the Parks and Community Services Capital Improvements Fund for http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19723&councildate=5/13/2014 05/22/2014 M&C Review Page 2 of 2 capital improvements at Mary and Marvin Leonard Park. This park has not received funds from any state or federal granting authority, however, as part of the negotiations for release of the reverter conditions, the City has agreed to suspend the Financial Management Policy Statements for non- restricted parks and all future royalties and other revenues associated with this park, will be allocated 50 percent to the Park Gas Lease Project Fund and 50 percent to the Park System Endowment Gas Lease Fund. The property is located in COUNCIL DISTRICT 3, Mapsco 74B and 74. 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 under this Agreement. TO Fund/Account/Centers FROM Fund/Account/Centers C282 446100 801929968800 $19,535.25 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Randle Harwood (6101) Additional Information Contact: Jean Petr (8367) ATTACHMENTS Mary Marvin Leonard Park.gdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=19723&councildate=5/13/2014 05/22/2014 • • JL a _ a �•e,. '+e + r A • pis �. r � _- - _ _ •�'� i �� e fie— { • r. k ��`"� F,43 It A Pkl Ok it AL IL +. i n F _ ,�R i• T n I,d 30 �T.7=10 ilo fft 9'- 0 240480 960 A � I ``�� r' ��• +� �` 1�- _fix x Ifli�Nl . t � �" x{2070