HomeMy WebLinkAboutResolution 3398-08-2006A RESOLUTION
NO. 3398-08-2006
APPROVING DALLAS/FORT WORTH INTERNATIONAL AIRPORT BOARD
RESOLUTION N0.2006-08-277
ACCEPTING THE HIGHEST AND BEST BID AND AUTHORIZING THE EXECUTION OF
AN OIL AND GAS LEASE FOR THE PRODUCTION OF NATURAL GAS ON THE
DALLAS/FORT WORTH INTERNATIONAL AIRPORT PROPERTY
WHEREAS, the Cities of Dallas and Fort Worth jointly own approximately 18,000 acres of
property known as the Dallas/Fort Worth International Airport (the Airport"), which includes the
underlying mineral estate, and
WHEREAS, the cities of Dallas and Fort Worth have created a ~omt board" pursuant to Section
22.074 of the Texas Transportation Code, as amended, known as the Dallas/Fort Worth International
Airport Board to operate and to set and establish policies for the Airport; and
WHEREAS, the cities of Dallas and Fort Worth desire to enter into a lease for the purpose of
the dulling and extraction of natural gas, oil, and other liquid and gaseous hydrocarbons on the Airport
property and
WHEREAS solicitation of bids was authorized under Airport Board Resolution No. 2006-OS-
172 dated May 4 2006 and
WHEREAS, the request for bids for oil and gas lease was advertised on three consecutive
weekends of May 6 & 7 2006 May 13 & 14 2006 and May 20 & 21 2006 in the Dallas Morning News
and the Fort Worth Star Telegram, and
WHEREAS, three (3) alternative bids were received from one (1) bidder in response to the
request for bids and advertisements, and
WHEREAS, the terms proposed under Bid Number 1 of Chesapeake Exploration Limited
Partnership has been evaluated to be the highest and best bid, paying the Airport a bonus payment of
$10,055.56 per acre for a total of $181 irullion dollars in bonus revenue and a royalty payments of
twenty five (25%) on all oil and gas and other hydrocarbons produced on the property and
Resolution No. 3398-08-2006
WHEREAS the Dallas/Fort Worth International Airport Board determined that Bid Number 1
as submitted by Chesapeake Exploration Limited Partnership was the highest and best bid according to
the terms submitted m the Request for Bids for Oil and Gas Lease through approval of Resolution No
2006-08-277 dated August 3 2006
WHEREAS, on August 3 2006 at their regular meeting, the Dallas/Fort Worth International
Airport Board voted to recommend to the City Councils of the Cities of Dallas and Fort Worth
acceptance of the bid and the execution of an Oil and Gas Lease with Chesapeake Exploration Limited
Partnership
NOW, THEREFORE, BE IT RESOLVED BY THE FORT WORTH CITY COUNCIL
1 That the City of Fort Worth finds that the untapped mineral realty located on the
approximately 18 000 acres of Airport property consisting of gas, oil, and other liquid and gaseous
hydrocarbon is no longer necessary appropriate or required for the use of, profitable to or for the best
interests of the Board m the operation of the Airport and maybe sold, leased or otherwise disposed of m
accordance with Section 9 6.A(2) of the 1968 Regional Airport Concurrent Bond Ordinance, as
amended.
2 That the Fort Worth Crty Council approves the recommendation of the Dallas/Fort Worth
International Airport Board accepting Bid Number 1 submitted by Chesapeake Exploration Limited
Partnership Airport proposing a bonus payment of $10 055 56 per acre for a total of $181 million dollars
in bonus revenue and a royalty payments of twenty five (25%) on all oil and gas and other hydrocarbons
produced on the property as the highest and best bid.
3 That the Fort Worth Crty Council authorizes the execution of an oil and gas lease with
Chesapeake Exploration Limited Partnership m compliance with the Request for Bid and the successful
bid proposal for the purpose of exploring, drilling, and producing natural gas, oil, and other liquid and
gaseous hydrocarbons at the Dallas Fort Worth International Airport upon approval as to form by the
City's attorney
Resolution ,No. 3398-08-2006
4 ~, That upon receipt by the :Dallas Fort Worth international Airport Board, a total of :$5,0
million of;,the proposed bonus payment of $10 O55 56 per .acre for a,_total of $181 million dollars m
bonus .revenue, shall be placed m escrow for thirty (30) days m order. xo determine the .amount .of the
capital contribution, tf any to the extent not m violation of law to be paid to the owner cities as
permitted under 'Section 9 6.A.(2) of the 1968 Regional Airport Concurrent Bond Ordinance, as ~.
amended. At`°;tle end of thirty (30) days, the determined amount, if any and to the extent not in
!r;
vtblatton o'fLL~Tawshall be paid to the owner cities of Dallas and Fort Worth, wtth the remainder amount'.„
held in escrow paid to the Dallas/Fort Worth Tnternattonal Airport Board.
No 2006-08-227 is effective upon the adoption of a similar resolution of approval by the Crty of Dallas
City Council and `to -tfie extent rtot m violation of law condi't'ioned upon remburserrient`~to~~the owner
eties`of Da1lasLaiid~Fo`r't V~or`th~of any capital; contribution as~~pert'ritted`under S'ectrori}9 `6~.A.(2)-`of~tlie
x'968 'Regt'onai~~Aiiport Concur'r'ent Bond' Ordinance; as amended.
st, 2006 - "~~ ~ ! e;-, ,. ~, ~, ~ ~.,. r s
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Marty`Hendrtx
Crty~Secretary .
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AP.PROY~'D
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