HomeMy WebLinkAboutContract 33434 CITY C No,Y�
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CONTRACT NO
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL
PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING
INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN
THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR
DRIVER'S LICENSE NUMBER.
UNIT DESIGNATION AND AGREEMENT
DALE OPERATING COMPANY BRENTWOOD"B"GAS UNIT
STATE OF TEXAS §
COUNTY OF TARRANT §
WHEREAS, Dale Resources, L.L.C., (hereinafter called "Lease Owner") is the present
owner and holder of the oil, gas and mineral leases, together with any and all corrections and
amendments thereto, identified and described on Exhibit "A" attached hereto and made a part
hereof(as so corrected and amended, collectively "Said Leases"or individually "Said Lease"),
insofar as Said Leases cover the lands and depths included within the hereinafter described unit;
and
WHEREAS,each of Said Leases provide that the Lease Owner shall have the right and
power to designate, pool or combine, as to the gas and condensate therein and thereunder, the
lands covered thereby,or portions thereof,with other land, lease or leases in the vicinity thereof,
in order to form a gas unit or units,provided that the Lease Owner shall execute an instrument in
writing identifying and describing such lands;and
WHEREAS, a certain Said Lease provides that the formation of such unit or units is
subject to the prior written consent of Lessor of Said Lease;
WHEREAS, in the judgment of Lease Owner, it is necessary and advisable to designate
Said Leases and to pool and combine Said Leases as to said lands and depths in order to properly
develop and operate the premises for the production of gas, and in order to promote the
conservation of gas in,under and that may be produced therefrom;and
WHEREAS, the undersigned Lessor of Said Lease desires to execute this Unit
Designation and Agreement("this Agreement")consenting to the formation of such unit and the
pooling and combination of said lands and depths and agreeing to the terms and provisions set
forth herein;
NOW,THEREFORE,the Lease Owner and the Lessor does hereby designate,pool and
combine Said Leases into a unit designated as the Brentwood`B" Gas Unit,containing 449.568
acres, more or less, ("this Unit") being the lands described in Exhibit `B" attached hereto and
made a part hereof, insofar and only insofar as said lands cover those depths from the surface of
the earth down to and including the base of the Barnett Shale formation which occurs at the
stratigraphic equivalent of a log depth of 7374 feet as shown on that certain Array Induction SP
Log dated March 21, 2005 from the Dale Operating Company, Brentwood Well #1 located 195
FNL and 404 FWL of the J. Blackwell Survey A-148 (API NO. 42-439-30916),Tarrant County,
Texas, a portion of which log is reproduced in Exhibit "C" attached hereto and made a part
hereof,for the purpose of developing and operating said lands and depths and said leases for the
production, storage, processing, and marketing of gas and condensate and gas and condensate
rights. It is the intent to designate and pool all leases and lands owned by Lease Owner, insofar
as the same cover said lands and depths, regardless of whether said leases are listed on Exhibit
"A," and said leases and any corrections thereof or amendments thereto, and the term "Said
Leases,"as used herein,shall be deemed to include said leases.
This Agreement shall not exhaust the rights of Lease Owner, its successors and assigns,
to form any other unit(s)covering Said Leases,or any portions thereof,or covering any depths or
production formations not affected herein and which may underlie the unit.
ti vri.�:D
For the purpose of calculating gas royalty payable under Said Leases, there shall be
allocated to each tract committed to and covered by this Unit as to said depths that prorata
portion of the gas and condensate so produced from this Unit which the number of surface acres
covered by the tract bears to the total number of surface acres included in this Unit.
Notwithstanding anything to the contrary contained herein or in Said Leases, if, at any
time or from time to time, any of Said Leases terminate,either in its entirety or in part as to any
lands or depths, or the Lease Owner is required by the terms of Said Lease to release all or a
portion of the lands or depths covered thereby,then the lands or depths as to which Said Lease so
terminated or which were so released shall be automatically released from,and shall no longer be
included in or covered by, this Unit. In such event, gas and condensate shall thereafter be
allocated hereunder only to those lands and depths which remain in this Unit after giving effect
to the preceding sentence (the "Remaining Premises"). The Lease Owner is hereby given the
power and authority to file in the Real Property Records of the county in which such lands are
located a recordable instrument amending this Unit to designate and describe the Remaining
Premises and/or the lands or depths so released from this Unit.
This Unit may be dissolved by the Lease Owner, its successors or assigns, by instrument
filed for record in the appropriate records of Tarrant County, Texas, at any time after the
cessation of production on this Unit.
Lessor does hereby consent, ratify and adopt this Unit and the terms of this Agreement
and hereby agree that this Unit is validly formed and designated and shall be treated as a pooled
unit for the purposes of Said Lease, notwithstanding anything contained in Said Lease to the
contrary. To the extent that the size, configuration or composition of this Unit, or any of the
terms of this Agreement, conflicts or is inconsistent with any of the terms of Said Lease, this
Agreement and the size, configuration and composition of this Unit and the terms of this
Agreement shall prevail and control,and Said Lease shall deemed to be amended hereby.
This Agreement may be executed in multiple counterparts, each of which when so
executed shall be deemed an original and all of which shall constitute one and the same Agreement.
Each of the undersigned agree that for recording purposes, their respective signature pages and
acknowledgments may be removed from their respective counterpart and attached to a single
counterpart of this Agreement.
IN WITNESS WHEREOF, this Agreement has been executed and made effective as of
the I"day of April,2006.
LEASE OWNER:
DALE RESOURCES,L.L.C.
i
B
Ann F.Vandenberg,Vice President
STATE OF TEXAS '
COUNTY OF-Date-,Ls, '
This instrument was acknowledged before me on Al[ 3
2006 by Ann F. Vandenberg, Vice-President of Dale Resources, L.L.C.,a Texas limited liability
company,on behalf of said company.
[SEAL]
ry Public,State of Texas
JOHN NEWMAN
Notary Public,State of Texas
±. My Commission Expires
September 10,200E
LESSOR:
CITY OF FORT WORTH
By:I)Q
Marc A.Ott
Its: Assistant qty Manager
A"A- _ L Ll O
AAT1 ��42�TTEST: Ccntract authorization
II \, _ `I
�.� Da�P
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:<_1'-- )�"2� �'(
Assistant City ttorney
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on CTS '
2006 by_ ' � A, GLa� ���� .�J�for the City of Fort
Worth,Texas.
[SEAL]
Notary Public,State of Texas
' HETFIE LANE
MY COMMISSION EXPIRES
' July 26,2007
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EXHIBIT B-1
Brentwood B Gas Unit-449.568-Acre Unit
Being 454.373 acres of land located in the J. Brockman Survey,Abstract No. 102,the Sanders
Elliott Survey, Abstract No. 476, the J. Haynes Survey, Abstract No. 764, the Wm. Reeder
Survey, Abstract No. 1303, the A.C. Warren Survey, Abstract No. 1686, and the W. F. White
Survey, Abstract No. 2020, Tarrant County, Texas, being a portion of the tracts of land
described in the Oil and Gas Leases to Dale Resources, L.L.C., recorded in CC#D205068294
(Quanah Parker lease), Volume 17369, Page 176 (Spence lease), Volume 17369, Page 185
(Faso lease), Volume 16858, Page 97 (TRBtTiggator-Tiggator lease), Volume 16858, Pg. 97
(TRB/Tiggator-Brentwood West Fork lease), CC#D205294605(Jarvis lease), CC#D204169237
(Garrison lease), CC#D205355140 (TXI lease), Volume 17190, Pg. 153 (Sturgeon lease),
CC#D205117251 (Fentress lease)and CC#D206039710(Frank's Dismantlers), Deed Records,
Tarrant County, Texas. Said 454.373 acres of land being more particularly described as
follows:
BEGINNING at a 518"iron rod found as the southeast corner of said Quanah Parker lease;
THENCE along the south lines of said Quanah Parker lease as follows:
1)N83°57'24"W,a distance of 559.07 feet to a point;
2)S06°02'36"W,a distance of 120.00 feet to a point;
3)N83°57'24"W,a distance of 2,241.64 feet to a point;
4)S81°52'34"W,a distance of 2.02 feet to a point;
5)S00°14'34"W,a distance of 118.37 feet to a TESCO right-of-way monument found;
6)S01°54'24"E,a distance of 53.37 feet to a 718"bolt found;
7)S88°39'05"W,a distance of 49.63 feet to a point;
8)S87°17'49"W,a distance of 50.00 feet to a point;
9)S83°46'16"W,a distance of 49.97 feet to a point;
10)S82°44'55"W,a distance of 49.98 feet to a point;
11)S81°34'23"W,a distance of 50.00 feet to a point;
12)S78°52'14"W,a distance of 49.98 feet to a point;
13)S77°54'10"W,a distance of 50.01 feet to a point;
14)S77°52'57"W,a distance of 50.00 feet to a 5/8"iron rod found;
15)S76°50'1 T`W,a distance of 199.94 feet to a point;
16)S73°54'04"W,a distance of 49.97 feet to a point;
17)S72°02'28"W,a distance of 49.98 feet to a point;
18)S67°55'04"W,a distance of 50.00 feet to a point;
19)S57°26'38"W,a distance of 50.01 feet to a point;
20)S52°09'13"W,a distance of 49.96 feet to a point;
21)S44°47'13"W,a distance of 50.05 feet to a point;
22)S40°42'19"W,a distance of 49.90 feet to a point;
23)S39°50'17"W,a distance of 49.93 feet to a point;
24)S39°16'39"W,a distance of 49.98 feet to a point;
25)S39°49'38"W,a distance of 429.95 feet to a point;
26)S39°15'54"W,a distance of 460.66 feet to a point;
27)S38°40'57"W,a distance of 504.08 feet to a point;
1
28)S89°12'52"W,a distance of 203.82 feet to a point;
29)N00°44'06"W, a distance of 1,277.31 feet to a point lying in the most northerly south line
of said Tiggator lease;
THENCE S89°01'23"W, along the north line of said Tiggator lease, a distance of 1,192.74 feet
to a point;
THENCE S89°01'58"W,continuing along said north line,a distance of 313.01 feet to a point;
THENCE S01°08'56"E, along the east line of said Tiggator lease, a distance of 18.39 feet to a
point;
THENCE N47°10'37"W, at 98.68 feet passing the south line of said Brentwood-West Fork
lease, at 243.09 feet passing the south line of said Tiggator lease, at 816.46 feet passing the
east corner of Dale Operating Company, Brentwood A Gas Unit, at 1,276.89 feet passing the
north line of said Tiggator lease, at 3,030.07 feet passing the south line of said Faso-Spence
lease, in all a distance of 4,051.71 feet to a point lying in the west line of said Faso-Spence
lease;
THENCE N00°34'46"W, along said west line, a distance of 146.52 feet to a paint at the
northwest corner of said Faso-Spence lease;
THENCE N62°12'48"E, along the northwest line of said Faso-Spence lease, a distance of
1,833.16 feet to a PK nail found at the north corner of said Faso-Spence lease, said PK nail
found being the west corner of said Jarvis lease;
THENCE N62°45'57"E, along the northwest line of said Jarvis lease, at 1,156.50 feet passing
the common corner of said Jarvis and Garrison lease, in all a distance of 1,626.80 feet to a
point at the north corner of said Garrison lease;
THENCE S01°09'24"E, along the east line of said Garrison Lease, at 710.60 feet passing an
1t2" iron rod found, in all a distance of 730.73 feet to a PK nail found lying in the north line of
said Frank's Dismantlers lease;
THENCE N89°23'10"E, at 218.93 feet passing the northwest corner of said TXI lease, in all a
distance of 854.84 feet to a point at the northeast comer of said TXI lease;
THENCE S00°11'26"W, along the east line of said TXI lease, a distance of 1,024.92 feet to a
point at the most northerly southwest corner of said Sturgeon Lease;
THENCE along the west,north and east lines of said Sturgeon lease as follows:
1)S89°48'03"E,a distance of 50.00 feet to a point;
2)N00°11'57"E, a distance of 1,025.00 feet to an 112"iron rod found at the northwest corner
of said Sturgeon lease;
3)N89°28'33"E,a distance of 684.57 feet to an 112"iron rod found;
4)S89°48'04"E,a distance of 53.70 feet to a point;
5)S00°11'56"W,a distance of 5.00 feet to a point;
6)S89°48'04"E,a distance of 78.60 feet to a point;
7)S00'1 1'57"W,a distance of 300.00 feet to a point;
8)S89°48'03"E,a distance of 174.40 feet to a point;
9)S00'11'S7"W,a distance of 165.00 feet to a point;
10)S89°48'03"E,a distance of 150.00 feet to a point;
11)N00°11'57"E,a distance of 165.00 feet to a point;
12)N89°48'03"W,a distance of 100.00 feet to a point;
13)N00°11'57"E,a distance of 165.00 feet to a point;
14)S89°48'03"E,a distance of 50.00 feet to a point;
15)N00°11'57"E,a distance of 140.00 feet to a point;
16)S89°48'03"E,a distance of 50.00 feet to a point;
17)S00°11'57"W,a distance of 140.00 feet to a point;
18)S89°48'03"E,a distance of 100.00 feet to a point;
19)N00°11'57"E,a distance of 140.00 feet to a point;
20)S89°48'03"E,a distance of 110.00 feet to a point;
21)S00°38'12"W,a distance of 595.02 feet to a point;
22)N89°48'03"W,a distance of 80.45 feet to a point;
23)N00°11'57"E,a distance of 125.00 feet to a point;
24)N89°48'03"W,a distance of 75.00 feet to a point;
25)S00°11'57"W,a distance of 125.00 feet to a point;
26)N89°48'03"W,a distance of 506.70 feet to a point;
27) S00°11'57"W, a distance of 145.00 feet to a point at the northwest corner of said
Fentress lease;
THENCE along the north and east lines of said Fentress lease as follows:
1)S89°48'03"E,a distance of 663.22 feet to a point;
2) S00°48'37"W, a distance of 1,162.27 feet to a point lying in the north line of said
Brentwood-West Fork lease;
THENCE S68°50'09"E,along said north line,a distance of 34.19 feet to a point lying in the west
line of said Quanah Parker Park lease;
THENCE along the west, north and east lines of said Quanah Parker Park lease as follows:
1)N00°03'34"W,a distance of 32.14 feet to a point;
2)S79°27'28"E,a distance of 164.74 feet to a point;
3)N89°21'32"E,a distance of 265.00 feet to a point;
4)S50°42'28"E,a distance of 130.00 feet to a point;
5)S36°57'34"E,a distance of 426.58 feet to a point;
6)S36°57'34"E,a distance of 298.92 feet to a point;
7)S37°15'28"E,a distance of 162.00 feet to a point;
8)S69°16'34"E,a distance of 104.17 feet to a point;
9)S67°57'28"E,a distance of 633.95 feet to a point;
10)S44°28'28"E,a distance of 284.20 feet to a point;
11)S85°33'28"E,a distance of 179.50 feet to a point;
12)N41°40'32"E,a distance of 797.50 feet to a point;
13)N76°12'32"E,a distance of 262.20 feet to a point;
14)S58°01'28"E,a distance of 166.50 feet to a point;
15)S06°31'28"E,a distance of 333.00 feet to a point;
16)S34°32'28"E,a distance of 245.00 feet to a point;
17)S89°12'28"E,a distance of 744.28 feet to a point;
18) S00°26'28"E, a distance of 416.03 feet to the point of beginning, containing 454.373
acres of land.
The bearings recited hereon are oriented to NAD83 Texas North Central Zone.
, kSID
.....
SAVE&EXCEPT
Being 4.805 acres of land located in the Sanders Elliott Survey,Abstract No.476,Tarrant
County,Texas, being the tract of land described in the deed to Don Kates,recorded in Volume
2823,Page 901, Deed Records,Tarrant County,Texas.Said 4.805 acres of land being more
particularly described as follows:
BEGINNING at point lying in the approximate centerline of Elliott Reeder road,from which a PK
nail found bears S88°37'28"W 50.60 feet;
THENCE N89'35'1 7"E,along said centerline,a distance of 421.35 feet to a point;
THENCE S01°26'57"W,at 22.15 feet passing an 112"iron rod found, in all a distance of 592.28
feet to a point lying in the centerline of the Trinity River;
THENCE N85°12'58"W,along said Trinity River centerline,a distance of 305.94 feet to a point;
THENCE N1 0'12'32"W,a distance of 572.61 feet to the point of beginning,containing 4.805
acres of land.
The bearings recited hereon are oriented to NAD83 Texas North Central Zone.
4
Schlumberger
Company: Dale Operating Company,Inc.
Wev: Brentwood#1
Fie c: Newark.East(Barnett Shale
C Tarrant IS!DE Texas
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/4/2005
DATE: Tuesday, January 04, 2005
LOG NAME: 30EASTSIDEGAS REFERENCE NO.: L-14010
SUBJECT:
Approval of Lease Agreement for Natural Gas Drilling under Eastside Parks (Gateway, Quanah
Parker, and Tandy Hills) with Dale Resources, LLC
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under the Eastside Parks (Gateway, Quanah Parker, and Tandy Hills) with Dale Resources, LLC for
one two-year term.
DISCUSSION:
On August 24, 2004 (M&C C-20233), Fort Worth City Council authorized staff to advertise a request for
proposals from private companies to drill for natural gas under Eastside parkland, which is comprised of
the Gateway, Quanah Parker, and Tandy Hills City parks. The total available acreage is 702.65 acres.
A request for bid proposals (RFP) was advertised for three consecutive weeks in two daily publications: the
Commercial Recorder, published on October 28, November 3, and November 11; and the Fort Worth Star
Telegram, published on October 28, November 5, and November 11. The RFP was also advertised twice
in the Fort Worth Business Press in the November 7-13 and November 21-27 issues.
The following sealed bids were received and opened on December 2, 2004:
Bidder Lease Bonus/Acre Total Lease Bonus % Ro ay Itv
Dale Resources LLC $2,031.00 $1,427,082.00 25
Four Sevens Oil Company $1,151.00 $ 808,750.00 25
Frost Brothers Resources, LLLP $1,000.00 $ 702,650.00 25
The bids received were evaluated by staff and the City's mineral asset management consultant, JPMorgan
Chase to determine the best overall bidder. 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. On December 14, City staff and representatives from JPMorgan Chase met with
representatives of each bidder to obtain additional information and clarification of each proposal.
City staff and JPMorgan Chase determined, based upon the proposal content and follow-up interview, that
the Dale Resources LLC bid is the overall best bid.
In accordance with the Alternative Assets Agency Account Agreement between JPMorgan Chase and the
City (City Secretary Contract 29698), JPMorgan Chase will serve as the depository of the lease bonus
revenue until the City adopts a Gas Lease Revenue Policy. The recommendation to adopt this policy is
scheduled to be brought before Council on January 11, 2004.
The properties in the lease agreement are located in COUNCIL DISTRICTS 4 and 8, Mapsco 64T, U, V, X,
Y, and Z; 65N, P, S, and T; and 78A, B, and C.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 4/20/2006
I arp L Vl L
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds due
to the City under this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office b Marc Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: A. Douglas Rademaker (6157)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 4/20/2006