HomeMy WebLinkAboutContract 33206 CITY SECRETARY
CONTRACT NO. .
MEMORANDUM OF OIL AND GAS LEASE
THE STATE OF TEXAS §
COUNTY OF TARRANT §
Notice is hereby given that on the 28th day of September,2005 an Oil and Gas Lease was
made and entered into by and between City of Fort Worth, whose mailing address is 1000
Throckmorton Street, Fort Worth, TX 76102, as "Lessor", and Dale Resources, L.L.C., whose
address is 2100 Ross Avenue,Suite 1870,LB-9,Dallas,TX 75201,as"Lessee",in consideration of a
cash bonus in hand paid,of the royalties herein provided,and of the agreements of Lessee hereinafter
contained, hereby grants, leases, and lets exclusively unto Lessee for the sole purpose of
investigating, exploring, drilling, operating, and producing oil and/or gas from the land leased
hereunder,together with any liquid or gaseous substances produced in association with oil and gas,
the following described land situated in the City of Fort Worth, Texas described in Exhibit"A"
attached hereto(the"leased premises").
All mineral substances and mineral rights other than oil and gas (and all other liquid or
gaseous minerals produced in association with oil or gas) are expressly reserved to Lessor and
excepted from said Lease. These reserved mineral rights include,but are not limited to,the rights to
lignite,coal and sulfur not produced as a component of oil and gas.
For the purpose of determining the amount of any bonus or other payment hereunder,said
leased premises shall be deemed to contain 0.98 acres,whether actually containing more or less.
Subject to the other provisions contained in said Lease,this Lease shall be for a term of two
(2) years from the 281h day of September, 2005 (hereinafter called"primary term") and so long
thereafter as oil,gas or other minerals granted herein are produced from the leased premises or lands
pooled therewith,in paying quantities,or drilling operations are in progress thereon as hereinafter
provided,and the royalties are paid as provided herein.
This Memorandum is executed for the purpose of filing this instrument of record in the
official Records of Tarrant County,Texas,to give notice to all third parties dealing with Lessor or
Lessee or with the lands above described of the existence of the Oil and Gas Lease. The Oil and Gas
Lease and this Memorandum shall be binding upon Lessor and Lessee and their respective heirs,
successors and assigns.
IN WITNESS WHEREOF,this instrument is executed on the date first written.
LESSOR:
City of Fort W06
By:
Title:Assistant City Manager
ATTEST:
City Secretary
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cc>ntna Authorization >�v��a.0
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Date L,XI
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APPROVED AS TO FORM AND LEGALITY:
Assistant City A orney
Date:
ESSE
ALE SOURCES,L.L.C.
B : V") n�
wrence B.Dale
r ident
STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned authority, on this day personally appeared
Assistant City Manager of the City of Fort Worth,known to me to be the
person whose name is subscribed to the foregoing Memorandum of Oil,Gas and Mineral Lease,and
stated he executed the same for the purposes and considerations therein expressed,under his own
free will and accord,in the capacity therein stated.
GIVEN MY HAND AND SEAL OF OFFICE this 7 day of 2005.
ESHETTIE LANE otary Public,State of Texas
MY COMMISSION EXPIRES
July 26,21507
STATE OF TEXAS §
COUNTY OF Z141-� §
BEFORE ME,the undersigned authority,on this day personally appeared Lawrence B.Dale,
President of DALE RESOURCES,L.L.C.,known to me to be the person whose name is subscribed
to the foregoing Memorandum of Oil,Gas and Mineral Lease,and stated he executed the same for
the purposes and considerations therein expressed, under his own free will and accord, in the
capacity therein stated. `
GIVEN MY HAND AND SEAL OF OFFICE this�Vay oG2� / 20*
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ANN FN BERG
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n. Maim r o'1e.3s
My Comn&,,w,i,wv.s 0213-09
Notary Public,State of Texas /
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Exhibit"A"
Being a part of a tract of land out of the J.A.Hust Survey,Abstract No.702,Tarrant County,
Texas and a part of a tract conveyed to A.N.Jefferies by deed recorded in Volume 3274,Page
425 of the Deed Records of Tarrant County,Texas and being more particularly described as
follows:
Beginning at that point of intersection of the center-line of County Road No.3035(Randol Mill-
Hurst Precinct Line Road)with an existing twenty-five foot sanitary sewer easement as described
in that certain instrument recorded in Volume 3776,page 67 of the Deed Records of Tarrant
County,Texas,and said point also being South 0 degrees,34 minutes West,525.0 feet from the
northwest corner of said Jefferies tract;
Thence proceed North 00 degrees,34 minutes East along the centerline of said County Road No.
3035 ,for a distance of one hundred one and ninety-seven hundredths(101.97)feet to a point;
Thence South 48 degrees,54 minutes East for a distance of three hundred eighty and seventy four
hundredths(380.74)feet to a point;
Thence South 41 degrees,06 minutes West for a distance of one hundred fifty five(155.0)feet to
a point;
Thence North 48 degrees,54 minutes West for a distance of two hundred forty eight and two
tenths(248.2)feet to a point in the center of County Road No.3035;
Thence proceed North 00 degrees,34 minutes East along the centerline of said County Road No.
3035 to the point of beginning;
This tract of land contains 0.98 acres of area excluding that area within the county roadway.
IP71gL 3 o'F3 �
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Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/27/2005
DATE: Tuesday, September 27, 2005
LOG NAME: 30HUST 4B AWARD REFERENCE NO.: **C-21021
SUBJECT:
Approve the Acceptance of a Lease Agreement with Dale Resources, L.L.C., for Natural Gas Drilling
under 0.98 Acres, More or Less, of City-Owned Properties Located in Tarrant County, Texas,
Known as the Hust Survey, Tract 4B
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 0.98 acres, more or less, of City-owned properties located in Tarrant County, Texas, known as
the Hust Survey, Tract 413, to Dale Resources, L.L.C., for a two-year term.
DISCUSSION:
On May 17, 2005, (M&C G-14798) Fort Worth City Council authorized City staff to advertise a request for
proposals from private companies to drill for natural gas under 3,651 estimated mineral acres of City-
owned properties, including 500 acres of miscellaneous parcels and right-of-way. The Hust Survey, Tract
4B property, is located between Randol Mill Road and Trammel Davis Road just north of the West Fork of
the Trinity River and further described in Exhibit "A". Acceptance of this lease agreement will reduce the
approved 500 miscellaneous mineral acres of City-owned parcels by 0.98 mineral acres, more or less.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial
Recorder, July 28, August 4 and August 11 of 2005.
The following sealed bid for the gas lease was received and opened on August 18, 2005.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Dale Resources, L.L.C. $1,510.00 $1,479.80 25
The bid received was evaluated by staff and the City's mineral asset management consultant, JPMorgan
Chase. 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.
In accordance with the Alternative Assets Agency Account Agreement between JPMorgan Chase and the
City, City Secretary Contract No. 29698, JPMorgan Chase will serve as the depository of the lease bonus
revenue until the City requests wire transfer of the funds. The net transfer to the City, less administrative
and legal fees, is estimated to be $1,405.81, more or less.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the Water and Sewer Fund
and designated for wastewater system operations.
The Property is located in COUNCIL DISTRICT 5, Mapsco 67 J.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/13/2006
Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection and deposit
of funds due the City under this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE45 446100 0701000 $1,405.81
Submitted for City Manager's Office by: Marc Ott (6122)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: A. Douglas Rademaker (6157)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/13/2006