HomeMy WebLinkAboutContract 36294 CITY SECRETARY
NO. 4
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MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS }
} KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF TARRANT }
WHEREAS, City of Fort Worth, a home rule municipal corporation of the
State of Texas located within Tarrant,Denton and Wise Counties,Texas("Lessors"),
has granted,executed and delivered an Oil and Gas Lease to Grande Energy Company
("Lessee"), by written instrument dated the 23`d day of October, 2007, by which said
Lessors have GRANTED, LEASED and LET unto said Lessee, for a valuable
consideration(s) and subject to the terms, conditions and provisions of said Lease, that
certain land in Tarrant County,Texas,being more particularly described in the attached
Exhibit "A", which is incorporated herein as if set forth verbatim. The Lease is for a
primary term of two(-2_)years from the date of said lease,and so long thereafter as oil,
gas or some other hydrocarbon substance is being produced or operations are being
conducted on the hereinabove described land(or land pooled therewith),according to the
terms and provisions of that certain Lease between Lessors and Lessee. Said Lease with
all of its terms, covenants and other provisions is hereby referenced or referred to and
incorporated into this memorandum for all purposes. The Lease gives the Lessee the
right to explore and produce oil, gas and other hydrocarbons, subject to the royalty
payments provided for therein and the performance by Lessee of the other obligations
thereon undertaken. This instrument is to be placed of record to serve as notice of
execution and the existence of the Lease and in no way intended to supersede the Lease
or abrogate, change, alter or modify any of the terms and conditions or any rights or
obligations of any of the parties thereto,all of which is set forth in detail in the Lease.
EXECUTED this Lam'day of�;2007.
LESSOR:
City of Fort Worth
BY
Assistant ity anager A.Ott
AsSiStant City Manager
Y
ATTEST: _
Contr�ct Ruthorizatio l
City Secretary 0Date
APPROVED AS TO FORM AND LEGALITY:
B'IC 11�*�t
Assistant Ci Attorney
Date:
CITY 6E---;1 HRF
R. u,yu.
1 �
LESSEE:Grande Energy Company
BY:
Date:
STATE OF TEXAS }
} ACKNOWLEDGMENT
COUNTY OF TARRANT }
BE ORE ME,the undersigned,a Notary Public,on this day personally appeared
K 44 2, 6 CIu Gain ,known to me to be the person whose
name is subscribed to the foregoing instrument and,that(s)he has executed the same for
the purpose and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 9 j day of
November,2007.
+k'{ RACHEL LEE RAY
Notary Public,State of Texas
My Commission Expires
':,,;; �;,• October 23,2011 Notary Public,State of Tex
My Commission Expires: ll I
STATE OF TEXAS }
} ACKNOWLEDGMENT
COUNTY OF TARRANT )
BEFORE ME,the undersigned,a Notary Public,on this day personally appeared
MarcA.Ott ,known to me to be the person whose
Awlstant RaR%scribed to the foregoing instrument and,that(s)he has executed the same for
the purpose and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this /D ,day of J-aol�
-Narmn4�",2007.
*iA•' HETTiE LANE
MY COMMISS!ON EXPIRES
'•I+'•...!V1, July 28,2011 Notary Public,State oLf Texas
My Commission Expires: V -7
EXHIBIT"A"
• BEING Lot 1,Block 43,Ridglea Addition,a portion of the J.T.Turner,S.H.
McIntyre and Hays Covington Surveys,and further referenced by Deed of Record in
Volume 929,Page 508,Tarrant County,Texas.
END OF EXHIBIT
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Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/18/2007
DATE: Thursday, January 18, 2007
LOG NAME: 30CITY LEASES REFERENCE NO.: G-15588
SUBJECT:
Authorize the Provision for Administrative Approval of Leases for Natural Gas Drilling under City-
Owned Properties of Two Acres or Less in Size
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to approve and execute leases for
natural gas drilling under City-owned properties that are two acres or less in size.
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. Most of these properties range from 3 to 800 acres or more in size.
From time to time, the City is asked to lease isolated City-owned properties in various locations that are two
acres or less. City staff is recommending that gas leases for these properties be administratively approved
for natural gas drilling leases after evaluation of the gas company's drilling plan, reputation, financial status,
project team, and compliance history by engineering staff and the City's mineral asset management
consultant, JPMorgan Chase. Staff will report the negotiated lease bonuses and royalty to the City Council
through the regular monthly gas lease report. The leases would be executed through an internal
administrative process involving the Engineering Department, the City Attorney's Office and the City
Manager's Office.
Requirements and guidelines to be followed in determining eligibility for inclusion in the Adminstrative Gas
Lease Process are as follows:
City-owned property two acres or less that is not a City park
No surface use of any kind
No identified adverse impact to the surrounding neighborhood
Compliance with the City's gas drilling ordinance
Minimum bonus to be determined by current market rate
Minimum royalty of 25 percent
The distrubution of lease bonus and royalties will be in accordance with the revenue
distribution policy approved by the City Council
No MWBE goal will be required due to the size of the parcels
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 and
royalty revenue until the City requests wire transfer of the funds.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 12/12/2007
Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by_ Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 12/12/2007