HomeMy WebLinkAboutContract 36743 CITY SECRETARY
CONTRACT
NO.NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the 2nd day of January, 2008, a Paid Up Oil and Gas
Lease was made and entered into by and between the CITY OF FORT WORTH,a home rule
municipal corporation of the State of Texas, c/o Director, Department of Engineering, 1000
Throckmorton Street, Fort Worth, Texas 76102, hereinafter called "(LESSOR)'; and XTO
Energy, Inc., 810 Houston Street, Fort Worth, Texas 76102, 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 the day of a.�o.4rt 2008.
LESSOR: LESSEE:
CITY OF FORT WORTH XTOO ENER,/G/'JY,INC. L//J
4—,
BY: M--wr A Ott By: spy
Title:Assistant CityManagerdwin S.Ryan,Jr.
g MarcM�'c A.Ott Its: Senior VP-Land Administration
A TEST:
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City Secretary
APPROVED AS TO FORM AND LEGALITY:
By: JAtt
Assistant�Citey
Date: 1(y
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Contrlac a t r zatioY
1
date
03-13-08 P02:32 IN
1
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, —=�� the undersigned notary public, on
this day personally appeared 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
purposes and consideration therein expressed.
2008.
GIVEN under my hand and seal of office this day of
'
Notary Public,State of Texas
My Commission Expires: p
Commission Number:
EIE
STATE OF TEXAS §
COUNTY OF TARRANT § /
This instrpum�e�nt was acknowledged before m this />,rC of T'f'��� 2008,
by Z" ""c as�J�p� c. Gdv,;i, of XTO Energy,Inc.on
behalf of said corporation.
.A 4o..a
Notary Public,State ofrexas
My Commission Expires: 3-2-4—Cult!
Commission Number: r►IRMLAYCMT"AM
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Exhibit A
6.0 acres,more or less,out of the Sarah Gray Survey,A-558,being the same land conveyed by
J.C.Pace&Company to the City of Fort Worth by deed dated.January 2, 1991,recorded in
Volume 10130,Page 1552,Deed Records of Tarrant County,Texas and being more particularly
described as follows:
BEGINNING at a point in the existing north right-of-way line of Alsbury Boulevard at its
intersection with the future west right-of-way line of Stone Road,said point also being 90.0 feet
westerly of the most northerly corner of Lot 1,Block 1,Fort Worth Spinks Airport,an addition
to the City of Fort Worth,according to plat recorded in Cabinet A, Slide 353,Plat Records,
Tarrant County,Texas;
THENCE North 00 degrees 00 minutes 14 seconds East,along the future west right-of-way line
of said Stone Road 871.20 feet to a point;
THENCE South 89 degrees 58 minutes 14 seconds West 300 feet to a point;
THENCE South 00 degrees 00minutes 14 seconds West 871.20 feet to a point in the north right-
of-way of said Alsbury Boulevard;
THENCE North 89 degrees 58 minutes 14 seconds East along the north right-of-way line of said
Alsbury Boulevard 300 feet to the POINT OF BEGINNING,and containing 6.0 acres of land,
more or less.
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Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/18/2007
DATE: Tuesday, December 18, 2007
LOG NAME: 30PARK & RIDE REFERENCE NO.: **L-14439
SUBJECT:
Approve Acceptance of Lease Agreement with XTO Energy, Inc., for Natural Gas Drilling Under Six
Acres, More or Less, of City-Owned Properties Located in Tarrant County, Texas, known as Spinks
Park and Ride
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under six acres, more or less, of City-owned properties located in Tarrant County, Texas, known as
Spinks Park and Ride to XTO Energy, Inc.
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. This property is located
at 351 East Alsbury Boulevard. Acceptance of this lease agreement will reduce the approved 500
miscellaneous mineral acres of City-owned parcels by six net mineral acres, more or less.
A request for bid proposals (RFP) for Spinks Park and Ride was advertised for three consecutive weeks in
the Fort Worth Star-Telegram, published on November 8, 15 and 22, 2007.
The following sealed bids for the gas lease were received and opened on November 29, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus Royalty
Cheasapeake Exploration, L.L.C. $11,888.00 $71,328.00 25%
XTO Energy, Inc. $23,511.00 $141,066.00 26%
The bids received were 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 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 $134,012.70, more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of 3 percent
on City-owned property of 40 acres or more without an investment goal. On leases of City-owned property
of 700 acres or more, the City has established an option of either a 3 percent M/WBE goal or the inclusion
of an M/WBE investor. This lease is less than 40 acres, therefore no M/WBE participation goal is required.
Revenues received from this lease will be administered in accordance with the current City Council Policy
on Gas Well Revenues.
http://www.cfwnet.org/council_packet/Reports/Mcprint.asp 3/14/2008
Page 2 of 2
The property is located in COUNCIL DISTRICT 8, Mapsco 119 T.
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
GC10 446100 013010001000 $134,012.70
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 3/14/2008