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HomeMy WebLinkAboutContract 57375 CSC No.57375 FORT WORTH, March 31,2022 Brett Austin Vice President—Land TotalEnergies E&P USA Barnett 1, LLC 301 Commerce Street,Suite 3700 Fort Worth,Texas 76102 RE: Offer to Lease Tax-Foreclosed Properties within Lena Drilling Unit Dear Mr.Austin: TotalEnergies E&P USA Barnett 1, LLC (hereinafter, "Total") has inquired as to whether The City of Fort Worth (the "City") would be willing to enter into oil and gas leases for several properties located within the Lena Drilling Unit (the "Properties").The Properties are currently held in trust by the City for the use and benefit of the City and the other taxing units that established tax liens in the tax foreclosure suit or that, on the date of the seizure,were owed delinquent taxes on the Properties.The Properties are more specifically described in the attached Exhibit A. Due to the unusual circumstances of the tax-foreclosed properties held in trust by the City, the City proposes that the following conditions be applied to those properties in lieu of entering into a mineral lease: • Include each tax-foreclosed property within the drilling unit, but require no agreement between the City and Total; • Hold a twenty-five percent (25%) royalty in escrow for each tax-foreclosed property based upon its acreage within the drilling unit and with no risk or obligation to the City. The escrow funds would be subject to disposition in the manner provided by law; • Ensure the surface of each property shall never be used for drilling, seismic testing, pipelines or any other surface use without the express, written consent of the City as trustee for the associated taxing entities; • Provide the City with an initial report and, thereafter, an annual report of the actual property acreage included within the drilling unit and the acreage and revenues attributed to each tax- foreclosed property; and • Ensure compliance with all requirements of the Railroad Commission of Texas, the City's gas drilling ordinances,and any other applicable regulations. OFFICIAL RECORD CITY SECRETARY CITYMANAGER's OFFICE FT. WORTH, TX City of Fort Worth*200 Texas Street*Fort Worth,Texas 76102 (817)392-6111 *Fax(817)392-6134 FORTWORTH. The City believes the conditions set forth above to be an acceptable resolution to the requirements of state law regarding tax-foreclosed properties, Further, the City requests that Total consider these conditions for tax-foreclosed properties in any future pooled drilling units. Please note your concurrence in the space provided below. Sincerely, Dana Burghdoff(Apr 4,202 :15 CDT) — Dana Burghdoff Assistant City Manager APPROVED AS TO FORM AND LEGALITY: ..l�r��lrcw.iGlw�ta� By: Assistant City Attorney ATTEST: �1,JJ///�sur¢�7 5 e �eQ By: 4.yiiette S.G..&lI(Apra,2022113,'XDT) Jannette S. Goodall, City Secretary Concurrence: oAF FORT /J °op00000 TotalEnergies E&P USA Barnett 1, LLC 0°° °° a Delaware Limited Liability Company ��o 00 �o " 000° ° d ° o By: Brett Austin �� o° °o 4d Vice President—Land ��� °OOpp0°° o *XAsa� Date a, DB/ms OFFICIAL RECORD CITY SECRETARY CITY MANAGER's OFFICE FT. WORTH, TX City of Fort Worth*200 Texas Street*Fort Worth,Texas 76102 (817)392-6111*Fax(817)392-6134 .FORT WORT Ho. EXHIBIT A UNIT WELL UNIT TRACT PROPERTY ADDRESS TAX PIN TRACT ACRES VESTING DEED RECORDING LENA UNIT 1H 552 5300 PANOLA AVE 01143522 .281 D215122205 LENA UNIT 1H 553 5304 PANOLA AVE 01143530 .207 D215122206 LENA UNIT 1H 632 5216 VINSON 01191152 .218 D190098550 CITY MANAGER's OFFICE City of Fort Worth*200 Texas Street*Fort Worth,Texas 76102 (817)392-6111*Fax(817)392-6134