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HomeMy WebLinkAboutContract 44778-A2 (2)CITY SECRETARY � l �� �,i� � CONTRACT NO. SECOND AMENDMENT TO FORT WORTH CITY SECRETARY CONTRACT NO. 44778 - SUBSURFACE WELLBORE LICENSE AGREEMENT This SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 44778 - SUBSURFACE WELLBORE LICENSE AGREEMENT ("Second Amendment") is made and entered into by and between the CITY OF FORT WORTH, a home -rule municipal corporation of the State of Texas (the'"City"), acting by and through its duly authorized Assistant City Manager, and XTO ENERGY, INC., a Delaware corporation (the "Company"), acting by and through its Senior Vice President, Land Administration. RECITALS WHEREAS, City and Company entered into an agreement allowing Company to drill a single wellbore across a designated 581.99-linear-foot portion of the subsurface of a City -owned property known as Meacham Airport, that agreement being Fort Worth City Secretary Contract No. 44778 (the "Agreement"), which is recorded as Instrument No. D213242363 in the Real Property Records of Tarrant County; and WHEREAS, physical conditions on site made it unfeasible for Company to establish the wellbore crossing in accordance with the original alignment established in the Agreement; and WHEREAS, the parties amended the Agreement to provide for an alternate alignment that was expected to require the use of a total of 598.53 linear feet in exchange for an additional license fee of $814.60 for the use of the additional 16.54 linear feet of City property, that amendment being Fort Worth City Secretary Contract No. 44778-Al, which is recorded as Instrument No. D213295346 in the Real Property Records of Tarrant County; and WHEREAS, on completion of the as -built plans, the parties discovered that the final, installed alignment actually resulted in a total length of 602.83 linear feet, which is 4.3 linear feet more than anticipated, and therefore wish to amend the Agreement a second time to allow for the use of additional City property in exchange for an additional license fee in the amount of $211.78. NOW THEREFORE, City and Company do mutually covenant and agree as follows: SECOND AMENDMENT TO FORT WORTH CITY SECRETARY CONTRACT NO. 44778 OFFICIAL RECORD CITY SECRETARY FTI WORTH,£ TX D FED _ • 2014 1. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX That Fort Worth City Secretary Contract No. 44778, as amended by Fort Worth City Secretary Contract No, 44778-A1, is hereby amended to delete Exhibit A-1 in its entirety and replace it with Exhibit A-2, which is attached to this Second Amendment and incorporated in the Agreement for all purposes as though it were set forth at length. 2. That on or prior to date on which this Second Amendment is executed, Company shall pay the City an additional fee in the amount of Two Hundred Eleven Dollars and Seventy Eight Cents ($211.78) as compensation for Company's use of an additional 4.3 linear feet of the Subsurface Tract for the term of the Agreement with this additional payment being considered part of the License Fee as that term is used in the Agreement. And that Company hereby acknowledges and agrees that the amount of this additional portion of the License Fee is non-refundable and constitutes just and reasonable compensation to the City for Company's use of an additional portion of the Subsurface Tract as described in this Second Amendment. And that Company further acknowledges and agrees that the total License Fee of $29,689.39 constitutes just and reasonable compensation to the City for Company's use of the 602.83-linear-foot Subsurface Tract. 3. That all other provisions of Fort Worth City Secretary Contract No. 44778, as amended by Fort Worth City Secretary Contract No. 44778, that are not expressly amended herein shall remain in full force and effect. EXECUTED on this the /1 day of CITY OF FORT WORTH: 77.0•1421___. Fernando Costa Assistant City Manager A,p} oved flt Form and Legality: �� k ly Denis McElroyj�ssistant City Attorney Contract Authorization - M&C L-15659 /47:e Vet , 2014. XTO ENERGY, INC., a Delaware‘14-- Corporationor By: f• i_ Printed Name: G wad 4 2 0,44 -- Title:4 . ad - .64..E t 4i r* Y SECOND AMENDMENT TO FORT WORTH CITY SECRETARY CONTRACT NO. 44778 ,n 12"IRF. Lot 1 Blk. 3 Washington Heights Addition Vol. 204 Pg. 72 599.581 ACRES OF A BILLED 826.9043 ACRE MEACHAM LEASE 2 3 4 5 6 7 8 9 10 Cabinet A, Slide 2447 Inst. No. D195162760 Meacham Lease (XTO Energy Inc.) James Wallace A-1605 38th Street N 87°32'42" E 1 522.58' 20 19 18 17 16 15 14 13 12 11 Re—enter Slaughter Heights Unit E:2045345.76 N:416917.38 TMD = 6685.4' TVD = 6449.2' Called 545.5361 Acre Slaughter Heights Unit CROSSING MEACHAM AIRPORT FOR THE SLAUGHTER HEIGHTS UNIT 2H WELL FOR THE EXCLUSIVE USE OF XTO ENERGY, INC. STATE OF TEXAS — — — COUNTY OF SMITH I, E. L. Sartain, Registered Professional Land Surveyor, do hereby certify the above plat to be true and correct to the best of my knowledge. Date: January 07, 20A ---Tyler Texas Harry L. Johnson E.L.S. Survey; RegisTered Professional Land Surveyor No. 1978 The location shown hereon was staked from tract lines as evidenced by occupation. Distances shown are not intended to be definitive in establishing title boundaries. The acreages shown hereon were provided by others. Drafter: J.G.G./ BSA 0 LEGEND Proposed Well (SL) 200' Proposed Penetration Point (PP) Proposed Bottom Location (BL) Existing Well Scaled Distance Job No. 295706 Sc. WTW Properties, Inc. D207347984 201 N. 38th St. 5/8" IRF. @ PC of Terminal Road South RNV IQ? 2 Exit Slaughter Heights Unit E:2045733.93 N:417378.60 TMD = 5237.9' TVD = 5133.3' LICENSE AREA DISTANCE William. B. Tucker, Sr. A-1516 Abraham Anderson A-21 EXHIBIT' A' SUB SURFACE WELL BORE LICENSE AGREEMENT XTO ENERGY INC. TARRANT COUNTY, TEXAS SCALE: 1" = 200' From the Office of ELS Surveying & Mapping, Inc. / Harry L. Johnson & Associates 2004 W. Grande Blvd. Tyler, Texas 75703 Phone (903) 581-7759 Map No. SUBSURFACE ESMT REV M&C Review Page 1 of 2 CITY COUNCIL AGENDA COUNCIL ACTION: Approved on 2/11/2014 DATE: 2/11/2014 REFERENCE NO.: CODE: L TYPE: L-15659 LOG NAME: NON- PUBLIC CONSENT HEARING: Official site of the City of Fort Worth, Texas FORT WORT I 06MEACHAM SUB- SURFACE L/A SECONDAMEND NO SUBJECT: Authorize Second Amendment to Subsurface Wellbore License Agreement with XTO Energy, Inc., Across City -Owned Property Known as Meacham Airport to Increase the License Area by 4.3 Linear Feet in Exchange for Payment of an Additional License Fee in the Amount of $211.78 (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that City Council authorize a second Amendment to the subsurface wellbore License Agreement with XTO Energy, Inc., across city -owned property known as Meacham Airport to increase the license area by 4.3 linear feet in exchange for payment of an additional license fee in the amount of $211.78. DISCUSSION: On August 20, 2013, the City Council approved a subsurface Wellbore License Agreement with XTO Energy, Inc. (XTO), for a 20-year term to allow the crossing of one wellbore pipe from the Slaughter Heights 2H well across the Meacham unit to XTO's Slaughter Heights unit in order to develop the minerals in the Slaughter Heights unit (M&C L-15609). In connection with the execution of the license Agreement, City Secretary Contract No. 44778, XTO paid the City a license fee in the amount of $28,663.01, the City's standard fee in the amount of $49.25 per -linear -foot fee for 581.99 linear feet, which was distributed in accordance with the City's Financial Management Policy Statements. Physical conditions on site made it unfeasible for the company to establish the wellbore crossing in accordance with the originally proposed alignment. At XTO's request, Staff asked the City Council to approve an Amendment to the Agreement to revise the alignment for the crossing and increase the total license area by 16.54 linear feet in exchange for an additional license fee in the amount of $814.60, $49.25 per -linear -foot fee multiplied by 16.54 linear feet. The City Council authorized that Amendment when it approved M&C L-15627 on October 7, 2013. Although it was anticipated that the additional authorization would be sufficient to encompass the entire wellbore, the "as drilled" plat that XTO submitted indicates that the revised alignment resulted in use of a 20.84 linear feet instead of the anticipated and agreed 16.54 linear feet. Approval of this Mayor and Council Communication would authorize a second Amendment to the license Agreement to reflect the final "as drilled" location and length of the wellbore, including the additional 4.3 linear feet. XTO has agreed to pay an additional license fee in the amount of $211.78 for the use of additional City property $49.25 per -linear -foot fee multiplied by 4.3 linear feet. No surface use of the property will be granted. The property is located in COUNCIL DISTRICT 2, Mapsco 48T. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that the Planning and Development Department is responsible for the collection and deposit of funds due the City under this Agreement. http://apps.cfwnet.org/councilpacket/mc_review.asp?ID=19456&councildate=2/11/2014 2/14/2014 M&C Review Page 2 of 2 TO Fund/Account/Centers P240 446300 551929990100 $105.89 T125 446300 055125099901 $105.89 Submitted for City Manaaer's Office bv: Oriainatina Department Head: Additional Information Contact: ATTACHMENTS Meachamasdril led.odf FROM Fund/Account/Centers Fernando Costa (6122) Randle Harwood (6101) Jean Petr (8367) Katherine Davenport (8044) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19456&councildate=2/11/2014 2/14/2014 MAYOR AND COUNCIL COMMUNICATION MAP MEACHAM AIRPORT SUBSURFACE LICENSE AGREEMENT AMENDMENT = r. Proposed amendment that would allow for an additional 4.3 linear feet of unperforated wellbore 4.. across the Meacham Airport property bringing the total wellbore length to 602.83 linear feet. Fee 0 500 1000 1500 FORT WORTH® 941 Copyright 2011 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for informational purposes and may not have been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on -the - ground survey and represents only the approximate relative location of property boundaries. The City of Fort worth assumes no responsibility for the accuracy of said data. ct o, z- el 1 Hama 1111 I III _;:: ;.;.;.�..�1 1. 28T'H * General Location Proposed Pipeline Meacham Unit Boundary M&C Review Page 1 of 1 Official site of the City of Fort Worth, Texas CITY COUNCIL AGENDA FORTH COUNCIL ACTION: Approved on 8/20/2013 DATE: 8/20/2013 REFERENCE NO.: CODE: L SUBJECT: LOG NAME: PUBLIC HEARING: Authorize Execution of a Subsurface Wellbore License Agreement with XTO Energy, Inc., in the Amount of $28,663.01 for One Subsurface Wellbore Across the City -Owned Property Known as Meacham Airport (COUNCIL DISTRICT 2) 06MEACHAM SUB- SURFACE L/A TYPE: L-15609 NON - CONSENT NO RECOMMENDATION: It is recommended that City Council authorize the execution of a Subsurface Wellbore License Agreement with XTO Energy, Inc., for one subsurface wellbore across City -owned property known as Meacham Airport in the amount of $28,663.01. DISCUSSION: XTO Energy, Inc., has requested a Subsurface Wellbore License Agreement across City owned property known as Meacham Airport. The Subsurface Wellbore License Agreement is for one wellbore pipe from the Slaughter Heights 2H well across the Meacham unit to the XTO's Slaughter Heights unit in order to develop the minerals within Slaughter Heights unit. The Slaughter Heights 2H wellbore will remain unperforated while passing through the Meacham Unit. Per the terms of the Subsurface Wellbore License Agreement, XTO Energy, Inc., will pay the City $49.25 per linear foot for 581.99 linear feet of wellbore pipe for a total cost of $28,663.01 for a 20 year term. No surface use of the property will be granted. The property is located in COUNCIL DISTRICT 2, Mapsco 48T. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that the Planning and Development Department is responsible for the collection and deposit of funds due the City under this Agreement. TO Fund/Account/Centers P240 446300 551929990100 $14.331.51 T125 446300 055125099901 $14,331.50 FROM Fund/Account/Centers Submitted for City Manaaer's Office bv: Fernando Costa (6122) Oriainatina Department Head: Randle Harwood (6101) Additional Information Contact: ATTACHMENTS Meacham SS.pdf Jean Petr (8367) D. J. Harrell (8032) http://apps.cfwnet.org/council_packet/mc review.asp?ID=1 8 8 1 8&councildate=8/20/2013 2/14/2014