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.
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el 1
Hama
1111 I III _;::
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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