HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2016-03RESOLUTION NO. FWLDC-2016-03
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorizing the Settlement of the Portion of the Fort Worth Local Development
Corporation Claims Against Total E&P (USA), Inc., and Total Gas & Power
North America, Inc., Related to the Lawsuit Currently Pending in the 352nd
District Court of Tarrant County, Texas in Cause No. 352-272138-14, Styled Fort
Worth Housing Finance Corporation, Fort Worth Local Development
Corporation, and Villas Of Eastwood, LLC V. Chesapeake Energy Corporation,
et. al. and Authorize Execution of all Lease Documents and All Agreements
Necessary to Complete the Settlement
WHEREAS, the Fort Worth Local Development Corporation ("Corporation") has
entered into oil and gas leases for the minerals underlying the Corporation's properties and
certain of those Leases are held by Chesapeake Operating, Inc. ("Chesapeake) and Total E&P
(USA), Inc. ("Total E&P") (collectively, the "Leases") as either the original lessee or as an
assignee from the original lessee;
WHEREAS, in 2013, the City, the Corporation, the Company, and the Fort Worth Local
Development Corporation ("LDC"), filed suits as Cause Nos. 48-268798-13 and 352-272138-14
(collectively the "Lawsuit") complaining about the lessees' compliance with the Leases,
specifically related to the calculations and amounts of royalty payment made under the Leases;
WHEREAS, on October 22, 2013, the
Duggins of the firm of Cantey Hanger L.L. P.
4253-10-2013);
City Council ratified the retention of Ralph
and the filing of the Lawsuit (Resolution No.
WHEREAS, on November 5, 2013, the Corporation approved hiring Ralph Duggins of
the law firm Cantey Hanger L.L.P. as legal counsel to assist the Corporation in connection with
the gas lease royalty payments under their respective Leases (Resolution No. FWLDC-2013-07);
WHEREAS, the City, the Corporation, the Company, and the LDC have reached a
Compromise and Settlement Agreement ("Settlement Agreement") with Lawsuit defendants
Total E&P and Total Gas & Power North America, Inc.;
WHEREAS, the Corporation desires to approve the Settlement Agreement and authorize
execution of all lease documents and all agreements necessary to complete the settlement.
NOW THEREFORE, BE IT RESOLVED THAT:
RESOLUTION NO. FWLDC-2016-03
PAGE 2
1. The Board authorizes the execution of the Settlement Agreement in substantial
compliance with the settlement agreement attached hereto and made apart hereof for all
purposes as Exhibit "A"; and
2. The Board authorizes the execution of all lease documents and all agreements necessary
to complete the settlement; and
3. This Resolution takes effect from the date of its adoption.
Adopted this 22nd day of March, 2016.
By:
President