HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2016-09RESOLUTION NO. FWLDC-2016-09
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 352" d 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 City Council ratified the retention of Ralph
Duggins of the firm of Cantey Hanger L.L. P. and the filing of the Lawsuit (Resolution No.
4253-10-2013);
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 Corporation has reached a Compromise Settlement Agreement with
Lawsuit defendants Total E&P and Total Gas & Power North America, Inc. and that settlement
was approved by the Board on behalf of the Corporation on March 22, 2016 (Resolution No.
FWLDC-2016-11);
WHEREAS, the Corporation has reached a Compromise and Settlement Agreement
("Settlement Agreement") with the remaining defendants in the Lawsuit;
WHEREAS, the Board believes the Settlement Agreement to be in the best interest of
the Corporation and desires to approve the Settlement Agreement, approve the execution of the
Settlement, and ratify and approve all actions taken in connection with the execution of the
Settlement Agreement.
Page 1 of 2
Resolution Authorizing Settlement Agreement with Total
RESOLUTION NO. FWLDC-2016-09
PAGE 2
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 BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION THAT:
1. The Board authorizes the execution of the Settlement Agreement in substantial
compliance with the mediated 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.
Page 2 of 2
Resolution Authorizing Settlement Agreement with Total