HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2013-07RESOLUTION NO. FWLDC-2013-07
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorizing the Retention of Ralph Duggins and the Law Firm of Cantey
Hanger LLP, as Outside Legal Counsel to File a Lawsuit Against
Chesapeake Operating, Inc. and Total E&P USA, Inc. Over Oil and Gas
Lease Royalty Payments to the Corporation
WHEREAS, the Fort Worth Local Development Corporation (the "Corporation") has
entered into a number of oil and gas leases of Corporation property within the Barnett Shale
Field; and
WHEREAS, the leases provide that the royalties paid thereunder are to be free of costs
of any kind; and
WHEREAS, Chesapeake Operating, Inc., and Chesapeake Exploration, LLC and Total
E&P (USA), Inc. are the lessees or assignees of the lessee of some of the oil and gas leases with
the Corporation; and
WHEREAS, the Corporation has reason to believe that Chesapeake Operating, Inc. and
Total E&P (USA), Inc. have reported as the gross sales price of produced gas the net sales price
after disallowed costs when reporting and remitting royalty payments to the Corporation for
leases held by Chesapeake Operating, Inc. and Total E&P (USA), Inc. in violation of the terms
of the leases; and
WHEREAS, pursuant to Resolution No. 4253-10-2013, on October 22, 2013 the City
Council of the City of Fort Worth (the "City") ratified the retention of Ralph Duggins and the
law firm of Cantey Hanger LLP and the filing of a lawsuit against Chesapeake Operating, Inc.
and Total E&P (USA), Inc. over the same issues involving oil and gas leases between the City
and Chesapeake Operating, Inc. and Total E&P (USA), Inc.;
NOW THEREFORE, BE IT RESOLVED that the Board of Trustees of the
Corporation hereby authorizes the retention of Ralph Duggins and the law firm of Cantey Hanger
LLP and the filing of a lawsuit against Chesapeake Operating, Inc. and Total E&P (USA), Inc.
over issues relating to the calculations and amounts of royalty payments made under oil and gas
leases between the Corporation and Chesapeake Operating, Inc. and Total E&P (USA), Inc.;
FURTHER RESOLVED, that the Corporation is hereby authorized to compensate
Ralph Duggins and the law firm of Cantey Hanger L.L.P., by contingency on the same terms and
conditions as that of the City; and
RESOLUTION NO. FWLDC-2013-07
PAGE 2
FURTHER RESOLVED, that the President of the Corporation is hereby authorized to
enter into a contract with Ralph Duggins and Cantey Hanger LLP setting out the contingency in
accordance with the same terms and conditions as the contract executed by the City (City
Secretary Contract No. 45030), with all costs of litigation to be advanced by Cantey Hanger
LLP.
Adopted thiYth day of November, 2013:
4,
iZ By,,...
Dennis ShVgleton
Secretary'/ c