HomeMy WebLinkAboutContract 33005 CITY SECRETARY
CONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
Notice is hereby given that on the 14°i day of November, 2005, the CITY OF FORT WORTH,
whose mailing address is 1000 Throckmorton Street, Fort Worth, Texas 76102, as Lessor, and DALE
RESOURCES, L.L.C., a Texas limited liability company, whose mailing address is 2100 Ross Avenue,
Suite 1870, LB-9, Dallas, Texas 75201, as Lessee, wherein Lessor, in consideration of a cash bonus in
hand paid, of the royalties herein provided, and of the agreements of Lessee contained in said Lease,
hereby grants, leases, and lets exclusively unto Lessee for the sole purpose of investigating, exploring,
drilling,operating,and producing oil and/or gas from the land leased hereunder,together with any liquid
or gaseous substances produced in association with oil and gas, the following described land situated in
the City of Fort Worth,Texas described in Exhibit"A"attached hereto(the"leased premises").
All mineral substances and mineral right other than oil and gas (and all other liquid or gaseous
minerals produced in association with oil or gas) are expressly reserved to lessor and excepted from this
Lease. The reserved mineral rights include,but are not limited to,the rights to lignite,coal and sulfur not
produced as a component of oil and gas.
For the purpose of determining the amount of any bonus or other payment hereunder,said leased
premises shall be deemed to contain 90.344 acres,whether actually containing more or less.
Subject to the other provisions contained therein,said Lease shall be for a term of two(2)years
from the date of the notarial acknowledgement of Lessor's execution of said lease, said date being
November 14,2005,and so long thereafter as oil,gas or other minerals granted therein are produced from
the leased premises or lands pooled therewith,in paying quantities,or drilling operations are in progress
thereon as hereinafter provided,and the royalties are paid as provided herein.
Reference is hereby made by Lessor and Lessee to the Lease,the same as if copied herein in full,
for the terms and provisions pertaining thereto and for all other purposes.
This Memorandum shall not be deemed to enlarge, restrict or change the rights of any of the
parties under the Lease.
This Memorandum is executed for the purpose of filing this instrument of record in the official
Records of Tarrant County,Texas,to give notice to all third parties dealing with Lessor or Lessee or with
the lands above described of the existence of the Oil and Gas Lease. The Oil and Gas Lease and this
Memorandum shall be binding upon Lessor and Lessee and their respective heirs,successors and assigns.
Originals of the Oil and Gas Lease are in the possession of Lessor and Lessee. A copy of the Oil and Gas
Lease is on file with the City of Fort Worth City Secretary's Office.
IN WITNESS WHEREOF, the parties have executed this instrument as of the �_3 day of
December,2005.
LESSOR:
CITY OF RT WORTH
By:
A ista City `anger
ATTEST: I 1 1,
By:
Contract utho ization
�DA V 1-
City Secretary
Data
APPROVED AS TO FORM AND LEGALITY:
Assistant Ci A torney q T ROD
Date: [ �z� OFFItC"Ut
'CITY M�"fib ff
R *0111?n, TO!"
LESSEE:
DALE RESOURCES,L.L.C.
By:
Ann 5.Vandenberg
Vice President
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF TARRANT §
Before me, a notary public, on this day personally appeared —Mazy,A, 'd' (Name),
Assistant City Manager of the City of Fort Worth, known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that the same is the act of the City of Fort
Worth,and that he executed the same as its Assistant City Manager, for the purposes and consideration
expressed in the foregoing instrument.
Given under my hand and seal of office this /3 day of ,2005.
HETTIE ,-;;n4
S
MY COMMISSISIONOO PIRES otary Public,State of Texas Z� o July
My Commission Expires:
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF DALLAS §
lovemlA—
This instrument was acknowledged before me on this the I4!&-day of February;2005,by Ann F.
Vandenberg,Vice President of Dale Resources,L.L.C.,a Texas Limited Liability Company,on behalf of
said company.
F"••.
HEATHER M.RAflC1A
MY COMMISSION EXPIRES
,qms t,2006
otary Pub ic,leWTexs
My Commission Expires:
Notary's Printed Name
2
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Exhibit"A"
Being Eight-Six and Six One-Hundreds(86.06)acres of land,more or less,out of and a part of the
Preston Witt Survey,of 150-1/2 acres which was patented on January 27, 1855,to A.G.Walker,
Assignee of Preston Witt by letters Patent No.766,Vol. 10;which said Land is situated in Tarrant
County,Texas,and is described by metes and bounds as follows;to-wit:
BEGINNING at a stake,the S.E.Corner of the W.C.Trimble Survey,
THENCE East 448 Varas to the S.E.Corner of said Preston Witt Survey,and S.W.Corner of the
Masters Survey;
THENCE North with the West line of the Masters Survey and passing N.W.Corner to a point in the
comer of the West fork of the Trinity River in the East line of said Witt Survey;
THENCE South with said West line to the center of said River in said West line and in the East line of the
said W.C.Trimble Survey;
TEHNCE up the River to Witt's West line and Trimble's East Line;
THENCE South 480 varas to the Place of Beginning,containing within said metes and bounds 86.06
acres of land,more or less;
Save and Except that 0.066 acres of land conveyed to the State of Texas by Deed recorded in Volume
9547,Page 471,Deed Records of Tarrant County,Texas.
And
A Part of the William C.Trimble Survey,Abstract No. 1521,situated about 7-3/4 miles North 75 degrees
West from the Courthouse in Tarrant County,Texas,which said property is described by metes and
bounds as follows to wit:
BEGINNING at a Point in the West line of the Preston Witt Survey and the East line of the William C.
Trimble Survey,and 3592-1/10 feet from the Southeast corner of said Trimble Survey and the Southwest
corner of said Witt Survey,and said Beginning Point is the most northerly Northwest comer of that tract
conveyed to J.C.Gamewell by a Deed recorded in Volume 817,Page 412,of the Deed Records of
Tarrant County,Texas,and is the Middle of the Trinity River,whence a Concrete Monument bears North
no degrees 10 minutes East 76-3/10 feet;
THENCE South no degrees 10 minutes West,along the common line of said Trimble and Witt Surveys;'
757-9/10 feet to the middle of the Trinity River;
TEHNCE down the middle of said River with its meanders,South 80 degrees 40 minutes West 93 feet,
and North 72 degrees 28 Minutes West 82-5/10 feet,and North 35 degrees 48 minutes West 139 feet,and
North 13 degrees 13 minutes West 199-1/10 feet,and North 2 degrees 16 minutes East 142-7/10 feet,and
North 17 degrees 12 minutes East 215-3/10 feet,and North 57 degrees 1 minute East 144-1/10 feet,and
North 82 degrees 28 minutes East 110-3/10 feet to the place of beginning,and containing 4-35/100 acres
of land,more or less.
3
tJ��1t•�r:L !:5'VIJlJ
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/11/2005
DATE: Tuesday, October 11, 2005
LOG NAME: 30PRESTONWITT REFERENCE NO.: **C-21078
SUBJECT:
Approve Acceptance of a Lease Agreement with Dale Resources, L.L.C., for Natural Gas Drilling
under 90.41 Mineral Acres, More or Less, of City-Owned Properties Known as the North East
Landfill, Preston Witt Survey, Tract 2A and William C. Trimble Survey, Tract 4, Located in Tarrant
County, Texas
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 90.41 mineral acres, more or less, of City-owned properties known as the North East Landfill,
Preston Witt Survey, Tract 2A and William C. Trimble Survey, Tract 4, located in Tarrant County, Texas, at
6991 Randol Mill Road, with Dale Resources, L.L.C., for a two-year term.
DISCUSSION:
On June 28, 2005, (M&C G-14842) Fort Worth City Council authorized City staff to advertise a request for
proposals from private companies to drill for natural gas under City-owned properties known as the North
East Landfill, Preston Witt Survey, Tract 2A and William C. Trimble Survey, Tract 4, at 6991 Randol Mill
Road and further described in Exhibit "A." The total available acreage is 90.41 mineral acres.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Commercial
Recorder, published on July 7, 14 and 21 of 2005.
The following sealed bids for the gas lease were received and opened on July 28, 2005.
Bidders Lease Bonus/Acre Total Lease Bonus % Royalty
Four Sevens Oil Co., Ltd. $3,277.00 $296,273.57 25
Dale Resources, LLC $2,007.00 $181,452.87 27.5
The bids received were evaluated by staff and the City's mineral asset management consultant, JPMorgan
Chase. In addition to the lease bonus rate and royalties paid to the City, the bidder's drilling plan,
reputation, financial status, project team and compliance history were also evaluated. On August 5, 2005,
City staff and representatives from JPMorgan Chase met with representatives of each bidder to obtain
additional information and clarification of each proposal.
After comparing information from bidders, City staff and JPMorgan Chase determined, based upon the
proposal content and follow-up interview, that the Dale Resources, L.L.C. bid is likely to yield the most
revenues over the life of the well(s).
In accordance with the Alternative Assets Agency Account Agreement between JPMorgan Chase and the
Logname: 03HRS01 Page 1 of 2
City (City Secretary Contract No. 29698), JPMorgan Chase will serve as the depository of the lease bonus
revenue until the City requests wire transfer of the funds. The net transfer to the City, less administrative
and legal fees, is estimated to be $172,380.23 more or less.
It is anticipated that the lease bonus and royalty proceeds will be deposited in the City's Solid Waste Fund
and designated for improvement to the City's solid waste program.
The Property is located in COUNCIL DISTRICT 4, Mapsco 66 F,K.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds due
the City under this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE64 446100 0525001 $172,380.23
Submitted for City Manager's Office b Marc Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: A. Douglas Rademaker (6157)
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