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Home My WebLink AboutContract 46536 CIN SECRETAW LRO CONTRACT N0. MEMORANDUM OF OIL AND GAS LEASE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF TARRANT § BE IT REMEMBERED that on the AQ. l day of Nva rCJ-,,_ , 2015, a Paid Up Oil and Gas Lease was made and entered into by and between the CITY OF FORT WORTH, a home rule municipal corporation of the State of Texas, 1000 Throckmorton Street, Fort Worth, Texas 76102, hereinafter called "(LESSOR)"; and VANTAGE FORT WORTH ENERGY, LLC, 116 Inverness Drive East, Suite 107, Englewood, Colorado 80112, hereinafter called ("LESSEE"), where LESSOR hereby grants, leases and lets exclusively to LESSEE for the purpose of exploring for, developing, producing and marketing oil and gas, together with any liquid or gaseous substances produced in association therewith, from the following described land situated in Tarrant County, Texas,to-wit: SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF Subject to the other provisions therein contained, said lease provides for a primary term of two (2) years, from the date thereof, and as long thereafter as oil or gas or other substances covered therein are produced in paying quantities from the leased premises or from lands pooled therewith, or this lease is otherwise maintained in effect pursuant to the provisions therein. An Executed copy of said Oil and Gas Lease is in the possession of LESSEE at its address indicated above. Executed this the Mday of f y X , 2015. LESSOR: CITY OF FORT WORTH ATTEST: CM" M,// " �,/ By: Fernando Costa it Secr Title: Assistant City Manager APPROVED AS TO FORM AND LEGALITY: 1�8 1� By' S,Q Assistant Ci Attorney �° °u°-°� � �utor OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX Aate 1 ACKNOWLEDGEMENTS THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned,a Notary Public, on this day personally appeared Fernando Costa, Assistant City Manager of the City of Fort Worth, a home-rule municipal corporation of the State of Texas, known to me to be the person whose name is subscribed to the foregoing instrument and, that he has executed the same for the purposes and consideration therein expressed. /� GI - OF OFFICE this�day of /� r_k 2015. •?'" TP011NYiti : ?QHNS N woloty P-joie(_ note of Texos [S a�•'�,�� My Commisson April 17i 2018fres [otary Public in and for the State of Texas My ComAss'on Expires: �1Lv-, 'tidal-t- �11-i S my%-Print Name of Notary Public Here LESSEE: VANTAGE FORT WORTH ENERGY, LLC a Delaware Limited Liab' ompany By: Worth Carlin Its: Vice President- Land THE STATE OF Ot § COUNTY OF ci; § BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Worth Carlin, Vice President — Land of Vantage Fort Worth Energy, LLC, a Delaware Limited Liability Company, known to me to be the person whose name is subscribed to the foregoing instrument and, that he has executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this I day ofMq&1�015. [S ] NotaryPu 'c i and for the State of JULIE A HINKLE Notary Public My,omission Epir S. State of Colorado i Y Print Name of Notary Public Her Notary ID 20064018287 My Commission Expires May 11, 2018 OFFICIAL RECORD CITY SECRETARY 2 FT.WORTH,TX EXHIBIT A 28.281 acres, more or less, located in the B.B. B. & C. Railroad Company Survey, A-216, the M.E.P. & P.R.R. Co. Survey, A-1123, and the Thomas B. Taylor Survey, A-1539, Tarrant County, Texas, being more particularly described in the following five (5) tracts: TRACT ONE: Called 7.096 acres, more or less, in the B.B. B. &C. Railroad Company Survey, A-216, Tarrant County, Texas and being more particularly described by metes and bounds in that certain Warranty Deed dated July 20, 1970, from Riverside Development Corporation, to the City of Fort Worth, a Municipal Corporation, recorded in Volume 4922, Page 524, Deed Records, Tarrant County, Texas; TRACT TWO: Called 5.317 acres, more or less, in the Thomas B. Taylor Survey, A-1539, and the B.B.B. &C. Railroad Company Survey, A-216, Tarrant County, Texas, and being more particularly described by metes and bounds in that certain Warranty Deed dated July 20, 1970 from J.E. Foster, Jr. to the City of Fort Worth, a Municipal Corporation, recorded in Volume 4922, Page 528, Deed Records, Tarrant County, Texas; TRACT THREE: Called 4.219 acres, more or less, in the Thomas B. Taylor Survey A-1539, Tarrant County, Texas and being more particularly described by metes and bounds in that certain Warranty Deed dated November 12, 1969 from J.E. Foster, Jr. to the City of Fort Worth, a Municipal Corporation, recorded in Volume 4829, Page 367, Deed Records, Tarrant County, Texas; TRACT FOUR: Called 5.997 acres, more or less, within the Thomas B. Taylor Survey, A-1539 and being more particularly described by metes and bound in the certain Warrant Deed dated December 11, 1953 from J.E. Foster, J.E. Foster, Jr., and J.E. Foster III, to the City of Fort Worth, a Municipal Corporation, recorded in Volume 2656, Page 293, Deed Records, Tarrant County, Texas; TRACT FIVE: Called 5.652 acres, more or less out of the T. B. Taylor Survey, A-1539 and the M.E.P. & P.R.R. Co. Survey, A-1123, Tarrant County, Texas and being more particularly described by metes and bounds in that certain General Warrant Deed dated October 31, 1952 from J.E. Foster, J.E. Foster, Jr. and J.E. Foster III, to the City of Fort Worth, a Municipal Corporation, recorded in Volume 2499, Page 221, Deed Records, Tarrant County, Texas. (FOSTER PARK) OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX 3 W, ',Rc-view Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FOR 1i COUNCIL ACTION: Approved on 3/17/2015 DATE: 3/17/2015 REFERENCE NO.: L-15764 LOG NAME: 06FOSTER PARK DEED AND LEASE CODE: L TYPE: NON- PUBLIC CONSENT HEARING: NO SUBJECT: Ratify Correction Deed with the Heirs of the Original Grantors of Deeds Conveying Foster Park Properties to the City and of the Mineral Lease Agreement with Vantage Fort Worth Energy LLC, for Natural Gas Drilling Under City-Owned Property Known as Foster Park (COUNCIL DISTRICT 3) RECOMMENDATION: It is recommended that the City Council: 1. Ratify the Correction Deed providing for the heirs of the Original Grantors of deeds conveying Foster Park properties to the City (Foster Park Heirs) to retain a thirty-five percent non-executive mineral interest in the Foster Park 28.281 mineral acres; and 2. Ratify the negotiated Lease Agreement with Vantage Fort Worth Energy, LLC for natural gas drilling under City-owned property known as Foster Park, 28.281 total mineral acres more or less, 18.382 mineral acres to the City; 9.898 mineral acres to the Foster Park heirs in the total bonus amount of$98,983.50 ($64,339.27 to the City; $34,644.23 to the Foster Park heirs) for a two-year primary term and suspension of the bidding requirement. DISCUSSION: The City began receiving requests to lease the minerals under Foster Park in 2009. However, the deeds conveying properties which comprise Foster Park contained reversionary terms and conditions that required a negotiated resolution with the heirs of the original grantors of the deeds. In 2014, the City again received a request to lease the minerals under the park and was provided with contact information for an agent for the Foster Park heirs. The heirs collectively agreed to release the reversionary terms and conditions of the original deeds by Correction Deed and as consideration will retain a 35 percent non-executive mineral interest. The execution of the Correction Deed then allowed the City to enter into a mineral lease with Vantage Fort Worth Energy, LLC (Vantage). The location of the park is within the 330 foot radius of a wellbore being drilled by Vantage. In November 2014, Vantage requested that the Texas Railroad Commission allow a Rule 37 Exception to the Statewide Spacing Rules to allow drilling closer than 330 feet from this unleased park property. Therefore, timing was of the essence to enter into a Lease Agreement after the Correction Deed was executed. Furthermore, this action requires the suspension of the bidding requirement by City Council which by ratification of the lease will be granted. The Public Hearing to comply with Chapter 26 of the Texas Parks and Wildlife Code for the purpose of subsurface drilling and extraction of natural gas from an offsite location will be held on March 17, 2015 and the Correction Deed has been executed by the Foster Park heirs. Staff executed a lease for Foster Park with a $3,500.00 per acre bonus which is above the current market. Vantage agreed to all terms of the City standard lease, including a two-,year primary term and 25 percent royalty. Total bonus for the City's 18.382 net mineral acres is $64,339.27. This Mayor and Council Communication (M&C) will ratify the execution of the Correction Deed, http://apps.cfwnet.org/council_packet/mc_review.asp?ID=208 85&councildate=3/17/2 015 03/18/2015 '�*CrReview Page 2 of 2 approve the Lease Agreement and provide for the suspension of the bidding requirement. The Financial Management Policy Statements adopted by M&C G-18067, December 3, 2013, and under which this Agreement was made, direct 100 percent of the bonus to the Parks and Community Services Capital Improvements Fund for capital improvements at Foster Park. This park has not received funds from any state or federal granting authority. Therefore, all future royalties and other revenues associated with this park will be allocated 50 percent to the Capital Projects Reserve Fund and 50 percent to the General Endowment Gas Lease Fund. The property is located in COUNCIL DISTRICT 3, Mapsco 89G, 89H and 89M. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that the Property Management Department is responsible for the collection and deposit of funds due the City under this Agreement. TO Fund/Account/Centers FROM Fund/Account/Centers J 0282 446100 801929968900 $64,339.27 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Randle Harwood (6101) Additional Information Contact: Jean Petr (8367) ATTACHMENTS FosterPark MC map.pdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=20885&councildate=3/17/2015 03/18/2015 MAYOR AND COUNCIL COMMUNICATION MAP Foster Park r Cc IIS �,' .` , cr, Aar ilk YND OUTH * + ep kY r 0 , Li.l I elf U FiEYb'Vooc) I -- Elf I � � E3OYCE II SHEiLLBRODFt ` ti14' p � N.I& y� - h o FORTWORTH. Copyright 2015 City of Fort North. Unauthorized reproduction is a violation of applicable laws.This product is for informational purposes and may not have been General Location 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