HomeMy WebLinkAboutOrdinance 21820-08-2015 ORDINANCE NO. 21820-08-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF
$7,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING
LEGAL ASSISTANCE WITH THE CITY'S OIL AND GAS MINERAL
LEASING; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2014-
2015 in the Budget of the City Manager, there shall also be increased estimated receipts and
appropriations in the General Fund in the amount of $7,000.00, from available funds, for the
purpose of funding legal assistance with the City's oil and gas mineral leasing.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21457-09-2014 and all other ordinances
and appropriations amending the same except in those instances where the provisions of this
ordinance are in direct conflict with such other ordinances and appropriations, in which instance
said conflicting provisions of said prior ordinances and appropriations are hereby expressly
repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: ")
Sarah Full rder, i t .City Attorney Mary J. ser, Ci Secretary
ADOPTED AND EFFECTIVE: August 11, 2015
City of ort Teas
Mayor and Council Communication
COUNCIL'. ACTION: Approved on 8/11/2015 - Ordinance No. 21820-08-2015 & Resolution
No, 4499-08-2015
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DATE: Tuesday, August 11, 2015 REFERENCE NO.: **G-13527
LOG NAME: 1 INCREASE OIL GAS LEASE OUTSIDE COUNSEL
SUBJECT:
Adopt Resolution Increasing the Amount of Fees for Moses, Palmer and Howell, L.L, ., as Outside
Counsel in an Amount Not to Exceed $10,000.00 to Advise the City on Oil and Gas Mineral Lease
Provisions Related to Gas Marketing and Authorizing Payment of Counsel Fees from Lease Revenues
and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Councils
1. Authorize the transfer of$7,000,00 from the Airports Gas Lease Project Fund from lease revenues
to the General FundG
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
General Fund in the amount of 7,000.00„ an
. Adopt the attached resolution authorizing an increase in the amount to be paid to doses, Palmer an
Howell, L.L.P., as outside counsel to advise the City on oil and gas mineral lease provisions related to gas
marketing and authorizing payment of counsel fees in an amount not to exceed the amount of 10,000..00.
DISCUSSION:
The City of Fort Worth (City) has currently entered into approximately 581 oil and as mineral leases for
e 11,366 mineral acres that it owns. In the past year„ the City has conducted two intensive audits„ on
with Chesapeake Operating Inc., and one with X O Energy, Inc. During these audits, certain legal issues
arose which require expertise in oil and gas mineral leasing, including gas marketing contracts to affiliates.
On October 14, 2014, the City Council approved a resolution authorizing the City Manager to retain
Moses, Palmer and Howell, L.L.P., as outside counsel to provide legal assistance tot the City regarding its
oil and gas mineral leasing„ including gas marketing contracts -to affiliates. The resolution authorized
payment in an amount not to exceed $3,000.00 to be paid to Moses, Palmer and Howell, L.L. .„ forthose
legal services. The Tissues related tot the airport property leases have raised the need for continued
counsel...
Because oft the ongoing nature of'issues and because of the extraordinary compllexity of this area of law, it
is recommended that e City Council increase the maximum amount to be paid to Moses, Palmer and
Howell, L.L, ., to an amount not to exceed the amount of$10,000.00. Payment of the counsel fees shall
be made from s Lease revenues. The City Manager and the City Attorney recommend increasing the
maximum amount.
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Upon approval of these recommendations, the Financiai Management Services Director certifies that
funds will be available, as appropriated in the FY2015 General Fund operating budget, for these
expenditures.
FUND CENTERS:
TO Fundl/Account/Centers FROM Fund/Account/Centers
GG01 472240 0062050 �7
__000.00 P240 538070 5511 929990100 7_0 0
..................
GG01 539,120 006.2050 .,.Q.Qp..00 GG01 539120 0062050
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........... ......... ..........-.......... .......... .......
CERTIFICATIONS:
Submitted for City IVlanac�er's ff%qe by: ALL ACs (6222)
Orin i nglingg_D gpp Ment Head; Sarah Fullenwider (7623)
Gerald Pruitt ('7616)
Additional Information Contact: Christa Rey'noids (8984)
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LOgn1IMC: 121N(JU.-.',ASE OIL GAS LEASE' CSI.UTSI E)F', COUNSEL Page 2 of 2