Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas Consenting to the Assignment of that Certain Gas Lease between the City of Mansfield and Sage Natural Resources, Inc for the City-Owned Property Covering 3.52 Acres of Land, More or Less, in Tarrant County, Texas, to SNR Financing LLC; and Providing an Effective Date
Requested Action
Approve the Resolution to Assign the Gas Lease
Recommendation
Staff recommends that the City Council of the City of Mansfield, Texas authorize the City Manager to Assign the Gas Lease to SNR Financing LLC
Description/History
The City Council authorized the execution of the gas lease agreement with Carrizo Oil & Gas for city-owned properties located at .52 acres at 526 & 528 Patterson Drive; 2.16 acres located part of S. 1st Ave and S. Main St and closed part of Alvarado Street; .22 acres at 105 Walnut Street; .26 acres at 206 S. 1st Avenue; .23 acres at 602 Elizabeth Lane; and .13 acres at 940 W. Broad Street in October 2006. The City owns the mineral rights under these pieces of property.
SNG Financing LLC has provided the necessary performance bonds to satisfy the assignment requirements.
Justification
Sage Natural Resources entered into a purchase sale agreement with SNR Financing LLC for its rights, title and interests in this gas lease and requests that the City assign those interest.
Funding Source
N/A
Prepared By
Troy Lestina, 817-276-4258