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File #: 13-0578    Version: 1 Name: Consider Approval of a Gas Lease Agreement Between the Mansfield Park Facilities Development Corporation (MPFDC) and Chesapeake Exploration, LLC for the Property Located at 1650 Matlock Road
Type: Consideration Item Status: New Business
File created: 6/13/2013 In control: Mansfield Park Facilities Development Corporation
On agenda: 6/20/2013 Final action: 6/20/2013
Title: Consider Approval of a Gas Lease Agreement Between the Mansfield Park Facilities Development Corporation (MPFDC) and Chesapeake Exploration, LLC for the Property Located at 1650 Matlock Road
Title
Consider Approval of a Gas Lease Agreement Between the Mansfield Park Facilities Development Corporation (MPFDC) and Chesapeake Exploration, LLC for the Property Located at 1650 Matlock Road
 
Requested Action
Consider Mineral Lease Agreement
 
Recommendation
Approve Mineral Lease Agreement
 
Description/History
The MPFDC own the approximately 73 acres of property that Chesapeake wants to lease. The drill site is located along 360, south of Broad Street and no drilling activity will be allowed on the property.
 
Justification
This lease has been approved by legal.  Chesapeake is offering a one year primary term with a $5,000/acre bonus and a 25% royalty amount.  This offer exceeds the initial bid requirements that were approved by City Council in December 2005.  
 
Funding Source
N/A
 
Prepared By
Shelly Lanners, Director, Community Services
817-276-4265