Title
Resolution - A Resolution to Assign a Certain Gas Lease Between the City of Mansfield and Chesapeake Exploration, LLC for the City-Owned Property Located at 405 Industrial Boulevard, to Saddle Barnett Resources, LLC; and Provide for an Effective Date
Requested Action
Approve resolution to allow Chesapeake to assign a mineral lease between Chesapeake Exploration, LLC and the City of Mansfield to Saddle Barnett Resources, LLC
Recommendation
Approve resolution
Description/History
City Council approved by Ordinance on July 28, 2008 to lease minerals to Chesapeake Energy on city-owned property located at 405 Industrial (Park Operations/Animal Control Facilities). The lease requires the drilling operator (Chesapeake) to receive consent from the City if the operator assigns any of the operator’s mineral interests.
Chesapeake notified the City by letter that they are conveying their interest to Saddle Barnett Resources, LLC. Chesapeake also informed the City that this assignment does not affect the terms of the lease.
Justification
This will allow the mineral lease for this property to continue with Saddle Barnett Resources, LLC.
Funding Source
N/A
Prepared By
Shelly Lanners
Deputy City Manager
shelly.lanner@mansfieldtexas.gov