Title
Resolution - A Resolution to Consider a Request by Atlas Resource Partners, L.P. to Assign that Certain Gas Lease By and Between Atlas Resource Partners, L.P. and the City of Mansfield to Sage Natural Resources, LLC for Approximately 38.39 Acres of City-owned Property Located in Thomas J. Hanks Survey, Abstract 644, Tarrant County, Texas
Requested Action
Consider request by Atlas Resource Partners, L.P. to assign gas lease to Sage Natural Resources, LLC
Recommendation
Approve request
Description/History
The City Council approved by resolution in October 2006 to lease minerals to Carrizo Oil & Gas, Inc. on City-owned property located at: 799 W. Broad Street, 940 W. Broad Street, 602 Elizabeth Lane, 103 S. First Avenue, 206 S. First Avenue, 740 W. Kimball Street, 526 Patterson Drive, 528 Patterson Drive, and 105 Walnut Street. The lease requires the Lessee (originally Carrizo) to receive consent from the Lessor (the City) if the Lessee intends to assign any of its mineral interests.
Carrizo previously notified the City and received approval to assign their mineral interest in the properties referenced above to Atlas Resource Partners, L.P. in April of 2012.
Atlas Resource Partners, L.P. has now notified the City by letter that Atlas Resource Partners, L.P. desires to assign its mineral interest in the properties referenced above to Sage Natural Resources, LLC.
Justification
As required by lease, Atlas Resource Partners, L.P. is requesting consent to assign its interest in the lease to Sage Natural Resources, LLC and that such consent not be unreasonably withheld.
Funding Source
N/A
Prepared By
Shelly Lanners, Deputy City Manager
817-276-4265