2012-0391lcodadldepartmentsllegallour documentslordinances1121airport-legend natural gas 4th amendment.doc
ORDINANCE NO. 2012-039
AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO
EXECUTE ON BEHALF OF THE CITY OF DENTON WITH LEGEND NATURAL GAS IV,
LP, A FOURTH AME NDMENT TO SURFACE USE AGREEMENT FIRST EXECUTED
BETWEEN THE CITY OF DENTON, TEXAS AND ENEXCO,INC ON JANUARY 17, 2002
FOR THE PROPERTY LOCATED AT DENTON MUNICIPAL AIRPORT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, certain real property upon the Denton Municipal Airport was leased to
Enexco, Inc as Original Operator in an Airport Lease Agreement (Lease Agreement) dated
January 17, 2002 as first amended by the City of Denton on April 29, 2004 and by second
amendment dated August 30, 2004 and by third amendment dated March 28, 2006; and
WHEREAS, the City of Denton and current owner Legend Natural Gas IV, LP desire to
amend the lease agreement; and
WHEREAS, the City Council deems it in the public interest to approve this Fourth
Amendment to the Lease Agreement; NOW, THEREFORE,
THE COUNCII, OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee, is hereby authorized to execute a
Fourth Amendment to an Airport Lease Agreement between the City of Denton and Legend
Natural Gas IV, LP as current owner at the Denton Municipal Airport which is attached to and
made a part of this ordinance for all purposes and to exercise all rights and duties of the City of
Denton under the Airport Lease Agreement.
SECTION 2. This ordinance shall become effective immediately upon its passage and
approval.
5�
PASSED AND APPROVED this the �%r
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
Z
1lcodadldepartmentsllegallour documentslordinances\121airport-legend natural gas 4th amendment.doc
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
��
BY:
FOURTH AMENDMENT TO SURFACE USE AGREEMENT -
CITY OF DENTON AIRPORT
WHEREAS, on January 17th, 2002, ENEXCO, INC. (hereinafter, "Ori�inal Operator")
and the CITY OF DENTON, TEXAS, a home rule municipal corporation, acting by and through
its duly authorized City Manager (hereinafter, "C�") entered into that certain Surface Use
Agreement ("SUA"), governing Operator's use of the surface of certain lands described therein; and
WHEREAS, on Apri129th, 2004, DAN A. HUGHES COMPANY, as successor to Original
Operator named above, and City entered into an Amendment to the above-referenced SUA
(hereinafter, "lst Amendment"); and
WHEREAS, on August 30th, 2004, DAN A. HUGHES COMPANY, as successor to
Original Operator named above, and City entered into an Amendment to the above-referenced SUA
(hereinafter, "2"a Amendment"); and
WHEREAS, on March 28tli, 2006, STROUD ENERGY, LTD. (as successor to Original
Operator and to the rights of Dan A. Hughes Company) and City entered into an Amendment to the
above-referenced SUA (hereinafter, "3rd Amendment"); and
WHEREAS, Stroud Energy, Ltd. was subsequently merged into Range Texas Production,
LLC; and
WHEREAS, on February lst, 2411, RANGE TEXAS PRODUCTION, LLC assigned the
entirety of its right, title, and interest in and to, among other properties, all properties and lands
subject to said SUA and the above-referenced lst Amendment, 2°d Amendment, and 3ra Amendment
thereto to LEGEND NATURAL GAS IV, LP, said Assignment recorded as Document Number
47434 in the Official Public Records of Denton County, Texas; and
WHEREAS, as of the date of this Fourth Amendment to Surface Use Agreement — City of
Denton Airport (hereinafter, "4th Amendment") to the above-referenced SUA, LEGEND
NATURAL GAS IV, LP, (hereinafter, "Current Operator") holds the leasehold and other rights
in and to certain properties more fully described in Oil and Gas Lease by and between The City of
Denton, Texas, as Lessor, and Enexco, Inc., as Original Lessee therein, recorded in Volume 5010,
Page 858 Official Public Records of Denton County, Texas, and has the right to malce and enter into
this 4�' Amendment with the City; and
WHEREAS, Current Operator and City desire to enter into this 4th Amendment to the SUA
referenced above regarding Operator's use of the Lands for its proposed oil and gas operations
thereon in connection with Current Operator's gas well operations on the property described in the
original SUA, the lst Amendment, 2"d Amendment, and 3rd Amendment. The Terms of this 4th
Amendment supersede any conflicting terms of said SUA, lst Amendment, 2"d Amendment, and/or
3rd Amendment and shall be deemed to govern in the event of any conflict of terms.
FOURTH AMENDMENT TO SURFACE USE AGREEMENT - CITY OF DENTON AIl2PORT Page 1 of 9
NOW, THEREFORE, in consideration of the promises and covenants set forth below,
Current Operator and City agree to amend the SUA to add these additional provisions and
amendments as follows:
1. A fourth pad site was constructed on the City of Denton Airport property with a
square footage of 90,822.6 square feet and total acreage of 2.085 acres. A one-time
payment at the rate of $0.06134 per square foot will be paid annually based on the
effective date of this Amendment to the Agreement which is the 13th day of
February, 2012.
2. All four (4) pad site locations on City of Denton Airport property have changed size
since initial construction. As such, annual payments sha11 be recalculated to reflect
current square footage in use and new payment amounts shall be billed on the first
annual billing date currently identified for each pad site following final approval of
this Fourth Amendment. Square footage for individual pad sites as prepared by
Sempco Surveying, Inc. is as follows:
2.1. City of Denton Airport 1H Pad Site: 88,340 square feet or 2.028 acres
2.2. City of Denton Airport 2H Pad Site: 12,154 square feet or 0.279 acres
2.3. City of Denton Airport 3H Pad Site: 166,792 square feet or 3.829 acres
2.4. City of Denton Airport 4H Pad Site: 90,823 square feet or 2.085 acres
3. Current annual billing dates for each pad site are as follows:
3.1. City of Denton Airport 1H Pad Site: August 30 (origina12004)
3.2. City of Denton Airport 2H Pad Site: Apri129 (origina12004)
3.3. City of Denton Airport 3H Pad Site: March 15 (origina12006)
3.4. City of Denton Airport 4H Pad Site: February 21 (origina12012)
4. Plats providing current and detailed depiction of the four Pad Sites, as prepared by
Sempco Surveying, Inc., are attached as Exhibit "A" hereto and shall supersede any
and a11 prior plats as the basis of annual payment for use of the City of Denton
Airport property.
This 4�' Amendment to the above-referenced SUA shall be construed under the laws of the
State of Texas, without reference to conflict of law principles related to this agreement, including
but not limited to, any action pursuant to the provisions of the Texas Uniform Declaratory
Judgments Act (Tex, Civ. Prac. & Rem. Code § 37.001, et seq., as amended), the parties hereto
agree to waive any and a11 rights to recovery of attorneys fees to which the prevailing party might
otherwise be entitled.
This Fourth Amendment to the SUA may be executed in multiple counterparts, each of
which when taken together shall constitute but one and the same instrument, but none of which shall
be effective until and unless executed by all p�arties named herein. When fully executed as herein
provided, the terms and conditions of this 4t Amendment to the above-referenced SUA shall be
binding upon, and inure to the benefit of, the parties hereto, their heirs, successors and assigns.
FOURTH AMENDMENT TO SURFACE USE AGREEMENT - CITY OF DENTON AIlZPORT Page 2 of 9
SAVE AND EXCEPT AS AMENDED HEREBY, all the original terms and conditions of
the above-referenced SUA and all prior amendments thereto, shall remain in full force and effect.
EXECUTED by each party hereto as of the date indicated beside its signature, to be
effective for all purposes as of the Effective Date.
ATTEST:
:
' �l�2// o/�
JENNIFER ALTERS, CITY SECRETARY
APPROVED AS TO FORM:
By: -
Date: ���S��O�Z
�ANI A B GESS, CITY ATTORNEY
CITY OF DENTON, TEXAS
�
By:
Da : ���/�20/Z
GEORGE C. CAMPBELL, Ci� MANAGER
LEGEND NATURAL GAS IV, LP:
By: %Yi �i:GGC
ST HEN M. CAMP ELL, Vice President
DATE: 2�3r � z
FOURTH AMENDMENT TO SURFACE USE AGREEMENT - CITY OF DENTON AIKPORT Page 3 of 9
THE STATE OF TEXAS
COUNTY OF TARRANT
.
ACKNOWLEDGMENTS
SorU�a,�G�E Ae TiNG
BEFORE ME, the undersigned authority, on this day personally appeared `"',^"`�"-' �--
, CITY MANAGER OF THE CITY OF DENTON, TEXAS, known to me to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as
the act and deed of the City of Denton, Texas, and for the purposes and consideration therein expressed and
in the capacity therein stated, and that he was authorized to do so.
GIVEN UNDER MY AAND AND SEAL OF OFFICE on this the �� `—'� day of
February, 2012.
MY COMMISSION EXPIRES:
;;�,PY?48;, JANE E. RICHARDSON
�'" Notary Pubiic, State of Texas
=,`o. :'.,= My Commission Expires
�.�%%�°��`;:` June 27, 2013
THE STATE OF TEXAS
COUNTY OF TARRANT
N ARY PUBLIC IN AND FOR THE STATE OF TEXAS
BEFORE ME, the undersigned authority, on this day personally appeared STEPHEN M.
CAMPBELL, as Vice President of LEGEND NATURAL GAS IV, LP, known to me to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as
the act and deed of LEGEND NATURAL GAS IV, LP, and for the purposes and consideration therein
expressed and in the capacity therein stated, and that he was authorized to do so. �
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of
February, 2012.
MY COMMISSION EXPIRES:
„''����"'' JEREMIAH JOHNSdN
a�. ,�nr r��� ,�
�+° °= Notary Public, State of Texas
° � ` My Commission Expires
°��;,f�6�t���� February 24, 2015
, �
�ln�u.G.��
N�OTA Y PUBLIG�IN A FOR THE STATE OF TEXAS
\ \
FOURTH AMENDMENT TO SURFACE USE AGREEMENT - CITY OF DENTON AiRPORT Page 4 of 9
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FOURTH AMENDMENT TO SURFACE USE AGREEMENT - CITY OF DENTON AIRPORT Page 5 of 9
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