From
Megan Mahan, City Attorney
Title
Authorize GHA Barnett, LLC Oil and Gas Lease Fourth Amendment for approximately 14.9044 acres of City land (Good Link Linear Park- Highway 161 and Lower Tarrant Road)
Presenter
Megan Mahan, City Attorney
Recommended Action
Approve
Analysis
GHA Barnett, LLC (GHA) has a mineral lease with the City of Grand Prairie for approximately 350 acres of City land in an area of town north of Interstate 30 and west of Belt Line Road. GHA has other extensive mineral lease holdings in the area. Through their title work process, GHA discovered an additional 14.9044 acres of City owned land and they would like to amend the city's current lease terms and add to the acreage to the unit. A map is attached.
The general terms of the lease are:
1. 25% royalty
2. 30 month lease term
3. Access to all gas sales records and other accounting information pertaining to the sale of gas from City property.
Financial Consideration
The estimate of bonus proceeds from the lease is approximately $82,400 and will be deposited into the Capital Lending and Reserve Fund.