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HomeMy WebLinkAbout05 - Proclaiming the Termination of the Local Emergency Declared on October 22, 2025Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report January 13, 2026 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, City Manager - 949-644-3001, sjurjis@newportbeachca.gov PREPARED BY: Mark Vukojevic, Utilities Director — 949-644-3011, mvukojevic@newportbeachca.gov TITLE: Resolution No. 2026-2: Proclaiming the Termination of the Local Emergency Declared on October 22, 2025 ABSTRACT: The City of Newport Beach director of emergency services declared a local emergency on October 22, 2025, following the detection of methane gas and crude oil at 3606 Marcus Avenue on the Balboa Peninsula. The methane and crude oil were believed to be related to a historic "orphan" oil well located beneath 3606 and/or 3602 Marcus Avenue. The City Council ratified the Proclamation of Local Emergency on October 28, 2025, by adopting Resolution No. 2025-75. The Council reviewed and continued the local emergency on December 9, 2025. In coordination with the State of California's Geologic Energy Management Division (CaIGEM), which obtained emergency funding and approvals, the City supported an expedited effort to drill an intercept well at Marcus Avenue and 36th Street, and to re -plug the orphan well approximately 800 feet below ground surface. Although the City does not own the well, staff from the Police, Fire, Public Works and Utilities Departments actively coordinated with CaIGEM and its contractor to address immediate public safety and environmental risks. CaIGEM has completed its emergency work operations, the orphan oil well has been re -plugged, and the flow of oil and gas to the surface has ceased. It is now appropriate to terminate the local emergency. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2026-2, A Resolution of the City Council of Newport Beach, California, Proclaiming the Termination of the Local Emergency Declared on October 22, 2025, Related to the Seepage of Methane Gas and Oil Intrusion Into a Residential Structure Located At 3606 Marcus Ave. Resolution No. 2026-2: Proclaiming the Termination of the Local Emergency Declared on October 22, 2025 January 13, 2026 Page 2 DISCUSSION: On October 22, 2025, the City's director of emergency services declared a local emergency after a significant amount of methane seepage and crude oil intrusion were detected at a residential property located at 3606 at Marcus Avenue. The oil and methane were believed to be from an abandoned private oil well. On October 28, 2025, the City Council ratified the Proclamation of Local Emergency by adopting Resolution No. 2025- 75. On December 9, 2025, the Council continued the local emergency. At the beginning, City staff and State representatives believed that a historic oil well located under 3606 and/or 3602 Marcus Avenue may have been leaking. The well was plugged in 1929 in accordance with the standards of that era and has no known responsible owner. It is therefore considered an orphan oil well. City staff secured an emergency response from CaIGEM, which has regulatory oversight of all oil and natural gas wells in the state and administers several programs, including an orphan well abandonment program. Due to the active leakage and the associated threat to public safety and the environment, CaIGEM responded and obtained funding and approvals to attempt to re -plug the orphan well. The City does not own the well and responsibility for the well rests with the current private property owners. However, in the interest of public health and safety, the City took an active role in coordinating the response and communicating with area residents. The planned work required removal of on -street parking, limited or no access to many garages, restricted pedestrian access, and continuous construction and equipment noise on a 24-hour basis. CaIGEM engaged an emergency oil drilling contractor and City staff from the Police, Fire, Public Works and Utilities Departments worked closely with CaIGEM to expedite the emergency well re -plugging activities. The contractor began preliminary work on November 24, 2025, with a break over the Thanksgiving weekend. Mobilization continued on December 1, 2025, and drilling and 24-hour work operations began on December 7, 2025. The plan was to drill an intercept well from the intersection of Marcus Avenue and 36th Street to locate and intercept the orphan well several hundred feet below ground. The original orphan oil well was located and intercepted. The contractor successfully re - plugged the orphan well, thus stopping the flow of oil and gas to the surface. Some difficulties were encountered during drilling requiring extra workdays and the installation of a parallel twin pipe casing 850-feet deep, which was completed on December 24, 2025. A Christmas Day work stoppage was then enacted and, moving forward, all construction operations were changed back to daytime operations, approximately 7 a.m. to 7 p.m. Using the twin pipe casing, the contractor perforated holes into the orphan oil casing and filled it with a special cement mixture. This was accomplished over several days as the cement was squeezed into several different height levels of the casing. The final cement placement into the orphan oil well occurred on January 2, 2026. Demobilization and final site cleanup occurred from January 3 to January 10, 2026. With the orphan oil well re -plugged, the surface oil and gas conditions have subsided, and the emergency has been sufficiently addressed. It is appropriate to terminate the Resolution No. 2026-2: Proclaiming the Termination of the Local Emergency Declared on October 22, 2025 January 13, 2026 Page 3 City's local emergency. The homeowners whose properties are above the orphan oil well, are working with their insurance companies and private environmental consultants for needed private property remediation. The work will be permitted and inspected by the Community Development Department's Building Division. FISCAL IMPACT: The adopted budget includes sufficient funding for City staff's expenses, materials and contractor resources used to help facilitate the emergency construction. The City's total amount has not been quantified as of the writing of this report, but is a very small portion of the overall project cost. The City's expenses will be funded from various operational and emergency accounts within the Utilities, Public Works, Police and Fire Department budgets. The State has spent several million dollars on the emergency re -capping construction efforts. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15269(c) (the activity is necessary to prevent or mitigate an emergency), 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2026-2 Attachment A RESOLUTION NO. 2026 - 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, PROCLAIMING THE TERMINATION OF THE LOCAL EMERGENCY DECLARED ON OCTOBER 22, 2025, RELATED TO THE SEEPAGE OF METHANE GAS AND OIL INTRUSION INTO A RESIDENTIAL STRUCTURE LOCATED AT 3606 MARCUS AVENUE WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, Chapter 2.20 (Emergency Services) of the Newport Beach Municipal Code ("NBMC") provides for the preparation and implementation of plans to provide services within Newport Beach in the event of an emergency, to empower certain City officials to promulgate orders and regulations necessary to provide for the protection of life and property or to preserve public order and safety, and to provide for the coordination of the emergency service functions of the City with all other public agencies and affected private persons, corporations, and organizations; WHEREAS, Section 2.20.060(A) of the NBMC empowers the Director of Emergency Services to proclaim the existence of a local emergency when conditions of disaster or extreme peril to the safety of persons or property exist within the City, and the City Council is not in session, provided that such proclamation shall be ratified by the City Council at the earliest practicable time, but in no event later than seven (7) days after issuance, or it shall have no further force or effect; WHEREAS, Section 2.20.060(C)-(E) of the NBMC further authorizes the Director of Emergency Services to control and direct the City's emergency organization, coordinate interagency response, and represent the City in dealings with public or private agencies during emergencies; WHEREAS, on October 22, 2025, the Director of Emergency Services proclaimed the existence of a local emergency due to the seepage of methane gas and oil intrusion into a residential structure located at 3606 Marcus Avenue, reportedly originating from an abandoned or old oil well, which created conditions of extreme peril to the safety of persons and property; Resolution No. 2026- Page 2 of 3 WHEREAS, on October 28, 2025, the City Council adopted Resolution No. 2025- 75, proclaiming a local emergency, and ratifying and confirming the Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services on October 22, 2025, a copy of which is attached hereto as Exhibit 1 and incorporated herein by this reference, ("Proclamation of Emergency"); WHEREAS, the City Council further adopted and affirmed all findings and determinations set forth in the Proclamation of Emergency and declared that the Proclamation of Emergency remain in full force and effect until such time as the City Council proclaims that the local emergency has been terminated in accordance with applicable law; WHEREAS, the City's Fire, Public Works and Utilities Departments, in coordination with the Orange County Health Care Agency and California Geologic Energy Management Division, undertook mitigation measures to safely vent accumulated methane gas and re -plug the orphan well, which is approximately 800 feet below ground surface; and WHEREAS, the conditions that warranted the original emergency proclamation have been abated, and no continuing public safety threat exists at this time. NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council hereby finds that the conditions that warranted the local emergency have been sufficiently addressed, and in accordance with Section 2.20.065 of the Newport Beach Municipal Code, hereby proclaims that the local emergency is terminated. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds and determines that the termination of the local emergency is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably Resolution No. 2026- Page 3 of 3 foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 13th day of January, 2026. Lauren Kleiman Mayor ATTEST: Lena Shumway City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE C ff A ron C. Harp Exhibit 1 - Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services on October 22, 2025 EXHIBIT 1 PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY BY THE DIRECTOR OF EMERGENCY SERVICES OF THE CITY OF NEWPORT BEACH OCTOEBR 22, 2025 WHEREAS, Section 2.20.060 of the Newport Beach Municipal Code empowers the Director of Emergency Services of the City of Newport Bach to proclaim the existence of a local emergency due to the existence of conditions of disaster or extreme peril to the safety of persons or property within the City of Newport Beach, if the City Council is not in session; and WHEREAS, the Emergency Services Director of the City of Newport Beach does hereby find that: 1. A hazardous condition has arisen at 3606 Marcus Avenue, Newport Beach, California 92663, involving the seepage of methane gas and oil intrusion into a residential structure, reportedly originating from an abandoned or old oil well; 2. The presence of oil and methane gas poses an immediate threat to the health, safety, and welfare of residents and the surrounding community, necessitating urgent protective measures; 3. In the interest of public safety, the evacuation of the affected residence and neighboring properties is required until the hazard can be assessed and mitigated; 4. Access to the affected area must be strictly controlled to prevent injury or interference with emergency response operations; 5. Such conditions of disaster or extreme peril are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the City of Newport Beach and require or are likely to require the combined forces of other political subdivisions and other agencies to combat; and 6. That the City Council of the City of Newport Beach is not in session. NOW, THEREFORE, BE IT PROCLAIMED that a local emergency now exists within the City of Newport Beach, PURSUANT TO THE AFORESAID PROCLAMATION, THE DIRECTOR OF EMERGENCY SERVICES OF THE CITY OF NEWPORT BEACH HEREBY PROMULGATES AND ISSUES THE FOLLOWING ORDERS AND REGULATIONS: 1. All residents and the general public shall evacuate and remain clear of the affected area, which includes the properties located at 3610, 3608, 3602, 3600 and 3600 1/2 Marcus Avenue; 312 The Rialto; and 313 36th Street, Newport Beach, California, as well as the PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY BY THE DIRECTOR OF EMERGENCY SERVICES OF THE CITY OF NEWPORT BEACH OCTOEBR 22, 2025 portions of the adjacent streets as depicted in Exhibit A, attached hereto and incorporated herein by reference (hereinafter referred to as the "Emergency Zone"). 2. No person shall enter, be within, or remain within, any building or area within the designated Emergency Zone after receiving a written or oral order to either not enter or to leave such building or area from a peace officer. 3. No person shall enter the designated Emergency Zone unless authorized by the Director of Emergency Services, the Utilities Director, the Fire Chief, or the Police Chief 4. All vehicles, except emergency response and authorized personnel vehicles, are prohibited from entering or parking on public streets within the Emergency Zone. 5. The provisions of Order Nos. 1 through 4 above shall not apply to any City of Newport Beach employee or contractor, as well as any police, fire, or emergency services personnel, while such person is engaged in providing police, fire, or other emergency services. 6. A violation of any of the above emergency orders and regulations shall be a misdemeanor punishable pursuant to Section 2.20.100 of the Newport Beach Municipal Code. 7. All peace officers are hereby authorized to enforce the above emergency orders and regulations and to arrest any person who does not obey said orders and regulations. 8. The City Attorney is authorized to seek a court order enjoining any responsible person from maintaining the public nuisance. 9. If the Director of Emergency Services determines that mitigation measures or summary abatement are necessary, City personnel/contractors and emergency personnel shall be authorized to take action to mitigate or summarily abate the public nuisance at the expense of the persons creating, causing, committing, or maintaining the public nuisance. This proclamation is in effect beginning at 6:00 p.m. on October 22, 2025, and shall continue in full force and effect until rescinded or amended, or until the local emergency is proclaimed terminated. 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