HomeMy WebLinkAbout04 - Extending the Ad Hoc Oil & Gas CommitteeCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 4
January 14, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
Eldon Davidson, Utilities Director
(949) 718 -3400
edavidson@city.newport-beach.ca.us
SUBJECT: RESOLUTION EXTENDING THE AD HOC OIL AND GAS COMMITTEE
RECOMMENDATION:
Adopt Resolution No. 2003 -.
Committee.
DISCUSSION:
Background:
adopting the extension of the Ad Hoc Oil and Gas
In November 1998, the City Council established the Ad Hoc Oil and Gas Committee to
review a rehabilitation program and financial funding alternatives for the operation of the
City's oil and gas field. The term of the committee was extended by the City Council in
November 2000. The term has expired and it is recommended that the term be
extended through December 31, 2005.
During the past years, several wells have undergone a cleaning and rehabilitation
process. In addition, water flooding has been underway in the first zone. Staff has
seen some increased production from the wells and dramatic fluctuations in the price of
oil, which has provided annual revenue to the Tidelands Fund (FY 98/99 - $424,600, FY
99/00 - $900,200, FY 00/01 - $1,024,600, FY 01/02 $794,200, FY 02/03 first 6 months -
$460,000). During the next year, the committee will be reviewing the pursuit of
additional water sources and move to water flooding the next zone, pending results from
the first zone that staff has been flooding for the past year.
Extension of Oil & Gas Ad Hoc Committee
January 14, 2003
Page 2
The Committee will review future results, establishing priorities and make
recommendations to the Council on future improvements that may further increase
production and revenue. Attached is the resolution and committee description approved
by the City Council in November 1998.
Environmental Review: N/A
Public Notice: N/A
Funding Availability: N/A
Alternatives: N/A
Prepared by:
// /
C
Tim Deutsch,
Utilities Administrative Manager
Attachments: Resolution 2003 -
Committee Description
Submitted by:
r!, Eldon Davidson
Utilities Director
RESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH EXTENDING THE TENURE OF THE
AD HOC OIL AND GAS COMMITTEE
WHEREAS, the Oil and Gas Operation is a major revenue source for the Tidelands
Fund; and
WHEREAS, the City Council wishes to increase City revenue and maintain
operation of the Oil and Gas operation; and
WHEREAS, the City Council appointed an Advisory Committee to the City Council
to make recommendations on matters pertaining to the operations of the Oil and Gas
facility; and
WHEREAS, the Advisory Committee expired on November 10, 2002;
WHEREAS, the City Council deems it desirable to extend the tenure of the
Advisory Committee in order to complete their deliberations and recommendations; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport
Beach that the Oil and Gas Committee established by the Council is extended with an
expiration date of December 31, 2005.
ADOPTED this 10 day of January, 2003
Mayor
ATTEST:
ity Clerk
OIL AND GAS FIELD OPERATIONS COMMITTEE
AUTHORIZATION: The Council, by minute action of November 9, 1998,
approved the establishment of an ad hoc committee to
review the rehabilitation program and financial funding
alternatives for the operation of the City's oil and gas field.
Term extended by adoption of Resolution No. 2003 -_ on
January 14, 2003.
MEMBERSHIP: Two City Council Members appointed by the Mayor and the
Utilities Department Director.
TERM: Expires on December 31, 2005.
PURPOSE &
RESPOSIBILITIES: The revenue generated from the City's oil and gas field
operation is declining and the City needs to determine the
direction they wish to take in the future. The committee is to
investigate rehabilitation options and provide alternatives to
increase the revenue stream to the City.
Section III - Page 6
11 -15 -00