HomeMy WebLinkAboutF-2g - Oil Well Abandonment in Balboa Boulevard( - 7-�) / (Y 1)
August 12, 1985
TO: CITY COUNCIL
FROM: Public Works Department
CITY COUNCIL AGENDA
ITEM NO. F-2(g)
B.A. NO. 013
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
SUBJECT: OIL.WELL ABANDONMENT IN BALBOA BOULEVARD AUG 12 iF9,85
RECOMMENDATIONS:
1. Adopt a resolution authorizing abandonment of the oil well at
Balboa Boulevard and 44th Street, declaring an emergency, and
waiving formal bid procedures.
2. Adopt a budget amendment appropriating $200,000 to Account
No. 23-5497-018 (Oil Well Improvements) to fund the abandonment
and related costs, including cleanup.
DISCUSSION:
On Friday, August 2, 1985, gas and oil erupted from an old abandoned
oil well located in the Balboa Boulevard right of way at 44th Street. The gas
was ignited by an unknown cause, resulting in property damage, injury, and
extensive fire fighting and cleanup costs. This well was drilled in the 1920's,
and abandoned by the original owners in the 1930's. The original abandonment
was not performed in accordance with present day standards.
In order to complete abandonment of the well to California Division of
Oil and Gas requirements, and alleviate a potentially hazardous situation, it is
recommended that a resolution be adopted to allow the work to proceed without
the formal bid procedures specified in Section 1110 of the City Charter.
Adherence to the formal bid procedures would add at least one and a half months
to the process.
The estimated cost of abandonment is in the range of
$120,000. Cleanup, repair, and other costs related to the fire
compiled, but are estimated to be at least $130,000. A budget
been prepared for Council consideration appropriating $200,000
this time. Additional funds may be needed at a later date when
is known.
Benjamin B. Nolan
Public Works Director
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RESOLUTION NO. 85-59
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
AUTHORIZING ABANDONMENT OF THE OIL WELL AT BALBOA BOULEVARD
AND 44TH STREET, DECLARING AN EMERGENCY, AND WAIVING FORMAL
BID PROCEDURES
WHEREAS, Section 1110 of the Charter of the City of Newport Beach pro-
vides for the letting of contracts without advertising for bids if deemed of
urgent necessity for the preservation of life, health, and property; and
WHEREAS, gas and oil erupted from an inactive oil well located at
Balboa Boulevard and 44th Street resulting in fire, injury, and property damage;
and
WHEREAS, abandonment of the well in accordance with current require-
ments of the State of California Division of Oil and Gas is deemed necessary for
the preservation of life, health and property; and
WHEREAS, it is important that said abandonment in accordance with
current requirements proceed as rapidly as possible;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Newport Beach determines that said well abandonment shall proceed without adver-
tising for bids as provided for in Section 1110 of the City Charter; and the
City Manager and City staff are authorized to make the necessary arrangements
for completing the abandonment, and all related work and cleanup.
ADOPTED this 12th day of August , 1985.
ATTEST:
ayor
City Clerk