HomeMy WebLinkAbout03 - Ad Hoc Oil and Gas CommitteeNovember 14, 2000
CITY COUNCIL AGENDA
ITEM NO. 3
TO: Mayor and Members of the City Council
FROM: Public Works Department
SUBJECT: EXTENSTION OF AD HOC OIL AND GAS COMMITTEE
RECOMMENDATION:
Adopt Resolution No. 2000 -_ extending the tenure of the Ad Hoc Oil and Gas
Committee for two years.
DISCUSSION:
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 two years unless extended by the
City Council. The term expires this month and it is recommended that the term be
extended for two years.
Councilmembers Jan Debay and Tod Ridgeway served on this committee and support the
term extension to continue the review of the repressurization program to increase the
production and revenue from the oil and gas operations.
During the past year, several wells have undergone a cleaning and rehabilitation process.
Some increased production from the wells and the dramatic increase in the price of oil has
provided additional revenue to the Tidelands Fund (FY 98/99 - $628,000, FY 99/00-
$859,500, and FY 00 /01 first 3 months - $296,000). During the next year, the committee will
be reviewing test results, establishing priorities and making recommendations to the Council
on future improvements that may further increase production and revenue. Attached is the
committee description approved by the City Council in November 1998.
Resaec&lly
�/l1 itt ,
PU C WORKS DEPARTMENT
Don Webb, Director
By: Eldon Davidson
Davidson
Utilities Manager
Attachment: Resolution
Committee Description
RESOLUTION NO. 2000-
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 is scheduled to expire on November 10,
2000; and
WHEREAS, the City Council deems it desirable to extend the tenure of the
Advisory Committee in order to complete their deliberations and recommendations,
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
for a period of two years, with an expiration date of November 12, 2002.
ADOPTED this day of 2000
Mayor
ATTEST:
City Clerk
F:\Users\PBW\ Shared \COUNCIL\Fy2000- 01\October- 24\08 & Gas Reso.doc
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.
MEMBERSHIP: Two City Council Members appointed by the Mayor, the
Public Works Director and the Public Works Department
Utilities Division Manager.
TERM: Two years unless extended by the City Council.
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
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