HomeMy WebLinkAbout18 - Emergency Repair of Oil Production Well Number 4CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 18
July 22, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
Steve Myrter, Utilities Director
949 - 718 -'3400 or smyrterd&citv.newport- beach.ca.us
SUBJECT: EMERGENCY REPAIR OF OIL PRODUCTION WELL
NUMBER 4
RECOMMENDATION:
Approve the emergency expenditure of $33,969.33 from the Tidelands Fund required to
repair Oil Production Well Number 4.
BACKGROUND:
Discussion:
Oil Production Well Number 4 became inoperable on Thursday, May 15, 2008. At the
time it had appeared the actual pump unit located at the bottom of this 3,300- foot -deep
well had failed and was in need of replacement. On this same day, Oil Well Services
Company (Contractor), the City's on -call emergency well repair contractor, was
authorized to proceed with well repairs on an emergency basis in order to minimize
downtime and loss of revenue from this production well. The initial repair estimate was
approximately $25,000. The Contractor mobilized to the City's oil Feld on Monday, May
19, 2008 to initiate repairs. After the well was disassembled and inspected, the
Contractor determined that the bottom of the well had filled with sediments and fines
which blocked operation of the pump unit and reduced overall efficiency of the well's oil
production capability.
The Contractor was able to successfully remove the sediments from the well and place
it back into production by May 28, 2008. Since this time, recent tests show oil
production from this well has doubled from four barrels per day prior to the emergency
repair to approximately eight barrels per day. The total cost for these repairs as
summarized on the attached final invoice dated July 8, 2008, is $33,969.29. This final
repair cost exceeded the initial repair estimates due to unforeseen conditions regarding
the amount and difficulty of removing the sediments from the bottom of this 3300 -foot-
deep well. The City Manager authorized these emergency expenditures, and the scope
Emergency Oil Production Well No. 4 Repair
July 22, 2008
Page 2
of services that were provided by the Contractor is attached for Council review in
accordance with Council Policy F -14, Section E - Emergency Contracts for Services.
Environmental Review:
There is no environmental impact.
Funding Availability:
This emergency repair work will be funded through unappropriated Tideland Funds
Submitted by:
E Motor
Attachments: Scope of Services provided by Oil Well Service Company
h� �'' T�
OIL WELL SERVICE CO.
INVOICE
'
Ou.WFLL SFmTC CO. 1241 E. BURNETT ST.
j
SIGNAL HILL CA 90755
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562 - 595 -4501 Fax: 562- 424 802E
vad
-Mail: matt@owsl.com
;,s Page 1
OIL WELL SERVICE IS AN EMPLOYEE OWNED COMPA r
Sold To:
CITY OF NEWPORT BEACH
Our
8- -
ATTN: UTIL. DEPT
1#
-
949 W. 16HT STREET.
Svc Rpt# 55001 -55007
AGREEMENT # AG14279
NEWPORT BEACH CA 92653
Your customer code is CIT589
_.Date
- Order No. _
Terms.
Inv No.
05/31/08
0308 1
n/30
00011068
Description
Rig#
Amount
RIG
R038
63.5 Hrs 0 155.00
$9842.50
FUEL
R038
63.5 Hrs 0 15.54
$986.79
POWER SWIVEL
R038
1.0 DAY 900.00
$900.00
3-MAN CREW
R038
69.5 Hrs 0 320.00
$22240.00
Subtotal:
33969.29
Non"'Toxalso
Taxable.
-. Salas';7'aX
`' Freighi
Misc
..
' Invoice Total
33969.29
.00
.00
.00
.00
33969.29
t to