HomeMy WebLinkAboutC-1134 - Oil well consultants1
,pril 2S, 1967
Air. Leslie L. Lac!
Shepard- Pendleton, Ltd.
1180 Fast Warilow at Orange
Long Beach, California
Dear ',r. Lack:
in accordance with our telephone conversation of April 24th, this is to
confirm the new consulting arrangement for our wells in the City of A ?eyport
Peach. Ieretofore, you have been making monthly inspections and reports
which have proven. (suite useful to our efforts of trrir ntying accur ;ate re-
porting of oil production. As the gross revenues derived from royalties
to the City for these wells has declined in recent years from in excess of
$70,000 per year to something less than $35,000 per year at the present
time, and since we are well aware of the continued decline in production
from these wells and the resultant decline in royalties that will he due
the City in future years, it becomes increGsigly difficult to justify the
$5,652 consulting fee for your inspection services and accompanying reports,
on the basis of our agTeOlOnt at 1471 per month.
As you have indicated that quarterly inspections at �,A.71 per cp=ter would
be an acceptable approach to this matter, our already having a good indi-
cation of the trend in production frolic these ;cells, and Irmo wing that it will
be easier to justify the retention of your services on this basis, please
commence quarterly rather than. monthly :inspections as of July 1, 1967 the
beginning of our 1967 -68 fiscal budgeting period. Please let us know if
this new procedure presents any proble°s to your inspection and reporting
process and whether any changes in this approach would be appropriate. We
loot: forward to receiving the inspection reports from you on the new quar-
terly program.
Sincerely,
JAMES P. DE CIAINE
Mmini strative se -i ;�,t to the
City A "anaf�er
JPD /mjc
cc: Finance Director George Pappas