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HomeMy WebLinkAboutC-2240 - Slant Well Agreement, Condemnation of Oil Wells, West NewportTHIS AGREEMENT, dated this _21st_ day of January 1981, between SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation (hereinafter referred to as the "Com- pany"), and the CITY OF NEWPORT BEACH, a charter municipal corporation (hereinafter referred to as the "City "): A. WHEREAS, on December 1, 1947, an agreement was entered into between Pacific Electric Railway Company, a corporation, as Permittor, and Jergins Oil Company, a corporation, as Permittee (referred to herein as the "Slant Well Agreement ") , which Slant Well Agreement granted the Permittee the right to slant drill wells beneath the surface of the Permittor's real property, referred to as the "Upland Site," into nearby lands and also into tide lands beneath the Pacific Ocean and connecting waters, and which agreement was to run for the duration of and concurrently with any oil operating agreement made by the Permittee prior to November 1, 1957, embracing any lands, any part of which are within the tideland area; and B. WHEREAS, the Slant Well Agreement by its terms erseded and modified a prior agreement entered into between Pacific Electric Railway Company, as Permittor, and D.W. Elliott, as Permittee, dated January 6, 1944; and that reement was modified to read as set forth in the above- described Slant Well Agreement; and C. The only oil operating agreement entered into by the Permittee prior to November 1, 1957, embracing lands any part of which are within the tideland area is the Operating Agreement dated November 1, 1943, entered into between the City of Newport Beach, as Party of the First Part, and D. W. Elliott, as Party of the Second Part, which oil operating agreement was amended by instrument dated January 31, 1955, by and between the City of Newport Beach, as Party of the First Part, and Monterey Oil Company and Humble Oil and Refining Company, as Parties of the Second Part (refer- red to herein as the "oil operating agreement "); and D. WHEREAS, Company has succeeded to all of the rights, title and interest of the Permittor under the Slant Well Agreement; and E. WHEREAS, Armstrong Petroleum Corporation, a corporation (hereinafter referred to as "Armstrong "), has succeeded to all of the rights, title and interest of the Permittee under the Slant Well Agreement; and F. WHEREAS, the Slant Well Agreement by its terms terminates concurrently with the termination of the oil operating agreement, on January 25, 1981; and G. WHEREAS, the Slant Well Agreement provides t..dt, upon its termination, the Permittee is required to abandon and plug with cement, in a good and workmanlike manner -.11 -2- slant drilled wells beneath the "Upland Site" owned by the Permittor; and H. WHEREAS, the hereinabove described abandonment provision in the Slant Well Agreement runs to the benefit of Company, as the Permittor under the Slant Well Agree- ment. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, the receipt and adequacy of which is hereby acknowledged, it is hereby agreed by and between Company and City, as follows: 1. Company agrees, upon the termination of the oil operating agreement, to waive Company's right under the Slant Well Agreement to require Armstrong, the successor -in- interest to the rights and duties of the Permittee under such Agreement, to abandon and plug with cement any and all slant wells drilled beneath the "Upland Site" and bottomed beneath the tidelands and the Pacific Ocean. Company fur- ther agrees that, within five (5) days after the execution of this instrument, the Company shall transmit a letter to Armstrong, which letter shall notify Armstrong that Company has waived Armstrong's obligation and duty upon the termina- tion of the Slant Well Agreement to abandon and plug any and all wells slant drilled beneath the "Upland Site." 2. City hereby agrees, upon the termination of the Subsurface Pass - Through Easement, to abandon promptly any wells slant drilled beneath the "Upland Site," and in addi- tion thereto, City agrees to promptly and effectively plug with cement, in a good and workmanlike manner, the slant -3- • ! drilled wells and take such other reasonable precautionary and protective measures with reference to these wells as may, in the judgment of the Company, be necessary to prevent injury or damage to, or interference with, any wells owned and /or operated by Company or lessees or permittees of Com- pany. 3. Company and the City hereby mutually agree that it is the intent of this Agreement that Armstrong be relieved of any and all responsibility and obligation to abandon and plus any and all wells slant drilled beneath the "Upland Site" upon the termination of the Slant Well Agreement on January 25, 1981, which responsibility and obligation runs to the benefit of Company, and that City shall and hereby does assume and accept the obligation and responsibility to abandon and plug the above- described wells at such time that said wells are no longer capable of producing oil in paying quantities. IN WITNESS WHEREOF, the parties hereby have caused this Agreement ``t''o!!''bejjexecuted the day and year first hereinabove writ t . �� "� ClR. 2` 0� �qN ar Nawa agar /� BaaPh � /.G` Attorney for Southern k. Pacific Transportation Company i -4- SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware rporation, By IS ANT CEMERAL MANAGER, NATURAL RESOBRLES CITY OF NEWPORT BEACH, a charter mun ipal corporation, By G& L. D.1.�,1 City Manater Attest City 'Clerk N m C L � O t 8 H 1 • N 9 • z • Q CL r- ♦ ♦w -jO1 • ♦ J -� : O u y ll. •v. F-�.V T.a♦ 00 � >iZYO 1L ♦ � C • O •Z M1 C � • rt,,. d � E C d T C C N Y ' C N_ 3 y 6 L d w r O H O U a o` y d E °c ai m d c _ r v $ U v � U y d T• N N ° >s m r m E + y 00 N t�U r C m qC N 9 L � d E E E � x h Fx- O m it N 9 • z • Q CL r- ♦ ♦w -jO1 • ♦ J -� : O u y ll. •v. F-�.V T.a♦ 00 � >iZYO 1L ♦ � C • O •Z M1 C � • rt,,. /} \\ ){ \\ \{ \} \\ (\ �t �\ - #/ 7( `; }( �( \� �� �.® 3� w. �_ * ) } \ \ \ \ / # , �.� �, � . ;.. \) \\ )\ ~/ \ }} \)\ \- \ / \ / \/ }} {( } .( J�)\; ( 2§� #; } `\ /� \[` \� )<)i\ � �} \ / :{ j �; \\ � !�± ): \%� `° !;j 6\; \/\ «! ± » E4 „ \ \ \ \ / # , �.� �, � . ;.. 0 WHEN RECORDED MAIL TO: CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach, California City Clerk Deed N0. /J�� MAIL TAX STATEMENTS T0: • • a �l 92663 EXEMPT. C2 CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach, California 92663 Y �a p \01 JK /MK ,1_2/18/80 BK 3950 Fu 1 -760 RECOP DED IN CFEC- ',L t:ECORDS OF ORANGE COUNTY, CALIFORNIA 'j Past 3 P M FEB 17 1 91 Past LEE A. BRANCH, County Recorder DOCUMENTARY TRANSFER TAX $ Computed on the con- sideration or value of property conveyed. . . .Computed on the con- sideration or value less liens or encumbrances re- maining at time of sale. Signature of Declarant or Agent determining tax - - Firm Name SUBSURFACE PASS - THROUGH EASEMENT A. WHEREAS, SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation, hereinafter referred to as grantor herein, conveyed its fee simple interest in the real proper- ty described in Exhibit "A" attached hereto, and by this reference made a part hereof as though set forth at length, to the State of California, Department of Transportation, by means of a final order of condemnation, dated July 5, 1963, recorded in Book 6620, Page 419 of the Official Records of Orange County, California, reserving to itself the following rights: "The right to all oil, oil rights, min- erals, mineral rights, natural gas, natural gas rights, and other hydrocar- bons by whatsoever name known that may be below the upper 100 feet of the sub- SUBSURFACE PASS - THROUGH EASEMENT, Page 1 BK surface of the parcel of land herein - above described, together with the per- petual right of drilling, mining, ex- ploring and operating therefor and re- moving the same from said land or any other land, including the right to whip- stock or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through or across the sub- surface of the land hereinabove de- scribed, and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to re- drill, retunnel, equip, maintain, re- pair, deepen and operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface of said upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that may be constructed on said lands;" and 32-50pu WHEREAS, THE State of California, Department of Trans- portation, has assigned all of its rights in such real prop- erty to the City of Newport Beach, a municipal corporation, hereinafter referred to as Grantee herein, by instrument dated May 30, 1980, recorded in Book 13661, Page 582, of the Official Records of Orange County, California; and WHEREAS, Grantor desires, for valuable consideration, to grant nonexclusive easements and rights of way for slant - well drilling to Grantee within the areas wherever Grantor reserved the right to control slant -well drilling as de- scribed in the above mentioned conveyance to the State of California Department of Transportation. NOW, THEREFORE, FOR THE SUM OF ONE THOUSAND DOLLARS ($1,000.00), the receipt of which is hereby acknowledged, and other valuable consideration, :.s set forth herein, SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation (Grantor herein), hereby GRANTS and conveys to the C c:> of Newport Beach, a municipal corporation (Grantee herEJ.r), and its successors SUBSURFACE PASS - THROUGH EASEMENT, Page 2 1 7G 1 73 BK 1 �50PU 1 70 and assigns, a nonexclusive easement and right of way to drill, test, complete, equip, maintain, repair, clear, re- drill, deepen, operate, produce, dismantle (remove casing and other equipment from), plug and abandon through the subsurface of that certain real property hereinafter de- scribed in which Grantor has reserved the right to control subsurface pass- through easements ( "Grantor's real property" herein) at a depth not less than Four Hundred (400) feet measured vertically below the surface thereof, a well or wells for the purpose of exploring for and /or producing oil, gas and /or other hydrocarbon substances; the easement and right of way granted herein shall lie under those certain parcels of real property described as Parcels SP -1 and SP -2, situated in the City of Newport Beach, County of Orange, State of California, and more particularly described in Ex- hibit "A" to this Deed. A plat showing the area affected by such easement is attached hereto as Exhibit "B." The rights granted herein to Grantee are for the pur- pose of drilling for, producing, extracting, taking and re- moving oil, gas and other hydrocarbon substances by means of slant holes or wells drilled through and beneath the lands described in Exhibit "A" into any adjacent lands and also into tide waters beneath the Pacific Ocean and connecting waters; provided, however, that the provisions of this in- strument shall not entitle the Grantee, in any of its opera- tions hereunder, to use any part of the Grantor's real prop- erty between the surface of the lands described in Exhibit "A" attached hereto and the depth above - specified, or to bottom any well within the boundaries of the Grantor's real property. In this regard, this grant is made on condition that, and Grantor hereby reserves for itself, the right and the right to permit others, to drill through Grantor's real property; provided, however, that neither the rights set forth above in this paragraph nor any operations carried on thereunder shall interfere with the right of Grantee to drill, test, complete, equip, maintain, repair, clear, re- drill, deepen, operate, produce, dismantle (remove casing and other equipment from), plug and abandon under and through the subsurface of Grantor's real property a well or wells which may be or are bottomed outside of the boundaries described in Exhibit "A" hereto. This grant is further made on the condition that Gran- tee, in its drilling and production operations, shall use and install materials of good quality and condition, dili- gently pursue maximum oil production to the extent permitted by law, and all wells shall be drilled and maintained by Grantee in the best workmanlike manner and in accordance SUBSURFACE PASS - THROUGH EASEMENT, Page 3 0 BK #� 5 0 PG 17 6� with good oil field practice, and all water sands encoun- tered therein shall be, effectively and in a proper manner, plugged off; all drilling and other operations of Grantee hereunder shall at all times be conducted in a good and workmanlike manner and so as to prevent and avoid danger of any injury or damage therefrom to the property of Grantor; and Grantee shall take all reasonably necessary precautions to prevent the discharge or escape of mud, oil, debris or other matter onto the beach or adjoining property or into the waters of the Pacific Ocean. Grantor further makes this grant on condition that Grantee shall protect, indemnify, and hold Grantor harm- less from and against any and all claims for loss, damage and injury to others and shall pay any loss, damage, in- jury or expense which Grantor may suffer or incur, arising out of or in any way connected with the existence or opera- tion of any wells drilled by Grantee, or any operation or activity of Grantee on or in connection with any of such wells, or any contact, collision or other interference by any well drilled and /or operated by Grantee with any other well, whether of Grantor or others, in, on, or which crosses the lands described in Exhibit "A" attached hereto, or any contact, collision, or other interference by any such other well with any well drilled and /or operated by Grantee, un- less due solely to the active negligence of Grantor; pro- vided, however, that if Grantor grants the right to another Grantee to drill a well beneath the lands under which Gran- tee's rights herein lie, and such well collides with, con- tacts or interferes with existing wells of Grantee herein, that nothing herein provided is intended to prevent Grantee herein from recovering any damages it might suffer by reason of such collision, contact, or interference. If, as and when any of Grantee's slant drilled wells are abandoned, Grantee shall promptly abandon the same in accordance with the regulations of the State of California Department of Natural Resources, Division of Oil and Gas, and, in addition thereto, shall promptly and effectively plug the wells with cement, in a good and workmanlike man- ner, and take such reasonable precautionary and protective measures with reference thereto as may be necessary to pre- vent injury or danger to Grantor's property. Grantee, with reference to its operations and all wells 1;_..-:-under, shall comply with all laws of the State of California and the County of Orange and all rules and regulations of any agency of the State of California and the County of Orange having jurisdiction therein, and all laws of the u.�ited States of America, and all rules and regulations of a,; agency of the SUBSURFACE PASS - THROUGH EASEMENT, Page 4 BK.J3950Pu 1764 United States of America having jurisdiction therein, relat- ing to the drilling, maintenance and operation of oil and gas wells and the production of oil and gas therefrom. This grant is further made on the condition that Gran- tor at all reasonable times shall be entitled to inspect all operations and records pertaining thereto of Grantee hereun- der and shall have the right of access to all wells hereaf- ter drilled or operated by Grantee hereunder. Prior to the commencement of operations upon any well, Grantee will fur- nish Grantor with a statement specifying each such well by number and location of well site and trajectory. Grantee shall, on written request of Grantor, furnish copies of logs, records of well cores, electrical logs and surveys, and water entrance surveys, plans and surveys showing loca- tions and courses with respect to each and every well drilled hereafter by Grantee hereunder. Grantor further makes this grant on condition that Grantee, as compensation for the easement and right of way granted hereunder, shall pay to Grantor from the production of all oil, gas and hydrocarbon substances produced, saved and sold by means of any and all oil wells drilled and /or operated by Grantee under and through the lands described in Exhibit "A" hereto and bottomed beyond the outer boundaries described in Exhibit "A," the sum representing the market value of two percent (2%) of all oil, gas, and other hydro- carbon substances produced, saved and sold by Grantee; pro- vided, however, that Grantor shall not be entitled to any compensation based upon oil lost through evaporation, leak- age, or otherwise, or upon gas used, consumed or lost in extraction of gasoline, or upon any oil or gas used in con- nection with any well drilled or operated hereunder, or upon any gas which is used for repressuring any oil bearing for- mation in an attempt to further production from any such well or wells; nor shall Grantee be obligated hereunder to save any gas, except as there is a reasonable market and value for the same. Grantee shall be entitled to deduct from the compensa- tion hereunder the Grantor's proportionate share of any min- eral rights, severance, production or other similar tax ohich may be levied against or in connection with the pro - ?uction upon the basis of which such compensation is to be so paid, or the wells yielding such production, or the lands from which the same is produced, and the Grantor's propor- tionate share of the cost of treating and transporting for treatment any unmerchantable oil upon the basis of which ampensation is paid hereunder. For the purpose of this SUBSURFACE PASS - THROUGH EASEMENT, Page 5 W Subsurface Pass - Through Easement, "the cost of treating and transporting for treatment any unmerchantable oil" mentioned in the preceding sentence shall be deemed to be the actual cost thereof, but not to exceed ten cents ($0.10) per barrel of net oil. Grantee may commingle oil or gas produced under this Subsurface Pass - Through Easement with other oil or gas if the quantities of oil or gas produced under this Subsur- face Pass - Through Easement are metered. Grantee shall make all payments hereunder to Grantor by check payable to Grantor mailed to the address set forth below not later than the twenty -fifth (25th) day of each month with respect to all compensation which accrued during the preceding calendar month. Each payment hereunder shall be accompanied by a statement of production containing the information required as of the effective date of this in- strument by the State of California Department of Natural Resources, Division of Oil and Gas. No change in the owner- ship of land or interests covered by this Subsurface Pass - Through Easement and assignment or transfer by operation of law, or otherwise, in whole or in part of the compensation shall be binding upon Grantee until Grantee or its succes- sors and assigns have been furnished with written evidence thereof reasonably satisfactory to Grantee. Grantor hereby agrees that should it be determined that Grantor does not own the rights granted herein, Grantee's obligation to pay the consideration provided for hereunder shall terminate, and Grantee shall be entitled to recover the amounts of compensation previously paid to Grantor. Furthermore, if it should be determined that Grantor owns less than all of the rights to provide the easement right and right of way conveyed herein, Grantee shall be entitled to accept such rights as are granted herein by Grantor, and prorate the compensation accruing to Grantor accordingly. This Subsurface Pass - Through Easement shall be and be- come effective from and after the date that Grantor executes the same, or January 26, 1981, whichever is later, and shall continue for a term of 50 years. Should Grantee, its successors and assigns, at any time abandon one or more slant holes or wells under this Sut-.:.:- face Pass - Through Easement, or fail to use the same at any time for the purposes contemplated herein, for a continuous period of one year, the rights granted herein shall cease to the extent of the use so abandoned and Grantor shall at -nce have the right, in addition to but not in qualificatiot the rights otherwise reserved herein, to resume excl,:.:ive SUBSURFACE PASS - THROUGH EASEMENT, Page 6 C C C C 10 6 C1. possession of Grantor's real property or the parts thereof the use of which is so abandoned; provided, however, that Grantor shall not invoke the rights provided in this para- graph to the extent that litigation delays the commencement of oil production activities hereunder by Grantee. Grantor further understands the purpose for which this Grant is being made and Grantor, for itself, its successors and assigns, hereby waives any claim for and all damage to such Grantor's property or remaining property contiguous to the Grantor's real property interests hereby conveyed for the purposes described herein. Grantor hereby agrees to make no claims in eminent do- main against Grantee relating to Grantor's real property, including without limitation any claims for fees, costs, attorneys' fees, abandonment costs, interest, those claims which may arise out of Grantee's immediate possession of Grantor's real property and any claims pursuant to Cali- fornia Code of Civil Procedure Sections 1036, 1263.410, 1263.420, 1268.610, 1268,620 and 1268.710. Grantor also agrees and consents to the dismissal of any eminent domain action in the Superior Court wherein described land is included. This Subsurface Pass- Through Easement and each and all of its provisions shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the respective parties hereto. IN WITNESS WHEREOF, this Subsurface Pass- Through Ease- ment has been executed this 26th day of January 1981 Address of Grantor to which compensation pay- ments are to be sent: SOUTHERN PACIFIC TRANSPOR- TATION COMPANY Southern Pacific Building One Market Plaza - Room 200 San Francisco, CA 94105 SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaw re corpo tion By 4,0� " ASgJ ANT GEN RA' '.'A:L'.:,, 1!UUBAE ff,4U8CE5 By SUBSURFACE PASS- THROUGH EASEMENT, Page 7 a CJ CrJ Cn CD -o c� V a7 JAMES W. WATT �" NOTARY PU6LIC •CALIFORNIA `` - �•r_ PRINCIPAL PLACE DF BUSINESS IX Ci Y A D CC sco °F Notary Public My Cammissivn Exvires June 24, 1923 CERTIFICATE OF ACCEPTANCE Government Code Sec. 27281 This is to certify that the interest in real property conveyed by the Deed as set forth above to the CITY OF NEWPORT BEACH is hereby accepted by the undersigned officer or agent on behalf of the City Council of such City pursuant to authority conferred by an adopted resolution by the City Council dated %/�„ / 3./ Y6 , and the Grantee consents to recordation thp'reof by its duly authorized officer or agent. SIN WITNESS WHEREOF, I have hereunto set my hand this C day of '.. c2 i �j , 19 :Y /• SUBSURFACE PASS- THROUGH EASEMENT, Page 8 STATE OF CALIFORNIA ) ss. COUNTY OF co On %.r. uaay �, 19d/ before me, the undersigned, a Notary Public in and for said State, personally appeared W i,/eo 4• known to me to be the Co - , known to me to be the Cn of the Corporation that executed the within Instrument, (D known to me to be the persons who executed the within In- .0 strument on behalf of the Corporation therein named, and C) acknowledged to me that such Corporation executed the within Instrument pursuant to its by -laws or a resolution of its v board of directors. V WITNESS my hand and official seal. JAMES W. WATT �" NOTARY PU6LIC •CALIFORNIA `` - �•r_ PRINCIPAL PLACE DF BUSINESS IX Ci Y A D CC sco °F Notary Public My Cammissivn Exvires June 24, 1923 CERTIFICATE OF ACCEPTANCE Government Code Sec. 27281 This is to certify that the interest in real property conveyed by the Deed as set forth above to the CITY OF NEWPORT BEACH is hereby accepted by the undersigned officer or agent on behalf of the City Council of such City pursuant to authority conferred by an adopted resolution by the City Council dated %/�„ / 3./ Y6 , and the Grantee consents to recordation thp'reof by its duly authorized officer or agent. SIN WITNESS WHEREOF, I have hereunto set my hand this C day of '.. c2 i �j , 19 :Y /• SUBSURFACE PASS- THROUGH EASEMENT, Page 8 Beginning at the intersection of the centerline of Ocean Front (formerly Ocean AveR-,e) as sad street is shOL:-n on a ma;:) of the Seashore Colony Tract recorded in Boo:_ 7, Page 25 of Miscellaneous Maps in the Office of the Count. Recorder of said County with the northwesterlv boundary line of the City of Newport Beach, said northwesterly boundary lire being the southeasterl_.: lire of Summit Street, 30.00 feet in width, as shown on said map of the Seashore Colony Tract, said point of beginning being a point in the boundary line of the land described in the parcel entitled "E'XFIEIT A TO SUBSURFACE EASENTENT" recorded in Book 2824, Page 391 of Of:icial Records of said County; thence along said last men- tioned boundary lire North 35o57130" East 214.31 feet to the most westerly corner of said Tract No. 4400, said corner being the TRUE POINT OF BEGI.: \1 \G; thence continuing along said northwesterly boundary line North 35'57'30" East 110.00 feet to the most northerly corner of said Tract \'o. 4400; thence along the northeasterly line of said Tract No. 4400 South 54103'30" East 1519.92 feet to the northeasterly prolongation of the line dividing Lots 7 and 8 in Block G of said Seashore Colony Tract; thence along said prolongation South 35' 57130" West 100.00 feet to a point in the south:vesterly line of said Tract No. 4400; thence along said south- westerly line the follo-xing courses: North 54103'30" West 140.00 feet; thcnee South 35,57'30" West 10.00 feet; thence North 54° 03'30" West 1379.92 feet to the TRUE POINT OF BEGIN \Z \G. CONT.MMNG: 3.806 Acres, more or less. Ei:iii�iT "n,• W DESC°.IPTION co WEST NEWPORT SOL H� _• Y_ CMC RIGHT -OF -WAY 01 �9 CD That portion of Tract No. 4400 in the Ci ty of Ne,:roort Beach, County of 1 Oran_-, St---e of Cal:rorsia, as shown on a mao filed in Book 162, Paaes v 20 t..reugh 26 of P:liscellaneous Maps, in the Office of the County Recorder 6) of said OranZe County, described as follows: W Beginning at the intersection of the centerline of Ocean Front (formerly Ocean AveR-,e) as sad street is shOL:-n on a ma;:) of the Seashore Colony Tract recorded in Boo:_ 7, Page 25 of Miscellaneous Maps in the Office of the Count. Recorder of said County with the northwesterlv boundary line of the City of Newport Beach, said northwesterly boundary lire being the southeasterl_.: lire of Summit Street, 30.00 feet in width, as shown on said map of the Seashore Colony Tract, said point of beginning being a point in the boundary line of the land described in the parcel entitled "E'XFIEIT A TO SUBSURFACE EASENTENT" recorded in Book 2824, Page 391 of Of:icial Records of said County; thence along said last men- tioned boundary lire North 35o57130" East 214.31 feet to the most westerly corner of said Tract No. 4400, said corner being the TRUE POINT OF BEGI.: \1 \G; thence continuing along said northwesterly boundary line North 35'57'30" East 110.00 feet to the most northerly corner of said Tract \'o. 4400; thence along the northeasterly line of said Tract No. 4400 South 54103'30" East 1519.92 feet to the northeasterly prolongation of the line dividing Lots 7 and 8 in Block G of said Seashore Colony Tract; thence along said prolongation South 35' 57130" West 100.00 feet to a point in the south:vesterly line of said Tract No. 4400; thence along said south- westerly line the follo-xing courses: North 54103'30" West 140.00 feet; thcnee South 35,57'30" West 10.00 feet; thence North 54° 03'30" West 1379.92 feet to the TRUE POINT OF BEGIN \Z \G. CONT.MMNG: 3.806 Acres, more or less. Ei:iii�iT "n,• DESCRIPTION WEST NEW ?ORT SOU' r i i :_\ RIGHT -OF -WAY SLANT' all that certain land situated in the City of Newport Beach, County of Orange. State of California, more particularly described as follows: Beginning at the intersection of the northeasterly prolongation of the cc-\terline of 61st Street, 30 feet in width, as shown on a map of the "Ocean Frent Tract, Newport Beach" recorded in Book 4, Page 12 of \Iisceilaneous Maos in the Ofiic_ of the County Recorder of said Countv with the northeaserl•: boundary line of said "Ocean Front Tract ", said point of be ^nning being a point in the boundary line of the land described in the parcel ec;itled "E -HiBIT II TO SUBSURFACE EASE`;IE \T" recorded in Book 2527, Page 36 of Official Records of said Countv; thence along said last mentioned boundary line worth 35 007130" East 20.01 feet to a point in the south :vesterly line of Tract No. 4400 as shown on a map filed in Bcok 162, Paces 20 through 26 of 'Miscellaneous Maos in the Office a, said Countv Recorder, said point being the TRUE POINT OF BEGI- - N1NG; thence continuing along said boundary line North 35 007'35" East 100. 04 feet to the northeasterly line of saia Tract No. 4400; thence along said northeaste_rb., line South 56'30'15" East 431.58 feet to an angle point in the sou ;heriv right -of -way line of State Highway 101 -A as shown on said Tract No. 4:00; thence along said southerly right -of -way line the following courses: South 79'31 135" East 76. 71 feet to a point in a non- tangent curve concave norther.1v and having a radius of 1050. 00 feet, a radial line of said curve from said point bears North 17 °11'11" East; thence easterly along said curve 121.34 feet through a central angle of 10 °28126 "; thence tangent from said curve South 33017115" East 65. 09 feet to a point in that certain course sho .-n as "North 60'26'28" West 576.24 feet" and entitled "North Lire of Mean High Tide, recorded September ' 19, 1923, Boot; 201 -253, O. P. , Ora. Co. Sup. Court Case No. 25686" on a map filed in Book 27, Page 47 of P.ecords of Surveys in the Office of said County Recorder; thence along said course South 60 °28'23" East 442.23 feet; thence South 11 °00'23" Nest 221.75 feet to a point in the southwesterly lire of Tract No. 3313 as shown on a map filed in Boot: 162, Pages 11 through 19 of llincellancous \laps in the Office of said County Recorder; thence along said south :.esterl,r line and along the southwesterly line of said Tract No. 4 -'00 North 56'30'15" West 1200.37 feet to the TRUE PORT OF Bh- GiNNI�:G. 4.03-' Acres, more or less M W U1 O -o en v G7 4'J J1J 6Z"° sr _If7V LJ I� =J i Jt I Sd •'Sr 4 o F � �mn IoJ I Ly EXHIBIT ' 8' — SKETCH ai 1I �y v 1 N a y N im aN a N ti 6Z °° sr j JT- �--- 1JJ C� 1 /i TO ACCOMPANY LEGAL DESCRIPTION WEST NEWPORT$OUTN ERN PACIFIC RIGHT -OF -WAY SLANT WELL AGREEMENT VD"� S.P. -1 1 CONTAINING 4.934 ACRES t Vi1E ASE FIL7 DECEMBER ¢,1780 1. �20O' \ E y> 0 u J � I1Z JO N_O N N 91�ibert `Dcig5i4^Dlam°FiBS.1;8, ;�`Associares bUUa "A'.O ZO55Z r i J col Q! IT 5I CT. C) 21431 SOMORA Sr. F SOWORA Sr LJ Lj A 1, W coy �I� i Lam.'. — Lu �0671A=P� N F-1 F-1 V I o L,-'-J LJ AEgM Sr Fzwv gr,; Jt - ORANGE EXHIBIT 'B*-SKETC. TOACCOMPA V LEGAL DESCRIPIJON WEST NEWPORT SCCITWr;?W �Rj CBCIIZ William%osr &C,9ssociatcs PACIFIC RIGHT -OF -WAY SLANT WELL AGRermr=I -fi- CONTAINING 3.806 ACRES DE-CEive-ER 4. 1980 1 -200 0552 RESOLUTION NO. 9940 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN PROPERTIES AND DECLARING THE PUBLIC NECESSITY THEREFOR ,HEREAS, the City of Newport Beach is authorized by virtue of the statutes of the State of California to take properties by condemnation and to hold, use and enjoy these properties as necessary to the full exercise of its power; and WHEREAS, the City of Newport Beach is authorized by virtue of Code of Civil Procedure Sections 1240.010, 1240.050, 1240.110, 1240.120, 1240.125, 1240.320, 1240.330, 1240.350, 1240.410, 1240.420, 1240.510 and 1240.610 and Government Code Sections 40404, 37350, 37350.5, 39792 and 54341 to take real and personal property by condemnation for oil drilling, pumping, pass- through, storage and production purposes; and WHEREAS, all persons whose names and addresses appear on the last equalized assessment roll for the properties descr.bed herein were given notice and an opportunity to be heard pursuant to Code of Civi Procedure Section 1240.235; and W=_REAS, a public hearing was held by the City Council of the City of Newport Beach on December 22, 1980, at which the matters set forth in Code of Civil Procedure Section 1240.030 were discussed, including the following matters: (a) Whether the public interest and necessity require the project; (b) Whether the project is planned and located in the manner that will be most compatible with the • 0 rl greatest public good and the least private injury; and (c) Whether the properties sought to be acquired (which are described herein) are necessary for the project, NOW, THEREFORE, the City Council of the City of Newport Beach does hereby resolve and find as follows: erection 1. That the City Council, pursuant to Governme -:t Code Sections 40404, 37350, 37350.5, 39792 and 54341 and Code of Civil Procedure Sections 1240.010, 1240.050, 1240.110, 1240.120, 1240.125, 1240.320, 1240.330, 1240.350, 1240.410, 1240.420, 1240.510 and 1240.610 is empowered to condemn any real and personal property necessary to fulfill and carry out the duties of the City. The City Council finds that the acquisi- tion of the herein described properties is necessary to carry out the duties of the City by drilling for, pumping, producing, storing and transporting oil from the City -owned submerged tideland areas adjacent to the City of Newport Beach, which submerged tidelands were conveyed in trust to the City by the State of California pursuant to Chapter 74 of the Statutes of 1978. Section 2. That the City Council of the City of Newport Beach hereby finds and determines that the public interest and necessity require for public use the acquisition of the proper- ties herein described. The City Council further finds that the public interest and necessity require the proposed project which consists of the acquisition, construction, operation and main- tenance by the city, of certain public improvements, to wit: slant - drilled wells, pumping units, tanks, drill sites, oil 2 t transmission pipelines, and casings for the production of oil and gas from the City's submerged tidelands trust areas. Section 3. That the properties described herein are located partly within the City of Newport Beach and partly within the unincorporated area of the County of Orange and are necessary for t ~:e proposed project, that the public interest requires the proposed project, and that the project is located in a manner most ccanpatible with the greatest public good and the least private injury. A description of the general location and extent of the or ooerties to be taken with sufficient details for reaSoneble identification, together with the specific description of each parcel, are set forth in Exhibit "A" attached hereto and by this reference incorporated herein as though set foth at length. Section 4. That the interests to be acquired in the real property are described in the description of each parcel set forth in Exhibit "A." Section 5. In the event negotiations for the purchase of the properties described in Exhibit "A" are unsuccessful, the law firm. of Rutan & Tucker and /or Homer L. McCormick, Jr., Attorn °_y at Law, special counsel for the City of Newport Beach, and /or 'nigh R. Coffin, City Attorney for the City of Newport Beach, are hereby directed to bring action in the Superior Court of the State of California in the name of the City of Newport Beach, to condemn, by eminent domain proceedings, these proper- ties. These attorneys are authorized and, upon instruction by the Citv Council, shall make an application to the above - entitled court for an order fixing the amount of security by way of money deposits as the court may direct and for an order permitting the 3 City to take immediate possession and use of the herein described real and personal properties for the uses and purposes described herein. Sec *_ion 6. The law firm of Rutan & Tucker and /or Homer L. McCo_mii'ck, Jr., Attorney at Law, and /or Hugh R. Coffin, the City Attcr:zey for the City of Newport Beach, are hereby empowered to incur, in the name of the City of Newport Beach, all expenses and obligations incidental to the purposes of bringing and litigati-_ Such action. ADOPTED this 22nd day of December, 1980. ATTEST: City Clerk Mayor 4 HRC /kv 122280 C U %ptnP ROLL CALL OTY OF NEWPORT AACH REGULAR COUNCIL MEETING PLACE: Council Chambers TIME: 7:30 P.M. DATE: December 22, 1980 MINUTES INDEX Present x x x x x x x A. ROLL CALL. Motion x B. The reading of the Minutes of the Regular Meeting All Ayes of December 8, 1980 was waived, and the Minutes were approved as written and ordered filed. Motion x C. The reading in full of all ordinances and resolu- All Ayes tions under consideration was waived, and the City Clerk was directed to read by titles only. D. HEARINGS: 1. Mayor Heather opened the public hearing on the Prop /Cndm Condemnation of Oil Production Property - West (73) Newport Oil Wells (Phase II). Letters were presented from Robert A. Armstrong, President, Armstrong Petroleum Corporation and John Haskell, Vice President, Beeco, Ltd., request- ing to address the Council on this issue. A letter was presented after the printing of the agenda from C. W. Cline, Mobile Oil Corporation, also requesting to address the Council. A report was presented by Joseph Devlin, Utilities Director, wherein it was noted that the public use for which the property is to be taken is that of nonexclusive easements and personal property for oil production purposes. The location of parcels involved, as shown in Exhibit "A," are: "A, B, C, D, E and H." Parcel "AB -1," is personal property. The adoption of the resolution will be followed by the filing of an eminent domain (condemnation) action in Orange County Superior Court. An order of prejudgment possession giving the City the right to take possession of the property to be condemned will be sought. The orders for possession could become effective on January 25, 1981. The action before the Council is a finding of necessity for the lands and personal property located within and without the City limits. To make this finding, the Council must declare that it has found and determined each of the following: 1) that the public interest and necessity require the proposed project; 2) that the proposed project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; and 3) that the property described in the resolu- tion is necessary for the proposed pro- ject. Volume 34 - Page 301 Ctrl( OF NEWPORT BE *H C UNCIL MINUTES ti yy 9�� ROLL CALL SiP P December 22, 1980 INDEX Pursuant to the provisions of Council Policy K -3, the Environmental Affairs Committee has evaluated the proposed project and determined thatthe proposed project will not have a significant effect on the environment. Joe Devlin pointed out that the personal property had been appraised and sufficient funds have been appropriated to acquire them. Richard Del Guercio, Attorney representing Armstrong Petroleum, advised that he did not believe the City had the power or authority to acquire private prop- erty for the purpose of producing crude oil, and therefore, his client will contest the eminent domain proceedings under which said property is being acquired. Wayne Miller, representing Mobil Oil Corporation, Santa Fe Springs District Office, read a prepared statement in opposition to the proposed resolution and any attempt by the City to take immediate pos- session of the subject property. Bill Banning, President of Beeco, Ltd., stated that he was not opposed to the condemnation proceedings as they perceive the project, but he was opposed to any annexation of parcels outside the City limit. Margot Skilling addressed the Council in support of the proposal, stating that as the result of offshore drilling, the amount of tar has been greatly reduced Mayor Heather closed the public hearing. Motion x Resolution No. 9940 was adopted, authorizing and R -9940 Ayes x x x x directing the condemnation of certain properties and Noes x declaring the public necessity therefor; and accept - Abstain x ing the Environmental Documents. 2. Mayor Heather opened the continued public hearing LCP /Land Use regarding the proposed Local Coastal Program La (68) Use Plan and Development Policies initiated b the City of Newport Beach for the Coastal Z e. • report was presented from the Planni Department. • report was presented from the T' eland Affairs Committee. A list of people for and a nst the University Drive Extension was pres ted; signed affidavits are on file in the Cit Clerk's office. A letter was pres ted from De Anza Corporation. Volume 34 - Page 302