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
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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
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SOUTHERN PACIFIC TRANSPORTATION
COMPANY, a Delaware rporation,
By
IS ANT CEMERAL MANAGER, NATURAL RESOBRLES
CITY OF NEWPORT BEACH, a charter
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By G& L. D.1.�,1
City Manater
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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
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10
6
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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
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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,•
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DESC°.IPTION
co
WEST
NEWPORT SOL H� _• Y_ CMC
RIGHT -OF -WAY
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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
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WEST NEWPORT$OUTN ERN
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CONTAINING 4.934 ACRES t
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TOACCOMPA V LEGAL DESCRIPIJON
WEST NEWPORT SCCITWr;?W
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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