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Home My WebLink AboutC-3613 - Water Pump PurchaseV I 3198 CITY OF NEOPRT BEACH 3300 NEWPO BOULEVARD PO BOX 1768 NEWPORT BEACH, CA 92658 -8915 PURCHASING: (949)644 -3065 ACCTS. PAYABLE: (949)644 -3117 N NATIONAL OILWELL D 2875 JUNIPERO AVENUE O SIGNAL HILL, CA 90755 R L W r I. rage, No... -... I ORDER DATE: 06/24/03 (BUYER: BILL WEST, CPPB IREG. NO.: 0 IREO. DATE: TERMS: MPT 30 DAYS F.O.B.: DESTINATION DESC.: PLUNGER PUMP PKG + MOTOR 1 CS400051T. 1 C540005 AO V ,At S I I ACCEPTANCE. Acceptance of this order by seller /vendor will be by ackrowledgament or by delivery in whole or in part of the items called for hereunder. By accepting this order, the seller /vendor acknowledges that he has read and agrees to all BY terms and conditions including those printed on the reverse side of this Contract /Purchase Order. The only terms antl /lF CITY OF NEWPORT BEACH conditions that will he applicable to the interpretation of this Contract are those issued by the City of Newport Beach. IMPORTANT GENERAL TERMS AND CONDITIONS ON THE REVERSE SIDE ARE INCORPORATED HEREIN. The Articles covered by this Purchase Order or Contract must conform to applicable Cal -OSHA Standards, and/or other appropriate laws, regulations, rules, and code of Federal Government and the State of California. Show as a separate item any retail sales tax, use tax or Federal tax applicable to this Purchase. This order subject to California sales tax. All OUT-OF-STATE VENDORS: Me CfTV will pay any eales/use tax en ag purchases Shipped from out <I - state. All purchases and transportation charges are exempt from Federal excise tax. NOTE: All purchases are F.O.B. destination unless otherwise authorized. Charges for shipments are to be freight prepaid and added to the invoice (shown as a separate item) where so authorized. Do not include Federal transportation tax. A Newport Beach business license may ba required to conduct busmeas in Me City. Requestor Copy HI CITY OF NEWPORT BEACH I UTILITIES, OIL FIELDS P 949 W. 16TH STREET TO NEWPORT BEACH, CALIF. 92663 ATTN: ED BURT ORDER DATE: 06/24/03 (BUYER: BILL WEST, CPPB IREG. NO.: 0 IREO. DATE: TERMS: MPT 30 DAYS F.O.B.: DESTINATION DESC.: PLUNGER PUMP PKG + MOTOR 1 CS400051T. 1 C540005 AO V ,At S I I ACCEPTANCE. Acceptance of this order by seller /vendor will be by ackrowledgament or by delivery in whole or in part of the items called for hereunder. By accepting this order, the seller /vendor acknowledges that he has read and agrees to all BY terms and conditions including those printed on the reverse side of this Contract /Purchase Order. The only terms antl /lF CITY OF NEWPORT BEACH conditions that will he applicable to the interpretation of this Contract are those issued by the City of Newport Beach. IMPORTANT GENERAL TERMS AND CONDITIONS ON THE REVERSE SIDE ARE INCORPORATED HEREIN. The Articles covered by this Purchase Order or Contract must conform to applicable Cal -OSHA Standards, and/or other appropriate laws, regulations, rules, and code of Federal Government and the State of California. Show as a separate item any retail sales tax, use tax or Federal tax applicable to this Purchase. This order subject to California sales tax. All OUT-OF-STATE VENDORS: Me CfTV will pay any eales/use tax en ag purchases Shipped from out <I - state. All purchases and transportation charges are exempt from Federal excise tax. NOTE: All purchases are F.O.B. destination unless otherwise authorized. Charges for shipments are to be freight prepaid and added to the invoice (shown as a separate item) where so authorized. Do not include Federal transportation tax. A Newport Beach business license may ba required to conduct busmeas in Me City. Requestor Copy C . 3b13 CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. is May 13, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Utilities Department I CITY OF NEWPORT BEA Eldon Davdison, (949) 718 -3400, ed avid son @ city. newport-b ca.us SUBJECT: OIL FIELD OPERATION —WATER PUMP PURCHASE RECOMMENDATION: Authorize the purchase of one water injection pump from National Oil Well of Long Beach in the amount of $100,552.50. DISCUSSION: Background: The City currently operates 16 oil and gas wells in West Newport that produced approximately 41,515 barrels of oil last fiscal year. Production continues to decline so the City continues to pursue methods to increase production. On August 22, 2000, the Utilities Department presented a report to the City Council, regarding the status of the Oil and Gas operation. As part of this report, the Council authorized staff to pursue a rehabilitation program designed to increase the oil production through water flooding and well repairs. Under Phase 1 of the program four wells were rehabilitated with needed repairs. It was determined that the oil layers or sands would need to be pressurized by water flooding in order to increase the production of oil. Staff then worked with Renick Sampson (operator), Mel Wright (consultant) and outside contractors on the design, installation and implementation of a pilot water injection system (Phase 2). This included the installation of a water treatment system, underground pressurized pipe, electrical control system, a used 1981 water injection pump and the rehabilitation of well number three which is being used as the injection well. Over the past year, this injection pump has been running at its maximum and has been determined to be undersized. The water that is injected was previously sent to West Newport Oil, who charged the City an annual fee of approximately $100,000, to dispose through 1 Purchase of Pump — Oil Fields ' May 13, 2003 Page 2 subsurface injection. By implementing the Phase 2 improvements, the City no longer pays this annual fee. Staff has recently developed Phase 3 of the rehabilitation program. This phase requires that the City replace the existing 1,200 - barrel per day (bpd) water pump with a 5,000 bpd pump and acquire an additional source of water. As indicated above, the existing pump is currently running at its maximum capacity and has to be replaced for the water injection program to increase oil production. A request for proposal was advertised in Oiltizer, an oil operation equipment network publication, which allows operators to request proposals for equipment that are specific for the industry needs. The City received two proposals and reviewed each with contract operator Renick Sampson. The third vendor, Custom Pump & Equipment, was non - responsive with its proposal. National Oilwell of Long Beach was the lowest proposal. JW Oilfield Equipment LLC was the other company that submitted a proposal, which was $104,431.50. Implementing the waterflooding program has the potential of increasing production and extending the operational life for up to 18 years. Without the waterflooding program, the operational life of the oil will be less than five years. Once the rehabilitation program is fully implemented, the City has the potential of producing 500,000 barrels of oil over the next 18 years. At an average price of $16.50 per barrel, the oil operations could generate $8,250,000 over the 18 -year period. On April 23, 2003, Utilities staff met with the Oil & Gas Committee to discuss this issue. The Committee supported the decision to purchase the pump and requested that staff present it to the Council. Environmental Review: This project is categorically exempt from CEQA pursuant to Section 15302 of the Guidelines, replacement of existing facilities that will substantially the same purpose and capacity as the facility replaced. Funding Availability: Funds for the purchase and installation of the pump are available in the Oil Field Improvement Program budget, account 7231- C5400053. Prepared by: Submitted by: Tim Deutsch, Administrative Manager Eldon Davidson, Utilities Director Attachments: National Oilwell Proposal January 9, 2003 City of Newport Ed Burt Fax 949 - 646 -2540 National Oilwell 2875 Junipero Ave Signal Hill, CA 90755 562424 -0751 National Oilwell is pleased to offer the following quotation for your review and consideration. (1) National Oilwell 300Q -SM Quintuplex Plunger Pump Package, slid mounted, electric motor, direct drive consisting of the following: a) 300Q -SM Quintuplex Pump factory new b) Aluminum Bronze 9 -1) Fluid End (No b) Spherical Valves Tapered Seat c) 2 -5/8" Tungsten Carbide Plungers d) Spring Loaded Kevlar Packing e) Stainless Steel Stuffing Boxes fl Plunger Lubricator g) 200 HP TEFL electric motor, 3PH. 230/460 volt h) Skid and coupling guard i) Gear Reducer 5.63:1 Ratio j) 2 ea. L129CK1 oil level gage k) Falk Coupling 1100T10 1) Unit primed and painted With 2 -5/8 plungers at 300 RPM this pump will operate at 1800 PSI and 6000 BPD. Based on 100% volumetric efficiency. Price $91,000.00 ea. Plus Tax Delivery 10 -12 Weeks A.R.O. Estimated Freight from Odessa, TX $2500.00 Thank you, Doug Ortega Coll 310- 487 -2454 r t � GC n