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�I <br />RUTAN & TUCKER <br />ATTOANCTS AT LAW <br />w: RyiwN 4LR 0 -1BTtT A PARTNERSHIP ° CONH4TMGk"ROFCSS10Nwl CORP0..,.ONS <br />JAMS B. TVCF.R..SR RUD LPH LOI <br />YTI TORO W. Owwv "RUSE W01C. SHCIAPD• WELLS FAROO BANK BUILDING{ <br />4 ^.. cR HOWELL• R S. ROBERT L. 11K m• <br />JwY[8 e, TUC.... ROe[Rr L.PIX[• 401 CIVIC CENTER DRIVE WEST <br />PA... I. SXAIICNB.ROC R.' ALAN BUNION NEWMAN <br />JAMES R. MOOR.• LAWRENCE C. BCRTINO• <br />ROOCRi 1, R1(l CY• ROBCPT S. BOWER <br />1. M16.. MCC ORM IC.. WILLIAM A. 10"11. <br />X. MRwm L. ARTICORENA <br />RICHARD .CVRNVTT• LAWRENCE J. OR.Y'IVSS <br />LEONARD A AMR[L• NNE N.150N l A <br />JOHN B. HURLBUT. JR.- PATRICIA L. STEARNS <br />MICXACI w IM YCII• RCNA C. Si... <br />A. I"OR. W. OAHL. J..• WILLIAM J. CAPLAN <br />THEODORE 1 WALLACE. JR.- OARY M LAPS <br />PICHARO P. SINS' RANDALL 5. WAICR <br />MARSHALL M. PCARLMAN MICHAEL T. NOR. AN <br />ROBERT C. BRAVH' DIANE OVOI^s ..... <br />ROGER A. ORAeLL• PHILIP D. NOHN <br />CD WARD O. S Y.LSMA. JR.' JOCI O. NVPCRe CRO <br />THOMAS'S. SALINOCR• [u 2AB[TH A HLAIL <br />BARRY R IAVeSCXCR• SCOTT R. HOYT <br />DAVID C. FAR SCR' MARY 0. Y I LILCC <br />C1111ORD E. (RICO CN• KATHRYN l TOBIN <br />ARTHUR O'. K...". PHILIP C. M NARD <br />NOCXACI O. AVBIN• NCILA R. BERNSTEIN <br />MARC WINTNROP• DONNA SNOW WOLF <br />A O. RIV IN• DERRA J. OVNN- PCTLRSON <br />JEFFREY Y. OOCPYAN• CVRIOIRI NICKII DALLAS <br />POST OFFICE BOA 1010 <br />SANTA ANA. CALIFORNIA 92102 <br />TELECOPIER (1141 6158-IS66 <br />TELEPHONE (114) 835 -2200 <br />•A .�.Y.IP..1 fLwO..TY' <br />Mr. Robert C. Wynn <br />City Manager <br />City of Newport Beach <br />3300 Newport Boulevard <br />Newport Beach, CA 92663 <br />July 30, 1981 <br />L-r;� ) <br />TAX 91O 596 -1663 ' <br />CABLE ADDRESS RVTAN TUC <br />NEWPORT, BEACH OFFICE <br />610 NEWPORT CENTER DRIVE. SUIT. 900 <br />POST OFFICE 6O( 1369 <br />NEWPORT. BEACH. CALIFORNIA 92660. <br />TRCCOPICR 1114) 139 -0993 <br />TELEPHONE 4714) 139 -0833 <br />IR REPLY PICAS. RCICR TO <br />CONFIDENTIAL <br />Re Condemn of_ City :'Tideland :Di_1_;WaUs <br />Dear Mr. Wynn: <br />Pursuant to your request, this letter is intended to <br />provide a status report regarding the condemnation of the <br />City tideland oil wells. As you know, the City of Newport <br />Beach filed the condemnation action on behalf of the Joint <br />Powers Agency pursuant to the Joint Powers Agreement which <br />the City entered with the State Lands Commission. <br />FACTUAL BACKGROUND <br />Commencing in approximately 1919, the State of Cali- <br />fornia granted in trust to the City all of the real property <br />consisting of tide and submerged lands in Orange County <br />bordering upon, in and under the Pacific Ocean or Newport <br />Bay. In 1978, these grants were revoked and restored by the <br />State Legislature pursuant to Chapter 74 of the Statutes of <br />1978. These granted lands, commonly known as the City's <br />tideland trust areas, contain reservoirs of oil and gas. <br />In order to produce the tideland oil, the City entered <br />into an oil operating agreement with D. W. Elliott in 1943. <br />Elliott, as the contractor under the oil operating agree- <br />ments, proposed to produce tideland trust oil on behalf of <br />the City by means of slant- drilled wells surfaced within a <br />250 -foot wide strip of land adjacent to the City in unincor- <br />porated Orange County; the slant- drilled wells passed <br />beneath the surface of the City and were bottomed in the <br />tideland trust area. <br />�' _ <br />