HomeMy WebLinkAboutSupplemental Information Received after Posting of Agenda - Study SessionPROPOSAL AND SCOPE OF WORK
FOR CONSULTING SERVICES
ANAMIS OF OTY MUNICIPALCODES, PIPELINE AUDITS, SLANT DRILLING
EVALUATION, AN D CRUDE OIL REVENU E RECOVERIES
Submitted to
g cl�d�s�a�
Prepared by:
Millennium Consulting, LLC
Presentation Outline
Overview of Millennium Consulting
• Kenneth J. Ramos
• Jeremiah C. Twomey
Proposed Work
Additional Opportunities
Questions and Next Steps
Millennium Consulting, LLC
MITI reafemC itim, Uc is a unique maoagemenf consulting firm with eepenen[e
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vial = ration /pipelinerys[m ;,naru nlpsp ing Plans. Miterenturn
specializes In a ornery of oil avid ps relat ed services, including, but not Iisiletl to
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3/27/2017
3/27/2017
Kenneth J. Ramos
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Jeremiah C. Twomey
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Proposed Work
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3/27/2017
Project 1: Revisions to the Seal Beach
Municipal Code
The pal is to ensure that he seal Beam municipal Code provides the City with the legal
dghr g anmo,irvm.nmtell retewer the ma.immm amount of...... In whim o is
enspea.
Ta he exhied do Codes nave not heen modified has a rholicanI crowd of time, they
may not reBen.
Cunemimusvy nr marMa"re'wm,
Besr paRen In go..rnmentand royalty owner management and rlgnts.
Cwrant ra l se ofthe mhCoru,syp pamad aN other rrarMUU fees;
me moo tews-ty of the Cry to pmea aximernt in nghtot-ways aN IrarWm:
The CNa rigor to mmcel wymere cairn wnaldn wd'mrcen, one enforce r—o er
motor ways or handices granted le
Project 1: Revisions to the Seal Beach
Municipal Code (continued)
• The Codes will be reviewed as part of our general conformity ry work for the entire
project.
How we believe that it will be more efficient and effective to draft potential
completed Work on recommendations t r to the City Council after we have
um form de, p"— will b mt Nl meassaamtim i<oen
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• inrs will aYOwfordrahing more mmpMewreaM ehMire reviyoM rare Mwdwl Cuoe
n order mpaterse.11 rererweintent.
• Essmated hours /Cost—g0 h rt-1516,1100.
n
Project 2: Review all pipeline franchise agreements,
fees due, and payments made
The pal Is to ensure that City is being paid all revenues to which it Is entitled
under current mu normal Codes for primp current, and future pellets.
The review will include analysis of payments made by the following compa ores,
for the raeood 2012 tbmugb 2016:
renew. plaw-
3/27/2017
Project 2: Review all pipeline franchise agreements,
fees due, and payments made (continued)
This review Is key to ensuing that companies pay and the City of seal Beach
receives the appropriate revenue.
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iMrneMaee uYen In —1. apPr Onate prymm6ImMrmve.
Citorder eat Beach,, source do[ m° nts will bthat ewed thave verify.
Estimated to mC
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Estimated hours/Cost -130 hours /$36,000 per company.
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Project 3: Identify companies that may be slant drilling or
operating line wells and not paying required fees
•
No current mechanism to monitor drilling and pordumon activities In
sormunemglurisi icoans.
• potential that production Is being dainea farm within City boundaries:
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patroieen reurvnn rbr wei me nowideren
• if not voluntarily reported, situation reruns in lost revenue for the cry
• Eaimateabours /cost- 120hours /534,00
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Project 4: Identify additional oil and gas revenue
opportunities for-Seal Beach
Goal is to ensure that Cry is maximizing its oil and gas revenues
Extends the work done in Project 3
W ill perform survey of oil and gas activities to Identify additional revenue
opportunities
• other non - wympt -d pares
•
Information used tneorylt w,o to theceNddonr
Information will ep usee to suon of reuiuonrero rM1e Muniti ti l sure
&tenmf work tlepentlentupon lntormmion ieentifiee In Initial survey
Estima(ed hours /Cost— 30 hours /$6,000
0
3/27/2017
Project 5: Assist the City to design and build a billing
system
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Additional Opportunities
Review of Tidelands royalties
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Collection of royalties and revenues to include Natural Gas
u— the munowl Wotan Ikea —woasi or hevmOe,M mMn cal on
Indirect Cost Allocation Plan
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Questions and Next Steps