HomeMy WebLinkAboutSupplemental - Mayor Varipapa Re: Oil and GasRobin Roberts
From: Jill Ingram
Sent: Monday, July 23, 2018 9:15 AM
Cc: Vikki Beatley; csteele@rwglaw.com; Robin Roberts
Subject: RE: Oil and Gas
BCC: CITY COUNCIL
In response to Mayor Varipapa's questions below, the $13 million estimate represents the total potential revenue (one-
time plus recurring) that's been identified so far by MPA's independent work. This preliminary estimate is a cumulative
amount stemming from a handful of sources using Ivi large collection of documentation, modeling, and detailed
analysis. Each Individual revenue's statutory amount, type, timing (including statutory tax limitations), legal matters, and
the applicable laws, rules, regulations, and ordinances underlie MPA's estimates. Once MPA completes its proposed
work, estimates of one-time (delinquent / lump -sum) and recurring (annual & quarterly) revenues from each identified
source can be confirmed and then owed revenues can be collected. In MPA's earlier work (2013/14), the City's oil
producers (Hellman and DCOR) produced approximately 407,000 barrels of oil and approximately $337,000 in barrel
taxes in the City's fiscal year 2012. In that same period, the City's oil producer (Breitburn) produced approximately
23,000 barrels of oil. The City recovered approximately $18,500 in delinquent barrel taxes for that year from Breitburn.
Based on MPA's work, in 2014 the City recovered a combined $216,862 in taxes & fees, plus Brietburn's ongoing
quarterly tax and fee obligations.
As always, please call if you have any additional questions.
Jill R. Ingram, City Manager
City of Seal Beach - 211 Eighth Street, Seal Beach, CA 90740
(562) 431-2527, Ext. 1300
For Information about Seal Beach, please see our city website: htto://www.sealbeachca.eov
NOTICE: This communication may contain privileged or other confidential information. If you are not the intended
recipient of this communication, or an employee or agent responsible for delivering this communication to the intended
recipient, please advise the sender by reply email and immediately delete the message and any attachments without
copying or disclosing the contents. Thank you.
--Original Message ---
From: Mike Varipapa
Sent: Tuesday, July 17, 2018 4:20 PM
To: Jill Ingram
Cc: Robin Roberts
Subject: Oil and Gas
Hi -
Can you please provide answers to the questions below prior to Monday's meeting (preferably by early afternoon)-
1- Of the $13 million potential revenue recovery that Kirste has identified, how much is delinquent past -due taxes from
the last three years?
2- How much annual cash flow does Kirste estimate from the potential sources of revenue he has identified? Lump sum
total - no breakdown by producers.
3- MPA's summary of oil companies operating in the city and a summary of revenues that possibly could be recovered
from various sources - what has been provided to date by MPA/Kirste?
Thanks in advance.
Mike