HomeMy WebLinkAboutCC Res 956 1957-04-30
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RESOLUTION NO. '15'
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SEAL BEACH OF
INTENTION OF THE CITY com.CIL '
OF THE CITY OF SEAL BEACH TO,
GRANT TO THE UNITED STATES NAVY
A SURFACE EASEMENT OF 14700 SQUARE
FEET OF CITY mrnED PROPERTY WITHIN
THE U.S. NAVAL NET AND AMMUNITION
DEPOT
The City Council of the City of Seal Beach does resolve
as follows:
SECTION 1: That the City of Seal Beach has heretofore
entered into a certain Oil and Gas Lease with the Signal Oil
and Gas Company and Freeman E...Fairfield as to certain property
owned by the City of Seal Beach within the U.S. Naval Ammunition
and Net Depot; that heretofore proposals have been made to the
United States Navy for erection of oil drillin~ equipment on
said property and since such time the Signal Oil and Gas Company
and representatives of the City of Seal Beach have decided to
present to the United States Navy a revised proposal ~nd under-
taking, wherein the United States Navy would ~rant to Si6nal Oil
and Gas Company and Freeman E. Fairfie14, an easement to be used
as a drillin~ site, in order that Siunal Oil and Gas Company
might extract oil under city owned property within the U.S.
Navs.l Ammunition and Net Depot by slant drilling.
SECTION 2:
That there is attached hereto and made a
part hereof a revised undertaking made to the U. S. Naval
Ammunition and Het Depot by the City of Seal Beach, and a revised
undertakin~ by Signal Gas and Oil Company and Freeman E. Fairfield'
to the U. S. Naval Ammunition and Net Depot, which undertaking
is made a part hereof by reference; that tf:such undertakings
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2i" ,;.",,;S:ATE:OFjeALIFORNIA ))
\, .cet$ty.:'O:F ~Bi\NGE ) SS
22 . eITy. OF'SEAi. BEACH )
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Resolution Number
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are accepted by the United States Navy it is the intention of
the City Council to 6rant to the United States Navy a surface
easement as to 14700 square feet of property owned by the City
within the U.S. Naval Ammunition and Net Depot, insofar as the
City may gratt such surface easement and such surface easement
being for any use whatsoever, except that the same may be limited
by the conditions contained in the deed to the City of such land.
PASSED, APPROVED AND ADOPTED by the City Council of the
City of Seal Beach at an adjourned meeting held on the 30th day
of April, 1957 by the. followi~ votes:
Ayes:
Councilmen"""c.f'~.f...s~ "t;.J.4..v4~4-i1 5/............"; c..c
Noes:
Councilmen ,v""vJi'
Absent:
Councilmen ,v"AI.F
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MAYOR OF THE CITY OF SEAL BEACH
I, F. W. HICKMAN, City Clerk of the City of eal Beacn
and ex-officio clerk of the City Council, do hereby certify that
the above and forecloing Resolution was intro~~~) ~assed, approv
ed and adopted by the City Council of the _Sf~:'~:E-',Sf!41 .l~each '
at an adjourned meeting thereof held on ~e'}"3;9.:th"~~~'.~):il,
1957. ,........jf;". " "~~."
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eIGJ:'cr OF SBA.:b E,EAen
CITY HALL, 201 8th STREET
CALIFORNIA
Telephone HEmlock 8-1101
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C0Dm4~ding O~ficer,
U.S. Naval.,P.ll!IlI\1nition and Net Depot,
'Seal Eeacib, California.
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~e'ct: "~vised Undertakina
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Dear Sit: ',.\
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.. '.-an l~vember 20, 1956, Signal Oil ahd GAs~ Company,
atJ 'bp~rator for the City of Seal Beach, presente! to ,you an
Underta.king concerning the drilling of two oil' wells ~'On t1~e
4.6 ac~e,'City of Seal Beach property, lying wit~in t~e'
confineQ ~f your depot, ., ~
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, ,- The City of Seal Beach has title to ~h;~IP'tbP~t'ty. ,
'm -<f(1es~t~ and has contracted with S:1.gna1 011 and Ga. Cqmpany
and Freptt,E. Fairfield for the dJi lling of two wells.' Sinee
this property. lies within your depot. the .Undertaki~ was
presente~ as'an attempt to spell out a sat~sfactOry'-~~~ ~f
terms and conditions under which Signal would be pemitted
access to the leased land. . :,
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,'" ,r Since the Undertaking was init:l:tUy ~resente4j-
varioUs discussions htve been carried on with'Naval personnel.
Fram1theSe discussions it appeared that there we~e two basic
prOblems of concern to the Navy in regard to the drilling of
these wells. First, the necessity of Signal Oil and Gas ,
employees entering and leaving the Base presented a se~~riti ~
p1'l)M!'I'){ Second, because of the relationship li1!twee1].; ~\ie.~ ' .
. ,locatiQn of the city .property.- and vadous Navd act1vit:l:es' . . ;.'
:.1t was apparently. not considered a desirable d~~l~~,locatid'n.
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In d:Lscussion of the af,o,J'8lDentioned Undertaking, an
alternate .proposal was advanced al8 a solut1on.,to the problem
of produc~ng the cj,ty's oil. 'lh~A. was to the eff.ect that, the
Navy m1gbt grant to the cityt~, qpe~ator a suf;table site in a
location selected by the Navy frOlll .which to drill slant wells
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to the city property. However. the site suggested did not
eliminolte the security problem and also was at too great a
distance from the leased acreage for practical directional
drilling.
As a result of the foregoing facts the City of
Seal Deach now presents as a revised Undertaking the following:
(A) That the Navy grant a surface easement to the city's
operator for the purpose of drilling and producing two oil
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and gas wells. said easement to consist of an unoccupied
parcel of ground at the southeast corner of Bolsa Avenue and
Bay Boulevard. measuring 150 feet by 110 feet in the form of
a parallelogram. 14.700 square feet in area. the location of
which is shown on plat attached marked Exhibit "A".
(B) That the Navy grant subsurface pass-through-eas~enta
from the aforementioned surface site to the city's 4.6 acre
parcel for two oil and gas wells. said wells to be bottomed
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on, and all producing intervals located within. said 4.6 acre
parcel. including the right to drill substitute wells in the
event either of said wells are abandoned.
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(C)
'!'hat th~ City of Seal Beach. in order to duly com-
pensate the Wavy for the area above-mentioned, grant the Navy
a surface easement for any use whatsoever. of 14.700 square
feet of ~nused land selected by the Navy from the city's 4.6
acre parcel.
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(D) That all operations carried out by the operator
on the surface easement granted by the Navy shall be in con-
formance with the following restrictions:
1. No permanent buildings shall be erected on the
site.
2. Production tanks shall be limited to two SOO-barrel
tanks and one 300-barrel wash tank.
3. ~asement area will be fenced at operators sole
cost and expense in exact conformance with other
perimeter fencing around the depot.
4. No more than two wells will be drilled on the ease-
ment property unless approval to drill additional
wells is first obtained from the Navy.
5. During drilling operations the wellhead equipment
will be of a modern type and so assembled so that
the well can be closed in completely when the drill
pipe is out of the hole, and will have a ram-type
gate or packing head assembly for closing in the
well with the drill pipe or kelly in the hole. The
wellhead equipment will be tested daily.
6. Drilling will be done with a derrick which will be
removed upon completion of the wells.
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7. During drilling operations the derrick will be
covered from the base to the crown with sound-
proofing material and in sucll a manner best cal-
culated to prevent fluids escaping from the site,
8. Drilling and producing operations will be sur-
rounded by an earth dike and/or concrete wall, so
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con~tructed to prevent drainage from the area.
Drilling and producing equipment will be situated
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within the easement area in substantial conformance
with the diagrams attached hereto as Exhiliit "B"
and ''C'',
10. No permanent lights will be placed in the drilling
and producing area except as required by law. Any
such lights will be shielded in the direction of
the quarters snd administration areas.
11.
Upon completion of drilling, pits will be cleaned
and filled, and the surface of the easement area
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will be kept in a clean sightly condition.
12.
The easement area will be landscaped for the purpose
of screening facilities from view. Planting will be
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in conformity with the surroundings and present
vegetation, and subject to approval by the Command-
ing Officer.
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In order to elUDir~te unnecessary noise and nuis-
ance the operator agrees to use electric motors
to operate all producing equipment.
All and singular, each and every. the things done
or permitted to be done by or for the account of
the City of Seal Beach, Signal 011 and Gas Company,
Freeman E. Fairfield, or tbeir heirs, successors,
or assigns, sball be done at tbe sole risk and
expense, and they and each of them, for themselves,
their heirs, successors, or assigns covenant and
agree to hold the United States of America harmless
from any and all claUDs for damages of any kind,
character or description which they or either of
them, or any person acting by, through or under
them, may sustain of claUD as a result of the
operations carried on upon said easement area.
The City of Seal Beach, the Signet Oil and Gas
Company and Freeman E. Fairfield, their heirs,
successors, and assigns, and any persons acting
for or under them, will make no claims or demands
upon the United States of America or any agency
thereof for any injury to the properties, ~orks,
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persons. or things on the City of Seal Beach.
Signal Oil and Gas Company or Freeman E. Fairfield,
or persons acting for or under them, in or upon
the 3asement area, in the event of an explosive
accident within the area of the lImmunition and
Net Depot. arising from any operations of the
United States of America or any agency thereof.
The Signal Oil and Gas Company. Freeman E. Fair-
field, their heirs. successors and assigns and all
persons acting by, through or under them will so
operate in said area as to avoid contamination of
the existing water supplies of the United States
of America on the premises of the Ammunition and
Net Depot.
All operations will be subject to such rules and
regulations as regards security and safety, as
deemed necessary or advisable by the Commanding
Officer of the Seal Beach Naval Ammunition and Net
Depot.
Upon termination of the easement, the site shall
be restored as nearly as possible to its present
conditi on.
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Resolution Number
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Three specific points should be noted in regard
to the preceeding Undertaking:
(1) Drilling and producing operations are transferred
an additional 1,500 feet away from ammunition
storage and handling areas to the extent that the
presently producing Hancock and ~ellman Estate
Co. wells are both closer to storage areas.
Operations are self-contained, separated from the
Depot by perimeter fencing, and security problems
are eliminated.
(2)
(3)
The operating restrictions and conditions are
presented in the belief that they will adequately
protect the interest of the Navy in this matter.
They specifically include the applicable terms of
"Decree of Amendment No. 1 to Declaration of
Taking No. 12,11 which set forth areas and condi-
tions ~'ereby the Hellman Estate and Alamitos
Land Company could develop their mineral reserves.
In conjunction with this amended Undertaking the
city submits a copy of the Seal Beach City Council resolution
expressing the city's intent in regard to compensation of
acreage.
In addition Exhibit "0" showing the city's 4.6
acre plot is shaded-in in the unused areas from which it is
proposed the Navy select 14,700 square feet for a surface
use easement as compensation for land contributed for a
drill site.
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Attached is a letter of acceptance of all foregoing
conditions and restrictions on behalf of Signal Oil and Gas
Company and Freeman E. Fairfield, our proposed operators.
The city earnestly requests immediate consider-
ation and approval of the fore&oing program. Since our
previous correspondence, operators of the offsetting property
have drilled and completed two additional oil wells under
your Depot, offsetting our land, and are now preparing three
additional well locations. As a result, the city is being
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unjustly damaged. Any delay will result in irrecoverable
loss to the city of funds it can ill-afford to lose.
I, members of the City Council, and our operators,
Signal Oil and Gas Company and Freeman E. Fairfield, will
be most happy to discuss this proposal or any suggested
alternative with yourself or any member of the Naval estab-
lishment at any time.
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Respectfully requested,
CITY OF SEAL BEACH
By:
Mayor Paul Calvo
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EX1.\\arr
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DRWG. NO
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51GN...L OIL ...ND G"" COIlP...N'"
SEAL. !3c',ACfl
PIC'OPOSi!O t..OCAr/()#
SUPE~5EOES
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~ ~ EXHIBIT lie"
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ORAFTSMAN R,MILLER. SIGNAL OIL AND GAS COMPANY DRWG. NO.
APPROVEO SEAL BEACH A-
DATE 4-10-'7 ELEVATION SUPERSEDES ,
SCALE PROPOSED TANK FARM DWG, NO.
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GENERAL OFFICES, 811 WEST SEVENTH STREET
nfi)'8'~_lDIllS' !lV,4 (ilJmlIlllOlJlllDlL\.
The Commanding Officer.
U.S. Naval Ammunition and Net Depot,
Seal Beach, California.
Subiect: l~vised Undertakina
Dear Sir:
- The City of Seal Beach has entered into an
oil and gas lease with this company on its 4.6 acre
water department tract. The parcel presents a peculiar
problem since it is completely surrounded by the
Ammunition and Net Depot.
In November an Undertaking was presented
which was designed to set up controls and restrictions
on our operations and personnel, to such an extent that
operations on the leased land would be acceptable to
the l~avy. The city now proposes for the additional
benefit of the Navy that the actuai drilling location
be moved 1.500 feet to the edge of the Depot. Signal
Oil and Gas Company and Freeman E. Fairfield have
co-operated in the preparation of this proposal and
are most willing to accept the proposed location together
with the other additional restrictions in the attached
revised Undertaking.
In endorsing the city I s proposal we would
like to point out tbat since tbe prior Undertaking
was submitted the operator of the adjoining property
has drilled two more wells offsetting the city's land.
In addition, this operator is now preparing locations
for three more wells. It is estimated from engineering
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studies tbat drainage from the city property is now
taking place at a min~ of 100 barrels per day. thus
the city is suffering irrecoverable loss of approx-
imately $300 per day whicb can only be rectified by
proper development of producing wells on tbe property.
To prevent continuance of tbis injustice we
urgently request that the Navy give prompt consideration
of the proposd.
Yours very truly.
SIGNAL OIL AND GAS COMPANY
. Howard rsha11
Vice President
Freeman E. Fairfield
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