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HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 12/03/2013 MINUTES OIL AND GAS ADVISORY COMMITTEE MEETING Tuesdav, December 3, 2013 !a; 10:00 a.m. City Council Chambers Conference Room, City Hall 1201 Leopard Street, Corpus Christi, Texas 78401 PRESENT: John Cantu, Chairman, Industry Representative Gary Meurer,Public Representative Randv Schnettler, Alternate Public Representative William Moffitt, Alternate Industry Representative Tom Fisher, Vice Chairman, Industry Representative OTHERS PRESENT: Jesse M. Cantu Jr.,Petroleum Superintendent; Hope Herrera, Management Aide MEMBERS ABSENT: Gerald Rogen, Public Representative; Patrick McCullough, Industry Representative; Paul Grivich, Industry Representative Chairman John Cantu called the meeting to order and thanked everyone for attending despite evervone's busy schedule. Chairman Cantu asked the committee if they had revievyed the minutes for the meeting held on October 2, 2012. Chairman Cantu had a question on last meeting minutes, "Were lease agreements ever handled?" Mr. William Moffitt stated the lease agreement form does need to be modernized. Chairman Cantu asked if Nye had heard anything from City s Legal Department on the matter. Mr. Jesse Cantu replied, no. Mr. Jesse Cantu also asked if Nye could get some recommendations on updating the lease. Mr. William Moffitt suggested the lease form be updated. Mr. Tom Fisher asked Mr. Jesse Cantu hoNy much land Nyas available for leases. Mr. Jesse Cantu replied there are currently five leases and Nyas not sure hoNy much total land Nyas available for leases. Chairman Cantu asked hoNy long of a time frame for Mr. William Moffitt to revieNy and make recommendations on lease form. Mr. William Moffitt replied by February. Chairman Cantu suggested Mr. William Moffitt have a rough draft to present to the Oil &Gas Advisory Committee for peer revieNy before presenting it to Legal. Mr. William Moffitt said there Nyould have to be a couple of different formats created depending if surface use is involved and other issues. Chairman Cantu asked if he could include addendums to accommodate the different scenarios. Mr. William Moffitt said ves he could make a rough draft to reflect the different types of scenarios. A motion to approve the minutes Nyas made by Mr. Bill Moffitt, seconded by Mr. Tom Fisher and the minutes Nyere unanimously approved. Chairman John Cantu asked for discussion and possible action on absences from the meeting held on October 2, 2012 and asked for some clarification. Ms. Hope Herrera ansNyered the absentees Nyere Mr. Gerald Rogen, Mr. Patrick McCullough and Mr. Tom Fisher. She stated a list of the committee members and reasons for the absences. A motion to excuse all absences Nyas made by Mr. Gary Meurer, Mr. Randv Schnettler seconded, and the absences Nyere unammousIv excused. Chairman John Cantu asked if there Nyere any public comments and there Nyere none. Chairman John Cantu asked if there Nyere any presentations and there Nyere none. Chairman Cantu asked how many terms Nyere expiring. Mr. Jesse Cantu said one industry vacancy Nyith Chairman Cantu's final term expiring and one public member position Nyith Mr. Tom Fisher's final term expiring as Nyell. Chairman Cantu asked for nominations for Chairman and Vice Chairman. Mr. Gary Meurer said Mr. William Moffitt is vice chair and should be chair. Mr. Randv Schnettler moved to appoint Mr. William Moffitt as Chair and Mr. Gary Meurer seconded the motion. Mr. William Moffitt motioned to appoint Mr. Gary Meurer as vice chairman and Mr. Randy Schnettler seconded. All Nyere in favor of the nominations and they Nyere unanimously elected. Oil and Gas Minutes December 3, 2013 Page 2. Chairman John Cantu asked if there Nvere anv items that needed to be identified. Chairman Cantu asked if the last issue Nvith Chaparral Nvas ever resolved. Mr. Jesse Cantu answered ves, it had been drilled and Nvas producing. Mr. Tom Fisher brought up the discussion of abandoned Nvells that need to be plugged. Mr. Tom Fisher stated that he Nvas Nvorried that some of these abandoned Nvells Nvould never be plugged and the operators Nvould go out of business leaving the Railroad Commission to plug them. Chairman Cantu, Mr. Tom Fisher and Mr. William Moffitt discussed if the leases Nvere still active Nvith a producing Nvell, Nvere they still obligated to plug or not. Chairman Cantu suggested contacting the operators Nvith the abandoned Nvells and ask what their intentions Nvere and if they didn't have any plans of putting them back into production to contact the Railroad Commission about enforcing the plugging of these Nvells. Chairman Cantu suggested the new committee to look into this matter. Mr. Gary Meurer and Mr. Randy Schnettler agreed that the matter needs to be investigated. Chairman Cantu recommended to get clear guidance from Legal on how to pursue. Mr. Tom Fisher explained on how the Railroad Commission pursues these matters. Mr. Gary Meurer asked how and when the bonds come into play. Mr. Jesse Cantu stated that is precisely whN-the bonds are maintained and not allowed to expire for these types of issues. Mr. Tom Fisher suggested a spreadsheet be created shoNving past production. Chairman Cantu agreed. Mr. Jesse Cantu stated that Nve have that information on each Nvell. Chairman Cantu asked if there Nvere any more questions on plugging and abandoning Nvells. No questions Nvere presented. Mr. William Moffit asked how and where to submit nominations for open vacancies. Mr. Jesse Cantu stated that the individual needed to send in their background and apply. On a motion by Chairman John Cantu, seconded by Mr. William Moffitt, the meeting adjourned at 10:47 a.m.