HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 07/30/2008 MINUTES ``I _:.
OIL AND GAS ADVISORY commiirEE
July 30, 2008
PRESENT: John Cantu,Chairman,Industry Representative Zoos
Gretchen Arnold,Vice Chairman, Public Representative
Lois Huff,Public Representative
Glenn Cooper, Industry Representative
Charlie Jacobs,Industry Representative
Tom Fisher,Alternate Public Representative
OTHERS PRESENT: Ricardo Guzman, Petroleum Superintendent; Elizabeth Hundley, Assistant City
Attorney.
Chairman Cantu called the meeting to order and asked if the committee had reviewed the minutes for the
meeting held on March 28, 2008. A motion to approve the minutes was made by Mr. Fisher, seconded by
Ms.Huff and the minutes were unanimously approved.
Mr.Guzman provided an outline for discussion and began by identifying the Marine Recreational Area of
Corpus Christi Bay,the Marine Park Area and the positions of the required clusters north and south of the
ship channel. A map was provided depicting the possible drill sites within a cluster as well as a map
depicting all the wells located within the city limits.
Mr. Guzman stated to get an exception to the clustering requirement is by affirmatively showing that the
exception is necessary to prevent confiscation of property and asked Ms. Hundley to define confiscation
of property. Ms. Hundley stated "that diminution in value of the production, that would have been
produced had they been allowed the exception,would be the confiscation of property presumably suffered
by the state, by the driller, through the Council's action." Discussion followed and Mr. Fisher, Mr.
Jacobs, Mr. Cantu and Mr. Cooper agreed that when drilling directionally the longer the horizontal kick
the more difficult the well is to drill.
Mr. Guzman proceeded with the requirements of filing an application to drill a well. Ms. Huff asked if
the intent of the ordinance was to keep structures from all over the bay. Mr. Cooper stated there aren't
many wells in the bay and agreed with the ordinance but does not see it as a problem right now. Mr.
Guzman stated "the purpose of the ordinance is to allow the development of oil and gas deposits in the
areas of the city in a manner that protects the health, safety and welfare of the public."
Ms. Arnold asked Ms. Hundley if she interprets the ordinance to read the committee should approve a
permit if the applicant can prove that it is absolutely physically impossible to meet the target and stay
within the cluster. Ms. Hundley answered"as an advisory committee appointed by the council,your duty
is to vet this exceptional request and then make a recommendation to council based on the applicant
affirmatively establishing that it is impossible to make a satisfactory bottom hole completion."
Discussion followed on the consequences of denying a request for a permit and the time allowed to
process an application. Ms. Arnold asked if future request for exceptions could include the language
although not physically impossible we are recommending the City Council grant a permit. Mr. Guzman
answered affirmatively.
Ms. Huff expressed concern about the committee setting a precedent in recommending approval for the
past permits and the overall cumulative environmental impact. Mr. Guzman reported he does visit each
well at least once a year and sometimes more when conducting the annual inspection. Ms.Huff asked if
Sabco plugged the wells promised in previous minutes. Mr.Guzman stated that was being researched and
said if those wells are not in violation of the ordinance he could not force Sabco to plug them.
Ms. Arnold asked Mr. Guzman and Ms. Hundley if they were comfortable with the committee's
recommendations to grant the past permits even if economic justifications were considered and both said
yes. On a motion by Mr.Jacobs,seconded by Mr.Cooper,the meeting adjourned at 12:10 p.m.
SCANNED