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HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 02/01/2006 III/ 41116 si--i23,> ' AMENDED ,gat 45c fb MINUTES 0., NAI a OIL AND GAS ADVISORY COMMITTEE 64 RECEIVED February I, 2006 r ,„ MYSECRE]ARY$ PRESENT: Juan Cabasos, Chairman,Industry Representative OFF Gretchen Arnold,Vice Chairman,Public Representative Charlie Jacobs,Industry Representative Glenn Cooper,Alternate Industry Representative OTHERS PRESENT: Debbie Marroquin, Director of Gas Services; Jesse . Cantu, Pipeline Safety Engineer; Jack Barton, Gas Department Work Coordinator; Max Jameson, Sdddbbbco Operating Company; Bill Gregorcyk,Royal Production Co.,Inc. Due to the resignation of the Chairman and Vice Chairman, Ms. Gretchen Arnold called the meeting to order and asked for the election of Chairman and Vice Chairman. Mr. Jacobs nominated Mr. Cabasos for Chairman and Ms. Arnold for Vice Chairman, Mr. Cooper seconded, and they were unanimously elected. Mr. Cabasos asked if everyone had reviewed the minutes for the meeting held on April 12, 2005 and asked for a motion to approve. On a motion by Mr. Cooper, seconded by Ms. Arnold, the minutes were unanimously approved. Consideration of an application from Sabco Operating Company for a drill site at an exceptional location in Corpus Christi Bay Recreation Area of State Tract 49 followed. Mr. Jesse Cantu stated that exceptions to Section 35-56 may be granted by City Council if the exception is necessary to prevent confiscation of property and renders it physically impossible to make a satisfactory bottomhole location. He stated that Sabco has not provided staff with evidence to substantiate same. Mr. Max Jameson, with Sabco Operating Company,thanked the Committee for being present, reported that Sabco has been active in Corpus Christi Bay for fifteen(15)years,has contributed millions of dollars indirectly to the state,city and county which has helped the economy. He stated the price of gas has made economical opportunities available to drill in marginal reservoirs and said it was not impossible for them to directionally drill this well but that it would greatly increase the cost to drill. Mr. Bill Gregorcyk stated that they are drilling into shallow sites and with directionally drilling the chance of getting stuck or never reaching the targeted area becomes much greater. Mr. Cantu stated that Mr. Peter Davidson, the Marina Superintendent, has concerns regarding increased boating activity in this area due to Packery Channel. Mr. Jacobs asked if the City has received any complaints due to the previous exceptions and there were none. Ms. Arnold asked what is the average lifetime of a well, and Mr. Gregorcyk answered ten (10) years. Mr. Cantu stated Sabcohas several wells that are shut-in or temporarily abandoned and asked if they are considering plugging them. Mr. Jacobs mentioned the Committee has asked that a well be plugged and abandoned with previous granted exceptions. Ms. Marroquin asked if they have plans to drill any others and Mr. Jameson stated they are contemplating drilling two(2)other wells if they make a well at this location. He stated the other two(2)wells will probably be at irregular locations. Mr. Cooper expressed his concerns of the bay being over run with exceptional locations but stated that a precedence has already taken place in this state tract. Discussion followed and it was mentioned that a straight hole would take considerably less time to drill. Mr. Comer stated it was more desirable to have a rig at the she for one-third (1/3) of the time that it would take to directionally drill a well. Ms. Marroquin stated that staff is not trying to prevent drilling but would like to control the scattering of wells which was the purpose of Section 35-56 of the ordinance. Discussion of the reservoir continued and Mr. Cantu stated the proposed location would create another cluster to this state tract which has three (3)exceptional established dusters with distances of 1,500', 1,750', and 2,100' from this location. Ms. Marroquin suggested if exceptional locations are going to continue to be recommended for approval to the City Council,the Committee needs to consider amending the ordinance to delete cluster requirements. She then read a statement from City Attorney Jay Reining quoting if the Committee is routinely recommending and the City Council is routinely granting SCANNED kit V Oil and Gas Advisory Committee Minutes Page 2. February 1,2006 exceptions, we need to look at amending the ordinance to meet the current needs of the industry. The question would be why did we adopt the current roles and why are they no longer appropriate. The Committee agreed that they were not in favor of amending the ordinance but would continue to examine on a rase by case basis. On a motion by Mr. Jacobs, seconded by Mr. Cooper, the Committee unanimously agreed that the exceptional drill site be recommended for approval by the City Council. Chairman Juan Cabasos abstained. Mr. Cahaaos asked if there was any other business, Mr. Cantu presented copies of the biographical information form needed for appointment to the Oil and Gas Advisory Committee to fill the vacancies. There being no other business,the meeting adjourned at 11:20 a.m.