HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 12/03/2002 MINUTES Ac`"
OIL AND GAS ADVISORY COMMITTEE
December 3, 2002 j
PRESENT: Jerry Dewbre, Industry Representative
Don Kersting, Industry Representative
Charles Jacobs, Alternate Industry Representative °
Michael Woodcock,Public Representative "fire s+z
Charles West, Public Representative
Ron Ruiter,Public Representative
OTHERS PRESENT: Jay Heidecker,Petroleum Superintendent;Chief Adame,Fire Department;
Rick Ramos,Senior Management Assistant;Tom Harrigan,Sabco Operating Company;Lance Bruun,
Independent Attorney Representing Royal Production Company,Incorporated;Bob Rice and J.Scott
Smith, Royal Production Company,Incorporated
The meeting was called to order by Chairman Jerry Dewbre and he asked if everyone had read
the minutes from the meeting on October 28, 2002. On a motion by Mr. West, seconded by Mr.
Jacobs, the minutes were unanimously approved as written.
The Petroleum Superintendent's report followed and Mr. Heideicker explained the request
by Sabco Operating Company to drill a well at an exceptional location in Corpus Christi Bay State
Tract 53 as#11. He gave a brief summary of Sabco Operating Company having a long history of
cooperation with the City and operational excellence. Mr.Heidecker described the cluster ordinance
and stated the purpose of the ordinance is for public safety. He stated the most important being
navigation safety. He said the cluster locations in each state tract provide a pattern of uniformity to
create an expected safe navigation route for mariners. He stated that wells allowed out of the
authorized cluster location in our recreation area of Corpus Christi Bay would create a chaotic and
over populated area of well structures and each new well application should be carefully reviewed.
Mr. Heidecker stated that Sabco was willing to plug one (1) well if this location was allowed in
writing under the special conditions section of the drilling permit. He then stated that with the current
information available that he would recommend the approval for this well permit instead of not
recommending the approval for this permit as previously stated in his written report to the Advisory
Committee. Mr. Harrigan located the proposed and existing wells in State Tract 53 on a displayed
map and stated that Sabco will not be drilling the previously granted exceptional location in State
Tract 49 being well #7. Discussion followed and Mr. Jacobs stated he would recommend the
exception due to monetary reasons alone because if a producing well is drilled approximately$50,000
to$200,000 in ad valorem taxes will be collected per year and Mr.Harrigan agreed. Mr.West stated
that the committee commended Mr. Heidecker for protecting the integrity of the City Ordinance and
asked if the additional information presented would change his recommendation. Mr.Heidecker said
he would allow this location. On a motion by Mr. Jacobs, seconded by Mr. West, the committee
agreed that the exceptional drill site be recommended for approval to City Council with a special
condition applied to the permit that State Tract 54 well #3 will be plugged and abandoned. The
following motion passed by a vote of Jerry Dewbre, Charles Jacobs, Charles West, Michael
Woodcock, Ronald Ruiter voting aye and Don Kersting abstained from voting due to a conflict of
interest. Mr. Ramos informed the Committee that their recommendation along with Staff's
recommendation will be forwarded to City Council and also stated a presentation by Sabco
representatives will be welcomed by the Council. There being no other business, the meeting
adjourned at 11:00 a.m.
SCANNED