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HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 10/23/2002 MINUTES OIL AND GAS ADVISORY COMMITTEE October 23, 2002 PRESENT: Jerry Dewbre, Industry Representative Charles Jacobs, Alternate Industry Representative Don Kersting, Public Representative Ronald Ruiter, Industry Representative Charles West, Public Representative OTHERS PRESENT: Jay Heidecker,Petroleum Superintendent;Rick Ramos,Senior Management Assistant;Juan J. Adame,Fire Chief; John Burke, Assistant City Attorney;Peter Davidson,Marina Superintendent;Tom Harrigan and Ken Schubert, Sabco Operating Company;Bob Rice and Scott Smith, Royal Production Company, Incorporated The meeting was called to order by Mr. Jerry Dewbre. Mr. Dewbre asked for the election of officers. A motion to elect the present officers,Mr. Dewbre as Chairman and Mr. Kersting as Vice Chairman, was made by Mr. Jacobs, seconded by Mr. Kersting, the officers were unanimously elected. Chairman Dewbre asked if everyone had read the minutes from the meeting on February 20, 2002. On a motion by Mr. Kersting, seconded by Mr. Jacobs, the minutes were unanimously approved as written. Consideration of an application from Sabco Operating Company for a drill site at an exceptional location in Corpus Christi Bay State Tract 60 was discussed. Mr. Schubert,with Sabco Operating Company, showed the proposed location on a map of Corpus Christi Bay. He stated it would be cost effective to drill the well at the irregular location . Mr. Heidecker asked where the nearest applicable cluster area would be. Mr. Schubert located the different clusters near the proposed location. The committee agreed that the proposed location would put the well further from the ship channel than drilling from the nearest cluster areas. Mr. Davidson,Marina Superintendent, stated the proposed location runs straight through the main thoroughfare to the Marina and he had concerns about the obstruction. Mr. Kersting stated if the exception to drill the well was approved, Sabco would be willing to plug an existing well to help deplete the number of wells in the bay. Mr. Heidecker said he has received several objections to the drill site and stated that this issue to plug an existing well if an operator was to drill a well in the bay was the next item of discussion on the agenda. He stated he would recommend under special conditions of the drilling permit a requirment to file a Form W-3A with the Railroad Commission with a copy to the 9il and Gas Well Division for the well that will be plugged. A discussion continued and due to the lack of a complete application to drill the well being filed with the Oil and Gas Well Division, the item was tabled until Monday, October 28, 2002 when the Oil and Gas Advisory Committee will meet again. Mr. Dewbre asked that the proposed location be posted on the map provided by Mr. Davidson in regards to the route of boaters. Mr.Heidecker asked Mr. Schubert to present the proposed exceptional location for State Tract 49 which will also be on the next agenda for vote. Mr. Schubert and Mr. Hartigan pointed to the location on a map they provided and discussion followed. Due to the cost of drilling a directional well, they are asking for the exception to the cluster requirement. Reviewing city mineral lease terms followed and Mr.Heidecker stated that on a previous lease the City was awarded a$100.00 per acre delay rental with a 25% royalty and a three (3)year lease SCANNED term. Mr. Dewbre askedike General Land Office still requires 2( royalty and all agreed. The committee asked that the lease terms be considered on a case by case basis. Mr. Heidecker informed the committee of the actions he has taken and the problem he is having with Venture,LLC,an operator of wells that have been annexed by the city,to conform with Chapter 35 Oil and Gas regulations. Item 5 on the agenda was to discuss an ordinance amendment to Chapter 35 Oil and Gas Wells requiring operators to plug one well if applying to drill a new well in the designated"cluster area" was briefly discussed. Mr. Dewbre and Mr. Jacobs stated they did not want to amend the ordinance to reflect same but would agree to include it under special conditions of the Permit to Drill form depending on the situation and Mr. Heidecker agreed. There being no other business, on a motion by Mr. Jacobs, seconded by Mr. Kersting, the meeting adjourned at 12:40 p.m.