HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 05/17/2000 41111
MINUTES --;;;„;,4
OIL AND GAS ADVISORY COMMITTEE TMJ*
May 17, 2000 �a r t.
PRESENT: Jerry Dewbre, Industry Representative
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Howard Fels, Public Representative ta CITY SECRETARY'SC ,rte,
Don Kersting, Industry Representative ca OFFICE
Harry Cofer, Alternate Public Representative -c-St
Charles Jacobs, Alternate Industry Representative StSt Li.
OTHERS PRESENT: Jay Heidecker, Petroleum Superintendent, Leroy Billington and Mike
Pawelek representing IBC Enterprises,Incorporated.
The meeting was called to order by Chairman Jerry Dewbre. Mr. Dewbre asked if there
were any corrections to the minutes of the meeting on March 22, 2000. On a motion Mr. Cofer,
seconded by Mr. Kersting, the minutes were unanimously approved.
Discussion of a proposed amendment to Chapter 35 Oil and Gas Ordinance Section 35-130
Wells to be abandoned and Section 35-80 Insurance and bonds began. Copies of both sections were
provided for review. Mr. Cofer made a motion to remove the motion from the previous meeting to
table the discussion. The motion was seconded by Mr. Kersting and unanimously approved. Mr.
Kersting announced the cost of a bond and/or letter of credit is normally one percent(1%)of the total
amount requested. He said they are presently providing the City of Corpus Christi with a one
hundred twenty thousand dollar ($120,000) bond which costs them about twelve hundred dollars
($1,200)a year. Mr. Heidecker added depending on the financial status of a company,the cost could
range from one percent (1%) to ten percent (10%). A discussion followed and Mr. Billington,
representing IBC Enterprises, Incorporated asked if the city was liable for plugging the bay wells
since it is the states responsibility to do so and also asked if the committee would be increasing the
required fifty thousand dollar ($50,000) amount per well. Mr. Kersting said he would like the
committee to also think about provisions to require a plugging bond after a well has been shut-in for
a period of time in the bay areas. A motion was made by Mr. Cofer to amend Chapter 35 Oil and Gas
Ordinance Section 35-80 to increase the maximum amount of bonding from two hundred thousand
dollars($200,000)to five hundred thousand dollars($500,000). The motion was seconded by Mr.
Kersting and unanimously agreed by the Committee.
Review of the storm choke requirements to submit a letter to the Oil and Gas Well Division
confirming their annual inspection was discussed. Mr. Heidecker asked if the Railroad Commission
requires the same inspection. A discussion followed. A motion was made by Mr. Kersting to table
the discussion for further research, seconded by Mr. Jacobs, and unanimously agreed by the
Committee.
Mr. Dewbre asked if there was any other business. Mr. Heidecker stated that a graph
showing the annual production within the city limits was included with the agenda for their
information. There being no further business, the meeting adjourned at 11:10 a.m.
SCANNED