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HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 03/24/1993 t. • , 3 t(- _51067897 ,, O MINUTES M APR 1993 OIL AND GAS ADVISORY COMMITTEE a: RECEIVED March 24, 1993 (NI CITY SECRETARY'S rn �, OFFICE PRESENT: Andy Carson , Public Representative Margaret Moss , Public Representative beeZZZt.ZC)1'6 Linda Newsom, Industry Representative Jeff Bookout, Alternate Industry Representative James Conn, Petroleum Superintendent J. J. Adame, Fire Chief Alison Gallaway, Assistant City Attorney Chairman Carson called the Oil and Gas Advisory Committee to order and asked if there were any additions or corrections to the minutes of February 8, 1993. On a motion by Ms. Newsom, seconded by Ms. Moss, the minutes were unanimously approved. A presentation by Gary Goodlander, with Tidelands Geophysical Company, Incorporated, for an application for a permit to conduct a dynamite seismic survey in Nueces Bay proceeded. Mr. Goodlander furnished the Committee with maps depicting the location of the survey and discussed the procedures that would take place. Mr. Conn provided the Committee with the past restrictions included in our permits which were limiting shot holes to 1 lb. maximum dynamite per 10 ft. of depth; limiting shot holes to be a minimum distance of 300 ft. from pipelines and wells; no shooting on weekends; the Oil and Gas Division being notified of commencement of drilling and shooting operations; and reflectors and reflective tape being placed on all buoys. Mr. Carson recommended the permit be granted with the stated restrictions and all were in favor. The next item of discussion was a report on plans for the City to plug and abandon the United Texas Petroleum Laguna Madre State Tract 61 Well No. 1 and charge the cost to Planet Indemnity Company. Mr. Connbriefed the Committee on the history of this well and stated that he was notified by the prospective owner, Lamar Oil and Gas Incorporated, which requested that the City postpone any action on this well until pending notification by the State that they can obtain the lease where this well is located. Mr. Conn stated that Planet Indemnity Company was in agreement to postpone any action and had assured him that the delay would not jeopardize the effectiveness of the bond. Ms. Moss made a motion to notify Planet Indemnity to confirm in writing that they will take responsibility and plug and abandon this well if a new responsible party is not in place by October 1, 1993. Ms. Newsom seconded the motion, all were in favor and the motion passed unanimously. The next item was to consider action against the well operators who have delinquent subsurface safety valve inspection reports for 1992. After a discussion, Mr. Carter motioned that the following operators and their sureties, be notified that in SCANNED ninety ( 90 ) days that if the subsurface safety valve inspection report is not in compliance, the City will proceed to take action to plug and abandon their wells: B. T. Operating; Headington Oil Company; LLOG; and Pi Energy. Ms. Moss seconded the motion, all were in favor and the motion passed unanimously. The next item was to consider action against the well operators who have failed to pay their annual well inspection fees for 1993. After a discussion, Mr. Carter motioned to submit the bills for the well inspection fees to the sureties and/or submit partial draws on the letters of credit of the following operators: B. T. Operating; K C Resources; Pacific Enterprises Oil Company; and Redfish Bay Operating Corporation. Ms. Moss seconded the motion, all were in favor and the motion passed unanimously. The next item on the agenda was to consider the amounts of monetary items administered by the Oil and Gas Well. Division relative to present. day cost (bonds, fees and mineral leases) . After a lengthy discussion, the Committee asked Mr. Conn to report back to them on the' justifications for having a cap on the bonds versus a bond for each well and for the Legal Department to investigate as to whether the City can allow well plugging companies to keep recovered salvage to reduce plugging costs. The Committee agreed that the money amounts for inspection fees and mineral leases were sufficient at this time. Mr. Carson asked if there was any other business and Mr. Conn introduced City Fire Chief J. J. Adame who briefed the Committee on the pipeline issues. There being no other business, the. meeting adjourned at 2 : 35 p.m.