TITLE
Recommendation to approve and adopt the Long Beach Unit Annual Plan (July 1, 2016 - June 30, 2017). (Citywide)
DISCUSSION
In accordance with Chapter 138 of the Statutes of 1964, First Extraordinary Session, an Annual Plan of Development and Operations and Budget for the Long Beach Unit (LBU) must be adopted by the City of Long Beach and approved by the State Lands Commission (SLC).
Chapter 941, California Legislature, 1991 Sessions and amended Chapter 138 require the City and the Contractor, California Resources Long Beach, Inc. (CRLBI), to prepare a one-year Annual Plan, which includes an itemized budget of intended expenditures.
The Annual Plan provides for the further development of the LBU through the Agreement for Implementation of an Optimized Waterflood Program that was entered into in November 1991 as part of the above legislation. Preparation is a joint effort by staff of the City of Long Beach, Gas and Oil Department (Unit Operator), CRLBI (Field Contractor), and THUMS Long Beach Company (Agent for Field Contractor). A copy of the Annual Plan is attached.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on February 8, 2016 and by Budget Management Officer Victoria Bell on February 10, 2016.
TIMING CONSIDERATIONS
Chapter 941, California Legislature, 1991 Sessions, also requires that the City submit formal copies of the Annual Plan to the SLC for approval no later than March 23, 2016. To meet that requirement, City Council approval is requested on March 8, 2016.
FISCAL IMPACT
There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
EDWARD FARRELL
ACTING DIRECTOR OF LONG BEACH GAS AND OIL
APPROVED:
PATRICK H. WEST
CITY MANAGER