TITLE
Recommendation to approve and adopt the Long Beach Unit Annual Plan (July 1, 2022 to June 30, 2023). (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 (City) and approved by the State Lands Commission (SLC).
Chapter 941, California Legislature, 1991 Sessions, amended Chapter 138 and requires the City and the Field Contractor, California Resources Long Beach, Inc. (CRLBI), to prepare a one-year Annual Plan (Plan), which includes an itemized budget of intended expenditures.
The 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 of the Plan is a joint effort by City staff of the City’s Energy Resources Department (Unit Operator), CRLBI (Field Contractor), and THUMS Long Beach Company (Agent for Field Contractor). A copy of the Plan is attached.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on February 22, 2022 and by Revenue Management Officer Geraldine Alejo on March 4, 2022.
TIMING CONSIDERATIONS
Chapter 941, California Legislature, 1991 Sessions, also requires that the City submit formal copies of the Plan to the SLC for approval no later than March 23, 2022. To meet that requirement, City Council approval is requested on March 22, 2022.
FISCAL IMPACT
There is no net fiscal impact associated with this recommendation. Expenditures related to the plan are incurred in the Tidelands Oil Revenue Fund Group in the Energy Resources Department and are fully offset by net revenues from operations. Annual expense and revenue will be based on actual realized oil prices. If needed, the department will return to City Council with a request to increase appropriation offset by revenue. This r...
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