TITLE
Recommendation to authorize City Manager to execute the North Strip Oil Operating Area (OOA) Joint Use Agreement between the City of Long Beach (City), as West Wilmington Unit Operator, and Ultramar,
Inc. for a ten-year term. (District 1)
DISCUSSION
The subject area, located immediately north of the Valero Wilmington Refinery tank
farm and approximately 160 feet south of Anaheim Street, is reserved as an OOA for
current and future oil operations under control of the City, as Unit Operator, in
accordance with the Fault Blocks II and Ill Unit Agreements. Ultramar, Inc. (Ultramar),
owner of the Valero Wilmington Refinery, proposes to pave, light, and fence the
property at their expense for controlled access employee parking without interfering with
oil operations. Ultramar is attempting to meet a March 1 , 2005, deadline to comply with
Homeland Security Act requirements for enhanced security at refinery sites. The major
provisions of this Joint Use Agreement are as follows:
The North Strip OOA Joint Use Agreement is effective for a rent-free term of ten
years, commencing March 1 , 2005, or upon six months notice prior to termination
of the Fault Block Unit Agreement or redevelopment of the area by the Harbor
Department;
The City will allow Ultramar to use and maintain the area free of charge for
restricted employee parking and as a turnaround space for trucks loading at the
Refinery ;
Ultramar will pave and light a significant portion of the area entirely at its
expense. Paving will have the benefit of improved dust control for the area and
help the City comply with South Coast Air Quality Management District Rule 403;
Ultramar will install fencing at its expense along the north side of the area;
Ultramar will not impede the City or its Field Contractor from accessing existing
wells, equipment and facilities, or from adding additional wells, equipment, and
facilities in the area; and
Ultramar will hold harmless the City and its Field Contractor for an...
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