TITLE
Recommendation to approve and adopt the Long Beach Unit Annual Plan (July 1, 2015 - June 30, 2016) and the Program Plan (July 1, 2015 - June 30, 2020). (Citywide)
DISCUSSION
In accordance with Chapter 138 of the Statutes of 1964, First Extraordinary Session, an Annual Plan and Program Plan (a five-year plan that is replaced every two years) 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, amended Chapter 138 and requires the City and the Contractor, California Resources Long Beach, Inc. (CRLBI), formerly OXY Long Beach, Inc., to prepare a one-year Annual Plan and Program Plan every two years, which includes an itemized budget of intended expenditures.
The Annual Plan and Program Plan provide 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 the staffs 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 and Program Plan is attached.
This matter was reviewed by Deputy City Attorney Richard Anthony on January 29, 2015 and by Budget Management Officer Victoria Bell on February 2, 2015.
TIMING CONSIDERATIONS
Chapter 941, California Legislature, 1991 Sessions, also requires that the City submit formal copies of the Plans to the SLC for approval no later than March 23, 2015. To meet that requirement, City Council approval is requested on March 10, 2015.
FISCAL IMPACT
City Council approval of the Annual Plan and Program Plan for transmission to the California State Lands Commission has no fiscal impact or local job impact.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHR...
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