Title
Memorandum of Understanding between Department of Oil Properties and Harbor Department. (Districts 1,2)
Discussion
On September 20, 2004, the Board of Harbor Commissioners approved a Memorandum of Understanding (MOU) between the Harbor Department (Harbor) and the Department of Oil Properties (DOP). The MOU is the result of months of collaboration between the staff of the two departments to resolve some of the outstanding issues and to establish guidelines for the future of oil operations within the Harbor District. The MOU has been
signed by the Executive Director of the Harbor Department on October 5, 2004 and the Director of Oil Properties on October 8, 2004.
This MOU allows the Harbor to have a better understanding of the work that is being undertaken in the oil operations without changing the role the DOP must play in managing the Wilmington Oil Field. Developing this MOU has improved the working relationship between the two departments and will continue to allow for collaboration.
The MOU covers the following issues:
Land Use - Areas termed Oil Operating Areas (OOA) are identified as those where oil operations can continue into the future without conflicting with the Harbor’s land development. The MOU also addresses the process for abandoning wells and facilities in non-long term set aside areas, also referred to as Oil Working Areas (OWA). The OWAs will continue to support oil operations until the Harbor requires the abandonment of the oil facilities for land development.
Net Present Value (NPV) - The MOU details the process and methodology for determining the future value of production wells that will be abandoned when the Harbor develops the land previously utilized for oil operations. Both the DOP and the Harbor will evaluate the NPV of wells on a case-by-case basis.
Bioremediation Area - The Harbor has agreed to take responsibility for the
bioremediation area on Pier A West, including cleanup and removal of existing
material and pro...
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