TITLE
Recommendation to approve and adopt the Long Beach Unit Annual Plan (July 1, 2020 to June 30, 2021). (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 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 from the City’s Energy Resources 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 18, 2020 and by Revenue Management Officer Geraldine Alejo on February 27, 2020.
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, 2020. To meet that requirement, City Council approval is requested on March 17, 2020.
FISCAL IMPACT
This recommendation has no staffing impact beyond normal budgeted scope of duties and is consistent with existing City Council priorities. There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ROBERT M. DOWELL
DIRECTOR OF ENERGY RESOURCES
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER