TITLE
Recommendation to approve the assignment of the Amended and Restated Field Contractor Agreement and associated agreements (Harbor Department - Segment II) from Paramount Petroleum Corporation and Chanse Long Beach Production Corporation to Occidental Petroleum Corporation; and authorize City Manager to execute the Assignment Consent Agreement;
DISCUSSION
Tidelands Oil Production Company (Tidelands), a general partnership of Paramount Petroleum Corporation (Paramount) and Chanse Long Beach Production Corporation (Chanse), is the Contractor to the Amended and Restated Field Contractor Agreement (Harbor Department - Segment II) as approved by the City Council on November 4, 2003, the Long Beach Harbor Tidelands Parcel and Parcel "A" Oil Contract (Segment I) as approved by City Council on February 18, 2003, and the Amended and Restated Field Contractor Agreement (City - Segment II) as approved by the City Council on September 1, 1994.
Occidental Petroleum Corporation (Oxy) has negotiated with Paramount and Chanse to assume both of their respective interests in the ownership of Tidelands.
TIMING CONSIDERATIONS
City Council action on this matter is requested on January 24, 2006 so that the California State Lands Commission can consider the assignment of the interests of Tidelands to Oxy at its next scheduled meeting on February 9, 2006.
FISCAL IMPACT
Approval of the assignment and authorization to execute the Assignment Consent Agreements allows for continued operation of the western portion of the Wilmington Oil Field. Currently the western portion of the Wilmington Oil Field generates over $4.5 million to the General Fund from well fees, oil barrel tax, utility user tax, administrative overhead, and the City's proprietary interest.
Respectfully Submitted,
CHRISTOPHER J. GARNER |
APPROVED: |
DIRECTOR OF LONG BEACH GAS AND OIL |
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GERALD R. MILLER |
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CITY MANGER |