,,

MINUTE ITEM

., ·· · =t:his Calendar Item No . .;){,, . . , ·was approved as Minute Item 19•'No: c2.'· by the State Lands «,,, 9ommJssion ~Y ~~Jt~ o!~

ito u at its _/J.5L8°-2

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~ ,, . " . :meeting.

A 5,7, ~8

s 37,

CALENDAR ITEM

'04/25:/:5·5 w 11708''1-. tarnmers

1·9S5..:..86 ·PtAN OF 'OEVEL:OPMENT 1AN~ QPERATIONS A~D ~UDG~T, LO~G BEACH ~~It

WILMINGTON OIL f!~LD, LOS ANGELES: COUNT~

Section 5, .Chapter 1•38, Statu.tes• of 1'164, 1st E.S., (Exhibit "A"), and· Article: 4 of the long1 ·Beach: Unit Agr.ee!ne.nt r.equire a9option. by the< Ci t.y of Long• Beach. of an annual P]c ~···of. 'Oevelopnufnt and· Operat-ions and Budget for the Long Bea·ch Un

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The ~la~ and' .Budge.t is· _,then: to· ,~e· -.submi,tte~· -.t~, .. the ?ti:\ ~e l!"~~'(;l~. 1 ·, 1'.

Comm1ss1on at leas.t. -100• days1 1 pr.1or: to subm'.!-ssion -to· the · · 1 ,·1

participant~ of the Long Beach 'Unit. I l ' ~ ~ i I ' :f ' ,' ~ ' ;,'I

The City C,ou.nc·il, off .·the• gd..ty1 1of Lorag Beach•, at its ·meet:i.ng: o.f· ·" March 12, 19.85;, adopte.d th-is 1 propo·sed1 Plan. of Deve[opmentdiria'' : · Operations'.~np. ~udg,~t f9r· .198~:;;~§, ~i)9,,author.ized· its·, sUbrJ,1d.

1teoJ:' ·

to the ~t~t-~ ... Lanfls, C,oro!ll;is.~i9n, for co.nsideratioh and1~appr.ova+·; The Plan and Bud~et was s~bmitted to the Sta~e by the City on March 13, 1985.

Under Sec-tion 5(b,)·,, the Gommission has 45 days :af.ter. 1sl.Jbmiti:al to ta~e a!=tion. If n9 ~ction is •taken; the ·Plan .. and Budget:· is deemed ~o ~e appro!-!~d .a~ su.~rnitted. The Commission .may affirmatively appr.ove· the. Plan and Budget or modify it after.·· holding ·a. form~l -h~aring,: Under Section :5(.g) .the .P,.'.l.ari and Budget as submitted· may.be modified without a hearing upon

,mutual ·Agre~ment -~Y t!ie ~~t~ and the Commission.

The Plan was changed in the 1963-84 year to a' _programmatic format with CRITJR~rap'l;~ B,\J~.9~J fur:tc;!,ing ~ ·B.~caus1a :of, :th.e

0 relati~elx ~hor~ ,per~~~ ~he n~~ f~r~~t .ha~ be~n i~~ffe~t iand ~ith a~tiv:i:ty :t.ev~l, cJJ.~119~~ .a~fe~J·ing axp,endi-t;ur.e, l!evels·, · · · · comp~r~~on1 qf, ,p~§ t -~nd .. pr,oposed '.funding ~!1.· .seve~al• ,if>rogr:anis' :i:s• difficult. T!i;i,!! has ~e~r:i f.ur.ther aggr.aya'tE~d ·by .pas:t ,cha'r:t9es~ 'in ·' ithe acc9~nting ,pr.o~~.f;!ur.e~. of alloc~tionS' of •expe·nditure·s1

.bet~~~Q p,r9grarp~ f oi: ~-ll{J .. t~F_>le. ,P-rogram ·Budget ]}tern :acifOU~~s·. AddJ.~:1;()11~~ chaq~e~ ~P.P.~c;v~ 1:-n. the, ~985-:-96. b,ud,get. .Tthe -.CJ.iby ~h~s:

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. approued th~-Field Contractor's requ~st for £h~ 1985-~~86 yaar to re:oistribute or relocate to dif,ferent accounts ·significant. fundil'),9; _for' both .field 'labor and'' ~"ngineering sal!iries in the Drillj;ng" arid- Oevelopme'1t and·,oil and' Gas Production programs·'

, e~pen~~e. For t::~.ii' ·l"eason, cpmparisons. of current and past :e~pen.di.tures wi tfr ·prop,os,ed fun.ding continue. ·to be made by, the

~ co91mi'~~i~n st(iff on. ~na~~'l:9ca-j:ed,: Bµdg_e.t. I.terns .and; ._hj/storiq1l BLjag·et:,. It:e1l1 gr9~p~ngs. . ·

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The .proposed Plan provides for continued develgpment of the .Long. Beach Unit and the 9peration and maintenance ·of ·necessary: ·facilities in s.ix :pr:ograms,,_ These· program_s combine the· · '

<\. inyes.tm~~n.t .and- exp_ense expend~·ture·s included. i'n-»the s:cope ·of · •"' the _pfp,gr~m as ~ell as the admi'nis trative- overhead: -cos trs~ · · ,' · reTfft_e·d· 'to ,those~ -expend·itur.es.,. -A~'!<?-C:-i:l ti.9!1 p~ t:ween>''pr·ogrnms· i.s- · .

.. required for. some1 budge,t. items as' mentiohecf\ aoove-.: . . ; '-,~,~'"--' ',l

To ac,complis h the developrnent aria facility .additions that aro propo~ed, in- the' 1965~861 Plan and. l to .. mana'ge·; I operate

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.main.tain· .the· var!ious exd.s tinge fad:l-i tie's.; ·a; ;1.9s·s·-86,"ffudge't1

.l ' . l' ~otali.ng1 $214.; 201.,-000 lias 'b~en suomiH:ed' by• th'e• cit'y· 'Of -,~t"l'lg l I .,

·Sc:1ach·. This .pnovides f.unaing· in." thei six b't.i'aget prograrns· as···

follows: ·

A. Drilling and Development $56, 7H ,ooq 26.5%

B. Oil and ·Gas ·P.roduction !7 5 I 4·49 I 000 ' 35.2% ' l ~ I

c. Enhanced Recovery. & §ti~yiation 2', lf!5,000 -1. 0%· : I

o. Water ~nti ec tion 37 I 563 ,000' 'l 7'. 5~-

E. Management 1 9 , -i 8 2 ,, 0001 9 .oc;.:;·

F. Taxes, P.er.rrli ts .& Land· ·Rei't.tal' 2 3 '• ·f9~f ,'000· iO'. 8%.

$21'4, 201, 060 i66 1.0%

Past Unit, e:.<pendi-tures -and proposed Budget: are sliowii oh ' \

1 Attachments,' 11 .and 2.. Th.e 'expenditures ·t:o elate and prof)osed· ·" o < :.bud9,et f.or · ea·cn: progriam-,are s'howr'I d'n 'Attachments 3.:..a_~:" ·" · : "

,., . 1 · Expend~·tur.es- -.f:o_r,·.y.ears ~r.ior to :J.1 9a·~..:a4·1were_ ca~cu:p:\ted 1 l:'~-~n~':" · f th~ sair1e iFte,rcenta_ge ;,spl1 t- if.or, 1allocated budget ·l!tems ijl~ the· ·

1983~~.84-· B/Jdge.t. ·However, si'nce •tneri a116cati'on 'factors Have; · been charj.·ged 1and -.fdr.: the proposed •Budget adtlitional' atlo'catiori:' "' ch~nges ·ii?f, ·cer:tain labo'~· -~·nd s~lary '.expeli'di'tJres· t:o Ci:iffefi~ht'." buclget i 1-tfims have been mad\~.

n1e propo~ed plan provides lfor a reduction in drilling rig usage from the_. eig'h t dril1-1lng rigs .in operation most of 198.4--85. F1:1nding is ;;:Wov~dtjd' for approximately six and ,.one half rig years1, for new wells and redrills in ~h~ Dril'f?.ng' a,IJ~. ~e~elop~ent p~~gram and wor~ouer~ arid productio~ ilio~~ ~h ~H~ · Oi·l and Gas Production prog,ram. Considerabl'E! emphasis will be

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CALENDAR ITEMt'NO ... ·2 6· .. l'CONT·! 0:): · ..,.,. "" ~ ,. .. ' ' ' ~ - + "' .. '"' "' '" '

placed on de.t~d?i~o.i rfi?ser.~,9~r ~naly~i~, to ~ssure, opt·ilJlum· fi·.eid· ·· de~eloprnei:it. :~~ i.s· now .r.ec,ogn?.,ze9. ~h~ t tper,e.· U,Ji:l.1, b,e1 a con~.::nu.ifl.9• i;lec~,in~· ip ~r~l~ir:ig. r.~g a~.~~v~:tY over ·the 11e~t. f~w: y·ears .. The Uh,it .fi,y~1 year ·F?I.~i:i wilff 'be t.evised1 ~o· r.~f.\lect ithis change from th~ .corit~·nu,ed- efg'ht r.fg, .. ~ct~1,1~,ty P,r.ey~,0us:J.Y1 proj e~.tec;f..~ .

. , A. DRILLING AND DEVELOPM.ENT, PROGRAM.

Funding of $S~, 7.M, oqq ~.s p,r.9pos~q. f9r tbis P,r.!)~ff"[Tl, ' ·26 .. s per.c.ent of th.e Bud.get. Int.!~.~- trTJ.!FJ~ fl!nc!~!19 · ~s $~S" 3 ~01!.0Q01

including ai:lminis.traf.ive overhead, al1l of .whi.ch is for .th~· ,, dr.f~:l~Qg.'_of ~e~.: ~el~s :. Th.El . e~pen~~ f;uriding of $21 .•. ~ S L,,opo{,;· . . .i_IJC.l!JdiQg._a~tn.int~.tr~".~iv~ <?':'~rhe~d ~a~. ti")~ ·HJ?j qr; ~ornppn1;rn~~,·iof ·s1., 4·1 ~ ~90Q for retjr·~-~J:t.~9 or ~x'.l: ~:tin,9· w~1·1~- ~, -~~ ,:S§Q:,;·09q .. 'fH>r·. / drilling support, and $2,337,000 for waste disposal .. Th~h~Otqa '· administrative o~er~ead for the program i~ $2,181,000.

• ' l I'; ~J. ~ ; I /1. ~ i ' ' I, ~ '

The estimated expendi t:ure in· ·the· Dri·lling and· Deu·elopment Pr~gr~'!l.f9r. ~tJ~ ~t;rf~~n~ .)(e~r.~ }~S!l;r?S!, .i~; ~S1 11Ji1i~P.nm, ~ ._ .. ; c<?rnpar;i.~?11 ;.w~tfi pa~~ Yt?~r~, ;J:~: ~~o'HD- q~ .~~~asnr~~-~.~ 3. ~g~ .~,hR~s . tlie expenditure trend reduction for new ~acilities .. ana ,wells~

• -~ ''• 'jt 11··-;. 1 ·~· ,. ~~ ~, ••• -~, ···~ •• ,,~··

Th~ irive~tm~ht ~pr~ioo 1~ $4~ ~ii1~~rt ~~~Ii ~Ii~ ~~~~i~n~ ~~ ~n~w· wells ~~~oµnfU1g. fol'.'. $4i ,ni:!-:liiqn,. i:n~ e.?<p.¢.rise e~R~r,.d.~tu,re .is. est'iinateq ~t $~2.rrjil~i9rj ,IJ.!i~IJ. ~11~. ih~j.c;>r c9mpq.ne/~~s $~ .. ~, Jffillign for redril!in9, 9f '1l~:qs, ~l()\:s 01i))ioh.'fqr axi~.l,i.119· ~-l!PfWrt:. a.ncf $4. 6. miJ)i'6n for w~s ~'!? di~po~.~1 · · . , · , . .

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Attachment 3A ~~· ~ ,p~o~ of the cai'.cuiated. ,pr,ogr,am mont!Ji,y e.~penditures F>rior· to Jul'y i:9a3. and actual expericHtures. since ~hat time. Also shown is the reduced .expenditbne ~~en~ fo~ .

• ~ ~ - • •' • ' ~ ' ,,. :!\ ,, ... • ' ( 1 , ' I' - • .. • ' •• ' ,., •• ' ' •

eel la~~ ?ri9 d~i~~.i~9, eql;Ji~J"Qe,nt,. . ~.ttachlTJ~n~ .. 3~. ,i~ .~ .. Pt.9·~ .· gft, 'the ·monthly 1nves tme·nt expend1'tures in .the .pr.ogr.am a,nd, .the 1owe.r. curve sh(?W~ t~e: decl'~I!~· {ri ~~p~n_c:fityre~ ,fq·r ~.~w·.ti:l<:tii:i'ti.~.s.<~r.gm $13 ni~l~~o~ t~ ~,~83.-:-8·1:: a~d: ~.'?4q_.~99.o ir.i, !~~4-:-.~?,1: _,t.q.,:$,d i11 ::: , ., , . 1985.:.8~. -~tt~~~l!len·~. _39· .~.h9ws, ~~C?.~r-~niJn.09.~h~y, ~~pe_n.~.e . ·>,. ..!" · : ~xpendi~ures. A~~~chme.n~. ~O ~tjQ~.s -~t;ne .~o~a.I.,pro9,uH,~rt9;;!'-l~]).s ·Jirr- .i

·the. ~nit.:, :t:he. ~~t·~:~~ Ri'oc!.~:cy1~, .w-cfl..J.:s ,·. tn.e _.do~n '.t.if{l.e, .qf ~~·~'' · ,, active tu~lls ar:i.c!: t.hEl re~,y;.It;.,.n,g, ,f.ul~. t:i;rq~. 'e9.u:I;1.1al.erit .c!.ct;i ... v.~ ; · .. ·/ . . wells. Thi? ryumb.er tjf .~.Q~S,i:iv.e .1~.elJ.\s .. ~Qh.t;iQH~.s •.t.o tn,<;.re~,~.e.,- ,i~Jlr · evaluatio~ of hoW t<? IJ·tiTi~~ thes~ ':idl~ w.~+,ls. mu~,t .. be .. _p,art ,of . r the revision of· ~~-~ t,J.'n~'t ·fit!~ Y.e,ey.r:, P.l.ari .. ., , · . ·

~. OIL AND ~AS PRODUCTION PROGRAM ' ' ,_. ' ' r ~ ~ • • • • ' "

Funds ~for new oil wcfll ~ur·f~ce eq."~i.Prneht, 9:p. w,ell .fl1~~nten,~ri'.c?- ;," . ~nd 51·p:r~~ion'. a~d. oi~. cl:,na. :9,.~s ~~thE)t~pg,. .. rn~t.e.r~rig •. ·proc;~i;.s;i.n.~1 , ... and i~h1p~i11g .a·r.~. prov:I;<;le.d, .. by th.i's. ,p,rq~rall,I,.: to.t.a;i Pl/<?,P<?~~tj '" ... fund~Lng is $7~ •. 4:49 ,OOQ, 3S .. 2 R~rcent ;.of ~Ii~ ~q~!=!;i .. pyc:jg~t; ... , , , comp·~1risc;>n wi"tli ·previqus y·ear" ~~: ·s:ti.citef!l qn .A~~aGnmenf;. -t,.. ·iii;\~ ,, ,- .

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,CA'LENO'ifR' IT EMA.Jo. '·2:·6 (CONT I b'):

inue~tment funding is $1.~ millibn, ·ex~~hse·~osts ~~e $71. l mill,ioh aha 1Adininis trative. overhe·ad i's' $1. 9 inilli'on:. The main' sub- programs are o:l.1 Wel'.l. Repairs·,' $2'3, 7 57 I oob·, Fl'uiif Lift·ing', $2~·. 6.10·1 obo, ana Producti'on: Maintena·nce, $1'8 ,·2~1.1 ooo, incll,!ding administrative o.verhead. - ·ni-ese; 'ah~ '•o'r'1goi'ng expenditures affected by inflation, the increa~ing number·~f active wells, increasin~ gros~ f~ui~ r~te, and ageip~ of existing facilities and produd.ng·:wells.

The estimated program expenditures. including administrative· overhead, fof the cU~rerif y~ar·~r~· $73.2 inilli6d'total i~d'for· the main sub· Programs'; Oil Well Repairs. $·2 i:? iid11io'ri'; Fluid' tif ting; and Handling, $28 .10 ·rnillioh·; and Produc't'ion Mai'nt'e'nahce;

1'

$22. i ·mil'.1.ion. Att~chrn~nt 4A i.~. a plqt 9f·· tn·~-~tii.971.~rnr ,p,'r:q{:ft~iJt' ;r.: expenditures and at:tachments 4a..:.4f -are siir'ti1:ar plots 'fo'r 'lihe · subprggr~:rns., , · · ·· · · , · 1

'"

C. ENHANCED RECOVERY AND STIMULATION PROGRAM '. )

This prqgr{lm' 'W~ s 9e's ~gned to atjmiil~ s ~~r -_th~, cqs t~ .~·~ s.9c~.~!:'i~CI · ~ .: · '. with '~nH~ni:esf re~q~~ry ~tja sti~i:JJ;a!;i<;>ri Pr'~j'~~t~. :ahd' sp~~~f~~~ll;Y. . . to ident;ify 1:11·~ costs re'.l:ateg t9 tHe c~ustiG·· 'f~9q9 ~nq :~11~. ,q¢ep · steam 1 ·drfve tertfary o~J..'. rec9iJery ~r.qj'ect~ ~d a,~d ~n tj~~errttl.nir.9.' project ·economics. ·p·roposed ·funding is $2, 10s, ooo .. 1. o f?ercen.l: ·

·v of"tnei Budget. The· ·maj'or part of this runaing $i',"6a1;ootf, .~·,·. " large inc'rease 'from previous ~ears' 'is for 'ind:tvidual 'w~ii c. stimulation by cyclic steam injection ·and. acidizatidn .. , the

balance is for the steam drive'Rroje~t. Attachments 5-Sc .a~e plots of past exp·ena:L'tu·re ·and· p·rop9s.?d ~u~~g~ fi.mtj:i.pg ~ · · .,. ·

Estimated e>«pe·ridi'tur'es· 'for:· 1984-a·s ar·e $2. 9 inil'lio'ri of which .$2 .·41 ·mi'l'lion wj•lT :be ·for the .ca us ti2 ·fi ooCf~ afii:i '$0. s :miIIibn. for the' s!team 'ei,;.ive 'pro] e-C:'t. ·rh·e inj'ec tibn of cai.1s tic",was ,, . t~riTffa1ated i~. ·D'i.".c'em~·er 1'9'83 an~ f'l;l~ fr~$·h wA~er · P,.qs~ ·ft~·~·h iD, June 198¢. Thefe .wa~ fie~ef a ~6s~ti~e r•s~6~se t~ tHe c&u~tic, flood aqd as th·e ·ti.njec~·e.Cf ch~mica·~·~ r·~ac'n~,d '.th~ 1F>noci1.l~:l.ng. · .. · ··. 'we:J.il~s' ·1riai'ntenan·ce· 1c'os·ts· 'became excessive because of scale formation'. . ~i ~h· ~~~'. ~·~ar~ "of ·-i:;~~·. ·1 ~q·S, .. :J·~ -~·qdg~ t ·Y.~i\lr· :·5 ~P~.f~,t,~, . l ,charges .for thl:'s proJ ect ·wxl'l no l'ong·er· ·oe .ln'aintained. The . s'te~m drt·ve prdj ec·t co·nti·nue,s ·to be fnc'luded · :l.n ·the.' .i 9a·s'..:a6 ' ' ,,Pian, hoi~fever" tht-·s en'tiancea. oil ·r•ecover~ '.P.i-oJed:' wilt 6'c~·" . ·r~viewed during Hie year as 'to· cont·inJci'.·t·io'rf cfr ·:rhc»di.fic'ation.

ihere ar·e no firm plans for any tertiary· oil ·recovery f"±e1d· ·9emons tra tion projects dur:i,ng th~ next .2-3 y,ears. Tti~r.ef..ore, there"uJi:.11' be no 'fierd"-u1tde aj:>_'pl;ic;~ tioi'},s ~.4rl;11g th~ nex b. s,~ 10, .y_ear ·pe'r:iCHf. the· ·Unl.;t illil·i: h·ave to 1.i'tfliie .a .c9nve.ntional · ·

''·~~tiar floocl'·i,aJi't,!1 exis'ting· ·1;i;re:C"tiq~ p~tt~rns ... ~~ ·:~_he .. q~l · ~ r~ccivery p1~H ~h~d~~h the 19QQ~~ ~h~ chang~~ ~rv9lu~~g ~ ~at@~~ ,f),ood· wJ.'th rnodifi'ed' i'njection pa'tterns ·Or one that considers

· ................ t*"'?"f~',. ";••to~ ... , . ..- .....

'. aj¥:..~(.REV:USED· ,,o .. ~/.>2-2'./,85)· -4-/ :, ¢~.:rrt.; ~ ,, -. ": .. " ~ , ~, . , t ~ 1 -~.....,,,,iJ,- ... 15~ ..... """"')i.. .. ~-.-t~._ .,...r,.-,J, i: -- ·-i.<~ ,•k , ,-. , ,

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th~! in.jectio11 ·of so!J1e ,_c,~b~r '.~ubstance ·wi1ll be. \for :the~ .i,990,-' s, pei"iod. This issue1·wil'l' i.bel ,addressed 1bY1 t:he Ci-by d.n ·their revis.ion of the Uni<t Five-Y,ear ·P.lan1 ,whd:ch, .i•,S: t.o ·b.e. · s.ubmi1t:ted, to' .t11·0 state Lands cC>lnmission. in:,N_o.vernb~r:r·, · 1985;.

·o, WATER INJ·ECTION .. PROGRAM:

The. ·pres sure maintenance· ,a·n'd' waterif.:J:o'od! operations. i'n thi•s1 program. ape requiredJ by: the \Unit .. Agreement's. l"he 1 fundti:ng is for the· ,necessary wor..~ .on: ·injecti9ri ·weli'ls:; operation ·o'f -the surface insta1latio·ns •used· for ·fi·l.tehing ,produced wa.t·e·r and pressuring .wat.er. fo:~ ~-~.jection; ·and ·.the:·p·urchase· oT ·pr.~ssured., water. for ·addi tionaI injection- water-'. 'Pr·opoS'ed: funai'rig •fior~ l98.S-8.fl is $3-7·,5.63,.000·, 17·~"5. per.cent of ,the· .Budget. Comp<;rris'o·n. w:U:h. pa'st ·years is· shown :ofr •A't:Each·m·en·t ·6.. Tli'e 'es.t:1'ma:eed" . , ___ :.- ...... expeh,di·tu.r.e 1for 198.4::-8.5" ·is $32·. 1rnil-li'ori:. The·· ~·s'aQ..:·~ui.i·'a'led' fnorit'hl'y~ expendi ti.mes ·pr.ior .to ... rru::I:y1 1.953,. anc;! ac.tual ·expeiJaH:ure's:.-af t·er> ·that tim~ are· s.!lPWfl: ,9r:t A,ttachmen.t .. 6A::-.c,, · · , " ·"'

T,he in.c.ret\S!'ld. fupdi,ng f9.r;' Jtii'S1 program. 1is. pr.imar.ill·Yf ai resul.t I of t'tie ,~nt,i,cip~!:~d ".incr,~as.e .~n· f.luid 1,1,o.+1,.1rrt~ ~o. \I;>~ .. in1 ecs.,t'ed) and· increased inj e~tiqn ~~11 re_p.~irs. ' The Ci tY· ~stj.m_c:l~~,S i!l; water inj ec.tion v9~ume 9f 2MI-. rni:'l-lion ,barr.eJ_,s of water~, in. 198-S.~86;, ..

E. MANAGE~~N~ ~~bGR~M·

This,program covers the cost of the Field Contractor management staff's salaries a11d office expense, the cost of Uni~ accounting: and the City of Long Beach Unit Operator's billable costs. Monthly expenditures are sho~l) 1 ,on A~ti;lcl')fr,t~nt.~ 7A~c. if,I')~ ·1984.:..85 expenditures are estimated at $1.S. 6 million ex.eluding. prior year adj us tm~n.ts.

The pro.P<?~ed 1?.85~.~q. fyritjing· ~? $,_19,, !~~ .. 1()QO; is 9· p~r:~ent. of 'tfre Budget. pr.7v~ou~. YQ~r.s '~XP~pgi!:ldr~s ,~n~f",pnoposed, budge.t .. f.unds are .~ti9~ri .<?fl At~a.c;tif~1eflt.. 7 ~Q~· 7A1., 1 ?~~r;.till9i in tl:le •'1985~86 · · Budget ye_ar -~P,pro~~m~te~~, ,~4:.1 IJ!~~tli'gn, of i;li~· ,field· Contr.actor,•is en;~t~~~rin.~ ,s·~~f f '. ~· ~~~arde~ 3~i:id._1r.~l~.t~d1 .e~ee.n~ ~s ,,P,r.evious'ly , char·ged to other progra!Jls wiiJl· .. l;?e ,a ~Rart 9f. thl.'s. ;p~o.gtam; Funding fur Management Proj e·cts has 'been increased significantly for 19~ ~-:-8q .. ~o $-~ i 4 w·~)~iqri".pr,~~ii~.r:ily ·to pno~dd~ ·f on res entJoir relate~,. s ty<:f:!_.~s ~nd :IA!~ ter ;qua1i ty. iand 'treatment s tui:files'. 1A'l'so inc~µd~d, ~roe .. the c9ri~~nu:tpg ~~di tionaI c.os ti~ to .es·tablilsfi q~ data base ~anagement system .

• :1 F. TAXES, PERMITS AND, LAND RENTAL PROGRAM

...

This program contains $23,l~l,OOO ~r 10.8 pe~cent of the 1~8S-8$ budget to fund the vari'ous taxes I \tic~ns~s ar19 fees ,paid· bd• !~he'.,' count:i,es of Los Angeles,, the City ()f Long Bea\~h and 0th.er

.. : 91

r· ,,., .. " .. /f v :·

:1 ·,,

fl •'I , I ,., ,.1~ • ·.:<!Ir;: ~ l ;' ~· i[ .~ (J 1" \ ,'ii',./ ' ·":

CALENDA~ IT~~.NO. (CON'T?~ D:)

':"l\I/ • i· govennrriehtta'l .age.ncies.. i"fihe·· ·1984.:~8 S· 1perso·n'al prope·r ty•

1

and1

r: :. 1\ . mining ·r.1:1ffrt-5· ·:taxes anai the :Long Beach" oi11 rproducbion· lice11s·e

1\ ~ taxes will' tbe' $1.7. 5, mi11r:roh• ·and: ·$·3 1nil1lidn. The arinuaT 1\ expenditures are shown. o·n Attachmeht ;8. ' 1''~

'~ ~ ·~ " 1\" .· Expenditures for electr.ical energy. ar1e in fo.ur· .o·f the. ·sfx: · ·~ ~rograms with estimated expenditures' in the current year of · . $34 million ,-and .ov:er $37 mi11:ion in. ;198S-86 .. , E1lectri"cal· .. eoergy1 • <>':· ., is used primarily· for lifting· .oil and water to 'the .surfa'ce· •a"nd

1

'

; · for the d.njection of .the producecl\ an.c:I' makeup ·water. .It is " 1

c · ·> -estimated t.ha.t alm9st· ~60 million barre·ls :of ·fluid will be· " ' .. .,\· v 'handled in 1985-8.6.. E·~;ectrica'J: >energy expendi.tures ·and ra·te.s :.1 · '' ar,e shown on Attachment~· 9 and 10.. ·Large· .rate increases ·di.le ·.t·o••" ;;.:_~_ ~~~:t";" .... f..uel .. co.s_ts. are .not ant:i:cit-i~ted ·and fut.u·r·e cos·.ts. increases •i.i.f:i).!J'.<. " ·;,\. " ~epeiid- upon. ·fuiH 6il1 ·cos ts and: ·the· ·avai~labicJ:.f.ty· of :_hy_d.r.9~l!~.:c.~)'.!~1c

·:

1

•• • , po!AJer·. In .. 1,985-:-8.6; .expend,itures .. f.or elec.tr.i:ca:J.i ·P.ner.gy 'Wi'.l.tt \b'a· ,,. " r higher than 'the 1984-8 S· !level pr1imary due: 'to' a ·s .. pe·rcenq : L-• I

:

1

• ' increase in fluid volumes and· .smal'l! ·en·ergy ·r·at:e· ·~hcrea:seS•i ' : ·'' ·

' ~ . J .. ExhJbits. c~3• and c~4 ·of the· Pl'an and :eU.dgel: eH1Pi0:te' 'th.~ 1·~9.'5->ilbl • ,

1r}et income fo,r• the Uhft, ~i1tt)out cohsider~'t'i'on of ti..d·hdf~·l.IJ.· 1

"· :i

·"

)) ~1rofi·t tax,- uf:lll be·'$411 rnillion. Thi's is'b'as·ed·onflato:I:1, . · «iod gi:,·s. pri'c~s· and' a• ·con tinua·tio·n of 'the o'i;_i, r.ate · r.ekic'hed· in· ·, ·

the first part of 198S through June 1986. The UniC oil and grhss fluid production, water injection and 1Wat:er. 1

•• d.ft.'fd:stt»ry is ,shown on Attachments 11 and 12. ·

N/A.

IT IS\ RECOMMENDED' THAT THE COMMISSION: ,' , r

1.

2.

D~~ERMINE THAT NO SEPARA~E ENVIRONMENTAL DOCUMENT I~ NEbESSARY FOR THIS ACTIVITY'.BECAUSE IT IS PART OF THE

! I > .~ \~ •" ~ _ I" , I,, 4,~ t •, • • ( ·~ < < '

CONTINUING PROJECT ·ADDRESSED IN' THE EN'JI:RONMENTAL IMPACT REPORT FOR THE LONG· .BEAC~~. UNIT. O;J:t ANfJ '_ (;A~~-~P~~~f:_tbi~$.: '. ~ · , .. " APPROVED BY THE :COMMISSION IN1 APRIL! 1'97·3 Al\JD: ARE THEREffbRE

·ONGol'NG PROJEcris 1w1THIN' THE· MEANING of: i11-' .c.it.;· "AbM·: ": t · · · • ·

coDE :1,.soo1.(.s>, AND ,ooi:Nor- REQiJJ:RE THE f>REPARAtl:oN ·o·F'. £t!r'tti:'R1

'. •

AN EIR\;OR :A ;NEGATIV.E DEC~ARATION: , ~, . ; .. -~"'"'

·APPROVE THE "PLlAN· Of OEUELi>P~;,,ff AND ·6i>E~A:fI6JilS i\NO 01iliG~\;' ,LONG ~EA.CH·Vl\IIT·,. J.ULY L 1985 THROUGH' JUNE 30, 1966, AS··.·,, ADOP'.fiED ·BY. THE •CITY OF LONG BEAC.H CITY ·C60NCit· ON MARtHt ~i2'; 1984. . '

(.REVISED 04./.22/85)' -6.:.::

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A"TT ACHMENT 38 ST~Ti! or.c!-UrO~ll'~ r--'---_,...;----,.;__;......._..:,..__,..__;._ __ __,._s_rA_TE 1:ANOS COMMISSION

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