MINUTE 'ITEM 4/29'/8'1 Pinson G. 09:..02.2 W 72.Ti' - ,

17. CITY OF NE';J.POR'l: BEACH ''I)EVELOl'MENT C)F' OIL AND GAS RESOURCES ON TIDE A-'KJD SUI~MERG~D 1.A]IDS GRANTED IN fi:RUST -:-

During conside:i:at'.f.ot:1 of Cal1~ndar Item 17 attached, Mr .. Harley Pinson, Staff Counsel, stimm.;i'I'ized the ,tr?ns·(~tipn. He stat.ed it ·was the staff 7 s 1:ecommendation ·that the ~ ?mmissi.pn appro:Ve the Jo:i.nt Powers Agireement.

Mr. JoE~l Kuper'berg, Law firm of Rutan, oc Tucke~, representing the Ci1:y of N~wport Beach, appeared ancl· stated that the Cit;y had unanimously adoJ?ted a resolution m.tthorizing the Agreettj.ertt~

Mr. Robert Buchanan~ representing Armst'.!=ong Petroleum Company 1

appeared in opposition to the staff's 1cecommendat:ton. It was their belief that 1.;) s,ince there is litigation pending on th;s ~tter, the app:i;C"'p'tiate place ,for this issne to be settled is in the courts; and 2) because legislation is curren'tly pendip:g to address this proo1=em. th:i:.s proposed action is improper ani~ perhaps illegal.

Mr~ Richard Del ,Getcio, attorney repr~se,nting Armstrong Petr.i:.tleum Company, appeared in oppo,si.tion. His main pul.'Pc;>se in appeari;tig

t) was tCJ all~~e ,some legal problems witl'l the A~treement:

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1. The City ~loes not; have the· pc>wer t:o indeyendentiy do what ii: seeks to accomplish unde:r ehe Agi#,ee!'lent;

2. Thei·e are seriou~; questions with respec1;: to file authority of the State Lands. ·cOmmi.ssion to cou.denn_t proj)erty 'in corl.n!~cti'9n with the production 0£ crud!~ oil from ,the lands w:t1ich have been granted to the City.

li.1 ,~d,clj.tioh to the above legal points, Mr. Del Gercio stated the Commission wou!ld be s2tting a p-recedent it:i allowing: a g:~a.ni.e~ to en.gage in prodtj:ction activities.

Commission~Alternate Davi.d Ackermcin Pointed o~t that it was nevar thci i:ctent c>f th~ State or the~ Ci:ty to actually operate the facilitie~s on a long-term basis, but that the: operation w0u.id be l!~ased out. H~ indicated Assemblywoman 11arian Bergeson ·was receptive tc1· amen1~ing 'her l~gislation to sp~cifically inc].t.'1de language that would clarifj that understanding. It was onl:y sugg1~sted tl~at thi= City '''F the State· would operate the faciliti•es nn an interim basis pendi~g the r~solution of this dis'Dutt:L The Commission, therefor~·, iµstructed the staff to meet with Assemblywoman tergeson an,d the C£tv to cl.::;;r.ify that: understandi·ng and report back to the Commission.

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MINUTE. ITEM NO. 17 (CONTD)

Mr. Del Gercio suggested that a fonnai writt~n opinion from the Attorne•1 Ge"1.eral' s Office be written to ascertain whether or not the Joii:it PowC:i:-s Agr·erment is valid when one. of the parties invo1ve<i does J:iot .h:tve 'the ·power that ~-s sougr .. _-.t -~o be jointly exerci.s.ed. 'Roweyer:, Mr. Coey ~.tated eveu,,µ 'the At.torne:r General's Q'£fice ;.;sued a formal o_pinion, the question would st:ill ha;1,1:e to 'be resolved through t:qe courts.

At the conclus:ion o~~ the q:i:scussion .. Mr. N. Gregory Taylor, Assistant Attorney C\eneJ;al, pointed out that the descriptions of the pr9p ert:r in the complain:t overlciP' an area claimed to be grantea to _the -~i.ty-, ap.d it '!YO~ld. therefor~ be necessary to amend tqe Cbmrirl.=ss-ion' s und'ers-'f:anding i!'.lith ~he City to make sure tho~e issi:tes a~e ·pf.esente~ in that litigation. He stated 111any. 0£, the rights Mr. Apnstrong clai"D,ls' i;-o hold may already be o-wned by the City.

In .!.igh1: of Mr. Del ·Gercio •;s contentions, Cornmission-:Alterna1~¢, S1· ;:i.11..T'le Morgan asked[ the s~aff if they felt they n~d the powi_aii to condemn t:he propeirty. }fr. Pinsoll.. indic.ated it was their opinion they d;d. J::ased on. that advice, M& .-. Morgan n;oved and Mr. Ackerman s.econd'eid that ,the resoluti.i:>n as pres~nted in Galenda:r Item 17 was· adopt¢d by a vo~e or 2~0.

CALENDAR ITEM

CITY OF ~EwPORT BEACH DEVELOPMENT 'OF 16i L AND GAS RESOURCES

ON TIDE AND SU~MEl:<GED LANDS GRANTED , ,"[N TRUST

4/81 G C.9-02.2 Pinson

At the March 5, 1981 meeit;,_ing the Commission acted on ~ m.~mber of recomme:ndations concerning. deveJopm~,nt of oil and gas resources under granted tide anq submerged lands offshor~ of Newport Beach. The City of Newport Beach is the trustee for the~e public lands. Extraction of oi1. and gas from tbe offshore )',ands had cea.sec;l January 25, 1'981 at the expiration of a contr..act between the· City and Armstrong PetJ;"oleum Company.

The Commission authoriz,~d the s\:aff ~ the office of ·the Attorney GEmeral and th1~ City of ~e:<Nport Be;;i.ch (as Trustee for the Stat;e) to take such steps as a·re necessary to. ac4uire interests Ln cer.taii:>· parcels which abut the C:lty boundary (Recornm~!ldation 3, Cale:~d;:icr Item 25). Counsel for the Conimission and Counse·1 for the City have dra,fted a Joint Powers Agreement for the Acqu_isi.t::i,cn and Consti:-U9'C.:icn of T.idelands Oil Pumpi:ag and Storag1~ l:~acil:ities. The City Couttcil approved the Agreement at its ·regul~r mE!eting on April 13, 19~1.

The Agreement provides for the City to act as the Joint Powers Agency to conduct an eminent ~oma±n a'ction. The action would be l·rought pursuant to the -Gornrni-s~ion' s. power under Section 6808 of the Public Resources Code. The purpose of the action wouJ.d be ,to acquire and- construct certain upland, sur.face faciliti.es for the drilling· for, production, storage and transportation of oil, gas or other hydrocarbon substances from •the public trust a.re~.·

The City would c1:mduct all lega-1 proceedings,, subjec~ to prior consul tati,;:m with the Commission's Gh-ief Counsel; would act as leait Agency under CEQA.-; would bear the entire cost of aciminister.ing the agreement:,; and would indemnify and hold the Commission harmless fro1n a·ll claims, damages and c9sts. The C~ty Tr1;asurer would =:erve as treas~rer for the purpose of administering the Agreement.

The Commission would assume no liability for any costs incurr·:!d :~n the <:idministration of the Agreement.

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f CALEN:>AR ~•\:.iE

MINu-c ". --L ·~ --

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CALENDAR ITEM N(t. --i..z.CCCTNTD)

Title to any interests condemned by the Jo~nt Powers Agency would be taken in .the na.me of th~ Joint Powers Agency which thereafter would c~onvey title to the City. By a separate letter of understanding th.:?se interests will become a crust asset and be subje~ct tro the· terms of the State's grant to the City .

The Agre?eme~nt wouJ.d remain in ef fecc until the acquisition and construction of the descri.bed surface facilities is completHd.

EXHIBITS: A. Sitt? Ma,p.

B. Parcel Map and Legal Descriptions.

IT IS RECOMMENDED THAT TilB COMMISSION:

1. APPROVE THE JOINT P•:)WERS AGREEMENT ON ·FILE IN THE OFFICE OF THE COMMIS-SION.

2. AUTHORIZE EXECUTION OF THE AGREEMENT.

3. AUTHORIZE THE STAFF TO TAKE SUCH ACTION CONSISTENT WITH THE AGREEMENT AS MAY BE NECESSARY FOR !TS IMPLEMENTATION.

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EXHIBIT "A" G 09-02.2

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~'tiill'!!lliil~B~"i'f:'ar,.~ :G 09-:0'.L 2

CAt.ENPM! PAC='

EXHIBIT 'B' G 09-02.2

EO:B£B.T BE:IN,, WILLIAM FROST & ASSQeJATES 1401 Quail Street ·

Newport Beach. California 92663 ·~·

DESCRIPTION

Oxbow C>il .Prciduction Condemnation

March 31, 1981 JN. 20552

Paga '1 91~ 3

All thoae cert&ip lands s1ituated partly in the City' .of Newport Beach ·n.:nc1 partly in the urrlncorporia.ted t«~rritory of the County of Orange. State of California.. moria particU:ta;-ly described a.s·follows:

PARCEL 11A-1 11:

Beginning at the · no~herly terminus of that certain course in 1h.e existing Newr lrt Beach City Boundary shown as "South 4°.31 133" ~ast 439. 65 feet11 on a map filed in ~ock 65. Eages 31 through 36 of Reco1'Ci~ of Surveys in the Office~ of th~· County Recorder·.of said. ·CoUn.fyj ther,tc1? South 77° 00103.: West 81'. 09 feet to the centerline of the ,Santa Aria Rhier as per Superior Court Ciase No. 2279·'l· as sn0.Y!n . on said map filed ~ Book 65" Pages, 31 throufih :3~ of Regords of Surveys; then~e aicnp s;Hd centerline South 1°38110 Weat 511._88 ·feet and South 1"0°47'51'. El!l.st 116. 83 feet to a point, O~; a non-tange?t curve lll the northerly line Of Wl~st Coast Highway' ccnc;:ave :northerly .J!lo having a rad~lls of 9 50. 00 ·fee~~ a +'3-dial line £.:ropi said ppint .bears, ·North 19° 21 1-2 711 East: thence ep.ste;;rly along said curii1e and ~,p~e-rly line 205. 31 feet through a central a*gle of 12° 221 5711 toi the bcni:o.dary )!aie of the land described ·in the pazjcel. entitled "ExBIBIT !I. T'\:) sUBSti~ :.-1;.cE EASEMENTn recorded -in Bpi;>k 2627, .Page 86 1:>f Offi.ciEtl.Recc;irds of sa.id County; the?ce non-tangent·flfo* said curve alon;g said b1:>und~ry· line ~uth 20° ll 142n East 1.00~ 94· :feei; ·to the northwester.Ly termilius of the course shown as ".North 60° 26'28 11 w:est 576. 24 feetn all!:i ~ntitle1~ 11No:r..h line of Mean High, Tide, ~ec~ 9/lS/!28, BK. 201-253, (). R., Ora. Co. Sup. Court Case No. 2368611 on a li~p filed inBook 27~ P~ge 47 of 'Records ¢f Surveys in the Office. of ·.fue Cotmty Recorder of Orange County~ California; thence along s_aid afo;re­mentioned course and bi;:>undary line South 60°2811311 West 352. 53 feet: thence leaving said (;course and boundary line No~ 12" 59' 5711 \Vest 441. 3 3 feet; thence South 77° 001 03 11 West; 6 0. 00 feet: thence North 12° 59 1 5'7 11 West, 599 .• 4,9 feet to a- line which bears North 77° 00' 03" East· from the POINT OF BEGINNING; thence South 77° 00 103 11 West. 181. 43 feet to the POINT 10F BEGINN:rNG.

CONT.AlNING 6. 889 Ac·res, m.ore or less

CALE•:CAR P~Cf

lMINtlTE p,.o,:; .

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Robert Bein.. William Frc1st & Associates Ch:bow Oil Produc:::tion Coz:tdemna:tion

PARCEL "B-1 11:

March 31. 19131 JN 20SfS2

Page 2 of'3

Begwning at a P"int in that certain course in the existi;ig Newport Beac:h. City Boundary shown as IPSouth 68° 2214511 Eaf..t 756. 00 feet11 on.a map iifod in Book 65,. Pages 31 th:rough 36 of. Record~, of .Sµrveys in the 0!~5ce ·of the County Recorder of ~:a.id Cpunty distant ithereon- South 68°2214E·" East 280. 00 feet from the northweste.rlv terminus thereof; thenc!e South 21° 37'15" V/est 61. 43 feet to the 6~rtterline ·of "ihe Santa Ana '.Etiv~~r­as per Superior Court Case No~ 2~'197 as shoy;n on said map filed:· in· Book 65. Pages '31 throt:tR"h 36 of Rec.o.rds of Surveys; thence along· sa,id• centerline South 66° 42'2CI East 400.-~~' feet; thence leaving· said ·centeir- · line North 21° 3'1'1511 E1111st 323.11 'iiiirlJ thenc_e- Ncnh ea• 22'4611 Wee.t, 400. 00 feet to a line which bears North 21° 3,711·511 East from the POINT OF BEGINNING; thence South 21" 37i15" West 250. 00 feet to· 1the POmiT OF BEGINNING. ,

CONT.AINING 2. 913 Acres. more or less

A strip of land 30. 00 fe1~'t in width •. the centerline of which is described as :follows:

Beginning at a point in that certaµi, course tn. ,tpe centeTliri€ of a 30 •. 00 foot easement fo.r sewer and road- pu..,.,,oses per .surierior Court Case N'o. 24769 ahown as ":N'orth 7t>0 321 2311 West. 1596. lB feet' on a map.filed.in Bc1olt 65.., Pages 31 thl'!:>ugh 36 of Recc)rds of Surveys in the Office of the Comity Recorder of said County distant ~ereon South 76°3212311 East 148. 00 f!~et from the northWE~Sterly termim;ts thereof: thence along :Sai~ centerline a~, shown on said record of ·su:i~ey map through ·the follow.mg coursi~sf South 76°32'23" '.East 1~148.18 feet; thence South 32'»55145" Elil.st 521.40 feet: t:O:ence South 27°1511511 East .595. 00 feet: therice South 14° 3614511 East 264. 00 feet; thence South 5?33.145!' Wiest 21 7. 00 feet; thentj;e South 12° 591 5711 East 58 5. 03 feet to the r.orth~este.rly line of the hereiIJ.i~bove described Parcel "A-l 11 ., =

CONTP..JNING 2. ~10() Acre~s. more or less

PARCEL 11D11:

A strip of land ~.o. 00 fe~et in width, the centerline of which is described as follows:

Beginning at a point in that c1~rtain cqurse in the centerline of a 30. 00 foo't easement foi:- sewe1:- and road purposes pet Superior Court Case Ne. 24769 shown as ''.North 76°32123 11 W~st 1596. 1'8 feet11 on a map filed in Book 65~ Pages 81 thrc•ugh 36 of Records of Surveys in the Office of the County Reco1~e:~ of sa.id County distant thereon South 76° 32 1 23 11 East

Robert Bein# William F:rost & .Associates Oxbow Oil Produc;tion C9ndem~tfqn.

March 31. 1981 JN 2C5;i2

Page 3 of 3

168.16 feet from the northwesterly terminus thereof: thence South 3°18'27

11 East 303. 61 feet to a ·tangent curve concave westerly and

having a radius of 515. 00 feet; thence southerly along said curv:e 202. 03 feet through a ceµ:::ral angle of 22° 28f3"7"; thence tangent·from ·Bai~ curve South 19°10110" ~Vest 445.35 feet to the northeasterly line of the hereinabove. desc1:-:ibed Pa·-'Cel ":E:".

The sidelines of said s:trip of land shall be lengthen~d or shortened so as to terminate .nc1:t"therly in the s.:>uthwesterly line oj sa.:;..:i 30. 00 foot.ease ... me~'t for sewer ar..ii road purposes and southerly in said northeasterly line of the hereinabove· descr:lbed Parcel ·"B". CONTAINING o. 6~~4 .AcrE!S, mOrEl or less

PARCEL "E":

A strip of land 30 .. 00 feet in width, the centerline of which is describeq as follows:

Beginning at the 1southea.sterly terminus of a course in the centerlin~ of a 30. 00 foot easei::nent ·for sewe:r· and road' plirpos~s per Pliper.i:or Co~rt Case No. 24769 i:d1own as "Norl:h 76°32123 11 West 1·596.18 feet" on a ma}> filed in Book 65,. ~?ages 31 through ·ss of Records of ~urveys in the ·Office· of the County Re·corder of said. Orange County; thence· North 28° 40 1 56

11 West 48,l. 09 feE~t to a tangent curve concave easterly and having a radius of 280. 00 feet: thence northwest~rly along said curve 173.49 feet through a cen.tral ang~e of 35°30100".

The sidelines of :;aid strip of land shall be lengthened or shortened s_o as to terminate sou:therly in the r~ortheasterly 14e of said 30. 00 foot ease­ment for sewer and. road purposes.

GONTAINING O. 451 Ji .. cres,. more· or less

SUBJECT TO all Covenants,. Rf:ghts,. Rights-of-Way and· Easements of Recc>rd.

E2i.""HIBIT 11

B" att~c:hed alld by this reference made a part hereof.

CALENDAR Pl.CF:.

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