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HomeMy WebLinkAboutMINUTES - 12022014 - C.60RECOMMENDATION(S): APPROVE and AUTHORIZE the Chief Engineer, or designee, to execute a three-year Subsurface Oil and Gas Lease beginning December 1, 2014 and ending November 30, 2017 and EXERCISE any options to extend the lease between Sunset Explorations, Inc., and the Flood Control and Water Conservation District (District) for a maximum of thirty-five years, for approximately 46 acres of land in the unincorporated Antioch area commonly known as Upper Sand Creek Detention Basin (Basin), for the exploration and extracting of oil and gas, under the terms and conditions set forth in the lease pursuant to Government Code Section 7051. Project No. WL83PV-FS1200128 DETERMINE that the lease will not substantially interfere with the public use of the Basin. DETERMINE that this activity is not subject to the California Environmental Quality Act (CEQA), pursuant to Article 5, Section1 5061 (b)(3) of the CEQA guidelines; and, DIRECT the Director of the Department of Conservation and Development to file a Notice of Exemption with the County Clerk; and, AUTHORIZE the Chief Engineer, or designee, to arrange for payment of a $25 fee to the Department of Conservation and Development for processing, and a $50 fee to the County Clerk for filing the Notice of Exemption. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/02/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: David Krammer (925) 313-2227 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 2, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: C. 60 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:December 2, 2014 Contra Costa County Subject:APPROVE a Subsurface Oil and Gas Lease with Sunset Explorations, Inc. and related California Environmental Quality Act actions, Antioch area. FISCAL IMPACT: 100% Applicant Fees. BACKGROUND: Sunset Explorations, Inc., has secured oil and gas leases from the properties adjacent to the Basin and requires a subsurface lease from the District in order to include the Basin with the adjacent properties and extract the oil and gas from no less than 500 feet beneath the surface of the Basin. An upfront payment of $15,513.00 has been received for the first year of the lease. During the remaining term of the lease, the District will receive minimum annual royalty payments of $4,500 as well as additional royalty payments of 6.67% of the gross proceeds of all oil and gas produced from the Basin above the minimum annual royalty payments to Flood Control Zone 1 Funds. CONSEQUENCE OF NEGATIVE ACTION: Failure to approve the Lease may result in District not receiving royalty payments. CHILDREN'S IMPACT STATEMENT: Not Applicable. CLERK'S ADDENDUM RELISTED to a future date uncertain. ATTACHMENTS Oil and Gas Lease CEQA Documents