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HomeMy WebLinkAboutMINUTES - 05171988 - 1.2 TO: BOARD OF SUPERVISORS FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR DATE: April 25, 1988 for May 17, 1988 Agenda SUBJECT: Eden Plains Road Oil and Gas Lease, Byron Area Project No. : 0674-6U4200 SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION I. Recommended Action: Approve subsurface Oil, Gas and Mineral Lease with Maxus Exploration Company and authorize the Chair to sign said lease on behalf of the County. II. Financial Impact: The proposed Lessee has paid a $250 processing fee to the County. The lease provides for a $30 per acre rental fee and a one-sixth royalty on production, if any. The primary term of the lease is for 5 years. III. Reasons for Recommendations and Background: The lease is basically for the production of natural gas located under a 2.41 acre portion of Eden Plains Road near Byron. No surface rights are involved. The State Lands Commission on April 12, 1988 approved this lease for exemp- tion from competitive public bidding requirements pursuant to Sections 7052 and 7053 of the California Public Resources Code. C.E.Q.A. and .General Plan Conformance requirements were complied with during the approval process for the offsite well drilling location. IV. Conseauences of Negative Action: Loss of the revenue as outlined in Section II above. Cont'd on Attachment: yes Signature: Recommendation of County Administrator Recommendation of Board Committee Approve Other Signature(s) Action of Board on MAY 1714HR Approved as recommended X Other Vote of Supervisors X Unanimous (Absent ) I HEREBY CERTIFY THAT THIS Ayes: Noes: IS A TRUE AND CORRECT COPY Absent: Abstain: OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON Orig. : Public Works (R/P) DATE SHOWN. cc: Co. Administrator Aud.-Contrl. (via R/P) P.W. Accounting ATTESTED MAY 17 1988 PHIL BATCHELOR, Clerk of RF:rs the Board of Supervisors BO:al0.t5 and County Administrator BY uhA 1A e DEPUTY