HomeMy WebLinkAboutOrdinance #2321 ORDINANCE NO. 2321
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING SECTIONS 5. 32.030, 5. 32. 040, 5. 32. 060,
5. 32.110 , 15.08.290, 15.08. 350, 15.12. 050,
15.12.090, 15.12.100, AND 15. 20.200 OF THE
HUNTINGTON BEACH MUNICIPAL CODE REDUCING AND
RESTRUCTURING CERTAIN NATURAL RESOURCES PRO-
DUCTION FEES
WHEREAS, Ordinance No. 2298, adopted June 29 , 1978, pro-
vided for various natural resources production fees; and
WHEREAS, the City Council now desires to reduce and re-
structure certain fees and, in particular, desires to provide
for an annual increase or decrease in production fees, based
on the consumer price index, in lieu of the alternative tax in
said Ordinance No. 2298 [which provides for fees of two percent
(2%) of the gross market price for oil or gas produced if said
two percent (2%) exceeded ten cents ($.10) per barrel]; and
WHEREAS, the City Council finds that the annual increase
or decrease based on the consumer price index in lieu of the
alternative of two percent (2%) of the gross market price does
not constitute imposition of a special tax and does not consti-
tute a new tax or a tax enacted for the purpose of increasing
revenues; and
WHEREAS, the City Council desires to eliminate a tank tax,
reduce well fees, and reduce gas production fees provided in
Ordinance No. 2298,
NOW, THEREFORE, the City Council of the City of Huntington
Beach does ordain as follows :
SECTION 1. Section 5. 32. 030 of the Huntinton Beach Municipal
Code is hereby -amended to read as follows :
5. 32. 030 License--Fees. Every person required by this
chapter to have a license shall pay to the city of Huntington
RCS:ps
8/30/78 1.
Beach the fees hereinafter provided, in the manner hereinafter
provided:
(a) Prior to the issuance of a renewal of such license, a
base annual fee of one hundred dollars ($100) per well, which
shall apply to each well producing oil or gas, or both.
(b) For the period commencing July 1, 1978, and for each
succeeding fiscal year, and in addition to the base annual fee,
an amount equaling the following:
(1) Ten cents ($ .10) per barrel of oil produced and
sold per well per quarter, except for stripper well crude oil.
(2) Eight cents ($ .08) per barrel of stripper well
crude oil, as defined and used in the Emergency Petroleum
Allocation Act of 1975 as amended and recodified (15 U.S.CA. §757)
and regulations promulgated thereunder, produced and sold per well
per quarter, less a credit of twenty-five dollars ($25) per well
per quarter. No carry-over of credit shall be permitted.
(3) One cent ($ .01) per thousand cubic feet (MCF) of
dry or wet gas, produced and sold for delivery outside the
Huntington Beach oil and gas field.
Further, in lieu of the alternative tax of two percent
(2%) of the gross market price provided in Ordinance No. 2298,
the taxes imposed by this subsection shall be increased or de-
creased annually as of July 1 of each year, commencing July 1,
1979 , in an amount equal to the increase or decrease from the base
index in the then latest available consumer price index, as pre-
pared and released by the United States Department of Labor Bureau
of Statistics for the Los Angeles-Long Beach area. The last in-
dex published for the month of June, 1978 shall be deemed to be
the base index for the purposes of this subsection.
SECTION 2. Section 5 . 32. 040 of the Huntington Beach
Municipal Code is hereby amended to read as follows :
5. 32. 040 Base annual fee--Due when. The base annual fee
shall be due and payable on or before July 1 of each fiscal year.
Such base annual fee shall be delinquent on the day following
such due date; provided, however, that for the period beginning
July 1, 1978, every person required by this chapter to pay such
base annual fee shall be granted a grace period in which to meet
the requirements imposed by this chapter, and no penalty shall be
exacted therefor for the period up to and including October 31,
1978.
SECTION 3. Section 5 . 32. 060 of the Huntington Beach
Municipal Code is amended to read as follows :
2.
5, 12. 016 Quarterly payments--When delinquent . All payments
for all quarters, as required by this chapter, shall be delinquent
on the day following the due date for any such quarterly payment ;
provided, however, that the quarterly payment due October 1, 1978
shall not be delinquent until October 31, 1978.
SECTION 4. Section 5 . 32.110 of the Huntington Beach
Municipal Code is amended to read as follows :
5.32.110 Production statement required. Every person re-
quired to have a license under this chapter shall on or before
the thirtieth day of January, April, July, and October file with
the city clerk a statement setting forth such information as the
city clerk shall require, including:
(a) The name or other identification of all oil and gas
wells located in the city operated by him during any quarter;
(b) The number of barrels of oil produced from each of
said wells during such quarter; and
(c ) The amount of wet or dry gas measured in thousands of
cubic feet (MCF) produced for delivery outside the Huntington
Beach oil and gas field, from each of said wells during such
quarter; and
(d) The computation of the amount of fee with respect to
such production due the city. The statement shall be signed by
the person required to have the license, or by a managing offi-
cer or agent thereof, and shall include a declaration substan-
tially worded as follows :
"I declare under penalty of perjury that I am authorized
to make this statement , and that to the best of my knowledge and
belief it is a true, correct and complete statement made in good
faith for the period stated, in compliance with the provisions of
the Huntington Beach Municipal Code. Executed at
California, on ft
Such statement shall not be conclusive against the city, nor shall
it be conclusive as to the information set forth therein, nor shall
the filing of such statement preclude the city from collecting by
appropriate- action any additional fee that is later determined to
be due and payable.
SECTION 5. Section 15..08..290 of the Huntington Beach
Municipal Code is hereby amended to read as follows :
15. 08.290 Rework. "Rework" shall mean any work carried on
within a bore hole at the ground surface of an existing well, in-
cluding recompletion within the existing bore hole or by a side-
track operation beyond the extremities or sides of the existing
bore hole casing, and replacement of well liners and casings.
3.
However, "reworking" shall not include "well servicing. "
SECTION 6. Section 15. 08. 350 of the Huntington Beach
Municipal Code is hereby amended to read as follows :
15. 08. 350 Well servicing. "Well servicing" shall mean the
maintenance work performed within any existing well bore which
does not involve drilling or redrilling.
SECTION 7. Section 15.12. 050 of the Huntington Beach
Municipal Code is hereby repealed.
SECTION 8. Section 15.12. 090 of the Huntington Beach
Municipal Code is hereby amended to read as follows :
15. 12.090 Fees set by resolution--Fee payment date. Fees
shall be required for the issuance of each of the permits re-
quired pursuant to this chapter. Such fees shall be set by reso-
lution of the city council. Said resolution shall also determine
the conditions of payment and collection of the required fees .
The annual inspection fee shall be due and payable on July 1
of each year and, if not paid, shall be delinquent on August 1
of the same year.
The waste water annual permit fee shall be due and payable
on January 1 of each year and, if not paid, shall be delinquent
on February 1 of the same year.
The drilling, reworking, and activation fees shall be due
and payable at the time of application therefor.
SECTION 9. Section 15.12.100 of the Huntington Beach
Municipal Code is hereby amended to read as follows :
15. 12 .100 Permit procedure. The application for a drilling,
reworking, or activation permit shall be obtained from and filed
with the department . Said application shall contain the following
required information:
(a) The complete legal description of the property;
(b) Plans and engineering specifications of structures,
drilling derricks, drilling masts, tank and high-pressure systems
regulated by this code. Applicant need not file plans and engi-
neering specifications of standard derricks, masts and tanks when
such standard plans and specifications are already on file and
approved by the department;
(c) A corporate surety bond in conformity with the provisions
of this chapter.
(d) A statement signed by the applicant under penalty of
4.
perjury declaring that he is duly authorized to sign on behalf
of the operator and file the application and that the information
contained in the application is true and correct .
SECTION 10. Section 15 .20.200 of the Huntington Beach
Municipal Code is hereby amended to read as follows :
15. 20.200 Notification of Installation. Prior to the in-
stallation and operation of any oil field recovery heater, the
person or entity proposing to install and operate such heater
shall so notify the department either in writing or by telephone
notification to a number provided for such purpose. All heaters
shall be installed and operated in compliance with the applicable
provisions of this chapter.
SECTION 11. The fees provided in Section 1 of this ordinance
in the amount of ten cents ($ .10) per barrel of oil, eight cents
($ .08) per barrel of stripper well crude oil, and one cent ($ .01)
per MCF of gas shall be due for the period commencing July 1, 1978,
in lieu of the alternative of ten cents ($.10) per barrel or two
percent (2%) of the gross market price, whichever is greater, pro-
vided in Ordinance No. 2298. Neither the tank fee nor the excess
over $100 per well in well fees provided in said Ordinance No. 2298
[amending Section 5 .32. 020 (a) of the Huntington Beach Municipal
Code] shall be due , nor shall any penalties be exacted for failure
to pay same.
SECTION 12. If any provision of this ordinance is for any
reason held to be invalid or unconstitutional by a court of compe-
tent jurisdiction, such decision shall not affect the other pro-
visions or remainder of this ordinance or any prior ordinance, and
if this ordinance or any provision hereof is found invalid or un-
constitutional, this ordinance will not have the effect of repeal-
ing any portion of any prior ordinance amended by such invalid
or unconstitutional provision.
SECTION 13. The City Clerk shall certify to the passage of
this ordinance and shall cause same to be published within fifteen
days of its passage in the Huntington Beach News , a newspaper of
general circulation, printed and published in the jCounty of orange.
PASSED AND ADOPTED by the City Council of the City of
5.
Huntington Beach at a regular meeting thereof held on the 18th
day of September, 1978. L
fJ yw
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
REVIEWED AND APPROVED:
C4;24 y Administrator
7
6.
Ord. No 2321
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach and ex-officio Clerk of the
City Council of the said City, do hereby certify that the whole number
of member$ of the City Council of the City of Huntington Beach is seven
than the foregoing ordinance was read to said City Council at a regular
meeting thereof held on the 5th day of September
19 78 , and was again read to said City Council at a regular
meeting thereof held on the 18th day of September 19 78 and
was passed and adopted by the affirmative vote of more than a majority of
all the members of said City Council.
AYES: Councilmen:
Pattinson MacAllistgr. Bailey. M ndic Siebert, Shpi3kman
NOES: Councilmen:
None
ABSENT: Councilmen:
Thomas
op
City Clerk and ex-officio ,Clerk
of the City Council of the City
of Huntington Beach, California
Lee
a M. Wentworth CITY CLERK of the City of
-ton Reach and ex--':-;fc;o Clerk of the City
Council, d.� h r b y c t o ce has
ra:
u ash d n the Jews on
r'a -'2 N h *r Ir c` said C...........ALICIA M WENTWORTH
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City Clerk
f�11 _
• Deputy City Clerk