Request for City Council
Action on Oil Wells
Owned and Operated by
the City
Scott M. Haberle, Fire Chief
Thomas Walker, Evans and Walker
City Council Meeting – February 20, 2024
Agenda
• Action to be taken
• Background
• Rationale for abandonment and lease restoration
• Process employed to obtain bids for work
• Results of bidding process
Civic Center Wells
Acquired as a part of City acquisition of the Civic
Center property in 1971. Uneconomic since
2014 and idle since 2021.
Civic Center 3 Civic Center 2 Civic Center 1
Miley Keck Tank Farm
Located ~1 mile north of the Civic Center
at 19081 Huntington Street. Rented from
Tank Farm LC through October 2024.
Action
Abandon wells and restore the two sites
Background
Production – Civic Center
Civic Center lease averaged
16.4 barrels of oil per day from
January 2010 through June
2017 (prior to loss of pressure
support)
Civic Center lease averaged 5.5
barrels of oil per day from July
2017 through November 2021
(after loss of pressure support).
This is a decrease of 10.9
barrels of oil per day.
Rationale
Average Monthly Revenue, Expense, and Net Profit
(Lease lost money from 2015 through 2021)
(20,000.00)
(15,000.00)
(10,000.00)
(5,000.00)
‐
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
2015 2016 2017 2018 2019 2020 2021
Gross Revenue, $ Expenses (including CalGEM Assessment and Royalty Payment), $ Net Profit, $ *Does not include staff cost.
Process
• Divided project into 3 components:
• Remove Miley Keck Tank Farm and restore lease (site)
• Remove Civic Center equipment and partially restore lease • Abandon Civic Center wells and complete lease restoration • Submit Request for Proposals for 3 components
• RFPs released August 2, 2023
• Job walk on August 16, 2023
• Receive bids on September 15, 2023
• Analyzed bids and requested clarification from bidders • Determined most responsive bidders and prepared Request for City Council Action
Results
• Miley Keck Tank Farm Removal and Site Restoration
• 3 firms submitted bids
• American Integrated Services, Inc. was the most responsive bid der • Vendor submitted cost of $189,932 in the RFP
• Proposed Costs with 15% Contingency: $218,422
• Civic Center Equipment Removal and Partial Site Restoration • 2 firms submitted bids
• O.C. Vacuum, Inc. was the most responsive bidder
• Vendor submitted cost of $405,514 in the RFP
• Proposed Costs with 15% Contingency: $466,341
• Civic Center Well Abandonment and Final Site Restoration • 2 firms submitted bids
• Excalibur Well Services was the most responsive bidder • Vendor submitted cost of $1,099,770 in the RFP.
• Proposed Costs with 15% Contingency: $1,264,746
• Time & Materials contract which may require additional conting ency funds to account for unknown well conditions
• Estimated total cost will be $1,949,498 when including a 15% contingency.
Questions?