June 28, 2019, letter from Seal Beach City Atty. Craig Steele to CRC
The May 1, 2019 letter from Michael Mills, outside counsel for CRC, to Seal Beach City Attorney, Craig Steele The city code outlines taxes for three types of oil operations: non-production; in-city producers, where the wellheads are located in the city; and out-of-city oil producers, where parts of the well are in the city but the wellheads are outside municipal boundaries and accessed by slant drilling.
“Assuming that the city is correct that the ocean bottom meets the legal definition of ‘real property,’ then I would agree that the city should be demanding payment for past due oil production taxes.”But Goldberg questioned the amount being demanded, saying it isn’t based on the rates charged to oil producers operating wellheads outside of city limits.
“That contract specifically included discovery of any company, like CRC, which had wellheads outside of the city but slanted drill into the city,” Goldberg wrote. But he did say his concerns from last year remain relevant, especially when it comes to the potential costs to the city. “CRC will continue to work with the city to determine if there is an amicable way to resolve this disagreement,” Mills wrote in a recent statement. The city also expressed a desire to avoid litigation, calling it a “last resort.”
They just got finished paying like 900 million out. California needs oil production and if you drive a car that uses gas you better not me. CRC is one of the last big oil companies trying to work here in CA which is the hardest state to develop oil and gas. Fuck seal beach.