Does oil company owe city of Seal Beach $9 million or more? City officials are drilling for answers

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If you look a mile or so off the coast of First Street in Seal Beach you might see a sailboat cruising by. What you won’t see are oil wells deep beneath the water’s surface, under the floor of the Pacific Ocean, pumping out crude.

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 well heads are located in the city; and out-of-city oil producers, where parts of the well are in the city but the well-heads 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”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.”

 

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If you’re standing on First Street in Seal Beach, you’re looking NW towards the San Gabriel River and Long Beach. Shouldn’t the lede refer to Ocean Avenue in Seal Beach.

Drill. Drill now. Nothing is more important than cheap and abundant energy. Nothing.

this state sucks

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Does this oil company owe Seal Beach $9 million or more? Officials are drilling for answersCalifornia Resources Corp. owes Seal Beach more than $9 million, according to the city. Officials say CRC needs a local business license for the company’s slant drilling operation. The oil company strongly denies that assertion. 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.
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