(A) A fee as set by City Council resolution shall accompany each application for a permit to cover the drilling of a new well and the redrilling of an existing well to recomplete it a different level or zone than the existing well hole.
('64 Code, § 16-14)
(B) A fee as set by City Council resolution shall be paid in two equal semi-annual installments on July 1 and January 1 for each well. In addition thereto, payable quarterly within 30 days after the close of each calendar quarter, an amount shall be paid for each barrel of oil or petroleum products production from such well during said calendar quarter, which amount shall be calculated as described in division (C), below, and which amount shall be not less than $0.41 per barrel, and not more than $0.52 per barrel. In the event of abandonment of any well, such additional amount shall be paid within 30 days after production from such well is finally stopped. ('64 Code, § 16-15)
(C) The amount paid per barrel as set forth in division (B), above, shall be calculated as follows by utilizing the average price paid for Buena Vista Hills crude oil (BV):
(1) The average price for BV will be determined by calculating the average price paid for each quarter from the available posted prices for the field (for example Chevron http://crudemarketing. chevron.com/crude/north_american/california.aspx). If more than one poster is available then the average price for each poster will be determined first for the calendar quarter and then the average of multiple posters will be calculated to determine the final average price. There will be no API adjustment of pricing for BV used in such calculation.
(2) The following table displays the tax rate to be paid for each barrel, based on the BV average price per barrel for the pertinent quarter:
Price per barrel | Tax rate per barrel |
and below $69.99 | $0.41 |
$70.00 $79.99 | $0.42 |
$80.00 $89.99 | $0.43 |
$90.00 $99.99 | $0.44 |
$100.00 $109.99 | $0.45 |
$110.00 $119.99 | $0.46 |
$120.00 $129.99 | $0.48 |
$130.00 $139.99 | $0.49 |
$140.00 $149.99 | $0.50 |
$150.00 $159.99 | $0.51 |
$160.00 and above | $0.52 |
(3) If in any quarter there are no official posted prices for BV available throughout that entire quarter, then the methodology used to determine the monthly average price per barrel of oil for the purpose of utilizing the table displayed above to calculate the tax rate to be paid per barrel shall be to determine the average price of the Wilmington Oil Field (constrained to the Long Beach Unit and the West Wilmington Oil field under the Unit Operatorship of the City of Long Beach), with an adjustment to 32 degrees API. The monthly averages in each quarter will be averaged to determine a single average rate for each calendar quarter.
(4) In the event that neither the BV prices nor the Wilmington prices are available, the city and the operator of the Santa Fe Springs Unit shall meet and confer in good faith to choose an alternative price index.
(Ord. 512, passed 1-13-77; Am. Ord. 650, passed 6-28-84; Am. Ord. 726, passed 12-22-87; Am. Ord. 1044, passed 11-5-13)