HomeMy WebLinkAboutRESOLUTION 1984-64
Suggested by: Administration
CITY OF KENAI
RESOLUTION N0. 84-64
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A RESOLUTION OF THE COUNCIL OF THE CI1Y OF KENAI, ALASKA ALLOWING
ONE YEAR EXTENSIONS TO THE DRILLING PERMITS PURSUANT TO KMC
5.35.080 FOR CANNERY LOOP UNITS $1 AND $3 WELLS AS REQUESTED BY
UNION OIL COMPANY OF CALIFORNIA.
WHEREAS, Union Oil Company of California was granted a Drilling
Permit for Cannery Loop Unit $1 well, effective January 17, 1979
and for Cannery Loop Unit $3 well, effective January 7, 1981,
both which were subsequently certified as wells capable of
producing in paying quantities, and
WHEREAS, the above-described permit for Cannery Loop Unit $1 well
was extended for one year by the City Council on request of Union
Oil Company of California on the ground that a majority of the
working interest share of gas in said units is bound by
contractual obligations to be delivered in kind to Pacific
Lighting Gas Development Company, and
WHEREAS, completion of plans for processing the gas by Pacific
Lighting Gas Development Company has still not been constructed
and by letter dated June 5, 1984, Unian Oil Company of California
has requested additional one year extensions of the
above-described permits.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, that the Drilling Permita for Cannery Loop Unit $1
and Unit $3 are hereby granted an extension for one year to July
1, 1985.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 20th day
of June, 1984. ~
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Tom agoner, or
ATTEST:
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J et helan, City Clerk
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~` Union Oil and Gas ~ ~` pion: Western Region
Union Oil Company of California
P.O. Box 6247, Anchorage, Alaska 99502
Telephone: (907) 276-7600
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Robert T. Anderson •June 5 1
o+nrin ~+a 6hna0ar , 984
Mr. Bill Brighton
City of Kenai
P. 0. Box 580
Kenai, Alaska 99611
KENAI LOOP AREA
State of Alaska
Request for Ex e- n~sion
of Drilling Permits for
the Cannery Loop Unit
wear 8111:
Union Oil Company of California as Operator of the Cannery Loop Unit and in
accordance with the requirements set forth by the City of Kenai, City Code
5.35.080, respectfully request a one-year extension of our Drilling Permits
for the Cannery Loop Unit ~1 and ~3 wells. It is our understanding and inter-
pretation that an extension, when granted, will extend the shut-in status of
these two wells through June 27, 1985.
We plan to continue operations within the Cannery Loop Unit as prescribed
under the State and Federally approved Cannery Loop Unit Plan of Development.
As cor~itioned by said Plan, we are currently conducting a market analysis to
determine the need for natural gas in Southcentral Alaska in conjunction with
additional manufacturing and export needs. Additionally, a detailed three
year work commitment, as described in said Plan, will promote the timely de-
velopment of the Unit. As a matter of record, both our wells, Cannery Loop ~1
and ~3 are currently shut-in due to the fact that a majority of the Working
Interest share of gas is bound by contractual obligation to be delivered in
kind to Pacific Lighting Gas Development Company.
We look forward to your favorable response to this request for extension.
v ry truly yours,
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• >jevin a. Tabler
Landman