s,, e oti:trd, iii;ttufa,1$.1ast Max? as you mention.

,ipe brit% about a pea oairseettl it, and t • r 4 It are trying + get`' anerer t Alq ..140V, I

Opsient reiaY tbis miirn r Artn416044tioW01050:

#lerientigadd iATOnig334411tom" eye ha . it can to

g

;.eltridite the negotiations? Do rett,sfee- that the -m*0U*

are close to settlement and theCity of 1414 Beach ia

everythin it an?

do

'131‘,LLti Let, me answer those in order. The: C,

Beeoh hat been negotiatAng 'and till* ti016

Ape.,-not clpse to, set4envien en lou,.'peo orta;

111orir do e 'and we Ofer halt a utiiiIpoit4 et met

4 thst, t title quite a wars atiart;_yet-the 0

Lo to. In view of the fact it has a ce

suit; and youx47.4cbtorneye it is their 001„nion it's won

8 seven million dollars on the same basis/ Thizd, arell do .

all we can toward settlemerit? I do t know .110w doh .

Lona Beach has spent in hiring, 211e o Y'e an opinia5

1 quite a bit, have sat around the last four modths 'an

2 talked about tiais* I have met with various /member* o the

Coupola have filet witho:the Oit attorneys„ We halts,

moetinp in hMr 'Nia,cobson a office just .ryir4s to malt* u g

25 mind Remember we have to make up our minds; we have to itnio

what we can YoneciAentiousl.y recommend to the people of

r.

DIVISION OF ACNitiMTRATrYt srpri JO-IFORNIA

ff

tO IV 0

10' be

'Were th lad et thehitztO,

Wien you, ref, ., a. slative boa it it net the, came e re anted. you at. d" y

szd we to d- tom. oY z0 ei have to

r; p1. nine. people* have to, ociwinte 111.1%., nom first,s

to what thear legal tit:Lsorx aeco'r' dlyo t Ae,economic (4-

e-speott If the petigpitw4t$T)

We hie -104: 'Iasi; of June

2,3 haVOn t been b t i ea ft firm be it A

4 0 ie. 411100 the trot o WTI lin t A lo Um When

ou oonsiftr tie ortount, of y vollied, # seriamoneS

this pw em4 ow whethe:0 t s 2 74 r

V eSt±On or 210t* X dorif t thi settlement is Imminent* 1

t -.'q we re oins to ete, 0 e t thi!t ii lie

GOV, AiDEASON% Do "3r biz* a sitteivent titan be,

brblight about In negotiation, or are we NO wapiti tine

akoklin; and I thnk a settlerivnt

between these two part) a, I think therets got to be gpme

giving on both sides,, but I don't want to tell you that we

are close a settlement in thirty days or sixty days becaus

22

23

24

25

avelon., mr. Kaufmann4,

otvtotorc OP AdMINISTRATIVI PROCIMUnli, OTATIK or CALIFORNIA

I.rof sea Arts

Ut w(\

a' 0 .1T111:114 16-* ril ggit tory ra

s:Oe, Oa. 1610 t

*en are too 13034*.

on or iftrty peopl as 'ere s ?st-

em* Igo. (mew? the F,! 6 t e .same t

Imponderablee over. Wept

Stand MI - e*sor ts0 *is longp ii no -beeaftRAO,..o ,., Cf' itOnoe en to d ut 'e

,

et* or la v

1 e '.164 •13t.4 a

and alao he:. ttomer a reptiesentat oh,

shmad eveb ne es o

becauzi have o ien Commiatsian tinoe the rat

Stiasus t the ,,pres,surOs are- bore 6 ttf V.-dere actiO,

Nurabei one* o,4 course4 the Ci and the $tat.ei

California are-both vIte.11y concerned. in the reparittrst:Zia 0

standpointt lits seavagirgs -the '4 r4: , r

hallo a timetable to 'meet, I be2ieve, on thatl the hal ing of

he, aubaidence, idp.whioh 54 aithowvh th e ismore of a, loos

.24 prpk,aelo.s, neverthei,eSt3 tb economy of the state tierittel

XIseted by and to that; end we have also to ermin*

somehow or ()skier thin tidolands boundary line beoause 'we eve

LiiVIOlf.)ii ,415141RittlikkliVii5 PIttlOCbUttIC, STATX c OALtrOPINP.6

N146:4-§tavo.

as the osi

r.

a made° rttn,,, V-Aseggi

iespot, to thatile t

yoga bat steri,q 04, kt 1 Z t 6.1.14,1, ,;; • ,

a ZIA timeti

iesiptu s'vOrt tfielfai

esentedlr. I the t 1.0. 402in4ert111. and..

t

ewise

s is: poilitiblr".the o do tests. Where. do w att

9413 that have been placed upon

u IV the Le inlatures by the ildtr, and .others as to hawk=

time do we have to talk' these'things over? There are certain

Ass that seem to me *lave to be settled, Ferbape the law .: ; ,h ', 1

t *art g* on indefinitely., or the deft tiono but there

are certain thi s that have to Kirµ done T, tiA I thirAc the pros

tyre4tate Landi Ommassion la 4 i07*: aim) the nt

beach ixst reel the sale press ire - is to sat ay

alines ,a6 to the represeuri atiori program oxid the t delan

oundaryo

It s been mentioned here that the filing o

wbuld be Xix al ho.U14tieation of lomat Blocke U and- X

That raises the question of what stands between-the CitV V

,Beaoh aod the ttnitiza ton of Fault BlooXti

.t

Wh Piling a law auit fatal an In thV., absence 9

los suit:, what other preasures are beim 1) ►bu bear?

What ts being done to get thG e two fa416:1Aotka,unItized?

25 In reply to Mr. st remark that the LiAnci6

2e Commission shout do t lose its temper, don,t think it Y s gc t ,fro441.norlel,

WISION Ofo' A014114kSITRAT1VE PPWCSMIAtit, /TAT* Or Cr:IkkPOPINIA

rsdie. tt,44 • ra

the Thio • ifitvian Ire' 1, .14 6

sitiketi/ le

we.AN n. tvie ontkdetOittined oarld abal

on what we ott; 4itecomp40, tO saVo

1414. /UV to solve the stibsideme problevio and to lel

f vo help evtrybo

1.1 arid the Sticie of ataifornia? Where do w„ sit o tbizi

*Vlore was a fUrther tfaetitiiin

On *did b t a forma_ document wirloh we r eosive.,,

3 W eke was public, reoordl* it eelitednly Fle-#1u!deito

be ore* won,fft go into teat now.

later4, Whet about; nave tlatetables4 w elm we tra I, _thee

tirrietetbles?

17. Yon mewl OnttliAion 9t

8 Blocko It And

9 A04 lake thix;:i in whis Orderi. oe

sitands betwee, City orloong Beaoh.and the tlnitizatOn

woe eteauttv Blocks II IXZ ar#s K rt

PlifL MaJot *44 Ungle has beeri, on ,o

'3 these meetirigE; and WI'tib about all e does-w.. Orme ap

24 tat ales and /7,:it in these o*Tittteti 'rn6ttingei wad hillis.ft;i° a 2 yearl, and probably c:ari ten you the immediate prdafts4.

MR. CARR: Jast Ono remark donit sit do

DIVIlooN .4.higNIC.traK7IVat rntorelme, wTATIT OW' CALItTANIA

lti

ne 0

4

J

11

UNGLk: r liOk P. , AL Ma NOU Should all understdnd thetdatioq:

Commission h been ett 16ast sinOtt that th4 LeAtt

e 4i1 t 160?), Ve 00'414 never 14

$ talk tOts, It# last two metingt have been

, 0'

ox' two Z.

attegplaa and. Mr., : 4 came in and said, the Y, wanted, lOre time

enr: nue thing.1 but more tiral Apd that' a

ito is le shOuId do this morning determlne what WO Want the

tirAa for and how we are going to meet these variOU,s deadlines

MR, LING LE: I done t know where to start buts,•

brierltij, wr, tever we draw up in this unitizat na!;ixteetinent

13 the cht!..yAces tpe ±f we made a.• mistake we can never undo it

,4 becaus1;e you need, the eansent of so ;taw people, It impos

01.At 1;45 undo 0 we are trying to .eet; tiTe thing done co

rents, At this? time *e are worktng on the flaal d.r.qta,sy

'7 a, virt to enu operating agreementr bum this is the seeond best:

8 oil. „In the- t States* You have heard many of these

Ore* Atget,into impossible I shauldntt say )

Impossible beeauce we have strked them out t you get into

1 to lexas that havo to b work ,,A. out where you have some

peOple ping Immo and ottie s who-. ate exempt; you hat all

sorti: or aeat,1 p,roblemt blems thit not

to became lote dontt alienate the tlderan We

5' bone as the gentIo n told y cu this: that we wiil be 2 done by the first of Zanuary, We are working on tt four days

riiidle101.449P' 064•ENIS ;It:yrs li is1OC„ITIZAiIC CVATIC or c."ALIFO:INIA

13

•,'z,.!*0

• .9

we 0K4 as got Vo have a ‘,4.

so toms awl ,1411 what; CU Its do think soh

014' :, '- o ii rapresea 134,,s olient, ,fsa'

retiwesePilxis, 4K)ne

4wit Aormi an Sr. '4:4 t a 4

IN 1;10n &Kist sin o uov-igho 1100000oietig to

a 4P gr. stt13, talking and we have to' keeptalk biickut

we all Icriow..itfe *.zle reOroseAting out plient as st, enuously,a

we oan X tilinIc it 4. the biggest water Moo ng. thitt• ever

lie: an. %Iwo B more .oll involved., ttian in unLt. Tbere

rtever,,been a tua. tptli, where' tb, s one 0 e ,;• , 1010,i) 804 i',1.. p ., d 1100 ii a lig 41' tkieS 4

l',. • 1 . .. • Ma te prob41,y1 ;s04*..doJ a inistake

lygp 4 'A r, .; k'

:)! ‘P • .. 4 ries iin -Ito we itre „p eed Y..ci gre t; pro `e

,,, atd yet triiritt to proceed a cautiously- at we cap O t

iit eqpardize t'

f 1 It was determined., fo. inctane that there was a

ou at "en IALAublOWIto tate income tax and

we were going, . sub sot to; it i t . were pooled, and

2 sold* It was a s . o.oking thing f we..eud4 fop.nd our

Anconr* was going' be 1110 t a income

23 t

24• We pure did& t r al ze avrae teive =age when we

25 the Legislature for perm.iss.on to go. Into a unit that there

would be problems such as these. Sure), there was a way to, 7/.))

DIVISION OF ADMINISTRATIV134110CSDUNV syperic Or CALIFORNvA

Ci 11

fZ t .40 .4..\*.111104 00

Wit',p •

tite*, weielcsAlo* it)

rem *4 Are'

40kk 41

this-o Pr r

Oat tinta A 34 nttlielqatter .a* Sat

# oSO of 10011 who flekt CariettO 4

"4 6'

Beach thas •af tOrnoore Wi14f. see 'the, .0e: 0044 it otullendami

tit that' ta4., Etal 0.4 e3 4,...an j

SAI SA concerned, I want to be 'sUre we dox c t (orate• t

St e. and City, 1

al)* .whet grt4t ft.' At 0 .:.

u with . regard, to,- o#tai peotil; 4,t; ox th a #: 4 (ii , 1, wa tibil lema. serimp

PIR Lzwit vii..., X . .. ',ar a er x AA; W

14 94e, .*ay or tlo 01; ttoil engineering b Sc.i

A' Maybe We can ,v into thatk er.1. )v

10 ard througlio

7 GOV0 ANDIWW : it ig, understmnd*vg wee, v

18 un atop airreemant04#h ..a,:'4 et date of X

19 Is that a realistic tenet or an uArealistie target? Are we

20 SoIng to. tind tilere are so many 1 ge4istio pidblems ti t we

21 are olh iwo blot to delay It?

T NaLB: d like,to,' back up., We haven't an

target date* if We ao11e get It done tomoxsrov4 I'd like to

24 'have it done, I was askcd in the ball this morning, I hope

ws oan get it done by January 1:„,.rst, We might not get it A4A

until Jur)°, I don-t think any lawyer wouldnit tell you we

rr

fI ••••••rfeamomor ,,••

elvteram -•or A7C9INftMtito7IVU PNOCX131011C, iliTAVt Or CAI.!:111INIA

wativtlisgo

eve avos 4:140 q Xfs, do 116 * t t Wow Ork 1 .;..ps matt' a, e *0 wou:141,!t:hos A__ •

ro ,

34,43't it*

pont era ion? Is tile igation Ok ea

'S that p+ ,l"

LINGLEt Is not our desire t3 sta this liti

tut a I e 'both our. 0 ilosi :843, 8'0,

tothey * feel t a

w4,01 the State 1 litigation t necesaaryo

0 thert',±0 io :Istliah'z0/1 1„veep eiits

donut inItc4. 'vete opeqt,

haw: t to be tea 'its passed, by the Le is

a it* sot haves eitkt4

t me ask tido: The at et' 1.164$

aoh. 1'poke rl us t moVninS t

tpzati ;it* 41•4t

143:11618$ That afferent • *•

ORANgitt Let me., ,finish „t Auestion d

it we vere to launcu,h sta itald

04 tat - tile ty. at - t- ttme,.over the boundary 1 ilea., that •

2A. thiqw0u14 veopardizt the antiaui)SidenceprogramA Wott

P5 suit 'such as you apehurt the antisubsideme progratO

DM. LINGLE: No. e suit he is ta...,ng abm,xt

1111110tOn PF AnmotrixTmax: sTATX OF CAI,IFOrit,n4

W sem* th011 Irate operators Wtio wOrvi4d: t thel

yln the, *U tot 'v it 46 to protoot this

yO = * °U ►p I agree id,th Mrdp.Ball

ma to setobaok. If"we'filetest o

havio o tofiii,ve a test case before we

Unds and tbe u 2,1004 Isindp.totether.

TON: is theta difference of opinion

.t 41each :Wou e ger antisubsidence w.ox*

. VOIL ITGLE: I can answer this

' NR„, CRANST014: You answered. 1.t d like 0 hear if,

else an opinlm,

not only 'i. . not

entan ersubmil 4mceo bit the the unitization agreement i;

4 "4.44n4d by II perarinz lo approved by the State Lands 00114

oe; the unttizab onwi13) be in operaon. This ia the

The opera:411g aV"tc:Akent isqa Into effect lou*di '0,41

upland omers, A Olaase the Agreement t 10 planne4

.trvtLone zemob, may Join she unit within a. rex &then

iotivltitz Will-he dated ba;* to the date when be units

. 20 went in o unitization. Meanwhile,* water :Lnjection Will. be

erotive*

MR. OR ON:. And nobody looks at this pOt$411sit

;"of of suit f deop4.1 to antigubsldenc.e? (110 responte)

.1.wd ike to get clear to ry own mind a tv11 points in, regard tq

tbo entisubal.dence measure, which is obviously the most OrItio,

meotor Jofore all of us, he,. 7;0 save Wle yard if we

23

'25

2e

DIVISION OP AOMINISITIATIVD-PKODSOURD, STASI Of CALI rohNIA

irie105 loft 10.114 IIVeCe

12

/3

14 '

15

17

of wtko-is i4 e0MOIete age of the program? t

fen .:Ada orAm. thee. 040 Peliven ithe

M. sulasidewe and the *ate eptien,

raniCtiaz Leh ,S Beach has aman 4.ar

have got to also re mtit\-w Pao

approxi*abitelY six, hundred, dil wells approzirdately 4.11 Wala

laocks IX and III.

MR represented?

re aeons

MR. C TON: Well, d4spite what may b

terent- interests involved here, is it recognized down /f

that there is attaster planner rho recommends o the v4rious

parties to go along with what is. proposed?

MR.. LINGLE : TheY meet weekly to decide whit

That s the way they got these co-ops_ to put water in th

gmand now. As I tried to pone out at the last meetingi

Long:, Beach is doing everything now that would be required

under the unit plan by virtue of these co ops. We are IA

ing tremendous amounts of water now.

MR. CRANSTON: Well, is the City of Long Beach

the authority in general charge .. of the planni

the sovereAgn independence of certain individuals?

MR. LINGLE: No sir, it is done by mutual agreemen

MR. RIDINGS: lain Mr* Ridings, 'resident of the

Board f Harbor Commissioners. I think as far as the City

concerned, the responsibility is in charge of the Board of

DIVISION OF ADMINISTRATIVIC PROOZDURS. STATIC OF CALIFORNIA

it OommiselOners. Aictually, thp master an for represw (1-)

tiation and unitizatiem is that set forth b the State Oil

ts 0erldearland t 1i ianagement of S ;ttees for

t B1006 11 and 111 are, eedY operating en that approve

plan. At the management lev think virtually very probl m

has been solved; at the teehitical level, every proble has

solved!, The/ greatest difficulty and the major holdback at th

present time is to put into accurate, correct legal terminolo

all of the various polo t decisiOus that have already been

40 made by the management group. Actually,* the management corn-

Mittee is the direct authority on the master plan tine City

12

13

14

15

16

17 questions involved here are so great because of the complexit

18 of the field; because of the peculiar character of the partie

19 to it, specifically the City and the tidelands; because of

2O theremendous number of questions that are raised in ,a field

1 as complex technically as this is, with ite various zones and

22 extrert*-''faulting; that there is being created new laws so far

23 as units and unitization are concerned and that the lawyers

24 themselves

25 partie are meeting almost full time on this problem

28

The problet has been explained to me that the legal

d there are some very, very capable ones for al

those problems that are delaying us. Once a particular probl = m

is represented on that, the private interes'64 are represented fi

All of these people are working under the specific ,approved

plan made by the State Oil and Gas Supervisor for these two

blocks.

MINION OP AOMINISTRATIVM PROCRDUM, IIVAIR OP CALIPORNIA

.s solved, arrivir‘ at its ,gi1 01.oirt, new problems owe' arevealed

d they work on those. They are making gitiod pros •

Z`\ have be', Oarti.eularly int,reat d in cheekstiii wit .,.. , .W- \ ,,,.. Jo.. 1. • 1 ,

our own .pOople, but also these 0:the pqop el See til.af they ,, M:4 iuttingfortid. all the effort i8.' aisqible, 'Cr do soy .d

1

, , , :; ci

am conViricte,,all parties, *tiw 5 he Cityz, Iviy,,, t4 be „, c! ' ,

legal taient woric as ma* s a d as hard and lo lig et .9

they can on theOrol?lemt. I m as pSinted, as all' a asear

that the problems havent t airea 401ved.; `b1,1t I beliey4

20 they are arriving mw at the„last. st es •.41* it and there aren

to Trgir 14;noia any new po es t qrreotedecided

12 other thary:Agal 'terminology.

13 MR. CRANSTON!; plitorar. e progress. is gOnese#tit • r;

14 watOr _under thitt: surace:, we SC. .,;.t diffe.ken 14.1i4

figurea tram difterent 014E43 and sco. xxies the game place,

16 00d Itd like to mow' Lt we'.•c*$.1.14 get an answer t wretIti.

17 west:Lone: in alet er from Pied Zweiba,ek ect,416iNie.- ecre

18 to ': the Lieutenant c/Overnor, dated 'ctober 20th„ 'to., aharres

ls Vicker,a44 ,alager$ Port cif ,tiom , '” ara 46r1fuSed wh

20 note the taou .atlons of the eistimated water injaptioii v tea

21 In the shipyard area which was attache to a eopy lettAr

cued October 4, 1959 frort . the &ibSidenae con:ittol and. 11 pres-

suriza4on Administrator to Mr. HOrtigs, 13 nee theite volumoli

appear to be np '1e than twice as mach the estiAjtted nes

tabulated in tie subsidence bulletin of SeptembOt s-p5,

hat are the facts on this?

25

24

25

28

OP 119MINIOTRATIVIK PROOttroinen, fiViktr. OP CALIPOONtith,:,:

11011te 6411 WI. IPD

cediAlen)

Ali

MR. RIDINGS; I believe I ask Mr'. oberR 0 our

di reCtor of subsidence, to answer.

MR. ROBERTS: I might say that I have ialked to r

Fred WolbacIF on this and I think everyone clear on this.

What. Is referred toy the bulletin referred to, was issued

a little before the month of September. During the Month of,

September and all prior months, we have all 'baked of the

eritioal shipyard area as being the entire Fault Blocks II an

III, and that's what the Navy has talked about and in all

their talks in Washington they have eons dered that entire

faalt block. After that bulletin was issued, the Navy, o

12 the advice of their consultants, laid out a new area whieh

13 is a reduced area actually includes the south f arks a

II and III, the center of II and III, and 0 e well in Block

ntt and with this new area, it obviously changed the object a.,

18 It reduced them down to a total program of 153,000 barrels

17 per day and these figures that were provided later were imm

18 diatel after we re-analyzed it and sent a letter to Mr. Hort So

19 which I believe many of you have copies of, giving the new

20 figures revised on the new basis; and this, I might say: is

eZplained in the next issue of the sUbsidence bulletin, which

22 probably came into your mail about yesterday.

23 This is the way the program goes: At the end of th a

24 month, we expect 326,000 barrels In the field as a whole, of

25 which 72,900 will be in this newly defined shipyard area

2e flood.

DIVINIORt or ADMINIIMIATIVI PROCEDIJRC STATIC OF CALIFORNIA

Iwo