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  Agenda Item   23.    
City Council Meeting
Meeting Date: 09/15/2020  
FROM: Bill Gallardo

Subject:
Sewer Connection Agreement SCA 2020-01 with Breitburn Operating L.P. 
RECOMMENDATION
Authorize the City Manager to execute Sewer Connection Agreement SCA 2020-01 with Breitburn Operating L.P. to accept the wastewater discharge generated from the oil production process.
BACKGROUND/DISCUSSION
Breitburn Operating LP ("Permittee") operates an oil and gas production facility located close to the north east corner of Valencia Avenue and Carbon Canyon Road. Refer to Exhibit 'A' for Facility Location Map. The production facility includes oil and oil/water storage tanks, production wells, and pipelines. There are about 74 active and idle production wells with one active injection well. This facility may process approximately 6,200 gallons (147 barrels) of crude oil per day. This process has a byproduct, which is wastewater that is currently being injected into the ground.

The California Department of Conservation Geologic Energy Management Division has set a goal under the Underground Injection Control Regulations to curtail water re-injection throughout the State. In an effort to meet this goal, the Permittee has requested a sewer connection to discharge the wastewater from the production facility into the City owned sewer main located within Carbon Canyon Road. Refer to Exhibit 'B' for the Sewer Connection Location Map. Upon the completion of the proposed sewer connection, the Permittee is planning to utilize both re-injection and discharge into the sewer system.

Staff has reviewed the request, including the sewer capacity, and determined that the existing sewer system can accommodate the proposed maximum discharge rate of 24,000 gallons per day. The Permittee is conditioned as part of the approval to obtain the Industrial Wastewater Discharge Permit issued by the County of Orange Sanitation District. This permit is to provide a means for protecting the public and environment through the regulation of industrial wastewater discharges. It limits the discharge of specific pollutants from industrial facilities by establishing numeric discharge standards, discharge requirements, self-monitoring requirements, and report requirements.  

The key points of the sewer connection agreement are outlined below:
  • Permittee is authorized to connect to, and discharge effluent wastewater into, the City's sewer system in accordance with the terms of the agreement.
  • Permittee shall be responsible for obtaining all local, county, state, and federal permits, easements, and licenses required to be obtained prior to commencement of construction of the sewer lateral and discharging any substances into the sewer system.
  • Permittee shall construct, or cause to constructed, at its sole expense a lateral sewer line sufficiently sized so as to allow the discharge of wastewater at the rate of no more than 24,000 gallons per day, with a maximum peak discharge of 33 gallons per minutes, and shall install a flow meter to monitor said discharge rate.
  • Permittee agrees to reduce the maximum rate of discharge when deemed necessary by the City in order to prevent the exceedance of the downstream sewer capacity during events that could result in a sewer system overflow/spill.
  • Permittee shall comply with all applicable city, county, county sanitation district, state and federal standards and regulations with respect to construction of its lateral sewer line and its connection to City's sewer system.
  • Permittee shall maintain an industrial wastewater discharge permit from the County Sanitation District of Orange County, and comply with the permit limits and condition at all times.
  • Permittee shall pay sewer connection fee of Forty-Eight Dollars ($48.00) per City Ordinance No. 578.
  • Permittee shall pay a wastewater discharge fee based on the actual flow discharged into the City's sewer system. The amount of the fee shall be based on the Special/High Usage Fee per City Resolution No. 06-77 or as subsequently amended.
  • Permittee shall, at all times, be responsible to insure that City's sewer line is not damaged by either Permittee's connection or the quantity or quality of the discharge effluent. Should damage from either occur, Permittee shall be liable for all direct, indirect, and consequential damages caused by its use of City's sewer line.
Additionally, the agreement was reviewed and approved as to form by the City Attorney's office.
FISCAL IMPACT/SUMMARY
The agreement requires the Permittee to pay for all processing and construction costs associated with the proposed sewer connection. Therefore, there is no impact on the general fund.

In summary, Permittee operates an oil and gas production facility in the north east part of the City. The facility may produces about  6,200 gallons (147 barrels) of crude oil and up to 24,000 gallons of wastewater as a byproduct per day. The wastewater is currently being re-injected into the ground. The California Department of Conservation Geologic Energy Management Division has set a goal to curtail water re-injection throughout the state. In an effort to meet this goal, a sewer connection to discharge the wastewater into the City owned sewer main was requested. Staff reviewed the sewer capacity study and determined that the sewer system could accommodate the additional wastewater flow and the sewer connection agreement has been executed by the Permittee. City Attorney has reviewed and approved the attached agreement. Hence, staff is recommended the Council to authorize City Manager to execute the Sewer Connection Agreement SCA 2020-01.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Hsing Chao, Associate Engineer
Concurrence: Michael Ho, P.E., Deputy Director of Public Works / City Engineer
                      Tony Olmos, P.E., Pubic Works Director

 
Attachments
Exhibit 'A' - Facility Location Map
Exhibit 'B' - Sewer Connection Location map
Sewer Connection Agreement SCA 2020-01

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