HomeMy WebLinkAboutRES NO 36-99RESOLUTION NO. 3 6 ' 9 9
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD IN SUPPORT OF OIL PRICE CRISIS
RELIEF
WHEREAS, the oil industry in Kern County is vital to the economic growth and
stability of Kern County, the State of California, and the United States of America; and
WHEREAS, Kern County, the top-producing oil county in the nation, produced
approximately 600,000 barrels of oil per day in 1998, which is 65 percent of California's
total oil production and about 10 percent of total U.S. oil production; and
WHEREAS, more than one-third of California's oil production is at risk of becoming
permanently lost due to the current sustained period of record low prices for heavy crude;
and
WHEREAS, the loss of substantial volumes of domestic oil production, particularly
from enhanced crude oil recovery operations, will devastate Kern County through the loss
of thousands of jobs; significant revenue losses, both to businesses and to local property
tax rolls; and will transfer additional U.S. energy security to the hands of foreign
governments; and
WHEREAS, it is in the best interest of all Americans that rational policies be
enacted which will assist the continuing production and development of California's oil
resource base, which constitutes a strategically important commodity.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield
as follows:
The Council strongly supports the following proposed legislation which is designed
to assist the California and U.S. oil and gas industry in times of extremely low
commodity prices:
AB 687 (Calderon) ,- Allows independent oil and gas producers to increase
and accelerate cost recovery in producing oil and gas properties through
percentage depletion during periods of extremely low oil prices.
AB 1095 (Ashburn) -- Urgency measure to allow independent oil and gas
producers to be eligible for existing disaster relief programs that are
available to other commodity producers.
AB 1610 (Florez) - Creates a marginal well tax credit for oil and natural gas
producers and is designed to prevent premature abandonment of high cost,
low margin wells during periods of extremely low oil prices.
HR 53 (Watkins, OK) -- Creates a marginal well tax credit at the federal level
with the same goal as AB 1610.
HR 423 (Thomas, CA) -- Allows domestic oil and gas producers to carry
back net operating losses for five years instead of two to improve cash flow.
f. HR 497 Thornberry, TX) -- Encourages reactivating idle or shut-in wells.
S. 325 (Hutchinson, TX) - Comprehensive energy measure which advocates
a marginal well tax credit, inactive well incentives, and other drilling and
exploration incentives.
The Council directs that a copy of this resolution shall be forwarded to appropriate
members of the Legislature, the Governor of California, the United States
Congress, and the President of the United States.
.......... o0o ..........
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on MAR ,3:1 1999, by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCILMEMBERCA~iON, DEMOND, MAGGARD, COUCH, ROWLES, SULLIVAN, SALVAGGIO
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
CITY CLERK and Ex Offi~Clerk of the
Council of the City of Bakersfield
APPROVED MAR 3 1
~: ,.
BOB PRICE "
MAYOR of Bakersfield
APPROVED AS TO FORM:
BART J. THILTGEN
City Attorney
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February 10, 1999