1950 DEC 20 CC MIN - 481
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
°_5
26
DAVID ETTLESON. OVFICIAL COURT RKPORT[R - MUTUAL 7789
20
days, as soon as we are certain it is on commercial produc-
tion, we will tear the derrick down and remove it completel .
You will notice also in this resolution, I
believe, that the type of pumping equipment to be used is
to be electric. That will remove all the noise that will
be made by any pumping that is done. There is practically
no noise at all or no sound at all to an electric motor
cranking this thing up and down.
The next consideration, I think, that we should
speak about is the matter of getting in and out of this
property that we have a lease on. We intend fully to stay
off of all city streets and use Imperial Highway exclusive-
ly for entrance to the property:, make a horseshoe turn on
our own property and have the trucks and all vehicular
traffic come on back out Imperial Boulevard. We are
negotiating for the necessary right -of -way and permission
to do that.
We are going to fence the property, lock it up,
so that nobody can get in there unless it is an authorized
workman. We don't want children around, we don't want
pets around, and we are not going to allow them, and we
don't want anybody else around, as far as that goes. I ran
a nail through my foot about three weeks ago at our Long
Beach well, and I know of the dangers near a well.
The next thing I would like to call your attention
to is this upper plat here. That is a copy of a plat that
1
t.
0
J,
DAVID ETTLESON. OVFICIAL COURT RKPORT[R - MUTUAL 7789
20
days, as soon as we are certain it is on commercial produc-
tion, we will tear the derrick down and remove it completel .
You will notice also in this resolution, I
believe, that the type of pumping equipment to be used is
to be electric. That will remove all the noise that will
be made by any pumping that is done. There is practically
no noise at all or no sound at all to an electric motor
cranking this thing up and down.
The next consideration, I think, that we should
speak about is the matter of getting in and out of this
property that we have a lease on. We intend fully to stay
off of all city streets and use Imperial Highway exclusive-
ly for entrance to the property:, make a horseshoe turn on
our own property and have the trucks and all vehicular
traffic come on back out Imperial Boulevard. We are
negotiating for the necessary right -of -way and permission
to do that.
We are going to fence the property, lock it up,
so that nobody can get in there unless it is an authorized
workman. We don't want children around, we don't want
pets around, and we are not going to allow them, and we
don't want anybody else around, as far as that goes. I ran
a nail through my foot about three weeks ago at our Long
Beach well, and I know of the dangers near a well.
The next thing I would like to call your attention
to is this upper plat here. That is a copy of a plat that
1
t.
0
1
2
3
4
5
6
7
s
9
10
11
12
13
14
15
16
17
1s
19
20
21
22
23
24
i
25
26
DAVID ETTLESON. OFFICIAL COURT RRPORT[R MUTUAL 7786
21
was prepared for the Planning Commission here in El
Segundo. The color is our own. The color is just for
matters of differentiation and distinction. All properties
colored here are under lease to ourselves except one little
piece and we have an option on it.
(Indicating on map.) This piece of property
fits right here and runs clear on up toward the Palisades
and that is under lease to us, that is a subsurface lease.
This belongs to the Title Insurance & Trust Company. These
other pieces are individually owned by Loftus Land Company,
the Stalker Estate, and by the Bank of America.
The present well is located where you see this
little dot right about here. The next well will go just
slightly southwest of it.
I would like to enter this map as an exhibit
in evidence and leave it here for anybody to point out and
talk about it tonight, if that is all right with you.
MAYOR SELBY: Is there any objection? If not,
it will be admitted in evidence and I will ask the Clerk
to mark it as applicant's next exhibit in order.
CITY CLERK McCARTHY: That will be marked as
Applicant's Exhibit No. 4.
... Whereupon the map above referred to was
marked as Applicant's Exhibit No. 4 and received in
evidence ...
MR. HUTCHINS: The plat that you see just under
n
J
1
2
3
4
6
6
7
s
9
10
11
12
13
14
16
16
17
18
19
20
21.
22
23
24
2>
26
DAVID ETTLESON, OFFICIAL COURT RIPORT[R - MUTUAL 7789
22
it is a plat showing the same properties here, but showing
the house locations within this whole general area. This
was prepared by an authorized engineer for the use and
benefit of the Planning Commission of this City at the
time they considered the applicant's application.
I would like now, Mr. Chairman, to introduce
this as one of our exhibits, so that it may be kept here
for the duration of the meeting so that it may be referred
to whenever necessary.
MAYOR SELBY: Is there ariy objection, gentlemen?
If not, it will be marked and received in evidence.
CITY CLERK McCARTHY: It will be marked as
Applicant's Exhibit No. 5 and received in evidence.
... Whereupon the map above referred to was mark
as Applicant's Exhibit No. 5 and received in evidence ...
MR. HUTCHINS: Now, by way of explanation, this
line that you see here (referring to Applicant's Exhibit
No. 4) is the outline of the proposed new Freeway, the. -
location was obtained by Mr. Whitnall for use of the
Planning Commission, and the information comes from the
State Highway Department themselves, I am told.
MR. WOODWORTH: Pardon me, when you say "this
map," please identify the map for the record.
MR. HUTCHINS: This is Applicant's Exhibit No. 4
MR. WOODWORTH: That is the one you just referrer
to?
U 101
L
G
1
2
3
4
5
6
7
s
9
10
11
12
13
14
15
16
17
1s
19
20
21
22
23
24
25
26
DAVID ETTLESON. OFFICIAL COURT R[IORT[R - MUTUAL 7789
23
MR. HUTCHINS: That is right.
MR. WOODWORTH: It will thus show the Council
which particular map you had in mind. `
MR. HUTCHINS: I'm sorry, that is right. I will
repeat again that on Applicant's Exhibit No. 4 there is
delineated the proposed new Coast Freeway that will go
through E1 Segundo. The information for the location of
that was obtained from the State Highway Commission for
the use of the Planning Commission.
I think I might say parenthetically at this
point that information has come to me recently that this
proposed highway is being moved up very considerably.
Originally, it was in what we call the "Second Ten -Year
Step Plan." It has been moved up where I understood that
as soon as they get the remainder of the right -of -ways,
which will be northerly of this parcel of land shown on
Applicant's Exhibit No. 4 they propose immediately, then,
to proceed with the construction of the plan. The other
right -of -ways are being obtained, I know, because we have
an interest in some of that land.
I just mention that parenthetically to show that
the thing is really hot as being considered for as immediate
a development as soon as they can get the right -of -way.
The next thing, I think, that we ought to talk
about is why did we not drill the leases that were secured
and obtained by the Pauley interests about seven years ago.
J
L
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
T-
Now, that was the time when the first well was completed.
As I mentioned previously, the first well was completed for
approximately 800 barrels a day and when the liner collapse
they redrilled it and subsequently completed it for about
39 barrels a day, and it is still working. The price of
oil at that time was about 65 cents a barrel and the well
was producing about 35 to 39 barrels a day. Production
over the whole State was stepped up, above - ground storage
was reaching an all -time high, so the boss called us in one
day and said, "Well, there are nine leases over here and
in order to drill them, we are going to have to buy some
houses and take them out and drill, and we must figure out
how much it is going to cost us."
So we figured it would be about a million dollar
to go ahead with that drilling campaign, so we finally said
"Well, maybe the best thing we can do is to quitclaim the
leases to the property owners." That, ladies and gentlemen
explains the reasons that those wells were not drilled at
that time.
We have a very definite interest in leasing this
property again along here (indicating on map.) I am
referring again to Applicant's Exhibit No. 4, along the
easterly edge of the properties we now have leased. I say
that because it came to our attention that some of the
people felt, "Well, you guys are going to use our property
in E1 Segundo to whip -stock a well in the City of Los
.,
n
1
2
3
a
s
6
7
s
9
10
11
12
13
14
15
16
17
1s
19
20
21
22
23
24
25
26
,),
DAVID ETTLESON, OFFICIAL COURT REPORTER - MUTUAL 7789
25
Angeles, and what do we get out of it? Twenty -five dollar
for a permit fee."
I heartily agree with you and I hope that we
can do something to work that out. My suggestion -- and "t
was suggested to the Planning Commission -- is that if you
folks are ready, we are ready to lease this property, which
would be easterly of our present properties, as shown on
Exhibit No. 4, so that we can drill from our properties
under these properties and find out once and for all if
there is any oil under those properties.
Now, mind you, originally when we had those
leases, the well foundations and the derricks were to have
been put on the leases themselves that were scattered out.
Some of you will remember that. The leases ran clear
easterly to way beyond the top of the hill and clear down
practically to the school. Our present plans would not cal
for doing that type of drilling, and if we did it, it would
be all down here in the same little gully. I am running
my hand across this yellow portion here, again referring
to Exhibit No. 4.
I think that would help, and we certainly are
ready to undertake the leasing campaign, but that depends
a lot also on the people who own the property there. Our
leases have been prepared, a summary has been prepared, and
the leases will be strictly subsurface. There will be no
entry on the surface of the land whatsoever. The well bore
nffra" t -, llrin� n ..r}iila urith him. hA q.nirl . "T WTI
s
C
1
2
3
4
5
6
7
s
9
10
11
12
13
14
15
16
1
1
1
z
2
211
2
2
2
2
r�.�►� . orennrrn MUTUAL 7789
UAV I LJ G 1 1 . - -
26
will come under the lease about 500 feet from the surface
of the ground before it goes under. I mention that as
another one of the plans that we would like to work out.
Another one of the plans that we have in mind -
is to completely surround ourselves up in here, as I
mentioned before, with fences and everything else, and try
to clean up the spot.
Now, we have a landowner, as you know, by the
name of Edward M. Loftus of the Loftus Land Company. Mr.
Loftus had fully intended to be here tonight, but he is
ill, his wife has just had a major operation, and he has
been before the Public utilities Commission for five and
one -half days with his problems of a water company he owns
out toward Anaheim.
But I was talking to Mr. Loftus today and I said
"Mr. Loftus, it is about time for all of us to get together
7 and do something about that unsightly dump of yours down
s there." And he started right out at me. And he said,
9 "Well, I'll tell you, Hutchins, for about twenty -seven
v years the City of E1 Segundo has been using that property.
1 I haven't been paid a dime rent for it in twenty -seven year
z and I can't do anything with it now. It is a big pile of
3 cans. They really ought to come along, pick them up, and
4 throw them out in the ocean or something."
5' After talking a while with him, he said, "I will
6 tell you what I will do. I always thought that the time
I Vrnti to 'ni nn r3pn —I t nn,-'
C
7
1
2
3
4
5
6
7
8
a
10
11
12
13
14
15
16
17
18
1s
20
21
22
23
24
25
26
nOVln ETTLESON_ OFFICIAL COURT RKPORT[R - MUTUAL 7789
27
would come when we could get together or something."
I have here, gentlemen, a letter addressed to
myself, dated December 20, 1950, signed by the Loftus Land
& Water Company, by Edward Loftus, President, and with your
permission, I would like to enter it as evidence in this
hearing and request the kindness of the City Clerk in
reading it at this 'time.
MAYOR SELBY: I would rather wait until we hear
the letter before we decide upon whether or not to receive
it in evidence.
MR. HUTCHINS: All right. It is addressed to
Mr. J. Barton Hutchins, 717 North Highland Avenue, Los
Angeles 38, California, and reads as follows:
"Dear Mr. Hutchins:
This will confirm our conversation of
this afternoon wherein we indicated that we will
authorize you to discuss the problem of the
non - combustible rubbish dump on our oil and
gas lease at El Segundo.
By this letter you are authorized to say
that we will be guided by your recommendations
and the results of your efforts in discussing
this matter with the City Council, and you are
further advised that we will back you up in
any decision that may be arrived at.
As we indicated to you, illness may precent
my attending the Council meeting tonight, but if
I can make it I shall be there.
Will you kindly give my respects to the
members of the City Council.
' You are authorized to also deposit one
copy of this letter with the City Clerk for the
record.
.
G
1
1
1
1�
1'
V
1:
2a
21
22
23
24
25
26
4i1
DAVID ETTLFrnN n... ...
—WAS i /am
1 Very truly yours,
2 L FTTJS LAND & WATER COMPANY
3 By: Edward M. Loftus, Pres."-
4 MAYOR SELBY: You have heard the letter,'gentle-
5 men. Have you any objection to its being admitted as
6 evidence?
7 COUNCILMAN PETERSON: It seems to me that that i
8 rather beyond the scope of the problem that is before us
9 this evening.
.o MR. HUTCHINS: That is up to you gentlemen. What
1 I am doing, Mr. Mayor, is getting aQnsent to make the point
2 here that among other things we are trying to work out at
3 this present time, while we have Mr. Loftus in the mood, is
A to settle this question about the dump down there amicably
i
and see if we can't get the thing straightened out once and
for all through our efforts in working with both the
Council of E1 Segundo and Mr. Loftus.
COUNCILMAN PETERSON: Mr. Mayor, I don't think
the matter just mentioned has anything to do with the
question of the application for an oil well, which is the
subject of the hearing this evening. I think that is a
different matter altogether. I, myself, don't think it
should be injected into this hearing.
MR. HUTCHINS: That is perfectly all right with
me, gentlemen.
MAYOR SELBY: Any further comments on it?
!1!G V V .LCl.i/ V U V .Lt!!!�3 11Q1'G UQ1 V1 "Q J/ V U O V V11G V J V u V Q11
0
e
1
2
3
4
5
6
7
s
9
10
11
12
13
14
15
16
17
1s
19
20
21
22
23
r
24
25
26
COUNCILMAN THOMPSON: I agree with Mr. Peterson.
I don't see where this has any bearing on the hearing at
all.
MR. HUTCHINS: It is perfectly all right with me
I have the letter. My object in this was to make it
possible, while we are in there, if we are there, to get
the thing cleared up. I mean, I have heard 'round about
town that it is pretty much of an eyesore. Secondly, from
the standpoint of good housekeeping, if we did get in this
we would want to clean it up ourselves. However, I
certainly await the wishes of you gentlemen.
I will withdraw it, then, gentlemen, and I will
have it in my possession any time you wish to examine it.
MAYOR SELBY: Thank you.
MR. HUTCHINS: That about brings us down to one
more thing that I would like to mention to you folks, and
that is: that we certainly are prepared to do anything and
everything we can to make this as easy an operation on the
people of E1 Segundo and on the City and on ourselves as
we can. If, at any time, you have any questions, tonight
or any other time, we stand ready, willing, and I hope able
to give you the answers, at least as far as we see them.
I want to thank you again, gentlemen, for your
kindness, and you ladies and gentlemen also, in allowing
me to lay out our plans here before you so that you can
shoot them full of holes. After all, as long as we hold
s
L