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1950 DEC 20 CC MIN - 55go I very seriously considered. 2 Actually on the variance, I would like to read s a couple of sections of it. Section 13 of the variance, 4 the first part of "J" reads: "To permit modifications of 5 the conditions under which the civic uses are allowed in 6 certain zones." 7 And the second section reads: "Provided that in s no case shall any of the above variances be permitted where 9 they become detrimental of existing future conditions 10 in an area or neighborhood." 11 It is my belief that it will be a detriment to 12 the area and the neighborhood. 18 Further in the variance -- this comes under 14 Section (c) -- I think possibly the whole thing should be 15 read -- "Before any variance may be granted, it shall be 16 shown first that there are exceptional or extraordinary 17 circumstances or conditions applicable to the property is involved or to the intended use of the property that do not 19 apply generally to the property or class of use in the same 20 vicinity or zone." Now, these people will probably try to 21 make a point of that. 22 (Reading) "That such variance is necessary for 23 the preservation and enjoyment of substantial property right 24 of the applicant possessed by other property owners in the 25 same vicinity or zone." That they will try to make a point 26 of. . . 0 5 s 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 91 But the substantial property rights of these people will not be affected and they will not lose those rights if this company is strong enough to get a permit from - the City of Los Angeles, because these people who own this land will still draw their oil rights, and any time there is a well drilled from under there, from wherever it is drilled. It does not have to be drilled straight down on their property. And the next section reads: "That the granting of such variance will not be materially detrimental to the public welfare or injurious to the property or improvements in such vicinity and zone in which the property is located; "Section 4: That the granting of such variance will not adversely affect the comprehensive general plan." I contend that if they grant this, it will adverse- ly affect the general plan of zoning in the City of Los Angeles. Thank you. (Applause.) ... A brief recess was taken ... MAYOR SELBY: The meeting will again please come to order. The Clerk will call the roll. ... Roll call by the City Clerk ... MR. BEALL: I would like to correct an error in my last statement. I referred to the City of Los Angeles and the words should have been E1 Segundo, My purpose is to get it correct on the record. jl 92 1 MAYOR SELBY: Is there anybody else now who 2 wants to speak in opposition to the planning of this 3 variance? 4 Again I repeat: Is there anybody else who cares 6 to speak in opposition to the granting of the variance? 6 MR. STEPHEN B. DOSS: I live at 853 Penn Street, 7 El Segundo, and I have been sworn. I am asking the City s Council here and now that this question be placed on the 9 ballot! (Applause.) 10 MAYOR SELBY: Thank you, Mr. Doss. 11 Is there anybody else who cares to speak in 12 opposition to the granting of the variance? 13 MR. H. J. JACOBS: I live at 525 Hillcrest Street 14 and I have been sworn. 15 1 also wish to ask the City Council to place 16 this to a vote so that the people of the City can decide 17 just what to do in an issue like this. 18 Now, we have the privilege of granting it to the is Pauley interests, something that in very important to them, 20 upon which they can earn a good many millions perhaps, and 21 we should be careful about giving away that privilege. 22 Thank you. (Applause.) 23 MAYOR SELBY: Anybody else? 24 MR. J. C. PARKER: I reside at 630 West Palm and 25 1 have been sworn. 26 1, too, am a newcomer here and the reason I came C 0 0 93 1 here was because I considered E1 Segundo a very nice commun- e ity, and one of the reasons, too, was that I had a small boy s and I liked the school system. 4 We have lived in Venice and the hole that this 5 gentleman talked about I will vouch for. All you have to do s is to drive along the road down to Venice, along the Coast 7 Road, and I am definitely opposed to it, and I would be very s disappointed if it went through; 9 Thank you. (Applause.) to MAYOR SELBY: Is there anybody else who wants to 11 speak against the proposal? If not, we will now allow the 12 applicants and those who support the applicants a reasonable 13 opportunity for rebuttal. 14 May I state this: that in the rebuttal, let's not 15 repeat ourselves. We are going to have an awful long is document to go through here anyway, and unless we have 17 something to really dispose of, let's stick to the facts on 18 the question. 19 Does anybody care to speak in rebuttal for the 20 applicants? 21 MR. CRAMP: This new roadway that is going in, 22 this new Freeway that goes in, that willcut this oilfield in 23 half. between Hillcrest and the sand dunes, and that land 24 that lies west of that Freeway won't, have any value. There 25 is no eress or ingress, you can't get in and you can't get 26 out. There won't be any place for residential purposes by El 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2, 24 1 DAVID ETTLESON, OFFICIAL COURT RKPORT[R - MUTUAL 7789 any means. 94 U l-13i- All the houses that might be there happen to be on the west side of that Freeway. I understand that that Freeway has been pushed ahead. Instead of something in the far future, it is possible within the next ten years or five years even, so when you make a decision on this, you have got to take into consideration that Freeway that goes thr.ougl there. I am just bringing it to the attention of the audi- ence and the Council that that seems a possibility, and that you take it into consideration when you make your decision. MAYOR SELBY: Thank you, Mr. Cramp. Does anybody else care to speak in rebuttal in favor of the applicants? MR. HUTCHINS: Mr. Mayor, and gentlemen of the Council: I will be very, very brief. I must remind you again that we have made all arrangements to do all of our hauling on Imperial Boulevard. I know that it is a busy street, we don't want to clutter it up any more. But there won't be any cluttering; up, I can assure you, and no hauling on those other streets. The permit itself, by its own.terms, limits us to the time during the day when hauling can be done. I hoped that we could do something about cleaning up that tin can duri down there. I know the danger of such a condition. I am a father myself, I have two youngsters, they are pretty well 6 1 2 3 4 1; i i i I DAVID ETTLESON. OFFICIAL '-OU-T 95 grown now, and they were unfortunately run over by automo- biles when I lived in Santa Monica. We are willing to take the precautions of keeping the youngsters out of there down in the gully and there are no cans or anything else that is a dangerous hazard at the present time. I am sorry that the remark was made that we were trying to ram this thing down the throats of the Commission and counsel. In my opening remarks the first thing I said was that I would like the record to show that I had not spoken a word to any of the Councilmen. I met with the Commission once and there was no opposition that particular night, and thereafter one of my associates took over. I want the record to show that we feel that there has been no ramroding and this is the reason probably for the long delay 5 instead of getting the permit quickly. 6 This lease of the Pauleys does not expire in 7 thirteen days. The time within which to commence drilling 8 of the next well does. The Pauleys will still be entitled s to additional notice under the terms of the lease to go.-ahead .o and get started. We are continuously negotiating with the �i City, as I have told you, for the right to drill straight 22 down on Hyperion. There are a lot of technical problems 23 and it would take a lot of time, a couple of hours, perhaps, 24 to go into them and explain them to you. 25 The reason we are not going north of Imperial 26 Boulevard is because the oil rights and the rights to drill 251 in ciosi.ng, i want to say that it is ,a r. 6 . V 11 if 1s 14 15 16 17 18 19 20 21 22 23 84 25 26 1 from that property are owned by somebody else, commonly 2 referred to as the six companies, six of the seven large, s major oil companies. They have the right any time they 4 want to, as a result of the deal they made with the City of Los Angeles to drill any time they want to -- they are too big for us to tackle to try to get a lease from. As for drilling these alternate oil wells In E1 Segundo, we will live up to our obligations that will be imposed by the leases and will drill to the same depth as the offset wells are producing. We won't drill to five hundred feet and then stop. I want to wind up my remarks, ladies and gentlemen and members of the Council, by telling you that we seem to have a difference of opinion as to whether the things we are talking about can be done. We did not come in here with any desire or any idea of depreciating your property values. I have lived in oil well drilling dis- tricts myself. I don't love them particularly, but I don't know when the property values have been depreciated when the plan of operation that we have laid down for ourselves to follow is used. That is the reason we took and brought these pictures in here to you, to show that 'there are some very highly developed residential areas where it has worked without any depreciation of property values at all. In closing, I want to say that it is a healthy thing and I want to congratulate you in having for 6 1 2 s 4 5 6 7 s 9 10 11 12 is 14 1� if 1' 17 I 2 2 2 2 2 e. M-0 . MUTUAL 7789 97 your citizens such constituents as these young fellows of the last World War. It is a healthy thing to see and hear both sides of a problem. But I don't think that if this plan of ours is followed there is going to be any depreciation of property values. That is the reason I thin] the Commission recommended the issuance of one permit right now to find out how this is going to go. As to the rest of the property in Exhibit No. 4 that we are speaking about, in which drilling may take place, that doesn't mean a thing until your body decides, if they do, that as a result of the first well it has not created any undue hard- ships, then we can go on from there. Thank you again. MAYOR SELBY: Is there anybody else who cares to speak in rebuttal on behalf of the applicants? Again I repeat: Is there anybody else who cares to speak on behalf of the applicants? MR. JONES: Mr. Mayor, errors of opinion in this rebuttal, in my estimation, have no purpose. The facts have been given for the record and I understand that you i gentlemen will consider it from those facts and reasons z that have been brought forth. So I would only add these s few things which would possibly clarify the record, and 4 that is that Mr. Fauley did start approximately six months 5 ago to entertain this process of drilling. 6 I want to rectify the situation that the . r DAVID ETTLESON, Or /ICIAL COURT R[rORTFA • MUTUAL 7789 School Board at one time -- I understand this is only hearsay -- contemplated the use of the site on the corner of Hillcrest and Walnut and since then I have been told by three different members of the Board that that proposition had been disregarded or turned down, not for the reason of oil derricks or anything else, but on account of the reason of the Freeway and other sites being more preferable. Just to clear it up again, we are not asking for all those variances, because the resolution has been referred to so many times as such. The resolution that we are concerned about is the issuing of one permit. Pauley could not drill in the Hyperion area because only the subsurface rights and not the surface rights therein are to be developed, and he could not ask for this. And I understand -- there seems to have been some misinterpreta- tion -- although he did not apply to the City of Los Angeles for any permits and was turned down in Hyperion, he could not apply for it because he did not have the sur- face rights in which to drill from. Pauley does not have, I am sure, any leases on the Seven Companies Lease. Therefore, that would be an impossibility for this company although it would be a possibility for other companies to do that. MAYOR SELBY: Thank you. Is there anybody else who cares to speak in rebuttal on behalf of the applicants? i t r, . iJ 1.3"2 1 2 3 4 s 6 7 8 9 10 11 12 13 14 1 1 1 1 1 z 2 2 2 2 2 2 nn CTTI rcnAl OFFICIAL COURT RcrowT[R - MUTUAL 7789 VM� 99 Again I repeat: Is there anyone else who cares to speak in favor of the applicants? If not, we will now allow those who opposed the application, and who oppose the granting of the variance, a reasonable opportunity for rebuttal. DIR. TAYLOR: There have been quite a few brilliant speeches made here tonight. From my point of view they have been good. This won't be one of them; it will be a bit disjointed. It is going to consist mostly of a few notes I have taken down. I would like to refer to one point that Des. Jones just made, namely, that you gentlemen consider the facts. I believe that we have only one fact before us, and that is the resolution itself. All the other things we have are opinions. We have no facts before us, s I believe, not one. I think that is a pretty important 7 point that we should consider. 8 I would like to once and for all remove 9 from two points of view this thing of oil being a national o problem. If it is a national problem, it is subject to 1 State and National control. It is not our problem now. 2 And if oil recovery is so important, there are people, 3 as has been shown, who do have the right to drill from 4 north of Imperial under the control of Los Angeles. It 5 was stated that there would be no control, but it would be 6 under the control. of Los Angeles, and unfortunately those