Ordinance No. 8,95420000727 -02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND THE CITY CLERK TO ATTEST TO A PROFESSIONAL
SERVICES AGREEMENT WITH VINSON & ELKINS, L.L.P., CONCERNING
THE CITY'S RESPONSE TO THE U.S. ARMY CORPS OF ENGINEER'S
ISSUANCE OF A PERMIT TO SANCHEZ OIL & GAS CORPORATION TO
DRILL IN BURNETT BAY; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section l: That the City Council of the City of Baytown, Texas, hereby authorizes
and directs the City Manager of the City of Baytown to execute and the City Clerk to attest to a
professional services agreement with Vinson & Elkins, L.L.P., concerning the City's response to
the U.S. Army Corps of Engineer's issuance of a permit to Sanchez Oil & Gas Corporation to
drill in Burnett Bay. A copy of said contract is attached hereto, marked Exhibit "A," and made a
part hereof for all intents and purposes.
Section 2: This.ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the
City of Baytown this the 27'h day of July, 2000.
C-
PETE C. ALFARO, ayor
ATTEST:
CAR W. S _IITH, City Clerk
AP'R01IFD AS TO FORM:
ACIO RAMIREZLSA., City Attorney
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Writer's Phone: 713- 758 -4586
Writer's Fax: 713 -615 -5538
Mr. Ignacio Ramirez, Sr.
City Attorney
City of Baytown
P.O. Box 424
Baytown, TX 77522
Vinson & Elkins
ATTORNEYS AT LAW
VINSON & ELKINS L.L.P.
2300 FIRST CITY TOWER
1001 FANNIN STREET
HOUSTON, TEXAS 77002 -6760
TELEPHONE (713) 758 -2222
FAX (7 13) 758 -2346
July 24, 2000
Re: Representation of the City of Baytown, Texas
Dear Mr. Ramirez:
E -mail: Inettles @velaw.com
Web: www.velaw.com
As we have discussed by telephone, Vinson & Elkins L.L.P. is willing to continue its
representation of the City of Baytown in connection with the U. S. Army Corps of Engineers
decision to issue a permit to Sanchez Oil & Gas Corporation to authorize oil and gas exploration and
production activities in Burnet Bay. Although we were disappointed that the Galveston District of
the Corps of Engineers ultimately decided to issue a permit to Sanchez Oil & Gas, we believe that
our representation of the City of Baytown in the Corps of Engineers permitting process was helpful
in persuading the Corps to add conditions to the Sanchez Oil & Gas permit to reduce the potential
for environmental harm. Now that the Corps has issued the permit, however, there are two
additional tasks that you have asked us to perform.
The first task would be to evaluate the permit and the Corps of Engineers' record of decision
to determine whether there are any flaws that would provide a basis for overturning the Corps
decision to issue the permit to Sanchez. We believe that our fees and expenses for review and
evaluation of the permit and the Corps' record of decision would not exceed $2,000, including the
cost to prepare a letter report to the City of Baytown.
The second task would be to assist the City of Baytown in the preparation of a monitoring,
reporting, and enforcement plan that is desigxed to ensure that Sanchez Oil & Gas complies strictly
with all of the terms and conditions set forth in the Corps of Engineers permit. We estimate that our
fees and expenses for interaction with City officials and the preparation of a monitoring, reporting,
and enforcement plan and related documents would not exceed $5,000, excluding any additional
representation of the City in the event that Sanchez ,Oil & Gas actually violates the terms and
conditions of its Corps of Engineers permit.
EXHIBIT A
HOUSTON AUSTIN BEIJING DALLAS LONDON MOSCOW NEW YORK SINGAPORE WASHINGTON. D.C.
Mr. Ignacio Ramirez, Sr.
Page 2
July 24, 2000
We would be pleased to represent the City of Baytown on these two additional items on the
same terms and conditions as set forth in our April 17, 2000 engagement letter. If this additional
assignment is acceptable to you and the City, please so indicate by executing a copy of this letter in
the space provided below and returning it to me.
Please contact me if you have any questions. Thank you again for asking us to represent the
City of Baytown in connection with the post - permitting evaluation of the City's" options.
AGREED AND ACCEPTED:
Monte Mercer
City Manager
Houston:274555.1
11
Very truly yours,
VINSON & ELKINS L.L.P.
Vinson&Elkins
ATTORNEYS AT LAW COP)f
VINSON&ELKINS L.L.P.
2300 FIRST CITY TOWER
1001 FANNIN STREET
Writer's Phone:713-758-4586 HOUSTON, TEXAS 77002-6760 E-mail:Inettlesovelaw.com
Writer's Fax:713-615-5538 TELEPHONE(713)758-2222 Web:www.velaw.com
FAX(713)758-2346
July 24,2000
Mr. Ignacio Ramirez, Sr.
City Attorney
City of Baytown
P.O. Box 424
Baytown,TX 77522
Re: Representation of the City of Baytown,Texas
Dear Mr. Ramirez:
As we have discussed by telephone, Vinson & Elkins L.L.P. is willing to continue its
representation of the City of Baytown in connection with the U. S. Army Corps of Engineers
decision to issue a permit to Sanchez Oil&Gas Corporation to authorize oil and gas exploration and
production activities in Burnet Bay. Although we were disappointed that the Galveston District of
the Corps of Engineers ultimately decided to issue a permit to Sanchez Oil&Gas,we believe that
our representation of the City of Baytown in the Corps of Engineers permitting process was helpful
in persuading the Corps to add conditions to the Sanchez Oil&Gas permit to reduce the potential
for environmental harm. Now that the Corps has issued the permit, however, there are two
additional tasks that you have asked us to perform.
The first task would be to evaluate the permit and the Corps of Engineers'record of decision
to determine whether there are any flaws that would provide a basis for overturning the Corps
decision to issue the permit to Sanchez. We believe that our fees and expenses for review and
evaluation of the permit and the Corps' record of decision would not exceed$2,000,including the
cost to prepare a letter report to the City of Baytown.
The second task would be to assist the City of Baytown in the preparation of a monitoring,
reporting,and enforcement plan that is designed to ensure that Sanchez Oil&Gas complies strictly
with all of the terms and conditions set forth in the Corps of Engineers permit. We estimate that our
fees and expenses for interaction with City officials and the preparation of a monitoring,reporting,
and enforcement plan and related documents would not exceed $5,000, excluding any additional
representation of the City in the event that Sanchez Oil & Gas actually violates the terms and
conditions of its Corps of Engineers permit.
MD
U U
HOUSTON AUSTIN BEIJING DALLAS LONDON Moscow NEW YORK SINGAPORE WASHINGTON, O.C.
Mr. Ignacio Ramirez, Sr.
Page 2
July 24,2000
We would be pleased to represent the City of Baytown on these two additional items on the
same terms and conditions as set forth in our April 17, 2000 engagement letter. If this additional
assignment is acceptable to you and the City,please so indicate by executing a copy of this letter in
the space provided below and returning it to me.
Please contact me if you have any questions. Thank you again for asking us to represent the
City of Baytown in connection with the post-permitting evaluation of the City's options.
Very truly yours,
VINSON &ELKINS L.L.P.
By: C�" nAA4-,
LT.
AGREED AND ACCEPTED:
By: '
Monte Mercer
City Manager
Houston:274555.1