[Editor’s Note: Since Robert Zirgulis announced his candidacy for the School Board in July, he has been proclaiming widely, and alone, it should be noted, that the fiscally-starved School District could have reaped “millions” in revenues from the oil drilling company PXP. Today, a reader challenges Mr. Zirgulis and he responds.]
Mr. Zirgulis, are you trying to fool us?
Anyone who knows the least bit of economics or education knows there is no such thing as a free lunch.
Nor is there clean and green oil drilling.
Royalties are paid to those who own the mineral rights.
Unless the Culver City Unified School District were a major leaseholder, why would PXP, the oil-drilling company in the Baldwin Hills, want to give millions of dollars to our schools?
In fact, if they were so generous, why have they not stepped up to the plate and saved us the parcel tax.
If you know something we don’t that will guarantee our schools millions of PXP’s dollars, why not outline your sure-fire strategy for the public?
Otherwise, you risk people thinking you are in cahoots with the oil company.
I wonder if you are referring to the $3 million a year (only for 10 years) that Wilmington is getting from an arduous lawsuit against Arco?
Do you not know that settlement is basically compensation for the school children’s health being compromised?
This money is going to Long Beach Memorial Hospital Children’s Clinic to manage the children’s and their family’s asthma, and for asthma units (mobile clinics).
I wonder what they will do 10 years from now because they will still have to breathe the air there or move away?
Let’s be proactive now and prevent a Love Canal-type of disservice to our students.
Scientific studies are validating that diminished lung capacity = less oxygen to brain = less learning ability.
So how much value do you put on our children’s lungs?
Do you really want to trade them for dollars?
Dr. DeBenedittis may be contacted at debenedittis@sbcglobal.net
In Response
By Robert Zirgulis
I am responding to Suzanne DeBenedittis asking me to publicly “outline my sure-fire strategy” to raise millions for our schools.
First let me give you some facts that are in the public domain. There are 28 producing oil wells in the Baldwin Hills, within the boundaries of Culver City.
Culver City property owners received over $6 million in royalties from Plains Exploration & Production Co., PXP, in 2007 for wells currently producing within the Baldwin Hills.
Culver City received tax revenues at the rate of $18 per $1,000 of gross receipts for all oil and gas produced from property within the city’s boundaries.
Current tax revenues to the city come from older wells. If new wells were to be drilled from the existing oil field to bottom in lands within Culver City, the city’s tax revenue could increase significantly.
If Culver City will permit the drilling, PXP plans to drill 6 wells from the existing oil field to bottom under Culver City.
If those wells are drilled and each one produces 100 barrels of oil per day, at a price of $70 per barrel, the economic result would infuse an additional $2.19 million in annual tax revenue for the city and those residents who have leased their mineral rights to PXP.
Here is the kicker:
What if the city raised tax revenues for new oil to a rate of $60 per $1,000 of gross receipts?
Instead of a paltry1.8 percent, I think the city should get a 6 percent “royalty tax “ on new oil.
That would come out to more than $7 million in tax revenues!
Instead of the City Council wastefully spending from $250, 000 to $700,000 fighting a losing battle to stop oil drilling, why don’t we have these city lawyers negotiating higher royalty figures for new oil?
The reason the oil companies are not supporting me is because I want to raise their taxes.
How are the schools going to get the money?
First, I was told by a PXP representative that there may be oil under Linwood E. Howe elementary.
No, no one is planning to put an oil well on the elementary school campus. One of the drill wells from the existing oil field could slant drill the oil 8,000 feet under the school.
Second, the city should be expected to share its oil revenues with our school, police and fire departments. Some would argue that the city wouldn’t share its oil revenue with the schools.
I say that is nonsense!
In my opinion, there is presently an incestual and nepotistic relationship between the School Board and city government.
The son of a City Councilman is running for the School Board, the wife of a former mayor is also running for the School Board (sic).
I have noticed that there are other instances of wives and husbands holding positions at one time or another either on the City Council or School Board.
I think it would be political suicide, as well as cause family disputes if the City Council persons deny needed money for our schools.
In regards to health and safety issues brought up by Ms. DeBenedittis, I think she is being alarmist and disingenuous. The oil fields have been with us since 1924. Under the new environmental guidelines, they are being regulated by the Environmental Protection Agency, California Air Resource Board, South Coast Air Quality Management District and many other regulators.
Although I think Ms. DeBenedittis is well intentioned, I think she is typical of the misguided fanatic, true believer described in the book “The True Believer.” Unfortunately, fanatics are often used by demagogues for their own perverse intentions..
As a teacher, I would never put our children in harm’s way for any amount of money. If it can be shown that drilling in the existing oil fields is more dangerous than a tanker truck with ammonia exploding on the San Diego Freeway near El Marino Elementary, I will, of course, voice my opposition to oil drilling.
Mr. Zirgulis, President of Save Our Schools, according to his resume, may be contacted at zirgulisr@yahoo.com
