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Crude Prices Force Whittier To Rethink Opposition To

Oil Drilling

Puente Hills Landfill Native Habitat Preservation Authority

 faces lapse in funding

The authority is looking for alternative investment sources that would provide a higher rate.

Another possibility is the proposal to drill for oil on city-owned property in the Puente Hills area. Some of that money would go to the authority.

"If it (happens) it would take all of the pressure off," Henderson said.

Bob Henderson is already using the oil project to pay for his Habitat Authority.  He negotiated this back in the lease dated October 28, 2008.  Was this his plan all along?  Lease terms are below.

(a) Management Fee. The sum of Five Thousand Dollars ($5,000.00) per month commencing
on the date of acceptance in writing by Lessee of a Conditional Use Permit issued by the City of Whittier in
accordance with the provisions of Paragraph 6.1, hereof, which management fee shall be increased to Seven
Thousand Dollars ($7,000.00) per month commencing on the commencement of drilling operations (as defined in Paragraph 17.(a), hereof), and continuing annually thereafter on or before each anniversary of such date.

(b) Habitat Enhancement Fee. The sum of One Hundred Thousand Dollars ($100,000.00) per
year commencing on the date of commencement of drilling operations (as defined in Paragraph 17.(a), hereof) on the Leased Land pursuant to an issued and accepted Conditional Use Permit and continuing annually thereafter on or before each next ensuing anniversary of the date of Lessee's acceptance of such Conditional Use Permit.

(c) CPI Adjustment of Management Fee and Habitat Enhancement Fee. The foregoing
management and habitat enhancement fees shall be increased annually in a percentage equal to the percentage increase, if any, in the U.S. Department of Labor Consumer Price Index, All Goods-All Consumers, for the Los Angeles Metropolitan Area (or a reasonably equivalent replacement im;lex to be selected by Lessor if such index is no longer published) commencing on the second anniversary of the date on which both such fees were paid.

(d) Credit for Portion of Incremental Royalty. If and to the extent that Lessee pays a portion of
an incremental increase in royalty hereunder to the Puente Hills .Landfill Native Habitat Preservation Authority pursuant to Paragraph 7.7, hereof, such incremental royalty amount paid each year to the Puente Hills Landfill Native Habitat Preservation Authority shall be a credit against the next ensuing management fee and habitat enhancement fee.