Timeline on Oil Project

Timeline on Oil Project

December 25, 1995 – Whittier Main Oil Field purchased by City using L.A.County taxpayer funds from Prop “A”

April 23, 1996 - Tom Mach former Whittier City Manager sends letter to County and Santa Monica Mountain Conservancy saying Whittier will keeps hills as open spaces in perpetuity(forever).

2003 – Puente Hills landfill gets its final permit renewal for operation, good till November 2013. Puente Hills Habitat Authority will lose its funding in November of 2013.

May 19, 2005 –Matrix Oil facility fire in Honolulu Terrace, Whittier, CA. One man dies (employee of contractor that works for Matrix) from explosion and fire

2006 - Matrix says they asked City about drilling for oil in the Whittier Landfill (October and November).

January 2006 - An agreement is reached with the City, Mc Farland and Chevron about land in the Whittier Landfill

February 1, 2006 - City Manager Steve Helvey plays golf with Mike McCaskey VP of Matrix Oil

June 2006 - Matrix enters into an agreement with Clayton Williams Energy of Texas to work together in projects in Los Angeles and Kern Counties and Texas (Clayton Williams Energy is a billion dollar company that owns 75% of the oil lease with the City of Whittier).

August 25, 2006 – Steve Helvey wants to pursue oil in the landfill, says Matrix owes City a freebee so they can go over mineral rights.

September 6, 2006 - Mac McFarland consultant for Matrix Oil plays golf with City Manager Steve Helvey.

September 12, 2006 - Vote for pipeline franchise for Matrix Oil. Henderson declares a conflict of interest because he receives royalties from Matrix Oil; item 14.F on Council agenda.

October 18, 2006 - Meeting between Matrix and City about development of wells site on 2 acres of land outside of Whittier's Landfill.

November 2, 2006 - Jeff Kern (Matrix Oil) and Silas Briones visit Landfill to see wells "Central Fee 63" and "Savage 1" to see if they are producers.

November 14, 2006 - E-Mail from Jeff Kerns (Matrix Oil) to Mike McCaskey (VP of Matrix Oil) and Mac McFarland (Consultant for Matrix Oil) talks about meeting on October 18, 2006 with City; Matrix trying to make a deal with the City to drill for oil.

November 16, 2006 - E-Mail between Matrix and City about drilling outside of the Landfill on a 2 acre site. They are talking about trying to make a deal to drill in the preserve (old Chevron Property) a deal.

2007 – LSA hired by Matrix to do an environmental study on old Whittier Main Oil field

May 18, 2007 - City Manager Steve Helvey plays golf with Englander and Associates PR firm that was hired later by Matrix Oil to sell the project to the Community. Our Supervisor Don Knabe's son Matt works for this company.

November 27, 2007 – Whittier signs a “Letter of Intent” with Matrix Oil about Whittier Oil Project.

November 30, 2007 - City of Whittier hires Attorney Lourie Collins to help put oil deal together

December 2007 - First car dealership closes in Whittier

January 25, 2008 – City (Steve Helvey) and Clayton Williams (Mark Tisdale) starting to work on terms of the lease together. Bid does not go out until August 2008. Matrix and Clayton are full steam ahead on the project. (info from e-mail)

March 12, 2008 - Whittier Officials through the WDN said they plan to extract oil from our hills. They instruct Matrix to do a habitat study with LSA. No lease has been signed yet.

March 12, 2008 - WDN article (Project does not go to bid until August 2008).

March 18, 2008 - Attorney Lorie Collins resigns. She was hired to unwind Prop "A"

March 27, 2008 – Whittier has signed a “Letter of Agreement” with the Oil Companies. That is about 5 months before the project goes to bid.

April 24, 2008 - E-mail from Whittier City Manager Steve Helvey to Mike McCaskey (VP of Matrix Oil) and Mac McFarland (Consultant for Matrix Oil) - Helvey talks about single source bid to Matrix. Project does not go out to Public Bid until August 26, 2008.

June 16, 2008 - City Manager Steve Helvey plays golf with our Supervisor Don Knabe

August 26, 2008 – Project goes out to bid

October 2008 - Matrix is the only bidder.

October 28, 2008 – City and Matrix sign oil lease without County’s permission.

November 14, 2008 - City Manager Steve Helvey plays golf with Matt Knabe son of our Supervisor Don Knabe. Matt works for PR firm representing Matrix Oil.

April 29, 2009 - WSJ article - Bob Henderson, the town's mayor, had a revelation. "I was sitting at home, just idly thinking about this possibility of oil drilling and suddenly thought: 'Oh, my God, when I purchased the old Chevron property, we demanded they give us the oil rights.'" The demand was made so Whittier could convert the area into a wilderness preserve. Says Mr. Henderson: "its home to an awful lot of animals -- bobcats, coyotes, hundreds of birds."

January 20, 2010 - Scope of Work document was introduced on the Whittier Main Oil Field Project.

April 12, 2010 - Clayton Williams Energy introduces Whittier Oil Project to New York Conference (IPAA and OGIS)

May 25, 2010 - City of Whittier hires Esther Feldman to unwind Prop "A" and lobby the L.A. County.

September 7, 2010 – Whittier City Manager Steve Helvey sends an e-mail to Councilman Bob Henderson, Mike McCaskey VP of Matrix Oil, Matt Knabe son of our County Supervisor and PR Company of Matrix Oil about Randal Martinez (current president of Friendly Hills Property owners Association). Mr. Martinez provided information to Steve Helvey about how the FHPOA would vote along with names, address and phone numbers.

September 8, 2010 – Matrix attends meeting of FHPOA to talk to them about oil project.

September 9, 2010 – Matrix proposes to move road back 165 ft. from behind homes on Lodosa.

September 10, 2010- WDN article - Henderson gives Matrix Royalties to his son.

October 2010 - OSLDF Lawsuit filed against the Oil Project

October 7, 2010 – 1st DEIR on first project released.

November 19, 2010 - City Manager Steve Helvey plays golf with Havey Englander whose PR firm represents Matrix Oil and our Supervisor Don Knabe's son Matt works for.

April 2011 - City of Whittier extends lease with Matrix, Henderson says City will be sued if they don't.

May 19, 2011 - Mike McCaskey VP of Matrix Oil says "In 2006 Matrix approached the City to potentially develop certain lands near the City's landfill".

June 5, 2011 - WDN article - Puente Hills habitat Authority to have lapse in funding. We use to receive 1.8 million (from the landfill) and it has been cut in half with the recession," Henderson said. Henderson said he doesn't know yet what the authority will do. 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. Here is what was put into the lease on October 28, 2008. It clearly shows that Mr. Henderson had already negotiated to get money for the habitat Authority. They will be getting large annual payments and royalties. Guess he was planning ahead. Look below

WHITTIER MAIN 2008 MINERAL EXTRACTION

OIL, GAS AND MINERAL LEASE

THIS OIL, GAS AND MINERAL LEASE (hereinafter "Lease") is, made and entered into this 28th day of

October, 2008, by and between the CITY OF WHITTIER, a charter municipality of the State of California with a

mailing address at 13230 Penn Street, Whittier, CA 90602 (hereinafter called "Lessor"), and Matrix Oil Corporation, a

California corporation (as to an undivided 25%), with a mailing address at 104 Anapamu, Santa Barbara, CA 93101

and Clayton Williams Energy, Inc., a Delaware corporation (as to an undivided 75%), with a mailing address at 6

Desta Drive, Suite 6500, Midland, TX 79705 (hereinafter called "Lessee").

2.2 Management Fee and Habitat Enhancement Fee. Lessee shall pay the following

management fee and habitat enhancement fee to the Puente Hills Landfill Native Habitat Preservation Authority:

(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.

3.1. Payments. The payments required to be paid by Lessee hereunder shall be made by

check made payable to, and mailed to:

To the Puente Hills Landfill Native Habitat

Preservation Authority:

Puente Hills Landfill Native Habitat Preservation Authority

AnN: Andrea Gullo, Executive Director

7702 Walnut Street, Suite C

Whittier, CA 90602

7.7 Payment of a Portion of Incremental Increased Royalties to the Puente Hills Landfill Native Habitat Preservation Authority. If and to the extent that an incremental increased royalty becomes payable to Lessor hereunder, Lessor may direct Lessee by written notice to Lessee, to pay a portion thereof directly to the Puente Hills Landfill Native habitat Preservation Authority.

July 21, 2011 - WDN article - Matrix asked to spend 19 million to buy land as part of Whittier Project. In a WDN article on August 14, 2011 Mc Caskey says Matrix makes about 5 million annually. So how can they pay for 19 million dollars of land? This is almost 4X's their annual income.

October 2011 - Planning commission votes to approve Oil Project.

November 2011 - City Council votes to approve Oil Project

December 2, 2011 - Settlement hearing on SLAPP

December 23, 2011 – OSLDF files a CEQA lawsuit.

January 21, 2012 - Matrix announcement about La Habra Heights oil field

January 23, 2012 - Matrix expands their Operation to 70 acres next to Whittier's border. Expanded project is now 1.6 miles from proposed Whittier Oil Project.

February 24, 2012 – MRCA (Mountain Recreation Conservation Authority) files lawsuit against City, City Council, LA County etc regarding breach of contract, violation of Prop A bond among other issues.

March 5, 2012 – WDN – LA County reopens investigation into whether Esther Feldman was lobbying without properly registering.

May 9, 2012 - Whittier sends check to L.A. County of $325,000.00 for 7 acre pad for oil well site.

June 6, 2012 - L.A. County returns the $325,000.00 check to Whittier for 7 acres. County did not agree on payment.

August 8, 2012 - L.A. County finds both the City of Whittier and Esther Feldman guilty of violating the County's lobbying ordnance.

September 14, 2012 - Opens Space Legal Defense Fund settles there lawsuit so State can proceed with theirs.

September 28, 2012 - Kamala Harris California State Attorney General files suit against the City of Whittier, County of Los Angeles and the oil companies over the oil project.

October 25, 2012 - Los Angeles County files suit against the City of Whittier the oil companies and the oil project.

November 13, 2012 - Puente Hills Habitat Authority (Whittier Councilman Bob Henderson is Chairman of since 1994) hires same law firm (Richards, Watson and Gershon) that Whittier hired to defend itself against the lawsuits regarding the oil project. Habitat Authority is named in the lawsuits.

November 30, 2012 - Letter dated April 23, 1996 posted on WHOW's website from former City Manager Tom Mach said the City would keep the hills as open spaces in perpetuity (forever).

December 14, 2012 - Taxpayer group "PROP A PROTECTIVE ASSOCIATION" file suit against the City of Whittier and the oil companies.

December 2012 - Mid December 2012 MRCA has now filed an injunction to stop the oil project along with Los Angeles County. That would stop any drilling despite what dates Bob Henderson says regarding when they will start to drill drill.

November 2013 - Puente Hills Landfill to close; Bob Henderson's Habitat Authority will lose funding. Now seeks oil drilling on open space land managed by Habitat Authority to renew revenue stream. Money from oil negotiated for Habitat Authority in sec. 2.2 of lease on Oct 28, 2008. City says they will give Habitat Authority portion of their royalties (May 2012).

Players:

Steve Helvey - Whittier City Manager

Bob Henderson - Whittier City Councilman/Chairman of Puente Hills Habitat Authority - Andrea Gullo Director

Johnny Jordan - President Matrix Oil

Mike McCaskey - VP of Matrix Oil

Jeff Kerns - Matrix Oil

Mark Tisdale - VP of Clayton Williams Energy (Oil Company)

Lourie Collins - Attorney hired by City and Puente Hills Habitat Authority

David Pelser - Director of Public Works, City of Whittier

Melonie Kruegler - City of Whittier

J.C. McFarland - Consultant for Matrix Oil and Whittier City Councilman Greg Nordbaks Campaign Treasure for all of his elections.

There may be others but these are the main players.

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