Brea, Shell May Settle Dispute Over Westside Reservoir

BREA —  The city is close to settling an ongoing dispute with Shell Oil Co. over a parcel of land that was acquired several years ago for a reservoir project, officials said.

The City Council, in a closed session this week, approved the terms of an agreement with the oil company, City Manager Frank Benest said. The amount of the settlement will not be disclosed until Shell approves the deal.

Land for the 15-million-gallon Westside Reservoir, about an acre located in the hills north of Site Drive, was acquired by the city through condemnation in 1993.

Officials said the $2.6-million covered steel tank was needed to provide increased water storage, both for normal operating demands and for emergency situations in the area west of the Orange Freeway.

The city was responding, in part, to a 1989 citywide study that identified increased water reserves as a priority. Funding for the project was provided through a 1991 bond issue.

Construction of the reservoir was completed early last year, but Shell and the city had not been able to reach an agreement for the purchase of the land, and the matter appeared to be headed to court, said Sue Georgino, the city’s redevelopment services director.

Georgino said that city officials were pleased with the council’s decision to end the talks. Shell officials could give final approval to the plan later this month, she added.

“We feel we’ve developed a proposal that Shell will agree to,” Georgino said.