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RESOLUTION NO. 5091
A RESOLUTION APPROVING AN APPLICATION TO THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FOR URBAN DEVELOPMENT ACTION GRANT FUNDING,
AUTHORIZING THE CITY MANAGER TO EXECUTE AND
SUBMIT SAME AND TO ACCEPT FUNDING ON BEHALF
OF THE CITY OF PUEBLO IF APPROVED, AND
DESIGNATING THE CITY MANAGER AS THE CITY'S
REPRESENTATIVE TO ACT IN CONNECTION WITH THE
APPLICATION.
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
Section 1.
The Application to the Department of Housing and Urban Development
for Urban Development Action Grant funding, a copy of which is attached
hereto and made a part hereof by reference, including all the understand-
ings and assurances contained therein, is hereby approved and the City
Manager of the City of Pueblo be and he hereby is authorized to execute
and submit said Application on behalf of the City. The City Manager is
hereby designated as the City's representative to act in connection with
the Application, to provide such additional information as may be required,
and, if the Application is approved, to accept on behalf of the City said
Urban Development Action Grant funding.
INTRODUCED January 24 , 1983
BY HAROLD MABIE, JR.
COUNCILMAN
APPROVED:
/ )!`
RESIDENT OF THE COUN IL
ATTEST:
C Y CLERK
OMB Acitimal No. 294IMS
424 -101
ewr.M-440 VIP... is ar-I aI
Prescribed by GSA, Federal Management Ciri dar 74--1
* See Note 1 - Section IV
FEDERAL ASSISTANCE
2.
e. NUMSEp
JAPPL CM
a' NUMBER N/A
CANT
CANrB
APPLI•
TION
IDENTl.
1• TYPE
P E ❑ PREAPPLICATION
b. DATE
b. DATE Year month day
ACTION ❑ APPLICATION
CATION
19r Ttw°nth
1
fiER
ASSIGNED 19
(Mark 03)- ❑ NOTIFICATION OF INTENT (Opt.)
Leave
Blank
❑ REPORT OF FEDERAL ACTION
4. LEGAL APPLICANT/ RECIPIENT
5. FEDERAL EMPLOYER IDENTIFICATION NO.
a. Applicant ?king City of Pueblo, Colorado
84- 600615
b. Organization Unit
6.
C. Street/P.O. Bait :P.O. Box 1427
PRO.
a. NUM 11141 • 4 U2 J
•
d. city Pueblo a• C"""ar : Pueblo
CRAM
b. TITLE
I. Sta `Colorado •• "'code. 81002
(From
Federal
Urban Development
b. Content Palm (Ndoes
Fred E. Weisbrod (303) 545 - 061
c a t a l og )
Action Grant
t
. tetaphoue No.)
a
7. TITLE AND DESCRIPTION OF APPLICANTS PROJECT
8. TYPE OF APPLICANT /RECIPIENT !�
PREMIER TUBULAR PRODUCTS PLANT EXPANSION:
A -State H- Community Action Agency
B- Interstate I- HlttherEducationalInstitution
C- Substate
Premier will increase its present covered plant
J- Indion Tribe
District K -Other (Speci
0- County
facilities by 6, 436 sq. f t. , adding one more ful
f
production line, completing an existing line and
-SiA I Wallet t-1
°Dp Purpose
i Rise" appropriate tellerlr�
LLli
providing permanent office space, an employee
9, TYPE OF ASSISTANCE
locker, shower and lunch area and a covered area
"sole Grant D- Insurance
for equipment m aintenan c e a wellhead assembly.
04upplemontal Grant E--Other Enter appro.
C-Lan P rieto letter(.) T
W ]
10. AREA Of PROJECT IMPACT (Names of cities, counties,
11. ESTIMATED NUM-
--
12. TYPE OF APPLICATION
States, etc.)
DER OF PERSONS
A-Now C- Revision E- Augmentation
City and Count of Pueblo Colo.
y y ,
B N FITING
6,000
0-Rooewal D- Continuation
Enter appropriate lefts
13. PROPOSED FUNDING 14. CONGRESSIONAL DISTRICTS OF: 15. TYPE OF CHANGE (For Ise or Ito)
a. FEDERAL .00 a. APPLICANT b. PROJECT B- 1 Dwnse Dolllars F -Other (Specify)
G4"creses Duration
b. APPLICANT oo Colorado III Colorado III D- Decrease Duration _
s. STATE 16. PROJECT START 17. PROJECT E-An ...... ion
,Do
DATE Yew enough day DURATION Ent" appro. '
d. LOCAL .00 1 9 8 3 4 j -18 ,Month. Prieto lett.r(e)
a. OTHER .00 18. ESTIMATED DATE TO Year month day 19. EXISTING FEDERAL IDENTIFICATION NUMBER
BE SUBMITTED TO
1. TOTAL ,00 FED A GENCY ► 19 83 1 31
-
20. FEDERAL. AGENCY TO RECEIVE REQUEST (Nana, City, State, SIP coda) 21. REMARKS ADDED
Dept. of Housing and Urban Develo ment Washington_ D.C. 2041 �`_g Yea p No
22.
a. To the hest of my knowledge and belief,
b. It required by OMB Circular A-95 this application was submitted, pursuant to In. No re Reoponee
data In this pnila
epptlon /appllation are
struetlan* therels, to approprlate claadnghouses and all responses are attached: opon.e attached
THE
true and correct, the document has been
APPLICANT
duly authorized by the governing body of
El
CERTIFIES
the appliesnt and the applicant will amply
11 the arid-
(3) ❑
Q
THAT ►
with the attached aesuranas
O7
NSA
an" Is approved.
(3► ❑ ❑
�
2S
'City NAME AND TITLE
b 010NATURE
DATE SIGNED
CERTIFYING
Fred E. Weisbrod
Year month day
REPRE•
19
SENTATIVE
r
24 AGENCY NAME
25. APPLICA- Year month day
TION
RECEIVED 19
21L ORGANIZATIONAL UNIT
27. ADMINISTRATIVE OFF=
20. FEDERAL APPLICATION
IDENTIFICATION
29. ADDRESS
30. FEDERAL GRANT
- -L
IDENTIFICATION
31. ACTION TAKEN
32.
FUNDING
Year month day
34. Year month day
❑ a. AWARDED
88. ACTION DATE ► 19
STARTING
D ATE 19
a. FEDERAL
.00
b. APPLICANT
. 00
_
SS. CONTACT FOR ADDITIONAL INFORMA-
TION (Name and telephone number)
36. Year month day
❑ Is. REJECTED
e. STATE
.00
(] L RETURNED FOR
ENDING
DATE 19
d. LOCAL
.00
37. REMARKS ADDED
AMENDMENT
e. OTHER
00
(� d. DEFERRED
(] s. WITHDRAWN
I. TOTAL
S .00
`- -
❑Yea []No
38,
a. In taking above action, any sconmeats realved from elearineehouses were con.
b. FEDERAL AGENCY A45 OFFICIAL
sidered. It agency response Is due wader pevldeas W Past 1. DUB Circular A45.
(Name and telephone won)
FEDERAL AGENCY
It has boon of Is Wing made.
A-05 ACTION
424 -101
ewr.M-440 VIP... is ar-I aI
Prescribed by GSA, Federal Management Ciri dar 74--1
* See Note 1 - Section IV
SECTION IV— REMARKS (Please reference the proper item number /ram Sections 7,11 or 111, if applicable)
7. Title and Description of Applicant's Project (Note 1, Section 1, Item 7 Cont.)
These additions will increase production capacity for machining tubing by a minimum
of 125% and add on the capability of wellhead assembly. In addition, uncovered
storage and handling facilities in the yard will be improved and expanded to absorb
the increased volume and a rail siding will be completed. The expansion, when
completed, will require Premier to increase its payroll by a minimum of 25 full
time, non - salaried, production employees to a total of 50. However, in the
expanded configuration, at full production, this plant can employ approximately
125 persons at an annual payroll exceeding $2,000,000.
STANDARD FORM 424 PAGE 2 (10-75)
City of Pueblo
January 18, 1983
Mr. Arthur Townsend
State Historic Preservation Officer
Colorado Preservation Office
1300 Broadway
Denver, CO 80203
Dear Mr. Townsend:
The City of Pueblo is preparing an Urban Development Action Grant Application
for the Premier Tubular Products Company. Attached as Exhibit 1 is a project
description prepared by the Company.
Premier Tubular Products is located within an industrial park to the northwest
of the City of Pueblo within Pueblo West (See Exhibit 2). Prior to development
by Premier Tubular, the project site was vacant. The site currently contains
one trailer office facility, two "Twin T" concrete structures which house the
manufacturing activity, and a pipe yard. The only other activity within the
industrial park is the Manville Corporation facility located directly south of
the project site (See Exhibit 3).
After careful review of the project site, the City of Pueblo has determined that:
1) There are no National Register properties on the site, and the area is not
within a National Register District.
2) There are no National Register or eligible resources within the project
impact area which could reasonably be expected to be affected, either directly
or indirectly, by the above project.
In the event that resources are identified as a result of the above project,
steps to achieve compliance with the Advisory Council Regulations 36 CFR 800 will
be taken.
If you have any additional questions, please contact Gladys R. Comi, 545 -0563.
Sincerely,
red Weis r
City Manager
FEW /JFM /bg
Enclosures
P.O. Box 1427 Pueblo, Colorado 81002 (303) 545-0561
PREMIER TUBULAR PRODUCTS
PROJECT DESCRIPTION
Current Operation
I. INTRODUCTION and CORPORATE STRUCTURE
PREMIER TUBULAR PRODUCTS, a Colorado Corporation based in Pueblo, Colorado, is
engaged in the business of providing a comprehensive array of services and pro-
ducts to the oil and gas development and production industry in the western
states in general and, more particularly, in the Rocky Mountain region.
PREMIER's corporate offices, storage facilities and production plant are locat-
ed at 1739 E. Platteville Boulevard, Pueblo West, Colorado 81007. Our regional
sales offices are in Denver, Colorado, Casper, Wyoming and Farmington, New Mex-
ico.
On October 29, 1981, the stockholders elected a Board of Directors comprised of
Mssrs. James R. Williams of Pueblo, Colorado, Weaver Connell of Walsenburg,
Colorado and H. Lynn Hale of Pueblo, Colorado.
The Board of Directors appointed Mr. Williams President of PREMIER TUBULAR
PRODUCTS, Mr. Hale to the position of Secretary - Treasurer and Mr. B.F. Morton
of Denver, Colorado, to the position of Vice President.
The registered agent for the Corporation is Petersen and Fonda, P.C. of Pueblo,
Colorado, as represented by Mr. David B. Shaw, Attorney at Law.
PREMIER has been authorized to sell two million shares of common stock at no
par value. Mr. Williams, President of PREMIER, is the majority stockholder,
owning 510,342 shares or fifty -five per cent of the shares sold to date. The
balance of shares is owned by thirteen individuals, none holding more than
twelve per cent of the total. PREMIER presently holds more than one million
shares of common stock in reserve which may be sold in the event that additional
equity capital is desired.
II. OPERATIONS
A. DEVELOPMENT
PREMIER TUBULAR PRODUCTS initiated operations in November, 1981, acquiring a
thirty -acre site for plant and storage facilities and an option on an adjacent
site of fifty acres in January, 1982. Construction began in February and con-
tinued through May of 1982. Concurrently, specialized production equipment was
procured and an organized sales and marketing effort was launched. Two produc-
tion lines for machining tubing and casing and a diesel - powered, pipe straight-
ener were made operational in June. Customer goods were accepted into the yard
and limited service operations begun in the same month.
During the second quarter of 1982, several major oil companies maintaining in-
ventories of pipe in the Pueblo area had contacted PREMIER and were awaiting
the opening of the plant. In July, these 'majors' moved a limited amount of
batch work into our yard which was designed to test the quality and efficiency
of PREMIER's services with future business contingent on satisfactory results.
EXHIBIT 1
Premier Tubular Products
Project Description
By October, having proved our capabilities, we had received substantial work
orders from Tenneco, Champlin, Amoco and Mitsubishi and their enthusiastic
recommendations to other customers as well.
Concurrent with the development of our physical plant and production capability,
PREMIER's marketing group expanded the range of services and products offered to
include lines of wellhead valves, chokes and other recovery and treatment equip-
ment. We were fortunate to obtain exclusive distribution rights for a major
manufacturer of premium, high - performance wellhead valves in their Rocky Moun-
tain Sales Region. Sales offices were opened in Denver, Casper and Farmington,
enabling us to penetrate the market in an area extending from the San Juan Basin
in northern New Mexico through the Overthrust Belt, the Denver Julesburg Basin
and into the Williston Basin in the northern plains states.
Our timely acquisition of a highly - skilled and experienced wellhead man allowed
us to organize a team to perform on -site wellhead services in the fall of 1982.
This team completed its first contract for services to thirty -eight wellheads in
the Beaver Creek, Wyoming, field of a major producer during the following
October.
B. CURRENT OPERATIONS OVERVIEW: TUBULAR GOODS
PREMIER now offers a complete range of machining and testing services on oil
country tubular goods in sizes from 23f8 inch OD through 13 inch OD. All work is
performed to the rigid standards and specifications of the American Petroleum
Institute (API), the recognized controlling agency for the standards of the oil
and gas industry.
Two production lines for machining pipe are now in operation at our Pueblo plant
site. On the 'North Line', pipe, in diameters not exceeding 41 inches, is load-
ed onto a hydraulically- operated handling rack. Two high -speed steel, cut -off
and threading machines work the opposite ends of each stick of pipe in sequence.
The threaded stick is then moved down the line and into a third machine which
spins on and tightens a coupling to one end. The piece of pipe continues to the
next station where, in the final operation, it is filled with water pumped to
the pressure specified by the API for that particular, diameter, weight and
grade. 'Leakers' are returned to the starting point and re- worked. Finished
pipe is stacked in the yard on concrete sills to await transportation arranged
by the customer.
On the 'South Line', pipe exceeding 4� inches in diameter travels through a si-
milar process on another hydraulically activated rack. However, the cutting and
threading operations are performed on a single machine - a high- performance,
carbide - tooled, direct -drive lathe. Under our current operations configuration,
if a stick of pipe requires machining on both ends, it must be passed down the
South Line twice. If the stick requires a coupling, it must be 'bucked on' in
the lathe. Each stick worked on the South Line must then be transferred to the
North Line to be hydrotested.
PREMIER also has the means to straighten tubing, casing and drill pipe not ex-
ceeding 5� inches in outside diameter. The bend may be quite severe and yet be
removed if the pipe has not been dented or crushed. The machine designed for
this purpose is powered by a diesel engine and is mobile to enable it to accom-
pany workover crews to remote well sites. Our straightener utilizes the stress
relief principle of metallurgy, spinning the bent stick between dies in an oil
bath, thus creating sufficient heat and pressure to 'encourage' the steel to
seek its original shape without loss of strength. After a joint is straightened
in this manner, a drift guage is passed through it to be certain that it is
round, as well.
In recent weeks, PREMIER has initiated an outreach service by sending crews into
the yards of local storing carriers to perform surface cleaning, exterior mill
coating and visual thread inspection, cleaning and lubrication. This is done
at the request of owners who have begun to draw down on portions of their inven-
tories that have been in the yards for extended periods of time and wish to re-
store that pipe to prime condition before sale or use. It is common for PREMIER
to service three or,four thousand joints of pipe per month under these agree-
ments
The nature of the business in which we are engaged dictates the ability to
organize, analyze, retrieve, inter - relate and disseminate millions of bits of
data. Each joint of pipe is labeled according to its own set of unique charac-
teristics. This pipe is then shepherded through a series of processes, some of
which will change the previous characteristics of the stick. The pipe must then
be re- labeled and stored, the place of storage known, so that it may be returned
to the owner when called for. The entire process must then be costed out against
a matrix of some two hundred variables and billed to the customer. Additional
factors insuring stringent quality control and efficient plant operations also
number in the thousands and must be monitored. This complex task is accomplished
through a combination of manual and automated data processing systems designed
and implemented from the inception of the business. PREMIER's systems and pro-
cedures conform to the generally accepted methods and variables of the petroleum
industry and ensure the accurate and speedy exchange of information with our
customers. In addition, our computer performs the standard accounting functions
of any business.
C. STAFFING PATTERNS
PREMIER now employs more than twenty, full -time, production employees. The
current production schedule is based on a seventy hour week in the plant utilizing
about fifteen production people and the balance of our non - salaried personnel
staff a fourty -eight hour production week in the trucking terminal yards. Pro-
duction supervisors, administrators, and sales personnel number ten.
Most of our production employees have been obtained through the Pueblo County
Manpower Administration which is designed to aid the chronically unemployed
and underemployed workers of the local area while assisting employers in bearing
the cost of training such workers. Participation in this program has resulted
in a high quality labor force for the Corporation a low initial cost. Subse-
quently, we have chosen to expand and modify this very satisfactory contractual
relationship with Pueblo Manpower in order to continue to develop our labor re-
sources as increased business activity warrants.
Proposed Expansion
EXPANSION PRIORITIES
Phase t
I. Working Capital Requirements
A. Salaries and Benefits, Debt Restructure, Material
B. Inventory of End Finishing Materials
Couplings, Protectors, Dope etc. 60 day supply
Total Working Capital Requirements
II. Expansion Capital Requirements
A. Base Material for Yard Fill
10,000 tons @ $2.75
B. Concrete Pipe Storage Racks
45 @ $235.00
C. Portable Hydrostatic Testing Machine
D. Miscellaneous Machine Tooling, Tools and Supplies
E. Carbide -tool Lathe, Seven Inch Capacity
Phase II
I. Working Capital Requirements
A. Salaries and Benefits, Debt Restructure, Material
II. Expansion Capital Requirements
A. Production Shop Building
1,600 sq. ft. @ $15.00
B. Pipe Moving Line, Hydraulics and Lights
C. Carbide -tool Lathe 13 Inch Capacity
D. Buck -on Coupling Machine 13 Inch Capacity
E. Permanent Office and Employee Facilities
2,436 sq. ft. @ $18.00
F. Office and Computer Equipment
Phase III
I. Working Capital Requirements
II. Expansion Capital Requirements
A. Completion of Rail Siding
B. Base Material for Yard Fill
20,000 tons @ $2.75
C. Concrete Pipe Storage Racks
100 @ 235.00
D. Maintenance Shop and Storage Building
2,400 sq. ft. @ $15.00
E. Small Items of Machining Equipment for Work on
Wellhead Components: Mills, Lathes, Presses etc.
SOURCES OF CAPITAL FUNDS
PREMIER TUBULAR PRODUCTS PLANT EXPANSION
(THOUSANDS OF DOLLARS)
Total Cost Private UDAG + EDA /State
Construction & Improvement 347 97 250
Machinery & Equipment Purchases 477 477
Working Capital 223 123 100
Debt Restructuring 325 325
Total 1,372 1,022 250 100
Total Public
250
100
350