Huntington Beach City Council members were updated last week on the feasibility of annexing the Bolsa Chica lowlands.
The city would receive about $130,000 annually from oil extraction taxes if it acquired the land. First-year revenue, however, would be offset by a one-time, $151,000 transitional cost.
City staff added that the revenue stream would decrease over time.
The city and the Orange County Local Agency Formation Commission (LAFCO) have been working to determine what needs to be done to begin the acquisition.