OIL AND GAS UPDATE
The following is a brief synopsis of the currently existing or proposed oil and gas projects in Santa Barbara County, countywide and by geographic area.
SANTA BARBARA COUNTY-WIDE ISSUES
Federal Five Year OCS Proposed Program
On January 8, 2018, the Bureau of Ocean Energy Management (BOEM) proposed wholesale leasing of the entire western coast of the US, including all of Santa Barbara County. The process for the new Plan is roughly two years.
Status: On June 30, 2022, the Department of the Interior issued a new Draft 2023-2028 Five Year Leasing Plan. There are no leases proposed for the Pacific Region.
Exxon Oil Trucking Proposal
In 2017, Exxon submitted a new application to the County to construct a truck rack and to truck up to 70 trucks of oil per day (10,000-12,000 bbls/day) from Las Flores Canyon up to Santa Maria (was 30,000 bbls/day when the pipeline was operating), for up to seven years unless a new pipeline is completed sooner, or the existing pipeline is put back into use. The project, which will allow for the resumption of production of Exxon’s existing federal platforms, raises serious concerns about the risk of an oil spill, air quality, traffic.
The original application was found incomplete, resubmitted in December, 2017, and again in February, 2018. It was found complete in March, 2018. A Scoping hearing was held on July 11, 2018. EDC submitted written comments on behalf of GOO!. The Draft SEIR was released on April 12, 2019 and a hearing was held on May 6. The Final SEIR was released on July 30, 2020 and County staff recommended approval of trucking only to Santa Maria. In August, Phillips 66 announced that, as of January, 2023, its Rodeo Plant in the Bay Area will be converted to recycling oil. It will shut down its Nipomo Plant and several pump stations, including the one in Santa Maria that Exxon planned to use as part its trucking operation.
Both September PC hearings were cancelled pending a decision by Exxon on its next steps. On February 25, 2021, Exxon informed the County that it would proceed with its application to truck to Santa Maria until the Santa Maria pump station was no longer available and would then truck to Pentland. County staff will move forward with those changes and any necessary revisions to the FEIR. The FEIR was released on August 16th with Planning Commission hearings on September 29 and October 1. The staff report released on September 9th recommending that trucking be approved to Santa Maria until the pump station closes, then to Pentland. EDC submitted a letter on GOO!’s behalf requesting that the PC take remote testimony, that there be a Spanish translation at the hearing and that the first two hearings focus on the adequacy of the DEIR. On September 29th, the Santa Barbara County Planning Commission voted to recommend to the Board of Supervisors that it deny this risky proposal. On March 8th, the BOS denied Exxon’s request to truck oil, preventing Exxon from restarting production on its platforms in the Channel.
Status: On May 11, 2022, Exxon filed a lawsuit against the County in Federal court (federal and state issues). EDC, GOO! and other environmental groups intervened on behalf of the County. EDC prevailed on the first lawsuit heard in federal court in LA on September 15, 2023. On February 15, 2024, Exxon notified the Court that it is dismissing its lawsuit on the three remaining issues.
Plains New Pipeline Project
In 2017, Plains submitted an application to SB County to replace Lines 901/903. The segment, which would have carried up to 40,000 bbls of oil per day (existing pipeline permitted at 200,000 bbls/day) was to run through SB, SLO and Kern Counties, from Las Flores Canyon to Pentland, 125 miles; 2.5 miles of which runs through the Carrizo Plains National Monument which did not exist when the original pipeline was built. The new line was to be smaller in diameter than the old line, but would have followed the existing pipeline corridor, with exceptions to avoid impacts to blue oaks and the City of Buellton jurisdiction.
Status: In mid-2023, Exxon/Mobil purchased the existing Plains pipeline, as well as the new proposed pipeline project. The transfer from Plains to Exxon was approved by the County Planning Director, but then appealed to the Planning Commission, which approved the transfer on June 14, 2023. On September 19, 2023, the BOS upheld the Planning Commission’s approval. On October 24, 2023, Exxon (POPCO) withdrew the Line 901-903 Replacement Project.
Existing Pipeline Restart Project
The only remaining pipeline option is to restart the existing 901/903 pipeline that ruptured in 2015. The County has no land use authority on the restart, therefore no CEQA review. The State Fire Marshall has jurisdiction over the existing pipeline, however PHMSA, a federal agency, also has a role to play. Prior to the transfer of the restart project to the State Fire Marshall, PHMSA issued a Consent Decree containing corrective action orders to repair the existing pipeline, however those orders were deferred until a decision was made as to whether or not that pipeline would be abandoned or restarted. The pipeline can only be restarted if all of the anomalies are repaired and 100% of the standards set in the Consent Decree for safety, regulatory requirements for pipeline integrity, and BACT per AB 864, are met.
Status: Exxon sold its interest in the entire oil project (platforms and pipelines) to Sable. Sable applied to the County for an owner/operator transfer from Exxon to Sable. After three submittals, he County found that application complete. There will be an extensive financial analysis of Sable as part of the application review. Sable has requested that the State Lands Commission, which only has jurisdiction over the three pipelines from the platforms to shore, assign the State pipeline leases to them. BSEE has already approved the transfer for pipelines in federal waters.
Exxon-Mobil Valve Replacement Project
In 2023, Exxon applied to the County to replace 16 valves on the existing 901/903 pipeline, a move that was seen as a potential precursor to resurrecting the pipeline which ruptured and caused the Refugio Oil Spill in 2015. Replacement of these valves will not remedy the external corrosion or prevent additional, future ruptures.
Status: The County Planning Commission denied the project on April 26, 2023. Exxon appealed the PC’s denial to the Board of Supervisors. On May 19, 2023, the GOO! Board voted to oppose the Valve Replacement Project and publicly support the Planning Commission’s denial of the project at the Board of Supervisors. A hearing was set for August 22, 2023. Staff recommended approval of Exxon’s appeal, but the BOS vote on the appeal was 2 – 2 so the Planning Commission’s denial stands.
GOLETA / GAVIOTA ISSUES
Following the 2015 Refugio Oil Spill, Venoco declared bankrupty and later quitclaimed its Goleta leases to the State Lands Commission. The current status of those decommissioning projects, as well as an update on the Pt. Arguello Platforms, are described below.
South Ellwood Platform Holly and Ellwood Onshore Facility (EOF) Decommissioning
A number of projects were proposed for the full development of the Ellwood Field. Most recently Venoco, Inc. resubmitted an application to the SLC to extend the eastern boundary of State offshore lease (3242.1). The DEIR was released on September 16, 2016, however, the project stalled and Venoco declared bankruptcy. As a liability holder, Exxon-Mobil is was required to make significant structural integrity repairs to Platform Holly so that it could bear the weight of the drill rig needed to plug and abandonment the wells that were active prior to the May, 2015 oil spill (30 wells). That work began in 2018. Due to the extensive repairs needed, it wasn’t completed until Fall, 2019.
Plug and abandonment activities, which commenced in October, 2019 and then placed on hold due to Covid-19, were restarted in October, 2021. The first set of wells were plugged and abandoned using coiled tubing (12-16 wells). The balance of the wells are being abandoned using the drill rig.
Status: 23 wells have been fully abandoned; 7 need some additional remediation. The State Lands Commission’s feasibility study to determine decommissioning alternatives is almost complete. Waiting for some information from Exxon. The NOP for environmental review for the decommissioning of Platform Holly is expected to be released in late September, 2024. Actual decommissioning could take 2-3 years.
EOF Decommissioning: Due to the decommissioning of the Lease 421 piers and the completion of P and A activities on Platform Holly, the EOF was placed in a mothball condition and returned to the Venoco Trustee at the end of May, 2023. The Venoco Trustee has since sold the EOF to Bell Canyon, LLC.
Lease 421 Piers Decommissioning
On April 13, 2017, Venoco quitclaimed Lease 421 to the State Lands Commission. As a liability holder, Exxon-Mobil completed P&A activities in April-May, 2019 on the 2 Lease 421 wells. The environmental review process for the decommissioning of the Lease 421 piers began following completion of the P and A activities. The DEIR was released in January, 2022 with public hearings being held remotely on February 10th. The FEIR was certified and the permits approved for Component 1.
Status: Decommissioning began on August 29, 2022 and was completed in February, 2023. SLC and the City are looking for funding for decommissioning of Component 2.
Pt. Arguello Platforms Decommissioning
Freeport McMoran is responsible for plugging and abandoning the wells on Platforms Hidalgo (14 wells), Harvest (19 wells) and Hermosa (13 wells). Chevron is responsible for decommissioning the platforms and the Gaviota Onshore Processing facility. Plugging and Abandonment activities on the platforms were completed in 2021.
Status: The Draft Programmatic EIS for decommissioning of platforms in federal waters was released on October 12, 2022. Following comments to that document, the Final EIS and Record of Decision were released. Based on environmental impacts, safety issues and use conflicts, the preferred alternative is for full removal. The environmentally preferred alternative is for partial removal, with everything above 85 feet being removed. A project-specific EIS will be required for each individual platform.
CARPINTERIA / SUMMERLAND ISSUES
The Carptineria/Summerland area has had a history of oil and gas development beginning in the late 1800’s when oil wells were drilled on piers all along the coastline.
Summerland Legacy Wells
In August of 2015, the Becker Well, located on Summerland Beach below Lookout Park, began significant leaking necessitating the closure of that beach for four days. The State Lands Commission conducted an investigation and assessment of the Becker Well, and in October, 2015 obtained permits to excavate and uncover the well to assess its physical condition.
Status: The Summerland Becker and Legacy Wells Abandonment and Remediation FEIR was certified and a permit approved by the State Lands Commission on 8-17-17. The remediation was completed in February, 2018. Remediation work on the Treadwell and Northstar wells was completed in 2020. The CH Olsson and Duquesne Wharf well abandonments were completed in 2021. Abandonment of the Treadwell 1 and 5 ($2.7 million for both) was completed in 2023.
SB 44 (Jackson) signed into law on 10-10-17 addresses the remediation of these legacy wells, as well as natural seepage issues. The bill creates a revolving fund to enable the State Lands Commission to implement the bill.
The State Lands Commission has already begun a legacy wells inventory. A paper records search of the 198 pre-1938 (category one-high priority) wells revealed that 190 are in Summerland and 8 are in Ellwood (Goleta). Four leaking wells were identified in Summerland. In addition, as a result of the February, 2017 winter storms, the beach at Summerland was severely eroded, exposing several additional legacy wells, two of which were previously unknown to the State Lands Commission.
Carpinteria Decommissioning Projects
Chevron has taken over possession of the former Venoco Carpinteria facilities, including two federal offshore platforms (Grace and Gail) and the onshore processing plant. Chevron has indicated its intention to decommission the facilities.
Status: Plug and Abandonment activities have been completed on Platform Grace (28 wells) and are continuing on Platform Gail (28 wells), which will be the largest platform to be decommissioned in the USA. Platforms A, B and C (DCOR) which are in the Dos Cuadras Field, are still operating.
BOEM is working on a study for platform decommissioning options; one possible option is a combined decommissioning with other platforms due to the high cost of moving the necessary equipment into the area ($40 – $70 million).
The Carpinteria City Comprehensive Zoning Code update initiated in 2015 could include the re-designation and rezoning of the Carpinteria oil and gas facility to a non-industrial use similar to the Goleta EOF. An NOP on the Zoning code update (including oil regulation) was released on August 1, 2022.
The Carone Petroleum Company proposed to develop State Oil and Gas Leases 4000, 7911 and 3133 from a federal platform, Platform Hogan, installed in 1967, and send the oil to the La Conchita onshore facility. However, on June 28, the State Lands Commission voted to terminate State Leases 3133.1, 4000 and 7911, the last active leases in State waters offshore SB County, for failure to pay rent for four years. These leases are now part of the California Coastal Sanctuary. With the leases now terminated, federal Platforms Hogan and Houchin, which are no longer functioning, expired 10-21-20.
Status: Preparation is now occurring for P and A activities to begin on Platforms Hogan (52 wells) and Houchin (Signal Hill/Conoco Phillips).
The Chevron Debris/Shell Mounds were left behind after the four “H” Platforms were removed from the Santa Barbara Channel in 1996. Conditions on the State Lands and Coastal Commissions’ permits require that the area beneath the platforms be restored to a natural condition and be “trawlable”. The debris mounds have prevented Chevron from meeting this requirement. SLC received an application to leave the mounds in place and provide for mitigation at Carpinteria Salt Marsh. A pilot project at Platform Heidi was listed as one of three alternatives, along with the reef and capping. Serious concerns were raised about both leaving the mounds in place as well as the enhancement portion of the project.
Status: State Lands Commission staff is focusing on the options available to address the shell mounds issue. The staff has hired a consultant to prepare a “white paper” on the history of the shell mounds issue and an environmental assessment of the various options for addressing the situation. The draft assessment will be completed in 2024, with a public comment period in Spring, 2025.