HomeMy WebLinkAbout09/30/14
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF HERMOSA BEACH
AND
E&B NATURAL RESOURCES
MANAGEMENT CORPORATION
THIS DEVELOPMENT AGREEMENT (“Development Agreement” or “Agreement”)
is entered into as of the ____ day of ______________, _____, b y and between the CITY OF
HERMOSA BEACH, a California municipal corporation ("City"), and E&B NATURAL
RESOURCES MANAGEMENT CORPORATION, a California corporation (“E&B”).
RECITALS
A. The City is the owner of that certain real property in the City of Hermosa Beach,
County of Los Angeles, and State of California described in Section 2.4 of this Agreement
(Exhibit A to this Agreement), and also known informally as the City Maintenance Yard
(“Property” or “City Maintenance Yard”).
B. On or about January 14, 1992, the City entered into Oil and Gas Lease No. 2
(“Lease”) with Macpherson Oil Company, a California corporation, for itself and for Windward
Associates, a California limited partnership, of which it is the general partner (collectively
“Macpherson”). The Lease was approved by the California State Lands Commission (“CSLC”).
The Lease authorized Macpherson to perform oil and gas extraction activities in the tidelands
granted to the City by the State of California, and also authorized Macpherson to utilize the
Property for oil and gas drilling activities (“Macpherson Project”).
C. During the 1990s, Macpherson sought and obtained approvals for the Macpherson
Project from the City, the CSLC, the California Coastal Commission and the South Coast Air
Quality Management District. In 1995, the voters of the City passed Proposition E, an initiative
to ban oil drilling in the City. During this time, and subsequently, Macpherson, the City, the
CSLC, and opponents to the Macpherson Project were parties to several lawsuits regarding the
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Macpherson Project, including an action by Macpherson against the City regarding whether
Proposition E constituted a breach of the Lease (“Macpherson Lawsuit”). The trial court in the
Macpherson Lawsuit determined that the adoption of Proposition E constituted a breach of the
Lease, subject to certain City defenses, and scheduled a trial in April 2012 t o determine
Macpherson’s damages.
D. E&B, who had no p rior relationship with Macpherson, investigated the
Macpherson Project and approached the City and Macpherson with a proposal to settle the
Macpherson Lawsuit and to provide E&B with a potential opportunity to proceed with “a state-
of-the-art directional well oil drilling project conducted from an urban drill site located on the
City’s maintenance yard” and “an opportunity to persuade the City’s electorate that a state-of-
the-art directional well oil drilling project conducted from the City’s maintenance yard can be
accomplished safely and with financial beneifts to all of the parties.” (Settlement Agreement, p.
2.) On March 2, 2012, the City, Macpherson and E&B entered into a Settlement Agreement and
Release (“Settlement Agreement”).
E. The Settlement Agreement, among other consideration, provided for the dismissal
of the Macpherson Lawsuit, certain payments to Macpherson, and the assignment to E&B of
Macpherson’s rights under the Lease and all other permits for the Macpherson Project which
would allow E&B to proceed with a redesigned oil development project (“Project”) under certain
conditions. Under the terms of the Settlement Agreement, the City is to place on the ballot, in a
manner that comports with all applicable law, a measure that asks the voters whether to approve,
among other things, “a development agreement that would afford E&B a vested right to proceed
with the Project . . . .” (Settlement Agreement, p. 7.)
F. The California Elections Code sets forth the procedures for a local legislative body to
submit a measure to the voters of the City. As contemplated in the Settlement Agreement, the City
elected to undertake environmental review of the Project referenced in paragraph E above in
accordance with the requirements of the California Environmental Quality Act (“CEQA”). On July
8, 2014, the City Council of City certified an Environmental Impact Report in compliance with
CEQA by its adoption of Resolution No. 14-6908.
G. The California Legislature enacted Section 65864 et seq. of the Government
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Code, which provides that cities and counties may enter into development agreements with
persons having legal or equitable development interests in real property. Section 65867.5 of the
Government Code states that a development agreement is a “legislative act” to be approved by
ordinance, and the California Constitution establishes the right of voters to approve legislative acts.
Elections Code section 9222 authorizes the City Council to submit any ordinance to the voters for
their approval. Section 65869 of the Government Code mandates Coastal Commission approval for
any development agreement in an area where a local coastal program has not been certified.
H. The City has adopted rules and regulations for consideration of development
agreements, pursuant to Government Code Section 65865, i n Chapter 17.64 of the City’s
Municipal Code.
I. In compliance with the Settlement Agreement and all other applicable law, the
City submitted the [insert title of Ballot Measure] (“Ballot Measure”) to the voters of the City
on [insert date] in compliance with California Elections Code Section 9222. T he Ballot
Measure includes the following legislative approvals: 1) an amendment to the Land Use Plan of
the Local Coastal Program (a component of the City’s General Plan) to modify the land use
designation for the Property to allow for the implementation the Project and to provide energy
policies in compliance with the California Coastal Act; 2) various amendments to the Municipal
Code to allow the Project to proceed on the Property and to remove the restriction on the City’s
use of project royalties; 3) a franchise for oil and gas pipelines; 4) amendments to the Oil Code;
and 5) this Development Agreement, and in connection with these legislative approvals, CEQA
findings including a statement that the project benefits outweigh its unavoidable environmental
impacts (i.e. a statement of overriding considerations). These legislative approvals are referred
to in this Agreement as “Ballot Measure Approvals.”
J. By approving the Ballot Measure and this Agreement, the voters of the City have
determined that the public interest is served by entering into this Agreement because the Project,
described in Exhibit B to this Agreement, will provide for the remediation of the City Maintenance
Yard, and will provide substantial economic benefits to the City and to the Community in the form
of royalties as described in the Lease and as further set forth in Exhibit C to this Agreement.
K. This Agreement will bind future City Councils to the terms and obligations
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
specified in this Agreement and limit, to the degree specified in this Agreement, the future
exercise of the City's ability to regulate development on the Property.
L. This Agreement and the Project is consistent with, and will serve to implement
the policies, objectives, and standards of the elements of the City of Hermosa Beach General
Plan and is consistent with the standards of the Hermosa Beach Municipal Code (including the
Oil Code), all as amended by the Ballot Measure Approvals.
M. This Agreement and the Project is consistent with, and will serve to implement,
the provisions of Article 3 of the California Coastal Act.
N. This Agreement will eliminate uncertainty in planning and provide for the orderly
development of the Property and generally serve the public interest.
AGREEMENT
NOW THEREFORE, in consideration of the above recitals, the mutual covenants and
conditions herein contained, and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties agrees as follows:
1 DEFINITIONS
For purposes of this Agreement, except as otherwise expressly provided or unless the
context otherwise requires:
"Agreement" means this Development Agreement by and between the City and E&B.
"Approval Date" means the date on which the Ordinance approving this Development
Agreement becomes effective under Elections Code Section 9217, specifically ten days after the
date the vote is declared by the City Council [INSERT DATE].
“Ballot Measure” means the measure that was approved by the voters on the Election
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Date.
“Ballot Measure Ordinance” or “Ordinance” means the ordinance that accomplishes
the Ballot Measure Approvals.
“Ballot Measure Approvals” means the: 1) an amendment to the Land Use Plan of the
Local Coastal Program (a component of the City’s General Plan) to modify the land use
designation for the Property to allow for the implementation the Project and to provide energy
policies in compliance with the California Coastal Act; 2) various amendments to the Municipal
Code to allow the Project to proceed on the Property and to remove the restriction on the City’s use
of project royalties; 3) a franchise for oil and gas pipelines; 4) amendments to the Oil Code; and 5)
this Development Agreement, and in connection with these legislative approvals, CEQA findings
including a statement that the project benefits outweigh its unavoidable environmental impacts (i.e.
a statement of overriding considerations).
"CEQA" means the California Environmental Quality Act, Section 21000, et seq., of the
California Public Resources Code.
"City" means the City of Hermosa Beach, California.
"City Council" means the City Council of the City of Hermosa Beach.
"Code" or “HBMC” means the Municipal Code of the City of Hermosa Beach.
"Commencement Date" means that date when the Commission approves the
Development Agreement under Government Code Section 65869; provided, however, if
litigation challenging the validity of this Agreement including any Project Approvals and/or
environmental review pursuant to CEQA should be brought against the City or the Coastal
Commission, the Commencement Date shall be the date such litigation is concluded in a manner
that permits the commencement or continuation of the parties' rights and obligations under this
Agreement.
“Commission” means the California Coastal Commission.
“Conditional Use Permit” means the Conditional Use Permit for Oil Development at
the City Maintenance Yard, approved by the City in Resolution No. 93-5632, and the validity of
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
which was confirmed by the Settlement Agreement, which is to be abandoned and superseded
pursuant to the terms of this Agreement.
"Current Land Use Regulations" means the ordinances, resolutions, rules, regulations,
requirements and official policies of the City in force as of the date on which the City Council
calls the election on the Ballot Measure, as amended by the Ballot Measure Approvals.
"Development Agreement Act" means Section 65864 et seq., of the California
Government Code.
“E&B” means E & B NATURAL RESOURCES MANAGEMENT CORPORATION, a
California corporation in the business of exploring for and producing oil and gas and each of its
respective successors and assigns to all or any portion of its interests in the Property during such
time as such portion is subject to this Agreement.
“Election Date” means the date that the Ballot Measure was submitted for a vote to the
voters.
"Event of Default" is defined in Section 5.1.1.
"Exactions" means any requirement imposed by the City in connection with or pursuant to
any land use regulation or land use approval process for the dedication of land, construction or
improvement of public improvements or amenities, payment of development fees, or other
mitigation measures required to mitigate the impacts of the development including, without
limitation, all development impact fees or linkage fees, utility capacity fees, service or connection
fees, major facilities fees, park fees, flood control fees, environmental impact mitigation fees,
affordable housing fees, arts fees, transportation fees, child care fees and any similar
governmental fees, charges and exactions required for the development of projects or property.
"Force Majeure Delay" is defined in Section 6.23.
"Future Ministerial Permits" is defined in Section 3.2.1.
"General Plan" means the General Plan of the City as of the Effective Date.
“Off-site Project Components” or “Off-site Components” means the Project
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
components in the City of Hermosa Beach outside of the Property as described in Exhibit B to
this Agreement, including (1) oil and gas pipelines along Valley Drive, Hermosa Beach,
California, (2) supply staging/storage at 601 Cypress Avenue, Hermosa Beach, California, (3) a
parking lot at 636 Cypress Avenue, Hermosa Beach, California, and (4) various locations outside
the jurisdiction of Hermosa Beach. The location of (2) is more particularly described in Exhibit
A-2 and the location of (3) is more particularly described in Exhibit A-3.
“Oil Code” means the Hermosa Beach Oil Code, Chapter 21A (Oil Production),
approved by the City with Ordinance No. 85-803.
"Processing Fees" means all routine and generally applicable City-wide fees required by
the City for processing applications and permits including, but not limited to, fees for land use
applications, project permits, building applications, building permits, grading permits, maps and
certificates of occupancy in effect at the time paid. Expressly exempted from Processing Fees are
all Exactions.
"Project" means the proposed development of the Property described in the Project
Description contained in Exhibit B.
"Project Approvals" means the approvals for the Project as set forth in Section 2.6 of
this Agreement.
"Public Benefits" means those improvements to be constructed, services to be provided
and/or amounts to be paid by E&B to the City as consideration for this Agreement pursuant to
Section 2.1 and Exhibit C.
"Term" means the term of this Agreement, as provided in Section 6.1 of this Agreement.
"Zoning Ordinance" means the comprehensive Zoning Ordinance of the City, found in
Chapter 17 of the Code of the City of Hermosa Beach as it exists on the Effective Date.
2 THE DEVELOPMENT AGREEMENT PROCESS
2.1 Statement of Benefits and Consideration. The voters of the City have determined that the
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Project is a development for which a development agreement is appropriate. Development
of the Project in accordance with a development agreement will provide for the orderly
development of the Property in accordance with the objectives set forth in the General
Plan, including the Land Use Plan of the Local Coastal Program, as amended. Moreover, a
development agreement for the Project will eliminate uncertainty in planning for and
securing orderly development of the Property, ensure attainment of the maximum efficient
utilization of resources within the City at the least economic cost to its citizens, and
achieve the provision of public services, public uses, urban infrastructure and other goals
and purposes for which the Development Agreement Act was enacted, all in the promotion
of the health, safety and general welfare of the City of Hermosa Beach and its residents. In
exchange for these and other benefits to the City, E&B will receive the assurance that E&B
may develop the Project during the Term of this Agreement, subject to the terms and
conditions herein contained. By approving Ballot Measure ___, the voters of the City have
found and determined that this Agreement is consistent with the General Plan, including the
Land Use Plan of the Local Coastal Program, as amended, and ha ve approved this
Agreement.
This Agreement does not (1) grant density or intensity in excess of that otherwise
established in the Project Approvals, (2) supersede, nullify or amend any condition imposed
in the Project Approvals, (3) guarantee to E&B any profits from the Project, or (4) prohibit
or, if legally required, indicate E&B’s consent to, the Property's inclusion in any public
financing district or assessment district.
The City will receive substantial benefits as a result of the development of the Property in
accordance with this Agreement, as set forth in Exhibit C, in recognition of and in exchange
for this Agreement and the benefits provided to E&B pursuant to this Agreement. The
voters of the City acknowledge the adequacy of the consideration provided by E&B to the
City pursuant to this Agreement.
In consideration of the benefits, commitments and consideration to be provided by E&B
pursuant to this Agreement and in order to strengthen the public planning process and
reduce the economic costs of development, the voters of the City hereby provide E&B
assurance that it can proceed with the development of the Property for the Term of this
Agreement pursuant to the land use, density and intensity specified in the Current Land Use
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Regulations, the Project Approvals and this Agreement. E&B would not enter into this
Agreement or agree to provide the public benefits, commitments and consideration
described in this Agreement if it were not for the certainty provided by this Agreement that
the Property can be developed during the Term of this Agreement in accordance with the
Current Land Use Regulations and the Project Approvals including the land use, density
and intensity set forth in the Project Approvals.
2.2 Public Hearings. On June 23, 2014, the Planning Commission of the City, after providing
notice as required by law, held public hearings on the legislative elements of the Project,
including this Agreement and the amendments to the Hermosa Beach Municipal Code and
Coastal Land Use Plan and the EIR. The City Council, after providing public notice as
required by law, similarly held public hearings on the Project, including this Agreement
[insert dates and specific code provisions].
2.3 City Council and Voter Findings. The City Council adopted findings that review of the
environmental impacts of this Agreement and the Project Approvals has been conducted in
accordance with the provisions of CEQA and the State and local guidelines adopted
thereunder, and the City Council has given consideration to such environmental review
prior to placing the Ballot Measure on the ballot and has undertaken all actions necessary
to comply with CEQA. In approving the Ballot Measure and this Agreement, the voters
of the City have determined and found that this Agreement is consistent with the General
Plan, including the Land Use Plan of the Local Coastal Program, as amended, and all other
applicable City plans, policies and regulations, and is consistent with the standards of the
Hermosa Beach Municipal Code (including the Oil Code), all as amended by the Ballot
Measure Approvals.
Property. The Property includes all real property that is subject to this Agreement. The
Property as of the Election Date is commonly known as City Maintenance Yard, as more
fully described in Exhibit A-1 incorporated herein by reference.
2.4 The Project. The Project consists of the development, construction and operations on the
Property permitted under this Agreement and the Project Approvals. The description of
the Project and its uses are more fully described in the Project Description set forth in
Exhibit B which is incorporated herein by reference. The Project includes Off-site
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Components within the City of Hermosa Beach, and other elements located outside of the
City.
2.5 Project Approvals. The Project includes, without limitation, all items described in the
Project Description contained in Exhibit B and incorporated herein by reference and the
following Project Approvals:
(a) Conditional Use Permit for Oil Development at the City
Maintenance Yard, approved by the City in Resolution No. 93-
5632 (as set forth in Section 2.7 be low, to be abandoned per
HBMC Section 17.70.030 and superseded pursuant to the terms of
this Agreement);
(b) Environmental Impact Report, dated June 2014, prepared pursuant
to CEQA and certified by the City Council on July 8, 2014 (with
revisions identified in City Council Resolution No. 14-6908);
(c) Amendments to the Land Use Plan and Land Use Plan Map of the
Local Coastal Program (a component of the City’s General Plan),
approved by Ballot Measure __ on ________________, and by
Commission [insert Commission action] on
______________________;
(d) Amendment to the Municipal Code, approved by Ballot Measure
__ on _________________;
(e) Franchise for Oil and Pipelines, approved by Ballot Measure __ on
_______________;
(f) Amendment to the Oil Code, approved by Ballot Measure __ on
_______________; and
(e) Development Agreement, approved by Ballot Measure __ on
_________________, and by Commission [insert Commission
action] on _________________.
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
2.7. Abandonment of Conditional Use Permit. With adoption of the Ballot Measure, oil drilling
and production is permitted on the Property subject to a development agreement. The relevant
conditions of approval from the 1993 Conditional Use Permit (CUP) for oil development at the
Property (Resolution No. 93-5632) are incorporated into this Development Agreement as Exhibit
D-1 herein, and E&B shall comply with said conditions as required herein. Thus, upon the
Commencement Date, this agreement will supersede the 1993 CUP, which shall no longer serve
a regulatory purpose. Hermosa Beach Municipal Code Section 17.70.030 allows for voluntary
abandonment of a Conditional Use Permit. This Agreement at the Commencement Date shall
serve as both a written request to abandon the CUP and the City’s declaration that the 1993 CUP
is abandoned.
3 VESTED DEVELOPMENT RIGHTS
3.1 Vested Rights to Develop. Subject to the terms, conditions, and covenants of this
Agreement, including the Reservations of Power in Section 3.4, and the conditions of
approval and mitigation measures attached hereto and incorporated herein as Exhibit D,
E&B shall, as of the Approval Date, have a vested right to develop the Property and
Project, including Off-site Components, in accordance with, and to the extent of, the Project
Approvals, and the Current Land Use Regulations. The approved use of the Property, the
density and intensity of use, the maximum height, footprint, and square footage of
proposed buildings and structures, and provisions for reservation and dedication of land or
public purposes shall be those set forth in the Project Approvals and the attached Exhibits.
Nothing in this Agreement shall be deemed to obligate E&B to initiate development of the
Project or any portion thereof within any period of time or at all.
3.1.1 Certain Changes Prohibited Without Consent of E&B. Except as otherwise
provided in this Agreement, during the Term, the City shall not, as to the Property and the
Project, including Off-site Components, without the prior written consent of E&B, which may be
withheld in E&B’s sole and unfettered discretion: (a) change the Current Land Use Regulations,
or Project Approvals as they apply to the Property or Project so as to prevent or adversely affect
development or construction of the Project in accordance with this Agreement, the Current Land
Use Regulations or Project Approvals; or (b) apply to the Property or the Project any new or
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
amended ordinance, resolution, rule, regulation, requirement or official policy that is inconsistent
with the Current Land Use Regulations or Project Approvals, so as to prevent or adversely affect
development or construction of the Project in accordance with this Agreement, the Current Land
Use Regulations or Project Approvals, or prevent or adversely affect the operation of the Project
as contemplated hereby in accordance with the Current Land Use Regulations or Project
Approvals; or (c) apply to this Agreement, the Property or the Project any new or amended
ordinance, resolution, rule, regulation, requirement or official policy that requires additional
discretionary review or approval not otherwise required for the Project by the Current Land Use
Regulations or Project Approvals; or (d) apply to this Agreement, the Property or the Project any
new or amended ordinance, resolution, rule, regulation, requirement or official policy that
materially, adversely affects the timing or phasing of construction or development, or which
limits the availability of utilities or other infrastructure for the Project. For the purposes of this
Section 3.1, “ prevent or adversely affect development or construction of the Project” shall
include, without limitation, any changes which fundamentally affect the ability of any of the
permitted uses to operate within the Project (e.g. prohibit any of the uses in the Project
Approvals, change parking standards for any of the uses, etc.).
3.1.2 Rights are Vested. Unless amended or terminated in the manner specified
in this Agreement (and subject to the provisions of this Agreement), E&B shall have the rights
and benefits afforded by this Agreement and this Agreement shall be enforceable by E&B and
the City notwithstanding any growth control measure, initiative, proposition or any
development moratorium adopted after the Approval Date, or any change in the General Plan,
zoning, or subdivision regulations adopted by the City which alter or amend the Current Land
Use Regulations or Project Approvals or the adoption of any new or amended ordinance,
resolution, rule, regulation, requirement or official policy that is inconsistent with the Current
Land Use Regulations or Project Approvals and so as to prevent or adversely affect
development or construction of the Project in accordance with the Current Land Use Regulations
or Project Approvals. This Section shall be construed to prohibit the City from applying to the
Property or the Project, including any Off-site Components, any development moratorium or
growth control measure that is adopted specifically to prohibit the construction or operation of
the Project, or as an interim measure pending contemplated General Plan, Specific Plan or
zoning changes, or as a general growth control management measure except as provided for
pursuant to Section 3.4.
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
3.1.3 Future Changes to Current Land Use Regulations. F ollowing the
Approval Date, if the City modifies the Current Land Use Regulations in a manner that E&B, in
its sole discretion, determines is more beneficial than the Current Land Use Regulations, then
E&B may choose in its sole discretion to be governed by the modified land use regulations rather
than the Current Land Use Regulations, without E&B being deemed to have waived or limited
any rights, remedies or privileges under this Agreement.
3.2 Other Rights.
3.2.1 Future Ministerial Permits. E&B will seek additional ministerial permits
as required by the City, including, without limitation, excavation only permits, grading permits,
demolition permits, building permits, well permits, drilling permits and public works permits, as
needed to implement the Project Approvals and to construct and operate the Project.
Collectively, these ministerial permit applications are called the "Future Ministerial Permits".
The City agrees that it will not unreasonably withhold or unreasonably condition any of the
Future Ministerial Permits which must be issued by the City in order for the Project to proceed,
provided that E&B reasonably and satisfactorily complies with all preliminary procedures,
actions, payment of Processing Fees and criteria generally required for processing such Future
Ministerial Permits, and provided further that such Future Ministerial Permits comply with this
Agreement, the Current Land Use Regulations and the Project Approvals and approvals of other
governmental agencies with jurisdiction over the Project. T he City further agrees that no
discretionary permits, other than the Project Approvals, are required from the City to construct
and operate the Project.
3.3 Reservations of Power.
3.3.1 Limitations, Reservations and Exceptions. Notwithstanding any other
provision of this Agreement, the following subsequent land use regulations shall apply to the
development of the Property:
(a) Processing Fees (but not Exactions) imposed by the City to cover
the estimated actual costs to the City of processing applications for Project Approvals, fees for
monitoring compliance with any Project Approvals, inspection fees, or fees for monitoring
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
compliance with environmental mitigation measures.
(b) Procedural regulations applied on a City-wide, nondiscriminatory
basis relating to City entities required to review petitions or applications, forms of petitions and
applications, notice requirements, information requested with petitions or applications, conduct
of hearings, form of staff reports, nature and type of recommendations by City entities, appeal
procedures and any other similar matters of procedure.
(c) Regulations governing building codes and similar construction
standards and specifications including, but not limited to, the California and International Codes,
as they may be changed from time to time.
(d) Regulations that are necessary to protect the public health and
safety, including without limitation, development moratorium or limitation on the delivery of
City-provided utility services, which meet each of the following requirements: (a) are based on
genuine health, safety and general welfare concerns (other than general growth management
issues); (b) which arise out of a documented emergency situation, as declared by the President of
the United States, Governor of California, or the Mayor or City Council of the City of Hermosa
Beach; and (c) are based upon its terms or its effect as applied, does not apply exclusively or
primarily to the Property or the Project. To the extent possible, any such regulations shall be
applied and construed so as to provide E&B with the rights and assurances provided under this
Agreement. This subsection governs generally applicable emergencies in the area not specifically
related to or caused by the Project.
(e) Regulations that are not in conflict with the Project Approvals,
Current Land Use Regulations or this Agreement. Any regulation, whether adopted by initiative
or otherwise, limiting the rate, timing, phasing or sequencing of development of the Property
shall be deemed to conflict with the Project and shall therefore not be applicable to the
development of the Property. Any regulation limiting the permitted uses of the Property, limiting
the density or intensity of use of the Property, or limiting the size, height or location of
improvements on the Property shall be deemed to conflict with the Project Approvals and shall
therefore not be applicable to the development of the Property.
(f) Regulations that are in conflict with the Project, but as to which the
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
E&B has given its prior written consent for such regulations to be applied to the Property or to
the development of the Property.
(g) Regulations applied on a City-wide, non-discriminatory basis that
do not prevent or adversely affect development or construction of the Project.
3.3.2 Modification or Suspension by State or Federal Law. In the event that
state or federal laws or regulations, or those of any regional authority having jurisdiction over the
Project or Property, enacted after the Approval Date of this Agreement, prevent or preclude
compliance with one or more of the provisions of this Agreement or the Project conditions, such
provisions of this Agreement shall be modified or suspended as may be necessary to comply
with such state, federal, or regional authority laws or regulations and to effectuate to the extent
possible the terms of this Agreement.
3.3.3 Police Power. The parties acknowledge and agree that City is restricted in
its authority to limit it s police power by development agreement and that the foregoing
limitations, reservations and exceptions are intended to reserve to City all of its police power
which cannot be so limited. This Agreement shall be construed to reserve to City all such power
and authority which cannot be restricted by development agreement.
3.3.4 Taxes, Assessments and Fees. Anything herein to the contrary
notwithstanding, City may impose on the Project any new non-discriminatory, City-wide taxes,
assessments and fees, including but not limited to business license taxes or franchise fees, but not
including any Exaction or other fee designated to mitigate the impact of development of the
Project.
3.4 Regulation by Other Public Agencies. It is acknowledged by the parties that other public
agencies not within the control of the City may possess authority to regulate aspects of the
development of the Property separately from or jointly with City, and this Agreement does
not limit the authority of such other public agencies. Changes to the project mandated by
such regulatory agencies shall be automatically included into this Development
Agreement as set forth in Section 10.F of the Ballot Measure and shall supersede any
inconsistent provisions herein.
3.5 Agreement and Assurances on the Part of E&B. Without in any way limiting E&B’s
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
rights under Section 5.2.2 not to proceed with development of the Project and, in such an
event, to terminate this Agreement in its sole and subjective business judgment, if E&B
proceeds with the Project, E&B agrees that it will use commercially reasonable efforts, in
accordance with its own business judgment and taking into account market conditions and
economic considerations, to develop the Project, in accordance with the terms and
conditions of this Agreement, the Current Land Use Regulations, the Lease and the Project
Approvals.
3.6 Public Benefits.
3.6.1 The parties acknowledge and agree that development of the Project will
result in public benefits as set forth in Exhibit C. The City acknowledges the adequacy of the
consideration, including the Public Benefits, provided by E&B to the City pursuant to this
Agreement.
3.6.2 Exactions and Processing Fees.
3.6.2.1 Exactions. No Exaction may be imposed on this Project except as
specifically articulated in this Agreement, and except as required by the conditions of approval
and the Mitigation Monitoring and Reporting Program contained in Exhibit D.
3.6.2.2 Processing Fees. E&B shall pay to City all applicable Processing
Fees regularly charged by the City and the amount of such Processing Fees may be increased
from time to time on a non-discriminatory City-wide basis.
3.7 Public Improvements and Utilities
3.7.1 Installation Obligations. The parties hereby agree that the obligations to
install public improvements and utilities necessary for the development of the Property shall be
as provided for in the Project Approvals.
3.7.2 City-Provided Utilities: Reservation of Sufficient Capacity. To the extent
that it is within the control of the City, the City shall use its best efforts to ensure that there shall
be sufficient capacity, facilities and services with respect to City-provided utilities to complete
construction of the Project and open the uses thereon to the public. The City agrees that if
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
limitations in the provision of utilities become necessary due to the existence of an emergency
situation, they shall be applied only to the extent necessary to respond to such emergency, and
shall not be applied against the Property or the Project in a discriminatory manner.
3.7.3 City-Provided Utilities: Nondiscriminatory Rates and Provision of
Service. The City agrees that rates and charges for City-provided utilities for the Property and
Project shall not be set or imposed in a discriminatory manner, but shall be those rates and
charges that are or would be generally applicable to any user of a co mparable quantity and
quality of the utility use in the City (i.e., any other entity whose use or consumption of the utility
is comparable to that of E&B), and that the City shall not discriminate against the Property or the
Project in the provision of any City-provided utilities (such as potable and reclaimed water,
sewer and drainage).
3.7.4 Dedications, Reservations and Conditions of Development. The portions
of Property to be reserved or dedicated for public purposes pursuant to this Agreement, if any,
shall be that property described in the Project Approvals. Unless otherwise indicated herein, the
property described in the Project Approvals to be reserved or dedicated for public use shall be
dedicated by E&B as provided in the Project Approvals. The City shall take such actions as may
be necessary to vacate any prior dedications, offers to dedicate and grants of easements that are
no longer necessary for the development of the Project in accordance with this Agreement.
3.8 Mitigation Measures and Conditions of Approval. E&B shall at its own expense timely
perform all mitigation measures identified in the environmental documentation for the
Project and conditions of approval identified in the Project Approvals as set forth in
Exhibit D. E&B shall have no duty to complete the mitigation measures or conditions of
approval, except as otherwise set forth in this Agreement, if the contemplated development
fails to occur.
4 ASSIGNMENT, AMENDMENT AND REVIEW
4.1 Assignment
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
4.1.1 Right to Assign. E&B shall have the right to sell, transfer or assign its
rights or interests in the Property in whole or in part (provided that no such partial transfer shall
be permitted to cause a violation of the Subdivision Map Act, Government Code Section 66410
et seq.) to any person, partnership, joint venture, firm or corporation at any time during the
Term, subject to the City’s consent, as provided in Subsection 4.1.2. The conditions and
covenants set forth in this Agreement and incorporated herein shall run with the land and the
benefits and burdens shall bind and inure to the benefit of the parties. Any such sale, transfer or
assignment shall include the assignment and assumption of the rights, duties and obligations
arising under or from this Agreement with respect to the property transferred and shall be made
in strict compliance with the following requirements:
(a) Except as provided in Section 6.17 of this Agreement, no sale,
transfer or assignment of any right or interest under this Agreement shall be made unless made
together with the sale, transfer or assignment of all or a part of the Property and then, only in
accordance herewith.
(b) Concurrently with the closing of such sale, transfer or assignment,
E&B shall provide the City with an executed agreement by the purchaser, transferee or assignee
and providing therein that the purchaser, transferee or assignee expressly and unconditionally
assumes the duties and obligations of E&B under this Agreement to the extent of such transfer or
assignment, in a form satisfactory to the City Attorney.
(c) The purchaser, transferee or assignee shall provide the City with
security equivalent to any security previously provided by E&B to secure performance of its
obligations hereunder, if any, or under any of the Project Approvals.
Any sale, transfer or assignment under Section 4.1 of this Agreement not made in strict
compliance with the foregoing conditions shall constitute a default by E&B under this
Agreement and any such assignment shall be void and of no effect. Notwithstanding the
failure of any purchaser, transferee or assignee to execute the agreement required by
subparagraph (b) of this Subsection 4.1.1, the burdens of this Agreement shall be binding upon
such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to
such purchaser, transferee or assignee until and unless such agreement is executed.
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
4.1.2 City’s Reasonable Consent Required. E&B may sell, transfer or assign its
rights or interests in the Property in whole or in part and this Agreement to any other person,
partnership, joint venture, firm, corporation, trust or other lawful entity with the City’s consent,
which consent shall not be unreasonably withheld or conditioned (“Transfer”). In the event E&B
desires to make such Transfer, E&B shall submit to the City a request for approval at least forty-
five (45) days prior to such Transfer, which approval shall not be unreasonably withheld,
conditioned or delayed by the City. The City may withhold, condition or delay its approval upon
finding of any of the following:
(a) The proposed purchaser, transferee or assignee lacks the financial
ability to perform the obligations of this Agreement;
(b) The proposed purchaser, transferee or assignee lacks the necessary
qualifications, competence, experience or capability to implement the development plan
contemplated by the Project Approvals with the skill, expertise and quality equivalent to that of
E&B; provided, however, if the proposed purchaser, transferee or assignee is a nationally or
regionally recognized, or regionally known in Southern California, as an owner or developer of
oil and gas facilities, such proposed purchaser, transferee or assignee shall be deemed to have
met this requirement; or
(c) An Event of Default by E&B as defined in Section 5.1.1 ha s
occurred and is continuing under this Agreement. E&B shall provide to the City such
information that the City reasonably requests in order for the City to make any determinations
provided for by this Subsection 4.1.2. E&B agrees to provide such information on a timely basis
sufficient to permit the City to make its determinations within the forty-five (45) day time period.
4.1.3 Applicability. The provisions of Sections 4.1.1 and 4.1.2 s hall not be
applicable to a Transfer as a result of which E&B retains at least a fifty (50) percent interest in
the Property or as a result of which E&B retains at least twenty-five (25) percent interest in the
Property and maintains effective management control of the Project.
4.2 Changes and Amendments to Project
4.2.1 In the event E&B reasonably finds that a change or amendment in the
Project Approvals is reasonably necessary or appropriate, E&B shall apply for any required
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
changes to the Project Approvals. Any such application that does not require an amendment to
the Zoning Ordinance, or General Plan shall be processed in the normal manner for processing
such matters in accordance with the Current Land Use Regulations, except as otherwise provided
by this Agreement, including the Reservations of Power. A ny application that requires an
amendment to the Zoning Ordinance, or General Plan shall be processed in the normal manner
for processing such matters in accordance with the land use regulations in effect at the time the
application is filed.
4.2.2 Minor Changes to Project - No Amendment of Agreement
The parties acknowledge that refinements or modifications of the Project
may be required during the Term. The parties agree that refinements and modifications which
constitute a "Minor Change” in the Project or Project Approvals shall not require an amendment
to this Agreement or public notice and a hearing. For any such Minor Change, the City shall not
impose as a condition to approval any Exaction, except as authorized in this Agreement. The
City Manager shall be authorized to make the determination on behalf of the City whether a
requested refinement or modification may be effectuated pursuant to this Section 4.2.2 o r
whether the requested refinement or modification is of such a character to require an amendment
hereof pursuant to Section 4.2.3. The City Manager shall be authorized to approve any Minor
Changes hereunder on behalf of the City. If and when the parties find that Minor Changes are
necessary or appropriate, they shall, unless otherwise required by law, effectuate such changes or
adjustments through a letter prepared by the City Manager, which, after execution, shall be
attached hereto as addenda and become a part hereof. The City Manager may consult with
technical experts in making the determination that a requested refinement or modification is a
“Major” or “Minor Change.” The City Manager shall not unreasonably withhold or delay its
determination that a requested refinement or modification is a “Minor Change” as that term is
used herein. A change to the Project Approvals shall not be deemed “Minor Change” if such
change:
(a) Alters the permitted uses of the Property as a whole;
(b) Requires an amendment to the Zoning Ordinance, or General Plan,
or other legislative acts not contemplated in this Agreement;
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
(c) Increases the density or intensity of use of the Property as a whole;
(d) Constitutes a project requiring a subsequent or supplemental
environmental impact report pursuant to Public Resources Code
Section 21166;
(e) Creates a situation adverse to public health or safety.
4.2.3 Other Changes. Any change in the Project which does not qualify as a
"Minor Change" as defined herein shall require an amendment to this Agreement as provided in
Section 6.9, and compliance with CEQA as applicable.
4.3 Annual/Special Review.
4.3.1 Annual Review. The City shall, at least every twelve (12) months during
the Term of this Agreement, review the extent of good faith substantial compliance by E&B with
the terms of this Agreement. Subject to the notice and cure procedure set forth in Section 5.1.2,
such a periodic review may result in amendment or termination of this Agreement, provided a
default has been established under the terms of this Agreement. Pursuant to Government Code
Section 65865.1, as amended, E&B shall have the duty to file an annual review request with
the City, pay any applicable Processing Fees for such annual review and demonstrate its good
faith compliance with the terms of this Agreement at such periodic review. Upon request by the
City, E&B shall provide such information as may be necessary or appropriate in order to ascertain
compliance with this Agreement, provided however, that the parties recognize that this
Agreement and the documents incorporated herein could be deemed to contain many
requirements (i.e., construction standards, landscape standards, etc.) and that evidence of each
and every requirement would be a wasteful exercise of the parties' resources. Accordingly, E&B
shall be deemed to have satisfied its duty of demonstration if it presents evidence satisfactory to
the City of its good faith and substantial compliance with the major provisions of this
Agreement.
4.3.1.1 Any party may address any requirement of this Agreement during
the review. However, ten (10) days’ written notice of any requirement to be addressed shall be
made by the requesting party. If at the time of review an issue not previously identified in
writing is required to be addressed, the review at the request of either party shall be continued to
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
afford sufficient time for analysis and preparation.
4.3.2 Special Review. The City Council may order a special review of
compliance with this Agreement at any time. The Director of Community Development or City
Council, as determined from time to time by the City Council, shall conduct such special
reviews. Any special review shall comply with the procedural provisions of an annual review as
provided by Section 4.3.1.
4.3.3 Opportunity to be Heard. Upon written request to the City by E&B, E&B
shall be permitted an opportunity to be heard orally and/or in writing at a hearing before the City
Council regarding its performance under this Agreement. E&B shall also be heard before the
City Council at any required public hearing concerning a review of action on the Agreement.
4.3.4 Information to be Provided E&B. The City shall, to such an extent as is
practical, deposit in the mail to E&B a copy of staff reports and related exhibits concerning
contract performance a minimum of seven (7) business days prior to any such review or action
upon this Agreement by the Planning Commission or the City Council.
5 DEFAULT, REMEDIES AND TERMINATION
5.1 Enforceability.
5.1.1 Default. Subject to Sections 5.1.2 a nd 5.1.3, failure by any party to
perform any term or provision of this Agreement required to be performed by such party shall
constitute an event of default ("Event of Default”). In the event that E&B files for reorganization
or other relief under any Federal or State bankruptcy or insolvency law, whether voluntarily or
by involuntary bankruptcy or insolvency action, all provisions of this Agreement shall remain in
full force and effect unless E&B engages in an Event of Default. For purposes of this
Agreement, a party claiming another party is in default shall be referred to as the "Complaining
Party", and the party alleged to be in default shall be referred to as the "Party in Default".
5.1.2 Procedure Regarding Defaults.
5.1.2.1 Notice of Default. The Complaining Party shall give written notice
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
of default to the Party in Default, specifying the default complained of by the Complaining Party.
Delay in giving such notice shall not constitute a waiver of any default nor shall it change the
time of default. The Party in Default shall diligently endeavor to cure, correct or remedy the
matter complained of, provided the such cure, correction or remedy shall be completed within
the applicable time period set forth herein after receipt of written notice (or such additional, time
as may be deemed by the Complaining Party to be reasonably necessary to correct the matter).
Any failures or delays by a Complaining Party in asserting any of its rights and remedies as to
any default shall not operate as a waiver of any default or of any such rights or remedies. Delays
by a Complaining Party in asserting any of its rights and remedies shall not deprive the
Complaining Party of its right to institute and maintain any actions or proceedings which it may
deem necessary to protect, assert, or enforce any such rights or remedies. If an Event of Default
occurs, prior to exercising any remedies, the Complaining Party shall give the Party in Default
written notice of such default. Without limitation, evidence of default may arise in the course of
the regularly scheduled annual review or a special review described in Section 4.3.
5.1.2.2 Cure Periods. If the default is reasonably capable of being cured
within thirty (30) days, the Party in Default shall have such period to effect a cure prior to
exercise of remedies by the Complaining Party. If the nature of the alleged default is such that it
cannot practicably be cured within such thirty (30) day period, the cure shall be deemed to have
occurred within such thirty (30) day period if (i) the cure is commenced at the earliest practicable
date following receipt of the notice; (ii) the cure is diligently prosecuted to completion at all
times thereafter; (iii) at the earliest practicable date (in no event later than thirty (30) days after
the curing party's receipt of the notice), the curing party provides written notice to the other party
that the cure cannot practicably be completed within such thirty (30) day period; and (iv) the cure
is completed at the earliest practicable date. In no event shall the Complaining Party be
precluded from exercising remedies, subject to the preceding sentence if a default is not cured
within sixty (60) days after the first notice of default is given. Subject to the foregoing, if a party
fails to cure a default in accordance with the foregoing, the Complaining Party, at its option, may
terminate this Agreement pursuant to this Agreement and California Government Code Section
65868, and/or institute legal proceedings pursuant to this Agreement.
5.1.2.3 Procedures Regarding City Termination. Notice of intent to
terminate shall be by certified mail, return receipt requested. Upon delivery by the City of notice
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
of intent to terminate, the matter shall be scheduled for consideration and review by the City
Council within thirty (30) days in accordance with Government Code Sections 65867 and 65868.
Upon consideration of the evidence presented in said review and a determination by the City
Council based thereon, the City may give written notice of termination of this Agreement to
E&B. Any determination of default (or any determination of failure to demonstrate good faith
compliance as a part of annual review) made by the City against E&B, or any person who
succeeds to E&B with respect to any portion of the Property, shall be based upon w ritten
findings supported by substantial evidence in the record. Any purported termination of this
Agreement for alleged default shall be subject to review in the Superior Court of the County of
Los Angeles pursuant to Code of Civil Procedure § 1094.5(c).
5.1.3 Institution of Legal Action. Subject to notice of default and opportunity to
cure under Section 5.1.2, and subject further to the limitation on remedies set forth in Section
5.1.4, in addition to any other rights or remedies, any party to this Agreement may institute legal
action to cure, correct or remedy any default, to enforce any covenants or agreements herein, to
enjoin any threatened or attempted violation hereof, or to obtain any other remedies consistent
with this Agreement. If a legal action or proceeding is brought by any party to this Agreement
because of an Event of Default under this Agreement, or to enforce a provision hereof, the
prevailing party shall be entitled to reimbursement of all costs and expenses, including
reasonable attorneys’ fees, incurred in prosecuting such legal action or proceeding. This
provision is separate and several and shall survive the merger of this Agreement into any
judgment on this Agreement. Additionally, in the event of a court finding (1) a violation of this
development agreement or the conditions of approval in Exhibit D to this agreement, or (2) a
violation of an order issued under Hermosa Beach Oil Code Section 21-A-10.1, a court may
impose civil penalties up to $10,000/per day for each day in which E&B is determined to be non-
compliant.
5.1.4 Remedies.
5.1.4.1 E&B’s Remedies. It is acknowledged by the parties that the City
would not have entered into this Agreement if it were liable in damages under or with respect to
this Agreement or the application thereof. In addition, the parties agree that monetary damages
are not an adequate remedy for E&B if the City should be determined to be in default under this
Agreement. The parties further agree that specific performance shall be E&B’s only remedy
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
under this Agreement and E&B may not seek monetary damages in the event of a default by City
under this Agreement. E&B covenants not to sue for or obtain monetary damages for the breach
by City of any provision of this Agreement.
5.1.4.2 City's Remedies. The parties agree that the City shall have limited
remedies for monetary damages and specific performance as specifically provided for in this
Section 5.1.4.2. The City shall not have any right to compel specific performance with respect to
the construction of the Project, or any obligation to construct the Project, including without
limitation Section 3.7. Further, the City shall have no right to monetary damages as a result of
E&B's failure to construct the Project or its failure to comply with Section 3.7. The City shall
have the right to sue for monetary damages for failure by the E&B to pay any amounts owing
under this Agreement including without limitation any amounts owing pursuant to Section 6.5.1.
In no event shall the City be entitled to consequential damages or punitive damages for any
breach of this Agreement. City also shall have the right to seek monetary damages for
reimbursement of the actual cost to the City incurred by the City to construct, complete,
demolish, remove or restore any physical infrastructure improvement in the public right of way
which E&B commences construction of but fails to complete. E&B’s failure or refusal to
perform any provision of this Agreement causes an immediate and serious threat to life, health,
property or natural resources, the City may pursue all remedies available under the Hermosa
Beach Oil Code Chapter 21-A and Section 21 of the Lease.
5.1.4.3 Other Actions. Nothing in this Agreement shall be deemed to
waive or limit any rights and remedies that the parties would otherwise have against the other
relating to matters not covered by this Agreement.
5.2 Termination of Agreement.
5.2.1 As to the Property and all of the rights of E&B hereunder, and except as
otherwise provided in this Agreement, this Agreement shall be deemed terminated and of no
further effect upon the expiration of the Term of this Agreement unless earlier terminated
pursuant to this Agreement. Subject to the notice and cure provisions set forth in Section 5.1.2,
the City shall have the right to terminate this Agreement as to the Property and the rights of E&B
hereunder, in the event E&B defaults and fails to cure such default within the respective cure
period. Subject to the notice and cure provisions set forth in Section 5.1.2, E&B shall have the
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
right to terminate this Agreement and the rights of the City hereunder in the event the City
defaults and fails to cure such default within the respective cure period. Upon the termination of
this Agreement, neither party shall have any further right or obligation with respect to the
Property hereunder except with respect to any obligation to have been performed prior to such
termination or with respect to any default in the performance of the provisions of this Agreement
which has occurred prior to such termination (other than commencement of construction of either
phase) or with respect to any obligations which are specifically set forth as surviving this
Agreement. Termination of this Agreement pursuant to this Section 5.2 shall cause the rights and
benefits afforded by this Agreement to no longer be vested (subject to planning and zoning law)
and as a result, the City shall no longer be limited from taking any action which may adversely
affect the Property or the Project.
5.2.2 Termination by E&B Prior to Development. E&B is free, in its sole and
subjective business judgment, not to proceed with development of the Project and, in such an
event, to terminate this Agreement. The City acknowledges that such a right is consistent with
the intent, purpose and understanding of the parties to this Agreement. In the event E&B decides
not to proceed with development of the Project and to terminate this Agreement, E&B shall
provide written notice to the City of that decision and of the final, irrevocable termination of this
Agreement. Immediately upon the giving of such written notice to the City, the parties’ rights
and obligations under this Agreement shall cease, except with respect to any obligations which
are specifically set forth as surviving this Agreement. In the event of such written notice to the
City terminating this Agreement, all Project Approvals (but not the Lease, Settlement Agreement
and those included in the City’s General Plan and/or the Municipal Code), shall terminate and be
extinguished. Termination by E&B shall not affect any of E&B’s obligations to pay assessments,
liens or taxes incurred prior to the effective date of termination.
6 GENERAL PROVISIONS
6.1 Term.
6.1.1 Term. The Term of this Agreement shall commence upon t he
Commencement Date and shall be coterminous with the term of the Lease, unless terminated,
modified or extended pursuant to the provisions of this Agreement or by the voters of the City.
The Term of this Agreement shall be tolled during any period of time in which a Force Majeure
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Delay exists.
6.1.2 Additional Rights. Expiration or termination of this Agreement shall not
affect any right vested under law independent of this Agreement.
6.2 Approval, Execution and Recordation Procedure. The following procedure shall govern
approval of this Agreement:
(a) The voters shall have approved Ballot Measure __ approving this
Agreement;
(b) Following voter approval, the Hermosa Beach City Council shall
declare the vote in accordance with Elections Code Section 9217 and execute the Development
Agreement;
(c) As provided in Section 65868.5 of the Development Agreement
Act, following execution by the City, the City shall cause a co py of this Agreement to be
recorded with the County Recorder within ten (10) days. Any recording costs shall be paid by
E&B; and
(d) Following execution and recordation, the Coastal Commission
shall have approved this Agreement (which shall include any revisions to this Agreement
authorized by Section 10.F of the Ballot Measure Ordinance);
6.3 Cooperation and Implementation. City represents that it will cooperate with E&B to the
fullest extent reasonable and feasible to implement this Agreement. Upon satisfactory
completion by E&B of all of its preliminary actions and payments of appropriate fees, City
shall promptly commence and diligently proceed to complete all steps necessary for the
implementation of this Agreement and the development of the Property in accordance
with the terms of this Agreement, including, but not limited to, the processing and
checking of any and all Project Approvals, agreements, covenants and related matters
required under the conditions of this Agreement, building plans and specifications, and any
other plans necessary for the development of the Property, requests for inspections and
certificates of occupancy, filed by or on behalf of E&B. E&B shall, in a timely manner,
provide City with all documents, plans and other information necessary for the City to
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
carry out its obligations hereunder.
6.4 Legal Challenges.
6.4.1 Defense. If any legal action or other proceeding is instituted by a third
party or parties, other governmental entity or official challenging the validity of any provision of
the Project Approvals, of the EIR or of this Development Agreement, E&B and the City shall
cooperate in defending any such action. The City shall notify E&B of any such legal action
against City within ten (10) days after the City receives service of process, except for any
petition for a Temporary Restraining Order, in which case the City shall notify E&B
immediately upon receipt of notice thereof.
6.4.2 Continued Processing. The filing of any lawsuit(s) by a third party (not a
party to this Agreement) after the Approval Date against the City and/or E&B relating to this
Agreement or to other development issues affecting the Project shall not delay or stop the
processing or issuance of any permit or authorization necessary for development of the Project,
unless the City in good faith determines that such delay is legally required.
6.5 Indemnity.
6.5.1 E&B Indemnity. To the fullest extent permitted by law, and
notwithstanding the indemnification provisions set forth in the Lease, E&B hereby agrees, at its
sole cost and expense, to defend, protect, indemnify, and hold harmless the City and its elected
officials, officers, attorneys, agents, employees, consultants, volunteers, successors, and assigns
(collectively "Indemnitees") from and against any and all third party damages, costs, expenses,
liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens,
and losses of any nature whatsoever, including reasonable fees of accountants, attorneys,
engineers, consultants or other professionals and all costs associated therewith, arising or
claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to
any act, failure to act, error, or omission of E&B or any of its officers, agents, servants, lessees,
employees, contractors, subcontractors, materialmen, suppliers or their officers, agents, servants,
lessees, or employees, or arising or claimed to arise, directly or indirectly, out of, in connection
with, resulting from, or related to this Agreement or Project Approvals, or any approval
subsequently granted by the City for the development of the Property, any construction permitted
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
pursuant to this Agreement or Project Approvals, or any subsequent use of the Property, or any
portion thereof, permitted by this Agreement or Project Approvals except for any actions
resulting from the gross negligence or intentional acts of an Indemnitee. The City may elect to
participate in the litigation, in which case E&B agrees to reimburse the City for its litigation
costs and fees, including the retention of outside counsel. Neither party shall settle any such
lawsuit without the consent of the other party.
6.5.2 Survival of Indemnity. The indemnity provisions contained in Sections 6.4
and 6.5 shall survive the termination of the Agreement and are in addition to any other rights or
remedies which Indemnitees may have under the law. Payment is not required as a condition
precedent to an Indemnitee's right to recover under these indemnity provisions, and an entry of
judgment against an Indemnitee shall be conclusive in favor of the Indemnitee's right to recover
under these indemnity provisions. E&B shall pay Indemnitees for any reasonable attorneys’ fees
and costs incurred in enforcing these indemnification provisions.
6.6 Notices. All notices or other communications required hereunder shall be in writing and
shall be personally delivered (including by means of professional messenger service), or
sent by registered or certified mail, postage prepaid, return receipt required, or by
electronic mail (provided the email transmission is followed by delivery of a "hard" copy),
and shall be deemed received on the date of receipt personally, by registered or certified
mail or by facsimile.
Unless otherwise indicated in writing, such notice shall be sent addressed as
follows:
If to the City:
City Manager
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
With a copy to:
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
Michael Jenkins, Esq.
Jenkins & Hogin
1230 Rosecrans Avenue, Suite 110
Manhattan Beach, CA 90266
Telephone: (310) 643-8448
Fax: (310) 643-8441
If to E&B:
E & B Natural Resources Management Corporation
1600 Norris Road
Bakersfield, CA 93308
Telephone: (661) 679-1797
Fax:
With a copy to:
[name]
Telephone:
Fax:
6.7 No Third Party Beneficiaries. This Agreement is made and entered into for the sole
protection and benefit of the parties to this Agreement and their successors and assigns. No
other person shall have any right of action based upon any provision of this Agreement.
6.8 Time of Essence. Time is of the essence for each provision of this Agreement of which
time is an element.
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Development Agreement between City of Hermosa Beach and E&B Natural Resources
6.9 Modification, Amendment or Extension. Subject to any notice and hearing requirements
imposed by law, this Agreement may be modified, amended and/or extended from time to
time by mutual written consent of the City Council and E&B as set forth in Government
Code Sections 65867, 65867.5 and 65868 a nd Section 10.G of the Ballot Measure
Ordinance and Chapter 19.66 of the Municipal Code.
6.10 Conflicts of Law. In the event that state, regional or federal laws or regulations enacted
after the Approval Date or the action or inaction of any other affected governmental
jurisdiction prevent or preclude compliance with one or more provisions of this Agreement
or require changes in plans, maps or permits approved by the City, the parties shall (a)
provide the other party with written notice of such state, regional or federal restriction,
provide a copy of such regulation or policy and a statement of conflict with the provisions
of this Agreement, and (b) E&B and the City staff shall, within thirty (30) days, meet and
confer in good faith in a reasonable attempt to modify this Agreement, but only to the
minimum extent necessary to comply with such federal, regional or state law or regulation.
Thereafter, regardless of whether the parties reach an agreement on the effect of such
federal, regional or state law or regulation upon this Agreement, the matter shall be
scheduled for hearings before the Council. Ten (10) days’ written notice of such hearing
shall be given, pursuant to Government Code Sections 65090 and 65867. The Council, at
such hearing, shall determine the exact modification or suspension which shall be
necessitated by such federal, regional or state law or regulation. E&B, at the hearing, shall
have the right to offer oral and written testimony. Any modification or suspension shall be
taken by the affirmative vote of not less than a majority of the authorized voting members
of the Council. Any suspension or modification may be subject to judicial review. The
City shall cooperate with E&B in the securing of any permits which may be required as a
result of such modifications or suspensions, subject to the payment of costs by E&B as set
forth in Condition A-3 of Exhibit D-2 (and any other reimbursement authorized under this
agreement), and the indemnity provisions in Section 6.5 of this agreement. If E&B and the
City do not agree on the modification or suspension, either party may elect to terminate this
Agreement, upon 30 days’ written notice to the other Party.
6.11 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing
and signed by a duly authorized representative of the party against whom enforcement of a
32
Development Agreement between City of Hermosa Beach and E&B Natural Resources
waiver is sought and referring expressly to this Section. No waiver of any right or remedy
in respect of any occurrence or event shall be deemed a waiver of any right or remedy in
respect of any other occurrence or event
6.12 Successors and Assigns. Except as expressly provided to the contrary in this Agreement,
the burdens and obligations of this Agreement shall be binding upon, and the benefits of
this Agreement shall inure to, all successors in interest to the parties to this Agreement and
all successors in interest to the Property or any portion thereof or any interest therein, and
shall be covenants running with the land.
6.13 Governing State Law. This Agreement shall be construed in accordance with the laws of
the State of California.
6.14 Constructive Notice and Acceptance. Every person who now or hereafter owns or acquires
any right, title or interest in or to any portion of the Property is and shall be conclusively
deemed to have consented and agreed to every provision contained herein, whether or not
any reference to this Agreement is contained in the instrument by which such person
acquired an interest in the Property.
6.15 Statement of Compliance. Within thirty (30) days following any written request, in
accordance with the notice provisions of this Agreement, which either party may make
from time to time, and upon payment of a fee to the City to reimburse the City for its
reasonable expenses associated herewith, the other party shall execute and deliver to the
requesting party a statement certifying that: (a) this Agreement is unmodified and in full
force and effect or, if there have been modifications hereto, that this Agreement is in full
force and effect, as modified, and stating the date and nature of such modifications; (b)
that this Agreement is in full force and there are no current uncured defaults under this
Agreement or specifying the dates and nature of any such defaults, and manner of cure; (c)
any other information reasonably requested. The failure to deliver such statement within
such time shall be conclusive upon the party which fails to deliver such statement that this
Agreement is in full force and effect without modification except as may be represented by
the requesting party and that there are no un cured defaults in the performance of the
requesting party. Said statement(s) shall be in the form reasonably satisfactory to the City,
E&B and to any purchaser, lender, title company, governmental agency, or other person
33
Development Agreement between City of Hermosa Beach and E&B Natural Resources
reasonably requesting such statement(s) in connection with sale, use, development,
construction, financing or marketing of the Property. The City and E&B, for their own
respective uses, shall also be entitled to obtain a statement of compliance at any reasonable
time.
6.16 Insurance. E&B shall be subject to the insurance requirements of section 18(b) of and
Exhibit C to the Lease, and the additional insurance requirements set forth herein. To the
extent that the provisions set forth inconsistent terms, the provisions set forth herein shall
prevail. E&B shall demonstrate to the City that it carries on the E&B Project General
Liability Insurance, in an aggregate amount of not less than $15,000,000, combined limits,
$15,000,000 in Well Control Drilling Insurance, and a policy of Pollution Legal Liability
Insurance in an aggregate amount of not less than $30,000,000 combined limits. This
insurance shall provide coverage for claims for bodily injury, environmental or property
damage that result from pollution conditions at, on or emanating from the E&B facilities.
The General Liability Insurance policy shall include the following endorsements or similar
endorsement providing equivalent coverage: CG 04 20 (Pollution—Limited Exception for
a Short-Term Pollution Event); and CG 22 62 (Underground Resources and Equipment
Coverage).
There shall be no modification of the General Liability Insurance policy limiting the scope
of coverage for liability arising from oil and gas producing operations, using any of the
following endorsements or their equivalents: CG 22 73 (Exclusion—Oil or Gas Producing
Operations); CG 22 57 ( Exclusion—Underground Resources and Equipment); CG 22 47
(Exclusion—Saline Substances Contamination); and CG 21 42 ( Exclusion—Explosion,
Collapse, and Underground Property Damage Hazard (Specified Operations)) or CH 21 43
(Exclusion—Explosion, Collapse, and Underground Property Damage Hazard (Specified
Operations Excepted)). The Pollution Legal Liability Insurance policy may not contain an
exclusion of onsite remediation costs if such an exclusion would exclude, remove or
impair coverage for onsite remediation performed in response to a governmental order,
demand, warning or other legally enforceable requirement. Should an exclusion exist in
the policy, E&B shall post a bond to cover costs associated with remediation.
The insurance policies must be secured through an insurance company having a Best’s
rating of “A – VII” or better. E&B shall submit one or more certificates of insurance to the
34
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Community Development Department to be approved by the City Risk Manager. The
General Liability and Pollution Legal Liability Insurance policies shall be in place prior to
issuance of the Permit and shall remain in full force and effect until revocation of the
permit. E&B shall submit certificates of insurance 30 days in advance of the renewal
anniversary of each policy. Such certificate(s) shall evidence the coverages described
above, shall name the City of Hermosa Beach as an additional insured as to each policy
provided, and shall afford the City 60 days advance notice of cancellation or non-renewal.
The City Risk Manager may adjust the aggregate coverage amount specified above over
time depending on factors such as inflation, modifications to State and Federal oil spill
financial responsibility guidelines, and project modifications. In making such adjustments,
the City Risk Manager shall give due regard to the cost and availability of such coverage,
and shall allow E&B a reasonable period of time in which to place such coverage.
The Well Control Drilling Insurance policy shall only be required to be in effect while
drilling operations are being conducted. E &B may satisfy the Well Control Drilling
Insurance requirement by having its drilling contractor or subcontractors supply the
required insurance, so long as the aggregate insurance maintains the total required.
6.17 Mortgagee Protection. The parties hereto agree that this Agreement shall not prevent or
limit the right of E&B at its sole discretion, to encumber its leasehold interest in the
Property or any portion thereof or any improvement thereon by any mortgage or other
security device (collectively "Mortgage") securing financing of the purchase, development
or operation of the Property or any portion thereof (including, without limitation, any
combination of purchase financing, construction financing, bridge loans, take-out and
permanent financing), as provided in this Agreement; provided, however, that any such
Mortgage shall be subordinate to the rights and obligations under this Agreement.
The City acknowledges that prospective lenders providing such financing may request
certain acknowledgements, estoppels, interpretations and/or modifications of this
Agreement, and agrees upon request, from time to time, and upon payment of a fee to the
City to reimburse the City for its reasonable expenses associated herewith, to meet with
E&B and representatives of such lenders to discuss in good faith any such request for
acknowledgements, estoppels, interpretations and/or modifications. The City shall not
unreasonably withhold its consent to and/or execution of any such requested
35
Development Agreement between City of Hermosa Beach and E&B Natural Resources
acknowledgements, estoppels, interpretations and/or modifications which the City
determines is consistent with the intent and purposes of this Agreement and reasonably
protects the interests of the City under this Agreement.
If the City timely receives a request from a Mortgagee requesting a copy of any notice of
default given to E&B under the terms of this Agreement, the City shall provide a copy of
that notice to the Mortgagee within ten (10) days of sending the notice of default to E&B,
as the case may be. The Mortgagee shall have the right, but not the obligation, to cure the
default during the remaining cure period allowed such party under this Agreement.
Any Mortgagee who comes into possession of E&B’s interests in the Property, or any part
thereof, pursuant to foreclosure of the mortgage, shall take the Property, or part thereof,
subject to the terms of this Agreement; in no event shall any such Mortgagee or its
successors or assigns be entitled to a building permit or occupancy certificate until all fees
and other obligations due by E&B under this Agreement have been performed and/or paid to
the City, all defaults have been cured, and all otherwise applicable conditions to such permit
or certificate have been satisfied.
6.18 Covenant of Good Faith and Fair Dealing. No party shall do anything which shall have the
effect of harming or injuring the right of the other parties to receive the benefits of this
Agreement.
6.19 Covenant of Cooperation. E&B and the City shall cooperate with and assist each other in
the performance of the provisions of this Agreement, including assistance in obtaining
permits for the development of the Property or the Project which may be required from
public agencies other than the City, subject to the payment of costs by E&B as set forth in
Condition A-3 of Exhibit D-2 (and any other reimbursement authorized under this
Agreement), and the indemnity provisions in Section 6.5 of this Agreement. E&B reserves
the right to challenge any ordinance, measure, moratorium or other limitation in a court of
law if it b ecomes necessary to protect the development rights vested in the Property
pursuant to this Agreement.
6.20 Justifiable Reliance. The City acknowledges that, in investing money and planning effort
in and to the Project and all public improvements and dedication offers required hereunder,
36
Development Agreement between City of Hermosa Beach and E&B Natural Resources
and in undertaking commencement of the Project, E&B will be doing so in reliance upon
the City's covenants contained in this Agreement and upon the enforceability of this
Agreement, and the City agrees that it will be reasonable and justifiable for E&B to so
rely.
6.21 Project Is Private Undertaking. It is specifically understood and agreed to by and between
the parties hereto that: (1) the subject development is a private development; (2) except for
the obligations of the City described herein, if any, the City has no responsibilities for or
duty to third parties concerning any public improvement until such time and only until
such time that the City accepts the same pursuant to the provisions of this Agreement; (3)
E&B shall have full power over and exclusive control of the development of the Project
herein described subject only to the limitations and obligations of E&B under this
Agreement and the Project Approvals; and (4) the contractual relationship between the
City and E&B is such that E&B is not an agent of the City nor is City an agent of E&B.
Notwithstanding the foregoing, nothing contained in this Agreement shall be deemed to
waive or modify any otherwise applicable obligations the City, acting in its governmental
capacity and not as a party to this Agreement, may have to E&B or any other party, under
and in accordance with all applicable laws.
6.22 Further Actions and Instruments. The parties to this Agreement shall cooperate with and
provide reasonable assistance to the other parties to the extent contemplated in the
performance of all obligations under this Agreement and the satisfaction of the conditions
of this Agreement. Upon the request of any party, the other parties shall promptly execute,
with acknowledgment or affidavit if reasonably required, and file or record such required
instruments and writings and take any actions as may be reasonably necessary under the
terms of this Agreement to carry out the intent and to fulfill the provisions of this
Agreement or to evidence or consummate the transactions contemplated by this
Agreement.
6.23 Section Headings. All Article and Section headings and subheadings are inserted for
convenience only and shall not affect any construction or interpretation of this Agreement.
6.24 Enforced Delay (Force Majeure).
37
Development Agreement between City of Hermosa Beach and E&B Natural Resources
(a) In addition to specific provisions of this Agreement, performance by any
party hereunder, including making payments, shall not be deemed to be in default where
delays or defaults are due to war, insurrection, strikes, walkouts, riots, floods, earthquakes,
fires, casualties, acts of God, litigation not commenced by a Party to this Agreement
claiming the enforced delay (including without limitation, third party legal challenges to
the Project, the Project Approvals or the environmental clearance for the Project Approvals
and the Project), unavailability of materials, unforeseeable events beyond the control of
E&B, governmental restrictions including moratoria imposed or mandated by other
governmental entities (as City is prohibited from imposing moratoria under Section 3.1.2)
(but only as to delays or defaults on the part of E&B), enactment of conflicting state or
federal laws or regulations (but only if the party claiming delay complies at all times with
the provisions of this Agreement pertaining to such conflicting laws), delays caused by the
delay or failure by any entity other than the party claiming such delay to provide financing
for or construction of needed public facilities or infrastructure as contemplated or required
by this Agreement, delays due to the enforcement of environmental regulations, litigation
brought by third parties, or similar bases for excused performance. Any period of enforced
delay provided for in this Section shall run concurrently with any period of enforced delay
under the Lease. E&B shall only be required to provide one notice claiming such
extension for enforced delay under both this Agreement and the Lease.
(b) An extension of time for any such cause including an extension of the
Term (a "Force Majeure Delay") shall be for the period of the enforced delay and shall
commence to run from the time of the commencement of the cause, if notice by the party
claiming such extension is sent to the other parties within thirty (30) days of knowledge of
the commencement of the cause. Notwithstanding the foregoing, none of the foregoing
events shall constitute a Force Majeure Delay unless and until the party claiming such
delay and interference delivers to the other party written notice describing the event, its
cause, when and how such party obtained knowledge, the date the event commenced, and
the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall
deliver such written notice within thirty (30) days after it obtains actual knowledge of the
event. The time for performance due to a Force Majeure Delay will be extended for such
period of time as the cause of such delay exists (whether or not it extends beyond the Term
or the Extended Term) but in no event for longer than for such period of time.
38
Development Agreement between City of Hermosa Beach and E&B Natural Resources
(c) Notwithstanding the first sentence of paragraph (b), above, the following
shall apply: (i) E&B shall be entitled to a Force Majeure Delay for a period longer than the
period of enforced delay if the City Council determines that such longer period is
reasonably required; and (ii) E&B shall be entitled to a Force Majeure Delay
notwithstanding the fact that E&B may not have given timely notice to the City, if the City
Council determines that such Force Majeure Delay is reasonably required.
(d) A Force Majeure Delay shall not include the existence of any adverse or difficult
market or economic conditions.
6.25 Emergency Circumstances.
(a) If, as the result of specific facts, events or circumstances, the City believes
that a severe and immediate emergency threat to the health or safety of the City or its
residents, meeting the requirements of subparagraph (b), below, requires the modification,
suspension or termination of this Agreement, the City will, after reasonable notice to E&B
(in light of all the circumstances), hold a hearing on such facts, events or circumstances, at
which E&B shall have the right to address the City Council. The City shall have the right
to modify, suspend or terminate this Agreement, in whole or in part, if, following such
hearing, the City Council determines that such modification, suspension or termination is
required in order to protect the health and safety of the City and its residents.
(b) This Section 6.25 governs generally applicable emergencies in the area not
specifically related to or caused by the Project. For purposes of this Section 6.25, an
emergency must meet each of the following criteria: (i) it must be based on genuine
health, safety and general welfare concerns (other than general growth management
issues); (ii) it must arise out of a documented emergency situation, as declared by the
President of the United States, Governor of California, or the Mayor or City Council of the
City of Hermosa Beach; and (iii) based upon its terms or its effect as applied, it does not
apply exclusively or primarily to the Property or the Project. To the extent possible, any
such action by the City shall be taken in a manner so as to provide E&B with the rights and
assurances provided under this Agreement.
6.26 Severability. Invalidation of any of the provisions contained in this Agreement, or of the
39
Development Agreement between City of Hermosa Beach and E&B Natural Resources
application thereof to any person, by judgment or court order, shall in no way affect any of
the other provisions hereof or the application thereof to any other person or circumstance,
and the same shall remain in full force and effect, unless enforcement of this Agreement, as
so invalidated, would be unreasonable or inequitable under all the circumstances or would
frustrate the purposes of this Agreement and/or the rights and obligations of the parties
hereto.
6.27 Interpretation. The language in all parts of this Agreement shall in all cases be construed
simply, as a whole and in accordance with its fair meaning and not strictly for or against
any party. The parties hereto acknowledge and agree that this Agreement has been
prepared jointly by the parties and has been the subject of arm's length and careful
negotiation over a considerable period of time, that each party has independently reviewed
this Agreement with legal counsel, and that each party has the requisite experience and
sophistication to understand, interpret and agree to the particular language of the
provisions hereof. Accordingly, in the event of an ambiguity in or dispute regarding the
interpretation of this Agreement, this Agreement shall not be interpreted or construed
against the party preparing it, and instead other rules of interpretation and construction
shall be utilized.
6.28 Counterparts. This Agreement may be executed in duplicate counterpart originals, each of
which is deemed to be an original and all of which when taken together shall constitute one
and the same instrument.
6.29 Entire Agreement. This Agreement consists of __ pages and ______________ exhibits
(designated __ through __), which constitute the entire understanding and agreement of the
parties, and, with the exception of (1) the Lease; (2) the Settlement Agreement; (3) the
Agreement to Implement the Settlement Agreement dated July 23, 20 14; and (4) the
Reimbursement Agreement dated May 17, 2012 shall supersede any prior agreements,
discussions, commitments, representations or agreements, written or oral, between the
parties hereto with respect to this agreement.
IN WITNESS WHEREOF, the parties have each executed this Agreement on the date first
written above.
40
Development Agreement between City of Hermosa Beach and E&B Natural Resources
CITY OF HERMOSA BEACH
E&B NATURAL RESOURCES
MANAGEMENT CORPORATION
By:____________________________ By:___________________________________
Mayor
President
ATTEST:
By: _____________________________
City Clerk
APPROVED AS TO FORM:
By: ____________________________ By: _________________________________
City Attorney Attorneys for E&B Natural Resources
Management Corporation
41
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Exhibit A
Development Agreement between City of Hermosa Beach and E&B Natural Resources
EXHIBIT “A-1”
LEGAL DESCRIPTION
555 6TH STREET, HERMOSA BEACH, CALIFORNIA 90254
That portion of APN 4187-031-900 described as:
That portion of Lot A lying south of a line commencing at the northeasterly corner of Lot 11,
Block U, Tract 2002, as per Map recorded in Map Book 22, Pages 154 and 155, in the Office of
the Recorder of the County of Los Angeles, and continuing along the easterly prolongation of the
northerly line of said Lot 11, to the easterly line of Lot A; Lots 11 through 18, Block R, Tract
2002; Lots 11 through 18, Block U, Tract 2002; and the vacated portion of Bard Street adjoining
said lots.
Exhibit A
Development Agreement between City of Hermosa Beach and E&B Natural Resources
EXHIBIT “A-2”
LEGAL DESCRIPTION
601 CYPRESS AVENUE , HERMOSA BEACH, CALIFORNIA 90254
APN 4187-030-037
Lots 11 Through 14, Block H, Tract 1686, M.B. 20- 188, City Of Hermosa Beach
Exhibit A
Development Agreement between City of Hermosa Beach and E&B Natural Resources
EXHIBIT “A-3”
LEGAL DESCRIPTION
636 CYPRESS AVENUE, HERMOSA BEACH, CALIFORNIA 90254
APN 4187-031-022
Lots 5 And Lot 6, Block I, Tract # 1686, M.B. 20- 188, City Of Hermosa Beach
.
Exhibit A
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
EXHIBIT “B”
PROJECT DESCRIPTION
(From Section 2.0 of FEIR)
Revised with removal of City maintenance yard discussion
The Proposed City Maintenance Yard Project described herein is a separate
project that the City will undertake if the voters approve the Proposed Oil
Project. This Development Agreement only applies to the Proposed Oil
Project described below, and except for any obligations explicitly assigned
to E&B herein and payments from E&B for the City Maintenance Yard
Project, the Proposed City Maintenance Yard Project is not governed by
this Agreement. To the extent feasible, references to the Proposed City
Maintenance Yard have been removed from the Project Description.
Project Description
E&B Natural Resources Management Corporation (E&B), the Applicant, is proposing the E&B
Oil Drilling & Development Project (Proposed Oil Project) on a 1.3-acre site located in the City
of Hermosa Beach (City). The site for the Proposed Oil Project (Project Site), as shown in
Figure 2.1, would be located at 555 6th Street, bounded on the east by Valley Drive and on the
south by 6th Street, approximately seven blocks east of the beach and the Pacific Ocean. Oil and
gas pipelines constructed and used by the Project would extend from the Project Site to one of
four potential valve box locations for the oil line and to a Southern California Gas (SGE)
metering station for the gas line. The Project Site is owned by the City and is currently used as
the City (Public Works) Maintenance Yard. The Applicant has leased the Project Site from the
City for the implementation of the Proposed Oil Project.
The Proposed Project is composed of two parts: 1) the relocation of the City Maintenance Yard
(called the Proposed City Maintenance Yard Project); and 2) the development of an oil and gas
facility on the current City Maintenance Yard site (called the Proposed Oil Project). In order to
clear the current City Maintenance Yard site (called the Project Site) for the construction of the
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Directional Drilling
Drilling wells at
multiple angles to
better reach and
produce oil and gas
reserves.
Directional drilling
allows for multiple
wells from the same
drilling location.
proposed oil and gas facility, the City Maintenance Yard would be temporarily relocated during
Phase 1 of the Proposed Project. If it is determined that the production of oil and gas on the
Project Site would be economically viable (Phase 2 of the Proposed Project), construction of the
permanent City Maintenance Yard would be completed once Phase 3 of the Proposed Project
begins. The permanent Proposed City Maintenance Yard Project has two options: a Parking
Option, which would add a net 97 parking spaces with a below grade parking garage, and a No
Added Parking Option, which would have the same amount of parking as is currently available.
This Project Description reflects information contained in the Project Application submitted to
the City of Hermosa Beach by the Applicant, along with supporting information provided in
conjunction with the Project Application (E&B Natural
Resources, Planning Application and Appendices, Volumes 1 – 3,
November 14, 2012; Response to Planning Application
Completeness Review, April 11, 2013; Response to Requested
Clarifications, June 24, 2013; Quantitative Risk Analysis, July 3,
2013; Errata, July 22, 2013).1Information related to the relocation
of the City Maintenance Yard and construction and operation of
the Proposed City Maintenance Yard is derived from information
provided by the City of Hermosa Beach Public Works
Department. The description of the Proposed Project incorporates
the essential elements of the Project as it is proposed, including all
phases and major components as well as the locations of all
proposed offsite activities (in addition to those occurring on the Project Site). More detailed
information related to some aspects of the Proposed Project (including proposed operational
parameters and design features) may be found within individual sections of the Final
Environmental Impact Report (EIR), where considered relevant to the discussion of specific
environmental issues and/or effects. In addition, a description of the environmental setting and
current conditions related to the environmental issues is presented in the Environmental Setting
subsection of the individual sections of the Final EIR.
1 Information submitted by the Project Applicant is available for public review at the City of Hermosa Beach
Community Development Department.
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
This section discusses the Project objectives, historical operations on the Proposed Project Sites,
the four phases of the Proposed Oil Project, scheduling, vehicle trip and employee requirements,
and necessary permitting associated with the Proposed Project. A number of technical drawings
related to the Proposed Project design and layout are included in Appendix A to the Final EIR.
2.1 Project Overview
The Applicant proposes the development of an onshore drilling and production facility site that
would utilize directional drilling of 34 wells (30 oil wells, four wells for water disposal/injection)
to access the oil and gas reserves in the tidelands (pursuant to a grant by the State of California to
the City) and in an onshore area known as the uplands. Both of these areas are located within the
Torrance Oil Field within the jurisdiction of the City. In addition, the Proposed Project would
result in the installation of offsite underground pipelines for the transportation of the processed
crude oil and gas from the Project Site to purchasers, extending through the Cities of Redondo
Beach and Torrance. The Applicant proposes a laydown site for supply staging/storage within
the basement level of the industrial building at 601 Cypress Avenue during the construction
phases. The Applicant also proposes to construct a parking lot at 636 Cypress Avenue for use by
some of its construction employees/contractors on weekdays and by the public at other times.
The City Maintenance Yard is proposed to be relocated to a temporary facility to be established
on the rear (westerly) portion of the City Hall site (1315 Valley Drive) prior to and during the
initial phase of the Proposed Oil Project so that the maintenance operations could be moved
when the existing City Maintenance Yard is demolished as part of Proposed Oil Project
activities. The construction of the permanent City Maintenance Yard would be undertaken on the
site now occupied by the Hermosa Self-Storage (552 11th Place) after the Applicant completes
the testing phase of the Proposed Oil Project in Phase 2. As indicated below, the permanent City
Maintenance Yard and the oil and gas facility on the Project Site would be constructed at the
same time during Phase 3 of the Proposed Project.
The timeframe from commencement of the Proposed Project until the permanent oil and gas
facility would be operational is estimated to be approximately 3.25 years. The existing lease (Oil
and Gas Lease No. 2) allowing drilling into the tidelands provides for a 35-year period.
Table 2.1 summarizes events in the Proposed Project timeline. Specifics of each of the Proposed
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Project components are described in the following sections.
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.1 Proposed Project Location
Source: Project Application, Amendments and Appendices
Hermosa Beach
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Table 2.1 Proposed Project Schedule Summary
Phase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Temporary City Yard
Oil Project Phase 1
Oil Project
Phase 2
Drill
Test
Permanent City Yard
Oil Project Phase 3*
Oil Project
Phase 4*
Drill
Operate Continuously for 30+ years
Re-drills Average 30 days/year, max 150 days/yr**
Note: * If the test phase is determined to be successful, Phase 3 and 4 would occur. For construction
only. Does not include permitting timeframe. ** These are the maximum proposed by the Applicant. The
150 days per year would occur once every 5 years. Most likely re-drill activity would be lower.
2.2 Proposed Project Objectives
Pursuant to Section 15124(b) of the California Environmental Quality Act (CEQA) Guidelines,
the description of the Proposed Project is to contain “a clearly written statement of objectives”
that would aid the lead agency in developing a reasonable range of alternatives to evaluate in the
EIR and would aid decision makers in preparing findings and, if necessary, a statement of
overriding considerations. T he City is the lead CEQA agency which prepared the EIR,
considered the EIR for certification and is placing the Proposed Project on the ballot. Project
approvals will be made by the electorate of the City of Hermosa Beach.
As part of the Project Application, the Applicant provided its stated objectives for the Proposed
Oil Project, which consist of the following:
1. Develop the Proposed Oil Project consistent with the 1993 Conditional Use Permit and
the March 2, 2012 Settlement Agreement, with the utilization of directional drilling
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
techniques from the Project Site, which is the current City Maintenance Yard;
2. Maximize oil and gas production from the Torrance Oil Field within the City’s
jurisdiction, thereby maximizing the economic benefits to the City;
3. Provide an oil and gas development project on the Project Site that utilizes the latest
technology and operational advancements related to safety and production efficiency in
order to provide a project that would be safe and would meet the applicable
environmental requirements;
4. Conduct construction and drilling activities on t he Project Site incorporating
technological advancements, operational practices, and design features related to air
quality, odors, noise, hazards, and water quality to minimize the potential impacts on the
adjacent community and the environment;
5. Provide landscaping, hardscape, signage, lighting, and other design features to minimize
the visual effects of the Proposed Oil Project on the adjacent community; and
6. Implement operational practices and incorporate design features to provide safe vehicular
ingress and egress during temporary construction activities and the ongoing operation of
the Proposed Oil Project.
Pursuant to the March 2, 2012 Settlement Agreement between the City of Hermosa Beach, E&B,
and Macpherson Oil Co., the City’s primary objective is to comply with the California
Environmental Quality Act and place on the ballot a measure allowing the City of Hermosa
Beach electorate to decide whether or not to approve the Applicant’s Proposed Oil Project and a
Development Agreement to vest the Project so that, if approved, the Project cannot later be
invalidated by a vote of the people.
In the event that voters approve the Proposed Oil Project, the City would need to relocate the
City Maintenance Yard. Under those conditions, the City's objectives for relocation of the City
Maintenance Yard would be to:
1. Provide City Yard Maintenance facilities that support provision of high-quality City
services in an integrated and cost-efficient manner;
2. Consolidate City facilities and functions for maximum efficiency and flexibility;
3. Minimize disruption of City functions during relocation of the City Maintenance Yard;
4. Ensure the relocated City Maintenance Yard is compatible with surrounding uses; and
5. Ensure there is no net loss of public and employee parking spaces as a result of both the
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Proposed Oil Project and the relocation of the City Maintenance Yard consistent with the
Preferential Parking Program approved by the Coastal Commission.
2.3 Historical and Current Operations
Oil drilling and production in the Los Angeles Basin has a long history. According to the
California Division of Oil, Gas, and Geothermal Resources (DOGGR) database, almost 30,000
oil wells have been drilled in the Los Angeles Basin in the last 100 to 150 years. Figure 2.2
shows the location of these wells.
The Proposed Oil Project would drill into the western edge of the Torrance Oil Field (see Figure
2.2). Most of the production from the Torrance Oil Field has been generated from wells drilled
in the City of Torrance, with some drilling in the Cities of Redondo Beach and Hermosa Beach.
There have been approximately 1,500 wells drilled in the Torrance Oil Field historically.
Although the Project Site is relatively flat, it is underlain by windblown sand dunes that
previously covered the region, resulting in uneven ground due to natural conditions. In the
1920s and 1930s, the northeastern portion of the Project Site had a large depression that was
mined for sand. Around 1927, the City’s dump and refuse burner were located on the Project
Site, and, by 1947, the depression was filled. The resulting former landfill is approximately 45
feet deep and is filled with glass, porcelain, and ceramic towards the bottom and soils containing
miscellaneous metals, wires, glass, and other materials toward the top (i.e., closer to the ground
surface). Between the depths of 3 feet and 25 feet below ground surface (bgs), the former
landfill contains some soil with lead at concentrations above the Environmental Protection
Agency (EPA) Region 9 Industrial Regional Screening levels. In addition, soils impacted with
total petroleum hydrocarbons (TPH) were found at depths of 25 to 44 feet bgs within the central
portion of the landfill. For a detailed discussion of the soil conditions on the Project Site, refer to
Section 4.7, Geological Resources/Soils, of the Final EIR.
Figure 2.2 Historical Wells Drilled in the Los Angeles Basin
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: DOGGR
In 1930, an oil well (Stinnett Oil Well No. 1) was drilled in the western portion of the Project
Site. The oil well was abandoned in 2005, consistent with the then-current standards of the
DOGGR. During the mid-1940s, the first building was constructed on the Project Site for City
maintenance uses, with the last building constructed in the 1980s. Since the 1990s, with the
exception of the addition of trailers, storage containers, and sheds, the Project Site has generally
remained unchanged.
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
The Project Site is currently developed as the City Maintenance Yard, and the Proposed Oil
Project would require the relocation of the City Maintenance Yard. As indicated in Figure 2.3,
existing development on the Project Site consists of three buildings, two trailers, storage
containers, sheds, trash bins, a propane tank, concrete paving and asphalt, fencing, and masonry
walls. In addition, within the boundaries of the Project Site, there is an asphalt parking area in
the southern portion of the City Maintenance Yard that provides 15 parking spaces for
employees (Monday through Thursday between the hours of 6:00 a.m. and 6:00 p.m.) and for the
public after hours (6:00 p.m. to 6:00 a.m.) and on weekends and holidays.
Existing site contamination from historical site uses is also shown in Figure 2.3. According to an
Environmental Site Assessment prepared in 2012 (Brycon 2012), 10 of the 73 soil samples taken
exceeded Regional Water Quality Control Board guidelines for total petroleum hydrocarbons, all
within the mid range hydrocarbons (C13-C22). Volatile organic carbons were not present in any
of the samples at concentrations above the EPA Region 9 Industrial Regional Screening Levels.
Six of the samples exceeded the EPA Region 9 Industrial Regional Screening Levels for lead. In
addition, a series of groundwater borings conducted in 2013 (Brycon 2013) found the presence
of total petroleum hydrocarbons, lead, barium, and arsenic in the groundwater below the City
Maintenance Yard that exceeded the Maximum Contaminant Levels (MCLs) established for
drinking water by the Regional Water Quality Control Board.
The immediately adjoining properties were sparsely developed into the 1940s, with a few
residential units located to the northwest of the Project Site. Post 1940s, significant development
occurred with industrial buildings being constructed to the south and west of the Project Site by
1953 and to the north of the Project Site by the 1960s. By 1960, the buildings to the west of the
Project Site were identified as containing a building material warehouse, a boat repair shop, and
a contractor’s storage yard.
By 1960, the building to the south was being utilized as a planter mix manufacturing site. Since
the 1960s, the various adjoining buildings have been utilized for multiple small businesses as
industrial/commercial uses. To the east, from the late 1800s, there was a railroad right-of-way
(ROW) that was utilized by the Santa Fe Railway. During the 1960s, the railroad ROW was
converted to a greenbelt/park (Veterans Parkway - Hermosa Valley Greenbelt (Greenbelt)),
followed by a Council initiative in 1987 d irecting the City of Hermosa Beach to acquire the
Railroad ROW for public use as parkland and open space in perpetuity; the property is zoned
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
O-S-1 Restricted Open Space.
Currently, other land uses adjacent to the Project Site (on the same block between 8th and
6thStreet and Cypress Avenue and Valley Drive) are commercial/industrial (Cypress Auto Body,
A&B Heating, JB Plumbing, McGivern Surfboard Manufacturing, Buddhist Meditation Center,
NUWORK, a recording studio and other various small commercial/industrial businesses), with
some residential uses along 8th Street to the north. Adjacent blocks include residential uses
located 150 feet to the north of the Project Site, 250 feet to the west and 180 feet to the east (east
of the Greenbelt), with small commercial/industrial uses and the Beach Cities Self Storage
facility located to the immediate south across 6th Street with its required parking lot abutting the
southwest corner of the Project Site. Figure 2.4 shows the southern area of the City of Hermosa
Beach along with land uses.
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.3 Existing Site Conditions
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Applicant Project Application, DOGGR well database, Phase 2 Environmental Site Assessments
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.4 Project Site and Area Land Uses (Zoning Map)
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: City of Hermosa Beach Zoning Map, November 2013
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
PHASE 1
Site Preparation
6-7 Months
2.4 Proposed Oil Project Phases
The Proposed Oil Project would occur in the following four phases:
• Phase 1: Site Preparation;
• Phase 2: Drilling and Testing;
• Phase 3: Final Design and Construction; and
• Phase 4: Development and Operations.
Each phase is discussed in the following sections.
The Applicant proposes a facility designed for a maximum capacity of 8,000 barrels per day
(bpd) of crude oil and 2.5 m illion standard cubic feet per day (scfd) of produced gas at
completion of the drilling stage of the Proposed Oil Project in Phase 4. T he operational
parameters of the Proposed Oil Project are summarized in Table 2.2. Prior to the initiation of the
Proposed Oil Project, it would be required that plans be submitted by the Applicant to the City
and other permitting authorities for review and approval. T hese would include coastal
development permits, oil and gas well permits, demolition plans, grading plans, utility and
electrical plans, cement/foundation plans, landscaping plans, street and ROW
improvement/modification plans, and construction plans, amongst others. Figure 2.5 shows the
Project Site along with the electrical and pipeline connections and the Cypress Avenue parking
lot.
2.4.1 Phase 1 Site Preparation
The purpose of Phase 1 would be to prepare the Project Site
for drilling and testing as well as for the subsequent phases of
the Proposed Oil Project. It is anticipated that Phase 1 would
occur for approximately six months. P rior to Phase 1
activities, the temporary City Maintenance Yard would be
installed.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
2.4.1.1 Phase 1 Construction Activities
Phase 1 would consist of the following construction activities:
• Underground existing overhead utilities;
• Construction of modifications to intersection of 6th Street and Valley Drive;
• Relocation of City Maintenance Yard to the temporary site;
• Clearance of Project Site;
• Construction of retaining walls and rough grading;
• Installation of perimeter fencing;
• Construction of well cellar;
• Installation of offsite electrical conduit and onsite electrical equipment;
• Completion of onsite surface and entrance/exit;
• Installation of temporary landscaping; and
• Installation of 35-foot sound attenuation wall.(per Mitigation Measure NV-3a)
Table 2.2 Proposed Oil Project Design Parameters
Parameter Value
Crude oil production Phase 2: Up to 800 bpd
Phase 4: Up to 8,000 bpd
Crude oil properties 18 API
Natural gas production Phase 2: Up to 250,000 scfd
Phase 4: Up to 2.5 million scfd
Produced water disposal/injection Phase 2: Up to 1,600 bpd
Phase 4: Up to 16,000 bpd
Maximum number of wells
Phase 2: 4 wells (3 production, 1 water disposal/injection)
Phase 4: 34 total (30 production, 4 water
disposal/injection)
NGL production Up to 1 bpd mixed with crude oil
Pipeline length and tie-in, gas Approx. 0.43 miles + 1.4 miles
Pipeline length and tie-in, crude Approx. 3.55 miles
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Water use, during construction
Approx. 2,000 gallons per day during grading and
earthwork (potable)
Approx. 10,000 gallons per day during pipeline
installation (potable)
Approx. 20,000 gallons per month during facility
construction (potable)
Water use, during drilling 130,000 gallons per well (reclaimed water)
(Approx. 4,500 gallons per day)
Water use, during operations and
maintenance
(Landscaping- Reclaimed Water)
(Domestic-Potable Water)
1,300 gallons per day
(1,000 gallons per day for landscaping)
(300 gallons per day for domestic use)
Electrical use, Phase 2 4.5 megawatts (including drill rig)
Electrical use, Phase 3 0.3 megawatts
Electrical use, Phase 4
7.0 megawatts (including drill rig)
3.0 megawatts during normal ongoing operations
Onsite electrical generation of 1 MW
Well workovers, annually 90 days/year
Well re-drills (full sized drilling rig, peak
annually
Up to 5 per year, up to 30 re-drills for the life of the
Project
Notes:bpd = barrels per day; kW = kilowatts; scfd = standard cubic feet per day; NGL = natural gas
liquids; API = American Petroleum Institute; estimated peak values and maximums shown
Source: Project Application, Amendments and Appendices.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.5 Project Site and Pipeline/Electrical Connections
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: E&B Supplemental Application materials, January 2014
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Each of these activities is discussed in the following subsections. Figure 2.6 shows the proposed
arrangement of the Project Site under Phase 1. A ppendix A of the Final EIR provides the
conceptual grading plan, site plan, elevations, and landscape concept plan for the Proposed Oil
Project at the completion of Phase 1.
The laydown area (equipment and supply storage/staging) for the Proposed Oil Project would be
in the basement of the building located at 601 Cypress Street on the northwest corner of Cypress
Street/6th Street (See Figure 2.3).
Underground Existing Overhead Utilities
There are currently overhead power lines and communication lines on poles that run overhead
through the existing trees along Valley Drive. These existing lines would be removed along the
Project frontage and relocated underground adjacent to the Project Site in a location determined
by the utility companies and the City. Appendix A of the Final EIR provides drawings showing
the general location where the utility lines would be placed underground.
Construction of Modifications to Intersection of 6th Street and Valley Drive
The Proposed Oil Project would include the construction of modifications to the intersection of
6th Street/Valley Drive to provide the necessary turning radius for Project-related trucks.
Appendix A of the Final EIR provides drawings showing the conceptual design of the proposed
intersection modifications. These modifications would result in:
• Removal of a portion of the landscaped area and entry driveway to the Beach Cities Self
Storage facility;
• Redesign of the sidewalk on the southwest corner of the intersection;
• Relocation of the stop sign and striping for the northbound lanes on Valley Drive to
address the redesign of the southwest corner;
• Removal of a utility pole and underground utilities on t he southwest corner of the
intersection;
• Removal of a utility pole and underground the utilities on 6th Street; and
• The removal of two on-street parking spaces on 6th Street.
As a part of the intersection modifications, the stop sign and striping for the southbound lanes on
Valley Drive would be relocated to improve the line of sight to and from the intersection with 6th
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Street. This modification would be made concurrently with the addition of the perimeter fencing
on the Project Site (See Figure 2.6). In addition, the curb on the northwest corner along 6th
Street adjacent to the Project Site would be temporarily provided as a rolled asphalt curb for
Phases 1 and 2.
The two on-street parking spaces removed from 6th Street would be provided as part of the
Project’s overall parking replacement program discussed further below.
Relocation of the City Maintenance Yard
Prior to Phase 1, a temporary City Maintenance Yard would be built at the New City
Maintenance Yard location to the rear of City Hall at 1315 Valley Drive. At this point, the
maintenance operations would be moved into the temporary City Maintenance Yard.
Clearance of the Project Site
Prior to the initiation of the site clearance activities, temporary 24-foot sound attenuation walls
(per Mitigation Measure NV-1a) would be erected at the Project Site to reduce noise impacts
related to construction. These sound walls would be designed to be movable and would be
relocated within the Project Site as needed to attenuate noise associated with Phase 1 demolition
and construction activities. The temporary sound walls would be removed from the Project Site
after the onsite construction activities in Phase 1 are completed.
Following the relocation of the City Maintenance Yard , the Project Site would be cleared. The
site clearance activities would include the removal of three existing buildings (one of which
would be moved to the temporary site), two trailers, storage containers, sheds, trash bins, a
propane tank, concrete paving and asphalt, fencing and masonry walls. In addition, the asphalt
parking area to the west of the City Maintenance Yard would be removed, resulting in the
removal of 15 parking spaces. The building located at 636 C ypress Avenue would also be
demolished at this time to clear the parcel for the off-site temporary parking area. Prior to the
demolition of both buildings, building materials would be assessed for asbestos content and
presence of lead based paint, consistent with the requirements of the South Coast Air Quality
Management District (SCAQMD). If asbestos containing materials or lead based paint are
detected, the appropriate abatement process would be implemented. T he building materials
removed from the Project Site would be transported by truck to the recycling facility at Southern
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Water Injection
Pumping produced
water back down the
well hole into the oil
reservoir from which it
was originally extracted.
California Disposal in Santa Monica, the recycling facilities at Hanson Aggregates in Long
Beach, or another certified facility for recycling or disposal.
The Proposed Oil Project would include an overall parking replacement program that meets the
intent of the City’s Preferential Parking Program and Coastal
Development Permit requirements. Section 2.4.5 discusses the
parking plan for the Proposed Oil Project.
Three of the four existing mature trees along the frontage of the
Project Site on Valley Drive would be retained to help screen
construction activities. The Applicant has concluded that the
fourth tree should be removed because it is in poor health, and it
would limit access to the Project Site (See Figure 2.6). The
three remaining trees would be trimmed to keep branches from hanging over onsite equipment
and to help prevent trespassing.
Construction of Retaining Walls and Rough Grading
Once the Project Site is cleared, retaining walls would be constructed along the western
boundary of the Project Site and set back 10 feet along the western portion of the southern
property boundary (See Figure 2.6).
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.6 Proposed Oil Project Phase 1 Conceptual Site Plan
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
[need to fix this image]
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Applicant application
Section 2: Project Description
Exhibit B
This page intentionally left blank.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Rough grading would occur to allow for:
• The construction of a well cellar for three test oil wells and a water disposal/injection
well;
• Surface drainage towards a temporary retention basin, which would contain a 100-year
flood event;
• A level area for the set up and movement of the drill rig; and
• The installation of temporary production equipment.
It is anticipated that the rough grading would not require the import or export of fill material.
Appendix A of the Final EIR provides the conceptual grading plan that indicates the retaining
wall locations and rough grading at the completion of Phase 1.
Installation of Perimeter Fencing
Following the rough grading, the Project Site would be enclosed by a six-foot temporary
perimeter chain link fence covered with green fabric. The fence would include secured gates for
the entrance off Valley Drive and the exit to 6th Street. The Applicant proposes to include the
appropriate signage consistent with the requirements of the City. Figure 2.6 shows the location
of the fencing and gates at the completion of Phase 1, and Appendix A of the Final EIR shows an
elevation of the fencing.
Construction of Well Cellar
A cement well cellar approximately 8 feet wide by 40 feet long by 12 feet deep would be
constructed for three test wells and one water disposal/injection well to allow for the drilling of
the wells in Phase 2. The well cellar would provide containment of any potential oil spillage
during Phase 2. Figure 2.6 shows the location of the well cellar.
Installation of Offsite Electrical Conduit and Onsite Electrical Equipment
Electrical service for the Proposed Oil Project would be provided by Southern California Edison
(SCE). The electrical conduit and onsite electrical equipment for all phases of the Proposed Oil
Project would be installed in Phase 1. The electrical load during Phase 2 and Phase 3 would be
4.5 Megawatts (MW) and 0.3 MW, respectively. During Phase 4, the electrical load during
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
drilling would be 7.0 MW and during ongoing operations would be 3.0 MW. According to the
Applicant, SCE has determined that the existing 16 kilovolt (kV) circuit running along 8th Street
to the north of the Project Site has the necessary capacity to serve the Proposed Oil Project. To
receive electrical service from SCE, the Proposed Oil Project would provide for the installation
of an underground conduit for a linear distance of 280 feet under Valley Drive from 8th Street to
the northeast corner of the Project Site (see Figure 2.6)
Electrical equipment consisting of step down transformer(s), switchgear, and variable frequency
drive units would be installed in the northeast corner of the Project Site designated as the New
SCE Yard in Figure 2.6. The electricity would be used to provide power for well pumps, the
temporary production equipment, the temporary construction trailer, safety system controls,
onsite lighting, and the drill rig used in Phase 2 and Phase 4 (both drilling and re-drills). An
uninterruptable power supply would be installed for critical systems such as the temporary
production equipment safety systems and security lights. An emergency generator would be
installed to provide power for the safe shutdown of the drilling operation in the event of a loss of
power from SCE.
Appendix A of the Final EIR provides the general location of the offsite underground conduit.
Completion of Onsite Surface and Entrance/Exit
The surface of the Project Site would be covered with crushed aggregate base material to serve
as a dust inhibitor and driving surface. Temporary berms would be constructed around the areas
where the drill rig and associated equipment would be set up and the temporary production
equipment installed to provide secondary containment. In addition, a temporary berm would be
provided around the well cellar to avoid surface flows from entering the well cellar. The existing
driveway access from Valley Drive and 6th Street would be used. On both sides of the driveway
on 6th Street, a rolled asphalt curb would be provided.
Installation of Temporary Landscaping
Landscaping would be provided along the eastern and southern perimeter of the Project Site to
provide a visual buffer. T he plant materials and irrigation would be consistent with the
requirements of the City. The trees and other plant materials would be planted in a manner that
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
allows for their replanting as a part of the permanent landscaping provided in Phase 3.
Reclaimed water supplied by West Basin Municipal Water District would be used for irrigation.
The reclaimed water line serving the Greenbelt east of Valley Drive would be tapped and
extended to the Project Site. Appendix A of the Final EIR includes a conceptual landscape plan
and plant materials for the temporary landscaping provided at the completion of Phase 1.
Installation of 32-Foot Sound Attenuation Wall
Upon completion of the Phase I improvements, a 35-foot sound attenuation wall (per Mitigation
Measure NV-3a) would be erected inside the chain link construction fence in order to attenuate
noise generated during Phase 2 drilling and testing. The 35-foot sound wall would stay installed
through the duration of Phase 2.
2.4.1.2 Phase 1 Site Preparation Detailed Schedule
It is anticipated that Phase 1 would occur for a period of approximately six months as indicated
in the schedule provided in Table 2.3.
As required by the previous Conditional Use Permit and as proposed by the Applicant, the
construction activities on the Project Site, including the operation of earthmoving equipment,
would be conducted between the hours of 8:00 a.m. and 6:00 p.m. Monday through Friday
(except holidays) and 9:00 a.m. and 5:00 p.m. on S aturdays. O ffsite construction activities
within the public ROW would occur between the hours of 8:00 a.m. and 3:00 p.m. Monday
through Friday in the City of Hermosa Beach.
Truck deliveries to the Project Site would be limited to the hours between 9:00 a.m. and 3:00
p.m. Monday through Friday, except in the case of an emergency and with the prior approval of
the Director of Public Works. The Project-related truck trips would be limited to 18 round trips
per day and limited to the designated truck routes.
2.4.1.3 Phase 1 Site Preparation Personnel and Equipment Requirements
The vehicles, equipment, and employees estimated for Phase 1 a re provided in the detailed
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
listing in Appendix A of the Final EIR. Vehicle trips are summarized in Table 2.4. The Project-
related personnel would utilize parking spaces in an offsite parking area provided consistent with
the proposed parking plan described in detail in Appendix A.
Table 2.3 Phase 1 Project Schedule
Activity Schedule (Weeks)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Construction of Temporary City Yard
Underground overhead utilities
6thStreet & Valley intersection
Relocation of Yard
Remove buildings
Remove other site structures
Construct retaining walls
Grade, well cellar, aggregate
Construct chain link fence
Construct well cellar
Install electrical service
Install landscaping
Install 32-foot sound wall
Note: relocation of Yard would only include moving of shop materials and equipment. The Temporary
City Maintenance Yard would be construction prior to the start of Phase 1 and would take approximately 9
months. See section 2.5.
2.4.1.4 Phase 1 Truck Routes
Truck trips would be required in order to deliver and remove construction-related materials and
equipment to and from, respectively, the Project Site. Trucks would utilize roads designated as
truck routes by the cities of Hermosa Beach, Redondo Beach, Manhattan Beach and Torrance.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Truck routes are shown in Figures 2.13 and 2.14.
The routes identified by the Applicant as those utilized for all phases of the Project are as
follows:
Inbound Trucks
1. Inbound trucks from westbound Artesia Boulevard
2. Left on to southbound Pacific Coast Highway
3. Right on to westbound Pier Avenue
4. Left on southbound Valley Drive
5. Right into the Project driveway on Valley Drive
Or
6. Inbound trucks from westbound 190th Street (which becomes Anita Street)
7. Right on northbound Pacific Coast Highway
8. Left on to westbound Pier Avenue
9. Left on to southbound Valley Drive
10. Right into the Project driveway on Valley Drive
Outbound Trucks
11. Outbound trucks on to eastbound 6th Street
12. Right on to southbound Valley Drive
13. Left on to eastbound Herondo Street
14. Continue onto Anita Street, then 190th Street to the Interstate 405 (I-405)/ Crenshaw
interchange
Or
15. Outbound trucks on to eastbound 6th Street
16. Right on to southbound Valley Drive
17. Left on to eastbound Herondo Street
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
PHASE 2
Drilling and Testing:
Drilling for 3-4 Months
Testing for 7-9 Months
More
18. Left on to northbound Pacific Coast Highway
19. Right on to Artesia Boulevard.
2.4.2 Phase 2 Drilling and Testing
The purpose of Phase 2 would be to conduct the drilling
and testing of wells in order to determine the potential
productivity and economic viability of the Proposed Oil
Project. During this phase, up to three test wells and one
water disposal/injection well (a total of four wells) would
be drilled. These wells would be drilled utilizing
directional drilling technology, which enables the wells to
be drilled laterally for long distances, so that the bottom-hole locations may be located several
thousand feet from the surface location of each wellhead on the Project Site (see Figure 2.7 and
2.8).
2.4.2.1 Phase 2 Site Geology and Drilling Objectives
The Proposed Oil Project would utilize directional drilling techniques to access the crude oil and
gas reserves in the tidelands (offshore) and uplands (onshore) in the portions of the Torrance Oil
Field within the City’s jurisdiction. The Project Application states that "no hydraulic fracturing
(or “fracking”) of wells will occur because the geologic zones for the Proposed Project are
permeable and capable of yielding oil and gas without hydraulic fracture stimulation."
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Table 2.4 Phase 1 Vehicle Trip Summary
Activity Trucks, Maximum
RT/day*
Autos/PU,
Maximum RT/day
Total, Maximum
RT/day
Underground overhead utilities 4 10 14
Construct 6th& Valley intersection 3 8 11
Remove buildings 10 8 18
Remove other existing site structures 15 6 21
Construct retaining walls 5 14 19
Grade, well cellar and aggregate 15 10 25
Construct chain link fence 1 4 5
Construct well cellar 4 8 12
Install electrical service 6 15 22
Install landscaping 1 2 3
Install 32-foot sound attenuation wall 3 12 14
Greatest number of trips in one day 18
(during week 9)
31
(during week 12)
43
(during week 10)
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Notes: * According to the 1993 CUP, which is valid pursuant to the Settlement Agreement, the number of
truck trips shall be limited to a maximum of 18 rounds trips per day, except in an emergency.
Trucks are 3+ axle or greater or trucks with trailers. Autos are automobiles or pickups/trucks with 2 axles.
Trips are round trips.
Maximum truck activity occurs during week 9 with the installation of electrical service and the removal of
existing structures.
Maximum auto activity occurs during week 12 with the installation of electrical service and construction of
the retaining wall.
Maximum activity trucks and autos combined occur during week 10.
Truck maximum and auto/PU maximum do not necessarily occur on the same day, so the total maximum
is not necessarily a simply addition of the two. See appendix.
See Appendix A for a detailed breakdown of vehicles, employees, trucks and construction equipment for
each week.
Source: Project Application, Amendments and Appendices
The approximate extent of the City’s jurisdiction within the Torrance Oil Field is provided in
Figure 2.7. Figure 2.8 provides a typical well cross section illustrating how wells can reach the
oil reserves, within the tidelands, from the Project Site. T he Project Application states the
primary target zones are the Upper Main, Lower Main, and Del Amo Zones with some
production potential within the Schist Conglomerate.
As shown in Figure 2.8, the Upper Main Zone is the uppermost part of the Puente Formation.
The Project Application states that it is expected to be the shallowest oil productive zone in the
City. Of the three known producing horizons in the Torrance Oil Field, the Upper Main Zone is
the most prolific. The Upper Main Zone beneath the Hermosa Beach tidelands and uplands is
expected to be 300 feet thick and composed of inter-bedded thin sands and shales. The shales
are currently fractured and provide both fractured porosity and permeability. The fractures are
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
critical to the performance of the reservoir in the area due to the fine-grained and thin-bedded
nature of the sands. The Lower Main Zone lies below the Upper Main Zone in the Puente
Formation. The Project Application states that similar to the Upper Main Zone, the shales of the
Lower Main Zone are currently fractured and important for oil production. However, the Lower
Main Zone has fewer interbedded fine-grained sands and is over 500 feet thick.
Figure 2.7 Proposed Oil Project Lease Areas (below)
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Project Application
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Section 2: Project Description
Final Environmental Impact Report 2-86 E&B Oil Drilling & Production Project
Figure 2.8 Applicant Proposed Oil Project Lease Areas Cross Section
Source: Project Application. Representative figure not to scale or reflective of the exact geology of the region.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
The Del Amo Zone lies beneath the Lower Main Zone. It contains the least amount of thin-
bedded sandstone in the Puente Formation. The Project Application states that similar to the
other two zones, the shales of the Del Amo Zone are currently fractured and important for oil
production. The Del Amo Zone varies the most in thickness and could be from 200 feet up to
700 feet thick.
The Schist Conglomerate underlies the Del Amo Zone and is resting on metamorphic basement
rock (Catalina Schist). The Schist Conglomerate could be as much as 400 feet thick and is
composed of reworked fragments derived from erosion of the underlying Catalina Schist. The
Project Application states that although it is unknown if the Schist Conglomerate is productive
beneath the City, it is still a viable exploration target.
The production test wells would target areas to the south-west, the north-west and the north areas
of the lease (see Figure 2.7). The wells for the Proposed Oil Project would be at a true vertical
depth of approximately 3,000 feet and a measured depth of approximately 9,000 feet. The actual
well depth would vary depending on the area targeted.
The Applicant indicates that the wellhead pressures anticipated during and immediately after
drilling would be 0.0 pounds per square inch (psi) and that the wells are not anticipated to be
free-flowing.
DOGGR must review and approve an engineering study conforming to CCR Section 1724.6 and
1724.7 for operations. No Class II injection wells will be permitted prior to review and approval
of the study. A Notice of Intent will need to be submitted for each proposed well. The Notice of
Intent will be reviewed for accuracy and completeness and, if appropriate, a drilling permit
issued.
2.4.2.2 Phase 2 Construction and Drilling Activities
Phase 2 construction and drilling would consist of the following activities and improvements:
• Installation of Temporary Construction Trailer
• Delivery and Set Up of Drill Rig
• Installation of Temporary Production Equipment
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
• Drilling of Wells
• Testing and Operational Systems
These activities are discussed in the following subsections.
Phase 2 Installation of Temporary Construction Trailer
A temporary construction trailer would be installed in the northeast portion of the Project Site
(see Figure 2.9). In addition, the associated utilities, including potable water and sewer, would
be extended from the existing lines currently located along 6th Street that serve the City
Maintenance Yard. Water and sewer service would be provided by the California Water Service
Company and the City, respectively. E lectricity would be provided by Southern California
Edison (SCE) as discussed above under Phase 1 construction activities.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.9 Proposed Conceptual Site Plan - Project Phase 2
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Applicant application
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
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Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Automated Drilling Rig
Ground Flare
Phase 2 Delivery and Set Up of Drill Rig
An electric drilling rig and its associated equipment would
be brought to the Project Site on large trucks with trailers
to be permitted by the City and the California Highway
Patrol (CHP). The drilling rig would be an "automated
drill rig" (ADR), which means that many of the drill rig
procedures (loading pipe, etc,) would be done by
mechanical means automatically. The approximately 87-
foot high drill rig would be powered by electricity. A
large crane with a 150-foot boom would be used to erect
the drill rig. Support equipment for the drill rig would
include pipe racks, mud and cutting system, pumps,
hydraulic equipment, and an accumulator. In the event of
a loss of power from SCE, a generator, which would be a non-road portable diesel-fuel generator
certified by the California Air Resources Board (CARB), would provide power for the safe
shutdown of the drilling operation.
Phase 2 I nstallation of Temporary Production
Equipment
Temporary oil, water, and gas production
equipment would be installed on the Project Site.
This temporary equipment would include a well test
station, an induced gas flotation/filter skid, a g as
combustor (enclosed ground flare), fluid handling
tanks, piping, vapor recovery unit, pumps, and
vessels. T he production equipment would be
delivered by trucks to the Project Site. T he
temporary production equipment would be installed
in the eastern portion of the Project Site within an
area enclosed by a containment berm as shown in
Figure 2.9.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Phase 2 of the Proposed Oil Project would be designed as a closed-loop system, with pressure
relief valves venting to a flare and tanks venting to a vapor recovery system. The control system
would be computerized and would monitor the closed-loop system, providing warnings,
corrective actions, and shutdowns, if necessary. Corrective actions could be closing valves,
sounding alarms, shutting down wells or other process related functions. In addition, according
to the Applicant, redundancy would be built into the system to provide an extra level of
protection, ensuring there would be a backup for each safety device. All safety devices would be
tested on a regular basis as per applicable codes and standards.
Operators would be onsite 24 hours per day, seven days per week, to monitor all aspects of the
Proposed Oil Project’s production process.
Phase 2 Drilling of Wells
Once the drill rig and associated equipment set up is complete, up to three test wells would be
drilled utilizing directional drilling technology. T his would enable the wells to be drilled
laterally for long distances so that the bottom-hole locations may be located horizontally several
thousand feet from the surface location of the well head on the Project Site. All wells would be
permitted, drilled and cemented in accordance with the State Division of Oil, Gas, and
Geothermal Resources (DOGGR) regulations. Drilling would proceed in the following manner:
• Installation of conductor casing;
• Drilling of wells;
• Placement of casing and cementing of wells (in stages at various depths); and
• Completion of the well, including installation of down-hole pumps and tubing.
Installation of Conductor Casing
The conductor casing is the initial hole drilled into the ground with a large diameter pipe
installed to maintain integrity. The subsequent drilling of the well would take place through the
conductor casing. Conductor casing would be installed with a small drilling rig, referred to as a
dry-hole digger, which would be used to set the conductor casing for all of the intended wells in
the Project Site. A large diameter hole, about 18 inches in diameter, would be drilled to an
approximately 80-foot depth. This type of drilling is similar to boring a hole with an auger.
Usually, no drilling fluid is needed to drill the hole, hence the name dry-hole digger. A large
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
diameter casing, commonly referred to as “conductor pipe”, typically 13-3/8 inches in diameter,
is lowered to the bottom of the hole and is cemented in place with construction concrete. This
forms the first seal of the near-surface formations and also serves as a steel conduit to allow the
drilling fluid used in the next stage of the well drilling to be circulated to the surface without
washing away the shallow near-surface dirt. All conductors necessary to develop the Proposed
Oil Project test phase would be set at this time and the dry-hole digger moved off before the
drilling rig would be mobilized and brought to the Project Site.
Drilling, Casing and Completion of Wells
The components of the drill rig and all necessary equipment would then be moved onto the
Project Site with large specially equipped trucks. The drill rig height would be 87 feet. The
drilling setup would include three main parts; the drilling structure (i.e., mast, substructure,
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
catwalk, silicon-controlled rectifier (SCR) house, top drive, back-up generator, crown block,
traveling block, iron rough neck, drill pipe, control cabin), the blow out preventer (BOP) system
(i.e., BOP Stack, Shear Ram, BOP Controller, and Accumulator), and the mud system (i.e., mud
tanks, mud shakers, mud pumps, mud return line). The drilling rig would also require other
equipment such as a spare parts house, other tanks, and storage areas as needed to support the
drilling operation. The substructure of the drill rig would be located over the first well conductor
casing, the mast would be raised, and the other equipment would be aligned and connected. The
drill pipe would be laid out on racks convenient to the rig floor so they may be used when
needed. Water tanks would be filled, and drilling fluid additives would be stored on site. The
drill rig for the Proposed Oil Project would be run on electric utility power, so an electrical
hookup would be made at this time. D rilling operations would then begin. T he initial
mobilization and rigging up operation is expected to last about seven to ten working days.
“Spudding in” is the term used to begin drilling operations. A large (12 ¼-inch diameter) drill
bit is attached to the first joint of drill pipe (usually 30 feet long) and lowered into the conductor
casing. As the first length of pipe is completely lowered in, another length of pipe is attached to
the end, thereby increasing the length of the drill “string”. When the drill string reaches the
bottom of the conductor casing at a depth of 80 feet, the drilling begins. In order to drill
downwards through soil and rock, the drill bit requires rotation and downward force, which is
provided by the weight of thick-walled pipe on top of the drill bit. A single, 30-foot long drill
pipe for a larger diameter drill bit weighs approximately three tons. As the drill bit drills deeper,
more drill pipe is placed on top, thereby increasing the downward force; this is collectively
known as the drill string. The drill bit turns clockwise as the weight of the drill pipe column
forces it downward. Drilling fluid, called mud, is pumped down the inside of the hollow drill
pipe, through a hole in the drill bit, and flushes the drilled rock cuttings away from the bit and up
the space between the wall of the borehole and the outside of the drill pipe, which is referred to
as the “annulus.” When the mud reaches the surface, it circulates to a mud tank where the rock
cuttings are separated out of the fluid by using a shaker, and the clean mud is pumped back down
the hole in a continuous circuit, constantly circulating the drilled rock cuttings up and away from
the drill bit as it penetrates deeper into the earth. The cuttings are analyzed, stored in 20 cubic
yard bins, and then hauled offsite.
Initially, a large diameter bit is used to drill to a predetermined depth. When the specified depth
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
is reached, drilling is stopped, the drilling string is removed and a large diameter pipe (a casing
string) is assembled in 40-foot lengths and lowered to the bottom of the well bore. Cement is
then pumped down the inside of the casing, around the bottom of the hole, and up the annulus
between the casing and the well bore. When the cement hardens, it ensures that the entire casing
and well bore are encased in cement, protecting the fresh water aquifers and surrounding
subsurface areas from the production fluids inside of the casing. See Figure 2.10 for a schematic
of the well bore and casing.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.10 Typical Well Bore and Casing
Source:Project Application
Next, a piece of equipment known as a blowout preventer (BOP) is attached to the well head.
The BOP is a safety system used during drilling operations in oil and gas fields to prevent the
uncontrolled release of reservoir fluids and to immediately shut off the flow in the event that
abnormal pressure is encountered in the well bore that cannot be controlled by the hydrostatic
head of the drilling fluid when drilling resumes beneath the surface casing. Blow out prevention
equipment shall conform to DOGGR’s publication M07 “Blowout Prevention in California,
Equipment Selection and Testing 2006 edition. If the subsurface pressure begins to cause the
well to flow, the BOP is activated, closing in the well and trapping the pressure until it can be
bled off safely and drilling can continue. A BOP would be placed on each wellhead during the
drilling and removed after the well is completed. A BOP utilizing Blind Shear Rams would be
utilized. Blind Shear Rams are a type of BOP common in the offshore environment that allow
for the shutting off of flow through the well even if drill pipe is in the wellbore. Pursuant to the
requirements of the Code of Federal Regulation on Oil and Gas and Sulphur Operations in the
Outer Continental Shelf(30 CFR part 250), the Applicant indicates that the BOP would be
certified that the shear rams can actually shear the drill pipe prior to drilling.
The surface casing serves three primary functions:
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
• It isolates fresh water formations from contact with any fluids coming from deeper in the
earth;
• It serves as a mounting place for the blowout preventer; and
• It serves as the support for the production casing that would be placed in the well if oil is
found.
Once the surface casing is cemented in, drilling operations resume with a smaller drill bit. This
smaller hole is drilled to the total depth decided upon by the Applicant’s geologic and
engineering staff. Usually, the only interruptions to drilling operations would be to remove the
drill pipe (also known as tripping pipe) from the well to replace a dull drill bit, and then lowering
the pipe back to the bottom of the well.
In order to achieve the directional aspect of the drill hole, the well bore is bent. The act of
“bending” a well out of the vertical axis typically begins after vertical drilling has progressed
several hundred feet beneath the surface. Although the specifics of each well proposed for this
Project have not been established, it is not uncommon to begin to deviate from vertical at a depth
of about 600 feet and still reach a target formation located at a depth of 4,000 feet, but also
almost 4,000 to 6,000 feet sideways from the surface spot location. This system would be used
on virtually all of the wells drilled for the Proposed Oil Project.
When the well reaches total depth (TD), drilling operations are halted and the drill pipe is
removed from the well leaving mud in the hole to contain any potential production fluids located
at the reservoir depth. A logging tool is then lowered into the hole to record petrophysical data
of the formations through which the rig has drilled. If the well looks like it would produce oil,
production casing is installed in a similar fashion to the installation of the surface casing.
Production casing for the Proposed Oil Project is planned to be 7inches in diameter. Production
casing would be cemented similarly to how the surface casing is cemented, as previously
described. Once the cement has been allowed to fully harden, another electric logging tool,
called a cement bond log, is lowered to the bottom of the well to evaluate the completeness and
effectiveness of the cement on the outside of the production casing. If the cement is found to
have defects, the casing can be perforated and cement forced into the well at a specific location
or the casing can be removed and the well re-drilled. D evices are inserted to ensure any
perforations are sealed.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
The well is then “completed”, which is a series of activities that allow for the production fluids to
flow into the well bore inside the casing and to the surface.
Table 2.5 shows a list of chemicals that would be used during drilling operations. The amounts
listed are the estimated quantities consumed per well drilled. These materials are packaged by
the manufacturer for shipping and would be delivered to the job site by conventional delivery or
flatbed trucks.
Drilling each well would require approximately 130,000 gallons (or 0.4 acre-feet) of water. The
water would be reclaimed water provided by the West Basin Municipal Water District from an
existing reclaimed water line serving the Greenbelt east of Valley Drive. T he West Basin
Municipal Water District has provided the Applicant with a “will serve” letter.
The drilling process requires the use of drilling mud to circulate drilled rock cuttings out of the
well hole, retain the integrity of the well hole, and control reservoir pressure. The drilling mud
would be collected onsite in Baker tanks (enclosed tanks that are approximately 12 feet tall by 40
feet long and hold up to 500 barrels each). Although most of the mud would be reused on
subsequent wells, some mud would be removed from the Project Site and disposed of each day
by truck at an approved disposal site at Anterra’s Oxnard Licensed Class 2 Disposal Facility or a
similar facility. In addition, all other waste generated by the test drilling would be transported by
truck to the appropriate disposal site at Clean Harbors Buttonwillow Landfill, or a similar facility
if closer to the Project Site.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Table 2.5 Phase 2 Drilling Chemicals
Common/Trade Name Use Container Amount per
Well
Gel Wyoming Bentonite Used to enhance mud
viscosity
100-pound sack 525 sacks
DMA Sodium Polyacrylate Water absorbent mud
additive
50-pound sack 82 sacks
Benex Anionic Acrylamide Mud additive 2-pound sack 75 sacks
GEOZan Xanthan Gum Mud viscosifier 25-pound sack 40 sacks
Omniopol Sodium
Polyacrylate Liquid
Water absorbent mud
additive
- 380 gallons
CFR Fatty Acid Liquid Mud additive to
enhance lubricity
- 600 gallons
Bicarb Sodium Bicarbonate Mud additive for pH
control
50-pound sack 40 sacks
Citric Acid Mud additive for pH
control
50-pound sack 11 sacks
Walnut Hulls Filter medium, used to
reduce torque and drag
of drill pipe and for
plugging of fractures
and high porosity
formations
50-pound sack 48 sacks
Cement Bulk-Truck Used for well sealing - 3 bulk trucks
Biotreat 8415 Treatment of water
before injection into the
oil reservoir
Hydrochloric Acid 15%, used for acid
washing during
completion
Bin varies
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Hydrofluoric Acid 3%, used for acidizing
muds
Bin varies
Source: Project Application, Amendments and Appendices
The Proposed Oil Project would comply with the 1993 CUP conditions of approval, proposed
operational practices, and proposed design features. The noise reduction methods would include
the following:
• An electric drill rig would be utilized, reducing the need for diesel engines;
• The drill rig would have no draw works or cables resulting in less noise;
• A 35-foot-high acoustical barrier wall (per Mitigation Measure NV-3a) would be erected
around the perimeter of the Project Site during all drilling activities. The wall would
have a sound transmission class (STC) rating of at least 32;
• The air inlets and vents of the hydraulic power unit would be fitted with silencers;
• An acoustical shroud would enclose three sides of the rig mast to reduce the top drive
noise (if applicable);
• The mud pumps would be enclosed with acoustical barriers having a sound transmission
class (STC) rating of at least 25;
• An 8-foot high acoustical barrier with an STC rating of at least 25 would be installed
around the shaker tables;
• Drilling Quiet Mode Plan would be implemented at the drill site between 7:00 p.m. and
8:00 a.m., a plan which would provide for the following: disablement of all audible
mobile equipment and truck backup alarms; minimization of pipe handling; cessation of
cementing operations, maintenance, and tripping pipe; and limits within the delivery
schedule; and
• An automated and remotely managed system to connect/disconnect pipe (Iron
Roughneck) would be used, which would reduce pipe handling;
No processing of gas would occur during Phase 2. The gas separated from the oil and water
would be directed to a gas combustor (enclosed ground flare), where disposal of it would occur
through burning.
The Applicant indicates that low levels of potential “native” hydrogen sulfide (H2S), in the order
of 0.0 t o 6.0 pa rts per million (ppm), may be encountered in the gas produced from the
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
underlying oil reservoir.
Because the produced fluids may contain some H2S, fixed H2S detection systems would be
installed around the drilling site and continuous monitoring would be present during all drilling,
workover, and well servicing operations. Sensors would be located in areas that are frequently
used by personnel, selected drilling area locations, areas where H2S may accumulate, and any
other areas determined by hazard analysis to pose a potential risk. Personnel would also carry
personal H2S monitors attached to their clothing for immediate H2S detection during drilling.
Figures 2.12 and 2.13 provide an outline of the City’s designated truck route for construction
trucks through the cities of Hermosa Beach, Redondo Beach and Torrance.
Phase 2 Testing and Operational Systems
After the completion of the first test well and the water disposal/injection well, the extracted oil
would go through production and testing. The temporary production equipment on the Project
Site would be used to process the production fluid. The oil would be processed to a standard that
would be suitable for sale. The produced water would be processed and re-injected back into the
oil-producing reservoir below the oil water contact. Disposal of the gas produced during Phase 2
would occur through burning in the enclosed ground gas flare. Figure 2.11 shows the steps
involved in processing the oil, water, and gas produced from the test wells in Phase 2.
Processing of Production Fluids
During Phase 2, the Proposed Oil Project is designed to handle up to 800 barrels of oil per day
and up to 250,000 standard cubic feet of gas per day. After the oil is processed, it would be
trucked from the Project Site to an offsite oil receiving facility at 2650 Lomita Boulevard in
Torrance. The route used for crude haul trucks is detailed in Appendix A of the Final EIR.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.11 Phase 2 Process Flow Diagram
Source: Applicant application
The produced fluids would be sent from the wells to a three-phase separator, which would
separate the fluid into gas, oil and water streams. The gas exits the top of the separator, the oil
exits the middle, and the water exits the bottom of the separator. Each one of these fluids enters
a specific system of treatment as follows.
Oil Treatment System
The produced oil would enter a series of stock tanks after leaving the three-phase separator. The
stock tanks would be used if the oil needs to be further processed to remove excess water. The
water removed from the oil and water mixture would be sent back to the three-phase separator
through a drain system. Once the oil is processed to a standard suitable for sale, the oil from the
stock tank would be loaded into a tanker truck and transported to the purchaser.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Gas Treatment System
The produced gas would be sent directly to a compressor and then to the gas flare for combustion
after leaving the three-phase separator. A vapor recovery system attached to the temporary
Baker tanks would be utilized to capture vapors and to direct them to a vapor recovery
compressor and to the gas system and flare. The vapor recovery, tank and flare system would be
subject to Southern California Air Quality Management District (SCAQMD) permit
requirements.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.12 Truck Routes from Highway 405 to Project Site
Source:Project Application, Amendments and Appendices
Figure 2.13 Truck Routes to Highway 405from theProject Site
Source:Project Application, Amendments and Appendices
The Proposed Project provides for the disposal of treated stormwater runoff and produced water
from the drilling and production process back into the oil reservoir using water disposal/injection
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
wells. The injection of untreated water can result in the creation of H2S concentrations in the oil
reservoir above preexisting levels (referred to as the “native” condition). Prior to the injection of
produced water from the oil extraction process, or the injection of surface runoff from
precipitation that collects on the Project Site, the water would be treated by a biocide to eliminate
sulfate-reducing bacteria (SRB). Once wells begin production, the extracted water would be
tested for SRBs to determine if treatment is needed. In addition, the surface runoff water and
any other injected water, would be tested. SRBs are an assemblage of specialized bacteria that
thrive in the absence of oxygen and obtain energy for growth by oxidation of organic nutrients,
with sulfate being reduced to hydrogen sulfide (H2S). SRBs are treated by the use of a biocide
and this treatment could be a batch or continuous treatment. There are numerous antibacterial
agents available on the market that could be used for this specific treatment if it is determined to
be needed.
Facility Storm Drain System
The Proposed Oil Project Site is designed to retain, process, and inject storm water within the
perimeter fence or wall for a 100-year storm event. All rainwater falling on the site would be
collected and pumped into the water processing system for disposal/injection into the oil
reservoir. In addition, any spills on the site would also be contained, both within process system
walls/berms around equipment and site walls/berms around the site. Process walls/berms would
be designed to contain at least 110 percent of the largest vessel plus the precipitation generated
by a 100-year storm event.
Safety Systems
Operators would be onsite 24 hours per day, seven days per week, to monitor the Proposed Oil
Project’s production process during Phase 2.
A fire protection system as required by Federal, State, and local codes, ordinances and
regulations would be installed by the Applicant prior to the drilling and testing activities on the
Project Site. The Fire Protection Plan for Phase 2 of the Proposed Oil Project would be provided
to the City of Hermosa Beach Fire Department for review and approval prior to the initiation of
Phase 2.
The design and operation of the Proposed Oil Project would be required to meet provisions
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
within the California Fire Code (CFC) and standards of the National Fire Protection Association
(NFPA), including the requirements for the storage of hazardous materials, the installation and
use of fire protection systems and devices, and the implementation of safety measures for
employees and emergency responders.
Onsite personnel and a site security program, including a closed circuit television system, a gate
access system, and an intrusion and motion detection system, would control all access to and
from the Project Site during Phase 2. In addition, temporary lighting would be provided. The
lighting would be shielded/hooded and directed downward, as is consistent with City
requirements.
All tanks would have containment equal or greater in capacity than at least 110 percent of the
largest vessel plus the precipitation generated by a 100-year storm event.
Water Treatment System
The produced water would be pumped into a treatment system, including a gas flotation unit and
a filter unit, to remove excess oil after leaving the three-phase separator. The primary objective
of both units would be to clean the water of oil and solids such as sand. The water would then
enter a water surge tank after leaving the filter unit and would be sent to the water
disposal/injection pumps for disposal/injection into the oil-producing reservoir through the
disposal/injection well. If determined to be needed, before it enters the water surge tank, the
water would be injected with a biocide to eliminate any bacteria that may be in the produced
water.
Electrical Requirements
Approximately 75 kilo-watt hours of electricity would be required to drill each well.
Chemicals
Project operations would require the use of chemicals. These chemicals would be documented in
a required Hazardous Materials Business Plan. T ypical chemicals utilized in the temporary
production facility are shown in Table 2.6.
Table 2.6 Phase 2 Testing Chemicals
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Common/Trade Name Use Maximum Quantity (Gallons)
Emulsion Breaker/Phasetreat 6378 Help separate oil and water 60
Water Clarifier/Floctreat 7991 Water additive 40
Emulsion Breaker/Waxtreat 3610 Help separate oil and wax 50
Corrosion Inhibiter/Cor 7182 Additive to reduce corrosion 400
Surface Cleaner/4U General purpose cleaner 165
Scale Dissolver/Techni Solve 1780 General purpose scale
remover
55
Scale Inhibitor/Techni Hib 7621 Additive to reduce scaling 120
Source: Project Application, Amendments and Appendices
Noise Abatement
The Proposed Project would be implemented in compliance with the 1993 Conditional Use
Permit conditions of approval. In addition, the applicant proposes to incorporate several
operational practices and design features intended to abate noise. The conditions of approval,
operational practices and design features that would be incorporated into the production
operations include the following:
• Heavy/large reciprocating equipment would be mounted on vibration isolators;
• Pipe tripping would be restricted to daylight hours only;
• Loudspeaker paging systems would be prohibited;
• Well workover rigs or any other workover-type rig (not the main drilling rig) that is used
would be operated only between 8:00 am and 6:00 pm during daytime weekday hours
only, excluding holidays, except in an emergency as defined in the Conditional Use
Permit (CUP) and reported to the City in accordance with the notification requirement.
The exhaust and intake of the diesel engine (if used on t he workover rig) would be
muffled to reduce noise to an acceptable limit. The operator would use whatever means
necessary, including, but not limited to, enclosing the diesel engine and rig in acoustic
blankets or housing;
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
• All oil maintenance equipment, vehicles and non-electrical motors would be equipped
with manufacturer approved mufflers or housed in a sound-proofing device;
• Noise monitoring would be conducted under the supervision of an independent certified
acoustical engineer;
• Each well pump would produce a sound power level no greater than 83 dBA. This may
be achieved by fitting sound attenuating enclosures that provide an insertion loss of at
least 15 dB;
• The produced oil pumps, produced water pumps, water booster pumps and variable
frequency drive electrical (VFD) cabinets would produce a sound power level no greater
than 77 dBA;
• The water injection pumps would produce a sound power level no greater than 83 dBA.
• The vapor recovery compressors would produce a sound power level no greater than 83
dBA; and
• The cooler for the compressors would produce a sound power level no greater than 85
dBA.
Decision not to Proceed -Abandonment
If it is determined that the production of oil and gas on the Project Site would not be
economically viable, the Applicant would remove the sound attenuation walls, the temporary
production equipment, and the temporary construction trailer and abandon the three test wells
and the water disposal/injection well in accordance with the requirements of DOGGR. The
Project Site would be left as a graded site with site improvements including the retaining walls,
the perimeter chain link fence, and the perimeter landscaping.
As the temporary City Maintenance Yard would already be constructed under the Proposed
Project, the current City Maintenance Yard Site would be empty and would be available for
development within the M-1 Light Manufacturing zoned area of Hermosa Beach. The Project
Site would then be available for City or other development proposals, or for the temporary City
Maintenance Yard to be relocated back to this site. However, any future use would need to be
consistent with the lease agreement with the Applicant. C urrent site contamination would
remain as part of the abandonment process and would be removed in accordance with the
requirements of any future site use.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
2.4.2.3 Phase 2 Drilling and Testing Schedule
It is anticipated that Phase 2 w ould occur for approximately 12 m onths as indicated in the
schedule provided in Table 2.7. The drill rig would operate continuously for 24 hours per day,
seven days per week, until the appropriate depth and bottom-hole location for each well has been
reached. It is estimated it would take 120 days for drilling activities, 24 hours a day, which is
approximately 30 days per well for four wells. After the drilling of the three oil wells and one
water disposal/injection well is complete, the drill rig would be removed from the Project Site.
As each well is drilled, the produced fluids from that well would go thorough production and
testing, as described above.
2.4.2.4 Phase 2 Drilling and Testing Personnel and Equipment Requirements
The vehicles, equipment, and employees estimated for Phase 2 are provided in detail in
Appendix A of the Final EIR. A summary of the vehicle trips is shown in Table 2.8. Parking for
the employees would be provided in an adjacent parking area as previously discussed for Phase
1. Since Phase 1 prepares the Project Site for Phase 2, t he conceptual landscape plan and
elevations provided above for Phase 1 would also be applicable to Phase 2.
Table 2.7 Phase 2 Project Schedule
Activity
Schedule (Weeks)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 thru
54
Install trailer and associated utilities
Deliver and set up drill rig/equipment
Install oil, water, and gas equipment
Drill 3 test wells and water well
Testing of wells
Remove drill rig and equipment
Source: Project Application, Amendments and Appendices
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Table 2.8 Phase 2 Vehicle Trip Summary
Activity
3-axle Trucks,
Maximum
RT/day*
2-axle trucks,
Autos, Maximum
RT/day
Total, Maximum
RT/day
Install trailer and associated utilities 2 5 7
Deliver and set up drill rig/equipment 7 20 27
Install oil, water, and gas equipment 6 15 21
Drill 3 test wells and water well 9 10 19
Testing of wells 13 5 18
Remove drill rig and equipment 5 20 25
Greatest number of trips in one day 18
(during weeks 15,
17, 19, 21-24)
25
(during weeks 7-
12 )
37
(during week 7)
Notes: * According to the 1993 CUP, which is valid pursuant to the Settlement Agreement, the number of
truck trips shall be limited to a maximum of 18 rounds trips per day, except in an emergency.
Trucks are 3+ axle or greater or trucks with trailers. Autos are automobiles or pickups/trucks with 2 axles.
Trips are round trips.
Maximum truck activity occurs during drilling and testing of wells.
Maximum auto activity occurs during weeks 7-12 with the installation of oil, water and gas equipment and
the drilling of wells. Maximum activity trucks and autos combined occurs during week 7.
Testing of wells would involve crude transportation by truck, by way of an average of 7 trucks per day/5
days per week or up to 12 trucks in one day (round trip).
Truck maximum and auto/PU maximum do not necessarily occur on the same day, so the total maximum
is not necessarily a simply addition of the two. See appendix A.
See Appendix A for a detailed breakdown of vehicles, employees, trucks and construction equipment for
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
each week.
Source: Project Application, Amendments and Appendices
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
PHASE 3
Final Design and
Construction:
16 Months
2.4.3 Phase 3 Final Design and Construction
If it is determined that the production of oil and gas on the
Project Site would be economically viable, the Applicant
would begin Phase 3 of the Proposed Oil Project. The
purpose of Phase 3 w ould be to utilize the production
information from Phase 2 to prepare the final design of the
facility, prepare the onsite area for facility installation,
install the permanent oil and gas production facilities, and construct offsite Pipelines.
2.4.3.1 Phase 3 Onsite Construction
Phase 3 onsite activities would involve the following construction activities:
• Preparation of final engineering design;
• Removal of temporary production equipment;
• Removal of three remaining trees;
• Removal of 35-foot sound attenuation wall and perimeter fencing (per Mitigation
Measure NV-3a);
• Installation of 24-foot sound attenuation wall (per Mitigation Measure NV-4a);
• Implementation of remedial action plan;
• Construction of remaining retaining walls and final grading;
• Completion of construction of well cellars;
• Construction of 35-foot block wall (per Mitigation Measure NV-6a);
• Removal of 24-foot sound attenuation wall (per Mitigation Measure NV-4a);
• Construction of small office building;
• Installation of permanent production equipment;
• Construction of final site improvements;
• Construction of final street improvements along Project frontage;
• Installation of final landscaping;
• Installation of 32-foot sound attenuation wall;
• Setting of conductor pipe; and
• Installation of lighting systems.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Each of these activities is detailed in the discussion that follows. A site plan for Phase 3 is
shown in Figure 2.14. The conceptual grading plan, site plan, elevations (with the 32-foot sound
attenuation wall), and conceptual landscape plan for the Proposed Oil Project at the completion
of Phase 3 are shown in Appendix A of the Final EIR.
Prepare Final Engineering Design
The final design of the permanent oil and gas production facilities, to be implemented during the
first few months of Phase 3, would be based on the oil and gas analysis and production results
from Phase 2 activities. Final design would include the sizing and development of the exact
specifications for the oil, gas, and water separation production equipment and the detailed
engineering to prepare the required final construction drawings.
Remove Temporary Production Equipment
The temporary oil, water, and gas production equipment installed on the Project Site during
Phase 2 would be removed. The wells drilled during Phase 2 would be shut in, and steel plating
would be placed on top of the well cellar.
Remove Remaining Trees
The three remaining mature trees along the frontage of the Project Site along Valley Drive would
be removed to allow for the construction of final site improvements including a perimeter wall
and the installation of permanent landscaping.
Remove 32-Foot Sound Attenuation Wall and Perimeter Fencing
The 35-foot sound attenuation wall (per Mitigation Measure NV-6a) and the 6-foot perimeter
chain link fencing would be removed from the Project Site.
Install 16-Foot Sound Attenuation Wall
Prior to the initiation of earthmoving activities, a temporary 24-foot sound attenuation wall (per
Mitigation Measure NV-4a) would be brought to the Project Site. The sound walls would be
designed to be movable and would be relocated within the Project Site as needed to attenuate
noise and dust associated with the earthmoving activities needed for the implementation of the
Remedial Action Plan and the final grading of the Project Site. The temporary sound walls
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
would be removed from the Project Site after the onsite earthmoving and grading activities are
completed.
Implementation of Remedial Action Plan
The Remedial Action Plan would be implemented to address lead, barium, arsenic and total
petroleum hydrocarbon (TPH) contaminated soil and groundwater within and beneath the former
landfill area in the northeastern portion of the Project Site. It is anticipated that approximately
9,000 cubic yards of lead contaminated soil would be removed from the Project Site in
accordance with the Remedial Action Plan and hauled to a Class 1 landfill at the Kettleman Hills
Facility, approximately 190 miles from the Project Site. T he TPH contaminated soil
(approximately 4,500 cubic yards located deeper than 25 feet) would be treated onsite via vapor
extraction. For a d etailed discussion of the soil remediation that would occur prior to final
grading of the Project Site, refer to the Remedial Action Plan provided in Appendix A of the
Final EIR. Groundwater contamination attributed to historic use of the site has been documented
(Brycon 2013). The RWQCB have indicated that the Regional Water Quality Control Board
Site Cleanup Program reviewed the Report on Groundwater Assessment and indicated the matter
would go on its large backlog of low priority cases.
Construction of Remaining Retaining Walls and Final Grading
Retaining walls (up to 6 feet high) would be constructed 10 feet back from the Valley Drive and
6th Street property lines, along the eastern boundary of the Project Site and along the eastern
portion of the southern boundary of the Project Site (see Figure 2.14). In addition, retaining
walls would be constructed within the Project Site for the containment area associated with the
production equipment. After the completion of the retaining walls, the Project Site would be
graded to allow for the installation of Project equipment and to allow for proper site drainage.
The final grading of the Project Site would not require the import or export of fill material.
Appendix A of the Final EIR provides the conceptual grading plan that indicates the location of
the retaining wall locations and the final grading of the Project Site.
Complete Construction of Well Cellars
The cement well cellar constructed in Phase 2 would be extended, and a second well cellar
would be constructed to allow for the drilling of the remaining wells in Phase 4. At completion,
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
the well cellars would be approximately 8 feet wide by 120 feet long by 12 feet deep, with stairs
at each end and covered with expanded metal grating. The well cellars would be equipped with
storm water collection sumps and pumps to direct the storm water to the drain sump. From the
drain sump, water would be directed into the processing system and injected, by the water
disposal/injection wells drilled in Phase 4, into the oil-producing reservoir below the oil water
contact. Figure 2.14 shows the location of the well cellars.
Construction of 16-Foot Split-Face Block Wall
A 16-foot split-face block wall would be constructed around the perimeter of the Project Site.
The wall would be set back 10 feet from the Valley Drive and 6th Street property lines to allow
for a landscape area. The wall would have a gated entrance off Valley Drive (set back 70 feet
from the sidewalk) and a gated exit to 6th Street. The gates would be metal and motor operated.
The appropriate signage would be provided, as is consistent with City requirements.
Remove 16-Foot Sound Attenuation Wall
After the completion of the Remedial Action Plan, final site grading, and construction of the well
cellars and perimeter wall, the 16-foot temporary sound attenuation wall would be removed from
the Project Site.
Construction of Small Office Building
A small office building approximately 650 s quare feet in size would be constructed in the
northeast portion of the Project Site to house employee offices and control and monitoring
equipment. The building would have a restroom and break room. The improvements extended
to the Project Site in Phase 1 would provide for associated utilities, including water, sewer,
natural gas, and telephone. The California Water Service Company and the City would provide
water and sewer service, respectively. S outhern California Gas Company (SCGC) would
provide natural gas, and electricity would be provided by Southern California Edison (SCE).
Verizon would provide telephone service. Office related solid waste services would be provided
by Athens Services or a future city franchisee.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.14 Phase 3 Proposed Conceptual Site Plan
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Applicant application
Section 2: Project Description
Exhibit B
This page intentionally left blank.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Installation of Permanent Production Equipment
Permanent oil, water, and gas production equipment would be installed on the Project Site. The
permanent oil production facilities would include tanks, vessels, piping, pumps, filters, and
supporting metering equipment. These are listed in Table 2.9. A retaining wall around all of the
vessels, tanks and other equipment containing oil would provide secondary containment. The
design capacity of the secondary containment would exceed the fluid capacity of the largest tank
by 110 percent plus the precipitation from a 100-year storm event.
In Phase 4, the oil production facility would be used to separate gas, water, and solids from the
oil, after which the oil would be stored in tanks prior to transport via pipeline from the Project
Site. The separated water would be accumulated in tanks, filtered, and then injected into the oil-
bearing reservoir by the four water disposal/injection wells. G as from each well would be
treated on the Project Site and then sold to the SCGC. The permanent gas production facilities
would have compressors, vessels, a H2S and carbon dioxide (CO2) removal system, a moisture
removal system, and an odorizing system. The use of this equipment is discussed in Section
2.4.4, Phase 4 Development and Operations.
Table 2.9 Phase 3 and 4 Processing Equipment Listing
Equipment Size and Number
Oil Shipping Tanks 40 foot diameter by 16 feet high, 2900 BBLS, 2 tanks
Water Clarifier 40 foot diameter by 16 feet high, 2900 BBLS, 1 tank
Water Surge 30 foot diameter by 16 feet high, 1120 BBLS, 2 tanks
Gas compressors 30 foot by 40 foot - 3 compressors
DEA Skid (acid gas removal) 12 foot by 40 foot, 1 skid
Low Temperature Separation
(LTS) skid (propane
refrigerant)
12 foot by 40 foot, 1 skid
Flare/Gas Combustor 10 foot diameter by 22 feet high
Vapor Recovery Compressor 17 foot by 28 foot
IGF Skid 18 foot by 8 foot, 1 skid
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Filter Skid 25 foot by 18 foot, 1 skid
Micro Turbines (five turbines) 200 kw each, 30 foot by 40 foot
3-Phase Separator 7 foot diameter by 35 feet long
Lease Automatic Custody
Transfer (LACT) Skid
5 foot by 12 foot
Source: Project Application, Amendments and Appendices. BBLS=barrels (42 gallons), skid=a pre-
fabricated unit.
Construction of Final Site Improvements
In addition to the areas where the concrete well cellar, the containment area, and the oil and gas
production equipment have been constructed, the ground surface of the Project Site would be
paved with concrete or asphaltic concrete and designed so that no fluids, including rain water up
to a 100-year storm event, would leave the Project Site. Liquids, including rainwater, would be
captured in the containment areas or in the well cellars, processed through the production
facility, and injected into the oil-bearing reservoir via four water disposal/injection wells.
Construction of Final Street Improvements Along Project Frontage
The Proposed Oil Project would include the construction of street improvements along the
frontage of the Project Site on 6th Street and Valley Drive. The improvements would include the
installation of new curbs, gutters, and sidewalks.
Installation of Final Landscaping
Permanent landscaping would be provided along the perimeter of the Project. To the extent
feasible, plant materials used in the temporary landscape plan installed in Phase 1 would be
reused in the permanent landscaping. Reclaimed water supplied by the West Basin Municipal
Water District would be used for irrigation. Appendix A provides the conceptual landscape plan
and plant materials for the permanent landscaping that would be provided at the completion of
Phase 3.
Installation of 32-Foot Sound Attenuation Wall
At the completion of the improvements in Phase 3, a 32-foot sound attenuation wall would be
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
erected inside the 16-foot block wall to provide for noise attenuation during Phase 4 drilling.
Appendix A of the Final EIR provides the elevations of the Project Site, including the sound
attenuation walls with the block walls, from Valley Drive and 6th Street at the completion of
Phase 3.
Set Conductor Pipe
Prior to drilling in Phase 4, a dry-hole digger/auger would be used to set the conductor casing in
the well cellars for all of the intended wells on the Project Site in a manner similar to the setting
of the conductor pipe in Phase 2. A hole approximately 18 inches in diameter would be drilled
to a depth of approximately 80 feet. A conductor pipe would be lowered to the bottom of the
hole and cemented in place. This would form the seal of the near-surface formation and serve as
a steel conduit to allow the drilling fluid used in the next stage of the well to be circulated to the
surface without washing away the shallow near-surface dirt. A ll conductors necessary to
develop the Proposed Oil Project would be set, and the dry hole digger/auger would be moved
off the Project Site.
Lighting Systems
The permanent lighting for the Proposed Oil Project would be installed as a part of Phase 3. The
lighting,as proposed in the Applicant’s Lighting Plan, would be designed to be directed
downward and shielded in order to avoid obtrusive light spillage beyond the Project Site,
reflective glare, and illumination of the nighttime sky.
2.4.3.2 Phase 3 Offsite Pipeline Construction
During Phase 3, offsite pipelines for oil and gas would be constructed to transport the oil and gas
to markets. Each route is discussed in the following subsections.
Gas Pipeline Route
As it leaves the Project Site, the offsite underground pipeline for the transport of gas would be
constructed for a distance of 0.43 miles in the ROW of southbound Valley Drive (which is a one
way street south of 2nd Street) in the City of Hermosa Beach to a tie-in to a SCG gas line in the
Southern California Edison(SCE) Utility Corridor east of N. Francisca Avenue in the City of
Redondo Beach. S ee Figure 2.15 for the proposed pipeline routes. Appendix A contains
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
detailed drawings of the route and valve box options.
This portion of the gas pipeline would consist of two parallel pipelines, 4 inches in diameter, and
located at a depth of approximately 3.5 to 4 feet below ground surface (bgs) within the road
ROW until it ties into the SCG line at a proposed metering station immediately to the east of N.
Francisca Avenue. The pipeline would be a loop system that allows for the gas to be returned to
the Project Site for further treatment in the event that the produced gas does not meet SCG
standards. The metering station site, which would be provided as a part of the Proposed Oil
Project and is owned by SCG, would be approximately 40 by 60 feet in size and surrounded by
an 8-foot high block wall.
As shown in Figure 2.15, this first portion of the gas pipeline is bounded to the east by the
Greenbelt and Ardmore Park and, further to the east, by Ardmore Avenue and residential
development in the City of Hermosa Beach; to the west by the Beach Cities Self Storage facility,
light manufacturing land uses, South Park, and residential development in the City of Hermosa
Beach; and to the west in the City of Redondo Beach by facilities associated with the AES Power
Plant. The gas line is designed for a maximum operating pressure of 465 pounds per square inch
gauge (psig), but would typically operate at approximately 225 psig of pressure.
Once the proposed gas pipeline from the Project Site ties into the SCG point of receipt at the
proposed metering station, SCG would construct a six-inch gas pipeline that extends northeast
for approximately 1.4 miles to connect to an existing SCG pipeline transmission facility (Line
1170) located on the south side of 190th Street near its intersection with Green Lane, between
Flagler Lane and Beryl Street, in the City of Redondo Beach. After the first portion of the new
six-inch gas pipeline leaves the proposed metering station and continues northeast, it would be
located in an existing SCG easement within the SCE Utility Corridor between N. Francisca
Avenue and Pacific Coast Highway. The new pipeline would exit the SCE Utility Corridor on
the south side of the intersection of Herondo Street/Anita Street with Pacific Coast Highway,
extend across Pacific Coast Highway, and continue northeast within the ROW of Anita
Street/190th Street to its point of connection with the existing SCG pipeline transmission facility
(Line 1170). If for some reason the first portion of the new pipeline could not be located within
the existing SCG easement within the SCE Utility Corridor between N. Francisca Avenue and
Pacific Coast Highway, it would leave the proposed metering station and continue for a short
distance north within the ROW of N. Francisca Avenue and turn northeast at Herondo Street
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Pigging
Passing a device through a
pipeline that cleans or
inspects the pipeline. A pig
is usually a small rubber
device slightly smaller in
diameter than the pipeline.
The pig is forced through it
by product flow. Usually
cylindrical or spherical, pigs
sweep the line by scraping
the sides of the pipeline
within the ROW until it reaches the intersection of Herondo Street/Anita Street with Pacific
Coast Highway. A t that point it would continue to the northeast as described previously.
Although SCG would obtain the necessary permits and construct the new gas pipeline, the
Applicant would pay for the associated costs of construction.
The proposed gas line from the proposed metering station to the existing SCG pipeline
transmission facility is bounded to the north by commercial land uses and residential
development in the City of Redondo Beach and to the south by commercial land uses, residential
development, and public facilities including Dominguez Park and Redondo Beach Dog Park in
the City of Redondo Beach.
Oil Pipeline Route
The offsite underground pipeline for the transport of oil to an area refinery via a connection to a
valve location in the City of Torrance would be
constructed for a distance of approximately 3.55 miles
in one of three potential pipeline scenarios that would
follow a route through the Cities of Hermosa Beach
and Redondo Beach and terminate in Torrance. The
selection of the pipeline route would occur after
Project approval. Appendix A of the Final EIR shows
the pipeline route scenarios in detail.
The pipeline would be 8 inches or less in diameter,
located at a depth of approximately 3.5 to 4 feet bgs
depending on the grade. At one of four potential valve
box locations, the pipeline would tie-in to an existing
pipeline that transports oil to a refinery. Appendix A
of the Final EIR provides the proposed alignments of
the three oil pipeline scenarios, the respective jurisdictional boundaries, and the adjacent land
uses. Appendix A of the Final EIR provides the four valve box location options that the pipeline
could tie into. More details are included in Appendix A.
The oil line would be designed for a maximum operating pressure of approximately 500 psig, but
would typically operate at approximately 100 t o 200 ps ig of pressure. T he pipeline would
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
include pigging stations to send and receive maintenance pigs into and from the pipelines to
clean or inspect the pipelines during ongoing operations. This would occur for the lifetime of the
Proposed Oil Project. Pigging refers to the practice of using pipeline inspection gauges or 'pigs'
to perform various maintenance operations on a pipeline without stopping the flow of the product
in the pipeline (refer to sidebar for more information).
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.15 Proposed Pipeline Routes
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source:Project Application, Amendments and Appendices
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
As shown in Figure 2.15, the oil pipeline would be constructed for a distance of 0.39 miles in the
ROW of southbound Valley Drive (which is one-way starting at 2nd Street) in the City of
Hermosa Beach to the corner of Valley Drive/N. Francisca Avenue and Herondo Street in the
City of Redondo Beach. At this point, the oil pipeline would turn to the east along one of the
following three pipeline scenarios (see Appendix A of the Final EIR):
• Scenario 1 consists of the construction of the oil pipeline towards the east within the
ROW of Herondo Street, Anita Street, and 190th Street in the City of Redondo Beach to
the intersection of 190th Street/Hawthorne Boulevard in the City of Torrance. At this
point, Scenario 1 would continue to one of the four valve box options presented later in
this discussion;
• Scenario 2 consists of the construction of the oil pipeline towards the east within the
ROW of Herondo Street and Anita Street in the City of Redondo Beach and the ROW of
190th Street in the City of Torrance to the intersection of 190th Street/Hawthorne
Boulevard. At this point, Scenario 2 would continue to one of the four valve box options
presented later in this discussion; and
• Scenario 3 consists of the construction of the oil pipeline towards the east within the SCE
Utility Corridor in the Cities of Redondo Beach and Torrance. When the oil pipeline
meets Hawthorne Boulevard in the City of Torrance, Scenario 3 would continue to one of
the four valve box options presented later in this discussion.
The function of the valve box is to house the valve on the new oil pipeline to isolate it from the
main oil transmission line and allow for inspection, operation, and maintenance of the valve and
line to be performed as required by Federal and State regulations.
The site requirement for a valve box for the Proposed Oil Project would be approximately six
feet wide by eight feet long by six feet high. The valve box would be a precast concrete box
with walls that are typically eight to ten inches thick. The valve box would be located below
grade and designed to State of California Highway “traffic-rated” standards to allow for vehicle
travel over it. A standard 36-inch or 42-inch manhole cover would provide access down into the
valve box from grade. The manhole cover, the weight of which takes two people to remove and
replace, would be bolted into place with special tools, providing security for the valve box. The
oil pipeline would end at one of the following valve box locations:
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
• Valve Option 1 – For Pipeline Scenarios 1 and 2, the pipeline would continue from the
Hawthorne Boulevard/190th Street intersection down 190th Street to the Exxon Mobil
Refinery, where it would connect with a valve box location within the refinery site. For
Pipeline Scenario 3, the pipeline would turn north in Hawthorne Boulevard and east in
190th Street to the refinery site;
• Valve Option 2 - For Pipeline Scenarios 1 and 2, t he pipeline would turn south in
Hawthorne Boulevard to the SCE Utility Corridor where it would turn east to the valve
box location. For Pipeline Scenario 3, t he pipeline would continue east in the SCE
Utility Corridor across Hawthorne Boulevard to the valve box location;
• Valve Option 3 – For Pipeline Scenarios 1, 2, and 3, the pipeline would turn north in
Hawthorne Boulevard to the valve box location adjacent to the Santa Fe Rail Road line;
and
• Valve Option 4 - For Pipeline Scenarios 1, 2, and 3, the pipeline would turn north in
Hawthorne Boulevard to the valve box location northeast of the intersection of 190th
Street/Hawthorne Boulevard.
The oil pipeline would be equipped with a supervisory control and data acquisition system
(SCADA), which would monitor pipeline pressure and flow and, if a leak is suspected, would
notify the operators. The percentage that is set in the SCADA system would notify the operator
of potential oil leak. The detection timeframes set by the Applicant would vary depending on the
crude oil flow rate in the pipeline. When the flow rate is at the maximum anticipated production
rate of 8,000 barrels per day, flowing on a continuous basis, the flow rate would be 5.5 barrels
per minute, and the following would apply:
• 15 minute time interval 5 % or 4.1 barrels
• 1 hour time interval 2 % or 6.7 barrels
• 24 hour time interval 1 % or 80 barrels
If oil production is considerably less than the 8,000 barrels per day, the percentages would be
adjusted upward to maintain essentially the same volume of oil previously noted based on the
reduced flow rate in the pipe.
Pipeline Construction Methods
The gas and oil pipelines would be installed utilizing conventional trenching methods within
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
either one trench or two separate trenches within the roadway ROW. The construction and
installation process would occur in stages consisting of approximately 237 feet in length each.
Two stages would be constructed per day (a segment of 237 feet would be new construction, and
another 237 feet would be the completion of the construction from the previous day). With the
addition of approximately 126 feet for lane transitions and safety cones, a total of approximately
600 linear feet of roadway would be affected per day. A construction spread would be used to
accomplish most aspects of the gas and oil pipeline construction along the alignments previously
discussed. A construction spread is a clustering of construction equipment that moves along the
pipeline route, sequentially removing asphalt roadway, trenching, laying pipe, filling, re-paving,
and cleaning up. A pipeline construction spread consisting of several units would be organized
to proceed in the following order:
• Pre-construction activities
• Asphalt removal and ditching or ROW grubbing and ditching
• Pipe handling/welding
• Pipe coating
• Pipe lowering, backfilling, and street repair
• Pipe testing and inspection
• Metering, pigging, odorant station installation
If the oil pipeline can be laid within the SCE Utility Corridor (Scenario 3 pipeline route), a
construction spread similar in arrangement, but smaller, would be used since the alignment
would not have asphalt. In addition, if it is determined that existing sleeves under streets
crossing the SCE Utility Easement exist, trenching across some streets may not need to occur.
The following describes the activities that would occur for the construction of the pipelines and
Figure 2.16 depicts a typical pipeline construction spread.
Pre-Construction Activity
The pipeline alignment ROW would include roadways and/or land in existing paved streets and
other property, potentially including private property. A pproval to construct and operate a
pipeline would be obtained from or authorized by franchise agreements or permits from the
agency with jurisdiction over the roadways and, if needed, from affected property owners.
The construction requirements in the municipal codes and ordinances of the Cities of Hermosa
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Beach, Redondo Beach, and Torrance allow for the construction on major roadways during the
following weekday hours:
• Hermosa Beach: 8:00 a.m. to 6:00 p.m. on weekdays and 9:00 a.m. to 5:00 p.m. on
Saturday. No construction on Sundays and holidays;
• Redondo Beach: 9:00 a.m. to 3:00 p.m. on weekdays. No construction on weekends and
holidays; and
• Torrance: 8:30 a.m. to 3:30 p.m. on w eekdays. N o construction on weekends and
holidays.
Figure 2.16 Typical Pipeline Construction Spread
Note: All activities may not occur simultaneously.
The pipeline construction activities would occur on weekdays between the hours of 9:00 a.m.
and 3:00 p.m. (as per the CUP requirements), a time frame which is after morning peak commute
hours (i.e., 7:00 a.m. to 9:00 a.m.) and before evening peak commute hours (i.e.: 4:00 p.m. to
6:00 p.m.) on the affected roadways. The Applicant proposes no construction activities during
weekends and holidays. The Applicant would prepare a Construction Traffic Management Plan
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
(CTMP) that would include the following:
• Require the pipeline contractor(s) to obtain and follow Street Construction Permits in the
affected Cities of Hermosa Beach, Redondo Beach, and Torrance, and Caltrans facilities
(Pacific Coast Highway and Hawthorne Boulevard);
• Develop detour and traffic management plans consistent with the affected City’s
Standard Roadway Plans (e.g., Torrance Street Standard T603), the California Manual of
Uniform Traffic Control Devices (MUTCD), or the Work Area Traffic Control
Handbook (WATCH);
• Revise pipeline construction segments to minimize access conflicts to adjacent residents
and businesses;
• Develop truck route plans to reduce traffic on the street network during peak traffic
commute hours;
• Avoid construction-related traffic to occur during peak travel periods; and
• Implementation of staggered construction worker shifts to minimize Project traffic during
the peak hours.
Underground Service Alert would notify service providers of construction to avoid conflicts with
existing utilities and disruptions of service to utility customers. Because construction would
occur in either paved streets or an existing utility corridor, extensive grading is not proposed.
Asphalt Removal and Ditching
Once traffic control measures are in place, trenching operations would begin. Typically, a five-
foot deep and 18- to 24-inch wide ditch (single pipe) or 36-inch wide ditch (double pipes) would
be excavated (varying depths, depending on the conditions encountered). Backhoes and track
hoes would excavate the ditch. However, hand digging would be necessary to locate buried
utilities, such as other pipelines, cables, water mains, and sewers. Fugitive dust emissions at the
construction site during earthmoving operations would be controlled by water trucks equipped
with fine-spray nozzles. Spoils from cuts, including cuts in the streets, would be saved for
backfill or would be removed, and the ditch would be backfilled with slurry material as approved
by the local jurisdictional agency. Effort would be made to minimize the amount of excess
material. Material unsuitable for backfill and not economically useful for other purposes at the
pipeline location would be disposed of at a landfill according to local jurisdictional guidelines.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
When used for backfill, the spoils from the trenches would be hauled to previously disturbed
sites, as determined by the construction contractor.
Pipe Handling
Special trucks would transport the pipe in 40- to 80-foot lengths from the shipment point or
storage yard to the pipeline installation point. Where sufficient room exists, trucks would carry
the pipe along the roadway, and sideboom tractors would unload the joints of pipe from the
stringing trucks and lay them end to end beside the ditch-line for future line-up and welding. A
portable bending machine would bend the pipe to fit the ditch contour both vertically and
horizontally. Construction ROW conditions could occasionally require pipe bends that are not
able to be accomplished in the field. In these cases, manufactured or shop-made bends would be
used, and pipe would be bent prior to the application of coating. While the line-up crew lays the
pipe, line-up clamps would hold the pipe sections in position until approximately 50 percent of
the first welding pass is completed. The welding crew would then apply the remaining weld
passes to comply with API 1104, ASME B31.4, or ASME 31.8.2 All pipeline welds would be
radiographically inspected.
Pipe Coating
Protecting the pipe from moisture and air helps prevent corrosion, thereby preventing cracks,
breaks, and leaks in the pipe. The steel pipeline would be coated externally with fusion-bond
epoxy or a corrosion resistant tape wrap system. Pipeline coating would be applied at the mill
before delivery to the construction site. However, field coating would be necessary on all field
weld joints to provide a continuous coating along the pipeline. After the pipe has been welded
and radiographically inspected, one of the following would be applied: two-part epoxy, heat-
shrink polyethylene sleeves or polyethylene tape and tape primer.
Pipe Lowering, Backfilling, and Street Repair
The pipe would be lifted and lowered into the ditch by one or two sideboom tractors spaced so
that the weight of unsupported pipe would not cause mechanical damage. Cradles with rubber
rollers or padded slings would allow the tractors to lower the pipe without damage as they travel
2 ASME - American Society of Mechanical Engineers; API – American Petroleum Institute
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
along the ditch line. Additional welds could be required in instances where the ditch line is
obstructed by other utilities crossing the pipe ditch. These welds would typically be made in the
ditch at the final elevation. In addition to normal welding and weld inspection, each weld would
require pipe handling for line-up, cutting to exact length, coating, and backfilling.
Backfill material in roadways would most likely be slurry material or could be ditch spoils,
according to local agency requirements. Slurry material would be delivered by concrete trucks
and consist of sand and cement. C oncrete trucks would be trucks from local commercial
sources. The area would be repaved if it was previously an existing paved street. In areas where
the pipeline would be in previously unpaved areas, the backfill would include topsoil preserved
from the excavation for re-vegetation where needed.
At the time of backfilling, a colored warning tape would be buried approximately 12 to 18 inches
above the pipeline to indicate the presence of a buried pipeline to third-party excavators. The
backfilled earth would be compacted using a roller or hydraulic tamper. The trench would be
filled with slurry where approved or required by local regulations. Steel plates would cover any
open trench at the end of each workday.
Pipe Testing and Inspection
All field welding would be performed by qualified welders that meet the Applicant’s
specifications and in accordance with all applicable laws, ordinances, regulations, and standards,
including API 1104, the Standard for Welding Pipe Lines and Related Facilities, and the rules
and regulations of the U.S. Department of Transportation found in the Code of Federal
Regulations.
All welds would be visually and radiographically inspected. All rejected welds would be
repaired or replaced as necessary and radiographically inspected again. The radiographic reports
and a record of the location of welds would be maintained for the life of the pipeline. In addition
to standard testing of all pipe and fittings at the mill, hydrostatic testing would be performed
after construction and prior to startup. Federal regulations mandate hydrostatic testing of new,
cathodically protected pipelines prior to placing the line into operation. This test involves filling
a test section of the pipeline with fresh water and increasing pressure to a predetermined level.
Such tests are designed to prove that the pipe, fittings, and weld sections would maintain
mechanical integrity under pressure without failure or leakage.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Cathodic protection controls the corrosion of a metal surface by making it work as a cathode of
an electrochemical cell. This is achieved by placing the cell in contact with the metal surface
and another more easily corroded metal to act as the anode of the electrochemical cell. The
cathodic protection system consists of power sources called rectifiers, buried anodes (either
sacrificial or impressed current), and test stations along the pipelines.
Metering and Pigging Station Installation
A gas-metering station would be required at the custody transfer location where the Applicant’s
proposed gas pipeline interconnects with the existing SCG pipeline. The metering station would
measure and record gas volumes, gas quality, and gas characteristics and provide custody
transfer of the gas to SCG. The metering station would be located adjacent to N. Francisca
Avenue, southeast of the intersection of Herondo Street and N. Francisca Avenue. SCG would
then construct a new six-inch pipeline to a tie-in location with the existing SCG pipeline
transmission facility (Line 1170) as previously discussed in Section 2.4.3.2, Phase 3 Offsite
Pipeline Construction.
In addition to the metering station, a pigging station would be installed at the metering station
and Project Site for the gas pipeline, as required by SCG, and at the tie-in point for the oil
pipeline.
An odorant station would be installed at the Project Site consisting of a 500 gallon odorant tank
that would be filled approximately annually. The gas would be odorized before it leaves the site.
2.4.3.3 Phase 3 Hazardous Materials
Hazardous materials used as part of Phase 3 would be associated with construction activities,
including diesel fuels, lubricating oils, pipe coatings, solvents, etc. No storage of hazardous
materials beyond standard consumer quantities (a few gallons) is anticipated in this phase.
2.4.3.4 Phase 3 Schedule
It is anticipated that Phase 3 would occur for a period of approximately 14 months as indicated in
the schedule provided in Table 2.10.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Table 2.10 Phase 3 Project Schedule
Activity
Schedule (Weeks)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28-
38
39-
53
54 55 56 57 58 59 60 61 62 63 64
Remove temporary equipment
Remove trees along Valley
Remove32-foot sound wall
Implement RAP
Construct retaining walls
Final grading
Construct well cellars
Construct 16-foot block wall
Remove 16-foot sound wall
Construct/install facilities
Construct street improvements
Install landscaping
Construct offsitepipelines
Start-up of equipment
Install 32-foot sound wall
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Set conductor
Note: Days are weekdaysSource: Project Application, Amendments and Appendices
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Table 2.11 Phase 3 Vehicle Trip Summary
Activity 3-axle Trucks,
Maximum RT/day
2-axle Trucks, Autos,
Maximum RT/day
Total, Maximum
RT/day
Remove production equipment 6 15 21
Remove trees along Valley Drive 2 4 6
Install 16-foot noise wall 6 8 14
Implement Remedial Action Plan 18 8 28
Construct retaining walls 3 20 24
Final grading (balanced) 4 6 10
Construct well cellars 9 15 25
Construct 16-foot perimeter wall 5 20 25
Remove 16-foot noise wall 5 5 10
Construct/install onsite facilities 18 40 47
Construct street improvements 11 9 20
Install landscaping 1 7 7
Construct pipeline 18 22 54
Start-up production equipment 0 7 7
Install 32-foot sound wall 6 9 16
Set conductor 2 5 7
Greatest number of trips in one day 18
(during weeks 6-13,
23, 54)
62
(during weeks 39-53)
78
(during week 39-53)
Notes: * According to the 1993 CUP, which is valid pursuant to the Settlement Agreement, the number of
truck trips shall be limited to a maximum of 18 rounds trips per day, except in an emergency.
Trucks are 3+ axle or greater or trucks with trailers. Autos are automobiles or pickups/trucks with 2 axles.
Trips are round trips (RT).
Maximum truck activity occurs during week 6-13 with RAP activities, week23 with construct well cellars,
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
PHASE 4
Development and
Operations:
2.5 years drilling
program. Operations -
ongoing
perimeter wall and onsite facilities and week 54 with construction of onsite facilities, pipeline construction
and conductor setting. However, the majority of the pipeline construction traffic would occur away from the
Project Site except during the installation of the sections of the pipeline located very close to the Project
facility.
Maximum auto activity occurs during weeks 39-53 with the facilities construction.
Maximum activity trucks and autos combined occurs during weeks 39-53, however, the majority of the
vehicles for the pipeline construction would be parked at the contractor’s facilities or near the pipeline
alignment.
Truck maximum and auto/PU maximum do not necessarily occur on the same day, so the total maximum
is not necessarily a simply addition of the two. See appendix.
See Appendix A for a detailed breakdown of vehicles, employees, trucks and construction equipment for
each week.
Source: Project Application, Amendments and Appendices
2.4.3.5 Phase 3 Personnel and Equipment Requirements
The vehicles, equipment, and employees estimated for Phase 3 are provided in Table 2.11. The
vehicle trips required to transport employees and equipment for Phase 2 are also provided in
Table 2.11.
2.4.4 Phase 4 Development and Operations
The purpose of Phase 4 would be to maximize oil and
gas recovery from the reservoirs by drilling additional
wells and operating the permanent facility. To
accomplish this, Phase 4 would involve the drilling of
wells; the operation of the permanent oil production
equipment; the transport of the oil and gas by pipeline
to their respective destinations; and the ongoing
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
maintenance of the Proposed Oil Project. The Proposed Oil Project would be designed for a
maximum capacity of 8,000 barrels of oil per day and 2.5 million cubic feet of gas per day.
Figure 2.17 provides the conceptual site plan for Phase 4. Elevations and the conceptual
landscape plan for the Proposed Oil Project during Phase 4 are included in Appendix A of the
Final EIR.
2.4.4.1 Phase 4 Drilling
Phase 4 drilling would involve delivery and setup of the drilling rig and the drilling of the
remaining wells.
Delivery and Set Up of Drill Rig
The drilling rig and its associated equipment would be brought to the Project Site by trucks with
trailers permitted by the City and the California Highway Patrol. The approximately 87-foot
high drill rig would be powered by electricity. A large crane with a 150-foot boom would be
used to erect the drill rig. The crane would be removed from the Project Site after the drill rig
and supporting equipment have been set in place. Support equipment for the drill rig would
include pipe racks, mud and cutting system, pumps, hydraulic equipment, and an accumulator.
In the event of a loss of power from SCE, the generator, which would be a non-road portable
diesel-fuel generators certified by the California Air Resources Board (CARB), would provide
power for the safe shutdown of the drilling operation. The drill rig and its associated equipment
would require the same setup as described under Section 2.4.2, Phase 2 Drilling and Testing.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
2.4.5 Drill Remaining Wells
The drilling of the remaining oil wells and water disposal/injection wells, up to a total of 30 oil
wells and four water disposal/injection wells, would involve the same activities as described for
Phase 2. As previously discussed regarding Phase 2, once the drilling of a well is complete, the
cemented casing would be run from the surface to the bottom of the wellbore where the well
penetrates the oil-producing reservoir. The well would be plumbed into the temporary
production equipment and pump system that had been installed. The pump system, installed
below ground, would bring the oil, gas, and water to the surface for processing. In addition, up
to three additional water disposal/injection wells (in addition to the single water
disposal/injection well drilled during Phase 2) would be drilled to allow for the injection of
processed produced water back into the oil-producing reservoir and at below formation fracture
pressure. The drill rig would operate continuously for 24 hours per day, seven days per week,
until the appropriate depth and bottom-hole location for each well has been reached. It is
estimated it would take approximately 30 days to drill each well, including the time for placing
the drilling rig in position and installing rigging. After the drilling of the wells is complete, the
drill rig would be removed from the Project Site. Including set up for each well and removal
from the Project Site, the total drilling time for Phase 4 would be about 30 months (2 ½ years).
Drilling each well would require approximately 130,000 gallons (or 0.4 acre-feet) of water. The
water would be reclaimed water provided by the West Basin Municipal Water District conveyed
via extension of an existing waterline serving the Greenbelt east of Valley Drive. The West
Basin Municipal Water District has provided the Applicant with a “will serve” letter.
The drilling process requires the use of drilling mud to circulate drilled rock cuttings out of the
well hole, retain the integrity of the well hole, and control reservoir pressure. The drilling mud
would be collected onsite in tanks. Although most of the mud would be reused on subsequent
wells, some mud would be removed from the Project Site and disposed at Anterra’s Oxnard
Licensed Class 2 Disposal Facility or a similar facility. All other waste generated by the test
drilling would be transported by truck to Clean Harbors Buttonwillow Landfill or a similar
facility closer to the Project Site.
Noise abatement would be incorporated into the drilling process in the same manner as described
for Phase 2, including a 32-foot high sound attenuation wall. After the drilling of the wells is
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
completed, the 32-foot sound attenuation wall would be removed from the Project Site.
Re-Drilling of Wells
Re-drilling of a well occurs if production from a well declines substantially or if problems exist
with the well, affecting the well’s efficiency or viability. The same activities would be required
for re-drills as for initial drilling, except that conductor piping would not have to be installed
again, as the same conductor piping would be used for the re-drill.
Although the Applicant does not expect the need for the re-drilling of wells, the activity may be
required under extraordinary circumstances. Depending on the circumstances, a workover rig
might be able to be used to complete a re-drill. However, for the purpose of providing a worst-
case analysis, the Applicant estimates that up to 30 re-drills could occur over the life of the
Proposed Oil Project, with up to five re-drills occurring during any given year. In the event that
a re-drill would occur, noise attenuation design features, including the use of a 32-foot sound
attenuation wall and acoustical covers, would be implemented on the Project Site. Re-drills
would involve the same activities and equipment as the drilling proposed for Phase 2 and 4.
2.4.5.1 Phase 4 Processing and Operations
During the drilling of the remaining oil wells and water disposal/injection wells, the production
of the extracted oil would occur. Figure 2.18 shows the steps involved in processing the oil,
water, and gas produced from the wells during Phase 4. The permanent production equipment
on the Project Site would be used to process the oil and gas to a standard that would be suitable
for sale. The produced water would be processed and injected into the oil-producing reservoir.
The gas produced would be processed and sold to the gas company. The oil and gas produced
would be transported offsite via pipelines constructed during Phase 3.
Figure 2.18 Phase 4 Process Flow Diagram
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Applicant application
Noise abatement would be incorporated into operational practices and permanent production
equipment. The anticipated personnel on the Project Site would be four personnel for a 12-hour
daytime shift, two personnel for an 8-hourgraveyard shift, and two personnel for an 8-hour swing
shift. Therefore, personnel would be present 24 hours per day on the Project Site.
During the ongoing operation of the Proposed Oil Project, active wells would require periodic
routine service. These activities could include the replacement of down-hole pumps, piping, and
cleaning. These maintenance activities would typically be accomplished by utilizing a service
rig, or “workover” rig, approximately 110 feet high. The workover rig would be operated on the
Project Site a maximum of 90 days per year. The workover rig would be operated between the
hours of 8:00 a.m. and 6:00 p.m. on w eekdays only (excluding holidays). O nly a single
workover rig would be onsite at one time.
In addition, there would be an occasional need for other services such as facilities repair and
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
solid and liquid waste pick-up. Preventative maintenance would be performed on a routine basis
to ensure the integrity of the operating equipment. The pipelines would be periodically inspected
to ensure their continued integrity.
The permanent production facility would be utilized to separate and treat produced oil, gas and
water. The separation and treatment of these fluids allows for the oil and gas to be sold and
subsequently transported via pipeline and for the water to be injected into the oil-producing
reservoir below the oil water contact line. Figure 2.18 provides a simplified flow diagram of the
flow of fluids through the permanent production facility. The following describes the steps of
production and operational characteristics in Phase 4.
Fluids Piped from the Wellhead to the Production Facility
After a well has been drilled and completed (final down-hole equipment installed), the extracted
fluids would be piped to the permanent production facility on site. The combination of fluids
(i.e., oil, gas, and water mixture) is referred to as an emulsion. This emulsion would be sent via
pipes to a production header, where it is commingled with the emulsion from all the wells in a
gross line before entering a three-phase separator. There is also a test header that allows the
diversion of emulsions from a single well through a well test station before the three-phase
separator. T he well test station allows for the testing of each well quality and flow
characteristics. After the emulsion passes through the well test station, it would be directed back
to the gross line where it would be commingled back with the emulsion from the production
header and then enter the three-phase separator. The three-phase separator separates the oil, gas,
and water. The gas exits the top, the oil exits the middle, and the water exits the bottom of the
separator. E ach of these fluids enters a specific system of treatment, as is discussed in the
following subsections.
Oil Treatment System
After the produced oil leaves the three-phase separator, it would enter a stock tank, where it may
need to be heated depending on the quality of the crude oil. This heating would allow excess
water to drop from the oil. Heating, if necessary, would be provided by the microturbine exhaust
waste heat recovery system. From the stock tank, the oil would be measured using a Lease
Automated Custody Transfer Unit (LACT) and transported via pipeline to the purchaser. Any
water that drops out of the oil would be routed to the water treatment system. Vapors would be
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
directed to the gas processing systems through the vapor recovery unit.
Gas Treatment System
During this phase, gas would be treated, sold, and subsequently transported via pipeline to the
SCGC. Treatment of the gas would be required to meet gas pipeline specifications. After the
gas leaves the three-phase separator, it would be sent to the first stage compressor. The first
stage compressor would increase the pressure of the gas for treatment. The first stage of gas
treatment is removal of H2S from the gas utilizing triazine using the SulfaScrub system.
SulfaScrub is a non-regenerative batch process that requires replacement of the SulfaScrub
materials periodically. The SulfaScrub process is a “scavenging” process, meaning it is used to
remove H2S in process gas at low concentrations (up to concentrations of approximately 200
ppm).
After leaving the SulfaScrub system, the gas would be sent through the amine system. This
amine system removes CO2 from the gas. After leaving the amine system, the gas would pass
through the second stage compressor, where pressure is increased prior to the gas’ entry into the
low temperature separation system. T he low temperature separation system removes any
remaining moisture (mostly water) and gas liquids from the gas prior to sale. Propane would be
utilized as a refrigerant in the low temperature separation system. Before the gas leaves the
Project Site, it would be odorized using an odorizing substance (mercaptan or equivalent) as
required by law. The gas would then be sent via pipeline through a metering station to a SCG
pipeline constructed in Phase 3 located near the corner of Herondo Avenue and N. Francisca
Drive to the south of the Project Site.
Water Treatment System
After the water leaves the three-phase separator, it would be sent to the clarifier tank. This tank
would allow solids in the water to drop out. From the clarifier tank, the water would then enter
the induced gas flotation unit for the removal of suspended matter, such as oil or solids. The
induced gas flotation unit removes oil by injecting gas bubbles into the water. The bubbles
adhere to the suspended matter, causing the suspended matter to float to the surface and form a
froth layer, which is then removed by a skimmer.
From the induced gas flotation unit, the water would then pass through a filter unit. The filter
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
unit would be used to clean the water of any remaining oil and solids, such as sand. After the
water has left the filter unit, it w ould enter the water surge tanks for storage before
disposal/injection.
From the water surge tank, the water would then flow through pumps and be sent to the
disposal/injection wells for injection into the oil producing reservoir.
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Figure 2.17 Phase 4 Site Plan with Drilling Rig
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Section 2: Project Description
Exhibit B
Development Agreement between City of Hermosa Beach and E&B Natural Resources
Source: Project Application
Section 2: Project Description
Exhibit B
This page intentionally left blank.
Section 2: Project Description
Exhibit B
Vapor Recovery System
Gas from all tanks and vessels not part of the gas processing system (the oil and water processing
tanks and vessels), as well as pressure relief valves, would be gathered through pipes into a
closed-system and directed to a vapor recovery compressor unit. The vapor recovery compressor
would compress the gas and then add it to the gas in the gas processing system (from the three-
phase separator, etc), where it would be processed and sent via pipeline to the metering station
and the SCG system.
Process Drain System
All equipment would be connected to a drain system that would be directed to a drain tank.
Liquids from the drain tank would be sent back to the three-phase separator for reprocessing.
Solids from the drain system may periodically be removed to an offsite approved disposal
facility.
Electrical Generation System
The facility would utilize a Microturbine system, which would consist of five 200 kw Capstone
turbines configured as a single 1,000 kw package. Anticipated NOx emissions would be 4 ppm.
Gas produced on the Project Site would be utilized as fuel for the turbines.
Facility Storm Drainage System
The Proposed Oil Project Site is designed to retain, process, and inject storm water within the
perimeter fence or wall for a 100-year storm event. All rainwater falling on the site would be
collected and pumped into the water processing system for injection into the oil reservoir. In
addition, any spills on the site would also be contained, both within process system walls/berms
around equipment and site walls/berms around the Project Site. Process walls/berms would be
designed to contain at least 110 percent of the largest vessel plus the precipitation from a 100-
year storm event.
Waste
Waste would be generated as part of the facility operations and the production process. Regular
waste would include typical municipal trash such as paper, trash bags, food, and cups. Process
waste would include generic oil field waste such as sandy oil (from the tank bottoms), spent H2S
scavenger, spent filters, oily cloths (i.e., rags), gloves and Tyvek® suits. Intermittently the
facility could generate hazardous waste. These wastes could include empty drums, rinse water,
painting supplies, spilled chemicals, spent media, and hydraulic fluids. The Applicant indicates
Section 2: Project Description
Exhibit B
that the Project Site would have an Environmental Protection Agency (EPA) and Department of
Toxic Substances Control(DTSC) Identification Number.
Phase 4 Safety and Security Systems
The Fire Protection Plan for Phase 4 w ould be provided by the Applicant for review and
approval by the City of Hermosa Beach Fire Department (Fire Department) and incorporated
into the Phase 4 Site Safety Plan. Emergency access would be incorporated into the design of
the Proposed Oil Project. An additional fire hydrant would be provided adjacent to the Project
Site as a component of the Proposed Oil Project. T he location of the hydrant would be
determined by the Fire Department, and installation would occur as a part of the construction
completed in Phase 3.
A fire suppression system for the ongoing operation of the Proposed Oil Project in Phase 4
would be installed during Phase 3. The fire suppression systems would include a foam injection
system and automated detection and annunciation systems. Automated alarm systems would be
installed for the detection of chemicals and fire hazards to notify onsite personnel that an
emergency situation is potentially occurring. If it is determined that a chemical fire or fire
emergency exists, the onsite operator would activate the emergency shutdown system and notify
the Fire Department. The Fire Department and their allied agencies would respond as indicated
in their mutual and automatic aid agreement contracts. The onsite personnel for the Proposed Oil
Projectwould be trained for initial spill response and activation of emergency systems at the site
as per HAZWOPER requirements, but would not be trained for fire fighting and would rely on
the Fire Department for response activities.
The fire detection system would consist of thermal fire detection and optical surveillance
systems that would monitor potential fire zones and activate warning indicators.
The Applicant proposes Subsidence and Induced Seismicity Monitoring Programs to detect
subsidence as a result of drilling activities. This would ensure that subsidence would not be
tolerated to the degree that it could endanger the facility, offsite structures, and the shoreline.
Also, an Induced Seismicity Monitoring Program would be designed to detect seismic activity
that might result from drilling activities.
The security system for the ongoing operation of the Proposed Oil Project in Phase 4 would be
installed and initiated during Phase 3. Security on the Project Site would be provided by onsite
personnel and a site security program that would include a Closed Circuit Television System, a
gate access system, and an intrusion and motion detection system. The security system would
Section 2: Project Description
Exhibit B
control all access to and from the Project Site.
During the final design of the Proposed Project and submission of plans to the appropriate
agencies for permits, the following plans and programs would be developed by the Applicant as
part of the facility drilling and operations phases (Phase 2 and Phase 4 activities):
• Odor Minimization Plan;
• Air Monitoring Plan;
• Fire Protection Plan;
• Safety and Environmental Management Program;
• Mechanical Integrity Program;
• Hazardous Materials Business Plan;
• Subsidence and Induced Seismicity Monitoring Programs;
• Noise Monitoring Plan;
• Quiet Mode Drilling Plan; and
• Various plans related to grading, equipment design, electrical design, landscaping, etc.
Safety devices would be installed within the piping, vessels, and tanks in the processing system.
Safety devices would provide early warning, corrective action, or shut down of a specific
segment of the system or the entire facility, if necessary. A number of safety devices are
required or recommended by codes, standards and regulations, including:
• High level warning systems;
• High pressure warning systems;
• Automatic shutdown valves;
• Vessel and pipe design requirements;
• Vapor recovery and component leakage limits; and
• Fuel contaminant limits.
Detailed piping and instrument diagrams would be provided by the Applicant during the detailed
permitting stages, and reviews of the final design would be undertaken at that time. Specific
measures to reduce the risk of hazardous material releases are addressed in Section 4.8, Safety,
Risk of Upset, and Hazards.
Phase 4 Hazardous Materials
The operation would require the use of hazardous chemicals. The chemicals would be stored
Section 2: Project Description
Exhibit B
onsite with secondary containment. T he chemicals would be documented in a required
Hazardous Materials Business Plan and submitted to the Los Angeles County Fire Department as
the Certified Unified Program Agency (CUPA) and the Hermosa beach Fire Department.
Typical chemicals utilized in the permanent production facility and the maximum quantities that
would be onsite at any time are listed in Table 2.12.
Hydrogen Sulfide
The Applicant indicates that low levels of potential “native” H2S, in the order of 0.0 to 6.0 parts
per million (ppm), may be encountered in the gas produced from the underlying oil reservoir. In
order to have the capability to treat higher levels, the Proposed Oil Project has been planned to
treat H2S levels of 15 ppm and has a maximum design capacity to treat H2S levels of up to 100
ppm. After treatment with the SulfaScrub system, the H2S levels of the gas would be reduced to
less than 4.0 ppm. SCG’s specifications limit the H2S concentrations in gas delivered to the
meter from a producer to less than 4.0 ppm.
The Proposed Project provides for the disposal/injection of treated produced water from the
drilling and production process back into the oil reservoir using water disposal/injection wells.
Untreated produced water can result in the creation of H2S concentrations in the reservoir above
the existing levels in the oil reservoir (referred to as the “native” condition). Prior to the
disposal/injection of produced water from the oil extraction process, surface runoff from
precipitation that collects on the Project Site, or any additional injected water, the water would
be treated by a biocide to eliminate sulfate-reducing bacteria (SRB). Once wells begin
production, the extracted water would be tested for SRBs to determine if treatment is needed. In
addition, the surface runoff and additional water would be tested. SRBs are an assemblage of
specialized bacteria that thrive in the absence of oxygen and obtain energy for growth by
oxidation of organic nutrients, with sulfate being reduced to hydrogen sulfide (H2S). SRBs are
treated by the use of a biocide and this treatment could be a batch or continuous treatment.
There are numerous antibacterial agents available on t he market that could be used for this
specific treatment if it is determined to be needed.
Table 2.12 Phase 4 Drilling Chemicals
Common/Trade Name Use Maximum Quantity Onsite
(Gallons)
Odorant/Mercaptan Odorize the sales gas 500
H2S Scavenger/Pertrosweet Gas treatment for H2S 9,000
Section 2: Project Description
Exhibit B
Table 2.12 Phase 4 Drilling Chemicals
Common/Trade Name Use Maximum Quantity Onsite
(Gallons)
HSE700
Emulsion Breaker/Phasetreat 6378 Help separate oil and water 60
Water Clarifier/Floctreat 7991 Water additive 40
Emulsion Breaker/Waxtreat 3610 Help separate oil and wax 50
Corrosion Inhibiter Cor7182 Additive to reduce corrosion 400
Surface Cleaner/4U General purpose cleaner 165
Scale Dissolver/Techni Solve 1780 General purpose scale
remover
55
Scale Inhibitor/Techni Hib 7621 Additive to reduce scaling 120
Glycol/TEG Gas treatment for water
removal
55
Amine/DEA Gas Treatment for H2S
removal
110
Methanol For oil treatment 55
Biotreat 8415 Water treatment prior tore-
injection
55
Hydrochloric Acid 15%, used for acid washing
during completion
Varies
Hydrofluoric Acid 3%, used for acidizing muds Varies
Note: Project Application, Amendments and Appendices
2.4.5.2 Phase 4 Schedule
It is anticipated that Phase 4 would occur for a period of approximately 30 to 35 years, as
indicated in the schedule provided in Table 2.13. The drilling of the remaining wells would
occur during the first 30 months of Phase 4, with periodic re-drills thereafter for the life of the
project (averaging 30 days per year with a maximum of 150 days in one single year).
The permanent production equipment would operate 24 hours a day, seven days per week. The
Section 2: Project Description
Exhibit B
Project Site would be staffed 24 hours a day, seven days per week.
Section 2: Project Description
Exhibit B
Table 2.13 Phase 4 Project Schedule
Activity
Schedule (Weeks)
1 2 3 4 5 through 131 132 133 134 135 Life of Project
Deliver and Set up drill rig
Drill remaining 30 wells
Remove drill rig
Remove 32-foot noise wall
Facility operations and maintenance Continuous
Re-drills Avg. 30 days/yr
Max 150 days/yr*
Well workovers Max 90 days per
year
Source: Project Application, Amendments and Appendices. To re-drill a well, a drilling rig similar to the
one initiallyused to drill the wells would be used with the same setup, drilling and removal procedures.
Workovers would use an 110-foot tall truck mounted drilling rig and would be conducted a maximum of 90
days per year. * This is the maximum number of days per year proposed by the Applicant. The 150 days
per year is predicted to occur once every 5 years. Most likely re-drill activity would be lower.
2.4.5.3 Phase 4 Vehicle Requirements
The number of vehicles estimated by the Applicant to be necessary for Phase 4 operations are
provided in Table 2.14. During drilling, parking for Project employees would be provided as
previously described under Section 2.4.1.1, Phase 1 Construction Activities, under the subsection
Clearance of the Project Site. Parking for Project employees would be provided on the Project
Site after the drilling of all the wells is completed and the drill rig has been removed from the
Project Site.
2.4.6 Parking Requirements
The Proposed Project construction and operation activities would result in increased parking
demand. The elimination of existing parking would also make necessary the replacement of
spaces lost. Parking requirements addressed in this FEIR include the following:
• Temporary parking for a maximum of 40 Project employee vehicles, varying between
Section 2: Project Description
Exhibit B
approximately 20 and 40 employee vehicles during construction and/or drilling activities
in Phases 1-4, excluding ongoing production in Phase 4;
• Long-term parking for four Project employees during the ongoing operation of the
Proposed Project and four additional spaces for maintenance workers in Phase 4;
Exhibit B
Replacement of 15 parking spaces currently located at the City Maintenance Yard that supply
free remote public parking on weekends under the City’s Preferential Parking Program approved
by the Coastal Commission. These spaces are used by:
• Maintenance Yard employees during working hours (i.e., Monday through Thursday
from 7:00 a.m. to 6:00 p.m. excluding holidays) and by the public at other times; and
• Replacement of two on-street public parking spaces that would be eliminated by
improvements to the southwest corner of 6th Street and Valley Drive. These spaces are
not part of the City’s Preferential Parking Program.
Table 2.14 Phase 4 Vehicle Trip Summary
Activity 3-axle Trucks,
Maximum RT/day
2-axle Trucks,
Autos, Maximum
RT/day
Total, Maximum
RT/day
Deliver and Set up drill rig 6 20 26
Drill remaining 30 wells 12 11 23
Remove drill rig 5 20 25
Remove 32-foot sound wall 4 8 12
Facility operations and maintenance 5 13 18
Well workovers/Major Maintenance 4 14 18
Greatest number of trips in one day 17
(during drilling )
34
(during drilling)
44
(during drilling)
Notes: * According to the 1993 CUP, which is valid pursuant to the Settlement Agreement, the number of
truck trips shall be limited to a maximum of 18 rounds trips per day, except in an emergency.
Trucks are 3+ axle or greater or trucks with trailers. Autos are automobiles or pickups/trucks with 2 axles.
Trips are round trips.
Maximum activity occurs during drilling of wells with facility operations and maintenance.
Truck maximum and auto/PU maximum do not necessarily occur on the same day, so the total maximum
is not necessarily a simple addition of the two. See Appendix A.
Re-drilling would produce the same level of traffic as traffic produced during drilling activities.
Exhibit B
See Appendix A for details regarding vehicles, employees, trucks and construction equipment necessary
for Project operations each week.
Source: Project Application, Amendments and Appendices
In order to comply with the City’s Preferential Parking Program and Coastal Development
Permit requirements and be consistent with the City’s Coastal Land Use Plan (titled Local
Coastal Plan) policies,, 17 public parking spaces would have to be generated under the Proposed
Oil Project to replace the 15 parking spaces removed at the current City Maintenance Yard and
the 2 on -street public parking spaces removed from 6th Street, Table 2.15 pr ovides the
Applicant’s assessment of parking demand for each phase of the Proposed Oil Project and the
Applicant’s proposal for the development of the required parking as a component of the
Proposed Oil Project. As indicated in Table 2.15, Phases 1, 2, and 3 and the drilling portion of
Phase 4 would require temporary offsite parking.
Exhibit B
Table 2.15 Proposed Oil Project Parking Requirements
Phase and Peak Activities
Peak
Number of
Employees
Number of
Offsite Parking
Spaces Needed
Comments
Phase 1: construct fence, wells cellar and
install electrical service
27 20 Some employees would
park onsite and others
would use temporary
parking lot.
Phase 2: Install equipment and drill test
wells.
22 12 Two 5 person shifts for
drilling, some carpooling
assumed.
Phase 3: Construct wall, remove
soundwall, construct onsite facilities
30-60 40 Peak employees occurs
for constructing onsite
facilities. Assumes
some carpooling.
Phase 4: Drilling and Operations 10 4 5 persons per shift with
2 shifts per day.
Carpooling is assumed.
Phase 4: Operations Only 2-4 0 No offsite parking
needed.
Source: Applicant submittals January 2014
The following information summarizes E&B’s proposal in the Project Application to meet
parking demands.
Cypress Parking Lot: Parking for 20 employees during temporary construction and drilling
activities during Phases 1, 2, 3, a nd the drilling portion of Phase 4 would be provided in an
offsite temporary parking lot to be developed at 636 Cypress Avenue adjacent to the western
Project boundary (referred to as the temporary parking lot).
The Applicant states it has entered into an agreement with the current owner of the subject
property at 636 Cypress Avenue (Assessor Parcel No. 4187-031-22) for this use. Access to the
parcel is provided from Cypress Avenue. While adjoining the Project Site at 555 6th Street, the
temporary parking lot will not be accessible from the Project Site due to an elevation difference
between the properties and the need for secured points of entry onto the Project Site.
Exhibit B
The 6,000-square foot parcel at 636 Cypress Avenue is a relatively level property. Itis currently
developed with a single-story building that occupies approximately 75 percent of the parcel and a
parking lot with approximately 6 parking spaces. The development of the parcel would comply
with all City requirements. Development would require demolition of the existing building,
removal of the current asphalt parking area, and minimal grading. The Cypress Parking Lot
would be completed before the commencement of construction activities to occur under Phase 1
Site Preparation of the Proposed Project.
Improvements that would be made to the new 60-foot by 100-foot parking lot with 20 parking
spaces would include drainage, landscaping with irrigation, lighting, a trash container, and other
elements to comply with the City of Hermosa Beach Municipal Code. Details of the redeveloped
parcel are shown in Figure 2-18.
The Applicant has requested that the City supply the required 17 replacement spaces as part of
the City Maintenance Yard relocation. If the No Added Parking option is constructed, then the
17 spaces would be provided on a temporary basis at the proposed temporary parking lot at 636
Cypress Avenue and on a permanent basis as indicated below.. The City has not agreed to
supply any replacement spaces regardless whether the Parking option or No Added Parking
option were to be constructed
Additional 20 Temporary Parking Spaces (Phase 3):During peak construction activities in Phase
3, parking for a maximum of 20 temporary parking spaces, in addition to the 20 temporary
parking spaces provided at the off-site temporary parking area at 636 Cypress Avenue , would be
provided at one or more sites, not yet identified, that would be leased or rented by the Applicant.
Employees would walk to or be shuttled to the Project Site.
The Applicant proposes to ensure to the City, through the submittal of any required
documentation, that the parking spaces would be available during the temporary construction and
drilling activities for the Proposed Project. If spaces are “remote,” located farther than 5 to 8
blocks from the Project Site as defined by the Applicant, a van pool shuttle service from the
remote parking spaces would be provided to the Project Site by the Applicant. The Applicant
proposes to obtain all required approvals and entitlements from the City and to make any
required modifications to conform with City codes, identified as mitigation measures in the
certified EIR, and any other requirements that may be imposed as a result of the Development
Agreement or ballot measure.
Construction Vehicle Parking (Phases 1-4 excluding permanent operations): The Applicant
Exhibit B
indicates that it has an agreement to utilize the below-ground parking area at 601Cypress Street
for non-hazardous equipment storage and construction vehicle parking. Parking for construction
vehicles and staging would be provided both at the Project Site at 555 6th Street and within the
building at 601 Cypress Street during Phases 1-4.
Parking for Ongoing Operations in (Phase 4): The long-term parking for a maximum of four
Project employee vehicles during ongoing operations and maintenance will be supplied by four
marked parking spaces on the Project Site at 555 6th Street. Additional parking required for
maintenance activities for ongoing operations would also be accommodated onsite along the
perimeter wall as indicated in Figure 2-18. No additional offsite parking would be required for
long-term Project operations.
Replacement of Spaces Eliminated by the Project: Fifteen parking spaces at the Project Site at
555 6th Street are used by City Maintenance Yard employees during working hours of Monday
through Thursday from 7:00 a.m. to 6:00 p.m. excluding holidays. These spaces also supply free
remote public parking on weekends under the City’s Preferential Parking Program, approved by
the Coastal Commission, and are otherwise used by the public when available. The Application
proposes to replace 15 spaces for free remote public parking in the offsite temporary parking lot
at 636 Cypress Avenue on a temporary basis and as indicated below on a permanent basis. The
City would be responsible to supply parking for its Maintenance Yard employees as part of its
City Maintenance Yard relocation plan.
Two on-street public parking spaces would also be eliminated by Project improvements to the
southwest corner of 6th and Valley Drive; these spaces are not part of the City’s Preferential
Parking Program. The Application proposes to replace these two spaces in the offsite temporary
parking lot at 636 Cypress Avenue on a temporary basis and as indicated below on a permanent
basis.
The Application indicates potential overlap with onsite employee scheduling during the drilling
portion of Phase 4, requiring four parking spaces at 636 Cypress Avenue to be vacant as one shift
arrives and another shift is leaving. This results in the availability of 16, rather than 17, parking
spaces for a period of approximately one hour.
The Application indicates that relocation of the 17 public parking spaces requires a coordinated
approach between the Applicant and the City and proposes that this relocation be governed by
the Lease Agreement (Section 13). The Applicant proposes the relocated City Maintenance Yard
be developed in a manner which could supply the permanent public parking spaces on weekends
Exhibit B
and at night, similar to the way in which the existing parking spaces at the current City
Maintenance Yard are utilized. If the relocation of the City Maintenance Yard does not become
the location for the permanent public parking spaces, then the Applicant proposes to provide 15
replacement public parking spaces as well as the additional 2 public parking spaces, prior to the
commencement of Project operations, at the offsite temporary parking lot at 636 Cypress Avenue
or to provide other suitable public parking spaces consistent with requirements of the City’s
Preferential Parking Program, the California Coastal Act, and a framework proposed by the
Applicant.
2.4.7 Project Life and Decommissioning
Under the Proposed Oil Project, the oil and gas resources would be developed until they are
depleted and developing them is no longer economically viable, for up to 35 years. Currently,
the amount of crude oil that could be produced from the field is unknown, and future crude
prices are difficult to assess. According to the Lease Agreement, the Proposed Oil Project could
operate for up to 35 years. Figure 2.19 shows the estimated crude oil, gas and water production
for the life of the Proposed Oil Project.
If during Phase 2 the Applicant does not consider the level of production from the Project Site to
be economically feasible, then decommissioning of the installed equipment would commence.
Decommissioning would involve the removal of the drilling and temporary testing equipment
and would include abandonment of wells according to the Division of Oil, Gas and Geothermal
Resources (DOGGR) requirements. The Project Site would be left as a graded site with site
improvements including the retaining walls, the perimeter chain link fence, and the perimeter
landscaping.
At the end of the Proposed Oil Project, when the owner applies to DOGGR and to the City to
abandon the facility, a separate permit process and CEQA environmental review would be
required to evaluate decommissioning of the entire Project Site. S ince the timing of the
decommissioning is unknown, the Applicant has not submitted a detailed decommissioning plan,
and therefore any assessment of decommissioning activities would be speculative at this time.
Exhibit B
Figure 2-18 Cypress Parking Area
Source: E&B Updated Parking Plan 1/8/2014
Exhibit B
Figure 2.19 Estimated Production Levels
Source: Based on Applicant submitted estimates
2.4.8 Project Scheduling Summary
Under the Proposed Oil Project, there are a number of different activities with various
allowances for time of day, day of week and annual limits. These are summarized in Table 2.16.
Table 2.16 Proposed Oil Project Scheduling Summary
Activity Allowed Period
Annually Days and Hours per Day
Workover Rig Maximum 90 days
per year
8 am - 6 pm weekdays only
Drilling Rig Phase 2 - 120 days 24 hours per day
Exhibit B
Phase 4 - 30 months
Re-drills 30 days per year
average, up to 150
per year max
24 hours per day
Phase 1 and Phase 3 Construction Any 8 am - 6 pm weekdays and
9 am - 5 pm Saturdays
Offsite ROW Construction Any 8 am - 3 pm weekdays only in
the City of HB
Truck deliveries Any 9am - 3 pm weekdays or
emergencies
Quiet mode drilling Phase 2 and Phase
4 Drilling, Re-drills
7 pm - 8 am
Pipeline construction activities Phase 3 9 am - 3 pm weekdays.
Exhibit B
Exhibit C
EXHIBIT “C”
PUBLIC BENEFITS OF PROJECT
With the approval of the Project by the voters of the City, the public benefits of the Project
include: a) the royalties as further described in the Lease, estimated to range from [insert
amount] pursuant to the City’s Cost Benefit Analysis to [insert amount] pursuant to E&B’s
Economic Analysis; and b) the minimum annual royalty of Five Hundred Thousand Dollars
($500,000) starting on the fourth anniversary of the completion of the first well drilled as further
described in the Lease (“Minimum Royalty”).
In addition, and as consideration for the benefits provided to E&B through the approval of this
Agreement by the voters of the City, E&B has agreed to provide the additional public benefits as
follows:
1) Advances Commencing with Issuance of City Drilling Permit for First Well: E&B shall
pay to the City, as an advance, Five Hundred Thousand Dollars ($500,000) per year,
starting on the date of the issuance by the City of the drilling permit for the first well and
continuing on the anniversary of that date until the Minimum Royalty payment in the
Lease commences (“Drilling Permit Advance” or collectively, “Drilling Permit
Advances”). (For clarity, this period is estimated to continue for approximately five
years, for a total of Two Million Five Hundred Thousand Dollars ($2,500,000).) Each
$500,000 Drilling Permit Advance would be adjusted by any royalties received by the
City in that year to ensure that the City receives a minimum of $500,000 each year. The
Drilling Permit Advances shall be repaid by the City from royalties, including royalties
from tidelands, without interest, and will be added to the advance amount and subject to
the repayment process set forth in Section 13.d(4) of the Lease. If royalties are not
sufficient to repay the Drilling Permit Advances, then the City is not required to repay the
Drilling Permit Advances.
2) Minimum Royalty Increased by Rental Value of Storage Yard: To compensate the City
for the loss of rental income from the Storage Yard (the permanent site for the new City
Maintenance Yard), which is estimated to be One Hundred Eighty Thousand Dollars
($180,000) annually, E&B agrees to increase the Minimum Royalty from Five Hundred
Thousand Dollars ($500,000) to Six Hundred Eighty Thousand Dollars ($680,000).
3) Remediation of City Maintenance Yard: If E&B determines as a part of Phase 2 of the
Exhibit C
Project to proceed with Phase 3 of the Project, E&B shall implement the proposed
Remedial Action Plan as described in Exhibit B to this Agreement in Phase 3 of the
Project; however, if E&B determines as a part of Phase 2 not to proceed with Phase 3 of
the Project, then E&B shall conduct any necessary remediation activities at the Project
site to allow the site to be used for industrial purposes (e.g., City maintenance activities),
in a manner consistent with its obligations under the Lease, the Settlement Agreement
and this Agreement. E&B shall not be obligated to remediate the property for any other
future uses, such as commercial or residential uses. [If voters do not approve ballot
measure, this document would not be vehicle for determining clean-up, but in any case,
E&B is will not remediate site if project is not approved.]
4) Residential Property Trust: [See attached summary.]
5) Educational Funding: E&B shall pay a percentage of gross revenues [insert percentage]
[currently estimated to be Thirty Million Dollars ($30,000,000)] to the Hermosa Beach
Education Foundation or to an organization established under Section 501(c)(3) of the
Internal Revenue Code for educational purposes to benefit the Hermosa Beach
community [insert timing of payment].
6) Relocation of City Maintenance Yard: If the voters approve the Project, the City may
determine to relocate the City Maintenance Yard to a temporary location and then to a
permanent location or alternatively, to relocate the City Maintenance Yard directly to a
permanent location, without a temporary location. With respect to each of these options,
E&B agrees as follows:
a. Temporary and Permanent Relocation:
i. For the temporary relocation of the City Maintenance Yard, E&B agrees
to increase the maximum temporary relocation advance amount of
Seventy Five Thousand Dollars ($75,000) and the Rent Reimbursement
advance amount of Two Thousand Five Hundred Dollars ($2,500) per
month set forth in Section 13.c of the Lease by the applicable Consumer
Price Index (“CPI”) at the time the amounts are to be paid.
ii. For the permanent relocation of the City Maintenance Yard, E&B agrees
as follows: i) E&B agrees to increase the advance amount of Five Hundred
Thousand Dollars ($500,000) set forth in Section 13.d of the Lease by the
applicable CPI at the time the trust is to be established; and ii) E&B agrees
to guarantee the amount to be paid by the City for the permanent
relocation of the City Maintenance Yard, whereby the City would utilize
its financing capacity to fund the permanent relocation, but if the royalties
from the Project were not sufficient to compensate the City for the
Exhibit C
relocation cost (including financing costs), E&B would pay for any
remaining cost of the relocation not covered by royalties. Further, only
royalties in excess of the increased Minimum Royalty of Six Hundred
Eighty Thousand Dollars ($680,000) shall be considered in the
determination of whether the royalties are sufficient to compensate the
City for the relocation cost.
iii. The base year for the application of the CPI shall be 1992.
iv. The advances for the temporary and permanent relocation combined with
the guarantee for the permanent relocation described above shall not
exceed Ten Million Dollars ($10,000,000), which may be increased in
E&B’s discretion, provided that certain criteria are met.
v. To the extent that the permanent relocation of the City Maintenance Yard
includes excess parking spaces for public purposes, such parking spaces,
or some portion of them, may be utilized to satisfy any public parking
conditions of the project.
b. Permanent Relocation (without a Temporary Relocation):
i. E&B agrees to increase following advances by the applicable Consumer
Price Index (“CPI”) at the time the amounts are to be paid (described
below): i) the maximum temporary relocation advance amount of Seventy
Five Thousand Dollars ($75,000) in Section 13.c of the Lease; ii) the Rent
Reimbursement advance amount of Two Thousand Five Hundred Dollars
($2,500) per month set forth in Section 13.c of the Lease; and iii) the
advance amount of Five Hundred Thousand Dollars ($500,000) set forth
in Section 13.d of the Lease.
ii. The $500,000 advance (increased by CPI), shall be paid at the same time
as the $75,000 advance (increased by CPI), as set forth in the Lease.
iii. E&B agrees to guarantee the amount to be paid by the City for the
permanent relocation of the City Maintenance Yard, subject to the limit set
forth below, whereby the City would utilize its financing capacity to fund
the permanent relocation, but if the royalties from the Project were not
sufficient to compensate the City for the relocation cost (including
financing costs), E&B would pay for any remaining cost of the relocation
not covered by royalties. Further, only royalties in excess of the increased
Minimum Royalty of Six Hundred Eighty Thousand Dollars ($680,000)
shall be considered in the determination of whether the royalties are
sufficient to compensate the City for the relocation cost.
Exhibit C
iv. The base year for the application of the CPI shall be 1992.
v. E&B’s guarantee for permanent relocation described above shall not
exceed [insert amount], which may be increased in E&B’s discretion,
provided that certain criteria are met.
vi. To the extent that the permanent relocation of the City Maintenance Yard
includes excess parking spaces for public purposes, such parking spaces,
or some portion of them, may be utilized to satisfy any public parking
conditions of the project.
7) Matching Funds: E&B shall make available matching funds up to an amount of [insert
amount] for City projects to underground utilities, to implement green initiatives, to
beautify the City or to implement similar projects, where E&B’s matching funds would
be provided on a [provide ratio of City dollars to E&B dollars], utilizing the following
process: [describe process].
8) $3.5 Million Forgiven If Project Does Not Proceed to Phase 3: If E&B determines as a
part of Phase 2 not to proceed to Phase 3 of the Project, the City shall not be required to
repay the Three Million Five Hundred Thousand Dollars ($3,500,000), plus interest, to
E&B as further described in Section 4.6.b of the Lease. City may utilize this $3.5 Million
to conduct additional remediation activities at the Project site to commercial or residential
standards.
9) Fracking: E&B agrees not to engage in any well stimulation activities as defined in
Senate Bill 4.
10) Fire Marshal: Mitigation Measure
11) Fire Department Training: Mitigation Measure
12) HIA Recommendations: TBD
Exhibit C
Purpose: To provide homeowners who own homes within XXX feet of the Hermosa
Beach Oil Recovery Project (Project) with assurance that they will incur no loss,
as a result of the Project, to their home’s fair market value (Market Value), in
the event of a s ale of their property. Such assurance is offered through
voluntary participation in a Hermosa Beach Residential Property Fund (Fund).
Offer: The Fund will pay the difference between an eligible property's actual
negotiated sale price and the appraised Market Value of the property, which will
be determined as if the Project had not been built. A predetermined
independent appraisal process will demonstrate if there is a loss in the Market
Value of a homeowner's residence.
Participation: Participation in the Fund is entirely voluntary.
Eligibility: Owners of residential properties with up to and including two dwelling units
that are located within the “eligibility area” (within XXX feet of the Project,
measured property edge to property edge) when the Fund commences are
eligible to participate.
Costs: There is no monetary cost to participating homeowners to receive the benefits of
the Fund, now or in the future. All costs, including the costs of obtaining
required appraisals, are paid by the Fund.
Cap: There will be a $20,000,000 cap (Funding Cap) on the total amount of benefits
that the Fund can pay out.
Term: The Fund will commence upon issuance of the City Drilling Permit for First
Well by the City of Hermosa Beach and will continue in effect for up to six
years or until the entire Funding Cap has been disbursed to eligible
homeowners, whichever happens first. The six-year Fund term will be extended
consistent with any extension of the term of the Development Agreement in
accordance with Section 6.24 of the Development Agreement.
Administration: E&B Natural Resources (E&B) will establish the Fund and designate a
qualified, independent Fund Administrator. The Fund Administrator will not
be an officer, employee, or affiliate of E&B.
Application: To receive benefits, a selling homeowner of a residence within the eligible area
will submit to the Fund Administrator: (1) a signed Program Participation
Agreement setting forth the terms of the Fund program (Program) and a signed
HERMOSA BEACH RESIDENTIAL PROPERTY FUND
______________________________________________________________________________
Exhibit C
appraisal reflecting the Market Value of the property, which will be determined
as if the Project had not been built and an appraisal with the existing project.
Both must be prepared by an MAI or RM designated appraiser who is licensed
in California and has at least five years of experience appraising residential
properties in the South Bay region of Los Angeles County, California.
Benefits: Within 14 c alendar days after receiving a selling homeowner’s application
materials, the Fund will either agree to pay the amount of the claim, or obtain
another appraisal of the residence using the same criteria as the owner's
appraisal.
If the Fund obtains an alternate appraisal and the difference between the two
appraisals is within 10% of the higher appraised Market Value, the Market
Value for purposes of the homeowner’s claim on the Fund will be equal to the
average of the two appraised Market Values. If not, a third appraiser will be
selected by the first two appraisers, and the Market Value determination in the
third appraisal will be deemed the Market Value of the property. The owner
and the Fund will be conclusively bound by the third appraisal.
The difference between the Market Value of the residence, as so determined,
and the property’s actual negotiated sale price will be paid by the Fund to the
selling homeowner either at closing or within 10 calendar days after the Market
Value of the residence has been determined, whichever takes place later.
Market Value: Each appraisal obtained will determine the Market Value of the homeowner’s
residential property as of the date of the appraisal and as if the Project had never
been built.
Claims: By submitting a claim to the Fund, the homeowner agrees to be bound by the
terms of Program, and to accept reimbursement from the Fund for a loss in the
Market Value of the homeowner’s residential property in exchange for
foregoing any legal action to receive compensation for a decrease in the Market
Value of the homeowner’s property that is caused by or results from the Project.
Any offer that a participating homeowner enters into for sale of its residence
must disclose that E&B has a right of first refusal to purchase the property for a
price equal to the Market Value determined by the appraisal process without
incurring any broker's commission.
claim form; (2) a copy of an accepted written offer to purchase the residence on
arms-length terms from a buyer who is not related to or affiliated with the
selling homeowner and that complies with the Program requirements; and (3) a
current (dated not earlier than six months prior to the homeowner’s application)
Exhibit C
available funds to satisfy potential homeowner claims. E&B will also provide
additional funding totaling a maximum of $3,000,000 from contributions based
on 1.5% of gross project revenues on an annual basis until a total of $3,000,000
is reached.
Distribution: Any remaining amounts in the Fund at the end of the Term shall be distributed
to [to be determined].
Funding: E&B will ensure that, at all times, there is a minimum balance of $500,000 in
the Fund (or if the remaining balance of the Funding Cap is at any time less than
$500,000, then E&B shall maintain the entire, remaining balance of the Funding
Cap in the Fund), and E&B will regularly replenish the Fund up to the Funding
Cap, as and if disbursements are made, to ensure that the Fund has readily-
Exhibit D
EXHIBIT “D”
CONDITIONS OF PROJECT APPROVAL
Exhibit D includes:
1. Exhibit D-1
Conditions of Approval from 1993 Conditional Use Permit for Oil Development at
the City Maintenance Yard, approved by the City in Resolution No. 93-5632 (CUP
to be abandoned and superseded by this agreement)
2. Exhibit D-2
Additional Project Conditions
3. Exhibit D-3
Mitigation Measures/Mitigation Monitoring Plan- from Section 8.0 of Final
Environmental Impact Report (as revised at Hermosa Beach City Council
certification hearing on July 8, 2014 per Resolution 14-6908).
Exhibit D
Exhibit D-1
Exhibit D-1
Conditions of Approval from 1993 Conditional Use Permit for Oil Development at the City
Maintenance Yard, approved by the City in Resolution No. 93-5632
(CUP to be abandoned and superseded by this Agreement)
(Amendments to conditions necessary for consistency with Project Description, Mitigation
Measures and other conditions and terms are reflected herein)
SECTION 1. GENERAL
1. The testing phase for all production shall be a maximum of one year from the date
drilling is initiated.
2. A minimum of one annual site audit shall take place to inspect for soil contamination
as a result of accidental spills in any area not paved and expose. Auditor shall be hired
by City.
3. The maximum number of days the work over rigs or any other rig (other than a drill
rig) that is to be used on-site shall be 90 days per year, and shall be operated
weekdays 8:00 A.M. to 6:00 P.M. excluding holidays.
4. In the event that a residence with solar panels is affected by shading, a site specific
study paid for by the oil contractor shall be conducted to determine economic impact.
5. Pursuant to Assembly Bill 3180 the operation shall be monitored for all condition of
the approval of which the City has responsibility which includes (but not limited to)
noise monitoring and inspection of the site for proper maintenance.
6. The proposed plans shall be submitted to the State Division of Oil, Gas & Geothermal
Resources for their review and recommendation;
a. Any recommendation by the State Division of Oil, Gas & Geothermal
Resources shall be taken into consideration prior to approval, and may be
included as condition of approval.
7. Drill cuttings and other wastes, shall be collected in above ground containers and
disposed of at an approved disposal site. Receipts for all disposal of waste product
shall be provided within ten (10) days of disposal to the Public Works Director.
Exhibit D-1
8. All requirements, standards, conditions stated within the oil Production Code, Chapter
21-A, of the City’s Municipal Code shall be met, unless more restrictive requirements
are imposed through mitigation measures; where it cannot be clearly determined
whether the City’s Oil Ordinance, Chapter 21-A or mitigation measure are more
stringent, the appropriate City staff shall make a determination; appealable to the City
Council.
9. Three (3) copies of final building plans including site, elevation, and floor plans shall
be submitted for review and approval by the Planning Director prior to the issuance of
any Building Permit.
10. The proposed development shall be in substantial conformance with submitted plans.
Any minor modification shall be reviewed and may be approved by the Planning
Director.
11. All wells must be drilled and completed within 55 months from the start of drilling of
the first exploratory well in accordance with the following schedule:
PHASE 1 SITE PREPARATION 6 MONTHS
PHASE 2 DRILLING AND
TESTING PHASE 12 MONTHS
(Exploratory drilling, production testing)
PHASE 3 FINAL DESIGN AND CONSTRUCTION
PHASE 14 MONTHS
(Permanent facility construction)
PHASE 4 DEVELOPMENT AND OPERATIONS
(DRILLING) 34 MONTHS
(Development Drilling, 1 month per well)
If the Drilling Contractor is delayed at any time in the progress of work by any act or
neglect of the City of Hermosa Beach or any other governmental body having authority over
this project, or by labor disputes, adverse weather conditions, by law, war, riots, strikes,
Exhibit D-1
unavoidable casualties, unusual delays in receiving material or equipment or by an act of
God, or causes beyond the control of the Drilling Contractor, when justified, the time period
may be extended to a reasonable time to correspond with the delay incurred by the Drilling
Contractor.
SECTION 2. LAND USE
1. The maximum size for any storage tank of any type shall be forty feet in diameter and
sixteen feet in height, appurtenances not included.
2. Prior to construction and prior to obtaining building permits for oil production, a
complete soil analysis shall be performed and approved by all applicable governing
agencies having jurisdiction over the project.
3. Not more than five tanks shall be installed, and shall be submerged in a concrete basin
which contains 10% above the volume required by the State Division of Oil, Gas &
Geothermal Resources and the Uniform Fire Code which is as follows: the volumetric
capacity of the diked area shall not be less than the greatest amount of liquid that can
be released from the largest tank within the diked area. The capacity of the diked
areas enclosing more than one tank shall be calculated by deducting the volume of the
tanks other than the largest tank below the height of the dike.
4. All wells shall be drilled and cemented in accordance with State Division of Oil, Gas
and Geothermal Resources regulations to protect underground aquifers.
5. The electrical service systems shall be designed with sufficient capacity to minimize
surging impacts.
6. The well cellars shall be concrete lined and shall be designed to hold contaminated
run-off from on-site sources; or a sump shall be provided.
7. Solid state control console linked to a control system to perform energy conservation
functions such as start/stop time programming of motor equipment, data logging of
energy consumption and maintenance and service scheduling shall be provided.
a. All Electrical machinery where possible shall have a minimum coefficient of
Exhibit D-1
efficiency of 0.75.
SECTION 3. PUBLIC SAFETY
1. The site shall be enclosed by a solid masonry or concrete wall with solid gates during
all operations, protecting both against public entry, observation and attraction. A
chain link fence to provide security is acceptable only through Phases 1 and 2.
2. Security personnel shall be employed at all times during the drilling stage (24 hours)
and emergency phone numbers shall be posted during production Phases 2 and 4.
3. Signs warning of unauthorized entry and safety hazards shall be posted on all sides.
4. Access to facilities shall be limited to authorized personnel only.
5. Trees shall be maintained at a distance from all walls to prohibit children and others
from unauthorized entry.
6. All site personnel shall be instructed on required safety procedures if hydrogen sulfide
concentrations are encountered. Documentation of training and instruction shall be
made available to the City Manager.
7. Both solid and liquid wastes shall be sampled and tested to determine if it needs to be
treated as a hazardous waste.
8. An Oil Spill Prevention Control Countermeasures (SPCC) Plan and an Oil Drilling
Contingency Plan will be Prepared for the Project and approved by the State Division
of Oil, Gas and Geothermal Resources, and the City of Hermosa Beach Fire and
Building and Safety Departments.
9. Drillsite and production facilities shall be constructed in accordance with the State
seismic standards, and designed in accordance with U. B.C. seismic requirements for
hazardous facilities.
10. A soils engineering report and engineering geology report prepared by a licensed
Exhibit D-1
geologist and engineer shall be prepared and reviewed in conjunction with the plans
for all physical improvements. Said report shall address potential seismic hazards,
such as liquefaction, due to soils or geologic conditions. All recommendations
contained in said reports shall be incorporated in the construction documents.
11. An emergency response plan, including a blowout prevention and control plan, shall
be prepared for review and approval by the State Division of Oil, Gas & Geothermal
Resources and the Hermosa Beach Fire Department.
12. When a leak or spill occurs, it shall be contained, the fluid shall be recovered and the
area restored to its original condition.
SECTION 4. FIRE SAFETY
1. Adequate fire detection and fighting equipment and supplies, approved by the Fire
Department, shall be maintained on the drillsite and tank production facility at all
times.
2. A supplementary analysis by a professional consultant shall be provided detailing any
necessary improvements the Fire Department may need to prevent, and to halt oil
related fires and shall also include the following: public notification, warning and
evacuation plan.
3. Oil sumps, drip pans, etc. shall be cleaned at regular intervals to reduce fire hazards
and prevent minor spills.
4. Oily rags, paper and miscellaneous waste shall be disposed of in an appropriate
manner to reduce fire hazards
5. Signs warning of flammable fluids and prohibiting smoking shall be installed where
appropriate.
6. The drillsite and production facility shall be protected by automatic fire detection
sensors and suppression systems. The fire suppression systems shall include a tank-
cooling sprinkler system.
Exhibit D-1
7. Drilling operations shall be conducted in accordance with appropriate State Division
of Oil, Gas & Geothermal Resources regulations and shall utilize all required blowout
prevention equipment and safety devices.
8. Fire flows to service the operation shall meet Fire Department regulations.
9. All equipment necessary to contain an oil fire or blowout shall be provided and/or
maintained on site and all fire personnel shall be trained on its use.
SECTION 6. VEHICLE TRAFFIC AND CIRCULATION ON AND OFF SITE
1. All truck deliveries shall be limited to daylight hours (9:00 AM – 3:00 PM), Monday
through Friday, except for an emergency situation, as defined by this agreement and
reported to the City in accordance with the notification requirement, which have been
reported to the Director of Public Works in advance of the delivery.
2. Operation of earthmoving equipment shall be limited to daytime hours between 8 AM
and 6 PM.
3. Equipment deliveries shall be made only during daytime hours between 9 AM and 3
PM.
4. Project related truck travel shall be restricted to specific truck routes and access points
as approved by the Public Works Department.
5. Signs shall be installed to direct detour traffic as approved by the Public Works
Director.
6. The number of truck trips shall be limited to a maximum of 18 round trips per day,
except in an emergency, as defined by this agreement and reported to the City in
accordance with the notification requirement.
7. Maintenance Yard site access shall be designed to enable trucks to turn into the site
without inhibiting traffic movement on Valley Drive or Sixth Street.
8. Minor curb radii reconstruction shall be done by the operator as determined by the
Exhibit D-1
City Public Works depending on the length and necessary turning radii for project
related trucks.
9. Area residents shall be notified of pipeline construction prior to commencement.
Signs shall be installed to direct detour traffic.
10. All trucks arriving or departing the drill site shall be washed to prevent spillage of
earth and all routes shall be swept and washed by the driller as required by the City.
11. An evaluation of the structural condition of the existing pavement shall be performed
by a soils engineer on all access streets and the proposed truck routes prior to
commencing any site preparation or construction and prior to the issuance of any
necessary permits. The evaluation shall include as a minimum:
a) the number, type, size and weight of trucks for export of materials or product,
b) the number, type, size and weight of truck deliveries of building supplies,
drilling supplies etc.,
c) the number, type, size and weight of equipment transported to the site,
d) other associated transportation items,
e) other anticipated loading.
The evaluation shall contain recommendations as to the actions required to maintain
said streets and routes in their current condition throughout the planned development
phase, planned production phase, and in the close out phase.
12. The operator shall perform the actions on the existing pavement as recommended by
the soils or highway engineer, the operator will hire a licensed contractor and provide
street profiles, drawings, and engineering to the satisfaction of the Public Works
Department prior to work commencing.
13. The City Council may restrict the use of certain street, alleys, or roadways in
connection with the permittee’s operation. In the event any street, alley or roadway is
Exhibit D-1
damaged by the permittee’s operations, such damages shall be paid for by the
permittee upon demand by the City, and the failure to pay such damages, being the
reasonable cost of the repair of any such damaged portions, shall be grounds for the
revocation of the permit and the collection of such damages.
SECTION 7. SANITARY SEWER
1. Use of sanitary sewer is prohibited, except for the minimal use associated with the
office and restroom facilities. Any water from oil production shall be disposed in the
four disposal wells.
SECTION 8. NOISE /VIBRATION
1. Tripping will be restricted to daylight hours only.
2. Loudspeaker paging systems shall be prohibited.
3. Well workover rigs or any other rig that is used shall be operated only between the
hours of 8:00 A.M. and 6:00 P.M. during daytime weekday hours only, excluding
holidays, except in an emergency, as defined herein and reported to the City in
accordance with the notification requirement. The exhaust and intake of the diesel
engine (if used on the workover rig) shall be muffled to reduce noise to an acceptable
limit. The operator shall use whatever means necessary, including but not limited to,
enclosing the diesel engine and rig in acoustic blankets or housing.
4. All oil maintenance equipment, vehicles and non-electrical motors shall be equipped
with manufacturer approved mufflers or housed in a sound-proofing device.
5. Noise monitoring shall be conducted under the supervision of an independent
certified acoustical engineer paid for by the permittee. Reports shall be submitted to
the Planning Director within three working days after the completion of each phase of
the monitoring. The monitoring shall include the following:
a. Pre-drilling phase monitoring. Prior to the start of the drilling phase, noise
measurements shall be obtained during the operation of the specific drilling rig
which has been selected and the measurements shall be related to those
Exhibit D-1
experienced at the nearest residential boundaries to the drilling site. In
addition, the noise control measures which have been (or will be) applied to
the rig as needed for compliance with the City of Hermosa Beach noise
ordinances shall be identified.
b. Start of Drilling. Noise measurements shall be obtained during the nighttime
hours (10:00 P.M. to 7:00 A.M.) for at least six hours on each of the three
nights within the five day period from the start of the drilling phase.
Monitoring is to occur at the nearest residential boundary to the actual drilling
operation.
c. During the drilling phase. Noise monitoring shall occur during a six-hour
period between the hours from 10:00 P.M. to 7:00 A.M. at least once each
month during the drilling phase of the project. The noise level data obtained
shall be compared to the City of Hermosa Beach Noise Ordinance standards
by the Planning Department. Where an exceedence of the standards is
identified, noise control measures shall be required.
Production phase. Noise measurements shall be obtained during a six-hour period between
the hours from 10:00 P.M. to 7:00 A.M. at least once each year during the production and
completion phase.SECTION 9. LANDSCAPING
1. A Detailed Landscape Plan for Phases 2 (exploratory drilling and testing) and Phase
4, indicating the type, size and quantity of plant materials shall be submitted to the
Planning Commission, and shall comply with Section 21A-2.9 of the Oil Code.
2. During Phase 2, test facility, landscaping consisting of 24” box, or larger size trees
may be installed without permanent planting.
3. Minimum 24” boxed trees for Phases 2 and 4 shall be adequate in size to create a
buffer effect to obscure visibility of oil production activity. Permanent trees planted
around the perimeter of the site for Phase 4 shall be a minimum sixteen (16) feet high
at planting.
4. Trees along the lot perimeter shall be provided to create a dense landscape buffer to
the satisfaction and field review of the Planning Director.
Exhibit D-1
5. The aesthetic impact of the exposed masonry walls on the west and northern sides
shall be softened with the planting of climbing vines to the satisfaction and review of
the Planning Director.
6. Landscaping shall be maintained in a neat and clean condition.
7. A complete automatic sprinkler system shall be provided prior to commencement of
Phases 2 and 4.
SECTION 10. AESTHETICS
1. The tanks, acoustical wrap and wall, and production facility shall be painted a neutral
color to blend in with in with the surroundings; color shall be reviewed and approved
the Planning Commission.
2. The use of architectural lighting beyond safety and security requirements shall be
prohibited.
3. The site for drilling equipment and the storage facilities shall be depressed in
combination with walls so that the visual impact is minimized.
4. All outdoor lighting shall be shielded and directed inward of the site.
5. Lighting shall be limited solely to the amount and intensities necessary for safety and
security purposes.
6. Certain activities which might involve unshielded lighting (i.e., site preparation and
restoration) activities shall be limited to daylight hours and thus not require nighttime
lighting.
7. A wall maintained graffiti free of a minimum of 12 feet in height shall be provided;
wall materials shall be reviewed and approved by Planning Director. During test
drilling minimum 6’high fencing shall be provided. See Mitigation Measures for
Noise and Vibration in D-3 below for additional requirements for this wall.
Exhibit D-1
8. Tanks shall be submerged 6 to 8 feet or more below grade and will be adjacent to the
35-foot high privacy wall.
9. If the drill derrick remains idle for more than one year, review and approval by the
City Planning Commission or the City Council shall be required, or the derrick shall
be dismantled at the expense of the operator.
10. All production equipment and structures shall be painted to blend with the
surrounding environment with review and approval by the Planning Director.
11. On-site signs shall be limited to those needed for public health and safety.
12. All derricks masts hereafter erected for drilling, re-drilling or remedial operations or
for use in production operations shall be removed within 45 days after completion of
the work unless otherwise ordered by the Division of Oil, Gas & Geothermal
Resources of the state.
13. The operator shall diligently and continuously pursue drilling operations until the all
30 oil wells and all four (4) water disposal wells are completed or abandoned to the
satisfaction of the Division of Oil, Gas & Geothermal Resources of the state and upon
completion or abandonment shall remove all drilling equipment from the drill site
within 45 days following completion or abandonment of the well unless otherwise
ordered by the Division of Oil, Gas & Geothermal Resources.
SECTION 11. ODORS/VAPOR/AIR POLLUTION
1. A vapor recovery system shall be installed to recover 99% of hydrocarbon emission
during storage and transfer of crude oil.
2. Raw gas shall not be allowed into the atmosphere.
3. Gas and vapor detection systems shall be installed at appropriate locations.
4. All project site activities shall be conducted such as to eliminate escape of gas in
accordance with best available control technology and practices which shall be
reviewed and approved by the City.
Exhibit D-1
5. All requirements of AQMD shall be met at all times.
6. A state-of-the-art scrubber shall be employed for the exploratory phase to eliminate
odors from waste gases, and any flame shall be enclosed.
7. Tanks shall be designed and located so that no odors or fumes can be detected from
the adjacent areas outside the exterior walls of the project.
8. Operators shall not blow lines to the atmosphere, except in an emergency, as defined
below in Section 14. and reported to the City in accordance with the notification
requirement.
9. Construction equipment and vehicles shall be maintained in proper tune.
10. Odorless drilling muds shall be used.
11. Well tubing and rods shall not remain out of the well during workover operation less
than 8-hours. The tubing will be surface washed with a detergent solution to remove
odor bearing residual hydrocarbons if exposed longer than 8-hours.
12. Odor control will be further enforced by the SCAQMD under Rules 402, 466.1 of
their regulations, and the commercial recovery system shall be employed for the
permanent facility.
13. There shall be no open flames allowed.
14. The permittee shall monitor drilling mud during drilling on t he site for odorous
substances and take such measures to eliminate any odor which would be perceptible
outside the drill site.
15. The permittee shall undertake no refining process or any process for the extraction of
products from natural gas, except for such minor processeds as necessary to make
natural gas acceptable to the City gas mains for domestic use. [correction of typo]
16. Well cellars shall be maintained in a clean and efficient manner to prevent waste
accumulation and shall be frequently steam cleaned.
Exhibit D-1
SECTION 12. GRADING/STORM WATER/SITE RUNOFF
1. Grading shall not be performed when wind speeds exceed 20 mph. The contractor
shall maintain a wind speed monitoring device on site during grading operations. The
contractor shall continually keep the soil moist during grading operations. At no time
shall any dust be allowed to leave the work site.
2. Normal wetting procedures shall be employed during grading. Review and approval
of procedure shall be by Public Works Director.
3. Graded surfaces shall be paved or landscaped per approved plan.
4. Project site shall be graded so that all contaminated runoff is collected and treated
on-site and disposed of according to all laws.
5. Site shall be graded in a manner so that all hazards or contaminated fluids and runoff
are directed toward a cellar and approved pit and disposed of properly.
6. No water from the site shall be allowed to enter the storm drainage system or any
public area.
7. No water from the site shall be allowed to surface flow across the public beach.
SECTION 13. PIPELINE CONSTRUCTION
1. The pipeline operators shall adhere to all applicable federal, state, regional, and local
statutes governing design, construction, operation, and maintenance of the pipelines
and related equipment.
2. A detailed pipeline survey shall be conducted in order to locate existing pipelines
prior to excavation for pipeline construction.
3. A responsible agent paid for by the applicant shall be present during excavations.
4. Areas of construction and maintenance activities shall be delineated by signs,
Exhibit D-1
flagmen, pavement markings, barricades, and lights, as determined by permit
requirements of all local agencies.
5. Where pedestrian activities are affected during construction, appropriate warning
signs shall be installed and pedestrians will be diverted. Pedestrian access to
businesses and residences will be maintained during construction. Special facilities,
such as handrails, fences, and walkways shall be provided, if necessary, for the safety
of pedestrians.
6. Obstruction of emergency vehicle operations will be partially mitigated by ensuring
that providers of emergency services are kept informed of the location, nature, and
duration of construction activities so alternate routes can be chosen. It is essential that
fire department access is maintained to all buildings adjacent to construction
activities. For this reason, a minimum of at least one lane for streets undergoing
construction will be kept open at all times, and fire hydrants in construction areas will
remain accessible.
7. If public transit stops along pipeline routes need to be temporarily relocated during
construction, the applicant shall provide signs directing riders to the temporary stop
location.
8. When hauling excavated and waste materials from construction sites, substandard
roadways will be avoided and local jurisdiction regulation governing hauling vehicles
will be adhered to.
9. Pipeline construction and operation of earth moving equipment shall be limited to
daylight hours between 8:00 AM and 3:00 PM and shall not be permitted during
weekend periods. Additionally, construction-related trucks should not be operated
during peak traffic hours of 7 to 9 AM and 3 to 7 PM. Pipeline construction at major
intersections shall be limited to daylight hours between 9:00 AM and 3:00 PM to
avoid peak traffic periods.
10. Equipment deliveries shall be made only during daytime hours between 8 AM and 3
PM.
11. In order to reduce visual impacts and possible safety hazards, storage of pipes and
Exhibit D-1
other materials, as well as construction equipment, shall not be permitted on any
street during non-construction hours.
12. Area residents within 300’ shall be notified about the pipeline construction operation
prior to commencement of construction.
13. Detour signs on pipeline construction routes shall be placed at appropriate locations.
14. Steel plates covering pipeline excavation trenches shall be placed to permit traffic
movement during non-construction hours.
15. Pipelines shall be designed with ample safety factors, pressure-tested prior to being
placed in operation, and monitored for corrosion once in operation.
16. Safety shut-down devices that respond to drops in pipeline pressure shall be
incorporated into the project in order to stop the flow of the pipeline contents in case
of a pipeline rupture.
17. Groundwater level and land subsidence shall be monitored to insure that pipeline
damage does not occur as a result of geologic and hydrologic phenomena. The annual
subsidence survey shall include a report to the City on monitoring efforts to insure
pipelining damage has not occurred.
18. Pipeline construction along Valley Drive shall be approved by the Director of Public
Works prior to issuance of a permit.
19. Pipeline construction shall not occur in the area known as the Hermosa Valley
Greenbelt except that the permittee may connect to West Basin Municipal Water
District’s existing reclaimed water line for the purposes and as described in Exhibit B
to this Agreement.
20. Storage of materials shall not be allowed on the Hermosa Valley Greenbelt. The
storage or dumping upon the greenbelt of any materials, construction equipment,
debris, oil drilling equipment, drilling rigs, piping, etc., and any and all equipment
and vehicles necessary for the construction and maintenance of the pipeline and oil
development site shall be prohibited. The use of the greenbelt as a staging area for
Exhibit D-1
construction of the oil facility or pipeline shall be prohibited. There shall be no
parking or standing of any vehicles on the greenbelt for any time period.
21. Trenches shall be covered during non-working hours to minimize traffic circulation
problems.
SECTION 14
Definition and notification requirements for emergency situations:
I. For purposes of these conditions, “Emergency” is defined as follows:
A threat to the health and safety of persons in the surrounding area to the drill site
and the following conditions which require immediate action:
A. Conditions which could lead to potential spill or well blowout:
1. Entry of oil and gas into the wellbore while drilling, tripping or out of
the hole which may be indicated by one or more of the following:
a. Pit volume gain
b. Well flowing with pumps off
c. Flow rate increases with circulation
d. Improper hole fill-up on trips
e. Sudden increase in drilling rate
f. Pump pressure decreases and pump rate increases
g. Decrease in returning mud rate
h. Sloughing shale
i. Changes in mud salinity and/or mud flow properties
2. Lost circulation or loss of ability to circulate
3. Casing or wellhead failure while drilling
4. Stuck pipe and/or equipment during any of the following operations:
Exhibit D-1
a. Drilling
b. Tripping drill pipe and tools
c. Wireline logging
d. Drill stem testing
e. Running casing
f. Perforating and stimulating completion interval
5. Loss of rig power or equipment failure while drilling or tripping.
B. Injuries to personnel at the Drill Site
C. Conditions which could reduce the stability and safety of the rig and
production equipment:
1. Natural events:
a. Excessive winds, rain and lightning
b. Floods
c. Subsidence
d. Earthquakes
2. Other events
a. Riots/Demonstrations
b. Fire
II. Notification Required: In the case of an emergency, as defined above, the
permittee shall give immediate notice to the City of the occurrence of the
emergency event. The City will provide the permittee with a list of phone numbers
of City personnel to call for notification purposes. A written notice, including a
detailed description of the emergency condition, and the actions take and/or
proposed to be taken to correct the situation, shall be provided within 24 hours of
the occurrence of the emergency event.
SECTION 15
Exhibit D-1
1. Each of the above conditions is separately enforced, and if any of the conditions of
approval is found to be invalid by a court of law, all the other conditions shall remain valid
and enforceable.
2. The subject property shall be developed, maintained and operated in full compliance with
the conditions of this grant and any law, statute, ordinance or other regulation applicable to
any development or activity on the subject property. Failure of the permittee to cease any
development or activity not in full compliance shall be a violation of these conditions.
Exhibit D-2
Exhibit D-2
ADDITIONAL PROJECT CONDITIONS
A. GENERAL
E&B (herein “Operator”) is the owner and Operator of this project, responsible for
implementing and complying with all applicable conditions.
A-1 Project Description
This Development Agreement, and associated conditions, is based upon and limited to the
project described in Exhibit B to the Development Agreement.
A-2 Acceptance of Conditions
Execution of this agreement shall be deemed as acceptance of all conditions herein and
waiver of any objections thereto.
A-3 Costs of Implementing and Enforcing Conditions
The Operator shall be fully responsible for all reasonable costs and expenses incurred by the
City or any City contractors, consultants, or employees, in implementing, monitoring, or
enforcing this approval, including but not limited to, costs for permitting, permit conditions
implementation, mitigation monitoring, compliance monitoring, reviewing and verifying
information contained in reports, undertaking studies, research and inspections,
administrative support, and including the fully burdened cost of time spent by City
employees on such matters.
Draw-Down Account. The Operator shall maintain a draw-down account with the City, from
which actual costs will be billed and deducted for the purpose of defraying the expenses
involved in the City’s review and verification of the information contained in any required
reports or plans and any other activities of the City, including but not limited to:
enforcement, permitting, inspection, coordination of compliance monitoring, administrative
support, technical studies, and the hiring of independent consultants. The initial amount to be
deposited by the Operator shall be $500,000. In the first year, if withdrawals from the
Exhibit D-2
account have reduced its balance to less than 50 percent of the amount of the initial deposit
($250,000), the Operator shall deposit $50,000 in supplemental funds within 30 business
days of notification. After the first year, if the balance in the draw-down account is reduced
at any time to $50,000 or less, the Operator shall deposit $50,000 in supplemental funds on
each occasion that the account is reduced to $50,000 or less within 30 business days of
notification. There is no limit to the number of supplemental deposits that may be required.
At the discretion of the Operator, the amount of an initial or supplemental deposit may
exceed the minimum amounts specified in this subsection. The City Manager or Designee
may, from time to time, increase the minimum $50,000 figure to account for inflation or the
City’s experience in obtaining funds from the account. Operator shall be entitled to
reasonably review during normal business hours the expenditures from the deposit to ensure
the expenditures are related to the Project. Should Operator object to an expenditure,
Operator shall submit a request in writing to the City Manager for a detailed written
explanation of the expenditure. Following receipt of the written explanation from the City
and should Operator continue to object to payment of the expenditure, it shall file such
objection in writing with the City Council explaining why such expenditure is not
appropriate from the draw down account or why the amount of the expenditure is not
appropriate for the work. Following City Council consideration of the matter and decision,
the Council’s determination on the expenditure shall be final and binding on the parties.
A-4 Substantial Conformity
The Project shall be designed, constructed, and operated in substantial conformity with the
Project Description in Exhibit B and all conditions of approval set forth in this Exhibit D.
A-5 Conflicts Between Conditions
In the event that any condition or mitigation measure contained in this development
agreement is determined to be in conflict with any other condition contained herein, then
where principles of law do not provide to the contrary, the condition most protective of
natural environmental resources and public health and safety shall prevail to the extent
feasible.
A-6 Facility Throughput and Source Limits
All facilities constructed under this approval shall be limited to the following maximum
Exhibit D-2
production volumes: Phase 2 shall be limited to 800 barrels of oil and up to 250,000
standard cubic feet per day of gas. Phase 4 shall be limited to 8,000 barrels of oil per day
and 2.5 million standard cubic feet of gas per day.
A-7 Alternative Mitigation if Condition Invalidated
If any condition of this project is invalidated by a court of law in a final adjudication, this
approval shall be suspended pending imposition of a substitute condition or mitigation
measure that will achieve equivalent results or reduction of impacts. A substitute condition or
mitigation measure shall be incorporated into the Development Agreement in accordance
with Section 4.2 of the Agreement- Changes and Amendments to Project before the
suspension shall be lifted and the project is allowed to proceed.
A-8 Applicability of Conditions to Construction and Operations
These conditions are intended to apply to the E&B Project during both the construction and
the operation of the permitted facilities. T he term "operations" shall be understood to
encompass both construction and operation phases unless such an interpretation would be
inappropriate.
A-9 Compliance Plans to have Same Force and Effect as Conditions
All elements of the plans and programs required under this Exhibit D shall have the force and
effect of a project condition. The remedies available to the City upon Operators failure to
comply with such plans and programs includes but is not limited to those remedies which are
available to the City upon Operator’s failure to comply with a project condition.
A-10 Performance Security
The Operator shall be subject to the following provisions:
a. Performance Bond.
Prior to issuance of the first drilling permit, the Operator shall provide to the City Manager
or Designee, a faithful performance bond or financial instrument in a commercially
reasonable amount to be determined by the City Manager taking into account existing bonds
to the extent they overlap, payable to the City and executed by a corporate surety acceptable
Exhibit D-2
to the City and licensed to transact business as a surety in the State of California to cover the
exploratory phase of the Project. The exploratory phase performance bond shall be
conditioned upon t he faithful performance by Operator of duties related to well
abandonment, site restoration and environmental cleanup, financing spill response connected
with exploration. Should the Project proceed to the oil production phases of the Project, the
Operator shall provide to the City Manager or Designee, a faithful performance bond or
financial instrument in the sum to be determined by the City Manager, payable to the City
and executed by a corporate surety acceptable to the City and licensed to transact business as
a surety in the State of California Such bond shall be conditioned upon t he faithful
performance by Operator of duties related to well abandonment, site restoration and
environmental cleanup, financing spill response and shall be in a format and include terms
approved by the City Manager connected with the production phases of the project. These
bonds shall be in addition to any other bond required by law (including without limitation
Public Resources Code Sections 3202, 3204, 3205, 3205.2 and 3206 and 14 C.C.R. § 1722.8.
These bonds shall satisfy the bond requirement in Section 23 of the Lease, and in the City
Manager’s discretion, may satisfy the bond requirement in Condition E-1 below.
b. Change of Operator. The performance bond(s) required above shall continue in force for
one (1) year following any sale, transfer, assignment, or other change of Operator of the
Project Site, or of the current Operator’s termination of activities at the Project Site. The City
may release said bond prior to the end of the one (1) year period upon satisfaction by said
Operator of all its obligations. Notwithstanding the foregoing, the performance bond shall
not be terminated or released upon the sale, transfer, assignment, or other change of Operator
until the new Operator has delivered a replacement bond complying with the provisions of
this section.
c. Funding Options. At its sole option, the City may accept Certificates of Deposit, Cash
Deposits, or U.S. Government Securities in lieu of commercial bonds to meet the above
bonding requirements on terms approved by the City Manager.
B. PROJECT REVIEW
B-1 Review by Community Development Director
Prior to commencement of construction or operation for Phase 1, 2, 3 a nd 4, a nd for
subsequent modifications, Operator shall submit to Community Development Department
Exhibit D-2
relevant construction plans, engineering drawings and supporting text demonstrating
compliance with the relevant conditions of this approval. Construction or operation may not
commence until City has reviewed and approved the appropriate submittal, consistent with
applicable conditions. The City agrees to make a good faith attempt to review the submittal
for completeness as expeditiously as possible, which may involve retaining consultants with
the appropriate technical expertise to review the submittal, and to provide a list of
deficiencies. When the submittal is deemed complete, the City agrees to provide written
notice of approval of construction plans as expeditiously as possible, or indicate in writing
the conditions which have not been met, or notify the permittee that the Community
Development Director review shall be completed within a period of time specified by the
City, based on sound engineering practices. When such conditions have been met and city
confirms in writing, construction or operation may be commenced. The City may require
post-construction inspections or review of as-built drawings, as necessary to confirm
consistency with the approved submittal.
B-2 Condition Scheduling Conflicts
In the event that scheduling requirements among or between conditions in this approval (or
with this approval and conditions imposed by other agencies) conflict with respect to timing,
Community Development Department (in consultation with other departments, agencies, and
Operator as appropriate) shall resolve such conflict.
B-3 Authority to Begin Construction
Operator shall not commence construction without written confirmation from Community
Development Director, or designee, that all conditions which require approval prior to
construction of Phase 1, Phase 2, and Phase 3, as specified by this approval, have been
satisfied.
B-4 Authority to Begin Operations
After construction and prior to start-up, Operator shall not commence operations without
written confirmation from Community Development Director, or designee, that all conditions
which require approval prior to start-up, as specified by this approval, have been satisfied.
Start-up, for purposes of this condition, is defined as the introduction of hydrocarbons into
Exhibit D-2
the facility production equipment for both Phase 2/4.
C. MANAGEMENT AND MONITORING
C-1 Environmental Quality Assurance Program (EQAP)
Under EM-1 below in Exhibit D-3, Operator is required to provide funding for
implementation and administration of an environmental monitoring program, including an
environmental monitor (“Monitor”), to ensure compliance with the environmental conditions
of approval. The Monitor shall assist in condition compliance and mitigation monitoring for
all applicable construction and operational stages of the project. The monitor shall be under
contract with the City and funded by the Operator.
1. In accordance with EM-1, the Monitor will create a monitoring program for the
project that includes a post-construction component to monitor measures that extend
beyond the construction period and the operational phase of the project.
2. The Monitor will prepare a working monitoring plan that reflects the approved
environmental mitigation measures and conditions of approval. The monitor’s plan
will include:
a. Goals, responsibilities, authorities, and procedures for verifying compliance
with environmental mitigations;
b. Lines of communication and reporting methods;
c. Daily and weekly reporting of compliance;
d. Construction crew training regarding environmental sensitivities;
e. Authority to stop work; and
f. Action to be taken in the event of non‐compliance.
3. Under EM-1 and other conditions, Operator is also responsible for funding work
required by permit conditions requiring use of individuals with special expertise (e.g.,
geologist, noise engineer, etc.). The Monitor will coordinate the monitoring efforts of
the specialists, including communication with the City and responsible Agencies,
reporting and availability (at appropriate times: prior to issuance of construction
permits, or during construction, as required by applicable permit conditions).
To assist the Monitor in creating and implementing its working monitoring plan, Operator
shall prepare and obtain Community Development Department approval of an Environmental
Quality Assurance Program (EQAP) prior to commencement of Phase 1 construction
activities, and obtain Community Development Department approval of a revised EQAP
Exhibit D-2
prior to commencement of Phase 2, Phase 3, construction activities and Phase 4, Operations.
The approved EQAP and all approved revisions to the EQAP shall be submitted to the
Monitor prior to commencement of each Project phase. This EQAP shall encompass both
construction and operations phases of the E&B Project, and shall describe the steps Operator
will take to assure compliance with the conditions contained in the approval for this project.
The EQAP is intended to provide a monitoring and reporting framework for compliance with
all conditions, programs and plans specified by these conditions and the mitigation measures.
As such, it will become a comprehensive reference document for the City, the Monitor, other
agencies, and the public regarding the E&B Project.
The EQAP shall include, without limitation:
a. All plans, as required by these conditions and mitigation measures, relevant to
construction and operation of the permitted facilities (including the Risk Management
Program, SIMQAP, Emergency Response Plan, Hazardous Material and Waste Management
Plan, Site Security Plan, and Fire Protection Plan). To the extent there is any overlap or
redundancy between plans required under Exhibits D-2 and D-3, upon E&B request the
Monitor may in its discretion authorize E&B to combine required plans into one submittal;
b. Provisions for regularly communicating with and reporting to the Monitor;
c. Provisions for ensuring knowledge of and compliance with these conditions;
d. Provisions for the submittal to Community Development Department and the Monitor
of monthly compliance reports throughout construction and annual summary reports
during operations unless more frequent reporting is deemed necessary by Community
Development or the Monitor. Upon receipt of compliance reports, Community
Development Department or the Monitor shall advise Operator of what additional
compliance items require reporting prior to the next report. These compliance reports
shall describe:
1. Project status, including but not necessarily limited to:
i. the extent to which construction has been completed on various
project phases
ii. the background and experience of the construction labor force
Exhibit D-2
iii. the rate of production/throughput during operation,
iv. environmental planning and implementation efforts, and
v. any revised time schedules or timetables of construction and/or
operation that will occur in the next one-year period.
2. Condition compliance, including but not necessarily limited to the results of
the specific mitigation requirements identified in these conditions and any compliance plans.
3. Results and analyses of all data collection efforts being conducted by Operator
pursuant to these permit conditions.
d. Copies of all local, state, and federal permits relative to the E&B Project, and any
amendments thereto.
The EQAP shall be updated regularly to include all up-to-date compliance plans required
under these conditions of approval.
C-2 24-Hour Emergency Contact
Prior to issuance of the Permit for Phase 1, Operator shall provide to the Community
Development Department and the City Fire Department the current name and position, title,
address, and 24-hour telephone numbers of the person in charge of the facility, person in
charge of construction, and other representatives who shall receive all orders and notices, as
well as all communications regarding matters of condition and permit compliance at the site
and who shall have authority to implement a facility shutdown pursuant to this agreement or
other City ordinances.
There shall always be such a contact person(s) designated by the Operator. One contact
person shall be available 24 hours a day in order to respond to inquiries received from the
City, or from anyone in case of an emergency.
If the address or telephone number of Operator’s agent should change, or the responsibility
be assigned to another person or position, Operator shall provide to Community
Development Department the new information within 24 hours of the effective date of such
change.
Exhibit D-2
C-3 Operator to Provide Copies of Permits to Community Development Department
Operator shall furnish to Community Development Department and Monitor copies of all
local, state, and federal permits relative to the E&B Project within 30 days of receipt by
Operator.
C-4 Pipeline Construction Confined to Right-of-Way
All pipeline construction activities, including work areas and staging and storage areas of
pipe, shall be confined to the area defined in the encroachment permit.
C-5 Capacity and Throughput Reports
Operator shall report to Community Development Department and Monitor the volumes and
rates of: ( 1) inlet volumes; (2) transferred for sales into the Southern California Gas
Company transmission line; and (3) Oil volumes transported to Pipeline. Reports shall be
made on at least a monthly and annual basis and supporting documentation will be provided
upon request from Community Development Department or Monitor. Upon approval from
the Community Development Director and the Monitor, these reports may be combined with
and submitted at the same time as Royalty Statements under Section 4 of the Lease.
C-6 Risk Mitigation Program
A Risk Management Program to substantially reduce the risks of project-related accidents
which may result in loss of life and/or injury, and damage to property and/or the natural
environment shall be submitted for approval to the Hermosa Beach City Community
Development, Fire and Public Works Departments. Other City departments, as deemed
necessary, may be consulted. All reasonable costs associated with this City review shall be
borne by Operator. Operator shall be entitled to participate fully in the review process.
The Program shall include all appropriate construction plans, Process Hazards Analyses
(PHA), and Hazard and Operability Studies (HAZOPs) for the proposed facility and ancillary
equipment to the City who may employ a third-party technical review in order to evaluate
project design and help identify possible design hazards prior to issuance of ministerial
permits. The HAZOPs shall be reviewed and approved by the City prior to construction for
each Phase of the project. This review shall also evaluate all mitigation identified in the EIR.
Exhibit D-2
The City may require as-built inspections and the submittal of as-built drawings for approval
prior to the operation of any plant modifications.
C-7 Safety Inspection, Maintenance And Quality Assurance Program
Operator shall submit a detailed Safety Inspection, Maintenance and Quality Assurance
Program (SIMQAP) for all facilities and pipelines which shall be implemented during
construction and operations. Separate SIMQAP plans may be submitted for Phase 1 and
Phase 2/3/4 activities. The SIMQAP shall be reviewed and approved by the City, including
the Hermosa Beach City Community Development Department, Hermosa Beach Fire
Department and the Monitor. Other City departments, as deemed necessary, may be
consulted. The SIMQAP for construction shall be approved prior to construction, and the
SIMQAP for operation shall be approved prior to operation for each Phase of the project.
The plan is a dynamic document and, as such, updates including new procedures, safety and
maintenance technologies and processes, shall be reviewed jointly by Operator and the City.
The SIMQAP shall be revised as appropriate. The SIMQAP shall include, but not be limited
to, evaluation of staffing levels for safe operation of the plant in emergency situations,
establishing procedures for review of safety inspection records, regular maintenance and
safety inspections, periodic safety audits, development of safety system testing protocols,
training and experience standards for personnel and use of simulation techniques in training
programs, inspections of all trucks carrying hazardous and/or flammable material prior to
loading, monitoring of critical safety devices and systems, and review of the routing of all
trucks carrying hazardous material. Operator shall implement the approved plan and shall
provide for involvement of the Monitor, City staff, or its consultants in all inspections as
appropriate. Prior to construction and operations, Operator shall demonstrate that employees
(and subcontractors) are trained in the safety, inspection, maintenance and operations
requirements of the project. All costs associated with this review process shall be borne by
Operator.
C-8 Emergency Response Plan
Operator shall submit to the applicable City Departments and the City Fire Department an
Emergency Response Plan (ERP) that addresses response procedures to be implemented by
Operator for accidental events that pose significant threats to public health and safety,
property, or the environment.
Exhibit D-2
The ERP shall be reviewed and approved by the City Fire, Community Development and
Public Works Departments prior to commencement of drilling operations. Separate ERPs
may be required for Phase 1 and Phase 2/3/4 activities. The ERP shall include specific
measures to avoid impacts on cultural resources, sensitive habitats, and sensitive biological
resources identified in the project EIR whenever possible without affecting emergency
response. Operator shall demonstrate the effectiveness of its ERP by responding effectively
as determined by Fire to one emergency response drill prior to Phase 1 and prior to approval
of the Plan by Fire. The ERP shall be submitted sufficiently prior to Operator’s projected
start-up date so as to allow reasonable time for review and the planning of a drill required
prior to ERP approval.
The ERP shall be a dynamic document and, as such, shall be jointly reviewed by the City and
Operator, and revised when warranted to incorporate new planning strategies or procedural
changes, new technologies, and the acquisition of more effective, feasible response
equipment as it becomes available. Any changes shall be submitted to the City Fire,
Community Development and Public Works Departments for their review and approval,
prior to implementation. Operator shall demonstrate the ongoing effectiveness of the ERP by
responding to no more than two surprise drills each year which may be called by the City. If
critical operations are underway, Operator need not respond to the drill at that time but shall
explain the nature of the critical operations and why response is not possible. The City may
then call for an additional surprise drill in the same year. Operator shall implement all
reasonable changes based on review of drill performance, which will further enhance overall
emergency response planning and capabilities. Upon E&B’s request and written approval
from the Monitor, this plan may be combined with the emergency response plan required
under FP-1d and FP-1e below.
C-9 Hazardous Material and Waste Management Plan
Prior to start-up, Operator shall submit a Hazardous Material and Waste Management Plan
(HMWMP) to the City Fire Department and Community Development Department for all
facilities. T he HMWMP shall be reviewed and approved by Fire and Community
Development prior to start-up.
The Plan shall demonstrate compliance with the provisions of the Uniform Fire Code as
adopted in Chapter 15 of the Hermosa Beach Municipal Code and the provisions of the
Health and Safety Code §25500 et seq, Chapter 6.95 Business Plan Requirements, with the
Exhibit D-2
exception of emergency response procedures which are complied with above.
The Hazardous Material and Waste Management Plan shall include but not be limited to the
following:
a. Locations and methods for storing hazardous materials and wastes, both within the
facility and along the OIL pipeline right-of-way.
b. Treatment procedures, or justification where none are used, to reduce the hazardous
nature of the materials before they are permitted to leave the site.
c. Specific routes for transportation of hazardous waste materials to Class I disposal
sites consistent with City policy.
d. Letter of commitment that the materials are transferred by a carrier licensed in
hazardous material transport.
e. Letter of commitment ensuring complete accounting of intake, processing, and exit of
hazardous material and wastes.
f. Detailed description of a monitoring system to be installed, capable of detecting
hazardous material and wastes that may escape from primary storage devices.
g. A revised Hazardous Materials Business Plan which accurately reflects the revised
chemical inventory of the project site to Environmental Health Services for review and
approval, in accordance with the California Health & Safety Code, Chapter 6.95, Section
25,500 et seq.
The HMWMP shall be a dynamic document and, as such, shall be jointly reviewed by the
City and Operator, and revised when parties mutually agree it is warranted to incorporate
new planning strategies, changes in procedures, new technologies, or changes in materials, or
when required by law. Any changes requested by Operator or City shall be submitted to Fire
and Community Development for their review and approval, prior to implementation.
C-10 Site Security Plan
Exhibit D-2
Prior to issuance of a Permit for Phase 1, Operator shall submit to the Community
Development and the Hermosa Beach City Police Department for review and approval a site
security plan. The plan shall describe the procedures to be implemented by Operator which
will prevent intentional damage to the drilling and production facilities which may result in
environmental damage or public safety hazards. The plan shall include placement of security
cameras to the satisfaction of the Community Development and Police Departments, and
employment of security personnel at all times during drilling stages (24 hours) (see condition
3.2 in D-1) and employment of security personnel from dusk until dawn at all other times.
The plan shall be reviewed and revised as warranted to require incorporation of new planning
strategies, new technologies or changes in plant operation, and changes in notification
procedures.
C-11 Fire Protection Plan
All E&B Project facilities shall have fire protection features installed in accordance with the
provisions of an E&B Project Fire Protection Plan (FPP), and as such features may be
required under this Exhibit D. All facilities, construction activities, process equipment, and
fire protection equipment shall comply with the standards of the National Fire Protection
Association (NFPA), American Petroleum Institute, Uniform Fire Code as adopted in
Chapter 15, B uilding and Construction of the Hermosa Beach Municipal Code, and the
Hermosa Beach City Fire Department. In the event of a conflict between these standards, the
Fire Marshal, in consultation with the Operator, shall make a cost/benefit decision regarding
which standards apply.
Prior to construction, Operator shall receive Fire Department approval of an FPP which
addresses both construction and operation of the E&B Project. Operator shall distribute
copies of the approved contingency plans to applicable City Departments and the City Fire
Department. All plan recipients are to be notified of contingency plan changes via formal
contingency plan updates. Separate FPPs may be submitted for Phase 1 and Phase 2/3/4
activities. The FPP shall include, but may not be limited to, discussions of the following:
Onsite firefighting equipment and systems
Fire and detection
Access
Vegetation management
Employee training and safe practices
Exhibit D-2
Process control and monitoring analysis
Drainage and containment
Safety, inspection (including City inspectors) and maintenance practices
Upon E&B’s request and written approval from the Monitor, this plan may be combined with
the emergency response plan required under FP-1d and FP-1e below.
C-12 Prevention of Internal Pipeline Corrosion
Operator shall implement techniques to prevent internal corrosion in accordance with the
requirements of the California State Fire Marshal (Title 5 §51010 -5-019 of the California
Government Code), 49 CFR 192 Parts 150, 475 and 477, and 49 CFR 195.418 as part of the
Oil and pipeline maintenance procedures. The internal inspection records shall be submitted
to and reviewed by the appropriate governmental agencies. Such activities shall include
routinely scheduled pigging of the pipeline to remove pockets of accumulated fluids that
contribute to internal corrosion (such as hydrogen sulfide, carbon dioxide, and water), the use
of corrosion inhibitors and corrosion coupons, and periodic testing by a state-of-the-art
"smart pig" to identify areas where corrosion, pipewall thinning, dents, cracks and other
defects have occurred. Specific measures are discussed below:
a) Whenever any section of the pipelines are removed for any reason, they shall be
inspected for possible internal corrosion and records retained for inspection by the State Fire
Marshal.
b) The pipeline shall be tested with a state-of-the-art "smart pig" to identify areas where
corrosion, pipewall thinning, dents cracks and other defects have occurred. State-of-
the-art pigging will be capable of defining wall-thickness contours around any area of
reduced wall thickness. The smart pigging will be done prior to operation of the Oil
and natural gas pipelines and at a subsequent interval to be determined by the
California State Fire Marshal. A p rogram of maintenance shall be developed to
ensure that permits to perform the work are obtained as soon as possible and that
pipeline defects are rectified within one month of securing the necessary permits for
severe defects, and within six months for moderate defects. This procedure shall be
noted in the SIMQAP and receive approval by the SSRRC prior to operations of
either the OIL or natural gas pipelines.
Exhibit D-2
C-13 Prevention of External Pipeline Corrosion
Operator shall undertake the following provisions to avoid external pipeline corrosion:
a) The Oil and natural gas pipelines shall be coated to reduce the potential for external
corrosion. Final selection of pipeline coating will be demonstrated, to the satisfaction of the
California State Fire Marshal, that the selected coating would provide the maximum level of
protection of available coatings for all expected operating conditions; and
b) A baseline pipe-to-soil cathodic profile and reading shall be obtained after the pipeline has
been installed, but before any cathodic protection facilities are connected. Other utilities
shall disconnect their bonds as well. This measure shall be included on the construction
plans which shall be reviewed by the City.
C-14 Pipeline Hydrotesting
The oil and natural gas pipelines shall be hydrotested prior to operation, and every five years
thereafter or sooner if warranted by major ground movement that has the potential to
undermine the structural integrity of the pipeline. This procedure shall be noted in the
SIMQAP which shall be reviewed and approved prior to operations.
C-15 Structural Support for Underground Utilities
Operator shall provide structural support for underground utilities in and near the
construction area during work in the trench and backfilling operations to prevent damage to
such facilities during construction activities.
C-16 Underground Utility Damage
Operator shall halt work in the immediate vicinity in the event of inadvertent damage to an
underground utility, until the owner of the utility has been contacted and repairs have been
effected.
C-17 Underground Pipeline Warning Marker
A plastic ribbon or other suitable material shall be buried 12 to 18 inches above the oil and
Exhibit D-2
natural gas pipelines and shall cover the length of the pipeline. The material shall be brightly
colored and be labeled with a warning that this area contains a hazardous liquid pipeline
trench. This measure shall be noted on the design and construction plans to be reviewed and
approved by the City.
C-18 Pipeline Route Warning Signs
The entire pipeline route shall be marked with pipeline warning signs a minimum of every
500 feet. Spacing of markers may be greater in agricultural areas provided markers are
clearly within sight of each other. Bright colored markers shall be installed above new
pipelines that extend offsite of the proposed facility. This type of measure helps reduce the
likelihood of external mechanical interference, of which third party damage associated with
excavation near the pipelines is the most common cause of pipeline failures.
C-19 Underground Service Alert Notification
Operator shall notify owners through the office of Underground Service Alert of any
underground facilities (including electrical, water, petroleum pipelines, fiber-optics and
agricultural water delivery and drainage pipelines) 48 hours in advance of excavation in the
vicinity of these facilities. Operator shall have an electrical contractor on-call at all times
during construction near the potentially affected facility to repair any circuits if required by
the owner in the event they are damaged during construction. The appropriate response to
hazards associated with damage to natural gas pipelines will be determined in consultation
with Southern California Gas Company. The City Fire Department shall be notified of the
schedule for construction activities in the vicinity of natural gas and other oil pipelines.
C-20 Finished Pipeline Route Maps
Upon completion of pipeline construction, Operator shall provide all jurisdictional agencies
with at least two copies of maps showing the finished pipeline route and shall include
locations accessible by fire department emergency response vehicles. Said maps shall be 7
1/2 minute quadrate scale, (one inch equals 24,000 inches), and shall represent topographical
features.
C-21 Supervisory Control and Data Acquisition and Emergency Shutdown Systems
Exhibit D-2
The pipeline supervisory control and data acquisition (SCADA) and Emergency Shutdown
(ESD) systems, including inspection, maintenance and quality assurance procedures for the
SCADA and ESD systems, shall be reviewed and approved by the Fire Department and the
Building Department and Public Works Department prior to operations of either the oil or
natural gas pipelines, and as appropriate thereafter. The SCADA and ESD systems shall
comply with the provisions of Fire Department Development Standard No. 7 a nd the
National Electrical Code Article 760.
Operator shall conduct a comprehensive safety and reliability analysis of the SCADA system
as well as the processing facility and oil and natural gas pipelines control room prior to
commencement of pipeline operations, and as appropriate thereafter. The analysis shall meet
or exceed the guidelines developed by the Institute of Electronic and Electrical Engineers.
Any improvements identified in the study shall be included in the suggested hardware and
software. R esults of the study shall be provided to the Community Development
Department.
Company shall design the project such that the entire project will integrate the supervisory
control and data acquisition (SCADA) or other monitoring system for all the components of
this project in a manner so as to provide timely and efficient detection, shutdown,
notification and response to an emergency involving any of the project components. Any
break, rupture, and/or damage to the facilities shall result in the orderly shutdown of the
pumping operations, and will activate the shut off valves in a manner which will minimize
environmental damage.
C-22 Update of Operational Risk Assessment
Upon City request, Operator shall fund the updating of the operational risk assessment
subject to ministerial permitting, as needed, so that any surrounding land use proposals are
aware of existing risk, if any.
D. FACILITY DESIGN
D-1 Submittal of As Built Drawings
Within one year after initial start-up of the E&B Project (Phase 1), and again within one year
of commencement of Phase 2 op erations, Operator shall submit as-built drawings of the
Exhibit D-2
entire facility(s) to City. Any facility modifications required for Phase 3 operations shall
also be documented on facility as-built drawings within one year of their construction.
Operator shall submit as many sets of drawings (up to ten sets) as requested by the
Community Development Department.
D-2 Solid Waste Disposal
Solid waste generated on the site shall be collected by the City’s franchised commercial trash
hauler. Construction waste shall be transported by E&B’s own efforts to a facility authorized
to accept construction waste in accordance with the provisions of the Hermosa Beach
Municipal Code. Hazardous waste shall be transported by E&B’s own efforts to a facility
authorized to accept hazardous waste in accordance with all local, state and federal laws.
D-3 Water Conservation Measures
The design of all new and/or modified onsite facilities shall incorporate the use of cost-
effective water-conserving fixtures, including by way of example indoor and outdoor
plumbing fixtures and irrigation.
D-4 Energy Conservation Measures
Throughout the project life, as equipment is added or replaced, cost-effective energy
conservation techniques shall be incorporated into project design, including by way of
example indoor and outdoor lighting, HVAC, drill equipment, vehicles, and microturbines.
E. ABANDONMENT
E-1 Abandonment Procedures
In implementing Section 26 of the Lease and Article VII of the Hermosa Beach Municipal
Code - Oil Code Chapter 21A, Operator shall secure all necessary permits and proceed in
accordance with a City Council approved abandonment and restoration plan within one year
of permanent shut down. The abandonment plan shall be processed with environmental
review of the plan. Operator shall post a performance bond, or other security device
Exhibit D-2
acceptable to City Council, prior to commencement of Phase 1 construction for estimated
costs of abandoning Phase 1 facilities. Operator shall also post a performance bond, or other
security device acceptable to City Council, prior to commencement of Phase 2 for estimated
costs of abandoning Phase 2 facilities.
E-2. Abandonment Costs
All costs associated with abandonment or removal shall be borne by Operator.
E-3. Wellsites
Prior to permanent shutdown or termination of this agreement or the lease, any well drilled
by Operator shall be plugged and abandoned within three months from the date it is
determined that such well is no longer capable of production, subject to weather and rig
availability, and capped, in accordance with the rules and regulations of the State Division of
Oil, Gas & Geothermal Resources. Thereafter, the wellsite shall be restored as near as
practicable to its original condition.
F. Miscellaneous Conditions
F-1. Hydraulic Fracturing Prohibited
The use of hydraulic fracturing as a well stimulation technique for enhanced hydrocarbon
production shall be prohibited on the project site.
F-2. Pipelines
All pipelines installed for the Project shall not go below the depth authorized by the State
Division of Oil, Gas & Geothermal Resources. After completion of the construction of any
such pipelines, Operator shall restore the surface of the area impacted by the construction of
such pipeline as nearly as practicable to its condition immediately prior to such construction.
F-4. Fire Marshal Position
Operator shall fund a full-time dedicated Fire Marshal position for the Hermosa Beach Fire
Department for the full Term of the Development Agreement.
Exhibit D-2
F-5. Training
Operator shall pay for annual training for Hermosa Beach Fire Department personnel and fire
personnel from the City’s automatic aide partners on fighting oil fires.
F-6. Odor (from HIA)
In the event of frequent reports of odor emanating from the site, Operator shall pay for
additional studies and/or periodic air monitoring. If the studies or monitoring indicate that
additional control measures should be implemented to reduce the frequency of noticeable
odors, Operator shall include those measures as project conditions.
F-7. Notice (from HIA)
During Phase 3 pipeline construction, Operator shall provide written notification of
impending construction activities, including the dates and times of activities that may
produce excessive noise, to all residents within 100 feet of the construction activities. Notice
shall be provided no less than 72 hours before construction begins.
F-8. Light impact reduction (from HIA)
Operator shall pay for or provide black-out blinds or curtains for bedrooms with direct line-
of-sight to the exposed side of the electric drill rig that will be lit at night. The amount of
payment or the brand of blinds/curtains shall be pre-approved by the City Manager, and may
be provided through a direct mail program.
F-9. Community Relations (from HIA)
As recommended in Intrinsik’s Health Impact Assessment for the project, and at the City
Council’s discretion, the Operator may be required to pay for the costs associated with (1)
organizing a Community Liaison Committee; (2) a follow-up Community Health
Assessment; and/or (3) a quality of life health survey.
Exhibit D-2
[Continue to following page for Mitigation Measures]
Exhibit D-3
EXHIBIT “D-3”
Mitigation Measures/Mitigation Monitoring Plan from Section 8.0 of FEIR
(as revised at Hermosa Beach City Council certification hearing on July 8, 2014 per
Resolution 14-6908).
8.0 Summary of Mitigation Measures and Mitigation Monitoring Plan
8.1 Mitigation Monitoring Program
As the Lead Agency under the California Environmental Quality Act (CEQA), the City of
Hermosa Beach (City) is required to adopt a program for reporting or monitoring regarding the
implementation of mitigation measures for this Project, if it is approved, to ensure that the
adopted mitigation measures are implemented as defined in this Environmental Impact Report
(EIR). This Lead Agency responsibility originates in Public Resources Code Section 21081.6(a)
(Findings) and the CEQA Guidelines Sections 15091(d) (Findings) and 15097 ( Mitigation
Monitoring or Reporting).
8.2 Monitoring Authority and Enforcement Responsibility
The purpose of a Mitigation Monitoring, Compliance, and Reporting Program (MMCRP) is to
ensure that measures adopted to mitigate or avoid significant impacts are implemented. A
MMCRP can be a working guide to facilitate not only the implementation of mitigation measures
by the Project proponent, but also the monitoring, compliance, and reporting activities of the
City and any monitors it may designate.
The City may delegate duties and responsibilities for monitoring to other environmental monitors
or consultants as deemed necessary, and some monitoring responsibilities may be assumed by
responsible agencies, such as affected jurisdictions and cities. The number of monitors assigned
to the Project will depend on the number of concurrent activities and their locations. The City or
its designee(s), however, will ensure that each person delegated any duties or responsibilities is
qualified to monitor compliance.
Any mitigation measure study or plan that requires the approval of the City must allow at least
60 days for adequate review time. When a mitigation measure requires that a mitigation program
Exhibit D-3
be developed during the design phase of the Project, the Applicant must submit the final program
to City for review and approval for at least 60 days before any activity begins. Other agencies
and jurisdictions may require additional review time. It is the responsibility of the environmental
monitor assigned to the Project to ensure that appropriate agency reviews and approvals are
obtained.
The City or its designee will also ensure that any deviation from the procedures identified under
the monitoring program is approved by the City. Any deviation and its correction shall be
reported immediately to the City or its designee by the environmental monitor assigned to the
Project.
The City is responsible for enforcing the procedures adopted for monitoring through the environ-
mental monitor assigned to the Project. Any assigned environmental monitor shall note
problems with monitoring, notify appropriate agencies or individuals about any problems, and
report the problems to the City or its designee.
8.3 Mitigation Compliance Responsibility
The Applicant is responsible for successfully implementing all the mitigation measures in the
MMCRP, and is responsible for assuring that these requirements are met by all of its contractors
and field personnel. Standards for successful mitigation also are implicit in many mitigation
measures that include such requirements as obtaining permits or avoiding a specific impact
entirely. Other mitigation measures include detailed success criteria. Additional mitigation
success thresholds will be established by applicable agencies with jurisdiction through the permit
process and through the review and approval of specific plans for the implementation of
mitigation measures.
8.4 General Monitoring Procedures
Environmental Monitors. T he City and the environmental monitor(s) are responsible for
integrating the mitigation monitoring procedures into the construction or operation process in
coordination with the Applicant. To oversee the monitoring procedures and to ensure success,
the environmental monitor assigned to the Project must be on site during that portion of the
construction or operation that has the potential to create a significant environmental impact or
other impact for which mitigation is required. The environmental monitor is responsible for
ensuring that all procedures specified in the monitoring program are followed.
Exhibit D-3
Construction and Operations Personnel. A key feature contributing to the success of mitigation
monitoring will be obtaining the full cooperation of construction and operations personnel and
supervisors. Many of the mitigation measures require action on the part of the supervisors or
crews for successful implementation. T o ensure success, the following actions, detailed in
specific mitigation measures, will be taken:
• Procedures to be followed by construction or operations companies hired to do the work
will be written into contracts between the Applicant and any contractors. Procedures to
be followed by construction and operations crews will be written into a s eparate
document that all personnel will be asked to sign, denoting agreement.
• One or more meetings will be held to inform all and train personnel about the
requirements of the monitoring program.
• A written summary of mitigation monitoring procedures will be provided to supervisors
for all mitigation measures requiring their attention.
General Reporting Procedures. Site visits and specified monitoring procedures performed by
other individuals will be reported to the environmental monitor. A monitoring record form will
be submitted to the environmental monitor by the individual conducting the visit or procedure so
that details of the visit can be recorded and progress tracked by the environmental monitor. A
checklist will be developed and maintained by the environmental monitor to track all procedures
required for each mitigation measure and to ensure that the timing specified for the procedures is
adhered to. T he environmental monitor will note any problems that may occur and take
appropriate action to rectify the problems.
Public Access to Records. The public is allowed access to records and reports used to track the
monitoring program. Monitoring records and reports will be made available for public
inspection by the City or its designee on request.
8.5 Mitigation Monitoring Table
The Tables below present a summary of monitoring and reporting plan requirements for the
mitigation measures identified in Chapter 4 of the EIR as applicable to the Proposed Project.
The Table provides the following information, by column:
• Mitigation Measure (description of the mitigation measure identified in Chapter 4);
• Monitoring/Plan Requirements (monitoring or plan requirements necessary to verify
compliance with the mitigation measure);
Exhibit D-3
• Method of Verification (this is how the responsible agency can determine if the
mitigation measure has been implemented);
• Timing (this identifies when action needs to be taken on mitigation measure); and
• Responsible Agency (this is the agency that is responsible for assuring compliance with
the mitigation measure).
Exhibit D-3
Table 8-1 Aesthetics and Visual Resources
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
EM-1 Prior to issuance of the first grading and/or construction permits, the Applicant
shall enter into agreements with the City to provide funding for the
implementation and administration of an environmental monitoring program,
including an environmental monitor, to ensure compliance with each Agency’s
environmental Conditions of Approval. The monitor shall assist the Agencies in
condition compliance and mitigation monitoring for all applicable construction
and operational stages of the Oil Project, as specified in a scope of work, as
approved by the Agencies.
The monitoring program shall include a post‐construction program to monitor
measures that extend beyond the construction period (e.g., success of
landscaping, etc.), as well as monitor certain mitigation measures required
during the operational phase.
The monitor will prepare a working monitoring plan that reflects the Agencies ‐
approved environmental mitigation measures/conditions of approval. This plan
will include:
1. Goals, responsibilities, authorities, and procedures for verifying
compliance with environmental mitigations;
2. Lines of communication and reporting methods;
3. Daily and weekly reporting of compliance;
Conditions
included within
the
Development
Agreement,
including
administrative
measures to
ensure
bonding,
payment
methods and
insurance
Before the
start of Phase
1
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
4. Construction crew training regarding environmental sensitivities;
5. Authority to stop work; and
6. Action to be taken in the event of non‐compliance.
The environmental monitor shall be under contract to the Agencies. Costs of
the monitor, monitoring program, and any Agency administrative fees, shall be
paid by the Applicant.
The Applicant shall also be responsible for funding work required by permit
conditions requiring use of individuals with special expertise (e.g., geologist,
noise engineer, etc.). The Agencies’ environmental monitor will coordinate the
monitoring efforts of the specialist, including communication with the Agencies,
reporting and availability (at appropriate times: prior to issuance of construction
permits, or during construction, as required by applicable permit conditions).
AE-1a Material choice of electrical drill rig acoustical shroud shall be of neutral sky
color which is selected for its ability to reduce visual impact, in coordination
with and approval by the City Community Development Director.
Approval of
Construction
Documents and
Specifications
and field-
demonstration
Prior to
issuance of
permits
City of
Hermosa
Beach
AE-1b The sound attenuation wall shall be replaced by a permanent wall with design
features installed at the end of Phase 3. The intent is to provide stability of
Approval of
Construction
Prior to
issuance of
City of
Hermosa
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
views and opportunities for positive visual elements that partially mitigate the
visual presence of the walls from the Hermosa Greenbelt and other sensitive
views in the immediate Project vicinity. The permanent wall shall be allowed to
be provided in lieu of the 16-foot block wall. Landscape design shall be
allowed to be adjusted to respond to façade articulations, though quantities and
densities shall be maintained. The permanent wall shall be designed with
architectural features in coordination with and approval of the City Community
Development Director.
Documents and
Specifications
and Inspection
permits and
during
construction
Beach
AE-2a Design of the sound attenuation wall exterior façade shall be required to
include design articulations that are complementary to the character, scale, and
quality of the surrounding environment. The intent is to mitigate the visual
impact of the wall from the Hermosa Greenbelt and other sensitive views in the
immediate project vicinity. The following measures of success shall be met: 1)
Articulations of façade decrease scale and proportion of mass into smaller
increments that more closely resemble those of adjacent buildings; and 2)
Colors, detailing and material use are varied to a level consistent with existing
visual environment.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-2b Planting area growth medium shall be capable of supporting the long term
health and growth of the landscape design. Requirements shall be: 1)
Demonstrated free of debris and construction waste (asphalt, concrete, etc) to
a minimum depth of 3 feet within all planted areas. Wall footings shall be
Approval of
Construction
Documents and
Specifications
Prior to
issuance of
permits and
during
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
designed to limit encroachment into planted areas; 2) Soils analysis report shall
be conducted by a certified soil scientist. Report shall include
recommendations to meet the intent of this mitigation measure; and 3) If soils
are determined to be unsuitable to support plant growth, they shall be amended
or removed/replaced to meet requirements of soils analysis for plant pallette
selected.
and Inspection construction
AE-2c Vine plantings where used shall meet the following conditions: 1) be self-
attaching or structure supported; 2) have demonstrated success in the City; 3)
be planted at a density to achieve full coverage at maturity; 4) be planted at a
minimum 5 gallon size; and 5) be required on the visible portion of the west
wall at the temporary parking facility.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-2d All trees shall be required to be a minimum of 20’ in height at installation and
meet the American Standard for Nursery Stock (ANSI Z60.1-2004). If a tree
species alternate is proposed, it shall be required to be an equal to the species
proposed in the Project Application in the following characteristics: 1) Dense
evergreen with similar form and habit; 2) Probability of achieving a minimum of
35-40 feet at maturity; and 3) Comply with Municipal Code Chapter 8.60 and
8.56.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-3a Pipeline alignments and valve box locations shall be designed to avoid the
removal or modification of trees, hedgerows, and/or large shrubs to the extent
Approval of
Construction
Documents and
Prior to
issuance of
permits and
Cities of
Hermosa
Beach,
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
feasible. Specifications
and Inspection
during
construction
Redondo
Beach, and
Torrance
AE-3b If landscaped areas, streetscapes, plazas and/or parklands are required to be
temporarily disturbed, they shall be restored to their previous condition
following completion of construction. Avoidance of disturbance shall be the
preferred option, especially where landscape elements act to screen views
(hedges, large shrubs, etc) or where they act as community gateways
(Redondo Beach at Hwy-1).
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
Cities of
Hermosa
Beach,
Redondo
Beach and
Torrance
AE-3c Block color/s selection and pattern (if applicable) shall be complementary to
adjacent buildings. A buffer of shrubs and vines shall be planted to match the
existing character and quality of the adjacent properties.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
Cities of
Hermosa
Beach,
Redondo
Beach and
Torrance
AE-4a Final acoustical cover material selection shall be required to be fully opaque.
Fully opaque shall be defined as completely blocking all light from passing
through its surface. The exterior finish shall be low reflectivity and not capable
of producing glare.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
AE-4b Colors and finishes of equipment and surfaces within the soundwall (including
the interior face of the soundwall, the interior face of the drill rig acoustical
cover, and the physical structure of the drill rig within the acoustical shield)
shall have a reflectivity rating of 0.3 or lower.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-4c All proposed site lighting fixtures associated with the drilling activities shall
demonstrate compliance with the mandatory B-U-G ratings for area lighting as
required by CalGreen mandatory measures in the 7/1/2012 supplement. The
Lighting Zone used to demonstrate compliance shall be LZ-2.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-5a Colors and finishes of surfaces within the facility, including the interior face of
the soundwall, ground materials (darker or asphalt), wall paints and equipment
paints to the extent feasible shall have a low reflectivity rating of 0.3 or lower to
reduce the potential for glow.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-5b Final sound wall material/s selection/s (including gates) shall be fully opaque.
Fully opaque shall be defined as completely blocking all light from passing
through its surface. The exterior finish shall be low reflectivity and not capable
of producing glare.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
AE-5c All proposed site lighting, including fixtures outside the wall, shall be fully
shielded. Fully shielded shall be defined as: A luminaire constructed and
installed in such a manner that all light emitted by the luminaire, either directly
from the lamp or a diffusing element, or indirectly by reflection or refraction
from any part of the luminaire, is projected below the horizontal plane through
the luminaire’s lowest light-emitting part (IES/IDA, 2011)
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-5d The LZ-2 parameters of the Model Lighting Ordinance (IES/IDA, 2011) shall be
used to demonstrate that maximum vertical illuminance for the site are not
exceeded. For site lighting inside the wall, Table B allowances shall be used.
Lighting outside the wall at site entrances shall not exceed that of existing
street lighting, which produces a maximum of 1 footcandle. For the purposes
of measuring vertical illumination, the plane of the property line shall be
extended to an elevation equal to the height of the electric drilling rig.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-5e All proposed site lighting fixtures shall demonstrate compliance with the
mandatory B-U-G ratings for area lighting as required by CalGreen mandatory
measures in the 7/1/2012 supplement. The Lighting Zone used to demonstrate
compliance shall be LZ-2.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
City of
Hermosa
Beach
AE-6a Any proposed metering station site lighting shall be fully shielded and shall
incorporate permanent features (shields, hoods, etc.) shall incorporate
Approval of
Construction
Prior to
issuance of
City of
Redondo
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
permanent features which prevent light spillage beyond the property line. Documents and
Specifications
and Inspection
permits and
during
construction
Beach
AE-6b Light levels and quantities of fixtures shall not exceed that which is needed for
security and safety.
Approval of
Construction
Documents and
Specifications
and Inspection
Prior to
issuance of
permits and
during
construction
Cities of
Redondo
Beach and
Torrance
Table 8-2 Air Quality and GHG’s
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
AQ-1a The Applicant shall submit and implement a Fugitive Dust Control Plan that
includes SCAQMD mitigations for fugitive dust mitigation, according to Rule
403, and SCAQMD CEQA Guidelines. Fugitive dust mitigation measures in the
plan shall include the following (this mitigation is applicable to both the
Proposed Oil Project and the Proposed City Maintenance Yard Project):
Plan review,
site inspections
Before and
during
construction
Both Oil
Project and
SCAQMD
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
- Apply water every 3 hours to disturbed areas and unpaved roads within
a construction site (61 percent reduction).
- Require minimum soil moisture of 12 percent for earthmoving, by using
a moveable sprinkler system or water truck. Moisture content can be verified by
lab sample or moisture probe (69 percent reduction).
- Limit onsite vehicle speeds on unpaved roads to 15 mph and posting of
speed limits.
- All trucks hauling dirt, sand, soil, or other loose materials are to be
tarped with a fabric cover and maintain a freeboard height of 12 inches (91
percent reduction).
- Install gravel bed trackout apron (3 inches deep, 25 feet long, 12 feet
wide per lane, and edged by rock berm or row of stakes) to reduce mud and dirt
trackout from unpaved truck exit routes (46 to 80 percent reduction).
- Water storage piles by hand or apply cover when wind events are
declared, according to SCAQMD Rule 403 when instantaneous wind speeds
exceed 25 miles per hour (90 percent reduction).
- Appoint a construction relations officer to act as a community liaison
concerning onsite construction issues, such as dust generation.
City Yard
AQ-1b The Applicant shall implement a NOx reduction program including the following,
or equivalent, measures to the satisfaction of the SCAQMD (this mitigation is
applicable to both the Proposed Oil Project and the Proposed City Maintenance
Plan review,
site inspections
Before and
during
SCAQMD
City of
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Yard Project):
- All off-road construction equipment shall be tuned and maintained
according to manufacturers’ specifications.
- Any temporary electric power shall be obtained from the electrical grid,
rather than portable diesel or gasoline generators.
- All off-road diesel construction equipment with greater than 100-
horsepower engines shall meet Tier 3 NOx requirements.
- Limit onsite truck idling to less than 5 minutes.
- A copy of the certified tier specification, best available control
technology documentation, or the CARB or SCAQMD operating permit for each
piece of equipment shall be kept onsite during all operations.
construction Hermosa
Beach
AQ-3a The Applicant shall limit flaring during Phase 4 to a total of 5 hours per day at
the full flaring capacity (or to an equivalent volume of flared gas) during all
emergency or routine flaring events in order to ensure that NOx emissions are
reduced below the thresholds. Lower NOx emission combustors or other
equivalent measures can also be used to satisfy the requirement.
Plan review,
site inspections
Before Phase
4 operations
SCAQMD
City of
Hermosa
Beach
AQ-3b The Applicant shall implement methods to reduce the off-gassing of muds by at
least 90 percent through the installation of fully enclosed mud pit areas with
vapor control (either through carbon canisters or vapor recovery) and/or the use
of mud degassing units routed to vapor control systems. The Applicant shall
Plan review,
site inspections
Before Phase
2 and Phase 4
drilling
SCAQMD
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
monitor the muds vapor immediately above the muds exit point from the
wellbore and at other areas above the mud pits where muds may be exposed to
the atmosphere in order to ensure that hydrocarbon vapors are captured at the
minimum rate of 90 percent.
AQ-4 The Applicant shall limit the microturbine PM emissions to 0.0035 lbs/mmbtu, or
an equivalent reduction in the number and/or size of the microturbines, in order
to reduce emissions to below the localized thresholds. The City shall be
responsible for ensuring that the applicant will be subject to permit conditions
that limit emissions from the set of microturbines, not just individual permit units.
Plan review,
site inspections
Before Phase
4 operations
SCAQMD
City of
Hermosa
Beach
AQ-5a The Applicant shall at all times have a gas buster and SCAQMD-approved
portable flare at the site and connected for immediate use to circulate out and
combust any gas encountered during drilling. The flare shall be capable of
recording the volume of gas that is flared. The operator shall report any flared
gas from drilling to the Hermosa Beach Fire Chief and the SCAQMD.
Plan review,
site inspections
Before Phase
2 drilling
SCAQMD
City of
Hermosa
Beach
AQ-5b The Applicant shall install a compressor seal vent collection system. In the
event of a seal leak, vapors shall be collected and sent to the vapor recovery
system or flare for destruction.
Plan review,
site inspections
Before Phase
4 operations
SCAQMD
City of
Hermosa
Beach
AQ-5c The Applicant shall develop and implement an Odor Minimization Plan,
submitted to and approved by the City and the SCAQMD. The Odor
Plan review,
site inspections
Before Phase
2 and Phase 4
SCAQMD
City of
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Minimization Plan shall address reducing the frequency from potential sources
of odors from all site equipment, including wells and drilling operations,
temporary operations such as truck loading, and measures to reduce or
eliminate these odors (e.g., containment, design modifications, carbon
canisters). The Plan shall address issues such as facility information, buffer
zones, signs with contact information, logs of odor complaints, the protocol for
handling odor complaints and odor release investigations and methods
instituted to prevent a re-occurrence. The Plan shall require that all odor
complaints and issues be immediately communicated to the City and that the
City shall have the authority to implement and enforce contingency measures to
ensure that any nuisance odors from the facility are eliminated.
Drilling
operations
Hermosa
Beach
AQ-5d The Applicant shall develop and implement an Air Monitoring Plan. The Plan
shall provide for the monitoring of total hydrocarbon vapors and hydrogen
sulfide and total hydrocarbon vapors at all perimeter locations of the facility as
well as at strategic locations near processing equipment. At all times during
operations, drilling, redrilling and workover operations, the Operator shall
maintain monitoring equipment that shall monitor and digitally record the levels
of hydrogen sulfide and total hydrocarbon vapors. Such monitors shall provide
automatic alarms that are audible and visible to the Operator of the drilling
equipment, and gas plant, and shall be triggered by the detection of hydrogen
sulfide or total hydrocarbon vapors. Alarm points shall be set at a maximum of
Plan review,
site inspections
Before Phase
2 and Phase 4
Drilling
operations
SCAQMD
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
1 5 and 5 10 ppm H2S and 500 and 1,000 ppm hydrocarbons, with the higher
level requiring shut-down of drilling or plant operations and the lower level
requiring notification to appropriate agencies, including the Hermosa Beach Fire
Department and SCAQMD. A meteorological station to monitor wind speed and
direction under the guidance and specification of the SCAQMD shall be
installed at the site. The Air Monitoring Plan shall be reviewed and approved by
the City and the SCAQMD.
AQ-5e The Applicant shall use an odor suppressant spray system on the mud shaker
tables, and shall install carbon capture canisters on all tanks (permanent and
portable) that are not equipped with vapor recovery, containing potentially
odiferous materials (for example; the mud baker-type tanks) for all drilling
operations so that no odor can be detected at the closest receptor.
Plan review,
site inspections
Before Phase
2 and Phase 4
Drilling
operations
SCAQMD
City of
Hermosa
Beach
AQ-5f The fugitive component leak detection program under Rule 1173 shall utilize a
Leak Detection and Reporting (LDAR) level of monthly detections with an action
level of 100ppm, the installation of bellows valves where applicable (valves 2
inches or smaller) and the use of IR cameras or equivalent during monthly
detections to ensure that leaking components are minimized at the facility.
Plan review,
site inspections
Before Phase
2 operations
SCAQMD
City of
Hermosa
Beach
AQ-6 The Applicant shall provide credits for all GHG emissions generated above the
threshold of 10,000 MTCO2e per year. A GHG Reporting and Reduction Plan
shall be submitted to the SCAQMD and the City detailing the measures to be
implemented to achieve the required reductions, updated annually, and shall
Plan review,
site inspections
Before Phase
4 operations
SCAQMD
City of
Hermosa
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
include specifications on the protocol, vintage, and registry for any offsite
mitigation. The following mitigation credits shall not require prior City or
SCAQMD approval:
1. Credits generated within Los Angeles County per an approved SCAQMD
protocol;
2. Credits generated within the State of California per an approved SCAQMD
protocol;
3. Credits that are generated and verified under the CAPCOA GHG Rx
program;
4. Credits that are generated and verified under the voluntary SCAQMD
Regulation XXVII;
5. Verified credits registered with the Climate Action Reserve or the American
Carbon Registry.
In addition, independently verified GHG credits available through other carbon
registries that follow specific protocols may be eligible for offsite mitigation,
subject to review and prior approval by the City and the SCAQMD. The general
criteria for acceptable credits include:
• Real: emission reduction must have actually occurred, as the result of a
project yielding quantifiable and verifiable reductions or removals.
• Additional/Surplus: an emission reduction cannot be required by a law,
rule, or other requirement.
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
• Quantifiable: reductions must be quantifiable through tools or tests that
are reliable, based on applicable methodologies, and recorded with adequate
documentation.
• Verifiable: The action taken to produce credits can be audited and there
is sufficient evidence to show that the reduction occurred and was quantified
correctly.
• Enforceable: An enforcement mechanism must exist to ensure that the
reduction project is implemented correctly.
• Permanent: Emission reductions or removals must continue to occur for
the expected life of the reduction project.
Operational/drilling GHG emissions from stationary and mobile sources shall be
quantified and reported to the City and to the SCAQMD annually. Emissions
reporting will follow the same reporting format and procedures as required by
the Mandatory Reporting Rule.
AQ-7a All diesel equipment used at the site shall meet EPA Tier 3 emission
requirements and be equipped with a CARB Level 3 diesel particulate filter to
reduce Diesel PM emissions. Workover rigs operated at the project site shall
have cumulative total DPM emissions below 1.5 lbs/year or shall utilize electric
drive/sources .
Plan review,
site inspections
Before Phase
4 operations
SCAQMD
City of
Hermosa
Beach
AQ-7b Vapor recovery on crude oil tanks shall achieve a minimum of 99 percent Plan review, Before Phase SCAQMD
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
recovery of fugitive emissions. site inspections 4 operations City of
Hermosa
Beach
Table 8-3 Biological Resources
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
BIO-1 To minimize potential impacts to nesting native bird species, and in compliance
with the federal Migratory Bird Treaty Act and Sections 3503, 3503.5, or 3513 of
the California Fish and Wildlife Code, initial vegetation removal/trimming shall
be done outside the breeding season (breeding season is defined herein as
January 15 through August 31 for raptors and February 15 through August 31
for all non- raptor species). If vegetation removal/trimming must be completed
during this period, then surveys for nesting birds must be conducted by a
qualified, City-approved Biologist, within 3 days prior to vegetation removal or
other construction-related disturbances. If nesting birds are observed within the
project area, then a minimum 100-foot buffer from any non-raptor species and
500 foot buffer from any raptor nest would be established and maintained for
Plan review,
site inspections
Before and
during
construction
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
the duration of vegetation removal/trimming activities or until nestlings fledge
from the nest.
BIO-2 The Applicant shall submit for City approval and shall implement an Emergency
Response Plan that would, in compliance with the California State Oil Spill
Contingency Plan (CDFW, OSPR 2014),address protection of biological
resources and possible revegetation of any areas disturbed during an oil spill or
cleanup activities. The Emergency Response Plan shall, at a minimum, include
specific measures to avoid impacts to native vegetation and wildlife habitats,
plant and animal species, and environmentally sensitive habitat areas during
response and cleanup operations. The Emergency Response Plan shall include
provisions for containment and cleanup measures and responsibilities. The
plan shall contain:
• Definition of the authorities, responsibilities, and duties of all entities
involved in oil removal operations, and methods of emergency action agency
coordination during and after an oil spill;
• Agreements and statements from all resource agencies involved in an
oil response and removal operation;
• Procedures and frequencies for regular monitoring and inspections of
pipelines and facilities;
• Procedures for early detection and timely notification of an oil
discharge;
Plan review Before
construction
City of
Hermosa
Beach
OSPR
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
• A description of the necessary onsite equipment and details on the
placement of the material required to quickly control, contain, and remove any
discharged oil;
• Assurance that full resource capability is known and can be committed
following a discharge;
• A description of sensitive biological resources in the SMB that should
be prioritized for clean-up activities in the case of an oil spill into the marine
environment; • Actions for after discovery and notification of a discharge;
• Procedures to facilitate recovery of damages and enforcement
measures.
The Emergency Response Plan shall be approved by the California
Department of Fish and Wildlife (CDFW) Office of Spill Prevention and
Response (OSPR).
When habitat disturbance cannot be avoided, the Emergency
Response Action Plan shall provide stipulations for development and
implementation of site-specific habitat restoration plans and other site-specific
and species-specific measures appropriate for mitigating impacts to local
populations of special-status wildlife species and to restore native plant and
animal communities to pre-spill conditions. Access and egress points, staging
areas, and material stockpile areas that avoid specific habitat areas shall be
identified. The Emergency Response Action Plan shall include species- and
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
site-specific procedures for collection, transportation and treatment of oiled
wildlife.
The Emergency Response Plan shall be approved by the City prior to
commencing any construction activities.
____________________________________________________________________________________________________________
_________
Table 8-4 Cultural Resources
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
CR-1 Prior to beginning demolition of the existing City Maintenance Yard Building,
guidelines shall be developed for the careful exposure of extant elements of the
historic brick and mortar furnace. Once exposed, detailed documentation of the
furnace shall be undertaken. Documentation shall be guided by the Historic
American Engineering Record (HAER) standards. This documentation shall
include production of high quality 35-mm photographs and plan drawings of
building elements exposed, including but not limited to, a floor plan, any
character-defining building features, and elevation drawings.
Development
and
implementation
of a monitoring
and
documentation
plan by a
qualified
During
building
demolition
within areas of
recorded
historical
resources.
Project
Proponent
and
Construction
Contractor
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
All work carried out pursuant to the recordation of the furnace building shall be
conducted by, or under the direct supervision of a person or persons meeting,
at a minimum, the Secretary of the Interior’s Professional Qualifications
Standards (48 FR 44738-39 as revised in 1994) as an architectural historian. A
written report detailing the HAER-like documentation shall be provided to the
City upon completion the work. This report shall be produced on archivally
stable materials and filed with the Hermosa Beach Historical Society.
archaeologist.
CR-2a The design of the New City Maintenance Yard Building shall be compatible in
design, styling, material, and massing of the adjacent City Hall complex. The
building design should not attempt to replicate the New Formalist style, but it
shall not conflict or contrast with the existing building style. The buildings
constructed in the New City Maintenance Yard shall be no more than two
stories high. They shall not overpower or overshadow the existing building
complex.
Design of the
New City
Maintenance
Building and
landscape
Design Phase Project
Proponent
and City
CR-2b The landscaping associated with the proposed New City Maintenance Yard
shall replicate the planting types surrounding the City Civic buildings, to the
extent possible, in order to blend the new construction into the existing
Complex. The final design of both the new building and landscape should be
developed in consultation with an historic architect or architectural historian who
meets Secretary of the Interior’s Professional Qualifications Standards (48 FR
44738-39 as revised in 1994).
Design of the
New City
Maintenance
Building and
landscape
Design Phase Project
Proponent
and City
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
CR-3a
Prior to any ground-disturbing activities or building removal within the Proposed
Project sites, an Archaeological Monitoring Plan shall be developed by a
qualified archaeologist with provision for review and input by concerned Native
Americans and approval by the City. The Plan will also address worker safety
during building demolition and ground disturbing activities and during the
implementation of the Remedial Action Plan. The Plan is to include provisions
for archaeological and Native American monitoring, detailed documentation of
all early twentieth-century artifact-bearing deposits exposed during ground-
disturbing site work, and development of a clear collection policy for both
prehistoric and historic artifacts, subsequent artifact analysis, reporting of
findings, and disposition and/or curation of any significant artifacts recovered.
All reports of findings shall be filed with to SCCIC.
Development
and
implementation
of a monitoring
plan by a
qualified
archaeologist in
consultation
with concerned
Native
American
tribes.
The
monitoring
plan shall be
submitted for
review by the
City of
Hermosa
Beach and
approval prior
to beginning
development.
Plan shall be
implemented
prior to and
during
construction.
Project
Proponent
and
Construction
Contractor
CR-3b Any significant archaeological deposits remaining in the area of the previous
City of Hermosa Beach Dump following over-excavation at the Proposed Oil
Development Project site must be protected in place. Stabilization and covering
of these archaeological deposits shall be monitored by a qualified historical
archaeologist meeting the Secretary of the Interior’s Professional Qualifications
Following
construction
any remaining
archaeological
deposits must
Following
over-
excavation
Project
Proponent
and
Construction
Contractor
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Standards (48 FR 44738-39 as revised in 1994). be stabilized
and covered for
protection.
CR-4
Should Project-related excavations be designed to exceed 45 feet in depth at
the City Dump, or depths greater than 15 feet along the pipelines, or otherwise
be shown to have the potential to impact intact San Pedro Sand deposits as
described above, a Paleontological Resources Monitoring and Mitigation Plan
(PRMMP) shall be developed by a qualified paleontologist in consultation with
the City and implemented prior to or during Project-related ground disturbing
activities. The Plan will also address worker safety during building demolition
and ground disturbing activities and during the implementation of the Remedial
Action Plan.
A
paleontological
resource
monitoring and
mitigation
program
(PRMMP) for
treatment of the
paleontological
resources will
be developed
and
implemented.
The
monitoring
plan shall be
submitted for
review by the
City of
Hermosa
Beach and
approval prior
to beginning
development.
Plan shall be
implemented
prior to and/or
during
construction.
Project
Proponent
and
Construction
Contractor
CR-5 Ground-disturbing activities in the area of the discovery shall immediately be
halted or redirected. A temporary construction exclusion zone shall be
The Native
American
Upon
discovery of
Project
Proponent
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
established surrounding the site to allow for further examination and treatment
of the find. A City representative shall immediately notify the Los Angeles
County Coroner’s office by telephone. By law, the Coroner will determine within
two working days of being notified if the remains are subject to his or her
authority. If the Coroner recognizes the remains to be Native American, he or
she shall contact the Native American Heritage Commission who will appoint
the Most Likely Descendent (MLD). Additionally, if the remains are determined
to be Native American, a plan will be developed regarding the treatment of
human remains and associated burial objects and the plan will be implemented
under the direction of the MLD.
Heritage
Commission
(NAHC) must
be contacted
by the Los
Angeles
County
Coroner, and a
Most Likely
Descendant
must be
designated.
Any further
treatment of the
remains will
occur in
consultation
with the MLD,
the NAHC, and
a qualified
archaeologist.
human
remains.
and
Construction
Contractor
Exhibit D-3
__________________________________________________________________________________________________________
Table 8-5 Fire Protection and Emergency Response
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
FP-1a The Applicant shall ensure adequate (3,000-5,000 gpm) water supplies are
available from the existing water lines and hydrant system, by extending the 8
inch water main or some other source for water supplies that provides sufficient
water supply rates, pressure and duration to comply with codes, standards and
requirements of the LACFD and the HBFD. Installation of a fire pump, or
installation of a piping connection to area water mains that can supply the flows,
may be required to ensure the appropriate water flow and pressure
requirements. The Applicant shall ensure that all area hydrants and water
supplies are tested annually as to the NFPA standards for water flows and
pressures, and shall ensure that the results are reported to the City of Hermosa
Beach and the Hermosa Beach Fire Department.
Review of
water flow
calcs and tests,
annual reviews
Before Phase
2
City of
Hermosa
Beach
HBFD
FP-1b The Applicant shall coordinate with the HBFD to integrate a community alert
notification system for the proposed project into the City's existing alert system
to automatically notify area residences and businesses in the event of an
emergency at the project site that would require residents to take shelter or take
other protective actions. The Applicant shall implement programs to ensure
Review and
testing of
system
Before Phase
2
City of
Hermosa
Beach
HBFD
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
that all immediate neighbors are provide ample opportunity to participate in the
notification system.
FP-1c The Applicant shall fund an additional FTE position at the HBFD, or equivalent,
for personnel with specific capabilities in inspection and code compliance
associated with oil and gas production facilities. This arrangement shall be to
the satisfaction of the HBFD.
Training and
hiring
completed at
HBFD
Before Phase
2
City of
Hermosa
Beach
HBFD
FP-1d The Applicant shall develop emergency response plans addressing the facility's
fire-fighting capabilities pursuant to the most recent NFPA requirements, Los
Angeles County Fire Code, LACFD, California Code of Regulation, and API
requirements, in coordination with and to the satisfaction of the LACFD and the
City of Hermosa Beach Fire Department. These plans shall include, but not be
limited to, fire monitor placement, water capabilities, fire detection capabilities,
fire foam requirements, facility condition relating to fire-fighting ease and
prevention, and measures to reduce impacts to sensitive resources. The plan
should also address coordination with local emergency responders and area
schools and daycare facilities.
Review and
approval of
plans
Before Phase
2
City of
Hermosa
Beach
HBFD
FP-1e The Applicant shall ensure that the emergency response planning includes
development of evacuation plans of neighbors for an emergency scenario at the
facility,. The plan shall be reviewed by the LACFD, HBFD and the City annually
and updated as needed. The relevant portions of the plan shall be distributed
Review of plan
revision
Before Phase
2 and Phase 4
City of
Hermosa
Beach
HBFD
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
to the public utilizing a method determined by the reviewing Agencies.
FP-1f The Applicant shall ensure and make funding available to 1) upgrade the
dispatch system and procedures within Hermosa/Torrance/Redondo to
implement a CAD-to-CAD system to improve dispatch times; and 2) extend the
mutual aid agreements to become automatic aid agreements between the
Hermosa Beach Fire Department, Redondo Beach Fire Department and the
Torrance Fire Department and to include the Torrance HAZMAT unit, or provide
for funding to provide additional equipment and to train a sufficient number of
Hermosa Beach, Redondo Beach and/or Manhattan Beach Emergency
Response personnel to provide first response HAZMAT capabilities.
Review of
Mutual Aid
agreement
revision
Before Phase
2 and Phase 4
City of
Hermosa
Beach
HBFD
FP-1g The Applicant shall ensure, during Phase 2 and Phase 4, that the site shall
have sufficient water containment capabilities, as per guidance and approval of
the Fire Department. Area storm drains along 6th Street and Cypress Avenue
shall be equipped with flapper-type valves to enable the closure of the storm
drain system in the event of potential overflow.
Review of plan
and onsite
inspections
Before Phase
2 and Phase 4
City of
Hermosa
Beach
HBFD
FP-2a The Applicant shall ensure that design and construction comply with applicable
codes and standards for equipment spacing, particularly those related to flare
location and distances to public areas and distances from well drilling
equipment to buildings. If this cannot be achieved, additional requirements
shall include the construction of thermal radiation barriers or insulation on the
crude oil tanks, installation of thermal barriers/walls around the flare stack,
Third party
audit report
review
Before Phase
2 and Phase 4
City of
Hermosa
Beach
HBFD
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
increasing the height of the flare stack during drilling, relocation of the flare
stack, providing thermal radiation modeling to estimate the impacts of
equipment on the crude tanks and process piping and public areas and the
design and construction of blast walls as per API 752. Fire rated barriers shall
be established, as per LACFD requirements, to ensure that all buildings within
100 feet of well drilling would be protected from thermal radiation. Thermal
assessments shall be completed to ensure that the thermal radiation from the
flare is within acceptable levels (as per API RP 521) and does notproduce
damage to other equipment or nearby walls/soundwalls. The design and
construction compliance status shall be verified by third-party audits under the
direction of the City.
FP-2b Fire protection measures specific to the crude oil containment system shall be
provided, including the installation of manual fire foam systems with automatic
detection and notification (to both the operators and the HBFD) capable of
foaming in the perimeter of the crude oil containment system, wellhead area
and the area immediately adjacent to combustion or spark producing equipment
within or immediately adjacent to the crude oil containment area. The system
shall be capable of being remotely activated from a safe location in the event of
a crude oil fire. The highest level electrical classification achievable shall be
designated for all equipment located within the crude oil containment and
wellhead area.
Review of
design
documents
Before Phase
2 and Phase 4
City of
Hermosa
Beach
HBFD
Exhibit D-3
____________________________________________________________________________________________________________
_________
Table 8-6 Geological Resources/Soils
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
GEO-1a In coordination with the Caltech Seismological Laboratory, the Applicant shall
install an accelerometer at the Project Site to determine site-specific ground
accelerations as a result of any seismic event in the region (Los
Angeles/Orange County and offshore waters of the Santa Monica Bay and San
Pedro Channel). The drilling operator shall cease operations and inspect all
onsite oil field-related pipelines, storage tanks, and other infrastructure following
any seismic event that exceeds a ground acceleration at the Project Site of 13
percent of gravity (0.13 g). The drilling operator shall not reinstitute operations
at the Project Site and associated pipelines until it can be determined that all oil
field infrastructure is structurally sound.
Inspection by a
California
Registered Civil
Engineer
Following any
seismic event
that results in
substantial
ground
accelerations
at the Project
Site, as pre-
determined by
a California-
licensed
geotechnical
engineer.
City of
Hermosa
Beach
GEO-1b All seismic related recommendations provided by NMG Geotechnical (2012)
shall be incorporated into the Proposed Oil Project design. These measures
shall include, but not be limited to the following:
- Drilled-in-place piles or cast-in-drilled-hole piles shall be constructed for
Review and
approval of
geotechnical
report.
Approve
geotechnical
report prior to
issuance of
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
foundations in the landfill area, i.e., northeast Project Site, to reduce seismically
induced settlement.
- Ground improvement techniques, including high pressure grout injection, i.e.,
compaction grouting, shall be used in the landfill area to reduce seismically
induced settlement and allow construction of conventional shallow foundations.
- Seismic design criteria for horizontal and vertical accelerations, identified in
Tables 10 and 11 of the geotechnical report, shall be used during Proposed
Project design (including incorporation of updated seismic design criteria from
the 2013 California Building Code).
- During Phase 1, the upper 2 to 4 feet of soil in the vicinity of the proposed well
cellars shall be excavated and replaced with compacted fill. In addition, the
basement under the maintenance building shall be removed and filled in with
compacted fill. In addition, the basement under the maintenance building shall
be removed and filled in with compacted fill.
- During Phase 3, the eastern portion of the site shall be excavated
approximately 7 feet deeper than the majority of the proposed building pad, with
a minimum of 3 feet of overexcavation below design grades, and recompacted
to provide a uniform fill blanket below proposed tanks, compressors, and other
equipment.
- Asphalt pavement and underlying subgrade soils shall be designed to
accommodate the proposed drill rig.
grading
permit.
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Positive surface drainage shall be provided to direct runoff away from slopes
and structures and toward suitable drainage devices. Ponding of water on
structural pads shall not be allowed.
GEO-2a
Injection pressures associated wastewater injection shall not exceed reservoir
fracture pressures as specified in California Code of Regulations Title 14,
Division 2, Section 1724.10, and as approved by the California Division of Oil,
Gas, and Geothermal Resources..
Comparing
pressure
measurements
on each
injection well to
formation
fracture
pressure
During waste
water injection
operations
California
Division of Oil
and Gas and
Geothermal
Resources
(DOGGR)
and Hermosa
Beach Public
Works
Department
GEO-2b
In coordination with the Caltech Seismological Laboratory, the Applicant shall
install an accelerometer at the Project Site to determine site-specific ground
accelerations as a result of any seismic event in the region (Los
Angeles/Orange County and offshore waters of the Santa Monica Bay and San
Pedro Channel). Readings from the accelerometer shall be recorded at the Oil
Field and transmitted in real-time to the Caltech Seismological Laboratory. The
drilling operator shall cease operations and inspect all onsite oil field-related
pipelines, storage tanks, and other infrastructure following any seismic event
Monthly City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
that exceeds ground acceleration at the Project Site of 13 percent of gravity
(0.13 g). The drilling operator shall not reinstitute operations at the Project Site
and associated pipelines until it can be determined that all oil field infrastructure
is structurally sound.
GEO-2c In the event that monitoring indicates that Proposed Oil Project-induced
seismicity is occurring, wastewater injection operations shall be adjusted to
alleviate such seismicity. The drilling operator shall first receive approval from
the California Division of Oil, Gas, and Geothermal Resources prior to any
change (increase) in the injection operations.
Seismicity
monitoring
Following
monthly
monitoring, as
necessary
City of
Hermosa
Beach
GEO-3 All slope stability related recommendations provided by NMG Geotechnical
(2012) shall be incorporated into the Proposed Oil Project design. Temporary
excavations shall be stabilized per the latest edition of Cal/OSHA requirements
for loose sands, including shoring or laying back of trench walls. Shoring along
the northern perimeter of the Project Site shall be designed by an experienced
structural engineer due to the proximity to existing buildings that must be
protected from potential settlement and lateral movements.
Submit
temporary
shoring plans
and
calculations.
Prior to permit
issuance
City of
Hermosa
Beach
GEO-4a Prior to approval of the first Phase 4 drilling permit, the Applicant shall have
submitted and the City of Hermosa Beach and the California Coastal
Commission shall have approved a Subsidence Monitoring and Avoidance
Program, for both onshore and offshore areas. The onshore monitoring plan
shall be completed throughout the life of this project, in accordance with
Monitor
subsidence
with GPS
technology.
Prior to Phase
4 Annually
Hermosa
Beach Public
Works
Department
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Appendix A, Subsidence Monitoring Program, of the Subsidence and Induced
Seismicity Technical Report, E&B Oil Development Project (Geosyntec
Consultants 2012), included as Appendix _F of this EIR. The offshore
monitoring plan shall be completed throughout the life of this project in
accordance with the Offshore Subsidence Monitoring Program and Possible
Mitigation Measures, Hermosa Beach, California (Coastal Environments 1998),
included as Appendix _F of this EIR. The latter shall be updated, as applicable,
to reflect advances in science since 1998. In addition, Section 7.6, Mitigation of
Onshore Subsidence, of the latter report, shall not be applied to this mitigation
measure, as the onshore monitoring program would be completed in
accordance with the Geosyntec Consultants (2012) report.
GEO-4b The Subsidence Monitoring Program shall include:
Ground elevation survey methodologies with high vertical resolution; including
onshore surface elevations and offshore bathymetric elevations;
Prior to Phase 4 II drilling, establishment of a network of onshore and offshore
survey or subsidence monitoring locations, including continuous GPS stations,
GPS benchmarks, and tautly anchored offshore monitoring points, positioned
within the City, outside the City, and in offshore areas, that are sufficiently
spaced to draw conclusions about subsidence within the zone of influence of
the Project;
Monitor
subsidence
with GPS
technology.
Prior to Phase
4 Annually
Hermosa
Beach Public
Works
Department
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Because subsidence can occur for a variety of reasons, establishment of
control points outside the zone of influence to allow differentiation of possible
subsidence effects related to other activities;
Use of InSAR imagery technology to evaluate regional subsidence patterns
both within and beyond the proposed oil field;
Sufficient monitoring frequency to establish trends in subsidence in order to
distinguish background ground movement from any subsidence caused by
proposed oil field operations;
Reservoir monitoring, including documentation of produced fluid volume (oil,
gas and water) and reservoir pressures at similar frequency to ground elevation
measurements;
Reporting requirements; and
Action levels, as specified in the onshore and offshore subsidence monitoring
reports.
Surveying for both vertical and horizontal ground movement shall be completed
along the perimeter and throughout the interior of the oil field, including both
onshore and offshore areas, utilizing Global Positioning System technology in
combination with a network of ground stations. The onshore continuous
monitoring GPS stations shall include:
Hermosa Beach Pier. The pier will serve as the furthest offshore point in the
onshore monitoring program.
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Longfellow Outfall. This Outfall is larger and more structurally stable than some
of the other outfalls along the City’s coast.
King Harbor Jetty. This location was selected to achieve a distribution of
continuous monitoring points along the coast of Hermosa Beach. This will help
provide a limited regional picture of the subsidence between survey events.
GEO-4c An onshore and offshore baseline subsidence report shall be completed and
made available to the City of Hermosa Beach and the California Coastal
Commission at least two months and no more than six months prior to planned
commencement of Phase 4 II drilling operations. Subsidence monitoring
reports shall be completed annually and the results shall be forwarded to the
California Coastal Commission and the City of Hermosa Beach for review, no
more than one month following the end of each annual monitoring cycle. In
addition, results shall be forwarded to the adjoining City of Redondo Beach and
City of Manhattan Beach.
Coordinate with
Hermosa
Beach Public
Works
Department
At least two
months prior
to Phase 4 2
drilling
operations
Hermosa
Beach Public
Works
Department
GEO-4d In the event that the Global Position System monitoring indicates that significant
subsidence, as defined by the onshore and offshore subsidence monitoring
reports described in GEO-4a, is occurring in and/or around the Proposed
Project area, wastewater or water reinjection operations shall be increased to
alleviate such subsidence. The Applicant shall coordinate with the California
Division of Oil, Gas and Geothermal Resources, which will approve increased
levels of wastewater or water reinjection operations in accordance with the
Coordinate with
California
Division of Oil
and Gas and
Geothermal
Resources
(DOGGR)
Following
monitoring
results
indicating
subsidence
California
Division of Oil
and Gas and
Geothermal
Resources
(DOGGR)
and Hermosa
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
approved Subsidence Monitoring Program. The Applicant will also coordinate
with the City of Hermosa Beach, Public Works Department, to verify that
subsidence has been mitigated sufficiently. The Applicant will also coordinate
with the City of Hermosa Beach, Public Works Department, to verify that
subsidence has been mitigated sufficiently.
Beach Public
Works
Department
GEO-4e In the unlikely event that subsidence related mitigation induces seismicity,
corrective actions related to subsidence shall proceed until baseline surface
elevations have been achieved, as subsidence related damage would likely be
more pronounced in comparison to damage associated with Project related
micro-seismicity. Upon reestablishment of baseline elevations, drilling
operations shall cease until a balance between subsidence avoidance and
induced seismicity avoidance can be established, as agreed upon by the
California Division of Oil, Gas and Geothermal Resources, the California
Coastal Commission, and the City of Hermosa Beach.
Coordinate with
California
Division of Oil
and Gas and
Geothermal
Resources
(DOGGR)
Following
monitoring
results
indicating
subsidence
California
Division of Oil
and Gas and
Geothermal
Resources
(DOGGR)
and Hermosa
Beach Public
Works
Department
GEO-6
A Registered Civil Engineer shall analyze surficial and near-surface soils at the
Project Site subsequent to grading and prior to on-site construction, to
determine whether expansive soils are present. Similarly, soils at the Proposed
City Maintenance Yard Project Site and along the proposed pipeline route shall
be analyzed for soil expansion potential. In the event that clay-rich, expansive
soils are present, foundations shall be designed to accommodate expansive
Soil auger and
analytical
laboratory
Prior to final
design
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
soils and pipelines shall be placed within a blanket of non-expansive soils to
prevent structural damage and/or failure. Foundation and pipeline design shall
be reviewed and approved by a Registered Civil Engineer.
GEO-7a Proposed Oil Project design must conform to the recommendations of HDR
Schiff (2012), included within Appendix C in NMG Geotechnical (2012), or as
per the City Engineer, and should occur prior to completion of the final Project
design.
Design for
protection
against
corrosion
Prior to final
design
City of
Hermosa
Beach
GEO-7b All buried metal pipelines shall be coated and placed under impressed cathodic
protection. To monitor for internal corrosion, corrosion coupons or equivalent
measures can be utilized.
Under
impressed
cathodic
protection
Prior to final
design
City of
Hermosa
Beach
GEO-7c External pipe inspections shall be conducted for the exposed pipeline sections
to ensure atmospheric coatings are in good conditions. All external inspections
shall be documented and reviewed by the operations management and repairs
documented, when necessary.
Visual
inspections
Monthly City of
Hermosa
Beach
GEO-7d In accordance with California Division of Oil, Gas, and Geothermal Resources
pipeline regulations (Public Resources Code Sections 3013 and 3782), a
pipeline management plan shall be implemented for the Project Site. Similarly,
in accordance with United States Department of Transportation, Pipeline and
Hazardous Materials Safety Administration regulations, a pipeline management
Prepare under
guidance of
California
Department of
Conservation
Prior to final
design
California
Division of Oil
and Gas and
Geothermal
Resources
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
plan shall be implemented for proposed pipelines located beyond the perimeter
of the Project Site. These plans shall include, but not be limited to mechanical
testing, including ultrasonic and hydrostatic testing.
Division of Oil,
Gas, and
Geothermal
Resources and
United States
Department of
Transportation,
Pipeline and
Hazardous
Materials
Safety
Administration
(DOGGR),
United States
Department
of
Transporta-
tion, Pipeline
and
Hazardous
Materials
Safety
Administra-
tion, and
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
GEO-7e All concrete in contact with the high sulfate or corrosive soils shall be Type V
concrete in accordance with the 2010 California Building Code.
Pour proper
concrete
adjacent to
During
construction
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
corrosive soils
___________________________________________________________________________________________________________
Table 8-7 Safety, Risk of Upset and Hazards
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
SR-1a The Applicant shall cause to be prepared an independent third-party audit,
under the direction and supervision of the City, of the gas and crude oil plants
and pipelines, once constructed, including the well pads, to ensure compliance
with Fire Code, applicable API and NFPA codes, EPA RMP, OSHA PSM,
DOGGR and SPCC and emergency response plans requirements. All audit
items shall be implemented in a timely fashion, and the audit shall be updated
annually, as directed by the City and the Los Angeles County Fire Departments.
The final installation of the facilities shall include a seismic assessment,
including walkthroughs, of equipment to withstand earthquakes prepared by a
registered Structural Engineer in compliance with Local Emergency Planning
Committee Region 1 CalARP guidance and the seismic assessment shall be
updated, with walkthrough inspections, annually to ensure compliance with the
codes and standards at the time of installation.
Review of audit
reports
Before Phase
4 operations
and annually
thereafter
LACFD
HBFD
Cities of
Redondo
Beach and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
SR-1b The Applicant shall ensure that the crude oil spill containment areas shall be
designed as Class I Division I areas according to NFPA and NEC, or that spark
producing equipment (such as the flare) would be isolated from the containment
area, in order to reduce the potential for crude oil fires. The refrigeration
system shall utilize non-flammable refrigerant.
Review of
design
documents
Before Phase
3 construction
City of
Hermosa
Beach
HBFD
Cities of
Redondo
Beach and
Torrance
SR-1c The Applicant shall ensure that all crude-oil truck haulers and a sufficient
number of onsite personnel (at least two per shift) are trained in HAZMAT (to
the HAZWOPER technician level at least) spill response and that each truck
carries a spill response kit.
Site
inspections,
review of
contracts
Before Phase
2 drilling
City of
Hermosa
Beach
HBFD
Cities of
Redondo
Beach and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
SR-1d The Applicant shall install automatic valves on the gas pipeline that will
automatically shut down under a low pressure scenario at the Processing
Facility Area for all pipelines leaving the processing plant, and shall install a
backflow prevention device at the main gas pipeline tie-in location, to prevent
the release of gas from the main transmission pipeline in the event of a rupture
in the gas pipeline. The second, return pipeline shall remain isolated from the
main gas pipeline during normal operations.
Review of
design
documents
Before Phase
3 construction
City of
Hermosa
Beach
HBFD
Cities of
Redondo
Beach and
Torrance
SR-1e The Applicant shall ensure that warning tape is installed above the pipelines
within the pipeline trench to warn third parties that pipelines are located below
the warning tape and that the pipelines are capable of utilizing a smartpig.
Review of
design
documents
Before Phase
3 construction
City of
Hermosa
Beach
HBFD
Cities of
Redondo
Beach and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
SR-1f The odorant system shall have its own, smaller containment area around it
limiting the spilled pool size to the minimum size attainable, in order to prevent
any offsite impacts. Transfer of odorant shall utilize carbon canisters and a
canister change-out/maintenance program to ensure that filling of odorant tanks
do not cause offsite impacts.
Review of
design
documents
Before Phase
3 construction
City of
Hermosa
Beach
HBFD
SR-1g The comingled produced gas shall be continuously monitored for hydrogen
sulfide. If H2S levels in the produced gas from any individual well exceeds 100
ppm, then that well shall be shut in and abandoned as per DOGGR
requirements. Wells shall be tested when fluids first flow, when the well is
placed into production and periodically thereafter in order to ensure that all
wells operate below 100 ppm H2S.
Review of
design
documents and
in-field
inspections
Before Phase
2 drilling
City of
Hermosa
Beach
HBFD
Cities of
Redondo
Beach and
Torrance
SR-2 The Applicant shall sample soil during Phase 1 grading to ensure that soil lead
contamination levels are below 9,500 mg/kg and that soil contaminated with
TPH are below the regulatory guidelines. If soils are encountered above these
levels, then those soils shall be removed from the site and transported to a
disposal site. This may necessitate implementing the RAP during Phase 1 if
substantial amounts of contamination are encountered.
Review of
design
documents and
in-field
inspections
Phase 1 City of
Hermosa
Beach
Exhibit D-3
____________________________________________________________________________________________________________
_________
Table 8-8 Hydrology and Water Quality
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
HWQ-2a The Applicant shall properly maintain the associated crude oil pipelines, storage
tanks, and processing facilities within and outside the Project Site, including
smart-pigging according to State of California Office of the State Fire Marshal
requirements and the standards outlined by the Department of Oil, Gas and
Geothermal Resources, and the Los Angeles Regional Water Quality Control
Board. The Applicant shall visually inspect onsite storage tank and processing
equipment at least daily and provide a visual inspection of the crude oil pipeline
right-of-way inspections on a weekly basis.
Review of
maintenance
reports
Before Phase
4 operations
Annually
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
HWQ-2b The Applicant shall install a leak detection system for crude pipelines to the
Exxon Mobil Refinery transfer of custody location. The system shall include
pressure and flow meters, flow balancing, supervisor control and data
acquisition system, and a computer alarm system in the event of a suspected
leak. Temperature, pressure, and flow shall be monitored at each pipeline entry
and exit. If any variable deviates by more than 10 percent of the normal
operating range, the system shall trigger both audible and visual alarms. Flow
balancing shall be conducted every 5 minutes, 1 hour, 24 hours, and 48 hours
with the accuracy defined once the system is established and tested.
Review of
system design
and testing
results
Before Phase
4 operations
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
HWQ-2c Personnel at the site shall be trained in equipment use and containment and
cleanup of an oil spill. Dry cleanup methods, such as absorbents, shall be used
on paved and impermeable surfaces and shall be included in a spill trailer
maintained onsite. Spills in dirt areas shall be immediately contained with an
earthen dike and the contaminated soil shall be dug up and discarded in
accordance with local and state regulations.
Review of
training and
equipment
Before Phase
2 and Phase 4
operations
and
intermittently
thereafter
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
HWQ-2d
Oil spills shall be contained and cleaned according to measures outlined in the
then-current California Stormwater Quality Association Best Management
Practice Handbook.
Review of
training and
incident reports
Before Phase
2 and Phase 4
operations,
and
intermittently
thereafter
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
HWQ-2e A United States Environmental Protection Agency, Spill Prevention, Control,
and Countermeasure Plan, approved by the City of Hermosa Beach Fire
Department, shall be implemented in the event of a spill. The Plan, which shall
include a spill response trailer, equipment, and personnel training shall be
completed prior to Phase 2 and Phase 4, and in compliance with the California
State Oil Spill Contingency Plan (California Department of Fish and Game,
Office of Spill Prevention and Response 2010) and the Los Angeles/Long
Beach Oil Spill Contingency Plan (California Department of Fish and Wildlife
2011). Spill cleanup shall be completed under the oversight of the lead
regulatory agency, with respect to oil spills, as identified in the Spill Prevention,
Control, and Countermeasure Plan.
Review of
reports
Before Phase
2 and Phase 4
operations
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
HWQ-2f The well cellar shall be lined with an impermeable membrane to prevent oil-
based substances from seeping into groundwater supplies. All drilling muds
storage shall be contained within Baker-type enclosed tanks, which shall be
sized to accommodate high intensity rainfall events without overtopping.
Review of
design
documents,
field inspection
Before Phase
2 and Phase 4
operations
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
HWQ-2g
The Applicant shall install a check valve in the crude oil pipeline at the Herondo
and Valley drive where the crude oil pipeline turns eastward and starts uphill.
Review of
design
documents,
field inspection
Before Phase
4 operations
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
HWQ-2h The Applicant shall fund and install, under the direction of the Hermosa Beach
Public Works Department, an oil/grit separators or oil/water separator located
along Herondo Street downstream of Valley Drive, in order to capture small to
medium sized spills before they reach the ocean. Installation and maintenance
costs shall be provided by the Applicant and the devices shall be inspected by
the Applicant to ensure that the "trap" is operational before any storm events.
Review of
design
documents,
field inspection
Before Phase
4 operations,
and
intermittently
thereafter
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
HWQ-2i The Applicant shall utilize a smaller 6" ERW pipe and a heat and impact
resistant coating at a minimum comparable to a 3-layer fusion bonded epoxy
(such as BrederoShaw 3LPP) and weld coverings equivalent to sleeves with
epoxy primer. Specification of the pipe and coating shall approved by the City.
Review of
design
documents,
field inspection
Before Phase
4 operations
City of
Hermosa
Beach,
CSFM
HWQ-2j The Applicant shall install a 3 sack slurry starting 6 inches above the pipe to the
base of the pavement or ground surface and lay strips of warning tape over the
top to prevent third-party damage.
Review of
design
documents,
field inspection
Before Phase
4 operations
City of
Hermosa
Beach
Exhibit D-3
Exhibit D-3
Table 8-9 Noise and Vibration
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-1a Increase the height of the noise barrier on all sides of the site to 24-feet (24-feet
is the maximum feasible height for a noise barrier during Phase 1). Minimum
sound insulation performance of the barrier shall remain at STC-25.
Review of
design
documents and
in-field
inspections
Before Phase
1
City of
Hermosa
Beach
NV-1b The gates on the east and south sides of the site shall be 24-feet high,
consistent with the height of the acoustical barrier around the perimeter of the
site. The gates shall have no holes or gaps in them and shall be designed to
deliver a minimum sound insulation performance of STC-25.
Review of
design
documents and
in-field
inspections
Before Phase
1
City of
Hermosa
Beach
NV-1c All acoustical barriers around the site shall offer the following minimum sound
absorption performance: Center Frequency (Hz), 125, 250, 500, 1k, 2k, 4k -
Sound Absorption Coefficient, 0.49, 0.72, 0.74, 0.29, 0.21, 0.14.
Review of
design
documents and
in-field
inspections
Before Phase
1
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-2a Increase the height of the noise barriers on all sides of the site from 32-feet to
35-feet (35-feet is the maximum height allowed). Minimum sound insulation
performance of the barrier material should be STC-32.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2b The gates on the east and south sides of the site shall have no holes or gaps in
them and shall be designed to deliver a minimum STC of 32. Any gaps above
the gates must be closed off, by extending the acoustical barrier material from
the sides. The intent is to maintain the acoustical integrity of the STC-32 noise
barrier in all locations.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2c All acoustical barriers around the site shall offer the following minimum sound
absorption performance: Center Frequency (Hz), 125, 250, 500, 1k, 2k, 4k -
Sound Absorption Coefficient, 0.49, 0.72, 0.74, 0.29, 0.21, 0.14.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2d Install pads on the V-door and other appropriate areas, timbers and pads on the
drill deck, pads between drill and casing pipe while in storage and pad and
timbers at the boards on the mast to reduce metal-on-metal noise.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-2e Provide full acoustical enclosures around the mud pumps. The enclosures shall
be factory-assembled by a manufacturer with a proven track-record of building
noise-reducing enclosures for industrial applications. The total sound power
level radiated by the enclosure shall not exceed 77 dBA, including noise
contributions from: the access door(s), observation windows, ventilation
openings and ventilation fans (if required).
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2f Provide enhanced inlet and outlet silencers for the Hydraulic Power Unit
enclosure and upgrade the walls, roof and floor of the enclosure as necessary
to limit the total sound power level radiated by the enclosure to 77 dBA.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2g The acoustical shroud around the drilling mast shall be comprised of acoustical
blankets material with a minimum STC rating of 25. The acoustical blankets
material shall provide continuous coverage of three sides of the mast and shall
cover the uppermost 26-feet of the fourth side.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2h Provide acoustical treatment within the combustor fan housing and/or at the
ventilation openings, as necessary to limit the total sound power level radiated
by the housing (including contributions from the door and ventilation openings)
to 86 dBA.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-2i Eliminate use of the combustor during drilling in Phase 2 or prior to the initiation of
production occurring concurrent with drilling in Phase 2, acoustical treatment shall be
provided: within the combustor fan housing and/or ventilation openings, as necessary to
limit the total sound power level radiated by the housing (including contributions from the
door and ventilation openings) to 86 dBA; and to the combustor stack to limit the power
level radiated by the stack to 80 dBA..
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-2j During the drilling portion of Phase 2, implement a “Super-Quiet Mode” of
operation between the hours of 2AM and 5AM, during which time drilling would
essentially be suspended to minimize noise. Super-Quiet Mode would impose
the following additional measures and limitations: no pipe-handling of any kind
anywhere on the project site, shakers switched off, top drive and rig floor
completely enclosed on four sides by acoustical blankets material with a
minimum STC rating of 25, operation of the top drive limited to “exercising” the
pipe string only, top drive travel limited to the bottom half of the drilling rig mast.
Super-Quiet Mode shall be implemented from the outset of drilling work during
Phase 2; however, if monitoring shows consistently that noise emissions for
normal drilling operations (with mitigation measures NV2a through NV2i in
place) would result in less-than-significant impact during all or part of the period
between 2AM and 5AM, the Applicant may, at the discretion of the City, be
permitted to reduce the hours Super-Quiet Mode operations, or eliminate
Super-Quiet Mode altogether.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-3a Increase the height of the noise barriers on all sides of the site from 32-feet to
35-feet (35-feet is the maximum height allowed). Minimum sound insulation
performance of the barrier material should be STC-32.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-3b The gates on the east and south sides of the site shall have no holes or gaps in
them and shall be designed to deliver a minimum STC of 32. Any gaps above
the gates must be closed off, by extending the acoustical barrier material from
the sides. The intent is to maintain the acoustical integrity of the STC-32 noise
barrier in all locations.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-3c All acoustical barriers around the site shall offer the following minimum sound
absorption performance: Center Frequency (Hz), 125, 250, 500, 1k, 2k, 4k -
Sound Absorption Coefficient, 0.49, 0.72, 0.74, 0.29, 0.21, 0.14.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
NV-3d Provide acoustical treatment within the combuster fan housing and/or at the
ventilation openings, as necessary to limit the total sound power level radiated
by the housing (including contributions from the door and ventilation openings)
to 86 dBA.
Review of
design
documents and
in-field
inspections
Before Phase
2
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-4a Increase the height of the noise barrier on all sides of the site to 24-feet (24-feet
is the maximum feasible height for a noise barrier during Phase 3). Minimum
sound insulation performance of the barrier shall remain at STC-25.
Review of
design
documents and
in-field
inspections
Before Phase
3
City of
Hermosa
Beach
NV-4b The gates on the east and south sides of the site shall be 25-feet high,
consistent with the height of the acoustical barrier around the perimeter of the
site. The gates shall have no holes or gaps in them and shall be designed to
deliver a minimum sound insulation performance of STC-25.
Review of
design
documents and
in-field
inspections
Before Phase
3
City of
Hermosa
Beach
NV-4c All acoustical barriers around the site shall offer the following minimum sound
absorption performance: Center Frequency (Hz), 125, 250, 500, 1k, 2k, 4k -
Sound Absorption Coefficient, 0.49, 0.72, 0.74, 0.29, 0.21, 0.14.
Review of
design
documents and
in-field
inspections
Before Phase
3
City of
Hermosa
Beach
NV-6a Increase the height of the noise barriers on all sides of the site from 32-feet
to35-feet (35-feet is the maximum height allowed by zoning code). Minimum
sound insulation performance of the barrier material shall be STC-32.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-6b The gates on the east and south sides of the site shall have no holes or gaps in
them and shall be designed to deliver a minimum STC of 32. Any gaps above
the gates must be closed off, by extending the acoustical barrier material from
the sides. The intent is to maintain the acoustical integrity of the STC-32 noise
barrier in all locations.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
NV-6c All acoustical barriers around the site shall offer the following minimum sound
absorption performance: Center Frequency (Hz), 125, 250, 500, 1k, 2k, 4k -
Sound Absorption Coefficient, 0.49, 0.72, 0.74, 0.29, 0.21, 0.14. In the event
that a permanent 35-foot wall is built, the interior surfaces of the wall (i.e. those
facing inwards towards the drilling and production operations) shall be treated
with exterior grade acoustical panels offering equivalent sound absorption
performance to that specified in this Measure above a height of 10-feet from the
ground.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
NV-6d Install pads on the V-door and other appropriate areas, timbers and pads on the
drill deck, pads between drill and casing pipe while in storage and pad and
timbers at the boards on the mast to reduce metal-on-metal noise.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-6e Provide full acoustical enclosures around the mud pumps. The enclosures shall
be factory-assembled by a manufacturer with a proven track-record of building
noise-reducing enclosures for industrial applications. The total sound power
level radiated by the enclosure shall not exceed 77 dBA, including noise
contributions from: the access door(s), observation windows, ventilation
openings and ventilation fans (if required).
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
NV-6f Provide enhanced inlet and outlet silencers for the Hydraulic Power Unit
enclosure and upgrade the walls, roof and floor of the enclosure as necessary
to limit the total sound power level radiated by the enclosure to 77 dBA.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
NV-6g The acoustical shroud around the drilling rig mast shall be comprised of
acoustical blankets material with a minimum STC rating of 25. The acoustical
blankets material shall provide continuous coverage of three sides of the mast
and shall cover the uppermost 26-feet of the fourth side.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-6h During the drilling portion of Phase 4, implement a “Super-Quiet Mode” of
operation between the hours of 2AM and 5AM, during which time drilling would
essentially be suspended to minimize noise. Super-Quiet Mode would impose
the following additional measures and limitations: no pipe-handling of any kind
anywhere on the project site, shakers switched off, top drive and rig floor
completely enclosed on four sides by acoustical blankets material with a
minimum STC rating of 25, operation of the top drive limited to “exercising” the
pipe string only, top drive travel limited to the bottom half of the drilling rig mast.
Super-Quiet Mode shall be implemented from the outset of drilling work during
Phase 4; however, if monitoring shows consistently that noise emissions for
normal drilling operations (with mitigation measures NV6a through NV6g in
place) would result in less-than-significant impact during all or part of the period
between 2AM and 5AM, the Applicant may, at the discretion of the City, be
permitted to reduce the hours of Super-Quiet Mode operations, or eliminate
Super-Quiet Mode altogether.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
NV-7a Increase the height of the masonry walls on the north and west sides of the site
to a minimum of 27-feet.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
NV-7b Apply outdoor acoustical panels to all available surfaces of the north and west
walls that face the production operations above a height of 10-feet above the
ground. The purpose of the acoustical panels is to control reflection of
production noise in the direction of the sensitive uses to the east and south.
The acoustical panels shall offer the following minimum sound absorption
performance: Center Frequency (Hz), 125, 250, 500, 1k, 2k, 4k - Sound
Absorption Coefficient, 0.28, 0.68, 0.95, 0.86, 0.89, 0.72.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
NV-7c Well workover rigs shall be powered by electric drive/sources or “ultra-quiet”
generators or engines - either diesel or natural gas-powered - that are capable
of operating below the noise significance thresholds for daytime operation.
Review of
design
documents and
in-field
inspections
Before Phase
4
City of
Hermosa
Beach
Exhibit D-3
Table 8-10 Transportation and Circulation
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
TR-1a For Phases 1-3, the Applicant shall fund, through and in consultation with the
School District and Safe Routes to School, an afternoon crossing guard to be
stationed at the Project Site area to ensure pedestrians passing nearby the
Project Site have assistance in crossing the streets and the entrances/exit of
the Project Site. Alternately, the Applicant shall ensure that trucks do not travel
to and from the Project Site unless school is in session (i.e. truck travel
prohibited on Valley Drive after 2:48 p.m., on Wednesdays after 1:45 p.m. or on
school minimum days after 12:45 p.m.). The Applicant shall consult with the
School District to ensure timing is current.
Review of
contracts and
site inspections
Prior to
construction
activities
City of
Hermosa
Beach
TR-1b For Phases 1-3, the Applicant shall install, subject to the approval of the City
Public Works Department, warning signs and blinking yellow lights one block
north and south (if applicable with possible one-way on Valley Drive) of the
Project Site warning vehicle traffic that trucks may be entering and exiting the
roadway. Blinking lights shall only operate when trucks are utilizing the
roadway (not 24 hours per day).
Review of
design
documents and
site inspections
Prior to
construction
activities
City of
Hermosa
Beach
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
TR-1c The Applicant shall ensure that all trucks accessing the Project Site and utilizing
the Pier Avenue/Valley Drive intersection are less than 65 feet long to prevent
safety hazards at the double intersection on Pier Avenue between Valley Drive
and Ardmore Avenue. If trucks longer than 65 feet are required, then flagger
shall be used at the Pier Avenue and Valley/Ardmore intersection.
Review of
contracts and
site inspections
Phase 1-4
Prior to
construction
activities
City of
Hermosa
Beach
TR-1d For Phases 1-3, the Applicant shall, with the approval and coordination of the
City Public Works Department, either 1) restripe Valley Drive south of Pier
Avenue to be a southerly directed one-way street. No on-street parking shall be
allowed on Valley Drive between 6th Street and 8th Street to allow for sufficient
line of sight for trucks entering and exiting the Project Site; or 2) restripe the
section of Valley Drive between 2nd Street and Herondo Street to make it two-
way and direct all truck traffic along Herondo Street to approach the project site
from the south.
Review of
design
documents and
site inspections
Prior to
pipeline
construction
activities
City of
Hermosa
Beach
TR-2a Pipeline construction activities within the Pipeline right-of-way shall be limited to
weekday between the hours of 9:00 a.m. and 3:00 p.m., unless the applicable
municipality approves a specific exception to the time limit for periods of limited
duration, subject to measures required by the municipality to protect the public
health and safety. The Applicant shall coordinate with adjacent jurisdictions
throughout the design and construction phase.
Review of
design
documents and
site inspections
Prior to
pipeline
construction
activities
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
TR-2b The applicant shall implement a Construction Traffic Management Plan (CTMP)
during Pipeline construction that includes the following pursuant to the
procedures and subject to approval of the applicable municipality: 1) Require
the Pipeline contractor(s) to obtain and follow street construction permits in the
affected areas (Cities of Hermosa Beach, Redondo Beach, and Torrance, and
Caltrans facilities - PCH and Hawthorne Boulevard); 2) Develop detour and
traffic management plans consistent with the affected City’s standard roadway
plans (e.g., Torrance Street Standard T603), the California Manual of Uniform
Traffic Control Devices (MUTCD), or the Work Area Traffic Control Handbook
(WATCH); 3) Revise Pipeline construction schedules to minimize access
impacts to adjacent residents and businesses; and 4) Ensure that all affected
residences and business have adequate emergency access during all times
and phases of construction. The Applicant shall coordinate with adjacent
jurisdictions throughout the design and construction phase.
Approval of
CTMP
Prior to
pipeline
construction
activities
Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
TR-3a The applicant shall be prohibited from routing Proposed Oil Project-related
heavy truck exceeding 20,000 pounds on 190th Street between Anza Avenue
and PCH, except during Pipeline construction. The Applicant shall comply with
all requirements of the applicable city.
Use of
alternative
route
Phases 1-4 Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
TR-3b The applicant shall route inbound and outbound heavy (>20,000 pounds) truck
traffic along PCH and Artesia Boulevard, which are designated truck routes.
Use of
alternative
route
Phases 1-4 Cities of
Hermosa
Beach,
Redondo
Beach, and
Torrance
TR-3c Applicant shall supply private parking sufficient to meet all parking demands
and shall direct all employees and contractors to park within Applicant’s private
parking areas, or to utilize an alternative parking program approved by the City.
Review of
Plans and
onsite
inspections
Phase 1-4 City of
Hermosa
Beach
TR-4a The City shall design the permanent Proposed City Maintenance Yard so that it
does not enter/exit directly onto Valley Drive.
Review of
Plans
Phase 3 City of
Hermosa
Beach
TR-4b If the permanent Proposed City Maintenance Yard Project affects the sidewalk,
then the design shall incorporate a sidewalk design along Valley Drive which
utilizes a landscape buffer to separate the pedestrians from the street.
Review of
Plans
Phase 3 City of
Hermosa
Beach
Table 8-11 Water Resources
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation Requirements Compliance Verification
Exhibit D-3
Measure Method Timing Responsible
Party
WR-1 Prior to approval of demolition and new construction, a Registered Civil
Engineer in the State of California shall evaluate the capacity of the existing
sewer line system, beginning at the proposed tie-ins on Valley Drive for the
Proposed City Maintenance Yard Project and 6th Street for the Proposed Oil
Project, and continuing downstream to the Sanitation Districts of Los Angeles
County sewer system, prior to any connections. A 7-day capacity performance
test shall be performed, based on Sanitation Districts of Los Angeles County
average wastewater generation factors, to determine baseline and peak flows,
and to ensure the sewer has adequate capacity in the downstream areas. The
capacity analysis shall be submitted to the City Public Works Department and
the Districts for review and approval.
In the event that existing sanitary sewer facilities are insufficient to
accommodate increased flows from the Project Site, the Applicant shall provide
mobile sanitary facilities (i.e., toilet, sink, and urinal) for onsite personnel, as
necessary.
Area study of
the proposed
sewer line and
a 7-day
performance
capacity test
should be
performed at
select
downstream
locations to
verify the
adequacy of
the existing
sewer.
Prior to
issuance of
permit
City of
Hermosa
Beach
WR-2 Implement MM HWQ-2a through HWQ-2d. See HWQ-2a
through HWQ-
2d
See HWQ-2a
through HWQ-
2d
See HWQ-2a
through
HWQ-2d
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
WR-3a The Applicant shall complete a site-specific Area of Review/Zone of
Endangering Influence analysis, per Division of Oil, Gas, and Geothermal
Resources requirements, to determine if oil and gas wells are present that
might serve as conduits for injected liquids to migrate upward to underground
sources of drinking water. In the event that such wells are present, those wells
shall be plugged and abandoned such that underground sources of drinking
water (i.e., less than 10,000 mg/L total dissolved solids) are protected.
Plugging and abandonment of those wells shall include zonal isolation plugs
outside all casings and shall be completed per current Division of Oil, Gas, and
Geothermal Resources standards.
Coordination
with Division of
Oil, Gas, and
Geothermal
Resources
Prior to
initiation of
injection
operations
City of
Hermosa
Beach and
Division of
Oil, Gas, and
Geothermal
Resources
WR-3b The Applicant shall confine injected fluids into the intended zone of injection in
order to adequately protect underground sources of drinking water. Injection
well cement shall be placed at the base of all underground sources of drinking
water, and not just at the base of fresh water, to protect water with total
dissolved solids content ranging from 3,000 mg/L to 10,000 mg/L.
Coordination
with Division of
Oil, Gas, and
Geothermal
Resources
During
injection well
drilling and
injection
operations
City of
Hermosa
Beach and
Division of
Oil, Gas, and
Geothermal
Resources
Exhibit D-3
Proposed Oil Project and Pipeline Mitigation Measures
Mitigation
Measure Requirements
Compliance Verification
Method Timing Responsible
Party
WR-3c The Applicant shall complete step-rate tests, using bottom-hole and surface
pressure gauges, such that maximum allowable surface injection pressures are
set at a maximum of 95 percent of the fracture pressure of the formation being
injected.
Coordination
with Division of
Oil, Gas, and
Geothermal
Resources
Prior to
injection
operations
City of
Hermosa
Beach and
Division of
Oil, Gas, and
Geothermal
Resources
WR-3d The Applicant shall ensure that the hydrostatic pressure in overlying West
Coast Basin aquifers is not exceeded during injection over the active life of the
disposal wells. To ensure that this does not occur, the static reservoir pressure
shall be monitored on a periodic basis, per Division of Oil, Gas, and Geothermal
Resources requirements, and injection into the receiving zone shall cease if and
when the hydrostatic pressure is exceeded.
Coordination
with Division of
Oil, Gas, and
Geothermal
Resources
Prior to
injection
operations
City of
Hermosa
Beach and
Division of
Oil, Gas, and
Geothermal
Resources
WR-3e The Applicant shall meet with Division of Oil, Gas, and Geothermal Resources
staff annually to review the status of the waste water injection wells. Any
deficiencies identified by Division of Oil, Gas, and Geothermal Resources staff
shall be immediately rectified by the Applicant.
Coordination
with Division of
Oil, Gas, and
Geothermal
Resources
Annually
following
initiation of
Phase 2
City of
Hermosa
Beach and
Division of
Oil, Gas, and
Geothermal
Resources
1
Supplemental
Two revisions to the “Proposed Amendment to the City of
Hermosa Beach Coastal Land Use Plan” are shown per
suggestion of Coastal Commission Staff (Pages 7 and 8)
2
Proposed Amendment to the City of Hermosa Beach Coastal Land Use Plan
Amend the Coastal Land Use Plan by adding a new section titled “Coastal
Industrial (Oil and Gas) Development” as follows:
COASTAL INDUSTRIAL (OIL AND GAS) DEVELOPMENT
A. Statement of Philosophy
The City of Hermosa Beach recognizes that while emphasizing protection,
enhancement, and restoration of coastal resources is critical to the achievement
of community goals, certain types of industrial and energy developments, such
as oil and gas, may be appropriate in the coastal zone when consistent with the
Coastal Act and policies established by this plan, as well as relevant initiatives
passed by the voters of the City of Hermosa Beach.
In November 1995, the Hermosa Beach electorate passed Proposition E, an
initiative that re-established a citywide ban on any oil or gas well or wells for the
purpose of procuring oil, gas or other hydrocarbon substances. On __________,
Measure ___ adopting Ordinance ________ was passed by the electorate
allowing an Oil and Gas Development Project proposed by E&B Natural
Resources Management Corporation on a 1.3 acre City-owned property at 555
6th Street in Hermosa Beach. The ban on oil and gas development otherwise
remains in effect within the City.
Until the City has a certified Local Coastal Program, the legal standard of review
for consideration of a coastal development permit by the Coastal Commission is
whether a proposed project is consistent with the Chapter 3 policies of the
Coastal Act, will not prejudice the City’s ability to prepare a Local Coastal
Program, and is consistent with the requirements of the California Environmental
Quality Act.
B. Coastal Act Policies
Coastal-Dependent and Coastal-Related Development Criteria
The Coastal Act policies which guide industrial development distinguish between
coastal-dependent development, coastal-related development, and other types of
industrial developments. According to Section 30101 and 30101.3 of the Act:
30101. “Coastal-dependent development or use” means any development or
use which requires a site on, or adjacent to, the sea to be able to function at
all.
3
30101.3 “Coastal-related development” means any use that is dependent on
a coastal-dependent development or use.
The exploration, development and production of oil and gas reserves located
offshore may qualify as a coastal-dependent development. However, not all
activities or facilities associated with such developments are necessarily coastal-
dependent uses. Processing and storage facilities that support development of
offshore oil and gas reserves may not require a site on or adjacent to the sea or
within the coastal zone within the meaning of Section 30101. Such facilities may
therefore be considered coastal-related developments. Whether or not
exploration, development and production of offshore or onshore oil and gas and
its associated facilities is appropriate in the coastal zone is a determination to be
made on a case-by-case basis.
Under Section 30255 of the Act, coastal-dependent developments or uses,
whether industrial or not, are given priority over other development on or near the
shoreline:
Coastal-dependent developments shall have priority over other developments
on or near the shoreline. Except as provided elsewhere in this division,
coastal-dependent developments shall not be sited in a wetland. When
appropriate, coastal-related developments should be accommodated within
reasonable proximity to the coastal-dependent uses they support.
In addition, Section 30260 of the Act establishes special criteria for allowing
coastal-dependent industrial facilities:
Coastal-dependent industrial facilities shall be encouraged to locate or
expand within existing sites and shall be permitted reasonable long-term
growth where consistent with this division. However, where new or expanded
coastal-dependent industrial facilities cannot feasibly be accommodated
consistent with other policies of this division, they may nonetheless be
permitted in accordance with this section and Sections 30261 and 30262 if (1)
alternative locations are infeasible or more environmentally damaging; (2) to
do otherwise would adversely affect the public welfare; and (3) adverse
environmental effects are mitigated to the maximum extent feasible.
This section anticipates that coastal-dependent industrial and energy
development may not be consistent with the Chapter 3 policies of the Coastal
Act, yet it may be necessary for the public welfare. Accordingly, Section 30260
allows the permitting of coastal-dependent oil and gas development that is not
consistent with the Chapter 3 policies, provided that the proposed development
complies with provisions of the Coastal Act in Sections 30261 and 30262.
Specific sections of the Coastal Act that address energy (oil and gas)
development are:
4
Coastal Act, Section 30250(a) and (b) state in part:
(a) New residential, commercial, or industrial development, except as
otherwise provided in this division, shall be located within, contiguous with, or
in close proximity to, existing developed areas able to accommodate it or,
where such areas are not able to accommodate it, in other areas with
adequate public services and where it will not have significant adverse
effects, either individually or cumulatively, on coastal resources. In addition,
land divisions, other than leases for agricultural uses, outside existing
developed areas shall be permitted only where 50 percent of the usable
parcels in the area have been developed and the created parcels would be no
smaller than the average size of surrounding parcels.
(b) Where feasible, new hazardous industrial development shall be
located away from existing developed areas.
Section 30108 (definitions) defines feasible:
"Feasible" means capable of being accomplished in a successful manner
within a reasonable period of time, taking into account economic,
environmental, social, and technological factors.
Section 30262 excluding parts (a)(3) and (a)(4) provides guidance for oil and gas
development:
(a) Oil and gas development shall be permitted in accordance with Section
30260, if the following conditions are met:
(1) The development is performed safely and consistent with the geologic
conditions of the well site.
(2) New or expanded facilities related to that development are
consolidated, to the maximum extent feasible and legally permissible, unless
consolidation will have adverse environmental consequences and will not
significantly reduce the number of producing wells, support facilities, or sites
required to produce the reservoir economically and with minimal
environmental impacts.
(5) The development will not cause or contribute to subsidence hazards
unless it is determined that adequate measures will be undertaken to prevent
damage from such subsidence.
(6) With respect to new facilities, all oilfield brines are reinjected into oil-
producing zones unless the Division of Oil and Gas, Geothermal Resources
of the Department of Conservation determines to do so would adversely
affect production of the reservoirs and unless injection into other subsurface
zones will reduce environmental risks. Exceptions to reinjections will be
granted consistent with the Ocean Waters Discharge Plan of the State Water
Resources Control Board and where adequate provision is made for the
elimination of petroleum odors and water quality problems.
5
(7)(A) All oil produced offshore California shall be transported onshore by
pipeline only. The pipelines used to transport this oil shall utilize the best
achievable technology to ensure maximum protection of public health and
safety and of the integrity and productivity of terrestrial and marine
ecosystems.
(B) Once oil produced offshore California is onshore, it shall be
transported to processing and refining facilities by pipeline.
(C) The following guidelines shall be used when applying subparagraphs
(A) and (B):
(i) "Best achievable technology," means the technology that
provides the greatest degree of protection taking into consideration both of
the following:
(I) Processes that are being developed, or could feasibly be
developed, anywhere in the world, given overall reasonable expenditures on
research and development.
(II) Processes that are currently in use anywhere in the
world. This clause is not intended to create any conflicting or duplicative
regulation of pipelines, including those governing the transportation of oil
produced from onshore reserves.
(ii) "Oil" refers to crude oil before it is refined into products,
including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is
upgraded in quality through residue reduction or other means shall be
transported as provided in subparagraphs (A) and (B).
(iii) Subparagraphs (A) and (B) shall apply only to new or expanded
oil extraction operations. "New extraction operations" means production of
offshore oil from leases that did not exist or had never produced oil, as of
January 1, 2003, or from platforms, drilling island, subsea completions, or
onshore drilling sites, that did not exist as of January 1, 2003. "Expanded oil
extraction" means an increase in the geographic extent of existing leases or
units, including lease boundary adjustments, or an increase in the number of
well heads, on or after January 1, 2003.
(iv) For new or expanded oil extraction operations subject to clause
(iii), if the crude oil is so highly viscous that pipelining is determined to be an
infeasible mode of transportation, or where there is no feasible access to a
pipeline, shipment of crude oil may be permitted over land by other modes of
transportation, including trains or trucks, which meet all applicable rules and
regulations, excluding any waterborne mode of transport.
(8) If a state of emergency is declared by the Governor for an emergency
that disrupts the transportation of oil by pipeline, oil may be transported by a
waterborne vessel, if authorized by permit, in the same manner as required
by emergency permits that are issued pursuant to Section 30624.
(9) In addition to all other measures that will maximize the protection of
marine habitat and environmental quality, when an offshore well is
abandoned, the best achievable technology shall be used.
b) Where appropriate, monitoring programs to record land surface and
near-shore ocean floor movements shall be initiated in locations of new large-
6
scale fluid extraction on land or near shore before operations begin and shall
continue until surface conditions have stabilized. Costs of monitoring and
mitigation programs shall be borne by liquid and gas extraction operators
c) Nothing in this section shall affect the activities of any state agency that
is responsible for regulating the extraction, production, or transport of oil and
gas.
Section 30232 requires protection against oil and hazardous substance spills:
Protection against the spillage of crude oil, gas, petroleum products, or
hazardous substances shall be provided in relation to any development or
transportation of such materials. Effective containment and cleanup facilities
and procedures shall be provided for accidental spills that do occur.
In Section 30265(a) the California legislature finds with regard to offshore oil
transportation:
(a) Transportation studies have concluded that pipeline transport of oil is
generally both economically feasible and environmentally preferable to other
forms of crude oil transport.
Oil and gas exploration, development and production must also be consistent
with the public access, recreation, environmentally sensitive habitat, visual,
cultural, air quality, water quality, and marine resource protection policies, among
others, of the Coastal Act stated in other sections of this Plan.
C. Goals and Objectives
1. To ensure that oil and gas exploration, development and production is
conducted in a manner that is consistent with the City’s beach culture,
high quality of life, and environmental values.
2. To ensure that oil and gas exploration, development and production is
consistent with Measure ___ passed by the electorate on
_______________ allowing an Oil and Gas Development Project at 555
6th Street.
D. Policies and Programs
Policy 1. Oil and gas development is permitted in the coastal zone if found to be
consistent with the policies in Chapter 3 of the Coastal Act and this Plan, and as
authorized by Measure ___ passed by the electorate on _______________ .
7
Policy 2. Offshore oil and gas wells, platforms, processing and storage facilities
are prohibited. STAFF NOTE: COASTAL COMMISSION STAFF SUGGESTS
DELETING POLICY 2 BECAUSE THE CITY DOES NOT HAVE OFFSHORE
JURISDICTION.
Policy 2. Oil and gas drilling sites, including wells, processing, storage and
accessory facilities are permitted only within the Industrial designation on the
Land Use Map.
Program 2.1. Pursuant to Measure ____ , oil, gas and reinjection wells and
related processing, storage and accessory facilities, excluding pipelines, shall
be confined to the 1.3 acre site at 555 6th Street, and shall not be relocated or
expanded unless and until an amendment to this Plan is approved by the
voters of the City of Hermosa Beach and certified by the Coastal
Commission.
Policy 3. Pipelines are permitted within the Industrial designation on the Land
Use Map and public rights-of-way regardless of land use designation.
Program 3.1. Pipelines to convey produced oil and gas within the City of
Hermosa Beach shall be confined to the corridor defined by Measure ____
located within the Valley Drive right-of-way from 555 6th Street to Herondo
Street to the City of Redondo Beach. Upon completion of pipeline
construction, the corridor shall be recontoured, reseeded, landscaped or
surfaced, to conform with the surrounding topography and vegetation or
surfacing. Any new or replacement pipelines shall be located within the
designated pipeline corridor.
Program 3.2. All oil and gas products shall be transported by pipeline to
processing and refining facilities. Produced resources may be transported by
vehicles designed for this purpose only during exploration and construction
phases of minimum duration necessary to confirm the petroleum resource,
construct facilities on the project site, and construct pipelines. Oil and gas
produced from production wells shall be conveyed by pipeline.
Policy 4. Processing of oil and gas resources is limited to facilities and activities
required for compliant and safe well stream separation of crude oil, gas and
formation water, conveyance of unrefined products offsite to a purchaser or
refinery, and disposal of waste byproducts.
Policy 5. Monitoring and oversight of oil and gas exploration, development and
production projects in compliance with this Plan and Coastal Commission
requirements may be undertaken by the California State Lands Commission, a
trustee agency, or other qualified agency pursuant to agreement of the Coastal
Commission, City of Hermosa Beach and the subject agency.
8
Policy 6. Oil and gas exploration, development and production shall use the
best achievable control technology to ensure maximum protection of public
health and safety and of the integrity and productivity of terrestrial and marine
ecosystems.
Policy 7. Oil and gas exploration, development and production shall be
designed and operated in a manner that reduces the potential for subsidence
hazards and impacts to groundwater aquifers.
Policy 8. Oil and gas exploration, development and production shall protect
water quality and coastal resources and prevent runoff or discharges.
Policy 9. Oil and gas exploration, development and production shall minimize air
emissions and their impacts on the enjoyment of coastal resources, human
health and land uses in the surrounding community.
Policy 10. Greenhouse gas emissions generated by oil and gas exploration,
development and production should be reduced or offset to achieve net zero
carbon emissions.
Policy 11. Oil and gas exploration, development and production shall be
designed, constructed, operated and the site restored in a manner that does not
adversely affect coastal access and the enjoyment of recreational resources and
activities.
Policy 12. Oil and gas exploration, development and production shall be
designed, constructed, operated and the site restored in a manner that protects
the enjoyment of coastal resources, views and scenic areas and corridors, and
maximizes compatibility with the character of surrounding areas.
Policy 1413. No well stimulation or well stimulation treatment of any type,
including but not limited to (i.e., acid well stimulation or hydraulic fracturing) or
gravel packing, consistent with the definitions in pursuant to the Public
Resources Code commencing with Sections 3150-3160, shall be permitted
unless and until an amendment to this Plan is approved by the City of Hermosa
Beach voters and certified by the Coastal Commission, after consideration of
short- and long-term environmental impacts, and a coastal development permit
or amendment as applicable is approved. STAFF NOTE: COASTAL
COMMISSION STAFF SUGGESTS CONFORMING THE LANGUAGE TO SB4
FOUND IN THE PUBLIC RESOURCES CODE.
Policy 14. If onsite and in-kind mitigation are infeasible, offsite mitigation and/or
in-lieu fees or programs approved by the City and applicable agencies may be
used to mitigate for adverse impacts.
9
Policy 15. Upon completion of exploration, development and production, oil and
gas facilities shall be dismantled and removed, and the site cleaned of
contamination and reclaimed to natural conditions, or conditions to accommodate
reasonably foreseeable development, in an orderly and timely manner that
avoids impacts to the health, safety, and welfare of the public and environment.
Program 15.1. Upon the completion of exploration, development and
production or intentional abandonment of operations, permittee shall
obtain all applicable permits to remove, alter or retain facilities, structures,
and other improvements, and reclaim the site to natural conditions, or
other conditions as may be approved by the City in compliance with
applicable laws and permits. In the event the permitee desires to
temporarily idle or defer abandonment of operations, the permittee shall
obtain City approval pursuant to a discretionary land use process including
consideration of short- and long-term environmental impacts and comply
with all laws and regulations. In the event that conditions exist evidencing
that the use has been abandoned, the City may pursue remedies allowed
by law and compel proper site closure.
Program 15.2. The City shall conduct a discretionary land use review
process to permit the removal, retention, or abandonment in-place of
facilities, structures, and improvements associated with oil and gas
facilities determined to be abandoned, and to reclaim the sites to natural
conditions, or other conditions as may be approved by the City in
compliance with applicable laws and permits. This process shall be
independent of any development permits associated with future use of the
land, but may be processed concurrently with development permits.
Oil Drilling & Recovery
Final Cost - Benefit Analysis
City Council Presentation
September 30, 2014
Prepared By:
Kosmont Companies
CGEOIL, LLC
Context of CBA
•City retained CBA Team to estimate the potential fiscal costs
and benefits of approving or not approving proposed Project
•CBA is an independent, unbiased analysis and interpretation
of agreements and relevant data
•CBA Report is a resource that includes a summary of key
documents, objective analysis of data, and details of key
costs and revenues
•Analysis is detailed, requires multiple assumptions, contains
multiple estimates of future results, and various alternative
scenarios
2
CBA Timeline / Milestones
•Jul 2013 – CBA team retained
•Sep 23, 2013 – Public Scoping meeting
•Feb 13, 2014 – Release of Draft CBA
•Feb 2014 – Two public presentations; open house and
planning commission presentation
•Feb 13 – Apr 14, 2014 – Public Comment Period
•May 5, 2014 – City Council Study Session & Direction
•Sep 16, 2014 – Requested CSLC Guidance Received
•Sep 24, 2014 – Final CBA Released
3
City Council Requested Review for Final CBA
4
•Estimates of City Tidelands vs. Uplands royalty calculations
based on CSLC Staff guidance (Section 7.0 & Other)
•Review of historic Hermosa Beach test drill log (Section 16.0)
•Review of pre-trial expert testimony (Section 16.0)
•Response to public comments (Appendix J)
•Additional tables, charts and explanatory text (Throughout)
Remainder of CBA remains unchanged
Before & After
(Gross)
CSLC Staff Guidance
•Draft CBA followed Settlement Agreement, reducing 3.33%
grant from both Tidelands and Uplands; CBA Team / City
requested clarification
•CSLC Staff Guidance in September 16, 2014 letter - 3.33%
grant from City to MOC should come from Uplands
•Distribution of revenues between Tidelands and Uplands
changes, but not total estimated revenue
Tidelands
Revenue
65.4%Uplands
Revenue
34.6%
Tidelands
Revenue 53.8%
Uplands
Revenue
46.2%
Estimated City Revenues (If Approved)
6
96.0 M 93.5 M
150.7 M 148.2 M
195.5 M 193.1 M
313.6 M 311.1 M
50.7 M 24.5 M
79.6 M 53.4 M
103.2 M 77.1 M
165.6 M 139.4 M
2.5 M 2.5 M 2.5 M 2.5 M
26.2 M 26.2 M 26.2 M 26.2 M
146.7 M
28.7 M
118.0 M
230.2 M
28.6 M
201.6 M
298.8 M
28.7 M
270.1 M
479.2 M
28.7 M
450.4 M
$ M
$ 100 M
$ 200 M
$ 300 M
$ 400 M
$ 500 M
$ 600 M
GrossRevenuesExpensesNet RevenuesGrossRevenuesExpensesNet RevenuesGrossRevenuesExpensesNet RevenuesGrossRevenuesExpensesNet RevenuesTidelands Uplands Tidelands Expenses Uplands Expenses
CBA Low CBA Expected CBA High Applicant
Results of Requested Review
7
•Historic Hermosa Beach well log data was the same as
included in reports reviewed while preparing Draft CBA – no
changes in Final CBA (Section 16.0)
•Pre-trial expert testimony reviewed, did not result in any
changes to conclusions of CBA (Section 16.0)
•Public comments reviewed (responses provided in Appendix J)
•Additional summary tables, charts and clarifying text added
throughout the document to facilitate reader understanding
Thank You
8
1444 9th Street ph 310 451 1550 info@healthebay.org
Santa Monica CA 90401 fax 310 496 1902 www.healthebay.org
September 30, 2014
Hermosa Beach City Council
1315 Valley Drive
Hermosa Beach, CA 90254
cityclerk@hermosabch.org
Re: Comments on Ballot Measure Ordinance for Proposed Oil Project
Dear Mayor Tucker and Hermosa City Council Members,
On behalf of Heal the Bay, a non-profit environmental organization with almost 30 years of experience and
over 15,000 members dedicated to making the Santa Monica Bay and Southern California coastal waters and
watersheds safe, healthy, and clean, we respectfully submit these suggested edits to the draft ballot measure
ordinance on the proposed oil drilling project. In the changes we suggest making to the ballot measure
ordinance, the parts we have highlighted in yellow are specific words we recommend adding to the ballot
language, as they include more factual details about the project, which add clarity and information that
would be helpful for the public to know when casting their vote.
Do voters approve of E&B Corporation’s proposed 35-year oil slant-drilling project of
up to 34 wells at the City’s 555 6th Street maintenance yard with 1) a determination
that the project benefits outweigh its nine unavoidable environmental impacts, 2) a
development agreement, 3) General Plan and Municipal Code amendments
exempting the project from Hermosa Beach’s existing oil drilling ban and removing
the City’s project royalties use restriction, and 4) authorization for underground
oil/gas pipeline franchises.
Many of Heal the Bay’s volunteers and members are Hermosa Beach and South Bay residents. Heal the Bay
has been following this project closely with our staff scientists attending and speaking at community
meetings in Hermosa Beach, including all EIR meetings. We also submitted extensive written comments on
draft EIR. Thank you for the opportunity to provide comments; please feel free to contact us if you have any
questions.
Sincerely,
Sarah Abramson Sikich Dana Roeber Murray
Science & Policy Director, Coastal Resources Marine & Coastal Scientist
From: Ian Lee-Leviten [mailto:ileeleviten@yahoo.com]
Sent: Tuesday, September 30, 2014 8:22 AM
To: Nanette Barragan; Michael DiVirgilio; Hany Fangary; Carolyn Petty; Peter Tucker; Elaine Doerfling
Subject: Comment on the development agreement and insurance - clause 6.16
Dear Councilmembers
I'm not able to be at tonight's Council meeting so I'm writing to give you my comments on the insurance
requirements in the Development Agreement.
The Cost Benefit Analysis on pages 102 to 106 discusses the insurance implications of this ill- conceived project. It
notes that the " risk adjusted financial impact" of a well head explosion or a major pipeline leak are "low". That
type of analysis may have relevance to insurance companies analyzing their portfolio of risks but to those of us
who live in Hermosa it's not a useful approach.
I know of no one who insures their home on the basis of its "risk adjusted financial impact". I insure my home for
its replacement value in the case of a fire not some artificial number based on the statistical likelihood of a fire.
E&B needs to have enough insurance to cover the TOTAL COST of a major disaster, not some tiny percentage of it.
Because they are a private company I have no information on their financial strength; however, I'm sure it's fair to
say they don't have the resources of BP or Exxon. The CBA says E&B have a Control of Well insurance policy for
$40 million. The draft Development Agreement (clause 6.16) requires a $15 million policy for control of well
insurance as well as $30 million for pollution legal liability and $15 million for general liability. Regardless of which
of these numbers is the right one, the levels of insurance are very low. Maybe this level of insurance is adequate
when drilling in a field in the middle of the countryside, but the CBA tells us that the assessed value of property
within 750 feet of the well site is $358 million, and that number is, in fact, substantially below the fair market value
of the property. Moreover this doesn't include the liability to people who may be injured or killed. What all this
means to me is that if there is a major disaster, then the remediation costs will not be adequately covered and that
bankruptcy will be E&B's only option.
Maybe the cost to be adequately insured is prohibitive - which itself might tell us that the risks are not as low as
some people would have us believe - but without proper insurance coverage E&B is exposing the residents of
Hermosa to tremendous financial risk. When the Council gives direction tonight to the subcommittee regarding
the negotiation of the Development Agreement , I hope that you insist on a substantial increase in required
insurance.
I understand there are a lot of items to discuss at tonight's meeting but, in the long run, paying much more
attention to the downsides of the project and giving us protection against them will be far more important than
spending time on such things as "matching funds" to achieve city goals. All of the so-called public benefits will
seem frivolous after a well blowout.
Ian Lee-Leviten
Monterey Boulevard, Hermosa Beach.
ps I just saw on the agenda website the two letters posted last night regarding Well Control. I don't pretend to
understand the statistics but I did notice MRS's comment that E&B applies "unsubstantiated" correction factors to
the well blowout databases in order to calculate a lower likelihood of a blowout. That doesn't give me any
confidence that E&B is honest and serious about the possibility of a blowout.
From: Lael [mailto:lael.stabler@verizon.net]
Sent: Monday, September 29, 2014 4:12 PM
To: Elaine Doerfling
Cc: Tom Bakaly; Peter Tucker; Michael DiVirgilio; Hany Fangary; Carolyn Petty; Nanette Barragan
Subject: Re: Proposed Ballot Measure Language
Honorable Mayor, Council Members and Staff:
I note on the Agenda for the September 30, 2014 Meeting you have included a discussion about the
Ballot Measure Ordinance. While I'm not sure it's possible to condense everything contained in the
proposed ordinance into a 74 word ballot measure, I've attached suggested language for your
consideration.
Lael Stabler
66 - 18th Street
Hermosa Beach, CA 90254
310 379-3300
Attached Suggested Language for Ballot Measure Ordinance:
Shall Ordinance No. 15-____ be adopted amending prohibition against oil wells
allowing E & B Corporation oil and gas drilling rights; amending General Plan from
Open Space to Heavy Industry at 1.3 acre City Maintenance Yard site; approving
35 year vested Development Agreement for 34 upland and tideland wells;
removing open space/parkland spending restrictions for general fund royalties;
approving findings that project benefits outweigh nine unavoidable
environmental risks; and approving underground oil/gas pipeline franchise?
From: Sam Perrotti [mailto:sperrotti1@verizon.net]
Sent: Monday, September 29, 2014 7:55 PM
To: Peter Tucker; Nanette Barragan; Carolyn Petty; Hany Fangary; Michael DiVirgilio
Cc: Tom Bakaly; Ken Robertson; Pamela Townsend
Subject: Cost Benefit Analysis - Supplemental Property Tax Issue
This evening I was reading the Supplemental Property Tax section of the Oil Drilling and
Recovery Cost Benefit Analysis that is on pages 73 and 74. The study indicates that an $11.5
million General Obligation Bond can be financed through a general property tax levy. The study
estimates that it can be paid by an increase in the property tax at $15 per $100,000 in assessed
valuation.
A few minutes later I read the literature mailed to the residents by the Hermosa Beach School
District. In the mailer it describes Measure Q which is a $54 million general obligation bond
program. It estimates that the bond could be paid by a payment of $24.50 per $100,000 in
assessed valuation per year.
Perhaps they are using different formulas but at first glance there seems to be an inconsistency
between the two amounts that were estimated to pay off the two bond amounts, $11.5 million
versus $54 million. The school bond amount is nearly 5 times the amount of the oil bond but
yet the annual property tax assessment for the school bond is less than 2 times the amount of
the oil bond.
Can someone clarify what seems to be inconsistent calculations to me.
Thank you,
Sam Perrotti
From: Scott Hebl [mailto:heebz1@yahoo.com]
Sent: Tuesday, September 30, 2014 11:24 AM
To: Peter Tucker; Nanette Barragan; Carolyn Petty; Hany Fangary; Michael DiVirgilio
Cc: Elaine Doerfling; Tom Bakaly; heebz1@yahoo.com
Subject: Tidelands Revenue
Dear City Council Members:
I would like to provide input on an agenda item for tonight's September 30th city council meeting. In the staff
report, there is a section titled "Use of Tidelands Revenues" which covers a question raised by the public regarding
assertions in an E&B advertisement that tidelands revenues may be used for maintenance of the beach, Pier Plaza,
the pier and surrounding areas, including city staff costs.
The staff report states that City staff requires the opinion of Michael Mills to determine whether E&Bs
advertisement is factual.
This is not accurate and I am concerned with this approach for 2 reasons:
1.) The California Attorney General has already determined that "maintenance of Hermosas beaches" is not a
permissible use of HB Tidelands Revenue.
In Opinion 59/184 the CA Attorney General determined that "Since recreational use is not a statutory trust
purpose under this particular tidelands grant, there is no legislative authorization for the City of Hermosa Beach to
expend tidelands trust income on maintenance and operation of its public beaches even if located on the
tidelands. Clearly, tidelands trust monies cannot be used to maintain a public beach on uplands."
The Attorney General has provided a legal analysis on the very statement in E&B's ad "maintenance of our beach".
Why is the city requesting another opinion on this matter when the Attorney General has already provided input in
response to an official request from a former Assemblyman? Also, why is the Attorney General's legal analysis of
this matter not enough for city staff to determine that maintenance of the beach is not a permissible use of HB
tidelands revenue and thus E&B's advertisement is not factual?
2.) Mills has provided opinions that are in direct conflict with the legal analysis from the Attorney General, and
Mills does not provide any basis for his position. Michael Mills provided a memo dated Sept 11, 2014 (included in
the 9/30/14 city council packet) that contains a Yes/No response to possible expenditures of tidelands revenue.
Portions of Mill's opinion are in direct conflict with the legal analysis provided by the Attorney General. The
Attorney General specifically determined in Opinion 59/184 that recreational purposes/expenditures are
inconsistent with Hermosa's Land Grant and not permissible. However Mills suggests that "new park equipment &
playgrounds" would be an authorized use of tidelands revenue if located along the beach/harbor corridor.
Council should require Mills to explain the basis for why his opinion is in conflict with the legal analysis provided by
the Attorney General.
Also, in areas of conflict the opinion of the Attorney General should receive credence over Mills opinion.
Likewise, Council and staff should question why Mill's opinion was requested in areas the AG has already provided
legal analysis on, and if Mills opinion is trustworthy given the conflicting input in regards to recreational uses.
A copy of the California Attorney General's Opinion 59/184 is attached.
Sincerely,
Scott Hebl
STANLEY MoeK
A'TORNEY€ET€NALi.
' ". { ...'
,qa&"e* 6 a'6 4<<.
RICHARD R. ROGAN
Chief Deputy Allorney Generol
STATE OF CALIFORNIA
DEPARTMENT OF JUSTICE
T, A. WESI?HAI., JR.
Chief Assistcnt Attorney GenerclDiiision of Civll Law
CTARENCE IINN
Chief Assistqnt Attornry Ganeol
Division ot
Criminol Lsw and Enlorcemnl
(0ffirr d thl Attunug GBnrrul
STATE BUILDING. 6AN FRANCIECO
}IENRY A. DIETZ. Ag8TS'AHT ATToRNEY GENERAL
Arrgust 26, L959
P. 0. Box 777
Inglerood l, California
Deer Sir:
I enclose herewj.th Oplnion 59/LSh
igsued to you in aceordance ltith your
request.
Tery tnrly yours,
sT^t!{LEr }&ffi
Honorab].e Charles
Ass€mblymanr 46th
TA?{:sg&e.
&rard ChapelDistrict
Chief Assistant
Attomey General
"-16rtu,t vv?. A. lfestphal,Jr.
OFFICE OF TTIE ATTORNEV GENENALState of Callfornla
STANTNT MOSK
Abtorney General
OPINION
OF
STAT{I,EY MOSKAttorney GeneraL;S. CLark l{oore
Deputy Attorney Genenal
No. 59ft84
ArnusT 26, LgSg
THE HCI$ORABL,E CHARLES EDWARD CIIAPEL' AssemblSrman, (
46th Dlstnlct, has reguested the oplnlon of thls offlce on \
the folLowlng questlon:
May the Clty of Iletrtosa Beaeh use tldeLandstrust tncome to redistnibute sand that has
accumuLated agalnst a retalnlng wa1l therebylrpalrlng the pub11c's access to the adJoln-lng beach?
fhe concluslon may be sumnartzed as follows:
The Clty of, Hertnosa Beach nay not expend tldelandstnust revenue 1n or.der to LeveL a publlc beach for recrea-tlonal uses where the statutory grant to sald eltlf does notlnclude the use of the granted tldeLands fon recreatlonalpurposes.
1.
fhe Ctty of Hermosa Beach owns a pubLlc beach Located
upon both tldelands gnanted 1n tnust and uplands granted byprlvate partles. The part located upon granted tldelands 1e
onJ.y a smal]. portion of the beach and the remalnder ls a strlpof Land sose 2OO feet wlde that extends fi:om the Llne og ordl-
nariy hlgh tlde to a eoncrete abutment known as Strand Hall,
The purpose of the Strand WalL ls to prevent sand from ehlft-
1ng onto Strand Wa1k, a pub].lc waLk on the beach. Gaps lnthe wall provlde aceegs to the adJoinlng beach. Over" theyears the wLnd has caused tbe sahd to accurmrLate agalnst thls
waLS and at the present tlme lt ls beglnnlng to ghi.ft aerossJ.t and bloek the entranees to the beaeh fnosn Strand Halk.$ expendlng tldelands revenues, the clty wlshes to nedle-trlbute thls sand onto the upLands beaeh ln order to proteet
Strand Walk and to make the beach mone acsesglbl.e and ueabLeby the publlc" It 1s our understandlng that guch redletri-butlon of eand le totally unrelated to eonmerce and navlga-tlon.
In^L919 the State of Cat.lfornla granted to the Cltyof llermoga Beach, ln trust, all. tldelands wlthln 1te bounda-r1es. {callf . stats. 1919, ch. \79, pp. 941-942. } TtrLsgrant; ln part, provlded that: "Sald lands ehall be used bysald clty and by lts suscessors, solel"y for. the establleh-ment, tmprovement and conduet of a harbor. and for tlre estab-llsment and sonstruetlon of hrLkheads or breakluaters for theprotectXon of lands wlthln 1ts boundarles, or f,or the pra-tectlon of Lts harbor, and fon the constructLon, malntenanceand openatlon thereon of wharves, doeks, piers, sllps, quays,and other utl11tles, strustures and appLlances necessary orconvenlent forttre'promotlon or aceonmodatlon of cornmerce andnavlgatlon, and the proteetlon of thela,nds w1th1n saLd elty,and sald c1ty, or Lte guccessors, shaLL not, at any tlme,grant, convey, give or a1len sald landsr or any part theneof,to any lndi-v1duaL, flrm or cerrporatLon for" any purpose what-sogvgr; . . .tt
The aforesald statutorny grant does not deslgRaterecreatlonal use sf the granted tLdelands aB an express trustuse, nor does lt speclfleal.J"y refen to publlc beaehes orpanks,
Any lnterest whlch a clty has tn tldel"ands aequlred bygnant from the Leglsl€[ture ls eubJeet to a publtE trmsf forthe beneflt of the entlre state. (Mallgn v. Cltq of .l*ong
D 59/L84
Pg"g?r.44 car,ad L99, zog, ) rreerands trust monles may notbe used fol_genenal nunlclpal purposes, (crty_€ r,ot€-g"*.r,v. Mo_rser. 31 Ca1.2d 254.)
Thls offlce has heretofore held ln 33 opg.cal.Atty,Gen.15? that tldeLands tnrst funds may be used to-rnainiain ana
?qg5?|" 1.oubL1c beaeh on granted-tldetands wrrere tfie grant
!"9"1*5e Stats. Ig25r.ch.1o2, p. 235, and callf . stats,-Lg3r,ch.,: 159r pp. 793-795) expreisry oesig,:nates trre-tnainienanbe-irg "publlc pank, pankway, hlghway, [orJ playgroundr as a tlde-1andg. trust purpose. As heretoi6r6 siaieol-rn ttre inetantcase there is no provlslon 1n the gnant aeitgnatlng-recnes-tlon as a tLdeLands tnrst purpose, slnee redreatl6nat use 1snet a statutory trust punpbse-under thls pantrcd.ir iroerandsgnant, there ls no leglsr.atlve author"ization for. frre-cttt;i-Hermosa Beaelr to expend tldelands truet lncome on malntehancean{ opevatlon_ of 1ts publlc beaches even lf locaieO--on grantedtLdelande. cleanly, ticelands trust monr"s cannot be usec tomalntaln a publle beach on upJ.ands.
Ae the lands 1n questlon wene granted ln trust foneommerce and navlgatlon, any proposed expendlture by the-ertyof tldelands tnrst funds muit- beireflt conmerce and iravlgatloir,
Fon the reasons herelnabove set forth, lt is sonsLudedthat tfdeLands trust funds cannot be used ror ieveung tbepub11c beaeh area heneJ.n lnvolved or to redlstnlbua; sandther.eon.
*{F***
?59/L84
To: Mayor Tucker, Council Members, Tom Bakaly, and Mike Jenkins
From: Stacey Armato, Committee Chairperson for Stop Hermosa Beach Oil
Date: September 30, 2014
RE: Suggested ballot language
City’s Original Language Redlined (preferred):
Shall E&B Corporation’s oil and gas drilling/production project proposing
34 wells at the City’s 6th Street maintenance yard be approved: 1)
amending the General Plan and Municipal Code to exempt the project from
the City’s oil drilling ban and repealing a restriction on the City’s use of
project royalties, 2) awarding a pipeline franchise to transport oil/gas
underground, 3) approving a 35-year development agreement, and 4)
determining that project benefits outweigh its unavoidable environmental
impacts? (74 words)
City’s Original Language Redlined (alternate):
Shall E&B Corporation’s oil and gas drilling/production project proposing
34 wells at the City’s 555 6th Street maintenance yard be approved with: 1)
amendments to the General Plan and Municipal Code exempting the
project from the City’s oil drilling ban and repealing a restriction on the
City’s use of project royalties, 2) a pipeline franchise to transport oil/gas
underground, 3) a 35-year development agreement, and 4) a determination
that project benefits outweigh its unavoidable environmental impacts? (75
words)
Deleted:
Deleted: ed
Deleted: 555
Deleted: ments to
Deleted: ban on
Deleted: remove
Deleted: the
Deleted: existing
Deleted: a
Deleted: ation
Deleted: ed
Deleted: to
Deleted: ban on
Deleted: remove the existing