Item W14 a CDP 9 18 0395 Beach

Item W-14 a CDP 9 -18 -0395 (Beach Oil Minerals) CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 1

Los Cerritos Wetlands Oil Consolidation and Restoration Project CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 2

Project Components 1. Decommissioning of existing oil facilities on the Synergy, Pumpkin Patch and City sites 2. Construction and operation of two new oil production facilities on the Pumpkin Patch and LCWA sites 3. Construction and operation of an above-ground pipeline across the City site 4. 30 -acre wetlands restoration project 5. Construction of a Visitor’s Center and pedestrian trail on the Synergy site CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 3

Project Component #1: Decommissioning • Permanent abandonment and surface removal of 74 wells (53 wells are active or idle, 21 wells have been previously abandoned) • Removal of existing tanks • Removal of 95% of existing aboveground pipelines Timeline: Half the wells will be decommissioned within 10 years, and the remainder will be decommissioned within 20 years CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 4

Project Component #1: Decommissioning * Proposed project includes removal of one well on the Pumpkin Patch site CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 5

Project Component #2: New Oil Facilities Pumpkin Patch: • • Two tanks Three well cellars - 50 wells Water treatment an oil separation systems Office building, warehouse and parking lot LCWA: • • • Four tanks Three well cellars - 70 wells Elevated pipe rack Emergency 20 -25 foot ground flare Microgrid system including up to four natural gas turbines with a heat recovery steam generator for cogeneration Total Production Capacity: 24, 000 barrels per day (Capacity at existing facility: 10, 000 barrels per day, actual production: 300 barrels per day) CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 6

Project Component #2: New Oil Facilities CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 7

Project Component #3: New Pipeline • 2, 200’ above-ground pipeline system and underground utility corridor across City site • Surrounded by 12” berm on both sides • Pipelines: water, oil, gas, heat • Two 10’x 10’ expansion loops • Leak detection system CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 8

CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 9

Project Component #3: New Pipeline Alignment

Project Component #4: Wetlands Restoration • Restoration of tidal flows and tidal marsh habitat on approximately 30 acre portion of the Synergy oil field • Preservation and enhancement of larger 76 acre wetland area including Steamshovel Slough Including: • Construction of new berm and sheetpile wall • Construction of new tidal channels • Excavate breaches in existing berm • Post-construction planting, irrigation and maintenance Potential development of a mitigation bank CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 11

Project Component #4: Wetlands Restoration CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 12

Project Component #5: Visitor’s Center and Trail • Relocation of existing Bixby Ranch field office to create future Visitor’s Center • Construction of a 10 -ft wide pedestrian-only trail • Construction of bikeways and sidewalks CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 13

Project Component #5: Visitor’s Center and Trail CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 14

Key Coastal Act Issues • • Oil Spill Visual Resources Greenhouse Gas Emissions Cultural and Tribal Resources CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 15

Oil Spill Existing facility: • Aging and outdated equipment • Lower throughput = lower worst case spill volume • In wetlands Proposed facility • State of the art equipment • Increased throughput = increased worst case spill volume • Adjacent to wetlands CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 16

Oil Spill: Prevention • Special Condition 19: Revised Oil Spill Prevention and Response Plan o quantitative risk assessment o demonstration that proposed prevention and response measures address the quantified risk o measures to maximize containment for all tanks o evidence of financial responsibility to clean-up an oil spill o additional measures related to monitoring, testing, and training. • Special Condition 3 requires additional geotechnical analysis for the pipeline Ø First test of Coastal Act Section 30262 satisfied CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 17

Oil Spill: Response • Oil spills have a potential pathway to the ocean • Containment and cleanup ineffective CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 18

Visual Resources Both the existing and proposed facilities result in adverse impact to visual resources Proposed Project: • Visual Improvements from: o Removal of existing pipelines and oil infrastructure on Synergy and City sites o Restoration of the northern portion of the Synergy site • Adverse impacts to visual landscape from: o 160 ft drilling rigs on the Pumpkin Patch and LCWA sites – present for 8 -12 years o 120 ft workover rigs intermittently present for the life of the project CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 19

CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 20

Visual Resources Special Condition 25: Visual Compensation Plan o Additional analysis of impacts to existing viewsheds o Proposed measures to restore and enhance visual quality that are roughly proportional in scale to the adverse effects imposed by the proposed project, for example: • Removing structures that block public views • Adding screening to blighted or degraded structures • Providing landscaping to enhance views CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 21

Tribal Consultation • 21 Tribal representatives contacted o 6 from the NAHC list o 15 were contacted by staff during tribal consultation for the LCP amendment and so were contacted again for the CDP • Consultation: o Gabrieleno/Tongva San Gabriel Band of Mission Indians • Conference calls on 11/2/18 and 11/8/18 and in-person meeting on 11/9/18 plus several follow-up emails and phonecalls • Opposed to the proposed project o Gabrieleno Band of Mission Indians - Kizh Nation • Conference calls on 11/1/18, 12/7/18 plus several follow-up emails and phonecalls • In support of proposed project • Coordination with Tribal Representatives not on the NAHC list: 2 individuals (one opposed, one did not state position) CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 22

Cultural and Tribal Resources Special Condition 23: • Archeological Research Plan (ARP) to better characterize the potential for archeological resources on the site. • Archeological Monitoring and Mitigation Plan including: o Monitoring protocols for all ground-disturbing activities o Procedures to follow in the event that cultural resources are discovered o Significance testing on any discovered resources. • Both Plans must be reviewed by an Archaeological Peer Review Committee, Native American Groups and agencies CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 23

Override Oil and Gas development may be permitted if • Provisions of 30262 are met • The three part test of 30260 are met: o Alternative locations are infeasible or more environmentally damaging o Not approving the development would adversely affect the public welfare o Adverse environmental impacts are mitigated to the maximum extent feasible CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 24

Override: Public Welfare Benefits to the Public: • Restoration of a small area of wetlands and the ability to restore a much larger area in the future • Certainty on the timeline for removal of existing, aging oil infrastructure from wetland areas If project is denied: • Existing oil operations could continue indefinitely • Restoration of the Synergy and City sites (~1/3 of Los Cerritos Wetlands Complex) would be shelved CALIFORNIA COASTAL COMMISSION ENERGY, OCEAN RESOURCES AND FEDERAL CONSISTENCY SLIDE 25