·9

MINUTE ffEM

This Calendar !tern No. Z? was ap~roved as Minute Item No. 27 by the State Lands. Commission by a vote of 3 _ to _ _o at its IZ / / ZIR/ meeting. •

CALENDAR ITEM 12/17/81 w .!~0196' H~~ilton. 27 •

RESUMPTION OF LIMI~ED OFFSHOR£ DRI~LING OPEE;ATIONS INTO STATE OIL AND GAS LEASE PRC 31:33 .• ,1

FROM CHEVRON'-S PLATFORM. "HEIDI"

LESSEE:.

' --Exxon Corporation 1800· Avenue of the Stars. Los Angeles, California 90067 Attention: Art Wilson

AREA, TYPE LAND AND ~OCATION: State: ·-oi.1. an:d Gas Lease PRC '3133 .• 1 was issued to Humble· oil &: Refij"l:Ln,g-, Gompa:ny (now ·Exxol_l Co;:poration:) on M~y 28,, 1964, and contaj.ris approximately _5.,535 acres

SUMMARY:

A 35

s 18

of sov~reign lands lying offsho~e· ·th~ ·Ci~y of Carpinteria in the Sant~ Barbara Channel, County of Santa Barbara.

Exxpn Corp~ration, propqses to resume 0li1ni:ted drilling bperations int9 St~te-011 and . Gas Lease, PRC 3133.1 £rem exist1ng faci.14-ties ('Platform·· "Heidi"}' located on westerly adjoining State Oil and.Gas Lease PRC. 3150.1 as stiown in EXhibi"t "A". Th~ purpose of drill1ng !s .to investigate and £urt~er develop known oil and gas reserves +yii!g w'1thin Lease PRC 3133 .• 1. The p-;-qpQs~d p~~n is ·to permf:t Chevron U.S.A. ~nc., tq driJ.;l a directional well from Platform·· "He:i:din (Lease PRC 3150.i) into, lands~i~ased by Exxon (Lease- PRe· 313 3 .1} • r;\(:i;s wel.l Cs) wii~ -Oe ~riiled from an exist~ng facii~ty (platform) and wiil be included as part of Chevron·'.s 36-well development plan al:~eady approved by the C9mrnission C.Mi~qte I,t~m 19, 10~28-76) and previousLy described in Cqevron's Final EIR ('SCH 76032281); however, th~ direction will be eastward into lands (E:XXon's Lease ·PRC 3~33.1) not included in the Final EIR. ~i1 proposed operations, inc1~d~ng drilling' production, et(:-r' ·will o(' ;ond\lcted by CheVJ:on in a manµer· consistent w~th existing rules and xeguli:l.ti9.ns: .goveruing1 operatiOI!S from Platform·naeidi11

,. Currently, Lease PRC 3133.1 has one producing -wE'.1.1 that is-operated for Exxon by Chevron from Platform 11Heidi".

-1-

BACKGROUND:

• CALENDAR ITEM NO. 2 ·7 (CONTD')

On February 1, 1969,-iri ~esponse to an, oil and gas well blowout on Federal OCS in the· Santa ~arbara Channel, the Stat~ Lands Commission: declare.d a ·moratorium· on f~rth~r .dri\ling.on State_of~shore oii an;i gas leases., and catmounced ·that no neiJ Wells WOUl~ Q~ approved .pending a comple~e review of al1 off~hore driJi.l~pg ~egulati9ns, techniques, and procedure~.

On July 31, 1969, th~ Commission upani­mously adopted-a r~~olu~on reject;ing ·the s.taff''·s recommendation tqat oi1. and g~s drill!ng on State offshore leases _b~ -fe1?1:1med. However, ·the resolution dfd. provide that.:

"Recommendations ·for drilling wells on existing leases may be brought to th~ Co1hrniss·~on for consideration on.a we11~by-werl q~si~ if there are unique circumstances that justify and require such d~illing." CMinl.ltes, Stat~ Lands Commi~·sion, 1969, p. 867.}

In December 1974, 'the Commi-ss'ion autQori*~d (1) ~he adoption of procedures for drirl~ng and produ~tion operatio~s. from.existing offshore 1'.eases, and ( 2') the resumpt·iori .of drtll:ing operations on a· lease-by-lea;~e basiss s~ch resump~ion t~ be predica~eq , upon ~ review by the State Lands .C9mmiss1~on for compli~n_ce with_t£,he procedures, «compliance with requirements of ~~e CEQA, and upon final approvel by the State Lands Commi~~ion.

PERTINENT INFORMA'r-ION: On October 28, 197.6 (Mi1"ute !tem No. 19), the Commission authorized the resumptio~ of drilling operations from exi~ting fac,il~ties (Platforms uHi.lda 11 '"Hazel" "Heidi" .a111i ' ,, ' " "Hope") located on-State· Oil and Gas Lea?es PRC 1824 .1,,. PilC 3150 .1, and ~RC 4000 .1, in accordance with terms and conditions 9£ the leases and reg~lations of the Sta~~ Lands Commission, subject to the mitigat;i~on measures. ·speci:fied in the Ff.nal Environm,~ntal Impact ·Report (SCH. 76032281J •

-2-

• CALENDAR ITEM NO. 2 7 (CONTD)

Prior to the dritl~ng ·moratorLum, .six e~ ploratory wells weJ;e dril'led on Lease PR1~ 313'3.1. These wells_i:dent±£ied hydrocarb'Dn a:ccumulati:ons und~rly-ing the lease. In J~ly 1968, State W~l£ 3a33.1 No. 7 was .drilled and completed. by Chev-ron for Exxon. The well was pl-aced on p.roduC.tiorr-1...p_ N_ov:embex: 1968 and is e-ur:rentJ;y p+:"oducing about ~, barrels per day of oil .•

Qrie mitigation measure specified· in Chevron's Final EIR CSPH 76Q32281J ·require~ that·-._-_ only one drill·ing. rig. ·be .operated on all, four platforms ( 11-Hi.lda", ''H~z~.i 0 ~ '~He·:i:d-!n,, . and "Hope"). In 1978-,, the· ·C9Jrimi:ssi.on :app{roved: the c;mendment of leases PRC' 1824.1, PRC 3150 .-1, and PRC 4000.1 by estabtrshing ~ dri1lii:i!g obl'i.g~tion of nine~y days. In addition, to meet the above minigation measure thE! leases. were a·lso am.ended t.o provide that the dr:i,l!ing on any one· of !=he le~se~- ft;i~filled the ninety day drilling obligation on the other two· leases.

Exxqn now w~shes permission to resume itmited drilling opera~ion~ on Lease PRC 3133.i from Chevron's Pl-at:form- "Heiai".. m~s..u"~ ... ~"1~' .. ······ ···:.--~ proposal is to drill a d~on~-r well ~astward into a m<!jq?::"--oil. bearing sanc;l l.ocated wi.thJP..- -'hease PRC 3133.1 aµd the Carpi~~~.di Offshore ~ield. The ~el~ Wifl py. 4';filled· by Chevron for E~on from· .Pl~tfo.riil· "Heidi" to a total dept\l. of 7,400 feet. The productiqn potential of the well. wi!J._l be tested as neces$a~y and if it pr<;>ve~ c.ommercia·l, the drillJ:ng of an addiition.jil well( s) may Pe jus-~i,fie·d~

In order to meet the· ,mitigation- meas~-p~;~ of on~ drilling rig in oper~tion at ~i}Y: one tiine, to allow 9he:vron to- drill:. a "wel.l(s·) for Exxon, and to. prevent a breacb of ~~~ ninety 4ay driiling· obligation on PRC t824.!, ~RC 3150.1 and P~C 4000.1, the staff re~ommends that the Commission authorize the execut1ve officer to sign an agreement. This agr~'.~ment., attached as Exhibi,-t: "B" an.cl by th_i.s ref'arence· made a :part hereof,. provides th~t whi~ a well (-s) is ·being dr.i,l:led foJC Exxon into

_3.;.

Revi:s~cl

STATUTORY

CALENDAR ITEM No·. 2 7 { cbNTD)

Lease 'P.RC 3133 .1, the ninety c;lay dr:Llliilg; obligatipri on, Leases PRC 1824 .• 1, :P,RC 315()1.1, a~d "PRC 4090 .1 will ,be suspended,. The agr*ement aiso provides .that the 120 day development drilling obligation of Lease PRC 3133.1 will be suspended wltile drilling activity ts occurring for Leases PRC 1824.1, PRQ 3150.1 and PRC 4000.1.

This and any other "substitut~on" well(>s) drilled' for Exxon' by C.hevron ~ill be ~ounted as part o; the 36-we~·i dev~lopment plan al-ready approved by the Commissi.9n to devi~lop the known rese~es· lyfng ·w~t·hin the Summe:~­land and Carpinteria Of£shore :Fields.¥ An agreement exists between Exxon anq C~evron whereby .E~on can: purchase ~orlductor slot~ on Pla tfbt;~ "Heidi" and' ,process . prod,uct±oi.i. th'rough the Carpinteri~. pro¢essing faciJ.i!~Y. If there is nefil. proquction £rQJll Lease· PRC:. 313'3 .• 1, after separate metering and ~amplij.ng through a LACT -uni-t and:-.gas-.meter, it wil:J_ 'Qe added· to Chevron '·s exis~ing production ope~ations. An· important feature of this proposal ~s that the.£acilities necessary for its iinplementa~fa;m a;.~ already in ope:ra~ion and are ca?~ble" of handling. 'the new pro.duc!:tion while ~til1 ~ernaini'ng in compl~ance .with existing rules an~ reg~lations gov~rning operations £rom P1at;;o-im '~Heid~ rr -and environmenthtl .mt-tiga~o'Q ~·asures.

AND OTHER REFERENCES~ A. :P ... R.C.: ·niv~ Q7 ''-P4r~s 1 and 2; Div. :t3;

'Div~ 20. B. Cal. Adm. Code: T.itle 2, Div. 3;. Tit!j.e 14.,

Div .. 6.

OTHER PERTINENT INFORMATION: 1. This resu~tion of drilling i·s comp~ttble·

with e~~5ting laws becaµse th~re will be no physical change in the ·t:!IlViroiuruant ;. direci;:ly or ultimately, resulting fro1n this proposal. N~ a9ditional or ne~ _permits will b.~ ~equired si.11c~. Chevro:fl already has the necessary ·pE?rinits andl will be perf o~ming ~he actual work for Exxon. Furtherrr1ore·, 'there -wi l ! . ~· be no expansio~ of existing facilitI~~

-4-

CALENDAR ITEM NO. 2 7· (CONTD)

beyond ·that i<.i_ent·~fi·ed. in Chevron' s -... Final EI·R (SCR 76037-?81), 9r any othE~r existing agreeme~t 9r permit. Th~refqre, an initial study which discusses ~~ evaluates th~ envirqm:nental j.mpact$­associated with Exxon's ·resl.imption of drilling and· the adequate coverag~~ -of the ~reviously p~epared ELR {SCH 76092281) was circul~ted pursuant to· CEQA and the. ·ep~· Guideli~es,. N9 adve1:se <:~nts were received. -Staf-f believ•!!s the p±.evio~s1.y pr.epared EIR {SCH 76Q~2281') adequa~ely cove~s ·the prqpos~d ·proj~ct · and compliE~s wi.th CEQA-•

2. This projec:t is !>t'tua~ed on· State· lal1ds identi'fied as p9~sess~ng signi£icant. environmental values pursuant tg P.R~.c. 6370 .1., and is ·c·J.-a·s·s-tfied in a -use cat~gory, Class :B ,, ~htcb -author.izes· limited use. Staff has coordinated · th~s -project with· those agencies and! organ,izati.ons whi:ch nominated !=he s~*e as contai.n~ng s·1·g~ificant envirorimen:~a·l v.a!ues. 'They h~ve foµnq: thi~ project to be compatible with .their nomination~ ,

AGREEMENTS FOR THE PROTECTION OF THIRD PERSONS:: Sta~f has prepa~e4:. agree~~b--Wnich are addLtion to presen~ lease reqpi~ements whict"t are -a<;c;.eptatil.e to. the J.essee, affo:rding, incr~a~ed ·pzotection tg third ~rsons for any damages ~~isi-rtg from opet~ttons ~ondµcted, under the iease. The agree~nts ·provide:

1. Exxqn Corporation will furnish the State Lands Commission with a certificate· of insurance in -th,e amount of $10 tl)illlion, evid~ncing i~surance aga~nst liabil~ty for damages to thi~d persons.

2. The procedures shall be established for· the promp~ processing of all cl~;!...-:; and the prompt payment of uncontest~d claims .•

3. To facilitate the settlement of con~ste~: claims by third persons witho~t the necei:;sity Qf liti·gation, Exxon will agree· .to mec;llation pro¢ed'l:11:'.es. appi'cni!ed by the Executive Officer a£ter ~oµs~ltation with the Office of the Attorney General.

-5-

e

CALENDAR ITEM NO. '2 7 (,CONTD)

AB 884: 8/31/82.

EXHIBITS: A. Location Map. B. Agreement. C~ EIR Executive Sµmma~y ~nd Summary of

Initial Study.

IT IS RECOMMENDED THA~ TH~ GOMMI$SION:

1. CERTIFY THAT A FINAL EIR NO. 203 (.SCH 76032281) HAS BEEN PRE\f!GUSLY COMPLETED IN ·COMPLIANCE WITH CEQ"i-\.j THE_ S1WfE EIR GUI:P,ELINES, AND TtiE COMMIBSION 1 S .'\D~I~[­STRATIVE REGULATIONS, AND THAT ~E, COM_MISSION 'HAS REVXEW~D­AND CONSIDERED THE INFORMATION CONTAINED THEREIN- AND. HAS FOUND THAT THE ENV!ROID-JENTAL l>OCUMENT IS ADEQUATE FOR THE PROqECT AT HAND; PRIOR TO THE APPROVAL OF THE PROJECT.

2. DETERMINE THAT THE PROJECT WILL NOT -HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT. .

3. FIND THAT GRANTING OF THIS AUTHORIZATION WILL HAVE

!; •

5.

6.

NO SIGNIFICANT EFFECT UPON ENVIRONMENTAL CHARACTERISTICS IDENTIFI~D PURSQANT TO SECTION-6310.1 OF THE -P~R.G.

PETERMINE TH..A.T 'JJiE PROJECT IS CONSISTENT WLTH THE PROVISIONl) OF THE CALIFORNIA COASTAL ACT Of 1976.

CONDITION: APPROVAL OF EXXON'S APPLICATION ON ITS AGCEETANCE' OF AN. AMENDMENT o~· STATE OIL AND GAS LEASE- PRC 3133 .• 1 . TO PROVIDE FOR COMPLIANCE WITH: STATE LANDS COMMISSION REGULATIONS IR EFFECT ON· DECEMBE..~- 17, 1981.. .

AUTHORIZE THE RESUMPTION OF LIMITED -DRILLING OP~TIO~S ON STATE OIL AND GAS LEASE PRC 3133.1 FROM· .EXISTING FACILlTIES (PLATFORMS ."HEIDI"') IN ACCORDANCE -WITH THE TERMS AND CONDITIONS CURRENTLY IN EFFECT FOR DRILLING FROM PLATFORM ''HEIDI" AND THE WLES AND REGULATIONS OF THE STATE LANDS COMMISS-10N SUBJECT-TO THE UNDERSTANDTNG. THAT EXXON CORPORATION iiAS AGREED TO THE FOLLOWING PROVISIONS.

A. EXXON CORPORATION 'WILL FURNISH TO 'E:iE STATE LANDS COMMISSION A CERTIFICATE OF INSURANCE FROM A 'RECOGNI:ZED INSURANCE COMPANY, 'DOING BUSINESS I~ CAl.IFP~NIA, . -IN THE SUM OF $10 MILLION, INCLUDING.THE STATE AS A NAMED INSURED AND 'EVIDENCING IN$-'URANCE AGAINST LIABILITY FOR DAMAGES TO THIRD ~ERSONS ARISING. OUT OF ANY AND ALL DRILLING ACTIVJTIES UNDER SAID LEASE--WHICH CERTIFICATE SHALL NOT BE CANCELABLE

-6-

·R~vt-st~d Ct2-/l:6/81)

CALENDAR ITEM NO. 2 7 CC.ONTD)

~XCEP~ UPON 30 DAYS NOTICE, AN~-EXXON COR~ORATION SHALL AGREE TO ·KEEP A CERTIFICATE OF INSURANCE MEETING ~HE .:\BOVE REQUIREMENTS IN EFFE.CT AT ALL TIMES UNTIL ALL DRILLING FROM SAID LEASE SHALL · HAVE TERMIN4TED AND ALL,W~LLS_HAVE BE~N PROPERLY ABANDONED IN' THE MANNER REQUIRED BY LAW.

B. SHOULD ANY EVENT OCC!JR CAUSING A SUBSTANTIAL NUMBER OF CLAIMS FOR DAMAGES TO BE FILED AGAINST EXXON· CORPORATION AS A RESUi:.T OF OPERATIONS UNDER SAID LEASE, I;:XXON CORPORA~T.ON SHAT;.L_, 'WITHIN TEN DAYS. AFTER SUCH EVENT, CAUSE TO Bi~ OPENED,, OR OP~N A CLAIMS OFFICE WITHIN ~HE '~ITY OF SANTA ~ARBA~ STAFFED WI.TH SUF.FI'CIENT PERSONNEL AND AUTHORITY TO ·PROCESS ALL CLAIMS AND TO~ETTLE ALL UNCONTESTEl\) CLAIMS. BARRING UNUSUAL .CIRCUMS~ANCES, THE STAFFING OF SAID OFFICE SHALL BE SUFFICIENT TO PROCESS ALL C.LAIMS AND.SETTLE ALL UNCONTESTED. Cl.AIMS WITHIN 60 DAYS OF THE ESTABLISHMENT OF SAID 0FFICE·; .:

C. ALL DRILLING SHALL BE CONDUCTED UNDER SA-11l LEASE ~~ ACCORDANCE WITH APPLICABLE LAW:, THE . RULES AND RECULATICNS OF THE STATE LANDS COMMISS1.0N AND· THE DIVISION OF OIL AND GAS, AND AS REFERRED TO OR DESCRIBED ~N THE FINAL ENVIRONMENTAL IMPACT REPORT RELATING TO EXPLORATORY DRILLING OPERATIONS BY qHEVRON U!S.A., INC. FROM PLATFORM-"HEIDI", AJ?OPTED :El.Y THE STATE LANDS COMMISSION ON OCTOBER 28, 1.9.-76;

D. 10 FACILITATE THE SETTLEMENT OF CONTESTED CLAIMS BY THIRD PERSONS WITHOUT THE NECESSiTY OF LITIOATI9N, EXXON CORPORATION W~LL AGREE TO MEDIATION PROCEDURES APPROVED BY THE EXECUTIVE OFFICER AFTER.CONSULTATIDN ~iITH THE OFFICE OF THE ATTORNEY .GENERAL. .

7. AUTijQ~lZE THE EXECUTION· OF AN AGREEMENT, A~ACHED AS EXHliB[T "B" AND0 BY THAT REFERENCE MADE A PART HEREOF. WHICH MODIFIES THE DRILLING TERMS OF STATE orL AND GAS LEASES PRC i824.i, ,PRC 3~50.1~ ~RC 4000.1 AND PRC. 3133.1, ON FILE IN THE OFFICE OF THE STAT~LANDS COMM]SSION~

-7-

~ev~sed (12/16/81)

w r··- .-

~£s , CHEVRoN EXXON • 'PRt:/824 ......

CONOCO ffll': 4031

$­~4':]-4

114 ~li4·,.

cit ~4 '°4~Ji, , .. ~~(

PIP~LINES

. c~rf."VRON ARCO P"'C~/50

EXHIBIT 11 ~\ II

LOCATION MAP -

~'q-1.,.J..

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4j "~ (.j

.I '3 ,:.

I ~ ~ e

I ~ ~"r . .., ~

~, .::.."'

.. >

' ~ ~- "'. . ... .!~,, ·,,'

'. ·~:,·· PROPOSED \. · . . t~it · 'ORI L~l NG ~. . . : ... ,. AR·EA f-· I ~ "' •

\" ~~~.~~"""#''" ~;""' 1).- '~¥t-'"'~.-.·$"~ ,• '' "'·' '

#: I ' ·i ~ ' g

"'

_Jd~I

nRC«>oo. ~ r _. , .,,..,.-

CARPINTE:'.RIA .;. _. _. ... HOGA~ PIPEllN~S_. ... FIELD ~ • ;,.__.,--

'· ,-·

1 HOUCHI_~ .~­,.._._ti""

. [§]: j MA~TICliL. ·"IL£S, · ~

- 2 .. I I

0

l

--f.--

••

.,.

EXHIBIT B

MATE LUI~ ·cOMMISS+ON:

.ST.ATE· ,OF· CALIPQ'5:A

~B OIL AND (;AS LB~ES­

·PRC 112&o1, PRC 3123·.1 1 ·

nc· 315~ .. f ·~.D ~c -•·ooo'!i

~IS.AGRBZMENT· ~- en~ere& into by and b~tveen ttie STATE. OF CALil'OD:tA,. actiftg:· ~y ~nd 'tllro~b._.~~~: ~I~-IIA ST~ LANDS CO_M!p:SS!{)H i he:.ein t·~~~red to ~· ,,.~~1.E~ _and A~LAJl~~c:. lUCBFl:ET.D eotg'ANY, " Pennsyivania .corporat-1411,. ·And _-c;B_!VRO• ·u·~~-~A­INC •. , a Ca~i-forni. corporation:,. and £~~9• 'CORPORAT-r~,. •· ••!':: .J~!rsey cori)oration .. · · ·

:ft :B- C I 'r 1'. L S

wBEREAS '· ~lQ{Oil Cf)RPORATION, (naredt:er ref ~red to .u -­~N with. r•spet:t to n.c 313~ .• l); i~ t~e J,eis~ u~ oil. and Gu Lease PRC 3133~1 •ade and •n~ered i~~o th•· 2Bt~ day ot ltay; ~9~41 and

;

WHEREAS,. ATLAR~l'.C RICBFJ:Eill> 'ca.:P~ i QIEyitOR• ,0.-'S:.·A. .' I:NC •. 8 .and ExXOH CORPORM!IOO .are the Lesseeg of ·tea9;a· Pac ·1•2:lc:l.j PRC 315'0 .. l and nc· .cooo • .i, Md with ~~speet_ to, -~hese leues- are· here.after collec~ively ref erred to aa ·~!~~ES~ i aud ..

~RBAs, PRC 31(~3~1 i• adjaC!ri~-. t"~·-:·nc llSO .• J.. :•ich is contiguoua to~--·• PRC ~~24.1 and .PRc-~ooo~~; ~p5· ·

:WBE:UA~, o~ Pebruary ~,; .1:?6t·, STA.Tit,_. by v~l#~~,~t!­~uly adop~ed. r•Jiolut;~n of the .S.\:1'-t:e. -~~~- .. c~~~siiou·,. illP?~~; ·a_ 21b:)r~toriua on c:QntinUed- o~l .and· '9••~ -~r-i~;li~ _ •~e~foft! . ~~; al-1 St&~~ offshore oi1 °and ga•- le~es :,f.nel~i~: thoJ. nmtta; :'ao~e; and

lmBUAS, on.-9cto1>e_r· ::ls~, :19·76~, ~TA~B, by· ·~·~J."d ~d dul.y adopt~ reso1u;1.9n of the St'4~• ~·· ·qoraisai·•S,ion, ~Prcw~~ t.l\e rf.l~u~ption o~ dri~1ing "~per~tie>ft! c~- ~-~~- nc. 1ll~ .. .t,· ~C:. 31.~0.1 ~ ?R<_; .(OOO .1 Gubject ~p· IC~~&!.~- ~U:iu~s •nd :to~ ~'1~ 1mitationa, am •i~~$-~f?1~ -~~·~ o'Mt.- f~b- j.~ th~ d.t?,.,eu11ent­knC?Wri as "Erivi.~~·~tal ~pa~t: ~ ~~~!: ~~T' :Reaµli~~~ .ot·. Dt'-:fJ,:l:ing· in ~e S~ta ~arb&ra ;C?annel ~roa -'l:xi~ting .St'-1Jd~rd -0~1·~~ -of :Cal~forilii& Pl:.~tf;:,~•- ,(EIR llo.; .203 J scs1· 76'@.322e1) •

(~evised 12/16/81) - , ~~PA@

. flllf!IJTEf'A~'£

.

·e

•

1mEUAS; saf'd, '.!:ZR,~- 203, .. aa· ~ ~lti'gat~!l -~~., liltit.a drilling· -open~~on• tq. -~· ~ff· 0£ ~Illy ~ ·~i;il!l'i~: rig .at· . any ti.Ile on Lt!ues 'PllC' 11-24:.a. ,. DC _jl50.'!l: and: -P!lC ·1-t000 .• ·1~ cciiD• · . bined1 and ·

·- .. . - .• . . . . . ·;

WHBREU, thtt t.E-15$~ ·urader DC 1•2• .1., PJtC , 31~ .1, and PB.C 4000.l have. ag;eed. ~· r"'~ti:let ~h·~ ,~ril~'l~ OJie~~~on_•' :so that only _one c11::il:l1ng rlg_ it~.g~t be. ~rat~ ~ ~U;f~· PRC 1624.l., P.RC 3150+.l .and PRC. 400.Q.,1 CQllbin~·, ··~ ~y o~ .tiae.,. mia · · ·- · ·

11BEREAS,. on JtovUlber 30'r i97.'1· L4i~a.·PR~- .i:a24.~~, 'lt~ 3150. ~ and PRC '.400-0 .1 .. !le;• ao~;t~~-~ !?-;. ·w~i.t'~'9 t?.Y .~r.~ .. ni: . between STATE •nd ~~°'S~ tc;> ~~t a. d~~lO)illlMt~~ ~~ilJ;'ing· _C;t>J;~g~~;ion ,, of 90 day~ and ·tQ; F°"iaa tb'at .ful~il;litent or ue,l\~i" ~~ · '· tively, of .tbte .dr.i1xing oblig:at.1.on ;~f ~ny on• 'of L•.•·~.-· ·JRC . li32&1., PRC 3150.1 or ·pac 4000.;1 wcnalii: -®natitu~e ·ful'fi11-9ilt -or. breach, as the.· cease· ••:Y: b.fit, of thci: .d~'i~1iiig, '0bligat1o.,.::~' 4'-.c:h.,. Of ~e other le~l(eS; ~; . . . . .

W&Bltf!~:, ~·• "*c ~l.,33,~ -~9fl&Jb:ea, th~~ -~ ~~: ~rice and -t:on~i:nue de•el:'~'~t _ ~r~~ll-ng •r~t.ion~ b~: ~on- a l.20-day dri'l1~ng obliga:tiori' .i!&;t;i-.dule_f .-~. , .

~£R£AS, ~ w~he~ t9· -res~ _1~1~~ _1:~11+1~.·-o'ft .i:iease PRC ·3I3'3:. l by dire:ct;·iC?n•F -,*~:i._l:J:i~ f~~' .-n~tf~~ ~,._iai ' ~O~!lted on PRC 3150,..1, ~-1~- w;.J.liJ'l9. ·to·.IJ? :~•»'tt;ict .~t' oper~ t'ion a~ to l.imi:t th_e envir~~tai :~•Ct -of ~-~cf~~· by t~e rules, .;egulat~ons and _,pr~ures, of t!)o ec..-i•S:1Qil i#Mlt> ti)!!: 111_£:tigation me~w:e.i of' :BlJl 2031 and

WHEREAS~ the USSBBS 1 :-ak1Cl- each- of· tb•, ~r Leu•a~ · P.RC 1824ol.f:. PRC 3133t:i., .nc 3150 .. 1 and nc· 4000'~·1, aft4_ -~~·of.,' . th~, hav-e -a9ree~ ~~~ .th~ir ~~·~••ts ~Ql.d . be. :ar.i_,d !'x· the :: li"i i;~d rest2pt.ion. of· dri1'l:ing on. IA-~•· ·P8.C 3133. i fi'Olll ~·t~o~. • Beidit and . . JJBEP.EAS~\ the ~EE$ ~- ~z- r.•CO?~:iQ .. ~at -when. ~rJ.l1in:; .is ~ccurr~,.ng '?R -~..ac 31~~~1- ~~ P~~~Jqril ·••.id~~ J!O dri~ing ean_ occu~ ojl. :p~c ~1 .. P.R(!"~l:s~·'!l. ~: ~c •ooo·.l·:i ana, BXX~. lllld ~ns ~annc?,t ~•uotiabl_y be ~;Ma~lld'. ~~ :~w:fU.:1 _the· exist;:sig dev•lopaen~ 4ril~i.ng obl.iqati:~~, · ~, ~~·•· nc. ,Jl.24 .1, PRC .3133.1, PRC l::3:(l.l ana 'PRC' .u:~O(l,.l.., 9·1•·en._ th• if~r•said agre:ed-~pon 1imitatfon t;.o the t1•., ot one· dri~liri9 r~g~- ·and

WHEREAS~ zjr..xOR :nu: aade iippl·ica1:,iott to. re•U. ]J.ll~tod · drilling on PRC ~133·•-i.1 .and

(Revised 12./16/81)

lfBER~S,. S'.rA'?'E de••• ·tije l:!i•i-t.CS r~ifuapt·ion of drilling on PRC 3133.1 to .be in t~e best. ··int:ei't!i-,t of: STATS, and1 the St&te L&nds. Co-iasion, :py' duly la;i .. opt~- :-r ... o1ution ha~· . :authoris~ ·said 1~•ited· resmption o~ i:fri~lJ,i~1 ~ -

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M()lf, DDBPOU·,. in co~aide*atil~,t of. <the pl:~i.,_ ~:~l . 1· of the covenanta and· coftditions herein ~istai'IHtd, ftAH~ ~! .' and EXXON do hereby 11Utuilly agree · ~· .foi~i?ws:. -

l'.

1fhile Plat fora Jrei;a~ ia .. ~-~~ .u~ec1 ''for ch:i-1.-1..·ingi o~rations to sati•~:r the ~ffe~oplllent ·dr_~~;1'~!19- obl·ig~~i~ oL. PRC) 3133.1, the dri11.irtg .obligations of ,pJtC :?.'82.f~.l.,.· PJtC. 3l~Oio.1 .. andi PRC .tooo.1 .are i~sP.~~-· ••n .Pl.atf~~!-Bi~~~ iw. nc~t/',~1tilg, :'80~: used, the dri1ling· obligatig~ of· PRC 18~ll~l, P~C .31.-50,'!1 ~lid: p~· <1000.l" as aended-.. are .in -effect.

:tI

'%qe deve.J,:opa~nt dcl:ili"9' p~:{f.~gatiori, .. Ofr· l~tl daysi contain~ in ~~iiae P~ 3°13~-~,i shall' ·!*"'~?·'.'l~:Y:~f~r ·dJ;il.IiM ,~rito1 PRC 313'3 .. l ·frail· Pl:atfora Hddi.. '!fi!ii 9ll1 i\f~· pet'iod' i• deaigned! to •ake th~ ~evel~nt d~i;.llinq obl·ig~~:~~ . O?~·);·~~n~' -~-,, al.i four leas~-: to a-voi:ct .• ·pos,sible' ~~··~ .. : .~~~- ,~b~-1 -..pp1y··~t ·ta th! J.iai ted reauiip~i~n of ~ril~in9; 1.nto :·~~~, -~31'33'~~ f'roa -Pr·~~ Heidi. When drilling is occurring ·on Lee-' P.llC 182,, .. 1 or -P~?-3150.1 or PRC 'OOOal,. the' ,~ft'CtloPJjlent. dr~tL1'.i~ ·Qbi,:iga~iO,fto, in; ~~c('· 3133.1, as applicabl~~ .t~ the l:'iJait~ r-ulipti.cm of ·drill:i,.;, '-tn11. be .suspende~ .•. ~~n 1~T.i~lill!j '~·- nof ·o~;~ur~i'nj on'·~···~ ·~ltC:'. 1824.1 or PRC 315C .. 1 or PltC 4000;1 the ·"9it!Md upon .9~ay· detdop•-· aent drill!.ng obl-iqli~ie>n, .•• applicable' t(., ·'t:t.·· li,ait8d r.-~~.io~· e>f dri1lin9 on PRC 3·133 .. 1, i~ in ef-fei.'±... ~-

III

~is agr.eeaent ~~all· -'bc~•e; 'ii~1.1. an~· vo,i~- ~~··;~~ch time as p.> t~~re · a~.e· dril~_ing ()peraj:io~~ ~l'i ~RC ·3i~3 •. .!-'. 0.tht;;· than dril.~ing ~pe;ations fri:a Platfo~' '~1"'~'di -~·in ~·- ;~ .. _~nt" ~h-1•;­.agree11~~· is ~ voidfl'.d, the ~e~r•~•J:r1~~ :~~~~~ ··<t•~ed, Noveeei 30 1~ 1:977 •!1~1 ~galn t.e .. in ·:fo1c:cfl' arid· e·f~-~~) ~o,.. {:.~) , dri1ling. ~pe?:ations on 'tbtr th~ee. Le~Q~.S :,a~· '1824 .:1 ;. ~ l~~!>~!·t ·and PRC 40UO.'l: ~re no· longer r•~~~±ct•d· by· !~ '~r goYe·~n~a1 o'Cder, rule or regulatic;>n to th~ ... uile- of onlx Qn~ :4~ill'i~. !-iCJ at. any tiJle on the three! .l.eases coabi~cl'..-

IV Whii~ dri11.ing. wells- f€)r ~.X~~Ai"~~Q PRC. ,_1~3.:1.,,

CHEVRON o. s .A.. INC. .wi1l eontinue to ••~rnfain. insurance of Tei'i· Mi:f1iop Dollar& ($:1.0~090,000 .. oq_> J.nc;i;a:lcs;t\19 th! 'stat.i .·~•: ·~ additi'!>nal insure~. ·p~rty~ ,and· :P•~~Ql'.'!! :otb•r -9,~Li,,~ti;O'J..l• •• specified in the CO!liii•aicn: s· aut.horisat:lon ·.to %•••• ·4rU'ling •· (Min~te It1'9· 19, oetob!r 2~, 1~16. ) · · - - · ·

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(R,.vised 12/16/81) lc.1"'°""'~ .. 7\~4).J'~_':·'_: -t·~:tiAQ£ :J ~< ~ iu.rzW J-• ~ • •. :_' , ( • .. sc ·~\ • , i • _

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~ shall ~r<?vide ~~ ·m&ipt~~c ~aurance. ~o.. a recognized· msur~cfa. comp.illl}!, doing -i;,,u~~· in· ca'l.i.'tort(ia, in. the sum of Ten Million DOl:lars '($10,r!OO,DO·o .. oo) includina 'thei State as an addirioital i.ilaUi&d p~y-- .and ·41!vi~cing, piaur*ce· against !iabi~ity fo:c d~ges to .~liird .. pei;~· ·•-ti.sin& ~!=-. 0of anY and al1 arilll.?lg and preduction a.ctiv,.ties ·~der _.t~ · 1ii[tft~~ resump,·~itra of drill:in~ into nc; .3~33. :t• Ac .cert;£19~t;e of ~aur­a.nee silall be furnished, to the Coalrlssiona The inam:ance- ,ana~11 not be cancellable· e.iccept ·upon 30 '-daya no~ica· -to the .cOmiissicm, The insurance shall be maintained until a1;il .clri1lirig ,an.a,:-.prowfi-, tion from. we~~ls ·dr:i:1led- :FJ.reuant .to th~ ll3~~ted 1.-esumt>ti~"·of drilling bas 'tel:J?li:nated ·~d a11 ~1ls ·hav¢ · be'!n prop~ly abm• doned witb Cqii1miss1.9n'-·s st~~f approval.

VI

In all other respects arid excep't ·•• . expressly"-9:,~.eed herei-n. 11 the exp~ess and implied terma,. def:iu~ti.oris., ~ondit-lona, and c.~venants of Lea~es :PltC !824.11!. P~£ 31!~3. ~. ~R:C .~150 .• l am PRC 4\100.l shall remain· in full force llii~-1e;'fect.

VII

~"tcept as proVided· abov;~, this, ragre~t s~1 be'. e££ective £rom and after Decemb~r 20., 1.:981;; "until December 19 .• 1986.

DATE --------

(Revised 12/16/St)

STATE OF CALIFORNIA STATE LANI>.~ ·COMMISSION ·:Sy ..;.· __ _....,...._ ________ ___

Ti tie· __.;;..._,.-:~--~~--~----~--

ATLANTIC R:ICHFIELD COMPA1fi'

·:By '1ts,'.A!ttor~~Y ~ Fact

CHEVRQN u~:s~A. INC.

By ~------------.,._~----I ts Ai~t~rney in ·Fact ,

~ON· CORPlPRAT~ON

·By -. -. -1-r-.--. ~..,.;.;;-tt.;..· o-_ rn_ . ._e_y-in""".-f .... ~-c-~-. -. -....:..-

. CALBIDAlt f'AG~

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:EXHil\IT C

EXE CUT IVE SUMMAR;y-

INTROOUcTlOM

The pnipcsed project involvf:s. the resumption .of drilling to produc~~ oil and gas frc.- existing platforms in thei SUl!u!erland a~d ~arpio~ria

Offshore fields by Standard Oil Company o~: Cti.lifo:rn;a. -- ~e~e -platformi~

are on State lands in the Santa Barbara O~~el 1 -leased ~rom -~• Calif9r­

nia State Lands Co!lllllissio~, offshore'frO!il the cities~; s~rl~d- and; Carpinteria. The proposed project invol't!ttS drill,ing ·Or re-dri-lling a

113.Xinmi total of 36 wells -from these pla.ti:oNs to -collpl'ete development - .

ot 'the oil arid gas reserves in th~ two fietlds. Standard. was e!1ga.:ed i~t

drilling new wens in the Carpinteria Offs:hore Fi~ld when -the J!lOrator!'i,liil

on offsh~re dri~ling in St:ate lands was i~iposed iii, .1969. Th.is project·

will complete drilling ~perations suspend~-d at tha~ ~ime.

Complete development of ~he oil and g~s reserves canno~ be ac­

complished with the existing wells; so it is n~essary 0to dricH ~d~­

tional wells 1:0 tile varigiJs. reservoi~s t<> ·produce the ::r;emaining ~il ane~­

gas rescr\res. Thus, the purpose of the p~oposed .Pl."Oj'ect: is ta fully

develop tha oil and ·ga~ reserves lying ben~th the·SUnimerland Offshore

and Carpinterfo. Offshore fields. If t}\is Jproject is i.Jlplemented, as

nuch as 4 .7 million barre ts of oil' and· 66_3'10 million· cµbic feet of

natural gas may be produc\:d.

This environmental -i!!!pact report" 'CEIRJ -m:!d~~~~e.s ;he Tesµtript~5m o;f

drilling in the Summerland ;and C:irpi~t;cri:l. ,qf£shorc .fields- ~~1.fir'Ciif>llos:~s

on ebisting environmental con~itions o~ the site and vicinity, the ,.

potential significant cnvironmcn:::il i!}pacu, and the mitigadng ~easur1~s

in•1olvcd in the projcc't which minimize, J>Otcindiilly significant .adversei

illp:iCC~. A thorough literature scare:) was conduct:i!ct ·to osfoblish· :exist..,

ini. environmental condi~ions ~n the project ar~":i •. 1;,hicn was then fcill~~ed'

by an assessment ·of the direct, indirect:;. an~ irt~<;:rs~ impacts .,s~oci-a~~d · .•

with ·pr.ojcct implementation. The ~spccts ex the .e;~isting ,enviroJivEe~tat .

seuing .aJdrcsscd in the ElR ttr9 gcotcchn:i:-~al cvn~:ra~ritt~ons·J- meteor­

ology, biology, ·oceanography:., w::u:e::r qt;tality~ and si>c;i:6~con~~c3'.

Most potentially. si~ifi~::mt e.µvironmental ilflJ?ac~~ as~oci?.-te\f wi-tn the pJ;oposcd project stem from the -fact that oil.-c1~u!d··oe· acci~enfa.tlri

r.!lcased into· the er~y:iroruncnt. The· pott;ni:i;:tl o.ceo.i:t'i'.ence, J!tOV~nt·~ ;µ\,d..

:fate of oil spills that ~Y i:>ccur from <::he .proj>Osel~' ~~J;'?~·ect and- $e.i;:t:

potential nvirqnmental impa{:;tS, including thE;· ,i:~e:qj:icney and. -~~e· of pot:ential spills f-roi. :the of~shore· ·platfo~, the cmsh,ore ·fa.ci_.'J,;:ti.es,,

;P..z ·marine ~erzinal,. pipelines s .and to.nkers, ~~e ,~~scµSs-~. Other

environmental impacts from the ·proposed· ~rojec;t ·ari' disc:-clss~ accotdini.

t.o the aspect of the envi'ronment affected' {tei:hnic;~l; biO-logi.cal, air

quality" ~tc.).

Th'~ poten.tially signi.fieant ~y~rse impac;:~s :a:s:;9cia1;~' with the·

proposed.pr~ject have been- grou_i>ed i~to three ~pea?; tjie·pnysieai~. th~·

biologic:i:l, and th~ social environments. Within ~tlh.cse areas "the poten--.

~ially significan~ adverse imp~cts f~11 into tjte,C,~tegories ,of jecF­

tecbnkal considera.tiotts an~ imp~ets generally reS:tJ.lt~ng. froa. ·the.

accidental relea$~ of oil~

Beneficial impacts p~rily relate to ~ricre~s~. -production of

crude oil~ natural gas~ ~nd ~th~r liquid.petroleum.products 'tliat,~ld ·

result £rom project i~plcmcntation. The natural g~s ana· !iquidpetro~

leu:n.prcducts will be used· a~ fuel. 'fll~·ct"Ua~ oilj will b~ refine~ i~to· petroleum fuels and pctTochcmi~a! ±~wmaterials. 'the prq4uced natural gas has the added ?O~i::i~~ quality of tein£.a relat~vcly c;ean-bµrt'ing source of ener~y anti' wil:r gener:ite -fewer air. p0Uu;tan~s- ·than other

fossil -fuels. The rc•:enues thi1t win ::ccrue· to th:c coun.try and tit~. ·s:ta_te,

ana ?;he achlition:.U ci:-iploy,mcrit ~~d wa~es sp~nt in th~ lo.z.al economt a~e

also beneficial impacts.

2 ~LINOAR PAGE-~,

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Mi~ig~ting mc.lsur.cs for the prole<·it ·dc~l pi;.\Jll:lr.q.y ·W?,:th oil ·~ifti.(,:

prevention and ·cont-col ·'~ocedu·rcs· becati;se oil spJlls_ ~re ~,e ~~'5e. ·~t · mst potentially :i{lv~rs~ iilpacts. The~~ mca.~~~e;;: ~nvoivc· ·t~.e µ~e ·of ·" ·

ufcty equipment durini dr:iHing ;µid ptotb.i~tion and strict .c~l!~:c .~

·with applicllble federnl,, state, and: l~~i code.$• and ~~la;i~_'e ·,·1ne~1it'. -codes and regulat-i-qn~f ~cify ;rcq~ireilents. for ~pmen~ ',iruf npetat;on·~ :>

including well casin1,. .,biowoo~ prevent.~on, dri;".{;Un&-JIUd proit-a~~·, and

eq~i?1ent. insp~ctions d~s~t"ned to prevent .~ll tfii~'ts. SP.~cial pro;..,

grams for dr.illini p,cr~onnel have been establi~hed ~o ti;~ thetli~O

recognize, preyent, and. co~trol--• .. •c:Fi-'9'i:ck"' ~r1)1owo~~- "f4e ~~ful '.-. "Selection .of tanker -approac:h routes, sc:;h~ciulin~ .. o~· ~i~c ·and; tr~fir'i~ =·

' , ' ~ <

operations. and compti~~e with 'applic~~ie_. ~rl..~~ ~f~ty, ,&r\d. naV.lg~~----· ·.

tion regu~a:ticlns wi1.1 reduce :the likel:i{l~· ,of ·an ~il •J>~;i1 f~ ~iri!F

~~al-operation. ·. The fol~owing is a, sumary ·Of the:!po~tttiillf signifi'tjmt ~vitrse'

#mpacts, nmn.ely~ geotechn~cal .and oil spill, ·cc;nsid'eration~- Thes~f

subjects are .addrei;s~ sep~ntely under: aa.jor 'head:iJigs- in this E.!R.. 4.

Since no other sigirl:ficant advers~ ;mp~;:ta are· .~t;cipat~d ·in ill!pl~j~-

ation of the. proposed prQ~ect, th~s s'WliJaary' ~ill .i\Ot .res·tate the less

i.mpc;>rtant envil:'onmenµl considerations ·?res_ented' in .the text.

GEOTEqINIC\L I~tPACTS

Geotcchnic:tl impacts ~re .assessed •)jl tlie b~is .of th~ ~ta prese1t1ied

in the description of the .exist:ing bas~ ,)_ne · c~ndi tions. Thi~· ~ectibn ·'

diScusses potcntia~ imptlcts· on the. ~eo~l:~hni~l en\i~rorune:it -~b.y dr_ii:i.·~~~r

an4 production opcrati.,ns and potentia·~> geQlogic ha~:n;-9,s that ,~y ~ave ·

impacts on the project and its facilit~$.

Potential Impncts on the Gcotcchnicnl Environment . .

frota -OriUin~ :ind Productio~- Opct:tdoJ!!.

·Potential i::1pacts ·from drilling and p~uction ope~at,~ons i~clucle

disturb~cc 9f ·bottom sedi~cnts, ·su~sid~nce, effec;.ts on thc~round•wa~cr

envirofuiu .. ~t, use ,of· l<l;ltor .resources., effc~t~ on ~tural oil .seeps.-~~

man-m::idc c:irthquakes. Thi~ p:rO;cct will di~turb oniy ~"'very suit ~ of bottom surface s¢iment. nte· s~bsidence potential is very small~ . .. ' '

these offshore fields~ ·and these.operations shoµl~ not-affect ~ocil

groundwater basin~. Howeve;r-., use- -Of water resQ'a~~es:» effects on: Da.~1: . '

Qil seeps~- ~4 -mM-~e ·eard1qu:i~es could· be' important .under 5~ ·cir~

cumstances.

Standard Oil Company ~eceives water.-~ ~~,Carpinte±'ia"County

Water District. Its present xequit~ments ar~ 36,40,9 'a~lcns. f!e'r ~y (gpd), which :represents about 0 • .9' p~;'Cen~ of ri;a· ~c1~1ttict'·s tqta~ .us~. P.ecendy,, Standard O.j.1 initia.tecf ·a. program -;.o -ch.,nge -:t_he -water ~ed· in

- hyd-rnulie pumping from fres?1 water to p~duced water. WJlen_ 'this. :p~~-=~ is completed, in mid-1977, the·tota'i fres~~t~r ~-~~·of ~he0 -f~; pl .. t­

foms and onsh~re fac5!1it:ies wti.i be reduced ~o about 2100 -i?d~ 1'1le·

operation of one d:i;llling 1".ig, :as planued for t,.his projeet, li(il+-:eau5e - - .

-e

an increase of ~300 ~until th~ drrllinz; prop-Q is comp1aed.

Na1:ur:ai oil and gns seeps are co!l,!Qon along th-ct·-·Carpintcria, c:o~t

and a fe~-have been reported in the vicinity of the Carpinteria Offshore

Field. It is not possible at this time to accurately assess· the]ioten­

ti~l effects of petrolcwn·p~oduetion from the Sunuacrl~d,--offshore 3J&4 Ch.rpinterfa. O'ffshore fields -or. any .na.tµra.1 seeps. ¢ontinu~ stU;dy -ur dctcn-.iinc if there .i~ any dirf!ct correlation bet1'~~n qri'l-ling ?~t! na:tLi.ra}

seeps. I£ a correlation is fotirid•· '3\itig3t~on iaeasUTes would b~ puts~

if necessary.

One pote~~i~i c3r1:hquake hazard in th~ Sajlta -Barbara Teaion-i.s ittc

possibility of causi~g s11111ll ea-rthquakC-s in the cout~e of nop!'..al p:V­

duc.;ion ope-rations. F:lul t displac~mcnt is a potcn.tial. cnvi-ton•4mUlr

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~rd becaus~ ev~n sa:l~l ·displ~cemcnts on sport fault·setment~ co~ld

she1tr well casings in the ·subsurface or b:eak to the sea 'floo~ • :SUC:,'\

displacClilen~ might sear off a well. How~ver, there is no evi~cnce ~t earthquakes have been caused by oil field operations in any of th~·· Santa Barbara Channel qffshqre: fields.

J?2.~!~tial Nat?ral Geotog_!c Hazards .~nd Their impact

on Project Fac"i~itics

There are a variety of j>otential 1~olo2ie hazards that~iaay ~ve iapacts on project facilities. The potential hazards include e~1r.t~e shaking,, ground Tuz>tU~~ •. liquefaction., tsunamis, submarine laAd'!siides,

flooding and erosion, ~.d.e:ccas~ive·-;tesel'Voir fluids and pte5sures. ~ ~hese. ear~hqµake $haking and .'4'0und nipture ~e- the most -poten~,ially

significant to ~his project.

The Sarita Barbara Qtannel is a sei~mically !&Ctive :region :and ~ . .

currently undergoing strUcttxral deformatio~. :Maximum ir~d a~celera-

tion would oc~Jr a~ either"offsJla.;-e site f~m a mgnitu4*' G.S ear.thquake'

occurring on the Red· Mountain :thru$t or t:lre Pita.S Point fault. (Thi~ ~5

the estimate~ maximum· magnitude earthq~ke that these ;ault:s can.:produ¢1!: .. ,) The platfoms l:i·~.!l u~dergo severe motions in· response to ground i15:cele~a­

tions. Minor dhmn~e7 six:t.. as .structural member dis~orti()ns: ~d cracks,.

would likely Qccur, but tb~ probability of ;platfoxm collapse ~:s vefy

siza.11. However, should a platform collapse, oil spi~lage w<>i1id be

liai.tcd by au~omatically controlled subsurface saf cty va~ves and ~to­matic pipelitie shutdown valves.

Seismic shaking could caus~· 'a pipeline rup~ure or a ,tank failure.

'lbe 217,000-Qbl storage tank!~ ~ncloscd by d;kcs capabl~ qf holding t~~

entire cont~nts of .the tank. The ·smaller trutks- .are similarly protected:.

Ground sur-f:icc ru§tµ~~ .. associat~d with f3Ul1:;r;g is JIOSt: li~eiy ·to

occur along traces of aults estabbished as ~ctive or potentially activ~.

Numerous earthquake cpi!=cntral l~c<itions fall in the offsh9rc .areas

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adj:u:cnt to tile Summcrfand a.ml. C;irpinter,ia·.dffshore field~, :SOflc of the

active faults in this region ·aay not Mve ho.d -recent ,surf:i.!!c· express'ion:;.

there ~re numcrou~ shallow faults in both fields th~~ ~o-not.h~v~ sUTface ~xp ...... ~:i::::. 'Th.4!5-~ f;t!!lts ~o .not show evidenct? of Holocene movcm~nt: on the seis~ic r~cords reported by Ziony ct al. ti974J.

Onshore, th~· t:arpinteri:J. fault (Dibblee, 1966): and ~e: ·.Rincon Creek

fault (Lion. 1954) are in ~fi.:,e immediate vi~initY of ·the S6mdard>Oil

Company onshore proccsJing -fa~ility* Even· thou&h n0.lii$~orically activ~

fault zupture cxr.ends throu~h the area. ~~A--;_~ntt ,:O....:""'i::n;uri· 'aur!ni't'h; expected lifetime of this .project remai~ a Temote possibility. ·

Surface rupture~ ei~her onshore or offshore. is a..·.\'K)tential h&zara: to prQduction facilities ana r~l':ted ins~~lX•~;ons·. Such ,a ~ture

could caus~ fa-J.:!urc in. tbij inie1rity of pipel~es. tanks. ~ "treataent

facilities. If an offshor~ fault "TUpture ~esulted ·in faiJ.ur~ of a

pla,form. autcmati~lly contr611ed-~µbsurface ~a~ety valves·~ould ii.!li:t

th~ resµlting spill.

The condition most likely to result j[;t a J.arg~ .. ~ii ~pi:!-l 'lfOulCi be

a weJ..l blowou~ dw:ing drilling opera.~ion:S. Also.- fault .mov~etl't.s t.-OU!d

cause drunage t.o producing ~cll:s. Ho.'fever, ·su.,ch' w:ivcmcnts.-have· occuri'~

in other California oil £ields without ~t.y&ing serious oil iea.ks be~e

'the fault movement pinched cff the well cusing and inhibit~d. le~ka1e-9f

oil (Vedder ~t al. 1969). Th~ likelihood of a large ~pill arid si~ificant er.vironmcnta! ;~pact is ·furthe~ reduced ~ecause ~os~ of the producin~ _

:ones in these fields aTe substantially pres~ure-dcpleted by past~~~­

duc~ion; although some :ones ~~Y have the cap~bility ·to fl~w natural-ly for ~ short period of ~ime.

OIL SPILL lMPACrs

Tile propos~ project involves £ew potcnti~lly significant adv~tse

imp:tc~s, ar.dmost of them would occur as tr.c result of oil being spilled

into the marine environn:cnt. 1his dis~ssion foc~scs on· oil spills 'that

6 C~Llft0Mi'P~G£

, MINUTI! PAGE

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~uld re$.ult from ·this project, ;he potential mqvc!l~nt and f~te of t_hcse

.spills. and the si~nificant ellvironmontai il\pacts.·"that would result f~~

them. 'TI}e .po~entia.~ iapacts. includ.e ·effec-ts on the biological- enviro~i•-,.

aent~ exisHng. s·ociot:co~Ollic conditions, 11iarine- wa:tcr qua.l-i.ty, ai'r

quality. aniL the ~ffect of oi1 sp~ll C:leanup .. ~tions~ Poteiid.al

urine bioli r~icai :impacts· are ,probably the mos?; imporunt.

The Occurrence of Spil:l~

'Ibi~ J?roject 'has th1~·ee .major facilities that must -be c;~~

potential sources of oi1 spills: the four 9,;fs~re· ·pt~t£qrms·.. the iiiiii"ine fcr.tii.Uai, and ~e onsiiore·processingand storaa~ .faciliti~s.

Offshore Platforms. Durin2 dJ;'illirig: operations$ a blo~~t is' th~ most likely cause-·uf -~d!!2.ig1=' ,oi,! spill. although not 'the ·mos.t l;k~iy, c;ause :of

any spill. During, the periods .1956-1960 and. 1964;..1969_,, three .blowout~:

resulted in oil spills for every 10,000 well~-9;riUed (U,.S. Department of the Inte!";or:, 1972).

Should an oil well blowou~ occ~r, one might rea~onably expect ·a

spill volvin~ in the.order of a £ew hundreos of barrels -per day. :Othe~

potent;.rtl·~y signi:fi:ant ~-f~t:rts of blowouts include i.njur)·, loss- ·of li-i~,~ ~nd property :diun::r.ge. ~~-" as well as ~once:m ;for oi~"SF-i-llS,,, ~

the impetus for the ~tt'ong blowouz. preventionprogra~ that wil~ be

implemented wlien drilling commences.

During production operations.. pil spilis can «occur .f~--:.__bimrouts; ..

fires,, pipeline Teaks or ruptures. pump failures, and other op"&"ating

equipment ·failur-es. Dtitit1& the period 1953-197.2~ between three· :tlicl fc1~r

major production acc:j.dc~;s occurred for"<evcrJ' io.,ooo wells ir. proouct~;on.

Ii:i general. leaks, TUpturcs! and eq_uipmen't.. failures are the ~<>st

Ccm;1%l0f!. causes of oil spills .. fr"(n11 ·offshofc;, .f~ilities.. From: 1911 thro\1i_n 1974:> the average :mnu01l ~pill volume rate ~~ 18.6 bol spiilcei; .per

mll;on barrels produced. In 'the most produc«!ive year,, one can .statis,-.,

tically cstimat.e that about 34 bbl will be spj,Hcd frcm produc;iorx

operations of the proposed projcc~. Ih other yc~s this statist~cal ~!Pill volume ~ould be reduced in proporti9n to ·total prod~cticn. .

:Standard· ,Oil n:is reco~cd o.nl;r three: ·minor oil. sp~lls f:rora these

four pl:it:forms since 1:hc company· be_gan recor4in&:<:IJ.i ~il, .spl.ll~ _,in l~Eo9 •.

'11)ere has never been a. major oil 'Spiil .frOll. the$e platfQrms. Th~ ~~ie- : ~ _ - -

record~~ spills t:otalcd less .t~J1 one ban-el~- givirl..ri :i: spili r~tii: <>~

about 0.2 bbl per million barrels produced.

Tankers and Marine. Ter.ninal-. A compJ,cte ruptu:re of the pipeline to ~~ . -

marine te.1nninal during transfer coi.ltc! result i.n · ~ spill of· ~etlf&.:n 220:

and about 1000- bbl .• _ This r~ge repr~sents a reasonable Jaa#llRm sp~~l estima~1e .for oil spills at the :m.µine' t~rminil; .,'Jbis ~illUa spill,~~;

hlghly1 un}'.5·~'ely; however~ ~cl>'·~~ller t~sfer,,;.Te-l~~~, ·s_pi1l:S.~r~. 1!,0r.9'

likely t~ ~ccw:-. nata .a~ of1 spills ·f~- tankers ina~cate,·:...ih~t lL.4 ~~l. were spii'!ed: ~er million barrels ttansport~ d~ring 1973 and 1974. ~bis.

rate indicates that durit1g th~ fir~t· ;i·:c .je:irs of produc;icn frm. !lll;s.

pl"Oject, the average ~J>ill voluile wool'd l?e 34 ~bl per year. ns;:S statistic:J.lly cal~ulated splllaee could ~ccur anywhere alq~g the tarilc•~ routes a.~d would·not be confined to the Santa,Barbara Channel.

Spills may a1,so occ;~ at the -marine tenai~l wher4' the- umlcers' .!x-•e loaded. Dur-ing. tJle ~ak prodUction ~ear, about 1.~-~i:llion 'barrels wi;ii

... - - , ,. ~ (.~ -

be produced and lgaded into 1tankers. Spill. statisti~ fl'Oll! ma:rlne

transfer ~nd iuet~ng_ facilities. indicate·~ha.t s~~ bb~ are ~pilled per million barrels t-ransf~rred. This .statistic.~! -rate Would indi*'te· thajt

about 9.4 bbl cot.1~d be spilled· ill' ·~he p,c:ik year.. Standard· Oil has

recorded uo. spiHs at the· ·!=:i-r.pinteria m:irine ter!:!inal since· the coapan!r "' began ~~cping oil spill records .in 1969. Between 1969 and 1974. Stand;P:"d'

Oil 'has' tragsfcrzcu at lcast·8.2 ~illion barrels, of.crude oil in the . - .. ~·

:1?3-rine1 tcrmin:il ..iith'oot an oil $pill.

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·onshore ffacilit.ics. The source ~£ the lu&cst 'potcnti:>.l ~shor~~ -~pi~l

is the s.inele 217 _pOOO-bbl c~ude ·stock -tank, whicb- is c~nta~~ '~~thin <,,a . . .

diked area with· a ca~tjty brger than· that of the- tank•,, ~·'eX~nil!Mlt.·

unlikely .simu~taneous rupture .. of ·the ~-·and fai~'!:l'!· of' the ~~~~t

dikes cculd ·spill suffi:c.ient O'il to. aff~t larse ~s of land. ,~ .;,

A spill fr011.·a b~ote~ ;pipeline· would jeneJ"&lly,·be ~t~;~: by "tile , . , ~ .

·rc>aas and railroad ·t~cks w.hic4 essentially sw;toun,d: the· s~te ~ would

tend to p~~v.«;nt a spill frail r~~chil)g.~he. ocean. Standz;i'd Oil-~~- 1'0t• - ' '~

experienced an oil spiil which \has .. c;nterea· ·the water ftoa the qa:j:p,int·erµ.

onshore facility·or froia the pij?elines co~ecting ·the offshore ,plat:foms.

Oi! Spill 'f.fovement

A SO_O-bbl spill ,~,r; "the tery;na.r is ~nsj,qered represenutiv1r of ~·

maximum Telease of oil at the beach. Under t:):pic&l' -vi~ and ~~ent

c~nditions ~ contaminat~qn of ~e shc.re~ine· re~i~ '~een ~: ~•jut ~

Rincon P'oint would'Jbe ·expected~ with Rincon Point beiJli mos~ vulit~le

on a probabili~tie basis.

A 500-bbl/day -release .;s considered. repr.esentatj.ve of, a spi:l;l t!iat

could result fro~ an oil well. blowout. ~en~ini on theclfilld' iuki\ current v~locity conditio~ in ~he Santa Barbara·~~! ar'a ~~~he

-t:ime of 'the ·blowout,, -~ multitude ~f oi~, .slick mov~:ent. trajec~or~:es are

possible" One can conclude t~at siini,~icant ;saftta ,sarb~ra ctw.Ui~l

sboreline contamin:ition ~oul~ be pro[?~blc ·fro.. a .bl~t at any ~~a;forilt and is more likely 'than 'the, movement of oi~· ou1;,. to sea ..

Pot:enti.i~::Oil SpiTi Impacts.

In addition to. tJie,:lioVement of an oil spill,, ·the· ultima~e diJsposi­

tion or f'a tc ·of tJ!e spilled' oil is iinport:int in ,understan4iilg ~i;e, .spill -

impacts. The fat~ of oi:l in a. sf1Hi depends OJJ.' a ~OllpleJ; int:cr1ic;t:iorl

aaqr;g- -scver"cl. v~r.filblcs. Soae o~ the lighter fractions. ~f oil wi.1~1

~~aporatc·very rapidly; others ~re sensitive to sunlight ~n~ oxi~ize to·

___ .... _ •.. _______ ........... ,..., ...... ,,, .,,~ -

form other. QitGn innoettous inert c0111pounJs, (p~otooxi~3tion); still

other fr:i~t~on~ will either dissolv~, •Clllulsify:~ ·or ~d~orb· t~ sediment p<?rticlcs, d(?pcnding on their physicn~. ·properties. The physical dis,.;.

pcrsion of oil cnn occur by several ia~:thods: 1litt'~ral depo~tion,

physicnl removal, dissolution, flushing2 elution, scdi•~ntation, •i~ - .

crobial oxidation, mid organic ~ptake. These arc discussed in more.

detail in the Oil Spill blp~cts section of the EIR.

11tc evaluation of th~ pote~ti~l e~vironmcntal impact of an.offshqre spill C<ln be ba~ed on the experience of the 1~69 Santa Barbara oil

spill, on the impacts of the several s.1eli-studied natural oil seeps ~~

the area., and on dD.ta obtained from pa.st spills ill'· ()ther ~r.eas,. co11bi11ed

with a knowledge of the physical and l:J.iological rea~ ·of t.'1e San!;a

Barbara region.

P~tential impacts that could occur as the re~u~t of an oil spill in

the marine cnvi1:0nment include effects on the biological environaent, on

existing socioeconomic con<iitions, on Marine .water quality~ ·~d en ~~ quality. OH spill cleanup activities can also have important ·elrec:t;f.

The potent:ial impacts of an- oil spill -on each of ·the areas is ·discilss!"1

oelow.

Effects of Oil on Marine .Ecosvs<..t=.;. A variety of JRaI"int;'1 ecosystems ;Ul<l species could be affected by the rele.ase of oi~. The mos,t, sl:inif.icarit

arc3~ of porcnti~l impac~ are in the intertidal zone, the salt marsh~,

and the bird popufations. Most of the impacts discussed J)elow are

conSidcrcd to hnvc .:.. low likelihood of occurrence and a. lower p·j:"obahil­

ity of significant long-t~rm effects.

The in~ertidal zone includes san4y b~aches and rocky intertidal

;:irc;:is. The ·crude oil from·~~ther offshore field m:iy'be expected to

c;:ius~ ~~l:i.L°"iV:ClY little long-t:crm damage t:o tneo-sandy beach fauna.

There !:i:l1 be significant though not total short-term mortality. If tjle

spill coincides with breeding or incubation pc~iods of sand dwellers,. incr:c:iscd mortnlity of eggs :i~d. far1ac or reduced spawni~g· wll~ TC$Ul't

from both the oil .ind· the oil-removal .techniques.

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ln· tbc event of an accidcnt:il spill of; ·-efil. that. cannot be· ~~ivencd

from ~he roc~y in~crtidal areas, th* d~iri~~t ·mor.tality will oc1:Ur.::amqng

th~ li•p~~s~ barnaeles: J!lUS~~ls, starfish, anemones, and:SOll4ll a~iae.

'Ihes~ anisals and plants ma~ die from the ill;iaediate ~oxic ~ffec~s of-any

of the light components of tne oil that have· not evaporated. TI1ey ~~­

alsa be· smothered and die from pro-longed torpo~ a.pd .. 5t~~~;cri">'"6ecause

of the i:oating of oil. t1nless ns>ntox;ic foms are .uS"ed~ any de~c~rgent

or dispersant placed on the ~gcky areas is likely to.increas~ ~irtality . ' of. most invertebrate. species~ Stra~- ·Wi;].l: hinder recolqni:z:ation; og the

inter~idal a-reas becaus~ ~t provides an unstable· -~_ubstr&,1.'Ull· fol;'' ses~i+e-­

~rgani~s. Furt:hemore. apPliC:ation of straw mar a~"_ra~ate .si-a~ations by physical damage to sessile· o.T;iii"ri.isms and by ccmpa.ct~o11 cof',oi:t into

the sedi3uent: and the bu~ows ,of animal~. ~l<activl! cleanin1· of' a·reas of

ext~nsivc mortality (probably ~he higher in~e~~idal .:one) Ji:ay e~courage

faster resettlement of the a~f ected areas~ .as long as only ~he 1)il i~

removed and d6~ris remains to· ~?vide sr.;ita}.'lle suhrtra;r.t:m·!ol!" larvae.

Howf'IV~r ~ even if cleanup is not effec-;ive, it is expected. that· ·~he

native sp~ies wfIL·recolonize ~he contaminated area-an~--!'!i~Ain: a ~ew

years will re~urn to pre-spill populati~n lev~t~~

Tne impacts of an oil spill re~c.l';inj.:?;he sal~ marshes in tj;1e San.ta

BaTbara Channel area will d~~nd ·primarily on the amount and type-of . - '

crude oil entering the marsh. Biological- impa£:_~s of a, minor vo·iume- oi _ crude oil reaching a s~lt marsh are not likely to be sigliifica~t or e~en

measurable in the long t~. The entry of a large volume. of c;1ude oil

into a sa.l t marsh is unlikely_. but if ie de:>·~~ :.occur, the aain b~ologiical

impacts ·are likely to be due to smothering of intcrtida·i oraantsms. ~c

ma.jor impac-cs arc likely to be those aff~ciing birds of -the ~alit ~arsh.

The ~xtcnt and signif ic.ince of .oil spill i.mpacts· on birds ·in sal~

marshes and on the open ocean will depend partly on the typ~ ::mii,funount

of oil but will also depend hcavily·on the time ofyeir. The i.!rllpact

will probably be gre:itcst during tlle spring and fall, when !'lligl;i~~~ons

occur. During the summer the impact on .re~i'dcnt feeding or n~$ting .

birds c:in be signific~nt. In the winter, al though tha nU!ilhcr of specie$

prcscnr is rclntively small, ·si~r:iif..tc:ant numbers -of w:itct,fowl (cspcciell;Y,

western grcli~s and common mu~r~) can be· affected. 1lte·s~ort-~cl'1D'bi~­logical impacts could, be severe if ; l~rgc proportiop of ~h.c breedin1·

population is affected. However, in ~cncr;!l. •. .th~ bi..-tl :P-9?.ll'ation~ ·~:re. expected- t2 ~ecovcr to PT"-!?Pill levels ·fairly rapialy. t1robiliHy ~ithin· OOC OT tWO breeding periods. I.Ong-term advc:rse i!apC:.~tS ~If 3: 'large Sp~li~ a.Te not expected to be significant. i'he poss~blc exccFt;ons;are im~~t~ on species tha.t are rare o~·cndangercd and species with SB&ll local

.breeding populations, restricted ran1es 1• and long·i~eration ·times.

These species may requiTe several years to regain pre-sp!li p<>pul'ation

lelfels.

Socioeconomic Impacts of Oil ~pills. All oil spill on· the waters of ·thct

Santa Barb:tra. Ch:mn~ may have significant effects on the socio~on011ic: environment d~periding primarily upon 4uration and of th~ spill and­

possibly upon t:he clean~~ activities. Commercial :ri.s1iing and related

businesses would inet}~ financial losses until fishint·.:a~tivities ~~~~. A major oil slick could ~rcvent kelp harvesting and: have ~ef.verse·

short-term finsncial effi:Ct5" on those involved. However, k~lp llarvest-. . . ing c9uld resume as soon :is cleanup act;vitie5 ~e cOIDple.te~ aµd· natut'ai

current and tidal forces have dissipa.tec:t the ·oil and cleansed the kel~•--Thc amount of unrecoverable oil spilled into-~the marine environment

will represent a. loss. of income tO "the producers, a ,product loss to th.e

consumer, and revenue los3es t~ local and state ta.~ing agencies •.

The introduction of crude oil into the existing enviTor.ment wou~~ ha~e :ldverse impacts.upon the existing aesthetic qualities of the an:~. Areas ·of potcnti~l adv~rsc aesthetic impact,s.inclU,de visib~e oil sii~k$ and oil depo~its on·the beaches, associated noxious o~ors, and activi~ies' associ~tcd with cleanup.

Although it is not possib!c to accur&ltcly estimate the prob~bl~ economic costs associated wit.h an oil, ·spill from the Standard; Oil pl:Lt:-

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foni5 or the Carpirttcri~ marin·c tcrmir.a.l. the ~onpmic costs eo~ld .be

significant and would produce adv~rse. short-term impacts.

A.-1 onshore spill that ul tim3.;dy reacl~ed the .shoreline and '.¢:wsed

oil eontamina~ion of the sh~rcline and oce~ ~~~~s w~ld resuit. in iz:ipacf;s similar to those for a. marine ,spfil. · ~: '!>il.;;.contaaina~;ea onshute land area woµld be unusable for· the«luration of the cleim~P·

Significant long-term effects aTe uriiike~ybecause an onshore s~)ill from the project 'f.a::ilities should not ):'each ·ag-rlcultural .or forestect !2.nds'.

Effects of Oil on Marine Water .Qu:i;litr. Some water qu~:Uty paii~~te~ JU.Y be affected. These include aesthetics_, bottom depo$its and~ bio­

st,imulantst dissolved oxygen. 'biological oxyien: demand$" nuttien:t:s,,

odor., and tranSll'i?sion of li~ht. Howevers expcrie~ce frOll pa~t spills

do-.:s -not ·i!"'..dic~1;~ -tj:l!!; ~i~gicant adve~se short-tera or lon1-tierm

.;:hanges are likely to.o~cur •

Air Oua:Hty Impacts. Only .a major oil spill occurring iJ:.-ld~r, a ·~p~ci:(ic

~at of conditions can be expe_cted to affect the local ~iit quality o

Significant effects are judged unlikely.

During· an oi:l spiU, the lighter fractions of the c7,tude oil ·wi1.l

evaporate~ ~Qssibly emitting large quan~~ties of hy4r9carbons ;o the a~ospherc. The effects of th~~e emissions on the rcgio~l aii: ~uality a.re difficult ;o as?ess. being,depe~dent.on-i:ari9'Js~oc-eanogr.apJµc and

meteorological' conditions at the time of the spU1. R~gional ~ontentra­tions of hydroearbons and p:ossiQiY of oxida~ts· couid,in~rea5e-~oticeabiy for a .short time in-the case of a large single spill and for a :longer

time in the case of a pr~longcd w~ll blowout.

A major fire assoc:i;ated· with an ol:l -".'ell blqwout ·ct?'..tld su~ist_•ui­

tially incrcnse sc;;vcrol pollutant emissions in t:he region~. pcrt~ntial!y causing signif;carit short-tel:!ll air qu:ility i111pacts·.

~R~A.GE

·MfNU~PAGE

-----:-· ··-- ---- ·--

'!~p:ict or Oil Spill Clc:imxp,J'roce<lurcs. Oil spill 'Cle~nup_ ac;~!it_~~s,

will minimize th~ effects of oil ~ont:imination; however., potentially ndvers~ :illlp~cts can.rcsutt frOll'thc cleanup procedqr~s. 'Ihe priaary

are<!.S of potential impact widl 'be beaches, roc;ty ~ntertid:ll zones, ~~ ~rsfies. Exp~ience with other,sp~lls,of siai~a~ types-of oil, inclu~in&

tile $.Mta ~:rbat·a spill, show that often- more bioloiical da&ge is .do.no by the cleanup than- by the oil itself. . ,

.Every oil spill should be gi'\fen individual consideration. and cleanup ~hould -be directed by -experienced pers,o~el who. ,will considei'. -· . the vulnerability of the affected areas ip planning.~d conducti~g

cleanup actions. It is 0mo~t illportant to realiz~ that there are ~t%c?bg

pres~es to clean up a spill immediately and that -thGse 'lres~ures uy · be stronger than the con~ern fo~·the-weifare ~f th~ bioioiical c~ity. 1bese pressures can i;:,ause ~ll•timed or ill•planned *leantiP'responses that do more harm to, the already stressed£lora and fauna.

INITIAL STUDY

The prbposed 11proj ect" is an autlu'.?riza.tion by. tqe C~mission

to allow the applicant (Exxon) ·to enter into an agreement wi.th

Chevr9n wherein Chevron would utilize one of±~~ ~lots on.~+at~

forn:. Heidi, which has 'been previously al>~zoved by the Comiitiss~on

and aJ.l other '"Responsi-bie Agencies•• I tq -dr.:ill into Exxon r',g

lease PRC 3133.1. ~evron-will drill a direct~onal well.,~:roin

Platform Heidi (Lease PRC 3150·. ~J into ianas l~as~g by Exxon

(Lease PRC 3133-.1}.. 0

This well·(s) will be drilled f-rqm an· ~xisting

facility (platform). and· i:!l.ciu!ied as part of Chevr.on • s 36'-:wel1' , ,

developmen~ plan alre~dy·~_pprov~d, by the Commission and p~eviously

described i.;t Chevron 1 s Eif:t: ·t=~ce~:t:,, :tj_i~t; :t:]le direction wil-lr be

eastward into lands -{Exxon's Lea·se- PRG 3il3~'.i.i' not incJ,ud~d-in :tr,e

subject EIR ..

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product::i:~n. will De c;c;>nducted· by Chevron ·in a ·manner cons·i.~tent.

wi1:.n existing zule.~. and .t"egulation~ ggy:erni~ opera.ti:cms·. ·!~om

P1atf orm Heidi-

Thefe will be D.2 ·otb~;' ~gh~Sf~ in. Chevi;on' s. previously:·

approved opercit±ons other tb~ a ·cha.n9e i:n tl:le direc',tion gf ~ts

drilli~g from Platform Heidi. Heweve~, ~in~e t~~;qi(~9e ~~the

direction of drilling will nece:ssit~e ac!d.i~iona'~ d·i~tanc:(e1 to ' ;-' t

enter into E~on·•s lease·, it may be construed as a·projic-;: whiclt

·may have a signi£icant ~ff~ct ·on the e.~~ironJ'l'lent which~~ld

require tbe environmen~l analysis. ·Therefore, ~ ititiai study

which discusses· and evalu•tes the environmental impact~ as;socia.ted

with Exxon's resumptio~ of driliing and the adequate cove~age of_

~he previous1y prepared EIR (SCH ~76032281) was ci~cu!_~~~ypursucmt

tc CEQA and ~~~ E~R @u~~~1ines.

Staff believes the previously pi;e,pared. EI~ {ScH .lf.7.¢).l'.>32281): a_dequa:t.-;..

ly cov~s the proposed proj~~t and comp1ies w;t~ CEQA.