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1/14/7, DJE

6. ACTION OF STATE LAND$ COMMISSION OF NOVEMBER 21, 1974,, AUTHOJUZING THE RESUMPTION. OF DRILLING Ol"E~~J:QNS UNDER STATE OIL AND GAS LE~SES PRC 3120, PRC 4000, AND PRC 1824; STAND!,;f.U) OIL COMPANY OF CALIFORNIA - W 9732, PRC 3150, PRC 4000, PRC 1824.

During consideration of Calendar Items 2 and 3 attached, temporary Chairman Roy Bell returned the chairmanship to Commissioner Kenneth Cory.

Commissioner Mervyn Dymally pointed out that it was his understanding that Standard Oil Company had agreed to submit to the Commission an environ­mental impact report on the project. Chairman Cory commented it was his understanding that responsibility for the EIR lay with the Commission and not Standard. However, he understood that Standard had agreed to pay for the preparation of an EIR by the Commission so that its application could proceed in an orderly fashion.

Mr. D. G. Couvil~on, Vice President, Western Operations, representing Standard Oil Company of Califorr1ia, appeared and confirmed that Standard had agreed that instead of pursuing the dispute through litigation, an EIR should be prepared. He added that it was his understanding arrange­ments had been made to postpone the lawsuit until action had been taken by the new Connnission .. ·On behalf of Standard, he requested that the matter be expedited so that, after preparation and approval of the EIR, Standard might be allowed to resume drilling.

Appearances: Bruce Rosenthal, represent'ng the office of Senator Omer L. Rains, 18th Senatorial District, California State Legislature. Mr! Rosenthal stated that the Senator had requested he deliver a statement from the Isla Vista Community Council, said statement being on file in the office of the State Lands Commission and by reference made a paj;t hereof. (Note: Mr. Rosenthal's statement was given out of sequence inasmuch as it related only to Minute Item 9--Atlantic Richfield Company.)

R. w. Mcinsfield, Legislative Advocate, represen~ing the State Building and Construction Trades Cou~cil, appeared and requested the Commission to approve -the resumption of drilli~g in the Santa Barbara Channel as expeditiously as possible.

Mr·. N. Gregory Taylor, Deputy Attorney General, suggested that since Ch~ii;in.an Cory is a party to die subject litigation, he turn the chairman­ship over to an9ther member, thereby abstaining from voting. The chairman­ship was therefore turned over to Commissioner Roy Bell. Mr. Taylor then· read into the record the proposed recommendati9ns. Connnissioner Dymally moved· that the recommendations be adopted, at which time tE?mporary Chairman 'Roy Bell seconded the motion, ~oting for the record that Conµnissioner dory had abstained. from voting.

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MINUTE ITEl~ NO. '6. (cONTD) Jlf ... AP a r I" , .. ,..

Upon motion duly made and· carried, the .fcO.lowing resoiution was adopted:

THE OOMMISSION:

l. RESCINDs THE STATE LANDS OOMMISSI0N RF,SOLUTIQNS OF NOVEMBER 21, 1974, APPROVING THE RESuMPTION OF DRII,1ING OPERATIONS FROM EXISTING FACILI­TIES· ON· -STA'l'E Q~L. AND GAS LEAS~; PRC 315o, PRC 4o00, AND PRC 1824.

2. DETERMINES THAT APPLICATIONS FOR SUCH RESUMPTION SHALL BE CONSIDERED BY THE COMMISSION ONLY UPON THE PREPARATION OF AN ENVIRONMENTAL IMPACT REPChtT PBEPARED IN COMPLIANCE W+TH THE. ENVIRONMENTAL. QUALITY A<JJ! OF 1970, AS AMENDED, AND IN ACCORDANCE WITH STATE POLICIES IN EFFECT AT THE TIME OF SUCH cONSIDERATION.

3. AUTHORIZES THE ATTORNEY GENERAL 'ro TAKE SUCH ACTION IN THE CASE OF CITY OF'SA:MTA BARBARA V. THE STATE LANDS CDMMISSION, SANTA BARBARA SUPERIORiCOURT NO. 10599i, INCLUDING THE ENTRY OF STIPULATIONS THEREIN, As ARE CONSISTENT WITH THIS RE.SOLUTION AND CURRENT STATE LANDS COMMISSION ~OLICIES.

Attachment: Calendar Items 2 and 3 (6 pages)

:J:. 35 .s; 1~:

CALENDAR. ITEM

2.

INFORMATION RlYJARDING ACTION OF STAT}!; LANDS OOMMISSION NOVEMBER 21, 1974,

AUTHORIZING THE RESUMPTION OF DRILLING OPERATIONS UNDER STATE 0 IL AND GAS LEAS~ PRC 3150 AND PRC 4000;

STANDARD OIL COMPANY OF CALIFORNIA

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State Leases PRC 3150 and PRC 4ooo (Calendar Item 23, Exhibit "A" attachad).

Lessee: Standard Oil Company of California.

County: Santa Barbara.

IssUf.~d: PRC 3150 - July 28, 1964; PRC 4000 - August 28, 1968f!

Acreage: PRC 3150 - 5,553; PRC 4000 - 204.

Bonus: PRC 3150 - $18,666,556; PRC 4ooo - $361,408.

Royalty: Sliding scale; minimum 16-2/3% - maximum 50%.

Structures: Platforms "Hope" and "Heidi" (size: 120' x 120'); water depth: Hope - 150'; Heidi - 125'; constructed1 in 1965.

We 11 Io cations : 120.

Wells Drilled: 65.

Cumulative Production: Oil - 19,691,150 bbls.; gas - 16,211,543 mcf.

Cumulative Royalty: $13,906,159.

Ct!rrent Production: Oil - 126,327 bbl./Mo.; Gas - 18~~ ,845 mcf. ' .. ,

Current Royalty: $113,865/Mo.

Attachment: Exhibit "A" (1;;~1e:ndar Item 23, November 21, 1974 meeting)

In December 1973 additional operational procedures were adopted for off­shore drilling operations conducted under State oil and gas iease. Such procedures mandate safety and oil ·spill equipment and procedures, training of operating.personnel in oil spill prevention, control and cleanup te9hni­ques, and fr~·quent and inten~e in,epecting and monitoring by State Lands Division representatives. Additiqnally, det~iled well c~sing requirements, blowout prevention equipµients clY.il1:ing, fluid programs, drilling practices, ,productio~ p~oced~r~s, inapecti·,ns, testing,,. plugging and record keeping are. s;?ecifica.;J)ly detailed in the. n·~w requirements.

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U:SSEfil:

COUNTY:

AREA:

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APPIIDVAJ~ OF RESUMPTION· OF DRILLING OPERATIONS ON ~TATE.·O~~· ~-GAS ~~PRC 3150.l J\HI)'PRC 4ooo4Dl

CJJU>!NTERIA 9FFSIIOBE ~LD, S.OOA BARBARA CQuNTY

PRC 3150.l and PRC 4ooool.

~tan~d Oil Company of California.

Santa :Barbara.

Carpinteria Offshore Field.

1.1/74 GWG

W.9?32

PERTINENT INFORMNrION: The purpose of the project is to complete the development of oil and gas reserves in known- reservoirs underlying :t1;1.e aub­ject leaaes froa the tW\> existing Platforms· 91Hape11 arid· 1tHeidi". ~e productive limits of these ret&ervoirs and the gerilG'e:I of the land.fJ underlying the developed portion of the le~es iri· quest:io,r.i are fully known as 'a result ·of prior drilling operat~onfi'~

Preserit geologic8.l information establiBhes t~at a total of a:> new wells would be the ma:xin:nmi number r~quired to develop the known reservoirs and can be .accompliaheci· ,using eXisting well loca~ions on the platforDts. ' In no evt!nt .will the total number o:f wells drilled from the two platforms exceed al. The proposed work would be accomplished with one drilling rig, vhich would be installed first at Platform "Heidi'° and subsequently moved to Platform "Hope"' o The pro grant will require no additional proq.uetion facilities on the platfo:~-ms, n.o additional ,.pipelin.es., and no additional l')nshore :racilitiee •

. The project -vill ·be eonducted· in accordance vi th the1 procedures for drilling and produ~tion operations, n~ ruleis and reg\th­ti~ns ot the State 'Lands Commisaion and ~le. State Diviaion of Oil and Gas. . .

ENVIRONMENTAL IMP AC:T:

EXHIBIT:

A ·35 s )~8

.L.i 19.Ccordance 'h..; th ~\,be·:i)tate Guidelines for Implementation 1of the 'c:ai·iforn~·?- Er:ivir?nmental Quality Act of 1970, as smended, a negat'.i.~~" d~claration ha.a been prepa.t'ed and circu­lat~d to concerned agencies and to the public.

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. ·.QL\f!NJ>.~L}TP!i "NO·. 2$ (poN.TD)y

IT IS mxl-O~ED ~T-THE cOHM!SS!ON:

1.. DETERMINE TiJ..AT AN ENVIRONMENTAL IMPACT ID1'PORT HAS NOT BEEN PREPARED FOR ms PROJECT Btr.r THAT A NmATIVE DEcLARATION HAS BEEN PREPARED BY .m

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2. CERTIFY WT !.flm NEGA'J!IVE DECLAllT"!ON (ND EIR 166) BAS BEEN' COMPLmlID L'f COMPLIANCE W~?.1H ~ cALiloRNIA E.NVIROltMENTAL 1QUALITY ,ACT OF i<i!o, AS ltl{F)JDED, AND '!HE S.TA!J."E QUIDELINES AND THAT THE COMMISSI')N HAS RE­VIEWED AND CONSIDERED THE INFORMATION OON~AINED THrnN.

3. Dl!.~ilRMJJf'.ri1 '1'.HAT THE PROJECT \iILL N0'1! ·HAVE A SIGNLW!CANT EFFECT ON THE ENVIRONMENT.

4. AUTHORIZE THE RESUMPTION OF DRIIJJ:NG OPERATIONS FROM EllsTING FACILITIES ON STA."'E OIL A."!D G..A.S LE..il~~- PRC 3150~1 ·AND PRC 4o00.l, IN .ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE LEASES, AND THE R~ AND REGULA-TIONS OF 1.'HE STATE LANOO COMM.ISSION •

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·A.. '35:· ;$ 'fat

CALENDAR ITEM

INFORMATION REGARDING ACTION OF STATE LANDS. JJMMISSION NOV»IBER 21, 1974,

AUTHORIZING THE RESUMPTION OF DRILLING OPERAT~ONS UNDER STATE OIL AND GAS ~\~ASE PRC 1824;

STANDARD OIL CX>MPANY OF CALIFORNIA

State Lease PRC 1824 (Calendar Item 24, Exhibit "A" attached).

Lerisee: Standard Oil CA;>mpany of California. •

. County: Santa Barbara.

Issued: January 10, 1957 •

.Acreage: 5,500.,

Bonus: $7,250,607.

Royalty: Flat Rate, Oil - 12-1/2%; Gas - lo%.

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Structures: Platforms "Hilda" and "Hazel" (size: Hilda -120' x 125'; l06'water depth; constructed 196o. Hazel - 110' x 113'; 100' water depth; constructed 1958).

Well locations: 66.

Wells Drilled: 49.

Cumulative Production: Oil •· 24,413,513 bbls.; Gas - 82, 939, 708 mcf.

Cumulative Royalty: $14,128,073.

Current Production: Oil - 16,861 bbl./Mo.; Gas - 100,080 mcf/Mo.

Current Royalty: il !1-, 932/Mo.

Attachment: Exhibit "A" (Calendar Item 24, November 21, 1974 meeting)

In December 1973 additional operational procedures were adopted for off­shore drilling operations conducted under State oil and gas lease. Suqh procedures mandate safety and oil spill equipment and procedures, training of operating personnel in o~l spill ~revention~ control and cleanup techni­·ques, and frequent ~d intense ~specting and monit9ring by State Lands ·D~viaion. repreaentativeac.- Additionally•· ~etailed well .caai~ requi~~~p.t~, .blo\jOut: pre~en~ion equipment;. ,dril+ing .t~uid pt9g~•' ·d~illing p~ac·~icest ip:rc;ic}uc~i~n .p~~cv~dure,3.t;. >;nspectione:; -~e~ting,,, pluggi;ng ~ci· :;record ~eepillg .. ,~~ :~f#9i;f~·~all:.y 4~tal+e~: ~n th~ ·n€fw· ~~*u:i.re1ll~A.~~~ · . ·

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LESSEE:

COUNTY:

AREA:

CAIJSNDAR I~

24·

APPROVAL OF RliSUMPTION OF DRILLING OPERATIONS ON STATE 9IL AND GAS IE.ASE PRC l824el

. SUMMERLAND OFFSHORE FIELD, SANTA B.ABBARA COUNTY

Standard Oil Company of California.

Santa Barbara.

Summerland Off shore Field.

ll/74 GWG

w 9732

PERTINENT INFORMATION: The purpose of the proje~t is to complete the development of the oil and gas reserves in the reservoirs underlying the subject lease from the two existing Platforms "Hll'da"- and "Bazel". The limits of these reservoirs and the geology of the lands underlying the developed portion of the lease in question are known as a resuli; of prior drilling operationso

Present geological information esta~li~ea_that a tot~ of 16 new wells would be the maximum number required to develop those reservc;>irs and ~an be accomplished using existing well locations on the platforms. In no eve~t will ~he total number of wells drilled from the two platforms exceed 16. The .pro­posed wrk would be accompliShed with one drilling rig, which would be installed first at Platform "Hilda" and subsequently mov.ed to Platform "Hazel". The program will require no addi­tional production facilities on the platforms, no additional pipelj.nes, and no additional onshore facilities.

The project will be conducted in accordance with the procedu,res for drilling and production operations, and rules an.d regula­tions of the State I.ands r...ommiasion and the State Division of Oil and Gas.

ENVIRONMENTAL IMPACT: In accordance with the State Guidelines for Implementation

EXHIBIT:

of the Califor?!ia Environmental Quality Act of 1970, as amended, a negative declaration has been prepared and circu­lated to concerned agencies and to the public.

A. Location Map.

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'CAtENDAR ITEM NO. 2r.. (CONTD) .....-:t...- 11•r 0 $lliil4t L J B A pa: .....

IT IS RECOMMENDED ~T·THE COMMISSION:

1. DETERMINE THAT AN ENVIRONMENTAL IMPACT REPORT HAS NOT BEEN PREPARED.FOR THI$ plloJECT BUT THAT A tmaATI'IE DECL..A.!t4TION HAS BEEN PREPARED BY THE

DIVISION.

2. CERTIFY· THAT THE NEGATIVE DECLARATION (ND EIR 165) HAS .BDN COMPIETED IN COMP.LIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT OP' 1970, AS AMENDED, AND THE1 STATE GUIDELI?mS AND ~T THE COMMISSION HAS RE­VIEWED AND CONSIDERED THE INFORMATION CONTAINED ~IN.

3o DETERMINE THAT THE PROJECT WILL NOT ·HAVE A SIGNIFICANT EFFE>OT ON THE

EaWIRONMENT.

4. AUTHQRIZE THE RESUMPTION OF ~RILLING OPERATIONS' FROM '!m{I$~G FACILITIES ON STATE OIL AND GAS LEASE PRC 1824.1, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE LEASE AND THE ·RULES AND REJULATIONS OF 'IHE STATE LANDS cOMMISSION.