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SANTA BARBARA COUNTY PLANNING COMMISSION Staff Report for Phillips 66 Cal-Coast Pipeline Replacement Project Hearing Date: January 27, 2016 Deputy Director: Kevin Drude Staff Report Date: January 6, 2016 Division: Energy & Minerals Case No.: 15DVP-00000-00004 Staff Contact: Kathy Pfeifer Environmental Document: Notice of Exemption Planner Phone #: 568-2507 per CEQA Statute Section 21080.23 Supervising Planner: Errin Briggs Supervising Planner Phone #: 568-2047 OWNER/APPLICANT Alfred Butch Lemos Phillips 66 Pipeline LLC 1580 East Battles Road Santa Maria, CA 93454 (805) 925-5795 AGENT & ENGINEER Brien Vierra FJ Technologies, Inc. P.O. Box 926 Atascadero, CA 93423 (805) 235-7943 Application Complete: August 5, 2015 1.0 REQUEST Hearing on the request of Brien Vierra, agent for Phillips 66 Pipeline, LLC (Phillips 66), to consider Case No. 15DVP-00000-00004, [application filed on April 6, 2015], for approval of a Development Plan in compliance with Section 35.82.080 of the County Land Use and Development Code, on property zoned AG-II-100, to construct and operate a 1.2-mile long, 6-inch diameter, buried crude oil pipeline within an existing pipeline corridor; and to determine the project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 21080.23. The application involves Assessor Parcel Number (APN) 101-020-080, located at 7476 Graciosa Road, in the Santa Maria Valley area, Fourth Supervisorial District. This site is identified as Assessor Parcel Number 101-020-080, located approximately two miles south of Orcutt and east of Highway 135, at 7476 Graciosa Road in the Santa Maria Valley area, Fourth Supervisorial District. Orcutt Hwy 135/ Graciosa Road Proposed Replacement Pipeline

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SANTA BARBARA COUNTY PLANNING COMMISSION

Staff Report for Phillips 66 Cal-Coast Pipeline Replacement Project

Hearing Date: January 27, 2016 Deputy Director: Kevin Drude

Staff Report Date: January 6, 2016 Division: Energy & Minerals

Case No.: 15DVP-00000-00004 Staff Contact: Kathy Pfeifer

Environmental Document: Notice of Exemption Planner Phone #: 568-2507

per CEQA Statute Section 21080.23 Supervising Planner: Errin Briggs

Supervising Planner Phone #: 568-2047

OWNER/APPLICANT Alfred Butch Lemos

Phillips 66 Pipeline LLC

1580 East Battles Road

Santa Maria, CA 93454

(805) 925-5795

AGENT & ENGINEER

Brien Vierra

FJ Technologies, Inc.

P.O. Box 926

Atascadero, CA 93423

(805) 235-7943

Application Complete:

August 5, 2015

1.0 REQUEST

Hearing on the request of Brien Vierra, agent for Phillips 66 Pipeline, LLC (Phillips 66), to

consider Case No. 15DVP-00000-00004, [application filed on April 6, 2015], for approval of a

Development Plan in compliance with Section 35.82.080 of the County Land Use and

Development Code, on property zoned AG-II-100, to construct and operate a 1.2-mile long, 6-inch

diameter, buried crude oil pipeline within an existing pipeline corridor; and to determine the project

is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to

State CEQA Guidelines Section 21080.23.

The application involves Assessor Parcel Number (APN) 101-020-080, located at 7476 Graciosa

Road, in the Santa Maria Valley area, Fourth Supervisorial District.

This site is identified as Assessor Parcel Number 101-020-080, located

approximately two miles south of Orcutt and east of Highway 135, at 7476

Graciosa Road in the Santa Maria Valley area, Fourth Supervisorial District.

Orcutt

Hwy 135/

Graciosa Road

Proposed

Replacement

Pipeline

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 2

2.0 RECOMMENDATION AND PROCEDURES

Follow the procedures outlined below and conditionally approve Case No. 15DVP-00000-00004

marked "Officially Accepted, County of Santa Barbara (January 27, 2016) County Planning

Commission Attachments A-D", based upon the project's consistency with the Comprehensive

Plan and based on the ability to make the required findings.

Your Commission's motion should include the following:

1. Make the required findings for approval of the project, including the CEQA findings,

specified in Attachment A of this staff report.

2. Determine the project is exempt from CEQA pursuant to State CEQA Guideline Section

21080.23 of CEQA, specified in Attachment C of this staff report.

3. Approve the project (15DVP-00000-00004) subject to the Conditions of Approval,

specified in Attachment B of this staff report.

Refer back to staff if the Commission takes other than the recommended action for appropriate

findings and conditions.

3.0 JURISDICTION

The Review Authority table in Section 35.82.080.B.3 of the County Land Use and Development

Code (LUDC) identifies that Development Plans which are outside of the review authority of the

Planning Director and Zoning Administrator are under the authority of the Planning Commission.

Therefore, the Planning Commission is the decision maker for the proposed Development Plan.

4.0 ISSUE SUMMARY

The proposed new pipeline would be an in-kind replacement of an existing pipeline, and the new

pipeline would be located in the same corridor as the existing pipeline. Because the project is a

replacement in-kind, it is Statutorily exempt from the California Environmental Quality Act

(CEQA), pursuant to Section 21080.23 (see Attachment C of this staff report). In order to

preemptively reduce project impacts to the maximum extent feasible, the applicant has included

specific avoidance and reduction measures in the project description. Additionally, staff has

recommended conditions to ensure the project complies with County policies that protect natural

resources (see Sections 6.2 and 6.3 and Attachment B of this staff report).

The new pipeline would replace an existing pipeline that is approximately 70 years old, thereby

reducing operational risks associated with transporting crude oil. The new pipeline would be

equipped with an automatic shutdown system that triggers the automatic shutdown and isolates

the line, if necessary, when operating parameters (flow and pressure) deviate from the normal

operating range. The new pipeline would be equipped with motor operated isolation valves at

the start and end of the pipeline as well as a check valve at the end of the pipeline to prevent a

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 3

backflow. The isolation valves would allow for pipeline shutdown in case of an emergency,

isolation of leaks, and use of smart pigs to clean and maintain the entire length of the line. In

case of an upset, the shipping pumps would be shut down automatically, shutting down and

removing the source of crude into the pipeline. In addition, the applicant’s control center would

actively monitor the operating conditions of the line. The control center would receive alarms if

the operating parameters would go outside the normal operating range. The control center would

monitor the pipeline 24 hours a day.

Under oversight by the State Fire Marshall, the pipeline, valves, and fittings would be tested per

Federal and State Regulations before they are put into service as well as maintained per Federal

and State regulations while they are in service. The applicant would implement the following

measures to ensure the safe condition and operations of the pipeline: Cathodic protection to

prevent corrosion; smart-pigging of the line to determine line integrity; a Supervisory Control

and Data Acquisition (SCADA) system to actively monitor pipeline conditions; pigging

operations to clear pipeline debris and detect for anomalies; and installation of a corrosion probe

to monitor potential internal corrosion of the system.

The existing pipeline would be purged, cleaned and abandoned in place. Exposed portions of the

existing pipeline would be cut, capped and removed. Leaving the buried portions of the existing

pipeline in place minimizes project impacts to an onsite drainage and oak woodland, which could

result from its removal.

5.0 PROJECT INFORMATION

5.1 Site Information

Site Information

Comprehensive Plan Designation Inland, Rural, A-II-100, 100-acre minimum parcel size

Ordinance, Zone Land Use and Development Code (LUDC), AG-II-100, 100-acres

minimum lot size

Site Size 644.0-acres

Present Use & Development Cattle grazing, oil and gas development (pipeline)

Surrounding Uses/Zone(s) North: AG-II-100, open space, cattle grazing

South: AG-II-100, one residence, agriculture (vineyards), oil and

gas development, cattle grazing

East: AG-II-100, oil and gas development, open space,

agriculture (vineyards), cattle grazing

West: AG-II-100, Graciosa Road, State Highway 1, State

Highway 135, oil and gas development

Access State Highways 1 and 135 and Graciosa Road

Other Site Information Within Orcutt State-Designated Oil Field

Williamson Act Contract 14-AP-005

Public Services Water Supply: None

Sewage: None

Fire: County Fire Protection

Police Services: County Sheriff

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 4

5.2 Setting

The existing pipeline corridor is located in the Santa Maria Valley area approximately two miles

south of the town of Orcutt in a rural area characterized by gently sloping grasslands used for

cattle grazing, agricultural production, and oil and gas development. The existing pipeline

corridor runs in a northeast to southwest direction. Elevation increases gradually from

approximately 450 feet above sea level at the southwest end to 700 feet at the northeast end of

the corridor. Soils within the site are sandy and classified as non-prime.

A drainage/creek travels northeast to southwest mostly parallel to the existing pipeline corridor.

The existing pipeline enters the drainage in two different locations for several hundred feet. The

exposed line is supported by stanchions that have been placed within the drainage; erosion occurs in

the drainage at some of the stanchion and pipeline locations.

Vegetation along approximately 75% of the pipeline corridor is relatively sparse and consists of

non-native annual grassland that is grazed by cattle. In the northeast corner of the pipeline corridor,

Coast Live Oaks (Quercus agrifolia), and willow (Salix) trees are located near the drainage

crossings.

Special-status wildlife species that could potentially occur in the project corridor or its vicinity

(300-ft buffer) include: Coast horned lizard (Phrynosoma blainvillii), Western spadefoot toad (Spea

hammondii), and American badger (Taxidea taxus); suitable habitat for these species is located

within the pipeline corridor and its vicinity.

At the northeastern end of the pipeline corridor is an existing oil and gas facility, operated by the

Pacific Coast Energy Company (PCEC). This facility contains above-ground equipment used for

processing oil and gas, including storage tanks, separators, and a Lease Automatic Custody

Transfer (LACT) unit. The LACT unit feeds crude oil into the existing pipeline for transport to

market. Six Coast live oak trees are growing adjacent to the LACT unit just outside of the facility

footprint.

An existing dirt road leads from the oil and gas facility to Graciosa Road, paralleling the pipeline

corridor. At the southwest end of the pipeline corridor, an existing pipeline valve box is located

next to Graciosa Road.

5.3 Description

The request is for a Development Plan (Case No. 15DVP-00000-00004) to allow for replacement

of a 1.2-mile crude oil pipeline located east of Graciosa Road and approximately two miles south of

Orcutt. Approximately half of the existing 6-inch diameter Cal-Coast pipeline lies within the State-

Designated Orcutt Oilfield, originating on the Pacific Coast Energy Company (PCEC)’s oil and gas

processing facility on the Cal-Coast Lease and transports the crude oil to the Phillips 66’s 8-inch

pipeline known as Line 353. Line 353 runs parallel to Graciosa Road and transports crude oil to the

Orcutt Pump Station in Orcutt (see page D-1 of Attachment D of this staff report).

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 5

The proposed 1.2-mile, 6-inch diameter pipeline would replace the existing Cal-Coast pipeline, and

the new pipeline would be located within the existing pipeline corridor. However, instead of tying

into Line 353, as the existing Cal-Coast pipeline does, the proposed new pipeline would tie into

Phillips 66’s 12-inch diameter Line 300 (see page D-2 in Attachment D of this staff report). Line

300 and Line 353 pipelines are both located adjacent to Graciosa Road and run parallel to each

other in a northerly direction to the Orcutt Pump Station. Currently, the Line 300 system transports

crude oil production originating from offshore Platform Irene and the Lompoc area. The Line 353

system currently transports crude oil, originating from the Orcutt Oil Field collected by the

existing Cal-Coast pipeline. The Orcutt field is operated by the Pacific Coast Energy Company

(PCEC). The project would consolidate crude oil production from various sites into one primary

transportation system (Line 300). Line 353 would be left idled in place.

Specifically, the proposed project includes installation, operation, and maintenance of the following

structures:

• A new 1.2-mile, 6-inch diameter buried pipeline, located within the an existing pipeline

corridor, beginning at the Cal-Coast Lease and terminating at Line 300 near Graciosa Road.

• A flow metering skid with an approximate 20x40-foot footprint and a maximum height of

approximately eight (8) feet and a pig launcher facility with an approximate 20x30-foot

footprint and an approximate height of three (3) feet to be located within the footprint of

PCEC’s existing oil and gas facility on the Cal-Coast Lease.

• A pig receiver facility with an approximate 20x30-foot footprint and an approximate height of

three (3) feet with a below-grade pipeline tie-in to Line 300 to be installed adjacent to an

existing valve box for Line 300 near Graciosa Road.

Project activities would include surveying and staking the pipeline right-of-way (ROW), clearing

and grading the ROW, excavating a trench (18-inches wide x 4- to 5-feet deep), laying sections of

pipe in the trench, and backfilling the trench. The trench would be backfilled after each section of

pipe is laid in the trench. The trench would be excavated and backfilled in three increments, with no

more than a maximum of 2,000 feet open at one time. Following completion of installation

activities, the project site would be compacted and restored to its natural contours and areas of

disturbance would be re-vegetated. The pipeline would be directionally drilled, for a length of

approximately 1,400-feet, in the pipeline corridor where it crosses under a drainage and an oak

woodland. The directional drilling would be at an approximate depth of 12 to 15-feet below the

drainage flowline.

The new pipeline would replace an existing pipeline that is approximately 70 years old, thereby

reducing operational risks associated with transporting crude oil. The new pipeline would be

equipped with an automatic shutdown system that triggers the automatic shutdown and isolates

the line, if necessary, when operating parameters (flow and pressure) deviate from the normal

operating range. The new pipeline would be equipped with motor operated isolation valves at

the start and end of the pipeline as well as a check valve at the end of the pipeline to prevent a

backflow. The isolation valves would allow for pipeline shutdown in case of an emergency,

isolation of leaks, and use of smart pigs to clean and maintain the entire length of the line. In

case of an upset, the shipping pumps would be shut down automatically, shutting down and

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 6

removing the source of crude into the pipeline. In addition, the applicant’s control center would

actively monitor the operating conditions of the line. The control center would receive alarms if

the operating parameters would go outside the normal operating range. The control center would

monitor the pipeline 24 hours a day.

Under oversight by the State Fire Marshall, the pipeline, valves, and fittings would be tested per

Federal and State Regulations before they are put into service as well as maintained per Federal

and State regulations while they are in service. The applicant would implement the following

measures to ensure the safe condition and operations of the pipeline: Cathodic protection to

prevent corrosion; smart-pigging of the line to determine line integrity; a Supervisory Control

and Data Acquisition (SCADA) system to actively monitor pipeline conditions; pigging

operations to clear pipeline debris and detect for anomalies; and installation of a corrosion probe

to monitor potential internal corrosion of the system.

Buried portions of the existing pipeline would be cleaned, purged, and abandoned in-situ. Exposed

portions of the pipeline and its support system (stanchions) in the drainage would be removed (cut

and capped).

Construction activities are estimated to last two to three months. Approximately 10 to 15 workers

would be onsite during project activities. The project would involve use of the following

equipment: Backhoe (2-3); trencher (1); excavator (2); sideboom (2); hydrocrane (1); dozer (1);

concrete/slurry trucks; tractor-trailer rigs; pickup trucks.

The project would cover a footprint of approximately four acres. Approximately 1,500 cubic yards

(CY) of both cut and fill and 100 CY of both import and export would be necessary to carry out the

project. Approximately 2.3 acres of vegetation would be disturbed or removed. All areas of

disturbance would be re-vegetated per the project’s County-approved Revegetation Plan, dated July

24, 2015.

Regional access to the project site would be provided by Highway 1/Highway 135 and Graciosa

Road and local access would be provided by existing interior agricultural and lease roads. The

project site would be gated to prevent public access during construction operations.

The project has a low potential of impacting California Tiger Salamander (CTS) (Ambystoma

californiense) and California Red-Legged Frog (CRLF) (Rana draytonii). Inclusion of the

following measures adds protection to reduce potential effects on wildlife, such as the California

Tiger Salamander (CTS) (Ambystoma californiense), California Red-Legged Frog (CRLF) (Rana

draytonii), Coast horned lizard (CHL) (Phrynosoma blainvillii), Western Spadefoot Toad (WST)

(Spea hammondii), and American Badger (Taxidea taxus):

• A pre-activity biological survey would be conducted within 30 days of the start of project

activities. All work areas and access routes to the work areas would be delineated with stakes

and flagging. These areas and a buffer would be re-surveyed by a qualified-biologist for sign of

sensitive species and/or habitat.

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 7

• A qualified-biologist would present environmental awareness training to all onsite workers

prior to the start of the first day of work for the project. The presentation would include

information about the status of CTS, CRLF, WST, CHL, American Badger, and other special-

status species; their legal protections; reasons for their declines; identifying features of the

species; and what to do if one is observed. The presentation would be repeated as necessary for

new workers as they come onto the project site.

• Wildlife escape ramps would be set in open trenches prior to the end of each work day.

• Prior to the start of project activities, areas of excavation in which sediment could potentially be

transported off of the project site via storm water run-off would be enclosed with silt fencing or

similar fabric material. The fence would be buried six inches deep and extend at least 30 inches

above ground.

• A qualified-biologist would monitor all vegetation clearing during the project. The top 6-inches

of topsoil would be salvaged and segregated for replacement as topsoil upon project

completion.

• A qualified-biologist would monitor minor excavation of the bed and banks of the intermittent

drainage that the pipeline crosses to remove the existing line. The drainage would be avoided

by use of directional drilling a minimum of 12 feet under the drainage to install the new pipe. If

access to the drainage is necessary, only foot-traffic would be allowed.

• All work areas required for directional drilling would be located in non-sensitive upland areas.

• The construction corridor would be adjusted as much as possible to minimize or avoid potential

damage to oak trees.

• Staging, parking, and storage of project-related equipment and vehicles would be limited to

previously disturbed areas to the extent feasible.

• Site preparation and grading within drainage ditches would occur during the non-rainy season

of the year only (April 1 through November 31).

The property is comprised of 644 acres, zoned AG-II-100 and is located at 7476 Graciosa Road,

Santa Maria in the Fourth Supervisorial District. The project site is located on APN 101-020-080.

5.4 Background Information

The existing Cal-Coast pipeline was constructed as early as the 1940’s. Although the pipeline is

monitored by the control center, it currently is not protected by an automatic shut down system.

The pipeline has historically served as a line for several inland oil production sources. However,

the pipeline currently only transports crude oil produced from the Pinal, Diatomite, Newlove, and

Cal-Coast Leases, which are operated by the Pacific Coast Energy Company (PCEC). Crude oil

production is initially separated at PCEC’s existing oil and gas facilities on each lease before it

enters the Cal-Coast line, which then feeds into Line 353 for transport to the Orcutt Pump Station

and eventually to its final destination at the Santa Maria Refinery in San Luis Obispo County.

6.0 PROJECT ANALYSIS

6.1 Environmental Review

A Notice of Exemption was prepared for the proposed project under the requirements of the

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 8

California Environmental Quality Act (CEQA) and is included herein as Attachment C. The

project can be found statutorily exempt from CEQA pursuant to State CEQA Section 21080.23,

which applies to projects which consist of the inspection, maintenance, repair, restoration,

reconditioning, relocation, replacement, or removal of an existing pipeline. The proposed new

pipeline would be an in-kind replacement of an existing 70-year old pipeline, and the new

pipeline would be located in the same corridor as the existing pipeline. Because the project is a

replacement in-kind, it is Statutorily exempt from the California Environmental Quality Act

(CEQA), pursuant to Section 21080.23 (see Attachment C of this staff report). In order to

preemptively reduce project impacts to the maximum extent feasible, the applicant has included

specific measures in the project description. Additionally, staff has recommended conditions for the

project to comply with County policies that protect natural resources (see Sections 6.2 and 6.3 and

Attachment B of this staff report).

6.2 Comprehensive Plan Consistency

REQUIREMENT DISCUSSION

Land Use Element Development Policy 4:

Prior to issuance of a development permit, the

County shall make the finding, based on

information provided by environmental

documents, staff analysis, and the applicant,

that adequate public or private services and

resources (i.e., water, sewer, roads, etc.) are

available to serve the proposed development.

Consistent: The proposed project would

include replacement of an existing, buried

crude oil pipeline and installation of associated

equipment (i.e. metering skid, pig

launcher/receiver facilities, tie-in point).

Vehicular access to the site would continue to

be provided by Highway 1/135 and Graciosa

Road and existing interior agricultural

roadways; no new roads would be required.

Project operations would not require water or

sewage. Water used during construction

activities (i.e. dust suppression) would be

brought in from the applicant’s Orcutt Pump

Station and water may be provided by PCEC’s

oil and gas facility onsite. The project would

be served by the County Fire Department and

the County Sheriff Department. There are

adequate private and public services and

resources available to serve the proposed

project. Based on the foregoing, the project is

consistent with this policy.

Land Use Element

Historical/Archaeological Sites Policy 2: When developments are proposed for parcels

where archaeological or other cultural sites are

located, project design shall be required which

avoids impacts to such cultural sites if

possible.

Consistent: There are no previously

documented archaeological sites that occur

within the project area, and no archaeological

or cultural resources were observed during the

Phase I survey performed by Archaeologist

Brent Leftwich, Ph.D., R.P.A. in May 2015.

The Phase I survey recommends that upon

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 9

REQUIREMENT DISCUSSION

discovery of a potential resource, work in the

vicinity would be required to halt and would

not be able to resume until the find is evaluated

and treated according to the County’s

Archaeological Guidelines (Conditions 6 of

Attachment B). Based on the foregoing, the

project is consistent with this policy.

Land Use Element Visual Resource Policy 2:

In areas designated as rural on the land use

plan maps, the height, scale, and design of

structures shall be compatible with the

character of the surrounding natural

environment, except where technical

requirements dictate otherwise. Structures shall

be subordinate in appearance to natural

landforms; shall be designed to follow the

natural contours of the landscape; and shall be

sited so as not to intrude into the skyline as

seen from public viewing places.

Consistent: The proposed project would

include the following above ground structures:

an approximate 20x40-foot metering skid with

an approximate height of eight feet, an

approximate 20x30-foot pig launcher with an

approximate height of three feet, and a an

approximate 20x30 pig receiver with an

approximate height of three feet. The skid

meter and pig launcher would be located at an

existing oil and gas facility on the Cal Coast

Lease, which contains above-ground

equipment much larger in size. These

structures would not be viewable from public

viewing places. The pig receiver would be

located near Graciosa Road next to an existing

valve box. This structure’s height of three feet

would not intrude into the skyline from public

viewing places. The above ground piping

would be painted a tan/beige color to blend in

with the surrounding natural environment.

Based on the foregoing, the project is

consistent with this policy.

Land Use Element Hillside and Watershed

Protection Policy 1: Plans for development

shall minimize cut and fill operations. Plans

requiring excessive cutting and filling may be

denied if it is determined that the development

could be carried out with less alteration of the

natural terrain.

Consistent: The proposed new pipeline would

replace an existing crude oil pipeline. The new

pipeline would be 1.2 miles in length and

buried next to the existing line within the same

pipeline corridor. Grading activities for the

project would be limited to installation of the

new line and would include grading estimates

of approximately 1,500 cubic yards (CY) of cut

and fill and 100 CY of import and export. Use

of the existing pipeline corridor would avoid

construction of a new pipeline corridor and

environmental impacts associated with

development of previously undisturbed areas.

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 10

REQUIREMENT DISCUSSION

Land Use Element Hillside and Watershed

Protection Policy 2:

Consistent: Grading activities for the project

would be limited to installation of the new line

and would include grading estimates of

approximately 1,500 cubic yards (CY) of both

cut and fill and 100 CY of both import and

export. Use of the existing pipeline corridor

would avoid construction of a new pipeline

corridor and environmental impacts associated

with development of previously undisturbed

areas. The existing pipeline would be cleaned,

purged, and abandoned in-situ, except for areas

of the line which are exposed. Exposed areas

would be removed. Leaving portions of the

existing buried pipeline in place reduces

impacts to the onsite drainage and oak

woodland.

To ensure protection of native vegetation and

trees, a qualified biologist would monitor

vegetation removal required for trenching of

the pipeline. All grading, trenching, ground

disturbance, construction activities and

structural development is required to occur

beyond six feet of the dripline for all oak trees

(see Condition 3 of Attachment B). Equipment

storage is required to be limited to previously

disturbed areas and located 100 feet from any

sensitive biological resources (see Condition 4

of Attachment B). Following pipeline

installation, the project site would be restored

to its natural contours and areas of disturbance

would be re-vegetated per the project’s

County-approved Revegetation Plan (see

Condition 5 of Attachment B).

The existing pipeline visibly crosses an

intermittent, unnamed drainage at two

locations. Vegetation near the drainage

crossings includes Coast Live Oak trees and

Willow trees. To avoid impacts to the drainage

and surrounding habitat, the new pipeline

would be directionally drilled at a depth of 12

to 15-feet below the drainage flowline. The

All developments shall be designed to fit the

site topography, soils, geology, hydrology, and

any other existing conditions and be oriented

so that grading and other site preparation is

kept to an absolute minimum. Natural

features, landforms, and native vegetation,

such as trees, shall be preserved to the

maximum extent feasible. Areas of the site

which are not suited to development because of

known soil, geologic, flood, erosion or other

hazards shall remain in open space.

Land Use Element Hillside and Watershed

Protection Policy 3: For necessary grading

operations on hillsides, the smallest practical

area of land shall be exposed at any one time

during development and the length of exposure

shall be kept to the shortest practicable amount

of time. The clearing of land should be avoided

during the winter rainy season and all measures

for removing sediments and stabilizing slopes

should be in place before the beginning of the

rainy season.

Land Use Element Hillside and Watershed

Protection Policy 5: Temporary vegetation,

seeding, mulching, or other suitable

stabilization method shall be used to protect

soils subject to erosion that have been

disturbed during grading or development. All

cut and fill slopes shall be stabilized as rapidly

as possible with planting of native grasses and

shrubs, appropriate non-native plants, or with

accepted landscaping practices.

Phillips 66 Cal-Coast Pipeline Replacement Project/15DVP-00000-00004

Hearing Date: January 27, 2016

Page 11

REQUIREMENT DISCUSSION

existing pipeline would be removed (cut and

capped) at the points where it is exposed over

the drainage, and the existing pipeline supports

would be removed from the drainage flowline.

A qualified-biologist would monitor the work

in the drainage. Project activities that would

occur within the drainage would be restricted

to the non-rainy season of the year only (See

Condition 1 of Attachment B).

The project description includes several

measures which would minimize disturbance

and alteration of surrounding areas, such as

reducing the size of work areas and adjusting

the construction corridor to avoid sensitive

areas. The trench would be excavated and

backfilled in three increments, with no more

than a maximum of 2,000 feet open at one time.

(See Condition 1 of Attachment B). Based on

the foregoing, the project is consistent with

these policies.

Land Use Element Hillside and Watershed

Policy 4: Sediment basins (including debris

basins, desilting basins, or silt traps) shall be

installed on the project site in conjunction with

the initial grading operations and maintained

through the development process to remove

sediment from runoff waters. All sediment

shall be retained on site unless removed to an

appropriate dumping location.

Land Use Element Hillside and Watershed

Protection Policy 6: Provisions shall be made

to conduct surface water to storm drains or

suitable watercourses to prevent erosion.

Drainage devices shall be designed to

accommodate increased runoff resulting from

modified soil and surface conditions as a result

of development. Water runoff shall be retained

onsite whenever possible to facilitate

groundwater recharge.

Land Use Element Hillside and Watershed

Consistent: The existing pipeline route

crosses over a drainage, where it is visibly

exposed at two locations. The proposed new

pipeline would be directionally drilled 12 to 15

feet below the drainage flowline to avoid

crossing the drainage. In addition, the applicant

includes measures to help reduce erosion and

sediment into the drainage by minimizing

alteration of the bed and banks of the drainage,

limiting the minor excavation work within the

drainages to the non-rainy season of the year,

and limiting storage and staging areas to

designated areas located away from the

drainage banks. These restrictions would

reduce the potential for sediment to be carried

into the drainages by storm water runoff (See

Condition 1 of Attachment B) both during

construction and project operation. Per the

Regional Water Quality Control Board’s

Certificate Number 34215WQ11, the applicant

would also employ several erosion sediment

control measures to prevent storm water

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Page 12

REQUIREMENT DISCUSSION

Protection Policy 7: Degradation of the water

quality of groundwater basins, nearby streams,

or wetlands shall not result from development

of the site. Pollutants, such as chemicals, fuels,

lubricants, raw sewage, and other harmful

waste, shall not be discharged into or alongside

coastal streams or wetlands either during or

after construction.

Land Use Element Streams and Creeks

Policy 1: All permitted construction and

grading within stream corridors shall be carried

out in such a manner as to minimize impacts

from increased runoff, sedimentation,

biochemical degradation, or thermal pollution.

discharge during construction (see Condition

18 of Attachment B). Implementation of the

above measures would help ensure that

sediment and runoff water is retained onsite to

reduce potential impacts to water quality.

The applicant would also implement the

Horizontal Directional Drilling Management

Plan as approved by the County Planning and

Development Department, which describes

measures to implement in the event of a fluid

release during drilling operations (See

Condition 8 of Attachment B). Based on the

foregoing, the project is consistent with these

policies.

6.3 Zoning: Land Use and Development Code Compliance

The project site is located on land zoned for agricultural use (AG-II) under the County LUDC.

Oil and gas development is a permitted use in the AG-II zone district per LUDC Section

35.52.040.B (Table 2). Approval of a Development Plan is required for all pipelines which are

not incidental to oil and gas production operations per LUDC Section 35.52.080.A. Oil and gas

pipelines located in the inland area outside of industry facilities are subject to development

standards under LUDC Section 35.55.060.B. The proposed project meets all applicable LUDC

requirements for processing of a Development Plan.

6.3.1 Compliance with Land Use and Development Code Requirements

LUDC Section 35.52.080.B

1. Standards applicable to pipeline operations. The following standards shall apply to

pipeline projects:

a. Zone regulations not applicable. The regulations in Article 35.2 (Zones and Allowable

Land Uses), for the applicable zones in which oil and gas pipelines are allowed, shall

not apply to the oil and gas pipelines. See Table 5-2 (Allowed Uses and Permit/Plan

Requirements for Energy Facilities in the Oil and Gas Area) above.

Oil and gas pipelines are allowed in the AG-II zone district; therefore, regulations in

Article 35.2 shall not apply to this project.

b. Delivery hours. Except in an emergency, materials, equipment, tools, or pipes shall not

be delivered to or removed from a pipeline construction site through streets within a

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residential zone between the hours of 9 p.m. and 7 a.m. of the next day.

No streets within a residential zone would be used to access the project site. One

residence is located within approximately 200 feet of the pipeline corridor near

Graciosa Road. Pipeline construction hours, including deliveries to and removals from

the construction site, would be restricted to 7:00 AM to 4:00 PM within 1600 feet of the

existing residence and 7:00 AM to 6:00 PM outside the 1600-foot buffer of the existing

residence (See Condition 7 of Attachment B).

c. Post-installation requirements. After completion of back filling and compacting of the

pipeline ditch, the site shall be returned to grade where practical and the excess soil

shall be removed to an appropriate disposal site.

Following project construction, the pipeline right-of-way (ROW) and all work areas

would be restored to pre-construction conditions with respect to natural contour and

grade. The County-approved Revegetation Plan (dated July 24, 2015) associated with

the site would require restoration activities, such as hydro-seeding with a specific local

seed mix (see Condition 5 of Attachment B). Excess soil would be removed from the

site to an appropriate disposal facility within 30 miles of the project site.

d. Drainage. During construction of the pipeline, there shall not be permanent blocking

of surface drainages.

The proposed pipeline corridor crosses a drainage at two locations. The new pipeline

would be directionally drilled below the drainage (for approximately 1,400-feet in

length and 12 to 15-feet deep) to avoid potential impacts to the drainage and

surrounding areas. In addition, soil stockpiling activities and staging and storage of

vehicles and equipment would be confined to designated areas which are set back a

minimum distance of 100-feet from all drainages (see Condition 4 of Attachment B).

The project would not permanently block surface drainages during construction.

e. Location of pipeline corridor. A pipeline corridor shall be sited so as to avoid

significant impacts to resources (e.g., aquatic habitats, and archaeological areas) to

the maximum extent feasible.

The new pipeline would be buried within the existing pipeline corridor. Project

activities within the construction corridor would include vegetation clearing, excavation

for pipeline installation, and removal of existing exposed pipeline and stanchions,

which support the pipeline, in the drainage. The applicant would directionally drill

under the drainage and an oak woodland to avoid impacting sensitive habitats. In

addition, the applicant would conduct pre-activity biological surveys, install silt fencing

where appropriate, and avoid the rainy season for work in the drainage (see Condition 1

of Attachment B). In addition, oak trees and sensitive habitats would be protected and

avoided during construction activities (see Conditions 3 and 4 of Attachment B).

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f. Spills. Where pipeline segments carrying hydrocarbon liquids pass through sensitive

resource areas (e.g., aquatic habitats) as identified by the project environmental

review, provisions identified in the environmental review shall be applied to minimize

the amount of liquids released in the sensitive areas in the event of a spill. The

potential for damage in those areas shall be minimized by considering spill volumes,

duration, and trajectories in the selection of a pipeline corridor. In addition,

appropriate measures for spill containment and cleanup (e.g., catch basins to contain a

spill) shall be included as part of the required emergency response plan.

The existing pipeline corridor traverses Coast Live Oak, willow trees, and a drainage.

The proposed pipeline would be drilled 12-15 feet under the drainage, willows and oak

woodland. In addition, exposed segments of the existing line would be removed (cut

and capped) in areas where it crosses the drainage. Installing the pipeline below the

drainage flowlines instead of allowing it to cross the drainages above the flowlines

would reduce the risk of a spill or leak into sensitive areas during pipeline operation.

The new pipeline would replace an existing pipeline that is approximately 70 years old,

thereby reducing operational risks associated with transporting crude oil. The new

pipeline would be equipped with an automatic shutdown system that triggers the

automatic shutdown and isolates the line, if necessary, when operating parameters (flow

and pressure) deviate from the normal operating range. The new pipeline would be

equipped with motor operated isolation valves at the start and end of the pipeline as

well as a check valve at the end of the pipeline to prevent a backflow. The isolation

valves would allow for pipeline shutdown in case of an emergency, isolation of leaks,

and use of smart pigs to clean and maintain the entire length of the line. In case of an

upset, the shipping pumps would be shut down automatically, shutting down and

removing the source of crude into the pipeline. In addition, the applicant’s control

center would actively monitor the operating conditions of the line. The control center

would receive alarms if the operating parameters would go outside the normal operating

range. The control center would monitor the pipeline 24 hours a day.

Under oversight by the State Fire Marshall, the pipeline, valves, and fittings would be

tested per Federal and State Regulations before they are put into service as well as

maintained per Federal and State regulations while they are in service. The applicant

would implement the following measures to ensure the safe condition and operations of

the pipeline: Cathodic protection to prevent corrosion; smart-pigging of the line to

determine line integrity; a Supervisory Control and Data Acquisition (SCADA) system

to actively monitor pipeline conditions; pigging operations to clear pipeline debris and

detect for anomalies; and installation of a corrosion probe to monitor potential internal

corrosion of the system.

In addition, the applicant’s existing State Fire Marshall Plan is comprehensive of the

applicant’s 400-mile network of pipelines and includes emergency response procedures

to address possible upset conditions on all of the pipeline types in their network.

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To reduce the risk of drilling fluids from directional drilling activities spilling, the

applicant would implement a Horizontal Directional Drilling Management Plan (See

Condition 8 of Attachment B). The applicant would also implement several

preventative measures and procedures to minimize the potential for spills and leaks of

liquids in sensitive areas, including conducting pre-activity biological surveys, locating

the drill staging areas in non-sensitive upland areas, and training staff to watch for and

immediately report inadvertent releases and leaks during construction (see Conditions 1

and 4 of Attachment B).

The Regional Water Quality Control Board’s Certificate Number 34215WQ11 requires,

among other things, fueling and maintenance of construction equipment to be

conducted only in designated areas located away from the drainage, and equipment to

be regularly checked for leakage (see Condition 18 of Attachment B).

g. Burial within corridor. Permits for new pipeline construction shall require engineering

of pipe placement and burial within a corridor to minimize incremental widening of the

corridor during subsequent pipeline projects, unless the proposed route is determined

to be unacceptable for additional pipelines.

The proposed project would allow for an in-kind replacement of an existing pipeline.

The new pipeline would be buried within the existing pipeline corridor next to the

existing pipeline. The existing pipeline would be cleaned, purged, and abandoned in-

situ, except for areas of the line which are exposed and would be removed. Leaving the

portions of the existing buried pipeline in place reduces impacts to the onsite drainage

and oak woodland.

2. Additional development standards as deemed necessary by Commission. In addition,

the following standards may be applied to the extent deemed necessary by the

Commission:

a. Performance security. A performance security shall be provided in an amount

sufficient to ensure completion of requirements of the approved revegetation and

restoration plan and shall be released upon satisfactory completion.

The project includes the County-approved Revegetation Plan, dated July 24, 2015, and

compliance monitoring (see Condition 5 of Attachment B). Revegetation would be

limited to re-seeding disturbed areas with a seed mix appropriate for cattle grazing. No

performance security is needed to ensure proper revegetation of the project site. In

addition, the applicant must ensure that the project complies with all approved plans

and all project conditions of approval, including those which must be monitored after

the project is built (Condition 16 of Attachment B).

b. Inspection of disturbed areas. Disturbed areas shall be jointly inspected by the

applicant and staff 12 months after completion of construction to assess the

effectiveness of the re-vegetation and restoration program. This inspection shall

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Page 16

continue on an annual basis to monitor progress in returning the site to pre-

construction conditions or until additional monitoring is not deemed necessary by the

Department. Inspection results shall be submitted annually to the Department, and

additional treatment of the site shall be applied as deemed necessary by the

Department.

The County has approved a Revegetation Plan, dated July 24, 2015, and ensures

compliance monitoring (see Condition 5 of Attachment B). In addition, the applicant

must ensure that the project complies with all approved plans and all project conditions

of approval, including those which must be monitored after the project is built

(Condition 16 of Attachment B). Revegetation of disturbed areas would be monitored

by the applicant and P&D staff on a regular basis to determine restoration progress.

Maintenance of restoration efforts would be required until the applicant has fulfilled

performance criteria specified in the County-approved Revegetation Plan.

c. Visual compatibility. Above-ground sections of the pipeline and related facilities,

excepting those installed on a temporary basis for a testing period not to exceed 12

months, shall be visually compatible with the present and anticipated surroundings by

use of any or all of the following measures where applicable: buffer strips;

depressions, natural or artificial; screen planting and landscaping continually

maintained; and camouflage and/or blending colors.

Above-ground structures would be limited to two areas: (1) the pig receiver facility

where the new pipeline would connect to the existing Line 300 system near Graciosa

Road; and (2) the metering skid and pig launcher facility would be installed within the

footprint of an existing oil and gas production facility. The pig receiver facility would

have an approximate 20x30-foot footprint with an approximate height of three feet and

would be installed directly adjacent to an existing valve box. The pig receiver would be

painted in tan/beige colors to match the natural surroundings. Other screening measures

are not needed since the height of the pig receiver is approximately 3 feet and the

structure would be installed next to an existing valve box. The area is not highly visible

by the public. The metering skid and pig launcher would be compatible with existing

equipment located in the oil and gas facility.

d. Noise. Proposed facilities shall be designed and housed so that the noise generated by

the facilities as measured at the property boundaries shall be equal to or below the

existing noise level of the surrounding area except under temporary testing or

emergency situations. Measures to reduce adverse impacts (e.g., due to noise,

vibration) to the maximum extent feasible shall be used for facilities located adjacent to

noise sensitive locations as identified in the Comprehensive Plan.

The project site is located in a sparsely populated area. One resident is within 200 feet

of where the new pipeline would be installed. The applicant estimates that construction

activities would occur for seven to 10 days near the resident. Construction hours would

be limited to 7:00 a.m. and 4:00 p.m. Monday through Friday within 1600 feet of the

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Page 17

existing residence and limited to 7:00 a.m. and 6:00 p.m. outside the 1600-foot buffer

of the existing residence (see Condition 7 of Attachment B). Project operations would

not generate any noise.

6.4 Subdivision/Development Review Committee (SDRC)

The proposed project was reviewed by the Subdivision/Development Review Committee

(SDRC) on September 3, 2015. The conditions imposed by SDRC members are included in their

departmental condition letters as Condition 18 of Attachment B.

6.5 Agricultural Preserve Advisory Committee

The project was reviewed by the Agricultural Preserve Advisory Committee (APAC) on

November 6, 2015. APAC found (in a vote of 4-0) the project to be consistent with the County’s

Uniform Rule 2-10 Oil and Gas Drilling and Production Facilities, which states “Incidental oil

and gas drilling and production facilities as defined hereinafter and pipelines are compatible

uses.”

7.0 APPEALS PROCEDURE

The action of the Planning Commission may be appealed to the Board of Supervisors within 10

calendar days of said action. The appeal fee to the Board of Supervisors is $648.26.

ATTACHMENTS

A. Findings

B. 15DVP-00000-00004 Conditions of Approval

C. CEQA Notice of Exemption

D. Site Plan