The Hermosa Beach Oil Settlement Agreement is Not Legal

Why has no one on the City Council read the Macpherson mock jury trial documents or transcript?  The threat of bankruptcy was the basis for was for a $17.5M settlement and extortion vote and no one has read the documents?

Before you read this you should review the contract agreement comments. In a properly negotiated & compromised settlement agreement, "neither party should be happy"with the outcome.  In this settlement agreement Hermosa Beach tax paying residents lost while the lawyers, City Council and oil won regardless of the outcome of the vote.  Here are some very important questions for our proud elected officials: Council Member Patrick (Kit) Bobko, Hermosa Beach City Attorney Michael Jenkins and Michael Divirgilio.

Drilling Down Article 

1)  If there was such a real likelihood that Macpherson Oil would win a court award for HUNDREDS OF MILLIONS OF DOLLARS ($750 million,), then why did Macpherson Oil settle for a mere $30 Million or 4% of his asking price?   Did Macpherson believe that, even if they won the jury trial, they would likely receive substantially less than $30M, or probably even NOTHING (see below)?  

2)  Was the 1995 “STOP OIL” ELECTION FLAWED because the “City Attorney (Jenkins) Impartial Analysis” in the election pamphlet failed to advise/warn voters of the real possibility of a Breach of Contract lawsuit to recover POTENTIAL LOST PROFITS? Were Hermosa Beach voters properly informed about the potential consequences, including tremendous financial liability, of the Proposition E vote in 1995? What law firm was providing City Attorney services to Hermosa Beach during this decade/period of time? Weren’t Bobko and Jenkins both employees of this same law firm - Bobko's current employer RWG Municipal Law Firm (of which he is now a Partner)?

3) Until 2001, Hermosa Beach City Attorney services were being provided by (Bobko’s & Jenkin’s) RWG Municipal Law Firm, represented by RWG Employee Michael Jenkins. From 2001 and onward, Michael Jenkins law firm began providing City attorney services to the City, including providing oversight services on the law firms defending the City from the MacPhersson lawsuit.  After the MacPherson lawsuit was filed, why didn’t RWG admit there had been and omission/error, and advise the City to hold a new election? (The 1995 measure passed by a mere 565 votes). Why didn’t Jenkins (after he/his law firm began providing City Attorney services to Hermosa)? Why didn’t Bobko (after being elected to the City Council)? 

4)  Could damages even be awarded to MacPherson by a jury (under directions provided by the presiding judge) due to failure of Macpherson Oil to make reasonable efforts to “mitigate damages” over the past 15+ years, as required under California law, by insisting on a new vote with a new proper City Attorney Impartial Analysis?  Did Macpherson sue because he could NEVER meet the TERMS & CONDITIONS of the LEASE imposed by the Coastal & State Lands Commission?  Did Hermosa Beach trial lawyers including Michael Jenkins purposely ignore evidence that could have won or minimized damages?  

5) Because of Bobko's associations with RWG Municipal Law Firm and Michael Jenkins, did Councilmen Bobko have a “CONFLICT OF INTEREST” in negotiating and voting on the settlement agreement? Shouldn’t Bobko have RECUSED himself, as required under California law from all such activities.  Has Bobko violated the Brown Act?  

6)  Are these the reasons the Settlement Agreement was negotiated by Bobko in secret, and voted upon behind closed doors without public participation? Was Bobko just protecting the reputation of this law firm, and his friend Jenkins, to the detriment of the City? Why was the settlement agreement not discussed in public BEFORE City Officials signed the contract with a new 3rd party E&B before the scheduled jury trial in April of 2012? Don't neighbors heavily impacted deserve "a say" in that their property and lives could be heavily impacted? - That seems to be normal business practice with Tattoo parlors or new bars, etc

7) Is this the reason that this behind the closed doors settlement includes a requirement that the 1995 "Stop Oil  election be held again"?  By wiping out all City reserve funds if not passed. Are there also other implications with regard to attorney "errors and omissions"insurance and possible reimbursement to the City for its approximately $4M in legal defense costs?

Continue to read a list of more questions that need answers.

19 Fatalities, 60 Injuries & $230M in Property Damage Per Year from Pipeline Accidents

Fatalities, Injuries & Property Damage Per Year from Pipeline Accidents 

Who wants an oil and gas pipeline near their home? Not me and hopefully our neighbors don't either.

Pipelines average 19 fatalities and 60 injuries every year in the US.  Pipelines incidents in the US produce on average $230,000,000 worth of property damage.  A pipeline does not belong in Hermosa Beach, Redondo Beach or Torrance going to Exxon Mobile Refinery.  See these oil and gas pipeline incident statistics here.  

Matt Damon Promised Land Movie Review

We attended the advanced screening of the Promised Land movie on Tuesday, December 11 in Hollywood and here is our review.

Promised Land is one of the most informative & entertaining movies about real life and local economics in the United States today.  Just when you think you understand all of the characters in the movie there is a big twist to the story at the end.  The twist to the story at the end of the movie will make you question every source and quote you hear in the media and from City Council promoting oil and gas revenue benefits and jobs.

Here are some oxymoron examples our City Council is currently using in Hermosa Beach "environmentally safe oil drilling" and "carbon neutral".   These hypocritical marketing buzz words should make you question the agenda of City Council and why they are unwilling to hold a public debate on the oil drilling issue.  

The movie also shows you how divisive money and oil can be on a community.  It tears apart a small town that lacks intelligent political leadership and shows you the hidden corruption oil companies use to influence politicians.  Just like Hermosa Beach, there are hardly any educated people doing research or who understand the risks of doing oil drilling so close to homes.  In the movie a professor eloquently presents the risk factors of drilling to an audience at a public debate and turns the tide the oil drilling project.

The movie also shows you that our politicians have their priorities in the wrong place and should be thinking about our health and safety first before creating jobs.  Not surprising a politician is willing to say anything for some cash presented and favors.

It makes you wonder why the Hermosa Beach City Council is under a confidentiality agreement (page 4) and never presented the settlement agreement in a public forum for debate.  Sounds pretty corrupt and suspicious to me.  

Some critic lobbying groups have tried to discredit the movie by saying Middle East OPEC money has financed the movie  . . .

After all, the movie "is financed in part" by the United Arab Emirates (UAE), an OPEC member country.   

This is a stupid argument since 47% of the 27,000 fracked wells in the United States were for oil and 53% were for gas.  Fracking is not just about gas.  See DrillingMaps.com database for more details on fracking locations in US.

Please like Promised Land movie on Facebook.

Here is the the Promised Land Movie Trailer. 

Here is some ridiculous propaganda trying to taint the movie claiming a conspiracy about Middle East oil money is behind the movie exposed fracking to promote oil.  Excuse me . . . but there minority investments of Middle East oil money in just about every company in the United States and these claims are ridiculous   For Matt Damon to claim he didn't know where some of the money came from is completely legitimate.  

Josh Fox of Gasland discusses his view on the film about the oil and gas industry taking away and exploiting what we have work so hard to build.