Hermosa Beach Puts an End To a 30+ Year Drilling Rights Dispute

FACT SHEET

CITY OF HERMOSA BEACH SETTLEMENT WITH E&B NATURAL RESOURCES MANAGEMENT CORP

The City of Hermosa Beach and E&B Natural Resources Management Corp. has resolved several ongoing disputes between them, putting to rest the issue of oil drilling that began with a 1984 vote to allow oil drilling in the city. Following are the specific terms of the settlement announced on March 7, 2017:

• E&B relinquishes all drilling rights in any oil project in Hermosa Beach, including the lease issued by the city in 1992 that gave Macpherson Oil Company (and later E&B, by assignment under the 2012 settlement between Macpherson, E&B, and the City) the right to drill in the city.
• E&B relinquishes all mineral and other rights in any oil project in or under Hermosa Beach, including the private leases and School District lease that E&B acquired from Macpherson.
• E&B relinquishes all other permits and approvals for oil drilling in or under Hermosa Beach, including all road agreements, state approvals and other permits and approvals E&B acquired from Macpherson.
• E&B relinquishes all future claims against the city over the oil project, including claims for interest or any other monetary compensation resulting from the 2012 settlement and the 2015 special election regarding its oil-drilling proposal, the Measure O election.
• In exchange for giving up its oil drilling rights and all current and future claims, E&B will receive $1.5 million from the city’s existing funds.

• Both sides agree not to disparage one another in their comments about the settlement. This is a common provision in settlement agreements.

BACKGROUND

Since 1984, when voters lifted a longstanding ban on oil drilling in Hermosa Beach, the city has lived with the threat of oil drilling. In 2015, Hermosa Beach voters rejected Measure O, a proposal by E&B to drill for oil at the city’s maintenance yard. The vote triggered a requirement that the city pay E&B $17.5 million-plus interest. After the vote, E&B claimed the city owed E&B interest and had violated the 2012 settlement during the Measure O election.

E&B also claimed that if the city ever overturned its ban on oil drilling, E&B would forever have the right to drill for oil in Hermosa Beach under various leases, permits and approvals E&B continued to hold. It based this claim on its assertion that the voters’ rejection of Measure O in 2015 triggered a force majeure clause in the original lease.

Such clauses refer to occurrences, such as an act of government, that are beyond the control of the parties. A force majeure clause can be used to suspend the contract for the period of time during which those occurrences prevent the parties fulfilling their obligations under the contract.

This settlement resolves these issues by providing that E&B relinquishes every lease, permit and approval it holds in Hermosa Beach. The settlement restores the city to the position it was in before Hermosa Beach ever encountered Macpherson or E&B. It also eliminates all future litigation with E&B over its oil-drilling proposal.  

Are Hermosa Beach Residents' First Amendment Rights at Risk?

E&B Natural Resources to project opponents:  Tell the Truth

Hermosa Beach, February 6, 2014 - E&B Natural Resources Management, Corp., (E&B) a California-based oil and natural gas development company urges Hermosa Beach residents to be wary of anonymous flyers and falsified-Photoshopped photos about the Maintenance Yard Oil Recovery proposal.

“Recently, a rash of anonymous flyers and Photoshopped pictures were circulated in Hermosa Beach. It is obvious that the publishers of these materials know that they are not telling the truth; otherwise they would put their name on the documents. Instead, they are littering the city with rubbish, both in the physical sense of wasting paper and in the intellectual sense of telling lies,” said Steve Layton, President of E&B.

E&B is proposing an oil production project at the city’s maintenance yard at 6th Street and Valley Drive. This proposal resulted from a settlement the city entered into in 2012 to end a 14-year legal dispute over another proposed oil production project. As part of the settlement, Hermosa Beach voters will decide if the city-wide ban on oil drilling should be modified to permit E&B’s proposed project to move forward.

If this item had already been scheduled for the ballot, these flyers would be illegal according to California law. This deceptive campaign by cowards, who are afraid to put their name on the flyers, is simply a malicious effort to mislead supporters in order to disparage E&B and impact an upcoming election.

EB is concerned that widespread circulation of false information disseminated via flyers could make its way on the Internet, email and other new media.  Unfortunately, existing local and state campaign laws might not be able to stop this troubling campaign of lies. Misinformation campaigns, such as false flyers are simply aimed at creating doubt in the minds of voters.  E&B intends to provide the voters with the facts they need to make sure they are able to cast a meaningful ballot

About the Project:

The Hermosa Beach Resource Recovery Project is a proposal to access previously developed and tapped oil resources offshore of Hermosa Beach from a single, onshore location by utilizing new, environmentally safe and tested directional drilling technology.  A project application has been filed as the next step in the process agreed upon by the City of Hermosa Beach and E&B which now enables the city to begin its public review process, including preparation of an Environmental Impact Report (EIR), review by various state and regional agencies on air and water quality, safety, noise, traffic and numerous operational elements, as well as local voter approval. For more project information, see https://ebnr-hermosa.com/eb-community/who-is-eb-natural-resources

About E&B Natural Resources:

E&B Natural Resources Management Corporation is a Bakersfield, California based independent oil and gas company. Employing a balanced approach of mature field revitalization, acquisitions, and exploration, E&B now produces approximately 8,000 boepd from 25+ oil and gas fields located in California, Louisiana, Kansas, Wyoming, and Texas. With over 300 dedicated employees focused on all areas of growth and production, E&B is one of the largest privately owned oil and gas companies in California and is a recognized leader within the exploration and production industry. For more information, visit https://ebnr-hermosa.com/eb-community/who-is-eb-natural-resources  or  www.ebresources.com

Contact:  Eric W. Rose (805) 624-0572 or eric@ekapr.com

Huge Election Victories For Stop Oil Candidates in Hermosa Beach

Congratulations to everyone in our stop oil group! Thank you to Nanette Barragan and Hany Fangary for your staunch support of the stop oil movement in Hermosa Beach!  We this movement over a year ago and some major goals were accomplished this week in the election.

I personally have had the best nights of sleep since Bobko announced his oil settlement in the Spring of 2012. Our Stop Oil grassroots movement is a very powerful force that completely influenced the outcome of this election without spending hardly any money. Unfortunately, we have another year to go until November 2014 unless the powers that be can simply make the problem Bobko and Divirgilio created go away. 

KCAL9 CBS Story "Oil Drilling Proposal in Hermosa Beach"

Stacey Armato, Michael Collins from StopHermosaBeachOil.com
No Comment From E&B Natural Resources

Thank You Serene Branson from KCAL 9 

E&B did not comment on this story because news publicity is last they want in the Los Angeles area. E&B is attempting to take advantage of a vulnerable town and quietly drill into the Santa Monica Bay without waking up the powerful media groups that will make this a huge National story. The oil drilling proposal is not a story about 18,000 Hermosa Beach residents but more about maintaining the lifestyle of 11 million people that enjoy the cool breezes from Santa Monica Bay.  Its about jeapardizing the integrity of thousands of plugged oil wells under homes in Redondo Beach, Hermosa Beach and Manhattan Beach that could leak and explode if they are come under pressure from new hydraulic drilling nearby.

This illegal settlement agreement was constructed by Hermosa Beach City Council Member Kit Bobko and he is obviously nervous in this video above doing his first TV interview on the topic.  He will be forced to defend the illegal Hermosa Beach oil settlement it in order to save his political career.  Look at Kit Bobko's horrendous environmental voting record.  Watch these videos below which show Hermosa Beach City Council hypocrisy, lies, deception & intimidation.

New Erin Brockovich & Promised Land Movie Be Written In Hermosa Beach

Did Hermosa Beach City Council Members Get Paid Off?

Hermosa Beach City Council oil drilling silence looks just like the movies Erin Brockovich & Promised Land.  Your silence doesn't allow us to have a proper dialog or debate as leaders of our City.  Your silence makes us suspicious and looks like you have been paid off.  If someone wanted to set up a house of prostitution in Hermosa Beach would you be impartial to that?  

E&B Natural Resources is Publishing "Half-Truths" in South Bay Newspapers

E&B Natural Resources is publishing "half-truths" in South Bay Newspapers

Former Hermosa Beach City Council Member JR Revitsky has been involved with the oil drilling issue for decades.  Steve Layton is poisoning the well and should have to wait until all the studies are done before publishing his propaganda and half truths.  Poisoning the well is not playing fair!  He asks how do we stop it? 

Why I Don't Trust E&B Natural Resources or The Hermosa Beach City Council

Watch This Incredible Speech from Patti Sousa
"Why I Don't Trust E&B Natural Resources or the Hermosa Beach City Council" 

There Is No Way An Oil Drilling Vote Will Ever Pass in Hermosa Beach

Lou Morris of Hermosa Beach says, ""There is no way an oil drilling vote will ever pass in Hermosa Beach.
"So many people have commented on the stupidity of our City Government. Parents give lots of money to the schools each year and there is no way they will sacrifice the safety for oil drilling. Newspapers write at an 8th grade level and we are making this way too complicated."  

Is The City of Hermosa Beach Hiding Oil Related Expenses?

Howard Longacre Letter to City Council May 20, 2013 (Item 3) 

(Please excuse my typos below)

3)  Request for clarification as to where/how the City is specifically keep track of the accumulating city expenditures which are not being reimbursed by E&B Natural Resources as related to the likely 2014 oil ballot measure.  

When the settlement agreement between the parties was announced in March of 2012, it was indicated that E&B Natural Resources would be paying essentially all of the costs leading to an election for the purposed of determining if the people of Hermosa Beach would lift the City's ban on oil drilling.  

Later it was announced that city staff time utilized for all additional work related to preparation for an election would be reimbursed by E&B at an amount equal to 10% of the cost of the EIR preparation.  And further it was indicated that E&B would cover the costs of obtaining the EIR, and would pay not more than $50,000 of the actual election costs.  

Since then the Council has approved hiring (at the City expense) consultants to do such things as the City's own "Economic Study", and for a "Community Dialog" process (some or much of which "Community Dialogue" will be oil drilling related according to the RFP for that consultant.) 

There appears to be a significant amount of staff time being expended daily on various aspects of oil drilling.  Thus, if the EIR preparation costs amounted to $800,000 in total, that would mean E&B would only be reimbursing the City $80,000 for all of its cots for consultants, meetings, reports, attorney fees, staff time and on and on for the extraneous activities leading to the oil drilling election.  

The people were essentially told by the Council that the oil litigation was over and that their only costs going forward would be one of the following:  

• If the electorate approved oil drilling at an election then the City's obligation to E&B would be $3.5M, plus the City's own costs ongoing attorney and staff time indefinitely, plus essentially the giving over to E&B for their use of a parcel of City Yard land presently worth $11M or more.  In other words an approximate total city burden of $14.5M plus city expenditures of perhaps $500,000 indefinitely.  

• However, if the electorate maintains the ban on oil drilling they'd simply owe E&B $17.5M and that amount could be paid over a period of years, ie. 30 years at "mutually agreed terms". 

All need to be reminded that the settlement agreement requires an extremely valuable 1.3 acre city parcel, with a present value of $11M or more if properly zoned, to be handed over gratis to E&B, along with $3.5M cash, if the voters approve lifting the ban on oil drilling.  

Further, all need to be reminded that the city and the school district are to be receiving relatively poor share of the hypothetical oil revenue (it should be not less than 50% in total of direct oil and gas sales revenue).  This unfortunate fact indicates that past city councils really did give away the store to Macpherson.  Why they so stupidly did that is past history.  

3-a)  The question here is, how is the city keeping track of its expenses month by month, and where can the public and the Council view and be aware of the ongoing escalating expenses in a manner, ie via a spreadsheet tabulation?  Such tabulation should clearly indicate the ongoing costs being reimbursed by E&B from their deposits fund, along with the ongoing costs being reimbursed by E&B from their deposits fund, along with the ongoing city expenditures not being reimbursed by E&B from their deposits fund.

See Item 4 Brown Act

Have The Rights of City Council Members To Speak On Their Own Been Muzzled By An Agreement?

Letter From Howard Longacre Letter to City Council May 20, 2013 (Item 4)

(Please excuse my typos below)

4)  Request for clarification as to any other ongoing confidential agreements (other than the March 2, 2013 settlement agreement itself) which have also been made by the City's staff and/or the City Council, and/or with any other entity regarding the oil issue.  

The March 2012 settlement agreement between the parties states that the City will take the necessary actions to have an election for the voters to vote Yes or No on lifting the ban on oil drilling in Hermosa Beach.  However, as long as an election does take place and is facilitated by the Council, is there anything that precludes any individual council members from stating to the press or to the public, inside or outside of a public forum, and on the record, of being for or against lifting the ban on oil drilling? 

Has in any manner the rights of any individual council member to speak on their own, or on their constituents behalf, been muzzled via any agreement by the council in closed session or otherwise?  This question has not been answered clearly in my and others' view and such is not specified in the settlement agreement, nor do I recall a debate on the agenda item in any public meeting where the council specifically voted to maintain a position of unanimous support to muzzle themselves.  Something seems to be missing here and apparently has a lot do with the perception the public has of the Council regarding the entire oil matter? (See article:  Did elected officials in Hermosa Beach violate the Brown Act.)

Complicating the issue is that rumors persist that more than one council member has made it very clear to some residents or business operators that they are either supporting or not supporting lifting the ban on oil drilling in Hermosa Beach.

Unfortunately, that all five council member appear to be stonewalling, on the record, the issue of what agreement they perhaps made behind the scenes indicates to many, if not most, that the Council is being disingenuous and playing politically coy, given that the oil drilling issue is far from new in the city.

Further, it is doubtful that even 1 in 20 of the electorate who actually vote on the oil drilling issue will make up their minds one way or the other, basis reading or understanding anything of the nuts and bolts of the EIR's likely mountain of esoteric data, E&B's application, the flood of mailers and propaganda barrages to be likely put out by E&B and others, or the underlying agreements with Macpherson that have been transferred to E&B or others, nor will they perhaps understand or trust the grandiose claims of revenue one way or the other or the safety or lack of safety claims E&B and others are making.  Thus,

4-a)  Are there any agreements written or verbal other than the settlement agreement as related to the question of lifting the ban on oil drilling, the election, confidential, or otherwise, that the public and press are not distinctly and formally aware, and understanding of?  This could include any issues agreed to by the Council members among themselves, such as that they would not individually take announce a public position on oil drilling until "XYZ" occurs, etc.   If there are any other agreements please disclose and clarify as best possible what purpose they are for, why they are needed, and when they are made.

4-b)  Is each and every council member free at this time to speak his own mind regarding lifting the ban on oil drilling, both inside or outside of a public forum, and/or to the press on the record?  Yes or No?  If No, this due to a specific binding agreement made by the full council among themselves, and if so why such agreement required when the settlement agreement is supposedly the full and complete agreement?

See Hiding Oil Money Point 3  

Who Owns Present & Future Oil & Gas Mineral Rights?

Howard Longacre Letter to City Council May 20, 2013

1)  Request for clarification regard the present and future ownership of the oil and gas mineral rights that were own by the City prior to the original agreement(s) with Macpherson.    

1-a)  Who owns / controls the City's original oil and gas mineral rights at the present time? 

1-b)  Who will  own/control the subject mineral rights if oil drilling IS NOT APPROVED by the voters, and for how long?  

1-c)  Who will own/control the subject mineral rights if oil drilling is approved by the voters and for how long? 

2)  Request for clarification regard the Oil Lease expiration data. 

2-a)  How many years remain on that oil lease? 

2-b)  Is the clock presently ticketing on that oil lease or has it been suspended due to the prior oil litigation, and if so is it still suspended and to when? 

2-c)  If oil drilling is NOT APPROVED by the voters what happens to the oil lease, ie. does it expire immediately, will it ever expire, will the clock continue to tick? 

2-d)  If oil drilling is approved by the voters what happens to the oil lease, ie. when does it expire, will it ever expire and if so when? 

A Cry For Help From More Hermosa Beach Residents

Listen to what Kevin Sousa, Michael Collins, Hany Fangary, Allan Mason and Stacey Armato have to say at the Hermosa Beach City Council meeting on Tuesday, May 14, 2013.  They are all speaking to the issue of E&B Natural Resources drilling in the Hermosa Beach City Yard without a County permit.

Related Articles:
Hermosa Beach Residents Catch E&B Drilling Without a County Permit
Hermosa Beach Patch "City Cited For Lack of Drilling Permit

E&B Natural Resources Contractors Will Be Fined For Illegal Drilling in Hermosa Beach

The City of Hermosa Beach is among three entities cited by the Los Angeles County Public Health Department--Environmental Health Drinking Water Program for drilling on the public works yard site last Tuesday without the required permits.

Brycon, LLC, a consultant out of Newport Beach, and J & H Drilling Co. Inc. out of Santa Ana were also cited for their participation in the work, which was being done on behalf of E&B Natural Resources to test soil and groundwater for contamination.

In the "Notice of Violation & Order," the city, Brycon and J & H were directed to submit a Well Permit Application by today. J & H must also submit proof of a valid California C-57 Well Water Contractor's License.

All three will also be fined, according to Richard Lavin, chief environmental health specialist with the Drinking Water Program. The fine, due by June 10th, has yet to determined, he said late Tuesday.

Permits are required for any well drilling in the state, he said. His department oversees drilling in L.A. County, with the exceptions of Long Beach and Pasadena.

Former Hermosa Beach City Manager Steve Burrell and now $168,000 consultant to EIR process did not comment.  Current Mayor of Hermosa Beach Kit Bobko creator of the illegal oil settlement had no comment.  Michael Divirgilio also did not return Hermosa Beach Patch's calls for a comment.  Current City Manager Tom Bakaly had no comment but issued the following statement below.

HERMOSA BEACH, CA - Hermosa Beach City Manager Tom Bakaly issued the following statement in response to a request from Los Angeles County for a permit for work at the city’s maintenance yard that is part of the environmental study of the oil production project proposed by E&B Natural Resources Management Corp. (E&B). 

“The work at the city’s maintenance yard involved shallow borings into the soil to obtain groundwater samples as part of the information-gathering process for the environmental review of the oil production project proposed by E&B. This is a relatively routine sampling operation for a project of this type, and it required just one day of work and little disruption of the site. While the city staff investigated the need for a state permit for the water sampling process, it was unaware that a Los Angeles County permit was needed for such work. 

“We apologize for any confusion this environmental data-gathering process might have caused. The city remains committed to providing residents and voters with thorough information about the proposed oil production project and will strive to communicate more fully in the future. As part of the ongoing communication, the City Council will receive an update at its meeting on May 28 about Hermosa Beach’s General Plan, its Community Dialogue and the environmental review process for the proposed oil production project. We invite all the city’s residents to become involved in these processes to help determine the future of Hermosa Beach.”

As is often the case after a Project Application is deemed complete, the city had asked E&B for additional information for the Remedial Action Plan (RAP) submitted as part of E&B’s Project Application. A contractor for E&B conducted shallow borings in the soil at the maintenance yard to obtain groundwater samples to address soil contamination known to exist on the site because of its historic use as a landfill. This sampling process did not constitute “testing” or sampling for oil at the site: It only sought information about groundwater and is much different from oil drilling. 

The information from this sampling will help the city gain more information about the groundwater conditions underlying the site and to better evaluate the effectiveness and appropriateness of the proposed RAP. Groundwater information also is essential for an accurate description of baseline environmental conditions in the Environmental Impact Report (EIR) the city will be preparing to examine all environmental impacts of the proposed project.

The city had a license agreement with E&B that gave the company and its contractors access to the maintenance yard to obtain the samples. The work was completed on May 7. Before the work began, the city had asked and determined that no state permit was required. After the work was completed, the city became aware that the Los Angeles County Public Health Department’s Bureau of Environmental Protection required a permit and that the permit should have been obtained by the geotechnical contracting company hired by E&B. 

The city notified E&B of its responsibility to obtain the permit. E&B’s contractor has now filed for the appropriate permit with Los Angeles County.

Related Articles:
Hermosa Beach Residents Catch E&B Drilling Without a County Permit
Hermosa Beach Patch "City Cited For Lack of Drilling Permit

E&B Drilling Proposal Will Violate a Noise Ordinance (Letter)

Easy Reader "E&B Drilled" Letter April 30, 2013

E&B Oil has submitted a project proposal that states an intention to create massive changes to the city of Hermosa Beach. First and foremost, they are going to ask the city to believe that they are operating a safe, honest process of harvesting oil from beneath our town and from under our ocean. Our first glimpse into what they propose to do is in having the ability to read their proposal. This proposal is peppered with city code violations. When it seems convenient to follow the code, E&B will cite such code in a highly visible way. Any intention to wiggle around this code is, at best, a parenthetical statement hidden deep inside a paragraph.

My problem begins when there are phases of the proposed project where following the code will be either inconvenient or impossible. When this is the case, the suggestion that the code will be waived, changed or violated seems to be less openly written. Once such case can be found on page 45 of the E&B Project Proposal and reads, “ The drill rig would operate continuously for 24 hours per day, seven days per week, until the appropriate depth and bottom-hole location for each well has been reached. It is estimated it would take approximately 30 days per well for each of the four wells.” This is a description of the drilling of test wells and one reinjection well. With no problems, we are looking at a minimum of 4 months of around the clock drilling and associated noise and disruption, just related to the test wells. The additional 30 wells will take 3 more years of around-the-clock drilling.

Our city municipal code has several provisions that state that this type of activity is prohibited. Specifically, in chapter 8, section 24.040, part C, the following is considered prohibited noise: “the sustained, continuous or repeated operation or use between the hours of 10:00 p.m. and 8:00 a.m. of any motor or engine or the repair, modification, reconstruction, testing or operation of any automobile, motorcycle, machine, contrivance, or mechanical device or other contrivance or facility unless such motor, engine, automobile, motorcycle, machine or mechanical device is enclosed within a sound insulated structure so as to prevent noise and sound from being plainly audible at the property line of the property from which the sound is emanating.” Furthermore, chapter 8, section 24.050 restricts the hours of construction from 8:00 a.m. to 6:00 p.m., Monday through Friday, and 9:00 a.m. to 5:00 p.m. on Saturdays and states that, “ construction activity shall include site preparation, demolition, grading, excavation, and the erection, improvement, remodeling or repair of structures, including operation of equipment or machinery and the delivery of materials associated with those activities.” As a person who lives near the proposed site, and whose home (like many in the area) is above the sound attenuation wall and in the line of sight of proposed drilling rigs, equipment, vehicles, workmen, and other aspects of the project, I am highly concerned. The proposed sound attenuation wall does nothing to address the issue of noise pollution facing the majority of houses around the proposed drill site.

I am concerned that E&B Oil might already be operating under the assumption that this code will be ignored or amended for the purposes of their operation. I am concerned that any false assumption, created either by the city council, the city manager, or anyone misleading the citizens of Hermosa, will allow 24 hour a day construction and drilling, and will lead to another lawsuit. I want the citizens of Hermosa, the very citizens who will be voting about the next 35 years of our city’s future, to be informed in every step of this process.

I am presently dissatisfied with this council’s ability to clearly present information about this project.

Keep Hermosa, hermosa,
Michael Collins
Hermosa Beach

See this recent violation of City code on May 7, 2012.  

Why is E&B Drilling in Hermosa Beach Without Permit?

I guess the joke is on us and the City can get away doing whatever they want and make up their own rules.  When will the lies, corruption and deception of the truth stop in Hermosa Beach?  This drilling started at 8am on May 7 at the Hermosa Beach City Yard.

Neighbors were not notified and the City did not have a permit to do this according to sources who asked City Manage Tom Bakaly. Is this grounds to fire a City Manager for ignoring this huge issue?  See this incident at the last City Council meeting where Tom Bakaly refuses to publish a letter.  Is Mr. Bakaly  really working for the people or is he also now working for E&B?  Why is Mr. Bakaly hiring an outside consultant to moderate / facilitate a town hall meeting?  Many questions need answers and this is not leadership.

 

City of Hermosa Beach Drilling Without a Permit?

Here is the Hermosa Beach drilling ordinance right from their web site. The drilling, boring or otherwise sinking of an oil or gas well, or oil or gas wells, or the maintenance, pumping or operation of any oil well or oil wells or gas well or gas wells in the city is declared to be a nuisance and is declared to be unlawful. It is unlawful for any person to drill, bore or otherwise sink or maintain, pump or operate or cause to be drilled, bored or otherwise sunk, or maintained, pumped or operated, or to aid in the drilling, boring or otherwise sinking, or maintaining, pumping or operating of any gas or oil well or wells for the purpose of procuring oil, gas or other hydrocarbon substances within any portion of the city. It is unlawful for any person to commence the construction or to construct or maintain any derrick, or any oil well apparatus in the city for the purpose of drilling for or maintaining any oil or gas well in the city; except, however, the oil wells now constructed or under construction or in actual operation in the city. (Ord. 95-1139 § 2, 1995; prior code § 21-10)

Howard Longacre Letter Regarding Several Matters Within Hermosa Beach City Council’s Jurisdiction

Click on the document to download and read the 12 page document

Why Is Oil & Gas Corruption Rarely Detected?

Over the next 20 years, it’s expected that oil production in California will increasing dramatically.  Yet many cities rich in oil and gas are home to some of the State's poorest people. How can this happen? Too often, wealth stays in the hands of politicians, industry insiders and local people. Revenues don’t get published and the surrounding community suffers as the quality of living goes down. Payments made to governments to exploit resources remain secret. Bribery and embezzlement go unchecked.

Many oil and gas companies protect the identities of their equity holders and subsidiaries. This allows corrupt leaders to hide stolen funds unnoticed. Inadequate financial statements make it easy to disguise corrupt deals, and impossible for any of us to monitor them. Many oil and gas companies don’t publish information by state and city. This allows them to hide the royalties, taxes and fees they pay. But without this information, we can’t hold governments to account for the money they receive.

The entire oil and gas industry spent on average $400,000 each day lobbying senators and representatives to weaken public health safeguards and keep big oil tax breaks, totaling nearly $150 million.

Stolen oil and gas income has terrible consequences and is widespread through the United States and World. It benefits an elite few. But for everyone else, it fuels conflict over resources and health and safety.  The solution?  Would you trust these people based on their track record?  Here is our list of suspicious E&B Natural Resources deals.  Submit your anonymous suspicious below under discussion . . .  

Hermosa Beach City Council is Not Taking Responsibility for A Huge Mistake They Made

Barbara Ellman Describes 

Where is the Leadership on the Hermosa Beach City Council?

Where Do You Stand City Council?

1. Allowing an oil company to drill for the next 30 to 40 years?
2. 3500 trucks rolling into town? 
3. 8,000 barrels of oil refined on site
4. 250,000 cubic feet of gas refined on site?
5. Injection wells underneath the ocean?

A Firestorm of National Media is About to Be Unleashed on Hermosa Beach

60 Minutes, Daily Show, NBC News, New York Post Are Coming!