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

Can Hermosa Beach Permanently Terminate the 35 Year Oil Drilling Lease After A No Vote?

Is The Oil Lease From 1992 Even Valid? 

Why Are 2 Measures Going to Be on the Ballot?  

1)  Yes or No On Drilling & 2) Where The Oil Money Goes? 

E&B Can Put Oil Drilling On The Ballot Several Times Over The Next 35 Years 

NoBPinHB apologizes for making a mistake & falsely accusing E&B of being involved in the Huntington Beach oil rig accident

NoBPinHB would like to apologize for making a mistake & falsely accusing E&B Natural Resources of being involved in the oil derrick accident dated October 14, 2013.  We have retracted the article headlined "E&B Natural Resources Huntington Beach Oil Rig Collapses" and regret any misinformation reported.  We made this error reviewing public legal documents associated with South Coast Oil Corp and E&B.  It was an honest mistake! 

NoBPinHB always strives to ensure that all of the information presented on this web site is accurate.  Should there be any other errors or inaccuracies please contact us directly to ensure immediate correction.  

An oil derrick in Huntington Beach buckled and was tipping over Monday afternoon, prompting evacuations in an apartment building and a home, authorities said. The derrick was threatening homes near 1st Street and Pacific Coast Highway. It was reported about 1:30 p.m., said Huntington Beach Fire Capt. Bob Culhane. The derrick reportedly began buckling during routine maintenance. Officials were using a crane to stabilize the derrick. Additional details were not immediately released. This story is developing. Refresh this page for updates.

Los Angeles Democratic Party Opposes Proposed Hermosa Beach Oil Drilling Project

Resolution Opposing Proposed Hermosa Beach Oil Drilling Project

WHEREAS, the City of Hermosa Beach is considering a proposal to slant drill from its City Yard up to 35 wells underneath the city’s homes, streets and businesses and into the Torrance Oil Field underneath Santa Monica Bay; and

WHEREAS, it is probable there will be negative effects on the health and safety of the citizens of Hermosa Beach and its neighboring communities due to this proposed drilling, and that this project is inconsistent with the city’s pledge to become carbon neutral,

THEREFORE BE IT RESOLVED, the Los Angeles County Democratic Party opposes the proposed Hermosa Beach Oil Drilling Project and any future oil drilling in Hermosa Beach; and strongly supports the City of Hermosa Beach’s pledge to become a “carbon neutral” city and to promote an alternative“carbon neutral” economy for the city; and

THERFORE BE IT FURTHER RESOLVED that the Los Angeles County Democratic Party send a copy of this resolution to the Hermosa Beach City Council and to Assemblymember Al Murastuchi and Senator Ted Lieu.

Author: Dency Nelson, 66AD

Passed By LACDP 8/13/13

Over a 30 Year Period 50% of Well Casings Fail

Over a 30 year period 50% of oil well casings fail. How is E&B Natural Resources and the EIR firm going to investigate the 1000 abandoned wells under homes in Redondo Beach, Hermosa Beach and Manhattan Beach within a 5 mile radius? The E&B project is dead on arrival based on these facts alone. Blowouts and methane explosions under homes cannot be mitigated if they become pressurized.  Orphaned or abandoned oil wells nearby under homes in the South Bay can be a huge safety hazard.

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.

Jeff Duclos Says, "E&B Natural Resources Shows A Shocking Level of Management Incompetence"

Hermosa Beach City Council Member Jeff Duclos says we should be upset with E&B Natural Resources and the shocking level of management incompetence. They took no responsibility for the lack of oversight pulling a drilling permit and DID NOT apologize for their error.

Former City Council Member Michael Keegan says, E&B has proven so incompetent they can't even pull a proper drilling permit and why isn't the City Council upset? Why isn't Hermosa Beach looking for a new oil drilling applicant?

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" 

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

Why Is E&B Natural Resources Calling It An "Oil Recovery" Project?

I would like to suggest to E&B management and the City of Hermosa Beach to stop misleading the residents by your faulty marketing vernacular "recovery".  Please read the definition of "recovery" because E&B does not own anything in this town.  We the residents of Hermosa Beach are smarter than 5th graders and think you should call your project what it is . . . oil drilling.

"Recovery" Definition: 

1) The action or process of regaining possession or control of something stolen or lost.
2) A return to a normal state of health, mind, or strength. E&B owns nothing in this town.

Our town is healthy, strong and has been running the just fine without oil drilling for the last 30+ years.  E&B is assuming by their use of "recovery" that they own the oil underneath the City and Ocean.  This is faulty because the State owns it in a Tide Lands Trust.

Why are you so afraid to call it drilling?  Has oil drilling become a dirty word since you are doing it in such close proximity to schools, homes, parks and businesses?  Do you think you can secretly get away with installing 70 foot tall drilling rigs in our back yards that will stretch miles underground out into the ocean?

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

Class Action Lawsuit Against the City of Hermosa Beach?

Homes For Sale on  Zillow.com MLS in Hermosa Beach Over 30 Days

The City of Hermosa Beach better have a their legal defense budget ready because real estate values in South Hermosa are not appreciating like the rest of the market.  Homes are not selling like the rest of the community as buyers continue to question the likelihood of oil drilling in their neighborhood.  Obviously, no one wants to live near the noise and potential safety and health hazard. This map above shows you the number of homes in Hermosa Beach that have been on the market over 30 days as of April 2013.  You wonder why know one wants to buy in South Hermosa Beach and if oil drilling passes their could be masses loses?

This is why the City of Hermosa Beach and the City Council will be liable for entering into a 3rd party settlement agreement with another oil company and not settling the Macpherson lawsuit separately.  Oil was and currently is banned within the City and the City Council failed to honor this law.  If the City had settled the lawsuit with Macpherson and then brought oil drilling to a public vote this would not be an issue.  However, they entered into an illegal settlement agreement with E&B Natural resources thereby ignoring all the laws that were currently in place banning drilling.

This is why the settlement is illegal and each member of the City Council should be held personally liable and a class action lawsuit is not out of the question. Listen to all the hypocrisy, lies, deception and intimidation in this video.  Several real estate brokers are concerned that real estate in South Hermosa Beach is going to be depressed as long as the oil drilling issue not resolved.

Here is a national map of all the class action lawsuits related to oil and gas drilling.

Oil Drilling vs Hermosa Beach Residents is Not a Fair Fight

Ira Ellman Describes Why E&B Natural Resouces Oil Drilling Is Not A Fair Fight

Hermosa Beach Oil Drilling Hazardous Chemical Warning Signs

E&B Oil Drilling Must Post These Warning Signs

Michael Collins of Hermosa Beach requests details on what signs E&B Natural Resources will be posting near the oil drilling site.

Michael Collins following up on his request 2 weeks prior.
When will we get information on oil drilling warning signs?

E&B Green Solutions Is Hilarious!

Funniest name for an Oil Company ever! 

Keep mocking our intelligence! 

E&B has an become expert at oil spill cleanups having had 25 oil spills to clean up in the last few years.  All of E&B's oil spills are on record at the California Hazmat Database on public record.  Very clever of them to create a business out of cleaning up your own crap! 

How Much Oil Money Might Hermosa Beach Get From Oil Drilling?

Is It Worth Risking Our Health & Safety for $500?

E&B Oil Open House During St. Patricks Day Parade

Saturday, March 18 from 10am to 2pm

Tour E&B Offices at 205 Pier Ave

$2 Out of Every $3 From Oil Money is Wasted or Stolen

$2 out of every $3 earmarked for development from oil money is wasted or stolen. 

How is this similar to what could happen in Hermosa Beach?  Storm drains, schools and City infrastructure are all being used as "leverage" to try and convince people that we need the oil money.  However, the State of California has a tide lands trust which restricts oil money.  Are we supposed to trust the accounting of  E&B Natural Resources based on the history of their management and founders?