Carson Bans New Oil Drilling to Stop Occidental's Proposed 200 Slant Well Drilling Project

Carson City Council Meeting Bans Fracking & New Oil Drilling Projects

The Carson City Council on Wednesday unanimously 5-0 approved a 45-day moratorium on new oil and gas drilling (LA Times), largely due to concerns about hydraulic fracking. The moratorium blocks Occidental Petroleum plans to start drilling more than 200 new slant drilling wells. The company initially said it planned to employ fracking techniques, which inject water, sand and chemicals deep underground at high pressure. The pressure breaks apart rock in an effort to release more oil and gas. That drew opposition from Carson community activists concerned about the potential impact of fracking on air and water quality. In recent weeks, the company has said it wouldn’t use fracking because test wells indicated that it likely would not increase production. Who are you supposed to believe?

But council members said the moratorium would give them time to consider additional regulations. "There are too many questions, too many unknowns and too many possible bad consequences that could result from the city engaging in this activity," said Councilman Albert Robles, according to a Reuters report of the meeting. Robles said the City Council will consider a one-year moratorium after the 45-day period is completed. Carson’s decision follows a Los Angeles City Council's vote on Feb. 28 to pursue a moratorium on fracking and injection wells.

Click Here to Review Details of Pins Carson Oil Drilling Issues

Where are Carson residents, students and business people organizing on Facebook or social media to fight this? 

90% of all Oil & Gas Wells are Fracked

Response to:  Easy Reader Opinion Letter "On Local Government: Regarding Fracking"

Fracking is the process by which drillers inject millions of gallons of water, sand, salts, mud and chemicals—all too often toxic chemicals and human carcinogens such as benzene—into the ground at extremely high pressure, to fracture the rock and extract the raw fuel.  Its hard NOT to find a well in Southern California that has NOT been fracked in the last 60 years because the unregulated process has been going on for a long time.  How are we to ever know if this is what has caused the thousands of earthquakes the Midwest is now experiencing?

The fracking process is used to boost production at 90% of all oil and gas wells in the United States, according to the Interstate Oil and Gas Compact Commission, and fracking is increasingly common in other countries as well.  Although fracking most often occurs when a well is new, companies fracture many wells repeatedly in an effort to extract as much valuable oil or natural gas as possible and to maximize the return on their investment in a profitable site.

The Interstate Oil and Gas Compact Commission (IOGCC), is a United States organization that represents the governors of 30 member and eight associate states, and works to ensure the nation's oil and natural gas resources are conserved and utilized to their maximum potential while protecting health, safety and the environment. It was established by the charter member states' governors in 1935. The Interstate Oil and Gas Compact Commission is the oldest and largest interstate compact in the nation.

Fracking poses serious dangers to both human health and the environment. The three biggest problems with fracking are:

1. Fracking is causing earthquakes in Midwest
2. Fracking can cause adjacent older plugged wells to explode. 
3. Fracking leaves behind a toxic sludge that companies and communities must find some way to manage. Safely disposing of the sludge created by fracking is an ongoing challenge.
4. Somewhere between 20 percent and 40 percent of the toxic chemicals used in the fracking process remain stranded underground where they can, and often do, contaminate drinking water, soil and other parts of the environment that support plant, animal and human life.
5. Methane from fracture wells can leak into groundwater, creating a serious risk of explosion and contaminating drinking water supplies so severely that some homeowners have been able to set fire to the mixture of water and gas coming out of their faucets.

In 2005, President George W. Bush exempted oil and gas companies from federal regulations designed to protect U.S. drinking water, and most state oil and gas regulatory agencies don’t require companies to report the volumes or names of the chemicals they use in the fracking process, chemicals such as benzene, chloride, toluene and sulfates.

The result, according to the nonprofit Oil and Gas Accountability Project, is that one of the nation's dirtiest industries is also one of its least regulated, and enjoys an exclusive right to "inject toxic fluids directly into good quality groundwater without oversight."

In May 2012 the California Senate defeated a bill, introduced by state Sen. Fran Pavley (D-Agoura Hills), requiring drillers to notify local property owners and water authorities in advance that hydraulic fracturing was going to occur, and requiring the testing of groundwater before and after the hydraulic fracturing to determine whether contamination had occurred. Pavley said that this monitoring and reporting approach would help to address citizens' concerns. The state Senate defeated the bill in a bipartisan 18-17 vote.

Reported Marina Del Rey 2.9 Earthquake on Southern California Gas Fracking Site?

The 2.9 earthquake on May 9, 2013 was in Playa del Rey on top of a Southern California Gas drilling site. Will we ever know if they were fracking? The Earthquake was reported in the media as Marina Del Rey but it was actually centered in Playa del Rey according to USGS Information.  This was right on top of a Southern California Gas Active drilling site.  

Southern California Gas Facility in Playa Del Rey

See California Doggr Database for Details 

Mira Costa High School Plugged Oil Wells at Risk of an Explosion

Maps from California Doggr Database

Capped or plugged oil wells can blowout and be a real danger in the South Bay if oil drilling is permitted in Hermosa Beach. Pat Aust of the Redondo Beach City Councilman and former firefighter knows first hand of the dangers of dealing with capped wells. Hermosa Beach, Manhattan Beach and Redondo beach have hundreds several capped wells that could be at risk of a blowout or explosion.  Below is an explanation to help you understand the potential threat to our community if slant hydraulic pressurized oil drilling is permitted underground and an adjacent well is pressurized.

Oil drilling blowout preventers (BOPs) can be used on the drilling site itself on the surface to mitigate risk. However, blowout preventers CANNOT be used on capped wells when the adjacent reservoir becomes pressurized.  If an adjacent capped oil well were to blowout you could easily have a methane explosion and you wouldn't know about it until its too late.

Most capped wells are buried 30 feet below the surface and were completed usually 30 to 40 years ago.  A hole still exists to a reservoir underneath the ground several thousand feet.  We don't know the condition of these capped wells or reservoirs because there are very limited records and these wells have been capped and buried for several decades.  That does not mean that these wells aren't building pressure underneath the surface.  E&B proposes slant oil drilling and it has no control over pressurizing adjacent wells.  Huge, huge risk of health and safety.   

Protecting Communities from the Health and Environmental Effects of Oil and Gas Production

Hermosa Beach Wyland Water Challenge "Greenest City" Award?

Hermosa Beach Mayors Whyland Foundation Water Challenge

Hermosa Beach Mayor Peter Tucker and Wyland Foundation VP Steve Creech talked to Dave Gonzales and Sandra Mitchell of CBS News about the water conservation challenge. Pete Tucker had a goal as Mayor to make Hermosa Beach residents understand the value of conserving water in the community.  On October of 2011, Pete Tucker and Jeff Ducklos attend the West Basin Water Harvest Festival.  Hermosa Beach to accept the top honor of conserving water in Southern California.  Hermosa Beach residents made this possible by conserving water for future generations.

One unnamed City Official said off the record, "This is hypocrisy at its highest level and I am disappointed how we have handled it."  "Carbon Neutral", "Green City", "Green Taskforce" sounds kind of ridiculous now that we are considering oil drilling doesn't it?

Its incredible to see hear Pete Tucker discuss how he got all these groups in Hermosa Beach to help win this award by sending out 4000 emails.  Groups like the Green Task Force, Volleyball groups, Ed Foundation, Women's Club (Ace in the Hole), Public Works, Planning Commission.

It strikes me as absurd that the City of Hermosa Beach is evening allowing an oil company to discuss the idea of drilling for oil in our community with the risks it poses on our water supply.  Pete Tucker and Jeff Ducklos need to start acting like responsible Councilmen by defending our safety.

Hermosa Beach council member's have said absolutely nothing on the oil drilling issue because they are bound taken a vow to remain silent during the process.  This is absurd when their primary responsibility is to protect the safety residents.  Not an oil company.

Pumping millions of recycled or reclaimed water into the ground for the purposed of oil drilling is not only risky for the residents but also jeopardizes our drinking water.

Most people don't realize that 40% of Los Angeles drinking water comes from an aquifer underground.  

E&B is going to use a bogus study that says fracking does pose any environmental impacts or contaminate our water which is a complete fraud.  If you want to read more about how this study has been refuted.  Balkwin Hills Fracking Study. 

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.

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.

Fracking in California Can Induce More Earthquakes

Josh Fox of Gas Land Movie reveals unregulated fracking going on in Los Angeles, California and could cause a major earthquakes in the near future.  The USGS is studying the relationship to fracking but regulation still seems a long ways off.  Oil and gas companies are not required to disclose fracking even though hundreds of wells in Southern Califoria have and are currently being fracked.

In Oklahoma , Arkansas, and in Ohio, earthquakes shake the ground and rattle nerves. But these quakes are not the work of mother nature. The USGS says a controversial oil production method called "fracking" is responsible for triggering them

Fracking is a drilling method where highly pressurized water, sand, and a cocktail of chemicals are injected miles into the ground to shatter the rock, which allows the oil and gas to escape. A critical part of this process is getting rid of millions of gallons of waste water. A common way to do that is to re-inject it back into the earth. And that's what can trigger an earthquake. E&B will tell you they are not doing the controversial "hydraulic fracking" but won't be specific on how their technique differs from the above.  Do we want to take this risk?  

Oil Pipeline through Redondo Beach to Torrance Exxon?

Hermosa Beach Pipeline to Exxon Torrance Through Redondo Beach

I guess Stop Oil Hermosa Beach just enlisted the help of 200,000 more people from Redondo Beach and Torrance who could feel the impacts of the proposed oil project.

Of course this was one of the last document posted on the Hermosa Beach E&B website.  Why would safety, noise or toxic air quality concern anyone from an oil company because they say everything is sooooooo safe?  E&B has minimized the safety impacts of this project and we plan to expose every last detail of facts they leave out.  Of course all the documents are posted as PDF and not searchable.  Its only 1000 pages to read.  However, feel free to start reading the noise impact study here.

E&B seems quite proud of their aesthetic renderings for the proposed drilling site.  However, there is no way to draw the winds or the toxic air we are going to be breathing.  I don't think anyone really cares how it looks when toxic air could be blown downwind to thousands. 

Cities That Have Banned Oil & Gas Fracking

Elections & City Council Bans

1)  Longmont, Colorado (Denver / Boulder Suburb) slaps drilling in face, Outspent 30-1 by oil and gas hacks, bans fracking within city limits. Not even close. 60%-40%.

2)  Mansfield, Ohio voters adopt Community Charter Amendment That Bans Toxic Injection Wells. Not even close 63%-37% 

3)  Ferguson, Pennsylvania voters approve Clean Air & Water Community Bill of Rights while banning injection wells, fracking & shale gas development.  52%-48%

4)  Not a ban but Carpinteria, California drilling initiative defeated oil drilling in 2010.  Blowout victory 70%-30%.

5)  Wellsburg, West Virginia City Council Banned Fracking

6)  Morgantown, West Virginia banned fracking and forced to zoning by judge ruling 

Read about more State initiatives underway.

I don't think people who have actually lived and own homes in Hermosa Beach, California have any intention of moving backwards to permit a century long ban of drilling in Santa Monica Bay. E&B is simply wasting our value time and City resources which could be better spent elsewhere.

E&B still has the opportunity to pack up their bags and go home to save face. 2014 is a long way away.

Please email any others I may have left off to jeff@drillingmaps.com

Hypocrisy of Councilmen Kit Bobko & Michael Divirgilio

Listen to Hypocrites Bobko & Divirgilio Rant About Transparency

Smart financial move - Beach Reporter Letter From Howard Longacre - October 18, 2012

During the Oct. 9 Hermosa Beach City Council meeting, all concerned had to again endure the self-righteous, condescending, bullying insults and obstruction from Councilmen Michael DiVirgilio and Patrick Bobko regarding a revised banking relationship with the Bank of America.

These two sneaky councilmen owning no property, home, or business in Hermosa Beach, having no historical roots in the South Bay, having both moved and rented units here after briefly renting in Redondo (obviously to use Hermosa Beach for their political self-aggrandizement) have both, more than worn out their welcome.

DiVirgilio and Bobko's badgering questions and ridicule on Oct. 9, nauseously mocked a well-researched revision to the long-neglected banking contract. Hermosa Beach will now see its present $24,000 yearly banking charges completely eliminated. And additionally with new cash credits to be received into Hermosa's account; a net savings to Hermosa's treasury of over $140,000 during the next five years, and without a necessity of expending $75,000 to change banks.

DiVirgilio and Bobko insulted virtually everyone with their pre-planned, disgusting and despicable attacks. They seemingly even elicited an Executive Director of the Hermosa Beach Chamber of Commerce (conveniently a local officer of a banking corporation appropriately rejected from consideration) to complain at the meeting.

DiVirgilio and Bobko's attempt to deceive and manipulate the minds of the public and press with their disingenuous drivel regarding "transparency" and process, was just more illustration of their increasingly offensive and self-serving behavior that wastes and disrupts council meetings costing several thousand dollars per hour.

Much appreciation for this successful new banking contract belongs to Mayor Jeff Duclos, Councilman Peter Tucker, Councilman Howard Fishman, Interim City Manager John Jalili, City Manager Tom Bakaly, the city's finance department staff including the deputy city treasurer, and especially City Treasurer and the financial officials of neighboring cities and agencies who freely gave of their expertise and wisdom.

Howard Longacre 

Bobko and Divirgilio are the same two guys that negotiated (without a public hearing) a deal that is not legal and they have conflicts of interest along with other City officials.  The hypocrisy of Hermosa Beach City Councilmen Kit Bobko and Michael Divirgilio is appalling.  Only 1 only company bid on the deal and they made the city borrow $17.5M with no public forum or RFP. A grand jury needs to investigate what is behind their confidentiality agreement. This video is from the Octorber 9, 2012.  Read more on the top reason this is a bad oil deal for Hermosa Beach.

The City Treasurer was anything but nontransparent taking bids from 19 banks and shared it with the public?   You took a bid on the oil deal from a friend Gary Brutcsh who sourced the deal to you?  Transparency?  Your untrustworthy voting record also speaks for itself.

Request for Open Forum to Discuss Illegal Deal Denied

Its a Legal Issue and Not a Voter Issue

What Is Horizontal Shale Oil Drilling?

What E&B Natural Resources Doesn't Want You to Know

Here are the safety issues and risks of Slant Oil Drilling in Hermosa Beach that E&B Natural Resources doesn't want you to know.

1)  Chemicals and mud are pumped into the ground
2)  More black tar and oil on our beaches 

3)  Hole is drilled just under the deepest fresh water source from the surface. 

4)  Cement sealing always fail and thus why fracking contaminates water underground

5)  Drilling will go completely horizontal only under the Ocean. (1/4 mile)

6)  80 pieces of pipes at 495 pounds each to drill one well (2400 total pipes for 30)

7)  87 tons of pipe per well will be inserted into ground (2,610 tons of pipe for 30)

8)  Perforation gun inserted into ground for an explosions underground

9)  Hydraulic fracturing has huge safety issues under pressure

10)  Pump jacks may not be used so what will they be using?

Steve Layton says, "The best place to find oil is in an old oil field." = Fracking

Oil Companies Do NOT have to Disclose Fracking Sites in CA

Fracking is Still Highly Unregulated in California
See the Fracking Health Dangers of Gas Here


Baldwin Hills Oil Sink Hole in 1963 See (6 min 25 seconds)
Pressurized Oil Extraction Wells Caused This

Hydraulic Fracking Diagram

California Fracking Unregulated

E&B Oil Reveals Hydraulic Pumping Will Be Used

E&B further explains their hydraulic fracking technique using 27 oil wells and 3 water injection wells. The drilling rig will be 87 feet tall and will be temporarily on site for four months before it is removed. During that four month period three exploratory wells and one water injection well will be drilled. This will allow us to analyze the quality, along with the rate and flow, and other important factors of the produced oil, gas and water.

Pressurized Hydraulic Oil Extraction Wells Caused This
Redondo Beach Wins $2.5M Law Suit From Oil Companies in 1997

Eight oil companies named in the lawsuit were required to replace the oil they had taken with pressurized water. He said that because they did not, the surface under the water sank up to four feet in some areas. The subsidence led the breakwater to sink four feet below its designed height of 22 feet, Goddard said, and caused storm-generated waves to crash over the protective wall. He said the storm caused more than $8 million in damage to local businesses, a cost absorbed by the city. Several major oil companies were named in the suit, including Texaco, Exxon, Trident and Phillips Petroleum, Goddard said. 

Hermosa Beach City Council Voting Record

Hermosa Beach City Council Voting Record

Kit Bobko & Michael Divirgilio are the dissenting votes or absent for all of these City Council Meeting votes?  

1)  Voted 3-2 No on Outsourcing Parking Meters

2)  Voted 3-2 Yes Hiring Tom Bakaly as new City Manager

3)  Voted 3-2 Yes to Ban Polystyrene
4)  Voted 4-1 Yes Banning Smoking on Strand & Pier Plaza
5)  Voted 4-0 Yes (Bobko Absent) Banning Smoking on Beaches
6)  Voted 3-2 Yes Approval of Bank of American Banking contract
6)  Voted 3-2 No Suspend City Treasurer Cohn who was a victim of extortion.

Oil Drilling Settlement Negotiations

The City Council seems to have a clear divide on most voting issues in recent months as described above.  However, I often have to scratch my head to understand the logic behind some of the dissenting votes in recent months.  Bobko and Divirgilio are clearly working as a team and it all seemed to culminate immediately after both launched a PR campaign to promote their oil settlement.  The big question is:  Why were the two of these guys negotiating our oil settlement deal together?  Shouldn't they have had Duclos, Fishman or Tucker in the room negotiating? Neither Bobko or Divirgilio own a home in Hermosa Beach.  It would have been impossible for a third City Councilman to participate in the negotiations because it would have been in violation of the Brown Act.  Were the residents represented properly?  I don't think so.  What business, lobbyists or people are motivating these two individuals to make make their voting decisions or press their unpopular agendas?

Outsourcing Parking Meters vs Replacing With Credit Card Machines

I think many residents who are disappointing about the City not even considering outsourcing are missing the point of Duclos, Fishman and Tucker voting no.  However, the City can always outsourcing at any point in time but lets take some baby steps and install credit card machines that we own first.  Some of the high salary and union problems might naturally go away over time.  90% of the problems can be solve by installing credit card machines and that does not require outsourcing.   The City currently collects $2.5M per year from coins and who knows we might be about to double this to $5M simply by putting in credit card machines and managing the price per spot during peak hours.  What if we charge $5 per hour for parking near the pier during peak hours.  Hint, hint . . .  this might control some of the alcohol related problems of people flooding into our city.  Controlling our own meters with credit cards is not that hard and Manhattan Beach has already demonstrated they can do it profitably.

Kit made faulty parallel assumptions that it works for Newport Beach, why not in Hermosa?  His PR was recognized in the national media blaming $100,000 meter maids as the problem?  Why did Kit conveniently leave out that installing credit card machines would have $0 cost to the city and would be profitable immediately.  This does not require outsourcing.  So, what his suggestion to outsource politically motivated or does he have the best interest of our city at heart?  Does he or his law firm RWG have any political ties to the large outsourcing firms that manage parking meters?  Does Kit once again have a conflict of interest he would like to explain?  Was he motivated to get a "deal" in return for some political donations down the road.

Kit routinely makes statements and negotiates deals that are not backed with any financial analysis.  Kit also does not appear to see the big financial picture or have a cohesive fiscal strategy as it relates to the affect on the community.  Kit is not a property owner and has no skin in the game.  He simply seems to look for revenue opportunities or ways to save money to further his political platform.  I wish Kit would simply more rational decision based on what is right for the community and not based a political ideology.  I am a conservative voter and thinker myself, however, I don't agree with much Kit's thinking or ideas as they pertain to what is best for our community.   

Councilmen Howard Fishman said the city should move immediately on replacing coin-operated meters with credit card parking meters to solve 90% of the problems. City Treasurer wrote a memorandum to the council encouraging the installation of credit card-accepting meters as other municipalities have done in order to increase funds and efficiency.  “With credit card meters, revenue goes up overnight,” Pete Tucker said.   Former Police Chief Greg Savelli, who now runs the parking enforcement department of the Los Angeles Department of Transportation, also spoke against outsourcing, saying the service the officers provide “goes beyond the balance sheet.”

“What we have now is fantastically expensive,” Kit Bobko said who seems adamant about cutting costs and saving money no matter what the outcome.  Outsourcing to save money or outsourcing to generate (oil drilling) is going to be a common platform for Kit to propel himself to a higher political office.  Kit gave no credible financial arguments justifying his outsourcing position.

Hiring Hermosa Beach City Manager Tom Bakaly

"First, let me say that I think without question that Tom was an impressive dude, and I think that he provides a lot of earned and demonstrated skills that meet our needs and that match quite nicely with our uniqueness," said Councilman Michael DiVirgilio.  Council votes 3-2.

"In Hermosa Beach, we're whistling past the graveyard because we are not having any financial troubles yet,” Bobko said. “We weren't going to stand firm and ask of our leader, the person who is in charge of our city's staff, to do what we want the staff to do, which is to pay for his own first contribution. That is deeply disappointing and I think a failure of leadership for this council…

I don't think either of these guys have much experience running a business or hiring and firing people.  My philosophy has always been to hire the best CEO you can get and pay him top dollar.  There are a lot of problems in the City right now and we need a strong, competent, financially oriented person to do the job.  I am confident Tom Bakaly was a great hire and will help turn the City around that has been neglected in many areas.

Banning Polystyrene in Hermosa Beach

Bobko and Divirgilio have been routinely voting together.  Bobko is a Registered Republican and Divirgilio seems to be a Democrat having worked for Jane Harmon.  However, the two of them seem to be singing to the same song when it comes to local voting matters.  They also don't seem to be able to sway the other 3 council members very often on their views.  Both Bobko and Divirgilio were dissenting votes (3-2_ as well on Hermosa Beach polystyrene ban.   This was shocking since Michael Divirgilio once led the Green Task Force in Hermosa Beach and pounded the table in his campaign about a City that needs to become "carbon neutral".

Banning Smoking on Strand, Pier Plaza & Beaches

It goes without saying who was the lone voter in the 4-1 vote to ban smoking on the Pier and Stand. Kit Bobko does not support banning smoking on the Pier or Strand.  Kit Bobko was also conveniently absent for the 4-0 that banned smoking on the beaches.  Does he have your health at interest or his political views?

Hermosa Beach Renegotiates Banking Contract First Time Ever Recorded

Bank of America has been the Bank of Hermosa Beach for over 40+ years. It would have cost the City over $100,000 to change banks.  Also, Treasurer Cohn renegotiated the current contract for the first time ever and was not touched by John Workman prior Treasurer.   Hermosa Beach was paying $24,000 per year in banking service fees and a $28,000 rebate?

Bobko and Divirgilio Accuse Treasurer Cohn of Sloppy Non-Transparent Work?

Sloppy?  Transparency?  Do Mr. Divirgilio and Mr. Bobko have a personal issue with Treasurer Cohn?  Aren't they being hypocritical about the City Treasurer lacking transparency in the bank bidding process of 12 banks? Correct me if I am wrong but you are the same to 2 councilmen that negotiated a $17.5M settlement with any transparency and 1 oil company? They seem to think the backroom oil deal is justified because of the ongoing litigation but you did brought in a 3rd party without any bidders. Their lack of due diligence and transparency on this deal is appalling and speaks for itself. We are talking about saving money in a banking relationship of $50,000 per year in banking fees vs a $17.5M check they wrote without any bidders while jeopardizing the health and safety of its citizens. I think the two of them have some explaining to do.  Their hypocritical voting record speaks for itself.   E&B loaned the City of HB $30M to settle the lawsuit with Macpherson. How many companies got to bid on this? Only 1 company sourced by Gary Brutsch and Michael Divirgilo and Kit Bobko. Why doesn't the LA Times investigate this?

What is an Environmental Impact Report (EIR)?

Hermosa Beach is about to begin the Environmental Impact Report (EIR) process and its important that you know what it is, the timing, costs, players, politics & process.  An EIR is the planning document which describes the environmental impacts associated with a oil drilling project.

17 Environmental Impacts

The EIR will analyze 17 different environmental impacts and will determine which ones are significant. Aesthetics, Agricultural resources, Air Quality, Biological resources, Geology and Soils, Greenhouse Gases, Hazards, Hazardous Materials, Hydrology and Water Quality, Land use and Planning, Mineral Resources, Noise, Population, Real Estate, Public Services, Recreation, Transportation and Traffic, Utilities, Mandatory Findings.  It also describes mitigation measures to reduce the impacts to an appropriate or acceptable level.

Planning Commission & City Council

The information within an EIR allows the decision-makers (the Planning Commission and/or the City Council) to make an informed decision when considering whether or not to approve a project. The report also assists with deciding if approval conditions (entitlements) are necessary. The ultimate decision to approve a project, however, remains with the decision-makers. When the Planning Commmission or City Council approves an EIR, it is simply an acknowledgement that the EIR is true and accurate. It is only a step towards project approval, not a guarantee. The Planning Commmission or City Council may decide to instead decide to approve or deny the project based on overriding considerations. For example, the Planning Commission may find that a proposed project may provide monetary benefits to a community that don't outweigh a problems identified in the EIR, such as unsafe air quality, heavy truck traffic & real estate price decline that will negatively impact property tax revenue.

Public Review

There may also be one or more meetings about the report, either as a separate meeting or as an item in a Planning Commission agenda. Note that approval of the environmental impact report does not mean that the project is approved. Once the report is approved, decision-makers review the project, taking into account the information in the report and other considerations. The public has an opportunity to review and provide comments on a draft of an EIR by contacting, in writing, the planner listed on the EIR. Public input is then included in the EIR, and considered by the decision-makers along with other aspects of the report.

EIR Project Managers

The Hermoa Beach City Council approved a contract with Ed Almanza & Associates, a Laguna Beach firm, to serve as the project manager.  However, there is no public information on this firm available on the internet as of today which is concerning.  The firm will oversee the city’s review of the proposed project at large. The Council also approved a consulting contract with former City Manager Stephen R. Burrell.

Opinion:  "Can Voters Rely on an EIR to Make a Voting Decision?"

It is important for the entire South Bay to understand this will be the 4th time in 80 years that Hermosa Beach has been faced with an oil drilling ballot measure. Hermosa Beach overwhelmingly banned oil drilling in public votes in 1932, 1958 and 1995. An Environmental Impact Report (EIR) will address many aspects of this process, but it will never fully disclose all the damage that oil drilling will bring about in a town 1.3 miles square. Our position as a great area to live will be severely tarnished. These safety and environmental damage resulting from oil drilling will effect generations to come.

An EIR is supposed to be a thorough analysis of: Air quality, Biological resources, Geology and soils, Greenhouse gases, Hazards and hazardous materials, Hydrology and water quality, Land use and planning, Mineral resources, Noise impact, Population and housing, Public services, Recreation, Transportation and traffic, Utilities & any other Mandatory findings of significance like real estate values. Upon the completion of the EIR, a thorough examination of the safety risks will be necessary as it was in the previous MacPhearson oil drilling project. A report like Bircher Report (safety study), which was done in relation to the MacPhearson project, will need to be done.

Its too complicated for the voters to rely on an EIR alone.  Its too complicated and does not address safety to the residents.  An EIR is meant to simply figure out how a project could get approved. Don't be surprised to see this EIR analyzed and separated by parts to make the environmental impacts appear smaller and insignificant to residents. It’s very important that the City Council get a report similar to the Bircher Report to fully understand the risks these kind of project present.

Hermosa Beach has been down this road before and completed an Environmental Impact Report for Macpherson Oil in the 1990's at this exact location. The City Council elected at that time showed great care and diligence in their decision making. They commissioned the Bircher Report and reviewed the EIR and concluded that it was unsafe and the air quality impact would have been too harmful on residents. Three City Council members Sam Edgerton, Julie Oakes and John Bowler unanimously agreed that to not proceed with oil drilling after reviewing all the findings. They felt that the safety risks were too great to allow the oil drilling project to proceed.

We need the EIR to be interpreted by professionals who will take into account the same safety issues our 1990 City Council had to. Our current council chooses not to heed this previous unanimous vote of their predecessors. It is unknown if they even read the prior EIR and related safety reports before agreeing to this settlement arrangement. The current city council viewed the outcome of a jury trail too risky and unlike our 1998 city council they put the citizens at risk, or in this case obviated the due diligence of a complicated project into a political vote where safety arguments and facts might get lost in the rhetoric..

Former City Manager Steve Burrell Unretires to Manage Oil EIR

Steve Burrell's Retirement Party Two Months Ago April 5, 2012

At the May 22, 2012 City Council Meeting, City Officials are set to approve a Professional Services Agreements with Ed Almanza & Associates and Stephen R. Burrell for consulting services to augment staff in processing land use entitlements and an Environmental Impact Report in connection with an oil drilling project.

Here is a letter to the City Council regarding this consulting agreement from long time resident Barbara Guild who beat oil drilling in 1957.  Barbara Guild has also done an extensive review on the agreement signed by Hermosa Beach and suggest that you read her oil agreement comments here.

Barbara Guild's Letter to City Council of Hermosa Beach

Dear Mayor Duclos, Councilman Fishman, Councilman Tucker, Councilman DiVirgilio, Councilman Bobko,

STOP and THINK before you go forward tonight and inappropriately approve not one, but two of the following items:  “Agreements for Consulting Services to Augment Staff in processing Land Use Entitlements and an Environmental Impact Report in Connection with an Oil Drilling Project.” DO NOT VOTE FOR THESE TWO AGREEMENTS!!! 

I have lived in Hermosa Beach for 64 years, and I am very interested in maintaining the flavor as well as the environment of our city. I actively defeated the Shell Oil Co. in their proposal to drill for oil in our tidelands in 1957. And I spoke to the Council, March13th, following the signing of the current agreement with E & B, where I stated that we are now starting with a clean slate and must realize this fact. 

The people of Hermosa Beach should be allowed to know which firms are bidding for the opportunity of preparing the necessary Environmental Impact Report. It should not be given to the first group that comes along. Allow those of us who are most interested in protecting our environment to come up with suggestions of who to engage. We have many environmental issues that need addressing, and a two-man group from Orange County, with no office on record, only a P. O. Box, should not be signed up without further consideration and public input.

The Settlement Agreement you signed, March 2, 2012, limits, to $50,000, the amount of money E & B will provide to reimburse the City for only these THREE items from (Paragraph 4.4 a):

1) The EIR,

2) The CEQA 

3) The Election to rescind the Oil Drilling Ban.

Former City Manager, Steve Burrell could earn $168,000 for each fiscal year (plus expenses), and the preliminary estimate for Almanza & Associates is $138,000. This would leave nothing to pay for the election, if it’s ever called.   Do you really think that E & B is going to pay for the contracts you might sign tonight? Please seriously consider your vote!

Yours sincerely, Barbara Guild

P.S. Here is Paragraph 4.4 of the March 2, 2012 Agreement the City made with E & B:

4.4 a. E & B’s Obligations Following Closing a. Reimburse City for the cost of preparation of an environmental impact report or supplemental environmental impact report (EIR) pursuant to the California Environmental Quality Act (CEQA) based on a Project description provided by E & B, should such an EIR be prepared and the cost of conducting a special election NOT TO EXCEED $50,000 as provided in Paragraph 4.6 (a). (Emphasis added). We are concerned why the city staff would need "assistance with processing the development application and other necessary entitlements" since this is a technical and straightforward procedure that shouldn't require a specialist consultant to accomplish. Unfortunately, Mr. Burrell placed a political cloud over his head by choosing to retire when he did. Had he stayed on longer, this contract would not be necessary. Although the city is not paying for his services, it has the appearance of double-dipping. Those opposing oil development will make hay of this which may very well distract from the serious issues of determining the safety of this project and proposed financial return to the city.

We would like to hear some details on why these people were chosen and what their qualifications and expectations are.  This comes from City Officials like Michael Divirgilio who is sounding the horn on more public transparency which I think is good.  Some questions I have for these individuals:

1) What are the details of this consulting agreement?

2)  How much are they getting paid and by Hermosa Beach?

3)  What is their history with the project, E&B, oil or lawsuit?

4)  What is their professional experience managing processes like this?

5)  Do Steve Burrell or Ed Almanza have any conflicts of interest?

6)  How will this facilitate the promise from City Council about making the EIR process public?

7)  Are any city residents involved in the EIR process?

8) Why are the we, the citizens, paying for this? Why isn't this cost being underwritten by the oil company? Or are we concerned that if they pay for it we won't get legitimate answers?

Please add your comments here. 

Michael Divirgilio's Beach Reporter Letter

Michael Divirgilio's Letter to Beach Reporter & Easy Reader

Transparency Needed

Michael Divirgilio

As a public entity, the City of Hermosa Beach goes to great lengths to publicize its decision making process whenever outside vendors are hired or public money is spent. We do everything possible to demonstrate what we are doing and have public discussions about why we are doing it. We did this for Pier Avenue street repairs and before building beach restrooms. We did it before hiring a website designer and we’re doing it now as we hire a waste hauler. We do it every time.

During last week’s City Council meeting I proposed implementing the same process as we begin hiring a new bank. Of all the things we should evaluate publicly, this seems like the most obvious since our banks will hold millions of dollars of the city’s money.

Only Councilman Kit Bobko thought this was a wise idea, keenly suggesting that what we needed in this process was “transparency.” Alarmingly, none of my other colleagues on the City Council were interested in public review or debate on this issue.

No doubt, we should have instituted this level of oversight a long time ago. But nonetheless, now that my proposal failed, it means our next bank will be evaluated and hired by one person: our new city treasurer, behind closed doors, without public input, without City Council oversight. The city’s funds will move from bank to bank without any oversight or public review at all. This is not how we do business in Hermosa Beach.

This is public money. A city treasurer is a public official, acting on the public’s behalf. No matter who the person, it is neither prudent nor responsible for a single individual to make financially driven decisions like this. The public and City Council should be involved at every step.

As your city councilman I will do everything possible to bring these background details to light and create standard operating procedures moving forward.

I was recently inspired by a Hermosa resident and Los Angeles Times reporter who won the Pulitzer Prize for breaking the Bell, California, salary scandal. He set a new standard for government transparency across the country.

Let’s show the same kind of leadership by setting a new standard for transparency in Hermosa Beach.

Michael DiVirgilio

Dangers to Hermosa Beach Residents if Oil Drilling is Permitted

Toxic Pollutants Released During Oil & Gas Drilling

Here are just some of the risks sited by the California Coastal Commission in 1992 for the proposed Macpherson slant oil drilling project that was blocked by a resident revolt.  Read the summary of the seven major risks addressed by the full California Coastal Commission detailed report.  Its important to note that none of these issues can be fully mitigated by new technology as E&B Oil will likely claim.  There are other risks associated with the project. 

E&B Natural Resources Sign at Site in Long Beach

#1)  This is an actual sign from E&B's drilling site in Long Beach, CA.  The previous applicant (Macpherson Oil) proposes to locate a hazardous oil and gas industrial development in a fully developed urban area with nearby residences.  Commission staff did not believe the applicant  had fully analyzed the potential worst-case accidental release of hydrogen sulfide (see Wikipedia definition) that might occur. In addition, some nearby wells have historically produced significant amounts of hydrogen sulfide. As a result, the applicant agreed to fund an independent, third party review of its hazard risk analysis. The consultant, Arthur D. Little, Inc., working under the direction of Commission staff, determined that hydrogen sulfide, an acutely toxic gas, could be encountered during drilling and/or production and could pose a significant safety risk to offsite populations. Hydrogen sulfide is lethal within a few breaths at concentrations of 1,000 parts per million (ppm), and kills within ½-hour at concentrations of 300 ppm. Injuries may occur at lower concentrations and occupational safety standards are triggered at 10 ppm.  

#2) The project poses a risk of fire and explosion. 

#3) Methane Gas Leaks & Explosions - Cause of BP Oil Spill

#4)  Withdrawal of reservoir fluids and associated changes in reservoir pressures may lead to subsidence. Subsidence of the nearshore area could lead to changes in beach profiles and result in loss of sandy beach. Subsidence can also cause increase seismic activity. 

#5) Re-injection of produced fluids poses a remote risk of increased earthquake activity.

#6)  Project-related operations could result in an accidental oil spill from the production facility/drilling site (a maximum 2,800-barrel spill), a tanker truck (a maximum 175-barrel spill), and/or a pipeline (a maximum 141-barrel spill).

#7)  I think this signs from E&B Oil explains our spilling concerns. 

#8) Reduction of clean air to breath.  Don't believe the lies that it won't stink.  

#9)  Drilling and well work-over activities require a  75 to 135-foot tall drilling rig which (a) contrasts sharply with existing neighborhood building heights, (b) will be somewhat visible from several coastal public viewing areas, and (c) isincompatible with the low-profile visual character of this beach community.  Apparently E&B Natural Resources will be proposing a smaller drilling rig. 

#10)  The applicant proposes to remove 12 parking spaces, six of which are Public Access currently available to the public on weekends for beach access.

Steve Layton's Oil Spill in 1998 as CEO of Equinox Oil

Oil Blowout Covered 2 Square Miles

In 1983, Mr. Steve Layton co-founded Alma Energy and Equinox Oil with his father and Mike Galesi. He served as President of Alma and Equinox from 1997 to 2000. In November 2000, Francesco Galesi purchased the Alma and Equinox assets out of bankruptcy after an Equinox oil spill and formed E&B Natural Resource Management Corporation. Mr. Layton was retained as President of E&B.

Steve Layton was CEO of Equinox Oil when on September 22, 1998, oil blowout occurred from a well owned by Equinox into the waters of Lake Grande Ecaille, in Plaquemines Parish, coastal Louisiana. A blowout is the uncontrolled release of crude oil and/or natural gas from an oil well or gas well after pressure control systems have failed.  This management failure should not be ignored by Hermosa Beach residents because it is not too dissimilar to lack of management oversight in the BP Gulf Oil Spill.   

The exact volume of oil discharged is unknown, but estimates range from less than 450 bbl to 1,500 bbl.  The oil was discharged in a jet that shot straight up approximately 200-300 feet into the air along with natural gas, produced water, and sand.  The blowout continued for approximately 11 hours, at which point the discharge was stopped.  Several thousand acres of surface water in Lake Grande Ecaille, as well as the Gulf of Mexico, were covered by slicks or sheens from the incident, and approximately 1,233 acres (2 square miles) of wetlands (Hermosa Beach is 1.3 square miles) were exposed to oil.  Soon after the massive Hurricane Georges passed near the area four days later on September 26, 1998, causing the response efforts to be suspended effectively letting the company off the "cleanup hook".  However, 33.8 discount acre years of marsh was lost.  Read about the environmental damage from Steve Layton's oil spill.

Mr. Steve Layton received a warning letter on August 13, 1997 from the Department of Public of Health & Human Services of safety violations.  Was this related to the lack of management oversight?

Chapter 11 bankruptcy of Equinox Oil Company Den norske Bank, ASA, individually and as agent for BNP Paribas and Comerica Bank - Texas (the Bank Group) loaned over $106 million to Equinox and Alma.  

Equinox Oil Company Oil Spill Damage Assessment, Restoration Plan & Environmental Assessment Prepared by:
Louisiana Oil Spill Coordinator’s Office/Office of the Governor
Louisiana Department of Environmental Quality
Louisiana Department of Natural Resources
Louisiana Department of Wildlife and Fisheries
National Oceanic and Atmospheric Administration
United States Fish and Wildlife Service

LIST OF PREPARERS
Chris Piehler Louisiana Department of Environmental Quality
John de Mond Louisiana Department of Environmental Quality
Derek Hamilton Louisiana Department of Natural Resources
Dick Stanek  Louisiana Department of Natural Resources
Heather Finley Louisiana Department of Wildlife and Fisheries
Jim Hanifen Louisiana Department of Wildlife and Fisheries
Terry Romaire  Louisiana Department of Wildlife and Fisheries
Gina Muhs Saizan Louisiana Oil Spill Coordinator’s Office, Office of the Governor
Chuck Armbruster Louisiana Oil Spill Coordinator’s Office, Office of the Governor
Cheryl Brodnax National Oceanic and Atmospheric Administration
Linda Burlington National Oceanic and Atmospheric Administration
John Iliff National Oceanic and Atmospheric Administration
John Kern National Oceanic and Atmospheric Administration
Tony Penn National Oceanic and Atmospheric Administration
Christy Poulos National Oceanic and Atmospheric Administration
Buddy Goatcher United States Fish and Wildlife Service
Warren Lorentz United States Fish and Wildlife Service