West, Texas Regulators Environmental Impact Report (EIR) Should NOT Have Been Trusted

Texas regulators knew in 2006 that the fertilizer facility that burned and exploded in West, Texasa had two 12,000-gallon tanks of anhydrous ammonia and was near a school and neighborhood, documents show. However, West Fertilizer Co., of West, Texas, told Texas Commission on Environmental Quality permit reviewers that emissions from the tanks would not pose a danger. That assertion was based on expected routine emissions, not the possibility of a catastrophic failure.

As a permit condition, the TCEQ required the company to build a wall between the tanks and a public road to prevent passing vehicles from striking the tanks. The company complied and on Dec. 12, 2006, the agency’s executive director issued an operating permit for the tanks, which already existed.

E&B Natural Resources is claiming that putting up this wall below will protect us from a similar explosion, fires and blowouts.  Are they lying as well?

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

Fatalities, Injuries & Property Damage Per Year from Pipeline Accidents 

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

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

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. 

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.

Settlement Agreement Comments

Below is a draft of our settlement agreement comments we are compiling from residents.  We welcome your comments so please email us with your comment structured similar to below.  If you want to read the full 45 page agreement you can download it on the HermosaBCH.org or at Google Docs.

Recitals, Page 1, A
Macpherson also obtained all of the necessary Permits to Construct for the Oil Project from the South Coast Air Quality Management District In November 1995 the residents of the City passed City Measure E an initiative measure that banned oil drilling in the City. 
Comment- South Coast Air Quality Permit ran out or cancelled March 30, 2000. 

Recitals, Page 1, A
In early 1998 and notwithstanding the passage of Measure E the California Coastal Commission authorized issuance of Coastal Development Permit No 29E86 to Macpherson far the Oil Project subject to conditions
Comment - Coastal Developmental Permit No. 29E86 never issued. 

Recitals, Page 2, D
Substantial revenue stream to be generated for City and the Hermosa Beach School District as a result of the payment to City and School District of royalties in association with the production of oil and gas reserves by E&B
Comment - How can School benefit from tidelands trust?

Definitions, Page 3, 2.10
School Lease means the lease between Macpherson and the Hermosa Beach School District
Comment - No lease on School property found. Where is this?

The Closing, Page 4, 3.2
Confidentiality Agreement previously signed on behalf of each of the Parties on February 17 2012
Comment -  Where is a copy of this?

Macpherson's Obligations At Closing: Page 5, 4.1 

1031 exchange as provided in Article X hereof all of Macpherson the School Lease and any other leases releases set forth in paragraph VI
Comments - Like-kind exchange, what's Macpherson doing here?  What other leases are involved in this agreement?

E&B's Obligations At Closing: Page 5, 4.3a 
Said assignment reserves to Macpherson from E B and its successors and assigns an overriding royalty of 1.5% of one hundred 100% of gross hydrocarbon production but otherwise
Comment - Macpherson keeps part of this going here.

E&B's Obligations At Closing: Page 6, 4.3c 

constitutes the E&B Loan of $17,500,000

Comment - Note this loan and how it's to be repaid by the city.

E&B's Obligations At Closing: Page 6, 4.4b 
Upon issuance of the drilling permit or in the event the City cannot issue the drilling permit as the sole result of action or inaction undertaken by and under the control of E&B (including without limitation) the failure of the California Coast Commission to issue a coast development permit. immediately

thereafter forgive $14,000,000 of the E&B Loan

Comment - Failure to meet conditions and most of loan is forgiven?  Where does the fact we are giving E&B a $15M property factor into the cost?  Total costs is more like $18.5M and more cheaper to vote no. 

City's Obligations Following Closing: Page 7, 4.6a 

Place on the ballot at a special municipal election in a manner that comports with all applicable law within six 6 months of a request to do so by E&B
Comment - Within 6 months call election!!!! "....notwithstanding inconsistent change in City's Municipal Code." ????

City's Obligations Following Closing: Page 7, 4.6b 

Vacate and make the City maintenance yard available for the construction of the Project as when and in the manner and subject to the conditions provided for in the Lease and repay Three Million Five Hundred Thousand Dollars of the E&B Loan through a deduction of royalties equal to 1.5% of gross proceeds. 
Comment - Vacate and make the City maintenance yard available? And where in the world is the city going to put it. Steve Burrell could never find another location for it, here or in Redondo Beach. Let's get real. this is an important issue.  This property is worth $15M and we are paying them $3M on top?  Total deal looks like $18.5M to vote yes.  

City's Obligations Following Closing: Page 8, 4.6d 

Grant as reasonably required by E&B all necessary rights of way 
easements franchises and other rights as necessary for subsurface pipelines < and other facilities and appurtenances in order for E&B to drill for produce market transport and sell all oil and gas produced from the subject lease 
Comment - Whoa Ho! Check out this demand. Dig up the streets or the greenbelt? And where will it terminate in Redondo Beach or AES?

City's Obligations Following Closing: Page 9, 5.4 

The parties recognize that Macpherson is materially changing its legal position and rights and property holdings in reliance upon the final and binding effect of this Agreement and any rescission of this Agreement would be a wholly inadequate remedy for Macpherson because rescission cannot possibly return to Macpherson the legal position and rights it held prior to the consummation of this Agreement
Comment - We need an attorney to explain this paragraph. It's legalese is convoluted.

Mutual Releases: Page 9, 6.1 

Effective upon the successful completion of the Closing in accordance with the conditions described in paragraph 3
Comment - What are these conditions in 3.3 

Mutual Releases: Page 10, 6.1 

the City hereby fully and finally waives releases and  permanently discharges Macpherson and its respective partners officers employees agents representatives and attorneys the Releases from any claims arising under the Lease any continuation extension amendment restatement or replacement of the Lease
Comment - Whoa Ho! What's this? What about compensation due the city for the past  Environmental reports, attorneys fees due the city, etc?

Mutual Releases: Page 10, 6.4 

Except as may be provided in this Agreement each of the Parties waives any and all claims for the recovery of any costs expenses or fees including attorney fees associated with the matters and claims released in this Agreement
Comment - Attorneys fees from earlier court cases? Have they been paid?

Defense of Litigation:  Page 11, VII
In the event that one or more lawsuits are filed challenging this Agreement and/or the actions implementing or contemplated by this Agreement the Parties to the extent named as parties defendant in the lawsuit will cooperate in good faith in the defense of the litigation and shall initially bear their respective attorneys fees and costs With the exception of a lawsuit challenging the approval of this Agreement itself should the Ballot Measure described in paragraph 46a pass E&B shall indemnify the City for all attorneys fees and costs incurred by City in the defense of litigation encompassed by this paragraph and also for any attorney fees and costs awarded to a plaintiff against City if any in such litigation
Comment - Does this mean the city can collect attorney fees if sued for this agreement?

Representations & Warranties:  Page 11, 8.1c
They acknowledge that the Stinnett Well has been plugged and abandoned and agree that Csity inability to convey the Stinnett Well to E B shall not constitute a breach of this Agreement or the Lease. 
Comment - Dave Lucero, what was the result of your looking into this well on the City's Yard?

Representations &Warranties:  Page 12, 8.2c

The force majeure provisions in paragraph 30 of the Lease apply and have applied during the pendency of the Action and the CUP remains valid. 

Comment - CUP is for a "Conditional" Use Permit. The  Use Permit itself was never issued, or was it? Wasn't the Fire Code in doubt?  In the CUP it states, "All CUP required studies and reports must be submitted to the City and approved before permit issuance."

Representations &Warranties By All Parties  Page 12, 8.3a
The Parties have received all corporate and other approvals necessary to enter into this Agreement on their behalf and that the persons signing this Agreement on their behalf are fully authorized to commit and bind the Parties to each and all of the commitments terms and conditions hereof and to release the claims described herein and that all documents and instruments relating thereto are or upon execution and delivery will be valid and binding obligations enforceable
Comment - Not so! The California Coastal Commission issued "approval with a long list of conditions" but never issued a "Permit" for Macpherson to drill in Hermosa Beach. So how does this affect this Settlement Agreement? Is Macpherson claiming to have abided by all the requirements of 15 b. of Lease No. 2 (it has with the City), i.e. "The Lessee shall also apply for and obtain all necessary permits from the City of Hermosa Beach...The Lessee shall also be responsible, at its sole expense, for alI necessary permits and approvals to be obtained from the California Coastal Commission...."
Representations &Warranties By All Parties  Page 12, 8.3d
The Parties have prior to the execution of this Agreement obtained the advice of independent legal counsel of their own selection regarding the substance of this Agreement and the claims released herein
Comment - Was the advice "independent"?
Representations &Warranties By All Parties  Page 13, 9.2
This Agreement and the Confidentiality Agreement discussed in Paragraphs 32 and 3 are an integrated contract and sets forth the entire agreement between the Parties hereto with respect to the subject matter contained herein 

Comment - If the Confidentiality Agreement is part of this, please, let's have a look at it.

Representations &Warranties By All Parties  Page 13, 9.5
This Agreement shall be binding upon and inure to the benefit of each of the Parties and their respective representatives partners officers employees agents heirs devisees successors and assigns
Comment - How about to the benefit of the people of Hermosa Beach?

(stay tuned more to come)

Hermosa Beach Slant Oil Drilling Maps

These maps are speculative drawings based in information we have gathered from the Macpherson proposals.  E&B oil has not submitted their drilling proposal yet.  

Map of the proposed Hermosa Beach slant oil drilling site will reach out into the ocean.  What is slant oil drilling?  The drilling will also go underground into Redondo Beach likely.  The California Coastal Commission has full authority of this drilling and has thus tidelands restrictions on where money from oil can be spent.  The oil site will also be less than 100 feet from homes when Colorado requires a 350 foot setback and California recommend 300 feet.

Do we really know what is underground nor want to disturb the environment with oil drilling pipes possibly poking through the ocean floor?  Do want want to risk the dangers of the ocean floor and our beaches sinking (subsiding)?

The proposed drilling site effects more than 50% of residents of Hermosa Beach.  Noise, air pollution, explosions or dangerous gases are all a potential consequence.  Not to mention the drilling site will be within a few hundred yards of your kids playing in the park.  If you run on the greenbelt in Manhattan Beach or Hermosa Beach there could be an oil pipeline to under it to Chevron Refinery in Torrance and/or a natural gas pipeline AES Power Plant in Redondo Beach.

Lets not forget about the fault line that runs across the Santa Monica Bay and the South Bay.  We have had several earthquakes offshore in Hermosa Beach and Santa Moncia bay in the past few years. 

 27 oil wells and 3 water injection wells for Fracking and Natural Gas

Horrible Air Quality

I am told by oil experts in the business that the odor from gases and drilling will be "awful" around the site.  There is no way to contain the odor or poisonous gases that come up our of the ground.  This map depicts 3 different wind scenarios we get in the area.  An onshore, offshore and no wind where the smell and gases get trapped in the valley.

Emissions generated during the drilling/development phase include vehicle emissions; diesel emissions from large construction equipment and generators, storage/dispensing of fuels, and, if installed at this stage, flare stacks; small amounts of carbon monoxide, nitrogen oxides, and particulates from blasting activities; and dust from many sources, such as disturbing and moving soils (clearing, grading, excavating, trenching, backfilling, dumping, and truck and equipment traffic), mixing concrete, and drilling. During windless conditions (especially in areas of thermal inversion), project-related odors may be detectable at more than a mile from the source.  Excess increases in dust could decrease forage palatability for wildlife and livestock and increase the potential for dust pneumonia.  See source.

250 Yard Heavy Impact Zone from Noise, Odor, Dangerous Gases and Explosions.   There are two parks, hundreds of homes and a jogging trail in the vicinity which I think is disgraceful.   There are probably 10+ kids under the age of 10 years old that live in the red boxed area.  Its just sad that no one thought through the ramifications.  

Projected Ripple Affect of Real Estate Losses

This is a Scenario of What Could Happen

comments powered by Disqus

Earthquakes From Drilling?

Ohio Earthquakes Linked to Natural Gas Drilling 

Read the LA Times Article

Enjoy this recent CBS News Story

One of the environmental impacts that we feel has not, was not adequately addressed initially and certainly now needs to be re-addressed, is the issue of earthquake hazards. And we have a declaration from Dr. David Jackson who's on the National Academy of Sciences.  Dr. David Jackson who's on the National Academy of Sciences. He is a respected geophysicist, was a professor at UCLA. He is on the California Earthquake Prediction Evaluation Council. And he said that the reinjection of water into the Hermosa Beach site, well the reinjection of water into any site will increase the likelihood of risk of earthquakes based upon an L.A. Times article and other studies that have come out recently about the fact that. Northridge has increased the risk of earthquakes in our basin. Read the State Lands Commission testimony transcript which he predicted in 1994 and its coming true in place like Ohio.

We are very concerned about the impact upon the oil and a as sanctuary in the Santa Monica Bay. Pipelines will go into the bay but could rupture in case of an earthquake. We're saving on the earthquake issue it wasn't properly considered by the by the city and now there's new information.  New studies indicate water re-injection increases the likelihood of earthquakes.

Redondo AES Power Plant Rebuild is Related

E&B Oil drilling is related to AES plans to rebuild Redondo's Power Plant.  E&B will be required to build a pipeline underneath the Hermosa Beach greenbelt down to Redondo Beach for trucks to transport and/or service the low grade oil.  Do you want big oil trucks driving into the community or a PowerPlant that could use the oil to run operations?  Who knows AES might have plans to process the oil on site.  We don't know but the timing of the the AES Redondo Power Plant remodel could be related!

The oil pipeline and the power plant are separate but do share the same nuisance factors. The oil will be piped down the greenbelt to a SCE tunnel (tube) that houses other piplines and utility type uses including fiber optics that land on our beach. Some is above ground (wires) with otherstuff below ground. The power plant AES used to run on oil and had several pipelines installed over the years. SCE controls this access under utility agreements.

We need to fight this one and see the big picture of what is going on.  Big business energy is attacking a community and its our job to protect our livelihood.  Join the fight on Facebook to Tear Down Redondo's Power Plant.  Also, read the the blog similar to ours AES Power Plant Must Go.