Score: +1 (1/0/0)
Ventura County Grand Jury • 2015-2016

Ventura County Crude Oil Pipelines

Published: April 12, 2016 27 pages
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Findings 27 findings

F01
No single government entity has complete regulatory oversight into the condition of the crude oil pipeline array within the County. The following Federal and State agencies have (collectively) the responsibility and authority to provide oversight of crude oil pipelines within the County and within areas where a spill will impact the County. Each agency has its own particular domain of authority and responsibility. Those regulatory agencies and their areas of responsibility are:  United States Department of Interior, Bureau of Safety and Environment Enforcement – regulates and monitors pipelines from three miles seaward of the mean high tide line to 200 miles at sea  United State Department of Transportation, Petroleum and Hazardous Materials Safety Administration, Office of Pipeline Safety - sets minimum safety standards for all crude oil pipelines and may delegate its regulatory authority to State entities as negotiated with those entities  California Office of the State Fire Marshal - has accepted the responsibility to regulate and monitor intrastate crude oil transmission pipelines Ventura County Crude Oil Pipelines 7  California Department of Conservation, Division of Oil, Gas, and Geothermal Resources – regulates and monitors gathering pipelines. Many entities are involved with the crude oil pipeline permitting process. The following is a partial list of those with permitting authority in areas in or near the County:  California State Lands Commission - issues permits for tidal and submerged lands (from the mean high tide line to three miles out to sea)  California Coastal Commission - issues permits for California Coastal Zone  California Department of Transportation, Bureau of Design - issues permits for crude oil pipelines intruding into highway rights-of-way  County - issues conditional use permits for new pipelines, revisions of existing pipelines in coastal and non-coastal zones, and for surveillance of abandoned pipelines in non-coastal zones of unincorporated areas of the County (FA-01, FA-02, FA-04, FA-08, FA-11, FA-12, FA-13, FA-14, FA-15, FA-16, FA-17, FA-18, FA-19, FA-20, FA-22, FA-23, FA-25, FA-26)
F1 Page 1
This would remove the need for the County to make its own assessments or do independent analysis and thereby minimize cost. (FI-01, FI-02, FI-03) Responses Responses required from: Board of Supervisors, County of Ventura (FI-01, FI-02, FI-03) (R-01) References Ref-01. Hessen, Bruce H., California Department of Conservation, Division of Oil, Gas, and Geothermal Resources, “Overview of Division Programs and Ventura County Activities” presentation on August 7, 2014, http://ventura.granicus.com/MetaViewer.php?view_id=18&clip_id=3634 &meta_id=428175 (accessed February 9, 2016). Ref-02. U. S. Department of Transportation, Pipeline and Hazardous Material Safety Administration, Pipeline Safety Stakeholder Communications, “Petroleum Pipeline Systems”, http://primis.phmsa.dot.gov/comm/PetroleumPipelineSystems.htm?noc ache=3424 (accessed February 9, 2016). Ref-03. Ventura County Planning Division, “Oil and Gas Program”, http://www.ventura.org/rma/planning/permits/oil-gas/oil-gas.html (accessed February, 2016). Ref-04. Oil Policy Excerpts, Ventura County Coastal Plan (amended September 16, 2008), http://www.countyofventura.org/rma/planning/pdf/permits/oil/Coastal_ Plan_Oil_Policies.pdf (accessed February 24, 2016). Ref-05. Santa Barbara County, Energy Division System Safety and Reliability Committee (SSRRC) charter, http://www.sbcountyplanning.org/energy/permits/ssrrc.asp (accessed February 9, 2016). Ventura County Crude Oil Pipelines 9 Ventura County 2015 – 2016 Grand Jury Final Report Ref-06. United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration, Pipelines Safety Stakeholder Communications, “Regulatory Fact Sheet: California”, http://primis.phmsa.dot.gov/comm/FactSheets/States/CA_State_PL_Saf ety_Regulatory_Fact_Sheet.htm?nocache=9134 (accessed February 9, 2016). Ref-07. United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration, Supporting Community Response, “State Programs”, http://www.phmsa.dot.gov/pipeline/stateprograms (accessed February 9, 2016). Ref-08. California Office of the State Fire Marshall, Division of Pipeline Safety, http://osfm.fire.ca.gov/pipeline/pipeline (accessed February 9, 2016). Ref-09. Legislative Information, California Government Code Section 5101051019.1, http://www.leginfo.ca.gov/cgibin/displaycode?section=gov&group=51001-52000&file=51010-51019.1 (accessed February 9, 2016). Ref-10. Salazar, Ken, Secretary of the Department of the Interior, “Order No 3299”, “Establishment of the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement, and the Office of Natural Resource Revenue”, May 19, 2010, http://elips.doi.gov/ELIPS/0/doc/444/Page1.aspx (accessed February 9, 2016). Ref-11. Public Resources Code, Division 20, California Coastal Act (2015), http://www.coastal.ca.gov/coastact.pdf (accessed February 9, 2016). Ref-12. California Department of Transportation, Utility Permits Manual, http://www.dot.ca.gov/hq/traffops/developserv/permits/pdf/manual/Ch apter_6.pdf (accessed February 9, 2015). Ref-13. State of California, “California Statutes and Regulations for Conservation of Oil, Gas, and Geothermal Resources”, October 2015, ftp://ftp.consrv.ca.gov/pub/oil/laws/PRC10.pdf (accessed February 9, 2016). Ref-14. Schmick, John T and Strachota, Robert J., Right of Way, March/April 2006, “Appraising Public Utility Easements”, http://www.shenehoncompany.com/wpcontent/uploads/2012/08/AppraisingPublicUtilityEasementsPartI.pdf (accessed February 9, 2016). Ref-15. State of California, Office of the State Fire Marshall, “Pipeline Safety Division- Hydrostatic Testing”, http://osfm.fire.ca.gov/pipeline/pipeline_hydrotest.php (accessed February 9, 2016). Ref-16. Ventura County Planning Division, “Ventura County Non-Coastal Zoning Ordinances, Division 8, Chapter 1 of the Ventura County ordinance Code”, last amended September 22, 2015, 10 Ventura County Crude Oil Pipelines Ventura County 2015 – 2016 Grand Jury Final Report http://www.ventura.org/rma/planning/pdf/zoning/VCNCZO_current.pdf (accessed February 9, 2016). Ref-17. Ventura County Sheriff, Office of Emergency Services website, https://www.vcsd.org/oes.php (accessed February 9, 2016). Ref-18. McGreevy, Patrick, Los Angeles Times, “Gov. Jerry Brown overhauls oil pipeline laws after Santa Barbara spill”, October 8, 2015, http://www.latimes.com/local/political/la-me-pc-gov-brown-on-oilspills-20151005-story.html (accessed February 22, 2016). Ref-19. California Legislative Information, “SB-295 Pipeline safety: inspections”, https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=2015 20160SB295 (accessed February 9, 2016). Ref-20. California Legislative Information, “SB-414 Oil spill response”, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=2015 20160SB414 (accessed February 9, 2016). Ref-21. California Legislative Information, “AB 864 Oil spill response: environmentally and ecologically sensitive areas”, http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=20152 0160AB864 (accessed February 9, 2016). Ref-22. Natural Resources Damage Assessment, “Refugio Oil Spill Natural Resource Damage Assessment Update”, November 2015, https://www.countyofsb.org/asset.c/1741 (accessed February 9, 2016). Ref-23. Capps, Louis, Representative, California 24th Congressional District, “Letter to the Honorable Hannah Beth Jackson and Honorable Das Williams”, June 26, 2015, http://capps.house.gov/sites/capps.house.gov/files/documents/0625%2 0field%20hearing%20package.pdf (accessed February 9, 2016). Ref-24. Kacik, Alex, Pacific Coast Times, “Refugio oil spill cleanup costs near $100 million”, June 27, 2015, http://www.pacbiztimes.com/2015/06/27/refugio-oil-spill-cleanupcosts-near-100-million (accessed February 9, 2016). Ref-25. Serna, Joseph, Los Angeles Times, “Refugio oil spill may have been costlier, bigger than projected”, August 5, 2015, http://www.latimes.com/local/lanow/la-me-ln-refugio-oil-spillprojected-company-says-20150805-story.html (accessed February 9, 2016). Ref-26. Alpert Reyes, Emily, Los Angeles Times, “L.A. leaders want someone overseeing oil operations in the city full time”, February 2, 2016, http://www.latimes.com/local/lanow/la-me-ln-petroleum-chief20160202-story.html, (accessed February 10, 2016) Attachments Att-01. National Pipeline Mapping System Map of Ventura County Ventura County Crude Oil Pipelines 11 Ventura County 2015 – 2016 Grand Jury Att-02. Att-03. Att-04. Att-05. Final Report California State Fire Marshal Crude Oil Pipeline Map Ventura County Coastal Zone Map Illustration of Coastal and Seaward Zones Crude Oil Pipeline Responsibilities/Roles in Ventura County Ventura County Crude Oil Pipelines Ventura County 2015 – 2016 Grand Jury Final Report Glossary TERM DEFINITION BOS Board of Supervisors, Ventura County BSEE Bureau of Safety and Environment Enforcement, an entity of the United States Department of Interior Caltrans California Department of Transportation CCC California Coastal Commission CEQA California Environmental Quality Act CFR Code of Federal Regulations Common Carrier A pipeline whose owners/operators accept, convey, and transport oil delivered to the pipeline without regard to its source County County of Ventura CUP Conditional Use Permit Custody transfer facility The infrastructure element (valve, fitting, pump, etc.) that represents the interface between one entity’s responsibility and a second entity’s responsibility Deepwater Horizon British Petroleum oil platform in the Gulf of Mexico which exploded and caused a major oil spill on April 20, 2010 DOGGR Division of Oil, Gas, and Geothermal Resources, an entity of the California Department of Conservation DOI Department of The Interior, an entity of the United States Government DOT Department of Transportation, an entity of the United States Government DPS Division of Pipeline Safety, an entity of the California Office of the State Fire Marshall EHD Environmental Health Division, an entity of the Ventura County Resource Management Agency Federal Refers to the United States Government Governance All processes of governing Grand Jury 2015-2016 Ventura County Grand Jury Ventura County Crude Oil Pipelines 13 Ventura County 2015 – 2016 Grand Jury Final Report Mean high tide line The line on a chart or a map which represents the intersection of the land with the water surface at the level of mean high water MMS Mineral Management Service, an entity of the Department of Interior OCS Outer Continental Shelf OES Office of Emergency Services, an entity of the Ventura County Sheriff’s Office OPS Office of Pipeline Safety, an entity of the Department of Transportation OSFM Office of the State Fire Marshall, an entity of the State of California PHSMA Pipeline and Hazardous Material Safety Administration, an entity of the Department of Transportation Private carrier A pipeline built and operated by a company to convey and transport oil from its own source PD Planning Division, an entity of the Ventura County Government RMA Resource Management Agency, an entity of the Ventura County Government SLC State Lands Commission, an entity of the California State Government Smart pig An inspection device that records information about the internal conditions of a pipeline as it is propelled through a pipeline. It is used to detect and measure corrosion and metal loss internally and externally on the pipe wall. State State of California Test validity Current and accepted VCSO Ventura County Sheriff’s Office 14 Ventura County Crude Oil Pipelines Ventura County 2015 – 2016 Grand Jury Final Report Attachment 01 National Pipeline Mapping System Map of Ventura County Ventura County Crude Oil Pipelines 15 Ventura County 2015 – 2016 Grand Jury 16 Ventura County Crude Oil Pipelines Final Report Ventura County 2015 – 2016 Grand Jury Final Report Attachment 02 California State Fire Marshall Crude Oil Pipeline Map Ventura County Crude Oil Pipelines 17 Ventura County 2015 – 2016 Grand Jury 18 Ventura County Crude Oil Pipelines Final Report Ventura County 2015 – 2016 Grand Jury Final Report Attachment 03 Ventura County Coastal Zone Map Ventura County Crude Oil Pipelines 19 Ventura County 2015 – 2016 Grand Jury 20 Ventura County Crude Oil Pipelines Final Report Ventura County 2015 – 2016 Grand Jury Final Report Attachment 04 Illustration of Coastal and Seaward Zones Ventura County Crude Oil Pipelines 21 Ventura County 2015 – 2016 Grand Jury 22 Ventura County Crude Oil Pipelines Final Report Ventura County 2015 – 2016 Grand Jury Final Report Attachment 05 Crude Oil Pipeline Responsibilities/Roles in Ventura County Ventura County Crude Oil Pipelines 23 Ventura County 2015 – 2016 Grand Jury 24 Ventura County Crude Oil Pipelines Final Report Ventura County 2015 – 2016 Grand Jury Ventura County Crude Oil Pipelines Final Report
F02
The County does not have a thorough understanding of the state of the total crude oil pipeline array within the County. This would include knowing the validity of testing, the condition and age of the pipelines, the degree of conformance to the regulations/laws/standards, and the risks assessed by regulatory authorities. (FA-09, FA-11, FA-13, FA-14, FA-15, FA-16, FA-17, FA-18, FA-19, FA-20, FA-21, FA-22, FA-23, Att-05)
F03
The County’s emphasis (other than the permitting process) is on rapid and appropriate response to emergencies, including pipeline failures. The County has a capable infrastructure for responding to a crude oil pipeline spill. That infrastructure is augmented by Federal, State, and private entities as driven by the severity and/or location of the spill. Failures of these pipelines could directly impact County residents, first responders, and the environment. (FA-03, FA-04, FA-09, FA-10, FA-21, FA-24) Recommendations
F04
The State recently enacted three new laws increasing the pipeline oversight and crude oil spill response capabilities of the various entities within the State. (Ref-18, Ref-19, Ref-20, Ref-21)
F05
The County has several hundred miles of intrastate pipelines and hundreds of miles of gathering pipelines. The County has no interstate pipelines. There are 135 active Conditional Use Permits (CUP) for gas and oil activities within the County. (Ref-01, Ref-03, Att-01, Att-02)
F06
The County is the State‘s third largest oil producer. It has 34 active oil fields (including 2 offshore) and 40 active operators. During calendar year 2013, Ventura County produced 8.9 million barrels of crude oil. (Ref-01)
F07
The website of the Ventura County Resource Management Agency (RMA) includes a description of the County oil infrastructure in the coastal zone: “There are two offshore pipelines and landfall sites on the North Coast. These are the Dos Cuadros Pipeline that transports OCS [Outer Continental Shelf] oil and gas to the Rincon facility. The landfall site is just north of the Seacliff Community in the Rincon area. The other offshore pipeline is the Carpinteria OCS Pipeline with a landfall site about 0.25 miles northwest of the community of La Conchita.” (Ref-04)
F08
Additional key elements of the County’s pipeline coastal zone infrastructure described in the website are “…six onshore pipelines. Five of these are “private carriers” while the sixth is a “common carrier” and subject to the regulation by the PUC. The “common carrier” is a pipeline that connects the La Conchita oil and gas processing facility with the Rincon oil and gas processing facility.” (Ref-04)
F09
Near Refugio State Beach in Santa Barbara County, a two-foot diameter interstate crude oil pipeline ruptured on May 19, 2015. Santa Barbara County has a mechanism, the System Safety and Reliability Review Committee, to maintain insight into the status of all crude oil pipelines in Ventura County Crude Oil Pipelines 3 Santa Barbara County EXCEPT the pipeline that ruptured. As an interstate pipeline, it was excluded from Santa Barbara County insight through a law suit by the (then) pipeline owner. It is estimated that the current pipeline owner, Plains All American, will bear costs in damages, remediation, and fines totaling between $100 and $257 million. There are multiple investigations currently underway examining aspects of the rupture. (Ref- 22, Ref-23, Ref-24, Ref 25)
F10
The effects of the pipeline rupture impacted beaches in Santa Barbara, Ventura, and Los Angeles counties for months following the rupture. Other impacts included hundreds of oiled and dead animals. (Ref-22) Facts Describing Governance Responsibilities
F11
All pipelines are required to conform to a set of minimum standards set by the Office of Pipeline Safety (OPS), a division of the Pipeline and Hazardous Material Safety Administration (PHMSA) within the United States Department of Transportation (DOT). “The federal government establishes minimum pipeline safety standards under the U.S. Code of Federal Regulations (CFR), Title 49 ‘Transportation,’ Parts 190 - 199. The OPS has overall regulatory responsibility for hazardous liquid and gas pipelines under its jurisdiction in the United States.” (Ref-06)
F12
The PHMSA may delegate its responsibility for oversight to State entities. It provides funds to mitigate the costs to the State of bearing those responsibilities. As stated in the PHMSA website, “Pipeline safety base grants are authorized by Title 49 of the United States Code (49 U.S.C.) Chapter 601 §60107 – State Pipeline Safety Grants. To qualify for federal grant funds a state agency must participate in the pipeline safety program either under certification in accordance with 49 U.S.C. §60105 or under an
F13
The PHMSA has delegated its operational safety oversight authority for intrastate transmission pipelines to California’s Office of the State Fire Marshal (OSFM). This delegation is renewable annually. The State does not have responsibility for interstate pipelines. The OSFM established a Division of Pipeline Safety (DPS) to manage the regulation of the crude oil pipelines. The DPS is also responsible for oversight/regulation of crude oil pipelines in railroad and highway rights-of-way. According to the OSFM website, “In 4 Ventura County Crude Oil Pipelines 1981, the California Legislature established the Hazardous Liquid Pipeline Safety Act with the intent that the OSFM shall exercise exclusive safety regulatory and enforcement authority over intrastate hazardous liquid pipelines. The OSFM currently regulates the safety of approximately 4,500 miles of intrastate hazardous liquid transportation pipelines.” (Ref-08, Ref- 09)
F14
The United States Department of Interior (DOI) has the authority over all mineral resource activity between 3 and 200 miles offshore, a zone called the Outer Continental Shelf (OCS). Prior to the Deepwater Horizon oil spill in the Gulf of Mexico on April 20, 2010, the Department of Interior’s Mineral Management Service (MMS) was responsible for both regulating and encouraging development of oil resources. As a direct result of the Deepwater Horizon event, the MMS was reorganized into three different entities with the intent of removing conflict of interest within the regulating organization. The three new organizations are:  The Bureau of Ocean Energy Management – responsible for resource evaluation, planning, and leases in the OCS  The Bureau of Safety and Environmental Enforcement (BSEE) – responsible for safety, response, and removal preparedness  The Bureau of Natural Resources Revenue – responsible for royalty and revenue collection, distribution, auditing, and compliance investigation (Ref-10)
F15
The RMA website states, “State tide and submerged lands include the area from mean high tide seaward to the three-mile boundary with the Federal OCS. Development of oil and gas resources on existing leases in this area is subject to the regulatory authority of the California State Lands Commission (SLC).” Tidal and submerged lands are part of the coastal zone. (Ref-04, Ref-11) (Att-03, Att-04)
F16
The RMA website further states, “The California Coastal Commission (CCC) is another agency involved in the review of development on State Tidal and Submerged Lands. This review is accomplished in accordance with the requirements of the California Coastal Act, which establishes stringent standards of environmental protection.” The Coastal Zone also includes a strip of land inward from the mean high tide line. (Ref-04, Ref-11) (Att-03)
F17
The California Department of Transportation (Caltrans) has permitting authority for crude oil pipelines that intersect with, cross and/or run longitudinally along State highway rights-of-way. (Ref-12)
F18
The State of California Department of Conservation (DOC), Division of Oil, Gas and Geophysical Resources (DOGGR) has oversight and regulatory authority over gathering crude oil pipelines that connect facilities within a field to nearby storage facilities or to intrastate and interstate pipelines. (Ref-01, Ref-13) Ventura County Crude Oil Pipelines 5
F19
Crude oil pipelines are permitted/authorized on railroad rights-of-way by the owners of those rights-of-way. They are regulated by the OSFM/DPS. (Ref-14)
F20
One of the primary ways in which California pipeline safety standards exceed the minimum federal standards is testing for pipeline integrity. Federal regulations mandate that a pipeline system be hydrostatically tested before initial operation begins and periodically thereafter. California laws mandate that each pipeline system be tested by an independent third- party certified by the OSFM. In these hydrostatic tests, the hazardous liquid is removed from the pipe and replaced with water. The pipe is then pressurized to 125% of the maximum pipeline operating pressure and held for eight hours. Testing results are submitted to the OSFM for review and approval. Tests are randomly witnessed by OSFM engineers. In certain cases, OSFM has approved the use of internal inspection tools, "smart pigs", in lieu of hydrostatic testing. In these cases, the test results are also submitted to the OSFM for review and approval. (Ref-15)
F21
On October 8, 2015, Governor Brown signed the following bills into law:  SB 295 which substantially increases the crude oil pipeline responsibilities of the OSFM and increases the frequency of pipeline testing  AB 864 which requires pipelines in environmentally sensitive areas to be equipped with leak detectors and automatic shutoff valves  SB 414 which “…seeks to speed response to spills by enlisting commercial fisherman and other local boat operators to help contain leaks in their area.” (Ref-18, Ref-19, Ref-20, Ref-21)
F22
The County has the authority to issue permits for pipelines within unincorporated areas of the County. This authority includes inland and coastal areas to the mean high tide line. This permitting authority defines the terms and conditions which must be met by the entity seeking to install, modify, or repair a pipeline and must be consistent with the California Environmental Quality Act (CEQA). This function is carried out by the Planning Division of the Ventura County Resource Management Agency which issues conditional use permits (CUPs). The County authority does not extend to highway and railroad rights-of-way nor to incorporated cities in the County. (Ref-01, Ref-04, Ref-16)
F23
The County Plan and Non-Coastal Zoning Ordinances set forth the regulations for pipelines and facilities. (Ref-04, Ref-16)
F24
The County has initial primary responsibility in the event of a crude oil pipeline spill. The OES has developed an Emergency Response Center, multiagency communications infrastructure, and emergency response plans to allow the County to respond to disasters. In addition to the OES, the primary entities involved are the public safety first responders such as 6 Ventura County Crude Oil Pipelines the Ventura County Sheriff’s Office, local fire departments, and the Environmental Health Division of the RMA. Other entities, including State and Federal, respond as needed. The County conducts drills periodically to test its capability to respond to disasters. (Ref-17)
F25
The pipeline owners have the responsibility to obtain permits for designing, building, operating, maintaining, repairing, upgrading, and shutting down/deactivating the pipelines following the regulatory and permit conditions. The pipeline owners’ role includes (but is not limited to):  Adhering to all conditions established in CUPs  Adhering to all applicable Federal, State, and County regulations regarding gathering and transmission oil pipelines, including California Government Code 5.5 (The Elder California Pipeline Safety Act)  Notifying State and local agencies three days in advance of a scheduled pipeline test  Hiring independent entities to test the pipelines  Submitting the test results to the appropriate government regulatory entity (Ref-09)
F26
Based on recent events and recognizing the complexity of the regulatory structure, the Mayor of Los Angeles will hire an industry expert to serve as the city’s petroleum administrator to act “…as both an expert and a skilled coordinator.” (Ref-26) Findings

Recommendations 1

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

No Responses Found 3

Government entities assigned to respond to this report. No response documents have been linked in our database.

California Coastal Commission Agency
California State Lands Commission Agency
Ventura County Sheriff Elected County Office