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October 21, 2010Gregory Scott
California State Lands Commission
1
California State Lands Commission Background
Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California Public Res. Code Commission given jurisdiction over all Oil and Gas Development on Sovereign Lands
Shares responsibility of oversight of oil drilling and production with the California Division of Oil, Gas, and Geothermal Resources
Statutory authority over all Marine Terminal oil transfer operations in 1990 (Lempert‐Keene‐Seastrand)
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Sovereign Lands – Coastal tide and submerged lands, and lands underlying rivers, streams, lakes, bays.Approximately 4 million acres and 1100 miles of coastline
School Lands – Onshore State owned lands for mineral and geothermal development.Approximately 1.4 million acres.
Marine Terminals – terminals, terminal pipelines, at all state coastal ports and inland terminals on navigable waterways
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California State Lands Commission Jurisdiction
Northern CA Gas
Northern CA Gas
Geysers Geothermal
Hard Rock Minerals
Salton Sea Geothermal
Santa Barbara Operations
Long Beach Unit
Huntington Beach Operations
MRMD Resource Areas
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Mineral Resources Management Division is responsible for all mineral leasing, development oversight, and protection of over 130 oil, gas, geothermal, and mineral leases
18 active offshore oil and gas leases 5 State water platforms and islands 36 offshore oil, gas, and utility pipelines 46,000 barrels of oil per day from state water platforms and coastal islands
60,000 barrels of oil per day from federal water platforms
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California State Lands Commission Mineral Responsibility & Oversight
State Platforms
Aerial THUMS Islands
State Oil Pollution Prevention ProgramsOffshore Oil Production Operations
Engineering review and approval of well drilling activities in state waters
Engineering review and approval of all offshore platform structural modifications and construction projects
Engineering review and approval of offshore oil and gas pipelinedesign, maintenance, inspection and testing
Technical staff surveillance and inspection of all platform safety components and spill prevention equipment on weekly/monthly basis
Full system safety audit of every component on all offshore platforms on a 5‐year return frequency
Evaluate operators capability and spill response resources during “surprise spill drills”
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Drilling & Facilities(Petroleum/Civil Engineers)
Review and Approve: New Well and Redrill Proposals Casing/Cementing Programs – depths, burst/collapse criteria, zone isolation
Directional Plans/Muds Programs Spill Contingency Plans/BOP Procedures Facility Proposals/Special Projects
On Site Inspections: Witness critical operations – conductors, casing, cementing, BOP’s
Ensure adequate spill response equipment/supplies Verify proper installation of facilities
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Pipelines and Spill Drills(Petroleum/Civil Engineers, Geologist)
Review and Approve: Pipeline Testing ‐ internal (smart pig/hydrotest) Pipeline Test/Results – CSLC calculations External Protection Program – wrapping, cathodic protections
Geotechnical Evaluations
On Site Inspections: Witness Internal Pipeline Tests Witness External Pipeline Repairs/Tests Witness spill drill exercises – desktop and deployment
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2991
3503 3004 208 3120
129
3242
1466145
429 410
SANTA BARBARA
HABITAT
C B A
HILLHOUSE
HOLLY
3150
Santa Barbara Oil Sanctuary
31337911
4000
1824
Rincon
Mobil/EllwoodPlant
ChevronCarpinteria
Plant Pacific OperatorsLa Conchita
Plant
MOBILRinconPlant
Sant
a Ba
rbar
a Co
unty
Vent
ura
Coun
ty
421
427
HENRYHOUCHIN
HOGAN
SLC Pipeline Locations
State Waters
EUREKA
ELLY ELLEN
EVA
EDITH
State Waters
EMMY
FreemanBay
San Pedro
Belmont ESTHER
Los AngelesCounty Orange County
8 (g) Line
HUNTINGTONBEACH
SEALBEACH
LONG BEACH
SANPEDRO
GrissomWhite
Chaffee
3033
91392
1634263413
3095
186
425
10 milesSLC Pipeline Locations
Subsea Pipeline Map
Oil Spill Boom
Petroleum Structures(Civil Engineers)
Review and Approve: Design and Construction – structural modifications, equipment loading, etc.
Contractor Safe Work Plans Barge/Boat Anchoring Plans ‐ crane lift and welding procedures/certifications
Oil Spill Contingency Plan, Critical Operations and Curtailment Plan
Site clean‐up and restoration procedures
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MRMD Operations & Compliance
Inspection Program Verifies regulatory compliance Promotes safety system reliability
Safety Audit Program Facility condition assessment & design review System safety and risk/hazard analysis Review Spill Plans & Operating Manuals Safety Assessment of Management Systems (SAMS)
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Monthly Platform Inspection
Areas covered: Platform shut down Wellhead shut in Pipeline shut down Flow safety, high & low level and pressure shutdowns Hydrocarbon & H2S gas detection systems Fire detection & suppression systems and equipment Spill response equipment emergency generator
Average of 2,922 physical tests per month Two – three days on site to complete Deficiencies corrected immediately or equipment is shut
down and isolated. 18
1919
Safety Audit Program
Comprehensive design analysis of 30+ year old marine facilities
Verification of equipment “fitness for purpose” and maintenance programs
Evaluation of operating personnel qualifications and organizational safety culture
Monitor correction of deficiencies Complements and enhances existing Engineering and Inspection activities
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Effectiveness of Offshore Pollution Prevention Programs Oil Operations
168 million barrels of oil produced from offshore state lease platforms
Incidences are less than 12 per year Incidence average volume is less than one ounce Average volume in past 10 years is less than ½ barrel/yr Pipelines inspected and tested annually, and all meet acceptable criteria for continued service
Will introduce new requirements for BOPE certification on all drilling wells on state leases
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Offshore Producing Environment in State Waters
Shallow water depth, 55’ to 211’ water depth range Shallow well depth, approximately 3,500 to 5,000 feet vertical subsea
Low pressure producing environment (generally production operations in old, pressure reduced fields)
Few offshore facilities Low volume of production – Approx 100 BOPD well production
Artificial lift requirement – very few wells capable of natural flow
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All Marine Terminal oversight performed by Marine Facilities Division staff
27 Marine Terminals in ports and coastal sites
>6000 oil transfers each year at these sites
91 million gallons of oil transferred daily
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California State Lands Commission Marine Terminal Responsibility & Oversight
Marine Terminal Transfer Operations in Port
Witness oil transfers at all terminals in CA ports Regulations developed to ensure safe operations at all marine terminals
Regulations developed to increase training standards for all operating personnel, management, and outside contractors working at terminals
Regulations developed for more stringent terminal pipeline testing and inspection
Marine Oil Terminal Engineering and Maintenance Standards (MOTEMS) regulations adopted by Building Standards Commission
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State Oil Pollution Prevention ProgramsMarine Terminal Operations
Effectiveness of Marine Terminal Program
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Conclusions Oil production facilities is State waters are carefully monitored and maintained at a high level of integrity
Oil spill prevention and surveillance programs are effective in assuring a high level of system efficiency and safety
State programs achieve a high level of oil producing operator cooperation and an environment of increased safety awareness
State programs result in an elevated level of confidence in facility integrity and capability to operate within design limits
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Conclusions Marine Terminal pollution prevention programs and regulations have resulted in greater terminal structural integrity, better trained personnel, and a declining incidence of spills
State oil producing leases are less susceptible to uncontrolled releases as experienced in the Gulf because of the considerable differences in operating environment
Track record relative to spills incidences and volumes from oil production facilities and marine terminals has been consistently low, and declining
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