Overview of Santa Barbara County Oil Operations

Energy & Minerals Division

Planning & Development

February 24, 2016

Overview

This presentation will include information on:

• Offshore Oil & Gas Development

• Onshore Oil & Gas Development

• Pipeline Regulation & Safety

• Plains Oil Spill & Response 2

1896 offshore Summerland

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Average Daily Offshore Oil Production

Average Daily Offshore Oil Production

(thousands of barrels)

2010 2011 2012 2013 2014

Freeport McMoran

Pt. Arguello Unit (3) 5.3 5.1 4.5 4.3 3.8

Exxon Mobil

Santa Ynez Unit (3) 34.3 30.4 25.9 30.8 30.2

Venoco

Platform Holly (1) 2.4 2.2 3.3 4.8 3.8

Freeport McMoran

Pt. Pedernales Unit (1) 5.9 5.0 4.9 4.3 4.8

Total 47.9 42.8 38.5 44.2 42.5

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Offshore Regulatory Oversight

• Federal Waters - Federal Bureau of Safety and Environmental Enforcement (BSEE)

• State Waters - State Lands Commission, through their Mineral Resources Management Division (MRMD)

• Onshore processing facilities – County through the Systems Safety and Reliability Review Committee (SSRRC)

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Proposed - PRC-421 Recommissioning

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Proposed - Venoco South Elwood Field Project

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Federal Offshore Lease Program Update 2017-2022

• In January 2015, the Federal Government released the Draft Proposed Program

• No new offshore leases in California

• Existing leases may continue to produce – status quo

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Onshore Oil & Gas Development

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Santa Maria Pump Station

Onshore Production Totals

Oil Field 2013 2014 2015

(thru May)

Orcutt 3,915 3,750 2,769

Cat Canyon 3,940 4,325 3,621

Santa Maria 630 630 636

Cuyama 585 570 444

Totals 9,070 9,275 7,470

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*Barrels of Oil Per Day

Onshore Regulatory Oversight

• County has inspection and permit jurisdiction for all above ground activities

• State Division of Oil, Gas and Geothermal Resources (DOGGR) has jurisdiction below ground

• Both agencies are responsible for oversight and periodic inspections

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ERG Resources 233 wells

Pacific Coast Energy Company (PCEC)

96 wells

AERA 141 wells

PetroRock 231 wells

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Proposed Projects

Pipelines - Onshore

• Gathering Lines - Small-diameter pipelines that run relatively short distances within an oil field – Manual controls

– Oversight by County Petroleum Unit

• Transmission Lines – Larger-diameter pipelines that collect dry crude oil after processing and deliver product for sale to one or more end users – Monitoring/controls – SCADA

– Automatic Shutoff Systems

– Oversight by PHMSA or State Fire Marshall

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Plains Pipeline 901 & 903

• Constructed in 1986 and spans Gaviota to Pentland (Kern County)

• 24 / 30 inch diameter, 113 miles long

• Line 901 Ruptured on May 19, 2015 (~3,400 barrels)

– Line 901 shut in since the spill

– Line 903 shut in shortly after the spill

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Ruptured 24” Pipe

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Spill Site and Cliff Face

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Line 901 – Status & Next Steps • Ongoing field monitoring

• Incident investigation currently being conducted by the Federal Pipeline & Hazardous Materials Safety Administration (PHMSA)

– Issued Corrective Action Order

– Currently reviewing Root Cause Analysis and Remedial Plan for repairing the pipeline

– Will issue an Incident Report in late spring 2016

• Plains conducting anomaly repairs

• Separate NRDA Process also underway

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Pipeline Shutdown – Upstream Impacts

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Line 903 & FreePort McMoRan Purge

• FreePort offshore pipelines and onshore storage, and Plains Line 903 de-inventoried in December 2015

• 10 days to complete purging (Dec 1 – 10)

• ~120,000 barrels from FreePort McMoRan

• ~500,000 barrels total

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Exxon Mobil De-Inventory

• Offshore pipelines emptied and preserved

• 425,000 barrels in onshore storage since June 2015

• Application recently approved to de-inventory via tanker trucks

• ~2,850 truck trips over 3-6 months

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Questions?

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