California State Lands CommissionCalifornia State Lands Commission

Mineral Resources Management Division

Long Beach Unit Safety & Environmental Audit Proposal

June 23, 2011

Mineral Resources Management Division

Long Beach Unit Safety & Environmental Audit Proposal

June 23, 2011

Regular Item 136

California State Lands Commission—Mineral Resources Management

BackgroundBackground April 28 Commission Meeting

LBU Program Plan – insufficient details on: Safety Programs Environmental Protection Programs

Commission ordered City to revise Program Plan: Include an Environmental and Safety Audit Complete within 15 months

Directed staff to: Return within 60 days, a detailed scope of the Audit Scope to include identification and analysis of the Environmental

and Safety Risks Human Injury Adverse Environmental Impact Significant Property Damage

From Audit findings, provide recommendations to Program Plan Identify funding w/ no impact on net revenue to General Fund

California State Lands Commission—Mineral Resources Management

LBU Environmental & Safety Audit Overview

LBU Environmental & Safety Audit Overview

Environmental and Safety Audit Scope (Exhibit B) Purpose of Audit Description of Facilities to be Audited Audit Activities – Description of Audit Categories

Audit Standards & Criteria to be Verified (Exhibit C)

Audit Duration SLC Staff Resources Estimated Cost of Audit Funding Source Impact / Recommendation

California State Lands Commission—Mineral Resources Management

Island GrissomIsland Grissom

California State Lands Commission—Mineral Resources Management

Safety Audit ScopeSafety Audit Scope Scope:

Equipment Function & Integrity Field Inspection of all 4 Islands, and onshore facilities Review Maintenance Safety Systems testing Environmental and Emergency Response elements

Electrical Audit by Contract Electrical Engineers Technical Design Evaluation

Hazards Analysis reviewed Administrative Review

Operations Manual & Operating Procedures Oil Spill Contingency Plan Other Emergency Response Plans

Conduct Human and Organizational Factors Assessment Use SAMS tool - same 6 engineers

6 MRMD engineers for 15 months City LB and OLBI to provide documentation and support,

but don’t audit.

California State Lands Commission—Mineral Resources Management

Safety Audit Cost / FundingSafety Audit Cost / Funding

$1.25 mil. For MRMD staff & electrical contractor

The Oil Spill Prevention Administration Fund (OSPAF) funds the

Safety Audit Program.

No impact to state general fund.

Costs do not include expenditures to correct audit findings.

Expenditures that may occur to correct audit findings may be

Unit costs.

California State Lands Commission—Mineral Resources Management

Current Agency and Jurisdictional Oversight

Current Agency and Jurisdictional Oversight

City of Long Beach • Department of Oil Properties - Inspection and Monitoring• Fire Dept. - Inspection of Fire Protection Systems & Equipment

Division of Oil, Gas, and Geothermal Resources (DOGGR) Air Quality Management (AQMD)

• Permits• Monitoring of Fugitive Emissions / Natural Gas

Regional Water Quality Control Board (RWQB)• Permits

Fish & Game, Office of Spill Prevention & Response (OSPR) State Lands

• On-site Surveillance and monitoring of operations

California State Lands Commission—Mineral Resources Management

Delay caused by LBU AuditDelay caused by LBU Audit Interrupted audit schedule for offshore platforms

Platform Holly in the Santa Barbara Channel currently scheduled this summer

All Platforms and facilities will be delayed by 15 months

Effect of Long Beach Unit Audit on Current Schedule

Facility CompanyScheduled

Start

Delayed State Due to LBU

AuditPlatform Holly Venoco 08/01/2011 11/01/2012Rincon Island Greka 04/01/2012 07/01/2013Rincon Onshore Facility Greka 04/01/2012 07/01/2013Platform Emmy Aera 04/01/2013 09/01/2014Huntington Beach Strip Aera 04/01/2013 09/01/2014Huntington Beach Onshore Facility

Aera 04/01/2013 09/01/2014

Platform Eva DCOR 02/01/2014 05/01/2015Platform Esther DCOR 02/01/2014 05/01/2015Fort Apache Onshore Facility

DCOR 02/01/2014 05/01/2015

McGrath/Montalvo Venoco 02/01/2016 05/01/2017Ellwood Onshore Facility Venoco 02/01/2016 05/01/2017

California State Lands Commission—Mineral Resources Management

RecommendationRecommendation

Platform Holly Audit to start August 2011

LBU Audit to start January 2012