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SR-511-001 (3) s //- t'JtO/ .. ~~~ " ~. t CA:RMM:kpl16jhpadv City Council Meeting 8-22-89 Santa Monica, California STAFF REPORT FROM: Mayor and City Council city Attorney Ordinance Granting a Franchise to Shell California Pipeline Company to Operate, Maintain, Inspect, Remove, Replace and Abandon a Pipeline and Appurtenant Facilities in certain Public streets of the city of Santa Monica, and Resolution Finding categorical Exemption and Certifying the Final Environmental Impact Report TO: SUBJECT: This staff Report recommends that the City Council take action necessary for the adoption of an ordinance granting a franchise to Shell California Pipeline company (hereinafter "Shell") for an existing pipeline for the purpose of transporting petroleum, under the terms and conditions described in the franchise agreement, and summarized below. Pursuant to the Santa Monica city Charter, Resolution Number 7855 (CCS), a "Resolution of the city council of the City of Santa Monica Declaring Its Intention to Grant a Franchise to Shell California Pipeline Company For An Existing Pipeline, It was duly adopted by the City Council on July 25, 1989, and published on July 29, 1989, and July 31, 1989. (Proof of publication is contained in Exhibit A.) The principal points of the franchise agreement are as follows: - 1 - B-1> Ave 22 1989 .. ~. ~ A. Twenty (20) year franchise. B. The annual franchise fee is Twelve Thousand Dollars ($12,000.00) adjusted annually by increases in the Producer Price Index for All Commodities. C. Shell has an option to extend the franchise for an additiona1 twenty (20) year term, subject to negotiations on a "reasonable fee. tl D. Shell shall maintain Fifty Million Dollars ($50,000,000.00) in liability insurance. This is a substantial increase from the Five Million Dollars ($5,000,000.00) required by the Interim Agreement under which Shell has been operating. The franchise which expired in 1981 required no liability insurance. E. Shell agrees to comply with all safety requirements of federal and state law. F. Shell may only use the pipeline for the transportation of petroleum as defined in Shell's Public Utilities Commission Tariff No. 1 effective September 16, 1988. Attached as Exhibit B is a declaration from N. Van Wingen, an experienced consulting Petroleum Engineer, attesting to the fact that this definition does not include refined gasoline. The expired franchise allowed the transportation of "petroleum, oil, and liquid hydrocarbon products thereof, and gas, fI which could have included refined gasoline. These terms are advantageous to the City considering the pending condemnation action instituted by Shell. Were such action successfully completed, Shell would be granted a fee - 2 - ~. ~. interest in the easement, and the City would be without authority to negotiate any of the above conditions. If Shell held a fee interest rather than a franchise, Shell could change the product transported from crude oil to refined qasoline, without the City's approval. The resolution contained in Exhibit' C takes action necessary to comply with the California Environmental Quality Act. The resolution: A. Approves a categorical exemption for the project due to the fact that the pipeline has now become a public utility. B. Makes the findings necessary to certify the Environmental Impact Report contained in Exhibit 0 and proceed with the project. RECOMMENDATION It is respectfully recommended that: ~. The City Council adopt the accompanying resolution. 2. The City Council introduce for first reading the accompanying ordinance. PREPARED BY: Robert M. Myers, City Attorney Mary H. Strobel, Deputy City Attorney - 3 - ~. ~. , ORDINANCE NUMBER AN ORDINANCE OF THE CITY OF SANTA MONICA GRANTING A FRANCHISE TO SHELL CALIFORNIA PIPELINE COMPANY TO OPERATE. MAINTAIN, INSPECT, REPAIR. REMOVE, REPLACE AND ABANDON A PIPELINE AND APPURTENANT FACILITIES IN CERTAIN PUBLIC STREETS OF THE CITY OF SANTA MONICA THE CITY COUNCIL OF THE CITY OF SANTA MONICA ORDAINS AS FOLLOWS: SECTION 1. In~erpretation of Franchise. (a) The word "Grantee" shall mean the Shell California Pipeline Company. a California corporation and a pipeline corporation within the meaning of California Public Utilities Code' 228, to which the franchise is granted by this Ordinance as well as its lawful successors or assigns. (b) The word "City" shall mean the City of Santa Monica. a municipal corporation duly organized and validly existing under the general laws of the State of California with corporate power to carryon its business as it is now conducted under the statutes of the State of California and the Charter of the City. (c) The word "use" shall mean to operate. maintain. inspect. repair. remove, replace and abandon a pipeline system together with all manholes. valves. appurtenances and service connections therewith and necessary and convenient for operation of the pipeline in. under. along and across certain public streets (hereinafter collectively referred to as "streetll or .streets.) located in City. described as follows: On Twenty-sixth Street from the Northwesterly boundary of the City of Santa Monica to Colorado Avenuei thence on Colorado Avenue to Cloverfield Boulevard; thence on Cloverfield Boulevard to Ocean Park Boulevard; thence in Ocean Park Boulevard to Twenty-third Street; thence on Twenty-third Street to Dewey Street; thence on Dewey Street to the southeast boundary of City. PDT8911703 - 0001.0.0 .~ .. 2 (d) The word "franchisell or "franchise property'l shall mean this. franchise to use a pipeline system in those streets set forth in subsection (c) of this Section. (e) The word "pipeline" shall mean the existing pipeline system including all manholes. valves and appurtenances. SECTION 2. Grant of Franchise. The right, privilege and franchise, subject to each and all terms and conditions contained in this Ordinance to continue to use the pipe- line for the use of transporting petroleum. as defined in Grantee's Callfornla P.U.C. Tariff No.1 effective September 16. 1988. in those streets contained in Section l(e} is hereby granted to Grantee pursuant to Section 1600, Article XVI of the Santa Monica Municipal City Charter. SECTION 3. Term of Franchise. This franchise shall be for a term of 20 years from the effective date of this franchise; however. said franchise may be sooner terminated by voluntary surrender or abandonment by Grantee, or by forfeiture for noncompliance with the tenms and provisions hereof. Grantee shall further have an option to extend this franchise for an additional 20-year term for a reasonable fee. to be negotiated by the parties hereto prior to the end of the initial 20 year term of this franchise. The parties shall commence negotiations on such fee upon notification from Grantee to City, which notice shall be given no sooner than eighteen (18) months nor later than twelve (l2) months prior to expiration of the 1n1t1al term. PDT8911703 - 0002.0.0 .. .. 3 SECTION 4. Compensation to the City. (a) Grantee shall pay to the City a fee of $12,000 per year. The first fee shall be paid upon acceptance of the franchise and annually thereafter on the anniversary of this franchise. (b) The compensation provided for in Section 4(a) shall be subject to an increase after the first year of the franchise on the anniversary date of the franchise, and each subsequent year thereafter during the term of this franchise. The amount of increase shall be computed pursuant to the Producer Price Index for All Commodities in the following manner: The base for computing the adjustment is the Producer Price Index for All Commodities, publiShed by the United States Department of labort Bureau of labor Statistics ("Index"), which is published for the month nearest the date of the commencement of the tenm of this franchise ("Beginning Index"). If the Index published nearest the anniversary date ("Extension Index") has increased over the Beginning Index, the franchise fee for the following year (until the next adjustment) shall be set by multiplying the franchise fee set forth in Section 4(a) by a fraction, the numerator of which 1s the Extension Index Ind the denominator of which is the Beginning Index. In no case shall this increased compensation be less than the franchise fee set forth in Section 4(a). If the Index is discontinued or revised during the term. such other mutually agreeable governmental index or computation with which it is replaced shall be used in order to obtain substantially the same PDT8911703 - 0003.0.0 .. .. 4 result as would be obtained if the Index had not been discontinued or revised. (c) The franchise fee set out in this section shall in no way limit Grantee's obligation to compensate City or any private citizen for any damage, claim, expense, or loss whatsoever as set forth in this franchise. (d) Grantee shall pay to the City, on demand, the cost of all repairs to public property made necessary by any operation of the Grantee under this franchise. ee) Any payment due from Grantee to City under any provision of this franchise which is not paid when due shall bear interest at the highest amount allowable by law, but the payment of such interest shall not excuse or cure any default by Grantee under this franchise. Such interest is separate and cumulative and is in addition to and shall not diminish or represent a substitute for any or all of City's rights or remedies under any other provision of this franchise. SECTION 5. Abandonment. Should Grantee elect to abandon all or any part of the pipeline, Grantee shall water wash the pipeline, fill the pipeline with an inert environmentally acceptable gas or other material and cap the pipeline. Grantee shall not owe the City any compensation for the privilege of said abandonment. PDT8911703 - 0004.0.0 .. ~. 5 SECTION 6. Insurance. Grantee at all times during the term of this franchise shall maintain liability insurance in an amount not less than $50.000.000 to cover any claim. expense. or loss arising out of the operation. use. maintenance or other privilege exercised under this franchise, including Grantee's contractual liability to indemnify City. The City. its city council, boards and commissions, officers, agents, servants and employees shall be named as additional insureds in said policy of insurance for all operations of Grantee relating to the operation of the pipeline within the City. Said policy of insurance shall contain the following provi- sions or endorsements: (a) The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. (b) An additional lnsured named herein shall not be held liable for any premium or expense of any nature on this policy or any extension thereof. (c) The provisions of the poliCY will not be changed. suspended, cancelled or otherwise terminated as to the interest of an additional insured named herein without first delivering to City twenty (20) days notice of such intention. (d) Grantee shall furnish to City a Certificate of Insurance Showing insurance as herein required. PDT8911703 - 0005.0.0 .. ~~ 6 SECTION 7. Maintenance and Repair. (a) Grantee shall maintain the pipeline in 8 good. workerlike manner and in conformity with all applicable and lawful federal. state and local rules and regulations and shall perform any necessary repairs. City agrees to process all permit and excavation applications in a timely manner and for a reasonable fee not to exceed the time periods and fees charged to other public utilities serving the citizens of the City. (b) Grantee shall conduct maintenance and repair of the pipeline with the least possible hindrance to the use of the streets for purposes of travel, and as soon as such work is completed, all portions of the streets which have been excavated or otherwise damaged thereby shall be placed in as good condition as the same were before the commencement of such work. to the satisfaction of the City. and any damage or injury suffered by any person by reason of any excavation or obstruction being improperly guarded during said work shall be borne by Grantee. (e) Grantee, upon completing any street opening. shall restore all streets. highways. private and public property to at least as good condition as the same existed 1n. immediately prior to said opening. and does by this franchise, guarantee that the work of restoration shall be good against all faulty workmanship and materials and shall, for a period of one (1) year thereafter. maintain all such street surfaces in as good condition as other portions of said street, not disturbed by said opening. (d) Grantee shall make such deposits of money or shall file such bonds with the City as may be required to insure satisfaction and completion of all construction act;Yity within public rights of way. PDT8911703 - 0006.0.0 .. ~~ 7 SECTION 8. Safety Requirements. Grantee shall comply with all of the requirements of 49 C.F.R. Part 195 and all other applicable federal and state regulations. SECTION 9. Pipeline Accidents. If any portion of any street shall be damaged by reason of breaks or leaks in any pipe or conduit constructed under this franchise. Grantee shall. at its own expense, repair any such damage and put such street in as good condition as it was in before such break or leak. to the reason- able satisfaction of the City. SECTION 10. Indemnlfication of City. (a) Grantee shall indemnify and hold City. its city council. boards and commissions, officers, agents. servants and employees harmless from and against any and all loss. damages, liability. claims, suits, costs and expenses. whatsoever. including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit. arising from or in any manner connected to the activities or work conducted pursuant to the franchise. (b) Grantee shall indemnify, defend and save harmless the City, its city council. boards and commissions, officers. agents, servants and employees, from and against any and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or resulting to any and all persons, firms or corporations furnishing or supplying work. services, materials, equipment or supplies in connection with activities or work conducted or performed pursuant to this franchise and arising out PDT8911703 - 0007.0.0 ~. ~~ 8 of such activities or work. and from any and all claims or losses what- soever. including reasonable attorneys' fees, accruing or resulting to any person, firm or corporation for damage. injury or death arising out of Grantee's operations. SECTION 11. Relocation of Pipeline Upon City's Re~uest. Grantee shall relocate without expense to the City any facilities installed, used, or maintained under this franchise if necessary to accommodate the construction of any public street, highway, alley or other public improvement. SECTION 12. City's Reserved Rights. (a) The granting of this franchise or any of the terms or conditions contained herein shall not be construed to prevent the City from granting over the route herein specified or elsewhere any identical. similar, or other type of franchise to any person. firm or corporation other than Grantee. (b) The City reserves the right to improve any highway. street, alley. or other public place or portion thereof over and within which this franchise is granted, including the widening, change of grade, construction or reconstruction of such highway, street, alley or other public place or portion thereof, and there is further reserved to the City and any political subdivision or district ~ith1n the City, the right to construct, reconstruct. install, repair and maintain in any such highway, street, alley or other public place or portion thereof, any public improvement. PDTB911703 . 0008.0.0 .. ~. 9 {c} The City reserves the right to give the Grantee any directions for the maintenance, construction, and repair of the pipeline as may be reasonably necessary to avoid sewers, water pipes, and conduits 1n other structures lawfully placed in or under the streets; and before the work of maintenance, construction or repairs of the pipeline is commenced, the Grantee shall file with the City Engineer plans showing the location thereof, which shall be subject to the approval of the City Engineer. (d) Nothing herein shall be deemed to make the City or any officer or employee of the City responsible or liable to said Grantee by reason of the approval of plans for the maintenance, construction and repair of the pipeline. The City, by granting this franchise, does not warrant the accuracy of such approval or information as supplied or given to the Grantee. SECTION 13. Prohibition Against Transfer. Grantee shall not assign, hypothecate or transfer this franchise or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of the City. said consent to not be unreasonably withheld. Grantee may however assign this franchise to any subsidiary, parent or affiliate company without obtaining the consent of City. SECTION 14. Condemnation. Notwithstanding anything to the contrary contained herein, this Ordinance shall not in any way affect the right, under law, of either party to commence eminent domain proceedings at any time. PDT8911703 - 0009.0.0 ~. ~. 10 SECTION 15. Forfeiture. If the Grantee of this franchise shall fail. neglect or refuse to comply with any of the provisions of this franchise or conditions thereof unless due to a cause beyond Grantee's control and shall not within thirty (3D) days after written demand for compliance. begin the work of compliance. or after having such beginning, shall not prosecute the same with due diligence to completion. then the City may declare this franchise and all rights and privileges forfeited and upon written notice to Grantee. this franchise shall 'be void and the rights of the Grantee shall cease. SECTION 16. Termination of Franchise. At the time of the expiration, forfeiture or other tenmination of this franchise, or the permanent discontinuance of the use of the pipeline. or any portion thereof. Grantee shall abandon the pipeline, or portion thereof, pursuant to Section 5 of this franchise. SECTION 17. Cumulative Remedies. No provision herein made for the purpose of securing the performance of the terms and conditions of this franchise shall be deemed an exclu- sive remedy, or to afford the exclusive procedure for the enforcement of said terms and conditions, but the remedies and procedures herein provided. in addition to those provided by law, shall be deemed to be cumulative. PDT8911703 - 0010.0.0 .. .. 11 SECTION 18. Notice. All notices, demands. requests or approvals to be given under this franchise shall be given in writing and conclusively shall be deemed served when delivered personally or when received 1n the United States Mail. postage prepaid. registered or certified. addressed as hereinafter provided. All notices, demands, requests or approvals from Grantee to City shall be addressed to City at: Santa Monica City Hal' 1685 Main Street Santa Monica, California 90401 Attn: City Attorney All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Shell California Pipeline Company c/o Shell Pipe Line Corporation P. O. Box 4848 Anaheim, California 92803 Attn: Division Manager SECTION 19. Costs of Litigation. If any legal action is necessary to enforce any provision hereof or for damages by reason of an alleged breach of any provisions of this franchise, the prevailing party shall be entitled to receive from the losing party all costs and expenses and such amount IS the court may adjudge to be reasonable attorney's fees for the costs incurred by the prevailing party in such action or proceeding. PDTB911703 . 0011.0.0 ~. .~ 12 SECTION 20. Counterparts. This franchise may be executed in several counterparts, each of which is an original, and all of which together constitute but one and the same document. SECTION 21. Captions for Convenience. The captions herein are for convenience and reference only and are not a part of this franchise and do not in any way limit. define or amplify the terms and provisions hereof. SECTION 22. Governing Law. This franchise has been made and shall be constructed and interpreted in accordance with the laws of the State of California. SECTION 23. Acceptance of Franchise. The acceptance of this franchise by the Grantee must be filed within 10 days after adoption of this franchise. Upon the filing of the acceptance, and provided this franchise has become effective. all franchises and privileges heretofore granted to the Grantee or 1ts predecessors in interest in respect to the pipeline shall terminate. SECTION 24. Execution. The Mayor of City shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be PDT8911703 - 0012.0.0 ~~ ~. published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. IN WITNESS WHEREOF the parties hereto have executed this Ordinance on this day of . 1989. Approved as to form: City of Santa Monica ROBERT M. MYERS Clty Attorney Shell California Pipeline Company PDT89117Q3 - 0013.0.0 13 ~~ .. EXHIBIT A STATE OF CALIFORNIA. I.::-~___. ...._ at.... Caoonty _ilII 1_..... 1Ioo_oI..gMwn.-.. _..... ~ 10 .._..1Ioo_111MI....._ I - 1M .......INI .... III tho ...- III ... . T.U~ ._11I_.,- .......... - __ JtU..'( "11m fIIIl1Ut l' In "'" tUI' III IU.TA .OJlH;^ c:-.ty 01 ~ ,.,...., _ _ _IIn_Id,IICIgoIJ._ oj _0' <ImA1lon IIr till SuporIar Court '" .... Cauntr III .... ......... ... III CoII__"'_oI1>>'- Mil". c:-_ at~l~ '............1... .....kOr. 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Y-a=.____ .. ~.!:...... .................-. _"'lo;;;;,~..",,= ...__........ Of_ =.::. ='" __:r_ ='..I::"::'"":~-::: ;:'".:"':'"2 -:s C".;.=,-==-~ -7 t::"'____....- --- .1-'1II.... ......~ 1I!IIWl..1iffIbaII ....... ...... ~..... ~.................. ......... .. ..... JoAll< - _ ol _"__"09 IL_ tilt GfMIMI.IIW.I....,., ~ ....-- ~ ::-a." . =IM......~.. :.~ =:1.:;....--..,.= .._......=...~...:~ ...__....":1__ =.= ..u-~ .,.. ~ -=-....,... ----~ 'l1_ .--~_... -..-..-- .. __a =::---... .. '-II. ~ .,.--. __ = :::. -:: ~__ ft:Jt-:iIttlf~~: -"~00Ij~"'-; _......_~-- :=0I"'~.:!..!i: ;;":,.~... _-:...~ :: =:c.::r= ii _., =.-;- ~.=.. -:'''':;: 0:-____.... :t ='-="?-.- -.- ~ EXHIBIT B ~ . . 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~ . 1 2 DECLARATION OF N. VAN WINGEN 3 4 I, N. VAN WINGEN the undersigned, do declare: 5 6 1. I am a Consulting Petroleum Engineer. I know all of the following facts of my own personal knowledge and, if called and sworn as a witness, could and would competently testify thereto. 7 8 9 2. I have the education, background, and professional 10 experience as set forth in my Biography, attached hereto as 11 Exhibit A. 12 13 3. I have reviewed the definition of petroleum contained in Shell California pipeline Company's P.u.c. Tariff No. 1 effective september 16, 1988 ("Tariff"), and attached hereto as Exhibit B. 14 4. Based upon my education, background, and professional experience, it is my opinion that the definition of petroleum contained in the Tariff does not include refined gasoline. I declare under penalty of perjury under the laws of the state of california that the foregoing is true and correct. Executed this 11th day of August, 1989, in San Marino, California. DATED: August ll, 1989 l/ J,~ D~ N. Van Wingert-~ Petr~leum Engineer ..,....-: . EXHIBIT A To Declaratlon . - ~ .LJ J. 'V U I f\ -t' &" ..... . . N. van Wtngen 1197 San Mar~no Avenue San Marino, California 9110B Phone: (Area Code 213) 682-2479 Education B.8. M.S. 'D.Sc. California Institute of Technology University of California (Berkeley) Adamson University Professlon_al Experience 1933-1935 1935-1937 1937-1938 1938-1940 1940-1942 1942-1944 1944-1947 1947-1949 Shell Oil Company Continental Oil Company University of California Richfield Oil Corporation Richfield 011 Corporation R1chfleld Oil Corporation Richfield 011 Corporation Oklahoma University 1949-1953 Petroleum Technologists, Ine. 1950-1953 1953-1954 1953-1964 1964-1976 1951-1959 1961-1969 1941- University oi Southern California Petroleum Technologists, !nc. University oi Southern CalUomla University of Southern California Occidental Petroleum Corporation U. S. Natural Resources, Inc. Consulting Petroleum Engineer Honors end Societies 1934 1938 1963 Jr. Production Engineer Geophysical Prospecting Graduate Work Production Engineer Senior Production Engineer Ass't Chief Production Engineer Chief Evaluation Engineer Professor of Petroleum Engineering (tenure granted 4-13-49) Vice President, Member of Board of Directors & Executive Committee Special Lecturer Member of Board of Directors Professor of Petroleum Engineering Adjunct Professor of Petroleum Eng. Director Director Member The Tau Beta Pi Association Member Society of the Sigma Xi Honorary Member Pi Epsilon Tau Member Society of Petroleum Engineers (American Institute of Mining and Metallur- gical Engineers) Member Society of Petroleum Evaluation Engineers Licensed Professional Enqlneer, State of CalifornIa, CertIficate No.. 114 and Province of Alberta, Canada (1953-54) Award, American Association of on Well Drilling Contractors (1955) Anthony F. Lucas Gold Medal awarded by AIMS (1985) Have ~een Listed in: Who's Who in America and associated volumes Who's Who In Engineering American Men of Science Who. s Who in American Education Dictionary of International Biography Royal Blue Book . BIOGRAPHY - contine . PROFESSIONAL SOCIETIES COMMITTEE ACTMTIES Page 2 AIME Activities (Society of Petroleum Engineers) Member Engineering Research Committee (1943) Member Nominating Committee (1946) National Vice-Chairman Production Engineering Committee (1946) National Chairman Production Technology Committee (1947) Counselor and Secretary-Treasurer Pacific Petroleum Chapter AD.1E (l946-47) Member Education Committee (1948) Member Membership Committee (1948) Member Gas Technology Conunittee (1949) Vice-Chainnan Oklahoma City Section (1949) Chalnnan Pacific Petroleum Chapter (1950) Member Board of Directors, Southern California Section (1950) Member Student Relations Committee (1950) (National) Councilor Pacific Petroleum Chapter (1951-52) Chairman Nominating Committee, Pacific Petroleum Chapter (1952) Vice-Chairman Registration Committee Annual Meeting (1953) Chairman Local Mfiliate Membership Committee (1953) Member Program Committee Southern Cal1iomia Petroleum Section (1955) (1973) Chairman Entertainment Committee Southern California Petroleum Section (1956) Member Los Angeles Technical Society Educotlonal Guidance Committee (1956) Member L. C~'''Uren Award Committee 1965-68 Co-Chairman Program Committee Southern California Petroleum Section (1967) Member Committee on Production Operations of SPE (1971) API Activities (DivIsion of Production) Cha1.rman Pacific Coast District Topical Committee on Production Technotogy (1944-47) Member Pacific Coast District Subcommittee on Core Analysis-Electrical Logging (to 1947) Member Pacific Coast District Subcommittee on Secondary Recovery (to 1947) Mid-Continent District Member of Secondary Recovery and COfe Analysis Electric logging and Production Technology Committee from 1947 to 1949 National Vice-Chairman Production Technology CommIttee (1941-48) Member of Executive Committee on Drilling and Production Practice (1948-49) Member of Steering Committee of Topical Committee on Production Technology (1948-49) Chairman of Special Reviewing Committee Topical Committee on Production Technology (1948) National Chairman Production Technology Committee (1949) Member of Program Committee (1949) Member Pacific Coast District Subcommittee on Production Technology (1949 to date) Vice-Chainnan Secondary Recovery Committee Pacific Coast (1953 and 1955) Member Secondary Recovery Committee Pacific Coast (1949 to date) ... ....-.11'. _ to__.__ __ _ -.... oh!o.I..I.---c.J-~=~" .-....:....... ......_~~iJ u BIOGRAPHY - contlnu. . Page 3 Member Core Analysis Committee Paclflc Coast (1949 to date) Chairman Secondary Recovery Committee PacifLc Coast (1956) Member Program Committee Pacific Coast District (1956, 1959, 1960 t 1961 t 1963, 1964, 1966, 1967) American AssoclBtLon ot 011 Well Drilling Contractors Member Research Advisory Committee (1960) PUBLICATIONS 1. "Influence of on Flow on Water Content of Sand" (AIME Meeting, San Antonio, Oct. 193B) . AIM!: Pet. Dev. and Tech. (abstract) 205 (1939) The Oil and Gas Journal 37 (23) 58, Oct. 20, 1938 The 011 Weekly 91 (5) s6, Oct. 10, 1938 2. "Field Application of Core Analysis and Depth Pressure Methods to the Determmation of Mean Effective Sand Permeability" U\IME Meeting, Los Angeles, Oct. 1941) AIMET.P. No. H64 Pet. Tech., Mar. 1942 . AIM!: Pet. Dev.-''''& Tech., 63 (1942) 3. "A Method for Evaluating Pressure Maintenance II (AIME Meeting, Los Angeles, Oct. 1942) AlMET.P. 1665 Pet. Tech., Jan. 1944; Petroleum World (Abstract 44) Nov. 1942 (Also reproduced by Clark Bros.) 4. "Method of Approach to Determine the Optimum Spacing of Wells II The Petroleum Engineer, August 1944 s. .Control and Detection of Reservoir Gas Movement in Pressure Control Operatlons" - (E. P. Valby, Junior, co-author) (CNGA Meeting Oct. 1944) The Oil Weekly 115 (12) 32, Nov. 27, 1944 California 011 World 2nd Issue, Oct. 1944, pg. 28 The Oil and Gas Journal, 43 (30) 774 Dec. 2, 1944 The Petroleum Engineer, 16 (10) 116 Reference Annual 1945 Journal of the Institute of Petroleum (abstract) 31 (259) 237. July 1945 6. "Reservoir Fluid Flow Research (Norris Johnston, Senior, co-author) (AP! P~cif!c Coast Dlsttict Meeting, Los Anqeles 1945) API Drilling and Production Practice 1945 The Petroleum Engineer. 16 (10) 180 Reference Annual 1945 The Oil Weekly 117 (6) 644 April 9, 1945 :.... __ L _ B!OGRAPHY - conti. ~ hge4 7. .Current Concepts of Secondary Recovery and Their Application to California Reservoirs" (Noms Johnston, Junior, co-author) (API Pacific Coast District Meeting, Los Angeles, 1946) API Drilling and Production Practice, 1946 The 011 Weekly 122 (5) 24, July 1, 1946 (in part) The 011 and Gas Journal, 45 (10) 93, July 13, 1946 (in part) 8. -Bibliography of Petroleum Literature" The Petroleum Data Book, 2nd Edition. 1948, N-l 9. "Injectivity Indices II Producers Monthly, Au;. 1949 API Drilling and Production Practice, 1949 World 011 130 (2) Feb. 1950 10. "Pressure Drop for OU-Gas Mixtures in Horizontal Flow Lines II World 011 129 ('7) Oct. 1949 11. .Chapter XII Exploration Geophysics by Jakosky" Times-Mirror Press 2nd EdltLon 1950 12. "Secondary ReccWery and Primary Pressure Control Methods of Operation in California n (N6rr1s Johnston, Jumor, co-author) The Independent Monthly Vol. }O{, No. 12, April 1950 13. "Fundamental Data Pertinent to Secondary Recovery Studies II Chapter 9 I'Secondary Recovery of Oil in the United States II (2nd Edition) published by API (contributing author) 14. IISecondary Recovery in California II Chapter 52 II Secondary Recovery of 01lin the United States II (2nd Edition) Published by API 15.. "Evaluation of Zonal Damage" (Norris Johnston , Senior, co-author) World 011 VoL 131 No.7, Dec. 1950 (156) 16. OOWaterflood Reservoir Performance Vedder Zone Wasco Field" API Drilling & Production Practice, 1951 The Petroleum Engineer Reference Annual 1951 Vol. 23 No.8 17 . II California Water Flooding" The Petroleum Engineer May 1952 Vol. 24 No.5 18. "Recent Laboratory Investigations of Water Flooding in California" (Norris Johnston, Senior, co-author) Trans AIME Vol. 198 (1953) 19.. "Review of California Water Flooding Operations" API Drll1il'l9 & Production Practice 1955 BIOGRAPHY - contin. . Page 5 20. "Developing Engineers for the Drilling Industry" The Drlll1ng Contractor Vol. XI No.6, Oct. 1955 21. "Review of California V..:aterflooding Operations" (B. L. Melkonian, Junior, co-author) A.IM:E Journal of Pet. Technology I Feb. 1961 22. "RevIew of Wilmington Water Floods" Summary of operations California DOG, Vol. 48 No.1 Jan.-June 1962 23. "Unitization in Californiaa Moderator for Panel Dlscussjonl API Drillinq & Production Practice, 1963 24. "The Petroleum Engineer - The Vanishing American" API paper No. 801-43A, May 1967 2S. "The Status of the Engineerlt SPE paper No. 2741, November 1969 26. "Unitization from the Standpoint of the Independent and the Royalty Owner" API paper No. 801-46: May 1970 The Oil and Gas Journal, July 6, 1970, API Drilling & Production Practice, 1970 27: Chapter I "Est~ation of Oil and Gas Reserves" 011 and Gas ProducUon from Carbonate Rocks. American Elsevier Publishing Company I New York 1972 28. Preface to "Secondary Recovery in Carbonate Reservoirs" American Elsevier Publishing Company, New York, 1972 29. "Coalinga Nose Pressure Maintenance Project" NY. C. Barton, Junior co-author) 8PE Paper No. 4183, November 1972 r . - I - --.. -- ___ - ....._--10 ____ .""--_........._...:tt._ _ _ ,"-~L ~ .. ..~---- BI~RAPHY - cont.d . Page 6 I have been actively engaged in consulting work, principally in reservoir engineering, enhanced recove~, gas storage and evaluation work since leaving the Richfield Oil Corporation in 1947. In addition to my consulting work, I have been since 1947 a full Professor of Petroleum Engineering at the University of Oklahoma for two years and at the University of Southern California for eleven years. After that, I taught a limited n~mher of graduate courses only at the University of Southern California for another twelve years. with the rank of Adjunct Professor. As part of ~ teaching activities I have presented lecture .erie. for engineers who worked for the Rational Iranian Oil Company in 'rehran; for engineers of the Austrian Oil Company in Vienna, as well a. in-house courses in the usa for the Pure Oil Company, Union Oil, Texaeo, Inc., and the california Division of Oil and Gas. My teaching work has involved courses dealing with reservoir engineering, secondary recovery and oil and gas property evaluation, aostly on the graduate level. My consulti~ activities have involved work for major and independent oil ~ompaniesl banks I utilities, state, County, City and Pederal Agenc!es, and land and royalty owners. 1 have worked on projects in california, Texas, Wyoming, ~aska, Oklahoma, Louisiana, Kentucky and the Four Corners area of Rew Mexico, Utah, Colorado and Arizona. In ~e foreign field, I have done work in Venezuela, Canada, Germany, Turkey, Austria and Iran. I'have been qualified as an expert witness and have given testimony in the subject matter of Petroleum Engineering and the appraisal of oil and gas properties before the U.S. District Court in Los Angeles, the California Superior Courts in Los Angeles, Long Beach, San Luis Obispo and Santa Ana and I have testified before the U.S. Pederal Power Commission in Washington D.C. & . EXHIBIT B To Declarat~on . - 1, CAL. P.U.c. No.1 \I ,; i r I . IF D l6 [g [Q) SEP 161988 PlIBtlt UTllnJES COMM1SSlOR SIAl( Of CALIfORNIA SHELL CALIFORNIA PI E COMPANY LOCAL TARIFF THE RATES AND CHARGES NAMED IN THIS TARIFF ARE FOR THE TRANSPORT A nON AND DELIVERY OF PETROLEUM AS DEFINED IN ITEM 5. BY PIPE LINES. SUBJECT TO THE REGULATIONS NAMED HEREIN The provisions published herein wlll. if effeclive. not result in an effect on .he qualit), of 'he human envlronment. ISSUED EFfECTIVE I ~' /: " :.!...-_ __ _ __ h___ ----.-....---~ - D. D. JASPERSON, PreSident SHELL CALIFORNIA PJPEUNE COMPANY P. O. BOl 2648 Houston, Texas 77252 . ------- . - - ..... --..... -. . I j I I I I I I I I I 1 I J I' II I. ~ , I I! 'I l~ ;i 1, " j' ,- '- I I I '" I Jk'D1 ~o SlBJECT ..0 CaUlinl. T .'Stlnl. Ind \ olullK' Corr'e1l0nl .s DeSllllltioD Faclbtlts RtqUJred Orlllill FacJllbu laqwltd ror AutDlIIalic Cutoeh Transrir Applicalion of Raltl and Charll" 50 55 60 NodCf of Arrl' aI. [).oll"f) It {k5lmallon 6~ APJIOrhDn- Dfnl \\'II.D T .1Id"rl Anla Uct'll or Facilltlel 'a)lII'lIt .r T ran5" portatioa and Olher Cbrps 70 UUiUt) .r Curler I' I~ h it Petroleum sJllt'ped hereunder mUlt be mellurtd IlK! tested by reprcsell1411vn ofUlI,' Carmr ur 1'1, lIulum .... 't eqUipment approvt'd b) Ill,' Carner Qu:lllllll~~ will be dctfTnlln~d rrum (,lIrru II)' . '"'11IlLluJ I..nk 1..1,1" r ,r b) Clltner-appro"ed lulomahc equlpmenl and IdjUIICd 10 thc Icmperollur~ of ~111) d.gr~~~ H,trl 1:1' Fahrenheit Where mealurement II IIUIdr hy mtlers. I fun her correction will hi. mold. fllr ph ,.....r' III .C'CCrdance wllh A P I (American Petroleum InSlllute, Standard IJOI-Mca~uremcnl 01 "~Irollllm 114Uld H)drocarbon5 by Pipeline DI5p1accmenl Meiers DcdlKuonl will be made f(lf the atf,ual ,moun' ,.1 \u. 'l II pendcd bult ICdlmenl. waler, and olher ImpuntJnas I5t%Mlned bycenlnfuJe or olher tl:U~ .~rud Uf"J!l .' When Indlml liqUid prodUC11 are received from pressure YeUCI~ ud measuremenb lire nl..cJ( h.. t~r: I pU~I. a funher adJuslmenl wdJ be made to to\'Cr eYleuahoo loncs If a ..~ blanket al or m t'xce~\ ollj,( t vapor prasuR of &he liquid II AOI used 'I',.t from .he ae\ q\l&D1nla 10 delemllncd (or acceptance. I funher dedlltllOft oftwo-ttnthl of one prrcC'nt (~( J \J of I ~) ....11 be made to tover t\'IporIlIOII and Joss dunn& transpoMlIon, ..d the balance "1111 be:' Ih~ n.1 I qUlnlltlCS dehverable ---- --..- The Clmer will Iccept pe1roleum for transpoMlIOn only when the sJ'IIpper or cons1lnrc bas pro\,d.d Ihe IIcceuaf) faaJllICS for I'UCIVIn& aHl pcuoJeum al It arnvu .. dCSllnlllon 3 RULES AND REGULATIONS - Continued .u~ AN/) MEGLJLAnON~ I I I , PwoIoum .""".. (o"n......."'" ...11 b, >Db"" 10 lb, n"..... ,b."" '"'~'" '" lb. ..." .r '" Up' I I ohueh petroleum b)' the Carner Trunk hne transpofUllon Ind aU otber lawful ch4r,e\ lOo iii tw. turk. t,d I 011 the bun ofnel quanllllcs ofpclroleum dchycn;d A" lIel qUlnllues wtlJ be: dt'termlfl<d mlh, molnn,r I pro\lded In hem 40 -- The obbpllon of the Carner IS to dcll"er at de511Dallon the quantity of pelroleum 10 be translx>n..d leu I deductlonl. and such dell\eT} ml~ be madC' upon Iwenty-foUT (24) hours' nOllee 10 III~ shipper or . tonll,ncc wbo shall ampt and recclve slud pelroleum from the Carner ....lh all poulble dllp:lllh In]', Ihe tlnks or receptlcles to be prOVided b)' Ihc shipper or consignee If Ihe shipper, or COftSlpCC. 15 unable or refuses to rttCl"e said petroleum as It Imves al dcstlnatlon the: Clmer reSeNts the nBhI to IJUIke whatever arranaemenlS ror dnp05U1on of the: pc:trukum It dee:ms appropriate 1ft order 10 dear 115 plpehnc Any Iddmonat expenses Inl:umd by the Cam~r In makml Iuch arrangements shall be bomc b) lhe sblpper or tonSllncc Where COD5I&nOr (or shipper) elms to dellYC1 petroleum to Ibe Camer al POIlU of orlllll Ihrou~l. lulumatlc CUllocl) transfer fac:J1llln (In heu of lanklle), the c:onSlpor (or .shlpper) shall furnIsh Ihc rC:l,ulrej automatic: mea5unnl Ind sampling faClhllCS Ind the dCSlp, c:onSlrUC1lOn, and c:ahbrolllU:'1 of such faCIlities muS! be Ippro\ed by the C.mer Ind Iny appropnale reaulatory body In the c:'enl .ulomall( custody tranlfer IS made b) mcters. the: <<Inll&nOr (or shipper) shall also fumlsfl wblllt'ver pumpmg ~l rYlCe IS ntC'Cl5ary 10 Itlsure that Ihe pnrolcum belli' delivered to Ihe me\er 15 al a pri:'llIoUTe m uCC'~~ (,f the bubble: paml of the liqUid When there lhall be lCndertd to the Clrner. for Iransportatlon, more lX'uole:um Ihan can be turrenll)' transponed, the U'lnlpOfUtlOn furnished by the Camer .all be Ipponloned Imonc all sluppers In proponlon 10 the ImounU lellderC'd by elc:h, proYlded, tha' In makln,. such Ipponlonmenl, nllll,:ndcr (or transpon.uon shaIl be conSidered bc)'OIICI tbe amount which tIw: pany requcsllna tile shipment will have- lvailable dunna W ameDI month The shiPper or toDSllntt shall Ply all apphcabJe tnnspofUllon aDd olher "wfuI tharges IcerulIIl on IXlroltum dehvered to Ind 1tc:epled by the Camer for shiPment. Ind If required shall p.t} or furnish luarant) of payment of "me satwactory 10 the Carner before 1~1'lance of stupmrnl The (IImcr .hall ha\'e II~n on III petroleum bclonllnllO Ihe shipper or consiJllee to secure the paymen. of IIn) 4nd all unpaid 'ranspaJ1lll0D IDd Diller chafICS that are due: to ,he Carner by Ihe ilupper or COASI&nee. and nll) WIthhold luch petrolrum from dehvery unUI all unpaid chll'JCS shall have been paid If such dlllrges remain unplld 6ve (S) daYI after DOllce and dellWld therefor. the Camero or "$ rrpn:vnlltlvel. shall "ve Ihe n&ht to SItU suc:h petrolrllm 11 ""bllc: allCIIOn althe ollice of lhe Carner an Hnulton, Te:l4~, on In)' cia) ADt Ilrpl holiday, and IIOln tIlan fony-cllJu (.., bollflaflcr aoltCC ItalUIJ the lime an" folac.. of such sale and tile quanmy. amcral dcscnpllon. and IoQtlOD of die: pclrolcllm lO bI: so&d hols been published In a daJJy DCWIPIJler of IIflIcral araaflllon pubJJlhcd In tile Did Clt)' where the ale II 10 be held Ind 1K)1ICC ICDI by telclflpb 10 lblt IIllppcr The Carner may be a bidder .nd pllrchascr II web I&le 0111 of the prOC'ftCb of lAid saJc Carner may pay Itself all Iranlportatlon and other lawful charlll.'li. and all n;penln Inademt 10 IbIt sale. alld lbe balance shalt be held for wJJosoever may be lawfully enull.d Ihl'TeIO - -. -- - The Camer whde in pouns.IOO of aD)' of the petrokum herrin described sJaaU DOt be IlIble for In) 1011 thereof. damalf tbemo. or delay, ell~ to 1M elllenlthat "ability Ihrrrfor IS Imposed on the (,mC'r b) law In ClIoe ofloss of petroleum for whldl Carner is DOl responSible. tht sfupper shall bear the Io~ "" here such Iou OC'tUrs in a lank tonlalnln& petroleum MUch il the propeny ormorc Ihan one shipper. or In. "nc 10 a seartplrd batth ofpelfOlltllm Mudl151he propc:ny ormo~ than one shipper. rach ~hlppcr shall bC'a~ the loss In SIKh proponlOn IS hlllOtaI yolumc In laid link or batch bean to the lotal ,",ulum. 1ft ~ld Unk or batth r I I 2 RULLc; AND REGULATIONS This Carrier will reCC'lve petroleum for trunk hne intrastll1C: transporl:J1Jon throup,h Its 0'0\ n hnl'~ onl)- to cswbllshed dcsllnllllons named herem, iubJCCI to the following condlllons It fill ' NG,I s I I I I I I I SUBJECT RULfS AND REGUlA nONS MCamer" as herelD used means Shell Callfomla P:lpeJule Company "Baml"' as hcmn used means fony-two (42) Unlled SUln pllcms at 1111)' desl'C'CS (60") Flhrenh~u and zrro (OJ pult prc:uurc If .he qpor pressure or the pelroleum IS II or belo" allnosrhmt ptnsurc 01 ,It cqulllbnum pressun Jf the wipUi prasure of Ult pclroIeum II above a.mospheTll' pl'CS$ure "PctJ'Oleum- as lwrmt used means tbe dJftC1llquMf JWOCIUI:'IS or 011 wrlls. or a mlJO.ure ohhe dll'ttl hquld produtls of' oil wells WIth the indJrKl liquid producIs of od and pi Mils IJldudln, plOhne and hquC'fil'd peuoJeum pses, as proVIded In hem 15. " "Tender" as hereIn used means an oft"er by a slllPptr to Ihe Camer or a staled qlUlnlll) of petroleum ror transponauon rrom a qM!Clfied on,ln or onl"lsto a .,c:afied dcsllftlltlon an 1C'C'00dan~ ".'th lhnc rul~s I and relulllttons I I 10 C....IldIl): Tbc Carner ""all transpon petroleum as dl:fined In linn S. Iraclumd)', and ",,11 nol aceqll an) olhl'r commodll} ror lransponatlon i t! . . I t I' Ddiaitioas Thr mdm:n liquid produe15 of od and gas wells ,"dud,"& psohne and hqudrd pt"lro1eum pIC'S hi reln:l(ll'r l T'("fcfrcd 10 I~ Indm'(,1 ~rCllJII('ls WIll tic' aefcrted and lr:lnSflOrll't.t lL~ a mature "nil Ihl dHl('1 h'luld \ product~ 01 011 wrlh. hcrclnarh:r rrrcrn:d 10 as dim. I'rOOUt"lS 1>>"0\ Idln~ thC' \;1",'r fllL'ssurl' <-I Ihe I mullinG ml~lur.: docs nOI Cleted th:tl pcmulIc:d ta} ('am..r's gclllllt'S :tnd operallnG rondlllon\ Tnt lndm'cl "rodut"ls ronlon of the mt~lurC' '" III be lIettph:d for Iransron.lIon al rrl'l."l"htln tl('lnls olhl."r I than the on..- II "'blch Ihe chl'l'ct prlXlucl5 porllon or thl' same mnlun: II Il'tTI,C'd pro\ldl."..t thai Ihl" i slllppc-r eomlgnC'C, and desllllalJon are Ihe same and th.1t operalln&: condlllOPS and lhe CarTIer's r..cllllles Jl('rrnn the mchrec:I products ponlon '0 be mJ:lC'd ""Ith the direct products nf the 13mI.' shlrper or jt consllIICt The Tall.' to bf ,ucHed on each ,onIon of the mllture sh..1l be the ralC' apphcabll." from It\e I ftctpllon polnl at 'MUd! eact\ IS ntt'll/ed Thl.' dIrect and IndIrect produel~ Will bt measured and tes.ed sep:u:tlcl) ror dcterm,nlnl \'(Ilumes n:cel\C'd Eaeh sueh measuremenl Will be made In aeoord.net ""th hem .0 - \ 'S 'hsnn" MIXIUn:~ Will be lnnsponC'd and delivered as pelrol.:um only NOlhln~ In thl\ ruk IS 10 be cnn~lrllrJ 10 WllVC prO\ISIOnS of hem 25 of IhlS tanlf or 10 rtqulre lhe Carner to receiVe:, lranSpOrt, and dell\...r unmlled Indlrtcl products Howevcr. unmlllCxl mdln-ocl producIs mol) be transponrd for lUbsl:qu("nt mlJ;1n1 WIth dlr~C1 prodUt"l~ In accordance wl1ll tlus rule whe~ raelllun eluSI and oprrallons ptTmll .ransponens such Indlrec:l prodUClS I . .. , 'I :m SpedfiCII- cion A5 10 Quhl) .tuh.d ;:. - ~iPllk'al'" , : Mainle- I ..JICt or , ItIeIatil) .1 " I , , J i; Ii :1 . ' 3f1 M,.illlum 'lm4cr I .1 35 l"dIt .: t " I~-=-.... - I 1100 petroleum will bl.' accep.ed for transportation tllcepl &Ood merchantable pc'tfolrum or lhe va'lI) (If lwenlj' dearees (20') A Pol (Amentan Petroleum Insutule) or h,.htr ...hleh IS proPtrl) Il.'uled and conlllns 1'101 more lhan one ~r e:enl (1'1) of baSIC lIec:hmenl, walcr, and olher ImpurIIlC'~. and h:ls:l I temperature nOlln tlIcn5 of one hundred and lwenly dcsr<<s {I 20"1 FahrenhC'II If flC'lroleum 15 accepl!:''' from ..nka,e, stltled bolloms In such tanks musI not be above a polnl four Inchl.'s (4H} ~Io'" thl" bOllom ,] of Ihe Plpehne connetuon WIth the tank rrom whIch n tnlcn Camcr's r.c,hlles No pt1rolcum "11111f II It'c<:pted unless lis IravlI)', VISCOlII)", and other characlcnsucs an: such Ihlll It .111 "" ft'OldIIY IUN't'pll"'l" Dr 1:1. lransportatlon throup Ihe Camer's n\Shnl racdl1lt"S, and il will nOl malm.lI)' alfrclthl.' qu:tlll) of ~hcr Ihlpments or caUIt dl..dvlntlp: '0 other .llIppers and/or the Carner I I I Pelroltum wall be acttplcd for .nmsponlllOll only on mndlUon thlt II 1II:tV be subJCl'1 to such eh:tnill's In ....vlty or qUllny w'"lt In transn IS would mull from III mlllure wllh olh" pr1rokum In Ihr plpehnes Dr links oflhe Carner Clmer shall bt under no obhpuon 10 dehver lhe: ldenheal pc"lrnltum R'C'el\-cd t!UI may make dehvery oul or common Ilock or OUl or CameT" ptptbne stream of subllanllally II"" petroleum Tmdl.'n for lhe transponauDn of SlICh petroleum ...111 be accepled unclcr thJS lImIT In quanlluel of ftl'lt Ics, than ten thousand (to"OOO~ barrel. from one .i~""L COftitpcd to one CO'I$'I1\~ aM ckitlna.I...1I I Petroleum 10 tendered In Ihe Came:r for UlInspor1:JIHJn YoIII hr rnTlvrd IS l'Urrtnlty a\allahlc I'm'ldlllS the COlli wuhln a JO.day pcnod IS 1101 less than len thousand (10.000) barrels TM Camer will n01 be obhp.c:cl to rorward pelroleum 10 lCJIcIered unlll II has receiVed from one or more mlppt'n - to tic' I". delivered 10 a su1&le delllnauon m a eommcm batch - . quantity allrepu1'Il nOl Ins than Iwenl)'-'h e thousand (2S.000) barrels or the ..me qUI-Illy, orofdlft"erent quahllel 10 be romm,n&kd - prD\Jdrd lhal :! the slnppen aveI.' 10 said c:ommlnaJlDI I' I~ The Camer sh.II hive the nabl to reject Iny pe:1foleum. when tendC'ud for transpolUlIon. whleb ma) be . Jllvolved In IItlgallon, or the tllIe of whIch may bl.' In dispute, or whlth nil)' be c:neumbcrcd t!" h"n or ~ tha1'J1.' of any kind. .nd n may require of the: sh Ipper ulisrattof)' eVldenc:c oUns perfeCl and unencUnl- f bered utle or ..IISf.Clory indemnity bond to prolect Clmer B} lendtnn~ ~lroleum thr sllll'f'.'r r ....rranls and &uaranlees m.t .he: shipper has t:ood tnte thereto and apen 10 hold ('"Imer h:lmdcss for ar ~ I' and all Joss, COIl, b.blht)'. damalC' and/or el.pc:nsc mulllnl from fa"un of ..lie IMRIO, (lro'ldtd th..l ~ acceptance for lransportauon IIlallllOl be dee-med a reprncnt:llJon b) the Camc:r all to IItk If .. KULIS AND REGULATIONS - Continued Itfm I - ~-~-- --- No. SUBJLcr RULES AND REGULATIONS 10 Claims., AsI condlllon pneedentlo recovery for loa. damaar. or delay 10 "lIpmentl. dlllms must be filrd In WTlIl"'- Suits., and wnh the Camer wltlnn n1fte (9) monlhs .ner delivery or Ihe pelroleum, or, In caR of fallur~ 10 m~l(' nmr for deilvery. then wlltlln nlM (9, monthlaRer a rruonable time for dehvery hn ebpKd, and JUlls lInslns Oul "'11I.11I of sueh claIms shall ~ InS1llulcd qalnlt Ille Camer only ...nhm lWO (2) ycal'5 (rom &he tllne wilen Ihe Camer debvcl'i, or ICftdm delivery of. the petrOleum or. In case of f.lhlft 10 make Or lender dch\f'~ then wuhln two (2) years .ner I l'eUOnable lime for delivery bas elapsed Where daUnt .rt not filed or "\\1 lte.eM instnuted tMftOfI ill ICCOnlal\Qt wul\ the fotqmlll 1M'OV151Oftl, Camet W\1I ROt be hable .nd such claims wiU not be paid IS '-bUc Camer ISluthonzed by !he C.u.. P.V C. to collect ITom ns Sh,ppers the fee required to ~ paId pursuant 10 Utilities Pubbc UtIlities Cock Section 421. S\IdI fee shall be Included IS a dull'F on the InVOICft rmdertd eeeh C_mfs~lon month for lransponauon cUlJCI aftcl shall be due and payable III lCC'ordant'C ...lIh Item 70 .qul.tioll Fft - 90 0.1) .f The ("amer shall not be n:qulI'rd 10 lransport petroleum eattPI Wllh I'allOnabtr dl"t.cnn'. ron'ld"l'In~ till C.rrier quanllty of pelrolcum, the dlilante or IraftSponlllOll. lhe safl.l)' of ope,.uon. and othrr malc~1 f:J('I..,r~ 9S I Lse of Wnhout addlhonal chl'le. shippen or c:ons1&nen ma)' UK Ihe pnulr c:ommunlratlon fanhun. of ('aml'f ("lNIIII1UnI- (or II1l' IrnMmIS'I(ln of mes.'<IfC'S mCldent 10 a shipment. bUI Climer shall nol ~ nbhpll'l,t Ie' d.-l,' ,'f C'l11f1D ftlCssages nor shall II ~ liable: far r.dura: to deliver meS5il&C$. ror C'rrors or dC'I..) tn Iransn\lS'lnn {11 fm f Facihtll.' tnterrupuon of tile servIce: --1 110 Dherslon Suhjtctto Item 30. chanl!f' 1ft deSllnauon or mUlln.. WIll tit pf'muued W1lhoutlddlllonal charge on V.T1Il"'~ I n-quc:st from the shipper. prOVided an applicable tanlf"rs In e!feet for an\ ~lIeslrd driun:Uron or rouun[:. I I 1f and prnvHled \b:n no back-hl\l11S reqUired LIST OF POI:\'TS FROM AND TO WHICH RATES APPLY and RATES O~ PETROLEUM IN CEl\TS PER BARREL OF 42 UNITED STATES GALLONS Ii FROM Chevron JunctlOn, Los Angeles County. Cahfornla Through Rate to Established Destmations SheJl Wilmington Refinen. Los AnB~lcs County. Cahfomia Mobil Junction. Los Angeles Count} . Cahforma Ii Soml" Statlon tl Ventura Tank Farm Ventura County Vcn1ura County 39 I.: Ii I' ,I ~I . t. i. I! 1 . i I: II &.;;;:::.- ~ --- J! .. ., j . ~ ............... ~~ '.... ..~ ~... . l.L II I rY' Z ~O I~ W'"-' I7 ........ '(J? .. .. .. r------------------------ I ~ I I I I I I I I I I I , I I I , I I I I , I I I I I I I I , I I I I , I I I I , I I I I I , I I I I I I , I I I I , , , I I ~~ '.. '..~ ...... I , I , : ~-- ,- I I I , I I (f) w d~ OZ z~ <{a (f)U o ---1 <;>- 0:::,- ':JZ 1-:::> 0::: Zo:J Wul. > 7" II I >. . l.L W l' I rY 10::: 20 OJW 00 OU ~z :>~ >:J ~G 0::: - ! I I 0::: - 0 /' Ul11 0 ~ (f) t- -1 , <:(w 0::::0.- f I I =>0.. ~ zw wO >=> I rc u I , I I , , I I ---------- - . EXHIBIT C . . . CA:RMM:kpl14/hpad City council Meeting 8-22-89 Santa Monica, California RESOLUTION NUMBER (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA FINDING CATEGORICAL EXEMPTION AND CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT ON THE PROPOSED EASEMENT FRANCHISE RENEWAL OF THE SHELL OIL COMPANY VENTURA-WILMINGTON CRUDE OIL PIPELINE WHEREAS, a Notice of Preparation of an Environmental Impact Report was issued in August, 1985~ and WHEREAS, a Notice of Completion of a Draft Environmental Impact Report was published in April, 1986, in compliance with the California Environmental Quality Act and the City of Santa Monica CEQA Guidelines~ and WHEREAS, in May, 1987, the final Environmental Impact Report was pUblished~ and WHEREAS, on August 22, 1989, the City Council, as Lead City Agency, reviewed the Final Environmental Impact Report, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City has reviewed and considered the Final Environmental Impact Report on the proposed easement franchise renewal for the Ventura-Wilmington Crude oil Pipeline between Shell Oil Company's successor in interest, Shell California - 1 - . . Pipeline Company, and the City of Santa Monica prior to acting on the project. SECTION 2. The Ci ty Council finds that the Final Environmental Impact Report adequately reviews and analyzes the potential environmental effects of the proposed project. SECTION 3. The City Council finds that there has been an alteration in the project which affects the status of the Environmental Impact Report ("EIR"). Since the applicant Shell Oil Company ("ShellU) originally sought to renew its easement franchise for its crude oil pipeline, the formerly proprietary line has been sold to an indirect subsidiary, Shell California Pipeline Company ("Shell California"), and the pipeline has become a public utility pursuant to California Public utilities Code Section 228. The project is now categorically exempt under Section 15301(b) of the state1s CEQA guidelines and Article VII Section 5 of the City's CEQA Guidel ines because it is for the continued operation of an existing public or private structure involving negligible or no expansion of use beyond that previously existing, and is a privately owned utility used to provide public utility services. SECTION 4. Notwithstanding the fact that the project is now categorically exempt, the City makes the following findings, consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the state CEQA Guidelines. In addition to the EIR, the record upon which these findings are made includes the following, of which the city Council takes - 2 - . . administrative notice: the Press Report issued July 21, 1989, by Shell Oil Company and the City of Santa Monica: the record in Shell oil Company v. City of Santa Monica, United States District Court, central District of California, Case No. CV 82-2362, united states Court of Appeals for the Ninth Circuit, Case Nos. 86-6103, 86-6206: and the record in Shell California Pipeline Company v. City of Santa Monica, Superior Court of California, County of Los Angeles, Case No. C714002. (a) The City finds that legal considerations make infeasible the project alternatives identified in the final EIR. The EIR identified a tlno project" alternative under which the city would not renew the franchise. Since the completion of the final EIR, Shell California has instituted eminent domain prooeedings and obtained a court ordered writ of possession for the easement. These proceedings, if successful, would transfer ownership rights in the easement to Shell California. In that event, the city would have no ability to deny the project, nor to impose any mitigation measures. Similarly, the City would have no authority to require an alternate pipeline route, the installation of a new pipeline in the existing easement, or modification of the existing pipeline, the other alternatives identified in the final EIR. (b) The final E1R found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts due to seismic hazards (draft EIR p. 111-21). consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the - 3 - . e state CEQA Guidelinesl the City finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The state Hazardous Liquid Pipeline Safety Act has been amended to reflect the state I s intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. Further, the City finds that chang-as or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and State safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell California is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations: participation in a one-call system for excavators' notifications: more frequent visual inspections for excavation activity than required by regulations: and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th street and Montana Avenue for remote control operation. These measures will avoid or substantially - 4 - . . lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects due to seismic hazards identified in the final EIR. (c) The final EIR found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts to adjacent land use (draft EIR p. III-29). consistent with Article VI, Section 12 of the city CEQA Guidelines and Section 15091 of the State CEQA Guidelines, the City finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The state Hazardous Liquid Pipeline safety Act has been amended to reflect the state's intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. Further, the City finds that changes or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and State safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell California is undertaking the - 5 - . e following mitigation measures: continuous control center surveillance of pipeline operations; participation in a one-call system for excavators' notifications; more frequent visual inspections for excavation activity than required by regulations; and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th Street and Montana Avenue for remote control operation. These measures will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effect on adjacent land use identified in the final E1R. (d) The final E1R found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts to the following utility: water (draft E1R p. 111-42). Consistent with ArtiCle VI, Section 12 of the City CEQA Guidelines and section 15091 of the state CEQA Guidelines, the city finds that intervening changes in law make infeasible the mitigation measure requiring periodic inspection of the integrity of the pipeline for wall thinning and other pipeline defects using an electromagnetic inspection pig. The state Hazardous Liquid pipeline Safety Act has been amended to reflect the state's intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measure identified in the final EIR. - 6 - ~ . The City, however, will undertake the following mitigation measures, which will avoid or substantially lessen the potential significant environmental effects identified with respect to utilities (water): periodic inspection of the area above the reservoir by a line walker using a hydrocarbon gas probe leak detection device; periodic monitoring of the reservoir for possible contamination; and periodic inspection of the area between the pipeline and the well by a line walker using a hydrocarbon gas probe leak detection device. Further, the Ci ty finds that changes or al terations have been incorporated into the proj ect which roi tigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and state safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell California is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations; participation in a one-call system for excavators' notifications; more frequent visual inspections for excavation activity than required by regulations; and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th Street and Montana Avenue for remote - 7 - . e control operation. These measures will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects on utilities (water) identified in the final EIR. (e) The final EIR found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts to the fOllowing utility: sewers (draft EIR p. 111-43). Consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the state CEQA Guidelines, the City finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The State Hazardous Liquid Pipeline safety Act has been amended to reflect the state's intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the city is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. The city, however, will undertake the following mitigation measure. The city is in the process of developing a Sewer Master Plan program. In that program, special consideration will be given to a sewer replacement program to upgrade existing sewer lines in the vicinity of the pipeline. Further, the City finds that changes or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to - 8 - ~ " ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and State safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell california is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations; participation in a one-call system for excavators' notifications; more frequent visual inspections for excavation activity than required by regulations: and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th street and Montana Avenue for remote control operation. These measures will avoid or sUbstantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects on utilities (sewers) identified in the final EIR. (f) The final EIR found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts to the following utility: storm drains (draft EIR p. 111-46). Consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the State CEQA Guidelines, the City finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The State Hazardous Liquid Pipeline Safety Act has been amended to reflect the State' s - 9 - ~ e intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. Further, the city finds that changes or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and state safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell California is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations; participation in a one-call system for excavators' notifications; more frequent visual inspections for excavation activity than required by regulations; and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th street and Montana Avenue tor remote control operation. These measures will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects on utilities (storm drains) identified in the final EIR. - 10 - . " (g) The final EIR found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts to the following utility: electrical power (draft EIR p. 111-48). Consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the state CEQA Guidelines, the city finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The state Hazardous Liquid Pipeline Safety Act has been amended to reflect the State I s intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. Further, the City finds that changes or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and State safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell California is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations; participation in a one-call - 11 - ~ e system for excavators' notifications: more frequent visual inspections for excavation activity than required by regulations; and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th street and Montana Avenue for remote control operation. These measures will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects on utilities (electrical power) identified in the final EIR. (h) The final EIR found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant im.pacts to the following utility: natural gas (draft EIR p. III-50). Consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the state CEQA Guidelines, the City finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The State Hazardous Liquid Pipeline Safety Act has been amended to reflect the State' s intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. Further, the City finds that changes or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain - 12 - . - Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and state safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Addi tionally, Shell California is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations: participation in a one-call system for excavators' notifications: more frequent visual inspections for excavation activity than required by regulations: and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th street and Montana Avenue for remote control operation. These measures will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or SUbstantially lessen the potential significant environmental effects on utilities (natural gas) identified in the final EIR. (i) The final EIR found that continued operation of the pipeline under normal working conditions would not have any significant adverse effects, but that should there be a spill or rupture, there could be significant impacts to the following utility: communication systems (draft EIR p. III-51). Consistent with Article VI, Section 12 of the City CEQA Guidelines and Section 15091 of the state CEQA Guidelines, the City finds that intervening changes in law make infeasible the mitigation measures identified in the EIR. The State Hazardous Liquid - 13 - . e Pipeline Safety Act has been amended to reflect the State's intent to allow regulation of pipelines exclusively by the state Fire Marshal's office. If the City is preempted from regulating safety, it cannot require compliance with the mitigation measures identified in the final EIR. Further, the City finds that changes or alterations have been incorporated into the project which mitigate or avoid the significant environmental effects identified in the final EIR. The proposed franchise requires Shell California to maintain Fifty Million Dollars ($50,000,000.00) in liability insurance to ensure financial accountability in the event of an accident or rupture, and an agreement to comply with Federal and state safety standards has now been incorporated into the proposed franchise, which will avoid or substantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental effects identified in the final EIR. Additionally, Shell California is undertaking the following mitigation measures: continuous control center surveillance of pipeline operations; participation in a one-call system for excavators' notifications; more frequent visual inspections for excavation activity than required by regulations; and periodic hydrostatic pressure testing. To improve shutdown and line segment isolation time in an emergency, Shell California will equip a valve at 26th street and Montana Avenue for remote control operation. These measures will avoid or SUbstantially lessen the potential for a rupture or spill, and thus avoid or substantially lessen the potential significant environmental - 14 - . - effects on utilities (communication systems) identified in the final EIR. (j) consistent with Article VI, Section 12 of the city CEQA Guidelines, and section 15091 of the state CEQA Guidelines, the city finds that adoption of the mitigation measures identified in the final EIR, to the extent they surpass the existing Federal and state Pipeline Safety standards are within the responsibility and jurisdiction of the Federal Department of Transportation and state Fire Marshal's Office, and not the City, and such mi tigation measures can and should be adopted by such other agencies. SECTION 5. In the event any of the adverse environmental effects identified in the final EIR are not considered substantially mitigated within the meaning of Article VI, Section 13 of the City CEQA Guidelines, and section 15093 of the state CEQA Guidelines, the city finds that the benefits of the project outweigh its unavoidable environmental risks for the following reasons: the project resolves existing extensive litigation; due to changes in the law the City is likely preempted from imposing any safety mitigation measures; the proposed franchise contains an agreement to comply with Federal and State safety standards; and, if the pending eminent domain proceedings were successfully completed, the City would be unable to deny the project or require any safety measures. SECTION 6. The City council certifies that the environmental review for the project was conducted in full compliance with State and City CEQA Guidelines, that there was - 15 - . e adequate public review of the Draft Environmental Impact Report, that the City Council has considered all comments on the Draft Environmental Impact Report and responses to comments, that the Final Environmental Impact Report adequately discusses all significant environmental issues, and that the City Council has considered the contents of the Final Environmental Impact Report in its decision-making process. SECTION 7. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ROBERT M. MYERS city Attorney - 16 - . " EXHIBIT D (The F~nal and Draft EIRs are separately attached.)