SR-511-001 (3)
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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:
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B-1>
Ave 22 1989
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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
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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
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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.
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(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.
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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
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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.
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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.
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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.
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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
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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.
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{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.
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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.
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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.
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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
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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
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EXHIBIT A
STATE OF CALIFORNIA.
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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
. ------- . -
- ..... --..... -. .
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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
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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
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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 '
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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
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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
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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
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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
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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
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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[:.
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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
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EXHIBIT C
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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
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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
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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
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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
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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 -
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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.
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.
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 -
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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
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"
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
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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.
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(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
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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
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.
-
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
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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
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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
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EXHIBIT D
(The F~nal and Draft EIRs are
separately attached.)