SR-12-09-2014-13BCITY CLERK'S OFFICE - MEMORANDUM
To: Mayor and City Council
From: Councilmembers O'Day and Winterer
Date: December 9, 2014
13 -13: Request of Councilmembers O'Day and Winterer that council adopt the
resolution opposing oil drilling in Santa Monica Bay related to drilling in
Hermosa Beach that will be considered by special election in that city on
March 3, 2015.
December 9, 2014
Don't Believe It.
Learn the truth about a scary proposal to drill for oil underneath the Hermosa Beach seafloor.
Background:
Voters in Hermosa Beach will likely vote this fall on a measure to reconsider the current moratorium on
oil drilling in the city. E &B Natural Resources seeks to erect an 87 -foot drilling rig and up to 34 wells on a
1.3 -acre plot in a residential neighborhood, extracting up to 8,000 barrels of oil each day by slant - drilling
under the seafloor and surrounding beach communities. The city would receive royalties from the
drilling.
If voters uphold the moratorium, drilling would be barred. But the city would have to pay $17.5 million
to E &B under a complex settlement brokered by past city councils.
MYTH: This is relatively small project that only affects a small slice of the Bay and really is an issue for
Hermosa Beach to decide.
FACT: Oil spills know no boundaries. With nearly 50 million annual visits to local beaches and a coastal
economy worth over $10 billion, a spill off Hermosa Beach would be a financial and ecologic nightmare
for all of Los Angeles.
MYTH: Given all the new technology, there's really very little chance of an oil spill actually happening.
FACT: The draft Environmental Impact Report predicts up to a 34% chance of an oil spill from the
proposed project.
MYTH: Hermosa Beach will reap a great deal of economic benefit if drilling moves forward.
FACT: The royalties proposed by E &B Oil may seem attractive in theory, but no one can say for sure how
productive any of its proposed 34 wells might be
MYTH: Hermosa Beach can't afford to pay a $17.5 million penalty to E &B if voters uphold the
moratorium
FACT: The city has already set aside $6 million for this purpose, and staff is researching other fiscally
prudent ways to pay the remainder of the $17.5 million over time that would not put undue hardship on
city budgets.
MYTH: The drilling operations will pose very few risks to community health.
FACT: Noxious gasses released from the site may cause air pollution and odor issues, which have led to
respiratory problems, eye and skin irritation, headaches, depression and other ailments in communities
where oil drilling already occurs.
MYTH: The proposed drilling operation raises few safety concerns.
FACT: Nearly half of Hermosa Beach residents live within a half mile of the proposed drilling site. The
project would have significant negative impacts on safety, aesthetics, odors, wildlife, water quality, and
noise.
MYTH: The drilling operations will not affect the aesthetics and livability of surrounding neighborhoods
FACT: The proposed slant drilling operation introduces a major industrial use that raises compatibility
concerns with Hermosa Beach's family - friendly and artistic community character.
MYTH: Los Angeles County already has numerous oil wells, so there is precedent of safe drilling in the
region.
FACT: Although there are many oil wells throughout Los Angeles County, safety remains a concern with
all forms of oil drilling in densely populated regions.
Heal the Bay
Reference:
Resolution No. 10851
(CCS)