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R-7888 ~ e CA:RMM:kp114/hpad City Council Meeting 8-22-89 Santa Monica, California RESOLUTION NUMBER 7888(CCS) (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, 1985i and WHEREAS I 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 Pipel ine between Shell oil Company's successor in interest, Shell California - 1 - e e Pipeline company, and the City of Santa Monica prior to acting on the project. SECTION 2. The City 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 ("ShelP') 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 State's 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 servioes. 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 - e - 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,Mo~ica, 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. ci ty of Santa Monica, Superior Court of Cal ifornia , 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 uno project" alternative under which the City would not renew the franchise. Since the completion of the final EIR, Shell California has instituted eminent domain proceedings and obtained a eourt 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 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 due to seismic hazards (draft E1R p. 111-21). Consistent with Article VI, section 12 of the City CEQA Guidelines and section 15091 of the - 3 - e e state CEQA Guidelines, the city finds that intervening changes in law make infeasible the mi tiqation measures identified in the ErR. 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 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 - e e 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 ErR 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 proj ect 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. Addi tionally, Shell California is undertaking the - 5 - e 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 regulationsj 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 siqnificant environmental effect on adjacent land use identified in the final EIR. (d) 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: water (draft EIR 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 requirinq 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 requlating safety, it cannot require compliance with the mitigation measure identified in the final EIR. - 6 - e e 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 city finds that changes or alterations 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 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 chanqes or alterations have been incorporated into the proj ect 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 - s - e e 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 undertakinq 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. III-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 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 aqreement 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 (storm drains) identified in the final EIR. - 10 - e e (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 E1R 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'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 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 impacts 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 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 - 12 - e e 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 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 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 proj ect which lIli 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 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 - e e 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 mitiqation measures; the proposed franchise contains an agreement to comply with Federal and state safety standards: and, if the pending eminent domain proceedinqs 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 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 - e e Adopted and approved this 22nd day of August, 1989. p~ JM~ I hereby certify that the foregoing Resolution No. 7888(CCS) was duly adopted by the city Council of the City of Santa Monica at a meeting thereof held on August 22, 1989 by the following Council vote: Ayes: Counci1members: Abdo, Finkel, Genser, Katz, Reed, Mayor Zane Noes: Councilmembers: None Abstain: Councilmembers: None Absent: councilmemhers: Jennings ATTEST: -' - ~~: .:, ---- ~ ~ -Ci ty Cle~ ~ -_ -- - -- - - - -- --