R-7888
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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
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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
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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,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
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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
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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 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
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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.
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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 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
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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
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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 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
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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 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.
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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 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
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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 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
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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. 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
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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
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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
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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:
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ROBERT M. MYERS
City Attorney
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Adopted and approved this 22nd day of August, 1989.
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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:
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