Exxon Denied CA Oil Trucking Permit

Friday, June 12, 2015 @ 05:06 PM gHale

An emergency permit filed by ExxonMobil to truck crude oil from Las Flores Canyon Facility along Highway 101 to a refinery about 70 miles north ended up denied by Santa Barbara, CA, County officials.

Since Plains All American Pipeline’s Line 901 ruptured last month, spilling about 100,000 gallons of crude onto the Gaviota Coast, a 10.6-mile stretch of the 24-inch pipeline effectively shut down. This has forced Exxon to cut its production to about 10,000 barrels of oil a day, but in about two weeks, Exxon said it will exhaust its storage capacity.

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Exxon submitted on June 4 an application proposed a maximum of eight trucks an hour — 24 hours a day, 7 days a week — each carrying 6,720 gallons of crude oil.

As assistant director of the county’s Planning and Development (P&D), Dianne Black became sole decision-maker after P&D director Glenn Russell recused himself because he used to own stock in ExxonMobil; he divested it in the last few months, he said.

Whether or not it is safe to transport crude on the highway is a question open to debate. On Sunday, the county chief executive’s office opened the matter up for public comment; several dozen people wrote in less than 48 hours.

Environmentalists — including Center for Biological Diversity and newly formed Food & Water Watch — all but threatened a lawsuit if the county approved the emergency permits. They advocated for the customary permit process with proper environmental review. Two dozen or so activists rallied against trucks Monday afternoon at the courthouse, holding colorful signs that read “End Oil Now” and calling for clean energy.

Meanwhile COLAB’s Andy Caldwell took exception, calling it “absolutely incredulous” to oppose trucking a raw product on the freeway when gasoline is always tankered on the highway.

Exactly what constitutes an “emergency” was the endgame for Black. According to county zoning codes, an emergency is a “sudden unexpected occurrence demanding immediate action to prevent or mitigate loss or damage to life, health, property, or essential public services.” Exxon claimed, if shut down, its production of natural gas — separated from the oil and produced water, and scrubbed clean of hydrogen sulfide — would cease. This natural gas ends up supplied to residents in Santa Barbara, San Luis Obispo, and Ventura, and constitutes a public utility, Exxon said.

Not so, said Black. Based on a 2014 gas company report, Exxon provided less than one percent of Southern California Gas’s total supply last year. Plus, she wrote, the county permitted a storage expansion project for the gas company. Black found Exxon’s second argument — tax revenues — equally flawed.

Exxon generated nearly $4.2 million in taxes last year from its three offshore platforms, according to Exxon spokesperson Dick Keil.

“That’s revenue that the county will have to make up on a monthly basis,” Keil said. Santa Ynez Valley High and Vista Del Mar school districts each rake in more than $700,000 from Exxon’s property taxes, Keil said.

But school districts can file a claim with Plains, Black wrote; entities or individuals have three years to do so. Black also found that trucking oil does not fall within the emergency permits allowed by Governor Jerry Brown’s executive order regarding the oil spill.

“We are obviously disappointed in their decision,” Keil said Tuesday afternoon. “We are in the process of studying their response,” he said, without indicating Exxon’s next steps. Because the decision for the emergency application is not appealable, Exxon could take the matter to court. Otherwise, Exxon can apply for a customary permit, a months-long process that consists of CEQA review, policy analysis, and a public hearing.

Venoco — much smaller than ExxonMobil —shut down its 4,000-barrel production about a week after the spill. Venoco is currently evaluating transportation options, said spokesperson Keith Wenal, and is using the downtime to complete annual safety inspections.