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16613September 12, 2007

Dear Interested Party:

The U.S. Coast Guard (USCG), U.S. Maritime Administration (MARAD), and City of LosAngeles (City) announce their intent to prepare an Environmental Impact Statement (EIS)/ Environmental Impact Report (EIR) to assist in the evaluation of an application for a license forthe proposed Woodside Natural Gas Inc. OceanWay Secure Energy liquefied natural gas (LNG)deepwater port (DWP). The EIS/EIR will be prepared with the City of Los Angeles (City) as acooperating agency with the Coast Guard and Maritime Administration to meet both NationalEnvironmental Policy Act (NEPA) and California Environmental Quality Act (CEQA)requirements.

The OceanWay Secure Energy port would be located in Federal waters of the Santa MonicaBasin, 21 miles from the nearest point on the mainland of Southern California, 18 miles from thewestern end of Santa Catalina Island, and approximately 27 miles southwest of Los AngelesInternational Airport, in a water depth of approximately 3,000 feet. Woodside Natural Gasproposes to own , construct, and operate the DWP with associated ship-to-ship transfer (STS)locations and single point mooring (SPM) buoys for receiving regasification liquefied natural gascarriers (RLNGCs) offshore. LNG would be vaporized using an ambient air regasificationsystem and natural gas would be delivered onshore via pipelines, with a shore crossing at thenorth end of LAX at Dockweiler Beach. A buried onshore pipeline would take the gas to areceiving and custody transfer facility at 5651 96 th Street via Westchester Parkway/Arbor VitaeStreet, Bellanca Avenue, and then tie into the Southern California Gas infrastructure. Additionalonshore pipeline stages, depending on demand, are also proposed within the cities of LosAngeles, Inglewood, and South Gate. Initial annualized delivery rate would be 0.4 billion cubicfeet per day (bcfd) and peak of 1.1 bcfd.

Congress first authorized DWPs in 1974. Federal law (33 United States Code [U.S.C.] 1501 et seq. ) defines a DWP as any fixed or floating manmade structure other than a vessel, or any groupof such structures, that is located beyond State seaward boundaries, and that is used or intendedfor use as a port or terminal for the transportation, storage, or further handling of oil or naturalgas for transportation to any state. All DWPs require a license granted by the MaritimeAdministrator based on an application process administered by the Coast Guard, in coordinationwith the Maritime Administration. Part of that process involves assessment of impacts to thenatural and human environmental from the port, in compliance with the National EnvironmentalPolicy Act of 1969 (42 U.S.C. 4332). The Maritime Administration and Coast Guard are thelead Federal agencies for NEPA compliance. The Coast Guard, in cooperation with theMaritime Administration, determines the scope and completes the environmental review of theproposed project. This includes consultation with States that are adjacent to the proposed port.For the purposes of the OceanWay deepwater port application, California is an adjacent coastalstate. The Coast Guard and Maritime Administration have determined that compliance with theNEPA requires preparation of an EIS.

CommandantUnited States Coast Guard

2100 Second Street, S.W.Washington, DC 20593-0001Staff Symbol: CG-3PSO-5Phone: (202) 372-1451Fax: (202) 372-1926Email: Roddy.C.Bachman@uscg.mil

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Subj: OCEANWAY SECURE ENERGY DIP LETTER 16613 September 12, 2007

2

The City has determined that the proposed port would require a City license/franchise for subseapipelines through City waters to deliver the natural gas to shore, and a new franchise and otherapprovals for the onshore pipeline and receiving and custody transfer station (RCTS) to deliverthe natural gas into the existing pipeline system, and that compliance with the CaliforniaEnvironmental Quality Act (CEQA) requires preparation of an EIR. Because of the manysimilarities between an EIS and an EIR, the Coast Guard, Maritime Administration and the Cityhave agreed to cooperate in preparing a single document that satisfies both NEPA and CEQA.

The EIS/EIR will be consistent with the Deepwater Port Act (DWPA) of 1974, as amended (33U.S.C. 1501 et seq. ); the NEPA (Section 102[2][c]), as implemented by Council onEnvironmental Quality regulations (40 Code of Federal Regulations 1500 to 1508); and theCEQA (California Public Resources Code 21000 et seq. ) as implemented by the State CEQAGuidelines (14 California Code of Regulations 15000 et seq. ). The environmental review andanalysis will be completed according to the timeline prescribed by the DWPA, which requires adecision within 356 days. The period to complete all NEPA/CEQA documents is approximately240 days. This timeline will govern the activities related to the processing of the license

application and the completion of all NEPA and CEQA related actions needed to support thedecision regarding whether to approve, approve with conditions, or disapprove the proposedlicense/lease/franchise.

A more detailed description of the proposed project and regulatory background is presented inthe enclosures. The application may be viewed at the U.S. Department of Transportation (DOT)Docket Management System web page at: http://dms.dot.gov (Docket Number USCG-2007-26844). The Notice of Intent, initiating the scoping process, will publish in the Federal Register on or about September 14, 2007. Information that will appear in that notice is enclosed for yourinformation. Public Notices for the open house/public meeting are being published in localnewspapers.

The USCG, MARAD and City are now in the scoping period that precedes preparation of theEIS/EIR, and invite public comment relating to concerns on the proposal or to the scope of theenvironmental document. As part of the scoping process, the USCG, MARAD and City willhold an informational open house and public meeting. The events are open to the public and allinterested parties are encouraged to attend. Written and oral comments will be accepted at boththe open house and the public meeting. We encourage you to submit comments and relatedmaterials regarding this project throughout the scoping process which ends October 12, 2007.

Date: Wednesday, September 26, 2007Location: Los Angeles Airport Marriott, 5855 West Century Blvd, Los Angeles, CA 90045;

(310) 641-5700.Times: Open House: 4:30 PM - 6:00 PMPublic Meeting: 6:30 PM - 8:30 PM (or later, depending on number of speakers)

Parking: Hotel parking will be validated. Attendees are requested to bring their garageparking ticket inside the hotel for parking validation.

In addition, comments may be submitted to the Department of Transportations (DOT) DocketManagement Facility Docket Number USCG-2007-26844.

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Subj: OCEAN WAY SECURE ENERGY DIP LETTER 166 13September 12,2007

Co m me nts or related material must reach the Docket Managem ent Facility o n or before October12, 2007. For further information on how to submit comm ents refer to the Notice of Intent,Enclosure (1). In this cooperative effort with the City of Los Angeles, the City will also beaccepting comm ents submitted to the DOT docket. To m ake sure your comm ents and relatedmaterial are not entered m ore than on ce in the docket, please subm it them by o nly one o f thefollowing means:

Mail: Docket Managem ent Facility, US Department of Transportation1200 New Jersey Ave S E, W est Building, Room W 12- 140,Washington, DC 20590-0001Note: please consider processing delays associated with delivery of mail tofederal facilities

Hand deliver: RoomW 12-140 on the Ground level of the W est Building,1200 New Jersey Ave SE, W ashington, DC9:00 A.M.- 5:00 P.M., Monday- Friday, except Federal holidays

Fax: Docket Managem ent Facility at 202-493-225 1Electronically: Docket Management System at htt~ ://d m s.d ot.~ ov .

T he application is available now and comments, material received fiom the public and agencies,as well a s the EISIEIR, will become part of this docket and available on the website. T heinformation will also be available for inspection or copying at the Docket Managem ent F acilitybetween 9:00 a.m. and 5:00 p.m., Monday through Friday, except for Federal holidays.

Information may also be reviewed at public libraries near the pipeline route. A list of suchlibraries and information on the c ity 7; processes regarding this application will also be posted onthe City's website athttp://eng.lacitv.or~techdocs/em.dEnvironineiital eview Documents.htmunder "Ocean Way."

If you have questions about the proposed W oodside Natural Gas Inc. OceanW ay Secu re EnergyDeepwaterPort License Application, you may contact Mr. Roddy Bachman, U.S. Coast Guard at(202 ) 372-1451 or by e-mail atRodd_y.C.Bachman@,uscn.mil.If you have questions about theNE PA process or about this EISIEIR, please contact M s. Joan Lang at (202) 372-1452 or by e-mail atJoan.M.Lang$2i!uscfi.mil.Th e contact for the M aritime Administration is Mr. ChristopherHanan at 202-366-1900, e-mail Christopher.Hanan(idot.gov. Th e contact for the City of LosAn geles is Ms. Linda Moore, at (2 13) 485-575 1, e-mail: Linda.Moore(Glacitv.org.

Sincerely,

"*-.;-cH. KEIT LESNICKChief, Deepwater Ports Standards Division Director, Office of Deepwater Ports andU.S. Coast Guard Offshore ActivitiesBy direction U.S. Maritime Administration

Copy: Ms. Linda Moore, City of L os AngelesEnclosures: ( I ) Information that will appear in Federal Register Notice o f Intent

(2 ) Project Area Maps

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WOODSIDE NATURAL GAS INC. OCEANWAY SECURING ENERGY DEEPWATER LNG PORTEISIEIR SCOPING INFO RMA TION

PLEAS E NOTE THAT THE FOLLOW ING INFORMATION W ILL APPEAR IN A FEDERAL REGISTERNOTIC E OF INTENT THAT WILL PUBLISH ON OR ABOUT SEPTEMBER 14.2007. THIS INFORM ATIONIS BEING PROV IDED TO YOU NOW AS EARLY NOTIFICATION OF THE UPCOMING SCOPINGPROCESS.

DOCKET NUMBER: USCG-2007-26844

PROPOSED PROJECT: Woo dside Natural Gas, Inc. OceanWay Secure Energy Liquefied Natural Gas Deep waterPort License Application; Preparation of Environmental Impact Statement/ Environmen tal Impact Report

AGENCY: Maritime Administration. DOT; U.S. Coast Guard. DHS.

ACTION: Notice of intent; notice of public meeting; request for comm ents.

SUMMARY: The M aritime Administration and the U.S. Coast Guard annou nce the intent to prepare anenviro nm ental impact statemenu environm ental impact report (EISIEIR). The application describes a projectlocated in the Federal waters of the Santa Monica Basin, approximately27 miles southwest of Los AngelesInternational Airport.

Th e EISIEIR will be prepared with the City of Los Angeles (City) as a cooperating agencyin the environmentalreview with the C oast Guard since the applicant has also filed an application for leaselfranchise o f offshoresubm erged C ity lands and an onsh ore pipeline franchise for the subsea pipelines through C ity waters and a pipelinethrough the City. The EISIEIR will meet the requirements of both the National Environmental Policy Act (N EP A)and the California Environmental Quality Act (CEQA).

Publication o f the Federal Register notice begins a 3 0 day scoping process that will assist in the identification anddetermination of the environmental issues to be addressed in the EISIEIR. This notice requests public participationin the sco ping process and provides information regarding participate in the process. It announces a public meetingto be held in connection with the EISIEIR; requests public com ment on the sco pe of the EISIEIR; and also serve s asa notice o f intent (NOI) and notice of preparation (NO P) for the purposes of California law.

DATES: The Co ast Guard, Maritime Administration, and the City will conduct an informational op en house,followed b y a public scoping meeting Wednesday, September 26,2 00 7 to receive oral or written comm ents. Theinformational open house will run from 4:30 p.m. to 6:00 p.m.. followed b y a public meeting from 6:30 p.m. to 8:30p.m. The time may be extend ed depending on num ber of speakers. Com ments or related material must be receivedby October 12 ,2007.

ADDRESSES: The op en house and public meeting will be held at the Los Angeles Airport Marriott, 5855 WestCen tury Blvd, L os Angeles, CA 90045; (3 10) 641-5700 . PLEASE NOTE: All attendees are requested to bring theirhotel parking tickets inside the hotel for parking validation.

Th e public docket for USCG-2007-26844 is maintained by the Department of Transportation. Docket Manag ementFacility, 1 200 New Jersey Avenue, SE., West Building, Ground Floor, Room W 12-140, Washington. DC 20590-000 1 .

Docket conte nts are available for public inspection and copying at this address between 9 a.m. and 5 p.m., Mondaythrough Friday, except Federal holidays. The Facility's telephone num ber is 202-366-9329, the fax number is 202-493-2251. and the web site for electronic submissions or for electronic access to docket contents is1 1 1 1 ~ ~ d 1 1 1 s . d o t . ~ .

FOR FURTHER INFORMATION CONTACT: Questions regarding the proposed Project, the licenseapplication p rocess, or the EISI EIR process m ay be directed to Roddy Bachman, U .S. Coast Guard, telephone:(202) 367- 1451. e-mail: ( K ~ d d v. C . B a c l i m a n ( ~ ~ i u s ~ ~ . n ~ i I ) ,r Linda Moore, C ity of Los Angeles, telephone: (2 13)485-5751, e-mail: (~nda.h,1o01'ef~~.1acit~.or~~.Questions egarding view ing or subm itting materials to the docket maybe directed to, ReneeV. Wright, Program Manager, Docket Operations, (202-493-0402).

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Subj: Woodside Ocean Scoping Information Sept 12.2007

'The DOT Do cket Managem ent System also chronologically contains the application and related correspondence;public meeting transcripts: will contain the Draft and the Final EISIEIR; and will contain all comments submittedwhether at public meetings or submitted directly. This can be accessed at htt~: /:d ms .do t.p v, nd search for docketnumber 26844.

Information pertaining to the proposed O ceanW ay Deepwater Port Project is also available online with the City of

Los Angeles at: I i t t p ;~~~~ ,n~~ac i t vVo~f i i t e c1 id~~cs~e~n~ i I~nv~rnnmen ta1ieview Ilocurnents.litn~

Th e public notice may be requested from the City of Los Angeles in an alternative format such as Spanishtranslation. audiotape, large print, or Braille. Contact the City of Los Angeles at the C ity project website listedabove.

SUPPLEMENTA L INFORMATION:

Public Meeting and Open House

Th e Coast Gua rd, Maritime Adm inistration, and City plan to conduct an informational open house and pub licmeeting related to preparation of an EISIEIR for the proposed Project. T he open house will be an informalopportu nity to ask q uestions and receive information regarding the Project. The public scoping meeting w ill be

structured to provide the public with an opportunity to present comm ents regarding the approach and conduct o f theenvironm ental analysis. Com ments will help us identify and refine the scope of the environmental issues to beaddressed in the EISIEIR.

Spe aker registrations will be available at the door. Speake rs at the public scoping mee ting will be recognized in thefollowing order: elected officials, public agencies, individuals or groupsin the sign-up order, and anyone else whowishes to speak . Speakers may be asked to limit their oral comm ents to three(3) minutes in order to afford everyon ean opp ortunity to speak and the meeting time may be extended. Speakers must identify themselves and a nyorganization represented, by name. Remarks will be recorded o r transcribed for inclusion in the public docket.Public dock et materials will be m ade available to the public on the Docket Manag ement Facility's DocketManagement System (DM S). See "Request for Comments" for information about the DMS and your rights underthe Privacy Act.

Written co mm ents will also be accepted. You may subm it written material at the public meeting, either in place of orin addition to speaking. Written material must include your name and address, and will be included in the publicdocket.

Please n otify Rod dy Bachrnan, U.S. Coast Guard, telephone:(202) 367-1451, e-mail:( R ~ y. C . B a c h ~ ~ ~ a n ( c c , u s c g . m i l )s soon as possible, but at least three (3) business days b efore the scheduledmeeting, if translation of written materials is required. A court reporter will also be available during the open houseto take oral co mm ents if you do not wish to speak at the meeting. All public scopin g meeting spaces will bewheelchair-accessible. Individuals may request special accommodations for the public scoping m eetings. su ch asreal-time translation. Contact the Coast Guard or City of Los Angeles (see FOR FURT HER IN FORM ATIONCO NTA CT ) if special accommo dations are required. Requests should be made as soon as possible but at least tliree(3 ) business d ays before the scheduled meeting. Include the name and telephone number of the contact person. thetimelines fo r requesting accommo dations, and a TD D number that can be used by individuals with hearingimpairments.

Reauest for Comments

The C oast Gua rd, MAR AD. an d the City request submittal of comments and related material regarding this noticeusing o ne of the m ethods described below. Th e Coast Guard, MARAD. and the City most particularly seekcom men ts that identify potentially significant impacts, alternatives, or mitigation m easures that should be taken intoaccount in determining the scop e of the EISIEIR.

W e request public c omm ents or other relevant information on environmental issues related to the proposeddeepw ater port. The public meeting is not the only opportunity to comment. In addition to or in place of attendingthe meeting. comm ents may be subm itted to the Docket Management Facility or City of Los Angeles during thepublic comment period (see DATES).

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Subj: Woodside Ocean Scoping Information Sept 12,2007

Th e Coast Guard, M aritime A dministration and City will consider all comm ents and material received during thecomm ent period. It is not necessary to present comm ents more than once. Comm ents need not be submitted tomultiple agencies: all comments received will be shared amon gst agencies.

Subm issions to the DOT Docket Managem ent System should include:Docket number USCG-2007-26844,Your name and address.

Your reasons for making each comm ent or for bringing information to our attention.

Submit com ments or material using only one of the following methods:Electronic submission to DMS. Ii t tp :/~ d~ ns .d o~ .g o~ ~.Fax. mail, o r hand delivery to the Docket Management Facility (see ADDRE SSES). Faxed or hand deliveredsubm issions must be unbound, no larger than8%by I I inches, and suitable for copying and electronicscanning. If you m ail your submission and want to know w hen it reaches the Facility, include a stamped , self-addressed postcard o r envelope.

Regardles s of the method used for submitting comm ents or material, all submission s will be posted, without change,to the DM S website (http:!'!dms.dot.gov), and will include any personal informa tion provided. The refore , sub mitt ingthis information mak es it public. You m ay wish to read the Privacy Act notice that is available on the DM S website,or the Department of Transportation Privacy Act Statement that appeared in the Federal Register on A pril1 1 ,2000

(65 FR 19477). You may view docket submissions at the Docket Management Facility (see ADD RESS ES), orelectronically on the DM S website.

A notice of application for the proposed Ocean Way D WP was pub lished in the Federal Register (FR) on Friday.Septem ber 7 ,2 00 7 (5 1488). Consult that notice for additional information regarding the proposed DWP, the ship-to-ship transfer locations, the offshore and o nshore pipelines and the receiving and custody transfer facility. Th e"Sum mary of the Application/Proposed Action" from that publication is reprinted below for your convenience.

Cong ress first authorized DW Ps in 19 74. Federal law(33 United S tates Cod e [U.S.C.] 1501et seq.) defines a D WPas an y fixed or floating manm ade structure other than a vessel, or any group of such structures, that is locatedbeyon d S tate seaward boundaries, and that is used or intended for use as a port or terminal for the transportation,

storage, o r further handling of oil or natural gas for transportation to any state. All DW Ps require a license grantedby the M aritime A dministrator based on an application process administered by the Coast Guard, in coordina tionwith the Maritime Adm inistration. Part of that process involves assessment of the natural and human environmentalimpacts from the port, in comp liance with the National Environmental Policy Act (NEPA) o f 19 69(42 U.S.C.4332). The Maritime Administrationand Coast Guard are the lead Federal agencies for NE PA compliance. Th eCo ast Guard , in cooperation with the Maritime Administration. determines the scope and completes theenvironmental review of the proposed project. This includes consultation with States that are adjacent to theproposed port. For the purposes of the OceanW ay deepwater port application, California is an adjacent coastal state.Th e Coast Guard and M aritime Administration have determined that compliance with the NEPA requirespreparation of an EIS.

Th e City has determined that the proposed port would require a City license/franchise for subsea pipelines throughCity wa ters to deliver the natural gas to shore, and a new franchise and other approvals for the onshore pipeline andreceiving and cu stody transfer station (RCTS) to deliver the natural gas into the existing pipeline system, and thatcomp liance with the California Environmental Quality Act (CEQA ) requires preparation o f an EIR. Because o f themany similarities between an EIS and an EIR, the Coast Guard, Maritime Administration and the City have agreedlo cooperate in preparing a single document that satisfies both NEPA and CEQA.

Th e EISIEIR will be consistent with the Deepwater Port Act (DWPA ) of 1974. as amended (33 U.S.C. 1501et spy.):the NEPA (Section 102[2][c]), as implemented by Council on Environmental Quality regulations (40 C ode ofFederal Regulations 1500 to 1508): and the CEQA (California Public Resources Cod e# # 21000 et seq.) asiniplemented by the State CEQ A Guidelines (14 California Co de of Regulations# # 15000 et seq.). Theenvironmental review and analysis will be completed according to the timeline prescribed by the DWPA. whichrequires a decision within 356 days.

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Subj: Woodside Ocean Scoping Information Sept 12.2007

The period to complete all NEPNCEQA documents is approximately 240 days. This timeline will govern theactivities related to the processing of the license application and the completion of all NEPA and CEQA relatedactions needed to support the decision regarding whether to approve. approve with conditions, or disapprove theproposed licenselleaselfranchise.

The notice of intent provides compliance with the requirements of the NEPA regulations and also serves as the

notice of preparation as required by CEQA. I t briefly describes the proposed action and possible alternatives and ourproposed scoping process. Address any questions about the proposed action. the scoping process, or the EISIEIR tothe Coast Guard or City of Los Angeles (see FOR FURTHER INFORMATION CONTACT).

Proposed Action and Alternatives

The proposed action requiring environmental review is the Federal licensing of the proposed deepwater portdescribed in "Summary of the Application/Proposed Action/Project" below. The alternatives to licensing theproposed port are: (1) licensing with conditions (including conditions designed to mitigate environmental impact).and (2) denying the application, which for purposes of environmental review is the "no-action" alternative.

The proposed action requiring environmental review by the City Of Los Angeles is the granting of a pipelinefranchise and appurtenant approvals for the same project. The City may also ( I ) approve the project. (2 ) approve theprolect with conditions, or (3) deny the project.

Scopinp Process

Public scoping is an early and open process for identifying and determining the scope of issues addressed in theEISIEIR. Scoping begins with this notice, continues through the public comment period and ends when the CoastGuard. Maritime Administration and the City have:

Invited the participation of Federal, State, and local agencies, any affected Indian tribes, the applicant, andother interested persons;Determined the actions, alternatives, and impacts described in 40 CFR 1508.25;Identified and eliminated from detailed study those issues that are not significant or that have been coveredelsewhere;Allocated responsibility for preparing EISIEIR components;Indicated any related environmental assessments or environmental impact statements that are not part of theEIS;Identified other relevant environmental review and consultation requirements;Indicated the relationship between timing of the environmental review and other aspects of the applicationprocess; andAt the Federal agencies' discretion, exercised the options provided in 40 CFR 1501.7 (b).

Once the scoping process is complete. the Coast Guard and City of Los Angeles will prepare a draft EISIEIR(DEISIDEIR), and publish a Federal Register notice announcing its public availability. To receive that notice, pleasecontact those identified in (FOR FURTHER INFORMATION). An opportunity to review and comment on the draftEISIEIR will be provided. The Coast Guard, Maritime Administration and City will consider those comments in thepreparation of the final EISIEIR (FEISIFEIR). As with the draft EIS, we will announce the availability of theFEISIFEIR and once again allow an opportunity for review and comment.

Availability of EISIEIR

4 notice of availability (NOA) will be published in the Federal Register when the DEISIDEIR is available. and theCity will file a notice of completion with the California State Clearinghouse and the Los Angeles County Clerk andwill publish a notice of availability in the "City of Los Angeles Environmental Notices" section of the Los AngelesTimes. The DEISIDEIR in hardcopy or electronic format will be distributed to agencies, local public libraries andinterested parties that have requested copies. Anyone who wishes to comment on the draft report will be providedwith an opportunity to review the DEISIDEIR and to offer comments on the environmental effects of the proposedproject. Comments received during the DEISIDEIR review period will be available in the public docket andresponded to in the FEISIFEIR. An NOA of the FEISIFEIR will also be published in the Federal Register, and theCity will issue notices of availability and completion. Additional public meetings will be held after the draft andfinal documents are published.

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Subj: W oodside Ocean Scoping Information Sept 12,2007

Sum marv o f the A~p l i ca t ion /P roposedActionIProiect

Woo dside Natural G as proposes to construct, own, and operate a deepwater port with associated ship-to-shiptransfer (ST S) location(s) and single point mooring (SP M) buoy s for the receiving of regasification liquefied naturalgas carriers (RLN GCs). o ffshore and onshore natural gas pipelines and a receiving and custody transfer facility(R CT S) to deliver natural g as with an annualized rate of 0.4 billion cubic feet per day (bcfld) and a peak of1. I bcftdinto the So uthern California market on initial development and an annualized rate of 1.0 bcUd and a peak o f up to

I .h billion cubic feet per day (bcYd) at full project development.

Th e deepw ater port would be located in the Federal waters of the Santa Monica Basin, 2 1 miles from the nearestpoint on the mainland o f Southern California, and 18 miles from the western end of Santa Catalina Island.approx imately 27 miles southwest of Los An geles International Airport (LAX), in a water depth o f approximately3.000 feet. It would consist of two single point mooring (SP M) buoys that serve as cargo discharge systemconnec tions for the regasification liquefied natural gas carriers (RLNGCs), a m ooringlanchoring array, four flexiblerisers that connect the SP Ms to four seafloor riser end manifolds, two pipeline end manifolds (PLEM s) and twoparallel 24-inch pipelines beginning on the seafloor at the PLEMs beneath the SPM buoys and con tinuing to shore.Th e SP M s would be located approximately 5 nautical miles (5.75 m iles) outside established shipping lanes (SPMNE: Latitude: 33'4 1 52"N. Longitude: 1 18O48'33"W and SPM SW: Latitude: 33"39'58"N, Long itude:1 18'49' 15"W).

Woo dside has proposed three ship-to-ship transfer locations ranging fiom approxim ately 35 to 90 nautical miles(40to 104 miles) fiom shore and 5 5 to 1 11 nautical miles (63 to 128 miles) from the port where each RLN GC isexpected to receive LNG cargo at sea from conventional LNG carriers. STS I San ta Rosa (Latitude 33'39'N.Longitude 1 1956'30"W), STS2 Inshore San Clem ente 33'05'N, Longitude 118O10'W) and STS3 Ska ugenOffshore (Latitude 32'15'N. Longitude 1200'W). O nly one transfer location would be used at a time. Th eRLNGC s. with storage capacity of 224,000 m3 of LNG would b e capable of receiving L NGC s with storagecapacities o f up to 2 16,000 m3 of LNG .

As proposed. LNG would be d elivered from overseas by conventional LNG carrier (LNGC) and transferred to aWoodside RLNGC at one of the three STS locations. The RLNGC would then be sailed and moored to an SPM,where the LNG would be regasified into natural gas and delivered to shore via two new parallel 24- inch pipelines.Th e RLN GC w ould then return to an STS location.

Th e RLNG Cs would use a turret system with the SPM s to allow the RLNGC to weathervane (rotate) around thebuoy . Onbo ard utilities and system s associated with RLNCG operations would include electric power generationand distribution, instrumentation and controls, and fire and safety systems. The RLNG C would include all marinesystems. com munications, navigation aids and equipment necessary to safely conduct RLN GC carrier operations,receive and vaporize product.

Th e RLN GCs w ould use a forced draft ambient air LNG vaporization system employing a combination o fintermediate fluid and direct ambient air with heat provided by ambient air called the Wood side Hybrid AirVaporization (WH AV) concept.

Natural gas would be delivered onshore via two 24-inch parallel pipelines, approximately 35 m iles in length. Thesepipelines would come o nshore on the north end of LAX at Dockw eiler Beach. It is proposed that horizontaldirectional drilling be used to install the pipelines beneath land and seabed in offshore City waters and underneaththe beach and adjacent d unes from a point abou t 1000 feet inland from the high tide mark just east o f Vista del Mar

on LAX property.

Wo odside would leaselfranchise from the City a 300 foot wide corridor on subm erged City lands out to the 3nautical mile (3. 45 mile) offshore limit of the City boundary. On-shore pipelines would be constructed on City-owne d land from the high tide line to Pershing Drive, passing under the beach and the El Segun do Dunes, andunderground through City streets. The route would include Westchester ParkwayIArbor Vitae Street, then south onBellanca Av enue to the receiving and custody transfer station (RC TS) and adjacent Inert Gas Injection Facility( IGIF) located at 5651 96"' Street, Los Angeles, about 4 miles inland. A single 36-inch pipeline would runapprox imately a qu arter of a mile back north on Bellanca Avenue to A rbor Vitae. then to the existing SouthernCalifornia Ga s natural g as pipeline infrastructure with Tie-in # I at the intersection of Aviation Boulevard and ArborVitae Street.

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Subj: Woodside Ocean Scoping Information Sept 12,2007

A second stage, with development depending o n demand, may include additional pipelines and tie-ins that are anapproximate I 1-mile single 24-in line from Tie-In #1 along Arbor Vitae, Prairie, Manchester. Firestone. andC'alifornia to Tie-ln #3 at Santa Ana Street and Otis Avenue in Sou th Gate and app roximate1 mile single 24-inchline from Manchester Street to Central Ave to Tie-In #2 at the intersection of S. Central Avenue and E. CenturyBoulevard. T hese pipeline routes include areas within the cities of Los Angeles. Inglewoo d, and South Gate. At fulldevelopment. Southern California Gas would o wn and operate the system down stream of the RCTS.

Th e application also includes an alternative DW P location in the Gulf of Santa Catalina approximately 3 0 milesfrom H untingto n Beach at latitude 117O56'28.53" west, longitude 33O13'24.88"north with a 30 mile pipelinerunning north to a shore crossing at theAE S power plant in Huntington Beach. It would cross through the cities ofHuntington Beach, Fountain Valley, Westminster, Garden Grove, Santa Ana. and Orange. It would be trenchedthrough city streets traveling north along Newland Street towards Bolsa Avenue; turn east at Bolsa Ave. (1" Street);turn north at the OCTA Metrolink Right of Way an d join Lincoln Ave; east on Fairhaven Ave.; north at Camb ridgeStreet: and finally west on Palm Ave., where it would connect to the SCG tie-in in Orange.

Currentlv Identified Environmental Issues

Th e NEPA and CEQ A processes require agencies to consider environmental impa cts that may result from apropos ed action. to inform the public o f potential impacts and alternatives, and to facilitate public invo lvement in the

assessm ent process. Additionally. CE QA requires measures to avoid o r lessen the significant impacts of a projectwhe n granting an approval, unless it finds certain benefits of the project outweig h those significant effects.

Th e EISIEIR for the OceanWay D WP will describe the nature and extent of environmental impacts of the proposedaction and each alternative, and will discuss appropriate mitigation measures for any ad verse impacts. The EISIEIRwill include, amo ng other matters, discussions of the purpose and need for the proposed action, a description ofalternatives. a description o f the affected environment, a n evaluation of the environmental impacts of the proposedaction and alternatives, and explanations o f proposed mitigation. The EISIEIR will assess the imp acts of thealternatives on the natural and human environmen t, including the no-actionlno project alternative, which for thisPro.ject would mean that the Maritime Administration would not approve the application or the City w ould notapprove the application for the leaselfranchise of the offshore pipelines in City waters. the R CTS. and o nshorepipelines. R egardless of geographic or oth er jurisdictional bo undaries, the Coast Guard, M aritime A dministrationand the City will consid er the entire proposed Project.

Environmental issues that will require detailed analysis include, but are not necessarily limited to:

Ae.sthetics:Alteration of the view shed by construction and operations.

Air Qunlify:Impacts on regional air quality, including visibility and other resources in sensitive Federal Clas s I areas(e.g., Chan nel Islands National Park).

Gcologiccrl resource.^ and Soils: Impacts on facilities from seismic hazards; Impacts on o nshore facilities fromliquefaction: an d erosion and dust

H~crrlnrdoir.~/Toxiccrterin1.s and \vasfes:Impacts from HAZMAT spills including petroleum, LNG, otherhydrocarbons, fuels, lubricant, urea, paints, solvents, and sanitary or other hazardous/toxic materials or waste.

hfnlnrine Trnnsportntion: Disruption in marine transportation affecting existing sh ip traffic to and from the ports ofLos An geles and Long Beach o r other ports; Potential n avigational hazards to marine traffic; increase in tankertravel to and from the single point mooring locations that could impact existing marine traffic.

Mur.inc Biolog-v:Vessels potentially striking sea turtles and marine mamm als; Crushing an d displacement o f benthiccomm unities during construction; Effects of "cold water" resulting from LNG release to marine mam mals; andEffects of increases in turbidity and change s in water quality, lights, and noise.

Ter.r.esfri~r1md Fre.sh~vrter iology: Impacts from construction or operation on wetlands and other habitats, andsensitive species. within the proposed pipeline landing and corridor areas.

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Subj: Woodside Ocean Scoping Information Sept 12,2 007

Rc.ci.ecltion:Impacts on boating and comm ercial and recreational fishing opportunities; Recreational areaspotentially im pacted by noise o r dust generated during construction: Ac cess to the beach or ocean ; andPermanent and temporary areas of restricted access around the RGLNC.

H(rztr~.(l.sri~dRisk/S(~fL;tv:NG releases resulting in potential impacts on third parties from fire, radiant energ y, orignitable gas cloud s (mainly to passengers of small craft operating near the RGL NC); Effec ts of pipeline failures onhumans. property. and m arine and terrestrial ecosystems. The EISIEIR will include an independently prepared. site-

specific risk assessment.

Noise: Potential increases in noise levels due to project construction and operation; and Effects of noise on localresidents, recreational visitors, passengers and crews on marine vessels, and marine mammals.

I,t'rrter Qualitv: Impacts from LNG o r spills, increases in turbidity, or unearthing o f contaminated sediments:Increases in shoreline erosion during construction and operation.

Etti.irai7mei7t(rI Jlrs tice: Potential disproportionate effects on minority and low -income populations w ithin the Prqjectarea. T he EISIEIR will identify any relevant populations that might be disproportionately affected by the proposedProject.

C111tui.trl esources: Potential effects on known and as yet unidentified cultural resources, offshore and onshore.

Energv crnd Mineral Resources: Restriction of future availability of exploitable oil and gas resources d ue toinfrastructure development and restricted access.

Land Use and Tr qfic: Impacts to existing land uses, especially in coastal areas designated for recreational purposes;Impa cts on marine resou rces off the coast of Los Angeles, including Catalina Island. the Channel Islands NationalMa rine Sanctuary and Channel Islands National Park; and Disruptions to traffic use and patterns.

Poj~ulcrtion nd Hou sing: Impacts on the existing community character and developme nt, population, housing,infrastructure and social services, employm ent, and the regional economic base.

C'rrmirl~rfii-c~mpacts: Th e EISIEIR will evaluate the cumulative effects of the project within each resource areaexam ined. The se include the increme ntal effects of past projects, other current and proposed projects, andreasonably foreseeable future projects.

No-Action/No Project Alternati~v:Th e EISIEIR will exam ine the impac ts of not approving the DW Plicense/lease/franchise application.

Alternath~eOfjh ore Locations:The EISIEIR will consider an alternative location in the vicinity of the proposedProject and other locations adjacent to the California coast.

Loiid-B ased A1ternati1~e.v:he California Legislature ma ndated the evaluation of land-based LNG sites. Land-basedalternatives previously con sidered by California agenc ies will be considered.

A1tcrn~rti1.e echn ologies:Alternative Project technologies. including ope n rack vaporizers and a hyb rid vaporizationsystem a nd alternative facility designs will also be evaluated.

A1ternafi1.e ipeline Routes:Th e EISIEIR will also evaluate an alternative subm arine pipeline route and an

alternative onshore pipeline route.

Fcdei-01, State, and Cih, permit, appr oi~a l, nd consultation:Th e major federal and city permit, approval, andconsultation requirem ents for OceanW ay include, but are not necessarily limited to. the following:

FederalDOT IMaritime Administration-DWP licenseDHS1U.S. Coast Guard-DWP design and operational requirementsU.S. Environmental Protection Agency (EPA) TitleV Federal air operating permit; Clean W ater Act(CW A) storm water and wastewater discharge permitsU.S. Ar my Co rps o f Engineer s (USACE)--Clean W ate r Act Sec tion404 and Rivers and Harbors ActSection 10 permitsU.S. Fish and Wildlife Service-Section 7, Endangered Species Act (ESA) consultation

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Subj: Woodside Ocean Scoping Information Sept 12.200 7

National Oceanic and Atmospheric Administration (NOA A), Section7. ESA consultation requirementsNOAA Fisheries-Magnuson-Stevens Fisheries Management and Conservation Act consultationNO AA Fisheries-Marine Mam mal Protection Act consultatio n

CaliforniaCalifornia Coastal Com mission Com pliance with California Coastal Act and con sistency with CaliforniaCoastal Management ProgramCalifornia State Historic Preservation Officer (SHP O), National Histic Preservation Act Section 106 andCalifornia historic preservation requirements, consultation and complian ce

City of Los AngelesLos Angeles Regional Water Quality Con trol Board (RWQCB)--CWA Section40 1 certificationLos Ange les RWQ CB-Hydrostatic test water discharge permitPipeline franchise and lease or easement approvalsLocal coastal development permit in compliance with the California Coastal Act

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