CSD Newsletter - Fall 2013

7/27/2019 CSD Newsletter - Fall 2013

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EXPANDING RESOURCES

FIFTH EDITION

Baldwin HillsCOMMUNITY ENERGYD I A L O G U E

Designed to improve the communities understanding of

Freeport-McMoRan Oil & Gas philosophy andoperations at the Inglewood Oil Field.

www.inglewoodoilfield.com


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Dear Neighbor,

This fall marks the fifth year since the adoption of the Baldwin Hills Community Standards District(CSD) by the Los Angeles County Board of Supervisors in 2008. As you may recall, the passage of the CSD madethe Inglewood Oil Field the most regulated oil field in California and subject to one of the most comprehensiveEnvironmental Impact Reports (EIR) ever conducted for an oil field project.

During the past five years over 60 action items and plans have been prepared pursuant to the terms of the CSD.Numerous ongoing tasks are required on an annual, quarterly, monthly, and daily basis to maintain compliance withthe CSD. Plans and reports include but are not limited to the Drilling Plan, Abandoned Well Testing, GroundMovement Surveys, the Environmental Quality Assurance Program, Groundwater Monitoring Reports, and AirMonitoring. The CSD provides for third-party oversight to ensure compliance with its terms.

One of the unique requirements of the CSD is the extensive level of public awareness opportunities the regulations

created. The Community Advisory Panel (CAP) meets the fourth Thursday of every month at Kenneth Hahn Park.The CAP meeting is open to the public and the public is encouraged to attend. Between the monthly public meetings,the dedicated public website that is maintained for the oil field, and the various publicly issued reports that areroutinely issued, the Inglewood Oil Field is the most transparent oil and gas operation in the state. An OperatorsReport is provided at each CAP meeting that includes updates on drilling activities, summaries on the number ofrework rigs on the field (a rework entails activities such as liner replacement and perforations), and any new plan orsubmittals to Los Angeles County.

Lastly, I am pleased to inform you that Plains Exploration & Production Company (PXP) has merged with FreeportMcMoRan Copper & Gold Inc. (FCX). As a result of the merger there have been no changes to our local operationsat the Inglewood Oil Field. Our new name is Freeport-McMoRan Oil & Gas (FM O&G). FCXs diverse portfolio of

mineral assets now includes high-quality oil and gas resources in the United States. To learn more about FCX, pleasevisit www.fcx.com.

FM O&G is dedicated to maintaining a strong safety record in the operation of our facilities and to an ongoingcooperative working relationship with our neighbors and the stakeholders in the communities surrounding theInglewood Oil Field. We encourage interested members of the community to contact Lisa Paillet who is available toattend your neighborhood association and community meeting to discuss operations at the oil field and to answeryour questions. Lisas contact information can be found on page 11 of the newsletter or online atwww.inglewoodoilfeildcom.

Sincerely,

Steve RuschVice PresidentEnvironmental Health & Safety andGovernmental Affairs


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Producing California Oil to Meet Californias Energy Needs


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We Appreciate Our Workforce Whose Daily Commitment to Safety, Teamwork

and Productivity are Key to our Continued Success


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Madden

Haynesville

San Joaquin Valley

Arroyo Grande

Santa Maria Basin

Los Angeles Basin

Eagle Ford

COMPANY

Freeport-McMoRan Oil & Gas (FM O&G) is a wholly-owned subsidiary of Freeport-McMoRan Copper & Gold(FCX), a premier U.S. based natural resource company with an industry leading global portfolio of mineral assets,

significant oil and gas resources and a growing production profile. FM O&G consists of oil & natural gas assets in

North America, including reserves in the Deepwater Gulf of Mexico (GOM), Onshore and Offshore California, Eagle

Ford and Haynesville Shale plays, and an industry leading position in the emerging shallow water Ultra-Deep gas

trend in the shelf of the GOM and Onshore in South Louisiana. Assets in FM O&Gs principal focus areas include

mature properties with long-lived reserves and significant development opportunities as well as newer properties

with development and exploration potential. FM O&G produced 5.0 million barrels of oil equivalent (BOE) in June

2013. Additional information about FM O&G can be found on FCXs website at www.fcx.com.

ASSET AREAS

Los Angeles and San Joaquin Basins Onshore California

Santa Maria Basin Offshore California

Gulf Coast Region, including Eagle Ford Shale and Haynesville Shale

Gulf of Mexico

Wind River Basin in the Rocky Mountains

Gulf of Mexico


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FIFTH EDITION 2013

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We Communicate Openly and Transparently with Stakeholders and Communitities

to Build Trust

Baldwin Hills Community Standards District Boundary Map

Key

CSD Boundary

Active Surface FieldBoundary

Culver City/LA City/County Boundary


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FIFTH EDITION 2013

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The following summarizes notable operational activities

Freeport-McMoRan Oil & Gas conducted during 2012 and 2013 FM O&G paid more than $11.4 million in taxes to Los Angeles County in 2012. As of June 2013 morethan $6.1 million have been paid to Los Angeles County.

134 well workovers (reworking of wells) were performed in 2012. A workover entails activities such asliner replacement, adding perforations, modifying injection profiles, and routine maintenance activities.

The 2012 approved Drilling Plan identified 53 wells, 25 new wells and 28 re-drills. Redrilling meansany drilling operation conducted to recomplete an existing well in the same or different oil producingzone where the well is deeper than the initial well depth. FM O&G drilled 4 new wells and 16 re-drills

as part of the 2012 drilling program. The 2013 approved drilling plan identified 53 wells, 45 new wells, and 8 re-drills. As of June 2013, 16

wells have been drilled.

4 wells were plugged and abandoned in 2012. As of June 2013 2 wells have been plugged andabandoned.

The geologic zones of interest for the 2012 drilling program ranged at a subsurface depth of between2200 feet and 8500 feet. In the 2013 drilling program the geologic zones of interest ranged at asubsurface depth of between 2300 feet and 6300 feet.

In 2012, the Inglewood Oil Field produced approximately 2,791,000 barrels of oil and 1,431,000 cubicfeet of natural gas. As of June 2013, the Inglewood Oil Field has produced approximately 1,356,000barrels of oil and 671,695 cubic feet of natural gas.


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FIFTH EDITION 2013

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2008 2009 2010

2008: CSD AdoptedPre-Drilling Requirements:

- Annual Drilling Plan

- Drilling Quiet Mode Plan

- Air Monitoring Plan

- Environmental QualityAssurance Plan

2009: CSD Plan Compliance

- Odor Minimization Plan- Emergency Response Plan

- Community Alert NotificationSystem (CAN)

- Website Established

2010: Drilling Resumed

- All Pre Drilling Plans Approved

- Accumulative Ground MovemenBaseline Established

- Fugitive Dust Control Plan

Approved- Rention Basin Survey Approved

NOTE: The above timeline is a snapshot of the last five years. We are unable to includeall notable accomplishments and Third Party Audits that occurred between 2008to 2013 due to space restrictions.

We conduct our activities in a manner that promotes positive and open relationships

with community, government and other stakeholders where we operate


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FIFTH EDITION 2013

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2011 2012 2013

2011: 1st Year of DrillingCompleted

- Landscaping Plan Phase 1 (LaBrea Avenue) Approved andInstalled

- Settlement Agreement Reached(Challenge to Adoption of the

CSD)- Recycling Plan Approved

- Unused & AbandonedEquipment Plan Approved

2012: Inglewood Oil FieldHydraulic Fracturing Study

- Evaluated Site Specific Impactsof the Well CompletionTechnologies.

- Independent Peer ReviewerCritiqued and ProvidedComments on the Frac Studyas Required by the Settlement

- Public meetings were held for

input on the surveys designs.The findings were reported

during the 2012 Annaul CSDCommunity Meeting

- Landscaping Plan Phase 2(Ladera Crest) Approved andInstalled

2013: Five Years of ComplianceUnder the CSD

- 22 Wells and Have BeenPlugged & Abandoned (sincethe inception of the CSD)

- Since the Inception of the CSD101 Wells Drilled

- Annual Requirements Includebut not Limited toAbandoned

Well Testing, Ground MovementSurveys, CommunityMeetings, etc.,

- Quarterly Reports Include butnot Limited to Ground WaterMonitoring Reports, ComplaintLogs, Alarm Reports to the FireDepartments, etc.


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The following summarizes proposed upcoming work planned in 2014.To view the Approved 2014 Annual Drilling, Redrilling, Well Abandonment, and

Well Pad Restoration Plan in its entirety please visit www.inglewoodoilfield.com.

The CSD allows a maximum of 53 wells annually. The 2014 Drilling Plan proposes 52 new wells and1 re-drill. The 53 wells are comprised of 27 producers and 26 injectors, of which 1 injector is a re-drillof an existing well. The plan includes using 2 drilling rigs in accordance with the CSD and SettlementAgreement.

The geologic zones of interest for the 2014 Plan range at a subsurface depth of between 950 feet and4,800 feet. This years proposed wells target shallow zone formations.

Wells are drilled and completed in accordance with regulations and permit conditions specified by theCalifornia Division of Oil and Gas and Geothermal Resources (DOGGR).

The Plan identifies16 wells for possible plug and abandonment. Five of these wells fall within 800 feetof developed areas. Since the inception of the CSD, 23 wells have been plugged and abandoned.

There are no new drilling pads proposed for construction or any pads considered for abandonmentand restoration in the 2014 Drilling Plan. For a well pad to be a candidate for abandonmentand restoration, it must meet three criteria.

1. There must be no active wells on the pad.2. There must be no idle wells on the pad that could be a future candidate for re-drilling or reworking.3. The pad would not be useful in the future for potential new wells.

A survey of the existing pads found that none of the pads meet any of these three criteria.


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FIFTH EDITION 2013

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Landscaping Update

After: Ladera Crest looking north.Before: Ladera Crest looking north.

Before: Ladera Crest looking northwest.

The most visible change Freeport-McMoRan Oil & Gas is making to the oil field involves the implementation ofthe multi-phase Landscaping Plan. The photographs below show the successful planting of Phase 2 landscapingbehind the Lewis Homes in Ladera Crest.

After: Ladera Crest looking northwest.

Before: Ladera Crest looking northeast. After: Ladera Crest looking northeast.


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Freeport-McMoRan Oil & Gas charitable contributions are geared toward supporting programs thatimprove the quality of life for citizens in the communities in which we operate

FM O&G supports On A Mission (OAM) andLAPDs 2nd Annual Deep Sea Fishing Adventure.OAM is dedicated to helping youth becomeresponsible and productive citizens.

FM O&G employees volunteered their time insupport of the Junior Blind of Americas 60thAnniversary and the 2013 Olympics.

FM O&G proudly sponsored the Science ofBiking; an interactive Science,Technology, Engineering and Mathematics(STEM) exhibit experienced by over 400children and adults at the Christmas-in-Julyevent held at Kenneth Hahn Park.


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Culver City students interact with the MobilOilfield Learning Unit (MOLU). The STEM exhibithas toured across the country, last year makingCalifornia the tenth state to host the MOLU.FM O&G proudly supports teachers and studentsthrough an annual contribution to the Culver CityEducation Foundation.


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Building and Creating Bridges in Our Communities

Contact Information:

Lisa PailletOmbudsperson

[email protected]

Please contact Lisa if you have questions regarding this newsletter or any matter related to the oil fields operations.Lisa is available to attend community meetings, special events, and meet with neighbors upon request in an effort

to foster and enhance on-going communication between Freeport-McMoRan Oil & Gas and our neighbors.

Freeport-McMoRan Oil & Gas5640 S. Fairfax AvenueLos Angeles, CA 90056

1-800-766-4108


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www.baldwinhillscsd.com

PresortedStandard

U.S. PostagePAID

Mercury Mailing

Systems Inc.

TO:


Freeport-McMoRan Oil & Gas

5640 South Fairfax Avenue

Los Angeles, CA 90056

EXPANDING RESOURCES

www inglewoodoileld com

2013 Baldwin Hills CSD Annual MeetingTuesday, November 12, 2013, 6:30 pm

Knox Presbyterian Church

5840 La Tijera Blvd

Los Angeles, CA 90056

CSD Newsletter - Fall 2013

Documents

Transcript of CSD Newsletter - Fall 2013