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CALENDOR ITEM

02 0 11/29/~4. PRC 6707 Lipphar-ci t

·AMENDMENT TO GENt:RAL LEASE - RIGHTi-OF-WAY USE

Philli>ps ·Petroleum Company 805~ East ~yfts Aven~e Par-kway Denver, CQlo~ado 80237

·JA.t·tn: J .. s, Lind

AREA I l"YPE. LAND AND LO.CAT:!:ON: Approximatel'y 17. 6 acres~ ·O'f .t1de and:·1submef.ged

·land dn ~~e Santa Barban~ Ch~nnel, Sant~

1LAN9 ·USF.:

Barbara County. · ·

Operat,ion, .and• ·ma:intenance :of a pipeline bundle linking Molino #7 ~nd ~6 g~s wells in the Santa Bar.bar.a• .channe·[' t·o'. ~ons.hor.e. Ta1dgua·s ·P'1il'n'b". ·

TERMS· OF ORIGINAL LEASE/PERMIT: . In~tial ~eriod: · 2~.~~ans b~~innihg~Uffi~ r;

1'9.6,4.

,Public J;>iab~~d. .. ty iinsur~nce·: -Combined $:i:nsle limi~~bOerage of s16~po6,ooo~

(;onside ration:

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TE~.M!? ,of.· .-r..~pPqsED i;,EM3E/PEijf't~<r: . , , . . . ;rni tia~. p.erio.~h:

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The •annual rental i~ .comp~l'd by rnul ti:plyinr::t aach' t:housand <;~pi1C:·f~et •9f 1gas: -and: ea.ch · bafm_e},.of ·jas condensate .by

;$,..!,J.0.4·; .. , the: [minfnium ann~_al .r;.~1nt.a1 d-:. 1$"1, 163 and i~1 appli~tj a~~inst ·the arinual ,r/e,flt?l· -computed; fi.vc-year n~nt ·r~.yiew.

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~~ ~~ars beginning July l, '11984',.

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Public liab~lity insurance! cembiri~d ~1ngie li~if ~overa~e ofi $10,000/000 .

Consideration: The annual renta]J .shaB. be« computed.by mult~~l~i~g each ".thou.sa'i'ld cubfl;kf.e:~~- ·of. 'gas a~d each ba~~el ~f gas condensa~e ·by $·. OP4'; the minimum· annual rental ,,5·i;a·11 .be •$ l\ ;~7 6.4· 1(lnd s.ha:ll ;be app~fed'·1~g*lf}.S t t~e annual r.enfal computed·;. five-year. rent rev.~ew.

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,9as1-s if.OR CONSIDER A WION: · 1 ·'

.Pu'rsuant:ito 21Cal'. A'dm·. C6'de·'2003. ,. , ' I ~ '

·APPLICANT STATUS: .Ap.plican.t i1s1 ·perrni~t·'t:~·e· ·of ·up.lan<j.

PR,EflEQ'.u.rs:r rE1 coND1:TtoNs, ·F-.EEs ·AN~ ·,f:.x<PENS,Es·;·. ·Filing has been 1re~eiyed.

. STATUi'Ji.OR.Y ·AND· OTHER REFERENCES:

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A. P.R"·C'. :·. Oj,v, 6, Parts 1 ?fld /.l; iDiv. -13.

B. ·Ca'l,. Adm. 1Code: · T<i.t·le 2·, D~;v. 31; Title 14, Dd.u;. ,:6 ~· ·,,

05/0·l/84

.OTHER: Pl::R:fINENT INFORMA1iibN1:

L 16n· J1.1Uy 12, f~84, ·th~ State lan9:s · Commiss.ion approvad a 2~-year le;ase· to· · 1Phi11:i:ps Pe'troleuin Company ,for a: 200 I wide ti•e ~~•a for cons~ruction and m~i~lenance ·~f ~·pi~eline b~ndle linkin~ Mo~~~o ~7 gas well in· the Santa ·Barbara ChanneO.. .to on~\hor~ Taj i.9'.ya~. Pilant. Le~ .~~JUbas. 1appl,i~d for an ~~end~~rit t~! ~aas~ ~Rc~io1•:1·t~ dbd ~!!JO· ·adi:!i tional' fl:o~li1n'e·s ·and on~!· addi t,ion.al cbntrd~ bundle ·withjn the 200 1 ~ide ·r{ght--of~way.. The additional liln,E:l.S wiil be used to link Molino ;;HJ to Molino! ''ii? and then .i;o'"'tinue on thr,ough ·thee exi1~ ting ~ight~of-way t~ shore~ The• are~ betwee~ Molino #7 and Molino #8 is covefi~d unde.r oil and gas Lea~C! PRC 29.~3. 1 and! the :proposed !~nJ<age has be~'1.-rev1ewi~d py Extracti~e De~~lopment §tiff.

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An EIR iden.tifi'ed' ~s ElR· No. 306,,. State clearinghouse No. 81062313 wa~ previously pr~.P~ro~, c;i:r,cu.late.d· a11d .certified· by; thq

.commission· on May, ,27:, 1l98~.. H: is -staff's ·9~~ri~~~ ~hat··~~e p~ten~ial i~pacts .u~sociated.,wi~~' the .addition of thre~ new l:i'nes' arc -discussed within SLC. EIR. #306. Th~-. ¢9mmi~.si~p .~qopted ... :f'.in~ings .~s. -req~ir.ed :p.y, 9.f-9~ a_nd ~-h~ s.t~ t~ .Gu~deli.ne~ ~i ~hin .calendar Item l:?::of May 2·7, 19.8-2 -and: .such .. r,H1t:l~n9s· ~r.e: ·~ric.9rp9r.~.1:~d h~re.in: by · -r.efer.en.ce .and are a.t.tached· ·hereto. as · . ~~h.i~i't.. p. A~~~ ti9n~·+h:,; t~t~ ·(~~-~4y;t.ty ·!Al;tl~; .r~dt.(~e ;~~ ,-l'.14.m~e.r of -~·in,~~- from ~hore

. ·~?· ~?.f·;l. Ila ... ~tl~L 1.th~re.~y, d~~rea~e~: 1ttte. impa.r. t .9n. ~ne K:ei,p ~~.ds,,.

:rlli's.· ac tivi.ty in.volves 1~119~ identi.f.i~d; -as possessing significan~ environmental val~~s pursuant to P.R.C. 6370, et seq. Based

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:· ·• ,µpon the staff'' s consul ta ti on with the· p~r~"'>,ns nominating. su~Ji lands ang through the ,._.·t.QA ·review p_r~t ... -t!!.:s, it ~s »the staff's opicriion that t!·;.:: projec"t, as .proposed, is coHsistent with its u•e classtFication.

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FLlRTHER ARPROVALS REQUIRED:

~XHIBITS~

Coastal Commission U. S. Corps of Enginears

A. Land Description. B. ·Lo ca t1on. 1Map. c. Project ·Map. D. CEQA Findings, Calendar Item 32, May 27,

1982.

IT IS RECOMM~NDED THAT THE COMMISSION:

1. DETERMINE THAT AN EIR, NO. 306, STATE CLEARINGHOUSE NO. 8·10623 B, l.JAS PREVIOUSLY PREPARED FOR THIS 'PROJECT PURSUANT TO THE PROViSIONS OF THE CEQA THAT THE COMMISSION ADOPTED

0 FINDINGS THERETO AND THAT THE COMM!SSlON HAS REViEWED -A~D tONSIDERED THf INFORMATION CONTAINED THEREIN. ANO REriFFIRMS THE ~INDI~GS ·RECATIVE TO THE PROPOSED AMENDMENT.

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cnLENOAR :tTEM· NO.'C 2 Q lcbNT'D-4 " • ""~ 1' , • .. " • J • , • , ~ , .. ' , r " • ,

2, DETERMINE THAT THE PROJECT, AS ~PPROVEO, WILL NOT HAVE A ~IGNIFtCANf' -~FFEGT ·9N 1 'TH.E ·ENVI.ROt-.fMENT.

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3, F·'INO: ·TH'A1'' TH:IS ACT·IVlTY' Wl-LL ·INVOLVE ·LANDS'. IDENTIF!EO AS . !POSSESStrNG SIGN'IFICANT -ENVIRONMENTAL: VALl).E$ ·PORSUAN.'f iO ,p. R .-c. 6370, iT SEQ·. I BUT TH'AT "SUCH· ACTIVITY WILL HAVE NO

4.

·'DIRECT QR INOI~ECT ·EFFECT ·qN· S~CH· LANDS. . .

AUTHORI·ZE rss'UANC'E TO 'PH!Lt'IPS' 'PE'TROLEUM COMPANY ·OF- AN· 'AMENDMENT ·TO LEASE 'PRC 6'7b7 ~- i, 'S.UBSJ~'NTIALLY ·ON FILE IN. THE :PRINC·I'P'At OFF-ICE 'OF THE; STA'rE tANo:s' ·cbMMISSIOf~, WHICH'' MOD·l'f!'ES. SAio·: LE'ASE TO· 'PROV~DE' £F,(fR' JHE 'AOQITION OF THREE NEW: LINES 'WITHIN· THE EXI,STirlld' ·RIGHT:..'Of-WAV ·AND· CHANGES TllE

-Ml:Ntl:MVM, ·~N~Ji,JAt; ~RE~rr:~fL' ;i:'d:;rs ~.::?§~· i:o. ·R..EFLEc:t THE ~oor:HqNAL­LIN~? ON' THE, J;AND~:'o,~scwr:BE_D .,QrJ' f:.Xtge·~·T II A II ATTACHED ANQ ~y

, REFERENCE- MADE,' At"PART' 'HE'REOF.' 'I HE' EFFECTIVE DATE OF THIS AMENDMENT IS NOVEM'BER '.?.'~;,. 1'98'4'~ 'Alt:.''REMAINING' ,ff!R~1S ANO CONDITIONS OF 'LEASE .PRO 6'10'1, i REMAIN UNCHANGED AND IN ·FULL "f'O~C~ A'ND, ;EFFECT .• , ' '· : · ' · . ' , , , .

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. · ·. ·"l · · · ;LANO· DE.SCRIP<TION· PRC ·6701:;1 :,, .. .f~~· ~: . . ..... ' " :· . .,. . ' . : : ,., r:"',.' . ·1A' ;st,rip:·of· ·~f~e' .~n? ,~~bpterge~" ·1and ·200· feet .. ill wf dth· in ·the· Santa ·Barbara· Chann~l,

·. '.>>:'. . ~anta Barbar.a Co'l.inty,. Ca)ffornfa", t~e: center line of which is d~scribed as « ,,. · ._ · \.~.:-: f o 11 ows::· · "· · · ', ~r·. '.,' ./ ) .·-'f •

· ·'·: .. ·:: :,. /1 :r;t~.I~Ni~~~.a~ .~:~~oi~~: qn· the· ~~~n.'hfgh t.ide timr or'!' ~he shore.of . : ,.: .. ,, · · 'Santa .Barbara .. Ch~nnel which ·bears N 61° 12' 59 11 W~ 168.43.feet

·ftoin: s~at,1ort l82>qi~·,.~a:f d· 11 i·n.e" as shown upon t~e· map en~i tle~ · '"S!Jrvey of the Mean\\High· Tfde 'i;ine ·Along ~he Sh9re of 'the Pacific :Oce~n, V.icfoity .Qf TaJiguas ·Creek", ~ated.' February, 1957, Sh.eet. ·12 ·of 39t and . .filed! for -record. in Book. 4l Of Miscenaneous Maps at ,page ·~?3.! Santa . Ba.rb.~ra ·county. records~· th~ilce from. ·5!1 rn.: poi·ri~ of .. begirin.ing S 65? 15·1 "1211 ~h· 1538.68 feet; thence .S: 55~ 46• ··11 11 W, l!l75.57 'feet; ·thence s 45° 50'· 38'1 ·.w~ 864, 18 feet to the east· 1"1'1 ne of State te·ase PRC .. 2933: ·1' ancr 'th"e .. end of file· 'tferei n. des'C'ri bed' ·11ne. · · ·

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~XCEPJING THEREFROMJ1anY portion ·lying landward of the ordin~·r_y high water mark· gf .t~e .Pacific, Oc~an.

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·ENO OF OESCRIPT~ON.

REVIEW~D NOV.El~B~R 7, 1984.·BY BOUNDARY ~ERV.ICES UNIT, M. L. SHAFER', SUP.ERVISOR.

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I .n P.::c 6707 .1 , •O

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'.MINUTE. ·JTEM'

This Calendar Item No. ./~ was aQ'orovcd as iytinute Item No.~ by the Sta.te ·Lands Commission by a vote of J__ to _Lat its, $1..271.f.;J

CALEND"R ITEM

5:/iUBi w 40222 ·Livenick PRC 293'3

meeting. 3·2 •

RESUMPTION -OF OFFSHORE EXPLORATORY DRILLING OPERATIONS'

ON' STATE OIL AND GAS LE;ASE ·PRC Z933.1, SANTA BARBARA COUNTY

, /

OPERATOR~ 'Phillips Pet~oleum Company ~306 Santa Barbara Street .:s·ox 2099 · Santa Barbara, Cali~ornia 93i2.o

, ' \ AREki· tYP.E ,LAND .AND "LOCATION: . .

. Stace Oil and Gas Lease PRC 293'3.l ·was iss4ed co P~~llips1 ·Petro·t~um { 50 percent)

SUMMARY::

and :Pal:Jley :P.etro]-:eurp (5,0 pel:"cen.t) on •Qc~9b~r .~5, 196~ and cont4ins .approximately- 4,?~9 ac~~s · of bide and ·subme~ged lands midway p~tween Point· ·Conception and Santa Barbara·.

Phi1lips ha~ submitted applicat~ons to resume explor~tory. drilling ope~ations on the sUbj~ct ~ease. The prim•~y o~jectiv~ of this resympti:pn of 1h:4-lling· is to· e~plore sever .. ·l previoust.y l!nexp~o;c-ed area·s· of· the lease ih an effort to locat~ recoverable oil ~nd gas resour~es. · ·

Phillips proposes tp u;;e a jacJ<.:.up ~i·g- · to drill four wells in ,PRC 29'33.rl. 'If ex_;· plor~tpry t~sts lndica~~· ~he ~~~sen6~ cif 1

natural gas in co~m,rc~~L ·quancitie~; ,permane6t sub~~a wellhead completion,equipment and flcw~ines w~ll be in~ta~led, connecting the wellheags· t:o Phflli~·;:; exist~pg Tajiguas Gas ~rocessl:ng Pla.~c. Ar,~hough 'the well,,s wH·l be ·tested for'· crude oil; produc·cTofi wfll be deferred until additional environmental an~11sis and regulatory approvais are obtaii:i.~4·

On F(:bruary 1, 1969,. in· respo~se··to an oil and gas well blowout on the Federal OCS in. -the Santa ~arbara Channel, :the~ .Seate Lands Commission declared a moratorium: o.n further drilling on State offshcrre· ·o·;~. A

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·;. ,·; ¥.,_ ~~ .. .§

35

18

and gas leases, and announced tha~»rfo 'n~~L W

EXHIBI~ -~ -1- 1 2 i: ' • .J !

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cAtENoAR rrrEM No,. 32 a .. ( coNTo »

wells ~ould be apptoved pending a complete review cif all offshore drilling regulations, techniques and procedures.

On July 31, 1969, the Commission unanimously adopted a rescilution: rejecting, the, st'aff ts recommendation· ~hat oil and gas drilling on State Offshore· leases be restuned'. However) the, tes6l~ti6n did,· provide that: ,

uRecommendations for drilling wells on ~xi~tin~ l~ji~~,m~Y bi :Brci~iht" tci:fhe Commission ·for -consi;dcr<iti:O~ 'On <l' WelJi:..by•wcll. ;basis. , if there-are -tiriitjtle circumGtanc~s that' justi.fy ·and •i'equb:~ such drilling." (Minutes, ·State !Lands· :Col)'lini;s'sion, 1969, page 862).

Iri ioecemb'er, 19 74, ·the Comri1ission ·authorized ( 1) the ad6pt11,on -O'f. procedures for drilling and productiqn operations from existing offsh6re 1~a~•~, arid (2) the resump~ion of 'dtil11:ing· operations on a lease-by-lease . • .ba~is, ~ud& ~~·resumption predicated upon a· :rev.few 'by t qe· staff for compliance with the'se- proc'edures and the requirements of CEQA, with final agproval by the ~tate ;Lands Comn'.!f.ss·to·n.

•lO/iJ;4/,82 •

PERTINENT INFORMATION: . '

"'1· ·A, ·final EIR was prepared for the Gr.>mf!1ission by. Envi:roruT):enc·a:1 Resources Group, :1 divisio~ of .Jacob's Ehgl:neering Group Inc., pursuant to 'CEQA .and~ .the State EIR Guidelines. It Mi~ found! cha~ the project will not have a1,si!gni:fi'C:arit e·ffect on the environment.

The Final EIR for this project is on file in oh~ offi'ce 'Of the Commission and' rs tnco~porated .by ref~r~nce a$ though ftllly set forth herein. An Execut!,"e Summary .of ,the· .env.i:roririlcfatal -a'c:>ctim~nt is ao"tached hereto as Exhi'bit "B".

The, project ,is. si·tuated~ on lands identifjred .a:s possessing .s,igni·f~:canc ·environmental values pursuant to P.R.C. 6370.1, and is

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CALENDA·R· I·TEM- NO·. :'3 :2 . ( CbNTDJ

classified in use category ·Class "B" which a~~horizes Limi~e~ U~e. The project as · ~io~o,ed will not .have a significant effect upo~ the identified environmental values.

STATUTORY.AND OTHER. REFERENCES: .. ·· ·' · · ·A.• ··P~~ .• c.: Div. 6, Parts 1 and 2.

B.. Cal. Adm. Code: Title 2, Div. 3; title 14, D·iv. 6 •

. AGREEMENTS FOR THE .. PROTECTION OF THIRD PERSONS: ... ., · · · .s.e~~J ·b~~ .prepareq a1greeinents which. are.

a4~~~iogs .to ·Che pre?ent lease requirements, ar~ .~9cep.t:ab1e ·to .. ~h<!! Operator, and offer

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. inc;J;"ea!)ied. ·pt:otect~9n1 to third ·per~ons ·for any damages ·that may1 arise from oper~t~ons ·cqnqucted under it he ·lease. The agreements proviq~: ..

~·

P~~L11ps.~etroleum Company w!tl.furnish th~. S~3te ~ands Commission with a certi­£icate. of insurance in the amount of $,.io, mi lli.on·, -.evidencing ipsurance .~gainst li~bil-ity fo:r, damages to third per~·?ons •.

Procedure.s shal~l be established for 'the prompt p~9cessing of all ~laims

and the promp.t :payment of -uncontested claims. ·

Phillips Fettoleum Co~pany wi!~ agree tq: 111ediation· •prbcedures app·rov.ed }?y ·the Execut-iv,e :of ficei."-, aftetj <:;oni?ul­t:at.i:on wi't;h· the• Offi~e of t,W~ :l\ttorney .Gen~r.al, .to1 fac·ilitate the 'ssttlerrient of .conte-ste9• cl·aims by third pe;~so:ns without the necessity of litig~tion.

EXHIBITS=· ~ ·~ ~ ' ~ ... ~ ' ~

A-~ L.ocation Map.• .p·.. EIR iExecut~v.e· Summary •

.f.f: . I'S· ~J:;~QMM.ENDEQ· '.l'HA-T THE .. COMMISSION:

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CERTIFY THAT AN EIR NO. 306 (,SCH 81052313) WAS PREPARED BY THE STATE ;LANDS COMMISSION PURSUANT TO THE PROVISIONS OF· '(H¢ GT;:QA. ·A~D .SUCH DOCUMENT .WAS REVIEWED AND CONSIDEJlED.

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CALENDAR. TTEM. NO. 3 2·. (CONTD)

FIND THAT CHANGES OR.ALTERATI6NS·HAVE BEEN .REQUIRED ':rN .oR· INCORPORATED. nno' THE PROirECT WHICH MITIGATE . . OR Av'oID.SIGNIFICANT ENVtRONMENTAL ;EFFl'tcirs THEREOF As IDENTIFIED IN THE COMPLETED· :EIR. . ,

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~. FIND THAT GRANTING OF THE APPROVAL OF THIS PROJECT . WILL NOT HAVE NO' SIGNIFICANT EFF.ECT UPON· THE ENVIRONMENTAL CHARACTERISTICS 'ID.ENTIFIED: PURSUANT' TO SECTION 6370'.1

4. Qf 'J:HE ·p ."R ~ C. , . . . .

CONDITION APPROVAL OF ·PHILLIP'S' ·APPJJICA1'ION ON ITS .XCCEPTANCE ;OF AN 'M:i'ENDM.ENT .OF s1'ATE 'dI1t, 'AND GAS LEASE .PRC .. 2 9 j 3 •. 1 TO. PROYI DE. 'F.OR" :CbMPtiM~CE Wf~TH STATE. t;ANDS' 9,0MMIS~~QN .. Rj::GULJ\TI9.N.S. :~!'{' EFFECT ·q~ Ml\¥ 2.7, 1982·.

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. 5. AUTHOihZE THE RESUMPTION. OF 'EXPLORATORY DRILLING OPERATIONS ON',STATE' OIL 'A':ND 'GAS ·I.!EASE ·PRC 2a99;1: IN ACCORDANCE WIT~ THE TERMS AND CONDITIONS OF THE LEASES AND THE RULES AND REGULATIONS OF THE STATE LANDS CO~L.'tISSION SUBJECT TO THE UNDERSTANDING THAT PHILLIPS HAS AGREED TO THE FOLLOWING PROVISIONS: . . .,

A. PHILLIPS PETROLEUM COMPANY WILL FURNlSH1 TO THE STATE LANDS COMMISSION A CERTIFICATE OF INSURANCE t FROM A RECOGNIZED INSURANCE COMPANY DOING BUSINESS

B.

IN CALIFORNIA IN THE SUM OF $10 MILLION: INCLUDING THE STATE AS A NAMED INSURED ,~.ND EVIDENCE INSURANCE AGAINST LIABILITY FOR DAMAGES TO THIRD PERSONS. CAUSED BY ANY AND ALL DRILLING ACTIVITIES UNDE.R SAID LEASES. THIS CERTinCATE SHALL NOT BE CAN~EL~ED., EXCEPT UPON 30 DAYS NOTICE ·AND PHILLIPS REPLACING SAID CERTIFICATE OF· INSURA~CE WITH A SIMILAR ONE WHICH FULFILLS THE ABOVE REQUIREME~'.1'$, AND SHALL BE IN EFFECT AT ALL TIMES UNTIL AL~ DRILLING ·FROM SAID LEASES TERMINATE AND ALL WELLS HAVE BEEN PROPERL'i· ABANDONED IN THE MANNER REQUIR~D BY LAW. .

SHOULD ANY EVENT OCCUR CAUSING A SUBSTANTIAL NUMBER OF CLAIMS FOR 'DAMAGES TO BE FILED AGAINST PHILLIPS PETROLEUM COMPANY, AS A RESULT OF OPERATIONS UNDER SAID LEASES. PH!'LLIPS SHALL, WITHiN TEN DAYS AFTER SUCH EVENT, CAUSE TO BE OPENED OR QPEN A CLAIMS OFFICE WITHIN THE CITY OF SANTA BARBARA STAFFED WITH SUFFTC'IENT PERSONNEi:. AND AUTHORITY TO PROCESS .ALL CLAIMS AND TO SETTLE ALL UNCONTESTED CLAIMS. BARRING UNUSUAL CIRCUMSTANCES, THE STAFFING. ·OF SAID OFFICE SHALL BE SUFFICIENT TO P,ROCESS ALL CLAIMS AND SETTLE ALL UNCONTESTED CLAIMS WITHIN 60 DAYS OF THE ESTABLISHMENT OF SAID OFFICE.

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ieALENDAR 'ITEM' ·No., $:2· '.(,CONTD·} -.:to FACI•LlTA'f.E :rHE ·sE1'TLE~1ENT OF .CONTESTED; CLAIMS, f3.Y .itHIRD· ;p~~~d~s, ·tit:T~\OUT, ~11-t.E .~ECE~SITY ,.QF. liITIGA1·TIQN, ·P14'I-L~IPS· AGR'EES ·:ro/,MEDIAT-ION :PROCED.URES AF\PROVED . 'a•{ TlfE EXECU'l':IYEi·OF'FI'.CER A:FTER ·:coNs'lltTAT't<}N WITH THE OFFIC* ·bl: THE ATTORNEY G.E.NERAL~ .: .. . "

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D. AtL DR·It.LtNG SHALL t~f: .CONDUCTED UNDER EACH! tEASE ·(N ''Acq'd~bANCE:. ~:l:t.H. l\Pi~~ .'J! c~~.~E: .4W~ ,,· 'tij~;. R'UgES , AND REGULATIONS OF THE STi\r~" :tAND_S\;·CQM~1~~s+\qN ·~~ND THE ' DIVISION OF OIL A~D GA9~ AND A~ REFERENGED:QR DESCRIBED I:~. ,Ti:fE: ;g~ NA,L jEI.~ :'.R;ELA T~NG, TQ -E~~hQR~:r'.QRX ·Dl~t.~LLING .oP.ERAT·IONS' B.Y.' PiHILLlPS· STATE. ~Oit,,AND'.GAS· uEi\sE :pile 2.3;~f9 .J,. Kooer'Etf:sy :ri:tE s.TA'l'E' tANos":coMMi\ssroN.

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E. PH:i-L:Li:PS SHAtt IMPt~~ENf AND ;MAi:NTAhJ:' 'PROPEHLY . ;AijP,, ,EffE(',;I,I;.N;t'L Y, 1'f1F; ·O ~ ~. ?.P:I t~ .:cqtfl' I ~GEtiPY P\~~-N Q~ flLE't rn ·.ifH.E",9~EI·C~:9.F TJ;lE' 9QMM+~~~mf.; '

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~ PROJECT AREA P.RC :2931.1

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EXECUTIVE SUMMARY

A. INTRODUCTION

Til is En vi ronmenta 1 Impact Report (E IR) has been prep a red f n accor~ance with the State EIR Guidelines implementi.119 the CaJifornfa Environm~ntal Quality Act of 1970 (CEQA). The EIR has been developed under~ contractual agreement with the Lead Agency, the California State .Lands Commission (SLC). It addr.esses the environmenta·~ impacts of exploratory an~ production· dritling operatj\)ns proposed 'by Phil 1 His P~tro leµm 1Company· on Stal;e OH and Gas 4ease PRC 293:~.l in State Tidelands 1,offl:hore Sarita Barbara Cou~~y ·

B. PRO~ECT DESCRIPTION

Utilizing mobile dri11ingi units -{probably a jack-up. rig, but 1f a J.ack· up rig fl; not available, then et1ther.· a driflship or a semf-isubmersible drpning unit) Phillips .Proposes to drj Ill f~1ur expl9rat_or.Y. \'tells ifith.in State o.n and Gas Leas!~ PRC 2933.1. If short-term production testirig,,revea1s'..th.e-presence of com1J1e1:.cially recoverable vo[lu~:s of n11tural gas, ttien 'penn.anent su'.bsea wel lh:?ad] ccmpletior. equipment .. wp 1 be; lnstal led. as wel 1· .:Is ·flowMnes .conn:ect­ing the 1wel lheads with Philli.os' existing Tajiguas Ga~· Proce~sing Pl~nt, which lf1!s roughly 160 feet (Sq me~ers) .inland slightly· e.ast ot:·:~he e~~~ern boundarrof the lease tract. J f e,xpl or'dtion dpl!s not reveal i~ommerci,al ly r,ecovera!~le gas volumes, the· w!~l ls .wi11 ,'~e P.lugged' and a~~ndo11~~~, in at!=cr..: d~nce wit;h State ~ands. Comm1ssii?!1 re\~ulati,ons. ' .

The; primary objectiv~ of th·~ P~fl-l:fps· expl~rator.y ,p_rograins· i~\ the de~er­minationi of the ·exi stenc,i~ of e¢o!lomical ly recoverable natural .gas suppJies from the, geo 1 cgi c .format ions tJiat .under, lii e ~he project area. ~e 11 ~epths would range frtm 9,poo to 13;'.?qQ f,!~et) (2,Z40 to 4,115 metersh Dri.1Jing ope rat io.ns are e.'(pect ed t.o req~1i'17e '.s.9 day~. per we 11 ; fl 01'() in~ i n.~:qa.1 ·lcft ~on, includi O!~ appto.<imately 200 fe~~; (60: meters) of onshore fl owl i ne :iri:~t'al. la~jon, would rei~uire about 47 days. Thu.s,. total project durat·ion would be appr9xi­mately 367 days assuming that tlie \forJr' propos~d wet ls arii1 ·drilled c<\nsecu~!jve-ly. Although the ·wells will ·~:tsq i?e' tested 'for cr~sfe oM, Ph'ill,',ips ha~ no current pl ans to produce crude; oU fr cm Lease. ·PRC '2933'. l; Ph ill i'ps' n~arby Of!Shor.e.pcocessing: fac,ility cai)not !pf.ocess crude cil. Any possiple fu~ure ~fl j~rgdu.~tion fran this leas.e 1~ill ·rei1ui're additional environmenta'I anal;(sis and regulatory approval·. ',

' . PhiHips prop1>ses to instan ,, maintain and test blowout 1 preven~ion

,(BOP.) •. syst·e111s to -.lssur:e wel 1 contr.ol throughout the project per~iod. !Oil ~,qntaminat,ed drilljng 1i1uds and cu.ttings would be transported to shore for disp.osal ~t an apj)roved onshore <li',sposal site; non-contaminated' muds "and 6{Y-free and clean~d c~ttin~s woul~ be discharged to the ocean in accordjnce ...,·ith.:Na.fiona1 Pain~; Ois'¢harge Elimina·~ion System (NPDES) permit requireme~ts.

'~en testing l"ill pe perJormed fn order to determine the flow ;and .,compositio'n charact1?risit1cs of the !ga:i reservoir dnd to de~ennine the feasi­bi·lity of a subsea we11Head type of· cciinplet'ion. A continuous ~6-hour pro~ess of igniting and fl~!ring the produc~d ·.ga? to the a~mosphed· may be requi,red for ,each wel I, at cl max.imum hourly· rate of 250,0001 cubic ft!et (.15,720 cubic A m~ters). This flari11g wi.11 be performed in accordance wi.th procel.lures 3pproved · wr

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by the Santa Barbara County Air Pollution Control Di str,ct. In addf tion. it fs estimated that 830 ··barrels pet"' day of 1 fqui<J. ('a mixture of water and on in a ratio that cannot be determined at this time) ·wfll be produced for an estimated five days from each well whi.le testing the Monterey Fonnat1on. Further; production·. of ·rouglily 60'barrels per day of condensate (natuNl gas 1 iqui ds) ·1s expected for ·fhe days ff om each wen whi·le ·testing the Vaqueros and M~ti11ja 'Fonnations. ·

Phfl-lips ·has ·deveioped· contingency ·prans to· cope with' -;>cfssi~le oil spills, gas accidents, and other potential emi?rgency. conditions (e.9~, the pre.:;ence of hydrogen sulfide gas). Critical operations and curtaHmt:;nt plans also have been developed which identify varfous "c~i~j~al" operations !1nd SPE?C.if¥ the condi t,ions under which such operations ~oul ~ not be started.

·: C. ENVIRONMENTAL IMPACTS AND MHIGATION· ,::., ; <!

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·1. Geo fooi c and 'Geotechni"ca l· Cons i derat.iOns

The pr·oposed'.activfties· are ·not 'expected to·,have any s·ignif.i'cant direct effects: on tH~· 9P.olo9ic ·envtronm~rit• Tlie most· sign·i·fi>cant .geofogic features or· processes in·'t~e 11e~slHtreas that may adversely af.fect dril i'i'ng·operations, arid· thus i n'CH rect ly"poss·i fily cacille ddve·rse environmental impacts; a re earth.;. ·quake-related' ('seis'miC· shakf.ng, :fault ·rupture, tst!nainis, liquefaction and subiriari ne' 1 ands i fqes). 'None of' the gecil ~gi c· 1featu·res or ·proce~ses in 'the

·. a·r~a ~·re likely ·to ·affac~ dr'fl ltn·g 'operat·ions·, 'Or cause- adverse impacts :i:furi ng the planned explOratii>n and1·prqd'uct«fon«drilling".program.-.

SignHicant seismic ·shaking' (peak ·liorizon'tal' ~edroclc a~celerations of about 10.479')' may result 'froin·the"maximiJm probabre ea'r!thquakes !(jn major faults iii lne re9·;~n·. The 'liikelifiocd' of s.er~inic shakfng';.;caused dama·ge· to· project

. equHfo1erit J s 1 ow;· however, it cou'l'd ~e f~rther reouced by se l~ct-ing-appropri ate ~i-i 11 frig rigs an~ other · eq4i pment • >None of ·t~·e faults i'ff th'f area show ·evidence of recent act'ivity. Al t'ho~·gh the ·chances of fault movement occur.ring during drilling are reli'ote, wells t:~at cross faults could be damaged (probab.,y ·collapsed cir sh~ared casings)., Thi:~ type of fat1lt damage has o'ccurred else­·wfiere in· C:alffornia without· causing, ·serious; l'eaks·,, however. Although the pptentfar ·for}Jiquefactii:m' in' the projes~ ~d,a has· not ·bE{en ·fu,rrny..~valuated, 'th~ likelihood of ·a' strong s.cisniic' e~~nt triggeririg '1ique'foc1~!ion in the »Jicinity .during exploratory dri 1Miilg· is.;, ··ry smallh A' large tsun~:ni {seismic seaqwave)· could a<1verselY affect· offshore dri'l'lf ng actjvitfes in shallow waters. However, a· "tsunami· tn<.1t· would· significant"ly· affect exploration c~ production activities is unlikely. Drilling and 1productfori activities would not· ·be: .exp~cted ·to ·be affected ~Y submarine· mas·s~mover..ent processes, as sea fl obi~ ·gradi'ents in· '::he project ar~as are· ·J ow and no evi dene.e has been found cil~ su~lnarine laridsl ides or oth!!_r mass;;movement processes near the propose~· drilling sites~

TJlree of the pr'oposed drf Ming: s.ftes are in or· vt~ai:· ar~as ·of exposed 'bedr9ck or"rock covered' by a th'i n .mantle· of recent sedime·nt. Thi S"concei vab ly could cause" problems for ·support fog jad-up ·rf gs (which r:est on the seafloor)

·or in arictioring floating rigs. Selection of drilling rigs d2si·grieg to opera .. te,

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ifl such ar~as and .ippropdcite founda,tion studies shou'ld mit~gJte any potential problems, however •.

Deep gas zo~es may be.prP.sent below th~ proposed dril~tng sites. These deep gas zones mtght be under ·abnormally high pressure and. could. be hazardous if encountered unexpectedly. However, any ad.verse impacts -are unlikely if drilling is performed fn accordance with standard industry practice cfod appl:tcable ~tate r~gulations, and with the knowledge that such gas zones may be encountere<i.

2. AirQuality

The proposed project would involve offshore exploratory gas and oil drilling and, if commercial quantities of gas ar~ fou.nd, flowline installation • (to connect the wellheads ·to the Phil lips ·rajiguas Gas ·Processing Plant) and. processing of the produ_cqd· _gas~ T~I!· m,aJ~r. ~.mi~~to11- sour~es from the proposed exp 1 oratory act ivi ti es ~1.iild be. 'the di ese 1· ·rcr.lprocating· ·erigi nes g·enerat1 ng power for we 11 .dri 11 i ng_, .. td P.l'·i'i;~h .1:es ~ ng, an~ oth~r mi sceU aneous' uses; and the interna 1. combustion engines, .pq~r 111g· ,~h~ support. ves~~ lS,,, ( e. g, supply boats and tugboats)'" Em ssions ass.oci!1.te4. with erploratory. dnllling .would al so result ~rom. gas produc.e~ .during )'le~M· ~ro~11,c~iqn .~~.sting,, employee vetdcl.e .use., and he l 1 coptt? r,s use~. to transport pet!iOOI'\~ \ ;bet:-1een Santa S~r{bara Ai ~port ·and the dril1ii119.,unit. Emi.ssions fr.Qin tnes.e source~ ho~ever woul.4 ~e relative-ly minor. Flo)'lline- instal lcltion e1t1i~sions \:'IO~ld re~ult from ~ var,iety 6f equipment, SUCh; as wel.di ng mac_h,i l'.ICS use9 ·tO clSSemb l~ the fl 9\<f l.i.l'\~i, .backh9es e used .to prepare the on:>iaur~ ncwl ine asseinoly site, and vessels (e.,g. survey,.. · boats, ~argesl used 1to pul 1 the fl.owli.ne ~nto pla~~· Fl9wline in;stallation .emissions. 'f/OUld ,be c9~s1dere<j·minor~, Gas processing em.issions-"!ouldl,primarily result from natural1 ·gas-fired· cpmpr.es~or engiies; ·methanol r~9~ner~tors a,nd ,condensat~ stab;J>i·zc;~s wou}.d .Pro~4~e an "insig"ific;ant amo.unt, of e\r.issions. Gas· woul~ be proc~ssad lt the f~jig~~~ Gas ?rqcessing plant, lpc~te~ apprcx­·il)1ately three ·f!liles (,4.8 ki-1,ometers) northeast of the qffshore .dril 1 i ng ·Sites.

Obviously, the' amoµnt of emi~siqtis asspciat~d. with gas proi:~ssi119 woul~ depend on the lev~)s .of g~s t'o~nd (\If any,). lt il) .not kno~m .if suf.ficie11~ ,quantities of. gas: wil 1 be encountered to !"arran~ proquc~iol'). However, whe,n :considering comP.ar.~ble time pe.r.io9s of activity -(approxima~el.Y a yead, ofrf.s~ore exploratory. dr.iJ,J.ing-.wciuld resul~ i.n grea~er erni~sion levels of all pollutants tharl.would ,gas processing,.ac.~ivities. ·

. For.offsllor.e· exploratory activi~ie~, ~he ~YP~· of p9llutant emitted· in

.the la:-gest quantities, by far., would be. nitrogen oxides (N9xJ~. •rd th annual

.~ission· le•1eJs approximately. fo,ur ,and. ~ll)e';"hal f .times greater ttian that of the second highest pollutant (carbon monoxid~).. The 1,argest :port.ion of nitrogen oxides would result from engines providing on-dg power;: the supply boat~ould-contribute the second'highest level ·of emissions. A large portion ·Of supp1y boat .emissions would occur 'tli1He the vessels .are ~n transit between the oftshore drill sites. and.'Por.t Hueneme .and thus woci'ld be em1ttad' over an ei<tended gaographic area. Daily levels of ~itrogen oxides may exceed 3,~oo pounds ( 1,633 k i 1 ograms) during the move-on of the ri 1J and 1,890 pounds (857 kilograms) per day 'during the actual drilling. On an. annual basis, offshof.f? e

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.explor.atory ·emi.ss,ions ,would be ,{.in de<;:re~s1"9. order}.: n1tr.09e2. ;R~ides (199;:4 tons 'Or. l~l.O 111etdc tons}. car.ban· mon~x1~e {.42•.6:tons or 38~( ll!~tric tonsh tot.al hydrocarbons .(13.J tons Pf, .i2~.l me~r.jc t~n~) •.. sulfur i>xicf~~ (lJ.~. tons or 12.0 rr.etric. tons), 4ln!:1: ,~ot~l su$pefld~d partic:ul~tcs (lZ.9 tgns or 11.7 metric tons) •

. f,low11ne installation :would. r!!qufre ab~~ }1 ~Y.S: .~n~ result 1n 1.7 tons fl.S metric tons) of -nftrog~n ox1d~. emiss~on_st wit~ qnlY, ·n,iinor emissions of other po l·lutants·.. -Po 1-lutant~. would :,be emttt~d. fran both ·~ms ho re and. offshore loc;at,ions .duri(19 flowlin' ,f nstal lation.

Gas processing e11issio.ns.~. would qepefld ,!)n ~\1e }~unt .o(. ga.~ found. However. based on a maximu11 level 1 lkely 1to be r.e1:overed (30.· m.1.l110n cubic .t:eet :(~49,ooo cub;~ m~ters) per :d~yJ, ,n .. 1troijen. oxiqfi ~mfs~Wr(s. wquld be 21 .. 2 .tons (24·.7 metric tons)1 on an annual basis •. Other gas processing. emissions ~o.ul,d; influde 6!9 tons\ (6.'3. ·~#ic tons) of. ~o~al l~y~rocarcor)s ,.'~nd 1.7 tons .{l.5 me~r:i c tons·). of. :c~r~'Jn: mgok~ldq.. Pr,ot!ess,1 fl9~ of,· 'the ,'.9~~ .;,;Rul.~·'n.ot ·rcsu lt ·in si gn1 ff cant .quan~1t1~s of ,·SJ:IJ.fur o~f des or~ .. ~9t~1 ·s4spen.ded particui~tes·. Emfssfor.~~ from· gas ,pr.o.c.ess.ing;.;a_t. t~e ~o IY!i 11,ign. <;~bic Jeet. '(8.4,9,609 cubic ~t.er,s·) pe~ ~ay. l~yel as~~~s th~ ~P~~~tion ~f: ~~.o: i:~~al1~:1~. :¢91werters on CO!J!pressor engines· ~t th.e ;p_r'.o.c~s~in.9 _ P..lant, '!"hi.ch,, '?hJll ips· ,~r;oposes .. as a

, mH1gatiu!1 m~as.ure.~- C~~aly~k ~cfrw~r.t'!f:~ woul9 r~s~lt 1n. ~: 9Q pr,tcent. re.~_uc­tfon in .nitrog~n· .9xide lev.el:~--·~fld an ~ao. percent. 4ecr.e~se in. c.~.cbon monoxide. .emhsions from. th~ COIJlPl'.'ess.o.r~.

. I·t is 11at expeGt.ed that any_ adv~r.se. irn~ac~~ ~n tlinhi ent. air qual·i ty -wool d· ,.esult from either flO'ltline in:rtal'lation or i;as processing. In fact, there

.would be a decreasa in existing nitr!)gen oxide and carbon .mono:dae levers from the Tajiguas Gas Proc;essing Plant if the prcpo~ed cat.alytic converters are installed. ·

,9omputer ~imul9tio~ •f11od~Jing h~~ indJc:lt~d tnat r)ia:dmµ111 of.f~~ore ~xplor­·~tor.>: 9r-i.J Hi:ig .Pr.o.ject .. emi.ss.iQ.'1~ .. wqt!.14 result .. i11 .\~ maximum hQurJy increment ~n oh~hore :~ll)bie.nt. ,polluHnt leY.!!ls qf po m1crogram~/cubiC, 111~ter ( µg/m3) for.ni~ro,geh diq~ide .•. Cc.-np~ri.ng the. ~~~t·t? hC?urly; .s~an9ar:d for nitrogen. dioxj.de_·of. 47.9 -µ9/i1iJ. tq t~e ·higr~s; r:~.cori.d.~d ons~qr:e l~y~J (300 µg/m3), and·. th~ .es~: i1t1at~d .. projec;; i nsr.em~nt~' Jl'l 0 Iµ g/mlJL ~oe~ 'ni>;, 'indicate ~hat a:N.jo.l~t1on1. of' ~he s.h.ort".'term st~nd~fd ·~~41~. ~~~ur:. Shor:~~tenn proJect 1 nc;:r.~rp,e?tS !~Or t~t~ l hydr,o~a f~Ons· . an~· s u.lf~tr di O~ i de ~~-e. ~O~. ~xpe~ted -~O result tn" ~11olat10ns of state tor fedi::t:al standards· •.. ~hrle ·tne rncrease 1n ambient hou'rly «:a'rbon monoxfde 'fevels ,woold ·j)~'· rela'theiy small (23 µg/m~):, sou~hern Sa.ht'\ ~arb~r~ .~qufltY i~ jn .nop,a_;t!li.nm~nt st~.~µ~ °"ith respect to t!l•~­.c~rbory mgnQ~fq~ ~tandard •. Th4s, .arjy cid~i,.tional ~ncr~~se. in 7~rbon monoxid~; lev~~s c;qu11~ c~use .. a s,1.ig~~ de~~rior~qon _i'l _~xis~i~g. ~o.ndit1o~s .• " Similarly,

. pqr;t1ons o,f Santa ·~arb~.r~: Cou,nty a.re r)~t in, ,attainf!l~nt or th.~ state total su~p~nd,ed ~P!~r~iculat~ stai:i~.ar~_;, "thus.~ _pr'.oj.~ct incr'.e1~e'!l.t~ wotil~ ~tso Sti!]ht-ly exacerba !te this condition.

The ta1·9_est long-term (annual) modeled pollutant· ·increment was for ·nitrog~11 di1>xide an9 cor,r.e~por).~!!'1 to 2.~ u~/m~ at th~ -11earest onshore area. L~ng-~E:rl.'l p;·oject jncr.elii1?11ts for tpt~l. ny:Jrocar~Or)S,. ~uHu_r di9.:<ide, carbon m;onox.1de, a11d total suspendeq ,_articutatt!s ~r~. all e~pec~ed· to be much l~ss1

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than o•:r: u!}/mj per year;. Thus, ·wnile ·~here woi..tld"be.n~ .. violadons of apy, standards 'for p'ollut·anr:s for whfr.h the, .area already is 1n· an ·attafnment !of ~ppli~.able sr.anrfards', any _in~reases fn linblP.nt lavels of ~hOse. pollut~.nts already --cxceeoing standards ;{ozone; carbon monoxide, ·total. su.spended pa1~tf­culates) would further·e~acerbate existi~g conditions.

'Phi11ips propcses·to·'mitigate project ·air·quality. impacts by 'insta.:l'l'filg catalyt fC converters, on· .na't~ral gas•ffred ·compressor engf nes a~ 't.he T.a~)tguas Gas ?rocess fng Plant·. Project emi ssion·s· fran. the exploratory projer-' itself are such that under existing· County APCD regulatio·ns, air ponuti~1t offsets for nitrog~n o~jdes apparently would be required. Exploratory c!ctfvities would emit. an estimated; 58'.8 toil.s (53.4 metric. tons):· .of. nitroger oxides. per· quarter wh.i~h. ~ased ~n ~he '$anta·:a'ar~ara ·Air .Pollution C9ntrr.il dtstrict's '1 •. 2;1.0· trade-off ratiO, would 'indicate· ttiat 70.6· tori~ •(64.:t: ·metri'c tons) ·of ·nitrogen .oldl:fes p~r·quar~er would:have··tlJ 'oe pffset. Oj:ier.l.(tfon of cataly­tic converters on ·gas compressor·engfnes would result iir a 90;;rre·rcent reduction .

. '. in nitrogen oxi'de 'leveh· at the itirne' of fos'tal'la-ffo"ri, ·Which' translates· into ",{:' ., "··: ' 'I ~o.9 tons• (28.:l :·~~tr'i~ t'ons-)' of1 offset' "cre11its-"' per;•q9arter:.. 'Such emiSS·ion

;. o 0 , , ~ ~.<'" ·· r~uct'ions wf!!Hd ·not ~e suff.fci ent "to ·comp-letely1 .o·ffset :the· exploratory ~ ,,, · o <:-~.: · .iJrojec.t einissi6n~ duriri.9 the 'time· of drilling;· how·ever; ie ... rfo·ugh reductions ,.. . · '· •'" could be obtained· "Jy contfriuirig ·ope'rat:fo~· .o.f :the• convert'e'rs afte'r- ex5)loration

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has ended;.· The total .lmount ·of p'roje«:.t .. n f ~rogen" aid <1e ·emi ssi ans: to 'be offset ca·nn'ot be c1etenni ned s iOce the qtiantit-i es· of gas· that win be fc>Und cannot be detenni ned at this time. ffoaH.y~ 1Phi 11 ips,.proposes to ·continue opP.rati ng

:the catalytic converters•. at a certain~ as yet unknown. nitrogen oxide rernova.1 effiCiency, in order to ~ain banked .emission credits for' possibfo future; :Prbjec~s. · ·

3. Oceanograph.J. .. ...

Pie impact of t?xpioratory drilling on current~ and tidJ~S· fn the project ·ar!'?~ would be limite"d to ~,negligible· incre~se in 'loca·l t·urbulence. Wave ac~i'vity ~cu lg not be impai;ted! alfhol1gh· high waves arid' wind:; associated with s.~V.~.re local stohifs· could' hamper drilling ·operat.fons. The discharge of dri.1 li·ng 'r.1Ud:i, dril I cuttings. treated ·Sewage arid· cooHrig water would be expect~d to have a rieglJ:{rlple iinpa~t on; the temperature, salinfty .rnol density of a,~bi~nt seawater. {iripact,s ·on nutrient and"d~·~solveJ:·oxygen·qevel\5 should b'e miho;-. Rapid dilutJon Of 'heavy :net-a·l's and other chemical' p6Jllutailt!.. frcm dis,c:ho~C:ed liquid materials ·woulditie ~xp:eded. Thes~ dischafl}es woti\ld have m{h.iin~·} ·1?.pac~· o:i s~aw~~er ·t·r~ri~p~rericy· at 'the· drHf ~ites. . , .

The:·.effects of mud ar:id cuttings ·i:fi1scha·rges would be mitigated in large par~ PY' adherenc~ ·to ·NPDES l'ifllit4t'.ion~ and' prohibifions~ Water c.1larity ·impacts 'could ·be ''llitigat·ed by discharginc] mud an'1 cJttings continuously dur.ing drHtrn~~."thu~. avb'l'dit!g· large ·yo'iume s:1u·g d~·schdrge· .and· by reducing the '?1 evatfon of :the discharge point to' a~ near· the sea floor ·as poss'jb le.

4. Wa~~r Q~~li~l

Discharge or dri'ltlng muds and dri11'1 cuttings would .not 'be' expected' ~o rt!$1fl.t in si9ni'ficl:1~ lops-~~rm elevations· in the c.:oncentrat·ions of tr.ice a metals or hydroc.arbons. Sl'g'riificant chan·ges· in transpa·rency, dissol'.~~d ••

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OXY9!!':1, ~onduc,t f vi ';y, p~ or ~el!1p~ra.ture wou 1 d n~~ b'! ~xp~ct,e<!•, Any mi n9r iiripacts would be lobted c!ose· to d,1scharge poin~s an~ woui'9 t>P. 'temporary rn nature. Any tnennal a1schug~·s wout'd oe expected to rapidl'y' cool to ac:tbient tP.mperature. The discharga of treated sewage could result in a ~inor increase in o~yg'e~ a.erti~nd. riutherit's, r~~id~aJ ·~~10.rin~ an~· H~~~"itten~.~tr~n; however, any such effects wculd be 'hi'gni)' 'localized ana. t~mpo,.ary in· irature. Th~ above ·impact's' coul"d be el ;;n·1n.ai:ed al together w1 tfi the dfSP.o~al oi .all project muds· and· cuttings onshore .• TbiS .'ci,ispo~aL h.ow~v1!'r, wou'i'd 'en~~fl ·additional 9~h~r ·s.rrii (fc~nt' . c.os'ts· ·a~~ P.ot~ntf~t · i~pac~s (e·.g •. afr' ·~~~·~_sions fr~ ~ru~ks·) fnvolved 1n 'the tr~.n~por.t and. h;tn.dlin!:J of the mat~rtals, and 1n ~heir disposal at ·an approye~ ori~n.o'r~.· ~fti!. '

·rh~ n;iost serious po~~!l~i ap'y adyerse impact _qn wate·r .~uaJity would cone in the un'likelv· event' of :a inajor· oil spill. OH spills could cause a 't~por.ary. de4r~ase ·f11 bxyge·~.'C:on~~n.~r~tiori,s fr( 'th~ s4.rfac,e w~~~fs:;· an jnerease i~"9~R~ ·«l'~~. t_oxi~ c;onH>:?'.n~n~~·:~~-4J~: aJ~o· .b( M~-~~t.~d~. T~e j~e.1~~~nta~i.o.i:t Qf f~~~ral.. ~t~~~~ ~nd·. oq". <;?1,lpa·n~, SP.Hl c_9n;a1n!ll~nt.· .~n~· ~t~~Q.4P, procedures

·shout·d ini~i~·ate wat~~ q~al'~.~¥ 1i"!P~~~~.t. ~tre .. ~r.t~fl.~ ~q '..~h.is~·"'wouJ.'d.' depend ~n the prev~1hng oceanograph1c. and rn~teorolog1cal cond1t1ons.o: Care. must bl! taken i~ the use Of Chemical' disp~rS-l!ltS for SP,,ilJ~.d. on-~~ avoio impacts ·abnye lnd beyond those related to any actual oi 1 spil-lage.- ·'

5!: .'BiolooY

... Bio~.ob,g.ai ~ijipa~~~. 'f_ro/- ;~h~ PtPP?.~·~'d; pro~~~~ ·c,a·n. ~e ~:~~P~rate~ into tht?~~. H~·nrrnn~,,frQm.eq1;1im.1~nt and il.~t,1.y1~r~s q~sr:c1't1t.~c1 'iit~b. r(l•1t1ne d::-:fl.ling· o~~ra~;ons.,, i n~ly~i ng di s.~hcirg~~· pf -~~.ste l'l!at~ri~l, ~n9 th~~e· qti(! to a cata~

.sVpphfc', a']tho4gh ur\liRel:Y, ev~/it.'sl!.~h 4s a w~1l,'bl.olo(Cj~~ or.on spill. The ··m.cist' dii'~ct impa~~ from ,rpijti n~ RPe~ati.qns· wou 1 ~ ~.~ ffQlll': tn~ t~(!tpofary crush .. 'fn9,,,.,04r}'jng' or di.Spl~~fri,9, 'of '!>eri~l)fc"org~,njsrqs fri .. ~he fohne~iat~ ~icinity \1f t'h¢ 9ril 1 i ng $ i ~e~·. · oJ~po~~l ,Of ·~'r,il 1 .;~t;inss. <!'rid :~~~s :~qu;r~f temporarily 'impa'ct organ·iSrns in the water col.umri and"berlthos. Impacts wo•Jld· be primarily from· buri ~,.!, • ·1 OS s :of hab i tai: . or i'11creased s'eCii n\eiita t'i ;,~~ an1{ t_4rqidi ty. Any mi nor impacts from tra_£:e meta ls contained in drtl ling· muds woulO be temporary anq hig~)Y losaHzed l,':, ,nat~r~~ Qrillin'J. opera~iRris, 'l{01!1d, be expected to h~y~«Jftt·le. ~ff~~~ ori l~F~tt"i~~l' .. co~u,M7i·~~ ~.ndj~~µH, .t;r1 :qfi,qp~ impacts to f i_'~h 9.r man n~ ~~ fd~ ": .. ~QIJI'(!. ma.ri.ne !!1~.m.m.a.l s m1 ·g~.t ~ ~ ~~L th~ 1 "."mi.~~~~ory. r?utes a~ a r~s.,ul,t qf the .ei<pJqra~ory a·ct.i,'~11.P.~s·~ l<elp 9,e~s. 1~ th~ p_rPJ~Ct v1c1nity m.ax ·be tein?9r~ri1~ imp~~~~d , by t.ne i·ns,ta·1 ta~ion or -~tie. ·fl'f>wlfhe bundle •

'Wh q ~ ~h~ 'pf0b'abi'.1i ~Y 9{ f cat~~'tr·qpfri1~ ~!=¢Hien~{ su~h. ~~ an oil spil 1 occurring duril)g Offshore"'exP,loratorY. ,act'lvi.t'i'es·.may' be 161N, significant and ·~fciespread: impacts' air biotic' canrl\6rli'i:fe~. ~o\il.~ r~s-~fr~ Th~ ~x~ent of such iropacts, howaver, cannot be predicted because' 6f ~he ·many va~iables that

.. come into· play. 5essile {non-moblle) in~ert.idal and' sut?ti9~1 orga'nisrns, and diving marine ·birds would be the most susceptible to ·.aam·agc,. Recovery to. bi,o.ti~ c_cin_mu~iti~s. fr?l!1. a rntqqr 1~p ~p,ill _co~l.1 ta~~·-~p ~o a ~umber of years. Shaul~ f'l.qa,ting 0.11 reach: tb!! Cli~nnel Islan,~s. p1nn1pe9 {se~ls .• sea lillns) b'reedfci<j pcµu'lations c6J1d b!e. impacted. !n aadfriOn, unigue biological camnunitieS' .Jf ·th'e channel' islanas and al orig tile· ·mainland: coas.tli.1e also could.stiffer ·11ann; R~re 'or· :e'rida'ngered ·sped es potential!{ impactei:1 iin the

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ever.t .of a r.naJor oil soil] a·ce the Ca11farn·ta b.rown pelfcan, California· least tern 'hd t~e Gu•dalu~~ fuf ~eal.

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. I111par,;t s to !>i o~a f,rqrt dr f i ~fog. ~per,~t.i an muds. an~ c~t.(i}igs d f scharges could be: minimized by di :;cha·rgi ng ,th es~ materi a 1 s from 3 -po1 nt as close as pos;ible to the seafloor,. ·thus "reducing the di~cllar:ge 3nd settling area. 'PhflJips. will not use a chr~·ium ~a:fed dr1Jlfl'9 ;iiud,, .~ller~bf /",educing any ,potential impacts from trace mE:t,als cont~ined in drjl.ling muds~ Jn addition, ~C?~.icit,y data on th~ propos~.d driJ 1 i ng'. mu~. wf L1 be s~l:.11i~ted_ p~r Rf.gional Water Quality Con,trol Board R~uii'~menH· Bioassay testi'19. ifjt,h1n the dis­charge plume may be required by tlfo aoard at a 'future date. Pott!ntiar aban-.~onmen.~ of migrat9ry _route~ r:>f tne gray ~~ale ~ould be mitigated by .Jimited drft ling actiV'itie~ to mont!is when 'rlhiiJ:~s. ·3re !lOt, mi,gra~ing. ·Teinporary i~p~tts tn ~h~ telp b,d· ~qutd: ~· ~fpimi~e~ th~q~gh. pipeline ~urVeillance and 1\'veling of any mud mounds. .Tne 111i.tigation .of impacts due :to, .a• catastrophiC of': ·.sp.i-ll i~ a fupc~ior\ .o(a~ eff~ec,t.t.vf oi'.l .. spi,Jl .'conting~Jicy. P,rogram; in­cluding methods for pre•1ention and r:apid and. thor.ough "cleanup. ·Careful us·e i)f chemi'cal disper:sants would"6e warranted. . . . , , ... ' < I I ' '• " 't'

6. s'oci oe'Corionii d·

The P.roposed proje:ct would generate .a maximum of ro~ghly- 125 jobsA assuming sequen~ial drHli'lg of all proposed· wP.lls and flowli'ne 'ihstallatiorj ,by Phil li?S• No signif:jq11~ f11Jp"c~ .. s c.n Santa. BarbJra County ;Jopul'at1on llr A ~i:iiP,l'qyrnµnt .lf'~ ,a tip d'oat'~d: ~o~~. qH 1 H,,9 c;rcw ~-n~ subcqnJrllctor jobs wii',1' W onginaiP. fr9n out.~irlP. thP. ·r.ount.y;. ::i~ny .;or~e.rs are presel)tl,Y in similar )o~~ (and t.n.~refor:e. no_;,~;~ ~~Rloyq1~n~ 1-i'.~u;ld .. 9e i'f.Pr.e.seflted. ~X .. prpject jobs);_ ~n~ al 1 PfOJ~Ct empl9yment '-:fO':Jl~ o~ tempqr~ry • f9r tn~ ,per10q .. of explor-atoty dril, 1io9 afld/.qr ;flo~l'iH~ install'atio,~ onty (or. snqrtet'),. Housing impa~ts wou.t9 n~>'t b~. e~peded ~ci be signif\c.ir'it. Loeal pay,ro1)t spending, togetp~r "'(ith local sp.P.ni:fin.g for' mar:~rials ~nd equipmeri~, ·.\o!O!J,.!d generate

. ~9m~ t.amporary inc:firt?ct; empToyriient. Howe·ier, tHis also i's exP.e.~ted ·to be ins i gi fi can~.

sor.:e temporary 1riinor SP.ace use c.cMfl'i<:ts. with comrrierdal and sport· ff~ofn,g ac~h<tti~~- \'19.~1~· r.tjslitt' fr<j!~ dri11;ing ~·~~iviqes; .~p~f:o:m trawl and :Piir~e .~ei,~e fis~~rm~it lo!'?ulcf n~·1~ t'o, teip~(?rar,ily ~~v9it.1 t.he imnu~ldt~te area of -~~~ ~r.1111119 1;mlts and iJ~e.1111~ne"~ly :lvo1~ :tf1~ fr~ia. ~round the .!•l!~sea conple­tiors. A i?lajur oil sj>iTl, alt'hough consider~~ unHA:ely, ~oil'ld prec,ude spill area fishing actj 11it.ies rqr a Pet;'ipd o.f tf,m~. No signifkant \impacts o'ri recre11ti'ona\· acfiv.ities ·are antfrJpated frt\m normal OfJC?ration~; An of! sp ii 1 ~ hcw~ver, _cqui d . if9~~'fs~·ly ·~Hect'. 1 oca'i'1 c9asta I .lnfl ·m~'rihe recre-a,t ion f~H:. a p,rioc:f of ~iin~~ · · ·

7. Land __ tise

'Onshore. activities, ar~ Jntj~ipJted in .. th'e pr9N,~t .irea at Sarita Barbac-J .Ai~po~t {heJ~~ppter 'transpl1rt.~f, ·pe.r.Son,nel to .. ~he "drillln_g .ufi.it) an.d at Ph1l.J1ps' TaJ19uas G.1s. Pru..:l!S:il(lg Plant .(flowl1,ne •1nstJlJH1on. stagfng). Th.es~ f~ciJi~:es can· a~coor.-o1.iat~ §~~)ec~ n~e~s witho~t'. ~.OqificHion. "Mater-1als and tNUltJli~nt wi 11· be sta~cd fron Port "'~eneme, wr~1~C~ currently/ has the e needed facilities in place. ·

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The proposed d.rfll.lrig fl01Jline. installati.ori .~r.~· prodyctf~ri ·.sctf'IHies ~~~ ge~~ra11y consistent w1th the polici~s of ~he ·santa Bar~ara total C~astal PrO(jram. (LCP) a.n~· t.ne ~oast~I A~t. ·Project ·4ct1vi'ti.es are ~JS~i' .-consist'~nt with the Draft County Coastal ;zo1:1fng,'.Ordlnance·. Stagfng areas t.o ·.be"µtil fzed are' penni tted in· MCO on;~rl cts "(Co'astaJ: o·~pe}1dent 'Indus~ry). Normal· ouera­ti9ns ate not . .!xpected to impact the C.h'annel Islands Nat·fgncil M~numeM; no imP,_aC:t~ are exo~cted ·on a·grfcuitural) areas in the . G~Vi.ota cr;>.~sta1 ·~one.

·No si gnHii:ant a.esthet le. ·~1:1pacts wiJul d be expected ·froit 1:1orma 1 .pro~\ect operat:lonli: Project activities·. '"'Ou l d be. v'i s'f6"l e . f r6in 'heach"·areas and U.S. l~l ~et.ween El Capitan Sta~.~ ~~~.~~ ard G4vi ot.a s;~te ~\!~ch. Howe,y~r, proj'ect nsua1:l ·.i rnpact s wou 1 d be temporary.;- drilling act i vit f t}S and ,mt1ch of the · f.l ow-1 i ne :installation activities would be occurring in the distance when viewed tre:ii 1shore· ar.d ~oul d' appear. quit~ sm~H · 1 p' sea 1 f!•: ' . " . '

·a:. ~~.t ~_1frat· ~A~c.~aeo~ o9.i ~ an~: ·H~st~~f~)' Res?~rc.~:s

Al~h9ugn sever~l m~rin~ ~rchaeologfc~l' shes and sbipwred:s are raported j ry the g~nera'l prtjjec~ vi.ci ~i ~y •.·~: re.~i ~~ of_Rroj~~t ~.~oP.~Y:s i cat d~;a i ndi cat ed. n~:-c~qtur~l .res,ou~ces fn ·,~.h.~.a~~lli11g. areas ·;!i~; ,could. be i?)(pected to be impa1~t ea ~Y pro.J~ct f mp,? ein~.llt.a t {011 ~ · ·

A portion of t:~.e onshore area where the proposed gas ·i1owlines would come: ashore and then enter: Ph,illips' existi'ng Tajiguas .Gas ?,recessing. Plant, 'contafos a· r'einnant of a: Chumash N;itive 'Amer·~ca·ri a'rC:fraeoYogical site. Test exc~ 1/at icins condti~'t !?d ~j· ;!1~. Pro4e,~~ i\r·c~~eo l'~~J s't ;,.·Qi• •. ~ ~ , '!Ja.r_y .stick el , in February 1982 found no major cu?':ural features ·'>r bur1als. In terms of ·artifactual· da't-a. onl'y a fe\.i udlized flakes, some debfra'.9e~'sofue'ochre and ';w9 P<?~·~1b1~ _ma.no ,rr~9men~s .;~er~:.~~q'Jn~; t:he· :r~~ri~1 ~~mA1:~:s. ·or ~b-~ne and ~he·11 also were qu1te meage~r. The. cultµral deoos·1t was. ·q1.p,t~; ~hat low and inajor 'i'ritrli~ive elements ('g.l~~s, inetaJ, leather, 1n9p~rn raunal rem;iins,, etc.) :11~re ·found'. The erit f re· ·qepos 1.t ha~ been: ~~vere I.Yi 9i sfor.b'ed, mos.t probub ly 'by mod<?rn construct ion activities ·associated witn· the gas proc·esiiing plant and

, .~aqr9ad. line •. The qu~n~i~1 a.ng lo~~ti~n. qf thq ~.i!~a r~SC?'-!rrr~d, and the fact ;hat ~oH of ·~he cul~~rai dilt~, wer~ .~1 th1~ ·~h~ tpP,' :~wo l~vels. of the test units SiJ'ggest that· fhe deposit· investigated 19a}" be· :Native Am'eric.lri data .that w·H"g~siled off . die m.,ri ri seablµ'ff duHflg mb<Jehi cqnslruc~ i o~ ·and .. redeposited gb·~hp ~l~pe b'elo~. ·· · ·

·Gfveo the resu'lts of' the ·tes·t phase excavat.ion ('1 ittl'e" data 'i(l terms of 'both quantity and var'iety,, 1he~vy' s1t'e·:dist~~h.anc~,' lack of v~ri'~t>U.ity between 't'he. two fo~'t' exca\i~~·ion u'nits')'. fµrtfl~r rrii t,iga,'tion of the on~hott? site area rs not warranted. However, actual flowli'ht! construction shculd::be'mon'itored

:by a qua 1 if i e'd -a rchaeo.1 ogiSt and '~ia tf\'e A111e rl c~ri"!llon.(tor sd"that cons tr~ctfon could be halted :to p~rmit evaTuatidn· of any ·curtural res'c)urces· mat·erial that mi~ht be discovered unexpectedly.

9. Marine TrafJ.11: arid Navi-:Jtfon ~-... ' ..

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The ootential 1:for a'i:Cidt?nts involvf ng the drtHf nlJ vessels and commercial vessels is- consiC1e'red ext:renit?ly. low, primarily bec.:iuse the closest of the proposed well sites (and pipelines} is roughly seven miles (li.J kilometers) ..

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north of the Santa Barbara Vessel Traffic Sapu11tion Scheme (VTSS). Ris~s . to fe<;rcatiOf!-3,1 a.t).4 fis~i~.g !llSc;> W!)U\d ~P. lo~: because.~etr.qleum acti'litie.Y,; P,.)~tf()nn~ are <:0011.r.;>n '" .~he .. ~ant~ B:aroara; .. ~t,1.rnoel, .nsh!!rmen/recreational boaters are accustomed to their j)reserice. Further., ~he propos!!d exploratory 'S'ftes are. wel.1 removed ('roughly ·26 mt 1les' or 41 ki l'an~ters) frOn the recrea­tj9n/fi sh tng .harbor .a. t ~a·nta B.~r~.r~. ~up.port ve~ ~e 15: '( tug~o~h. and supply ~Oats) co,nceiv~.~ly !=O~l.d .P.O~e ~Onie h~.z,~r~ tc;> (lsherme(tfrefr:a~1qnal boaters~

.However, the presence ·of :pr.eject .vesse.ls w9uld opt s19n1f1ca(tt,ly alter the present mix.of vesse'ts presently utiliz"tng t'he Santti Barbara Channel. Speci­fic mitigation measures, that could further tP.duce project risks are primarily ·1~ the fOnii of adyanc;e nodce and' warnings to' vessel p"pera·~ors •.

io. OilSpills.Proj~ctions and Cdntiriaency.PlMs and.Gas AcCidents

The probability pf a maj,or oil s,pifr .as. ·a r.e~uJt of the propo~ed. acti~ vities appears to be ~x~remel"y sm~ll. H~wever, dS the proposed, project would add to the .P,e.t,i··91~~m-reli!t.~q activitie~ .in· th,~. ·~anca.,~~rbara Channel·, the overall risk ·cff ·ciH; ·sjiillS in· the .. Channi?l ~ciuld"bP. sligntly increased. C~nsidering oce~Jtograp~ic ang~·1J1ete.orol9gica.1 fa,1t~qrs,. an .oil spill' in 'the PfOject dre~. ~<?U]d' 11,~i!l.Y ~~k.(.ci laQ9f~l r. between G'avi.9ta: .. a.ng, Government Poin~. If we~~er1y, ·wt.Ms .Pre•ic:nl~q, a lan#al 1 .. 9n ~he Cn~nnel I.stands would· be un ljkeiy. Ourfrig· a pfotr·ac:te~ i ri~.~r.va.~ ,("e.g.~, .~hree to Ji,ve days) of easter~y winds, an oi 1 spi 11 coul'd' reach tne no'rthwest shore o{ San Mi gue 1 Isldnd. ·

Tn ~odi tici~ t.o t'f.rl~r"l (e.g1, ~ U".$. Ci;>~st G~~r.d}, -!nd s~~~e. oil spiJ 1 response ~ap~~iHti.~s/~ontiogeM,j ~Jans, Ph.iilips has dev,eloµ,,ed oil spill c~ntirigency pl'a(ls far the P,roposed project,. T'1¢se .plans. ar.~ designed to. provide co~?~i:tY e.mp:loYe.ef ~itn pro~.~aures, f9r re~pc;mding .t.o .aij oil spill (.i~~··· in.i(1 . .ir abli~~~en~ of .P,~):1.utJ.q~; ~o~ifj.~ati<?n of 9c?vern~.~1Jt agencies

. th~t.il sp111 has ~cc;~r.r~~ a)1(!. co9~d1nat10n .'tfttJ:i fe,da.~~1 i?n~ ~t~~e response team.s; and spilt co.nt.ainment.,and c'le~nup). Spill control equ1p1J1.ent wil'l be avaq~t>1e on.~he p:ril.fln,g .. v~ss~l~ T~~ spin res;io"~e.~quiprneni:.·~n~ resources qf contractor~ s4~h <1S ·,Cle~n $e<1s, also wO 1 ,~~ ava1l~ble.

'Phillips. aJ so .~as .dev.ei o·ped· cont i rig~ncy proce.94re~ in the .event of an ~sc~ dental. r~J ~~s.17 of .9~ s.. .~.as. r~J e~s.es .(~iid ~.e~p9nse"pr:oc~,d~~~~J occurr~ ng dur.Ht9 ~r 1 l1 pt9. .c;iper,~t ions .~"~ ,during pr<?~!J~~.1 on are ~~dr~ss.~.~. Du r1 ng dril Ung the procedures inv·olve shutting-in· :he wel I us-1n9 state:--Of-the-art safety equipment as prescribed in State Lands Commission Dril Mng R~gulations. ~otifi,ca~ion pf ~.tjpµlilte~ e.m~r:gef!CY :P~.r~onnel fol lows .a pcqc~dure, ~imilar to. ttiat for a· large· oil so,iJl. Gejieratlv., .. a gas r,elease would be ionited at the w.~ ~er .surf ace~ . we.f 1"'cof!~ai1Jrit.en~ proce~.~res 'wou.t'd de~~nci qn. ~he . specific si.tualiJn aiu~ ~9uld i.n~lu~~ i1ll9w1n,g n.~tur::a_l,,process2s .~~ ~ra~er. :~Qd seal the w.e11;, ,capping,~hf? w.ell '.>"t~ii s~q~~r-face equipf!lent .. ~r dr1Mi~g ~ •f?lief we'il

. aM Pl!mpi ng mud· .into: ~he . .r~s~.rv9i.r ,io'lP.• . :

9uri ng prod1:1ct ion, prccedu res i or dea 1'i ng with a production t'1 owli ne leak or J leak within the· T.1Jiguas ~~~ Proce~sii'ng Plant consis~,of jnspec~ion, notific.Hion, b11~.eding lines to the·vapor·re·covery system-and·stack, and.·.s"hut-ttn~ .in the P,t.rn~~

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D. AL TEIWI\ TI VE S T!) l'Hf PROPOSED PROJECT , ' ,, ., .. ,, ,,,, ······ ~--

Alternatives to the project actlvlties as proposed include denial or abandonment of ·the proposed·. project ("No Project"), delay q( .the ;>roposed activit·ies, w.odHkation of proposed <Jrffling:n\ethOds/.!ocations, ·and/or modi·­f;jcati6n of the ·propo?~d flowlfne ·inst.il lat_ion inetho~~/Jocations.

A cfaci 'iion to ab_andon ·or deny ·the propo~al.(-s) would (lle.3n 't.hat none of tlile ·env:ronmen'tal impacts describe<1 lrt tflis doc_ument wquld occur. The area .w1Julc, cllntinue to be .!lffed;ed tiy al I ·on9ojn9 nat:Jral processt!s and hum.4r. ,activities. ·Also, the eva·1uation' ii( r.h~ po~~nti~l hydroc;ar~on· resources of t1he- ·p·roject ar~a would• not occur. De f~r.-ri ng--actlo'n on the· prop9~e4 dril 1i ng 'pr<'gra::i··wou'hf uierel'..Y dday, a!?d·r.ot mft 119at~, a'J: p,rqject ir.ipact*·'bo.th pns'itive and-negat.ive unless si91tft'icaftt techn1Jlodii::1'l cha'!ges oi:curred·in ~he interim.

Selecting' altern·a~ti'le drilling 'locations· W,itliin_th~ $ubject Jease .tr.~cts­woula n~t suQshntiafJy alter project impact·s, unless· ·partkh1ar dr.i11ing sita-specifk impacts were to ~e avotded. Howe'ter, the particular drilling ·-sites .proposediwere ·:»elected ·on th'e• bas:i's qf sophisl:i'cat~d analyses, as offering -~~f! b.est pr.us f:!ects ·for· ·succe.s.H,u 11 ·~xpil·crat icin", ·arid ~;,~ lY.~~s .conducte'd· for 1t~i s _ ElR· "1~ve ·not r~ve·a ~ ed· an,t :~,! gn.i fl~an·~ f mcact tM~ could be- avoided ~Y :·emp loyfng· a'lter~a ti-ve sites·. ·

·i .odii?fng ;fran ri~arby· f~deral or ·s'tat'e lea:;e t,racts cqtild 11ot ·reach most

iof· t!ie ·part-icular hicat·idns· targetP.'d ·fof. exploratfci.n. Al'so, Phillips doies not have 'the right S' 'to ·COJ1<1uet ·drH l i riij· '(.lpe rat i'ons 'f r~n ~tJj.i~~nt f edera 1 -or ·stafi:.! tract·s. Because of ·the hdrizc1nfal di'sfarices fro:n shore· that would .be .'.involved I and because of the dr_i 11 i i!g :lng !es that '?fOUld be: requfred, di rec-1,tional drilling foom ons~pr~j i.s iia:: c;gn~1d~.r~~ 1~ f~a.s.ible ~lternative.

Alterndtives to flowi1ne iri~~P'llatioh as proposed :could. include use of 1existing flo·,..,Jines, use of consc1!ii'dated 1=,Jowlines for some. or all of the 1prbposed wells, or se·Jectfog alternative ·rou.tes that avoid/minimize disruption 'to• ;the sea'f l'oor e1w i ronm'eiit/riP.a rs heir!~· '.~e l'p•ib(?ds-.

· ·use 01! e:ffsting flowJines wou·1-d1 t>e consid(fred ~by Phil:lips H the well !)r.es·stfre's i'f rofu. the' proposed wells>. -~ r~ ·h'ot· '.tq!) 'hi ~h. ·if the· ~~mdlt ion of the existing filowline~ are adequate ·to. pe·•'fr\it their iise· for the p'roposed uells, and if t11e1 ~ta~e·wo1.1ld grant an eicempt-i.on to the requircr.ient that new .{1~ather t~an. used'}I 1pf'pe. be .. used· fo1~1 bf f slfore w_e l\l's·. As ignHicant drawba!=k to: usn ·of conso:J:idat'ed fl'onlines is that differ.:h't•wel 1l's flow·unc:cr dHferent· pressures, and contra I f:ilig pressures .if1 i·ndi Vi'dua'l' ·we 1,,1 s i's 'b'es t acccm;>'Ji ~hed through .ihdi.v:i'dual: :fiiowlines. ·Use of a{~ern~·~i.ye flowline routes (e.9~ routing the flowline to 1avoit1 a particµlar s:ensi.,~iv~~ loca~ion) ·io1ould require use cf a· <different· i n'st.~ lt;~'t i 90 appr1oa ch tO~n pf:op:1.,~c~:· A, ··:1 at·' bai:g~. rather than a ''pul 1" barge; would Be requ_'ired. Vse '?.f ·lf1 "lay," ~ar?c would tnvolv~ ~se of a support boJt 'to ·hi:>l'd the barge iii' pO'si.t·i·orh'(i:Jusing •nore air·pollut!on); more kelP.J'di'sturb,)nce; ~oufd be in·iolved· bedu:~\.e th<? "lay" barge would have to ente.f' the k~)p z9ne, whereas 'the "pul J" -bar1?e w9uld not.

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An alter11.i!.iv1? ·to the: proposed onshore flcw\!ne fiistal lation ~tagirig area (an ~lr1?.-tl!y di!>t.•Jrt>~~. j)di·tLa,ly paved i'Ortinn of the Ta·jiguas· Gas PrqC.l!ssq19 Pl.:n~.J. wo•J_I-: bl\ fpr Phiiiip!a .to. use the sam~. sta9ing area that Shell on w·1ulc!. use ~o_r ,_a sir1lilar (0c1t~ral .gas ex?loration/produi:tion} project. in LeJse PR~ 4qz•i. l, adjac1rnt tu th~ west of Le~ne. PRC 2933.1. Shell's pr'ii"l'.ii!·! s:.•Jjl'l•J ai~'?J .muld be eith..:r at ,\rroyo_Hondv, nearly two miles (3.2 kilate~ers) west of ~tie Tajiguao; plant, .or at Gehy Oil's Gaviota facilities, whi.:h .are abcµt s-fx 111iles (9~7 ~-ilome.ters) wes~ ·9f Tajiguas. Use of t:ither cf the:ic alternativt!s "'1iJtJld:.involve floating the.pipe sect.ions d1J'f!n the c1go;t ~o T.:j.iguac;, p•~Ji.in; 'them fo: shore ,at th~ Tajigu11s facility an.d,then insta!lii:g"the line,s in a similar mdnner to r,hat prcposeci. A t.ugbodc would be requfred to float .the Hries. dqwncoast (which would invol'le additional ~ir e1pissions).; ~ddi~:ondl ~eip ~isturban<;~ c.ould be, associateq ·~ith pull.ii\y, the sectibns dshore. It al~p should be noted· th~t ~o ~rrao~ement w~uld•hl~~ ~o be wq.r~~-d ~ut between, Pti.i:l,tiP.S ;it.t<;I S,hel,1. in .oraer f,or PhiUips t.o IJSe S~eJl's ~ti~tng areas. .

. Onshore dispos.al .of ah' mud.~ ar~ cy~tings (a~ .an alternaMve to ocean ~·!scharge ?f •Jn.con~ar,ii.na~ed mµ,d~. an.d, .~utti-ngs and onshore ~i.;posal .only of o~J-.cont'~mrnated mai:~nat~-) ·'1<?4Jd· ayo1ci a1:iy. potential ass.ociat.~d,. fmpac;:,ts on b'iota/~ater quality. However, onshor~- 1q~~?gsai of all i'llUds r.and ~tidings 'ofiOUld pose potential impact's related to additional waste material transport a.n~ h~n~ling,, ~5 \lfE!ll a,S· Co_ntr-ibl:J~ing,_somewhat .t9.,e;dst-ing onshore disposal A sJte ~v?ilabf.tity/capacity pr~bleif>s.~ Thus, selecting one of these two alter- W· nJti'J,es (onshore or. off.shore.)1!iloul.d ~r,ansfer poten.tial impacts to a differ~pt 1.o~a.~jo_n and a aiffer211; inP.d(um (:11,e.,, land qr -w~ter), and not ai.oid impad:·s· ii r~oget)le r.

E. CUMULATIVE, IRREVERSIBLE. SHORT-'rERM VERSUS LONG- TERM AND.GROWTH-INDUCING I NP.ACTS

The impacts of the proposed .Phil Jips. project gcner.il ly wcu.ld be· cumula­nve ""th the icipacts. of on'g'o'fog. petr,p I e4m,.,pr.oj~c::s in the vic:inHy, as well as with the impacts Of Several othEft exploratory projects propOSEld but not yet implement$?d_ i.n: State_ Tidelarids. ~~tween Goleta and Pqint C~:inception. Jn~.~e o~her State ,Ti,q~.land~ iproje,ct~ in~J~~e exploratory ·drH,l:ing, by ARCO :~f ngil .USA,. T&.x~co, ~rijon and Sh~l 1'.-. .

/ P~il-lfps proj~ct irnp,~cJ;s aJ~o g~qer~i ly ~ould ~e cumu?~t-ive· with those of. ~?Cp,lprat9r-Y. dtiLfing1 ·P.r?jecq .in .feder.al' ~at~rs of the, San~,1· Sarbara Channel .. A substant'ial nuinber of .fe.deral tracts. have beeri leasedi or will be ~<?:ff~re{ for bid in 1upco11ling.·ou.ter· Gc1h.t·inental Shelf ~ocs) Lease. Sale No. 68 •

T,h~.;:>roposed exploratory .ci_rilj,i,ng, .activit-ies would not .i-rreversibly ~011Uni~ ~lie ared.'S· hydrocar:-.b<;>n r.esow~ces, .although ult_1mate production {if explor.a~i.on ~ere. successful,) \lfQUl~. <!o, so. ProJ,CCt -energy uses, (.i.e., fuel) a.n~ ma~erials (e.g •. , cement, muds.) wquld .be irretrievJbly co~itted.

Exploratory driiling is a short-term use of the environment. Developing data regarding the µresence of commercially recoverable hydrocarbons could be ~ cq.ns idt?rt!•J t'l affect the area's 1 ong-term productivity. Longer-term degi:-ad~.- 9' ti'on could result .from the introduction of oil <lnd other substances (e.g.

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XI

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··l·· ~ drillfng muds, cui:tingz) into the environment. No definfti'le conclu!\fons

clr'! .;te'.t POS'iible ·re'Jardir.~ the effects on loncj-te1'::1 ervi,.onmeiitdl producti .. vity of 01.l spil IS" dnd/or muds and cuttings discharges. . ,

Growth..-inducing impacts of tlie propoi;l!d. expiordtcry d:-il lfr.g ~.~tivit1P.s would not be expe1cted to ·be significant, .oecause tne project would involve very litt.le, if ;iny, population in-migration. Potential grow1:h inducement (fnd'ividual ly or •curnulacivelyj froin po'isible future proposals :for peitrole11r.i exploration/prod~1ction by Phillips, by other lessees of State Iidel~nds oil and gas l~ases, :and/or by lessees ,, federal trclcts in· the s·anta .IBarbara Channel wfl 1' be addressed in tne environmental review process spedfic tc these other· prop,psed exploratory or pro~uctio!I projects.

F. UNP.V(l lDMLE ,/.~DVERSE IMPACTS

1 .. Earthquake-telated geologic processes cdnceivably could expo~~ p~opJe.arid str•Jctures 1to geologic hazards. Seiectfpn 'Of app;opri;ite dritling. equip-· ment, propet engineering aesign of production facilities, aria adherence to applicatl'le regulations and st.indar~ inaustry practices shou:·ld mittgate thi~ potenf fal impact.

2. Project discharges of drfllfng muds and cuttings, treated 1sewage and cooling water would ~ave a minor, localized and temporary impa~t on water quality, cht!mical oceanography. and inarine biota. Onsh.ore di.1sposal of muds and cuttings wou~d mitigate impacts in the vicinity of th~ drilling sites. b•Jt \'fOu!~ $~~!:tit:.::e imp<:::ts ·associated with al1dit:ional itransport and handlin~, a:id onshore disposal of these jnai:eri~ls. · Other m'itigation measur\15 woul~ include adherence to NPOES requirements, dischargjng muds and c~t:"tings continuously dlJring drilling a11d, using a dischar~1e poi11~ that l~.1 as near as.'possible to· the sea floor. '

3. A major oil spill, although ·very unlikely, w1?ulc! ad·1ersely affec.~ water quality, :narine biota, marine and co.1stal fishing and recreationa:,\ acti­vities, and the aesthetics of the coastal ar~us ii1 the project vi~;inity.

'G.arer':.11 adherence to' applicable regulations, pr.,ooer equipment >'design a~d operation, adequate personnel training, dnd effective f~plementaticn of' spil 1 containment and contingency procedures wou.ld both decrease the IJke 1 i hood of a sp i 11 occurring and mi ti ga ti? the effects. of oi 1 sp i r l's if they did occur. tt shouh.I be r.ot:ed, howe·Ju, that cc;~piete protec:fon 9f the marine environment from hydrocarbon contamin~tion is not possible.

4., The offshore drilling and flowline installation activ.itiies would have a minor and temp9ruy effect on the .visual aesthetics of the project vicin,· ity, in onshore locaticr.s from which the project acttvities ·would be visible.

5. The proposed activities unavoidably will consume substantial amunts of fuel to power the dril I in9 units, support vessels, etc. However,· the pot~nt ial. for discovery of additional hydrocarbon resources can be con­sidered to mitigate this impact.

XII ...