A1-1

Appendix for Chapter 1

Appendix for Chapter 1

Table of Contents

Appendix 1.1. Leasing, Deferral, and Litigation History of the Pacific OCS Region ........................................... A1-3

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History ................................................ A1-8

Appendix 1.3 History of State of California Offshore Oil and Gas Development/Legislation ............................ A1-22

Appendix 1.4 Regulatory and Administrative Framework................................................................................... A1-23

Appendix 1.5 Information Addressing Issues Raised by the

California Coastal Commission in a Letter to MMS ..................................................................... A1-51
A1-2

Delineation Drilling Activities Offshore Santa Barbara County
A1-3

Appendix for Chapter 1

Appendix 1

APPENDIX 1.1. LEASING, DEFERRAL, AND

LITIGATION HISTORY OF THE PACIFIC OCS

REGION

The earliest offshore oil production in the United

States was off Summerland, California (near Santa

Barbara), in 1896, an extension of an onshore discovery made before 1894. The Submerged Lands Act of

May 22, 1953, granted the coastal states a belt of submerged lands seaward of their coastlines to a distance

of three geographical miles, or more, if there were evidence that the State had been given jurisdiction over

a larger area before becoming a State.

The Outer Continental Shelf Lands Act of August 7, 1953, reaffirmed that, in general, those lands

beyond the three geographical mile limit are subject

to the jurisdiction of the Federal Government for the

benefit of the entire Nation. It further authorized the

Secretary of the Interior to prescribe necessary regulations and to grant mineral leases for the OCS lands.

The Pacific OCS Region has been the subject of

twelve OCS sales, which will be briefly described below.

Phosphate Lease Sale, December 15, 1961

In January 1961, Collier Carbon & Chemical

Corporation requested that phosphate leases be offered

offshore San Clemente Island off California. The Navy

told the Department of Interior (DOI) that the area

proposed was only 10 miles from an explosive dumping area; however, they would consent to the leasing

with reservations. The Call for Nominations was issued on July 17, 1961 offering portions of 16 blocks in

600 feet of water, 40 miles off the coast of California

between San Diego and San Clemente Island. Collier

was the only company that submitted nominations,

and the only company that bid at the sale held on December 15, 1961, in Los Angeles.

Collier was awarded leases on the six tracts upon

which they bid, and began exploration immediately.

Officials from the Gulf of Mexico Office and Headquarters conducted the sale; the lease files were then sent

to Washington, D.C. In March, 1962, Collier discovered live ammunition from Navy target practice on

their leases. They asked the Navy if mining operations could safely be conducted. The Navy responded

that unexploded projectiles probably did exist on the

ocean floor, but they could not survey the area or remove the ammunition. Collier suspended exploration,

and requested they be reimbursed by the Government

for the bonuses, lease rentals, and exploration expenses

they had incurred. The U.S. Geological Survey stated

that Collier should have been aware of the target practice area, and recommended the claim be rejected. BLM

then recommended the same to the DOI Solicitor and

to the Secretary of the Interior. Collier relinquished

the leases in October, 1963, but did not waive their

claim.

The General Accounting Office disallowed

Collier’s claim in December, 1963, but Collier appealed,

and in April, 1965, the U.S. Comptroller General authorized payment to Collier of $137,120, which covered all bonuses and rentals paid, but no reimbursement for exploration.

Later in 1965 and in 1969 two companies expressed interest in phosphorite leasing in Southern

California, but the Bureau of Mines stated that it was

not economically viable at the time.

Sale P-1, May 14, 1963

The Call for Nominations for this 1963 Sale, the

first offshore California, was issued from Headquarters in January, 1962, and included approximately 4

million acres offshore Central and Northern California. One hundred seventy-four blocks (approximately

900,000 acres) were nominated.

To avoid conflict with San Francisco Bay shipping, no blocks were offered between San Francisco

and the Farallon Islands. Also deleted, at the request

of the Department of Defense and to avoid conflict with

shipping were blocks off Vandenberg Air Force Base

and Point Arguello and blocks opposite Arcata and

Humboldt Bays. Stipulations were applied to some

blocks: a Defense Department Suspension of Operations, one stating no pipelines in the Point Reyes National Seashore area, and one disallowing drilling or
A1-4

Delineation Drilling Activities Offshore Santa Barbara County

production activities above the ocean bed in the San

Francisco Bay Area.

A total of 129 tracts were offered, and 57 (312,945

acres) were leased. Seventeen blocks were leased in

the Eureka area, 10 in Point Arena, 24 in the San

Francisco area, and 6 in the Santa Maria Basin.

Twenty exploratory wells were drilled on 17 leases,

but the high production and transportation costs determined that Monterey Formation oil would not be

economic in the offshore environment at that time.

All of the leases from the sale were relinquished prior

to the expiration of their five year terms.

Sale P-2, October 1, 1964

The Call for Nominations for the first OCS sale

in the Pacific Northwest, published August 14, 1963,

covered 1,676 blocks (9.5 million acres) offshore Oregon and Washington. There were 650 blocks (3.5 million acres) nominated by six companies. Some blocks

nominated in the Cape Flattery, Copalis Beach, and

Coos Bay areas were deleted because they fell within

Department of Defense concerns, and tracts off northern Washington were not offered because of the disputed international boundary.

One hundred ninety-six blocks (1.1 million acres)

were offered in the sale; all with the Department of

Defense stipulation agreeing to suspend operations at

the request of the U.S. Navy. One hundred one blocks

were leased. Offshore Oregon in the Tillamook Area

13 were leased, 31 in the Newport Area, and 30 in the

Coos Bay Area. Offshore Washington 9 were leased in

the Cape Flattery Area, and 18 in the Copalis Beach

Area.

Eight exploratory wells were drilled offshore

Oregon, and 4 offshore Washington, on a total of ten

leases but none were deemed to be economically producible. All leases were relinquished between 1966 and

1969.

Sale P-3, December 15, 1966

One block in the Santa Barbara Channel was

offered in this Drainage Sale, when it was determined

that probable drainage of oil and gas was imminent

because of production on an adjacent State of California lease. Seven bids were received; the lease was issued effective January 1, 1967, and first production

from Platform Hogan was reported June 10, 1968. A

second platform, Houchin, reported first production

April 28, 1969; and the lease, OCS-P 0166, is still producing.

Sale P-4, February 6, 1968

The Call for Nominations was issued on December 29, 1966, covering 144 blocks (approximately .8

million acres) in the Santa Barbara Channel. All acreage nominated was offered with the following exceptions; 1) a special two-mile “buffer zone” along an eighteen mile stretch paralleling the boundary of the State

of California’s Santa Barbara Sanctuary to protect the

sanctuary from drainage, 2) 14 blocks located in waters deeper than 1,200 feet that received only single

nominations, and 3) two blocks and portions of two

other blocks that might be involved in future jurisdictional questions with the State of California.

Of the 110 blocks offered in the Sale, 75 received

bids, and 71 leases were awarded. One hundred fortytwo exploratory wells and 392 development wells have

been drilled on these leases, and there are eleven producing platforms.

There was extensive litigation and suspensions

on these leases as a result of the February 1969 oil

spill from lease OCS-P 0241. The lease terms of the

five leases that were drilling at the time of the oil spill

were extended by the number of days their actions had

been suspended.

As of December, 2000, 26 leases from this sale

remain active: 13 are in the producing Santa Ynez Unit,

7 in the producing Santa Clara Unit, 1 in the producing Pitas Point Unit, 2 in the producing Point Hueneme

Unit, and 2 leases are not in units but producing.

Sale 35 - December 11, 1975

The Call for Nominations, issued in January,

1974, covered 1,424 blocks, approximately 7.7 million

acres. The Call area excluded Santa Barbara Channel, but included areas in the San Pedro Channel southward and eastward from Ventura and southward and

westward from the Channel Islands. The area extended

as much as 110 miles seaward, and included substantial areas of deep water. Seventeen companies nominated 1,350 blocks; however, only 297 blocks, covering approximately 1.6 million acres were studied in

the Environmental Impact Statement (EIS), the first

EIS prepared by the Pacific OCS Region, after enactment of the National Environment Policy Act 1969

(NEPA).

All blocks in the Santa Monica Bay were deferred

from consideration, as were blocks south of San Miguel

Island. A three-quarter mile buffer zone was established

adjacent to State waters.

The State of California, the Southern California

Association of Governments, the County of Los Angeles, and the California Coastal Zone Conservation

Commission filed two suits contending that the DOI

failed to comply with NEPA in the preparation of the

Sale 35 EIS’s and that Sale 35 will have direct and
A1-5

Appendix for Chapter 1

significant impact upon environmental quality of the

coastal zone of Southern California. On December 5,

1975, Judge Williams determined sufficiency of the

EIS’s challenged, and that it was inappropriate to enjoin Sale 35; Judge Robinson, ruling on the latter issues, stated that his case was bound by Judge Williams’ decision.

Of the 231 blocks (1,257,593 acres) offered, 70

were bid on, 14 were rejected, and 56 (310,049 acres)

were leased. Four leases, on which there are four platforms, remain active within the Beta Unit. One platform is used for processing only, the other three are

producing; the first, Ellen, since January, 1981.

Sale 48 - June 29, 1979

The Call for Nominations, covering 2,505 blocks

(14.1 million acres) in the Southern California Bight

Area, extending 190 miles seaward from Point Conception to the Mexican border, was issued on July 16,

1976. Seventeen companies nominated 970 blocks;

however, only 217 blocks were studied in the EIS.

Three months before the June sale, Secretary of

the Interior Andrus deleted 69 blocks: 26 offshore Dana

Point and San Diego; 3 off Santa Barbara Island; 21

off northern Channel Islands; and 19 because of conflicts with shipping lines, geologic hazards, and Department of Defense.

After the Final Notice of Sale was published,

Energy Action Educational Foundation and 13 other

individuals and organizations, including the City of

Long Beach and the California State Lands Commission, filed suit to prohibit all future OCS lease sales

until the Department of Energy (DOE) promulgated

regulations implementing alternative bidding systems

authorized by the OCSLA Amendments. In a separate

action, the group sought a preliminary injunction

blocking Sale 48 for the above same reasons.

On June 27, 1979 (two days before the sale), District Judge Robinson, Jr. denied the group’s motion

for a preliminary injunction. The next day the appellants filed a motion to restrain the DOI from awarding cash bonus-fixed royalty leases under Sale 48; this

motion was also denied by the District Court. After

the lease sale, the appellants again appealed stating

that the Secretary of the DOI had failed to experiment

with the bidding systems that do not use the size of a

cash bonus as the bidding variable. The Court of Appeals ruled in their favor, but the United States Supreme Court reversed the judgment of the Court of

Appeals December 1, 1981.

Fifty-five of the 148 blocks offered at Sale 48 were

bid on; only one of those was rejected. Nine leases remain active and are in four units. Two are in the producing Santa Ynez Unit. One is in the producing Pitas

Point Unit. Two are in the producing Point Arguello

Unit. Four are in the non-producing Sword, Unit.

Sale 53 - May 28, 1981

The Call for Nominations and Comments for

Proposed Sale 53 offshore Central and Northern California was issued November 29, 1977. The Call area

included 2,036 blocks (10.7 million acres), from Eureka in Northern California to Point Conception, seaward to 70 miles in water depths to over 12,000 feet.

Of the 1,743 blocks (8.4 million acres) nominated

by 27 companies, 242 blocks comprising 1.3 million

acres were selected for environmental study. The tracts

were in five geologic basins: Eel River Basin offshore

Eureka; Point Arena Basin offshore Mendocino

County; Bodega Basin offshore Sonoma and Marin

Counties north of the Point Reyes National Seashore;

Santa Cruz Basin north of Monterey Bay; and the

Santa Maria Basin offshore northern Santa Barbara

County and San Luis Obispo County.

In October, 1980, Secretary of the Interior

Andrus released the Proposed Notice of Sale for Sale

53, offering only 115 tracts in the Santa Maria Basin.

However, in February, 1981, the new Secretary of the

Interior Watt reissued a Proposed Notice of Sale with

all five basins again included for consideration.

When the Final Notice of Sale was published,

only 111 tracts in the Santa Maria Basin, were offered. Secretary Watt said that a decision regarding

the other four basins would be made later. A suit was

filed by the State of California and the following California agencies: Coastal Commission, Air Resources

Board, Resources Agency, Department of Fish and

Game, and Department of Conservation. A similar suit

was also filed by the Natural Resources Defense Council, Inc., Friends of the Sea Otter, and the Environmental Coalition on Lease Sale 53.

The suits sought to prevent 34 of the 115 tracts

from being offered in the Sale on the grounds that the

leasing of those tracts was inconsistent with

California’s federally approved Coastal Management

Plan, and requested that a consistency determination

be conducted by the DOI. Other grounds cited in the

suits were deletion of 34 southern tracts to protect

the Southern sea otter, and other marine life such as

the gray whale, seabirds and fisheries; 31 tracts to

protect recreation and tourism; 11 tracts to protect

against geological dangers; and 14 tracts based on

considerations of marine safety and the potential impacts of tanker accidents.

A preliminary injunction was issued May 28,

1981, by the U.S. District Court for the Central District of California, enjoining the Bureau of Land Management (BLM) from accepting or rejecting any bids

or issuing any leases on 32 tracts in the Santa Maria

Basin. The BLM (now MMS) was allowed to receive,

open, and conduct internal administrative review of

bids on those tracts, as well as on all others.

Forty-three companies participated in the sale,

submitting a total of 301 bids on 81 tracts. The high-
A1-6

Delineation Drilling Activities Offshore Santa Barbara County

est bid on a single tract, $333.6 million, is still a National OCS sale record. BLM was enjoined from awarding leases on bids received on 21 tracts in the northern part of the basin pending determination of a Federal Court’s Temporary Injunction. Of the 81 tracts

receiving bids, 60 were outside the area of litigation,

and 54 of those were leased.

In July, 1981, the Preliminary Injunction was

modified; 2 tracts were withdrawn from the litigation.

One of the bids was rejected, the other was leased. A

month later, Secretary Watt announced that because

of the appeals pending on Sale 53 litigation, the other

four basins would not be offered.

In May, 1984, the U.S. Supreme Court dissolved

the injunction, ruling in favor of the DOI by determining that lease sales are not subject to consistency

determinations. By that time, the price of oil had fallen,

and the majority of the companies who bid on the litigated tracts decided to forfeit their one-fifth bonuses,

rather than pay the four-fifth balances due. The bonuses on twelve leases, amounting to $41,081,734.40,

were forfeited by ten companies. Two bids were rejected, and five leases, on the northern edge of the

Santa Maria Basin.

Twenty-one discoveries have been announced on

the other Sale 53 leases. One of the first, in October,

1982, announced a giant offshore oil field 7 miles west

of Point Conception, holding at least 100 million recoverable barrels of oil: Of the 33 remaining active

leases, 37 are in approved units, three of which are

producing.

Sale 68 - June 29, 1982

The Call for Nominations and Comments for this

proposed Southern California sale was issued December 28, 1979, covering 2,900 blocks (16.3 million acres)

seaward 135 miles from Point Conception to the Mexican border. Two areas were specifically deleted from

the Call: blocks from 3 to 30 miles offshore Dana Point

and San Diego to the Mexican Border, and blocks in

the Santa Barbara Channel immediately north of the

Channel Islands.

Of the 609 blocks nominated, 218 (1.1 million

acres) were selected for inclusion in the EIS, and 164

were offered in the Final Notice of Sale. Suits were

filed by the State of California, who was joined by the

cities of Los Angeles, Santa Monica, Beverly Hills,

Manhattan Beach, Torrance, San Clemente, Newport

Beach, and Laguna Beach, and the Sierra Club, and

by a coalition of independent oil and gas companies,

known as the “Pauley Group,” made up of Pauley Petroleum, Inc., Derby Refining Co., Mesa Petroleum Co.,

and Husky Oil Co.

Twenty-four blocks were deleted just prior to the

sale, after the U.S. District Court and the Appellate

Court ruled in favor of the State of California and other

plaintiffs that certain portions of the sale area were

not in accord with consistency requirements of the

California Coastal Zone Management Plan, and that

“full and careful consideration” was not given to the

Governor’s comments to the Proposed Notice of Sale.

This case was pending until the Sale 53 litigation was

resolved. That decision, in 1984, by the U.S. Supreme

Court, ruled that lease sales are not subject to consistency determinations.

Thirty-five of the 140 blocks offered were bid on,

29 were leased, and three remain active. Two have

been incorporated into existing units (one of which is

the producing Santa Ynez Unit. and the other two

make up the Gato Canyon unit.

RS-2 (Reoffering Sale) - August 5, 1982

No Call for Nominations and Comments or EIS

was required for this second reoffering of OCS tracts

not leased in the previous year. Thirty-seven tracts

from the Pacific OCS Region’s Central California Sale

53 were included in the Proposed Notice of Sale; however, since ten of those tracts were the subject of Sale

53 litigation still unresolved, only 27 blocks were actually offered at the August sale held in Washington,

D.C.

On July 19, 1982, the State of California and the

California Coastal Commission filed suit against the

DOI seeking to enjoin the offering of two tracts. They

alleged that the Secretary of Interior violated 1) Section 19 of the OCSLA by not adopting all of the

Governor’s recommendations; and 2) the NEPA and

CEQ regulations by failing to discuss and assess new

information in the environmental assessment. The

court dismissed the suit as moot.

Bids were received on twelve of the 27 blocks;

two bids were rejected. On the ten blocks leased, only

one well has been drilled. That was on one of the leases

that have since been relinquished. Two other leasess

within an existing unit remain active.

Sale 73 - November 30, 1983

When the Call for Nominations and Comments

was issued November 28, 1980, the Call area stretched

from the California-Oregon border on the north to the

United States-Mexico border on the south, approximately 4,500 blocks (24.1 million acres). The following areas were excluded from the Call: the Dana PointSan Diego tracts omitted from Sale 68; the Santa

Monica Bay and Federal Ecological Preserve tracts;

the recently designated Channel Islands National

Marine Sanctuary; tracts in the Bodega, Santa Cruz,

Point Arena, and Eel River Basins deleted from Sale

53; tracts within three geographical miles of state

waters from the town of Big Sur north to the Santa

Cruz basin tracts also excluded from Sale 53; and
A1-7

Appendix for Chapter 1

tracts in the vicinity of the Point Reyes Wilderness

Area removed from oil and gas activity by the OCS

Lands Act Amendments of 1978.

Approximately 2,800 blocks (15.1 million acres)

were nominated offshore California; however, in July,

1981, Interior Secretary Watt announced a new proposed five-year oil and gas leasing program at which

time Sale 73 was designated as a Central and Northern California sale.

In May, 1982, BLM Director Robert Burford said

that the Sale 73 environmental impact statement would

cover areas from 3 to 75 miles off the California coast,

from Point Conception north to the Oregon border,

excluding the four Northern California Basins. In

December, 1982, however, the Appropriations Bill for

Fiscal Year 1983 was approved. This restricted the DOI

from any leasing north of the vicinity of Morro Bay,

which was the northern border of the Region’s active

leases.

Prior to the Final Notice of Sale, 121 tracts were

deferred as a result of consultation with the Department of the Navy, and 22 as a result of the Memorandum of Agreement with the State of California. One

hundred thirty-seven tracts covering about 770,000

acres were offered at the Sale; however, a preliminary

injunction had been issued preventing the opening of

the bids, pending disposition of the State of California’s

lawsuit regarding “consistency determination.” This

injunction was stayed on December 20, 1983, and the

bids were opened and announced. Eight tracts were

bid on, none were rejected. On January 11, 1984, the

Supreme Court of the United States held that

“Interior’s sale of OCS oil and gas leases is not an

activity ‘directly affecting’ the coastal zone within the

meaning of Sec. 307(c)(1), and thus a consistency review is not required under that section before such

sales are made.”

The Sale 73 leases were then issued. All Sale 73

leases have been relinquished or terminated. No wells

were drilled on any of the leases.

Sale 80 - October 17, 1984

The Call for Information and Nominations was

issued November 23, 1982, covering 4,100 blocks (22.4

million acres) seaward 130 miles offshore Southern

California, between Point Conception and the U.S.-

Mexico Border. The only areas deleted from the Call

were the Santa Barbara Channel Ecological Preserve

and Buffer Zone and the Channel Islands National

Marine Sanctuary. Over 2,300 blocks (11.6 million

acres) were studied in the EIS.

The Appropriations Bill for FY 84, approved

November 4, 1983, included a Congressional moratorium that covered from the State’s three mile line to

20 miles offshore both San Diego and Orange Counties, and from 3 to 27 miles offshore Los Angeles

County, including Santa Monica Bay. In addition, some

1,295 whole and partial blocks were excluded because

of Department of Defense concerns, and 18 others, at

the request of the State of California, near the border

of Ventura and Los Angeles Counties and surrounding the southern portion of Santa Catalina Island.

Of the 657 blocks (3.1 million acres) offered in

Sale 80, 25 blocks were bid on, and 23 were leased.

One lease is still active and is part of the Cavern Point

Unit. No drilling has occurred on this lease to date.
A1-8

Delineation Drilling Activities Offshore Santa Barbara County Appendix 1.2 Ownership Suspension History, Lease Stipulations, and Exploration History. Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

N/A OCS-P 0409 

Aera1 

Delta 5

Ogle10

OLAC11

Samedan15

Aera1 53 

7/81 6/86 

7/86-6/87 SOP* for proposed installation of Platform Julius. 7/87-6/89 SOP to obtain permits for construction and installation of Platform Julius. 6/89-6/90 SOP to obtain permits, reinterpret 3D seismic data, participate in cooperative effort to secure a drilling rig (IROCC). 7/90-6/94 SOP to reinterpret 3D seismic data, participate in rig cooperative, unitize with Lion Rock Unit. 1/93-6/99 Directed SOOt for COOGER Study. 

7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. 

9 exploratory wells approved by CCC. 6 wells drilled between 11/82 and 3/84. 3 previously approved wells have not been drilled. 

Lion Rock Unit OCS-P 0396 0402 0408 0414 

Aera1

REM Petroleum14

Aera1 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/90 SOP to drill unit well by 1/90. 7/90-6/94 SOP to participate in rig cooperative (IROCC). Drill and test well. Unitize with 0409. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. 

24 exploratory wells approved by CCC for Lion Rock Unit. 6 wells drilled between 6/82-4/85. 18 previously approved wells have not been drilled. 
A1-9

Appendix for Chapter 1

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Lion Rock Unit OCS-P 0397 0403 

Aera1

RME Petroleum14

Nuevo7

Aera1 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/90 SOP to drill unit well by 1/90. 7/90-6/94 SOP to participate in rig cooperative (IROCC). Drill and test well. Unitize with 0409. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (c). Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. 

see previous 

Point Sal Unit OCS-P 0415 0421 

Aera1

Delta5

Nuevo7

Ogle10

OLAC11

Samedan15

Aera1 53 

7/81 6/86 

6/86-12/87 SOP to acquire and interpret 3D seismic data; simulation of Monterey reservoir. 12/87-12/89 SOP to drill unit well by 6/89, finalize 3D analysis. 7/89-6/94 SOP to participate in rig cooperative (1ROCC), drill and test well, evaluate results, commence development planning. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. 

14 exploratory wells approved by CCC for Point Sal Unit. 4 wells drilled between 1/84 and 9/85. 10 previously approved wells have not been drilled. 
A1-10

Delineation Drilling Activities Offshore Santa Barbara County Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued). Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Point Sal Unit OCS-P 0416 0422 

Aera1

Delta5

Nuevo7

Ogle10

OLAC11

Samedan15

Aera1 53 

7/81 6/86 

6/86-12/87 SOP to acquire and interpret 3D seismic data; simulation of Monterey reservoir. 12/87-12/89 SOP to drill unit well by 6/89, finalize 3D analysis. 7/89-6/94 SOP to participate in rig cooperative (IROCC), drill and test well, evaluate results, commence development planning. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (c). Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Drilling Restrictions near State Boundary 

see previous 

Purisima Point Unit OCS-P 0426 

Aera1 Aera1 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/90 SOP to drill unit well by 1/90. Analyze 3D data. 7/90-6/94 SOP to reinterpret 3D seismic, redefine unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-02/01/03 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Drilling Restrictions near State Boundary 

21 exploratory wells approved by CCC for Purisima Point Unit. 3 wells drilled between 11/82 and 9/83. 18 previously approved wells have not been drilled. 
A1-11

Appendix for Chapter 1

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Purisima Point Unit OCS-P 0427 0432 

Aera1

Nuevo7

Ogle10

OLAC11

Devon Energy6

Samedan15

Aera1 53 

7/81 686 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/90 SOP to drill unit well by 1/90. Analyze 3D data. 7/90-6/94 SOP to reinterpret 3D seismic, redefine unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-12/01/03 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (c). Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustment. Drilling Restrictions near State Boundary 

see previous 

Purisima Point Unit OCS-P 0435 

Aera1

Nuevo7

Aera1 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/90 SOP to drill unit well by 1/90. Analyze 3D data. 7/90-6/94 SOP to reinterpret 3D seismic, redefine unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-02/01/03 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustment. Drilling Restrictions near State Boundary 

see previous 
A1-12

Delineation Drilling Activities Offshore Santa Barbara County Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued). Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Santa Maria Unit OCS-P 0425 

Aera1

TotalFinaElf16

Aera1 53 

7/81 6/86 

7/86-11/86 Unit held by drilling. 11/86-11/87 SOP for heavy oil study, acquisition and interpretation of 3D seismic data. 11/87-11/89 SOP for 3D seismic interpretation. 11/89-6/94 SOP for 3D seismic interpretation, redefining unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. 

31 exploratory wells approved by CCC for Santa Maria Unit. 5 wells drilled between 5/82 and 6/86. 26 previously approved wells have not been drilled 

Santa Maria Unit OCS-P 0430 

Aera1

TotalFinaElf16

Aera1 53 

7/81 6/86 

7/86-11/86 Unit held by drilling. 1/86-11/87 SOP for heavy oil study, acquisition and interpretation of 3D seismic data. 1/87-11/89 SOP for 3D seismic interpretation. 11/89-6/94 SOP for 3D seismic interpretation, redefining unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. 

see previous 
A1-13

Appendix for Chapter 1

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Santa Maria Unit OCS-P 0431 

Aera1

TotalFinaElf16

Aera1 53 

7/81 6/86 

7/86-11/86 Unit held by drilling. 11/86-11/87 SOP for heavy oil study, acquisition and interpretation of 3D seismic data. 11/87-11/89 SOP for 3D seismic interpretation. 11/89-6/94 SOP for 3D seismic interpretation, redefining unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-3/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustments. Drilling Restrictions near State Boundary 

Santa Maria Unit OCS-P 0433 

Ogle10

OLAC11

Nuevo7

RAM13

Samedan15

Aera1 53 

7/81 6/86 

7/86-11/86 Unit held by drilling. 1/86-11/87 SOP for heavy oil study, acquisition and interpretation of 3D seismic data. 11/87-11/89 SOP for 3D seismic interpretation. 11/89-6/94 SOP for 3D seismic interpretation, redefining unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-3/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustments. 

see previous 
A1-14

Delineation Drilling Activities Offshore Santa Barbara County Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued). Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Santa Maria Unit OCS-P 0434 

Aera1

TotalFinaElf16

Aera1 53 

7/81 6/86 

7/86-11/86 Unit held by drilling. 11/86-11/87 SOP for heavy oil study, acquisition and interpretation of 3D seismic data. 1/87-11/89 SOP for 3D seismic interpretation. 11/89-6/94 SOP for 3D seismic interpretation, redefining unit boundaries, participate in rig cooperative (IROCC), drill and test well, evaluate results. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-11/01/02 SOP to proceed toward production. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustments. Drilling Restrictions near State Boundary 

Bonito Unit OCS-P 0443 

Nuevo7

Poseidon12

 Nuevo7 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/89 SOP to interpret 3D seismic data. 6/89-12/89 SOP to complete 3D analysis, resolve permitting problems. 12/89-12/94 SOP to process and interpret 3D seismic data, permitting delays at Gaviota, participate in rig cooperative (IROCC), spud unit well in first quarter 1994. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-05/01/02 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (b) Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustments. 

24 wells approved by CCC for Bonito Unit. 10 wells drilled between 4/82 and 9/85. 14 previously approved wells have not been drilled. 
A1-15

Appendix for Chapter 1

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Bonito Unit OCS-P 0445 0449 0500 

Nuevo7

Poseidon12

Nuevo7 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/89 SOP to interpret 3D seismic data. 6/89-12/89 SOP to complete 3D analysis, resolve permitting problems. 12/89-12/94 SOP to process and interpret 3D seismic data, permitting delays at Gaviota, participate in rig cooperative (1ROCC), spud unit well in first quarter 1994. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-05/01/02 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (b) Operational Controls, electromagnetic Emissions, and 

Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate adjustments. 

Bonito Unit OCS-P 0446 

Nuevo7

Poseidon12

Nuevo7 53 

7/81 6/86 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/89 SOP to interpret 3D seismic data. 6/89-12/89 SOP to complete 3D analysis, resolve permitting problems. 12/89-12/94 SOP to process and interpret 3D seismic data, permitting delays at Gaviota, participate in rig cooperative (IROCC), spud unit well in first quarter 1994. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-05/01/02 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (b) Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustments. Drilling Restrictions near State Boundary 

see previous 
A1-16

Delineation Drilling Activities Offshore Santa Barbara County Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued). Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Bonito Unit OCS-P 0499 

Nuevo7

Poseidon12

Nuevo7

RS2 9/82 8/87 

6/86-6/88 SOP to acquire and interpret 3D seismic data. 6/88-6/89 SOP to interpret 3D seismic data. 6/89-12/89 SOP to complete 3D analysis, resolve permitting problems. 12/89-12/94 SOP to process and interpret 3D seismic data, permitting delays at Gaviota, participate in rig cooperative (IROCC), spud unit well in first quarter 1994. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-05/01/02 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards, Part (b) Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Royalty Rate Adjustments. 

Rocky Point Unit OCS-P 0452 0453 

Whiting 17 Arguello18 53 

7/81 6/86 

6/86-6/88 SOP to drill from Hermosa to 0451. 6/88-6/90 SOP for extended production test for well B-7. 3/90-12/94 SOP for one year production test, permitting problems at Gaviota. 1/93-3/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-06/01/01 SOP to proceed toward production, spud development well. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Drilling Restrictions near State Boundary 

6 wells approved by CCC. 4 wells drilled between 9/82 and 6/84.  2 previously approved wells have not been drilled. 
A1-17

Appendix for Chapter 1

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Sword Unit OCS-P 0319 

Amber2

Nuevo7

Ogle10

OLAC11

Samedan15

Atofina3

Samedan 48 

9/79 8/84 

8/84-8/85 SOP to evaluate seismic data, spud unit well by 1/85. 2/85-5/85 Drilling delineation well. 8/85-11/85 SOP to analyze well test results. 1/85-12/87 SOP to spud well by 7/87. 12/87-6/89 SOP to process and interpret 3D seismic data. 6/89-6/94 SOP to continue seismic interpretation, drill 3 wells, participate in rig cooperative (IROCC), develop technology for heavy oil, submit development plan. 1/93-6/99 Directed SOO for COOGER study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-08/01/03 SOP to proceed toward production, spud delineation well. 

Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Protection of Cultural Resources. Wells and Pipelines. Protection of Biological Resources. Transportation of Hydrocarbon Products. 

11 wells approved by CCC. 3 wells drilled between 3/82 and 2/85. 8 previously approved wells have not been drilled. 
A1-18

Delineation Drilling Activities Offshore Santa Barbara County Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Sword Unit OCS-P 0320 0322 0323A 

Amber2

Atofina3

Colton4

Delta5

Elf19

Nuevo7

Ogle10

OLAC11

Samedan15

OEDC9

Samedan15 48 

9/79 8/84 

8/84-8/85 SOP to evaluate seismic data, spud unit well by 1/85. 2/85-5/85 Drilling delineation well. 8/85-11/85 SOP to analyze well test results. 11/85-12/87 SOP to spud well by 7/87. 12/87-6/89 SOP to process and interpret 3D seismic data. 6/89-6/94 SOP to continue seismic interpretation, drill 3 wells, participate in rig cooperative (IROCC), develop technology for heavy oil, submit development plan. 1/93-6/99 Directed SOO for COOGER study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-08/01/03 SOP to proceed toward production, spud delineation well. 

Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Protection of Cultural Resources. Wells and Pipelines. Protection of Biological Resources. Transportation of Hydrocarbon Products. 

see previous page 

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).
A1-19

Appendix for Chapter 1

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Gato Canyon Unit OCS-P 0460 

Amber2

Delta5

Nuevo7

Nycal8

Ogle10

OLAC11

Samedan15

RME 14

Samedan15 68 

8/82 7/87 

8/87-7/89 SOP for interpretation of 3D seismic data, drill and test unit well. 1/89-4/89 Drilling delineation well. 7/89-7/91 SOP for acquisition and interpretation of 3D seismic data to delineate western portion of unit, participate in rig cooperative (IROCC). 6/90-7/94 SOP to complete 3D interpretation, spud unit well by 12/93. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-05/01/03 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Drilling Restrictions near State Boundary. 

4 wells approved by CCC. A- 2 wells 5/85 and 1/89. 2 wells have not been drilled. 

Gato Canyon Unit OCS-P 0464 

Amber2

Delta5

Nuevo7

Nycal8

Ogle10

OLAC11

Samedan15

RME 14

Samedan15 68 

8/82 7/87 

8/87-7/89 SOP for interpretation of 3D seismic data, drill and test unit well. 1/89-1/89 Drilling delineation well. 7/89-7/91 SOP for acquisition and interpretation of 3D seismic data to delineate western portion of unit, participate in rig cooperative (IROCC). 6/90-7/94 SOP to complete 3D interpretation, spud unit well by 12/93. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-05/01/03 SOP to proceed toward production, spud delineation well. 

Protection of Biological Resources. Protection of Cultural Resources. Potential Geologic Hazards. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Drilling Restrictions near State Boundary. 

see previous page 

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).
A1-20

Delineation Drilling Activities Offshore Santa Barbara County Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued). Unit and Leases Owner(s) Operator Lease Sale, Lease Date, Original 5-Year Term Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Cavern Point Unit OCS-P  0210 

Poseidon12 Venoco20 P4 

4/68 3/73 

3/73-7/90 Lease 0210 was in the Santa Clara Unit and held by unit production. 11/89-7/90 Lease 0527 was in the Santa Clara Unit 

and held by unit production. 7/90-12/94 SOO to complete permitting for exploration plan, reinterpret seismic data, participate in rig cooperative (IROCC), spud unit well. 1/93-3/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-07/01/02 SOO to proceed toward exploration, spud exploration well. 

Federal Register, Vol.32, No. 250 

No wells drilled. 
A1-21

Appendix for Chapter 1

Appendix 1.2 Suspension History, Lease Stipulations, and Exploration History (continued).

Unit and Leases 

Owner(s) Operator Lease Sale, Lease 

Date, Original 5-Year Term 

Lease Term Extensions 

* Suspension of Production t Suspension of Operations 

Lease Sale Stipulations Status 

Cavern Point Unit OCS-P 0527 

Poseidon12 Venoco20 80 

12/84 11/89 

3/73-7/90 Lease 0210 was in the Santa Clara Unit and held by unit production. 11/89-7/90 Lease 0527 was in the Santa Clara Unit 

and held by unit production. 7/90-12/94 SOO to complete permitting for exploration plan, reinterpret seismic data, participate in rig cooperative (IROCC), spud unit well. 1/93-6/99 Directed SOO for COOGER Study. 7/99-8/16/99 Directed SOO for additional MMS review time on SOP request. 8/17/99-11/15/99 Directed SOO to provide additional information. 11/12/99-07/01/02 SOO to proceed toward exploration, spud exploration well. 

Protection of Biological Resources. Protection of Cultural Resources. Operational Controls, electromagnetic Emissions, and Evacuation. Hold Harmless. Transportation of Hydrocarbon Products. Wells and Pipelines. Fisheries and Wildlife Training Program. Protection of Important Biological Resources, Parts (a), and (b). Testing of Oil Spill Containment Equipment. Onshore Oil Processing. Protection of Commercial Fisheries. Protection of Marine Biota. Protection of Air Quality. 

No wells drilled. 

1 Aera Energy, LLC2 Amber Resources, LLC3 Atofina Petrochemicals4 Colton Gulf Coast, Inc.5 Delta Petroleum Company6 Devon Energy Production Company, L.P.7 Nuevo Energy Company8 Nycal Corporation9 OEDC Exploration & Production, L.P.10 Ogle Petroleum Company, Inc.

11 OLAC Resources, LLC12 Poseidon Petroleum, LLC13 RAM Energy, Inc.14 RME Petroleum Company15 Samedan Oil Company16 TotalfinaElf E&P USA, Inc.17 Whiting Petroleum Company18 Arguello, Inc.19 Elf Aquitaine Oil Programs20 Venoco, Inc.
A1-22

Delineation Drilling Activities Offshore Santa Barbara County

APPENDIX 1.3 HISTORY OF STATE OF

CALIFORNIA OFFSHORE OIL AND GAS

DEVELOPMENT/LEGISLATION

Summarized from California Offshore Oil & Gas

Leasing and Development Status Report, http://

www.coastal.ca.gov/web/pubs.html, May 25, 1999,

Prepared by the California Coastal Commission Staff.

HISTORY OF STATE OF CALIFORNIA

OFFSHORE OIL AND GAS DEVELOPMENT/

LEGISLATION

Initial Development

Significant California oil development began onshore in the 1860’s and expanded rapidly through the

turn of the century. The first “offshore” development

began from wooden piers extending out from a developed onshore oil field in Santa Barbara County. This

early coastal oil development was originally “regulated” only by the private individuals and companies

that owned property along the coast, and suffered from

wasteful and polluting drilling practices. Furthermore,

onshore and pier development was rapidly draining

the oil reservoirs that underlay the submerged lands

of the “marginal sea”-the three-mile wide band of ocean

area adjacent to the coast traditionally understood to

be the property of the “sovereign” coastal states.

The first oil well was drilled into the California

tidelands at Summerland, Santa Barbara County in

1896. Access leases were acquired from the littoral landowners, and by 1906 approximately 412 wells had been

drilled along the beach and from wooden piers extending out into the tidelands. At that time there were no

state laws governing the extraction of oil and gas from

state-owned lands.

The State of California first responded to this

coastal oil development in 1915 when the legislature

created the Division of Oil and Gas-now the Division

of Oil, Gas, and Geothermal Resources (DOGGR)-as a

branch of the State Mining Bureau.

Tidelands Leasing Act of 1921

The California legislature passed a statute in 1921

that asserted the state’s sovereign authority over all

minerals on state lands including the marginal sea

(Chapter 303, Statutes of 1921). This law allowed the

California State Surveyor General to issue prospecting permits and oil development leases with a 5% royalty provision for state lands in coastal waters.

State Lands Act of 1938

The legislature closed its coastal waters entirely

to new offshore oil and gas development in 1929 because of continuing pollution and depletion of the oil

resources under state waters (Chapter 536, Statutes

of 1929). Nevertheless, the drainage of the state’s oil

resources from preexisting onshore wells continued.

In the City of Huntington Beach, town-lot drilling was

freely permitted immediately adjacent to the tidelands,

and in 1932 a trespass well was directionally drilled

from an onshore surface location to a bottom-hole location offshore. The state, in 1934, entered into leases

with the operators of the trespass wells in compromise of litigation.

The need for a more comprehensive law governing offshore oil and gas development to protect tide

and submerged lands against drainage from onshore

drilling became increasing apparent, and on June 11,

1938, the State Lands Act became effective (Stats. 1938,

Ex. Sess, c.5, p. 38, sec 131). This act created the State

Lands Commission and assigned it jurisdiction over

all stateowned tide and submerged lands and administrative control over any remaining state interest in

granted tide and submerged lands. Another of the more

important provisions of the 1938 Act restricted the

leasing of tidelands to those lands that were being

drained of oil or that were under threat of being

drained by wells on adjacent lands not owned by the

state.

Establishment of Federal Jurisdiction

A jurisdictional dispute concerning the ownership of coastal submerded lands arose as new technology for developing offshore oil resources in increasingly deeper waters became available. This dispute was

resolved in 1953 by two Congressional statutes that

clarified federal and state rights and responsibilities

for the “continental shelf” (the submerged lands extending from the coastline to the edge of the continental slope). The Submerged Lands Act of 1953 (43 U.S.

C sec. 1301 et seq.) affirmed the coastal states’ assertion of ownership of the submerged lands and resources within a three mile belt seaward of the line of

low tide. The Outer Continental Shelf Lands Act of

1953 (OCSLA) established that the submerged lands

and resources of the outer continental shelf (OCS) or

beyond three miles, “appertained to the United States

and [were] subject to its jurisdiction, control, and

power of disposition” (43 U.S. C. sec. 1331 et seq.).

Cunningham-Shell Act of 1955

In 1955 the legislature passed the CunninghamShell Tidelands Act (Chapter 1724, Statutes of 1955).

Under the 1938 Act, there was no exclusion of any

state property from leasing provided that probable

drainage of oil or gas from state lands was established.

In contrast, the 1955 Act limited the application of its

general leasing provisions to tide and submerged lands
A1-23

Appendix for Chapter 1

along the coast between the northerly boundary of the

City of Newport Beach in Orange County and a point

six miles south of the town of Oceano in San Luis

Obispo County (i.e. near known onshore productive

oil and gas areas in Southern and Central California).

Certain scenic lands along the coasts of Los Angeles,

Santa Barbara and San Luis Obispo counties and the

islands of San Clemente and Catalina were excluded

from leasing under the provision except when subjected

to probable drainage from wells drilled upon adjacent

lands owned by others. The remainder of the coast

was excluded from leasing unless threatened by drainage. In 1963 the area available for offshore oil and gas

leasing was expanded to include additional tracts as

far north as the Oregon border. The 1955 Act and the

amendments in 1957 established the basic parameters

under which most of the state’s offshore leases were

issued.

For information on the status of State leases

“Report to the State Lands Commission On The Status of State OffshoreOil and Gas Leases”, 9-03-99, is

available at http://www.slc.ca.gov/Reports/default.htm.

APPENDIX 1.4 REGULATORY AND

ADMINISTRATIVE FRAMEWORK

This appendix references only those portions of

Federal public laws enacted by Congress related directly or indirectly to the Minerals Management

Service’s (MMS) regulatory responsibilities for mineral leasing, exploration, and development and production activities on leases located in the submerged

lands of the outer continental shelf (OCS). It also includes responsibilities and jurisdictions of other Federal agencies and departments that also are involved

in the regulatory process of oil and gas operations on

the OCS. This is not intended to be a comprehensive

summary of all laws associated with proposed exploration and development activities that significantly

might affect the OCS. Explanations are merely to acquaint the reader with the law and are not meant as

legal interpretations. Readers should consult the entire text of the law for additional requirements and

information.

1.4.1 APPLICABLE FEDERAL LAWS AND

POLICIES

The Outer Continental Shelf Lands Act

Under the Outer Continental Shelf Lands Act

(OCSLA), the Department of the Interior is required

to:

• Manage the orderly leasing, exploration, development, and production of oil and gas resources on the Federal OCS;

• Ensure the protection of the human, marine,

and coastal environments;

• Ensure that the public receives a fair and equitable return for these resources; and

• Ensure that free-market competition is maintained.

Within the U.S. Department of Interior, MMS is

charged with the responsibility of managing and regulating the development of OCS oil and gas resources

in accordance with the provisions of the OCSLA. The

MMS operating regulations are presented in Chapter

30, Code of Federal Regulations (CFR), Part 250. The

MMS responsibilities and procedures in this regard

are described in Section 1.5.2.

The OCS Lands Act extends the authority of the

Secretary of the Army through the U.S. Army Corps

of Engineers to the OCS to prevent obstruction to

navigation in U.S. navigable waters.

The OCSLA grants authority to the USCG to

promulgate and enforce regulations covering lighting

and warning devices, safety equipment, and other

safety-related matters pertaining to life and property

on fixed OCS platforms and drilling vessels.

In accordance with the OCSLA (43 U.S.C. 1354)

and the Export Administration Act of 1969 (50 App

U.S.C. 2405(d), oil that is produced on the U.S. OCS

must go to a U.S. port.

The National Environment Policy Act and the

Council on Environmental Quality

The National Environment Policy Act (NEPA)

requires all Federal agencies to use a systematic, interdisciplinary approach to protection of the human

environment. Such an approach ensures the integrated use of natural and social sciences in any planning and decision making that may have an impact on

the environment. The NEPA also requires the preparation of a detailed EIS on any major Federal action

that may have a significant impact on the environment. The EIS must address any adverse environmental effects that cannot be avoided or mitigated, alternatives to the proposed action, the relationship between short-term resources and long-term productivity, and irreversible and irretrievable commitments of

resources.

In 1979, the Council on Environmental Quality

(CEQ) established uniform procedures for implementing the procedural provisions of NEPA. These regulations provide for the use of the NEPA process to identify and assess reasonable alternatives to proposed

actions that avoid or minimize adverse effects of these

actions upon the quality of the human environment.

“Scoping” is used to identify the scope and significance

of important environmental issues associated with a
A1-24

Delineation Drilling Activities Offshore Santa Barbara County

proposed Federal action through coordination with

Federal, State, and local agencies; the general public;

and any interested individual or organization prior to

the development of an impact statement. The process

also identifies and eliminates from further detailed

study issues that are not significant or that have been

covered by prior environmental review.

The Marine Mammal Protection Act

Under the Marine Mammal Protection Act

(MMPA) of 1972, the Secretary of Commerce is responsible for the protection of all cetaceans and pinnipeds

(except walruses) and has delegated authority for

implementing the MMPA to the National Marine Fisheries Services (NMFS). The Secretary of the Interior

is responsible for walruses, polar bears, sea otters,

manatees, and dugongs and has delegated responsibility to USFWS for providing overview and advice to

the responsible regulatory agencies on all Federal actions bearing upon the conservation and protection of

these marine mammals.

The MMPA established a moratorium on the taking of marine mammals in waters under U.S. jurisdiction. The Act defines “take” to mean “hunt, capture,

or kill or attempt to harass, hunt, capture, or kill any

marine mammal.” “Harassment” is defined as any act

of pursuit, torment, or annoyance that has the potential to injure a marine mammal or marine mammal

stock in the wild (level A); or has the potential to disturb a marine mammal or marine mammal stock in

the wild by causing disruption of behavioral patterns,

including, but not limited to, migration, breathing,

nursing, breeding, feeding, or sheltering (level B). The

moratorium may be waived when the affected species

or population stock is within its optimum sustainable

population range and would not be disadvantaged by

the authorized taking, e.g., be reduced below its maximum net productivity level, which is the lower limit

of the optimum sustainable population range. The Act

directs the Secretary, upon request, to authorize the

unintentional taking of small numbers of marine mammals incidental to activities other than commercial fishing (e.g., offshore oil and gas exploration and development) when, after notice and opportunity for public

comment, the Secretary finds that the total of such

taking during the 5-year (or less) period would have a

negligible impact on the affected species.

The Act also specifies that the Secretary shall

withdraw, or suspend for a specified period of time,

permission to take marine mammals incidental to oil

and gas production, and other activities if the applicable regulations regarding methods of taking, monitoring, or reporting are not being complied with, or

the taking is having, or may be having, more than a

negligible impact on the affected species or stock.

In 1994, a new subparagraph (D) was added to

Section 101(a)(5) to simplify the process of obtaining

“small take” exemptions when unintentional taking

is by incidental harassment only. Specifically, the incidental take of small numbers of marine mammals by

harassment can now be authorized for periods of up

to one year without rulemaking, as required by Section 101(a)(5)(A), which remains in effect for other

authorized types of incidental taking.

To ensure that activities on the OCS adhere to

MMPA regulations, MMS must actively seek information concerning impacts of OCS activities on local species of marine mammals.

Since 1986, MMS, the U.S. Army Corp of Engineers, and OCS operators have been following strict

NMFS recommendations to prevent adverse impacts

on endangered marine turtles and avoid the incidental taking of marine mammals.

The Magnuson - Stevens Act of 1976

The Magnuson - Stevens Act of 1976 (MFCMA)

(16 U.S.C. 1801-1882) established and delineated an

area from the States’ seaward boundary to approximately 200 nautical miles (nmi) out as a fisheries conservation zone for the United States and its possessions. The Act created eight regional Fishery Management Councils (FMCs) and mandated a continuing planning program for marine fisheries management by the FMCs. The Act, as amended, requires that

a Fishery Management Plan (FMP) based upon the

best available scientific and economic data be prepared

for each commercial species (or related group of species) of fish that is in need of conservation and management within each respective region.

The Act was reauthorized by Congress through

passage of the Sustainable Fisheries Act of 1996. The

reauthorization implements a number of reforms and

changes. For example, one change required the National Marine Fisheries Service (NMFS) to designate

and conserve Essential Fish Habitat (EFH) for species managed under an existing FMP. The intentions

of such changes are to minimize, to the extent practicable, any adverse effects on habitat caused by fishing

or nonfishing activities and to identify other actions

to encourage the conservation and enhancement of

such habitat. The phrase “essential fish habitat” as

defined in the Sustainable Fisheries Act encompasses

“those waters and substrate necessary to fishes for

spawning, breeding, feeding, or growth to maturity.”

EFH present within the Pacific OCS fall under

the jurisdiction of the Pacific Fishery Management

Council (PFMC). A total of 89 species are covered by

three FMP’s: Coastal Pelagic Species, Groundfish Species, and Pacific Coast Salmon. FMPs are amended

and updated as new information from studies and public

input is received and assessed.
A1-25

Appendix for Chapter 1

MMS will enter into formal consultation with

NMFS for EFH as part of this EIS process.

The Endangered Species Act

The Endangered Species Act of 1973, as amended,

establishes protection and conservation of threatened

and endangered species and the ecosystems upon which

they depend. The Act is administered by U.S. Fish

and Wildlife Service (FWS) and NMFS. Section 7 of

the Act governs interagency cooperation and consultation. The MMS formally consults with NMFS and

FWS to ensure that activities on the OCS under MMS

jurisdiction do not jeopardize the continued existence

of threatened or endangered species and/or result in

adverse modification or destruction of their critical

habitat. As a part of the process for developing this

EIS, MMS will complete Section 7 consultation with

both FWS and NMFS regarding the proposed delineation projects in the Southern California Planning Area

of the Pacific OCS.

The FWS and NMFS make recommendations

regarding modifications of oil and gas operations to

minimize adverse environmental impacts; however, it

remains the responsibility of MMS to ensure that proposed actions do not impact threatened or endangered

species

The Marine Protection, Research, and Sanctuary Act

The Marine Protection, Research, and Sanctuaries Act of 1972 established the National Marine Sanctuary Program, which is administered by the National

Oceanic and Atmosphere Administration (NOAA) of

the Department of Commerce. The Southern California Planning Area encompasses all or part of two sanctuaries: Channel Islands National Marine Sanctuary

(NMS), which was designated in 1980; and Monterey

Bay NMS, designated in 1992. National Marine Sanctuary Program Regulations prohibit exploring for,

developing, and producing hydrocarbons within the

Channel Islands NMS, except pursuant to leases executed prior to March 30, 1981, and except the laying

of pipeline, provided specified oil spill contingency

equipment is available at the site of such operations

(15 CFR 922.71(a)(1)). The Regulations prohibit exploring for, developing, and producing hydrocarbons

within the Monterey Bay NMS (15 CFR 922.132(a)(1)).

National Historic Preservation Act

Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470-470t) requires the head of any Federal agency, having direct

or indirect jurisdiction over a proposed Federal or federally assisted undertaking in any State and the head

of any Federal department or independent agency having authority to license any undertaking shall, prior

to the approval of the expenditure of any Federal funds

on the undertaking or prior to the issuance of any

license, as the case may be, take into account the effect of the undertaking on any district, site, building,

structure, or object that is included in or eligible for

inclusion in the National Register.

The historic properties (i.e. archaeological resources) on the Outer Continental Shelf (OCS) include

historic shipwrecks, sunken aircraft, lighthouses, and

prehistoric archaeological sites that have become inundated due to the 120-meter rise in global sea level

since the height of the last ice age (ca. 19,000 years

ago). As the OCS is not federally-owned land, and as

the Federal government has not claimed direct ownership of historic properties on the OCS, the MMS only

has the authority under Section 106 of the NHPA to

ensure that our funded and permitted actions do not

adversely affect significant historic properties. Beyond

avoidance of adverse impacts, we do not have the legal

authority to manage the historic properties on the

OCS.

The Oil Pollution Act

The Oil Pollution Act (OPA 90) establishes a

single uniform Federal system of liability and compensation for damages caused by oil spills in U.S. navigable waters. OPA 90 requires removal of spilled oil

and establishes a national system of planning for and

responding to oil spill incidents. OPA 90 includes provisions to (1) improve oil-spill prevention, preparedness, and response capability; (2) establish limitations

on liability for damages resulting from oil pollution;

(3) provide funding for natural resource damage assessment; (4) implement a fund for the payment of

compensation for such damages; and (5) establish an

oil pollution research and development program. The

Secretary of Interior is given authority over offshore

facilities and associated pipelines (except deepwater

ports) for all Federal and State waters, including responsibility for spill prevention, oil-spill contingency

plans, oil-spill containment and clean-up equipment,

financial responsibility certification, and civil penalties. The Coast Guard is responsible for enforcing vessel compliance with OPA 90.

The Clean Water Act

The Federal Water Pollution Control Act

(FWPCA) of 1972, as amended, commonly referred to

as the Clean Water Act (CWA), authorizes the U.S.

Environmental Protection Agency (USEPA) to issue

National Pollutant Discharge Elimination System

(NPDES) permits to regulate discharges into waters

of the United States. On March 4, 1993, the USEPA
A1-26

Delineation Drilling Activities Offshore Santa Barbara County

issued revised Effluent Limitations Guidelines and New

Source Performance Standards that set more restrictive conditions than were previously applied to discharges on the OCS.

Presently, two types of permits exist to regulate

offshore oil and gas facility-associated effluents. One

type is a General permit and the other is a series of

Individual permits The General permit was issued in

1983, reissued in January 1984, and expired in June

1984 with no new General permit (1984 General permit) to take its place. This permit covers 14 of the 23

platforms in the MMS Pacific Region. The remaining

nine platforms are presently covered by Individual

permits. Two of the Individual permits were issued in

1977 and have never been updated, while the permits

for the remaining seven platforms were all applied after the 1984 General permit had expired. All the newer

Individual permits are more stringent and cover a

wider array of effluents than the General permit.

In October 1996, EPA, Region 9 began the process of issuing a new General permit (referred to hereafter as the “new General permit. In January 2001,

the new General permit received California Coastal

Commission (CCC) Consistency Certification. At

present, EPA is considering how to handle the conditions and how to reissue the changed permit. There is

no anticipated date of issuance.

The new General permit is more stringent than

either the 1984 General permit or any of the Individual

permits. The Individual permits are more stringent

than the 1984 General permit by decreasing limits on

some components of produced water, requiring more

frequent monitoring, and monitoring an increased total number of effluents. The 1984 General permit regulated 12 discharges while the new draft permit will

regulate those and 10 others.

An NPDES permit would be required for delineation drilling discharges. Individual operators or the

MODU owner could apply for 1) coverage under the

new permit when it becomes effective or 2) an individual permit.

Section 404 of the CWA delegates regulatory authority to the Secretary of the Army over discharge of

dredged or fill material in wetlands. Permits for structures in State waters must consider environmental

requirements before the issuance pursuant to Section

404 of the CWA.

The USCG has jurisdiction to enforce the CWA

on the OCS. Under the CWA, the USCG approves the

procedures to be followed and the equipment used for

the transfer of oil from vessel to vessel and between

onshore and offshore facilities and vessels. The USCG

conducts pollution surveillance patrols to detect oil

discharges with territorial sea and contiguous zone

and has enforcement authority over violations. The

USCG also has strike team responsibilities should an

oil spill occur.

Rivers and Harbors Act

Section 10 of the Rivers and Harbors Act of 1899

requires that permits be issued for all offshore construction, including pipelines, in U.S. navigable waters. Structure permits for exploratory drilling vessels and for fixed and mobile platforms are issued by

the Corps. Permits must also be issued for onshore

facilities in which dredging and filling of U.S. navigable waters are involved.

Clean Air Act

The Clean Air Act of 1970 directs the attainment

and maintenance of National Ambient Air Quality

Standards (NAAQS). The 1990 Amendments to this

Act affect attainment and maintenance of NAAQS

(Title I), motor vehicles and fuel reformulation (Title

II), hazardous air pollutants (Title III), acid deposition (Title IV), facility operating permits (Title V),

stratospheric ozone protection (Title VI), and enforcement (Title VII).

Section 328 of the 1990 Clean Air Act Amendments (CAAA) transfers authority for air quality on

the OCS to the EPA. On September 4, 1992, the EPA

Administrator promulgated requirements (40 CFR Part

55) to control air pollution from OCS sources to attain and maintain Federal and State air quality standards and to comply with CAAA provisions for the

Prevention of Significant Deterioration. The promulgated regulations require OCS sources to comply with

applicable onshore air quality rules in the corresponding onshore area (COA). EPA delegated authority to

the corresponding onshore Air Districts on November

5, 1993 to implement and enforce the requirements of

40 CFR Part 55. The full transfer of authority to Santa

Barbara County APCD, Ventura County APCD, South

Coast Air Quality Management District and San Luis

Obispo County APCD to regulate OCS air emissions

pursuant to 40 CFR Part 55 transpired on September

4, 1994.

The EPA instituted final rules for determining

general conformity of federal actions with federal and

state air quality implementation plans (SIP) on November 30, 1993. Section 176(c) of the CAA, the General Conformity Rule, requires federal agencies to ensure that actions undertaken in nonattainment or

maintenance areas are consistent with the applicable

implementation plan. A Federal agency must make a

determination that a federal action conforms to the

applicable implementation plan before the action is

taken.

The Resource Conservation and Recovery Act

The Resource Conservation and Recovery Act

(RCRA) provides a framework for the safe disposal and
A1-27

Appendix for Chapter 1

management of hazardous and solid wastes. Most oilfield wastes have been exempted from coverage under

RCRA’s hazardous waste regulations. Any hazardous

wastes generated on the OCS that are not exempt must

be transported to shore for disposal at a hazardous

waste facility. Exempt wastes taken from the POCS

for disposal are regulated in California.

The Coastal Zone Management Act

Pursuant to the Coastal Zone Management Act

(CZMA) and the Coastal Zone Reauthorization Amendments of 1990, all Federal activities must be consistent to the maximum extent practicable with the enforceable policies of each affected State’s coastal zone

management (CZM) program. Each State’s CZM program sets forth objective, policies, and standards regarding public and private use of land and water resources in the coastal zone.

A State with an approved CZM plan reviews Exploration Plans (EP’s) and Development and Production Plans (DPP’s) to determine whether the proposed

activities are consistent with that State’s CZM plan.

The MMS may not approve 1) an Application for Permit to Drill for an EP or 2) a permit for activities

described in a DPP unless the State concurs, or is

conclusively presumed to have concurred, that the plan

is consistent with its CZM plan.

The MMS expects the operators proposing delineation drilling to submit revisions to approved EP’s

in September 2001. MMS will examine the proposed

revisions in accordance with 250.203(n)(2). If the revisions could result in a significant change to the impacts previously identified and evaluated or requires

additional permits then the revisions would be subject

to all of the procedures in 250.203 including review

for Coastal Zone Consistency.

Ports and Waterways Safety Act

The Ports and Waterways Safety Act (33 U.S.C.

1223) authorizes Coast Guard to designate safety fairways, fairway anchorages, and traffic separation

schemes (TSSs) to provide unobstructed approaches

for vessels using ports. The Coast Guard provides listings of designated fairways, anchorages, and TSSs in

33 CFR 166 and 167. In general, no fixed structures

such as platforms are allowed in fairways. Temporary

underwater obstacles such as anchors and attendant

cables or chains attached to floating or

semisubmersible drilling rigs may be placed in a fairway under certain conditions. Fixed structures may

be placed in anchorages, but the number of structures

is limited.

A TSS is a designated routing measure designed

to separate opposing streams of traffic by appropriate

means and by the establishment of traffic lanes (33

CFR 167.5). The Coast Guard published a final rule

on July 31, 2000 realigning the San Francisco TSS,

extending the Santa Barbara Channel (SBC) TSS 18

nmi and linking the SBC TSS to the San Francisco

TSS. The remainder of the TSS through the SBC and

the Los Angeles TSS remain the same.

Merchant Marine Act of 1920 (Jones Act)

The Merchant Marine Act of 1920, commonly

referred to as the Jones Act (P.L. 66-261) regulates

coastal shipping between U.S. ports and inland waterways. The Act provides that “no merchandise shall be

transported by water, or by land and water...between

points in the United States...in any other vessel than

a vessel built in and documented under the laws of the

United States and owned by persons who are citizens

of the United States... ” Therefore, the Act requires

that all goods shipped between different ports in the

U.S. or its territories must be:

• Carried on vessels built and documented

(flagged) in the U.S.,

• Crewed by U.S. citizens or legal aliens licensed

by Coast Guard, and

• Owned and operated by U.S. citizens.

The rational behind the Jones Act and earlier

Cabotage laws was that the United States needed a

merchant marine fleet to ensure that its domestic

waterborne commerce remains under government jurisdiction for regulatory, safety, and national defense

considerations. The same general principles of safety

regulations are applied to other modes of transportation in the United States. While other modes of transportation can operate foreign-built equipment, these

units must comply with U.S. standards. However,

many foreign-built ships do not meet the standards

required of U.S.-built ships and thus are excluded from

domestic shipping.

The U.S. Customs Service has determined that

facilities fixed or attached to the OCS for the purpose

of oil exploration as described under Section 1333(a)

of Title 43, United States Code, are considered points

within the U.S. Therefore, OCS oil facilities are considered U.S. sovereign territory and fall under the requirements of the Jones Act. This carries the implication that all shipping to and from these facilities related to oil exploration on the OCS can only be conducted by vessels meeting the requirements of the

Jones Act. Therefore, OCS facilities can only be legally served by U.S.-registered vessels and aircraft that

are properly endorsed for coastwise trade under the

laws of the U.S.
A1-28

Delineation Drilling Activities Offshore Santa Barbara County

Executive Order 12898: Environmental Justice

The environmental-justice policy, based on Executive Order 12898, requires agencies to incorporate

into NEPA documents analysis of the environmental

effects of their proposed programs on minorities and

low-income populations and communities. Scoping and

review for the EIS is an open process that provides an

opportunity for all participants, including minority and

low-income populations, to express concerns that can

be addressed in the EIS.

1.5.2 MMS REGULATORY AUTHORITY

The MMS is charged with responsibility for managing and regulating the development of OCS oil and

gas resources in accordance with the provisions of

OCSLA (described in Section 1.5.1). MMS operating

regulations are provided in 30 CFR, Chapter 250. The

MMS’s established regulatory framework (including

review, evaluation, and decision-making processes) is

applicable to all on-lease activities considered in this

EIS.

The MMS procedures for managing and regulating OCS activities, including those applicable to Exploration activities, are summarized below.

The MMS is responsible for regulating and monitoring the oil and gas operations and activities on the

Federal OCS. The MMS has established operating

regulations and procedures to ensure that proposed

activities are orderly, safe, and pollution-free. These

regulations include technical and environmental reviews and evaluations by the MMS to ensure all operations are conducted in a safe and environmentally

sound manner. The focus of the regulations is to reduce the risks associated with actions conducted in

the offshore environment. The lessee or operator has

the primary responsibility for ensuring all operations

meet or exceed MMS’s regulatory requirements.

The MMS operating regulations, 30 CFR 250,

are designed to, “. . . regulate all operations conducted

under a lease, right of use and easement, or right-ofway to promote orderly exploration, development, and

production of mineral resources and to prevent unreasonable harm or damage to, or waste of, any natural resource (including any mineral deposits in areas

leased or not leased), any life (including fish and other

aquatic life), property, or the marine, coastal, or human environment.” The operating regulations provide

requirements and guidance on each phase of offshore

operations. The operating regulations incorporate by

reference numerous industry practices, methods, codes,

and measurements that are accepted as standards in

conducting offshore operations. This allows the integration of the most current practices into all aspects

of offshore work.

Prior to commencing exploration, development,

or production activities on a lease, operators must

submit detailed plans of these activities for MMS review, evaluation, and decision. No activities may occur until approval has been granted by MMS. Proposed activities are evaluated through established technical, safety, and environmental review processes. Specific requirements must be addressed in these plans

relative to operating conditions and environmental

considerations. Supporting environmental information

required may include archaeological, biological, and

geohazards surveys and reports. If a plan is approved,

operators must still submit applications for specific

operations for review and approval prior to commencing operations. Upon approval of activities, lessees

must comply with all lease stipulations, operational

regulations, permit requirements, mitigation measures, and other applicable Federal laws and regulations.

All proposed operations must meet or exceed the

safety standards set by MMS. The MMS requires use

of the Best Available and Safest Technology (BAST)

for OCS operations, which include state-of-the-art drilling technology, production safety systems, completion

of oil and gas wells, oil-spill response plans, pollutioncontrol equipment, and specifications for platform/

structure designs.

The MMS completes a technical and safety review of all proposed production facility designs and

installation procedures. All proposed facilities in the

POCS Region are reviewed for structural integrity.

These detailed classical engineering reviews entail an

intense evaluation of all operator proposals for fabrication, installation, modification, and repair of all

mobile and fixed structures in the POCSRegion.

To ensure that new structures are designed, fabricated, and installed using standardized procedures

to prevent structural failures, MMS uses third-party

(a Certified Verification Agent) expertise and technical input in the verification process. All surface production facilities, including separators, treaters, compressors, headers, and flowlines, must be designed,

installed, and maintained in a manner that provides

for efficiency, safety of operations, and protection of

the environment. Safety systems utilized for drilling,

well workover activities, and production operations

on the OCS must be designed, installed, used, maintained, and tested in a manner to ensure the safety

and protection of the human, marine, and coastal environments. All tubing installations open to hydrocarbon-bearing zones below the surface must be

equipped with safety devices that automatically shut

off the flow from the well in the event of an emergency

(unless the well is incapable of flowing).

The MMS evaluates the design, fabrication, installation, and maintenance of pipelines. Proposed pipeline routes are evaluated for potential geologic haz-
A1-29

Appendix for Chapter 1

ards and other natural or man-made seafloor or subsurface features or conditions that could have an adverse impact on the pipeline. Routes are also evaluated for potential impacts on archaeological resources

and biological communities. Operators are required

to periodically inspect pipeline routes, and routine

overflights are conducted to inspect pipeline routes for

leakage.

The Oil Pollution Act of 1990 (OPA, 90) requires

removal of spilled oil and establishes a national system for planning for and responding to oil-spill incidents. MMS mandates that the operator of a lease possess a pro-active spill prevention program, a current

viable oil-spill contingency plan, financial responsibility certification, and a system to ensure that the

operator can obtain oil-spill containment and cleanup equipment quickly. The MMS regulations (30 CFR

254) require all owners and operators of oil processing and handling, storage, or transportation facilities

located seaward of the coastline to submit an Oil Spill

Response Plan (OSRP) for approval before an owner/

operator can use a facility. The facility must be operated in compliance with the approved plan. All MMSapproved OSRPs are required to be reviewed and updated every two years.

A Certificate of Financial Responsibility (COFR

Program) is required for every POCS Region drilling,

workover, production, and pipeline operation that may

involve the accidental release of hydrocarbon liquids

into the environment. The MMS determines the

amount of financial responsibility required for offshore

facilities as prescribed by OPA 90. The OPA agency

analysis applies an assessment protocol to estimate

the operator’s likely liability for a worst-case spill from

a facility or class of facility. The responsible party must

demonstrate to MMS (or state) that sufficient funds

for cleanup and damage liability would be available if

needed.

All operators on the OCS involved in production

of sour hydrocarbons that could result in atmospheric

hydrogen sulfide concentrations above 20 parts per

million (ppm) are required to file a contingency plan

for hydrogen sulfide that includes procedures to ensure the safety of the workers on the production facility. All operators are required to adhere to National

Association of Corrosion Engineers (NACE) Standard

Material Requirement MRO75-97 for Sulfide Stress

Cracking Resistant Metallic Materials for Oilfield

Equipment (NACE, 1990). The American Petroleum

Institute (API) has also developed “Recommended

Practices for Oil and Gas Producing and Gas Processing Plant Operations Involving Hydrogen Sulfide”

(API, 1995). The MMS issued an NTL titled “Hydrogen Sulfide (H2S) Requirements” to provide guidance

on sensor location, sensor calibration, respirator

breathing time, measures for protection against hydrogen sulfide, requirements for classifying an area

for the presence of hydrogen sulfide, requirements for

flaring and venting of gas containing hydrogen sulfide, and other issues pertaining to operations that

involve hydrogen sulfide.

The MMS has pollution prevention and control

regulations (30 CFR 250.300) to ensure lessees do

“...not create conditions that will pose an unreasonable risk to public health, life, property, aquatic life,

wildlife, recreation, navigation, commercial fishing, or

other uses of the ocean...” during offshore oil and gas

operations. Control and removal of pollution is the

responsibility of the lessee and is performed at the

expense of the lessee. Operators are required to install curbs, gutters, drip pans, and drains on structures and deck areas in a manner necessary to collect

all contaminants and debris not authorized for discharge. Disposal of any solid waste into the marine

environment is prohibited. Fixed and floating structures, drilling rigs, manned production platforms/structures, and support vessels operating under a Federal

oil and gas lease are required to develop Waste Management Plans and to post placards reflecting discharge limitations and restrictions. Operational discharges such as produced water, drilling fluids, and

cuttings are regulated by USEPA through the NPDES

program; MMS may restrict the rate of drilling fluid

discharge or prescribe alternative discharge methods.

The MMS administers an active civil penalties

program. This program provides a high-profile compliance and enforcement tool. A civil penalty in the

form of substantial monetary fines may be issued

against any operator that commits a violation that

may constitute a threat of serious, irreparable, or immediate harm or damage to life, property, or the environment. The MMS may make recommendations for

criminal penalties if a willful violation occurs. In addition, the regulation in 30 CFR 250 directs MMS to

suspend any operation in the POCS Region if the lessee has failed to comply with a provision of any applicable law, regulation, or order or provision of a lease

or permit. Furthermore, the Secretary may invoke his

authority under 30 CFR 250 and cancel a lease.

The MMS conducts both announced and unannounced on-site inspections of all production facilities

facilities to ensure compliance with lease terms, NTLs,

and approved plans, and to ensure that safety and

pollution-prevention requirements of regulations are

met. These inspections focus primarily on the facility’s

safety equipment and on the records the operator maintains that reflect the periodic testing required by the

Operating Regulations. Inspectors may require the

activation of some safety equipment on a facility to

ensure it is working properly.

The MMS encourages all operators to participate in the Safety and Environmental Management

Program (SEMP) that is detailed in the American Petroleum Institute’s Recommended Practice, API RP 75.

This comprehensive environmental and safety program

addresses all facets of oil and gas operations.
A1-30

Delineation Drilling Activities Offshore Santa Barbara County

1.4.3 COAST GUARD REGULATORY

AUTHORITY

Primary responsibility for the enforcement of

U.S. maritime laws and regulations in GOM waters

falls upon Coast Guard. The Coast Guard’s responsibilities for regulating activities on the OCS, the continental shelf, and in ports and harbors, as applicable

to the proposed action, are presented in Title 33 CFR,

chapters 1-199; Title 43 U.S.C. section 1331; Title 46

U.S.C., Part A and B; and OPA 90. The Coast Guard

is responsible for managing and regulating provisions

for safe navigation of vessels in U.S. waters, as well

as the enforcement of environmental and pollution

prevention regulations. As such, Coast Guard provides

for the regulation and enforcement of hazardous working conditions on the OCS, for the management and

regulation of measures for pollution prevention in territorial waters, and for ensuring that the provisions

of OPA 90 and the MPPRCA (i.e., MARPOL Annex V)

are implemented.

1.4.4 MEMORANDUM OF

UNDERSTANDING (MOU) BETWEEN

MMS AND COAST GUARD

On December 16, 1998, MMS and Coast Guard

updated and signed a Memorandum of Understanding

(MOU) concerning responsibilities for offshore facilities on the OCS. Given the overlap in jurisdictions of

MMS and Coast Guard regarding some issues, the

MOU delineates lead responsibilities for managing OCS

activities in accordance with OCSLA and OPA 90.

Because of jurisdictional overlap and the large

array of regulatory provisions pertaining to activities

on the OCS, MMS and Coast Guard have established

a formal Memorandum of Understanding (MOU) that

defines their respective roles. The MOU, dated August

1989 and updated December 1998 (and published in

the Federal Register on January 15, 1999), defines the

responsibilities of both agencies regarding the management of oil and gas activities in the OCS. The MOU

is designed to minimize duplication and promote consistent regulation of facilities under the jurisdiction

of both agencies.

The MOU assigns both agencies with responsibility for the various aspects of the design, implementation, and operation of OCS facilities. Generally, the

MOU identifies MMS as the lead agency for matters

concerning the equipment and operations directly involved in the production of oil and gas. These include

among others: design and operation of risers, permanent mooring foundations of the facility, drilling and

well production and services, inspection and testing

of all drilling-related equipment, and platform decommissioning. Issues regarding the safe operation of the

facility, its systems, and the equipment needed to support all operations on board generally fall under the

jurisdiction of Coast Guard. These include among others: design of vessels, their seakeeping characteristics, propulsion and dynamic positioning systems, supply and lightering procedures and equipment, utility

systems, safety equipment and procedures, and pollution prevention and response procedures.

Both agencies will continue to be responsible for

accident investigations and will coordinate to minimize duplication of efforts. For those incidents where

both agencies have an investigative interest in the

systems involved, one agency will assume lead investigative responsibility, with supporting participation

provided by the other agency.

1.4.5 MITIGATION MEASURES

In each OCS planning area, oil and gas exploration and development activities have the potential for

causing adverse environmental impacts.

Many measures have been implemented by the

MMS to “mitigate” or prevent and lessen possible impacts on environmental resources from both OCS and

non-OCS activities. Mitigating measures are protective measures designed to prevent adverse impacts and

to lessen and mitigate unavoidable impacts. The MMS

develops and administers these requirements, which

are part of the lease-term conditions at lease issuance.

In order to mitigate adverse environmental impacts for actions associated with a specific project (i.e.,

proposed plans for exploration, development, production, and site-clearance activities in an area located

on an OCS lease block), additional mitigation requirements may be necessary. Conditions of plan approval

are mechanisms determined by MMS to control or

mitigate potential environmental or safety problems

that are associated with a specific proposal. Special

stipulations that limit operations are in addition to

the lease-term stipulations. During the life of the action, these protective measures are specific to the individual activities proposed in a plan and are imposed

following environmental reviews (according to the

NEPA) of the OCS lease location and potential resources.

Lease-Term Stipulations

Some of these protective measures are developed

and applied to specific blocks in a planning area before leasing a block and are based on the following:

• existing policies and laws;

• knowledge of the resources present in the planning area where the block is being offered for

lease by the MMS; and

• current industry practices.
A1-31

Appendix for Chapter 1

If a block is leased as a result of a lease sale,

these protective measures are identified as lease-term

stipulations and are attached to and become part of

the lease and its conditions. These stipulations are

designed to protect potentially sensitive resources in

the affected block and to reduce possible multiple-use

conflicts and are the requirements that the lessee must

meet to mitigate adverse impacts. They also may be

considered to apply to all activities that occur on the

leased area throughout the life of the lease.

This EIS evaluates impacts of the proposal, delineation drilling, and cumulative impacts including

development of the 36 undeveloped leases. The 36 undeveloped leases include the leases proposed for delineation drilling. The 36 undeveloped leases resulted from

Lease Sales P4, 48, 53, 68, RS-2, and 80. The following lease-term stipulations apply, as appropriate, to

the 36 undeveloped leases and, as such, are considered as part proposal for delineation drilling and future development.

Stipulations for Lease Sales, P4, 48, 53, 68,

RS-2, 80

Sale P4 Stipulation No. 1

The lessee, recognizing that mineral explorations

and exploitation and recovery operations on the leased

areas of tide and submerged lands can impede tactical

military operations, hereby recognizes and agrees that

the United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel, will come into effect upon the

order of the Air Force Western Test Range Safety Officer, or higher authority, that national security interests necessitates such action. It is understood that

any temporary suspension of operations ordered by

said official may not exceed 72 hours, however, any

suspension may be extended by order of the Secretary

of Defense. During such periods equipment may remain in place.

Sale P4 Stipulation No. 2

The lessee assumes all risk of damage or injury

to any person or persons who are the agents, employees, or invitees of the lessee, its agents, subcontractors or any independent contractor doing business with

the lessee in connection with any activities being performed by the lessee on the leased premises, and of

any damage to any property of the lessee, its agents,

employees, invitees, subcontractors or independent

contractors doing business with the lessee and which

occurs on the leased premises, and which injury to

such person or property occurs by reason of the activities of any agency of the U.S. Government being

conducted as a part of or in connection with the programs and activities of the Air Force Western Test

Range, whether such injury or damage is caused in

whole or in part by any act or omission, regardless of

negligence or fault, of the United States or its contractors, or any of their officers, agents or employees,

and whether or not based upon any concept of strict

or absolute liability or otherwise; and the lessee agrees

to indemnify and save harmless the United States

against, and to defend at its own expense, all such

claims for loss, damage, or injury sustained by the

lessee, its agents, employees, invitees, subcontractors,

or any independent contractors doing business with

the lessee in connection with its activities on the leased

premises, or their agents or employees, which such

claims may arise by reason of injury or damage occurring in connection with the programs and activities of

the said Air Force Western Test Range, whether the

same be caused in whole or in part, by the negligence

or fault of the United States or its contractors or any

of their officers, agents, and employees, or based upon

any concept of strict liability or otherwise.

Sale 48 Stipulation No. 1-A

(a) The lessee agrees that prior to operating or

causing to be operated on its behalf boat or aircraft

traffic into individual, designated warning areas, the

lessee shall coordinate and comply with instructions

from the Commander, Space and Missile Test Center

(SAMTEC) and the Commander, Pacific Missile Test

Center (PMTC), or other appropriate military agency.

Such coordination and instruction will provide for

positive control of boats and aircraft operating into

the warning areas at all times.

(b) The lessee, recognizing that mineral exploration and exploitation and recovery operations on the

leased areas of submerged lands can impede tactical

military operations, hereby recognizes and agrees that

the United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel, and appropriate sheltering

of personnel not evacuated (an appropriate shelter

shall mean the protection of all lessee personnel for

the entire duration of any Department of Defense activity from flying or falling objects or substances), will

come into effect upon the order of the Supervisor, after consultation with the Commander, Space and Missile Test Center (SAMTEC) and the Commander, Pacific Missile Test Center (PMTC), or other appropriate military agency, or higher authority, when national

security interests necessitate such action. It is understood that any temporary suspension of operations for
A1-32

Delineation Drilling Activities Offshore Santa Barbara County

national security may not exceed seventy-two hours;

however, any such suspension may be extended by

order of the Supervisor. During such periods equipment may remain in place.

(c) The lessee agrees to control his own electromagnetic emissions and those of his agents, employees, invitees, independent contractors or subcontractors emanating from individual, designated defense

warning areas in accordance with requirements specified by the Commander, Space and Missile Test Center

(SAMTEC) and the Commander, Pacific Missile Test

Center (PMTC), or other appropriate military agency,

to the degree necessary to prevent damage to, or unacceptable interference with, Department of Defense

flight, testing or operational activities conducted

within individual, designated warning areas. Necessary monitoring, control, and coordination with the

lessee, his agents, employees, invitees, independent

contractors or subcontractors, will be effected by the

Commander of the appropriate onshore military installation conducting operations in the particular

warning area: Provided, however, that control of such

electromagnetic emissions shall permit at least one

continuous channel of communication between a lessee, its agents, employees, invitees, independent contractors or subcontractors and onshore facilities.

Sale 48 Stipulation No. 1-B

(a) The lessee agrees that prior to operating or

causing to be operated on its behalf boat or aircraft

traffic into individual, designated warning areas, the

lessee shall coordinate and comply with instructions

from the Commander, Space and Missile Test Center

(SAMTEC) and the Commander; the Commander, Pacific Missile Test Center (PMTC); and the Commander,

Fleet Area Control and Surveillance Facility

(FACSFAC), or other appropriate military agency. Such

coordination and instruction will provide for positive

control of boats and aircraft operating into the warning areas at all times.

(b) The lessee, recognizing that mineral exploration and exploitation and recovery operations on the

leased areas of submerged lands can impede tactical

military operations, hereby recognizes and agrees that

the United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel, and appropriate sheltering

of personnel not evacuated (an appropriate shelter

shall mean the protection of all lessee personnel for

the entire duration of any Department of Defense activity from flying or falling objects or substances), will

come into effect upon the order of the Supervisor, after consultation with the Commander, Space and Missile Test Center (SAMTEC); the Commander, Pacific

Missile Test Center (PMTC); and the Commander,

Fleet Area Control and Surveillance Facility

(FACSFAC), or other appropriate military agency, or

higher authority, when national security interests

necessitate such action. It is understood that any temporary suspension of operations for national security

may not exceed seventy-two hours; however, any such

suspension may be extended by order of the Supervisor. During such periods equipment may remain in

place.

(c) The lessee agrees to control his own electromagnetic emissions and those of his agents, employees, invitees, independent contractors or subcontractors emanating from individual, designated defense

warning areas in accordance with requirements specified by the Commander, Space and Missile Test Center

(SAMTEC); the Commander, Pacific Missile Test Center (PMTC); and the Commander, Fleet Area Control

and Surveillance Facility (FACSFAC) or other appropriate military agency, to the degree necessary to prevent damage to, or unacceptable interference with,

Department of Defense flight, testing or operational

activities conducted within individual, designated

warning areas. Necessary monitoring, control, and

coordination with the lessee, his agents, employees,

invitees, independent contractors or subcontractors,

will be effected by the Commander of the appropriate

onshore military installation conducting operations

in the particular warning area: Provided, however,

that control of such electromagnetic emissions shall

permit at least one continuous channel of communication between a lessee, its agents, employees, invitees,

independent contractors or subcontractors and onshore facilities.

Sale 48 Stipulation No. 2

Whether or not compensation for such damage

or injury might be due under a theory of strict or absolute liability or otherwise, the lessee assumes all risks

of damage or injury to persons or property, which occurs in, on, or above the Outer Continental Shelf, to

any person or persons or to any property of any person or persons who are agents, employees or invitees

of the lessee, its agents, independent contractors or

subcontractors doing business with the lessee in connection with any activities being performed by the lessee in, on, or above the Outer Continental Shelf, if

such injury or damage to such person or property occurs by reason of the activities of any agency of the

U.S. Government, its contractors, or subcontractors,

or any of their officers, agents or employees, being

conducted as a part of, or in connection with, the programs and activities of the Space and Missile Test Center (SAMTEC), the Pacific Missile Test Center (PMTC),

or other appropriate military agency.
A1-33

Appendix for Chapter 1

Not withstanding any limitations of the lessee’s

liability in section 14 of the lease, the lessee assumes

the risk whether such injury or damage is caused in

whole or in part by any act or omission, regardless of

negligence or fault, of the United States, its contractors or subcontractors, or any of their officers, agents,

or employees. The lessee further agrees to indemnify

and save harmless the United States against all claims

for loss, damage, or injury sustained by the lessee,

and to indemnify and save harmless the United States

against all claims for loss, damage, or injury sustained

by the agents, employees, or invitees of the lessee, its

agents or any independent contractors or subcontractors doing business with the lessee in connection with

the programs and activities of the aforementioned military installations and agencies, whether the same be

caused in whole or in part by the negligence or fault

of the United States, its contractors, or subcontractors, or any of their officers, agents, or employees and

whether such claims might be sustained under theories of strict or absolute liability or otherwise.

Sale 48 Stipulation No. 3

If the Supervisor., having reason to believe that

a site, structure or object of historical or archaeological significance, hereinafter referred to as a “cultural

resource,” may exist in the lease area, gives the lessee

written notice that the lessor is invoking the provisions of this stipulation, the lessee shall upon receipt

of such notice comply with the following requirements:

Prior to any drilling activity or the construction

or placement of any structure for exploration or development on the lease, including but not limited to,

well drilling and pipeline and platform placement, hereinafter in this stipulation referred to as “operation,”

the lessee shall conduct remote sensing surveys to

determine the potential existence of any cultural resource that may be affected by such operations. All

data produced by such remote sensing surveys as well

as other pertinent natural and cultural environmental data shall be examined by a qualified marine survey archaeologist to determine if indications are

present suggesting the existence of a cultural resource

that may be adversely affected by any lease operation.

A report of this survey and assessment prepared by

the marine survey archaeologist shall be submitted by

the lessee to the Supervisor and the Manager, Bureau

of Land Management (BLM), Outer Continental Shelf

(OCS) Office for review.

If such cultural resource indicators are present

the lessee shall (1) locate the site of such operation so

as not to adversely affect the identified location; or (2)

establish, to the satisfaction of the Supervisor, on the

basis of further archaeological investigation conducted

by a qualified marine survey archaeologist or underwater archaeologist using such survey equipment and

techniques as deemed necessary by the Supervisor, either that such operation shall not adversely affect the

location identified or that the potential cultural resource suggested by the occurrence of the indicators

does not exist.

A report of this investigation prepared by the

marine survey archaeologist or underwater archaeologist shall be submitted to the Supervisor and the

Manager, BLM OCS Office for their review. Should

the Supervisor determine that the existence of a cultural resource which may be adversely affected by such

operation is sufficiently established to warrant protection, the lessee shall take no action that may result in

an adverse effect on such cultural resource until the

Supervisor has given directions as to its preservation.

The lessee agrees that if any site, structure, or

object of historical or archaeological significance should

be discovered during the conduct of any operations on

the leased area, he shall report immediately such findings to the Supervisor and make every reasonable effort to preserve and protect the cultural resource from

damage until the Supervisor has given directions as

to its preservation.

Sale 48 Stipulation No. 4

(a) Wells: Subsea well-heads and temporary abandonments, or suspended operations that leave protrusions above the sea floor, shall be protected, if feasible, by a shroud which will allow commercial trawl

gear to pass over the structure without snagging or

otherwise damaging the structure or the fishing gear.

Latitude and longitude coordinates of these structures

along with water depths, shall be submitted to the

Supervisor. The coordinates of such structures will be

determined by the lessee utilizing state-of-the-art navigation systems with accuracy of at least “ 50 feet (15.25

meters) at 200 miles (322 kilometers).

(b) Pipelines: All pipelines, unless buried, including gathering lines, shall have a smooth-surface design. In the event that an irregular pipe surface is

unavoidable due to the need for valves, anodes or other

structures, they shall be protected by shrouds which

will allow trawl gear to pass over the object without

snagging or otherwise damaging the structure or the

fishing gear.

Sale 48 Stipulation No. 5

(a) If the Supervisor has reason to believe that

areas of special biological interest in the lease area

contain biological communities or species of such extraordinary or unusual value (even though

unquantifiable) that no threat of damage, injury, or

other harm to the community or species would be acceptable, he shall give the lessee written notice that

the lessor is invoking the provisions of this stipula-
A1-34

Delineation Drilling Activities Offshore Santa Barbara County

tion and the lessee shall comply with the following

requirements: Prior to any drilling activity or the construction or placement of any structure for exploration or development on lease areas including, but not

limited to, well drilling and pipeline and platform placement, hereinafter referred to as “operation,” the lessee shall conduct site specific surveys as approved by

the Supervisor and in accordance with prescribed biological survey requirements to determine the existence

of any special biological resource including, but not

limited to:

(1) Very unusual, rare, or uncommon ecosystems

or ecotones.

(2) A species of limited regional distribution that

may be adversely affected by any lease operations

If the results of such surveys suggest the existence of a special biological resource that may be adversely affected by any lease operation, the lessee shall:

(1) relocate the site of such operation so as not to

adversely affect the resources identified; (2) establish

to the satisfaction of the Supervisor, on the basis of

the site-specific survey, either that such operation will

not have a significant adverse effect upon the resource

identified or that a special biological resource does not

exist. The Supervisor will review all data submitted

and determine, in writing,.whether a special biological resource exists or may be significantly affected by

lessee’s operations. The lessee may take no action until

the Supervisor has given the lessee written directions

on how to proceed.

(b) The lessee agrees that if any area of biological significance should be discovered during the conduct of any operations on the leased area, he shall

report immediately such findings to the Supervisor,

and make every reasonable effort to preserve and protect the biological resource from damage until the Supervisor has given the lessee directions with respect

to its protection.

Sale 48 Stipulation No. 6

(a) Pipelines will be required, (1) if pipeline rightsof-way can be determined and obtained, (2) if laying of

such pipelines is technologically feasible and environmentally preferable, and (3) if, in the opinion of the

lessor, pipelines can be laid without net social loss,

taking into account any incremental costs of pipelines

over alternative methods of transportation and any

incremental benefits in the form of increased environmental protection or reduced multiple use conflicts.

The lessor specifically reserves the right to require

that any pipeline used for transporting production to

shore be placed in certain designated management areas. In selecting the means of transportation, consideration will be given to any recommendation of the

intergovernmental planning program for leasing and

management of transportation of Outer Continental

Shelf oil and gas with the participation of Federal,

State, and local government and the industry. Where

feasible, and environmentally preferable, all pipelines,

including both flow lines and gathering lines for oil

and gas, shall be buried to a depth suitable for adequate protection from water currents, sand waves,

storm scouring, fisheries’ trawling gear, and other uses

as determined on a case-by-case basis.

(b) Following the completion of pipeline installation, no crude oil production will be transported by

surface vessel from offshore production sites, except

in the case of emergency. Determinations as to emergency conditions and appropriate responses to these

conditions will be made by the Supervisor. Where the

three criteria set forth in the first sentence of this stipulation are not met and surface transportation must be

employed, all vessels used for carrying hydrocarbons

to shore from the leased area will conform with all

standards established for such vessels, pursuant to

the Ports and Waterways Safety Act of 1972 (46 U.S.

C., 391a), as amended.

Sale 48 Stipulation No. 7

Exploratory drilling operations, emplacement of

structures (platforms) or seafloor wellheads for production or storage of oil or gas, and the emplacement

of pipelines will not be allowed within the potentially

unstable portions of the lease block unless or until

the lessee has demonstrated to the Supervisor’s satisfaction that mass movement of sediments is unlikely

or that exploratory drilling operations, structures

(platforms), casing, wellheads, and pipelines can be

safely designed to protect the environment in case such

mass movement or faulting occurs at the proposed location. If exploratory drilling operations are allowed,

site-specific surveys shall be conducted to determine

the potential for mass movement of sediments. If emplacement of structures (platforms) or seafloor wellheads for production or storage of oil or gas is allowed

all potential mass movement of sediments in the lease

block must be mapped. Down-hole pressure actuated

control devices must be located below the base of the

potentially unstable sediments located in the area in

order to protect the environment in case such mass

movement occurs at the proposed location. This may

necessitate all exploration for and development of oil

and gas be performed from locations outside of the

area of instability, either within or outside of this lease

block.
A1-35

Appendix for Chapter 1

Sale 48 Stipulation No. 8

(a) The royalty rate on production saved, removed, or sold from this lease is subject to consideration for reduction under the same authority that applies to all other oil and gas leases on the Outer Continental Shelf (30 CFR 250.12(a)). The Director, Geological Survey, may grant a reduction for only one year

at a time. Reduction of royalty rates will not be approved unless production has been underway for one

year or more.

(b) Although the royalty rate specified in Sec.6(a)

of this lease or as subsequently modified in accordance

with applicable regulations and stipulations is applicable to all production under this lease, not more than

16 2/3 percent of the production saved, removed, or

sold from the lease area may be taken as royalty in

amount, except as provided in sec. 15 (d) of this lease;

the royalty on any portion of the production saved,

removed, or sold from the lease in excess of 16 2/3

percent may only be taken in value of the production

saved, removed, or sold from the lease area.

Sale 48 Stipulation No. 9

To be Included in any leases resulting from this

sale for the sliding scale royalty tracts listed in paragraph 4 of this notice.

(a) The royalty rate on production saved, removed or sold from this lease is subject to consideration for reduction under the same authority that applies to all other oil and gas leases on the Outer Continental Shelf (30 CFR 250.12 (a)). The Director, Geological Survey, may grant a reduction for only one year

at a time. Reduction of royalty rates will not be approved unless production has been underway for one

year or more.

(b) Although the royalty rate specified in Sec.

6(a) of this lease or as subsequently modified in accordance with applicable regulations and stipulations is

applicable to all production under this lease, not more

than 16 2/3 percent of the production saved, removed

or sold from the lease area may be taken as royalty on

any portion of the production saved, removed or solved

from the lease in excess of 16 2/3 percent may only be

taken in value of the production saved, removed or

sold from the lease area.

Sale 48 Stipulation No. 13

No producing well may be drilled so that the well

bore in the producing intervals is closer than 500 feet

to the seaward boundary of the. State except that the

500 feet constraint shall not apply:

(a) If oil or gas pools or fields underlying both

the Outer Continental Shelf and lands subject to the

jurisdiction of California are included in a production

unit entered into by the relevant lessees and approved

by the lessors.

(b) If, in the absence of a production unit as described in (a) above, the State of California permits

production from State lands from a point closer than

500 feet from the Federal-State boundary. In the event

that such production from State lands does occur, the

Federal lessee shall be allowed to produce from offset

wells equally close to the boundary in the area of Federal jurisdiction.

Sale 53 Stipulation No. 1

(a) If the DCMOFO has reason to believe that

biological populations or habitats exist and require

protection, he shall give the lessee notice that the lessor is invoking the provisions of this stipulation and

the lessee shall comply with the following requirements.

Prior to any drilling activity or the construction or

placement of any structure for exploration or development on lease areas including, but not limited to, well

drilling and pipeline and platform placement hereinafter referred to as “operation,”’ the lessee shall conduct site-specific surveys as approved by the DCMOFO

and in accordance with prescribed biological survey

requirements to determine the existence of any special

biological resource including, but not limited to:

(1) Very unusual, rare, or uncommon ecosystems

or ecotones.

(2) A species of limited regional distribution that

may be adversely affected by any lease operations.

If the results of such surveys suggest the existence of a special biological resource that may be adversely affected by any lease operation, the lessee shall:

(1) relocate the site of such operation so as not to

adversely affect the resources identified; or (2) establish to the satisfaction of the DCMOFO, on the basis

of the site-specific survey, either that such operation

will not have a significant adverse effect upon the resource identified or that a special biological resource

does not exist. The DCMOFO will review all data submitted and determine, in writing, whether a special

biological resource exists and whether it may be significantly affected by the lessee’s operations. The lessee may take no action until the DCMOFO has given

the lessee written directions on how to proceed.

(b) The lessee agrees that if any area of biological significance should be discovered during the conduct of any operations on the leased area, he shall

report immediately such findings to the DCMOFO, and

make every reasonable effort to preserve and protect

the biological resource from damage until the DCMOFO

has given the lessee directions with respect to its protection.
A1-36

Delineation Drilling Activities Offshore Santa Barbara County

Sale 53 Stipulation No. 2

If the DCMOFO, having reason to believe that a

site, structure or object of historical or archaeological significance, hereinafter referred to as a “cultural

resource,” may exist in the lease area, gives the lessee

written notice that the lessor is invoking the provisions of this stipulation, the lessee shall upon receipt

of such notice comply with the following requirements.

Prior to any drilling activity or the construction

or placement of any structure for exploration or development on the lease, including but not limited to,

well drilling and pipeline and platform placement, hereinafter in this stipulation referred to as “operation,”’

the lessee shall conduct remote sensing surveys to

determine the potential existence of any cultural resource that may be affected by such operations. All

data produced by such remote sensing surveys as well

as other pertinent natural and cultural environmental data shall be examined by a qualified marine survey archaeologist to determine if indications are

present suggesting the existence of a cultural resource

that may be adversely affected by any lease operation.

A report of this survey and assessment prepared by

the marine survey archaeologist shall be submitted by

the lessee to the DCMOFO and the Manager for review.

If such cultural resource indicators are present

the lessee shall: (1) locate the site of such operation

so as not to adversely affect the identified location; or

(2) establish, to the satisfaction of the DCMOFO, on

the basis of further archaeological investigation conducted by a qualified marine survey archaeologist or

underwater archaeologist using such survey equipment and techniques as deemed necessary by the

DCMOFO, either that such operation shall not adversely affect the location identified or that the potential cultural resource suggested by the occurrence of

the indicators does not exist.

A report of this investigation prepared by the

marine survey archaeologist ,or underwater archaeologist shall be submitted to the DCMOFO and the

Manager for their review. Should the DCMOFO determine that the existence of a cultural resource which

may be adversely affected by such operation is sufficiently established to warrant protection, the lessee

shall take no action that may result in an adverse

effect on such cultural resource until the DCMOFO

has given directions as to its preservation.

The lessee agrees that if any site, structure, or

object of historical or archaeological significance should

be discovered during the conduct of any operations on

the leased area, he shall report immediately such findings to the DCMOFO and make every reasonable effort to preserve and protect the cultural resource from

damage until the DCMOFO has given directions as to

its preservation.

Sale 53 Stipulation No.3

(a) Exploratory drilling operations, emplacement

of structures (platforms) or seafloor wellheads for production or storage of oil or gas or , and the emplacement of pipelines will not be allowed within the potentially unstable portions of this lease block unless or

until the lessee has demonstrated to the DCMOFO’s

satisfaction that mass movement of sediments is unlikely or that exploratory drilling operations, structures (platforms), casing, wellheads and pipelines can

be safely designed to protect the environment in case

such mass movement occurs at the proposed location.

This may necessitate that all exploration for and development of oil or gas be performed from locations

outside of the area of unstable sediments, either within

or outside of this lease block.

If exploratory drilling operations are allowed,

site-specific surveys shall be conducted to determine

the potential for unstable bottom conditions. If emplacement of structures (platforms) or seafloor wellheads for production or storage of oil or gas are allowed, all such unstable areas must be mapped. The

DCMOFO may also require soil testing before exploration and production operations are allowed.

(b) Exploratory drilling operations, emplacement

of structures (platforms) or seafloor wellheads for production or storage of oil or gas or emplacement of pipelines will not be allowed within the potentially unstable portions of this lease block unless or until the

lessee has demonstrated to the DCMOFO’s satisfaction that exploratory drilling operations, structures

(platforms), casing, wellheads and pipelines can be

safely designed to protect the environment at the proposed location. This may necessitate that all exploration for and development of oil or gas be performed

from locations outside of the area of submarine canyons or channels, either within or outside of this lease

block.

If exploratory drilling operations are allowed,

site-specific surveys shall be conducted to determine

the potential for unstable bottom conditions. If emplacement of structures (platforms) or seafloor wellheads for production or storage of oil or gas are allowed, all such unstable areas must be mapped. The

DCMOFO may also require soil testing before exploration and production n operations are allowed.

(c) Exploratory drilling operations, emplacement

of structures (platforms) or seafloor wellheads for production or storage of oil or gas and emplacement of

pipelines will not be allowed in the vicinity of a fault

until the lessee has demonstrated to the DCMOFO’s

satisfaction that exploratory drilling operations, structures (platforms), casing, wellheads and pipelines can

be safely designed to protect the environment at the

proposed location. This may necessitate that all exploration for and development of oil or gas be performed
A1-37

Appendix for Chapter 1

from locations outside of the area of potential fault

movement, either within or outside of this lease block.

If exploratory drilling operations are allowed,

site-specific surveys shall be conducted to determine

the potential for active faulting. If emplacement of

structures (platforms) or seafloor wellheads for production or storage of oil or gas are allowed, all fault

zones must be mapped. The DCMOFO may also require soil testing before exploration and production

operations are allowed.

Sale 53 Stipulation No. 4

(a) The lessee agrees that prior to operating or

causing to be operated on its behalf boat or aircraft

traffic into individual, designated warning areas, the

lessee shall coordinate and comply with instructions

from the Commander, Western Space and Missile Center (WSMC), the Commander, Pacific Missile Test Center (PMTC), and the Commander, Fleet Area Control

and Surveillance Facility (FACSFAC), or other appropriate military agency. Such coordination and instruction will provide for positive control of boats and aircraft operating in the warning areas at all times.

(b) The lessee, recognizing that mineral exploration and exploitation and recovery operations of the

leased areas of submerged lands can impede tactical

military operations, hereby recognizes and agrees that

the United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel, and appropriate sheltering

of personnel not evacuated (an appropriate shelter

shall mean the protection of all lessee personnel for

the entire duration of any Department of Defense activity from flying or falling objects or substances), will

come into effect upon the order of the DCMOFO, after

consultation with the Commander, Western Space and

missile Center (WSMC), the Commander, Pacific Missile Test Center (PMTC), and the Commander, Fleet

Area Control and Surveillance Facility (FACSFAC) or

other appropriate military agency or higher authority, when national, security interested necessitate such

action. It is understood that any temporary suspension of. operations for national security may not exceed seventy-two hours; however, any such suspension may be extended by order of the DCMOFO. During such periods equipment may remain in place.

(c) The lessee agrees to control his own electromagnetic emissions and those of his agents, employees, invitee, independent contractors or subcontractors emanating from individual, designated defense

warning areas in accordance with requirements specified by the Commander, Western Space and Missile

Center (WSMC), the Commander, Pacific Missile Test

Center (PMTC), or other appropriate military agency,

to the degree necessary to prevent damage to, or unacceptable interference with Department of Defense

flight, testing of operations activities conducted within

individual, designated warning areas. Necessary monitoring, control, and coordination with the lessee, his

agents, employees, invitee, independent contractors or

subcontractors, will be effected by the Commander of

the appropriate onshore military installation conducting operations in the particular warning area: provided, however, that control of such electromagnetic

emissions shall permit at least one continuous channel of communication between a lessee, its agents,

employees, invitee, independent contractors or subcontractors and onshore facilities.

Sale 53 Stipulation No. 5

Whether or not compensation for such damage

or injury might be due under a theory of strict or absolute liability or otherwise, the lessee assumes all risks

of damage or injury to persons or Property, which occurs in, on, or above the Outer Continental Shelf , to

any person or persons or to any property of any person or persons who are agents, employees or invitee

of the lessee, its agents, independent contractors or

subcontractors doing business with the lessee in connection with any activities being performed by the lessee in, on, or above the Outer Continental Shelf, if

such injury or damage to such person or property occurs by reason of the activities of any agency of the

U.S. Government, its contractors, or subcontractors,

or any of their officers, agents or employees, being

conducted as a part of, or in connection with, the programs and activities of the Western Space and Missile

Center (WSMC), the Pacific Missile Test Center

(PMTC), or other appropriate military agency.

Notwithstanding any limitations of the lessee’s

liability in section 14 of the lease, the lessee assumes

the risk whether such injury or damage is caused in

whole or in part by any act or omission, regardless of

negligence or fault, of the United States, its contractors or subcontractors, or any of their officers, agents,

or employees. The lessee further agrees to indemnify

and save harmless the United States against all claims

for loss, damage, or injury sustained by the lessee,

and to indemnify and save harmless the United States

against an claims for loss, damage, or injury sustained

by the agents, employees, or invitee of the lessee, its

agents or any independent contractors or subcontractors doing business with the lessee in connection with

the programs and activities of the aforementioned

military installations and agencies, whether the same

be caused in whole or in part by the negligence or

fault of the United States, its contractors, or subcontractors, or any of their officers, agents, or employees

and whether such claims might be sustained under

theories of strict or absolute liability or otherwise.
A1-38

Delineation Drilling Activities Offshore Santa Barbara County

Sale 53 Stipulation No. 6

(a) Pipelines will be required: (1) if pipeline rightsof-way can be determined and obtained; (2) if laying of

such pipelines is technologically feasible and environmentally preferable; and (3) if, in the opinion of the

lessor, pipelines can be laid without net social loss,

taking into account any incremental costs of pipelines

over alternative methods of transportation and any

incremental benefits in the form of increased environmental protection or reduced multiple use conflicts.

The lessor specifically reserves the right to require

that any pipeline used for transporting production to

shore be placed in certain designated management areas. In selecting the means of transportation, consideration win be given to any recommendation of the

intergovernmental planning program for assessment

and management of transportation of Outer Continental Shelf oil and gas with the participation of Federal,

State, and local governments and the industry.

(b) Following the completion of pipeline installation, no crude oil production will be transported by

surface vessel from offshore production sites, except

in the case of emergency. Determinations as to emergency conditions and appropriate responses to these

conditions will be made by the DCMOFO.

(c) Where the three criteria set forth in the first

sentence of this stipulation are not met and surface

transportation must be employed, all vessels used for

carrying hydrocarbons to shore from the leased area

will conform with all standards established for such

vessels, pursuant to the Port and Tanker Safety Act of

1978 (PL 95-474).

Sale 53 Stipulation No. 7

(a) Wells. Subsea wellheads and temporary abandonments, To suspended operations hat leave protrusions above the seafloor, shall be protected, feasible,

in such a manner as to allow commercial trawling gear

to pass over the structure without snagging or otherwise damaging the structure or the fishing gear. Latitude and longitude coordinates of these structures,

along with water depths, shall be submitted to the

DCMOFO. The coordinates of such structures will be

determined by the lessee utilizing state-of-the-art navigation systems with accuracy of at least +/-50 feet

(15.25 meters) at 200 miles (322 kilometers).

(b) Pipelines. All pipelines, unless buried, including gathering lines, shall have a smooth surface design. In the event that an irregular pipe surface is

unavoidable due to the need for valves, anodes or other,

structures, those irregular surfaces shall be protected

in such a manner as to allow trawling gear to pass

over the object without snagging or otherwise damaging the structure or the fishing gear.

Sale 53 Stipulation No. 8

The lessee shall include in his exploration and

development plans. submitted under 30 CFR 250.34, a

proposed fisheries training program for review and

approval by the DCMOFO. The training program shall

be for the personnel involved in vessel operations (related to offshore exploration and development and production operations), and platform and shore-based

supervisors. The purpose of the training program shall

be to familiarize persons working on the project of the

value of the commercial fishing industry, the methods

of offshore fishing operations, the potential conflicts

between fishing operations and offshore oil and gas

activities, the locations of marine mammal and bird

rookery sites in the area, the seasonal abundance and

sensitivities of these animals to disturbance, and the

Federal laws that have been established to protect endangered and threatened species from harassment and

injury. The program shall be formulated and implemented by qualified instructors.

Sale 53 Stipulation No. 9

(a) The royalty rate on production saved, removed or sold from this lease is subject to consideration for reduction under the same authority that applies to an other oil and gas leases on the Outer Continental Shelf (30 CFR 250.21). The Director, U.S. Geological Survey, may grant a reduction for only one year

at a time and reduction of royalty rates win not be

approved unless production has been underway for one

year or more.

(b) Although the royalty rate specified in section

6(a) of this lease or as subsequently modified in accordance with applicable regulations and stipulations is

applicable to all production under this lease, not more

than 16 2/3 percent of the production saved, removed

or sold from the lease area may be taken as royalty in

amount, except as provided in section 15 (d); the royalty on any portion of the production saved, removed

or sold from the lease in excess of 16 2/3 percent may

only be taken in value of the production saved, removed or sold from the lease area.

Sale 53 Stipulation No. 10

(1) No producing well may be drilled where the

well bore in the producing intervals is closer to the

seaward boundary of the State of California than the

distance agreed to between the State and the Department based on analysis of pertinent site-specific data,

except that in no event shall the agreed distance be

further than 750 feet from the seaward boundary of

the State. In the absence of an agreed distance, no

well shall be drilled closer than 500 feet to the seaward boundary of the State.
A1-39

Appendix for Chapter 1

(2) The constraint in paragraph (1) shall not apply:

(a) If oil or gas pools or fields underlying both

the outer Continental Shelf and lands subject to the

jurisdiction of California are included in a production

unit entered into by the relevant lessees and approved

by the lessors, or in a production unit entered into by

the Federal lessee and the State of California when it

is a carried, non-operating owner.

(b) If, in the absence of a production unit as described in (a) above, the State of California permits

production from State lands from a point closer than

750 feet from the Federal-State boundary. In the event

that such production from State lands does occur, the

Federal lessee shall be allowed to produce from offset

wells equally close to the boundary in the area of Federal jurisdiction.

Sale 68 Stipulation No. 1

(a) If the DMMOFO has reason to believe that

biological populations or habitats exist and require

protection, he shall give the lessee notice that the lessor is invoking the provisions of this stipulation and

the lessee shall comply with the following requirements.

Prior to any drilling activity or the construction or

placement of any structure for exploration or development on lease areas including, but not limited to, well

drilling and pipeline and platform placement, hereinafter referred to as “operation,” the lessee shall conduct site-specific surveys as approved by the DMMOFO

and in accordance with prescribed biological survey

requirements to determine the existence of any special

biological resource including, but not limited to:

(1) Very unusual, rare, or uncommon ecosystems

or ecotones.

(2) A species of limited regional distribution that

may be adversely affected by any lease operations

If the results of such surveys suggest the existence of a special biological resource that may be adversely affected by any lease operation, the lessee shall:

(1) relocate the site of such operation so as not to

adversely affect the resources identified; (2) establish

to the satisfaction of the DMMOFO on the basis of the

site-specific survey, either that such operation will not

have a significant adverse effect upon the resource identified or that a special biological resource does not exist.

The DMMOFO will review all data submitted and determine, in writing, whether a special biological resource exists and whether it may be significantly affected by lessee’s operations. The lessee may take no

action until the DMMOFO has given the lessee written directions on how to proceed.

(b) The lessee agrees that if any area of biological significance should be discovered during the conduct of any operations on the leased area, he shall

report immediately such findings to the DMMOFO,

and make every reasonable effort to preserve and protect the biological resource from damage until the

DMMOFO has given the lessee directions with respect

to its protection.

Sale 68 Stipulation No. 2

If the DMMOFO has reason to believe that a site,

structure, or object of historical or archaeological significance, hereinafter referred to as a “cultural resource,” may exist in the lease area, and gives the

lessee written notice that the lessor is invoking the

provisions of this stipulation, the lessee shall upon

receipt of such notice comply with the following requirements:

Prior to any drilling activity or the construction

or placement of any structure for exploration or development on the lease, including but not limited to,

well drilling and pipeline and platform placement, hereinafter in this stipulation referred to as “operation,”

the lessee shall conduct remote sensing surveys to

determine the potential existence of any cultural resource that may be affected by such operations. All

data produced by such remote sensing surveys as well

as other pertinent natural and cultural environmental data shall be examined by a qualified marine survey archaeologist to determine if indications are

present suggesting the existence of a cultural resource

that may be adversely affected by any lease operation.

A report of this survey and assessment prepared by

the marine survey archaeologist shall be submitted by

the lessee to the DMMOFO and the Manager for review.

If such cultural resource indicators are present

the lessee shall: (1) locate the site of such operation

so as not to adversely affect the identified location; or

(2) establish, to the satisfaction of the DMMOFO, on

the basis of further archaeological investigation conducted by a qualified marine survey archaeologist or

underwater archaeologist using such survey equipment and techniques as deemed necessary by the

DMMOFO, either that such operation shall not adversely affect the location identified or that the potential cultural resource suggested by the occurrence of

the indicators does not exist.

A report of this investigation prepared by the

marine survey archaeologist or underwater archaeologist shall be submitted to the DMMOFO and the

Manager for their review. Should the DMMOFO determine that the existence of a cultural resource which

may be adversely affected by such operation is sufficiently established to warrant protection, the lessee

shall take no action that may result in an adverse

effect on such cultural resource until the DMMOFO

has given directions as to its preservation.
A1-40

Delineation Drilling Activities Offshore Santa Barbara County

The lessee agrees that if any site, structure, or

object of historical or archaeological significance should

be discovered during the conduct of any operations on

the leased area, he shall report immediately such findings to the DMMOFO and make every reasonable effort to preserve and protect the cultural resource from

damage until the DMMOFO has given directions as,

to its preservation.

Sale 68 Stipulation No. 3

All or portion of this tract may contain mass

transport deposits, steep slopes, or active faulting.

Exploratory drilling operations, emplacement of structures (platforms) or seafloor wellheads for production

or storage of oil or gas, and the emplacement of pipelines will not be allowed within the potentially unstable portions of the lease block unless or until the

lessee has demonstrated to the DMMOFO’s satisfaction that mass transport of sediments is unlikely or

faulting is unlikely, or that exploratory drilling operations, structures (platforms), casing, wellheads, and

pipelines can be safely designed to protect the environment in case such mass transport or faulting occurs at the proposed location. This may necessitate

that all exploration for and development of oil and gas

be performed from locations outside of the area of instability, either within or outside of this lease block.

If exploratory drilling operations are allowed,

site-specific surveys shall be conducted to determine

the potential for faulting and mass transport of sediments. If emplacement of structures (platforms) or

seafloor wellheads for production or storage of oil or

gas is allowed, all active faults or mass transport deposits in the lease must be mapped. The DMMOFO

may also require soil testing before exploration and

production operations are allowed.

Sale 68 Stipulation No. 4

(a) The lessee agrees that prior to operating or

causing to be operated on its behalf boat or aircraft

traffic into individual, designated warning areas, the

lessee shall coordinate and comply with instructions

from the Commander, Western Space and Missile Center (WSMC), and the Commander, Pacific Missile Test

Center (PMTC), and the Commander, Fleet Area Control and Surveillance Facility (FACSFAC), or other

appropriate military agency. Such coordination and

instruction will provide for positive control of boats

and aircraft operating into the warning areas at all

times.

(b) The lessee, recognizing that mineral exploration and exploitation and recovery operations of the

leased areas of submerged lands can impede tactical

military operations, hereby recognizes and agrees that

the United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel, and appropriate sheltering

of personnel not evacuated (an appropriate shelter

shall mean the protection of all lessee personnel for

the entire duration of any Department of Defense activity from flying or falling objects or substances), will

come into effect upon the order of the DMMOFO, after

consultation with the Commander, Space and Missile

Test Center (WSMC), and the Commander, Pacific

Missile Test Center (PMTC), and the Commander,

Fleet Area Control and Surveillance Facility

(FACSFAC), or higher authority, when national security interests necessitate such action. It is understood that any temporary suspension of operations for

national security may not exceed seventy-two hours;

however, any such suspension may be extended by

order of the DMMOFO. During such periods equipment may remain in place.

(c) The lessee agrees to control his own electromagnetic emissions and those of his agents, employees, invitees, independent contractors or subcontractors emanating from individual, designated defense

warning areas in accordance with requirements specified by the Commander, Space and Missile Center

(WSMC), and the Commander, Pacific Missile Test

Center (PMTC), and the Commander, Fleet Area Control and Surveillance Facility (FACSFAC), or other

appropriate military agency, to the degree necessary

to prevent damage to, or unacceptable interference

with, Department of Defense flight, testing or operational activities conducted within individual, designated warning areas. Necessary monitoring, control,

and coordination with the lessee, his agents, employees, invitees, independent contractors or subcontractors, will be effected by the Commander of the appropriate onshore military installation conducting operations in the particular warning area: provided, however, that control of such electromagnetic emissions

shall permit at least one continuous channel of communication between a lessee, its agents, employees,

invitees, independent contractors or subcontractors

and onshore facilities.

Sale 68 Stipulation No. 5

Whether or not compensation for such damage

or injury might be due under a theory of strict or absolute liability or otherwise, the lessee assumes all risks

of damage or injury to persons or property, which occurs in, on, or above the Outer Continental Shelf, to

any person or persons or to any property of any person or persons who are agents, employees or invitees

of the lessee, its agents, independent contractors or

subcontractors doing business with the lessee in connection with any activities being performed by the lessee in, on, or above the Outer Continental Shelf, if
A1-41

Appendix for Chapter 1

such injury or damage to such person or property occurs by reason of the activities of any agency of the

U.S. Government, its contractors, or subcontractors,

or any of their officers, agents or employees, being

conducted as a part of, or in connection with, the programs and activities of the Western Space and Missile

Center (WSMC), the Pacific Missile Test Center

(PMTC), or other appropriate military agency.

Not withstanding any limitations of the lessee’s

liability in section 14 of the lease, the lessee assumes

the risk whether such injury or damage is caused in

whole or in part by any act or omission, regardless of

negligence or fault, of the United States, its contractors or subcontractors, or any of their officers, agents,

or employees. The lessee further agrees to indemnify

and save harmless the United States against all claims

for loss, damage, or injury sustained by the lessee,

and to indemnify and save harmless the United States

against all claims for loss, damage, or injury sustained

by the agents, employees, or invitees of the lessee, its

agents or any independent contractors or subcontractors doing business with the lessee in connection with

the programs and activities of the aforementioned military installations and agencies, whether the same be

caused in whole or in part by the negligence or fault

of the United States, its contractors, or subcontractors, or any of their officers, agents, or employees and

whether such claims might be sustained under theories of strict .or absolute liability or otherwise.

Sale 68 Stipulation No. 6

No structures or drilling rigs will be allowed

within portions of the tracts described below because

of Department of Defense activities.

Tract No. Restricted Portion

68-101 S 1⁄2 NE 1⁄4 SE 1⁄4

68-105 E 1⁄2 N 1⁄4

68-112 South and East of a Diagonal

line from NE corner to SW corner

68-125 South and East of a Diagonal line

from NE corner to SW corner

68-164 (35N3 6W only)

W 1⁄2 E 1⁄2 E 1⁄2, W 1⁄2 E 1⁄2,E 1⁄2

E 1⁄2 W 1⁄2 (Federal Portions only)

68-169 W 1⁄2 E1⁄2 NE 1⁄4, W 1⁄2 NE 1⁄4

68-204 NE 1⁄4

68-207 E 1⁄2

68-212 N 1⁄2

68-213 N 1⁄2

Sale 68 Stipulation No. 7

(a) Pipelines will be required: (1) if pipeline rightsof-way can be determined and obtained; (2) if laying of

such pipelines is technologically feasible and environmentally preferable; and (3) if, in the opinion of the

lessor, pipelines can be laid without net social loss,

taking into account any incremental costs of pipelines

over alternative methods of transportation and any

incremental benefits in the form of increased environmental protection or reduced multiple use conflicts.

The lessor specifically reserves the right to require

that any pipeline used for transporting production to

shore be placed in certain designated management areas. In selecting the means of transportation, consideration will be given to any recommendation of the

intergovernmental planning program for assessment

and management of transportation of Outer Continental Shelf oil and gas with the participation of Federal,

State, and local government and the industry.

(b) Following the development of sufficient pipeline capacity,. no crude oil production will be transported by surface vessel from offshore production sites,

except in the case of emergency. Determinations as to

emergency conditions and appropriate responses to

these conditions will be made by the DMMOFO.

(c) Where the three criteria set forth in the first

sentence of this stipulation are not met and surface

transportation must be employed, all vessels used for

carrying hydrocarbons to shore from the leased area

will conform with all standards established for such

vessels, pursuant to the Ports and Waterways Safety

Act of 1978 (46 U.S.C., 1221 et seq.), as amended.

Sale 68 Stipulation No. 8

(a) Wells. Subsea wellheads and temporary abandonments, or suspended operations that leave protrusions above the seafloor, shall be protected, if feasible

and as appropriate, in such a manner as to allow commercial fisheries trawling gear to pass over the structure without snagging or otherwise damaging the

structure or the fishing gear. Latitude and longitude

coordinates of these structures, along with water

depths, shall be submitted to the DMMOFO. The coordinates of such structures will be determined by the

lessee utilizing state-of-the-art navigation systems with

accuracy of at least “ 50 feet (15.25 meters) at 200

miles (322 kilometers).

(b) Pipelines. All pipelines, unless buried, including gathering lines, shall have a smooth-surface design. In the event that an irregular pipe surface is

unavoidable due to the need for valves, anodes or other

structures, it shall, be protected in such a manner as

to allow trawling gear to pass over the object without

snagging or otherwise damaging the structure or the

fishing gear.
A1-42

Delineation Drilling Activities Offshore Santa Barbara County

Sale 68 Stipulation No. 9

(1) No producing well may be drilled where the

well bore in the producing intervals is closer

to the seaward boundary of the State of California based on analysis of pertinent site-specific data, except that in no event shall the

agreed distance be further than 750 feet from

the seaward boundary of the State. In the absence of an agreed distance, no well shall be

drilled closer than 500 feet from the seaward

boundary of the State.

(2) The constraint in paragraph (1) shall not apply:

(a) If oil or gas pools or fields underlying both

the outer Continental Shelf and lands subject to the

jurisdiction of California are included in a production

unit entered into by the relevant lessees and approved

by the lessors, or in a production unit entered into by

the Federal lessee and the State of California when it

is carried, nonoperating owner.

(b) If, in the absence of a production unit as described in (a) above, the State of California permits

production from State lands from a point closer than

750 feet from the Federal-State boundary. In the event

that such production from State lands does occur, the

Federal lessee shall be allowed to produce from offset

wells equally close to the boundary in the area of Federal jurisdiction.

Sale RS-2 Stipulation No. 1

If the DMMOFO has reason to believe that a site,

structure, or object of historical or archaeological significance, hereinafter referred to as a “cultural resource,” may exist in the lease area, and gives the

lessee written notice that the lessor is invoking the

provisions of this stipulation, the lessee shall upon

receipt of such notice comply with the following requirements:

Prior to any drilling activity or the construction

or placement of any structure for exploration or development on the lease, including but not limited to,

well drilling and pipeline and platform placement, hereinafter in this stipulation referred to as “operation,”

the lessee shall conduct remote sensing surveys to

determine the potential existence of any cultural resource that may be affected by such operations. All

data produced by such remote sensing surveys as well

as other pertinent natural and cultural environmental data shall be examined by a qualified marine survey archaeologist to determine if indications are

present suggesting the existence of a cultural resource

that may be adversely affected by any lease operation.

A report of this survey and assessment prepared by

the marine survey archaeologist shall be submitted by

the lessee to the DMMOFO and the Manager for review.

If such cultural resource indicators are~present

the lessee shall: (1) locate the site of such operation

so as not to adversely affect the identified location; or

(2) establish, to the satisfaction of the DMMOFO, on

the basis of further archaeological investigation conducted by a qualified marine survey archaeologist or

underwater archaeologist using such survey equipment and techniques as deemed necessary by the

DMMOFO, either that such operation shall not adversely affect the location identified or that the potential cultural resource suggested by the occurrence of

the indicators does not exist.

A report of this investigation prepared by the

marine survey archaeologist or underwater archaeologist shall be submitted to the DMMOFO and the

Manager for their review. Should the DMMOFO determine that the existence of a cultural resource which

may be adversely affected by such operation is sufficiently established to warrant protection, the lessee

shall take no action that may result in an adverse

effect on such cultural resource until the DMMOFO

has given directions as to its preservation.

The lessee agrees that if any site, structure, or

object of historical or archaeological significance should

be discovered during the conduct of any operations on

the leased area, he shall report immediately such findings to the DMMOFO and make every reasonable effort to preserve and protect the cultural resource from

damage until the DMMOFO has given directions as to

its preservation.

Sale RS-2 Stipulation No. 2

(a) If the DMMOFO has reason to believe that

biological populations or habitats exist and require

protection, he shall give the lessee notice that the lessor is invoking the provisions of this stipulation and

the lessee shall comply with the following requirements.

Prior to any drilling activity or the construction or

placement of any structure for exploration or development on lease areas including, but not limited to, well

drilling and pipeline and platform placement, hereinafter referred to as “operation,” the lessee shall conduct site-specific surveys as approved by the DMMOFO

and in accordance with prescribed biological survey

requirements to determine the existence of any special

biological resource including, but not limited to:

(1) Very unusual, rare, or uncommon ecosystems

or ecotones.

(2) A species of limited regional distribution that

may be adversely affected by any lease operations.

If the results of such surveys suggest the existence of a special biological resource that may be adversely affected by any lease operation, the lessee shall:

(1) relocate the site of such operation so as not to
A1-43

Appendix for Chapter 1

adversely affect the resources identified; or (2) establish to the satisfaction of the DMMOFO, on the basis

of the site-specific survey, either that such operation

will not have a significant adverse effect upon the resource identified or that a special biological resource

does not exist. The DMMOFO will review all data submitted and determine, in writing, whether a special

biological resource exists and whether it may be significantly affected by lessee’s operations. The lessee

may take no action until the DMMOFO has given the

lessee written directions on how to proceed.

(b) The lessee agrees that if any area of biological significance should be discovered during the conduct of any operations on the leased area, he shall

report immediately such findings to the DMMOFO,

and make every reasonable effort to preserve and protect the biological resource from damage until the

DMMOFO has given the lessee directions with respect

to its protection.

Sale RS-2 Stipulation No. 3b

Exploratory drilling operations, emplacement of

structures (platforms) or seafloor wellheads for production or storage of oil and gas, and the emplacement of pipelines will not be allowed within the potentially unstable portions of this lease block unless or

until the lessee has demonstrated to the DMMOFO’s

satisfaction that exploratory drilling operations, structures (platforms), casing, wellheads and pipelines can

be safely designed to protect the environment at the

proposed location. This may necessitate that all exploration for and development of oil and gas be performed from locations outside of the area of submarine canyons or channels, either within or outside of

this lease block.

If exploratory drilling operations are allowed,

site-specific surveys shall be conducted to determine

the potential for unstable bottom conditions. If emplacement of structures (platforms) or seafloor wellheads for production or storage of oil or gas is allowed,

all such unstable areas must be mapped. The DMMOFO

may also require soil testing before exploration and

production operations are allowed.

Sale RS-2 Stipulation No. 4

Whether or not compensation for such damage

or injury might be due under a theory of strict or absolute liability or otherwise, the lessee assumes all risks

of damage or injury to persons or property, which occur in, on, or above the Outer Continental Shelf, to

any person or persons or to any property of any person or persons who are agents, employees or invitees

of the lessee, its agents, independent contractors or

subcontractors doing business with the lessee in connection with any activities being performed by the lessee in, on, or above the Outer Continental Shelf, if

such injury or damage to such person or property occurs by reason of the activities of any agency of the

U.S. Government, its contractors, or subcontractors,

or any of their officers, agents or employees, being

conducted as a part of, or in connection with, the programs and activities of the Western Space and Missile

Center (WSMC), Vandenberg AFB, Lompoc, California; The Pacific Missile Test Center (PMTC), Pt. Mugu,

California; and the Fleet Area Control and Surveillance Facility (FACSFAC), San Diego, California.

Not withstanding any limitations of the lessee’s

liability in section 14 of the lease, the lessee assumes

the risk whether such injury or damage is caused in

whole or in part by any act or omission, regardless of

negligence or fault, of the United States, its contractors or subcontractors, or any of their officers, agents,

or employees. The lessee further agrees to indemnify

and save harmless the United States against all claims

for loss, damage, or injury sustained by the lessee,

and to indemnify and save harmless the United States

against all claims for loss, damage, or injury sustained

by the agents, employees, or invitees of the lessee, its

agents or any independent contractors or subcontractors doing business with the lessee in connection with

the programs and activities of the aforementioned military installations and agencies, whether the same be

caused in whole or in part by the negligence or fault

of the United States, its contractors, or subcontractors, or any of their officers, agents, or employees and

whether such claims might be sustained under theories of strict or absolute liability or otherwise.

The lessee agrees to control his own electromagnetic emissions and those of his agents, employees,

invitees, independent contractors or subcontractors

emanating from individual, designated defense warning areas in accordance with requirements specified

by the Commander of Western Space and Missile Center (WSMC), Vandenberg AFB, Lompoc, California;

The Pacific Missile Test Center (PMTC), Pt. Mugu,

California; and the Fleet Area Control and Surveillance Facility (FACSFAC), San Diego, California, to

the degree necessary to prevent damage to, or unacceptable interference with, Department of Defense

flight, testing or operational activities conducted

within individual, designated warning areas. Necessary monitoring, control, and coordination with the

lessee, his agents, employees, invitees, independent

contractors or subcontractors, will be effected by the

Commander of the appropriate onshore military installation conducting operations in the particular

warning area: provided, however, that control of such

electromagnetic emissions shall permit at least one

continuous channel of communication between a lessee, its agents, employees, invitees, independent contractors or subcontractors and onshore facilities.

The lessee agrees that prior to operating or causing to be operated on its behalf boat or aircraft traffic
A1-44

Delineation Drilling Activities Offshore Santa Barbara County

into individual, designated warning areas, the lessee

shall coordinate and comply with instructions from

the Commander of Western Space and Missile Center

(WSMC), Vandenberg AFB, Lompoc, California; The

Pacific Missile Test Center (PMTC), Pt. Mugu, California; and the Fleet Area Control and Surveillance

Facility (FACSFAC), San Diego, California, or other

appropriate military agency. Such coordination and

instruction will provide for positive control of boats

and aircraft operating in the warning area at all times.

Sale RS-2 Stipulation No. 5

The lessee, recognizing that mineral exploration

and exploitation and recovery operations of the leased

areas of submerged lands can impede tactical military

operations, hereby recognizes and agrees that the

United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel, and appropriate sheltering

of personnel not evacuated (an appropriate shelter

shall mean the protection of all lessee personnel for

the entire duration of any Department of Defense activity from flying or falling objects or substances), will

come into effect upon the order of the DMMOFO, after

consultation with the Commander of Western Space

and Missile Center (WSMC), Vandenberg AFB,

Lompoc, California; The Pacific Missile Test Center

(PMTC), Pt. Mugu, California; and the Fleet Area

Control and Surveillance Facility (FACSFAC), San

Diego, California, or other appropriate military agency,

higher authority, when national security interests

necessitate such action. It is understood that any temporary suspension of operations for national security

may not exceed seventy-two hours; however, any such

suspension may be extended by order of the DMMOFO.

During such periods equipment may remain in place.

Sale RS-2 Stipulation No. 6

(a) Pipelines will be required: (1) if pipeline rightsof-way can be determined and obtained; (2) if laying of

such pipelines is technologically feasible and environmentally preferable; and (3) if, in the opinion of the

lessor, pipelines can be laid without net social loss,

taking into account any incremental costs of pipelines

over alternative methods of transportation and any

incremental benefits in the form of increased environmental protection or reduced multiple use conflicts.

The lessor specifically reserves the right to require

that any pipeline used for transporting production to

shore be placed in certain designated management areas. In selecting the means of transportation, consideration will be given to any recommendation of the

intergovernmental planning program for assessment

and management of transportation of Outer Continental Shelf oil and gas with the participation of Federal,

State, and local government and the industry.

(b) Following the development of sufficient pipeline capacity, no crude oil production will be transported by surface vessel from offshore production sites,

except in the case of emergency. Determinations as to

emergency conditions and appropriate responses to

these conditions will be made by the DMMOFO.

(c) Where the three criteria set forth in the first

sentence of this stipulation are not met and surface

transportation must be employed, all vessels used for

carrying hydrocarbons to shore from the leased area

will conform with all standards established for such

vessels, pursuant to the Ports and Waterways Safety

Act of 1978 (33 U.S.C., 1221 et seq.).

Sale RS-2 Stipulation No. 7

(a) Wells. Subsea well-heads and temporary abandonments, or suspended operations that leave protrusions above the seafloor, shall be protected, if feasible

and as appropriate, in such a manner as to allow commercial fisheries trawling gear to pass over the structure without snagging or otherwise damaging the

structure or the fishing gear. Latitude and longitude

coordinates of these structures, along with water

depths, shall be submitted to the DMMOFO. The coordinates of such structures will be determined by the

lessee utilizing state-of-the-art navigation systems with

accuracy of at least “ 50 feet (15.25 meters) at 200

miles (322 kilometers).

(b) Pipelines. All pipelines, unless buried, including gathering lines, shall have a smooth-surface design. In the event that an irregular pipe surface is

unavoidable due to the need for valves, anodes or other

structures, it shall, as appropriate, be protected in such

a manner as to allow trawling gear to pass over the

object without snagging or otherwise damaging the

structure or the fishing gear.

Sale RS-2 Stipulation No. 8

The lessee shall include in his exploration and

development plans, submitted under 30 CFR 250.34, a

proposed fisheries training program for review and

approval by the DMMOFO. The training program shall

be for the personnel involved in vessel operations (related to offshore exploration and development and production operations), and platform and shore based

supervisors. The purpose of the training program shall

be to familiarize persons working on the project of the

value of commercial fishing industry, the methods of

offshore fishing operations, the potential conflicts between fishing operations and offshore oil and gas activities, the locations of marine mammal and bird rookery sites in the area, the seasonal abundance and sen-
A1-45

Appendix for Chapter 1

sitivities of these animals to disturbance, and the Federal laws that have been established to protect endangered species from harassment and injury. the program

shall be formulated and implemented by qualified instructors.

Sale RS-2 Stipulation No. 9

(a) The royalty rate on production from this lease

is subject to consideration for reduction under the

same authority that applies to all other oil and gas

leases on the Outer Continental Shelf (30 CFR 250.21).

The Director, Minerals Management Service, may

grant a reduction for only one year at a time and reduction of royalty rates will not be approved unless

production has been underway for one year or more.

(b) Although the royalty rate specified in Sec.6(a)

of this lease or as subsequently modified in accordance

with applicable regulations and stipulations is applicable to all production under this lease, not more than

16 2/3 percent of the production from the lease area

may be taken as royalty in amount, except as provided in sec. 15(d); the royalty on any portion of the

production from the lease in excess of 16 2/3 percent

may only be taken in value of the production from the

lease area.

Sale 80 Stipulation No. 1 - Protection of

Biological Resources

(a) If the Regional Manager (RM) has reason to

believe that biological populations or habitats exist

and require protection, the RM shall give the lessee

notice that the lessor is invoking the provisions of

this stipulation and the lessee shall comply with the

following requirements. Prior to any drilling activity

or the construction or placement of any structure for

exploration or development on lease areas including,

but not limited to, well drilling and pipeline and platform placement, hereinafter referred to as “operation,”

the lessee shall conduct site-specific surveys as approved

by the RM and in accordance with prescribed biological survey requirements to determine the existence of

any special biological resource including, but not limited to:

(1) Very unusual, rare, or uncommon ecosystems

or ecotones.

(2) A species of limited regional distribution that

may be adversely affected by any lease operation.

If the results of such surveys suggest the existence of a special biological resource that may be adversely affected by any lease operation, the lessee shall:

(1) relocate the site of such operation so as not to

adversely affect the resources identified; (2) modify

operations in such a way as not to adversely affect the

significant biological populations or habitats deserving protection; or (3) establish to the satisfaction of

the RM on the basis of the site-specific survey, either

that such operation will not have a significant adverse

effect upon the resource identified or that a special

biological resource does not exist. The RM will review

all data submitted and determine, in writing, whether

a special biological resource exists and whether it may

be significantly affected by lessee’s operations. The

lessee may take no action until the RM has given the

lessee written directions on how to proceed.

(b) The lessee agrees that, if any area of biological significance should be discovered during the conduct of any operations on the leased area, the lessee

shall report immediately such findings to the RM, and

make every reasonable effort to preserve and protect

the biological resources from damage until the RM has

given the lessee directions with respect to its protection.

Sale 80 Stipulation No. 2 - Protection of

Cultural Resources

(a) “Cultural Resource” means any site, structure, or object of historical or archaeological significance. “Operations” means any drilling, mining, or

construction or placement of any structure for exploration, development, or production of the lease.

(b) If the Regional Manager (RM) believes a cultural resource may exist in the lease area, the RM will

notify the lessee in writing. The lessee shall then comply with subparagraphs 1) through (3).

(1) Prior to commencing any operations, the lessee shall prepare a report, as specified by the

RM, to determine the potential existence of any

cultural resource that may be affected by such

operations. The report, prepared by an archaeologist and geophysicist, shall be based on an

assessment of data from remote sensing surveys and other pertinent cultural and environmental information. The lessee shall submit

this report to the RM for review.

(2) If the evidence suggests that a cultural resource

may be present, the lessee shall either:

(i) Locate the site of such operation so as not

to adversely affect the area where the

cultural resource may be; or

(ii) Establish, to the satisfaction of the RM

that a cultural resource does not exist or

will not be adversely affected by operations. This shall be done by further archaeological investigation, conducted by
A1-46

Delineation Drilling Activities Offshore Santa Barbara County

an archaeologist and a geophysicist, using survey equipment and techniques

deemed necessary by the RM. A report of

the investigation shall be submitted to the

RM for review.

 (3) If the RM determines that a cultural resource

is likely to present on the lease and may be

adversely affected by such operation, the RM

will notify the lessee immediately. The lessee

shall take no action that may adversely effect

the cultural resource until the RM has told

the lessee how to protect it.

(c) If the lessee discovers any cultural resource

while conducting operations on the lease area, the lessee shall report the discovery immediately to the RM.

The lessee shall make every reasonable effort to preserve the cultural resource until the RM has told the

lessee how to protect it.

Sale 80 Stipulation No. 3 - Operational Control, Electromagnetic Emissions, And Evacuation

(a) The lessee agrees that, prior to operating or

causing to be operated on its behalf boat or aircraft

traffic into individual designated warning areas, the

lessee shall coordinate and comply with instructions

from the Commander, Western Space and Missile Center (WSMC), the Commander, Pacific Missile Test Center (PMTC), and the Commander, Fleet Area Control

and Surveillance Facility (FACSFAC), or other appropriate military agency. Such coordination and instruction will provide for positive control of boats and aircraft operating in the warning area at all times.

(b) The lessee agrees to control its own electromagnetic emissions and those of his agents, employees, invitees, independent contractors or subcontractors emanating from individual, designated defense

warning areas in accordance with requirements specified by the Commander WSMC, Commander PMTC,

and the Commander FACSFAC, or other appropriate

military agency, to the degree necessary to prevent

damage to or unacceptable interference with Department of Defense flight, testing or operations activities

conducted within individual, designated warning areas. Necessary monitoring, control, and coordination

with the lessee, its agents, employees, invitees, independent contractors or subcontractors, will be effected

by the Commander of the appropriate onshore military installation conducting operations in the particular warning area: provided, however, that control of

such electromagnetic emissions shall permit at least

one continuous channel of communication between a

lessee, its agents, employees, invitees, independent

contractors or subcontractors and onshore facilities.

(c) The lessee, recognizing that mineral exploration and exploitation and recovery operations of the

leased areas of submerged lands can impede tactical

military operations, hereby recognizes and agrees that

the United States reserves and has the right to temporarily suspend operations of the lessee under this lease

in the interests of national security requirements. Such

temporary suspension of operations, including the

evacuation of personnel and appropriate sheltering of

personnel not evacuated (appropriate shelter shall

mean the protection of all lessee personnel for the entire duration of any Department of Defense activity

from flying or falling objects or substances) will come

into effect upon the order of the Regional Manager

(RM) after consultation with the Commander WSMC,

Vandenberg AFB, Lompoc, California, or other appropriate military agency, higher authority, when national

security interests necessitate such action. It is understood that any temporary suspension of operations for

national security may not exceed 72 hours; however,

any such suspension may be extended by order of the

RM. During such periods equipment may remain in

place.

Sale 80 Stipulation No. 4 - Hold Harmless

Whether or not compensation for such damage

or injury might be due under a theory of strict or absolute liability or otherwise, the lessee assumes all risks

of damage or injury to persons or property which occur in, on, or above the Outer Continental Shelf, to

any person or persons or to any property of any person or persons who are agents, employees or invitees

of the lessee, its agents, independent contractors or

subcontractors doing business with the lessee in connection with any activities being performed by the lessee in, on, or above the Outer Continental Shelf, if

such injury or damage to such person or property occurs by reason of the activities of any agency of the

U.S. Government, its contractors or subcontractors,

or any of their officers, agents, or employees, being

conducted as a part of, or in connection with, the programs and activities of the Western Space and Missile

Center, Pacific Missile Test Center, or other appropriate military agency.

Not withstanding any limitations of the lessee’s

liability in section 14 of the lease, the lessee assumes

the risk whether such injury or damage is caused in

whole or in part by any act or omission, regardless of

negligence or fault, of the United States, its contractors or subcontractors, or any of their officers, agents,

or employees. The lessee further agrees to indemnify

and save harmless the United States against all claims

for loss, damage, or injury sustained by the lessee,

and to indemnify and save harmless the United States

against all claims for loss, damage, or injury sustained

by the agents, employees, or invitees of the lessee, its

agents, or any independent contractors or subcontractors doing business with the lessee in connection with
A1-47

Appendix for Chapter 1

the programs and activities of the aforementioned military installations and agencies, whether the same be

caused in whole or in part by the negligence or fault

of the United States, its contractors, or subcontractors, or any of their officers, agents, or employees and

whether such claims might be sustained under theories of strict or absolute liability or otherwise.

Sale 80 Stipulation No. 5 - Transportation Of

Hydrocarbon Products

(a) Pipelines will be required: (1) if pipeline rightsof-way can be determined and obtained; (2) if laying of

such pipelines is technologically feasible and environmentally preferable; and (3) if , in the opinion of the

lessor, pipelines can be laid without net social loss,

taking into account any incremental costs of pipelines

over alternative methods of transportation and any

incremental benefits in the form of increased environmental protection or reduced multiple use conflicts.

The lessor specifically reserves the right to require

that any pipeline used for transporting production to

shore be placed in certain designated management areas. In selecting the means of transportation, consideration will be given to any recommendation of the

Pacific Regional Technical Working Group with the

participation of Federal, State, and local government

and the industry.

(b) Following the development of sufficient pipeline capacity, no crude oil production will be transported by surface vessel from offshore production sites,

except in the case of emergency. Determinations as to

emergency conditions and appropriate responses to

these conditions will be made by the Regional Manager.

(c) Where the three criteria set forth in the first

sentence of this stipulation are not met and surface

transportation must be employed, all vessels used for

carrying hydrocarbons to shore from the leased area

will conform with all standards established for such

vessels, pursuant to the Ports and Waterways Safety

Act of 1972 (33 U.S.C., 1221 et seq.).

Sale 80 Stipulation No. 6 - Wells And Pipelines

(a) Wells. Subsea well-heads and temporary abandonments, or suspended operations that leave protrusions above the seafloor, shall be protected, if, feasible,

in such a manner as to allow commercial trawl gear

to pass over the structure without snagging or otherwise damaging the structure or the fishing gear. Latitude and longitude coordinates of these structures,

along with water depths, shall be submitted to the

Regional Manager. The coordinates of such structures

will be determined by the lessee utilizing state-of-theart navigation systems with accuracy of at least “ 50

feet at 200 miles.

(b) Pipelines. All pipelines, unless buried, including gathering lines, shall have a smooth-surface design. In the event that an irregular pipe surface is

unavoidable due to the need of valves, anodes or other

structures, those irregular surfaces shall be protected

in such a manner as to allow trawl gear to pass over

the object without snagging or otherwise damaging

the structure or the fishing gear.

Sale 80 Stipulation No. 7 - Fisheries And

Wildlife Training Program

The lessee shall include in its exploration and

development plans, submitted under 30 CFR 250.34, a

proposed fisheries and wildlife training program for

review and approval by the Regional Manager. The

training program shall be for all personnel involved

in exploration, development, and production operations, and for platform and shorebased supervisors.

The purpose of the training program shall be to familiarize persons working on the project of the value of

the commercial fishing industry, the methods of offshore fishing operations, the potential conflicts between

fishing operations and offshore oil and gas activities,

the locations of marine mammal and bird rookery sites

in the area, the locations of gray whale and other endangered whale migration routes in the area, the seasonal abundance and sensitivities of these animals to

disturbance, and the Federal laws that have been established to protect endangered and threatened species from harassment or injury. Additionally, the lessee shall include in the training program required

above, information on the behavior of gray whales

migration and how to avoid conflicts with this migration. The program shall be formulated and implemented by qualified instructors.

Stipulation No. 8 - Hazardous Waste

Prior to any drilling activity or the construction

or placement of any structure for exploration or development on the lease, including but not limited to

well drilling and pipeline and platform placement, hereinafter in this stipulation referred to as “operation”,

the lessee shall investigate the potential existence of

any radioactive waste, munitions, or toxic chemical

waste on the lease. This investigation shall consist of

examination of date acquired in the course of the shallow geologic hazard survey as conducted in accordance

with the current Notice to Lessees issued by the Regional Manager (RM) and examination of the dump

site records. This survey shall be over an acceptable

grid and shall employ a magnetometer, water depth

recorder, and dual side scan sonar or other equipment

as determined necessary by the RM. If the results of

the survey indicate the presence of such dumped materials, further investigation as to their nature may
A1-48

Delineation Drilling Activities Offshore Santa Barbara County

be required. A report of this investigation shall be included in the shallow geologic hazards survey report.

If the presence of dumped material is established,

the lessee shall: (1) locate the site of the operation so

as not to disturb the material ; (2) conduct the operation in a manner that minimally disturbs the ocean

floor (e.g., dynamically positioned drilling vessel); or

(3) establish to the satisfaction of the RM, on the basis of further investigation, that disturbance of the

material would not result in any adverse effects on

the human or marine environments.

Stipulation No. 9 - Protection Of Important

Biological Resources

(a) The lessee shall be required to maintain stateof-the-art oil spill containment and cleanup equipment

(in accordance with the requirements of the previously

agreed upon U.S. Coast Guard (USCG) Notice No.

5740) onsite and in the vicinity of exploratory drilling

and development and production operations. In addition, suitable means of deployment and personnel

trained in deployment and use of this equipment must

be available. Such deployment for exploration, development, and production operations shall have the capability of immediate initiation of oil spill containment

and cleanup.

(b) In the case of spills larger than can be contained by equipment on exploration vessels or production platforms, the lessee shall maintain state-of-theart equipment on the vessels which, based on the proximity to the Channel Islands National Marine Sanctuary, are capable of responding to a request for assistance and being on the scene within 2 to 4 hours of

the request if local conditions permit. The lessee shall

install on exploration vessels and production platforms

real-time monitoring capability to assist the USCG in

acquiring meteorological and oceanographic data necessary to make accurate predictions of the trajectory

of oil spills. This information shall support oil spill

containment and cleanup operations. When a spill

greater than 1 barrel occurs, the lessee shall notify

the California Office of Emergency Services within 24

hours of such a spill.

(c) Development and production operations will

be required to include the capability to automatically

detect the loss of oil and gas at any time.

Stipulation No. 10 - Testing Of Oil Spill Containment Equipment

The lessee shall conduct semi-annual full-scale

drills at the request of the lessor for platforms and

operator-controlled contracted cleanup vessels for deploying equipment in open water to test the equipment

and the contingency plan. These drills must involve

all primary equipment identified in the oil spill contingency plans as satisfying Outer Continental Shelf

Operating Order No. 7. At least two of these drills

shall include the primary equipment controlled and

operated by the appropriate cooperative. These drills

will be unannounced and held under realistic environmental conditions in which deployment and operations

can be accomplished without endangering safety of

personnel. Representatives of the U.S. Coast Guard,

Minerals Management Service. and California Coastal

Commission may be present as observers. The lessor’s

inspectors will frequently inspect oil and gas facilities

where oil spill containment and cleanup equipment are

maintained in order to assure readiness.

Stipulation No. 11 - Onshore Oil Processing

Any initial processing of oil will be conducted at

an onshore facility, if feasible, subject to the granting

of necessary permits by local authorities within a reasonable period of time as provided for in State of California law. If after review by local and State authorities these permits cannot be acquired, then the Regional Manager shall determine, in cooperation and

participation with the State, what further action needs

to be taken in regard to the lessee’s development and

production plan. Exceptions to the initial onshore processing include standard oil/gas/water separation processes and necessary treatment of oil prior to being

pumped from the platform into a pipeline to shore, if

pipeline transport is determined practicable.

Stipulation No. 12 - Protection Of Commercial

Fisheries

(a) The lessee, operator(s), subcontractor(s), and

all personnel involved in exploration, development, and

production operations shall endeavor to minimize conflicts between the oil and gas industry and the commercial fishing industry.

Prior to submitting a plan of exploration or development to the lessor. appropriate oil and gas personnel shall contact potentially affected commercial

fishermen or their representatives to discuss potential conflicts with the siting, timing, and methods proposed,. Through this consultation the lessee shall assure that, whenever feasible, exploratory and development activities are compatible with seasonal fishing

operations and will not result in permanently barring

commercial fishing from important fishing grounds.

A discussion of the resolutions reached during

this consultation process and a discussion of any unresolved conflicts shall be included in the Plan of Exploration or Development/ Production. The lessee shall
A1-49

Appendix for Chapter 1

send a copy of the Plan of Exploration or Development/ Production to the fisheries liaison office and the

marine extension office at the same time they are submitted to the lessor to allow concurrent review and

comment as part of the lessor’s plan approval process.

In accordance with 30 CFR 250.34-1(b)(1), copies of such plans are sent to appropriate State agencies, such as the California State Lands Commission,

California Department of Fish and Game, and the

California Coastal Commission.

(b) In particular, the lessee shall show in the

Plan of Exploration or Development/Production crew

and supply boat operation routes which will be used

to minimize impacts to commercial fishing, marine

mammals, and endangered and threatened species.

Conflicts foreseen in the planning stages or that develop later shall be resolved whenever feasible and as

quickly as possible.

(c) The lessee also shall include in the Plan of

Development/ Production analyses of the effects of its

operations on the allocation and use of local dock space

by fishing boats and crew and supply boats. These

analyses shall include present (baseline) uses, predicted

oil and gas uses which increase the level of demand,

and an assessment of individual and cumulative impacts. Conflicts foreseen in the planning stages or that

develop later shall be resolved whenever feasible and

as quickly as possible.

(d) The lessee shall be required to employ jackup drilling rigs for drilling exploratory wells in primary commercial fishing trawl grounds as determined

by the Regional Manager (RM) when water depths are

275 feet or less. The RM may approve other drilling

vessels when geological or bottom conditions prohibit

the use of jack-ups. When considering the use of other

drilling vessels, the RM will consult with the California Department of Fish and Game to determine the

effects of the vessels on commercial fishing.

(e) All activities associated with exploration and

development operations shall be conducted to avoid

the creation of obstacles to commercial fishing operations. If the RM has reason to believe that the site has

not been adequately cleared, additional surveys shall

be required to detect the location of any obstacles to

commercial fishing.

Stipulation No. 13 - Protection Of Marine

Biota

All drilling muds discharged from exploration and

development and production operations must contain

only those components approved by the U. S. Environmental Protection Agency in accordance with National Pollutant Discharge Elimination System permits issued for this lease.

When drilling fluid discharges are proposed

within 1000 meters of Areas of Special Biological Significance, a National Marine Sanctuary, or other sensitive areas as determined by the Regional Manager,

the lessee shall include the results of a drilling fluids

dispersion model for anticipated discharges in a Plan

of Exploration or Development/Production.

Stipulation No. 14 - Disposal Of Drilling

Discharges

The Regional Manager (RM) may require the lessee to modify muds and cutting discharge operations

or transport the material to disposal sites approved

by the U.S. Environmental Protection Agency (EPA).

After consultation with the EPA, the RM shall determine the method of disposal based upon review of the

data obtained from the surveys and studies established

pursuant to Stipulation No. 1 and from other relevant

sources of information.

Stipulation No. 15 - Suspension Of Operations

The Director shall suspend or temporarily prohibit production or any other operation or activity pursuant to this lease if such suspension or cessation of

operations or activities is necessary to complete operations or activities described in a development and

production plan approved by the Regional Manager

pursuant to 3 0 CFR part 250.34.

Stipulation No. 16 - Protection Of Mackerel

Fishery In San -Pedro Bay

(a) The lessee shall be required to employ jackup drilling rigs for drilling exploratory wells as determined by the Regional Manager (RM) when water

depths are 275 feet or less. The RM may approve other

drilling vessels when geological or bottom conditions

prohibit the use of jack-ups. When considering the use

of other drilling vessels, the RM will consult with the

California Department of Fish and Game to determine

the effects of the vessels on commercial fishing.

(b) Lessees shall not employ pendant buoys on

drilling vessels or shall place pendant buoys at a depth

sufficient to avoid conflict with the mackerel fishery

on these blocks. Anchor patterns will be designed to

minimize displacement area.

Stipulation No. 17 - Protection Of Air Quality

Lessees shall comply with the following requirements until the Minerals Management Service completes rulemaking procedures concerning air quality

regulations applicable to oil and gas operations on the

Outer Continental Shelf off California. Any revisions

to the current air quality rules will be applied to all

exploratory and development/production operations on

leases issued as a result of this sale.
A1-50

Delineation Drilling Activities Offshore Santa Barbara County

(a). For drilling vessels used in exploration activities, the lessee shall apply control technologies for

NOX identified by the Regional Manager (RM) or apply other control measures that result in equivalent

emissions limitations. The lessee shall use only those

pollution control technologies which can be approved

by the U.S. Coast Guard (USCG), the American Bureau of Shipping (ABS), and/or other agencies as appropriate.

(b) The lessee shall provide the RM with the

schedule and location of proposed exploration activities at least 2 months in advance of the activities.

(c) For all plans of development/ production. the

lessee shall provide, in a manner specified by the RM,

an evaluation of the impacts of emissions of NOX and

VOC on onshore concentrations of N02 and 03.

(d) For development/ production facilities and for

oil transport vessels while attached to the facility, the

lessee shall apply control technologies for NOX and

VOC identified by the RM, or apply other control measures that result in equivalent emission limitations.

The lessee shall use only those pollution control technologies which can be approved by the USCG, the ABS,

and/or other agencies as appropriate.

(e) The lessee shall install best available control

technology; approved by the RM and by the USCG,

the ABS, and/or other agencies, as appropriate, to reduce VOC emissions resulting from the transfer of oil

from storage facilities to a transport vessel.
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Appendix for Chapter 1

Appendix 1.5 Information Addressing Issues Raised by the California Coastal Commission in a Letter to

MMS.

The following issues were discussed in a letter, dated August 5, 1999, from the California Coastal Commission

to MMS. The Commission’s primary concern was that “changed circumstances and new information should be

considered in evaluating environmental impacts of the proposed new exploration [delineation] activities.” These

issues, raised by the Commission, and MMS’s responses, are summarized below along with a reference in the Draft

EIS (DEIS) sections where additional detail may be found.

. 

Issue Responses to the Issue and DEIS Reference 

Issue 1. Proposed activities 

affect the sea otter 

population. 

Operator submittals (Project Descriptions) recognized that sea otters have extended their range, that MMS will need to 

update endangered species consultations, and that facilities and techniques for sea otter capture, handling, cleaning, 

and rehabilitation have improved. In addition, the operators will address this issue in the revisions to their plans. 

Sea otters already coexist with limited OCS oil and gas production activities in the Santa Maria Basin. Studies of 

recent sea otter movements indicate that the otter range has expanded into the Santa Barbara Channel and coexist with 

OCS oil and gas production there, as well. 

The primary potential impact to sea otters from OCS activities is from accidental oil spills. Hypothetical development 

resulting from delineation drilling activities in the undeveloped leases north of Point Conception is likely to result in a 

small incremental increase in the probability that an oil spill will occur. 

Potential impacts to sea otters from the proposed activities will be assessed during the Endangered Species Section 7 

consultations with the FWS. Given the probable expansion of the southern sea otter range into the Santa Barbara 

Channel, this consultation will likely involve the proposed activities on all of the undeveloped leases. 

This DEIS addresses potential impacts to the sea otter population in sections 5.2.8, 5.2.8.2, and 6.2.8. 

Issue Responses to the Issue and DEIS Reference 

Issue 2. Possible effects on 

the Monterey Bay National 

Marine Sanctuary, which was 

not a sanctuary at the time 

plans were originally 

reviewed. 

The southern boundary of the Sanctuary is approximately 45 miles north of the active lease area. 

Operator-submitted Project Descriptions discuss the Sanctuary and the operators will address this issue ion revisions 

to their plans. The distance from each undeveloped unit or lease to the Sanctuary waters is given below. 

Cavern Point Unit – over 120 miles 

Gato Canyon Unit – over 100 miles 

Sword Unit – over 80 miles 

Bonito Unit – over 65 miles 

Rocky Point Unit – approximately 77 miles 

Santa Maria Unit – over 40 miles 

Purisima Point Unit – over 40 miles 

Lease OCS P 409 – over 40 miles 

Point Sal Unit – over 40 miles 

Lion Rock Unit – over 40 miles 

Some potential oil spill threat may exist during certain times of the year since winds and currents along the central 

California coast make it possible for oil from a spill in the Santa Maria Basin to be carried northward into Sanctuary 

waters. The risk to the Sanctuary is reduced due to the weathering of the oil that would occur during the time it takes 

for the oil to travel to the Sanctuary. 

This DEIS addresses potential impacts to the Monterey Bay National Marine Sanctuary in sections 5.2.11 and 6.2.11. 

Issue 3. Changes in State 

and local air quality 

regulations and their 

implementation affect future 

exploration or development. 

Operators recognized the change in the authority and the role of the local air pollution control districts and 

acknowledge that they will apply to either the Ventura or Santa Barbara County Air Pollution Control Districts. 

As a result of a 1990 amendment to the Clean Air Act, all existing and future OCS sources will be permitted by the 

local air agencies and must be in full compliance with local air quality rules and regulations. 

Under New Source Review provisions contained within the local air regulations, all new or modified projects must 

result in a "net air quality benefit.” This requires the applicant to provide emission offsets in greater levels than 

emissions expected for the project. 

This DEIS addresses potential impacts to air quality in sections 5.2.1, 5.2.1.2, and 6.2.1. 

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A1-52

Delineation Drilling Activities Offshore Santa Barbara County

Issue Responses to the Issue and DEIS Reference 

Issue 7. Changes in 

technology since review of 

earlier plans. 

The use of new technology is required to be addressed in the revised EP’s via MMS’s operating regulations. 

Operators will need to comply with changes in the regulations, including compliance with any revised standards. 

Generally, operators identified advances in geological and geophysical data acquisition and processing, and 

improvements in extended-reach drilling capability. 

Advances in technology including computers and automation can be seen in various areas. These advances may 

change activities and associated impacts in several ways: 

New technology may allow the operator to change the fundamental activity being proposed (e.g., extended-reach 

drilling from an existing facility rather than drilling from a MODU or the installation of a new platform); 

New technology can reduce the risk associated with a given activity (e.g., improved equipment such as blowout 

preventers); 

New and existing mitigation may be more effective (e.g., improved oil skimming and response capability); 

Exploration and delineation of a reservoir can be completed with fewer wells; 

New technology may decrease the MODU’s time-on-location. 

Where appropriate, new technology is implicitly included in the DEIS. For example, discussions in Chapters 2 and 3 

describe the Proposed Action and the equipment necessary. Also, as noted above, oil-spill clean up capability has 

improved and that is implicitly included, where appropriate, in Chapters 5 and 6. 

Issue 8. Changes in 

operators, and their 

compliance with 

environmental protections 

required under current 

Federal, State, and local 

regulations, since the 

submittal of the original 

EP’s. 

New operators have acquired all the units since the original EP’s were submitted. 

In the early 1990's, offshore properties in the Pacific Region began to shift ownership from the major companies, 

which had originally held the resource rights and often constructed offshore production and onshore processing 

facilities, to small and medium-size companies. 

MMS strictly holds all new operators to all laws and regulations pertaining to offshore oil and gas operations. 

By law, all companies must meet the same requirements to become operators. 

MMS sees that all operators demonstrate financial responsibility and requires addition bonding, if needed. 

This issue is not addressed in the DEIS 

Issue 9. Cumulative impacts 

of the exploration and 

development of the 36 leases. 

Chapter 5 contains cumulative discussions for each of the resources, associated with the Proposed Action, as required 

by NEPA, for the years 2002 through 2006. 

Chapter 6 contains an expanded cumulative discussion for each of the resources, that also includes the potential for 

cumulative impacts from development of the 36 undeveloped leases for the years 2002 through 2030. 

Appendix 1.5 Information Addressing Issues Raised by the California Coastal Commission

in a Letter to MMS (continued).

Issue Responses to the Issue and DEIS Reference 

Issue 4. Changes in water 

quality regulations and 

anticipated further changes in 

those regulations. 

MMS and the operators recognize the need for a new General permit. 

The General permit has been finalized, incorporating public comment, and the CCC issued a Consistency Certification 

with conditions. EPA is currently working with CCC to meet the conditions. EPA plans to publish the permit in final 

form in the Federal Register sometime in the summer of 2001. The new General permit will replace a 17-year old 

General permit, two Individual permits that have existed, unchanged, since 1977, and six Individual permits, all issued 

between 1993 and 1995. 

This DEIS addresses potential impacts to water quality in sections 5.2.2, 5.2.2.2, and 6.2.2. 

Issue 5. New information 

concerning the impacts of 

drill muds and cuttings on 

hard bottom habitat. 

New information on impacts of drilling muds and cuttings comes, primarily, from the California Monitoring Program 

(CaMP) studies, conducted near Point Arguello between 1984 and 1994. 

CaMP results indicated that biological changes were identified as far away as 1,000 m; impacts were from smothering, 

not toxicity, of the drilling muds. 

Shallow hazards information collected in the 1970’s and 1980’s indicate the presence of hard bottom areas near some 

proposed delineation well sites. 

In 1991, the Hard Bottom process was established to identify, avoid, and/or mitigate impacts to hard bottom habitats. 

If potential hard bottom is identified within 1,000 m of a wellsite, the operator either develops an avoidance plan or a 

biological data collection and mitigation plan. 

MMS, along with other agencies, fishermen, and area experts, are working with the operators in developing plans to 

avoid or survey and mitigate impacts to hard bottom habitats. 

New sea floor survey information will likely be required, including high-resolution side scan sonar, which will clearly 

depict locations of hard bottom. 

If avoidance of potential hard bottom habitat is not possible, given existing or new information, a biological survey 

will be needed to identify hard bottom habitat. 

This DEIS addresses potential impacts to hard bottom habitats in sections 5.2.4, 5.2.4.2, and 6.2.4. 

Issue 6. New information 

concerning the effects of 

undersea noise on marine 

mammals and other marine 

life. 

Operators recognize the changes in available information concerning the effects of noise on marine mammals and 

covered these issues in their Project Descriptions. 

Drilling rigs and seismic surveys can generate noise levels that may have an effect on marine mammals. 

MMS, in conjunction with various State, Federal, and local agencies, the geophysical and oil industry, and 

environmental groups, agreed on a set of guidelines for mitigation of potential impacts to marine mammals from highenergy seismic surveys (HESS). No high-energy seismic surveys are currently proposed for the undeveloped leases. 

This DEIS addresses potential impacts to marine mammals from noise in sections 5.2.8, 5.2.8.2, and 6.2.8. 

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