TITLE
Recommendation to receive and file report on Signal Hill Petroleum 3D seismic survey in the City of Long Beach.
DISCUSSION
Signal Hill Petroleum (SHP) is a private oil and natural gas contractor and is the operator of
several oil recovery units within the Long Beach Oil Field (near the Long Beach Airport). From
January 7 through January 9, 2006, SHP and its contractor, Ameridian, began conducting a 3D
seismic survey on streets in the Wrigley area of Long Beach, under a Special Events Permit.
The survey requires four large trucks to stop at a site at which, utilizing special equipment
mounted on the trucks, acoustic waves are inducted into the ground creating echoes from deep
within the earth. The echoes are captured via geosensors that provide data to create 3D images
of the subsurface. The primary intent is to greatly enhance the ability to locate oil and natural
gas fields.
What had been represented to the City by SHP as resulting minor ground vibration, similar to the
"ultrasound used to create pictures of unborn babies within a mother's womb," was, in fact, a
much more significant ground vibration. The vibration was strong enough that nearby residents
complained of cracks in ceilings and walls, of a glass globe falling and breaking, of objects falling
off shelves, windows shaking, damage to a 1" water pipeline that resulted in leakage, crying
babies, barking dogs, etc.
At the Wrigley Neighborhood Association meeting on January 9, 2006, there were numerous
residents attending who vocalized their strong displeasure with not only the excessive vibration
and noise, but also: 1) the.length of time the trucks were stationed at one location (expected to
be less than 10 minutes, but the trucks were at one location for several hours due to a technical
dysfunction); 2) lack of proper notification for the surrounding area residents; 3) misleading
notification with unresponsive contact phone numbers; 4) lack of an adequate call center to
handle the complaints; 5) the weight of the trucks and possible damage to the streets (each of
the four truck weighs 60,000 pounds); and 6) the miles of geosensor cables that were laid along
major corridors, such as Atlantic, stretching from Downtown to Bixby Knolls.
Based upon the above concerns as well as personal observation of the actual testing, the
decision was made to have SHP halt the project immediately. To protect the property and
quality of life of Long Beach residents, it was recommended to the City Manager that the permit
be revoked due to the inconsistency between what actually occurred and what was represented
when the permit was requested. On Thursday, January 12, 2006, SHP received written
notification that the permit had been revoked, and that SHP had the right to appeal the decision
to the City Council within ten days.
This matter was reviewed by Deputy City Attorney J. Charles Parkin on January 12, 2006.
TIMING CONSIDERATIONS
There are no timing considerations for this action other than SHP may decide to exercise its right
to appeal the revocation of the permit. SHP will factor into that decision discussion and reaction
by the City Council and the public related to this report and, more importantly, to SHP's expected
presentation of actions they propose to implement to alleviate the concerns of the City and
public to the seismic study. Signal Hill Petroleum will incur costs of $55,000 per day during the
delay until the City Council denies or accepts SHP's appeal.
FISCAL IMPACT
There is no fiscal impact associated with this action. However, termination of the seismic study
will reduce the possibility of locating and producing potential oil and natural gas deposits within
the Long Beach area along with the associated potential loss of revenue. The City of Long
Beach is one of many mineral rights owners that would realize revenue from producing such oil
and natural gas.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHRISTOPHER J. GARNER |
APPROVED: |
DIRECTOR OF LONG BEACH GAS AND OIL |
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GERALD R. MILLER |
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CITY MANGER |