TITLE
Recommendation to determine that the granting of Facility/Pipeline Permit Supplement No. S-1-22 under existing Facility/Pipeline Permit
No. P-157-89 to Signal Hill Petroleum, Inc., will not be contrary to the public interest; and, authorize City Manager, or designee, to issue said permit supplement in accordance with Section 15.44.060, Permit Issuance, of the Long Beach Municipal Code. (District 4)
DISCUSSION
Signal Hill Petroleum, Inc., a California corporation, has filed an application for Facility/Pipeline Permit Supplement No. S-1-22, under existing Facility/Pipeline Permit No. P-157-89, to install approximately 800 feet of FlexSteel Pipeline (HDPE Pipeline with Steel reinforcement) and approximately 488 feet of casing along 20th Street crossing Redondo Avenue. This installation would be accomplished via horizontal direct drilling method. Attached vicinity map provides the location and legal description of the installation (Attachment A).
This installation will allow Signal Hill Petroleum, Inc., to make infrastructure upgrades that include the following lines replacing existing lines that are near the end of their service life:
• 8” Group Gathering Line carrying oil and water from production wells to a plant water processing facility.
• 4” Injection Distribution Line bringing cleaned water to injection wells.
• 3” Vapor Recovery Line brings vacuum to injection wells and group line.
The existing lines to be replaced will be idled in place, put out of service but not abandoned, and maintained by Signal Hill Petroleum, Inc.
This installation will also include one new 6” high volume gas line to help balance the gas system and improve vapor recovery during the transport process.
The Public Works Department has reviewed the application and found the proposed pipeline to be compatible with existing installations and not an obstacle to any street use or any known proposed developments.
Traffic control requirements, stipulated by the Traffic Engineering Division, as well as typical trench resurfacing requirements will be included in the special conditions for the excavation permit. Liability insurance and cash bond for faithful performance will be processed following City Council authorization of the permit supplement.
In accordance with Long Beach Municipal Code section 15.40.060 the City Council shall determine when the granting of a facility/pipeline permit or permit supplement will or will not be in the public interest and its determination shall be final, subject to limited exceptions when the Director of Public Works may make such a determination.
This matter was reviewed by Deputy City Attorney Vanessa Ibarra and by Budget Management Officer Nader Kaamoush on April 6, 2023.
LEVINE ACT
This item is subject to the Levine Act. The Mayor, Councilmembers, and Commissioners who have received a contribution of more than $250 within 12 months prior from a party, participant, or their representatives involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; OR (2) return the portion of the contribution that exceeds $250 within 30 days from the time the elected official knew or should have known about the contribution and participate in the proceeding.
All parties, participants, and their representatives must disclose on the record of this proceeding any contribution of more than $250 made to the Mayor or any Councilmembers within 12 months prior to the date of the proceeding. The Mayor, Councilmembers, and Commissioners are prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party, participant, or their representatives during a proceeding and for 12 months following the date a final decision is rendered.
TIMING CONSIDERATIONS
City Council action is being requested on April 18, 2023, to allow commencement of this work.
FISCAL IMPACT
If the Facility/Pipeline Permit Supplement is approved, a one-time permit fee of approximately $27,250 will be deposited in the General Fund in the Public Works Department. Additionally, the annual hazardous pipeline safety fee will be approximately $7,000, which will be adjusted annually based on the Consumer Price Index (CPI) and will continue to be deposited into the General Fund in Public Works. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER