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Recommendation to authorize City Manager, or designee, to execute a utility agreement with Orange County Transportation Authority (OCTA), for the removal of Long Beach Gas and Oil’s natural gas pipeline to clear the right-of-way for OCTA’s project on Interstate 405 between State Route 73 and Interstate 605. (Citywide)
DISCUSSION
In 1952, the City of Long Beach (City) built a natural gas pipeline (pipeline) that traveled from the site of the AES power plant in the City of Huntington Beach to the border of Long Beach at 7th Street and Studebaker Road. The pipeline is typically referred to as the “Huntington Beach Pipeline” within the City. This pipeline was originally designed and constructed to transport the natural gas produced from oil fields in the Bolsa Chica wetlands area to Long Beach to supplement its natural gas demands. The pipeline’s path from 7th Street followed the “old” Garden Grove Boulevard (now part of Interstate 405) and turned 90 degrees at Bolsa Chica Avenue through the wetlands to the AES power plant located in Huntington Beach.
In 1993, the City entered into a 25-year lease of this pipeline with Southern California Gas Company (SoCalGas), as the pipeline is located in its franchise area. SoCalGas utilized this pipeline to collect produced natural gas from the oil fields in the Bolsa Chica wetlands and from an off-shore oil platform located in federal waters off Huntington Beach. The natural gas from these producers was delivered via this pipeline to the AES power plants in the City or in Huntington Beach. This pipeline lease agreement is now set to expire on June 4, 2018. SoCalGas has informed LBGO that they do not intend to renew this agreement.
LBGO currently receives the natural gas for its customers from SoCalGas at four delivery stations located within the City as well as from several small local oil operators. The four SoCalGas delivery points utilized today are more than capable of providing sufficient quan...
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