Long Beach, CA
Share to Facebook Share to Twitter Bookmark and Share
File #: 22-0454    Version: Name: 042222-Presentation on planning efforts for the abandonment of the Wilmington Oil Field
Type: Agenda Item Status: Withdrawn
File created: 4/18/2022 In control: City Council
On agenda: 4/22/2022 Final action: 5/17/2022
Title: WITHDRAWN Recommendation to concur in the recommendation of the Climate Action and Environmental Committee to direct City Manager to take the following actions: Request inclusion in the County and/or City of Los Angeles amortization studies or work with consultants to conduct a similar study and report back with the cost of doing so; Direct a percentage of surplus oil revenues to the abandonment fund and any other costs associated with abandonment, alongside important one-time capital projects; Direct City staff and the State Legislative Committee request the State to fully fund their portion of the abandonment liability; Work with South Coast Air Quality Management District (AQMD) to prioritize leakage mitigation and detection, emissions control, and carbon capture measures; Work with labor organizations in the transition of workers from the local energy sector; Work with City Attorney and State Lands Commission and other applicable state entities to determine the legal options ...
Sponsors: COUNCILWOMAN CINDY ALLEN, SECOND DISTRICT, CHAIR, Climate Action and Environmental Committee
Attachments: 1. 042222cae.noatt2.pdf, 2. 042222cae.item2 PPT.pdf, 3. 051722-R-20sr&att.pdf

TITLE

WITHDRAWN

Recommendation to concur in the recommendation of the Climate Action and Environmental Committee to direct City Manager to take the following actions:

 

Request inclusion in the County and/or City of Los Angeles amortization studies or work with consultants to conduct a similar study and report back with the cost of doing so;

 

Direct a percentage of surplus oil revenues to the abandonment fund and any other costs associated with abandonment, alongside important one-time capital projects;

 

Direct City staff and the State Legislative Committee request the State to fully fund their portion of the abandonment liability;

 

Work with South Coast Air Quality Management District (AQMD) to prioritize leakage mitigation and detection, emissions control, and carbon capture measures;

 

Work with labor organizations in the transition of workers from the local energy sector;

 

Work with City Attorney and State Lands Commission and other applicable state entities to determine the legal options available to the City to end new drilling as soon as is legally defensible, including studying prohibiting new oil and gas extraction in all zones and, studying changing oil and gas extraction to a legal nonconforming use in all zones; and

 

Request City Manager report back with timelines and costs associated with the above recommendations as well as potential funding streams for them.  (Citywide)

 

DISCUSSION

At its April 22, 2022 meeting, the Climate Action and Environmental Committee (CAEC) received a presentation from Long Beach Energy Resources Department on planning efforts for the abandonment of the Wilmington Oil Field.  The presentation involved the City of Long Beach’s (City) role with oil field operations and abandonment planning efforts, including related risks and liabilities.  The CAEC indicated support for ending drilling as soon as legally possible and requested efforts be taken towards that effort.  To that end, the CAEC recommended that the City Council direct the City Manager to continue the City’s path to change its reliance on oil.  More specifically, the direction was to work with staff, including the City Attorney’s Office, to determine options with the State Lands Commission and other applicable State entities, and fully understand legal options available to the City as well as fully analyze the cost of an amortization study, use of oil revenues and other related efforts.

 

This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on May 2, 2022 and by Budget Manager Grace H. Yoon on May 5, 2022.

 

EQUITY LENS STATEMENT:

 

Staff will consider issues of equity and access with any program proposals brought forward to ensure the City’s commitment for everyone reaching their highest level of health and potential for a successful life, regardless of background, neighborhood, or identity.

 

TIMING CONSIDERATIONS

City Council approval is requested on May 17, 2022, to evaluate opportunities to change the City’s reliance on oil.

 

SUGGESTED ACTION

Approve recommendation.

 

Respectfully Submitted,

CINDY ALLEN CHAIR,

CLIMATE ACTION AND ENVIRONMENTAL COMMITTEE