October 21, 2010 Gregory Scott California State Lands Commission

Transcription

1 October 21, 2010 Gregory Scott California State Lands Commission 1

2 California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California Public Res. Code Commission given jurisdiction over all Oil and Gas Development on Sovereign Lands Shares responsibility of oversight of oil drilling and production with the California Division of Oil, Gas, and Geothermal Resources Statutory authority over all Marine Terminal oil transfer operations in 1990 (Lempert Keene Seastrand) 2

3 California State Lands Commission Jurisdiction Sovereign Lands Coastal tide and submerged lands, and lands underlying rivers, streams, lakes, bays. Approximately 4 million acres and 1100 miles of coastline School Lands Onshore State owned lands for mineral and geothermal development. Approximately 1.4 million acres. Marine Terminals terminals, terminal pipelines, at all state coastal ports and inland terminals on navigable waterways 3

4 Northern CA Gas Northern CA Gas Geysers Geothermal Hard Rock Minerals MRMD Resource Areas Santa Barbara Operations Salton Sea Geothermal Long Beach Unit Huntington Beach Operations 4

5 California State Lands Commission Mineral Responsibility & Oversight Mineral Resources Management Division is responsible for all mineral leasing, development oversight, and protection of over 130 oil, gas, geothermal, and mineral leases 18 active offshore oil and gas leases 5 State water platforms and islands 36 offshore oil, gas, and utility pipelines 46,000 barrels of oil per day from state water platforms and coastal islands 60,000 barrels of oil per day from federal water platforms 5

6 State Platforms

7 Aerial THUMS Islands

8 State Oil Pollution Prevention Programs Offshore Oil Production Operations Engineering review and approval of well drilling activities in state waters Engineering review and approval of all offshore platform structural modifications and construction projects Engineering review and approval of offshore oil and gas pipeline design, maintenance, inspection and testing Technical staff surveillance and inspection of all platform safety components and spill prevention equipment on weekly/monthly basis Full system safety audit of every component on all offshore platforms on a 5 year return frequency Evaluate operators capability and spill response resources during surprise spill drills 8

9 Drilling & Facilities (Petroleum/Civil Engineers) Review and Approve: New Well and Redrill Proposals Casing/Cementing Programs depths, burst/collapse criteria, zone isolation Directional Plans/Muds Programs Spill Contingency Plans/BOP Procedures Facility Proposals/Special Projects On Site Inspections: Witness critical operations conductors, casing, cementing, BOP s Ensure adequate spill response equipment/supplies Verify proper installation of facilities 9

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11 Pipelines and Spill Drills (Petroleum/Civil Engineers, Geologist) Review and Approve: Pipeline Testing internal (smart pig/hydrotest) Pipeline Test/Results CSLC calculations External Protection Program wrapping, cathodic protections Geotechnical Evaluations On Site Inspections: Witness Internal Pipeline Tests Witness External Pipeline Repairs/Tests Witness spill drill exercises desktop and deployment 11

12 SLC Pipeline Locations Mobil/Ellwood Plant HOLLY SANTA BARBARA Santa Barbara Oil Sanctuary 1824 Chevron Carpinteria Plant HILLHOUSE 4000 C B A HENRY HOGAN HOUCHIN Pacific Operators La Conchita Plant Rincon 1466 Santa Barbara County Ventura County MOBIL Rincon Plant HABITAT

13 SAN PEDRO SLC Pipeline Locations San Pedro Bay State Waters LONG BEACH Grissom White Freeman Chaffee Belmont 186 Los Angeles County 3095 SEAL BEACH ESTHER 3413 EVA Orange County HUNTINGTON BEACH miles 163 EMMY (g) Line EDITH State Waters ELLY ELLEN EUREKA

14 Subsea Pipeline Map

15 Oil Spill Boom

16 Petroleum Structures (Civil Engineers) Review and Approve: Design and Construction structural modifications, equipment loading, etc. Contractor Safe Work Plans Barge/Boat Anchoring Plans crane lift and welding procedures/certifications Oil Spill Contingency Plan, Critical Operations and Curtailment Plan Site clean up and restoration procedures 16

17 MRMD Operations & Compliance Inspection Program Verifies regulatory compliance Promotes safety system reliability Safety Audit Program Facility condition assessment & design review System safety and risk/hazard analysis Review Spill Plans & Operating Manuals Safety Assessment of Management Systems (SAMS) 17

18 Monthly Platform Inspection Areas covered: Platform shut down Wellhead shut in Pipeline shut down Flow safety, high & low level and pressure shutdowns Hydrocarbon & H2S gas detection systems Fire detection & suppression systems and equipment Spill response equipment emergency generator Average of 2,922 physical tests per month Two three days on site to complete Deficiencies corrected immediately or equipment is shut down and isolated. 18

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20 Safety Audit Program Comprehensive design analysis of 30+ year old marine facilities Verification of equipment fitness for purpose and maintenance programs Evaluation of operating personnel qualifications and organizational safety culture Monitor correction of deficiencies Complements and enhances existing Engineering and Inspection activities 20

21 Effectiveness of Offshore Pollution Prevention Programs Oil Operations 168 million barrels of oil produced from offshore state lease platforms Incidences are less than 12 per year Incidence average volume is less than one ounce Average volume in past 10 years is less than ½ barrel/yr Pipelines inspected and tested annually, and all meet acceptable criteria for continued service Will introduce new requirements for BOPE certification on all drilling wells on state leases 21

22 Offshore Producing Environment in State Waters Shallow water depth, 55 to 211 water depth range Shallow well depth, approximately 3,500 to 5,000 feet vertical subsea Low pressure producing environment (generally production operations in old, pressure reduced fields) Few offshore facilities Low volume of production Approx 100 BOPD well production Artificial lift requirement very few wells capable of natural flow 22

23 California State Lands Commission Marine Terminal Responsibility & Oversight All Marine Terminal oversight performed by Marine Facilities Division staff 27 Marine Terminals in ports and coastal sites >6000 oil transfers each year at these sites 91 million gallons of oil transferred daily 23

24 Marine Terminal Transfer Operations in Port

25 State Oil Pollution Prevention Programs Marine Terminal Operations Witness oil transfers at all terminals in CA ports Regulations developed to ensure safe operations at all marine terminals Regulations developed to increase training standards for all operating personnel, management, and outside contractors working at terminals Regulations developed for more stringent terminal pipeline testing and inspection Marine Oil Terminal Engineering and Maintenance Standards (MOTEMS) regulations adopted by Building Standards Commission 25

26 Effectiveness of Marine Terminal Program 26

27 Conclusions Oil production facilities is State waters are carefully monitored and maintained at a high level of integrity Oil spill prevention and surveillance programs are effective in assuring a high level of system efficiency and safety State programs achieve a high level of oil producing operator cooperation and an environment of increased safety awareness State programs result in an elevated level of confidence in facility integrity and capability to operate within design limits 27

28 Conclusions Marine Terminal pollution prevention programs and regulations have resulted in greater terminal structural integrity, better trained personnel, and a declining incidence of spills State oil producing leases are less susceptible to uncontrolled releases as experienced in the Gulf because of the considerable differences in operating environment Track record relative to spills incidences and volumes from oil production facilities and marine terminals has been consistently low, and declining 28