Proposed Excelaron Project

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Community

The county scoping meeting on January 14th, 2010 and the public input meeting on March 29th were both important milestones for the community of Huasna Valley. About 90 concerned neighbors attended and many spoke at the meeting! Read what they said by clicking on the subject below, or watch the

video on the county website.

March 29th Public Input Meeting

Site Clean-up ---- Liquefaction ---- Noise ---- Portable Toilet

Produced Water Disposal ---- Field Development ---- Field Development Slide

Water Import ---- Water Monitoring ---- Cannon Report ---- EIR Studies ---- AG Preserve

Huasna Grade ---- Temperature Inversion ---- Groundwater

Generator ---- Applicant Funded Studies ---- Fire

January 14th County Scoping Meeting

Introduction ---- Hot Water Use ---- Water Supply ---- Request for Site Visit

Produced Water Disposal ---- Pipeline ---- Oil Production ---- Number of Wells

Noise ---- Huasna Road ---- Haul Route ---- Fire ---- Energy Alternative

Ag Preserve ---- Access Road

Public comment was also presented to the AG Committee:

Description ---- Table 2 ---- Facility ---- Traffic

CLICK TO SEE VIDEO CLIP

This video clip is public information available on the county website, featuring Baback Naficy,

Environmental and Land Use Attorney speaking at the Jan. 14th, 2010 County Planning

Commission Scoping Meeting. Mr. Naficy refers to a letter from the applicant's attorney -

that letter was sent to the county from Excelaron's attorney two days before the meeting.
 

See the entire Jan. 14th Scoping Meeting click here, then jump to item 4 under the video window

Excelaron has re-submitted their application to drill

(now 12 new wells) in the Huasna Valley...

Given the number of documents, and that the county has committed a special section of their

website to displaying them, we've listed below the links to the county site by section.

Each section may have several document and even sub-sections. Other

important documents not posted by the county will listed below with a link.

Latest Excelaron / Mankins Project Application

Project Background Documents, Reports, Studies

SLO County Planning Department Website

Project Status Update

Environmental

Notice of EIR Preparation

Request for EIR Proposal

Scoping Meeting

Planning

7-22-09 Submittal

9-24-09 Submittal

Letter from Excelaron's attorney Patrick Mitchell dated August 19, 2009,

where Excelaron is making clear their concern for the HVA website

postings and press releases.

SLO County Postings - ask John McKenzie questions regarding County Postings,

John can be reached at: jdmckenzie@co.slo.ca.us

Excelaron Withdraws Application

to Drill for Tar in the Huasna Valley

Huasna Valley, CA — March 25, 2009, The Huasna Valley Association (HVA) has learned that today Excelaron, LLC has withdrawn their application to drill for tar in the Huasna Valley. At this time, the HVA has no additional information as to why the applicant has made this change. The HVA is directing interested parties to contact Carol Florence, of Oasis Associates (805) 541-4509 or Excelaron LLC (805) 549-0760.

Ron Skinner, Coordinator for the Huasna Valley Association said “Today’s project withdrawal demonstrates that the democratic process, when driven by concerned citizens, can have a positive impact on any community and its priorities. The Huasna Valley Association continues to be committed to securing the long term sustainability of our rural agricultural community, by building on our community organization to obtain the regional distinction as an Advisory Council for the Huasna Valley and surrounding area; and by proposing certain land use designation changes to help protect our pristine environment and community”.

Excelaron's Formal Withdraw, March 25, 2009

HVA speaks at County Supervisor Meeting

during Public Comment Period - Video - April 7, 2009

Text of HVA Comments - April 7, 2009

HVA speaks on the Dave Congalton Show - April 3, 2009

HVA speaks at County Planning Commission Meeting

during Public Comment (starting at minute 37) , March 26, 2009

The HVA is dedicated to making sure that County officials hear public input on what the community feels this EIR must include and address. Some of the questions which need to be addressed include:

Excelaron claims they will produce 200 barrels of oil per day per well, when these wells have historically produced an average of 13.5 barrels per day per well and PXP's oilfield in neighboring Price Canyon produces an average of 15 barrels per day per well. Evaluating a project to produce "just four wells" is very different from evaluating a project to produce 800 barrels per day (as many as 60 wells).

In order to extract the heavy tar in Huasna, Excelaron plans to pour hot water down the well casing rather than use steam injection, which has historically been used in the existing wells and is used in PXP's oilfield in neighboring Price Canyon. Steam injection requires substantially more energy than hot water.

Excelaron's project description contains no details of the processing and disposal of hazardous excess produced water or produced natural gas.

There has been no disclosure of the road easement agreements that allow the project to use private farm roads to transport oil to Highway 166 rather than along Huasna Road and through the City of Arroyo Grande. There are no details of the engineering and road construction required to upgrade those farm roads to handle heavy traffic.

There has been no disclosure of plans for future expansion despite Excelaron having leased of over 1300 acres of mineral rights; no transparency regarding the current lawsuit by one of Excelaron's lessors that could allow transport of oil truck traffic along Huasna Road and through the City of Arroyo Grande.

The Huasna Valley Association remains firm that an incomplete project description is impossible to evaluate.

In Excelaron's March 4th press release Kit Matlick, Excelaron project manager stated, “This project will also add substantial tax revenues to county coffers, and most importantly, it will provide a much-needed domestic energy source.“ The Huasna Valley Association argues, after having researched and run the numbers, that Excelaron’s plan to run a propane powered generator to power an oilfield over its twenty-year life and trucking the tar 276 miles round trip to Oxnard to be refined into asphalt will be a tremendous waste of our domestic energy resources. And may cost more energy than it produces.

In addition, the HVA is concerned with the economics of this proposed project. Excelaron has represented that this project will generate tax dollars and jobs for the county, yet in their project documentation they state that employees will come from Kern County and Santa Maria. In 2005, PXP's Price Canyon oil field yielded tax revenue of $1,638.25 per well for a total of $204,782 (125 wells). In comparison, at the historical production rate of 13.5 barrels per day, Excelaron's four wells in Huasna might yield $6,553 per year in tax revenue for the County.

During the five year period (2003-2007) over 500,000 gallons of oil were spilled in Santa Barbara County, at a cleanup cost to the county of almost $2,000,000. The potential for costly oil spills, depressed property values, loss of agricultural resources, and loss of tourism dollars in the Five Cities area should all be weighed against the potential revenue stream from this project.

The Huasna Valley Association is also concerned that Excelaron, LLC does not possess the funds to carry out their loosely described project, much less pay for mitigations or cleanup from any spills of oil or other hazardous wastes. On 2/17/09 the Business Spectator announced that Canada-based Mogul Energy had acquired a 40% interest in the Excelaron LLC Huasna Oil Field Project for US $2.3 million. "It is anticipated that this funding will carry the project through leasing, permitting, the drilling of two production wells and the building of ancillary operating facilities."

This project will significantly affect the Huasna Valley community. We have great concerns regarding contamination of our fresh water supply, settling of odors and hazardous gases in our pocket valley, potential for oil spills into Huasna River and Twitchell Reservoir, fire safety in our high fire hazard area, noise pollution, dust, and traffic along the already hazardous and inadequate roads.

In their press release, Excelaron, LLC stated, "The decision (for the EIR) was made because the public has demonstrated much confusion about the project... (Excelaron) acknowledges the difficulty of understanding these technical documents." But, the Huasna Valley Association's associates and experts used to respond to the County’s NMD includes: scientists, engineers, geologists, lawyers, land use planning consultants, investigators, financial analysts, realtors, and farmers and ranchers. The HVA and our community has gone to great expense to hire professional consultants and have invested thousands of volunteer hours to help the community and county analyze this project... we're not confused we simply demand this project be thoroughly evaluated!

Executive Summary

Huasna Valley Association Request for Review, dated 2/19/09

Energy calculations based on the applicant's project description data show that this proposed energy resource development project may not result in a significant net energy gain for the United States and may result in a net energy loss.  An analysis of the cash flow benefit to the County and Public has not been conducted.  No consideration has been given to county-wide cumulative effects of expanded oil production or alternatives such as a pipeline for transportation of extracted oil and grid-based or renewable electric power.

This project is much too complex and has far too many unknown impacts to be approved using the Mitigated Negative Declaration CUP process.  There are serious unanswered questions remaining regarding potential scope of the project and potential piecemeal approaches, disposal of produced water and other fluids, produced natural gas and other hazardous emissions, reuse of existing orphaned wells, and transport of hazardous materials on local unstable roadways.

The Mitigated Negative Declaration is defective, under the California Environmental Qualities Act (CEQA) for the following reasons:

• Inadequate, partial, or non-existent analyses of impacts

• Analyses conducted with incomplete, applicant-supplied data

• Conflicting statements in project description make analysis impossible

• Proposes mitigations that are infeasible or have un-analyzed significant impacts

• Concludes potential impacts will be mitigated without disclosing details of mitigations

• Defers identification of mitigation measures to other agencies and uncertain future dates

• Proposes studies of impacts, to be conducted post-approval, as mitigations

• Developer's Statement lacks legally-binding language or performance standards for mitigations

• Economic arguments are used in regards to mitigations without any economic analysis

The evidence, analysis, and testimony in the record, including the comments and expert analysis presented here, support a "fair argument" that the proposed project, despite the inclusion of the proposed mitigation measures, may result in significant environmental impacts, especially pertaining to protection of the freshwater supply and air quality.  Therefore, an Environmental Impact Report (EIR) must be prepared so that the County, the Community, and the State can review and critique the many real and potential impacts of this proposed project.

READ THE FULL DOCUMENT HERE

County Mitigated Negative Declaration (Excelaron/Mankins) 02/05/09

Developers Statement dated 1/26/09

Huasna Valley Association - Request for Review 2/19/09

>> Acoustic Report I - 2/17/09

>> Acoustic Report II - 3/19/09

>> Biology Report 2/15/09

>> Energy Calculations 2/19/09

>> Hydrology / Geology Report 2/15/09

ECO SLO - Request for Review 2/19/09

Los Padres Forest Watch - Request for Review 2/18/09

HVA Community Presentation 3/1/09

2007 Excelaron Application

Project Background Documents, Reports, Studies

Operating and Assignment Agreements

Operating and Assignment Agreement dated Nov. 20, 1985

Original Project Application 6/5/07 (PDF)

> Huasna Oil Production Plan

> Attachments

A: Wildlife Survey 4/12/07

B: Botanical Report 5/14/07

C: Traffic Analysis 4/12/07

D: Cultural Resource Study (missing – see Supplemental Information)

Supplemental Information to Original Application 3/26/08 (PDF)

> County Hold Letter

> Exhibits: Photos

> Attachments

A: Cultural Resource Mitigation Plan 2/21/08

B: Oak Tree, Well’s Manzanita and Creek Crossing Evaluations 3/26/08

Appendix 1 – Potential Impacts to Oak Trees

Appendix 2 – Topo Map – Oak Trees (see Re-Submittal Package 5/21/08)

C: Shoe Box Lighting Fixture Data

D: Rehabilitation of an Oil Well

E: Acoustical Analysis

F: Nesbittt Quitclaim Deed

Re-submittal Package 5/21/08 (PDF)

> County Documents

> Site Plan Maps:

> Well Sites

> Access Road

> Proposed Shipping Site

Revised Application 9/2/08 (PDF)

> Agency Referral Check List

> Vicinity Map – Site Plan

1: Changes to Project Description

2: Summary of Additional Analysis

3: Explanation of Huasna Cyclic Program

4: Hydrogen Sulfide (H2S)

> Attachments

1: Aerial Photo and Mileage - Proposed Truck Route

2: Structural Bridge Assessment

3: Sour Gas Purification

4: Dust Suppressant

5: Response to APCD Comment Letter 7/30/08

Reports

Traffic

> Report 9/15/08 prepared for Excelaron

> Report/Analysis 10/27/08 prepared for Excelaron

> Supporting files for 10/27/08 report follows:

>> Accident data - Kilmer

>> Alamo - 166 ADT Count

>> Enclosure A 9/15/08

>> Enclosure B 9/15/08

>> Enclosure C 9/15/08

>> Enclosure D 9/15/08

>> HWY 166 ADT and Truck Traffic Caltrans

>> Huasna Road County

>> Huasna Townsite County

>> HWY 166 at Alamo Creek 1

>> HWY 166 at Alamo Creek 2

>> HWY 166 at Alamo Creek 3

>> HWY 166 at Alamo Creek 4

>> HWY 166 at Alamo Creek 5

>> HWY 166 near Alamo Creek 1

>> HWY 166 near Alamo Creek 2

>> HWY 166 near Alamo Creek 3

>> HWY 166 near Alamo Creek 4

>> HWY 166 near Alamo Creek 5

>> Report signature page

>> Speed Zone Data

Air Emissions

> Report 9/22/08 prepared for Excelaron

> Report 11/5/08 prepared for Excelaron

> Report 12/8/08 prepared for Excelaron

Water Quality

> CA Regional Water Quality Control Board Response 06/06/08

Acoustic

> Acoustic study by D. Dubbink for Excelaron 3/14/08

Botanical

> Report prepared for Excelaron

Biological

> Report 10/16/08 prepared for Excelaron / Sage Institute Inc David Wolf re: Red Legged Frog

Archeological

County Agencies Response / Comments

Planning

> Ag Preserve Review Committee Meeting Minutes 5/19/08

> Ag Preserve Review Committee Staff Report 5/19/08

Public Works

> Public Works Comment 9/15/08

> Internal Email 9/4/08

> Huasna Road Bridges Report 7/28/08

> Location of Huasna Road Bridges Map

Environmental Health

> Site Inspection Report 7/3/08

> Site Inspection Report 7/10/08

Agricultural Commissioner

> AG Commissioner Response 9/11/08

Air Pollution Control District (APCD)

> Excelaron Response to APCD Comment Letter 7/30/08 (see revised application 9/2/08)

> Report - APCD San Luis Obispo County date 1/5/09

Sheriff

Cal Fire

> Agency Response to Project 7/27/08

> Agency Response to Porter Ranch Access 9/2/08

San Luis Obispo APCD

> Letter 5/14/08

> Letter 7/10/08

> Letter 7/28/08

Santa Barbara APCD

State Agencies / Federal Agencies / Other Agencies

Cal Trans

> Cal Trans dated 10/8/08

> Cal Trans memo dated 11/19/08

RWQCB

California Water Quality Board

> Response dated 6/6/08

California Fish and Game

> CDFG 9/23/08

Santa Barbara County

> SB Co. Planning Dept 9/18/08

Division of Oil and Gas

> Agency Response Regarding Primacy for Class 2 Injection Wells 9/11/08

City of Arroyo Grande

> City Letter to the County 7/24/08

> City Letter to the County 9/23/08

Other Agencies

DOGGR Huasna Oilfield Well Files

> DOGGR Letter to Ron Skinner Regarding Feasibility of Hot Water Injection 8/4/08

> Letter to County 9/11/08

> Petroleum Consultant Letter to County Regarding Inconsistencies in Excelaron's Project Description 8/16/08

> 1980 Lorena Project EIR

> Citizen Letters Written to County

> USGS Map Showing Porter Ranch Haul Route

> Australian Oil Company - 2008 Annual Report 10/26/08

> Hot Water vs. Steam email from County to Excelaron

If you have questions for the applicant of this oil production project, you may want to contact their land-use consultants at OASIS ASSOCIATES in San Luis Obispo or their public relations firm BARNETT COX in San Luis Obispo.

The Huasna Valley Association is a group of concerned residents of the Huasna Valley and neighboring communities. You may want to ask us questions about why this project may not make sense unless examined by an Environmental Impact Report, please feel free to contact ron@huasnavalley.org and attend any of the meeting arranged by the HVA.

Oil drilling history in Huasna

Oil exploration has occurred in the Huasna Valley since the late 1800’s.  There have been 46 oil wells drilled, but only three wells have produced significant oil.  These wells are located in the meridian anticline, which is a geological structure forming the ridge to the west of the Huasna Valley.  Although the extent of oil in the meridian anticline is not well mapped, it is considered a discrete field and the fact that there is oil in the meridian anticline does not mean that there is oil in the Huasna Valley.  Oil contained in the meridian anticline (also known as the Huasna Oilfield) is extremely viscous and tar-like.  Due to the economics of extracting this type of oil, the Huasna Oilfield has never been put into production.  As oil becomes more expensive and extraction techniques improve, marginal oilfields like the Huasna Oilfield MAY be developed.

Huasna Valley Association

We are a group of residents of the Huasna Valley (and neighboring communities).  Our intent is not to oppose oil drilling in general or oil drilling in the Huasna Valley.  Our mission is to assure that production of the Huasna Oilfield meets our community standards to preserve the rural/agricultural setting of the Huasna Valley, protect the environment from water, soil, air, and noise pollution, and insure the health and safety of our community.

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