Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background...

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October 21, 2010 Gregory Scott California State Lands Commission 1

Transcript of Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background...

Page 1: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

October 21, 2010Gregory Scott

California State Lands Commission

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Page 2: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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)

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Page 3: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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California State Lands Commission Jurisdiction

Page 4: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

Northern CA Gas

Northern CA Gas

Geysers Geothermal

Hard Rock Minerals

Salton Sea Geothermal

Santa Barbara Operations

Long Beach Unit

Huntington Beach Operations

MRMD Resource Areas

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Page 5: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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California State Lands Commission Mineral Responsibility & Oversight 

Page 6: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

State Platforms

Page 7: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

Aerial THUMS Islands

Page 8: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

State Oil Pollution Prevention ProgramsOffshore 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 pipelinedesign, 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”

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Page 9: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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Page 10: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California
Page 11: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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2991

3503 3004 208 3120

129

3242

1466145

429 410

SANTA BARBARA

HABITAT

C B A

HILLHOUSE

HOLLY

3150

Santa Barbara Oil Sanctuary

31337911

4000

1824

Rincon

Mobil/EllwoodPlant

ChevronCarpinteria

Plant Pacific OperatorsLa Conchita

Plant

MOBILRinconPlant

Sant

a Ba

rbar

a Co

unty

Vent

ura

Coun

ty

421

427

HENRYHOUCHIN

HOGAN

SLC Pipeline Locations

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State Waters

EUREKA

ELLY ELLEN

EVA

EDITH

State Waters

EMMY

FreemanBay

San Pedro

Belmont ESTHER

Los AngelesCounty Orange County

8 (g) Line

HUNTINGTONBEACH

SEALBEACH

LONG BEACH

SANPEDRO

GrissomWhite

Chaffee

3033

91392

1634263413

3095

186

425

10 milesSLC Pipeline Locations

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Subsea Pipeline Map

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Oil Spill Boom

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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

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Page 17: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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)

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Page 18: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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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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

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Page 21: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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Page 22: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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 

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Page 23: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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California State Lands Commission Marine Terminal Responsibility & Oversight 

Page 24: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

Marine Terminal Transfer Operations in Port

Page 25: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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State Oil Pollution Prevention ProgramsMarine Terminal Operations

Page 26: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

Effectiveness of Marine Terminal Program

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Page 27: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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Page 28: Gregory Scott PPt - Aquarium of the Pacific · California State Lands Commission Background Established in 1938 by passage of the State Lands Act Authority: Div. 6 or the California

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

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