1.0 INTRODUCTION 1.0 INTRODUCTION. 1.1 Project Overview. Project Planning Information. Project Information

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1 1.0 INTRODUCTION 1.1 Project Overview This document is a Draft (DFEIR) prepared in accordance with the California Environmental Quality Act (CEQA) and CEQA Guidelines to assess potential significant environmental impacts of the Orcutt Hill Resource Enhancement Plan (Project) located at the Orcutt Oil Field near Santa Maria in northern Santa Barbara County. The County of Santa Barbara is the public agency with principal responsibility for review of the proposed Project and is therefore the lead agency for preparation of the DEIR. The Project Applicant is Pacific Coast Energy Company ( PCEC or Applicant ). As a consequence of the Applicant s Project, if approved, the existing diatomite Oil Drilling and Production Plan (No. 05PPP ) would be replaced, and the existing site would be modified and expanded upon. No amendments to the County s land use codes and plans are necessary for implementation of the proposed Project. The proposed Project includes the installation and operation of 96 new wells and ancillary equipment on eight previously disturbed pads (from prior operations) referred to as pods. In addition, the Applicant the proposed Project also proposes includes the existing operation of up to an additional theof 96 oil and gas wells that are already authorized under an active Oil Drilling and Production Plan. The current Oil Drilling and Production Plan, approved in 2006, permits the operation of the existing 96 diatomite cyclic steamed wells on seven surface well pods. The Project includes the drilling of up to an additional up to 48 "replacement" wells at alternate locations on any of the approved well sites (pods) if any of the 192 (existing and proposed) diatomite wells prove to be uneconomic. The DEIR evaluates the impacts of drilling of up to 144 oil and gas wells. Access would continue to be provided off of East Rice Ranch Road, Graciosa Road, and U.S. Highway 101. The property is a 4,024.7 acre parcel zoned Agricultural- II-100 (AG-II-100) and shown as Assessor's Parcel Number The Project is located at 1555 Orcutt Hill Road and is within the State-designated Orcutt Oil Field and is in the Fourth Supervisorial District. The parcel would continue to be served by Santa Barbara County Fire Protection District. Section 2.0, Project Description, provides a detailed description of the proposed Project and its components and features. Table 1-1 Project Planning Information Project Title Case Number Project Information Orcutt Hill Resource Enhancement Plan 13PPP Lead Agency County of Santa Barbara, 123 East Anapamu Street, Santa Barbara, California Contact Person Applicant Matt Young, County of Santa Barbara, Planning and Development Department, Energy and Minerals Division mayoung@co.santa-barbara.ca.us Pacific Coast Energy Company, 515 South Flower Street, 48th Floor, Los Angeles, California 90071, John Fox, Environmental, Health & Safety Field Analyst, EIR April 2016

2 Comprehensive Plan Designation Zoning Ordinance Site Size Project Location Assessor s Number Access Latitude Longitude District, Parcel and Project Information Agricultural Commercial (AC) Agriculture II -100 acre minimum lot size (AG-II-100), County Land Use and Development Code. The proposed Project is located on Assessor Parcels and Most of the proposed Project facilities would be located on the northern portion of parcel -074, which is 4,125 acres in area. One proposed pipeline segment would be located on the southern portion of parcel 041, which is 127 acres in area Orcutt Hill Road and Access to the Project area is provided from East Rice Ranch Road to Orcutt Hill Road, then along existing oil field roads. Access to the Project area is also provided from U.S. Highway 101 by an existing oil field road located approximately 1.2 miles south of Clark Road, and from Highway 135 by Graciosa Road and existing oilfield roads. N 34 49' " and W ' 28.5" 1.2 The Environmental Impact Report Process Purpose and Intended Uses of the Environmental Impact Report The California Environmental Quality Act ( CEQA ), Public Resources Code sections et seq., requires that all state and local governmental agencies consider the environmental consequences of projects over which they have discretionary authority prior to taking action on those projects. This Draft (DFEIR) has been prepared to satisfy CEQA, and the State CEQA Guidelines, Title 14 of the California Code of Regulations, Chapter 3, Section et seq. An Environmental Impact Report (EIR) is a public informational document designed to provide decision makers and the public with an analysis of the environmental effects of a proposed project, to indicate possible ways to reduce or avoid significant effects, and to describe reasonable alternatives to a project. An EIR must also disclose significant environmental impacts that cannot be avoided, growth-inducing impacts, effects not found to be significant, and significant cumulative impacts of past, present, and reasonably foreseeable probable future projects. As an informational document (see Section 15121(a) of the CEQA Guidelines) the EIR is intended to inform the County, other public agencies with discretionary authority over aspects of the project, the general public, the local community, and other organizations, entities and interested persons of the project s scope, significant environmental effects, feasible measures to avoid or minimize the significant effects, and a reasonable range of feasible alternatives to the project that would avoid or substantially lessen the significant effects. The environmentally superior alternative is selected as required by the California Environmental Quality Act (CEQA.). The State CEQA Guidelines, Section (d) (2), state that if the environmentally superior alternative is the No Project Alternative, then the next most environmentally preferred alternative must also be identified. While identification and disclosure of the environmentally superior alternative is required by CEQA, the lead agency is not required to approve the environmentally superior alternative. Before any action may be taken on the proposed Project, the County of Santa Barbara, as lead agency under CEQA, must certify that it has reviewed and considered the information in the Final EIR 14EIR April 2016

3 (consisting of the Draft Final EIR, comments submitted during the Draft EIR public review period and responses to all comments) that it has exercised its independent judgment and analysis, and that the Final EIR has been completed in compliance with the requirements of CEQA. Certification of the Final EIR by the lead agency does not approve or deny the proposed Project. The primary objective of this process is the preparation of an Environmental Impact Report (EIR) under the California Environmental Quality Act (CEQA) to meet the legal requirements of a complete, adequate, and objective report of the proposed Project's environmental consequences. This report is to serve as an informational document for the public and for County of Santa Barbara decision-makers. The process would culminate with a hearing during public review of the Draft EIR followed by a hearing before the Planning Commission to consider certification of a the Final EIR. The Planning Commission would act as the decision-maker for the proposed Project. The Planning Commission decision could then be appealed to the Board of Supervisors Agency Use of the Document Section 15124(d) of the CEQA Guidelines requires that an EIR contain a statement briefly describing the intended uses of the EIR. This statement includes identifying the ways in which the Lead Agency and any responsible agencies would use this document in their approval or permitting processes Local and Regional Agencies The County is the Lead Agency for this EIR, which would be used, among other purposes, to provide information to the County Planning Commission in determining whether or not to approve the proposed Project. All feasible mitigation measures identified in the EIR that are applicable to the Applicant s proposed Project would be adopted and incorporated into the Project or made conditions of Project approval. For the purposes of CEQA, the term "Responsible Agency" includes all public agencies other than the Lead Agency that have discretionary approval power over the Project. The Santa Barbara County Fire Public Health Department (SBCFD)Environmental Health Services Hazardous Material Unit is a California Environmental Protection Agency Certified Unified Program Agency (CUPA). The CUPA oversees all programs associated with hazardous materials. This includes the Business Plan Program and the Hazardous Waste Generator Program; Underground Storage Tank Program; California Accidental Release Program and Risk Management Prevention Program; Uniform Fire Code (UFC); and Aboveground Storage Tank Program. The Fire-Hazardous Materials Unit also oversees the Leaking Underground Fuel Tank and Site Mitigation Unit Programs, which ensure appropriate assessment and remediation of all hazardous materials releases. Included in these programs is the reporting of unauthorized releases of hazardous materials, within the Proposition 65 requirements. The Santa Barbara County Fire Public Health Department is a Responsible Agency that may use the EIR to obtain additional information on the proposed Project for changes in the Hazardous Waste Generator and Business Plan. The Santa Barbara County Fire Department (SBCFD) is the agency responsible for enforcement of the Uniform Fire Code (UFC). The Central Coast Regional Water Quality Control Board (RWQCB), Region 3, is responsible for establishing wastewater discharge requirements and for issuing storm water pollution prevention plan permits. The Los Angeles Central Coast RWQCB is expected to use the EIR in its review of the proposed Project. 14EIR April 2016

4 The Santa Barbara County Air Pollution Control District (SBCAPCD) is the agency responsible for issuance of an Authority to Construct (ATC) permit and a Permit to Operate (PTO), both of which will be required for the proposed Project if it is approved. To fulfill its obligations as a Responsible Agency, the SBCAPCD would rely on information contained in this EIR as part of the ATC/PTO permitting process State Agencies The California Division of Oil, Gas and Geothermal Resources (DOGGR) is the agency responsible for issuance of well permits for production and injection wells and oversees the drilling, operation, maintenance, and plugging and abandonment of oil, natural gas, and geothermal wells. and tanks and facilities per DOGGR regulation AB DOGGR is expected to use the EIR in its permitting review of the proposed Project. The California Department of Forestry and Fire Protection, Office of the State Fire Marshall (CSFM) is the agency responsible for the review of all necessary emergency/spill response and prevention plans to ensure that a project is in compliance with applicable codes, standards, and guidelines. The EIR is made available to CSFM to aid in the review of the proposed Project. The California Department of Toxic Substances Control (CDTSC) is the agency responsible for ensuring that a satisfactory Hazardous Materials Management Plan is established for the proposed Project. CDTSC may refer to the EIR for details regarding the way in which the proposed Project would meet hazardous materials and waste handling requirements. The California Department of Fish and Wildlife (CDFW) is the agency responsible for the review of all biological resource issues to ensure that a project is in compliance with applicable codes, standards, and guidelines. The EIR is made available to CDFW to aid in the review of the proposed Project Federal Agencies The Office of Pipeline Safety (OPS), which is part of the federal Department of Transportation (DOT), is responsible for inspecting hazardous pipelines during construction to ensure they comply with all DOT regulations. Their inspections would include both the pipelines and the odorant facilities. The OPS may use the EIR to obtain additional information on the proposed Project. The U.S. Environmental Protection Agency (EPA) may issue requirements for the Spill Prevention Control and Countermeasure Plan (SPCCC) and may use the EIR to obtain additional information on the proposed Project. The U.S. Fish and Wildlife Service (USFW) may issue requirements related to biological resources and may use the EIR to obtain additional information on the proposed Project. The Army Corps of Engineers (ACOE) may issue requirements related to biological resources and may use the EIR to obtain additional information on the proposed Project Notice of Preparation, Project Overview and Scope of Analysis The County of Santa Barbara Energy and Minerals Division issued a Notice of Preparation (NOP) for an Environmental Impact Report on February 13, A Project Overview and a Scope of Analysis were provided as attachments to the NOP. A scoping meeting was held on March 6, 2014 at 6:00 p.m. in the 14EIR April 2016

5 Betteravia Government Center, Board of Supervisor s Conference Room, 511 East Lakeside Parkway, Santa Maria, CA The public comment period for the NOP closed at 5:00 p.m., March 14, Impacts Considered Less Than Significant The following environmental topics are excluded from analysis in this DEIR because the proposed Project is believed to have no potential for environmental effects related to these issues. Aesthetics & Visual Resources: The proposed Project would be located entirely within the interior portion of the Orcutt Oil Field, in areas which are generally not visible from Route 1 or Highway 101. The closest residence to the Project Site is approximately 1.4 miles north of the Project area. Aesthetics/Visual impacts are expected to be less than significant. Noise: The Project Site is located in a rural area with generally low ambient noise levels. The major noise source in the project area is the existing oil field operations. No sensitive receptors (i.e., residences) are located on or adjacent to the proposed Project Site. The nearest existing sensitive receptors would be residences in Orcutt, approximately 1.4 miles north of the Project area. No short-term or long-term noise impacts are anticipated. Agricultural Resources: Current agricultural uses on the Project parcel include cattle grazing and bee keeping. Soils on the site are not considered to be prime agricultural soil and due to marginal soil conditions, the proposed Project Site is not considered suitable for the production of row crops or other similar agricultural products. The proposed Project facilities would be located in areas previously disturbed and used for oil development purposes and would not result in the conversion of any grazing area to a non-agricultural use. The proposed Project would result in activities similar to existing oilfield operations and would not conflict with ongoing agricultural activities on the approximately 4,000-acre parcel. Therefore, the proposed Project is expected to have a less than significant impact on agricultural resources. Population & Housing: The proposed Project is expected to have no impact because the proposed Project would not induce growth, either directly or indirectly, it would not result in the removal of any housing, and it would not result in the extension of utilities. It does not propose housing (or infrastructure that facilitates growth or housing development). The proposed uses would not displace existing housing or substantial numbers of people. 1.3 EIR Contents and Guide for the Reader EIR Contents The Applicant submitted a New Oil Drilling and Production Plan Application to the County s Planning and Development Department on February 15, 2013 which initiated the application process and included a detailed project description and technical reports. Section 2.0 of this EIR provides details of the Project as proposed by the Applicant, with clarifications and explanations added by the EIR consultant in order to provide sufficient information for the analysis of potential impacts. Section 2.0, Project Description, was reviewed by the Applicant to ensure clarifications and explanations added by the EIR consultant were accurate prior to completion of subsequent sections of the EIR, thereby providing the basis for the analysis in Section 4.0, Environmental Impact Analysis. In addition, numerous assumptions and design aspects of the Project as proposed by the Applicant are assessed and verified by this EIR in Section 4.0. The Planning Application is available for review on the County of Santa Barbara s website at Under Energy & Minerals select Projects, and then select Pacific Coast Energy Co. 14EIR April 2016

6 The EIR is divided into the following chapters: Executive Summary Provides an overview of the proposed Project, a summary of the significant impacts and associated mitigation measures identified for the proposed Project. Impact Summary Table Provides a summary of the identified impacts for the proposed Project. The table also provides a summary of identified mitigation measures for each impact. Section 1: Introduction Provides an overview of the proposed Project evaluated in the EIR. The section also discusses agency use of the document, and provides a summary of the contents of the EIR. Section 2: Project Description Provides objectives stated by the Applicant for its proposed Project, and a detailed description of the Project including construction of the new well pods, the installation and operation of new wells, the installation and operation of connecting pipelines and the installation and operation of an equipment pad and a multiphase booster station. Section 3: Cumulative Projects Provides a description of the projects that have been included in the cumulative projects analysis. The cumulative analysis contained in this document covers the cumulative impacts of past, present and reasonably foreseeable projects located in the vicinity of the proposed Project. Section 4: Environmental Impact Analysis/Regulatory Setting Describes the existing conditions found in the proposed Project area and vicinity, and assesses the potential environmental impacts that could occur if the proposed Project were implemented. These potential impacts are compared to various Thresholds of Significance (or significance criteria) to determine the severity of the impacts. Mitigation measures intended to reduce significant impacts are identified where feasible. Section 5: Alternatives Provides descriptions of the Project alternatives that were evaluated in this document. The section also presents an alternative screening analysis that was used to identify alternatives that could reduce significant impacts associated with the proposed Project. Provides an analysis of alternatives to the proposed Project that could lessen any identified significant impacts while still achieving most of the basic Project objectives. It also includes the impact analysis for the alternatives evaluated in the EIR. Finally, it summarizes the environmental advantages and disadvantages of the alternatives as compared to the proposed Project, and it identifies the environmentally superior alternative. Section 6: Other CEQA-Mandated Sections Discusses the significant irreversible environmental changes which would be caused by the proposed Project should it be implemented. The section also discusses the growth inducing impacts that may result from the proposed Project and known areas of controversy. Section 7: Summary of Mitigation Measures and Mitigation Monitoring Program Contains a listing of all identified mitigation measures that should be included as conditions of Project approval for the Applicant s proposed Project. In order for each component to be implemented, their implementation requirements, verification schedules, and parties responsible for implementation and verification are also included. Section 8: List of EIR Preparers, Agencies and Individuals Consulted During EIR Preparation Identifies and presents the qualifications of those who prepared the document. Lists reference materials used and persons contacted to prepare the document. Section 9: References Includes all the references used in the document. The EIR also contains a number of appendices that support the EIR and its analysis: Appendix A Project Description Design Data Appendix B Air Emission Calculations Appendix C Biological Reports Appendix D - DOGGR Letter on Seeps and Other Issues Letter 14EIR April 2016

7 Appendix E - Response to Comments Appendix F - AMEC 2015 Geologic and Geotechnical Investigation Report These appendices are available in electronic format on the CD attached to the inside front cover of the paper copy of the EIR notebook. All information is also available at the locations listed in Section Significance Criteria The California Environmental Quality Act requires that the EIR base its determination of whether or not a project impact is significant on adopted policies and standards, which serve as significance thresholds. The policies and standards applied by the EIR to serve as significance thresholds are derived for the most part from County policies, primarily from the County s Environmental Guidelines and Thresholds Manual. For some environmental issues, the EIR applies standards established by other regulatory agencies, such as the Regional Water Quality Control Board (in the case of water pollution standards) and the Santa Barbara County Air Pollution Control District (in the case of air pollutant standards). For impacts related to certain public safety hazards associated with oil production and transport, this EIR uses the well-established significance criteria adopted by the County of Santa Barbara. Appendix G of the State CEQA Guidelines provides a list of generic questions intended to guide lead agencies in determining what level of CEQA documentation is appropriate for a given project (e.g., a negative declaration or EIR). These questions were used to guide the County of Santa Barbara in writing the Notice of Preparation of a Draft EIR for the proposed Project. The EIR follows the County s practice of using those questions as a framework for addressing project impacts in more detail with careful consideration given to specific pertinent policies adopted by the County or other relevant agencies. Each analytic section of the EIR identifies the significance thresholds used to assess impacts related to the specific environmental issue under consideration. The same significance thresholds are used again when the EIR evaluates the effectiveness of any mitigation measures or Project Alternatives to reduce or avoid potential impacts. 1.4 Final EIR Preparation and Certification Process This DEIR is being was circulated for public review for a period of 45 days (the public review period required by CEQA). Public agencies and members of the public are invited to provide written comments on the DEIR. The DEIR (paper copy form) as well as theis Final EIR would will be available to the general public for review at the following locations: Santa Barbara Public Library 40 East Anapamu Street Santa Barbara, CA Santa Maria Public Library 421 South McClelland Street Santa Maria, CA The DFEIR is also available on the County of Santa Barbara s website at All comments on the DEIR must be received no later than March 26 and should be directed to: 14EIR April 2016

8 Mathew Young County of Santa Barbara Planning and Development Department Energy and Minerals Division 123 East Anapamu Street Santa Barbara, California Upon completion of the 45-day review period, the County would reviewed and prepared written responses to each comment as required by CEQA and the CEQA Guidelines. A This proposed Final EIR ( FEIR ) would was then be prepared, incorporating all of the comments received, on the DEIR as well as written responses to received comments on the DEIR, and the DEIR,; it includes along with any all changes to the DEIR that have resulted from the comments received. The FEIR would then will be provided to the County of Santa Barbara Planning Commission for public hearing and certification. The proposed FEIR would be available to the public and agencies at least 10 days prior to a public hearing by the Planning Commission. All public agencies and persons who submitted comments on the DEIR during the 45-day public review period would will receive written responses to their comments and be notified of the availability of the proposed FEIR and the date of the Planning Commission public hearings concerning certification of the FEIR at least 10 days prior to the public hearings. The Planning Commission would will consider the findings required by CEQA for certification of the FEIR, and the FEIR must be certified by the County of Santa Barbara (as lead agency) prior to the decision-making process for Project approval. 1.5 CEQA Findings for Proposed Project Approval As part of certifying the FEIR, the County of Santa Barbara Planning Commission would make findings that comply with the requirements of CEQA Guidelines Sections and with Public Resources Code Section Accordingly, the Planning Commission would make findings regarding the extent and nature of the significant impacts identified in the FEIR. CEQA and the CEQA Guidelines require that: No public agency shall approve or carry out a project for which an EIR has been certified which identifies one or more significant environmental effects of the project unless the public agency makes one or more written findings for each of those significant effects, accompanied a brief explanation of the rationale for each finding. While the Planning Commission would determine whether to approve the proposed Project, findings must still be made prior to this determination. The possible findings are: 1. Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the final FEIR. 2. Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency. 3. Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the final FEIR. 14EIR April 2016

9 1.6 Potential Project Permits Various permitting requirements must be met prior to implementation of the proposed Project. Table 1-2 summarizes local, statestate, and federal Federal permits that may be required for the Project. Table 1-2 Permits/Approvals Agency Local Agencies Applicable Permit/Clearance County of Santa Barbara Oil Drilling and Production Plan Zoning Clearance Building Permits Grading Permits Santa Barbara County Air Pollution Control District Authority to Construct Permit to Operate Santa Barbara County Public Health Department Business Plan Approval Santa Barbara County Fire Department Business Plan Approval Compliance with NFPA Requirements Hot Work Permits Santa Barbara County Office of Emergency Management Emergency Response Plan State Agencies Division of Oil, Gas, and Geothermal Resources Permits to ddrill, deepen, redrill, rework, abandon and well stimulation Requires spill contingency, injection, pipeline management, preventative maintenance, and water management plans Permit to Conduct Well Operations California Department of Forestry and Fire Protection, Operations and Management Plan. Office of the State Fire Marshall Integrity Management Plan. Emergency Response Plan, Spill Response Plan. California Department of Toxic Substances Control Hazardous Materials Management Plan Regional Water Quality Control Board Wastewater Discharge Requirements Standard Urban Storm Water Mitigation Plan California Department of Fish and Wildlife (CDFW) Biological resources permits Federal Agencies U.S. Environmental Protection Agency Spill Prevention, Control and Countermeasure (SPCC Rule) U.S. Fish and Wildlife Service (USFW) Biological resources permits Army Corps of Engineers (ACOE) Biological resources permits 1.7 Mitigation Monitoring CEQA requires that the lead agency adopt a mitigation monitoring and reporting program (MMRP) for any project for which it has made findings pursuant to Public Resources Code Section (see above). 14EIR April 2016

10 The MMRP is intended to ensure the implementation of all mitigation measures that are adopted following the preparation of an EIR. This DFEIR includes a Draft Final Mitigation Monitoring Program (Section 8). An updated The Mitigation Monitoring and Reporting Program would be was prepared as part of the FEIR to and reflects any changes to mitigation measures as a result of the DEIR public review process. For this Project the mitigation measures identified would be part of the Oil Drilling and Production Plan issued to the Applicant by the County. 14EIR April 2016