South Ellwood Project

Photo credit: Commission staff

Platform Holly/Piers 421/Venoco Bankruptcy

Sep 6, 2024 | Oil and Gas

Current Status

In early September, the Commission completed the permanent plugging and abandonment of Platform Holly’s 30 oil and gas wells located offshore of the City of Goleta. This represents a milestone in California’s legacy of oil and gas development because these were the last remaining offshore production wells associated with a platform in state waters of the Santa Barbara Channel, the birthplace of offshore oil production. Technical studies supporting the coming Environmental Impact Report are underway. We anticipate releasing a Notice of Preparation in late 2024 or early 2025. That will be followed by the development of a draft Environmental Impact Report for public review and comment. ExxonMobil will decommission Platform Holly at its expense after the Commission certifies the Environmental Impact Report and approves the Project. More information is available in the Phase 2 agreement and agenda item 74.

Background

In April 2017, Venoco quitclaimed its interests in the South Ellwood Field leases, including Platform Holly and the Ellwood Beach pier leases near the City of Goleta. The quitclaims ended commercial oil and gas production in state waters in the Santa Barbara Channel and returned operational control of these assets to the Commission. California’s Coastal Sanctuary Act prohibits the Commission from issuing new offshore oil and gas leases.

The Commission selected Beacon West Energy Group, LLC as its contractor to operate and maintain Platform Holly and the Ellwood Onshore Facility. Beacon West, under the Commission’s oversight, began ensuring the security and safe daily operations and maintenance at Platform Holly and the Ellwood Onshore Facility in September 2017.

ExxonMobil, the successor in interest to the prior operator, Mobil Oil Corporation, and Venoco’s predecessor for these lease interests, agreed to fulfill its obligation to abandon the 30 wells on Platform Holly, seven of which were Venoco re-drilled wells and are state obligations, and the two near-shore wells on what was Oil & Gas Lease 421 in Goleta (Piers 421 wells).

The Piers 421 wells were successfully plugged and abandoned in 2019. Plug and abandonment work on Platform Holly began in October 2019, only to be halted in March 2020 due to the Covid-19 pandemic and related physical distancing requirements. The Commission maintained 24-hour staffing at Platform Holly and the Ellwood Onshore Facility during the hiatus to ensure health and safety, given the dangerous amounts of hydrogen sulfide gas that is present in the wells until they are fully plugged and abandoned.

Public Meetings & Town Halls

Previous Staff Reports

  • 07/11/1997 (76) – Consider Approval of the Assignment of Undivided Interests in Oil and Gas Lease Nos. PRC 421.1, PRC 3120.1 and PRC 3242.1, and industrial leases PRC 3904.1 and PRC 5515.1, Santa Barbara County.
  • 02/27/2018 (92) – Consider delegating authority to the Executive Officer to enter into Agreements necessary for access and operations on former State Oil and Gas Lease Nos. PRC 1466.1, PRC 145.1, and PRC 410.1 related to Rincon Island; and provide an update on the status of Oil and Gas Decommissioning Projects undertaken by the Commission, including the Becker Well Abandonment and Remediation Project and the decommissioning of facilities on former leases encompassing Platform Holly and Rincon Island, off Santa Barbara and Ventura Counties.
  • 10/19/2023 (63) – Consider authorization to execute the proposed Phase 2 Agreement by and between the California State Lands Commission and ExxonMobil Corporation in settlement of the responsibilities to undertake work on Platform Holly, offshore Goleta, Santa Barbara County, including platform hardening, caretaker inspections, and future decommissioning of Platform Holly.