Platform Holly/Piers 421/Venoco Bankruptcy
Current Status
Since March, the Platform Holly team has permanently plugged and abandoned 20 of 30 platform wells. Work is ongoing to remediate the shallow portions of nine remaining wells. That will be followed by removing the remaining conductors, the last step in the well plug and abandonment work. Staff anticipates that plug and abandonment of all wells will be completed by midAugust. Technical studies supporting the coming Environmental Impact Report are underway. Staff anticipates releasing a Notice of preparation this Fall. That will be followed by the development of a draft Environmental Impact Report for public review and comment, which is expected in 2025. ExxonMobil will decommission Platform Holly, at its expense, after the Commission certifies the Environmental Impact Report. More information is available in the Phase 2 agreement executed last October.
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
- Goleta Town Hall Meeting 06/07/2023
Presentation | Video of the meeting - Public Hearings 02/10/2022
2 p.m. meeting | 6 p.m. meeting - Goleta Town Hall Meeting 12/08/2021
Presentation | Video of the meeting - Public Scoping Meetings 06/24/2021
2 p.m. meeting | 6 p.m. meeting - Goleta Town Hall Meeting 03/10/2021
Presentation | Video of the meeting - Goleta Town Hall Meeting 08/27/2020
Presentation | Video of the meeting - Goleta Town Hall Meeting 11/07/2019
Presentation | Webcast - Goleta Town Hall Meeting 06/27/2019
Presentation | Webcast - Goleta Town Hall Meeting 11/15/2018
Presentation | Video of the meeting - Goleta Town Hall Meeting 05/14/2018
Presentation - Goleta Town Hall Meeting 06/15/2017
Presentation | Photo Gallery
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.
Additional Information
- Phase 2 Agreement – CSLC / Exxon
- Final Abandonment of PRC 421-2 Well
- Update on Abandoned Offshore Oil & Gas Wells
- Memorandum of Understanding – CSLC / City of Goleta
- 421 Decommissioning Agreement – CSLC / Exxon
- Phase 1 Agreement – CSLC / Exxon
- Beacon West Energy Group, LLC contract
- ExxonMobil letter of intent
- Reimbursement Agreement extension request
- Request for payment to Aspen Insurance
- Default letter to Venoco
- Reimbursement Agreement
- Resolution
- Assignment Agreement – Mobil Oil Corp. agrees to retain responsibility for the Leases
- Geologic Energy Management Division Orders
- Goleta Oil Release
- Davis v. State of California
Leases, Amendments & Quitclaims
Lease PRC 421 – 10/22/1949
PRC 421 Amendment – 10/22/1959
PRC 421 Amendment – 04/01/1993
PRC 421 Amendment – 08/01/1997
PRC 421 Amendment – 08/26/2013
PRC 421 Quitclaim – 04/13/2017
Latest News
- The Commission wins another legal victory against the Venoco Trustee
December 12, 2023 - Phase 2 Agreement
- End of the Police Powers Emergency at the Ellwood Onshore Facility
June 9, 2023 - Watch the June 7th Town Hall
- Town Hall to Update the Community about the Platform Holly Decommissioning Process
June 7, 2023 - California State Lands Commission, Tribal, State, and Local Partners Celebrate Successful Removal of the Last Remaining Oil Production Shorezone Piers in California
June 5, 2023 - Commission to Celebrate Successful Removal of the Last Oil Production Shorezone Piers in California
May 31, 2023 - Last Two Shorezone Oil Piers in the State are Removed
February 16, 2023 - Commission wins a significant legal victory for protecting public health and safety against a former oil operator
August 2022
Maps
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