Paula Dittrick
Senior Staff Writer
HOUSTON, Apr. 15 -- Plains Exploration & Production Co. reached an agreement with environmental groups in which Plains will phase out oil and gas production off Santa Barbara County, Calif., and in Lompoc Valley.
The Houston independent producer agreed to stop offshore production by 2022 and to shut down its Lompoc oil and gas plant in exchange for development of Tranquillon Ridge field off Lompoc.
The Environmental Defense Center (EDC), Get Oil Out, and Citizens Planning Association of Santa Barbara negotiated the agreement.
The agreement remains subject to approval from regulators. The Santa Barbara County Planning Commission will consider the agreement at an Apr. 21 meeting in Santa Maria.
If county officials approve the agreement, then it will go before the California Lands Commission, the California Coastal Commission, and the US Minerals Management Service.
Assuming all approvals are granted, Plains believes it could drill a well in the fourth quarter, a company spokesman told OGJ.
Terms call for curtailing production of existing oil and gas operations off Lompoc and Gaviota coast. Plains also agreed to donate land for parks.
EDC secured what it calls "an unprecedented agreement" from an oil company for zero net greenhouse gas emissions from the project. Plains agreed to contribute $1.5 million to a local fund for the purchase of hybrid buses.
Linda Krop, EDC spokeswoman, said the agreement stipulates oil and gas development in both Tranquillon Ridge and Point Pedernales fields end Dec. 31, 2022.
The agreement followed Plains's proposal to expand its existing production from Platform Irene in federal waters (see Fig. 2, OGJ, Aug. 7, 2006, p. 20).
The proposed expansion would involve directional drilling from Irene into Tranquillon Ridge field in state tidelands between Plains's existing federal lease and the shore. Irene is in 242 ft of water 4.7 miles from land.
Santa Barbara County officials rejected a similar proposal in 2002 from Nuevo Energy Co. to develop Tranquillon Ridge field. Environmental groups opposed Nuevo's proposal.
To win the support of environmental groups, Plains offered to shut existing and new development operations in phases, all to be ended by or in 2022.
This applies to the existing Point Pedernales project, Lompoc onshore oil fields, and the Point Arguello project, including platforms Hidalgo, Harvest, and Hermosa, and the Gaviota processing site.
Contact Paula Dittrick at [email protected].