PREPERMIT WORK STARTS ON CALIFORNIA CRUDE LINE

Pacific Pipeline Co. (PPC) has begun preliminary work leading to permitting efforts for a 171 mile pipeline to move low gravity crude from giant fields off California to the Los Angeles area.

The 20 in., unheated pipeline would cost $180-190 million and could go on stream in 3-3 1/2 years.

The project has the backing of partners in development of giant Point Arguello field in the Santa Maria basin off Santa Barbara County, a project blocked from start-up for more than 3 years by permitting wrangles. Pipeline sponsors also have proposed moving oil production from Exxon Corp.'s expanded development of Santa Ynez Unit in the Santa Barbara Channel.

Point Arguello production is expected to start this year with flow limited to 20,000 b/d, moving moved by pipeline to refineries outside Los Angeles.

Point Arguello partners want to ship full Arguello production of 80,000-100,000 b/d by tanker until the PPC project is complete, which the county opposes. The group has appealed the county's denial of an interim tankering permit to the California Coastal Commission, which is expected to hold a hearing on the matter this month.

The controversy has been further complicated by other, competing projects designed to move Point Arguello crude to market (OGJ, Mar. 4, p. 9).

BACKED BY ARGUELLO GROUP

All 18 Point Arguello partners, led by Chevron Corp., late last month agreed to fund the second phase of PPC project efforts.

That entails environmental field work to expedite permitting efforts, negotiating with state agencies to determine the lead agency for an environmental impact report, performing hazards engineering, and developing a format for throughput agreements.

In addition, PPC is negotiating possible participation by Exxon in the project. PPC is a subsidiary of Southern Pacific Transportation Co., Denver.

First phase of the project was financed equally by Chevron, Southern Pacific, Oryx Energy Co., Phillips Petroleum Co., and Texaco Inc. It involved a preliminary environmental analysis of the project.

The second phase of work on the project is expected to take about 4 months, said PPC Pres. Norman Rooney. Then, PPC is to apply for a development permit with the lead state agency and proceed with permitting efforts expected to take about 18 months.

Rooney is optimistic about permitting prospects because of the project's expected minimal effects on the environment. Because 94% of the pipeline route follows the Southern Pacific railroad or other existing railroad or pipeline right-of-way, there will be little disturbance outside an already affected corridor.

In addition, Rooney said, the project is expected to gain approval from the tough minded South Coast Air Quality Management District because it is expected to diminish air pollution in the Los Angeles basin.

There won't be added air emissions from line heaters because crude will be fed preheated at 160 F. into the line, which eliminates the need for further heating or diluent. Pump station pumps will be driven by electric motors. There would be a net reduction in air emissions because the pipeline would back out tankerborne imports, thus eliminating tanker and offloading emissions.

Financing will hinge on securing all necessary throughput commitments. Construction is expected to begin in second quarter 1993 and take about 18 months.

PROJECT DETAILS

PPC plans to move Point Arguello crude from the Gaviota onshore oil and gas processing complex and Santa Ynez crude from the Las Flores onshore oil and gas processing complex to refineries at El Segundo and Wilmington in the Los Angeles area.

The system would have a design capacity of 80,000-130,000 b/d. It would begin at the Gaviota marine terminal operated by Texaco and parallel the Southern Pacific Railroad along the coast to the Ventura area, where it would use an existing 22 in. line for about 11 1/2 miles. It then would join the Southern Pacific right-of-way to Piru, which roughly parallels California State Highway 126 and the Santa Clara River.

From Piru, it would follow existing pipeline and former railway right-of-way to Saugus, then along the operating Southern Pacific Railroad to Watts. From Watts, it would parallel the Southern Pacific Railroad to Texaco's refinery at Wilmington. This part of the route also parallels the Los Angeles light rail system.

Another 10.4 mile spur would extend from Watts along a secondary Southern Pacific right-of-way to Chevron's El Segundo refinery. Other refineries in the Los Angeles area could be served as markets dictate.

The pipeline's operating life is projected at 20 years. It would entail 159 1/2 miles of new 20 in. line with cathodic protection, 11 1/2 miles of existing 22 in. line, 95 block valves, one origination pump station each at Gaviota and Las Flores, and one midpoint booster pump station. The booster station would be located about 80 miles east of Gaviota, near Fillmore. Each station would require two 1,500 hp pumps and possibly a third, backup unit.

The line, consisting of API 5LX-52 steel pipe with 0.312 in. W.T., would have a maximum operating pressure of 973 psi.

No insulation is expected for the line, but that might be an option for certain portions if cost effective.

It would include a supervisory control and data acquisition system, with communications provided by a fiber optic cable buried alongside the pipe or microwave system, depending on final design.

In addition, an oil spill contingency plan and a complete program of restoration and revegetation will be developed for the project.

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