18 SIGNAL TRIBUNE
Council
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added. Since that time, the permit has undergone significant changes. One of the major changes involved the term of the permit itself. Doan explained that in 2002, the approval term of the permit had been extended to 10 years. That permit was set to expire this October. The private oil and gas company has told City officials that it eventually wants another 10-year permit, but before it gets approved, City officials acknowledge that there are some issues that they want addressed. According to a staff report from the community development director, Signal Hill Petroleum needed a one-year extension of the permit “in order to allow sufficient time to complete updated environmental studies.” The City’s associate planner also explained that the one-year extension would allow enough time to
complete the studies and technical reports so that the City could examine operational and environmental issues. “And we think some of the areas of focus would be on water quality [and] on technical reports on oil operations,” Doan told the Council, adding that they would also get input from “unbiased, qualified consultants.” Doan said that Signal Hill Petroleum is not proposing new construction or any changes to the ongoing operations that have been in place during the last 10 years. A spokesman for Signal Hill Petroleum acknowledged that, primarily, administrative concerns were behind his company’s request to eventually obtain another 10-year conditional-use permit. Exploration manager Brady Barto said in an interview Tuesday night that an approval for a 10-year permit would reduce City staff time and would allow his company to focus on its mission of obtaining oil.
NEWS
“It’s extremely important to operations,” Barto said. “We’re committed to American energy, and the key to that is getting wells in the ground and getting oil out of it. So having the ability to use these drill sites to drill for oil is fundamental.” There was one issue, however, that Signal Hill Petroleum representatives have already addressed after a few residents from the community in July questioned the company’s methods of oil recovery. The City and Signal Hill Petroleum have collaborated on recent public workshops and facility tours to talk about the oil company’s operations and specifically explain the company’s current oil-recovery methods. The report from the community development director described one public workshop during a Planning Commission meeting two months ago where several members of the community expressed concerns Signal Hill Petroleum may be practicing a controversial oil-recovery method known as “fracking.” Signal Hill
Petroleum representatives addressed these concerns during the July workshop, explaining that the company has never practiced fracking and instead uses another oil recovery method that is called “water injection.”
“We’re committed to American energy, and the key to that is getting wells in the ground and getting oil out of it. So having the ability to use these drill sites to drill for oil is fundamental.” –Brady Barto, Signal Hill Petroleum exploration manager
In an emailed statement Thursday, Barto summarized the difference between the water-injection and fracking methods for oil recovery. Fracking is also known as hydraulic fracturing. “Water injection is a technique used in depleted sand reservoirs to move oil from one well to another,” Barto wrote. “In the Long BeachSignal Hill oil field, water injection is done at lower pressures, under 1,800 psi (pounds per square inch). Hydraulic fracturing is a technique generally used in hard shale rock, done in one well, and uses pressures from 3,000 to 15,000 psi.” After the Council voted to approve the one-year extension, Councilmember Larry Forester expressed his support of Signal Hill Petroleum. “We look forward to many more years of working with them on the conditional-use permit as we approve it over the next year to get them the 10-year status,” he said.
SEPTEMBER 7, 2012
Forester’s appreciation of Signal Hill Petroleum was echoed by the others on the Council, including fellow Councilmember Ellen Ward. Ward and other members of the Council thanked the private, California-based oil company that has enjoyed close ties to the community. “I also want to express my appreciation because Signal Hill Petroleum is a wonderful partner not only to the City, but to every nonprofit we have in the community,” Ward said. “We really appreciate your support.” Signal Hill Petroleum’s business represents a significant revenue stream to the City’s general fund. According to the report from the community development director, the City collects from the local oil and gas company about $619,000 every year in the form of business franchise taxes, oil well permits and oil-barrel taxes. Signal Hill’s ties to the oil and gas industry go back decades since a 1921 discovery of the oil fields of Long Beach, according to a staff report from Doan. Other City Council highlights Water impact fees In a secondreading vote, the Council voted 4-0 to pass an ordinance that would change City codes. The change adds an exemption for installing submeters and fire sprinklers for residential developments when determining water service connection charges and monthly water service charges.
Cherry Avenue traffic signals The Council voted 4-0 to authorize the city manager to award a contract worth more than $222,000 to California Professional Engineering for proposed traffic-signal improvements for the 20th Street and Cherry Avenue project.
The next Signal Hill Council meeting will take place on Tuesday, Sept. 18 in the City’s Council Chamber.
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