Commission Approves Wetlands Land Swap

Wetlands restoration and new oil drilling operations in southeast Long Beach may be allowed to co-occur in a controversial new project approved by the California Coastal Commission this month.

Despite objections from some environmentalists and Native American tribal representatives, the state regulatory agency, in a 6 to 3 vote at its meeting on Dec. 13, granted a coastal development permit for the project, approved by the Long Beach City Council in January, to move forward.

In a “land swap” deal, the project, proposed by oil operator Beach Oil Minerals (BOM) or Synergy Gas & Oil, seeks to consolidate oil drilling operations of the Los Cerritos Wetlands to two small nearby sites, expand oil production and restore about 30 acres of the degraded marsh back to its natural habitat.

Although wetlands restoration is expected to begin in 2020, according to Long Beach city staff, decommissioning of outdated oil-well infrastructure within the wetlands is expected to be completed over a 20-year period, half the time originally proposed.

Synergy, which took over oil operations at the wetlands from the Bixby Ranch Company, has agreed to transfer ownership and phase out oil operations on about 150 acres of property to enable new wetlands restoration, including introducing tidal flow to the natural wildlife habitat.

In exchange, the operator will use a 5-acre parcel owned by the Los Cerritos Wetlands Authority (LCWA) at Studebaker Road and Westminster Avenue and a 7-acre parcel known as the “Pumpkin Patch” site at the city’s border on Pacific Coast Highway (PCH) for drilling new oil wells and developing a two-story office building and warehouse.

While the project has been lauded by most Long Beach elected city officials, including Mayor Robert Garcia, some residents and environmentalists expressed opposition to the proposal that involves overriding considerations to requirements of the California Coastal Act.

Opponents brought forward concerns about potential oil spills in the event of an earthquake, as the operator will be allowed to drill 120 new oil wells, more than doubling production capacity from 10,000 to 24,000 barrels per day, with new pipelines built over the Newport Inglewood Fault near the San Gabriel River flood channel to the ocean.

Currently the field produces an average of about 300 barrels per day, according to Coastal Commission staff.

However, staff said the proposal meets the Coastal Act’s overriding policy, since not allowing the project to move forward would result in more of a “detriment to public welfare.”

The existing aging oil production infrastructure, staff said, already poses oil spill risks and would be allowed to remain indefinitely, canceling plans for any new wetlands restoration.

Other opponents and some commissioners expressed concerns about the project increasing greenhouse gas emissions in a time when the state is focusing on transitioning to renewable sources of energy.

While some commissioners motioned to postpone the item for further consideration, the commission ultimately voted in favor of granting final approval for the project to move forward.

“I think everybody hopes that someday we never have to trade wildlife for oil,” said California Coastal Commission Chair Dayna Bochco.  

In a presentation, Kate Huckelbridge, senior environmental scientist, said losing an opportunity for wetlands restoration would have a worse impact on the environment and the public’s welfare than allowing the project.

“This loss of an opportunity to restore an area rich in biological, cultural and scenic resources would be a detriment to the public welfare,” she said. “Staff has made every effort to include stringent conditions to ensure that the intended benefits of the project are realized and that the adverse impacts are minimized.”

While new oil infrastructure could cause a larger oil spill in an earthquake due to more oil production than currently exists, the project will include state-of-the-art equipment with shut-off valves and other features to address concerns related to potential seismic activity, Huckelbridge said.

In addition, the project will result in adverse visual impacts as the operator plans to build 160-foot tall drill rigs on each site that will remain standing for the next eight to 12 years, she said, adding that a 120-foot over-rig structure would remain standing for the 20-year life of the project.

As a mitigation, the operator is required to develop a “visual compensation plan,” Huckelbridge said.

Over the next year, the operator is expected to prepare final plans and show compliance with city and state conditions, including further tribal and archeological study and mitigation measures, according to Long Beach Development Services Department planning staff.

Wetlands restoration as well as new visual enhancements, sidewalks and landscaping along 2nd Street and PCH could begin in 2020, city staff said, adding that wetlands restoration will occur immediately upon the beginning of new construction.

During public comment, Mayor Garcia expressed the city’s support for wetlands restoration, which will include a new visitor center and a 10-foot wide pedestrian trail, opening up the wetlands for public access after decades of being degraded and fenced off due to oil infrastructure.

City staff and the mayor, however, acknowledged the complexity of the project, assuring that it would become the “safest, cleanest oil operation” in California.

“We really believe that for us to restore these wetlands we have a unique, once-in-a-lifetime opportunity, but we are also aware that this is a complex project,” Garcia said.

Commission staff said the project creates the potential for establishing a “mitigation bank” that would allow the operator to receive credits for restoring 76 acres of wetlands. Such credits could be sold to other entities with development and wetlands restoration interests.

Staff said the commission is expected to vote on the mitigation bank proposal sometime next year.

sean@beachcomber.news