Resolution No. 12,686

Resolution of the Oxnard City Council Opposing Two Liquefied Natural Gas Deepwater Ports Proposed off the Coast of Oxnard, California

WHEREAS, two companies, BHP Billiton and Crystal Energy, have proposed offshore liquefied natural gas (LNG) terminals close to the coast of the City of Oxnard; and

WHEREAS, these proposals envision offshore facilities that would include underwater pipelines that would come ashore underground in the City of Oxnard; and

WHEREAS, BHP Billiton proposes to establish a floating terminal 14 miles off Oxnard's southern coast and Crystal Energy seeks to convert Platform Grace, an existing offshore oil platform 12.6 miles due west of Oxnard, to an LNG terminal; and

WHEREAS, in each case, the liquid would be converted back to gas at the facility, then shipped through pipelines to a Southern California Gas Company facility near Camarillo; and

WHEREAS, as a governmental agency with permitting authority over the pipeline associated with the proposed LNG projects, the City Council of the City of Oxnard is deeply concerned with the potential impacts on the Oxnard community from the operation of the proposed offshore facilities and the associated subsea and terrestrial pipelines; and

WHEREAS, portions of the terrestrial pipeline owned by Southern California Gas Company are subject to franchise regulations and encroachment permits for use of the public rights of way; and

WHEREAS, the construction of the LNG deepwater ports and the associated high-pressure terrestrial pipeline running through sensitive habitat, residential and business areas, adjacent to schools and hospitals, and along miles of City streets has the potential for severe negative environmental consequences, significant risks to the safety of residents and businesses within the City of Oxnard, and significant economic impacts to the City of Oxnard and its residents; and

WHEREAS, the residents of the City of Oxnard and City Council are committed to protecting the environment and preserving the City of Oxnard's natural resources; and

WHEREAS, the City of Council of the City of Oxnard is a responsible custodian of the area's natural resources for present and future generations; and

WHEREAS, the City Council has determined that the public welfare of the City will now be served and advanced by opposing the two proposed LNG Deepwater Ports proposed by BHP Billiton and Crystal Energy off the coast of Oxnard, California; and

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

1. The City Council of the City of Oxnard opposes both the BHP Billiton and Crystal Energy projects, unless and until the proponents can demonstrate to the satisfaction of the City Council that the adverse effects upon the environment, safety and health, and economy of the City of Oxnard have been mitigated.

2. The City Council of the City of Oxnard hereby directs staff to prepare a letter stating such opposition to the United States Coast Guard, the California State Lands Commission, and the Maritime Administration, including as an attachment a copy of the March 29, 2004, letter executed by City Council and previously forwarded to such agencies.

PASSED AND ADOPTED this 13th day of July, 2004, by the following vote:

AYES: Councilmembers Zaragoza, Herrera, Lopez, Maulhardt, and Pinkard

NOES: None.

ABSENT: None.