Firm Digs In On Gas Wells

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Defiant oil and gas production firm Termo Co. is refusing to scrap expansion plans near Porter Ranch.

That’s despite calls from residents for the project to be withdrawn amid fears that new oil wells in their backyard could put the community at risk after a massive gas leak there.

“We’re not withdrawing the project,” said Ralph Combs, manager of corporate development at Termo, a Long Beach company that already operates oil and gas wells in Aliso Canyon. “We’re just postponing the environmental impact report until a future date.”

But a delay in the expansion plan rather than a dismissal of it is not good enough for many residents who say lawsuits are possible and a fight is guaranteed.

“I think the community will be more united than ever to stop this project,” said Alex Nagy, a Southern California organizer of activist group Food and Water Watch. “Especially now that people understand there is no such thing as a safe oil or gas well.”

Residents’ concerns stem from the giant natural gas leak near Porter Ranch that started in October at Southern California Gas Co.’s facility in Aliso Canyon, where Termo has its wells.

State of emergency

The leak forced thousands of residents to leave their homes and spurred Gov. Jerry Brown to declare a state of emergency.

It happened while Termo was preparing an environmental impact report on its expansion project, approval of which would allow it to move forward with a plan to add 12 oil and gas wells to its existing facility.

Los Angeles City Councilman Mitchell Englander, who represents Porter Ranch, has called on Termo to end its expansion project.

“While I’m delighted that the Termo company has postponed the environmental review and thus the project, this falls short of a withdrawal of their expansion application,” he said in a statement.

Since October, more than 4,600 residents have relocated from the area.

Earlier this month, Los Angeles City Attorney Mike Feuer filed a lawsuit against SoCal Gas due to the gas leak. Los Angeles County Supervisor Michael Antonovich has requested that the county join the city attorney’s lawsuit, which was approved by the Board of Supervisors.

Termo’s expansion plan is facing a whole new level of opposition in the wake of the gas leak.

“I think the Termo project was controversial before the gas leak occurred,” said Mitch Glaser, an assistant administrator at the county Regional Planning Department. “When you’re dealing with any development projects, there are going to be concerns. But when there is an oil and gas involved, it heightens the level of scrutiny.”

“It will get so much flak, it won’t be funny. It’s not going to happen without the biggest fight they have ever seen,” said Matt Pakucko, a member of activist group Save Porter Ranch. He relocated from his house with his girlfriend and three cats after the giant gas leak.

In the meantime, Kathryn Barger, chief deputy for Antonovich, called an expansion of any activity in Porter Ranch inappropriate.

“It would be reckless to go forward with anything, especially drilling,” she said. “Termo is right about putting their application on hold. There are a lot of wells to fix, so our position is nothing should move forward.”

Termo has been operating near Porter Ranch since 1989 after it bought 3,200 acres in Aliso Canyon. The company already has 18 wells and produces 500 barrels of oil a day. In addition to Aliso Canyon, the company operates wells in Long Beach, Ventura and Kern County.

The new project is seeking to install three more well pads on 5.3 acres and drill two vertical wells a year, for a total of 12 wells, which will tap down 7,000 to 9,900 feet.

For the expansion plan, the company expects to spend $3 million to drill each well, which are projected to produce between 150,000 and 200,000 barrels of oil a year.

Some argue that low oil prices, which have dropped below $30 a barrel, are forcing companies across the country, including Termo, to cap wells and halt operations. But residents are concerned that as soon as prices go up, the company will reactivate its plan to drill wells.

Proceeding with the original expansion plan is not going to be easy for Termo, according to the Regional Planning Department’s Glaser.

When Termo releases the environmental impact report, the county will hold a hearing and take testimony from residents. Then the Planning Commission will review the report and decide whether to approve the project.

Still, the company will face some challenges before it can move forward.

“Neighbors have a lot of concerns about potential impacts to the air quality, traffic and noise in the area,” Glaser said. “And, of course, the additional issues that come with the drilling of oil.”

Activists such as Pakucko hope, no matter what happens, that the regulations will be tighter.

“Hopefully, there will be some new regulations in place about those facilities and how close they can be to residences,” he said. “The whole game might change.”

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