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Mineral Resources Management Division - Rigs to Reefs Workshop
George Steinbach |
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Mr. Steinbach is the Decommissioning Project Manager for |
| ~From Transcript ~ |
My name is George Steinbach. I represent Chevron, and I'm very pleased to be invited to speak today. First of all, I'd like to give you some background on Chevron for Chevron's comments.
As you may know, we've recently sold all of our interests in off-shore California and currently hold no leases for development in either state or federal waters.
However, as a part of the sales, Chevron retained certain abandonment responsibilities such as at the end of the economic life of these off-shore structures, we would be responsible for decommissioning.
In fulfilling this obligation we are of course going to fully abide by the lease conditions and all other applicable state and federal laws which to the current date have called for the full removal of these structures.
In fact during 1996, I believe we decommissioned four off-shore structures by removing them from the Carpinteria- Summerland area under the terms of our lease.
From our experience in other parts of the country, we do know there are realistic alternatives to the full removal of these structures, specifically we've heard a lot about the programs today in the Gulf states, Louisiana, Texas and Florida that allow for their conversation to artificial reefs. And with the second life as reefs, these structures provide habitat for fish, recreational, commercial opportunities, and they generate economic benefits to the states. And we've heard a lot of the details of those programs today.
Chevron has been very active in the Gulf in these programs having placed approximately 30 platforms, 30 structures as reefs, while donating approximately $2 million from the savings to the sponsoring states.
Our experience is that these programs have been strongly supported by state agencies, by the commercial and sports fishing communities, by environmental groups and by the general public.
Considering the benefits that the Gulf states have seen from their rigs to reefs programs, it makes good sense for California to considerer such a program as well.
We can take advantage of the experience and knowledge from those who have working programs. But even with this, it is normal for people to have many questions about how and why rigs to reefs can or should be done. And we hear several of these questions often.
One of these is rigs to reefs allowed by the oil and gas leases that the oil industry has been issued? And the answer I think we've heard explained by John is yes.
The general rule that, when the operations have ceased, the structures removed. However, the agencies have the authority to waive these provisions with certain conditions being met.
Presumably then, if a better alternative to full removal were found, then the oil and gas lease would allow for this better alternative to happen.
Another question that we hear is isn't this just a way for the oil industry to get out of their abandonment obligations? No. As I've already said, we are fully prepared to fulfill our obligations including full removal. And we're not trying to win and have everyone else lose. If we do have a rigs to reefs program in California, we would seek one that is a win win.
The Gulf states have shown us a good example of how to do this in their program. Industry benefits from the saving that donates a significant 50 percent share to the state. In addition everyone benefits from the increase in fish habitat.
In California we have heard a little bit about Senate Bill 241 being sponsored by Dede Alpert using the Gulf of Mexico model of donated savings to create a permanent endowment.
We support this approach as a way to preserve the existing habitat, provide savings to the industry and create a big win for the people of California.
Other questions we hear are do the structures offshore California act as either beneficial or essential fish habitat, and do the platforms attract fish from other locations or actually add to the overall population?
We had Milton touch on this subject. But scientific questions. These are very difficult ones to answer. But what we do know clearly is that there is significant marine life in and around many of these structures.
In fact, I would submit that the rigs to reefs name that we're using is really a misnomer because these structures are already artificial reefs. I'd like to show you a short video clip made by the Marine Scientist Institute at UCSB during their recent guides in the fall of this year.