Posted by Eric Frasco on May 18, 2001 at 14:30:36:
In Reply to: rigs to reefs question posted by Gelpi on May 18, 2001 at 09:24:29:
Taken directly from the California Senate Web Page - (http://info.sen.ca.gov/cgi-bin/postquery?bill_number=sb_1&sess=CUR&house=B&site=sen). Note the the list of supporters and opposers at the end:
ARGUMENTS IN SUPPORT: According to background material provided by the author's office, requiring the oil companies to indemnify the state is one of the key features separates this artificial reef program with those in the Gulf of Mexico where the states assume all liability. Despite this assumption of liability by the Gulf states, there have no successful claims despite hundreds of decommissioning projects in relatively shallow water. Under this bill, the state is also indemnified for its own activities associated with managing the reef. The oil company remains completely liable for any damage associated with oil seepage or leaking from the site.
According to the author's office, leaving oil platform jackets in place will leave underwater flora and fauna undisturbed. When four oil platforms owned by Chevron were removed, approximately five million pounds of reef animals were destroyed. This bill does not require any oil platform to be "reefed" but rather establishes a mechanism do so if a net benefit can be ascertained.
According to the author's office, the purpose of this plan is to avoid the experience in the Gulf of Mexico where many "reefable" platforms were removed because there was not a sufficient incentive to the company to work through the process. While a million dollars is a lot of money to almost anyone, to a multi-billion dollar company it may not be enough of a savings to undertake the cost and time required to obtain approval for partial decommissioning.
ARGUMENTS IN OPPOSITION : Opponents state that federal regulations and the program proposed in this bill require the state to take title to the sites and assume liability. Opponents argue that any indemnity agreement will be decided at the time of decommissioning and is, therefore, completely speculative. If the indemnifying mechanism crafted by DFG is ineffective, or the liability underestimated, the state is liable for damages, and has no immunity against tort claims.
The Center for Marine Conservation states that there is no scientific evidence that oil platforms will enhance the marine environment, and there are potential dangers. Depending on the depth at which the jackets are cut, it could pose a threat to navigation and/or be very costly to maintain navigational aids.
According to the County of Santa Barbara, the public "should receive at least 50 percent of the savings to emulate the minimum required in the Gulf of Mexico." The Barbara County letter calls for the same three tiers based on depth, but would establish a scheme of 50%, 65%, and 75%. Other opponents, such as the Center for Marine Conservation, argue that the revenue stream is entirely uncertain and, therefore, it cannot be determined if there will be a net benefit to the state after the costs of management, enforcement, and liability are figured in.
SUPPORT : (Verified 5/16/01)
City of Dana Point
Coalition For Enhanced Marine Resources
Department of the Navy
Long Beach Aquarium of the Pacific
Maritime Museum of San Diego
Project AWARE Foundation
United Anglers of Southern California
OPPOSITION : (Verified 5/16/01)
California League of Conservation Voters
CALPRIG
Center for Marine Conservation
Citizen Planning Association of Santa Barbara, Inc.
City of Santa Barbara
County of Santa Barbara
Natural Resources Defense Counsel
Pacific Coast Federation of Fishermen's Associations
Sierra Club California
Individuals
The following groups appeared [as oppossed to the bill] on the Senate Natural Resources and Wildlife Committee analysis:
American Oceans Campaign
California Coastal Protection Network
California Coastkeeper
Center for Environmental Citizenship
Citizens for Goleta Valley
Commercial Fishermen of Santa Barbara, Inc.
Community Environmental Council
Conception Coast Project
Defenders of Wildlife
Environmental Center of San Luis Obispo
Environmental Defense Center
Get Oil Out
Isla Vista Surfrider Foundation
League for Coastal Protection
Local Ocean Network
Santa Barbara Channelkeeper
Surfrider Foundation
The Otter Project
UCSB Associated Students Environmental Affairs Board
Vote the Coast