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8/7/2019 Whittier Main Field Oil Project
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The Whittier Main Field Oil ProjectBalancing our Environmental and Economic Future
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Introduction
1
Table of Contents
Introduction.........................................1
History ................................................2What the EIR Recommends .................3
Environmental Stewardship.................6
Benets................................................7
Conclusion ........................................13
WhittierMainFieldOilProjectBenefts: Minimumof$7.5millioninnewrevenuesayear
forWhittierat1000barrelsofoilperday[BOPD]
Projectdesignedformaximumrateof10,000
barrelsoiladay[BOPD] Eachadditional1000BOPDbroughtinbyMatrix
wouldgenerateaminimum$7.5millionayear
Itisanticipatedthattheprojectwouldcreatea
signicantnumberofjobsandcontractsin
Whittier Independentanalysisconcludedthatproperty
valueswouldremainstableandsecure.
EIR recommendedConsolidated Central Site
In 2008, Matrix Oil and its partner Clayton Williams Energy, Inc. won the right to explorethe possibility of reopening the abandoned Chevron Main Field.Independent experts have now comprehensively studied the Whittier Main Field Oil P roject.
They have made their recommendations and provided their conclusions in an 800 pageEnvironmental Impact Report [EIR].
We take this process and their advice seriously.
We have listened to the experts and are working with the City to incorporate their
recommendations into the project now before the City.
The Whittier Main Field Oil Project is about nding the balance between available resources,
community needs, public benet and quality of life.
As a community and company, we share mutual goals:
To work safely and quietly in the best interest of all stakeholders To maximize the potential of the oil reserves to support Whittier city services and to
minimize any effects on the small, 0.5% of the Preserve that we work in
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The EIR studied the originally submitted project and ve alternatives. Based on safety andthe ability to eliminate environmental impacts with strict mitigation measures, the reportrecommended the best version of the project: the Preferred Alternative.
The Preferred Alternative referred to in the report, which includes the Consolidated Central
Site, keeps the footprint of the project at a minimal 0.5% of the 1290-acre Preserve and
successfully minimizes impacts.
The project would be consolidated on one site in Canada Canyon, an area already closed to
the public. The total pad area required for the oil and gas production and processing at the
site is approximately 7.0 acres, 0.5% of the total land area of the Preserve. There will be no oil
rening. The entire project will:
Be four football elds from the nearest residence and behind a hill
Be secured within concrete walls
Be insulated for sound control
Be screened from view by native plants, trees and natural hills
Be shielded to minimize light impact on the surrounding areas
Have all wellheads secured in underground, soundproof concrete cellars
Have well shafts in steel casings all the way to total depth of wells Have impermeable [waterproof] lining to prevent seepage into groundwater
The Consolidated Central Site will:
. . . reduce several of these impacts
primarily due to the location of facilities
farther from sensitive receptors (e.g.,
residences, schools, and public areas).1
What the Environmental Impact Report Recommends
The Consolidated Central Site was found tobe the environmentally superior alternative.
1 Whittier Project EIR ES-19 October 2010
Oil has played a signicant part in thehistory and economy of Whittier.There have been active wells here for
over 100 years. Chevron abandonedhundreds of operating wells in the early
1990s because oil was only at about $17
a barrel and it was not cost-effective.
Today, oil trades at $80 dollars a barrel and higher. Estimates of oil remaining in the Puente
Hills Habitat Preserve alone are hundreds of millions of barrels.
MATRIXS CURRENT OPERATIONS IN WHITTIER
Matrix has been a successful Whittier business and community partner since 2001:
25 existing wells, producing annual revenue for 700 royalty owners, the City and
the County
$1.1 million paid annually in royalties, taxes and fees
Matrix specializes in working with small communities to maximize available resources.
We are proud to be in Whittier and look forward to aproductive and safe future.
Oil, the City of Whittier & Matrix
2
ConsolidatedCentral Site
Habitat PreserveBoundary
Landfll RoadAlternative
Consolidated Central Site in relationship to key locations
Central Rig
Colima RoadCentral
Processing
ResidentsView
City AccessRoad Option
Catali
na andMar Vista
IntersectionFriendly HillsCountry Club
WesternPreserveBoundary
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4
. . . utilizing the Landll Road Alternative, which moves vehicle trafc away fromrecreational areas and from residences. It also eliminates the trafc impacts on Mar VistaStreet, which currently operates at an unacceptable level of service.2
This alternative will also manage trafc on Hadley Street by limiting the work hours.3
This alternative reduces disruption and protects neighbors,
while maximizing the potential benets to the entire City.
We agree that the Consolidated Central Site is the best
choice for the City. We appreciate the benets it providesand the minimal effect it has on the environment. The
Consolidated Central Site maintains the build-out timeline
of ve years and keeps the project footprint at 0.5% of the
1290 acres, reducing signicant impacts.
LAMBERT RIGHT OF WAY ALIGNMENT
The EIR preferred the Lambert Railroad Right-of-
Way Alignment for the pipelines. However, the
Lambert Railroad right-of-way is owned by the
Union Pacic Railroad. Matrix will investigate
the possibility of obtaining an easement. We do
not know at this time whether the railroad will
grant an easement for such usage.
Landll Road Alternative Less than Signicant
Other Recommendations
The Consolidated Central Site was found to bethe environmentally superior alternative.
5
The Integrated Truck Loading Facility Alternative would incorporate a single
loading area within the processing area . . . would reduce visual and
recreational impacts as a result of a reduced footprint. There would also be
fewer construction impacts since less area would be constructed..4
We look forward to working with the City and community to continue to make the right
choices for the Whittier Main Field Oil Project. The EIR has made constructive
recommendations and drawn very important conclusions:
The Whittier Main Field Oil Project will generate signicant new revenue for the
City to use to protect and enhance vital City services.
Under the Consolidated Central Site Alternative, the project can be built and
operated safely, cleanly and quietly.
Integrated Truck Loading Facility Alternative Less than Signicant
COLIMA ROAD ALIGNMENT
The project would use underground pipelines (an 8-inch crude oil pipeline and a 6-inch natural gas
pipeline) installed from the site and secured beneath Colima Road (City and County land) to
transport crude oil and gas to markets. This enhances safety and signicantly minimizes truck trafc
to and from the site.
2 Whittier Project EIR ES-18 October 20103 Whittier Project EIR ES-19 October 20104 Whittier Project EIR ES-18 October 2010
Central Rig
ConsolidatedCentral Site
Habitat PreserveBoundary
Landfll RoadAlternative
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7
What is the Preferred Alternative?
An achievable goal ofthe project is therestoration of the
Preserve. New revenue
will allow the City to
begin a comprehensive
study and implement
a long-range plan to
return the Preserve
to its sustainable,
native state.
According to an analysis done by nationally recognized environmental experts, LSA Associates,
the Preserve is a degraded habitat dominated by non-native species. The Whittier Main Field
Oil Project can accelerate and enhance the process of returning this community resource to its
natural state.
Matrix will operate within the Preserve at the highest standard of safety. We are proud that our
record of working with local and State agencies has brought us recognition and positive
relationships.
In 2009, Matrix received the State of California Division of Oil, Gas and Geothermal Resources
Clean Lease Award for Excellence in Site Compliance and Improvement in Operations for its
facility in Bakerseld. We plan to win more awards for our work in the Preserve. To do that, we
will implement new, modern technologies to make sure our presence in the Preserve is
minimal, clean, quiet and safe.6
Whittier Main Field Oil Project Benets
With the loss of several major cardealerships, and the slow economy,Whittier faces challenging economic
decisions. The City now has the
opportunity to create new revenue from a
familiar and proven source.
The Environmental Impact Report [EIR]
concluded that, The recent decrease in sales
tax is potentially a signicant concern for
the City. The decline in sales tax between
2007 and 2008 came largely as a result of
the closure of ve of the Citys largest autodealers . . . The Project represents a
signicant revenue source that could
mitigate some of the long-term
uncertainty with relying on new retail
sales revenue.6
$10,000
$9,500
$9,000
$8,500
$8,000
$7,500
$7,000
2 00 0 2 00 1 2 00 2 2 00 3 2 00 4 2 00 5 2 00 6 2 00 7 2 00 8
W h it t ie r L os An ge le s C ou nt y
Source: State Board of Equalization andDepartment of Finance5
5 Whittier Project EIR H-54 October 20106 Whittier Project EIR H-9 October 2010
Historic Taxable Sales per Capita
Environmental Stewardship
Antique technology on old Signal Hill site
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Asignicantaspectof
theprojectwillbeourcommitmenttohelprestorethePreservetoitsnativestate.
The City of Whittier owns the mineral rights beneath the surface of the Preserve.Proposition A, a Los Angeles County ballot measure to increase open space, allowed theCity of Whittier to purchase the land for the Preserve. However, Proposition A only addresses
surface uses. Proposition A does not conict with California law, which allows a City to usethe subsurface of public property for other purposes, including revenue
generating uses.
As long as there is not a loss of public parkland, which is achieved by the equal replacement
of parkland elsewhere, the City can make use of its public parkland as it sees t. The City
owns the mineral rights for the Preserve. This new revenue will pay for all park-related
expenses in the City of Whittier, allowing the
current Parks budget to be used for other
City services, such as enhanced public safety
and economic development.
City of Whittier Mineral Rights andTheir Benets
Conservative estimates drawn by the independent EIR consultants, AECOM TechnicalServices, Inc, concluded that, a minimum of $7.5 million a year of new revenue at 1000barrels of oil per day [BOPD] could be generated for the City. 7 Over the life of the lease,
AECOM made further projections:Using the illustrative average royalties paid to the City until 2030, the new
revenue source in the high and low price scenarios [future price of oil]with
assumed high levels of production are estimated to average between
approximately $115.4 million and $7.5 million in new revenues per year.8
In addition:
The project is designed for a maximum rate of 10,000 barrels of oil a day [BOPD]
Each additional 1000 BOPD brought in by Matrix would generate a minimum of
$7.5 million a year
It is anticipated that the project would create a signicant number of jobs and
contracts in Whittier
Independent EIR Estimates of Financial Benetfor Whittier
9
7 Whittier Project EIR H-9 October 20108 Whittier Project EIR H9 October 2010 All assumptions regarding
future royalty payments made to the City are based on the executedOil, Gas and Mineral Lease between the City and Matrix Oil.AECOM did not project additional revenues provided based on,lease payments, Habitat Authority payments, business license tax,property taxes or any other benet directly attributable to theProject. As such, the actual scal impacts less any costs to the Citymay be greater.
All wells will be secured in cementunderground soundproof well cellars
8
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11
These project impacts are less than signicant with the EIR modications and with
anticipated future project modications.
TRAFFIC LESS THAN SIGNIFICANT
The EIR concluded that, There are no signicant and unavoidable impacts to
transportation and circulation.10
NOISE LESS THAN SIGNIFICANT
Impacts to noise and vibration that are less than signicant with mitigation . . .Mitigation
measures for these impacts include limiting construction hours. . . developing and
implementing a Noise Reduction Plan, instituting a quiet-mode for operations, and
providing a comprehensive noise abatement study.11
The noise reduction methods in the mitigation measures are established practices in the
drilling industry that reduce noise levels in urban drilling situations12
AIR QUALITY LESS THAN SIGNIFICANTImpacts to air quality that are less than signicant with mitigation would occur during
operational activities...13
HYDROLOGY AND WATER RESOURCES LESS THAN SIGNIFICANT
In general, with the implementation of mitigation measures WR-1 through WR-4, the
impacts due to the project can be mitigated to less than signicant levels. . .14
What the Environmental Impact Report Says Aboutthe Consolidated Central Site Alternative
10 Whittier Project EIR ES-10 October 201011 Whittier Project EIR ES-9 October 201012 Whittier Project EIR 4.5-29 October 2010
13 Whittier Project EIR ES-8 October 201014Whittier Project EIR 4.8-12 October 2010
Whittierisanoiltownandfranklythepropertyclosesttotheoileldshaveeitherkeptupwiththepaceofrisinghomevaluesoract
uallyexceededthem,saidRonRidout,Owner,RealtyExecutivesCornerstoneWhittierDailyNews,11/29/2010
Property Values
With respect to property values, the EIR studied Matrixs operations at Honolulu Terraceand Sycamore Canyon and concluded:. . . we found no adverse effect on home values within the determined
inuence areas and there does not appear to be any notable negative impact tohome values in comparison to the larger City and County trends.9
Matrix has reviewed the possibility of prospects for oil occurrence past the Preserve border, as
there are historic wells throughout the Whittier area. Our lease with the City allows for
drilling only inside the border of City-owned property.
The EIR performed by MRS Consulting could not study
the possible oil reserves outside of the project area
and determine their economic benets to adjacent
homeowners.
9 Whittier Project EIR H-7 October 2010
10
Aerial view of Consolidated Central Sitein Habitat Preserve
ConsolidatedCentral Site
Habitat PreserveBoundary
Landfll RoadAlternative
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Conclusion
The EIR has thoroughly studied the proposed Whittier Main Field Oil Project andrecommends a strong, safe and environmentally superior alternative, the mostsignicant element of which is the Consolidated Central Site.
We look forward to working with the community and City Council to continue to rene the
project so that Whittier can begin to receive the enormous nancial benets it will generate.
The Whittier Main Field Oil Project can become the foundation upon which Whittier further
restores the Preserve, enhances City services as well as creates opportunities to support other
vital programs.
The Whittier Main Field Oil Project successfully balances Whittiers environmental and
economic future.
Our goal is to create a clean and safe plan that will set the standard for small oil reclamation
projects with large conservation objectives. To achieve our shared goals, Matrix will restore a
sizable area around the site to its native state and will work with State and local authorities toachieve the maximum results. We have been a partner with the people of Whittier since 2001.
We will continue to use the newest and most advanced technologies and programs to meet
residents high expectations.
Thank you.
13
ODOR EMISSIONS LESS THAN SIGNIFICANT
Historically, the oil produced in Whittier is sweet crude, which does not contain noticeable
amounts of sulfur. Matrix will be required to use advanced, innovative technology that is
designed to suppress and eliminate any possible odor emissions.
Implementing these mitigation measures would eliminate odor events that have resulted in
odor complaints and NOVs at other oilelds in the past, as well as other suspected sources
of odors associated with the oil eld operations.15
RECREATION LESS THAN SIGNIFICANT
We are very happy the EIR found that the project would have a less than s ignicant impact on
the communitys use of the Preserve.
Mitigation measures for these impacts (to recreation that are less than signicant) include
constructing and maintaining a pedestrian trail along designated areas, developing an
alternative pedestrian trail, and implementing mitigation measures from other sections,
including noise and vibration and aesthetics and visual resources.16
The EIR is clear: by adhering to State mandated requirements and meeting the mitigation
demands of the EIR, the cumulative impacts of the project are less than signicant.
15 Whittier Project EIR 4.1-36 October 201016 Whittier Project EIR ES-11-12 October 201012
View down Catalina Street historic access road toformer Chevron Site and Current Ranger Station TruckAccess Gate after project is completed.
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We are committed to working quietly and safely to maximizeWhittiers natural resources for the benet of our entire community.
Whittier Main Field Oil Project6745 So. Washington Ave., #200
Whittier, CA 90601
www.whittieroil.com
Toll-Free: (877) 779-3847
Printed on recycled paper with soy based inks
Aerial View of Habitat Preserve with Consolidated Central Site
ConsolidatedCentral Site
Habitat PreserveBoundary
Landfll RoadAlternative