June 14, 2021 Breaking News, Latest News, and Videos

Pipeline To Continue Carrying Crude Oil Underneath Santa Monica Through 2024:

About four miles of pipeline that runs underneath Santa Monica and carries crude oil will continue to operate through at least 2024, thanks to a franchise agreement the City Council unanimously approved July 8.

The renewed franchise agreement authorizes Crimson California Pipeline to continue using the underground tube, which is 10 inches in diameter, to transport oil north and south through Santa Monica, between Ventura County and the Wilmington neighborhood of Los Angeles.

In all, the pipeline covers 89 miles. Only about 3.9 miles of the pipelines passes under Santa Monica.

According to City staff, the pipeline has been in operation since 1941 and is heavily regulated by the State.

The pipeline essentially runs close to the City’s eastern border, traveling underneath 26th Street until Colorado, where it turns west until Cloverfield Boulevard and heads south again. At Ocean Park Boulevard, the pipeline again meanders west to 23rd Street, where it turns south toward the western edge of Santa Monica Airport. The pipeline then turns east along Dewey Street as it exits Santa Monica and into Los Angeles.

Council member Kevin McKeown, the only person to speak on this item during the public hearing, said had him and his colleagues been voting on whether a pipeline should be built, the conversation might be different. Alas, the vote was simply whether to renew a franchise agreement, an act the council really had very little choice.

According to City staff, had the council voted against the franchise agreement, Crimson, in its capacity as a State-regulated common carrier pipeline utility, would be able to exercise eminent domain and other granted rights to ensure the pipeline could continue to operate through Santa Monica.

In exchange for granting the franchise agreement, Santa Monica would receive $103,085 per year for the duration of the agreement, including $83,085 annually as a franchise fee and $20,000 annually for administrative costs.

When the pipeline initially began operating in 1941, it was operated by Shell. Both Shell and Santa Monica entered into a 40-year franchise agreement allowing the pipeline to operate through the City. In 1989, a second franchise agreement was entered into for 20 years. This 10-year franchise agreement is the third contract governing the pipeline’s operation underground through Santa Monica.

Crimson took over ownership of the pipeline in 2005. Earlier this year, Crimson had sought to enter into a 20-year franchise agreement with Santa Monica. However, the council in March voted to renegotiate terms with Crimson, hoping to reduce the length of the commitment to 10 years.

Had the 20-year term been approved, the franchise agreement would have expired a few years shy of the pipeline’s 100-year anniversary. A 10-year term would conceivably give the City some flexibility to look at the state of the pipeline then and determine whether or not it is safe to continue allowing it to operate underneath Santa Monica.

The tradeoff to agreeing to a shorter term: Santa Monica receives a lesser franchise fee. The 20-year franchise agreement would have yielded City Hall an annual franchise fee of $148,705.

Crimson maintains a $45 million aggregate insurance policy on the pipeline. According to City staff, the firm would be financially responsible for any spills or releases from the pipeline.

in News
Related Posts

Martin Cadillac Redevelopment Takes Shape on Olympic Near Bundy

June 11, 2021

June 11, 2021

West Edge development underway near Expo/Bundy station By Sam Catanzaro Wood and concrete framing is now visible at the Martin...

Sheriff Villanueva Announces Plan to Clear Encampments by July 4th

June 10, 2021

June 10, 2021

LASD Homeless Outreach Services Team visits Venice Boardwalk Tuesday By Sam Catanzaro Deputies were on the Venice Beach Boardwalk Tuesday...

In-Person Events Are Back with Summer Swing Nights: Jazzy Vocals plus Live Big Band – Now with Tap Dance, Swing Lessons, Vendors to Benefit Museum

June 10, 2021

June 10, 2021

Live, in-person entertainment is bringing out happy fans of all ages for Summer Swing Nights: Drive-In Edition. The concert fundraiser features the...

Annenberg Beach House Set for Reopening

June 8, 2021

June 8, 2021

Community beach house begins reopening June 15 for splash pad, stand up paddle and courtyard The Annenberg Community Beach House...

Letters to Editor: Main Street Closures

June 7, 2021

June 7, 2021

The following are two letters sent to the Santa Monica Mirror, one in support and one in opposition, regarding a...

Man Attempts to Cut Throat at St. Monica’s Coffee Shop

June 7, 2021

June 7, 2021

Victim in stable condition following Monday morning incident By Sam Catanzaro A man is in stable condition after cutting himself...

Will Parking Structure #3 Be Demolished? Santa Monica Beat – June 7, 2021

June 7, 2021

June 7, 2021

Local news and culture in under 5 minutes. * Will Parking Structure #3 Be Demolished? * Police Make Two Arrests...

Santa Monica City Council to Consider Main Street Traffic Closure

June 7, 2021

June 7, 2021

City staff recommending closure of the roughly 1,000 feet between Hill Street and Kinney Avenue  By Sam Catanzaro Santa Monica...

Artists Featured For SaMo Pride Rainbow Road Art Walk

June 4, 2021

June 4, 2021

In honor of Pride month Santa Monica Pride (SaMo Pride) is featuring a Rainbow Road Art Walk from June 4th-...

Santa Monica Affordable Housing Development Takes Shape

June 4, 2021

June 4, 2021

Pacific Landing apartments underway at Lincoln and Pacific  By Sam Catanzaro A $28 million affordable housing development is taking shape...