City officials look to update Signal Hill's 'oil code'

CJ Dablo
Staff Writer
Signal Hill’s so-called “oil code” is one step closer to being changed. In a first-reading vote on May 19, the Signal Hill City Council unanimously passed an ordinance that establishes regulations that would allow development over abandoned oil wells.

The ordinance also calls for changes to the regulations for “methane assessment and mitigation procedures for all development,” according to the City’s agenda’s summary.
“It is important to recognize that it will have profound implications for future development,” Signal Hill Community Development Director Scott Charney said during a presentation Tuesday night.
He emphasized that the proposed changes would only focus on properties that have abandoned wells. Charney added that the changes don’t have anything to do with Signal Hill Petroleum’s conditional-use permits, which regulate drill sites or other oil operations, and they would not change any requirements surrounding active or idle wells.

Signal Hill’s long history with oil within its 2.2 square miles dates back to its discovery in 1921. A countless number of wells were built in the city’s heyday of an oil boom since that time, dotting much of the city’s landscape. The regulations concerning the numerous wells that were eventually abandoned affected the City’s development policy.

A statement from the Council agenda summed up the importance of the issue.
“Currently, the oil code does not allow development over abandoned wells or if wells are not reasonably accessible for a maintenance rig,” it stated. “Without the amendment, development on properties with abandoned wells is constrained, and some properties may be undevelopable.”
The “oil code” has not been changed since the 1990s, City Manager Ken Farfsing told the Council last Tuesday. Changes took a few years to be updated. Farfsing explained that the Division of Oil Gas and Geothermal Resources (DOGGR) revised their standards in 2010 to address well abandonment and certification. He noted that it has taken four years of studies in order for the staff to create these new changes.

Charney emphasized that the amendment will not “change DOGGR’s authority over well abandonments or sub-surface activity,” but the amendment will be “used by the City when making land-use decisions.”
He added that the new standard establishes criteria to document abandonment work in the future.
A few technical consultants also made presentations. Susan Paulsen of Exponent, an engineering consulting firm, cited the Regional Water Quality Control Board’s assessment on nine oil-well sites that were closed in Signal Hill between 1993 and 2003. The Board determined those sites “posed no threat to groundwater.”
She also summed up her assessment of the safety of the City’s resources for drinking water.
“We conclude that the below-surface oil-field operations have not had a widespread significant impact on water quality on the overlying drinking-water aquifers,” Paulsen said.
The presentation and efforts to create the ordinance and its regulations were praised by a few people during the public-comment period.

Signal Hill resident and Planning Commissioner Tom Benson praised the staff and technical consultants who made an effort to present the information in an understandable format.
“The incredible amount of teamwork that went on between staff, the consultants and Signal Hill Petroleum to bring this all together is probably unmatched in anything we’ve done,” Benson said.
Councilmember Michael Noll also complimented that team.
“I think we’re going to be the leaders in the field,” Noll said, adding that other cities will look at Signal Hill’s new regulations and will likely want to copy it.
The City Council also unanimously approved a negative declaration, stating that the amendment has no significant impacts to the environment and is “consistent with the City’s general plan and zoning ordinance.” Associate Planner Colleen Doan confirmed Thursday that if the ordinance is passed by the Council in a second reading scheduled for June 2, the ordinance will take effect 30 days thereafter.
Other highlights
Women of Distinction Terry Rogers was honored as Assemblymember Patrick O’Donnell’s 2015 Woman of Distinction Award recipient for the City of Signal Hill in the business category. Rose Richard was honored as O’Donnell’s 2015 Woman of Distinction Award recipient for the City of Signal Hill in the community category. Debra Russell was honored as Sen. Ricardo Lara’s 2015 Woman of Distinction Award recipient for the City of Signal Hill.
Public Works Week Signal Hill Mayor Larry Forester issued a proclamation in recognition of Public Works Week from May 17-May 23.
CalFresh Awareness Signal Hill Mayor Larry Forester issued a proclamation in recognition of CalFresh Awareness Month.
Water shortage The City Council passed a resolution declaring a Level-2 water supply shortage condition. Included in the new rules is a requirement for residents to water plants only twice a week and to repair leaks within 48 hours of notice by the City. The Council action also authorized staff to apply for the turf-replacement rebate for the demonstration landscaping project.
Civil Service Commission Interviews for the open commission appointment will be scheduled on Tuesday, June 2 at 6pm.
Buildings and construction In a second-reading vote, the Council unanimously approved a new ordinance surrounding buildings and construction.