OG SoCalGas 112022-001
Summary
SCH Number
2023070508
Public Agency
California Department of Conservation
(DOC)
Document Title
OG SoCalGas 112022-001
Document Type
NOE - Notice of Exemption
Received
Posted
7/25/2023
Document Description
Southern California Gas Company (SoCalGas) proposed to drill two new replacement underground storage (UGS) wells in the existing Honor Rancho Natural Gas Storage Facility (Honor Rancho Facility) in Los Angeles County (Project). The two new replacement UGS wells will be installed in the Honor Rancho Facility, an existing facility of an investor-owned utility that is used to provide natural gas services. The Honor Rancho Facility is located in Los Angeles County, 30 miles north of the city of Los Angeles, within the Honor Rancho Gas Field. The Honor Rancho Gas Field is approximately 2,300 acres. The Honor Rancho Facility occupies approximately 600 acres of the entire gas field. Approximately 50% of the Honor Rancho Facility is located in the City of Santa Clarita, with the remainder located in unincorporated Los Angeles County. The Honor Rancho Facility is currently comprised of 56 wells: 22 active gas storage wells, 1 idle gas storage well, 1 idle water disposal well, 19 abandoned gas storage well, 3 active water disposal wells, 1 abandoned oil and gas well, 1 active oil and gas well, and 8 out of service gas storage wells.
The purpose of the proposed Project is to replace 30-50 million cubic feet per day (MMCFD) of gas deliverability of an estimated 450 MMCFD that has been lost over the past years from the plugging and abandonments of 16 gas storage wells in compliance with CalGEM’s 2018 regulations that establish standards for the design, construction and maintenance of all gas storage wells. Gas stored in the Honor Rancho Facility provides reliability to both gas and electrical systems. In the winter, the gas is used to heat buildings, produce hot water, and cook, and is used in summer to meet peak summer demand for electricity through providing gas supplies to gas-fired power plants in the Los Angeles Basin.
In 2018, CalGEM promulgated regulations that establish standards for the design, construction, and maintenance of all gas storage wells. The regulations included stringent well construction standards that are required to ensure that gas storage wells are safe and will maintain their integrity over time. The well construction standards promote environmental safety by focusing on leak prevention.
Meeting the new well construction standards require operators to upgrade and rework all existing gas storage wells or plug and abandon any nonconforming wells. The required well construction upgrades diminish the throughput capacity of each new or reworked gas storage well. Once the new well construction standards are complied with, the only way to maintain the overall throughput capacity of a UGS facility is to add additional gas storage wells. The new replacement gas storage wells must comply with the regulatory standard and are necessary to make up for lost deliverability that has been incurred due to wells that have been permanently removed from service. If approved, the proposed Project will meet CalGEM’s UGS construction standards set forth in CalGEM’s regulations. The proposed wells replace nonconforming gas storage wells that were plugged and abandoned in compliance with the regulations.
The proposed project consists of CalGEM approving two permits for SoCalGas to install the two new replacement gas storage wells, listed below, in the Honor Rancho Gas Field.
API # Well Name
0403730594 Wezu 24H
0403730595 Wezu 25D
Contact Information
Name
Jan Perez
Agency Name
Department of Conservation, CA Geological Energy Management Division
Job Title
Senior Environmental Scientist
Contact Types
Lead/Public Agency
Phone
Location
Notice of Exemption
Exempt Status
Categorical Exemption
Type, Section or Code
14 CCR § 15301
Reasons for Exemption
Class 1 – Existing Facility: The project is categorically exempt from CEQA under the “Class 1” (14 CCR § 15301) exemption per the CEQA Guidelines because the proposed Project involves the operation, repair, maintenance, or minor alteration of an investor-owned utility and the new replacement gas storage wells will result in no expansion of the facility’s existing or former use. The Honor Rancho Natural Gas Storage Facility is an investor-owned utility that provides natural gas services to California’s consumers. (Cal. Code Regs. Tit. 14, § 15301(b).) The project’s purpose is to make up for estimated 450 million cubic feet per day (MMCFD) of the facility’s deliverability that has been lost due to gas storage wells being taken out of service. A decrease in deliverability dramatically impacts the effective capacity of an underground gas storage reservoir. The project and resulting two replacement gas storage wells are necessary to operate and maintain the facility and continue to reliably deliver natural gas to consumers. And because the replacement gas storage wells make up for lost deliverability, the project involves negligible or no expansion of the facility’s deliverability or former use.
Exempt Status
Categorical Exemption
Type, Section or Code
14 CCR § 15302
Reasons for Exemption
Class 2 – Replacement or Reconstruction. The project is categorically exempt from CEQA under the “Class 2” (14 CCR § 15302) because the project involves the replacement existing facilities involving negligible or no expansion of capacity. To come into compliance with CalGEM’s updated regulations, Southern California Gas plugged and abandoned 16 gas storage wells in the Honor Rancho Natural Gas Storage Facility. As gas storage wells are taken out of service, the capacity of a gas storage reservoir is impacted unless new or replacement gas storage wells are drilled to retain gas storage capacity and deliverability. The project involves two replacement gas storage wells that replace 30-50 MMCFD of gas deliverability of an estimated 450 MMCFD that has been lost due to the wells being taken out of service. The project will take place within an existing underground gas storage facility, utilize existing infrastructure, and will be drilled from existing well pads. The project is also consistent with the surrounding land use, an underground gas storage facility. There will be no expansion in reservoir capacity, nor will there be an increase in the facility’s deliverability.
Exempt Status
Categorical Exemption
Type, Section or Code
14 CCR § 15303
Reasons for Exemption
Class 3 – New Construction/Conversion of Small Structures. The project is categorically exempt from CEQA under the “Class 3” (14 CCR § 15303) exemption per the CEQA Guidelines because the project involves the installation of a limited number of small structures on a natural gas facility and the structures are an extension of the natural gas transmission process.
Exempt Status
Categorical Exemption
Type, Section or Code
14 CCR § 15307
Reasons for Exemption
Class 7 – Actions by Regulatory Agencies for Protection of Natural Resources: The project is categorically exempt from CEQA under the “Class 7” (14 CCR § 15307) exemption per the CEQA Guidelines because the project is attendant to compliance with the heightened well construction standards under California Code of Regulations, title 14, section 1726.5.
Exempt Status
Categorical Exemption
Type, Section or Code
14 CCR § 15308
Reasons for Exemption
Class 8 - Actions by Regulatory Agencies for Protection of the Environment: The project is categorically exempt from CEQA under the “Class 8” (14 CCR § 15308) exemption because the project is attendant to compliance with the heightened well construction standards under California Code of Regulations, title 14, section 1726.5.
Exempt Status
Statutory Exemption
Type, Section or Code
PRC § 21080(b)(4); 14 CCR § 15269(c)
Reasons for Exemption
Statutory Exemption – Emergency Projects: As the California Environmental Quality Act (CEQA) lead agency for the project, CalGEM has determined that the proposed project is exempt from further environmental review requirements of CEQA, pursuant to the statutory exemption: Emergency Project (PRC § 21080(b)(4); 14 CCR § 15269(c).) because gas storage is essential to the State’s energy infrastructure and electricity reliability.
Attachments
Notice of Exemption
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