Settlement, Mutual Release, and Lease Termination Agreement in the matter of DCOR, LLC v. California State Lands Commission, et al.
Summary
SCH Number
2025011051
Public Agency
California State Lands Commission
(SLC)
Document Title
Settlement, Mutual Release, and Lease Termination Agreement in the matter of DCOR, LLC v. California State Lands Commission, et al.
Document Type
NOE - Notice of Exemption
Received
Posted
1/31/2025
Document Description
On January 28, 2025, the California State Lands Commission and DCOR LLC, entered into an agreement titled, “Settlement, Mutual Release and Lease Termination Agreement for State Oil and Gas Lease PRC 3095 and State Right-of-Way Lease PRC 3394,” intended to resolve disputes in the matter of DCOR, LLC v. California State Lands Commission, et al., Sacramento County Superior Court, case no. 24WM000055 (the “Settlement”). The Settlement acknowledges DCOR’s right to repurpose an existing 6-inch submerged gas pipeline between Platforms Eva and Edith for purposes of transporting oil emulsion, pursuant to California Code of Regulations section 2102. The Settlement also requires DCOR, at a future, conditional date, to quitclaim its leases underlying Platform Esther (3095 and 3394), cease oil and gas production from Platform Esther and apply to the Commission to plug its wells and decommissioning the platform.
Contact Information
Name
Joseph Fabel
Agency Name
CA State Lands Commission
Job Title
Attorney IV
Contact Types
Lead/Public Agency / Parties Undertaking Project
Phone
Email
Location
Counties
Orange
Regions
Southern California
Other Location Info
Platform Eva, located on Tide and Submerged Lands Offshore Hunting Beach (33°39'42.4"N, 118°03'42.8"W); Platform Esther, located on Tide and Submerged Lands off Seal Beach (33°43'6.41"N, 118° 6'48.13"W)
Notice of Exemption
Exempt Status
Categorical Exemption
Type, Section or Code
CLASS 1, EXISTING FACILITIES (Cal. Code Regs., tit. 14, § 15301)
Reasons for Exemption
The Settlement is not a Project because it is an administrative action that will have no effect on the environment and/or determinations made under the Settlement are ministerial made pursuant to the Commission’s regulations. DCOR LLC’s existing entitlements under State Mineral Lease 3033 and Lease 6417 allow use of the existing 6-inch pipeline between Platforms Eva and Edith for hydrocarbon transport. The determination approving the facilities modification is governed by Title 2, Cal. Code of Regs. Sec. 2102, which requires only notification and submission of materials prior to undertaking the proposed work. In addition, future work related to ceasing production on Platform Esther is conditional and too speculative at this time for the Commission to assess and approve. Future well plugging work and decommissioning will require future submission of applications and detailed engineering plans sufficient for the Commission and other agencies to assess under CEQA.
Alternatively, DCOR’s proposal to repurpose the existing 6-inch gas line between Platforms Eva and Edith will only cause a minor physical change in the environment and will not change existing activities in the area. There are no new foreseeable direct or indirect environmental impacts that the facilities modification present or any other unusual circumstances. Therefore, the project will not have a significant effect on the environment and the above categorical exemptions apply.
Exempt Status
Categorical Exemption
Type, Section or Code
CLASS 2, REPLACEMENT OR RECONSTRUCTION (Cal. Code Regs., tit. 14, § 15302)
Reasons for Exemption
The Settlement is not a Project because it is an administrative action that will have no effect on the environment and/or determinations made under the Settlement are ministerial made pursuant to the Commission’s regulations. DCOR LLC’s existing entitlements under State Mineral Lease 3033 and Lease 6417 allow use of the existing 6-inch pipeline between Platforms Eva and Edith for hydrocarbon transport. The determination approving the facilities modification is governed by Title 2, Cal. Code of Regs. Sec. 2102, which requires only notification and submission of materials prior to undertaking the proposed work. In addition, future work related to ceasing production on Platform Esther is conditional and too speculative at this time for the Commission to assess and approve. Future well plugging work and decommissioning will require future submission of applications and detailed engineering plans sufficient for the Commission and other agencies to assess under CEQA.
Alternatively, DCOR’s proposal to repurpose the existing 6-inch gas line between Platforms Eva and Edith will only cause a minor physical change in the environment and will not change existing activities in the area. There are no new foreseeable direct or indirect environmental impacts that the facilities modification present or any other unusual circumstances. Therefore, the project will not have a significant effect on the environment and the above categorical exemptions apply.
Exempt Status
Categorical Exemption
Type, Section or Code
CLASS 4, MINOR ALTERATIONS TO LAND (Cal. Code Regs., tit. 14, § 15304)
Reasons for Exemption
The Settlement is not a Project because it is an administrative action that will have no effect on the environment and/or determinations made under the Settlement are ministerial made pursuant to the Commission’s regulations. DCOR LLC’s existing entitlements under State Mineral Lease 3033 and Lease 6417 allow use of the existing 6-inch pipeline between Platforms Eva and Edith for hydrocarbon transport. The determination approving the facilities modification is governed by Title 2, Cal. Code of Regs. Sec. 2102, which requires only notification and submission of materials prior to undertaking the proposed work. In addition, future work related to ceasing production on Platform Esther is conditional and too speculative at this time for the Commission to assess and approve. Future well plugging work and decommissioning will require future submission of applications and detailed engineering plans sufficient for the Commission and other agencies to assess under CEQA.
Alternatively, DCOR’s proposal to repurpose the existing 6-inch gas line between Platforms Eva and Edith will only cause a minor physical change in the environment and will not change existing activities in the area. There are no new foreseeable direct or indirect environmental impacts that the facilities modification present or any other unusual circumstances. Therefore, the project will not have a significant effect on the environment and the above categorical exemptions apply.
Attachments
Notice of Exemption
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