Hearing Board Orders

 

Effective:
November 16, 2009 to
March 15, 2010

 

Petition No. 824, Regular Variance
Petitioner: Vintage Production California LLC
270 Quail Court
Santa Paula, California 93060

Federal Operating Permit No. 00004
Ojai Oil Field Leases/Ojai
(Includes Ojai Fee, Silverthread, and Hamp Leases)
Rule 29.C Conditions on Permits –
Violation of Attachment 71.1N1, Condition 1
Rule 71.1.B.1, Crude Oil Production and Separation,
Requirements – Storage Tanks
Rule 71.1.C.1, Crude Oil Production and Separation,
Requirements – Produced Gas

 

On November 16, 2009, the Hearing Board granted Regular Variance #824 that allowed Vintage Production California LLC, (“Vintage”) to continue operating unpermitted flares on the Ojai Oil Field Leases while they complete repairs on a previously abandoned pipeline that runs from the South Mountain Field to the Santa Clara Valley Gas Plant. The variance allows Vintage to continue producing oil and gas while the pipeline is repaired.

The regular variance was preceded by emergency and interim variances.

On July 21, 2009, the Hearing Board Chair granted an emergency variance to Vintage to operate unpermitted flares until the main 8 inch gas line near South Mountain could be repaired or replaced. The variance allowed Vintage to continue producing oil and gas at the, Ojai Oil Field Leases, Timber Canyon Leases, South Mountain Field, and Bardsdale Field.

On September 28, 2009, the Hearing Board granted Interim Variance #823 that allowed Vintage to continue operating unpermitted flares on the Ojai Oil Field Leases while they developed a plan to repair an abandoned pipeline that runs from the South Mountain Field to the Santa Clara Valley Gas Plant. The variance allowed Vintage to continue producing oil and gas at the, Ojai Oil Field Leases. (The other leases had resumed shipping gas to the Santa Clara Valley Gas Plant thru the repaired gas line.)

Background:

On July 19, 2009, Vintage's main 8 inch gas line near the entrance to the South Mountain Field ruptured and started leaking. Rule 71.1 and Permit Conditions require Vintage's gas to be routed to a properly installed, maintained, and operated vapor recovery system. All vapors must be routed to a fuel gas system, a sales gas system, a permitted flare or a flare rated at less than 1.00 MMBTU (million BTU's) per hour.

After the leak was discovered Vintage shut in the damaged gas line, began curtailment at the subject leases, notified third party gas producers that they were unable to process their produced gas, and routed gas to unpermitted flares rated at more than 1.00 MMBTU per hour.

The District's policy on flares is that an unpermitted emergency flare of any size can be used for maintenance or emergency situations for up to 24 hours. If flaring is required for more than 24 hours, a company should apply for an emergency variance. Vintage contacted the District and submitted an emergency variance petition.

Emergency Variance #822 was granted on July 21, 2009. After the emergency variance was granted Vintage repaired the leaks in the gas line and reduced the pressure on the line. These actions reduced the volume of gas being sent to flares by allowing the gas from the South Mountain and Bardsdale Leases to be shipped to the Santa Clara Valley Gas Plant for sale.

Vintage estimates that the Ojai Field Leases produce approximately 2.0 MMCF (million cubic feet) of gas per day. In an effort to minimize excess emissions Vintage curtailed their gas production by approximately 0.2 to 0.3 MMCF/day.

Vintage's Permit No. 00004, the Ojai Oil Field Leases, is a major stationary source as defined by Environmental Protection Agency criteria.