How did we get Here????? Oil Drilling in the Whittier Hills Again!!

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1 How did we get Here????? Oil Drilling in the Whittier Hills Again!! The land in question was purchased through Prop "A" funds. We, the tax payers back on November 3, 1992 voted for this proposition to purchase open space land from Chevron Oil Company. The land was sold to the City of Whittier to include the mineral rights. By selling the land at a loss to include the mineral rights Chevron received environmental credits. The City of Whittier wanted to purchase the land so they could preserve the Whittier Hills. Bob Henderson who was championing this effort even signed the Grant (on last page) that was issued from the County of Los Angles for the Prop "A" funds. In 2006 according to Matrix Oil (a very small oil company who was and is doing business in the City of Whittier) approached the City about drilling for oil in what was at that time and still is an "Open Space" preserve which were purchased through Prop "A" funds. In October of 2008 the City of Whittier sign a lease agreement with Matrix oil to resume drilling for oil in the abandon oil fields that were once owned by Chevron Oil. Even though the City was not permitted to drill on the land as per Prop "A" Chevron ceased production due to the small amounts of oil they were pumping out of the hills. When the City of Whittier went out to bid to fmd an oil company to do business with they used the Whittier Daily News. A local paper with a circulation of around 13,000. By the way, Matrix Oil Company is located in Santa Barbra, Ca. When I checked the circulation of the L.A. Times is over 657,000. That's 50 X's larger then the Whittier Daily News. The City was legal in what they did. They just chose to use a smaller circulation. Regarding the lease agreement. Somehow the City leased the entire 1,290 acres to Matrix Oil. The highlighted section below is from the lease agreement. It shows that Matrix Oil can ask for additional drill sites. There is no cap on the amount of drill sites. LEASE AGREEMENT: In the event that Lessee has drilled six wells on the Leased Lands, then Lessee shall have the right to request from Lessor one or more additional drillsites, subject to Lessee applying for and obtaining a Conditional Use Permit therefor and obtaining a release of any such additional sites from protected area status from the Los Angeles County Proposition A District. Lessor may in its sole discretion and for any reason deny or grant Lessee the right to construct any such

2 Here is what the City did not mention about the drilling. The City has been misleading everyone. They will be destroying a minimum of 17.2 acres or the equalvilant to 17.2 football fields (look below at "Site Size"). The main drill site and the gas and oil processing facility will be within 400 ft. of the fence line of an elementary school for children of special needs and within 1,000ft of residences. Yet, the City's own question and answer document says there will be no drilling near schools and homes. I guess the City needs to define "NEAR". See the City's FAQ document below. Project oil and gas production and processing operations are expected to be physically located at three different locations, referred to as "sites". These sites are the West Site. approximately 1.1 acres; the Central Site approximately 3.8 acres; and the East Site approximately 1.1 acres. In addition, a crude oil truck loading facility will be located directly east of the Central Site and accessed through a new road connecting to Colima Road. Roads, pipelines and electrical conduit corridors, called the "backbone", will be constructed to connect the production sites, the processing facility and the oil truck loading facility. Electrical and pipeline interconnections will be made to the Southern California Edison grid, the Southern California Gas Company pipeline and the Suburban Water District system. Oil and gas pipeline connections of approximately 2.8 miles will be constructed to connect the oil field to the existing Crimson Pipeline System at La Mirada Boulevard and Leffmgwell Road and the Project to the Gas Company pipeline tie-in located at the intersection of Colima Road and Lambert Road. OUhe 1,290 acres owned by the City of Whittier within the Preserve. the Whittier Main Oil Field Project will need a total of approximately 6.4 acres for pads to support the proposed oil and gas production and processing facilities and an additional 4.8 acres may have to be temporarily disturbed to construct the pads and pipelines. No. the sites would not be near any homes or schools. If I live near the oil field will I get royalties at my home? No. sorry. the Oil Field is a defined area under State law and adjoining properties are not part of the field.

3 According to the City's FAQ, no drilling can go off the property of the 1290 acres and go under any neighbors' property. With the lease signed which most of us were not aware of. The City is still pushing ahead with its plans for trying to get the land removed from the County of Los Angles as ((ProtectedArea Status". It tells you the reason the City wanted the land originally. Below is the first page ofthe Prop "A" Grant. Los Angeles County Regional Park and Open Space District Grant Specified Project Grant Program (From Los Angel County Proposition A, Safe Neighborhood Parks, Gang Prevention, Tree-Planting, Senior and Youth Recreation, Beaches and Wildlife Protection COtheProposition"), which voters approved on November 3, 1992) The Applicant listed below ("Applicant") and the Los Angeles County Regional Park and Open Space District ("the District") do hereby enter into this Project Agreement ("this Agreement"), and under the terms and conditions of this Agreement, Applicant agrees to complete the project as described in the Description of Pr~iect and the District, acting through the Director of the County of Los Angeles Department of Parks and Recreation and pursuant to the Proposition, agrees to fund the project up to the total grant amount indicated. Description of Project Acquisition of approximately 4,000 acres contiguous to the Hellman Park and Murphy Ranch Park. Acreage includes land designated Significant Ecological Areas by Los Angeles County and will preserve portions of the last remaining chaparral, native oak woodlands and coastal sage scrub ecosystems within eastern Los Angeles County.

4 PROP "A" Section 8. The following funds shall be awarded for the purposes set forth below, in amounts not to exceed the following: (a) Two hundred three million one hundred fiftv thousand dollars ($203,150,000) to the County for the acquisition, development, improvement, restoration or rehabilitation of real property for regional beaches, recreational facilities, parks and park safety, gang prevention, senior citizen recreation facilities, wildlife habitat. natural lands or improvement accordance with the following schedule: of Santa Monica Bay, in QQ. Nine million three hundred thousand dollars ($ ) to the Citv of Whittier (or acquisition of natural lands and development of related facilities in the Whittier Hills. Insurance the City is requiring. Below is taken directly from the lease agreement between Matrix Oil and the City of Whittier. Look what the minimum liability insurance the City is requiring. LEASE AGREEMENT: 10. Insurance. Lessee shall maintain in full force and effect, at its own expense, a policy or policies of worker's compensation insurance as required by the State of California, a policy or policy of Employer's Liability with limits of at least $1,000, per occurrence, a policy or policies of Automobile Liability covering all owned, non-owned and hired vehicles, with limits of at least $5,000, per occurrence, and a policy or policies of commercial general liability insurance insuring Lessee and Lessor as an additional insured (and such other persons, firms or corporations as are designated by Lessor as having an interest in the Leased Land) against any liability for death, personal injury or property damage arising out of or resulting from Lessee's operations hereunder. Such general liability insurance shall have an initial combined single event coverage of not less than Five Million Dollars ($5,000,000.00). This project puts its own local residences and special needs school children at risk from the pollution and hazardous toxins that can be released from the drilling process. Oil companies are exempt from some Federal Laws and regulations (Clean Air Act, Clean Water Act, Clean Drinking Water Act to name a few). That has been demonstrated with the on-going BP Gulf spill. The Federal Government has admitted that the Federal Laws have been too lax on oil companies and vows to do something about it. Recently the City has hired Ester Feldman and Associates to include the environmental group Community Conservancy International which she is also the president of. The City Council has authorized to pay both groups a combined total of $195, to figure out how to beat Prop "A" to of which she was one of the authors of. Why would the author of a proposition like that now want to work against it by allowing oil drilling back and destroying the very same land she was trying to protect? Better yet, why would the City hire her and at the same time hire the environmental group she is president over and spend $195, of taxpayer money to do that? The City is hoping she will be able to persuade the County of Los Angeles to give more of the royalties from the drilling back to the City. I have read Prop "A" many times and still have not seen where the words "oil drilling" is mentioned the Prop. There is another bad guy here... that is the County of Los Angeles who has allow this to go too far. They, like everyone else have their hand out looking for a piece of the pie if not the whole pie.

5 Right now there is a lot at stake for Matrix Oil a small oil company that has invested $400, for the EIR report. Do you think they would have made that investment if they thought they would loose. Now you have the City of Whittier that so far is into this for $195, You have two City Council members who have stuck their necks out. Bob Henderson for being pro-environmental and now is pro-oil. That is a 180 degree turn around. You also have Greg Nordbak that made a soft commitment to our schools about getting money for them. That will never happen. That's because Prop "A" does not allow any of the money to be spent on anything but Rec & Park projects. Last you have the guesstimaters that have been throwing numbers out there about how much money the City will make but cannot support any of those numbers until drilling starts. You also have the buss words to entice the public into thinking they will get a lot from all of this. Let us not forget the Gulf and BP with a State-of-the-Art oil platform that is now sitting on the oceans floor about 5,000 feet from where it started. It's always important to remember that the politicians don't have our best interests at heart. This is a good example of that. The County of Los Angeles Prop "A" Grant Mayor November 5, Signed by Bob Henderson, Los Angeles COUD y" Regional Park. & Open Space Dis.rict Project: AgreeIDent: representa.tives as ofth.e latter day" mont:.h and year vvritten bclovv. By: t2~ ~ ~~ Director, P ks and Recreation Date: I/I~ /~:3 Approved as t.o Form: DE"Wrrr"W. CL1NTON County Counsel By: ell])004ij~. t1~t4/ Prirlcipal De uty