The Arroyo Grande City Council believes the county should require a full environmental review for the proposed development of an oil field in the heart of Huasna Valley.

And to that end, the council voted 5-0 during a special three-hour council meeting Monday to once again ask the county to require an environmental impact report (EIR) for the proposed project.

“I can't fathom relying on an EIR that's 20 years old for a new oil field,” Councilman Ed Arnold said. “To me, it's ridiculous to say they're not going to do an EIR.”

Excelaron LLC, a subsidiary of Australian Oil Co., is requesting a conditional-use permit from the county to allow for oil exploration and production on the 5,000-acre Mankins Ranch in Huasna.

The company wants to drill up to three new wells on the property, along with a steam injection well, and if oil is found, commence production immediately.

An EIR that was developed for a proposed exploration and production project on the Mankins property in the late 1980s is being used for Excelaron's proposal, along with a “mitigated negative declaration,” which isn't sitting well with Huasna residents or the council.

“There have been many, many reasons to bring this EIR up to date,” Councilman Chuck Fellows said, adding the proposed project only benefits Excelaron, while everyone else loses.

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A mitigated negative declaration is used when a proposed project's environmental impacts are found to be significant but can be mitigated to less than significant through conditions placed on the permit, according to county planning staff.

“This project is tantamount to having Wal-Mart build next to Talley Farms,” Fellows added. It's such a wrong-headed (project), it's almost a shame that everyone has to come in and fight it.”

The council also expressed concern about potential fire safety issues at the proposed project site - Excelaron plans to store propane there - and wants the county to provide clarification on fire response times to the ranch.

The county claims that Cal Fire can make it from its Nipomo Mesa fire station to the Excelaron site in 29 minutes, but the city doesn't believe the assertion.

Arroyo Grande Community Development Director Rob Strong and Fire Chief Mike Hubert drove to the site, which took 30 minutes from the Village, Strong said.

“If he (Capt. Rick Swan) can make it in 29 minutes, I would like to see how he did it,” Strong said to a round of applause from the about 60 people in the audience, mostly Huasna Valley residents.

The county is requiring that Excelaron have a 20,000-gallon water storage tank on site for fire suppression.

Excelaron previously proposed hauling oil from the site via Huasna Townsite Road to Huasna Road and then through the city of Arroyo Grande.

However, after much outcry from Huasna residents and city officials, the company has revised the haul route to take trucks from the oil field east on Huasna Townsite Road and then through private property - the Porter Ranch - to Highway 166. The trucks would then head south on Highway 101 to a facility in Oxnard.

Despite the new proposed truck route, the council is still concerned that when there's bad weather, making Porter Ranch impassable, the trucks' drivers will opt to come through the city.

The council wants the county to allow the city to prohibit the trucks on its streets if the project is approved.

“I don't want to have to worry about another agency enforcing it,” Arnold said.

The council plans to send a letter to the Board of Supervisors outlining the city's concerns and requesting a full environmental review of the proposal.

The proposal is tentatively scheduled to be heard by the County Planning Commission at its Nov. 13 or Dec. 11 meeting, according to planning staff.

September 17, 2008