Community Update on the Inglewood Oil Field

1. Community Update on the Inglewood Oil Field Supervisor Mark Ridley-Thomas July 5, 2011

2. A COMPREHENSIVE SETTLEMENT HAS BEEN REACHED!

3. Overview… • 15 Significant Additional Mitigations • Adequately augments the protections contained in the Baldwin Hills Community Standards District. • Provides a satisfactory framework for safeguarding the health, safety and security of the surrounding community.

4. Number of Wells… • Reduces the number of wells that PXP can drill over the life of the Community Standards District (until 2028) from 600 to 500

5. Safeguards to Protect Health… • Additional Air Quality Monitoring Around Perimeter of Oil Field • Completed within next 12-24 months • Estimated cost to the County is $250,000 • Ongoing Environmental Justice and Health Assessments. • Initial “Community Health Assessment” will be complete by June 2012 • Department of Public Health will complete additional assessments every five to seven years

6. Future Drilling… • Incentives to abandon wells close to Sensitive Developed Areas and concentrate drilling in the center of the oil field. • Initially cuts annual new wells from 45 to 30 • More wells can be drilled only if PXP abandons wells within 800 feet of developed areas • After specified period, if Planning Director deems CSD working, PXP can drill 35 wells with additional credits for wells abandoned near developed areas, up to a total of 53 wells per year

7. Future Drilling… • Reduces the number of drill rigs allowed on the field from three to two. • Less drilling at one time will reduce noise, improve air quality and minimize other undesirable effects • Mandates studies to assess the feasibility of “Slant Drilling” away from developed areas.

8. Reduced Noise Impacts… • Requires a reduction of nighttime noise levels from 5 decibels to 3 decibels above nighttime baseline noise levels from 10 p.m. to 7 a.m. • Restricts PXP’s use of Old Flare. • Old flare can only be used as a back-up • Puts to rest concerns associated with noise and air quality impacts

9. Visual Improvements… • More effective landscaping completed faster. • Reduces timeframe for implementation from 5 to 3 years • Goal to complete first two phases along La Brea and below Ladera Crest within nine months • Landscaping plan along La Brea should begin shortly • Work with SCE and LA DWP to Initiate an Electrical Distribution Study to reduce unsightliness of utility lines. • Requires ongoing clean up of the oil field. • Strengthens standards related to well abandonment. • Requires use of 150-foot cement plug (vs. 25-foot) to allow for more flexibility in future land use

10. Fracking Study… • Requires that an independent consultant conduct a study of the feasibility and potential impacts (including impacts to groundwater and subsidence) of fracturing operations PXP may conduct in the future at the oil field. • PXP is currently not using hydraulic fracking techniques. • Study Will Also Consider PXP’s Historic and Current Use of Gravel Packing.

11. Promoting Sustainability… • Implements clean technology in oil field operations. • PXP will assess feasibility of using natural gas-powered drill rigs or other sustainable technology in Annual Drilling Plan • Will be required to implement such technology for new equipment to the extent feasible and commercially reasonable as part of Periodic Review

12. Review of CSD… • The CSD is in place to regulate drilling through October 2028. • However, if production drops to 630 barrels a day, the County has discretion to review the CSD to consider whether modifications or closure of the oil field is appropriate.

13. Remember… • The CSD and all of its hundreds of standards and requirements remain in full force effect except to the extent that this settlement agreements creates stricter and more rigorous controls on the operations of the Oil Field. • The Inglewood Oil Field becomes the most heavily regulated oil field in the Nation.

14. For more information visit http://ridley-thomas.lacounty.gov/