Carpinteria closes out former Veneco pipeline abandonment project after state grant covers work

The Carpinteria City Council authorized staff Monday to complete closeout for the former Veneco oil pipeline abandonment project after staff reported final acceptance and state confirmation that the pipeline has been abandoned.

Staff said the city applied for and received Senate Bill 170 funds totaling $500,000 to pay for abandonment work on pipeline No. 0470. In October 2022 the council awarded a construction contract to a joint venture of Beacon West Energy Group LLC and Pacific Petroleum California Inc. with a base bid of $444,888. Staff told the council the project removed the pipeline’s water contents (treated with biocide and corrosion inhibitor) and displaced the line with nitrogen gas as an inert inerting agent.

Staff explained the start of construction was delayed for almost two years while the city and Chevron negotiated property-access agreements; Chevron owns the parcel where the pipeline sits. The state fire marshal issued a confirmation letter that identified the pipeline as abandoned, which staff said transfers the long-term liability away from the city for the purpose of the state’s requirement.

Staff recommended, and the council approved, authorization for the mayor to sign the closeout agreement and release of claims with the joint construction companies and for the city manager to release the construction contract bonds after one year of acceptance to cover warranty concerns. Council took the action on a roll-call vote recorded as unanimous.

Staff noted the grant funds were provided on a reimbursable basis and the final project costs were below the $500,000 allocation; the unspent grant funds remain with the city. The council did not direct further action; staff said information about the pipeline’s recorded location will remain in utility databases and emergency contacts for the line are posted on the field markers.