Background
On May 12, 1999, SoCalGas filed an application (A.) 99-05-029, pursuant to Pub. Util. Code § 851, seeking authorization to value and sell 36 undeveloped lots in Playa del Rey and Marina del Rey and for approval of an additional 48 lots that had been sold between 1950 and 1998. SoCalGas then amended its application on June 5, 2000 to include the signatures of the property purchasers. In its application SoCalGas sought authority to sell these lots because they were not "necessary or useful" to the Playa del Rey storage operations. Twelve of the 36 lots each contain an abandoned gas well; these gas wells were once used by SoCalGas as observation or monitoring wells for the gas storage facility in Playa del Rey.
On June 17, 1999, Division of Ratepayer Advocates (DRA) filed a response to the application supporting SoCalGas' request for ex parte status and recommended that no evidentiary hearing be scheduled in this matter. The Utility Reform Network (TURN) filed a protest raising the issue of gain on sale allocation between shareholders and ratepayers. In addition, protests were filed by the Grassroots Coalition, Friends of Animals, Ballona Wetlands Forever, Spirit of the Sage Council and Bernard Endres (collectively Grassroots). SoCalGas filed a reply to the protests.
Following an initial Prehearing Conference (PHC), Grassroots was instructed to revise its protest. In summary, in its revised protest, the Grassroots participants beseech the Commission to not allow structures to be built on these lots. The Grassroots participants argue that SoCalGas needs to have access to these lots, especially the lots over the abandoned and capped wells, to monitor for gas leaks, to repair or recap the wells, and to provide a buffer between the wells and the residential homes in the area.
A second PHC was held January 25, 2000, at which time Administrative Law Judge (ALJ) Wright and Commissioner Duque informed the parties that Energy Division (ED) recommended that an initial environmental analysis be performed to determine if a full EIR should be conducted.
On March 22, 2000, the ED informed the ALJ and Commissioner that an analysis under the California Environmental Quality Act (CEQA) was required to guide the Commission's decision on the application. SoCalGas was directed to submit a Proponent's Environmental Assessment (PEA) and the company did so on June 5, 2000, revising it on October 13, 2000.
On April 5, 2000, Commissioner Duque issued an Assigned Commissioner's Ruling and Scoping Memo (ACR/Scoping Memo) setting forth the scope of the proceeding as follows:
1. Whether the Commission should authorize the sale of the properties in Playa del Rey and Marina del Rey as requested by SoCalGas.
2. Consideration of the forthcoming CEQA analysis of those sales.
3. The division of the gain on these sales between ratepayers and shareholders.
