Assignment of Proceeding
John Bohn is the Assigned Commissioner and Carol A. Brown is the assigned ALJ in this proceeding.
1. On May 12, 1999, SoCalGas filed an application to value and sell 36 unimproved lots in Play del Rey and Marina del Rey and for approval of the sale of an additional 48 lots that had been sold between 1950 and 1998.
2. The 48 lots that was once part of the Playa del Rey storage operation several years ago had been sold by SoCalGas without out prior approval. Subsequent to those sale transactions, development had already taken place on the properties.
3. Twelve of the 36 undeveloped lots are over abandoned and capped oil and gas wells.
4. DRA and TURN were concerned with the allocation of the gain-on-sale as between shareholders and ratepayers, but did not protest the sale of the lots.
5. Allocation of the gain-in-sale from the sale of the 36 lots and the 48 lots is deferred until there is a final decision in R.04-09-003.
6. Community and concerned citizens filed a protest to the application raising a concern as to whether these lots should be sold or retained by SoCalGas to ensure that the gas company had continuing access to the lots and wells to monitor for leaks, and to repair the leaks or recap the wells if needed.
7. It was determined by the Commission's ED that an analysis under CEQA was required to guide the Commission's decision on the application.
8. CEQA review for the 48 lots that had been sold and developed would not have any effect because we are unable to conduct review prior to any project or construction activity.
9. Environmental review conducted as part of this application is limited to the 36 lots for which prior Section 851 approval is sought.
10. An environmental analysis was commenced and in September, 2003, the IS initiated the preparation of an EIR under the direction of the Commission.
11. As a corollary to the environmental review undertaken pursuant to the CEQA Guidelines, a HHRA was prepared for chemicals found in samples of soil, soil vapor and groundwater in the area of the lots.
12. The HHRA, issued in March 2004, determined that the estimated probability of an increased incidence of cancer for the residential future use scenario and the estimated noncarcinogenic hazard index are both below the Cal/EPA and U.S. EPA levels of no-significant risk.
13. On June 4, 2004, the Draft EIR was issued identifying that the focus of the environmental review was on the proposed sale of the 36 lots and the reasonably foreseeable future development of these lots with the construction and occupancy of residential housing units and commercial uses.
14. The Draft EIR also evaluated alternatives to the proposed project, including the No Project Alternative, as required by CEQA.
15. The Draft EIR was released for public review and was available at a number of areas, including two local libraries, Commission's Los Angeles and San Francisco offices and website.
16. Instructions were given for submitting written comments.
17. A public hearing for the project was noticed and held on June 28, 3004, in Westchester, California.
18. On February 11, 2005, the Commission issued a Final EIR.
19. The Final EIR includes the June 2004 Draft EIR, comments received during the 45-day comment period, responses to the comments from the ED staff, and changes made to the Draft EIR in response to comments.
20. The Final EIR was released for public review and was available at a number of areas, including two local libraries, Commission's Los Angeles and San Francisco offices and website.
21. The Final EIR must contain specific information according to the CEQA Guidelines Sections 15120 through 15132.
22. The various elements of the Final EIR satisfy these CEQA requirements.
23. The Commission must conclude that the Final EIR is in compliance with CEQA before approving SoCalGas' application for the sale of the lots.
24. CEQA requires that the Final EIR should embody "an interdisciplinary approach that will ensure the integrated use of the natural and social sciences and the consideration of qualitative as well as quantitative factors," it must be prepared in a clear format and in plain language, it must be analytical rather than encyclopedic, emphasize alternatives over unnecessary description of the project, and be "organized and written in such a manner that [it] will be meaningful and useful to decisionmakers and the public."
25. The Final EIR is the competent and comprehensive informational tool that CEQA requires it to be and the quality of the information therein is such that we are confident of its accuracy.
26. We have considered that information in the Final EIR in evaluating the SoCalGas project as described in this decision.
27. Under § 851, the Commission's role in examining transactions is the protection of the public interest.
28. In addressing whether the sale of the lots is in the public interest we give considerable weight to the views of the local community voiced by Grassroots et al. that they have real concerns about the health and safety of the neighborhood if structures are built on the lots over abandoned and capped wells.
29. We cannot conclude based upon this record and the Final EIR that the health and safety of the community will be compromised if the lots are sold and developed.
30. The Final EIR includes an analysis of three alternatives, including a No Project option.
31. The Final EIR does not recommend any of the three alternatives over the proposed project.
32. The Final EIR analyzes the environmental impacts, mitigation measures and significance after mitigation under the following categories: (1) air quality; (2) biological resources; (3) cultural resources; (4) geology and soils; (5) hazards; (6) hydrology; (7) noise; (8) transportation and traffic; and (9) utilities.
33. The Commission will not have jurisdictional control over the lots after the proposed sale has been completed. Therefore, the Commission will not have authority to impose and/or enforce any of the recommended mitigation measures identified in the EIR.
34. The recommend mitigation measures identified in the EIR can only be considered by other agencies (i.e., City of Los Angeles) during future environmental review associated with the future development of these 36 lots.
35. The Final EIR has been completed in compliance with CEQA.
36. The Final EIR reflects the Commission's independent judgment and analysis on the issues addressed in the Final EIR, and the Commission has reviewed and considered the information in the Final EIR before issuing this decision on the project.
1. The EIR, which consists of two separate documents, the Draft EIR and the Final EIR, should be certified.
2. The transfer of property ownership of the 36 lots would not directly result in any significant environmental impact.
3. The EIR discloses the environmental impacts that would be expected to result from the future development of the lots and recommended mitigation measures, which if implemented by other responsible agencies, could avoid or minimize these significant environmental impacts.
4. The Commission, as a lead agency would not have jurisdictional control over the 36 lots after the proposed sale has been completed and the Commission would not have authority to enforce mitigation measures identified in the EIR.
5. The community concerns were weighed against the recommendations in the Final EIR and it is reasonable to approve the project.
6. With respect to any necessary state or local discretionary permits which the purchasers of the lots must obtain in order to construct on the lots, we clarify that the discretionary decision as to whether or not, to issue the permits or pursuant to what conditions, is at the sole discretion of the state or local entity.
7. SoCalGas should segregate the gain-on-sale from the sale of the 36 lots and the 48 lots into a Memorandum Account pending a final Commission decision in R.04-09-003, at which time SoCalGas is to allocate the gain-on-sale in accordance with the final decision.
8. SoCalGas' application to value and sell the 36 lots and the 48 lots, as set forth in its amended application and the Final EIR, should be granted subject to the terms and conditions set forth in this decision.
9. SoCalGas' request for approval of the additional 48 lots that had been sold should be granted only on a prospective basis.
IT IS ORDERED that:
1. The environmental Impact Report (EIR), which consists of two separate documents, the Draft EIR and the Final EIR, shall be certified.
2. Southern California Gas Company (SoCalGas) is authorized to sell the 36 lots as proposed in its amended application, 2 in Marina del Rey and 34 in Playa del Rey, subject to the terms and conditions set forth herein.
3. Section 851 approval is granted for the sale of the 48 lots that had already been sold on a prospective basis.
4. SoCalGas shall book any gain-on-sale from the sale of the 36 and the 48 lots into a Memorandum account pending a final Commission decision in Rulemaking 04-09-003, at which time, SoCalGas is to allocate the gain-on-sale in accordance with the final decision.
5. Paragon Communities' motion for an interim decision to permit the sale of eight of the 36 lots is denied and any outstanding motion not ruled on is deemed denied.
6. Application 99-05-029 is closed.
This order is effective today.
Dated _____________________, at San Francisco, California.
APPENDIX A
(List of Appearances)
************* APPEARANCE *************
Last updated on 29-DEC-2005 by: CPL
A9905029 LIST
Kathy Knight
SPIRIT OF THE SAGE COUNCIL
BALLONA WETLANDS FOREVER, ET AL.
1122 OAK ST.,
SANTA MONICA CA 90405
(310) 737-1111
Edward W. O'Neill
ATTORNEY AT LAW
DAVIS WRIGHT TREMAINE LLP
ONE EMBARCADERO CENTER, SUITE 600
SAN FRANCISCO CA 94111-3834
(415) 276-6582
For: Paragon Communities, Inc.
Bernard Endres
ENDRES CONSULTING
3045 TUNA CANYON ROAD
TOPANGA CA 90290
(310) 455-0023
patriciamcpherson@earthlink.
For: Grass Roots Coalition, Friends of Animals and
Earthways Foundation
Patricia Mc Pherson
GRASSROOTS COALITION/FRIENDS OF ANIMALS
3749 GREENWOOD AVENUE
LOS ANGELES CA 90066
(310) 397-5779
patriciamcpherson@earthlink.
For: GRASSROOTS COALITION/FRIENDS OF
ANIMALS/SPIRIT OF SAGE
Isao Ted Kumada
7700 W. 80TH STREET
PLAYA DEL REY CA 90293
(310) 306-6727
For: SELF
Laurie Mcclenahan
MHA ENVIRONMENTAL CONSULTING, INC.
4 WEST FOURTH AVENUE, SUITE 303
SAN MATEO CA 94402
(650) 373-1200
Brian Catalde
PARAGON COMMUNITIES
8614 SOUTH SARAN DRIVE
PLAYA DEL REY CA 90293
(310) 301-0029
Bruce Resnick
1927 PONTIUS AVENUE
LOS ANGELES CA 90025
(310) 478-8372
For: Self
David J. Gilmore
ATTORNEY AT LAW
SEMPRA ENERGY
555 WEST FIFTH STREET
LOS ANGELES CA 90013
(213) 244-2945
For: Southern California Gas Company
Marcel Hawiger
MICHEL PETER FLORIO
ATTORNEY AT LAW
THE UTILITY REFORM NETWORK
711 VAN NESS AVENUE, SUITE 350
SAN FRANCISCO CA 94102
(415) 929-8876
For: The Utility Reform Network (TURN)
Marcia Hanscom
EXECUTIVE DIRECTOR
WETLANDS ACTION NETWORK
PO BOX 1145
MALIBU CA 90265
(310) 456-5604
Sindy J. Yun
Legal Division
RM. 4300
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-1999
For Office of Ratepayer Advocates
(End of Appendix A)
