Findings of Fact

1. None of the parties who appeared at the PHC objected to the two-phase processing of the application.

2. On June 15, 2001, the report regarding the Environmental Branch's site visit to the two storage fields was filed.

3. The first phase addresses the following issues: the applicability of Pub. Util. Code § 851; whether CEQA applies to the proposed activities and whether any statutory or categorical exemptions apply; whether SoCalGas should be authorized to proceed with the drilling and related work and to reclassify the cushion gas; and whether SoCalGas should be authorized to recover the project costs from the sale of the gas.

4. No one attending the PHC voiced the need for evidentiary hearings on the first phase issues described in the preceding finding of fact.

5. None of the parties objected to deferring the remaining phase one issue until additional comments on the various proposals could be solicited.

6. A discretionary project is defined in § 15357 of the CEQA Guidelines.

7. SoCalGas' application acknowledges that the Aliso Canyon and La Goleta storage fields are currently in utility service, and have been in service continuously since they were first placed in service.

8. The Commission has placed the cushion gas that is used in normal gas storage operations into rate base, and has allowed SoCalGas to earn a rate of return on the cushion gas.

9. None of the protests or responses to the application oppose the concept of drilling new wells and reworking the existing wells so that the 14 Bcf of cushion gas can be made available.

10. The proposed activities, as described in SoCalGas' application, have monetary and operational benefits that will benefit the public if the Commission authorizes SoCalGas to proceed.

11. The assigned Commissioner's ruling of May 4, 2001 treated SoCalGas' statement regarding categorical and statutory exemptions as a motion for the Commission to determine whether the proposed activities involve a project that is subject to or exempt from CEQA.

12. No one who filed a protest or response to the application opposed SoCalGas' position that the project is categorically exempt from CEQA.

13. The Energy Division's site visit report has determined that the Class 1 categorical exemption applies, as well as § 15061(b)(3) of the CEQA Guidelines.

14. A Class 1 categorical exemption is described in § 15301 of the CEQA Guidelines.

15. The proposed well drilling and rework of the existing wells are consistent with the existing and surrounding land use as a gas storage facility, all of the proposed activities will take place on previously disturbed and isolated areas, and the ongoing operation will remain the same with additional storage capacity.