Relinquishments and Lease Expirations - Pacific

The Bureau of Ocean Energy Management (BOEM) requires financial assurance from record title interest holders to guarantee compliance with lease obligations and regulations associated with the cost of decommissioning offshore oil and gas facilities and associated pipelines in federal waters. Oversight and approval of all decommissioning activities in federal waters falls under the jurisdiction of the BSEE.

DCOR,L.L.C. Expired Pacific OCS Leases

Two federal oil and gas leases (OCS-P 0234/0346) offshore southern California, held by DCOR, L.L.C., expired by operation of law. The Bureau of Safety and Environmental Enforcement (BSEE) has called on the lessee, to carry out removal of all existing oil and gas infrastructure on these leases.

On Jul 15, 2021, a notice was sent to DCOR, L.L.C. to reiterate the previous obligations letter dated September 26, 2016 for the submittal of a decommissioning application to BSEE for review and approval. BOEM maintains close coordination with BSEE and other federal, state and local permitting agencies throughout the decommissioning process. Once BSEE accepts a decommissioning application, BOEM will conduct an environmental review of the application for use in BSEE’s decision.

DCOR, L.L.C. assets in federal waters to be decommissioned include three offshore oil and gas facilities, including Platform Habitat off southern California. Offshore pipelines associated with the platform will also be decommissioned.

On October 14, 2020, Signal Hill Service, Inc. relinquished its only Outer Continental Shelf (OCS) lease located off southern California citing the loss of its state-issued pipeline right-of-way. The loss of the pipeline right-of-way resulted in the company’s inability to transport oil and gas resources produced from its two platforms, Hogan and Houchin, to its onshore processing facility, thus resulting in a complete cessation of production and associated revenue. The Bureau of Safety and Environmental Enforcement (BSEE) has called on the former lessees to carry out removal of the existing oil and gas infrastructure on these leases.

Former Signal Hill Service, Inc. assets in federal waters to be decommissioned include two offshore oil and gas facilities, Platforms Hogan and Houchin, off southern California. Offshore pipelines associated with the two platforms will also be decommissioned.

On November 27, 2018, four federal oil and gas leases offshore southern California, held by Freeport McMoRan Oil & Gas, LLC (Freeport-McMoRan), expired by operation of law. The Bureau of Safety and Environmental Enforcement (BSEE) has called on the former lessee, Chevron U.S.A Inc. (Chevron) to carry out removal of all existing oil and gas infrastructure on these leases.

Freeport-McMoRan will submit a decommissioning application to BSEE for review and approval. BOEM maintains close coordination with BSEE and other federal, state and local permitting agencies throughout the decommissioning process. Once BSEE accepts a decommissioning application, BOEM will conduct an environmental review of the application for use in BSEE’s decision.

Freeport-McMoRan assets in federal waters to be decommissioned include three offshore oil and gas facilities, Platforms Harvest, Hermosa, and Hidalgo, off southern California. Offshore pipelines associated with the three platforms will also be decommissioned.

On January 4, 2018, Venoco, LLC relinquished five federal oil and gas leases offshore southern California. The Bureau of Safety and Environmental Enforcement (BSEE) has called on the former lessee, Chevron U.S.A (Chevron) to carry out removal of all existing oil and gas infrastructure on these leases.

Chevron will submit a decommissioning application to BSEE for review and approval.
BOEM maintains close coordination with BSEE and other federal, state and local permitting agencies throughout the decommissioning process. Once BSEE accepts a decommissioning application, BOEM will conduct an environmental review of the application for use in BSEE’s decision.

Former Venoco assets in federal waters to be decommissioned include two offshore oil and gas facilities, Platforms Gail and Grace, off southern California. Offshore pipelines associated with the two platforms will also be decommissioned.