Venoco, LLC Lease Relinquishments
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.
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.
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.