BodyBoard of Supervisors
MeetingRegular Meeting
Date📅 July 29, 2014

UnGovr Transcript

iHow this transcript is madeUnGovr transcribes the official recording with automated speech-to-text, separates speakers by voice, and matches voices to the seated roster. Names and attributions are AI estimates and may contain errors.Verify any quote yourself: click anywhere in the transcript and the official video jumps to that exact moment, so you can check any quote against the recording.
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0:00 – 0:022 turns

UnidentifiedUnidentified speaker 1Proposed0:19 · ≈ 9:00 AM

♪ Hi, everyone. ♪ Thank you.

UnidentifiedUnidentified speaker 2Proposed2:17 · ≈ 9:02 AM

It's going to rain in here. All right,

0:02 – 0:0512 turns

UnidentifiedChairProposed · by role2:32 · ≈ 9:02 AM

good morning ladies and gentlemen I'd like to welcome everybody to this meeting of the County Board of Supervisors. Mr. Allen can we get a roll call please?

UnidentifiedUnidentified speaker 3Proposed2:42 · ≈ 9:02 AM

Mr. Carbajal? Here. Ms. Wolfe? Here. Ms Farrer? Here. Mr. Adam?

UnidentifiedChairProposed · by role2:47 · ≈ 9:02 AM

Here,

UnidentifiedUnidentified speaker 3Proposed2:49 · ≈ 9:02 AM

Mr. Lavinino?

Pledge of Allegianceceremonial · click to expand · ≈15s recited, not transcribed
UnidentifiedChairProposed · by role2:50 · ≈ 9:02 AM

Here please rise and join me in the Pledge of Allegiance.

I pledge allegiance to the flag of the United States of America and to the republic

UnidentifiedUnidentified speaker 2Proposed3:03 · ≈ 9:03 AM

for which it stands one nation under God indivisible with liberty and justice for all.

UnidentifiedUnidentified speaker 2Proposed3:14 · ≈ 9:03 AM

Don't forget it.

UnidentifiedChairProposed · by role3:21 · ≈ 9:03 AM

Mr. Allen, do we have any public comment speakers? Slips?

UnidentifiedUnidentified speaker 3Proposed3:24 · ≈ 9:03 AM

We have no request to speak on public comment.

UnidentifiedChairProposed · by role3:26 · ≈ 9:03 AM

No requests to speak. Great. All right. Let's move on to our- For public comment or for speaking on something else?

UnidentifiedUnidentified speaker 3Proposed3:37 · ≈ 9:03 AM

Then Scott wins.

UnidentifiedChairProposed · by role3:38 · ≈ 9:03 AM

Okay, Scott.

UnidentifiedUnidentified speaker 4Proposed3:49 · ≈ 9:03 AM

Mr. Chair, members of the board, Scott Wins. I'm wearing two hats today. The first one is a member and an officer in the line of the Scottish Rite Valley of Santa Barbara. Scottish Rite has a language disorder clinic for the kids. We have a booth down at Delaguerre Plaza for a fiesta. We invite you to come down, buy a rib for a kid. This is a item that helps support our clinic. We charge absolutely nothing for any child that comes in.

And so we really would hope that anybody here in the audience that's listening to this would come on down and help support us. And I'll step back and re-approach as President of Cars Air Basic. We sent you a letter approximately a month ago regarding the new bike lane configuration on Hollister. We received a very congenial letter in response from Mr. McLaughlin. I can tell you right now that this bike lane configuration is not working. The very fear that we had of people using that buffer lane As a additional bike lane is actually happening. I've been out there now almost 10 times and watched it, and that's exactly what they're doing. They come out there, they're riding in tandem, they're right now very much closer to the automobiles so the bicyclists are actually in more danger.

So I would urge you to remove that buffer lane and go back to the standard configuration. Thank you.

UnidentifiedChairProposed · by role5:15 · ≈ 9:05 AM

Thank you very much. All right. Public comment will be closed. We'll move on to our administrative agenda. Mr. Allen?

0:05 – 0:1119 turns

UnidentifiedUnidentified speaker 3Proposed5:24 · ≈ 9:05 AM

Chair Lavagnino, members of the board we just had a single administrative item this morning it's from the county executive office. The request is that the board consider recommendations regarding the re-ratification of the drought proclamation passed on July 1, 2014.

UnidentifiedUnidentified speaker 5Proposed5:36 · ≈ 9:05 AM

So moved, Mr. Chair.

UnidentifiedChairProposed · by role5:37 · ≈ 9:05 AM

Moved and seconded. I guess we need a roll call with Mr. Adam and Santa Maria

UnidentifiedUnidentified speaker 3Proposed5:41 · ≈ 9:05 AM

Mr. Caldwell, Mr. Carbajal, Mr. Wolfe, Ms. Farr, Mr Adam, Mr Lavinino.

UnidentifiedChairProposed · by role5:49 · ≈ 9:05 AM

Aye. I think he called you Mr. Caldwell and Mr. Carbajal

UnidentifiedUnidentified speaker 3Proposed5:52 · ≈ 9:05 AM

almost.

UnidentifiedUnidentified speaker 6Proposed5:56 · ≈ 9:05 AM

All

UnidentifiedChairProposed · by role5:59 · ≈ 9:05 AM

right so this will take us to our departmental agenda almost. So we'll move on to our departmental agenda item number one Mr. Allen

UnidentifiedUnidentified speaker 3Proposed6:09 · ≈ 9:06 AM

Item one is from the County Executive Office. It's a hearing to consider recommendations regarding Measure P implementation ordinances and general plan amendment.

UnidentifiedChairProposed · by role6:17 · ≈ 9:06 AM

Okay, I'm going to kick it to Mona for just a second so that Mona can kind of give us an idea of why we're having this hearing. And then if we can move on from there go to our regular presentation.

UnidentifiedUnidentified speaker 7Proposed6:37 · ≈ 9:06 AM

Board members and we had scheduled today's hearing for a couple of reasons one originally was to. The next board meeting is scheduled for August 19th and staff would need to prepare actions. For a commission meeting that

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UnidentifiedUnidentified speaker 8Proposed7:14 · ≈ 9:07 AM

Yes, good morning Mr. Chair and members of the board. This is an item related to Measure P, the initiative to ban high intensity petroleum operations which your board voted to submit to the voters in the November general election. High intensity petroleum operations include hydraulic fracturing, acid well stimulation, and injecting any substance into a well including water, steam or air.

The initiative includes three broad categories of exemptions from these prohibited operations. However, in order to consider and apply these exemptions, implementing ordinances are necessary as are amendments to the coastal land use plan, land use element, circulation element and ag element. Since several of the prohibited methods of oil and gas extraction are extensively used in the county, staff has proposed to codify the process to consider and apply the exemptions in the initiative.

This would provide certainty to the community and reduce litigation risks to the county. The proposed ordinance and general plan changes would be operative if, and only if, and immediately upon Measure P becoming effective. If the board follows staff's recommendation and directs staff to develop and process ordinances and plan amendments, staff proposes to agendize proposals for the Montecito Planning Commission's consideration on August 25th We have a request to speak.

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UnidentifiedChairProposed · by role9:08 · ≈ 9:09 AM

Supervisor Wolf.

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UnidentifiedUnidentified speaker 9Proposed9:11 · ≈ 9:09 AM

Thank you, Mr. Chair. Ms. Block I think I need a little bit more direction about what we're to do today. What I heard you say is that we are charged with developing implementing ordinances and as I read through the initiative It appears that the Board of Supervisors should basically lay out a process. That if there is someone who wants to maybe assert vested rights or something like that, that there is a process by which they can come to the county and assert those rights. So is that what we're here today to do? Which is to develop a process like for instance within 30 days you have Make your application for the 90 days. It's hurt. I mean what so what are we doing today?

UnidentifiedUnidentified speaker 8Proposed10:13 · ≈ 9:10 AM

Mr. Chair and Supervisor Wolf, yes what we are asking the board to do is to give us direction to develop implementing ordinances to administer the exemption provisions of Measure P. The rest of the measure if it's approved by the voters will go into effect immediately but the provisions that are included in Section 5 for consideration of exemptions require implementing ordinances And so our recommendation is that we put those procedures in place to administer those exemptions, consider those exemptions prior to the election. So that if it passes, those are in place. Okay.

UnidentifiedUnidentified speaker 9Proposed10:53 · ≈ 9:10 AM

Thank you. So we're not giving you the specifics. We're just going to say to you come back to us with the process per the

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UnidentifiedUnidentified speaker 8Proposed11:03 · ≈ 9:11 AM

initiative? Mr. Chair and Commissioner Wolf, or Supervisor Wolf, that's correct. Okay. Thank you.

UnidentifiedChairProposed · by role11:09 · ≈ 9:11 AM

So we'll do two minutes a piece for speakers. There's 27 speakers, that's an hour of public testimony I think that's significant for one item so go ahead.

UnidentifiedUnidentified speaker 3Proposed11:25 · ≈ 9:11 AM

Our first speaker is going to be in Santa Maria at Susan Wayland to be followed by Trent Benedetti also in Santa Maria.

0:11 – 0:174 turns

CommentSusan WhalenProposedself-stated11:47 · ≈ 9:11 AM

Thank you. My name is Susan Whalen with GRECA and we have a couple of observations we'd like the board to consider at today's hearing. First, one of the findings which appears in section 1 purpose and findings paragraph A subparagraph 1 in the last sentence of the second paragraph again it states quote use of high intensity petroleum operations to extract oil and gas could lead to an increase in the number of new wells in the county.

This language allows an interpretation that all existing wells are exempt for any future activity regardless whether a modification to any permit may be required. This interpretation eliminates the perceived necessity to define what modifications for permitted operations may be exempt. All are exempt with reference to existing wells. Second, We consider the quote vested rights to include permitted, excuse me permit applications filed with the county and state before the effective date.

Otherwise there is potential litigation with the county as to permit applications filed versus granted before the effective date of the initiative if passed. For example an operator's later application in time that did not get approved may challenge how it is that the county did not process its application fast enough to grant approval along with the other operators applications.

This opens Pandora's box and accordingly, to eliminate any ambiguity and for the avoidance of doubt, vested right ought to expressly include permit applications filed not limited to those granted. Thank you.

UnidentifiedUnidentified speaker 5Proposed13:35 · ≈ 9:13 AM

Mr. Chair, thank you I mean, I just want to clarify I think everybody understands but this was a ballot initiative that was qualified for the ballot by the voters The board had two choices Once that happened we could either adopt it just the way it was or we could put it on the ballot We put it on the ballot But we do not have the option of changing a word of that initiative All we can do is try to then be prepared, if it should pass for what it requires. And it does expressly state within the ballot measure that we then are obligated to come up with these implementing ordinances.

We're not talking about anything here today except to give staff the go ahead, to go ahead and start to draft those so that they can go to the planning commission and come back to the board in October. So that they can be in place if measure P passes. If measure P does not pass none of this happens. I just want to be clear because we don't have the option of changing a word of the ballot initiative as it qualified. Thank you Mr. Chair.

UnidentifiedUnidentified speaker 3Proposed14:50 · ≈ 9:14 AM

Trent Benedetti in Santa Maria and then we're going to come back here for Doug Imparato.

UnidentifiedUnidentified speaker 10Proposed14:59 · ≈ 9:14 AM

Thank you Chairman Labagnino and supervisors, I appreciate the opportunity to speak. My concern as a citizen that's been volunteering on some of the committees for the county for the last decade is the potential effect on the general fund And specifically to address supervisor's issue there, I'm not so concerned. I realize that we're just now talking about directing county council to do implementing measures that would allow them to interpret the exceptions to the ordinance and The main concern today is that we've been able to, over the last decade as a very strong healthy general fund recognize Decreases actually of the 58 counties in California Our municipal bonds are rated among the highest there is probably no county higher than our bonds That's enabled us to keep our interest rates low.

We've probably saved millions of dollars over the last decade In our general fund also when we get to the issue of property tax, I think that if if the landowners Are not successful in getting their exemptions granted. We certainly will see a decrease in some of the property values that were negotiated with mineral rights and consideration of future uses My basic comment today is that you direct county council when they look at the exemptions of what a constitutional taking is, and you look at the large amount of information that's provided in some of the packet information today related to lawsuits and state laws and things like that. You give county council Direction to interpret it not in a narrow scope. It seems like attorneys have the ability to interpret laws, you know based on The way they want to see it based on their clients and basically County Council is Is your your their client the Board of Supervisors?

And if you direct them to Consider the constitutional takings both at the US and California level and give the property owners broad latitude in what that Doug Imparato here in Santa Barbara followed by Gary Podlar.

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0:17 – 0:2211 turns

UnidentifiedUnidentified speaker 11Proposed17:41 · ≈ 9:17 AM

Good morning. I'm a UCSB graduate and lived in Santa Barbara most of my life, where I've raised a family and enjoyed all the great things that Santa Barbara has to offer. I am very concerned about maintaining a healthy environment for my children to live in and try to do my part every day. I do support my family with oil production from a Santa Barbara County lease Water has been injected on this lease and wells have been acidized on this lease since the 1940's. Now, this is the same acidizing process that's used in water wells to maintain water well production and also in geothermal wells. It's a routine process that's required to keep production going.

Our operation can hardly be characterized as intensive. Now, fracking is a non-issue in Santa Barbara County. It hasn't worked and no one is doing it. This measure goes well beyond fracking to include eliminating many of the routine operations that we've been using for years Now I'm not a lawyer. My PhD is in geology, but I have read this measure quite a few times and from what I can tell it will have a major impact on our ongoing operations.

Are we going to be able to continue to do the things that we need to keep our lease productive? I am hoping that we can get some assurances that's going to be the case. Thank you.

UnidentifiedChairProposed · by role19:29 · ≈ 9:19 AM

Thank you.

UnidentifiedUnidentified speaker 3Proposed19:31 · ≈ 9:19 AM

Gary Podlar. Be followed by Katie Davis.

UnidentifiedUnidentified speaker 12Proposed19:44 · ≈ 9:19 AM

Thank you. Yesterday, KEYT reported that Supervisor Vanino said that lawyers were predicting billion-dollar lawsuits if Measure P passed. He couldn't be here today but I have a letter from a lawyer who says his client will give me $20 million if I help him to get his fortune out of Nigeria. I don't know why he won't tell me his name. When I get the money, I'm donating it to Yes on Measure P.

Not for a moment would I suggest that Supervisor Lavagnino would publicly quote non-existent lawyers, but I must question the motivations of those lawyers when they are unwilling to appear in the light of day and explain how other lawyers who have successfully crafted ordinances specifically to avoid takings claims could be so wrong. Is it possible that Lawyer X, whose identity must remain secret, is being paid by the oil industry to frighten voters?

If that was true then that would suggest that the industry was unable to persuade voters with rational argument and had nothing to offer other than anonymous threats.

UnidentifiedUnidentified speaker 3Proposed20:48 · ≈ 9:20 AM

Thank

UnidentifiedUnidentified speaker 12Proposed20:48 · ≈ 9:20 AM

you.

UnidentifiedChairProposed · by role20:49 · ≈ 9:20 AM

Thank you very much.

UnidentifiedUnidentified speaker 3Proposed20:50 · ≈ 9:20 AM

Katie Davis to be followed by Rebecca Klassen

UnidentifiedChairProposed · by role21:00 · ≈ 9:21 AM

Mr. Guzzone, have we been threatened with litigation at this point?

UnidentifiedUnidentified speaker 13Proposed21:06 · ≈ 9:21 AM

Chair Labadino and Supervisors, yes we've received at least two express written threats of litigations based on takings claims. Thank you very much. All right, Katie.

UnidentifiedUnidentified speaker 14Proposed21:18 · ≈ 9:21 AM

Yes, Katie Davis with the Water Guardians that helped qualify the initiative. I am not surprised that you have been threatened with litigation. Here is a map of 429 places in the US that have banned these types of techniques like fracking. I talked to David Slotsky, a lawyer with Environmental Defense Center of New York that has been involved with 200 of those municipalities in New York that have banned fracking. And he said in every single one of those cases, those localities were threatened with lawsuits. People coming in, threatening the local municipalities. Threatening the individual members to sue them.

It's just a lot of scare tactics. Those have passed successfully and there were only four lawsuits out of 200. And in all cases the bans passed, they won. And the local municipalities had paid nothing, so it didn't cost them anything. I would ask that the supervisors and county staff not be intimidated by these scare tactics that have not proven out in other places.

It is perfectly acceptable and legal to pass this initiative which does not apply to current production or well maintenance as those are also misinformation that's being spread By by industry and nothing will change if this passes will continue a status quo. We will do is prevent a massive increase in these very risky high intense Wells that are causing water contamination health impacts elsewhere, thank you

0:23 – 0:288 turns

UnidentifiedUnidentified speaker 3Proposed23:04 · ≈ 9:23 AM

Rebecca class and followed by Stephen Kirby

PresenterRebecca ClaussenYes On Measure P coalitionProposedself-stated23:10 · ≈ 9:23 AM

Chair Lavagnino and members of the board, my name is Rebecca Claussen and I am speaking on behalf of the Yes On Measure P coalition. I would like to start by pointing out that it is due to no flaw in the initiative that we are here today. Initiatives functioned to outline the basic overall policy for a jurisdiction while allowing local government to determine how these policies will be implemented.

And that is what Measure P does. Measure P is a well-crafted, legally defensible initiative that outlines an overall policy that will protect our precious water supplies from risks of contamination from high intensity oil extraction techniques while exempting current production, well maintenance and vested rights. We commend county staff for taking these steps outlining how Santa Barbara County would implement Measure P upon its passage.

I would also like to point out that while our efforts are truly grassroots and all local in origin, we are far from alone in this. Over 400 communities nationwide have taken action to protect themselves from these risks and many similar initiatives have been upheld all without bankrupting their communities. Thank

UnidentifiedUnidentified speaker 3Proposed24:18 · ≈ 9:24 AM

you. Stephen Kirby be followed by Ben Oakley.

PresenterSteve KirbyHollister Embrace Law FirmProposedself-stated24:26 · ≈ 9:24 AM

Good morning. My name is Steve Kirby. I practice natural resources law with the Hollister Embrace Law Firm. I'm making a special appearance today on behalf of the National Association of Royalty Owners. If you move forward with this, I hope that your staff and council will consider some of the following issues among others. First of all, how many separate operations or interests are covered by Measure P.

The board is going to need to know this information in order to budget for the necessary staff, attorneys, consultants to process what will be a flood of exemption requests. The voters ought to have this information as well. Second, will production operations be allowed to continue during the vested right determination process? If not, the county could be liable for permanent takings on account of barrels not produced.

Can broad categories of exemptions be crafted or does each matter individually have to be the subject of a separate determination proceeding? Will the Board of Supervisors make all of these determinations Or will staff or the Planning Commission be able to make some? If so, which ones? Will there be notice and opportunity to be heard given to third parties?

And will CEQA apply? Will vested operations be subject to Measure P determination if one seeks a permit to change out equipment That needs to be replaced. What about new wells on the same lease? Who will make those determinations and will full-blown hearings be required? Lastly, most of the focus has been on owners and operators suing the county. What about suits by vested right opponents The county may not be able to recover any of the defense costs from the private sector in either case.

UnidentifiedChairProposed · by role26:55 · ≈ 9:26 AM

Thank you very much.

PresenterSteve KirbyHollister Embrace Law FirmProposedself-stated26:56 · ≈ 9:26 AM

Thank you.

UnidentifiedUnidentified speaker 3Proposed26:58 · ≈ 9:26 AM

Ben Oakley to be followed by Frank Hotchkiss

CommentBen OakleyProposedself-stated27:09 · ≈ 9:27 AM

Good morning my name is Ben Oakley I work for ERG operating company we're an oil and gas operator in the Cat Canyon Oil Field I'm here today to voice our opposition to Measure P in that it's a flawed proposition. It would ban conventional oil and gas production techniques along with fracking, and for that reason it would have a devastating impact on the local economy and jobs.

And when we talk about these impacts, I just want to make sure that we understand there is a human element to this. This isn't just numbers on a piece of paper but these are hardworking men and women in our community You know when we say there's thousands of jobs are going to be lost. We're talking about thousands of households and families such as mine and some the other you know folks that are in the audience this morning so I just want to point that out.

As an example, we have a vendor in Cat Canyon who does uniform service for us. So just give me an idea the breadth of people that will be affected by this this measure he came in recently and was distributing anti Measure M literature because he was worried about his job and he said that 80% of his clients are oil and gas clients. And so it's not just people that work for the companies, it's the service providers, and it's going to be a very large impact on these folks. So I just wanted to point that out to you folks this morning. Thank you very much. Thank you.

0:28 – 0:358 turns

UnidentifiedUnidentified speaker 3Proposed28:37 · ≈ 9:28 AM

Frank Hotchkiss to be followed by George Milston

UnidentifiedUnidentified speaker 15Proposed28:40 · ≈ 9:28 AM

Board members, good morning. Frank Hotchkiss. I'm not here to try to persuade the proponents of this flawed measure for them. It's a matter of belief and it's not smart to try to argue religion from the podium. But I am here to speak to you as neighbors because Measure P proposes to eliminate a lot of neighbors' livelihoods. It does this because its backers just don't like what their neighbors do for a living.

If we adopted that as a guiding philosophy, what would be next? What else doesn't appeal to us? Grape growing? That requires back-breaking labor. Wine making? Well, do we really want to contribute to inebriation on our highways? Planting new crops? Well, what's wrong with the old ones? How about new home construction that's a precious waste and use of resources? So I hope you see my point.

To bring this closer to home for us here in the South County, how would we feel if our neighbors to the north decided to ban one of our important industries that they found undesirable? What if they decided to ban commercial fishing? Well why not? They don't fish. Fishing pollutes the ocean, they could say. It affects our ocean water. It kills things, fish.

Overfishing could assault the natural balance of wildlife. Such a ban obviously would be as foolish as Measure P and it would deprive us of jobs, good produce and taxes. And it would not be neighborly. Let's not set a terrible precedent by being unneighborly to them any more than we would have them be unneighborly to us. I think entire religions are based on that premise, thank you. Thank you.

UnidentifiedUnidentified speaker 3Proposed30:38 · ≈ 9:30 AM

George Milston to be followed by Ed Hazard.

UnidentifiedUnidentified speaker 16Proposed30:42 · ≈ 9:30 AM

Good morning, George Milston of Latham Watkins. This board is not permitted to fix a fatally flawed initiative and that is what we have here. The initiative will dramatically and adversely affect all existing production in the county, and will effectively prohibit any new production. The initiative will result in millions of dollars in lost revenues to the county.

The initiative will result in millions of dollars in increased staff costs and legal costs to the county. The initiative will expose the county to millions of dollars if not hundreds of million dollars of liability for takings claims. There is no savings clause that will save the county from these costs and liabilities. The initiative could have made clear it exempts existing production, it does not.

The initiative could have made clear that exempts well servicing, it does not. The attorneys that wrote the initiative knew exactly what they were doing. It prohibits all existing production, prohibits future production and effectively stops all well servicing. Measure P proponents say that it bans fracking. There's no fracking going on in this county. That is wrong. It is so broadly written it affects all production.

Don't take my word for it, ask your staff. They will tell you that Measure P will effectively shut down all existing production in this county and there will be no future production. The banned production methods have been safely used in this county and the state and the country for decades. And there is no savings clause to save you or the industry. There is no state statute that county can point to define vested rights. It's all based on case law, and it's clear from court decisions that there is no right to develop vests until the final discretionary permits have been issued.

And under the county ordinances virtually every permit that is needed for oil and gas drilling is discretionary which makes the issue of vested rights very problematic. And it will be subject to substantial litigation. And then that leaves us with the takings claims, and there'll be hundreds of them brought. It is very important that the county make this information known to the public. The potential exposures and liabilities to the county, the cost to the counties, and the jobs that will be lost. Thank you very much. Thank you.

UnidentifiedChairProposed · by role32:58 · ≈ 9:32 AM

And to the speaker before, I present to you Attorney X. Okay. Thank you. One of Attorney X's. Yes. All right.

UnidentifiedUnidentified speaker 3Proposed33:10 · ≈ 9:33 AM

Ed Hazzard and then Caroline Chamberlain.

PresenterEd HazzardCalifornia chapter of the National Association of Royalty OwnersProposedself-stated33:13 · ≈ 9:33 AM

My name is Ed Hazzard, my family and I are Santa Barbara County mineral owners. I'm also president of the California chapter of the National Association of Royalty Owners. My family acquired some minerals in 1955 in the Cat Canyon field. My father his mother and some aunts uncles and cousins right now that fields largely producing in the CISCO zone which requires every now and then that you abandon a well and drill a new well.

And one of my concerns is what happens when, as we're trying to extract the reserves that we own? We don't own any surface. My family has severed mineral rights. We own the underlying rights to the minerals. We get along very well with the surface owners, but what happens when it's necessary for us to go in and abandon a well and drill a new one so that we can harvest that oil?

I think you have a seriously flawed measure here. What you're being asked to do today is to put a Band-Aid on a mortal wound, and I think you have to. I think you don't have a choice. But I will tell you that if Measure P passes We don't have a choice either, us mineral owners. We're going to have to protect our interests and you can think it's an idle threat.

We may win we may lose but with the amount of recoverable reserves based upon these technologies which are actually proven safe time tested technology steaming acidizing water flooding have been used for decades on our properties If this measure passes, we will have no option but to try to protect our family. And as president of NARO California I will have no option but try to protect the thousands of others in this county just like us. Thank you. Thank you.

UnidentifiedUnidentified speaker 3Proposed35:19 · ≈ 9:35 AM

Caroline Chamberlain to be followed by Ron DeBlois

0:35 – 0:427 turns

CommentCaroline ChamberlainProposedself-stated35:35 · ≈ 9:35 AM

Hi, my name is Caroline Chamberlain and I am in support of passing Proposition P. And I know a lot of people are speaking about the economic consequences of eliminating fracking in the county and I want to talk about The consequences if you continue fracking or allow it to expand. Even though we haven't found examples of local municipalities that were bankrupted by fracking, there are plenty of examples of neighbors having to pay a heavy price for their health and the quality of the water and air from this risky technique.

When you frack, benzene is released in dangerous levels into the air. And in Denton, Texas where I lived near for almost 20 years, air monitoring is important because in the backwards Texas regulatory system fracking is treated as an innocent until proven guilty procedure. Even though we know the industry is using carcinogenic and toxic materials and chemicals, the burden of proof falls on the residents to establish those chemicals are trespassing into their neighborhoods and their bloodstreams.

It means that it's up to the local communities to monitor the industry, and that's what we're trying to do today. We also talk about the economic consequence, how about the consequence of our property values? There's another article, The Best Ways to Ruin the Appraisal Value of Your Home. First of all, water damage. Second, where your home is located. Third, hoarding. This one, fracking, the potential for fracking. There's good reason...

Sorry I can't read it. There's good reason for the widespread protests against fracking. The controversial drilling technique has been linked to an increase in earthquakes and poor water quality. One result is a significant decrease in the value of homes in areas where fracking has taken place or could possibly occur. Researchers at Duke University have determined that Pennsylvania homeowners who live within one and a quarter miles of a fracking site suffered a 24% reduction in the value of their property, which there hits our budget. Hits our property values, our tax revenues.

UnidentifiedChairProposed · by role37:55 · ≈ 9:37 AM

Ma'am, you're over your time. Okay. Thank you very much.

UnidentifiedUnidentified speaker 3Proposed37:58 · ≈ 9:37 AM

Ron DeBlois followed by Roy Reed.

CommentRon DeBloisProposedself-stated38:06 · ≈ 9:38 AM

Hello, Chairman and County Supervisors. Thanks for giving me the time to speak. I'm Ron DeBlois. I am a candidate for State Assembly in 37th District. My whole focus on the campaign has been about jobs and putting people to work and keeping companies from leaving California. We have record companies leaving California all the time. Everybody knows it. So if this measure passed, it would cost thousands and thousands of jobs. I mean, this is real. This is people that go to work and they get home, they get laid off. The companies leave in California. It's a big thing. This is not real simple. You have thousands of people lose their jobs because they lose their house. It doesn't stop. And it affects every business. It doesn't just affect the oil worker.

It affects the grocery store. People who want to send their kids to college and not have the money. So it's a big thing, you know? And that's why I'm pro-business and pro-jobs for one reason. So people have opportunities. College kids have opportunities. So I say no on P because we need jobs. This is a real thing. It's not just oh, you're on this side or you're in this side. Hey, you know, people need to work.

We already have problems in California. We have water problem in California that's taking jobs too. We can't afford to lose any more jobs so I say no on p and thank you. Thank you.

UnidentifiedUnidentified speaker 3Proposed39:23 · ≈ 9:39 AM

Roy Reed, to be followed by Corey Ellis.

PresenterRoy Reedsome family holdings representing the interests of approximately 120 family meProposedself-stated39:35 · ≈ 9:39 AM

Good morning Chairman Labanino and the board I'm Roy Reed from Santa Maria. I am a board member of Naro California. I am also representing some family holdings representing the interests of approximately 120 family members Partners and shareholders in two large holdings in the Santa Maria Valley. These ranches have been producing frack-free oil in Santa Barbara County since the 1920s, in one case, and since the mid-'60s in the other.

Fracking has never been used there nor will it ever be used there although we have used cyclic steaming and acidizing very safely and effectively since at least the mid-'60's. One of the things that we do understand very well is that up to this point, you've not had any options in terms of modifying Measure P. And you won't. The only opportunity that the board will have to mitigate some of the potentially negative impacts of this measure is to direct staff to prepare ordinances to create reasonable, equitable and durable exemptions for people with oil rights in this county. Not only will it preserve income, it will preserve very badly needed jobs when the North County will be primarily a recipient of the negative effects of this ordinance.

Now I know the Water Guardians profess that Measure P will have no real effects on existing properties and productions. It seems to me that never have so many talked so much and so loudly in favor of a measure that they claim will have no significant effects. While on the other hand, those well-versed, well credentialed and well qualified with respect to petroleum and petroleum law say that existing Thank you very much.

Corey Ellis, to be followed

not transcribed≈27s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 3Proposed42:01 · ≈ 9:42 AM

by Pat Kistler.

0:42 – 0:4814 turns

UnidentifiedUnidentified speaker 17Proposed42:07 · ≈ 9:42 AM

Hello and thank you for the opportunity to speak. I'm speaking today on behalf of the Santa Barbara County Water Guardians and a number of false statements have been made this morning so I'd like to offer some clarification. We have this document that has been offered by our lawyers who wrote the initiative So to the question, will the initiative measure shut down existing oil and gas operations and facilities? No. The measure only applies prospectively to prohibit any new land uses in support of high intensity petroleum operations including fracking, acid matrix stimulation, cyclic steam injection and water flooding.

It does not apply to existing operations and facilities, and therefore it doesn't apply to existing jobs or existing service providers. It does not apply to offsite structures or infrastructures such as refineries and pipelines. Second question, will the measure ban routine maintenance activities and thus effectively shut down existing wells? No, the measure does not ban routine maintenance activities such as cleaning or repair of the well borer.

If operators believe this should be clarified, the measure permits the county to pass regulations to expressly permit maintenance activities. Third question, will the measure prevent existing facilities from modernizing? No, the measure does not prevent currently existing facilities from modernizing their existing equipment. Of course, modernization would not allow a landowner to commence new high intensity petroleum operations such as fracking. What our initiative does do is prevent the expansion of these high-intensity petroleum operations and therefore protect our air, water health and climate. Thank you very much.

UnidentifiedUnidentified speaker 3Proposed43:52 · ≈ 9:43 AM

Pat Kistler be followed by Robert Burke

UnidentifiedUnidentified speaker 18Proposed43:57 · ≈ 9:43 AM

Good morning. Pat Kistler representing the Chambers of Commerce Alliance, over 20 to 30 chambers in Ventura and Santa Barbara counties. I am the current past president of the board. The Chamber of Commerce Alliance urges a no on Measure P which has been placed on the November ballot for the Santa Barbara County voters to consider The Santa Barbara Board of Supervisors and voters are reminded that the CCA represents more than 200,000 jobs in Ventura and Santa Barbara County. An outright ban or any type of process ban on oil and gas production in this county will have a far reaching consequence.

County boundaries are not barriers to workers, as there are residents in both Santa Barbara and Ventura County who rely on production of oil and gas for their livelihood. They may be employed directly by a producer or may work for a subcontractor or an ancillary industry. By having an opportunity to vote on this measure, the CCA is happy that people in the county have an opportunity to vote yes or no on Measure P. Thank you for placing this measure on the ballot for November 4th. Thank You.

UnidentifiedUnidentified speaker 3Proposed45:16 · ≈ 9:45 AM

Robert Burke to be followed by Maggie Hall

UnidentifiedUnidentified speaker 19Proposed45:27 · ≈ 9:45 AM

Mr. Chair and board members Fracking is the environmental molestation of Mother Nature. Fracking is the environmental molestation of Mother Nature. Fracking is the environmental molestation of Mother Nature. Mr. Chair.

UnidentifiedUnidentified speaker 3Proposed46:32 · ≈ 9:46 AM

Our next speaker is Maggie Hall to be followed by Kayla Penza.

PresenterMaggie HallEnvironmental Defense Center representing Water GuardiansProposedself-stated46:43 · ≈ 9:46 AM

Good morning, Chair Lavagnino and members of the board. I'm Maggie Hall, Staff Attorney with the Environmental Defense Center representing Water Guardians, the proponents of Measure P. Today we would like to express our support of county staff's proposal to draft implementing ordinances and general plan amendments for Measure P Such ordinances would help provide detail regarding the county's implementation of the measure if approved by voters.

Initiatives commonly have implementing regulations and Measure P articulates land use policy, but leaves the procedural details to the board to decide how to implement the measure. Specifically it includes a provision expressly authorizing the board to adopt ordinances guidelines rules and regulations to further the measures purposes. I'd also like to point out that contrary to claims by Lawyer X, Measure P provides an express exemption to its ban on high intensity petroleum operations for owners of existing or proposed operations that have obtained a vested right to continue operations. And that's at measure p section 5c.

Section 5 also provides an exemption for any application that would result in a taking. And the reason that we're here today is to consider the adoption of ordinances to provide details for implementing those measures. We agree with county staff, that implementing regulations would be particularly helpful In this context for establishing a process for considering and applying the exemptions in Section 5 of Measure P. We therefore urge the board to approve staff's recommendation and begin the process for adopting and implementing ordinances, thank you.

UnidentifiedChairProposed · by role48:22 · ≈ 9:48 AM

Thank you, Supervisor Carpalli.

UnidentifiedUnidentified speaker 6Proposed48:24 · ≈ 9:48 AM

Thank you Maggie. We've heard from Lawyer X, Y, are you Z? Are you an attorney as well?

PresenterMaggie HallEnvironmental Defense Center representing Water GuardiansProposedself-stated48:31 · ≈ 9:48 AM

I am an attorney as well. So now we have

UnidentifiedUnidentified speaker 6Proposed48:32 · ≈ 9:48 AM

X,Y, and Z,

PresenterMaggie HallEnvironmental Defense Center representing Water GuardiansProposedself-stated48:33 · ≈ 9:48 AM

great. Certainly, thank you. We'll

UnidentifiedChairProposed · by role48:35 · ≈ 9:48 AM

probably be hearing from A through Z. We're going to go ahead and vote on that. And we'll see if this

UnidentifiedUnidentified speaker 3Proposed48:41 · ≈ 9:48 AM

continues to come forward. All right. Our next speaker is

0:48 – 0:546 turns

UnidentifiedUnidentified speaker 2Proposed48:49 · ≈ 9:48 AM

Kayla Pensa. See anybody moving on that one.

UnidentifiedUnidentified speaker 3Proposed49:08 · ≈ 9:49 AM

They go with Mister Caldwell. To be followed by Greg Siffen.

UnidentifiedUnidentified speaker 20Proposed49:20 · ≈ 9:49 AM

Chairman Lavagnino, members of the board. At the last hearing county council said something very interesting in response to Mike Brown was asking questions why does everybody get to vote? And whether they're in the incorporated, unincorporated area. And the county council's response to that is because the people themselves elect all of you but when they put forth a ballot initiative, they're in essence taking your place and enacting laws Well in that regard, as you know I've lost this fight with you over the years of why doesn't county council represent the people? The answer's always that he represents the board. Well in this case, I believe he does represent the people because this is the People's Ordinance and law requires him to give an impartial analysis of this measure.

Not just impartial to no on P or yes on P but impartial to the Board of Supervisors. Because it is the people that are directing him right now, and it's the people he's to report to. We want to know what he's told you in closed session. Because this should be our information, it should be in the voter pamphlet. We should know whether or not he thinks it's constitutional. We should know whether the issue and the relationship between vested rights and discretionary permits. We should know right or wrong. It's not just the oil companies that may sue, it might be the environmentalists that sue because you're granting exemptions that they don't support.

Why was it that the county Made the claims that measure M could bankrupt the county. And we haven't heard a single statement of the fiscal risk to the county from this measure, which we believe is orders of magnitude above the threat. I've been doing this job for 24 years. This is the largest single threat I've ever seen in county finances. My last question Katie Davis, EDC come indemnify the county. If you're saying this does not affect current operations, maintenance operations and that the lawsuits are going to be frivolous then indemnify the county.

Supervisor Carbajal ask him to come up here say will they put their name on the liability exposure for the county as attorneys and citizens bringing this forward indemnified the county? Thank you.

UnidentifiedUnidentified speaker 3Proposed51:48 · ≈ 9:51 AM

Greg Safane to be followed by Joe Armendariz.

PresenterGreg SafaneCoastal Energy AllianceProposedself-stated51:54 · ≈ 9:51 AM

Good morning, my name is Greg Safane and I'm with the Coastal Energy Alliance. We are a coalition of folk that work in the energy sector. We live here, we raise our kids here. We send them to public school here. We teach them to surf off the coasts of our beaches and we hike with them in our mountains. We volunteer in their classrooms and their outdoor activities.

The energy sector is a significant part of what's left of our manufacturing jobs, jobs that help a family pay for their needs, jobs that help pay a mortgage and still have some leftover to send their kids to school. Jobs in our sector pay well and usually Usually offer full benefits. Many of those in our coalition are union members. In part, above all we consider ourselves environmental stewards.

We are blessed to live in a region as beautiful as ours and we intend to keep it that way by protecting our natural resources and public health. To this end, in March of this year Santa Barbara County posted a 6.7% unemployment rate. In a time when our county has worked so hard to bring our economy back, Measure P stands to destroy thousands of jobs and put thousands of hard working men and women out of work.

Measure P will cost this county millions of much needed tax revenue, funds that go to continue the progress of our public schools. Funds that help the brave men and women that serve in our police and fire department. And lastly keep our vital government services intact. The families of Santa Barbara deserve to know when their livelihood is at risk. Measure P is a risk Santa Barbara families can't afford, thank you. Thank you.

UnidentifiedUnidentified speaker 3Proposed53:57 · ≈ 9:53 AM

Joe Armendariz to be followed by Dennis Allen.

0:54 – 1:0318 turns

PresenterJoe ArmendarizSanta Barbara County Taxpayers AssociationProposedself-stated54:04 · ≈ 9:54 AM

Members of the board I'm Joe Armendariz representing Santa Barbara County Taxpayers Association. If Measure P were as benign as the proponents suggest, then indeed this public hearing wouldn't be taking place this morning. In 20 years of local advocacy I've never seen somebody use the machinery of government in order to anticipate the negative legal political fiscal implications of an initiative. I think it's inappropriate what's happening here this morning. What's more appropriate seems to me Is that the five of you who have a fiduciary responsibility to the taxpayers of this county. To step out, step up and articulate your concerns with respect to this initiative. We know, we know that you are hearing very, very troubling information behind closed doors.

We know that and yet none of that information is coming out today. I would submit something else. Let's say for the sake of conversation that there is no legal implication with respect to Measure P. Indeed, let's just suggest that if Measure P passed, there would be no legal or fiscal exposure to the county. If that were the case, Measure P would still be bad public policy. It would be a bad idea not because it hurts oil companies but because it hurts our families. Not because it hurts mineral owners but because it hurts our economy. It hurts our children. It hurts our ability to generate revenue to fully fund our essential public services. If you were to go out to the streets of Santa Barbara and ask the average Santa Barbara resident Do you like living in Santa Barbara?

The answer would be overwhelmingly yes. Why, because they appreciate the public services that this county and the municipalities therein deliver. Measure P undermines the fiscal integrity of Santa Barbara County thereby making it more difficult for us to deliver essential programs and services that the taxpayers and the families and the communities particularly vulnerable communities of this community are entitled to. Thank you.

UnidentifiedUnidentified speaker 9Proposed56:07 · ≈ 9:56 AM

Mister Armendariz, I have a question for you. You mentioned that you know what is happening behind closed doors so I'm wondering if you can explain what you mean by closed doors? Are you referring to closed session? Yes. You're referring to closed session. So you know what is happening in closed session?

PresenterJoe ArmendarizSanta Barbara County Taxpayers AssociationProposedself-stated56:28 · ≈ 9:56 AM

Yeah, I do because I spent eight years on the City Council and I know what happens in closed session with city attorneys and so I can extrapolate It's important to understand that when you have an initiative as complex as this one and almost parade of legal opinions warning you that this is a problem, then I would submit that this is something that you're being informed on by your county council in a closed session context. And so having served in a similar situation as you, Supervisor Wolff, there's no doubt in my mind that you are receiving very troubling information and indeed, as I suggested, this public hearing today would not be taking place if what you were hearing behind closed doors was all positive And therefore, we have nothing to worry about.

This public hearing is exhibit A as to why the proponents of Measure P are being disingenuous at best. It's not benign, it's malicious and it will undermine the financial integrity of Santa Barbara County.

UnidentifiedUnidentified speaker 9Proposed57:29 · ≈ 9:57 AM

So thank you for that. So it does appear that you're making an assumption and I just want to be clear, maybe Mr. Gazzone or Ms. Miyasato can answer this question about again why we are doing this? And it's again my understanding that we are doing this because it is what is written In the initiative and we are moving forward judiciously ahead of schedule so that we can do this in a proper manner. Am I correct in that assumption?

UnidentifiedUnidentified speaker 7Proposed58:02 · ≈ 9:58 AM

Supervisors, yes that is correct. Okay thank

UnidentifiedChairProposed · by role58:06 · ≈ 9:58 AM

you. So I'll make this very clear for my board members. Have I had any conversations with you about anything that's happened in closed session?

PresenterJoe ArmendarizSanta Barbara County Taxpayers AssociationProposedself-stated58:14 · ≈ 9:58 AM

I would call it a very educated guess. This isn't a spectator sport for me. I've sat in a political context, I've had closed session meetings, I've dealt with initiatives. In the city of Carpinteria we dealt with Measure J so I understand what goes on in this particular situation and there's no doubt in my mind that the legal implications of Measure P are real and they Serious.

And the fact that you're having this public hearing, in my view is exhibit A. You didn't have a public hearing like this on Measure M. You didn't implement county ordinances in order to prevent bankruptcy in the context of Measure M because you were against Measure M

UnidentifiedChairProposed · by role59:02 · ≈ 9:59 AM

We asked him questions he can answer. I'll run the meeting, thank you very much Supervisor Farr. Thank

UnidentifiedUnidentified speaker 5Proposed59:07 · ≈ 9:59 AM

you. Mr Chair as I recall Measure M did not have written into it that we needed to have implementing ordinances so that's the huge difference here and I will say It is troubling to me that this is not the first time that I have felt that closed session information was somehow out into the public. And that's not to question your statement, Mr. Chair, but you know, Mr Armendariz did speak with a lot of force and authority and even though he said he's extrapolating it's of concern to me. Thank you.

UnidentifiedUnidentified speaker 3Proposed59:46 · ≈ 9:59 AM

Dennis Allen and then Sandra Burkhart.

UnidentifiedUnidentified speaker 21Proposed59:50 · ≈ 9:59 AM

Good morning supervisors. I'm a general contractor as you know and one of the larger ones in Santa Barbara County. We work throughout the county, we have an office in North County. And our success has been largely predicated on what we think is the long-term interest in the county. We put a lot of attention on energy efficiency, we put a lot of attention on green building as you all know, and we've paid a lot of attention to renewable energy.

And we think that this is the future for good employment in our industry. We've tried to avoid boom and bust kinds of approaches to construction into the interest in the county, and I think the kind of construction that will be connected with the high intensity extraction that this measure deals with are those kinds of boom-and-bust construction things. And it doesn't leave a long term perspective that I think is going to be in the best interest What I'd like to really call your attention to this morning is a letter that you received. It was dated June 11th from two professors from the law school at Stanford University, Professor Silvas and Professor Cadwell.

Both are environmental and land-loose use attorneys. And I'd like to just read one paragraph from it but it's a five page document and I think it gives good guidelines for helping you to craft the sorts of laws and regulations that you'll be Based on existing judicial precedent, we firmly disagree with the industry's analysis and conclusion. As discussed below, the initiative does not rise to the level of per se taking of all economic value of land affected by the prohibition on high-intensity Petroleum operations and on its face the initiative does not satisfy the criteria for a partial regular regulatory Taking under the case law that's most famous for this moreover any individual property owner claiming that application of the initiative will result in an unconstitutional taking of property is unlikely to succeed if Given the limited property interest potentially affected by the initiative, the speculative nature of any future profit from high-intensity petroleum operations and the initiatives incorporation of a savings clause that allows the county To avoid an uncompensated taking by granting and accept exemption to the initiative's prohibition.

Accordingly, we believe that the initiative is likely to pass constitutional muster if challenged in a court of law. So-

UnidentifiedChairProposed · by role1:02:35 · ≈ 10:02 AM

Sir your time, you're a minute over but thank you very much. Thank you. Supervisor Carball?

UnidentifiedUnidentified speaker 6Proposed1:02:39 · ≈ 10:02 AM

Mr. Allen not to digress from this important hearing but I wanted to publicly congratulate you on That award you received last night from the Santa Barbara Contractors Association. Congratulations. Well, thank you very

UnidentifiedUnidentified speaker 21Proposed1:02:50 · ≈ 10:02 AM

much. It was indeed an honor.

UnidentifiedUnidentified speaker 9Proposed1:02:52 · ≈ 10:02 AM

It's

UnidentifiedUnidentified speaker 21Proposed1:02:52 · ≈ 10:02 AM

a pleasure.

UnidentifiedUnidentified speaker 9Proposed1:02:52 · ≈ 10:02 AM

Yes and I would like to second that. Supervisor Carbajal and I were at that event and it was very impressive and congratulations to you and your entire company.

UnidentifiedUnidentified speaker 21Proposed1:03:02 · ≈ 10:03 AM

We worked well together for many years and thank you for your support. Thank you.

1:03 – 1:089 turns

UnidentifiedUnidentified speaker 3Proposed1:03:08 · ≈ 10:03 AM

Senator Burkhart? And our final speaker will be Alex Pujo.

PresenterSandra BurkhartWestern States Petroleum AssociationProposedself-stated1:03:16 · ≈ 10:03 AM

Good morning, Supervisor Lavendino, members of the board. My name is Sandra Burkhart and I am with the Western States Petroleum Association, WSPA for short. WSPA is a non-profit trade association representing companies that explore for, refine, transport and market petroleum products, natural gas and other energy supplies in California and five other western states.

Measure P is deceptive. The public was misled when they signed the petition to get this initiative on the ballot and they continue to be mislead and deceived by proponents of this measure. Measure P will ban any oil and gas well that uses any substance during the production process. Any substance, so that includes air, steam, reclaimed water, undrinkable water, any substance.

The county's own impact analysis report states that 100% of the active wells in the county use at least one of the techniques that would be banned by the measure. So how then is it possible that the proponents of measure P claim that this will only ban future production? The facts do not lie. The initiative would indeed prohibit issuing new permits needed to continue operating existing oil and gas wells, and this would lead to a forced shutdown of nearly all existing oil and gas operations. The public has been deceived. They continue to be deceived and misled by this measure.

WISPA realizes that the county is stuck now with this flawed ballot initiative, and it is going to the voters in November. But what you can do as a board is educate the public about the risk associated with this measure and what it would mean for the future of the county. The voters have a right to know, and they place their trust in you to properly inform and educate them. So WISPA does support directing staff to work on implementing these ordinances to handle what might be ahead of us. And thank you for the opportunity to testify today.

UnidentifiedUnidentified speaker 3Proposed1:05:02 · ≈ 10:05 AM

Alex Pujo is our final speaker.

CommentAlex PuchoProposedself-stated1:05:08 · ≈ 10:05 AM

Good morning, Supervisors. I'm Alex Pucho, a resident of this beautiful county for over 40 years and I speak to you because I'm really concerned about the dangers of fracking, acidification and injection wells. And I happened to read the paper today, this morning, this very morning, and it talks about EPA's urge to act on fracking risks. The Government Accountability Office is calling on the Environmental Protection Agency to step up enforcement amid water contamination and seismic activity risk associated with fracking, the high-pressure injection of fluids into wells to extract oil and natural gas.

In a report made public Monday, the GAO The investigative arm of Congress found that the EPA's efforts were hindered because the guidance it gives other agencies haven't been updated since 1980s. Much has changed in 1980s. In addition, the agency said that the EPA lacks the resources needed for enforcement such as annual on-site evaluations. This is happening nationwide and I imagine it's also happening countywide If the oil industry is so confident that there is no risk, will they indemnify the county and all its residents against any and all damage that may arise from these extreme oil techniques?

Thank you very much for your time.

UnidentifiedChairProposed · by role1:06:41 · ≈ 10:06 AM

Thank you very much. Is that all of our public speakers? Okay I'll bring it back to the board. Are there any questions for staff? Supervisor Carbajal or comments?

UnidentifiedUnidentified speaker 6Proposed1:06:49 · ≈ 10:06 AM

You know, so many people showed up on both sides of this issue. I think this was just an opportunity to share their views on the measure but not to minimize the importance of the perspective that was shared by the speakers but I'm ready to move the item as staff recommends.

UnidentifiedChairProposed · by role1:07:09 · ≈ 10:07 AM

Well, I have a few questions so if anybody else has questions? No? Do you have a light for me Mr. Chair? I'll go ahead and recognize you Supervisor Adam, even without the light. Thank you very much. Thank

UnidentifiedUnidentified speaker 22Proposed1:07:24 · ≈ 10:07 AM

you. You don't have to see me jumping up and down over here. Thank you. A couple of questions for County Council. Can you explain why we need to develop implementing ordinances before Measure P is passed and becomes effective? And maybe If you could talk a little bit about why this is not speculative.

UnidentifiedUnidentified speaker 13Proposed1:07:56 · ≈ 10:07 AM

Supervisor Adam and Chair Lavanino, so our recommendation along with CEO was to have implementing ordinances in place should Measure P pass that would be operative immediately upon the ordinance becoming effective. Primarily because of some uncertainty within the initiative as to how to implement the three categories of exemptions. And our reasoning there was that it, as discussed in the board agenda letter, that both provides some certainty for industry as to what path to follow and frankly helps to insulate or mitigate the county's exposure to takings litigation.

1:08 – 1:137 turns

UnidentifiedUnidentified speaker 22Proposed1:08:45 · ≈ 10:08 AM

Okay, so what are those categories of takings that you see or risks that you see emerging?

UnidentifiedUnidentified speaker 13Proposed1:08:58 · ≈ 10:08 AM

Maybe I can start off just with some context of how we analyze legal risk in general. I normally would use a three-prong approach, what's the probability of a particular event or risk occurring? Next, if that event occurs, what are the significance of that event occurring? And then as we do with all of our land use issues look at who bears the risk of loss So in this area the county insurance expressly excludes Takings damages or takings risks. So the county is essentially self-insured for that so that's the starting context That we would look at any risk and in this case the concerns that would be mitigated by implementing ordinances, would be the connection between the general prohibition against using anything in support of defined high-intensity petroleum operations and then what existing operations are allowed to continue an operation through one or more of the three stated exemptions at Section 5.

UnidentifiedUnidentified speaker 22Proposed1:10:21 · ≈ 10:10 AM

Okay, so let me propose a hypothetical. If non-producing parcel A is adjacent to producing parcel B. Under California law, the non-producing parcel can only protect their mineral rights by drilling a well. In your opinion, if you could give me that opinion, how would the rights of parcel A be affected under Measure P?

UnidentifiedUnidentified speaker 13Proposed1:11:03 · ≈ 10:11 AM

Chair, let me know Supervisor Adam. So I think your question has several layers to it and let me go back to the exemptions stated in the initiative. There are three broad categories. Bear with me for one second. The first is to avoid violating the Constitution or laws of the United States or California. The second expressly talks about avoiding an unconstitutional taking of property, and the third addresses vested rights.

I think in your question, And which would be addressed through the staff's development of an implementing ordinance. The special category of how does the county plan to address mineral rights since the state of California recognizes separate estates for mineral rights and surface rights? So I think the surface rates are probably the easy part of your question and the mineral rights to be the more challenging part. And that's one of the items that staff can address in developing the implementing ordinance, but I would Disagree a little bit that the only way that a property owner can protect rights would be to actually start drilling and I think that then Places us into the more complicated area of regulatory takings And to what extent investment-backed expectations are being frustrated So, I don't think there's a clear answer or I don' think it's bright line That the only way to protect a property interest is to actually have drilled a well

UnidentifiedUnidentified speaker 22Proposed1:12:44 · ≈ 10:12 AM

Okay, so it's a reasonable expectation here that if Measure P were to pass it would lead to quite a lot of litigation.

UnidentifiedUnidentified speaker 13Proposed1:13:01 · ≈ 10:13 AM

I can't quantify the amount of litigation we've received, at least several express threats of litigation. And it could extrapolate somewhat on the amount of litigation we receive from even single project cases so We are certainly planning for some amount of litigation, but we don't have a history on something like this to predict whether that's 10 cases, 100 cases or how much litigation we would

UnidentifiedUnidentified speaker 22Proposed1:13:32 · ≈ 10:13 AM

expect. Okay so you wouldn't hazard a guess in the event that Measure P passed what changes that you would be seeking to your budget?

1:13 – 1:196 turns

UnidentifiedUnidentified speaker 13Proposed1:13:49 · ≈ 10:13 AM

Chair Leveneau and Supervisor Adam, I would expect that during the first year if Measure P passed we would either be requesting augmentation of the budget or reassigning at least two attorneys to support the transactional analysis of how to apply one or more of the stated exemptions to particular applicants that come in the door And on top of that we would end up as litigation came in Either handling that in-house or more likely if there was a surge of litigation recommending that the board contract for overflow with outside counsel because of the time lag from receiving a case and being able to actually hire, you know a civil service attorney to handle that and So I think that in year one, my estimate is two plus full-time equivalent attorneys to handle the transactional advice to the board and or planning staff on applications.

Plus whatever litigation attorneys we would need to assign to the oil claims that came in. Or I should add in there that although the proponents have supported the implementing ordinance, we might expect litigation from the other side also. Were there an exemption decision made by the board or by staff that would be a discretionary decision subject to litigation?

UnidentifiedUnidentified speaker 22Proposed1:15:30 · ≈ 10:15 AM

Okay, thank you. And finally what kind of sorting mechanism are we looking to as a part of the ordinance? You know, we have oil permit holders, non-permit holders, who would extend their permits and who could not?

UnidentifiedUnidentified speaker 13Proposed1:15:53 · ≈ 10:15 AM

Thank you very much. Thank you. Thank you. You know, an easy cut would be that for the third exemption when the initiative discusses vested rights under state law. We would be looking at who has received a valid permit and according to the definitions of state law performed substantial work and incurred incurred substantial liabilities in reliance on that permit so somebody who is operating presently under a permit and has done so for you know some I think the more complicated sorting mechanism would be as to takings Distinct investment-backed expectations which are harder to quantify and are going to be much more case by case, and probably not subject to a rough cut sorting.

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UnidentifiedUnidentified speaker 22Proposed1:17:15 · ≈ 10:17 AM

So if somebody were to purchase a severed mineral right from a mineral estate They would be proving their investment-backed expectations.

UnidentifiedUnidentified speaker 13Proposed1:17:40 · ≈ 10:17 AM

Chair Lavigno and Supervisor Adam, I think that's why applying that particular exemption is going to be challenging because the county should be looking at what other uses are there of that mineral right You know someone who purchases a mineral right. In present time, you know is certainly informed of measure P being considered by the voters somebody who purchased a mineral right after measure P could become effective would have less expectations of developing using the defined high-intensity petroleum operations But I think it's going to be challenging and case-by-case to To sort through the takings exemption

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UnidentifiedUnidentified speaker 22Proposed1:18:38 · ≈ 10:18 AM

And expensive No comment, okay. Thank you. All right well just to wrap up here I think that this thing is really ill advised. I'm ready to second Supervisor Carbajal's motion to move it forward because I think we have to do it. I'm ready to second.

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1:19 – 1:2618 turns

UnidentifiedUnidentified speaker 6Proposed1:19:30 · ≈ 10:19 AM

Not knowing the volume of litigation, it's really difficult to guesstimate what the fiscal impact would be to your office.

UnidentifiedUnidentified speaker 13Proposed1:19:41 · ≈ 10:19 AM

Chair Levin, you know in Supervisor Carbajal that's primarily my cut on it I think- I just

UnidentifiedUnidentified speaker 6Proposed1:19:48 · ≈ 10:19 AM

want to make sure I heard you correctly, that's it. That's the answer I was looking for, thank you.

UnidentifiedUnidentified speaker 13Proposed1:19:52 · ≈ 10:19 AM

I'll just amplify a little bit to say that as to litigation, yes. As to transactional we're already expending significant FTE to be prepared should Measure P pass.

UnidentifiedChairProposed · by role1:20:04 · ≈ 10:20 AM

All right. I've got a question for staff or I guess Glenn or whoever wants to answer Diane. So how many of our existing wells use one or more of the prohibited We have about 1200 active wells in Santa Barbara

UnidentifiedUnidentified speaker 23Proposed1:20:27 · ≈ 10:20 AM

County in the inland area. And of those, approximately 50% are using a cyclic steaming process. The remainder at some point in their operational life We'll use one or a combination of the other procedures that are indicated in the high-intensity initiative.

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PresenterSteve KirbyHollister Embrace Law FirmProposedself-stated1:20:55 · ≈ 10:20 AM

Okay,

UnidentifiedChairProposed · by role1:20:55 · ≈ 10:20 AM

so everything's covered? Well I mean every well is going to fall under one of those items that's listed in P, in its lifetime.

UnidentifiedUnidentified speaker 23Proposed1:21:04 · ≈ 10:21 AM

At some point in its lifetime, that's correct.

UnidentifiedChairProposed · by role1:21:06 · ≈ 10:21 AM

So Mr. Gazzone, then I guess the argument's been going back and forth. I've heard both sides that it does affect existing operations and others say it doesn't exist. Operations. Does the initiative expressly exempt existing operations?

UnidentifiedUnidentified speaker 13Proposed1:21:30 · ≈ 10:21 AM

Chair Lavanino The short answer is the measure does not use the term existing operations in any of its exemptions. It has a different approach, and that is to have a broad general prohibition and then to state The 3 categories of exemptions. But it's hard in generalities to assume that every existing operation will necessarily fall under one of the 3 stated exemptions there certainly would we expect to see significant overlap of existing operations and one or more But as an example since vested rights determinations require a permit and substantial reliance on that permit That leaves open the question of someone who is in the permit process or has recently acquired a permit but has not substantially relied on On that permit for construction costs Okay

UnidentifiedChairProposed · by role1:22:36 · ≈ 10:22 AM

So does the initiative give us any coverage from liability for the fact that you know that the voters approve this and it wasn't us are we still held liable if a court determines that we've had a taking or we've deprived somebody of their of their

UnidentifiedUnidentified speaker 13Proposed1:22:56 · ≈ 10:22 AM

rights. Chair Lavin, you know that is a clear answer and that is that land use regulations are properly subject to the initiative process but place the liability for that on the county whether the land use regulation was adopted by the Board of Supervisors or by the voters directly.

UnidentifiedChairProposed · by role1:23:15 · ≈ 10:23 AM

Okay then I heard something today that was interesting to me that I hadn't heard before So we have no insurance to protect us if we do have a judgment that's against us. Is that correct?

UnidentifiedUnidentified speaker 7Proposed1:23:29 · ≈ 10:23 AM

Chair Labanino and board members, we have no coverage for pure takings claims. We are self-insured with a self-insured retention of $500,000 in general liability. We have excess insurance but our MOU with our excess insurance does not include takings claims.

UnidentifiedChairProposed · by role1:23:48 · ≈ 10:23 AM

In an initial assessment that you've looked at this, can you give an order of magnitude? I know when we talked about measure M and we had thrown out numbers of what it would look like if it passed. What are we looking at potential liability exposure?

UnidentifiedUnidentified speaker 13Proposed1:24:12 · ≈ 10:24 AM

I can't give you a hard number in part because we, the county will not know how courts are interpreting the scope of coverage and scope of exemption within the initiative until the first round of litigation is complete. The county would reduce its exposure significantly by having this implementing ordinance in place and effective right away should measure P pass.

And then the board will have the opportunity to apply these exemptions, hear from individual parties in applying the exemptions. But the measure of damages one would expect in this area for a temporary taking I'm going to talk a little bit about some of the things that we've been working on over the last couple of years. One of them is running some amount of time would be essentially the fair rental value of the property that was deprived of operation. So were you to have a significant oil field that was put out of operation? That would be a large number, but the board.

We'd have significant control We've actually had discussions with the Reduce a certain flow of oil to a present value. The assessment folks do that with some regularity in applying property tax, but the lost value of an oil field is challenging to value because the oil is still sitting underneath it ready to be drilled at some future date. So there's a correction factor for that. But yes, it would be a big number.

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UnidentifiedChairProposed · by role1:26:09 · ≈ 10:26 AM

Okay well I want to applaud you for I want to ask your opinion for one more thing in my and that is. In your opinion. Is this the most significant exposure

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1:26 – 1:3212 turns

UnidentifiedUnidentified speaker 13Proposed1:26:41 · ≈ 10:26 AM

Chair Lavagnino and Supervisors. Yes, comma, and that is the reason why the CEO and I are here today with staff recommending moving forward with the implementing ordinance as a way to both provide certainty to the community of how to apply these exemptions, and very frankly, to help mitigate or shield the county from takings litigation. Okay, thank you very much. Supervisor Wolf?

UnidentifiedUnidentified speaker 9Proposed1:27:10 · ≈ 10:27 AM

Thank you, Mr. Chair. I appreciate everyone being here and Mr. Ghazani thank you for your comments and I think it's, you've talked a lot about vested rights and how that relates to item C in the initiative. So it seems pretty clear to me from the proponents that the intent of the initiative was not to impact Current production and from what I heard what I heard from you. Is that in the implementing ordinance? there would be provisions that An entity who has already obtained a valid permit or has and or has substantial work on their project Would be exempt from this initiative.

So we as a board, and I think that's what you were saying is how you would draft this implementing ordinance. Is that correct?

UnidentifiedUnidentified speaker 13Proposed1:28:19 · ≈ 10:28 AM

Chair Levinino and Supervisor Wolf. Yes, so we're early in the recommending stage to staff for the draft as well as being informed by the planning commissions but In section 5C when the initiative states an exemption for vested rights obtained pursuant to state law you have stated that the test So we have discussed with staff rather crisply having that state law definition which is sometimes called LAFCO I'm going to turn it over to you. Thank you, Mr. President. I just want to make sure that we have a clear understanding

UnidentifiedUnidentified speaker 9Proposed1:28:57 · ≈ 10:28 AM

of what is the purpose of vesting after a case as an initial sort of or filter for how to apply that exemption. Incorporated into the implementing ordinance with those two provisions of the permit and substantial use.

UnidentifiedUnidentified speaker 13Proposed1:29:19 · ≈ 10:29 AM

Chair Lavignino and Supervisor Wolf, so your question is I'll go back to one of my earlier answers and that is that I think there's an incomplete overlap of existing operations with vested rights operations So I think it's possible, although the board will have some discretion in how to apply this vested rights exemption. But one of the challenging areas would be an entity that has obtained a permit recently and not expended substantial amounts of time or money in reliance on that permit.

Conceivably there are some operations that would be more challenging to apply an exemption to than one that has a permit and has been in operation for 10 years.

UnidentifiedUnidentified speaker 9Proposed1:30:09 · ≈ 10:30 AM

Okay, and I appreciate that so that's what you will be dealing with but again I think the intent was those that are operating currently will not will be exempt from this ordinance

UnidentifiedUnidentified speaker 13Proposed1:30:21 · ≈ 10:30 AM

Chair Labedino and Supervisor Wolf, that is the stated intent in the argument and in the correspondence from the proponents. I would say that our Supreme Court has told us that normally land use regulations will customarily exempt existing uses using, and frequently use the term existing uses, we know what that means And I think that since the initiative itself does not expressly use the term existing use, but uses these surrogates of exemptions. That'll be part of the challenge both in developing the implementing ordinance and then for your board or staff and planning commissions in applying those exemptions

UnidentifiedUnidentified speaker 9Proposed1:31:04 · ≈ 10:31 AM

Okay. Mr. Chair, if I could ask another question. There was a statement that the county could expressly state that maintenance activities for current production was exempt. If we were to do that where would we do that? Would that be part of this implementing ordinance?

UnidentifiedUnidentified speaker 13Proposed1:31:30 · ≈ 10:31 AM

Thank you. Thank you. Thank you very much. Chair Levin, you know and see razor Wolf so it at the end of that at the end of the process of implementing ordinance. The board would be the deciding official for what goes in or what does not go into the implementing ordinance. Our recommendation to CEO and planning staff has been Get the essential framework for exemptions in place subject to amendment or further Further implementing ordinances later, but I think the the maintenance activities You know I'm receiving that as a comment for something we should be looking at For inclusion in the implementing ordinance and and we identified that as a topic before but I Don't know right now where that would fit But it's a one of the concepts we can wrestle with as we go forward to the Planning Commission And then ultimately to the board

UnidentifiedUnidentified speaker 9Proposed1:32:24 · ≈ 10:32 AM

Okay. Thank you, Mr. Gazzone.

UnidentifiedUnidentified speaker 13Proposed1:32:27 · ≈ 10:32 AM

Okay. Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed1:32:29 · ≈ 10:32 AM

You know I think both sides today are trying to get out their perspective on this but did I also understand it correctly Mr. Gazzone that a lot of what risk may or may not exist is going to be predicated assuming there's going to be a few litigation cases the outcome that is rendered by those courts initially

1:32 – 3:1512 turns

UnidentifiedUnidentified speaker 13Proposed1:32:57 · ≈ 10:32 AM

Chair Lavanino and Supervisor Carbajal, yes I think we have in any new legislation there's always uncertainty as to how a court will interpret it in litigation. And I think this particular initiative through its structure of the general prohibition mitigated by the three exemptions but not stating expressly an exemption for existing use you know we really won't be informed until we come out of the litigation process at the Court of Appeal were there to be litigation. Again, I think that the board's consideration of directing and implementing ordinance to be effective immediately upon operation of Measure P should Measure P pass is the step It's really the only step the county controls in this process. As Supervisor Farr indicated, the board had a binary choice of either adopting the initiative itself or sending it to the voters.

It cannot make any text changes and I think the mitigation step available to you now is to direct quick processing of an implementing ordinance to affect these

UnidentifiedUnidentified speaker 6Proposed1:34:08 · ≈ 10:34 AM

exemptions. Great. I'll call for the question Mr. Chair on my motion.

UnidentifiedChairProposed · by role1:34:13 · ≈ 10:34 AM

I got a call for the to move forward with staff recommendations. We'll have a roll call vote.

UnidentifiedUnidentified speaker 3Proposed1:34:19 · ≈ 10:34 AM

Mister Carbajal, Miss Wolfe, Miss Farr, Mr. Adam, Mr. Lavinino passes 5-0.

UnidentifiedChairProposed · by role1:34:27 · ≈ 10:34 AM

Okay we are now before everybody leaves let's just take care of some business real quick. Mr. Gazzone can you give us It's not a report. What are we going

UnidentifiedUnidentified speaker 13Proposed1:34:38 · ≈ 10:34 AM

to discuss in closed session? So the items to be discussed-

UnidentifiedChairProposed · by role1:34:40 · ≈ 10:34 AM

The agenda.

UnidentifiedUnidentified speaker 13Proposed1:34:41 · ≈ 10:34 AM

In closed session today- But on vacation. Chair Lavinino, are two items. First existing litigation Owens versus County of Santa Barbara US District Court case number 214CV04149 and then a separate conference with labor negotiators for all bargaining units and all unrepresented employees, managers, and executives.

UnidentifiedChairProposed · by role1:35:05 · ≈ 10:35 AM

Okay, thank you

UnidentifiedUnidentified speaker 13Proposed1:35:06 · ≈ 10:35 AM

very much.

UnidentifiedChairProposed · by role1:35:12 · ≈ 10:35 AM

Well we have to come back after this right?

UnidentifiedUnidentified speaker 1Proposed1:35:35 · ≈ 10:35 AM

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3:16 – 3:183 turns

UnidentifiedChairProposed · by role3:16:13 · ≈ 12:16 PM

All right, Mr. Gazzone, can we get a report from closed session please?

UnidentifiedUnidentified speaker 13Proposed3:16:17 · ≈ 12:16 PM

Chair Levine, no in closed session were noticed for two items conference concerning existing litigation in the Owens versus County of Santa Barbara case as previously announced and to conference with labor negotiators also as previously announced there are no reportable actions. Okay, we'll close the meeting and we

UnidentifiedChairProposed · by role3:16:33 · ≈ 12:16 PM

will adjourn until August 19th. ♪ . . ♪