Before the City’s incorporation, the land on which the EOF is situated was rezoned as Recreation and Planned Residential by Santa Barbara County on September 16, 1990. As a result of the rezoning, the EOF became a legal non-conforming use under California law. Other oil and gas production facilities owned by Venoco, including Platform Holly and Pier 421, are situated offshore in State-regulated waters and are not generally subject to the zoning regulations of either Santa Barbara County or the City.
Since the City was incorporated in 2002, the EOF has continued to operate as a legal nonconforming use. Under California law, a municipality may require termination of a legal nonconforming use by one of two “constitutionally equivalent alternatives: it can eliminate the use immediately by payment of just compensation, or it can require removal of the use without compensation following a reasonable amortization period.” California courts have determined whether the amount of time given to a property owner to terminate a non-conforming use was a reasonable amortization period for recoupment of its investment.
In 2016, the City retained a consultant to determine an appropriate amortization period for the EOF based on historical and forecasted capital investment in the Ellwood Facilities. The study results conclude that Venoco’s original capital investment in the Ellwood Facilities was fully amortized by 2009, including estimated costs for abandonment. Therefore, capital investments and income after 2009 have no impact on the amortization period. Venoco has since filed for bankruptcy and the EOF is under the State’s operation with a possible future sale pending. The City will continue to work with the State on the ultimate disposition and decommissioning of the EOF.
Ellwood Onshore Facility Amortization Study (March 2016) (commissioned by the City of Goleta)
Ellwood Onshore Facility Amortization Study (September 2016) (commissioned by the City of Goleta)
Ellwood Onshore Facility Amortization Study 2016 (commissioned by Venoco)
City Council Venoco Update Presentation (September 2016)