SIMI VALLEY : Crude-Oil Pipeline Franchise Approved

Despite safety concerns raised by one resident, the Simi Valley City Council on Monday took a first step toward awarding a 25-year franchise to a Unocal subsidiary to operate two existing crude-oil pipelines beneath city streets.

After the public hearing ended, Councilwoman Judy Mikels introduced a proposed ordinance granting the pipeline franchise. A final vote is scheduled for June 1.

The franchise would take the place of an agreement granted by Ventura County, before Simi Valley’s incorporation, for pipelines built in the mid-1950s beneath Avenida Simi and Tapo Canyon Road.

Resident Teresa Jordan said city staff members had not adequately explored potential safety hazards such as possible damage from heavy truck traffic on the street and a possible explosion.

But council members said they were satisfied that the pipeline posed no danger. “They’ve been there a long time and there hasn’t been any trouble,” Councilman Bill Davis said.

Under the terms of a recent lawsuit settlement involving the state, the city of Long Beach and Unocal, the oil company agreed to transfer ownership of the crude oil pipelines to a subsidiary called Unocal California Pipeline Co. or UNOCAP. Because of the ownership change, UNOCAP requested a new franchise from Simi Valley for the lines located in the city.

City officials said the pipelines carry only crude oil and cannot be converted to carry gasoline or other refined products. They also said only one leak has occurred in the lines since the 1950s, and that was caused by a bullet.

Under the proposed ordinance, UNOCAP must coordinate with the city whenever its pipeline maintenance work requires the removal of pavement.

The franchise fees that must be paid to the city are governed by the California Public Utilities Code. Simi Valley officials estimated that the city will receive $2,215.92 from the pipeline franchise fees during the 1991-92 fiscal year.