Unocal Considers Abandoning Museum in Santa Paula

Citing the need to trim $200 million in company costs, Unocal Corp. is considering abandoning its landmark Unocal Oil Museum in Santa Paula, company and city officials said Friday.

But city officials say they are confident that the popular museum will remain open, as discussions continue about the possible lease or sale of the museum to the city.

Built in 1890 for $38,000, the sandstone building served as the first headquarters of the Union Oil Co. and is registered as a national and Ventura County historical landmark.

Since 1990, when Unocal spent $2.5 million to refurbish the building as part of the company’s centennial anniversary, the renovated museum has become an important attraction for visitors to downtown Santa Paula.

More than 43,000 visitors have toured the renovated museum’s exhibits, which trace the history of Unocal in the Santa Paula area, and viewed displays of oil field equipment.

“The museum has become an integral part of our downtown area,” said City Administrator Arnold Dowdy. “Losing the museum would be detrimental to our city.” An agreement between the city and Unocal is expected to be completed within several weeks and then discussed at a City Council meeting, he said.

Museum docent George Pagan, who is retired from Unocal’s engineering group, said the museum is a reminder of the city’s history.

“Most residents are quite proud that Unocal started here,” Pagan said. “A lot of town people are descendants of the early Union Oil employees.”

Unocal spokesman Barry Lane said his firm’s current restructuring and the need to cut $200 million in expenses by the end of the year have forced the international oil giant to look at even the smallest expenditure. “No item is too small for consideration,” Lane said.

The company also plans to sell $700 million worth of assets, he added.

Lane would not specify how much Unocal spends each year to operate the museum, but he confirmed that the annual budget exceeds $100,000.

Saying that Unocal is aware that the refurbished museum has been an important draw for tourists to downtown Santa Paula, Lane added that closing the museum “would be the very last option.”

Unocal has been forced to trim expenses after incurring $4.7 billion in debt to defeat a hostile takeover bid from T. Boone Pickens’ Mesa Petroleum, Lane said. The company last year recorded $73 million in profits on $10.9 billion in revenue and plans to cut $200 million in expenses, partly by eliminating 1,100 jobs by September, he said.

Santa Paula Mayor Alfonso C. Urias on Friday said the museum is vital to city efforts to revitalize the downtown.

“It’s a good museum that reflects the history and culture of Santa Paula,” Urias said.

Built with Sespe sandstone, river rock and locally produced brick, the building was the headquarters of Union Oil Co. until 1901, when the company moved to Los Angeles. The company continued to use the site as its district office until the building was refurbished two years ago.

Unocal opened the small California Oil Museum on the ground floor of the two-story building in 1950, but the museum was greatly expanded during the centennial renovation.

On Friday, a small number of local visitors and tourists who trooped through the museum praised its quality.

“I think they’ve done a beautiful job,” said Sharon Wells of Spring Grove, Ill., who was visiting relatives in Ventura County with her family.

Another visitor had a more direct interest in the museum’s fate. Terri Rericha, who owns a store two doors down from the museum, was showing her son some of the audiovisual displays.

A native of Santa Paula, Rericha said the town has always been known for its citrus and its oil museum. She shuddered at the thought that the museum would ever close.

“If this museum closed, you could pretty much roll up the sidewalks and say it’s all over for Main Street businesses,” Rericha said.

FYI

The Unocal Oil Museum at 1003 E. Main St. in Santa Paula is open from 10 a.m. to 4 p.m. Wednesday through Sunday. Tours of the former executive offices are conducted only on Sundays. Admission is free.