Uncover The Facts

E&B’s Ethics and Track Record

E&B’s ads are pure fiction.   Click here for 1-page FACT sheet (updated 2-12-15).

Ethics

  1. NEW 2-10-15: E&B’s “Trust the Scientists” ad ranges from highly misleading to false. Click here for the real facts.
  2. UPDATED 2-3-5: E&B’s revenue numbers are refuted by the Cost Benefit Analysis. Click here for the FACTS on the revenue. Click here for Easy Reader article on how Hermosa Beach’s city manager is contesting E & B’s revenue number.
  3. NEW 2-3-5: E&B’s ad on petroleum products is not true. Click here for the facts.
  4. NEW 1-5-15: Learn about E&B’s PR firm and their tactics on the Whittier Oil Drilling Project.
  5. NEW 12-18-14: City of Hermosa Beach now Fact Checking Political Ads
  6. NEW 12-28-14: E&B supporter LOSES lawsuit against the city and “No on O” ballot authors to force argument wording changes. Judge rules that “No on O” ballot argument statements are true and not misleading reports the Easy Reader. Read the Court decision on Petition for Writ of Mandate 12-19-14. E&B releases false statement on what the judge said. Compare for yourself.
  7. Misleading ads about funding education, police, fire, sewer improvements, etc. The majority of the royalties are projected to come from drilling under the ocean (tidelands). Royalties from the tidelands trust are restricted and can not be used for any of these services.
  8. E&B’s paid canvasser’s are lying about property taxes being raised by $1,500. Click here for the truth.
  9. E&B’s paid canvasser’s are lying about a roof or “dome” removing all odors. There is no such technology.
  10. E&B supporters have posted false information on E&B’s Huntington Beach oil drilling facility. Click here to see what the E&B Huntington Beach operation really looks like.
  11. E&B touts Nov. 2014 election for over 1 year, then surprises the city with a delay, threatens litigation unless their off-cycle election request is met.
  12. Misleading ads on active wells in LA. Manhattan Beach Mayor furious. E&B refuses to retract.
  13. At city council meetings on 4 separate occasions, E&B “surprises” the city with last minute emails/requests causing delay, disruption and ill will for the city and residents in attendance.
  14. E&B attacks resident in press release. See resident react.
  15. Hermosa Beach city manger requests that E&B retract 8/14/14 ad that was not factual/misleading. E&B refuses. See emails.

OperationsLand drilling rig

  1. 10-7-2014: E&B fined for illegally dumping produced water and crude oil in two unlined pits in the Poso Creek Oil Field.” See article.  See actual settlement agreement signed by E&B’s Mike Finch.
  2. 9-16-2014:  California farming company sues E&B (among others) for not complying with wastewater injection regulations and causing crop failure. Hermosa Beach project calls for 4 wastewater injection wells. See article.
  3. E&B fails to secure a drilling permit for a sampling operation in the Hermosa Beach Maintenance Yard in May 2013.
  4. 4-12-13: Conquistador Petroleum sues E&B and Francesco Galesi (see Worldcom connection below) for a failed drilling agreement and failing to pay.
  5. E&B Natural Resources has spilled almost 16,000 gallons of toxic fluid over six years in California!
  6. No long term track record in the Los Angeles basin. E&B acquired their Los Angeles basin entities as established operations in 2010 or later.

The Company

  1. E&B is privately held. Financials are not publicly available.
  2. Steve Layton, President of E&B, was CEO of Equinox Oil in 1988 when an oil blowout covering 2 square miles occurred. Equinox Oil later declared bankruptcy.
  3. E&B is owned by The Galesi Group. The Galesi Group’s CEO/Founder is Francesco Galesi, a former director at Worldcom, who was part of a large settlement to investors as a result of the 2002 Worldcom accounting scandal and bankruptcy. See article.

So Much Information…Who Do You Trust?

For those people who are thinking…”maybe this oil project isn’t so bad”.  Ask yourself. “Who has the most to gain from this project?” Is that door-to-door canvasser paid by the oil company or a volunteer? Is that ad paid for by the oil company, who has deep pockets, or by concerned citizens making donations? Is that oil supporter a large mineral rights owner or someone who was paid by the oil company in some way (e.g.  maybe their organization receives donations?). There has not been one open meeting by the oil company. E&B is courting mineral rights owners in closed, invite-only meetings, playing down safety concerns, inflating revenues to schools and the city, donating to local organizations and events, and placing ads that are misleading or even have false information.

E&B Thanks Supporters at Country Club (Click image for full view)

E&B Thanks Supporters with a Country Club Dinner Party (Click image for full view)

All the money E&B is spending on their campaign to win votes is just a business expense. The people and businesses supporting the ban on oil drilling are just concerned citizens volunteering time. None of these people have anything to gain monetarily from “keeping the ban” on oil.  They just want what is best for their families, friends and neighbors.

Not all journalism is unbiased. This article in the Daily Breeze is filled with misinformation, such as playing down community concerns. When you see paid advertisements supporting oil right next to an analysis of the Hermosa oil project, read with caution.

Click image for larger view)

Click image for larger view)