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.
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What’s the Risk to Our Health?

POTENTIAL HEALTH OUTCOMES for the Hermosa Beach Oil Drilling Project (Click Image for Larger View)

POTENTIAL HEALTH OUTCOMES for the Hermosa Beach Oil Drilling Project (Click Image for Larger View)

According to the Final Health Impact Assessment, there are many substantial risks to our health, if the proposed Hermosa Beach oil drilling and production project proceeds.

Sadly, the summary statements, conclusions and recommendations written by Instrinsik, downplay these impacts to the point of belittling this community.  Watch Intrinsik downplay fatalities in a city council meeting.

This is not the first time Instrinsik as downplayed public health. See 2012 report on Intrinsik and toxic gas leak in Canada. And in 2014 they continue to downplay odor impacts and toxicity.

While we don’t know their motivations in “spinning” a conclusion that downplays health issues and impacts to Hermosa Beach, they do highlight the following:

  • A well blowout could have fatalities
  • Children, elderly, and individuals with pre-existing conditions are particularly vulnerable
  • Pedestrians and cyclists are at risk to physical injury due to heavy trucks
  • If there is any type of toxic breach that reaches the storm drains, beachgoers could be at risk.

Intrinsik tends to minimize the impact of negative health outcomes to Hermosa Beach by using the word “localized”.  Since Hermosa Beach is so densely populated, “localized” still covers a lot of people. More than 1,000 people could be seriously injured, and there are homes (and the greenbelt) within the “fatalities” zone. More than 2,000 people could be impacted by odors/toxins and there are many illnesses that can result from toxins from oil drilling.

E&B’s Claims Range from Misleading to Downright False

Independent, 3rd party sources contradict E&B’s advertising and website claims. When analyzing the Environmental Impact Report (EIR), the Health Impact Assessment (HIA), and Cost Benefit Analysis (CBA), the devil is in the details. And the details say…”E&B’s pants on are fire”. They are overstating revenue and downplaying risk. Here’s the reality.

E&B is Misleading Us to get Our VOTE. Click on image for larger view.