Project Overview

Excelaron, LLC has proposed a small oil drilling exploration and production project in the Huasna Valley. The project is proposed on private property within the boundaries of an existing oilfield.  The proposed project will have a very minimal footprint, and will utilize existing roads and well pads. Excelaron is currently working with the County to have an independent third party consultant complete a full Environmental Impact Report (EIR).

Project Overview
     ⇒ The Excelaron oil exploration project proposes to explore, test and possibly
          produce oil from an existing oilfield on private property in Huasna Valley. 
          The oilfield is located on the Mankins’ family ranch, and has been the site
          of past drilling activities over decades by different companies.  Due to
          advances in technology, the site may now prove to be commercially and
          economically viable.

Small Footprint
     ⇒
The actual project site will have less than a two acre footprint on a 260 acre           parcel of land.  Due to placement of the site in a small and hidden valley,
          the drilling equipment and activities will not be visible to the public.
     ⇒ The proposed project will involve four wells in the testing and exploration
          phase. Should drilling be deemed commercially viable, the project will
          expand over the next several years to a maximum of 12 producing wells.
     ⇒ Project related vehicles will travel across private roads on the Mankins’
          and Porter’s Ranches, onto a small section of Huasna Townsite,
          to Alamo Creek Road, to Highway 166, and ultimately to Highway
          101.  This new designated route is a significant change from earlier
          plans, which proposed truck travel down Huasna Road and through
          Arroyo Grande.  The new project description allows for a maximum
          of six trucks per day. 

Project Phases
     ⇒
Phase I: Exploration and Testing Phase. Four wells will be drilled
          and tested over a six-month period. If the four wells fail to yield
          commercial quantities of oil, the wells will be properly plugged
          and abandoned, the site remediated, and the project will be concluded.
          This phase includes minor improvements to existing access roads and well
          pads to accommodate drilling and testing equipment.
     ⇒ Phase II: Production Phase. If the oil reserves are found to be
          commercially viable during the testing phase, Excelaron will move
          forward with production. This will involve the installation of necessary
          oil recovery facilities on site. This equipment will be limited to the
          two acre footprint, and a maximum of six tanker trucks per day will
          transport product from the site daily to a nearby refinery.
     ⇒ Phase III: Site Cleanup and Existing Well Abandonment Phase.
          The Huasna Valley has been the site of past oil exploration activities as far
          back as the late 1800’s. Most recently, exploration activities were
          undertaken in the mid 1980’s. Multiple exploration activities under
          less stringent environmental regulations have resulted in the abandonment
          of several pieces of old equipment and several idle wells. Concurrent
          with the Production Phase, Excelaron has committed to remove any
          equipment including pipelines and tanks that remain on the site from these
          previous drilling activities.
     ⇒ Phase IV:  Field Development Phase. The Huasna Valley Association
          requested that the EIR include a review of Excelaron’s estimated future
          expansion plans assuming that oil recovery is found to be commercially
          viable. Therefore, Excelaron has projected site development plans to
          include an additional eight production wells that would be drilled over the
          subsequent four year period following exploration. The foreseeable project
          growth is limited to a maximum of 12 production wells.

Site Access, Road Improvements and Oil Transport
     ⇒ Existing private roads on Mankins’ Ranch will provide access to the well
          pads and shipping site from Huasna Townsite Road. Roads through
          Porter’s Ranch will allow access to Highway 166, and ultimately on
          to Highway 101. These existing roads will require minor grading,
          the installation of gravel, and the application of soil binders and dust
          suppressants to ensure compliance with all regulatory agency
          requirements.  A new deck surface and stringers will be constructed
          on the County’s Huasna Creek Bridge to accommodate a load capacity
          of 25 tons.  Should the project enter the Production Phase, major
          improvements to Highway 166 at Alamo Creek Road will also
          be constructed. These road and bridge improvement activities will
          be paid for by Excelaron.