Local Residents Begin to Rally against SB Offshore Oil Project
BY ANNE SOBLE
The proposal has major implications for Malibu, as it could open the doors to oil leasing and exploration in state and federal waters now that federal moratorium has been lifted and the Minerals Management Service, an agency within the U.S. Department of Interior responsible for offshore oil and gas leasing, announced the sites of possible new lease sales this month, including some in Southern California.
The deal set to go before the State Lands Commission on Thursday, Jan. 29, the day after the 40th anniversary of the catastrophic Santa Barbara oil spill, cited as one of the catalysts for the development of the modern environmental movement, is said to have the potential to set back that movement, despite some enviro groups backing the proposal in ostensible disregard of its broader implications.
The package was brokered by the Environmental Defense Center for two Santa Barbara civic groups—Get Oil Out! and the Citizens Planning Association—with Texas-based Plains Exploration and Production, or PXP, to allow 17 new wells at Tranquillon Ridge off Santa Barbara, the first from a federal platform into state reserves since the moratorium. It was approved by Santa Barbara County in October, 2008.
PXP maintains that the Tranquillon Ridge Oil and Gas Field Project falls under an exception in the California Sanctuary Act, which otherwise prohibits new oil and gas leasing in state tidelands, because resources from Tranquillon are reportedly being pilfered from a well in federal waters, and the state may be losing royalties because of this.
CSLC staff, which has recommended against the project, says drainage is minimal and the state already receives 50 percent of royalties from the well in question.
Monies from the new drilling would go into the cash-strapped state General Fund. But what also gives the project momentum is that, in exchange for the right to develop the Tranquillon lease, the company would agree to stop its offshore oil drilling operations by 2022 and make major land donations and financial contributions for air quality improvements in the Santa Barbara area.
Ironically, the environmental law firm that brokered the deal for the local groups and is shepherding it though the approval process is the same one hired to help successfully kill the BHP Billiton Cabrillo Port LNG project northwest of Malibu in 2007.
That firm, the Environmental Defense Center, also Santa Barbara based, is lobbying for the PXP package, the specific terms of which, including any payment to EDC and others, critics say have not been fully made public.
Linda Krop, EDC chief counsel, describes the project as “a once in a lifetime opportunity to put an end to [some] oil drilling off the coast of California,”
Krop says the PXP deal could shut down four platforms; if allowed to continue, these platforms could support renewed federal oil drilling; nearly 4000 acres of coastal land could be protected; a gas plant could be decommissioned; and the state might not lose an estimated $5 billion in royalty revenue—$100 million of which is described as possibly becoming available this budget year.
EDC has used its considerable clout in the environmental community to bring 25 enviro organizations, most in the immediate area, on board the project.
Issues of total disclosure and the fact that this is an agreement between private parties have prompted the State Attorney General’s Office to question the enforceability of any provisions in the deal to cease oil production by a set date, or even the enumerated land and grant benefits that might accrue to the greater Santa Barbara area.
In addition, the CSLC staff in its recommendation of denial, cites similar concerns about the unknown terms of the package and the overall unenforceability of a private agreement.
Commission observers report the three-member CSLC may currently be split 2-1 against the deal, as it was on Cabrillo Port, which would kill the proposal. But there is strong political pressure on its members because of the package’s local support base and the state budget crisis. Because the PXP deal is only now beginning to attract major attention, public opposition is in the early stage.
When The News contacted members of the Malibu City Council about the issue, it was brought up at Monday night’s meeting, and the group invoked its 1996 resolution supporting all efforts to prevent oil and gas drilling off the California coast to send a letter to State Lands opposing the PXP proposal. One or more council members might attend the hearing.
In the letter signed by outgoing Mayor Pamela Conley Ulich, she said, “I encourage [the members of the CSLC] to prevent this intrusion on our valuable resources and threat to the safety of our precious marine life by accepting the staff recommendations to deny the applications.”
Conley Ulich told The News, “I am utterly shocked that the Environmental Defense Council and Surfrider Foundation would support new oil drilling just off the coast of California. It is like giving a fix to an addict, then saying I only gave them the fix because the addict promised to get off drugs in the future.”
When asked about the PXP proposal, Ozzie Silna, who with the Malibu Coastal Lands Conservancy, helped to finance EDC’s efforts that helped to defeat the Cabrillo Port LNG project, told The News, “I am very disappointed that this project has gone this far.”
Silna said MCLC opposes the offshore oil drilling package, and he anticipates that the group’s president, Steve Uhring, will testify in opposition to it at the Thursday State Lands hearing.
Although Governor Schwarzenegger has said he opposes oil drilling off California, some Sacramento insiders say the state’s cash crunch may have changed his stance on the issue. The State Lands member expected to vote for the deal is the governor’s director of finance, Michael Genest.
The other two members of the commission, both of whom vigorously opposed Cabrillo Port, are being lobbied aggressively for and against the project.
Malibu Assemblymember Julia Brownley and other state legislators voiced their concerns about the PXP package in a letter to CSLC member Lt. Gov. John Garamendi on Jan. 12. The dozen members of the Assembly Coastal Caucus stressed the uncertainty of the project they say was fostered during what they describe as the “drill here, drill now, pay less” hysteria when gas prices skyrocketed.
The Coastal Caucus letter states, “[The proposal] breaks California’s longstanding statewide ban on new offshore oil leasing in state waters and exposes our coastal resources to irreparable damage from spills. Our coastal resources that provide economic benefit in terms of tourism, recreation, scenic beauty, coastal land real estate value, wildlife, etc., are priceless and should not be sold and certainly not by a group of [private organizations].”
Krop, in a letter this week responding to ACC concerns, said, “EDC and the environmental parties have made all of the substantive components of the agreement public... In addition, the [State Lands Commission] can impose its own conditions on the leases, thereby providing further assurances of public review and enforceability.”
On Jan. 22, Malibu’s State Senator Fran Pavley sent a letter to the third CSLC member, Controller John Chiang, who now chairs the panel, stating, “We caution that premature approval of this lease without a robust discussion and statewide vetting of the long-term consequences it holds for all of California and the nation would be ill advised.”
If the State Lands Commission approves the PXP project, it is expected to be on the agenda of the California Coastal Commission’s meeting in February. The Coastal Commission does not have the broad policy review options of State Lands. The CCC’s authority on the matter is limited to determining whether the project is mitigated to the greatest extent feasible.
Coastal Commissioner and Malibu resident Sara Wan told The News this week that she is concerned the proposal “changes a 40-year opposition to offshore drilling and sets a terrible precedent, opening up the possibility of drilling everywhere along the coast.”
Wan said, "We need to send a clear message that the coast of California is not for sale. There is no amount of money that can make up for the damage to coastal resources and the coastal economy when there is an oil spill." She said it is particularly important that this also be the message that state agencies send to Congress and the Obama Administration as federal oil drilling policy is undergoing review.
Among broader concerns that some critics say are being disregarded by the groups that have jumped on the PXP bandwagon is the project’s continuation of the nation's fossil fuel dependence and that it undermines the overall goals of the environmental movement in general.
The CSLC meeting is scheduled for noon on Thursday, Jan. 29, at the Hotel Mar Monte, El Cabrillo Room, 1111 East Cabrillo Boulevard in Santa Barbara.




