State Lands Commission Denies PXP Offshore Oil Drilling Proposal

• Panel Votes 2–1 against EDC-Brokered Package •

BY ANNE SOBLE

Despite a hearing room packed with Santa Barbara supporters, most of whom focused on local budgetary need instead of environmental impact, the California States Land Commission voted 2–1 Thursday to oppose a proposal for two offshore subsurface oil leases that would have allowed Plains Exploration and Production, known as PXP, to slant drill 17 new oil wells in state tidelands from a federal platform currently in operation.

The proposal, the Tranquillon Ridge Oil and Gas Project, was brokered by the Environmental Defense Center for two private Santa Barbara civic groups. EDC chief counsel Linda Krop described the package that would have provided land donations and funding grants to the immediate area as "an air-tight agreement" that would provide important benefits and "end oil drilling," even as she said its drafting was "a long, strange trip."

Others in the room were not convinced. Much of the hearing held in Santa Barbara took on the air of a semantics lesson, with nuanced interpretations of who could or could not enforce the agreement, when would or would not money flow from the project and how much, and who could or could not remove oil platforms, if production was terminated by PXP.

Lt. Gov. John Garamendi, resuming the post of chair of the three-member panel, and state Controller John Chiang voted against the leases. Thomas Sheehy, sitting in for state Director of Finance Michael Genest who usually sends a surrogate to SLC meetings, voted in favor of the motion he made to approve the proposal.

Speaker after speaker from Santa Barbara repeated a variant of the refrain, "We need the money" that would have come from the project—upfront fees, ad valorem taxes and royalties. But Garamendi, paraphrasing Genesis 25:29-34 before he voted,  said, "I will not sell the California birthright--the coast-- for an immediate meal."

Sheehy's desire to push the project was evident throughout the testimony, as he repeatedly tried to undercut the SLC staff recommendation against the project, calling it "hypothetical speculation" and "far-fetched."

The staff's primary concern was that an oil drilling termination date of 2022—the lynchpin of the EDC package—was not enforceable, which testimony by Ellen Aronson of the Minerals Management Service of the Department of Interior indirectly confirmed, but the proposal's supporters appeared to disregard.

A sizable contingent of Malibu opponents to the PXP deal testified at the hearing, expressing concerns voiced by local environmentalists, the Malibu City Council and the Malibu Coastal Lands Conservancy. Among the Malibuites who spoke were Sara Wan, Steve Uhring, Judy Fogel, Remy O'Neill and others who were part of the late-hour opposition turnout.

Wan told the commissioners, "This deal will not end drilling." Concern about increased danger of oil spills and the precedent-setting nature of a decision to allow the first new drilling of the California coast in 40 years open entire coast was reiterated by the local critics.

Garamendi said his no vote was based on the determination that the proposal was "not in the best interests of the state," the commission's charge when assessing public policy. He said, "This issue is important to the entire state...and the nation [because] it would provide a precedent for 'drill, baby, drill' proponents to urge Congress and the White House to resume offshore oil drilling."

Nagging concerns about full disclosure were also a factor. Chiang raised the issue that the confidentiality clause in the agreement precluded all of it from being made public until the day of the hearing." On anything to do with public lands," Chiang said, "The public should be able to review all documents."

Sheehy had appeared to be spinning so intently for the project throughout the meeting that Garamendi chided him with, " I notice the governor [now] supports offshore oil drilling, " which Sheehy ignored.

Midway through the meeting, Garamendi had offered Texas-based PXP the option of continuing the matter "so some of the [contested] issues could be explored further," but CEO James Flores responded, "We could continue to learn about this project for the rest of our lives. We want action taken today."

Garamendi replied, "OK, we vote up or down," and two hours later, on the day after the 40th anniversary of the disastrous Santa Barbara oil spill that spurred the state policy against drilling for four decades, the majority voted down.

Note: Full details and analysis of the CSLC decision will follow in the print and online editions of The News..

Private Oil Deal Could Set Precedent for Renewed Offshore Drilling along the California Coast

BY ANNE SOBLE

As city, state and federal lawmakers have begun asking questions and challenging assumptions, Plains Exploration and Production’s Tranquillon Ridge oil drilling proposal for off the coast of Santa Barbara could be taking on water.

A package brokered for the firm known as PXP by the Environmental Defense Center with two private Santa Barbara civic groups largely remained under the radar as it went through the county approval process, but a recent wave of letters from officials in Malibu and other coastal communities have put it squarely in the spotlight.

The Malibu City Council and the Malibu Coastal Lands Conservancy, the group that helped fund the successful effort to kill a liquefied natural gas terminal off the local coast in 2007, are opposing the project.

Details about the PXP package are available in an article in this week’s print and online editions of the Malibu Surfside News. The News ran a report on the PXP project on its Blog last weekend, when word of the matter going before the California State Lands Commission on Thursday, Jan. 29, started raising antennae among area environmentalists.

A grassroots campaign is currently underway to try to marshal opposition to the plan that would allow slant drilling of 17 new wells in state tidelands from Platform Irene, a facility with an oil spill record, the first such drilling allowed in 40 years. In return, PXP would shut down its operations by 2022, and make land donations and contribute funding for air and water quality control programs in the Santa Barbara area.

Local enviros are concerned approval by the three-member CSLC would set a precedent and open the door to more new offshore drilling along the entire California coast, including Malibu, as well as undermine efforts to get the Obama administration to reinstate the federal drilling moratorium.

Among their concerns, critics point to the ever-present danger of oil spills. Last December, a nearly 2000-gallon spill occurred from the same platform that ruptured 40 years ago on Jan. 28,  creating the disastrous multi-million-gallon Santa Barbara oil spill of 1969. Of the over three-dozen offshore spills greater than 40,000 gallons since then, one-third have occurred within the last 10 years, despite the industry’s claims of improved safeguards.

Critics say environmental concern and sound public energy policy confirm that drilling proposals are shortsighted, irresponsible and based on misconceptions about the world oil market; the risk to coastal ecosystems and wildlife, quality of life, as well as tourism and fishing industries, is too great; and increased offshore drilling is not the answer to energy problems.

The State Lands Commission staff has recommended rejection, saying there is no guarantee a key element of the PXP package, which is essentially a contractual agreement between private parties, the eventual shut-down of its drilling operations, can be enforced. The State AG’s office has raised concerns about confidentiality requirements of the agreement that may preclude full disclosure of all of its terms.

If approved by the CSLC, the proposal would then go before the California Coastal Commission, probably at its February meeting. Although the Coastal Commission has the power to regulate coastal development, it has limited authority on offshore projects, and can only vote on the extent of a project’s mitigation measures, not veto it as bad public policy.

Opponents are trying to organize a late-hour email campaign against the project, urging residents to address their concerns to: Gail Newton, Division Chief Environmental Planning, California State Lands Commission, at newtong@slc.ca.gov

Thursday’s State Lands meeting is scheduled for noon at the Hotel Mar Monte in the El Cabrillo Room on the second floor. 1111 East Cabrillo Blvd.
Santa Barbara.

MALIBU ENVIRO WATCH: 

Deal Goes Before State Agencies that Could Lead to Resumption of Offshore Oil Drilling in California

• No Longer under the Radar—Questions Are Being Raised about PXP Proposal •

BY ANNE SOBLE

No sooner has the death knell sounded for a major liquefied natural gas project off the coast of Southern California, than the specter is being raised of the resumption of offshore oil drilling if a privately brokered deal in the Santa Barbara area receives the approval of the California State Lands Commission and the California Coastal Commission within the next three weeks.
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 the federal moratorium has been lifted and the Minerals Management Service, an agency within the U.S. Department of the 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 State Lands Commission on Thursday, Jan. 29, coincidentally the 40th anniversary of the catastrophic Santa Barbara oil spill, cited as one of the catalysts for the development of the contemporary environmental movement, could set back that movement, despite some enviro groups backing the proposal in seeming disregard of its broader implications.
The package was brokered for two Santa Barbara 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, the first from a federal platform into state reserves since the moratorium.

PXP maintains that the 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 is losing money in royalties.
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, Environmental Defense Center, also Santa Barbara based, is now lobbying for the PXP package, the specific terms of which, including any payment to EDC and others, largely remain closeted.
Equally important, EDC has used its considerable clout in the environmental community to bring other enviro organizations on board.
The Malibu Surfside News is making requests for information about the terms of the deal brokered by EDC, but previous media requests for more information have been denied and honoring such requests is reportedly precluded by the terms of the confidentiality agreement with PXP.
It is this secrecy that 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 so-called 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 be spit 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 support base and the state budget crisis. Because the PXP deal is only now beginning to attract attention, public opposition is in its early stages.
Although Governor Schwarzenegger has talked the talk of no drilling off California, some Sacramento insiders say the state’s cash crunch may change his walk on the issue. The State Lands member expected to vote for the deal so far is the governor's director of finance, Michael Genest.
The other two members of the commission, both of whom opposed Cabrillo Port, are being lobbied aggressively on behalf of the project.
However, Malibu Assemblymember Julia Brownley and other state legislators have 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 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].”
Also, 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 drilling 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 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, 1111 East Cabrillo Boulevard in Santa Barbara.

MSN News Alert—January 21, 2009

Snarls Due to Midday PCH Lane Closure Make Locals Snarly

The Monday-through-Friday—from 9 a.m. to 2 p.m.—closure of one westbound lane of Pacific Coast Highway from Jan. 21 until Feb. 27 in the Cross Creek area—approximately from Serra Road to west of the Malibu Lumberyard site—did not start out auspiciously.

On first day of the lane closure to accommodate work on the city-owned property that will house an upscale mini-mall complex, commuters reported delays of from 15 minutes to 30 minutes, with some drivers saying they had to sit on the Malibu Creek bridge for much of that time.

If there are any significant rainstorms while the work is in progress, traffic observers say more serious snafus could result.

                                                               —Anne Soble

NEWS ALERT-- 14 January 2009

Red Flag Alert Continues for Malibu Mountains—Wildfire Danger Remains Extremely High

What is now one of the longest duration Santa Ana wind events on record is expected to continue for its second week and last through Sunday, if not into next week, according to the National Weather Service.

Los Angeles County fire officials express ongoing concern about the local wildfire danger. They have deployed extra personnel and equipment throughout the Malibu area and surrounding communities as a precaution because of strong winds, high temperatures and low humidity.

The watchword for all Malibuites at this time is alertness to any sign of fire or suspicious activity of a fire related nature. Officials say it is better to err on the side of caution and report a concern at 9-1-1 immediately.

                                                                                                                        —Anne Soble

UPDATE ON PELICAN WATCH

• Rehabilitation Effort Needs Financial Support •

A larger than normal die-off of adult brown pelicans is being recorded in Southern California. Avian experts and rehabbers also note increased instances of ill and disoriented pelicans, including birds landing inland, being found in neighborhoods, colliding with vehicles on roads, and wandering on airport runways.
They say this disorientation indicates that something is seriously wrong with these birds, possibly of a neurological nature.
The reports of increased numbers of pelicans becoming disoriented and falling ill come from as far north as Humboldt and as far south as Baja. A few local birds also have now been reported, according to the California Wildlife Center.
Sick birds from along the Southland coast that are able to be transported are being taken to the International Bird Rescue Research Center in San Pedro, which specializes in their care.
“As wildlife rehabilitators, we’re often the first group of people to see a trend developing. We’re the first to notice unusual behavior or illnesses in a population because we’re on the front lines, receiving calls from the public. So, with these pelicans, we know something is going on, we’re just not sure what it is,” said Jay Holcomb, the executive director of the IBRRC.
“This type of disorientation in adult pelicans is something we’d see during a domoic acid outbreak, but we have yet to see them exhibiting the other common symptoms,” Holcomb added.
Late Thursday afternoon, IBRRC received results from initial tests that indicate some levels of domoic acid in the pelicans. Although three out of the six birds tested positive for DA, experts cannot definitively conclude that the neurotoxin is the primary cause of the widespread illness. 
Samples of phytoplankton collected recently from the waters from Santa Barbara to Newport Beach were also tested. with five out of 14 samples indicating low concentrations of DA. 
These are the first of many test results expected, according to the group. Additional blood and tissue samples are being tested, and IBRRC anticipates more information within the next two weeks.
“We are very appreciative of the rapid test results from the Dave Caron Lab at USC. We believe these results are significant, but do not explain all the signs we are seeing in the pelicans. We are seeing a number of conditions that are not typical of domoic acid toxicity, or a domoic acid event. Therefore, we are continuing to collect and test samples, keeping an open mind and considering all possibilities,” said Heather Nevill, IBRRC’s veterinarian.
Adding to the concern of the nonprofit group is the expense of caring for the large birds. Holcomb said, “Last year’s figure is staggering. It cost the San Pedro center over $30,000 to feed the pelicans it saw through rehabilitation in 2008.”
Starting 2009 off with 40 pelicans under treatment, and more being admitted daily, the organization worries about its ability to treat them all.
“We will not be able to care for all of these birds unless we receive the financial support to do so,” Holcomb said. “We’re relying on contributions from the public to help see these birds through recovery.”
Becoming a Pelican Partner is one way a group or individual can assist financially, as well as become personally involved in a pelican’s care and release.
IBRRC also hopes to encourage schools to take part in the effort with its new Classroom Partners adoption program. For $300, a class of students can facilitate a specific bird’s release back into the wild.
Those interested in contributing to the cost of caring for the pelicans during the health crisis can send checks to IBRRC, P. O. Box 2816, San Pedro, CA 90731. Donations also can be made online.
For information about volunteering, contact the center at 310-514-2573.
To report dead pelicans, use the toll-free California Wildlife Hotline 866-WILD-911, option 2.
More information is available at www.ibrrc.org

—ANNE SOBLE

TRANCAS MEETING CANCELLED

The community meeting scheduled for Monday, Jan. 5, regarding Trancas/PCH, LLC LCPA Zoning Hearing Number 08-007 and the Trancas Homeowners Offsite Sanitation Association has been cancelled.
No reason has been given for the last-minute cancellation.
A recorded message about the meeting is available at 310-384-0646.

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