Working with Care

Revised drilling plan unveiled in SB

By Sam Womack/Staff Writer
Thursday, April 8, 2010
http://www.santamariatimes.com/news/local/govt-and-politics/article_bd0ae05e-42d5-11df-aa66-001cc4c002e0.html
Santa Maria Times
Environmentalists and other supporters of a proposed oil-drilling project off the coast of northern Santa Barbara County are re-energized after releasing a revised agreement with the platform owner on Wednesday.

The private deal between Plains Exploration and Production Co. (PXP) and the Environmental Defense Center (EDC), Get Oil Out!, the Citizen’s Planning Association and the Trust for Public Lands caused trepidation from all sides, but the new settlement is public and available in its entirety to anyone interested.

The PXP proposal involves tapping subsea oil reserves in the Tranquillon Ridge oil field in state waters by slant drilling from the existing Platform Irene, four miles offshore from Vandenberg Air Force Base, in federal waters.

These same environmental groups have been vociferously opposed to offshore oil drilling since the 1969 massive oil spill off the coast of Santa Barbara, but this “historic” agreement has created an unexpected partnership.

“Never before in the nation’s history has the community come together to shut down existing oil drilling,” said Linda Krop, chief counsel for the EDC, during a press conference at Shoreline Park in Santa Barbara, with the Santa Barbara Channel in the background.

The two main changes of the revised agreement, according to the EDC, are that the state of California will have enforcement power as a third-party beneficiary, and if the platforms aren’t shut down within the agreed deadline, then any profits will be forfeited.

The original terms of the deal are still in place, such as a requirement that PXP shut down three of its offshore platforms in nine years, and a fourth platform in 14 years.

Plus, two onshore oil support and processing facilities and hundreds of acres of onshore oil wells must be removed by 2024.

Finally, as a way to make up for any environmental impacts, PXP has agreed to donate 3,700 acres next to the Burton Mesa Reserve in Lompoc and 200 acres on the Gaviota Coast for permanent preservation.
Also, all direct greenhouse gas emissions would be mitigated, and PXP would donate $1.5 million toward transit or other programs that help reduce emissions in Santa Barbara County.

“Without these commitments, drilling — including from the Tranquillon Ridge field — will continue for decades from these aging platforms and pipes; leaving us with the risk of oil spills, air and water pollution, and harm to our marine life,” said Congresswoman Lois Capps, D-Santa Barbara, who attended .

The project was approved by the Santa Barbara County Board of Supervisors on a 4-1 vote in October 2008.

In January 2009, however, the California State Lands Commission voted 2-1 to reject the new drilling, in part because of the private settlement details, and uncertainty regarding the influence the state or federal governments could exert, which could result in extended drilling despite the end dates.

The revised agreement gives the state of California authority to enforce all the terms of the agreement, and PXP not only has to cease production, it must surrender its federal leases, according to Krop.

In order to restart production at these sites, “a new operator will have to buy the lease, and then build all new platforms, pipelines and processing facilities,” Krop said.

The groups are working to stop the production of a coveted commodity within 14 years, because “our hope and expectation is that alternative and clean energy will become more economical and available,” said David Landecker, EDC executive director.

However, the deal is not backed by Assemblyman Pedro Nava (D-Santa Barbara) or several other state environmental leaders because they say it essentially “allows, invites and embraces new drilling in state waters.”

“It still sets a terrible precedent, and remains a bad idea,” Nava said in a statement.
The project must go back before the Lands Commission, and if approved, will then need support from the California Coastal Commission.

Part of the revised agreement was that the Tranquillon Ridge oil project cannot be approved through special legislation or any short-cut method, as was proposed during last year’s state budget discussions, Krop said.

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