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Offshore California drilling deal could be scuttled

Posted by: Maven on January 28, 2009 at 3:20 pm

From the Associated Press:

An agreement paving the way for the first oil drilling off the California coast in nearly 40 years has run into unexpected opposition that may sink it altogether Thursday.

The plan, which could be worth billions, was announced last year by an unusual alliance of environmentalists and a drilling company. But supporters were blindsided by sudden opposition recently after it sailed through local approval and reached the state level.

The proposal hinges on a commitment from key environmental groups to lobby for expanded drilling off Santa Barbara if Plains Exploration & Production Co. would help fund hybrid buses, set aside thousands of acres of land and most importantly end all its local drilling by 2022.

“This is a once-in-a-lifetime opportunity,” said attorney Linda Krop, who negotiated on behalf of three lead environmental groups. “If people really want to protect the coast from offshore oil and gas development, this is the best opportunity to do that.”

State and federal lawmakers from California to Washington, D.C., are now challenging the plan, saying it could invite more offshore drilling along the California coast and undermine efforts to reinstate a federal drilling moratorium that was lifted by the Bush administration.

The three-member State Lands Commission has the power to scuttle the deal Thursday. Already the chairman, Lt. Gov. John Garamendi, has said he’ll vote against it. The other two members state controller John Chiang and state finance director Michael Genest have not disclosed their intentions but Genest is leaning for it and Chiang against, setting up the possibility the plan could die on a 2-1 vote.

Read more from the Associated Press by clicking here.

January 28, 2009 · Filed Under Oceans & Beaches

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