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    EDC's Linda Crop (right) speaks before the California State Lands Commission in favor of PXP lease agreements off the coast of Santa Barbara County

    Paul Wellman

    EDC's Linda Crop (right) speaks before the California State Lands Commission in favor of PXP lease agreements off the coast of Santa Barbara County


    PXP Deal Defeated

    State Lands Commission Kills Enviro-Supported Oil Deal


    Thursday, January 29, 2009
    By Ethan Stewart (Contact)
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    After a six-hour hearing in Santa Barbara this afternoon, the California State Lands Commission voted down a potentially historic deal between Plains Exploration and Production (PXP) oil company and a significant cadre of Santa Barbara environmental leaders that would have granted new oil drilling permits within California state waters for the first time in 40 years. The deal would have granted PXP drilling abilities at the Tranquillion Ridge offshore of Vandenberg Air Force Base in exchange for a mandatory shutdown date of 2022, thousands of acres of permanently protected onshore lands, approximately $350 million of tax revenues for Santa Barbara County, and at least $2 billion for the State of California. It was defeated, however, by a 2-1 vote, with Lieutenant Governor John Garamendi and State Controller John Chiang voting against the plan and Governor Arnold Schwarzenegger’s representative, Tom Sheehy, the lone supporter. The State Lands Commission vote cannot be appealed.

    Lt. Gov. John Garamendi, who has supported efforts of the EDC in years past, voted against the PXP deal.
    Click to enlarge photo

    Paul Wellman

    Lt. Gov. John Garamendi, who has supported efforts of the EDC in years past, voted against the PXP deal.

    The hearing, which was held on the second floor of the Hotel Miramonte, provided a who’s-who of the Santa Barbara environmental and political landscape. Nearly all who spoke from Santa Barbara - including County Supervisors Salud Carbajal, Janet Wolfe, and Doreen Farr, and enviromental heavyweights like the the Environmental Defense Center’s Linda Krop and Carpinteria’s Vera Benson - all spoke in favor of the now-dead deal. For them, getting the rewards of much needed cash flow, an actual termination date for offshore oil drilling, the guaranteed closure of two onshore oil facilities within the county, and the thousands of aforementioned permanently preserved acres were worth 15 years of increased offshore oil drilling activity.

    The State Lands Commission staff, lead by Paul Thayer, recommended against the PXP deal.
    Click to enlarge photo

    Paul Wellman

    The State Lands Commission staff, lead by Paul Thayer, recommended against the PXP deal.

    Unfortunately for them, the majority of the three-member commission was not similarly inclined. Garamendi, echoing the opinions of the State Lands Commission’s staff, took the plan to task for promising public benefits, specifically the sunset date, that were, in his opinion, both “unachievable and unenforceable,” thus nullifying an real motivation to lift the offshore ban. Furthermore, Garamendi said he was worried that such a “precedent-setting” approval would “send a message that would be heard across America” that would be used by the “drill, baby, drill” crowd to push a pro-oil agenda from California to the country’s capitol in Washington, D.C. Before casting his decisive vote, the lieutenant governor explained, “I am not about to sell the California birthright of the most beautiful coastline in the world for an immediate meal.”

    Nick Welsh will provide a full report on today’s historic stand against offshore oil drilling this weekend at independent.com.

    Comments

    Independent Discussion Guidelines

    I trust Nick to do a thorough job on this. I expect many like me don't really understand what went on here. Also what next? Difficult to believe in our government there is no appeal and no next step?

    sbreader (anonymous profile)
    January 29, 2009 at 9:34 p.m. (Suggest removal)

    Transparency is important to the new administration in Washington and should be practiced by all who seek to make decisions for the benefit of the public. Why allow a "secret agreement" as the basis for a decision which would be seen as a shift or change in governmental policy?
    If the oil producer and the "protectors" are not willing to disclose, no deal.

    infosource (anonymous profile)
    January 29, 2009 at 10:07 p.m. (Suggest removal)

    infosource, are you reading the same article as I am? "Secret deal"? The agreement between PXP and Santa Barbara County, EDC, and so forth is completely public and was covered quite thoroughly in the news.

    Just Google "Tranquillion Ridge".

    CharlesB (anonymous profile)
    January 30, 2009 at 8:22 a.m. (Suggest removal)

    For CharlesB and others: The staff report posted on the State Lands Commission web-site confirms that only a few staff persons were allowed to see the full agreement which was submitted as "confidential" and they were not allowed to disclose the actual contents. The above article and Angry Poodle missed that fact. The Agreement was not negotiated by the County and the County is not a party to the Agreement. The State Lands Commission attorneys, who work for the State, and the staff of the Commission agreed, that one cannot assume in view of federal pre-emption and other legal hurdles that the agreement will be successful. The State Lands Commission attorneys should be commended for their due diligence report which put their legal analysis and the unknowns on the table for all to see. If anyone wants to use the "confidential" agreement as a basis for public decision making, it needs to be a public document.
    The State Lands Commission exists to protect the interests of the State and that includes the residents. Again, if not made public, no deal.

    infosource (anonymous profile)
    January 30, 2009 at 10:05 a.m. (Suggest removal)

    Infosource is correct. The secrecy of the deal is unacceptable. Krop and EDC/GOO/CPA have egg on their face because they neglected to inform the State Lands Commission Staff as to what they were contemplating, this because of the need for secrecy. Had SLC Staff known early on that this deal included an end date for oil production in Federal waters mandated not by the Federals but by a contract between EDC and PXP I am quite sure they would have nixed the deal early on and we would have avoided this bloodletting between environmentalist. This was handled in a very bad way by EDC.

    gaviotamilitia (anonymous profile)
    January 31, 2009 at 4:10 p.m. (Suggest removal)

    It's to bad state politicians used a technicality to stop a good plan from ending offshore oil drilling.

    This plan would have set a precedent for finally ending drilling along all of the American coastlines.

    How big oil interests got influence over Garamendi and state assembly members would make an excellent investigative story. It's hard to believe these politicians were so ignorant as to believe the rhetoric they were espousing about protection for our coast when now we are left with endless drilling.

    East_Fork (anonymous profile)
    January 31, 2009 at 5:48 p.m. (Suggest removal)

    I was so hoping for this land swap, an extention of open space, and another anchor to buffer Gaviota from developers greed.

    This was a sweet deal, and any egg is on Garamendi. What a political kook. Can you say"i want to be governor"?

    easternpacific (anonymous profile)
    February 9, 2009 at 6:56 a.m. (Suggest removal)

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