Hodel Steps Up Attack on Ocean Drilling Pact

Interior Secretary Donald P. Hodel stepped up his criticism Thursday of a tentative accord he negotiated last month with California’s congressional delegation to limit offshore oil drilling.

Speaking in shirt sleeves on a flatbed truck, Hodel told about 2,000 oil workers that the anti-drilling members of the congressional delegation showed no concern about what impact the preliminary agreement would have on jobs.

‘Oil Buys My Milk’

“I do not remember on any occasion the issue of jobs being raised, and I’m convinced it has to be brought to the table,” Hodel said to cheers from the crowd.

Many spectators carried placards reading “Save Our Jobs” or “Oil Buys My Milk.”

“There were no voices in behalf of drilling,” Hodel said. “There were no voices that said we can do it in a safe, environmental fashion.”

Later, Hodel acknowledged at a news conference that he also had failed to raise the issue, except for a general remark about the impact of imported oil on the economy.

“It (jobs) did not appear to be a matter of significance in the discussions,” Hodel said.

Hodel’s remarks came during the second week of a visit to California to assess reaction to the preliminary agreement reached in mid-July. Hodel and congressmen hope to make it final in September, although there are signs that negotiations will be difficult.

The preliminary agreement generally has been applauded by environmental groups but has come under sustained fire from the oil industry.

Hodel has raised a variety of doubts about the accord.

In a letter sent Tuesday to the House subcommittee chairman on Interior Department appropriations, Hodel said oil industry dissatisfaction with 90% of the area proposed for lease has made him “increasingly receptive” to finding more productive tracts.

At the same time, he said in the letter to Rep. Sidney R. Yates (D-Ill.), who was expected to carry a final agreement to the full House, that tracts closer than six miles off the Eel River Basin near Eureka should be exchanged for others for environmental reasons.

Officials’ Hopes Raised

Hodel added that relocating 11 tracts off Newport Beach and Oceanside has been suggested, raising hope among local officials who oppose any further drilling off their shores.

“This is very encouraging, frankly, to us,” said William Schreiber, an aide to Rep. Robert E. Badham (R-Newport Beach), who walked out of negotiations between Hodel and congressional leaders rather than consider opening any tracts off his district.

“I think it opens up a window that we’ve been pursuing,” said Rep. Ron Packard (R-Carlsbad), an offshore drilling opponent who has proposed swapping five tracts off populated Oceanside for others off Camp Pendleton if there must be any drilling at all.

“I think we have a better chance now of not having any drilling in San Diego, and perhaps even in Orange County, than we’ve ever had before,” said Packard, whose district includes San Clemente and Dana Point.

Denny Freidenrich, spokesman for a coalition of Orange County coastal cities gearing up for a presentation to Hodel in Newport Beach Saturday, said Hodel’s letter indicates there is “wiggle room” in the agreement. “We believe that Orange County needs to be treated on an equal footing with other environmentally sensitive and tourist-driven areas that were protected in the agreement.”

Dannemeyer ‘Encouraged’

Even Rep. William E. Dannemeyer (R-Fullerton), a leading opponent of the compromise because it opened too few tracts, said Thursday he was “encouraged” that Hodel seemed ready to reconsider tracts of more interest to industry. Still, he advocated scrapping the compromise altogether.

“I think we would all be better served on this issue if the secretary would withdraw the tentative decision and permit the issue to be resolved by a vote on the floor of the House of Representatives. I think we have the votes to kill the moratorium outright.”

But Sen. Alan Cranston (D-Calif.) said Thursday that he hoped the plan would remain intact to provide some opportunity for oil production while limiting coastal areas where it could occur to “protect this most beautiful place.”

For his part, Hodel on Thursday urged those who work in the industry to let their congressmen know of their personal stake in the outcome of the talks.

“You are part of those great human resources. I plead with you to speak up and be heard and see to it that the people who represent you make themselves heard . . . ,” Hodel declared.

Hodel also promised that when he returns to Washington, he will forcefully raise the jobs issue as well as attempt to win approval for drilling in offshore tracts that the oil industry believes are more promising than the 150 tracts set aside in the preliminary accord.

Exploration Restricted

The agreement reached by Hodel in mid-July with several pro-moratorium members of the California congressional delegation restricted oil and gas exploration to 150 of 6,460 tracts on the outer continental shelf. The remainder were placed off limits until the year 2000.

The Ventura rally was organized by local chambers of commerce and companies that service the oil drilling. One organizer said between $10,000 and $15,000 was spent.

Earlier in Santa Barbara, Hodel heard endorsements of the agreement from local officials, who also urged stricter air pollution controls on offshore oil rigs.

Hodel listed a series of steps he is taking to meet those concerns.

Hodel is scheduled to meet today with Los Angeles Mayor Tom Bradley and with the California Coastal Commission, as well as to appear at a public forum in Long Beach.

On Saturday, more than 40 U.S., state and local elected officials are expected to testify before Hodel at a 9 a.m. hearing in the Newport Beach City Council chambers. Hodel will appear at another forum in Oceanside that afternoon.