Pact Reached on Oil Drilling Off Alaskan Coast

Oil industry and environmental groups Thursday urged Secretary of the Interior Donald P. Hodel to ratify an unprecedented agreement that they had reached on drilling off the Alaskan coast, but the disputes between the longtime adversaries were relatively easy to resolve.

The two sides, brought together by actor Robert Redford, said at a press conference that each got virtually all it wanted in talks marked by a dramatic improvement in understanding each other’s views.

However, the parties dropped negotiations on the toughest area in dispute: the salmon-rich Bristol Bay, where the Interior Department wants to offer leases on 5.6 million acres of potentially oil-rich ocean floor.

The coalition of industry and environmental groups, which included representatives of native Alaskans and fishermen, recommended that 48 million acres in four areas of the Bering Sea be included in a five-year leasing plan that the department must draft by the fall to replace the current one, which expires this year.

At the same time, the coalition urged that 240 million environmentally sensitive acres be placed off limits to drilling. In addition, coalition members recommended that a group similar to theirs be called upon to resolve any conflicts over proposed leasing of specific tracts.

Redford, who organized the eight months of negotiations through his Institute for Resource Management, said that Hodel gave a positive response at a meeting with 20 coalition members.

Hodel Praises Efforts

Hodel commended the group’s innovative efforts but said it would “not be appropriate to react” to its proposal until all views had been considered, including that of the state of Alaska.

Although environmental and oil industry leaders said they believe their bargaining process could be extended to other offshore areas, California apparently is not a likely prospect.

William J. Johnson, president of Standard Oil Production Co. and a coalition spokesman, said the California drilling controversy is so “highly politicized” that it would be better for negotiations to continue between Hodel and members of Congress who represent both sides of the dispute.

California Rep. Leon E. Panetta (D-Monterey), a key negotiator who wants extensive limits on drilling off California, agrees with Johnson, an aide said.

No Signs of Agreement

“At this point, the environmentalists and the oil industry don’t show any signs of being able to work this out by themselves, and it’s really going to take those people who have to implement this policy--Congress and the Interior Department--to develop a plan,” said Panetta aide Barry Toiv.

David S. Holland, president of Pennzoil Exploration & Production Co., said that “all areas in the Bering Sea with significant geologic potential would be available for leasing” under the coalition’s accord.

Similarly, John Adams, executive director of the Natural Resources Defense Council, said that “99% of our top priority areas were recommended for exclusion.”

Redford said he hopes the new pact represents “only the beginning of what could be a major breakthrough in resolving conflicts” between developers and preservationists.