Santa Monica Bay Dropped in Hodel Drilling ‘Truce’

Interior Secretary Donald P. Hodel unveiled new revisions Monday to a proposed five-year oil and gas leasing plan for California that for the first time excludes Santa Monica Bay and areas off the Orange and San Diego county coasts from oil and gas drilling.

At the same time, however, Hodel opened up 13% of offshore areas--about 6.45 million acres--that had been previously excluded from development by Congress under a moratorium that expired in 1985.

The proposal, announced in Washington by Hodel, also contains a commitment to require that air pollution emission limits on all future offshore oil and gas platform developments be “similar” to the strict limits required onshore.

The proposal is the latest version of a five-year oil and gas development plan for the years 1987 through 1991 first announced a year ago. It has been the subject of heated controversy between oil and gas interests and environmentalists as well as intensive behind-the-scenes negotiations between congressional leaders and the Interior Department.

Under Monday’s revisions, Hodel declared several Southern California ocean tracts off-limits to oil and gas development through 1991. They include Santa Monica Bay from Point Dume to Point Fermin, a six-mile wide buffer (six miles seaward from the beach) from the Palos Verdes Peninsula to Long Beach, as well as a six-mile wide buffer off the Orange County coast from Newport Beach on the north to roughly Dana Point on the south, encompassing the Irvine Coast Marine Life Refuges and Heisler Park.

A large area excluded lies off the San Diego County coast from the Mexican border to a point north of La Jolla. Much of the San Diego County exclusion area is due to U.S. military activities, including weapons testing and naval exercises. In Northern California, Hodel called for buffer zones off scenic areas of Humboldt and Mendocino counties.

Hodel has previously excluded from development the Channel Islands National Marine Sanctuary, the San Nicolas Island Navy operating area, the Point Reyes-Farallon Islands National Marine Sanctuary, areas offshore of San Francisco and Monterey bays, and Point Reyes.

Congressional Choices

Under federal law, Hodel must formally submit the plan to Congress by April. Congress will then have 60 days to review it and can either approve the plan, negotiate changes, or kill it. The proposal announced on Monday covers only the California portion of the plan, and it is subject to further adjustments.

“We hope we have found a way to break the battle for . . . a five-year plan--an armistice, a truce,” Hodel said in Washington.

At the same time, Hodel strongly indicated that if Congress could not accept the proposal, he could withdraw all or some of the concessions and treat oil and gas development off the coast of California as it is off the coast of any other state. He said that California had been extended “special exception” to procedures established by the Outer Continental Shelf Lands Act.

But Hodel’s call for a truce was greeted with cries of protest from key California congressional leaders, who charged that Hodel’s plan ignores major environmental concerns.

“This is a declaration of war on the California coastline,” said Rep. Leon Panetta (D-Monterey). “This plan is absolutely no compromise whatsoever,” Panetta told a Washington news conference that was joined by four other California representatives and the state’s two senators, Pete Wilson and Alan Cranston.

No One Is Pleased

Wilson, a Republican, called the plan “very disappointing news” and a “very inadequate response” to congressional concerns raised since 1981, when former Secretary of the Interior James Watt first proposed opening vast areas off the California coast to oil and gas exploration, triggering a congressional moratorium on further leasing.

Cranston, a Democrat, labeled the proposal as “environmentally blind.”

At the same time, the Western Oil and Gas Assn., which speaks for major oil companies and others, said it was “disappointed” by the plan and assailed Hodel for excluding too many areas from development.

Douglas Henderson, executive director of the Los Angeles-based association, warned that in three to five years the nation would become still more dependent on oil from the Middle East and “very vulnerable” to an embargo.

The most positive response came from the Deukmejian Administration in Sacramento, which noted that “nearly all” of Gov. George Deukmejian’s environmental recommendations had been accepted by Hodel, including environmental buffer zones off Los Angeles, Orange and San Diego counties.

Viewpoint of State

But Bill Sessa, a spokesman for Environmental Affairs Secretary Jan Sharpless, said that the state still believes that a larger area bordering Santa Monica Bay should have been excluded. Sessa said that the Administration would study the proposal before deciding whether to support it.

Signs of Frustration

Interior Department officials said Monday that Hodel was clearly “frustrated” by the difficulty in fashioning a compromise acceptable to all sides while seeing that the nation’s energy security is protected.

The Reagan Administration has linked much of the nation’s ability to develop domestic energy resources to oil and gas reserves off the California coast, particularly because new discoveries off the Atlantic seaboard and in Alaska have been disappointing. Henderson said Monday that untapped oil reserves off the West Coast between Canada and Mexico may reach 2.2 billion barrels. By comparison, he said that Alaskan reserves are estimated at 1.5 to 1.75 billion barrels.

The chorus of criticism from key members of Congress and the oil and gas industry signaled an uphill battle in Congress for the plan.

Rep. Bill Lowrey (R-San Diego) predicted an “explosion of individual bills” in Congress designed to restrict areas offered for lease and to impose more stringent air quality and other environmental controls than those envisioned by the Interior Department.

To underscore their objections, Rep. Barbara Boxer (D-Greenbrae), whose district covers part of the Northern California coastline in Marin and Sonoma counties, and Rep. Mel Levine (D-Santa Monica) said they would introduce a bill today to declare the entire California coastline to a distance 200 miles offshore an “ocean sanctuary” in which all further drilling, seabed mining or waste dumping would be prohibited.

Of the five lease sales planned, two would be off the Northern California coast, one off the Central California coast, and two off the Southern California coast. The first lease sale would not occur before 1989, in keeping with a congressionally imposed delay.

Larry B. Stammer reported from Los Angeles and Robert Gillette from Washington.