Majority of Council Supports Denial of Oxy Drilling Permit

In what Los Angeles Councilman Marvin Braude billed as “a very important signal” to the California Coastal Commission, 8 of 15 council members sponsored a resolution Wednesday asking the coastal panel to dismiss an application by Occidental Petroleum Corp. to drill wells beneath the Pacific Palisades bluffs.

The resolution, introduced by Braude, contends that Occidental should not be allowed to apply for Coastal Commission permission for its project until questions about the validity of the city’s approval have been settled.

The line of argument mirrors an earlier, informal letter signed by a council majority in April. But Braude said the resolution has greater weight than a letter. “It is a very important signal and I think it will be adopted.”

The resolution is reflective of a City Council likely to give increased weight to environmental concerns. Since the council’s 1985 approval of the bitterly disputed Occidental project, three drilling supporters have been replaced: Howard Finn by Gloria Molina, Peggy Stevenson by Michael Woo and Pat Russell by Ruth Galanter. Molina, Woo and Galanter, in one of her first official acts, all signed the draft resolution.

The other co-sponsors were longtime drilling foes Braude, Ernani Bernardi, Joy Picus, Joel Wachs and Zev Yaroslavsky.

Braude said the eight signers would not necessarily oppose Occidental should the project be returned to the City Council for review. But “it may turn out that way,” he added.

Occidental Not Surprised

Occidental representatives said they were unhappy about the proposed resolution but not surprised by it. “This is not a new issue for Mr. Braude,” said Occidental spokesman Frank Ashley, “and represents his continuing efforts to misrepresent the Palisades project.”

The Palisades drilling project has been in limbo since the activist group No Oil Inc. won a victory over Occidental in Superior Court last year. The court decision invalidated the ordinances that would have allowed drilling at the Palisades site on the inland side of Pacific Coast Highway. The decision is on appeal.

The Coastal Commission has final authority over the project because it would be located near the beach. The coastal panel is scheduled to consider the Occidental project Tuesday at Santa Monica Civic Auditorium. Its staff has recommended denying the application, saying the site is better suited for shoreline visitors’ parking or another recreational use.

It is unlikely that Braude’s resolution, which was sent to the Planning and Environment Committee, could be brought to a final council vote before the coastal panel hearing. Braude said he intends to testify there that a council majority believes the oil company should wait for resolution of the lawsuit or begin seeking local approval again--a quest that took Occidental more than 15 years.

Bitter Fight

Coastal Commission Chairman Michael Wornum said it is unclear what effect the proposed resolution will have. “It’s an interesting thought,” he said. “We try to go along with what local government wants unless it’s going to violate the Coastal Act.”

Palisades residents and environmentalists have bitterly fought the project, claiming that drilling, which would be near an earthquake fault, would increase the risk of slides and oil spills. Occidental maintains that its plan is ecologically sound.

Occidental attorney Maria Hummer said the council’s 1985 approval is valid. “The ordinances are currently in effect,” she said. “Occidental may not, of course, begin any work on the site until litigation is resolved, but the judge made it clear that Occidental could pursue further approvals. He made that crystal clear.”

Braude’s resolution, however, further contends that the city ordinances gave approval to drill exploratory wells and to produce oil at the site. But the application before the Coastal Commission is for exploratory wells only.

Because the application is for a different project than the one approved, the resolution says, the coastal panel should send it back to the city for review.

Occidental is “wiggling and squirming now,” Braude said. “And it’s inappropriate. They’re trying to break the law with this kind of maneuvering. I think it’s shameful for a corporation to behave this way.”

But Hummer said Occidental applied for exploratory drilling separately in order to follow Coastal Commission procedure, which commission staff members confirmed.

And Joel Moskowitz, an attorney representing the Pacific Palisades Landowners Assn., called the resolution “an exercise in illogic. If the council has approved exploration and production, then obviously they’ve approved exploration.” Most of the members of the landowners group have leased mineral rights to Occidental.