Council Asks Reconsideration of Palisades Oil Drilling OK

Opponents of Occidental Petroleum Corp.’s plans to drill for oil in the Pacific Palisades scored a victory Wednesday as the Los Angeles City Council voted to ask the California Coastal Commission to reconsider its approval of Occidental’s plan.

The 9-3 vote represents the first time that a council majority has voted against Occidental in the 20-year, politically charged struggle over the right to sink wells beneath the ecologically sensitive Palisades.

“Times are changing,” Councilman Marvin Braude, a long-time opponent of the drilling plan, declared after the vote. “That’s the message of today.”

Even if the Coastal Commission refuses the council’s request, the council’s action lends momentum to a planned citywide initiative on coastal drilling that would halt Occidental’s plans. Braude and Councilman Zev Yaroslavsky, who last year wrote the victorious Proposition U slow-growth initiative, are drafting the measure in hopes of placing it on the June ballot.

Wednesday’s vote provided further illustration of the strong political shift over the past two years. Although a council majority in 1985 approved Occidental’s drilling plan--and Mayor Tom Bradley granted controversial approval--the makeup of the council has changed considerably since then. Proponents Pat Russell and Peggy Stevenson have been defeated in elections, David Cunningham retired and Howard Finn died.

Their successors have all taken stands against the Palisades drilling plan. The council now appears to include nine members who are opposed to the drilling plan: Braude, Yaroslavsky, Ernani Bernardi, Joy Picus, Joel Wachs, Michael Woo, Gloria Molina, Ruth Galanter and Nate Holden. Bernardi was absent from Wednesday’s meeting. Robert Farrell voted with the majority in requesting reconsideration by the Coastal Commission but indicated that he is in favor of the drilling plan.

Holden, who represents the predominantly minority 10th District, was the latest to speak out against the Palisades drilling. Although Occidental’s adversaries have at times been portrayed as Westside elitists, Holden maintained that the issue is one of beach access.

“Poor people don’t have swimming pools . . . but they do have the beach if it’s clean,” Holden said.

Attorney Arthur Groman, a 30-year member of Occidental’s board of directors, later portrayed Holden’s comments as indicative of the “misconceptions and misrepresentations” that have hampered Occidental. The drilling, he stressed, is inland of Pacific Coast Highway and could not result in ocean oil spills.

Urban Sites

In the council hearing, Groman argued that there is no “rational distinction” between the planned Palisades drilling site and 17 other major urban drilling sites “safely operating” in Los Angeles.

Occidental, which believes that up to 60 million barrels of oil lie beneath the bluffs, must seek further Coastal Commission approval to drill production wells.

The city stands to collect $200 million in taxes and royalties over the next 30 years if the drilling plan is approved, Groman said.

Occidental attorney Mickey Kantor argued that the council’s action was based on a highly technical rationale that had been rejected by the Coastal Commission last month.

Although the council’s 1985 approval covers both exploratory and production drilling, the Coastal Commission approved exploratory drilling only. Braude contends that the council should have the right to pass judgment on an exploration-only application.

“You hear them (Occidental’s attorneys) arguing technicalities,” Braude said later with a shrug. “It’s war.”

Other Hurdles

Before it can sink exploratory wells, Occidental still faces other hurdles in the courts. In September, the state Court of Appeal is expected to hear Occidental’s appeal of a Superior Court ruling that the city’s 1985 ordinance favoring drilling is invalid.

In addition, Occidental is also fighting a related lawsuit filed by No Oil Inc., an activist group that has fought the drilling plan for more than 15 years.