Huntington Beach : Angus Petroleum Sues Over Drilling Permits
A firm pushing for a $25-million oil-drilling project has sued the city, alleging that officials have illegally refused to issue construction permits to begin work.
The suit is the latest chapter in a year-old controversy pitting neighborhood residents against Angus Petroleum Corp.
In January, the City Council blocked the project by rescinding its earlier approval.
Angus asked for a court order forcing the city to issue the permits. The firm sought to drill up to 60 wells on two square blocks near residential areas in Huntington Beach. Angus also planned to clean up 35 old wells it operated, some dating back to 1922.
The firm also agreed to create a $1-million trust fund for the benefit of the 35 homeowners living within 100 feet of the site to guarantee against loss of property value.
City Administrator Charles W. Thompson told Angus by letter on Aug. 14 that no building, drilling or grading permits would be issued, according to the lawsuit.
Angus’ lawsuit alleges that Thompson erroneously cited a Jan. 5 council action rescinding approval of the project. That action was ineffective, leaving a vote last October approving the project as the city’s final word, according to the lawsuit.
Thompson and lawyers for both sides could not be reached for comment.
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