Council Panel Deals a Stunning Blow to Foes of Oil Drilling in Pacific Palisades

An effort to halt Occidental Petroleum Corp.’s plans to drill for oil in Pacific Palisades was dealt a potentially fatal blow Monday as a split City Council committee voted against repealing 1985 ordinances approving the project.

After a sometimes raucous City Hall hearing in which hundreds of pro-drilling forces and environmentalists booed each other--while a stray pigeon soared overhead--the council’s Board of Referred Powers voted 3 to 2 against the repeal proposal. Councilman Marvin Braude sponsored the measure and is on the panel.

The vote came despite an emotional appeal by Braude to protect his district’s coastline:

“I’m convinced that people everywhere in the city don’t want oil drilling along the coast highway,” Braude said, his final words drowned out by a sea of cheers and boos from the audience.

Braude had hoped to persuade colleague Richard Alatorre to either support the repeal or vote to send the matter to the full City Council without a recommendation. Either move would have greatly enhanced the measure’s chances, because fewer City Council votes--eight instead of 10--would have been needed for passage.

But in an almost inaudible voice, Alatorre, a state assemblyman when the drilling ordinances were passed, sided Monday with Occidental. The Eastside Democrat explained later that Occidental had sought and obtained the drilling rights “in good faith” and it would be unfair to now kill the project.

Alatorre also expressed concern that the powerful oil company would make good on its threat to sue the city for $1 billion if the drilling ordinances were rescinded. He said he was also worried about another $330-million lawsuit that an attorney said could be filed by landowners standing to collect royalties from the drilling project.

After the vote, a clearly disappointed Braude said he was not surprised by Alatorre’s vote and vowed to press on for the support needed to send the repeal ordinances to Mayor Tom Bradley. Bradley has taken no public position on the repeal issue, although he signed the 1985 ordinances to permit drilling after twice vetoing earlier versions.

“The taxpayers of this city are being taken for a ride by Occidental and I think it’s a damned shame,” Braude said.

Even if Braude mustered the necessary 10 votes, he would still need a virtually unattainable 12 votes to override a Bradley veto. Currently, Braude says he can count on only eight firm votes.

Although Braude put on a confident appearance, other anti-drilling forces said the lengthy battle against Occidental will probably have to be won at the ballot box. Braude and colleague Zev Yaroslavsky are sponsoring an initiative drive to ban oil drilling along the city’s coastline.

Robert Sulnick, president of the anti-drilling group No Oil Inc., said after the committee vote that initiative organizers will begin gathering signatures within a few weeks.

Sulnick also lambasted Alatorre, saying the councilman had yielded to pressure from a “special interest” instead of being more concerned about environmental issues raised by the project.

Occidental has been fighting for nearly 20 years to win the right to drill at the 2.5-acre Pacific Palisades site across Pacific Coast Highway from Will Rogers State Beach. The company’s efforts, until a surprise Bradley approval in 1985, had been largely thwarted in the past by mayoral vetoes or court decisions.

Occidental representatives were ecstatic after Monday’s vote, but they acknowledged that the oil company faces still more battles, including pending litigation, future consideration of Braude’s repeal move and the voter initiative.

Occidental director Arthur Groman, the company’s chief spokesman, said he is not worried about the anti-drilling initiative.

“We would welcome the opportunity to take this issue to the city,” Groman said. “We feel the majority of the citizens are as intelligent as the majority of this committee.”

Occidental attorney Maria Hummer said that one legal obstacle remaining in Occidental’s path could be lifted later this week. The state Supreme Court is expected to decide whether to review an appellate court’s decision upholding the project’s environmental study. Until the high court acts, Occidental is under a Superior Court injunction against its drilling plans.

Theoretically, only the court ruling stands in the way of drilling exploratory wells at the Pacific Palisades site, Hummer said, but she added that at what point the company will start work remains to be decided.

Commission Sued

No Oil Inc. also has sued the California Coastal Commission for approving the drilling plan. But in that action, no injunction has been sought.

The Board of Referred Powers, consisting of five council members, sat Monday as the city Planning Commission. The commission was disqualified from considering the drilling repeal proposal because its president, Daniel Garcia, belongs to a law firm that performed legal services for Occidental in 1986. Garcia had been an outspoken foe of the drilling plan. Alatorre, lobbied by both sides in recent weeks, sided with Hal Bernson and Joan Milke Flores in opposing the repeal ordinance.

Both Bernson and Flores have supported Occidental’s drilling plans in the past and said Monday that they saw no reason to block the oil company’s project after it previously received the green light from the council. Neither Flores nor Bernson were swayed by opponents’ arguments that the drilling site is unsafe because of its proximity to earthquake faults in Malibu and its location beneath fragile city-owned bluffs with a history of landslide problems.

Nor were the two council members persuaded by arguments that the city faces a potential land mine of liability in the aftermath of an accident not caused by a landslide.

Under the 1985 drilling ordinances, Occidental agreed to hold the city blameless for personal injury or property damage claims if a landslide occurs as a result of the company’s installation of a dewatering system on the bluffs overlooking the Pacific Coast Highway drilling site. Among the provisions is Occidental’s agreement to include the city on a $100-million insurance policy protecting the city’s interests.

But drilling opponents argued Monday that the indemnification agreement holds no guarantees against the city facing millions of dollars in damage claims stemming from a major accident caused by a fire or earthquake. The city attorney’s office as well as Occidental’s own lawyers have conceded that the agreement does not fully shield the city from liability.

Bernson said that whatever problems there may be with the drilling ordinances, it would be wrong to rescind them now.

“There is something to be said for keeping your word, keeping the faith,” Bernson said. “I believe there was a commitment on the part of the city (to Occidental) and I believe we ought to keep our commitment.”

Times staff writer Scott Harris contributed to this article.

AGAINST OIL DRILLING:

ZEV YAROSLAVSKY

Cites environmental concerns and community opposition, which he is expected to use--versus Mayor Tom Bradley’s support--as part of his campaign against Bradley next year.

MARVIN BRAUDE

Opposition based on environmental and aesthetic grounds. Says the coastal beach areas are for the public and are inappropriate for oil drilling.

THE SWING VOTE:

RICHARD ALATORRE

Heavily lobbied by both sides of the issue. Was not on the council when it approved drilling ordinances in 1985. Had not taken a position on the project before Monday’s meeting.

FOR OIL DRILLING:

JOAN MILKE FLORES

Although has stated concerns over safety, has said reasons for repeal are not convincing.

HAL BERNSON

Support has been unwavering. Says it would be “unfair” to the oil company to repeal the drilling ordinances at this late date.

THE DRILLING BATTLE: A CHRONOLOGY

Milestones in the 18-year fight by Occidental Petroleum Corp. to drill next to Pacific Coast Highway in Pacific Palisades: 1970--Occidental applies to drill two exploratory wells across the highway from Will Rogers State Beach.

1973--Los Angeles City Council approves the request. Running for mayor that spring, Councilman Tom Bradley makes opposition to drilling a key point in his campaign.

1974--California Supreme Court overturns the City Council, ruling that Occidental must study the environmental impact of drilling.

1978--After heavy lobbying, the City Council again approves drilling by Occidental. A day later Bradley vetoes the plan, calling oil drilling “incompatible” with the coastal area.

1982--Occidental applies a third time for city permission, offering to stabilize the hillside above the drilling zone, the site of a massive landslide in 1958.

1985--The City Council votes 10-4 to allow exploratory drilling, and this time Bradley sides with Occidental. Later in the year, city Zoning Administrator Robert Janovici refused to issue a permit to drill because, he said, it would cause severe environmental damage. A Superior Court judge also barred drilling, saying Occidental’s environmental study was inadequate.

1986--The Board of Referred Powers, a panel of City Council members, overrules Janovici, removing one obstacle from Occidental’s path.

July, 1987--The state Coastal Commission, disregarding the recommendation of its staff, removes another major obstacle and votes 7-5 to let Occidental sink exploratory wells.

November, 1987--A state Court of Appeals overturns the Superior Court order that blocked the exploratory drilling, virtually clearing the way for work to begin. City Councilman Marvin Braude announces that he will seek a council repeal of the 1985 ordinance giving Occidental the approval to drill.

January, 1988--Citing a technical conflict, City Atty. James K. Hahn rules that the Board of Referred Powers, not the city Planning Commission, must rule on the Braude repeal. The decision is seen as a victory for Occidental because the Board of Referred Powers includes two council members with a long history of campaign contributions from Occidental and support for the drilling plan.