Chevron Sues Over Dispute at Point Arguello : Energy: The suit challenges Santa Barbara County’s ban on the use of tankers to ship crude oil.

A coalition of oil companies led by Chevron U.S.A. on Wednesday filed a multimillion-dollar federal lawsuit against Santa Barbara County, challenging its anti-oil tanker policy.

The suit, filed in U.S. District Court in Los Angeles, seeks $100,000 a day in damages retroactive to 1988 and continuing until oil can be moved from the embattled Point Arguello oil and gas project. The $2-billion-plus project is expected to produce about 80,000 barrels of oil a day at capacity.

The oil companies, despite numerous rebuffs from state and county officials, have continued to press for a relaxation of the policy. The latest negotiations between the oil producers and county supervisors broke down earlier this week, according to both sides.

“We have exhausted every administrative avenue available to us,” Chevron spokesman G. Michael Marcy said. “The county is not listening to our concerns.”

Marcy said the company and its partners appealed to the California Coastal Commission, but commissioners refused to hear their appeal. “We are frustrated,” he said. “We have worked for 10 years on this, trying to be as cooperative as we can.”

At issue is whether Chevron and about a dozen other oil companies should be allowed to use tankers to transport oil from the offshore platform to refineries in Southern California. The latest setback for the partners was last month, when the Coastal Commission upheld the county’s 1990 decision rejecting shipment by tankers.

County officials contend that existing oil pipelines can handle the job. Chevron insists that the pipelines are unsuitable for moving the heavy, molasses-like crude oil because one line is unheated and another goes to West Texas, not Los Angeles.

Santa Barbara County supervisors said they were not surprised at the action because Chevron had threatened to file the suit when discussions broke down.

“We are really sorry this happened because they didn’t have to do this,” said Dianne Owens, chair of the Santa Barbara County Board of Supervisors.