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CHANNEL ISLANDS : Exxon, U.S. Agree to Extend Tanker Talks

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Exxon Corp. and federal officials agreed Monday to continue negotiating over whether the oil giant can ship crude oil from San Francisco to Los Angeles while passing near the ecologically fragile Channel Islands.

According to John Romero a spokesman for the federal Minerals Management Service, extending the talks will give both sides more time to resolve the dispute.

If no resolution is found, the oil company may formally appeal the regulatory agency’s March 28 order to halt the low-profile shipping operation.

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“This extension is designed to give each side some additional breathing room so that an agreement can be reached without going through a costly and lengthy appeals procedure,” Romero said.

In early April, the company agreed to stop the shipping operation and begin a series of talks with the government. At the crux of the dispute was whether Exxon could ship part of its Santa Ynez Unit oil by tanker to Los Angeles once it was moved by pipeline to a refinery in San Francisco Bay.

Federal officials say that Exxon does not have the authority to ship oil by tanker, while company officials maintain that they do.

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