Complex Bolsa Chica Deal Hangs in Balance

The future of the Bolsa Chica wetlands could hang in the balance this week as government officials and two major oil companies race to craft a purchase deal before millions of dollars of funding is lost.

But a formidable hurdle remains that could block a sale: how to fashion an agreement that would assure the cleanup of oil field contamination without the use of public funds.

Officials close to the talks said Tuesday that they should know by Friday whether the complex deal will succeed or fail.

And even though the state Lands Commission plans an unusual meeting in Huntington Beach for next Wednesday, with the purchase of the Bolsa Chica wetlands on the agenda, no one could predict if a deal will be clinched in time for the commission to approve the sale.

“We’re still feverishly trying to work out a deal,” one official said. “Everyone’s getting invited to the party, but we haven’t gotten it done yet.”

Robert Hight, executive director of the Lands Commission, added: “At this point, I’m not predicting one way or another.”

The potential deal has gotten close attention in Sacramento and Washington because Bolsa Chica is the largest unprotected coastal wetlands south of San Francisco.

For months, government agencies have tried to negotiate a state purchase of 880 acres of the ecologically fragile wetlands next to Huntington Beach, staving off the controversial construction of 900 homes and creating a major public preserve.

Intensifying the pressure, nearly half the funding for purchasing and restoring the wetlands could evaporate unless an agreement is struck soon.

Much of the Bolsa Chica wetlands has been contaminated from years of oil drilling, and state officials are reluctant to buy the land without guarantees that the site is cleaned up without public funds.

Talks are continuing this week with landowner Koll Real Estate Group and two oil companies--Shell affiliate CalResources, the oil operator at the site since 1986, and its predecessor, Phillips Petroleum.

“We think good progress is being made,” said Susan Hersberger, spokeswoman for CalResources. A Phillips official in Oklahoma did not return phone calls.

Under the plan, almost $40 million of funding for the purchase and restoration of Bolsa Chica would come from the Port of Los Angeles in exchange for approvals for a port expansion project. But to meet construction deadlines, port officials say, they need to know early this month if the Bolsa project will move ahead.

The Lands Commission is scheduled to meet at 10:30 a.m. next Wednesday at the Huntington Beach City Council chambers, 2000 Main St.