Ban on Offshore Oil Drilling Continued

The federal agency overseeing offshore oil development announced Friday that it will temporarily suspend plans for new drilling off California’s coast to allow more time to study the proposals.

The decision by the U.S. Minerals Management Service leaves in place a six-year prohibition of new oil exploration in 40 undeveloped leases along the Central Coast until Aug. 16.

The delay comes just days before a June 30 deadline when federal officials were expected to allow oil companies to begin preliminary work in preparation for production. Opponents--including Gov. Gray Davis and other top state officials--now have more time to scrutinize plans submitted by the companies.

Susan Jordan of the League for Coastal Protection said the decision buys time, but merely postpones an inevitable showdown.

“I don’t see this as a victory at all because what we want is the expiration of these leases,” Jordan said. “It’s going to be a continuing battle and it’s not going to change the outcome of what the MMS is going to do.”

Oil industry representatives expressed dismay at the delay. They say that drilling for oil in the ocean is safer than importing oil in tankers and note that California cars, industry and homes consume about 2 million barrels of oil daily. Advances in drilling technology have prevented major oil spills on the state’s coast for 30 years, industry officials say.

“It’s unfortunate many of the political candidates and environmental groups are blowing this way out of proportion to what it is,” said Frank Holmes, spokesman for the Western States Petroleum Assn. “The leases can be developed in an environmentally safe and sound manner.”

After years of quiescence, the controversy surrounding offshore oil drilling in California erupted anew this year as companies holding options to drill in undersea tracts have sought permission to open new areas of the coast to drilling.

The oil companies seek 1 billion barrels of low-grade crude, more than has been removed from the California coast in the last century, from virgin tracts from Port Hueneme to San Luis Obispo. The tracts are not included in California drilling moratoriums imposed by Congress and President Clinton.

The California Coastal Commission requested the 45-day extension on allowing any new exploration to gain time to respond to the proposals. Two weeks ago, Gov. Davis directed the commission to come up with a strategy that prevents expansion of offshore oil exploration.

Davis, both California senators, Central Coast lawmakers and many of their constituents adamantly oppose plans for new drilling. They have written the Clinton administration in recent weeks urging an end to plans for expanded drilling along the coast and asking for more time to examine oil companies’ proposals.

Opponents fear a catastrophic platform spill could coat state beaches in crude oil in a repeat of a 1969 accident near Santa Barbara. They contend that oil exploration is no longer compatible with a coast increasingly given over to tourism and marine sanctuaries.

In a June 11 letter to Minerals Management Service Director Walt Rosenbusch, Davis said that tourism, shipping and other coastal uses pump at least $17.3 billion into the state economy annually, compared with $850 million from offshore oil and gas development.

The Coastal Commission is studying whether the leases, some of which were issued 35 years ago, require a thorough environmental review. Commission Executive Director Peter Douglas said the board will consider at its July meeting whether to exert its authority to review the oil development plans.