U.S. Extends Oil Leases Off Central Coast

In a decision that pushes California to the brink of a lawsuit over offshore oil development, the Clinton administration has extended the life of 36 oil leases off the Central Coast for up to four years.

Interior Secretary Bruce Babbitt made the decision without permitting state authorities to conduct a review of whether the drilling options that the oil companies hold are still valid. The action drew an angry response from environmentalists and members of the California Coastal Commission, which has insisted it has the authority to scrutinize the leases and has threatened legal action to do so.

“We have the right to review these lease options,” said Coastal Commission Chairwoman Sara Wan. “He didn’t give us what we are entitled to under the law.”

At a meeting last week, the commission authorized its attorneys to proceed with a lawsuit against the federal government if Babbitt did not permit the state to review the oil leases. Wan said a decision on whether to file a suit could be made today.

In a letter sent to the Coastal Commission on Friday, Babbitt outlined several conditions that must be met before oil companies can proceed with plans to expand drilling. Among them, the firms must conduct environmental studies focused on potential harm expanded drilling may inflict on national marine sanctuaries, tourism and wildlife. Babbitt wrote that the state would be permitted to review oil exploration and development plans once they are submitted, although Wan said such review would be restricted to development plans and not over whether the leases ought to expire.

Babbitt outlined a schedule by which those reviews must be completed in 19 to 45 months. That means it will fall to the next administration to determine if offshore oil production will be dramatically expanded along the California coast.

‘The oil companies get what they want and we didn’t get anything we need. It’s completely unacceptable,” said Susan Jordan of the League for Coastal Protection.

Frank Holmes, spokesman for the Western States Petroleum Assn., said he is confident environmental studies will demonstrate that “these leases can be developed in a safe and environmentally sound fashion.”

At issue are 1 billion barrels of offshore crude oil from Port Hueneme to San Luis Obispo, an amount equivalent to all the oil that has been removed from the coast in the past century. The leases are not exempt from drilling because they were issued between 1968 and 1984--before moratoriums were established.