Simon Takes Stand Against Offshore Drilling

Republican gubernatorial candidate Bill Simon Jr. said Saturday that he is against any new oil drilling off the coast of California, and pledged to work with the Bush administration to negotiate buyouts of 36 undeveloped federal leases off the state’s southern coast.

“I strongly oppose further offshore oil development and additional drilling, and it is time to phase out our offshore oil platforms,” Simon said in a speech before a conference of radio and television journalists. “Further development could endanger our coastline--and with it our quality of life, our beaches, our marine life, and essential industries like tourism.

“By contrast, our proven onshore reserves are nearly 15% of total reserves in the nation. That’s where the state should be working to improve production, on shore.”

The 36 undeveloped leases, which cover plots of sea floor off the coasts of San Luis Obispo, Santa Barbara and Ventura counties, have been a source of controversy between California and the federal government for two decades.

They are currently the subjects of a legal and political battle between Democratic Gov. Gray Davis and the Bush administration. They also provide a natural point of contention between Simon and Davis, as Simon attempts to convert his victory in this spring’s Republican primary into a general election win over the incumbent Davis. Simon won the primary largely on the strength of his conservative support, but to win in November, he will need the backing of moderates and some Democrats, because Democrats hold a commanding majority among registered voters in California.

On Friday, Interior Secretary Gale A. Norton rejected Davis’ request that the federal government buy back offshore drilling rights, as it did last week in Florida. President Bush pledged $235 million to buy back offshore oil and gas leases in Florida, where his brother Jeb is governor and running for reelection.

Simon said Davis has passed up opportunities to negotiate with the federal government over the undeveloped leases, and claimed that his opponent has permitted offshore drilling to increase under existing state and federal leases. “He claims to be against new drilling, while his administration has dramatically expanded drilling with dozens of new wells and existing wells that have been deepened or re-drilled during his administration.”

Simon’s campaign said 11 new wells have been drilled from offshore oil platforms in state waters and that 25 existing wells have been deepened or re-drilled since Davis took office.

The governor’s press secretary, Roger Salazar, said the Davis administration has a legal obligation to honor the existing leases, which allow for new drilling to take place as long as it passes state scrutiny in terms of safety and environmental guidelines.

“The state doesn’t have the right to block that,” Salazar said. “These companies own these leases, so they have the legal right to drill on the leases they own. If the state were to block them, they would have to have the legal resources to do so, or it would constitute a ‘taking.’ The state obviously honors its commitments, but the governor doesn’t want to see any new ones.”

A Davis administration official said the existing leases don’t leave much opportunity to prevent new wells from being drilled. “On an ongoing basis, it’s very difficult to turn down wells in specific existing leases,” said Paul Thayer, executive officer of the State Lands Commission. “All these leases go back at least as far as 1968, and once they’re already developed, there’s this implication that the state has authorized the development.

“For [Simon] to try to turn this issue on its head is not only ludicrous, it’s the height of hypocrisy,” Salazar said. “Bill Simon is so steeped in oil and gas money that he drips when he walks.”

Simon acknowledged Saturday that he has investments in energy companies, but said he does not have an interest in firms that drill for oil off the California coast. According to his campaign, Simon’s holdings do include interests in SeaRiver Maritime, an oil tanker business that is an Exxon subsidiary; and in Seacor Smit Inc., a firm specializing in oil spill cleanup.

Simon’s comments on this issue followed quickly on the heels of Davis’ rebuff by the Bush administration. And Simon suggested Saturday that he could have better success than the governor when it comes to negotiating for California’s interests with the Republican White House. “I probably would have tried to contact the administration orally, instead of just firing a letter over the transom,” Simon said. “I would re-contact the [Bush] administration and try to do it without the paper shuffle by trying to transcend the litigation.”

Davis has thus far successfully used the courts to block any new oil platforms off California’s coast, rejecting settlement talks and vowing to take the case to the U.S. Supreme Court if necessary. The Bush administration has asked a federal court to allow new drilling.

The Simon campaign has been in recent contact with representatives from the White House and the Interior Department on the issue, said Sean Walsh, a senior GOP strategist who was on hand for Simon’s address.

Political analysts said the issue of offshore drilling provides Simon with a simple, noncontroversial way to reposition himself toward the political center.

“In the catechism of California politics, this is an easy one. He’d have to be a damn fool not to oppose offshore oil drilling,” said Democratic political strategist Bill Carrick. “This allows Simon to look like he’s independent from the [Bush] administration and the hard line environmental policies that aren’t popular in California, and also to make sure voters on the coast of California know he cares about this.”

“He’s trying to inoculate himself against Davis’ strongest charge, which is that Simon is out of step with the positions and opinions of California,” said USC political analyst Sherry Bebitch Jeffe. “I think it is very interesting that he is making the argument that he can get more out of the Republican administration than Davis can. Clearly, it’s true.”