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Yahoo!California’s Legislative Analyst concluded that PXP’s proposed Tranquillon Ridge offshore oil development — slated for off the coast of Pt. Conception — “merits legislative approval,” but cautioned that Governor Arnold Schwarzenegger and other champions of the plan are “overly optimistic” when it comes to the project’s revenue projections. PXP has claimed the project could generate as much as $1.8 billion during 14 years. Citing the state’s fiscal crisis, Schwarzenegger has sought — unsuccessfully — to win legislative support for what would be the first new offshore oil development approved in California since 1969. The PXP deal has driven a painful wedge between many local environmentalists — who supported the deal based on a basketful of concessions — and statewide activists, who contend the concessions are unenforceable and that the deal sets a dangerous precedent for more coastal oil development. The deal has emerged as a major fault line in the primary battle between rival Democrats Das Williams and Susan Jordan, now running for the 35th District Assembly seat. Williams has supported the deal; Jordan has vigorously opposed it. The two signed a clean-campaign agreement this past week, agreeing to refrain from negative attacks on their opponents. In addition, the candidates have reportedly pledged to hold interested third parties accountable for negative campaigning.
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I noticed the report also recommended legislation to approve the lease rather than have the state lands commission approve it.
"If the Legislature does decide to approve the Tranquillon Ridge project, it should explicitly authorize the project in legislation, as was proposed by the Governor last year, rather than assume that the SLC will approve it administratively. The SLC’s prior decision to disapprove of the project means that future approval by SLC would be uncertain. Enactment of new legislation to authorize the project would ensure that these revenues are available to balance the state budget."
Given this recommendation I wonder if PXP will even bother to try an re apply to the commission. I doubt it.
greensoftshell (anonymous profile)
March 11, 2010 at 8:02 a.m. (Suggest removal)
These agreements carry a lot with them, the inference that other oil companies will use to allow them to expand their operations, their desire to ask for more than 14 years, (there is no magic in 14,) and my guess is that PXP used that number based on its estimate that they will increase their efforts to remove as much as physically possible in that period and that their field will be exhausted or nearly so.
In addition in addition to royalties, there doesn't appear to be any incentive to assert a severance tax, which will clearly help our budgetary problem.
The Governors reluctance to assert that tax, while reducing health and education allowances is incomprehensible. Particularly, in view that all the other states which allow oil and gas drilling assert the imposition of this tax.
How come the media is silent on this issue? Maybe they are waiting for the Governor to give them a handout? Or an offer to join him in smoking a cigar?
I do not believe that we are well served by making anonymous comments.
Allan Ghitterman
gitran (anonymous profile)
March 12, 2010 at 10:51 a.m. (Suggest removal)
I agree with Mr. Ghitterman in his comments regarding our need to get more tax revenues from the oil companies. However what do you expect from someone like the Schwartzenator who thinks cutting taxes solves all problems. How has that been working for our state and county lately I wonder? I do applaud Allan's courage in not hiding behind an anonymous nom de plume. However I have reasons for remaining anonymous as do many of the posters here.
Noletaman (anonymous profile)
March 13, 2010 at 10:57 a.m. (Suggest removal)
Here is what Dr. Norman K. Sanders (GOO founder and founder of what was to later become EDC) has to say about the EDC/PXP oil drilling deal:
Opinion: Slippery slope for anti-oil groups
By Dr. Norman K. Sanders
Several months ago, it came to my attention that some Santa Barbara environmental groups had negotiated a secret deal with Plains Exploration and Production Company to allow the first new drilling off the Santa Barbara Coast since the 1969 oil spill.
I have watched in dismay as these organizations, which have fought so hard and so long for environmental sanity, sold out to the oil interests.
I cannot keep silent any longer while the present leadership of GOO (Get Oil Out) and the EDC (Environmental Defense Center) besmirch the memory of all those wonderful, dedicated people who gave so much to protect Santa Barbara from industry and developers who would sell it for a few pieces of silver.
Now, GOO, the EDC and the Citizens Planning Association are the ones pocketing that silver.
At the time of the oil spill, I was an assistant professor of geography at UCSB. I took part in numerous actions against offshore drilling and was on the original board of directors of GOO. I joined Ken Millar (pen name Ross Macdonald), Robert Easton and Ping Ferry to form Western Citizens for Environmental Defense, or WCED, modeled on the Environmental Defense Fund on the East Coast. I was the first director of WCED, which eventually morphed into the EDC.
While EDC, GOO, and CPA may have gone into these negotiations with good intentions, this agreement is a profound mistake. It sets a terrible precedent showing that environmental opposition can be bought by an oil company. It also sends the message that California is open to new offshore drilling at a time when big oil’s lobbyist and public relations efforts are working very hard to open up all of America’s coasts to new drilling.
It may seem to some in Santa Barbara County that this agreement will benefit them locally, but it is difficult to overstate the political statewide and national implications.
Many of the old anti-oil warriors have passed now. They must be rolling in their graves.
Dr. Norman K. Sanders
pedronava (anonymous profile)
March 21, 2010 at 8:24 a.m. (Suggest removal)