Pointless Spat Over Drilling

Even in these fractious political times, there’s one issue that unites Californians: opposition to oil and gas drilling in the waters off the state’s coastline. Time and again since 1969 -- the year of the disastrous Santa Barbara oil spill -- the state has declared its opposition to any additional drilling in federal waters, which begin three miles from the shore. The state long has barred any more exploration within closer-in waters.

A consortium of nine companies has filed plans with the Department of the Interior to drill nine exploratory wells within 36 lease tracts off the coasts of Ventura, Santa Barbara and San Luis Obispo counties. Luckily, there’s no evidence this is a serious attempt to reopen drilling. It’s more like a contest of wills over what the leases are worth to the government.

The unexplored leases were originally issued as long ago as 1968 to major oil companies. But the prospects were not all that attractive, and the big boys eventually sold the leases to smaller independent companies -- the ones now seeking drilling rights.

What’s fortunate for California is that the drilling applications appear to be pawns in a money game with the federal government. Under pressure from California, the Bush administration has agreed to buy up the leases and end any further prospect of drilling.

The oil companies are claiming they have already expended $1.25 billion for purchase and planning costs related to the sites. The federal buyout offers are far below that figure -- a sign that the government is not negotiating in good faith, the firms said in a court document. The drilling proposals seem to be a ploy to get Washington to sweeten the pot -- or to win an extension of the leases, which is allowed if the firms demonstrate that they are really interested in developing the tracts.

The court documents are part of a lawsuit by the companies against the federal government over lease terms and regulation. A district court judge has ordered meetings with a mediator later this month and should apply pressure for a buyout that settles this issue for good, without extending the leases.

California has some strong leverage: Before Interior can extend any leases, it must submit the plans to the state Coastal Commission so they can be judged against the state’s strict coastal protection laws. The Bush administration challenged the state’s authority during the Gray Davis administration but lost in a federal appeals court. The Schwarzenegger administration has urged Washington to permanently retire the leases.

The Coastal Commission will hold any new drilling plans to the highest possible standard, virtually precluding any drilling. Dragging out this fight is pointless.