Governor Seeks Cash from Defeated Offshore Drilling Deal


oil_platformOur friend Greg Lucas was first to report, over at California’s Capitol, that Gov. Schwarzenegger’s May revise plans call for resurrecting a controversial deal to allow a new lease for offshore oil drilling off the coast in Santa Barbara County.

In exchange for the lease, the oil company Plains Exploration & Production (PXP) had agreed to a series of environmental concessions. The proposal had the backing of most local coastal protection groups, but the State Lands Commission voted it down in January.

Under terms of the deal, the state stood to receive about $1.8 billion in oil royalties over the next 14 years for allowing PXP expanded drilling rights on the existing Platform Irene at Tranquillon Ridge, off the coast from Vandenberg Air Force Base. The governor’s new budget plan proposes legislation to authorize the lease, despite the earlier commission vote, and includes $100 million in revenue for the upcoming fiscal year from awarding it.

In exchange for expanded drilling rights, the company offered a mandatory shutdown date of 2022, thousands of acres of permanently protected onshore lands, approximately $350 million of tax revenue for local government, plus the royalty payments to the state.

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There are 3 comments for this post

  1. avatar Anonymous says:

    Off-shore oil drilling? Can anyone say “third rail of California politics?”

    Yet another complete flip-flop by our presto/change-o governor.

    Remember when he remade himself into the “environmental governor?”

    This is classic Arnold. Once the cameras leave and the headlines whither, time to flip to the other side.

  2. avatar Anonymous says:

    Dear Guv,

    I have to admit I’ve been against the initiatives all along. Mainly because I’m so disappointed in you and the leggies that I don’t trust anything you all say anymore, and I think this complex web of bizarre propositions is some kind of gimmick designed to make me agree to things you people don’t have the balls to do yourselves (even though that’s what we elected you to do).

    But now that you’ve threatened California’s coastline with expanded oil drilling, I’m crying “Uncle!” I guess I just have to vote yes on everything.

    You got me big guy. I can’t stand up to your threats. You’ve beaten back my rebellious spirit with your masterful strategy of intimidation.

    What’s more, you needn’t worry about whether girlie-voters like me will show up to vote — nothing motivates a voter to raise their own taxes faster than a good threat.

    Count on me to be there on Tuesday.

    Love ya guv,

  3. avatar Anonymous says:

    And “The Sacramento Bee; reports once more that “only a tiny(!) voter turn-out shall occur next Tuesday – May 19th – leaving open the alternative that since the two-thirds legislative rule is not in effect, a simple majority of those caring to cast a vote in that special election shall leave the Governor and 120 state legislators with at long last actually having to implement their eight mnth late, cobbled together, failed result. AIN’T IT A HOOT? Meantime in the Texas State Capitol, “USA TODAY” reports that the 10th US Constitutional amendment is being involved by their Governor,to keep the Feds out of state biz. Scenes are envisioned of ‘TX Border Patrol check-points’ established along all North-South and East-West interstate arteries. Except for card-carrying military service members or our veterans, all fed employees shall be ordered to return to their original destinations without transiting The Lone Star State. Next planned for the TX State Capitol: Under their flag a refurbished “Don’t Tread on Me” ensign.

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