California governor rejects proposed settlement of offshore drilling lawsuit

by The Associated Press

Gov. Gray Davis has rejected federal efforts to settle a lawsuit over the state’s right to review oil and gas leases off California’s coast, officials said Jan. 14.

The U.S Department of the Interior is appealing a federal judge’s June decision upholding the state’s right to review leases granted by the federal government under the federal Coastal Zone Management Act. State Resources Secretary Mary Nichols said Davis rejected the proposed settlement because it would have required the state to give up the right.

The state sued in November 1999 to block the Interior Department from reissuing, without state review, 36 leases originally issued between 18 and 34 years ago. The Interior Department said its compromise would have reduced the number of leases and development, and would have used offshore platforms that already have been approved by the state.

In a statement, the federal agency said California’s rejection came Nov. 27, though Davis spokesman Steve Maviglio said the Jan. 14 announcement was the state’s first public disclosure of it.

The federal government has said the state will eventually have the chance to review the 36 leases, perhaps when the oil companies submit revised exploration plans if they eventually decide to drill. The leases let the companies do exploration and development work, which typically takes five to 10 years, but does not allow them to drill.

There are 20 oil and gas platforms operating off California’s coast, where they are visible from shore.