Activists, oil firm lose bid for drilling off Calif

Odd alliance had a deal, but state commission rules otherwise

SANTA BARBARA, Calif. – A state panel rejected a proposal Thursday that could have led to the first new oil drilling project off the California coast in 40 years.

The State Lands Commission voted against Plains Exploration & Production Co.’s request to expand drilling off Platform Irene in the Santa Barbara Channel.

Commission Executive Officer Paul Thayer said the project was effectively dead unless the oil company takes it to court or reapplies to the commission with a new proposal.

The proposal, which would have been worth billions of dollars, was announced last year with a landmark alliance between longtime anti-oil environmentalists and the oil company. The environmental groups signed a confidential agreement to lobby for the deal in exchange for promises from the Houston-based company, including billions in revenue for the state, thousands of acres of land and a commitment to end its local drilling by 2022.

MSNBC