By the OGJ Online Staff
HOUSTON, July 6 -- Nuevo Energy Co., Houston, said a court ruling has again delayed plans to develop its leases off California. It said this type of delay reinforces the need to implement rule-streamlining outlined in the White House's National Energy Policy plan.
A federal judge has ordered the US Minerals Management Service to certify to the California Coastal Commission that extensions of federal leases off Santa Barbara, Calif., are consistent with the state's Coastal Management plan.
In compliance with the ruling, the MMS said it will postpone proposed July public hearings on a draft environmental impact statement until it can comply with the order. In effect the lease development plans filed with extension requests are frozen until this can take place.
The leases in question are held by several different companies. They lie off Ventura, Santa Barbara, and San Luis Obispo counties. In 1993, all of the leases were placed under a Directed Suspension of Operations by MMS, pending the completion of a joint federal, county, and industry study known as the California Offshore Oil and Gas Energy Report (COOGER).
COOGER, which assessed the onshore constraints to development of the 40 leases, was finished in 1999. The MMS then approved extensions for 36 federal leases off California.
"As a matter of fact, the CCC concurred with the consistency of the exploration plans for these leases after they were issued between 1981 and 1985," said Phillip Gobe, interim president and CEO of Nuevo. "By changing the rules governing these leases and by the actions of other federal, state and local governments, the development of these offshore resources has been delayed for almost 20 years."
