Interior drops legal challenge on California undeveloped leases

Sec. of Interior Gale Norton said Monday her department has abandoned a legal dispute with the state of California over 36 undeveloped offshore oil leases. Norton will not ask for a Supreme Court review of a recent 9th Circuit Court of Appeals decision, the Department of Interior said.

April 3, 2003

2 min read

By OGJ editors
WASHINGTON, DC, Apr. 3 -- Sec. of Interior Gale Norton said Monday her department has abandoned a legal dispute with the state of California over 36 undeveloped offshore oil leases. Norton will not ask for a Supreme Court review of a recent 9th Circuit Court of Appeals decision, the Department of Interior said.

Both the appellate court and a lower court affirmed the right of the California Coastal Commission to review existing leases to determine if they are consistent with the state's federally approved coastal protection plan.

DOI said it hopes to resolve the issue by negotiating with oil companies holding the leases. The court rulings only applied to existing unproduced leases and did not impact the 43 federal tracts currently producing oil and gas off California.

The federal government has for decades been unable to issue new offshore leases anywhere except in portions of the Gulf of Mexico and off Alaska because of both presidential and congressional moratorium.

"Our administration strongly supports environmental protection and understands the importance of this issue to the people of California," Norton said. "The administration supports the moratorium on new leasing off the California shore and respects the wishes of the people of California. We believe our efforts will be better spent in negotiation rather than in continued litigation with the state."

Norton's statement signals a policy reversal. Last year the Bush administration rejected a request by California Gov. Gray Davis (D) to buy back the leases, although DOI had agreed to do something similar in Florida (OGJ Online, May 29, 2002).