Federal Leasing of Areas Seaward of Los Angeles and Orange Counties for Oil and Gas Development: Major Implications.
In discussing federal leasing for oil and gas development, the author identifies the likely areas, production potential, regulations and requirements, and major implications. The 12,000-square-mile area designated by the Interior Department extends from about Point Mugu to San Clemente and out to Santa Rosa, San Nicolas, and San Clemente Islands. Favorable areas within the broad area are Santa Monica Bay, the San Pedro Shelf, the edges of the Santa Cruz Basin, and a small part of the San Clemente Island shelf. Exploration could take six months to four years. Some major implications: oil production of up to 400,000 barrels a day; gas production of up to 400 million cubic feet a day; possible jeopardy of state petroleum sanctuaries; additional structures off Los Angeles and Orange County coasts; oil spills. Revenues would include $1-2 billion to the U.S. Treasury; one-sixth of production in royalty payments to the Interior Department. All oil and gas produced would go to the California market. 19 pp. Ref.