California votes down offshore project

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By Wire reports

 27 July 2009 19:56 GMT

The California state assembly killed a chance for the state's first new offshore oil drilling lease since 1969, after the idea narrowly passed the senate earlier.



The measure was defeated by a 43-30 vote in the assembly and was taken out of the approved budget bill that seeks to close a $26 billion budget deficit.

US explorer Plains Exploration & Production had wanted to drill off an existing platform in federal waters into state waters.

The project off Santa Barbara was to raise about $100 million annually for 15 years in oil royalty payments to the state.

But Californians have been touchy about offshore drilling since 1969 when a major oil spill off Santa Barbara helped galvanize the…

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