California halts Plains proposed offshore project

The California State Assembly has rejected legislation authorizing a path forward for Plains Exploration & Production’s (PXP) T-Ridge project.

Offshore staff

HOUSTON-- The California State Assembly has rejected legislation authorizing a path forward for Plains Exploration & Production’s (PXP) T-Ridge project.

The T-Ridge project uses an existing platform and facilities off the Santa Barbara coast to access oil and gas reserves currently drained by PXP. According to the company, project approval will result in a steady new revenue stream for the state, as well as a range of significant environmental protections and offsets listed below:

- Donation of nearly 4,000 acres of PXP coastal land for permanent conservation.
- Termination of PXP's existing oil and gas production operations offshore California in 14 years, and removal of all related onshore processing facilities at the end of the project, instead of the company's current 30+ year production/drilling program
- Mitigation of the project's greenhouse gas emissions.

“The T-Ridge project is a unique opportunity for California and PXP to significantly accelerate the end of oil production and drilling operations offshore, for California to receive tremendous initial value and offsets in the form of large land donations and alternative energy support, and for California to receive a several billion-dollar revenue stream to help bridge the current fiscal crisis,” says Steve Rusch, VP of environmental, health, & safety and government affairs for PXP. “PXP is committed to continue working with California's elected and appointed leaders on a potential agreement for the T-Ridge project to build on the momentum generated by the Administration's and Senate's bipartisan support.”

PXP says it will continue pushing for the project to the state of California and address any misconceptions that groups may have regarding the project.

07/27/2009

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