1999 ANNUAL REPORT
PRODUCTION

Progress Registered On Pipeline/Oil Spill Legislation

WSPA and its allies, including the WSPA Associates chapters, were successful in addressing two bills in the California Legislature that would have complicated the shipment of crude oil in the state.

One measure, AB 680 sponsored by Assemblyman Ted Lempert, would have extended the fines and regulations designed for massive marine oil spills to all inland spills. WSPA took the lead in negotiating major amendments to eliminate duplication and egregious penalties. The author thereafter approved those amendments.

The other bill, AB 1280 sponsored by Assemblywoman Hanna-Beth Jackson was strongly opposed by WSPA. The bill would have required that all oil produced offshore California be shipped to refineries by pipeline. WSPA led an effort, which broke down in the closing days of the 1999 legislative session, to develop compromise language with the author. The measure will likely be taken up again next year.

Coastal Resources Alliance to Educate Leaders on Offshore Production Issues

With WSPA in the lead, coastal oil producers created a focused effort this year to address the political controversies surrounding offshore oil and gas development. The Coastal Resources Alliance (CRA) of offshore oil and gas producers and industry associations was formed to educate decision makers and opinion leaders in a positive manner, and to promote the long-term economic well-being of the coastal oil and gas production industry in California.

Sparked by increasing political and media attention to offshore production and development activities, the CRA will carry out its mission through direct and focused education of key government decision makers and select statewide opinion leaders, primarily through carefully planned meetings, interviews and small group discussions.

Initial response from public officials and regulators has been positive. While many of theses individuals have strongly-held positions on offshore oil development, they have indicated their interest in learning more about our industry.

The CRA will develop materials and presentations that stress four key messages:

• a clear understanding of "What’s Out There"

• the industry’s strong and enviable record of environmental protection and industrial safety

• the economic benefits of the industry to the state of California and to regional economies

• the benefits to local communities

The CRA will complement WSPA’s long-standing efforts on the Central Coast.

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