Oil company files $1.2 billion claim against San Benito County | Alternative Energy | Forums

So this is what happens when citizens don't vote the way big oil wants them to

HOLLISTER, Calif. —Measure J could mean legal troubles for San Benito County as an oil exploration company demands a $1.2 billion payout for limiting land access. 

The claim is a precursor to a much broader lawsuit expected to be filed by Citadel Exploration. The company is hoping to extract millions of barrels of oil from south San Benito County fields, just west of Bitterwater, Calif., with their plan called Project Indian.

Citadel owners claim they could have extracted 20-40 million barrels of oil over the life of the project, a value they believe equals $1.2 billion.

"$1.2 billion. That's like asking for the moon. The county will file for bankruptcy and reorganize. He’s not going to get anything,” San Benito County Supervisor Jerry Muenzer said.

"We don’t have that kind of money ever, ever," supervisor Muenzer said. Such a judgement would leave the county broke.

November's election put the brakes on that because voters passed Measure J, which bans all fracking and other high-intensity oil extraction.

The company is arguing that Measure J constitutes "regulatory taking," meaning, government regulation limits on the use of private property.

"When you start taking people’s property rights you have to pay for them and in this case you talking about the mineral rights to natural gas and crude oil which have substantial value over long period of time," said Jeffrey Dintzer a land use lawyer not associated with the oil company.

Citadel owners claim they could have extracted 20-40 million barrels of oil over the life of the project, a value they believe equals $1.2 billion.

Prior to the election, county supervisors passed an ordinance that would allow Citadel Exploration to request an exemption to Measure J.

"Before anything would come to trial they would have to go through that process first, the hearing would be before the board of supervisors and we can grant them an exception," said Muenzer.

County attorneys refused to discuss the claim and several calls made to the oil company were not returned.

The county board of supervisors will take up the claim when they meet December. Muenzer said the claim will likely be rejected, which will allow Citadel Exploration to file their lawsuit. 

http://www.ksbw.com/.....y/29829374