County supervisors Tuesday approved hiring a law firm to defend against Measure J-related litigation, setting up a legal defense fund and soliciting donations on the county website for the effort.
Supervisors unanimously approved the items after Citadel Exploration has sued the county alleging that state law supersedes the ban against enhanced petroleum extraction once planned for the oil company’s Project Indian site. Citadel recently filed the lawsuit at the San Benito County Courthouse. The filing followed the company’s prior $1.2 billion claim against the county in the matter.
Citadel had plans for up to 1,000 wells at the Bitterwater oilfield, but Measure J bans the extraction method—steam injections—planned for the site. Measure J bans steaming, fracking and other enhanced extraction practices throughout the county along with all petroleum activities near the two cities here. It gained 59 percent of the vote in November.
Citadel in its latest court filing argued that state law supersedes Measure J’s prohibition against steam injections and requested a judgement on whether the initiative should stand. The lawsuit contended that “regulation of down-hole operations is exclusively a State function and that the defendant lacks the power and authority to regulate down-hole operations.”
In filing the lawsuit against the county, Citadel pointed out that supervisors voted 5-0 in June 2013 to approve steam-injection test wells at the Project Indian site.
County supervisors at their Tuesday meeting approved a $36,000 flat fee for services from the law firm Cota Cola LLP for proceedings at the court trial phase. Additionally, in a separate agenda item, the board approved a Measure J legal defense fund and adding promotional material to the county website soliciting donations for it.
County Administrative Officer Ray Espinoso opened the talk with a warning about the legal action’s potential impact and the need for the defense fund in a county with financial troubles.
“These claims really could be detrimental to the county,” he said.
County Clerk Joe Paul Gonzalez told supervisors there was a similar measure approved in a New Mexico county, which solicited donations for legal defense.
“They had no other recourse but to go out and solicit private donations to this kind of big issue,” he said.
Gonzalez also mentioned how donations are tax deductible and how the cases here could set a precedent throughout California.
Supervisor Robert Rivas said in doing research, he realized there had been varying degrees of success or failure with other challenges to similar fracking bans depending on the area.
“We’re not creating this fund because we’re in financial trouble,” Rivas said. “We’re creating this fund as an idea that actually originated through an organization in town called San Benito Rising.”