For Measure J supporter Andy Hsia-Coron, it was somewhat “disappointing” to have an oil company drop its lawsuit seeking to kill the anti-fracking initiative approved by local voters in November.
“In some ways, I guess it was disappointing,” Hsia-Coron told the Free Lance following the move Friday by Citadel Exploration to end its legal pursuit. “It would have been fun to be involved in the whole trial and see how it all went and watch the case unfold. But I guess the industry realized they didn’t have a case.”
Citadel reversed course on its late February lawsuit claiming state law supersedes the local measure’s provisions. County supervisors followed up by hiring a law firm for defense against the lawsuit and establishing a legal defense fund while soliciting donations from the public.
The lawsuit had 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 all enhanced extraction methods such as steaming, fracking and well acidizing.
While Citadel’s general counsel Jeff Coleman could not be reached immediately to comment on the decision, Hsia-Coron surmised that the oil company realized it didn’t have legal standing. Hsia-Coron pointed out there is plenty of prior precedent in favor of local jurisdictions having the right to set their own zoning restrictions.
Citadel had been set to make its first arguments at a June hearing at the county courthouse.
“As we approached a court date, it was clear they had no confidence in the argument they had been presenting,” Hsia-Coron said.
Citadel had been pursuing the use of cyclic steaming in up to 1,000 oil wells in the Bitterwater area of San Benito County near Pinnacles National Park. In November, voters approved Measure J, which put a stop to the project. The company followed by filing a $1.2 billion claim, a precursor to a lawsuit, and then the lawsuit.
Citadel in its latest court filing argued that state law superseded Measure J’s prohibition against steam injections and requested a judgement on whether the initiative, approved by 58.9 percent of voters on the November ballot, 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.” The legal filing went on to claim the measure conflicts with state law.
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.
