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Tribal advocates keep up legal pressure for fair political maps; 12-member jury sworn in for Trump's historic criminal trial; Healthcare decision planning important for CT residents; Debt dilemma poll: Hoosiers wrestle with college costs.

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Oil Co. Bankruptcy Skirts Termination of Lease on Offshore Rigs

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Wednesday, August 10, 2016   

VENTURA, Calif. - An oil company facing termination of its lease for a facility on a tiny island near the coast between Ventura and Santa Barbara made a last-minute bankruptcy filing, even as the State Department of Conservation issued a second enforcement order against it.

The Rincon Island Limited Partnership filed for Chapter 11 late Monday, just ahead of a scheduled vote by the State Lands Commission, which has now put the matter on hold.

Linda Crop, chief counsel for the Ventura County-based Environmental Defense Center, said her group had urged the commission to terminate the lease.

"This is really disappointing," she said. "Already this operator has been negligent, and that negligence puts our environment and communities at risk."

The rigs on the island have been idle since 2008. In April, the State Department of Conservation's Division of Gas and Geothermal Resources ordered Rincon Island's owners, Greka Integrated, to repair severely-corroded valves and pipes on the surface that could burst and cause an oil spill. The company did not fully comply and on Tuesday, the agency slapped it with a second emergency order to plug two wells and fix deficiencies in its underground pipes.

Crop said if the bankruptcy proceedings drag on too long, the authorities could ask a judge to appoint a trustee so repairs can get underway.

"Clearly, from all the violations that have been found, there are ongoing threats," she added. "So, whether action is taken through the bankruptcy proceeding or separately, we definitely want to make sure that this is addressed right away."

Greka Integrated did not respond to requests for comment.


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