State Lands Commission ends offshore oil and gas leases in Santa Barbara County

The California State Lands Commission terminated offshore oil and gas leases in Santa Barbara County Friday.

Carone Petroleum Corporation and Signal Hill Services Inc. have failed to bring their rent current or provide sufficient bonding which has resulted in the termination of their leases, according to the California State Lands Commission.

“The State Lands Commissions primary responsibility is to protect the public’s interest in over five million acres of state lands. Today’s action affirms that the Commission will always hold lessees accountable to the required standards of lease agreements, particularly when it comes to offshore oil drilling,” said Lieutenant Governor and Commission Chair Eleni Kounalakis.

The leases are located offshore in Carpinteria and have not been in production since 1992.

Nearly 4,000 acres of tide and submerged lands have been returned to California’s Coastal Sanctuary after Friday’s termination.

Carone Petroleum Corporation had two federal leases and had planned to drill oil.

“These lease terminations demonstrate the Commission’s steadfast commitment to protecting natural resources and public lands. We will continue to ensure lessees uphold their obligations to the people of California,” said State Controller and Commissioner Betty T. Yee.

The California State Lands Commission said the decision to terminate the leases was based solely on the failure of Carone Petroleum Corporation and Signal Hill Services, Inc. to comply with their lease obligations.