Fifteen years later, Hermosa Beach and civil suit rival MacPherson Oil may be nearing an adequate settlement. Now that MacPherson has sold off its claims to explore the Hermosa Beach coastline,
Public health and environmental issues prompted the city council over a decade ago to limit oil exploration off the coast of the Beach City. Up in arms over what they perceived as a massive breach of contract, MacPherson Oil sued the city. The corporation did the right thing. Just because residents get spooked about potential environmental problems does not justify reneging on a multi-year, multi-million dollar contract. Then again, the city council at the time should have presented the contract to the voters before offering prime real estate and drilling rights by executive fiat.
One month before trial was set, the city and the company have reached an extended settlement. Did it really require fifteen years to arbitrate this mess of city coffers, city limits, and unsightly infringement of public domain by private interest? What a waste of time and taxpayer dollars.
The city will place an initiative on the ballot for residents to vote up or down oil drilling in the area. If the city rejects oil exploration once again, then the whole municipality will be on the hook for $17.5 million dollars, plus opting out of fringe benefits and profits for a cash-strapped community that promised too much for public workers who do not do much more than any other public workers in the region.
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