Thursday, March 16, 2006

Hermosa Beach to Fight Drilling in South Bay

Just as an Australian Company is proposing to build an LNG terminal in Los Angeles' South Bay, the City of Hermosa Beach has decided it will fight a lawsuit over an oil-drilling project they consented to years ago.

Hermosa Beach on Monday filed a petition with the California Supreme Court to fight Macpherson Oil Co.'s $500 million breach-of-contract claim against the city in the wake of an appellate court's August ruling favoring Macpherson. The city's action seeks to stop Macpherson's lawsuit from going to trial seeking damages for being blocked from oil drilling in Hermosa Beach. A Macpherson attorney doubted the state's highest court would accept the city's petition.