Local News in Brief : Huntington Beach : Permits Revoked in Suit Over 60 New Oil Wells

The City Council voted Monday night to revoke permits it issued to Angus Petroleum Corp. in September, settling a lawsuit filed by residents opposed to the firm’s $25-million oil-drilling project in their neighborhood.

But the legal drama that for 18 months has pitted residents against the city and a big oil company is probably not over.

The Colorado-based Angus has said it will file new applications for permission to drill up to 60 new wells at its site. Most of the seven council members have said they will approve the project. Concerned Citizens of Huntington Beach, a group that has been fighting the project since it was approved Oct. 20, 1986, vowed to go to court again if the project is permitted.

Residents sued Angus, the city and former City Councilman John A. Thomas, alleging that the project was approved illegally. It was later revealed that Thomas had done subcontracting work on the drilling site within 12 months of casting the deciding vote on the project.

Angus agreed last week with the residents’ contention that Thomas’ vote constituted a conflict of interest and agreed to pay attorney fees of $40,000 for Concerned Citizens.

The residents agreed to dismiss their lawsuit and refrain from civil litigation against Thomas. The City Council granted Angus permits on condition that the company indemnify Huntington Beach in any lawsuit that might result from the approval.