Arco Wins New Round Over Power Plant

The state Court of Appeal, rejecting arguments by Placerita Canyon homeowners and Atty. Gen. John Van de Kamp, has ruled that a controversial power plant under construction in Newhall does not require an environmental impact report.

The ruling is the latest legal victory for Arco Oil and Gas Co., which is building the $35-million project despite objections from canyon residents and Santa Clarita officials who say the electrical plant will contaminate the air and ground water. Van de Kamp filed a brief on behalf of canyon residents in May, calling the controversy “a significant issue of concern to the people of California.”

The 44-page opinion, issued Wednesday, was announced by Arco officials Monday. A three-judge panel--Fred Woods, Mildred L. Lillie and Earl Johnson Jr.--unanimously upheld an earlier ruling that a Los Angeles Superior Court judge issued in the company’s favor in February, 1988.

The Placerita Canyon Property Owners Assn. had charged that the Los Angeles County Board of Supervisors violated state law by not requiring an environmental impact report on the plant under construction near Placerita Canyon Road and Sierra Highway. The supervisors awarded permits for the 42-megawatt plant in December, 1987.

The plant was launched by Tenneco Oil Co. but has since been taken over by Arco, which purchased Tenneco last year.

Michael McEntee, attorney for the property owners, said it was too soon to say whether the association would appeal to the state Supreme Court or ask the Court of Appeal to rehear the case.

The appellate panel, reaffirming the earlier ruling against the property owners, said the supervisors followed proper legal procedures when awarding Tenneco permits to build the power plant.

McEntee said the appellate court failed to analyze the property owners’ arguments properly. Instead, the justices should have considered evidence presented by the property owners and the attorney general’s office that raised questions about the environmental safety of the plant, he said.

Gregory C. Brown, an Arco attorney, said the company is racing to complete the first stage of the power plant by November, when construction permits from the South Coast Air Quality Control District expire. He said the company expects to make the deadline.

Arco is building the plant atop an old oil field. The company plans to inject steam into the ground to loosen and recover an estimated 30 million barrels of heavy oil. The steam also will power electrical generators.

The Santa Clarita City Council ordered Arco to halt construction in September, saying the project’s building permits were issued by Los Angeles County in violation of a city moratorium. But in January, a Los Angeles Superior Court judge ordered the city to withdraw the stop-work order, saying the company should not be penalized for the county’s error.