American Notes LOS ANGELES

Ensconced in their aeries overlooking Santa Monica Beach, the residents of Pacific Palisades sit atop 60 million bbl. of oil. Occidental Petroleum had fought for 18 years to get at the oil, while environmentalists battled the company in court, warning of the risk of earthquakes throughout the Malibu area. The no-drilling battle cry was taken up by celebrities such as Walter Matthau and Carol Burnett. Last month, however, the California Supreme Court finally allowed Occidental to begin drilling at the base of a 225-ft. cliff next to the Pacific Coast Highway.

The 155-ft.-high derrick that Occidental plans to build will bear little resemblance to 17 other rigs in Los Angeles. Replete with white stucco and red Mexican tile, it will be disguised as a Spanish bell tower. Still, opponents are circulating petitions for a ballot initiative to prohibit drilling within 1,000 feet of the coast.