The California State Lands Commission has rejected a proposal that could have led to the first new oil drilling project off the California coast in 40 years. The panel, January 29th, voted 2-1 against Plains Exploration & Production Co.'s request for approval of its bid to expand drilling off Platform Irene in the Santa Barbara Channel. Commission Executive Officer Paul Thayer said the project is effectively dead unless the oil company takes it to court or reapplies to the commission with a new proposal. The proposal, which would have been worth billions of dollars, was announced last year with a landmark alliance between longtime anti-oil environmentalists and the oil company.