HOLLYWWOD (CNS) - Los Angeles officials missed signs in a geological  report that suggest a $200 million residential and commercial development now  under construction in Hollywood might be located above an earthquake fault, a  state official said in remarks published today.

The information was contained in reports written by a geotechnical  engineering consultant hired by the developer of the Blvd6200 project and filed  with the city, The Los Angeles Times reported.

The report, obtained by The Times under the California Public Records  Act, said groundwater levels varied by as much as 30 feet below the property.  Geologists generally consider uneven groundwater levels in California a strong  indicator of an earthquake fault.

The city Department of Building and Safety did not raise concerns about  an earthquake fault when it reviewed and approved the report in 2007 without  requiring any in-depth seismic study. California state geologist John Parrish  said the uneven groundwater cited in the report suggests the project could sit  on top of the Hollywood fault, which is capable of producing a devastating 7.0  earthquake.

``One of the most common indicators of the existence of a fault is the  presence of an offset groundwater table," Parrish told The Times. ``It can be  logically construed that the break in groundwater table elevations is because  of the presence of a fault."

Parrish and another geologist who read the report said the differing  water levels should have prompted further underground investigation, such as  digging a trench and deep holes in the ground to determine whether there is  actually a fault.

A spokesman for the Los Angeles Department of Building and Safety told  The Times that the agency still believes a seismic study was unnecessary.

``We agree that variations in groundwater levels are sometimes the  result of faulting," Luke Zamperini said. But the agency determined Blvd6200 was far enough away from the Hollywood  fault that a fault study was not necessary, he said.