On June 4, 2015, the Court of Appeal ruled that California Fish and Game Code section 1602 (“Section 1602”) unambiguously requires notification to the Department of Fish and Wildlife (“Department”) if an entity or individual plans to “substantially divert” water, even when the legal right to use the water was previously established. (Siskiyou

June 5, 2015 marked the deadline for lawmakers to pass bills out of their house to the opposite house. Bills that did not pass in their house of origin by that date have effectively died (unless such a bill has been identified as a 2-year bill). Stoel Rives’ Water Law Team has been monitoring water-related legislation, especially given California’s historic drought. Our Water Law Team will continue to monitor these bills, among many others, including environmental-related legislation, throughout the 2015-2016 Legislative Session. We will provide periodic updates as these bills move through the legislative process. Below is the status and summary of some of the bills Stoel Rives is monitoring.

SUPPLY AND GROUNDWATER

AB-307 (Mathis): Graywater: groundwater recharge
STATUS: This bill is a 2-year bill and currently pending referral in the Assembly.

If passed by the legislature and signed into law, AB-307 would state the intent of the Legislature to enact legislation to explicitly permit the usage of residential, commercial and industrial graywater for the recharge of a groundwater basin or aquifer.

AB-453 (Bigelow): Groundwater Management
STATUS: AB-453 passed the Assembly on April 16, 2015 and currently is scheduled for hearing on June 23, 2015 before the Senate Committee on Natural Resources and Water.

If passed by the legislature and chaptered, this bill would authorize, until a groundwater sustainability plan is adopted, a local agency to amend an existing groundwater management plan in furtherance of, and consistent with, the groundwater management plan’s objectives.
Continue Reading Update on California Water Legislation Regarding Groundwater, Recycled Water and More

WaterwaysThe wait for the new rule is now over!  The EPA and Corps of Engineers have jointly issued the rule defining which waters are protected by the federal Clean Water Act, with the new rule largely reflecting historical interpretations arising from SCOTUS decisions.

Please click on this link for more in-depth information and analysis prepared

On Tuesday, May 19, 2015, the State Water Resources Control Board (“Water Board”) held a Public Workshop regarding the proposed Draft Model Criteria for Groundwater Monitoring (“Model Criteria”). In this meeting, the Water Board heard comments from stakeholders who voiced their support or concern regarding the Model Criteria.

Dr. Steven Bohlen, the State Oil & Gas Supervisor, on behalf of the Division of Oil, Gas & Geothermal Resources (“DOGGR”) provided the Water Board with a variety of statistics regarding well stimulation operations that have occurred since DOGGR’s Interim Regulations went into effect on January 1, 2014. Dr. Bohlen reported that over 1,500 Interim Well Stimulation Treatment Notices have been received by DOGGR since January 1, 2014. Additionally, 809 well stimulation operations have been conducted and 22 monitoring plans have been approved. Furthermore, about 200 acre feet of water has been used for well stimulation operations.Continue Reading Industry and Environmental Groups Make Pitch to Water Board Regarding Draft Model Criteria for Groundwater Monitoring

On Thursday, May 7, 2015, two environmental groups filed a lawsuit seeking an immediate halt to oil and gas wastewater injection at 2,500 wells across California.

The suit, filed by the Sierra Club and the Center for Biological Diversity, claims that the state Division of Oil, Gas and Geothermal Resources (“DOGGR”) should be prohibited from letting companies pump produced water from their drilling operations into non-exempt aquifers.

DOGGR has repeatedly assured Californians that there has been “no contamination of water used for drinking or agricultural purposes related to underground injection by the oil and gas industry” and “no evidence has been found that underground injection has damaged sources of potential drinking water.”

Under DOGGR’s recently issued emergency proposed rulemaking, industry wastewater injections into non-exempt aquifers must be phased out by 2017.   However, the lawsuit calls for the injections to stop immediately. The proposed phasing-out period gives both DOGGR and the U.S. Environmental Protection Agency (“EPA”) the opportunity to determine whether some of the aquifers — particularly those that also contain oil — should be considered suitable places to inject produced water. The EPA has the authority to declare an aquifer exempt from the federal Safe Drinking Water Act, making it eligible for wastewater injections.
Continue Reading Lawsuit Seeks to Halt Oil Industry Wastewater Disposal Practices

On May 5, 2015, the State Water Resources Control Board (“Water Board”) adopted Emergency Regulations implementing a statewide 25% reduction of potable urban water use, which includes commercial, industrial, and institutional water use, in addition to residential water use. These regulations are in response to Governor Brown’s April 1, 2015 Executive Order mandating a statewide 25% reduction in water use from June 2015 through February 2016, as compared to the same months in 2013.   These regulations apply to all urban water suppliers, as defined in Water Code section 10617, excluding wholesalers.

To achieve the 25% statewide reduction in potable urban water use, the Water Board requires those areas with high per capita water use to achieve proportionally greater reductions than those with low use. The Water Board assigned each urban water supplier to one of nine tiers depending on the per capita water use in the supplier’s distribution area. Suppliers with the highest per capita water use must reduce water consumption by as much as 36%, while suppliers with the lowest water use must reduce water consumption by only 8%. Upon meeting certain requirements and approval by the Executive Director of the Water Board, some suppliers may qualify to be placed in a special tier requiring only a 4% reduction. Small water suppliers, defined as those with fewer than 3,000 service connections, must achieve a 25% reduction in water use or restrict outdoor irrigation to no more than two days per week. Water suppliers are left to obtain these results through local restrictions on both residential and non-residential users.Continue Reading California Water Board Signs Off on Emergency Urban Water Use Restrictions

On April 29, 2015, the State Water Resources Control Board (“Water Board”) issued a Notice of Opportunity for Public Comment and Notice of Public Workshop regarding the proposed Draft Model Criteria for Groundwater Monitoring (“Model Criteria”) for areas of oil and gas well stimulation. Senate Bill 4 requires groundwater monitoring for all oil and gas wells that receive stimulation treatments.

The Model Criteria will be used by (1) the Water Board to implement a regional groundwater monitoring program, and (2) oil and gas operators and Water Board staff in the development of groundwater monitoring near well stimulation activities. These Model Criteria outline the methods to be used for sampling, testing, and reporting the water quality associated with oil and gas well stimulation activities.

The groundwater monitoring data will be used to initially establish baseline condition prior to well stimulation. Thereafter, Water Board staff will evaluate data and test results to determine changes in water quality and whether additional monitoring requirements or corrective actions are necessary.Continue Reading Water Board Issues Proposed Draft Model Criteria for Groundwater Monitoring

On Thursday, April 2, the California Department of Conservation (“DOC”) published a notice of proposed emergency rulemaking for the state’s Class II Underground Injection Control (“UIC”) program.  The purpose of the rulemaking is set a schedule to eliminate injection into non-exempt aquifers so as to ensure that California oil and gas activities are in compliance with the Safe Drinking Water Act (“SDWA”).  The SDWA prohibits injection of Class II wells — those that dispose of waste water from oil and gas production — into non-exempt aquifers.  The Division of Oil, Gas and Geothermal Resources (“DOGGR”), within the DOC, first proposed this rulemaking in a letter to the U.S. Environmental Protection Agency in February 2015.  In March, twelve wells were shut-in in order to achieve this goal.
Continue Reading California Proposes Emergency Rules for Oil & Gas Waste Water Injection Wells as Precautionary Measure

On Tuesday, March 10, California Environmental Protection Agency Secretary Matthew Rodriquez and California Natural Resources Agency (“CNRA”) Secretary John Laird testified before a joint State Senate committee hearing.  At the hearing before the Natural Resources & Water Committee and the Environmental Quality Committee, Rodriguez and Laird confirmed that there has been no drinking water contamination due to oil and gas disposal well injection.  This finding is reiterated in a memo from the California EPA: “To date, preliminary water sampling of select, high-risk groundwater supply wells has not detected any contamination from oil production wastewater.”  (Memo from Cal. EPA, at p. 1 (Mar. 2, 2015).)

DOGGR and USEPA Correspondence

On Monday, March 9, the U.S. Environmental Protection Agency (“USEPA”) sent a letter to California’s Division of Oil, Gas and Geothermal Resources (“DOGGR”) approving DOGGR’s plan to regulate Class II underground injection control (“UIC”) wells.  The USEPA’s letter responds to DOGGR’s letter to the USEPA which presented California’s plan to revamp its regulatory scheme for Class II UIC wells in order to come into compliance with the federal Safe Drinking Water Act (“SDWA”).  The USEPA stated that they are “pleased that you [California] have initiated action to implement the plan.”  (USEPA Letter to DOGGR, at p. 1 (Mar. 9, 2015).)Continue Reading Regulators Confirm: No Drinking Water Contamination from Oil & Gas Disposal Wells