Last month, the California Regional Water Quality Control Board, Central Valley Region (“Central Valley Water Board”) published a Food Safety Project White Paper (“White Paper”) on the use of oil field produced water for food crop irrigation. The White Paper did not find any evidence that using produced water for irrigation creates an elevated threat to human or crop safety.
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Oil and Gas
SOUTHERN CALIFORNIA ENVIRONMENTAL UPDATE – NEW AIR QUALITY AND OIL & GAS REGULATORY DEVELOPMENTS
This is a continuing series of posts on the latest environmental and legal developments affecting oil and gas operations and development and other industries in Los Angeles and adjacent counties, as well as the southern San Joaquin Valley. In this post, we provide an update on regulatory developments at the California Air Resources Board, the California Geologic Energy Management Division, the U.S. Environmental Protection Agency and the South Coast Air Quality Management District.
STATE AGENCIES
California Air Resources Board (CARB)
CARB’s ongoing regulatory actions affect industry generally and are focused more heavily on the oil and gas industry. Actions potentially affecting all industries include the AB 617 program, termed by CARB as the Community Air Protection Program, CRT, an evolving regulation requiring substantially increased reporting of both criteria and toxic air emissions and the Low Carbon Fuel Standard, calculating carbon intensity based on Stanford’s OPGEE model.
AB 617, CARB’s Community Air Protection Program (CAPP): CARB’s CAPP action under AB 617, implements Assembly Member Cristina Garcia’s 2017 bill, requiring CARB to identify annually communities that they find impacted by disproportionate air emissions. These communities then assemble Community Steering Committees, and the local air districts must work with these Committees to develop Community Emission Reduction Plans (CERPs). For more background on AB 617 implementation by CARB and the local air district, see Stoel’s California Environmental blogs for October 4, 2019 and May 11, 2018.
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CDFW Proposes New Regulations for Oil Spill Management Team Certification with a September 14 Comment Deadline
Last week, the California Department of Fish and Wildlife (“CDFW”) Office of Spill Prevention and Response (“OSPR”) issued notice that it proposes to add ten new regulations (sections 830.1 through 830.11 to Title 14 of the California Code of Regulations) to implement statutory changes resulting from Assembly Bill (“AB”) 1197. AB 1197 establishes criteria and a process for the certification of oil spill management teams.
Continue Reading CDFW Proposes New Regulations for Oil Spill Management Team Certification with a September 14 Comment Deadline
How California’s Oil Industry May Help Preserve Agriculture in California’s Southern San Joaquin Valley – Recycled, Oil Field Produced Water Found Safe for Crop Irrigation
A study conducted by researchers at Duke University and RTI International found that reusing oil field produced water that has been mixed with surface water to irrigate crops in Kern County’s Cawelo Water District does not pose any major health risks. To cope with droughts and water shortages, some farmers in the Cawelo district have…
Oil & Gas Related Bills Update for the 2019-2020 Legislative Session
Stoel Rives’ Oil & Gas Team has been monitoring bills introduced by California legislators since the beginning of the 2019-2020 Legislative Session. Below is the latest update on a list of bills, summarized pursuant to the Legislative Counsel’s Digest, that our team has been following and will continue to monitor as the 2019-2020 Legislative Session proceeds.
Please also see our Renewable + Law post summarizing bills related to other energy topics here.
AB 345 (Muratsuchi, D): Natural Resources: Oil and Gas: Regulation of Operations.
STATUS: Last amended March 18, 2019; currently in Senate Appropriations suspense file.
Would require the Secretary of the Natural Resources Agency to create an environmental justice program within the agency to identify and address any gaps in existing programs, policies, or activities that may impede the achievement of environmental justice. The bill, contingent upon funding for this purpose, would require the secretary to establish a grant-based reimbursement program to enable environmental justice and community groups to meaningfully participate in rulemaking and other regulatory processes at departments and entities within the agency.Continue Reading Oil & Gas Related Bills Update for the 2019-2020 Legislative Session
CalGEM’s Public Health Rulemaking Workshops
The California Geologic Energy Management Division (“CalGEM”), formerly known as the Division of Oil, Gas, and Geothermal Resources (“DOGGR”), is actively working on revising its regulations to better align its regulatory mandates with the new goals of Assembly Bill 1057, which requires CalGEM to focus on protecting public health and the environment, and less on efficient and effective oil and gas production. The scope and extent of these regulatory changes may have far-reaching consequences for the oil and gas industry in California. As part of its pre-rulemaking process, CalGEM is hosting community workshops and accepting public comments regarding its proposed regulatory changes.
I. WHY IS CALGEM HOSTING WORKSHOPS?
While CalGEM’s materials on its pre-rulemaking process do not explain the exact nature or effect of these workshops, CalGEM’s workshops align with its new focus and November 2019 announcement of new oil and gas initiatives. Effective January 1, 2020, Assembly Bill 1057 changed DOGGR’s name to CalGEM and updated CalGEM’s focus from development and production of petroleum resources to transitioning to a low-carbon future and protecting public health, safety and the environment. In addition, last November CalGEM released a series of initiatives targeting certain oil and gas extraction methods, intended to safeguard public health and the environment. The November initiatives include:
- Imposing a moratorium on new oil extraction wells that use high-pressure steam to break oil formations below the ground;
- Announcing new rules for public health and safety protections near oil and gas extraction facilities would be updated and strengthened; and
- Completing an independent audit of CalGEM’s permitting processes for well stimulation and underground injection control and a scientific review of pending well stimulation permits to ensure public health, safety and environmental protections are met prior to approving each permit.
These initiatives are in line with the State of California’s overall climate goal of achieving carbon neutrality by 2045. California intends to meet this goal, in part, by decreasing fossil fuel dependence and consumption.
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CalGEM Issues Notice to Operators Regarding Cyclic Steam Moratorium
Nearly two months ago, on November 19, 2019, the Department of Conservation’s Division of Oil, Gas and Geothermal Resources[1] (“DOGGR”) announced a moratorium on approvals of new oil extraction wells that use a high-pressure cyclic steaming process to break apart a geological formation to extract oil.
The announcement did not contain much, if any,…
Southern California Environmental Law Update
This is the first in a series of posts to provide the latest on environmental and legal developments affecting oil and gas operations and development and other industries in Los Angeles and adjacent counties, as well as the southern San Joaquin Valley. In this post, we’ll provide an update on legislation proposed in 2019 that affects industry in southern California, implementation of significant legislation previously adopted, and initiatives in Los Angeles to limit oil and gas operations.
AB 617 Implementation
The stated goal of AB 617 (Garcia, 2017) is to protect communities with disproportionate levels of air emissions and provide stricter penalties for certain infractions by regulated entities. In line with AB 617, the California Air Resources Board (CARB) is implementing the Community Air Protection Program and finalized its first annual selection of communities for participation in the Program in September 2018. Air districts are now identifying candidate communities to be considered for the second year of the Community Air Protection Program. CARB isn’t likely to vote on the selections until later in 2019.
In the first round of community selection, South Coast Air Quality Management District (South Coast Air District) chose (1) Wilmington/West Long Beach/Carson; (2) San Bernardino/Muscoy; and (3) Boyle Heights/East Los Angeles/West Commerce. On September 6, 2019, South Coast Air District’s Governing Board approved Community Emission Reduction Programs for these areas. Most of the plans set goals for action, and enhanced enforcement, rulemaking and incentive grants will follow. The plan for San Bernardino/Muscoy focuses on truck, rail bus traffic, warehouses (as an indirect source), concrete and asphalt batch plants, and rock and aggregate plants. The plan for Boyle Heights/East Los Angeles/West Commerce focuses on neighborhood and freeway truck and bus traffic, railyards, metal processing facilities, rendering facilities, auto body shops, and general industrial facilities, along with reducing exposure at schools, childcare facilities, community centers, libraries, and public housing projects.
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Be Careful of What You Wish For – Environmental Groups Complain about the Environmental Study of Hydraulic Fracturing That They Sued BLM to do
On April 29, 2019, the U.S. Department of Interior, Bureau of Land Management (BLM) released a Draft Supplement Environmental Impact Statement (Draft SEIS) analyzing potential impacts of hydraulic fracturing for future oil & gas development within the 400,000 acre Bakersfield Field Office Planning Area. That planning area includes Fresno, Kern, Kings, Madera, San Luis Obispo, Santa Barbara, Tulare and Venture counties.
The Need for a Supplemental EIS
The Draft SEIS is the latest development in BLM’s ongoing management of oil and gas resources and supplements BLM’s 2012 Final EIS, associated with BLM’s 2014 Resources Management Plan (RMP). The 2014 RMP was challenged by the Center for Biological Diversity and Los Padres ForestWatch (Civ. No. 2:15-cv-04378-MWF/JEM). In 2016, the U.S. District Court for the Central District of California issued a summary judgment ruling that BLM had failed to take the required “hard look” at hydraulic fracturing. In 2017, the parties reached a settlement agreement that kept in place the 2014 RMP and required BLM to prepare a SEIS to analyze the environmental consequences of hydraulic fracturing.
BLM issued the requisite Notice of Intent (NOI) to prepare that Draft SEIS in August 2018. That same NOI also contemplated a possible amendment to the 2014 RMP. However, in the Draft SEIS determined that the environmental impacts of integrating hydraulic fracturing into future BLM leasing and development decision did not conflict with the earlier RMP and amendment was unnecessary.
Continue Reading Be Careful of What You Wish For – Environmental Groups Complain about the Environmental Study of Hydraulic Fracturing That They Sued BLM to do
Oil & Gas Related Bills Introduced in the 2019-2020 Legislative Session
The 2019-2020 California Legislative Session has officially reached its first deadline. February 22, 2019 marked the deadline by which bills could be introduced for the first half of the Session. Lawmakers will begin Spring Recess April 12 and reconvene April 22. The last day for bills to be passed out of the house of origin is May 31, 2019.
Below is a list of some of the key bills Stoel Rives’ Oil & Gas Team will be monitoring throughout the Legislative Session.
AB 255 (Limòn, D) and SB 834 (Jackson, D): State lands: leasing: oil and gas.
Status: Introduced January 23, 2019; referred to Committee on Natural Resources February 7, 2019.
The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act authorizes the administrator for oil spill response to offer grants to a local government with jurisdiction over or directly adjacent to waters of the state to provide oil spill response equipment to be deployed by a certified local spill response manager, as provided. This bill would provide that Native American tribes and other public entities are also eligible to receive those grants.
AB 353 (Muratsuchi, D): Oil and gas: Definitions: additive.
Status: Introduced February 4, 2019; awaiting referral.
Under current law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Current law defines various terms for those purposes, including “additive.” This bill would make a non-substantive change to that definition.
Continue Reading Oil & Gas Related Bills Introduced in the 2019-2020 Legislative Session
DOGGR Issues Revised Regulations for UIC and Idle Wells
On July 27, 2018 the California Division of Oil, Gas, and Geothermal Resources (“DOGGR”) issued two notices of proposed rulemaking action applicable to oil and gas operations in the state. DOGGR released updated underground injection control (“UIC”) regulations, as well as proposed regulations for idle well testing and management.
UIC Regulations
DOGGR supervises the drilling, operation, maintenance, and plugging and abandonment of onshore and offshore oil, gas, and geothermal wells. Wells that inject fluid for the purposes of enhancing oil or gas recovery, re-pressuring oil or gas reservoirs, or disposing of wastewater and other byproducts associated with oil and gas production – referred to as injection wells or UIC wells – fall within DOGGR’s regulatory scope.Continue Reading DOGGR Issues Revised Regulations for UIC and Idle Wells