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On Friday, September 20, 2013, just days after indicating his support for the bill, Governor Jerry Brown signed SB 4, which establishes a permitting system for the fracking of new oil and gas wells. The Department of Conservation, Division of Oil, Gas and Geothermal Resources (DOGGR) is now officially tasked with developing the permitting program…

This week, the Ninth Circuit Court of Appeals issued its decision in Rocky Mountain Farmers Union v. Corey, ruling on the constitutionality of California’s Low Carbon Fuel Standard (LCFS).  The Court of Appeals reversed the District Court’s holdings in large part, in particular finding that the LCFS does not on its face violate the…

Just hours after the California Assembly voted to pass the remaining bill on hydraulic fracturing, SB 4, the California Senate voted to concur with the Assembly amendments. The next stop for the bill is the Governor’s desk. Governor Brown’s administration had previously indicated concern regarding the broad scope of the bill, which was amended in the Assembly to include other well stimulation activities including acid treatment. If the Governor vetos the bill, it can be overriden by a two-thirds vote in both houses, which is a strong possibility given the breakdown of the votes cast to pass the bill.
Continue Reading California Legislature Passes Fracking Bill

Today the California Assembly passed the controversial bill regulating hydraulic fracturing, SB 4. The bill has been criticized by both industry groups and environmental organizations. Industry has argued that the bill is overbroad for including other types of well stimulation techniques, including acid well treatments, and creating a permitting scheme that subjects each decision to stimulate a new well to the California Environmental Quality Act. On the other end of the spectrum, the Center for Biological Diversity claims that only a moratorium on fracking would adequately protect the public and the environment.
Continue Reading California Assembly Passes Fracking Bill

Last week, a judge in Alameda County Superior Court denied the Center for Biological Diversity’s motion for summary judgment in a case arguing that DOGGR is obligated to regulate hydraulic fracturing activities under the state’s underground injection control (UIC) program. The Center challenged DOGGR’s position that the federal Energy Policy Act of 2005 exempts fracking from the state UIC program under the Safe Drinking Water Act (see January 25, 2013, post). The judge sided with DOGGR, finding that the exemption of fracking activities from state UIC regulations was consistent with the Safe Drinking Water Act and DOGGR’s interpretation should be afforded great weight unless clearly erroneous.
Continue Reading Judge Upholds DOGGR’s Application of UIC Fracking Exemption

At the end of last week, the Assembly Committee on Appropriations advanced the remaining bill regarding hydraulic fracturing, SB 4, to the Assembly Floor. After delaying the first scheduled vote on the bill, Appropriations advanced the bill without amendment. Since advancing to the floor, SB 4 has been amended to require the development of a reporting website and groundwater modeling criteria.
Continue Reading Assembly Committee Advances Fracking Bill to the Floor

The Assembly Committee on Appropriations failed to reach a decision at yesterday’s hearing on SB 4 – the lone surviving bill relating to hydraulic fracturing in the California Legislature. Appropriations delayed a vote on the newly amended SB 4 for another two weeks after hearing extensive testimony on the bill. At the hearing, representatives on both sides of the issue rejected the bill. Industry representatives argued that the bill is too broad for regulating acid injection in addition to fracking. Meanwhile, environmental groups asserted that the bill is too lenient on fracking fluid disclosure requirements.
Continue Reading Still No Agreement on Remaining Fracking Bill

Last week, the Bureau of Land Management (BLM) issued a notice of intent to prepare an environmental impact statement (EIS) under the National Environmental Policy Act (NEPA) to address hydraulic fracturing on federal lands in central California. BLM indicated that the EIS would consider the potential impacts of fracking and other well stimulation techniques associated with oil and gas leases and may result in an amendment to the resource management plan (RMP) for the Hollister Field Office.
Continue Reading BLM Announces an Environmental Assessment to Address Fracking in California

At a conference in Los Angeles at the end of July, the chair of the State Water Resources Control Board (SWRCB), Felicia Marcus, noted that the Department of Conservation’s Division of Oil, Gas, and Geothermal Resources (DOGGR) is delaying the release of its draft regulations of hydraulic fracturing until after the state’s legislative session. Marcus indicated that DOGGR is waiting to see whether the legislature will pass the remaining bill to regulate fracking, Senator Pavley’s SB 4.
Continue Reading DOGGR Delays Release of Draft Fracking Rules Pending Possible Instruction from Lawmakers

In Poet, LLC et al. v. California Air Resources Board et al., the Fifth Appellate District held the Air Resources Board (“ARB”) violated CEQA and the APA with its approval of the Low Carbon Fuel Standards (“LCFS”) regulations, and ordered the lower court to issue a peremptory writ of mandate, requiring ARB to take certain CEQA-related actions in any re-approval of the regulations. In doing so, however, the Court concluded that the LCFS regulations could remain in effect while ARB took the actions necessary to comply with CEQA and the APA. The Court also ordered that if those corrective actions were not taken, ARB would be ordered to set aside and suspend operation and enforcement of the LCFS regulations.

The LCFS regulations were adopted by ARB to reduce emissions from transportation and implement measures to achieve the goals of the California Global Warming Solutions Act of 2006 ( “AB 32”). In enacting the regulations, ARB was required to comply with AB 32, California’s Administrative Procedures Act (“APA”), and the California Environmental Quality Act (“CEQA”).Continue Reading California Appeals Court: Air Resources Board Low Carbon Fuel Standards Regulations Violate CEQA

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Few firms view their Environment, Land Use, and Natural Resources practices as core legal services. Stoel Rives is one of them. The firm ranks #8 in the United States according to Law360’s list of the largest practices of its kind. Our sophisticated compliance counseling, permitting, regulatory development, and litigation practices continue a long tradition of specialization and deep experience. Our environment, land use, and natural resource attorneys incorporate prior agency experience, technical acumen, and industry knowledge into their legal advice. They also build strong relationships with agency officials and industry associations. Our litigation successes include landmark decisions. More than 60 attorneys, paralegals, and compliance analysts comprise Stoel Rives’ nationwide Environment, Land Use & Natural Resources practice.