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Mike Mills

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Mike Mills is an experienced environmental attorney who represents his clients in complex regulatory, compliance and litigation matters. His scientific background in environmental toxicology, as well as his contacts within California’s state regulatory agencies, make him ideally suited to provide effective and practical solutions to environmental, regulatory and sustainability challenges that his clients confront.

Mike is a former co-chair of the firm’s Energy and Natural Resources Industry Group, and his deep connections within California’s oil and gas industry span over two decades. Oil and gas clients appreciate Mike’s experience as they manage business growth and risks in the challenging regulatory environment in which they operate in California.

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California Assemblymember Das Williams (D-Carpinteria) has introduced an oil and gas bill to ensure that the state comes into compliance with the Class II underground injection (“UIC”) requirements under the federal Safe Drinking Water Act (“SDWA”).  According to the U.S. Environmental Protection Agency (“USEPA”), California is currently out of compliance with certain requirements for some Class II injection wells (oil and gas wastewater disposal wells) because fluid from these wells is being injected into non-exempt aquifers, which is prohibited.  Assembly Bill 356 (“AB 356”) was introduced on February 17, 2015 following publication of a letter from the Division of Oil, Gas and Geothermal Resources (“DOGGR”) to the USEPA addressing California’s Class II UIC program.

The bill authorizes the DOGGR Supervisor to require operators to implement a groundwater monitoring program for underground oil production tanks, facilities, and disposal and injection wells.  In addition, AB 356 would require operators to submit this monitoring plan, with a schedule for monitoring and reporting groundwater quality data, to the local regional water quality control board.  Data would then be submitted to the State Water Resources Control Board for inclusion in the geotracker database.  The purpose of the bill is to protect underground drinking water sources from potential  contamination arising from oil and gas operations.Continue Reading Proposed Assembly Bill 356 Would Require Additional Groundwater Monitoring by Oil & Gas Operators

On Thursday, Feb. 19, the Center for Biological Diversity (“CBD”) filed suit against the Bureau of Ocean Energy Management (“BOEM”), the Bureau of Safety and Environmental Enforcement (“BSEE”), and the Department of the Interior (“DOI”) in the U.S. District Court for the Central District of California. (CBD v. Bureau of Ocean Energy Management et al., Case No. 2:15-cv-01189.) The complaint alleges that the federal agencies issued permits for drilling off the coast of California without adequate environmental review. Specifically, CBD claims that the federal government violated the Outer Continental Shelf Lands Act, the National Environmental Policy Act, and the Coastal Zone Management Act “without analyzing fracking pollution’s threats to ocean ecosystems, coastal communities and marine wildlife, including sea otters, fish, sea turtles and whales.” (CBD Press Release, Feb. 19, 2015.)
Continue Reading Center for Biological Diversity Files Complaint Against Federal Agencies to Halt Offshore Fracking in California

On Friday, February 6, California’s Division of Oil, Gas, and Geothermal Resources (“DOGGR”) published a letter to the US Environmental Protection Agency (“USEPA”) addressing issues with California’s Class II Oil and Gas Underground Injection Control program (“UIC”).  DOGGR wrote the letter in response to two previous letters from the USEPA where the USEPA pointed out…

On January 26, the U.S. Fish and Wildlife Service (“USFWS”) issued a letter to the California High-Speed Rail Authority (the “Authority”) that found that the Authority’s contractors are not in compliance with the Authority’s original environmental commitments to the USFWS in performing the preliminary work on the first segment of the high-speed rail project (the…

Today saw two significant developments for oil and gas operators utilizing well stimulation treatments in California.

Pursuant to SB 4, the Department of Conservation’s Division of Oil, Gas and Geothermal Resources released a statewide programmatic Draft Environmental Impact Report (“EIR”) analyzing the potential environmental impacts associated with well stimulation treatments, including hydraulic fracturing (aka “fracking”).…

On December 30, 2014, the California Office of Administrative Law (“OAL”) approved the Final Permanent Well Stimulation Treatment Regulations (“Permanent Regulations”).  The regulations go into effect on July 1, 2015, and the Interim Regulations, which were operative all of last year, will remain the governing law in the meantime.  By finalizing the Permanent Regulations, California leads the way with the most stringent, comprehensive hydraulic fracturing (“fracking”) regulations in the country.

The Permanent Regulations are the result of multiple regulatory revisions and reflect extensive input from the public, industry, and various state agencies. Please see our oil and gas resources page for more information about the development of the Permanent Regulations.Continue Reading SB 4 Well Stimulation Treatment Permanent Regulations Finalized

As the High Speed Rail Authority (“Authority”) prepares to begin construction this week of the first segment of the High Speed Rail Project (the “Project”), the State Public Works Board is concurrently scrambling to consider resolutions of necessity to acquire property for the first segment within Fresno and Madera counties.  Because of the recent litigation…

On Wednesday, December 17, I gave a presentation to the Groundwater Resources Association (“GRA”).  I reviewed the past year’s developments in California’s regulation of hydraulic fracturing and previewed my future predictions for the industry.  Below is a summary of my talk and the power point presentation is attached here.
Continue Reading Here Today & Fracked Tomorrow: A Review of SB 4 in 2014

A new oil and gas reporting bill, Senate Bill 1281, sponsored by State Senator Fran Pavley, was signed by Governor Brown on September 25, 2014.  The California Department of Conservation – Division of Oil, Gas and Geothermal Resources (“DOGGR”) issued a Notice to Operators containing important information on the new law’s reporting mandates on December 8, 2014.

Under Senate Bill 1281, Section 3226.3 was added to the Public Resources Code and requires the State Oil and Gas Supervisor to provide an annual inventory report of all unlined oil and gas field sumps to the State Water Resources Control Board and Regional Water Quality Control Boards.

Section 3227 of the Public Resources Code was also amended to require operators of wells to provide a monthly and quarterly statement disclosing the following information:

  • The source and volume of water produced from each oil field
  • The water used to generate or make up the composition of any injected fluid or gas
  • The volume of untreated water suitable for domestic or irrigation purposes
  • The treatment of water and use of treated or recycled water in activities, such as exploration, development, and production
  • The disposition method of all water used in or generated by oil and gas field activities – including water produced from each well reported
    • Also the identity of any temporary onsite storage of water and the ultimate specific use, disposal method or method of recycling, or reuse of the water

For each reporting requirement, if water is commingled, it must be assigned proportionately to each well.

DOGGR has provided an interim water reporting form on its website for use until February 2015, at which time a final version of the form will be made available.
Continue Reading New Water Reporting Requirements for Oil and Gas Operators

The Surface Transportation Board (“STB”) issued a declaratory order in a 2-1 vote last Friday, finding that the California Environmental Quality Act (“CEQA”) is categorically preempted by federal law, as it relates to the Fresno to Bakersfield segment of the California High-Speed Rail Project (“HSR Project”).

Section 10501(b) of Title 49 of the United States Code provides that remedies with respect to rail transportation are exclusive and preempt remedies provided under State or Federal law. The STB has previously ruled that states or localities are precluded from intruding into matters directly regulated by the STB, in particular when the state or local action would have the effect of foreclosing or unduly restricting the rail carrier’s ability to conduct its operations or otherwise unreasonably burden interstate commerce.

Under this section, the STB could not overlook the fact that CEQA, as a state pre-clearance requirement, could ultimately deny or significantly delay the High-Speed Rail Authority’s (the “Authority”) right to construct a railroad line. This would directly defy the STB’s exclusive jurisdiction over a project that it regulates. Even if it could be argued that the Authority created an implied agreement by voluntarily beginning the CEQA process, the STB concluded that any such agreement would unreasonably interfere with interstate commerce because it would prevent the Authority from exercising its authority to construct the rail line, which it had been previously authorized to do by the STB.
Continue Reading High Speed Rail Moves Forward Without CEQA Review

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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.