On Thursday, December 10, environmental organizations filed a complaint against Kern County in California Superior Court alleging that the County violated the California Environmental Quality Act (“CEQA”) by preparing a “grossly inadequate” Environmental Impact Report (“EIR”) for its new oil and gas rules.  The Sierra Club, Center for Biological Diversity, and the Natural Resources Defense Council (jointly “the Sierra Club”), along with several other local organizations, take issue with the programmatic approach of the EIR, and urge a well-by-well environmental analysis.  This lawsuit comes as no surprise to the County.  Environmental groups have a long history of opposing oil and gas development in Kern County, which produces over 70% of all the oil in California.

This lawsuit comes in reaction to a Kern County zoning ordinance amendment which harnessed broad local support.  On November 9, 2015, the Kern County Board of Supervisors unanimously approved amendments to Title 19 of the Kern County Zoning Ordinance which provides a streamline permitting process for oil and gas operations.  Notably, the new ordinance encourages oil and gas producers to work with surface owners to agree on a development plan, promoting cooperation and transparency.  The amendments also required the County to conduct an extensive environmental analysis pursuant to CEQA.  The Board of Supervisors certified the Final EIR after holding multiple public Scoping Meetings and reviewing various mitigation measures.Continue Reading Environmental Challenge Blasts Kern County Oil and Gas Rules

On Monday, November 30, California Department of Conservation Division of Oil, Gas and Geothermal Resources (“DOGGR”) Supervisor Steven Bohlen submitted his resignation to Governor Jerry Brown, less than 18 months after taking the position.

A statement issued by Governor Brown reveals that Steven Bohlen will return to his position at the Lawrence Livermore National Laboratory

In a process that took nearly three years to complete, on Monday, November 9, the Kern County Board of Supervisors unanimously approved a significant change to its oil and gas regulations.

The change affects Title 19 of the Kern County Zoning Ordinance and provides a streamline permitting process for oil and gas operations. The

On Friday, November 6, three environmental organizations filed suit against the City of Los Angeles in California Superior Court for the County of Los Angeles. The three groups, Youth for Environmental Justice, the Center for Biological Diversity and the South Central Youth Leadership Coalition, allege that the “City of Los Angeles has for years employed a pattern or practice of rubber stamping oil-drilling applications in violation of the California Environmental Quality Act (“CEQA”).” Verified Complaint and Petition for Writ of Mandate, at 2. By categorically exempting oil-drilling projects from CEQA, the Complaint states that L.A. has permitted a disproportionately high number of drilling operations in low-income communities and neighborhoods where people of color reside. According to the environmental groups, this is a racially discriminatory practice because the City of L.A. exhibits a pattern of “developing and approving weaker conditions for drill sites in communities where a vast majority of the residents identify as Latino and black.” Id. at 26.

The Complaint focuses especially on the risks of drilling operations on children. “Because  they breathe at a higher rate, and drink more water and consume more food in proportion to their body size, children receive higher doses of toxins and contaminants than adults.” Id. at 12-13. Further, in contrast to the public outcry over fracking, the environmental groups note that the emissions from oil and gas development in L.A. are associated with “traditional drilling,” not necessarily hydraulic fracturing. The Complaint also addresses the alleged risks of acidizing and gravel packing techniques, though.
Continue Reading Environmental Justice Lawsuit Accuses L.A. of Discriminatory Oil Permitting

On October 8, the California Department of Conservation (“DOC”) released a Renewal Plan for Oil and Gas Regulation (“Renewal Plan”) to revamp its regulatory program.  The goal of the Renewal Plan is to continue the DOC’s focus on environmental protection and public health, and it will shape the DOC’s regulatory decisions for the next two years.

The Renewal Plan contains four objectives: (1) regulatory overhaul, (2) new regulations for “new realities,” (3) modernization of data management, and (4) ensuring a high-quality workforce.  California’s Underground Injection Control (“UIC”) program is a key focus, and the Renewal Plan calls for a review of aquifer exemptions.  Exempt aquifers are those that are permitted to receive injection of Class II fluids (fluids associated with the production of oil and gas).  The review of exempt aquifers will ensure that Class II fluids are not being injected into potential drinking water sources.
Continue Reading Bunn’s “Renewal Plan” will Overhaul Oil & Gas Regulation in California Starting Next Year

On October 21, 2015, the California Water Commission (“CWC”) adopted emergency regulations formulated by the Department of Water Resources (“DWR”) that establish a process by which local agencies may seek groundwater basin boundary modifications.  The proposed regulations are the first of their kind authorizing DWR to formally consider requests by local agencies to modify groundwater

October 11, 2015, marked the deadline by which Governor Brown had to act on legislation submitted to him by the legislature in September. In addition to those bills the Governor signed, we note below legislation that has been identified as two-year legislation. Stoel Rives’ Water Law Team has been monitoring water-related legislation, especially given California’s historic drought. We will continue to monitor bills identified as two-year bills, as well as any bills introduced in the second half of 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: Currently identified as a two-year bill.
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: Currently identified as a two-year bill and pending in the Senate.
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.

AB-647 (Eggman): Beneficial use: storing of water underground
STATUS: Currently identified as a two-year bill and pending in the Senate.
If signed into law, this bill would:

  • declare that the storing of water underground constitutes a beneficial use of water if the diverted water is used while it is in underground storage for specified purposes;
  • state the intent of the Legislature that this storage of water underground not injure any legal user of the water involved; and,
  • provide that the period for the reversion of a water right does not include any period when the water is being used in the aquifer or storage area or is being held in storage for later application to beneficial use, as prescribed.

Continue Reading Update on California Water Legislation Regarding Groundwater, Recycled Water and More

The California Office of the Attorney General is seeking to limit certain payment provisions common in Prop. 65 plaintiffs’ settlements with defendants. The proposed rulemaking, published September 25, 2015, would limit the sums payable to the plaintiffs “in lieu of” civil penalties (often referred to as “Additional Settlement Payments”), as well as require ongoing judicial supervision of how plaintiffs actually expend these funds. The proposal would also permit award of plaintiff’s attorneys’ fees and costs only in cases where there a “significant” public benefit was obtained. The Attorney General’s office stated that the proposals are intended to bring Prop. 65 practice more in line with the drafters’ intent, as well as increase public accountability of the plaintiffs’ bar.
Continue Reading California Attorney General Targets Prop. 65 Plaintiffs’ Settlement Terms

On August 28, Earthjustice filed a petition with the State Water Resources Control Board (“Water Board”) seeking to overturn a Central Valley Regional Water Board (“Regional Board”) order allowing an oil and gas wastewater disposal company to maintain their ongoing waste water operations, which can employ unlined disposal pits in Kern County.

Valley Water Management

September 11, 2015, was the deadline for lawmakers to pass legislation and send to the Governor for signature or veto. Below is a summary of several bills related to oil and gas activities, which Stoel Rives has been monitoring. We note that several bills have been identified as two-year bills and, as such, we will