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

California’s Office of Environmental Health Hazard Assessment (“OEHHA”) recently released several new pre-regulatory draft proposals regarding Proposition 65 (“Prop 65”). With one possible exception, the pre-regulatory draft proposals double down on the existing Prop 65 burden for companies doing business in California, and would make defending a Prop 65 action even more costly. In an

As one of many implementation steps under the Sustainable Groundwater Management Act (“SGMA” codified as Water Code §§ 10720 et seq.), basin boundary regulations were released recently by the California Department of Water Resources (“DWR”), with a public comment deadline set for Friday, September 4. DWR is holding public meetings this week to solicit

AB 1390 aims in unprecedented fashion to expedite procedures and processes for groundwater adjudications, which, in California, are known to take one or two decades before reaching a final judgment. The bill would add various provisions to the California Code of Civil Procedure that would be codified as Sections 830 through 849. AB 1390 was

With the Sustainable Groundwater Management Act (“SGMA”) taking effect on January 1, 2015, the California Department of Water Resources (“DWR”) is in full swing of holding public workshops and information sessions to solicit input from stakeholders and other members of the public as well as to answer questions regarding SGMA’s various milestone requirements.

On July