On Friday, February 27, 2015, Citadel Exploration, Inc. (“Citadel”) filed suit against San Benito County in the County’s Superior Court, arguing that state law preempts Measure J, a county ordinance that prohibits hydraulic fracturing.  Hydraulic fracturing, included in the definition of well stimulation treatment, is being regulated by California’s Senate Bill 4 (“SB 4”). …

February 27, 2015 was the deadline for lawmakers to introduce legislation to the 2015-2016 California Legislative Session and several bills related to oil and gas activities were introduced.  Below is a summary of those bills. Stoel Rives is monitoring these bills and will provide periodic updates as the bills move through the legislative process.

SENATE BILLS

SB-13 (Pavley):  Groundwater

This bill would specify that the State Water Resources Control Board is authorized to designate a high- or medium-priority basin as a probationary basin. This bill would provide a local agency or groundwater sustainability agency 90 or 180 days, as prescribed, to remedy certain deficiencies that caused the board to designate the basin as a probationary basin. This bill would authorize the State Water Resources Control Board to develop an interim plan for certain probationary basins one year after the designation of the basin as a probationary basin.Continue Reading Status of Oil and Gas-related Bills Proposed in California’s 2015-2016 Legislative Session

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”).…

The California Office of Environmental Health and Hazard Assessment (“OEHHA”) recently released its long anticipated Notice of Proposed Rulemaking proposing changes to the warning requirements under Proposition 65’s (“Prop 65”) implementing regulations. In summary, the proposed regulations would establish a new mandatory regulation regarding the responsibility of product manufacturers and others in the distribution chain…

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…

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