SB 1096 (Jackson), which sought to foreclose the possibility of oil drilling in state waters from wells that could be drilled at Vandenberg Air Force Base, was defeated in the Assembly on Tuesday.  Pursuant to the Legislature’s summary of the bill, the California Coastal Sanctuary Act of 1994 authorizes the California State Lands Commission (SLC)…

SB-1281 faced strong industry opposition due to the bill’s requirement that oil and gas drilling companies use recycled water for new operations during drought emergencies.  Industry representatives have stated that such requirements would violate the California constitution and other laws.  In response, the bill’s author, Senator Fran Pavley, last week agreed to amendments, which removed…

The end of the 2013-2014 legislative session is coming to a close.  Below are key deadlines for the Legislature and Governor:

  • August 15 was the last day for fiscal committees to meet and report bills to the Floor.
  • August 18-31 Floor Session only – no committees, other than conference committees and Rules committee, may meet for any purpose.
  • August 22 is the last day to amend bills on the Floor.
  • August 31 is the last day for each house to pass bills.
  • All bills passed by the Legislature by September 1, 2014 must be signed or vetoed by the Governor on or before September 30, 2014.

Below you will find summaries of each piece of oil and gas-related legislation, with an updated status for each bill. Stoel Rives has a dedicated team of professionals that will continue to track these bills.Continue Reading Updated Status of Oil and Gas-related Bills in California’s Legislature

SB-1281 was amended in the Assembly Committee on Appropriations on August 4, 2014.  A scheduled hearing on August 6 was postponed and held on suspense under Joint Rule 62(a).  As of this writing, a hearing has not yet been rescheduled. 

The following provides a snapshot of the proposed text of SB-1281:

  • Requires the use, or

…

The U.S. Government Accountability Office (“GAO”) released a report yesterday, July 28, 2014, that presents a need for the U.S. Environmental Protection Agency (“USEPA”) to update the Underground Injection Control class II program (“UIC Program”).  Under the UIC Program, the USEPA oversees and regulates groundwater affected by wells associated with oil and gas production.

The City of Compton is being sued for its ordinance banning hydraulic fracturing, effective on April 22, 2014.  (Western States Petroleum Association v. City of Compton, et al., Case No.BC552272.)   Although Compton is not the first city in the state to enact such a ban, Compton is the first city to be sued over it.  The Western States Petroleum Association (“WSPA”) filed a law suit on Monday, July 21 in Los Angeles County Superior Court.  The complaint states that such fracking bans are preempted by state regulation of well stimulation, Senate Bill 4 (“SB 4”) and the Division of Oil, Gas and Geothermal Resources’ (“DOGGR”) regulations.

WSPA alleges several other legal grounds for the ordinance’s invalidity.  The industry group claims that the city failed to give adequate notice of the ordinance, violating state and federal Constitutional due process guarantees.  Additionally, the lack of public debate when passing the ordinance violated the City’s policy powers.  Mineral rights holders were not given a forum for public input.Continue Reading Industry Group Sues Compton for Moratorium on Hydraulic Fracturing

On Friday, July 18, 2014, the Department of Conservation’s Division of Oil, Gas and Geothermal Resources (“DOGGR”) announced that it will review California’s Underground Injection Control (“UIC”) Program to ensure compliance with the requirements of the federal Safe Drinking Water Act (“the Act”).  DOGGR has primary authority under the Act to regulate underground injection wells, granted by the U.S. Environmental Protection Agency (“USEPA”).  DOGGR will conduct the review in conjunction with the USEPA, and expects the review to be completed in 12-18 months.

Originally enacted in 1974 and amended in 1996, the Act aims “to protect public health by regulating the nation’s public drinking water supply.”  (EPA, Safe Drinking Water Act).  The Act is applicable to well stimulation regulations because it has authority over ground water wells, excluding private wells that serve fewer than 25 people.  Protections are designed to prevent oil and gas production wastewater from being injected into drinking water aquifers.Continue Reading DOGGR to Review Well Stimulation Regulations to Ensure Compliance with Safe Drinking Water Act

On Friday, June 20, 2014, Governor Jerry Brown signed a public resources “trailer bill:”  Senate Bill 681 (“SB 681”).  Section 5 of the Bill extends the implementation deadline for the Department of Conservation’s Division of Oil, Gas, and Geothermal Resources (“DOGGR”).  The initial implementation date was set at January 1, 2015.  Under the new law…

Today, the U.S. Supreme Court denied petition for review in Rocky Mountain Farmers Union v. Corey. In Rocky Mountain Farmers, the Ninth Circuit addressed the constitutionality of California’s Low Carbon Fuel Standard (LCFS), focusing specifically on whether the LCFS discriminates against out-of-state businesses and thus violates the dormant Commerce Clause. Read our September…

This morning, the U.S. Supreme Court issued a surprising decision in Utility Air Regulatory Group v. Environmental Protection Agency on the U.S. Environmental Protection Agency’s (EPA) authority to regulate greenhouse gases under the Clean Air Act (CAA).  The Supreme Court has held that EPA cannot regulate stationary sources under the CAA Prevention of Significant…

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