This is the first in a series of posts to provide the latest on environmental and legal developments affecting oil and gas operations and development and other industries in Los Angeles and adjacent counties, as well as the southern San Joaquin Valley. In this post, we’ll provide an update on legislation proposed in 2019 that affects industry in southern California, implementation of significant legislation previously adopted, and initiatives in Los Angeles to limit oil and gas operations.

AB 617 Implementation

The stated goal of AB 617 (Garcia, 2017) is to protect communities with disproportionate levels of air emissions and provide stricter penalties for certain infractions by regulated entities. In line with AB 617, the California Air Resources Board (CARB) is implementing the Community Air Protection Program and finalized its first annual selection of communities for participation in the Program in September 2018. Air districts are now identifying candidate communities to be considered for the second year of the Community Air Protection Program. CARB isn’t likely to vote on the selections until later in 2019.

In the first round of community selection, South Coast Air Quality Management District (South Coast Air District) chose (1) Wilmington/West Long Beach/Carson; (2) San Bernardino/Muscoy; and (3) Boyle Heights/East Los Angeles/West Commerce. On September 6, 2019, South Coast Air District’s Governing Board approved Community Emission Reduction Programs for these areas. Most of the plans set goals for action, and enhanced enforcement, rulemaking and incentive grants will follow. The plan for San Bernardino/Muscoy focuses on truck, rail bus traffic, warehouses (as an indirect source), concrete and asphalt batch plants, and rock and aggregate plants. The plan for Boyle Heights/East Los Angeles/West Commerce focuses on neighborhood and freeway truck and bus traffic, railyards, metal processing facilities, rendering facilities, auto body shops, and general industrial facilities, along with reducing exposure at schools, childcare facilities, community centers, libraries, and public housing projects.
Continue Reading Southern California Environmental Law Update

After years of investigation, the San Diego Regional Water Quality Control Board (“Regional Board”) issued a cleanup and abatement order (“CAO”) to San Diego Gas & Electric Company (“SDG&E”) after finding that SDG&E caused or permitted waste to be discharged into the San Diego Bay, and thereby created, or threatened to create, pollution and nuisance…

INTRODUCTION

California apartment and other residential rental property landlords and their agents (e.g., property managers) with more than 10 employees need to comply with the State’s Safe Drinking Water and Toxic Enforcement Act (“Prop 65”).

Today, many landlords comply with Prop 65 by posting signs in building common areas that meet specific size,…

On April 29, 2019, the U.S. Department of Interior, Bureau of Land Management (BLM) released a Draft Supplement Environmental Impact Statement (Draft SEIS) analyzing potential impacts of hydraulic fracturing for future oil & gas development within the 400,000 acre Bakersfield Field Office Planning Area. That planning area includes Fresno, Kern, Kings, Madera, San Luis Obispo, Santa Barbara, Tulare and Venture counties.

The Need for a Supplemental EIS

The Draft SEIS is the latest development in BLM’s ongoing management of oil and gas resources and supplements BLM’s 2012 Final EIS, associated with BLM’s 2014 Resources Management Plan (RMP). The 2014 RMP was challenged by the Center for Biological Diversity and Los Padres ForestWatch (Civ. No. 2:15-cv-04378-MWF/JEM). In 2016, the U.S. District Court for the Central District of California issued a summary judgment ruling that BLM had failed to take the required “hard look” at hydraulic fracturing. In 2017, the parties reached a settlement agreement that kept in place the 2014 RMP and required BLM to prepare a SEIS to analyze the environmental consequences of hydraulic fracturing.

BLM issued the requisite Notice of Intent (NOI) to prepare that Draft SEIS in August 2018. That same NOI also contemplated a possible amendment to the 2014 RMP. However, in the Draft SEIS determined that the environmental impacts of integrating hydraulic fracturing into future BLM leasing and development decision did not conflict with the earlier RMP and amendment was unnecessary.
Continue Reading Be Careful of What You Wish For – Environmental Groups Complain about the Environmental Study of Hydraulic Fracturing That They Sued BLM to do

The Alameda Superior Court recently declared portions of the Warren-Alquist Act unconstitutional in Communities for a Better Environment v. Energy Resources Conservation and Development Commission (CBE v. Energy Commission).  The Court found that California Public Resources Code section 25531(a) and a portion of section 25531(b) ― provisions of the Warren-Alquist Act concerning judicial review ―…

The 2019-2020 California Legislative Session has officially reached its first deadline. February 22, 2019 marked the deadline by which bills could be introduced for the first half of the Session. Lawmakers will begin Spring Recess April 12 and reconvene April 22. The last day for bills to be passed out of the house of origin is May 31, 2019.

Below is a list of some of the key bills Stoel Rives’ Oil & Gas Team will be monitoring throughout the Legislative Session.

AB 255 (Limòn, D) and SB 834 (Jackson, D): State lands: leasing: oil and gas.

Status: Introduced January 23, 2019; referred to Committee on Natural Resources February 7, 2019.

The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act authorizes the administrator for oil spill response to offer grants to a local government with jurisdiction over or directly adjacent to waters of the state to provide oil spill response equipment to be deployed by a certified local spill response manager, as provided. This bill would provide that Native American tribes and other public entities are also eligible to receive those grants.

AB 353 (Muratsuchi, D): Oil and gas: Definitions: additive.

Status: Introduced February 4, 2019; awaiting referral.

Under current law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Current law defines various terms for those purposes, including “additive.” This bill would make a non-substantive change to that definition.
Continue Reading Oil & Gas Related Bills Introduced in the 2019-2020 Legislative Session

On November 6, 2018, the State Water Resources Control Board adopted an amendment to the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Industrial Activities (General Permit). The General Permit Amendment addresses the implementation of previously-adopted Total Maximum Daily Loads (TMDLs), the new federal Sufficiently Sensitive Methods Rule, and statewide Compliance Options. These changes take effect on July 1, 2020.
Continue Reading 2018 IGP Amendments – Everything You Need to Know

On September 24, 2018, in two separate decisions, the Sixth Circuit Court of Appeals found that coal ash wastewater that enters groundwater and eventually travels to navigable waters through the groundwater is not regulated under the Clean Water Act (“CWA,” or the “Act”).  In these decisions, the Sixth Circuit expressly disagrees with recent holdings from the Fourth and Ninth Circuits, paving the way for potential Supreme Court review.

The CWA requires a permit for discharge of pollutants into navigable waters.  33 U.S.C. §§ 1251 et seq.  At issue in both Sixth Circuit cases is whether the CWA extends to regulate indirect discharge into a navigable water, through groundwater.  Rejecting the “hydrological connection” theory, the Sixth Circuit found that groundwater is not subject to regulation under the CWA because it is not a point source.  Therefore, the discharge of pollutants into groundwater, and subsequent travel to a navigable water, also does not fall within the scope of the CWA.Continue Reading Sixth Circuit Limits Scope of CWA, Breaking with Fourth and Ninth Circuits

Environmental groups have obtained a favorable Clean Water Act (“CWA”) ruling from the U.S. District Court for the Central District of California, which can be viewed as an expansion of jurisdiction for stormwater permitting for industrial sources.  In the Order, issued on August 9, 2018, Judge Stephen V. Wilson held that if the U.S. Environmental Protection Agency (“EPA”) determines that stormwater discharges “cause or contribute to violations of water quality standards,” then regulators must limit such stormwater discharges under the mandates of the CWA.  EPA is required to regulate stormwater discharges through the National Pollution Discharge Elimination System (“NPDES”) permitting scheme, and does not have discretion to address the pollution through other methods.
Continue Reading Court Finds that Privately-Owned Industrial Stormwater Discharges Require Clean Water Act Permits

 On July 27, 2018 the California Division of Oil, Gas, and Geothermal Resources (“DOGGR”) issued two notices of proposed rulemaking action applicable to oil and gas operations in the state.  DOGGR released updated underground injection control (“UIC”) regulations, as well as proposed regulations for idle well testing and management.

UIC Regulations

DOGGR supervises the drilling, operation, maintenance, and plugging and abandonment of onshore and offshore oil, gas, and geothermal wells.  Wells that inject fluid for the purposes of enhancing oil or gas recovery, re-pressuring oil or gas reservoirs, or disposing of wastewater and other byproducts associated with oil and gas production – referred to as injection wells or UIC wells – fall within DOGGR’s regulatory scope.Continue Reading DOGGR Issues Revised Regulations for UIC and Idle Wells

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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.