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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

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…

SB 4 did not place a moratorium on the use of hydraulic fracturing or other well stimulation treatments.  SB 4 specifically states that so long as an operator complies with the notification and documentation requirements added to the Public Resources Code, the Division of Oil, Gas & Geothermal Resources (“DOGGR”) shall allow well stimulation activities…

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