On February 12, 2018, the California Department of Conservation (“DOC”) issued a public notice announcing revisions to the text of the proposed regulations in the rulemaking for California Underground Gas Storage Projects. This rulemaking follows a saga of rulemakings for underground gas storage projects in the state – both emergency and general rulemakings – which all began in early 2016. The rulemakings were spurred by the underground gas storage leak at the Aliso Canyon facility in southern California, which was discovered on October 23, 2015 and continued leaking until February 2016.
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Oil Industry Caught in “Catch-22” with New Wastewater Injection Approval Requirements; Files Suit Against California Agencies
On January 19, 2017, three oil industry trade groups filed suit against the California Department of Conservation and the Division of Oil, Gas and Geothermal Resources (“DOGGR”) (jointly “Department”) in Kern County Superior Court alleging that DOGGR’s oil field wastewater injection regulations violate operators’ constitutional rights. Western States Petroleum Association, California Independent Petroleum Association, and Independent Oil Producers Agency (collectively “Plaintiffs”) seek “declaratory and injunctive relief to prevent the arbitrary and unlawful shut-in of potentially thousands of Class II injection wells in violation of Plaintiffs’ members’ due process rights.” Complaint at 1.
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