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The California Geologic Energy Management Division (“CalGEM”), formerly known as the Division of Oil, Gas, and Geothermal Resources (“DOGGR”), is actively working on revising its regulations to better align its regulatory mandates with the new goals of Assembly Bill 1057, which requires CalGEM to focus on protecting public health and the environment, and less on efficient and effective oil and gas production. The scope and extent of these regulatory changes may have far-reaching consequences for the oil and gas industry in California. As part of its pre-rulemaking process, CalGEM is hosting community workshops and accepting public comments regarding its proposed regulatory changes.

I.      WHY IS CALGEM HOSTING WORKSHOPS?

While CalGEM’s materials on its pre-rulemaking process do not explain the exact nature or effect of these workshops, CalGEM’s workshops align with its new focus and November 2019 announcement of new oil and gas initiatives.  Effective January 1, 2020, Assembly Bill 1057 changed DOGGR’s name to CalGEM and updated CalGEM’s focus from development and production of petroleum resources to transitioning to a low-carbon future and protecting public health, safety and the environment.  In addition, last November CalGEM released a series of initiatives targeting certain oil and gas extraction methods, intended to safeguard public health and the environment.  The November initiatives include:

  1. Imposing a moratorium on new oil extraction wells that use high-pressure steam to break oil formations below the ground;
  2. Announcing new rules for public health and safety protections near oil and gas extraction facilities would be updated and strengthened; and
  3. Completing an independent audit of CalGEM’s permitting processes for well stimulation and underground injection control and a scientific review of pending well stimulation permits to ensure public health, safety and environmental protections are met prior to approving each permit.

These initiatives are in line with the State of California’s overall climate goal of achieving carbon neutrality by 2045.  California intends to meet this goal, in part, by decreasing fossil fuel dependence and consumption.
Continue Reading CalGEM’s Public Health Rulemaking Workshops

 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

On March 7, 2018, the California Division of Oil, Gas and Geothermal Resources (“DOGGR,” or “Division”) published a notice to operators (“NTO”) regarding updated guidelines for oilfield water quality data.  The NTO outlines procedures for submission of oilfield water quality data by operators, including required notices, injectate samples, formation water samples, documentation and final report and certification processes.
Continue Reading Good for You, Great for Me: DOGGR Issues Notice to Operators with Guidance for Collection of Oilfield Water Quality Data

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.
Continue Reading California Issues Revised Proposed Underground Gas Storage Regulations

On September 22, 2017, the California Division of Oil, Gas and Geothermal Resources (“DOGGR”) issued a Notice of Proposed Rulemaking for its Pipeline Testing Regulations.  The Notice announces that DOGGR proposes to adopt regulations for pipeline testing and safety, as required under Assembly Bill 1420.

Assembly Bill 1420 (“AB 1420”) went into effect on January 1, 2016, and requires DOGGR to review, evaluate, and update, where appropriate, its existing regulations regarding all active gas pipelines that are 4 inches or less in diameter, are located in sensitive areas, and are 10 years or older.  As a result of AB 1420, DOGGR conducted intensive review of the existing pipeline regulations and studied the economic impact and the impact on small businesses, among other potential effects of the proposed regulations.  As part of these studies, DOGGR “made an initial determination that the adoption of these regulations may have a significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states.”  Pipeline Testing Regulations: Notice of Proposed Rulemaking Action, at 7.Continue Reading DOGGR Releases Proposed Pipeline Testing Regulations

Stoel Rives’ Oil & Gas Team has been monitoring bills introduced by California legislators since the beginning of the 2017-2018 Legislative Session.  Below are the latest updates on a list of bills, summarized pursuant to the Legislative Counsel’s Digest, that our team has been following and will continue to monitor as the 2017-2018 Legislative Session proceeds.

Please also see our Renewable + Law post summarizing bills related to other energy topics here.

AB 476 (Gipson, D): Vehicular air pollution.

Status: Two-year bill; last amended April 17, 2017.

Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and non-vehicular sources and generally designates CARB as the state agency with the primary responsibility for the control of vehicular air pollution. Existing law further defines a heavy-duty vehicle as having a manufacturer’s maximum gross vehicle weight rating of 6,001 or more pounds, a light-duty vehicle as having a manufacturer’s gross vehicle weight rating of under 6,001 pounds, and a medium-duty vehicle as a heavy-duty vehicle having a manufacturer’s gross vehicle weight rating under a limit established by the state board. AB 476 instead would define a heavy-duty vehicle as having a manufacturer’s maximum gross vehicle weight rating of 26,001 or more pounds.Continue Reading Legislative Update: Oil & Gas Related Bills Introduced in the 2017-2018 Legislative Session

Stoel Rives’ Oil & Gas Team has been monitoring bills introduced by California legislators since the beginning of the 2017-2018 Legislative Session.  June 2, 2017 was the deadline by which the Legislature was required to pass bills out of the house of origin. Failing to meet that deadline does not automatically prevent a bill from proceeding through the legislative process; however, such failure will prevent the bill from being considered by the full legislature or the Governor during the first half of the Legislative Session.  Below is a list of bills, summarized pursuant to the Legislative Counsel’s Digest, that our team has been following and will continue to monitor as the legislative session proceeds.  This is an update to our February 23 post.

Please also see our Renewable + Law post summarizing bills related to other energy topics here.

AB 476 (Gipson, D): Vehicular air pollution.

Status: Two-year bill; last amended April 17, 2017.

Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and non-vehicular sources and generally designates CARB as the state agency with the primary responsibility for the control of vehicular air pollution. Existing law further defines a heavy-duty vehicle as having a manufacturer’s maximum gross vehicle weight rating of 6,001 or more pounds, a light-duty vehicle as having a manufacturer’s gross vehicle weight rating of under 6,001 pounds, and a medium-duty vehicle as a heavy-duty vehicle having a manufacturer’s gross vehicle weight rating under a limit established by the state board. AB 476 instead would define a heavy-duty vehicle as having a manufacturer’s maximum gross vehicle weight rating of 26,001 or more pounds.Continue Reading Update: Oil & Gas Related Bills Introduced in the 2017-2018 Legislative Session

A reported in a prior blog post, the Western States Petroleum Association (“WSPA”) sued the California Department of Conservation and the Division of Oil, Gas and Geothermal Resources (jointly, the “Department”) in Kern County Superior Court in January alleging that the Department’s oil field wastewater injection prohibitions violate WSPA’s members’ due process rights.  On March 20, 2017, a Kern County judge sided in favor of WSPA, granting an injunction on behalf of Plaintiffs and, separately and independently, on behalf of intervenor B.E. Conway Energy, Inc. and intervenor Sentinel Peak Resources California.  This means that the Department is currently barred from blanket enforcement of its Aquifer Exemption Compliance Schedule Regulations (“Regulations”).
Continue Reading Kern County Judge Grants Injunction, Blocking Blanket Enforcement of Oil Field Aquifer Exemption Regulations

February 17, 2017 marked the deadline by which legislators had to introduce bills for the first half of the 2017-2018 Legislative Session.  The Stoel Rives’ Oil & Gas Team has been and will continue to monitor bills throughout the current two-year session and will provide periodic updates as to the status of those bills.  Below is the current status and summary of some of the bills Stoel Rives is monitoring.

Please also reference our Renewable + Law post summarizing bills related to energy law here.

AB 55 (Thurmond, D):  Refineries: turnarounds

STATUS: Introduced December 5, 2016; referred to Committee on Labor & Employment on January 19, 2017

The California Refinery and Chemical Plant Worker Safety Act of 1990 requires every petroleum refinery employer to submit to the Division of Occupational Safety and Health a full schedule for the following calendar year of planned turnaround every September 15th. The employer is also required, upon the request of the division, to provide the division with specified documentation relating to a planned turnaround within a certain period of time. This bill would require the documents to be provided to the division upon request also include all documentation necessary to demonstrate compliance with the above-described skilled and trained workforce requirements.  A violation of the bill’s requirements would be a crime.Continue Reading Oil & Gas Related Bills Introduced in the 2017-2018 Legislative Session

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.
Continue Reading Oil Industry Caught in “Catch-22” with New Wastewater Injection Approval Requirements; Files Suit Against California Agencies

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