Yesterday, July 7, the State Water Resources Control Board (“Water Board”) adopted new requirements (“Model Criteria”) for groundwater monitoring in areas where oil and gas stimulation activities occur, such as hydraulic fracturing. The Water Board was required to develop these requirements pursuant to Senate Bill 4 (“SB 4”).

The requirements cover a wide

The State Water Resources Control Board (“Water Board”) has recently released recommendations from the Lawrence Livermore National Laboratory (“LLNL”) on Model Criteria for Groundwater Monitoring. Pursuant to Senate Bill 4 (“SB 4”), the Water Board is required to develop regulations for sampling, testing, and monitoring groundwater during hydraulic fracturing operations. The bill requires groundwater monitoring at scales from single well monitoring to regional monitoring.

The recommendations are designed to assist the Water Board in taking a scientifically credible approach in developing groundwater monitoring regulations. The authors acknowledge the immense challenge of developing a set of regulations to govern well stimulation in California due to the unique and dynamic nature of each oil field.

The report recommends a tiered approach to groundwater monitoring where higher quality water is monitored more intensively than lower quality water. The monitoring would be conducted through one upgradient and two downgradient wells within a one-half to one-mile radius of the stimulated oil well.
Continue Reading State Water Board Receives Groundwater Monitoring Recommendations from Experts

The clamor over hydraulic fracturing continued Wednesday as environmental activists filed another lawsuit to limit oil and gas development in California.  The lawsuit, filed by Earthjustice on behalf of the Center for Biological Diversity and Los Padres ForestWatch, challenges a plan to open portions of federal land in California to oil and gas operations.

The groups claim that the Bureau of Land Management (“BLM”) did not consider the environmental impacts of hydraulic fracturing when it approved a Resource Management Plan, which could potentially open a large area of federal land in the state’s most oil-rich regions to leasing.  The plan found that “overall, in California, for industry practice of today, the direct environmental impacts of well stimulation practice appear to be relatively limited.”

In 2013, a federal judge ruled that the BLM violated the National Environmental Policy Act when it issued oil leases in Monterey and Fresno counties without considering the environmental impact of hydraulic fracturing.  This ruling has led to a de facto moratorium on new leasing in California on federal lands.
Continue Reading Yet Another Lawsuit Seeking to Limit California Oil Development

On Tuesday, May 19, 2015, the State Water Resources Control Board (“Water Board”) held a Public Workshop regarding the proposed Draft Model Criteria for Groundwater Monitoring (“Model Criteria”). In this meeting, the Water Board heard comments from stakeholders who voiced their support or concern regarding the Model Criteria.

Dr. Steven Bohlen, the State Oil & Gas Supervisor, on behalf of the Division of Oil, Gas & Geothermal Resources (“DOGGR”) provided the Water Board with a variety of statistics regarding well stimulation operations that have occurred since DOGGR’s Interim Regulations went into effect on January 1, 2014. Dr. Bohlen reported that over 1,500 Interim Well Stimulation Treatment Notices have been received by DOGGR since January 1, 2014. Additionally, 809 well stimulation operations have been conducted and 22 monitoring plans have been approved. Furthermore, about 200 acre feet of water has been used for well stimulation operations.Continue Reading Industry and Environmental Groups Make Pitch to Water Board Regarding Draft Model Criteria for Groundwater Monitoring

On Friday, April 3, Citadel Exploration filed a request for dismissal in its suit against San Benito County’s Measure J.  Measure J was passed in the November 2014 election and is a ban on high-intensity petroleum operations, which includes hydraulic fracturing, acid well stimulation, and cyclic steam injection.  Citadel initiated this suit in February 2015, arguing that state law preempted Measure J, which is a county law.

The request for dismissal does not carry the weight of precedent or indicate that Measure J is legal, however.  It is still possible for another party to challenge the measure under other circumstances and stating the same legal arguments, such as the measure constitutes an illegal take of property without just compensation.Continue Reading Citadel Drops Lawsuit Against San Benito Fracking Ban

On Tuesday, March 10, California Environmental Protection Agency Secretary Matthew Rodriquez and California Natural Resources Agency (“CNRA”) Secretary John Laird testified before a joint State Senate committee hearing.  At the hearing before the Natural Resources & Water Committee and the Environmental Quality Committee, Rodriguez and Laird confirmed that there has been no drinking water contamination due to oil and gas disposal well injection.  This finding is reiterated in a memo from the California EPA: “To date, preliminary water sampling of select, high-risk groundwater supply wells has not detected any contamination from oil production wastewater.”  (Memo from Cal. EPA, at p. 1 (Mar. 2, 2015).)

DOGGR and USEPA Correspondence

On Monday, March 9, the U.S. Environmental Protection Agency (“USEPA”) sent a letter to California’s Division of Oil, Gas and Geothermal Resources (“DOGGR”) approving DOGGR’s plan to regulate Class II underground injection control (“UIC”) wells.  The USEPA’s letter responds to DOGGR’s letter to the USEPA which presented California’s plan to revamp its regulatory scheme for Class II UIC wells in order to come into compliance with the federal Safe Drinking Water Act (“SDWA”).  The USEPA stated that they are “pleased that you [California] have initiated action to implement the plan.”  (USEPA Letter to DOGGR, at p. 1 (Mar. 9, 2015).)Continue Reading Regulators Confirm: No Drinking Water Contamination from Oil & Gas Disposal Wells

On Tuesday, March 3, twelve underground injection control (“UIC”) wells in California’s Central Valley, specifically in Kern County, were shut down in order to protect subsurface drinking water from potential contamination.  These shut-ins occurred just one day after a letter from Matthew Rodriquez, Secretary of the California Environmental Protection Agency, to the Governor was published,

On Friday, February 27, 2015, Citadel Exploration, Inc. (“Citadel”) filed suit against San Benito County in the County’s Superior Court, arguing that state law preempts Measure J, a county ordinance that prohibits hydraulic fracturing.  Hydraulic fracturing, included in the definition of well stimulation treatment, is being regulated by California’s Senate Bill 4 (“SB 4”). 

February 27, 2015 was the deadline for lawmakers to introduce legislation to the 2015-2016 California Legislative Session and several bills related to oil and gas activities were introduced.  Below is a summary of those bills. Stoel Rives is monitoring these bills and will provide periodic updates as the bills move through the legislative process.

SENATE BILLS

SB-13 (Pavley):  Groundwater

This bill would specify that the State Water Resources Control Board is authorized to designate a high- or medium-priority basin as a probationary basin. This bill would provide a local agency or groundwater sustainability agency 90 or 180 days, as prescribed, to remedy certain deficiencies that caused the board to designate the basin as a probationary basin. This bill would authorize the State Water Resources Control Board to develop an interim plan for certain probationary basins one year after the designation of the basin as a probationary basin.Continue Reading Status of Oil and Gas-related Bills Proposed in California’s 2015-2016 Legislative Session