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 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

In March 2017, the California Air Resources Board (“ARB”) adopted regulations for Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (“Methane Regulations”), which impose emission controls for oil and gas facilities across the state.  Following the state rulemaking process, ARB and the San Joaquin Valley Air Pollution Control District (“Air District”) – and the Air District’s regulated stakeholders – jointly determined that local administration of the program would provide for more effective and expeditious implementation at a lower cost to businesses in the Air District.  Thus, in December 2017, the Air District adopted a registration program (Air District Rule 2260) to implement ARB’s regulations.
Continue Reading San Joaquin Valley Oil and Gas Operators Take Note: New Emission Rules and Compliance Deadlines

On September 14, 2017, Senate Bill 774 (“SB 774”) was ordered inactive on request of Assembly Member Calderon.  The bill, which proposed creation of the new California Toxic Substances Board (“CTS Board”), will not become law this session, and we will continue to monitor this legislation if it becomes active again during the next legislative session.

Previously the bill was amended in July 2017 to delete a section of the bill that would have allowed the new CTS Board to adopt or amend relevant regulations.  Under the revised version of SB 774, the CTS Board is not permitted to adopt regulations and is no longer authorized to draft, review, or update hazardous waste management plans.  Gov. Code § 24179 (proposed).  These amendments to the bill are seen as a weakening of the measure because they narrow the proposed CTS Board’s jurisdiction and authority.  Industry groups continue to oppose the bill, though, stating that the CTS Board will continue to have too much authority, even with the new amendments.  We will continue to monitor this legislation as it makes its way through the Legislature.  Here’s our original post:Continue Reading Update on a Prior Post: SB 774 is Tabled for the Legislative Session; No Toxic Substances Board

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

On March 23, 2017, the California Air Resources Board (“ARB”) adopted regulations for Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (“Methane Regulations”).  The Methane Regulations impose emission controls on offshore and onshore oil production and processing facilities and at natural gas compressor stations, underground storage facilities, and gathering and boosting stations.
Continue Reading ARB Adopts GHG Emission Standards for Oil and Gas Facilities; Operators Wary of Costs

On August 22, the State Water Resources Control Board (“State Water Board”) held an informational meeting to answer questions and get the public up to speed on California’s new surface water diversion reporting requirements. As we previously reported, all surface water diverters will be required to report their diversions annually instead of every three years, as previously required.

Below are three things you need to know about the new requirements:

  1. The requirements will be phased in depending on how much you divert.

The measurement requirements of the regulation apply to all water right holders who divert more than 10 acre-feet of water per year and will be phased in between January 2017 and January 2018. Large diverters with a right to take 1,000 acre-feet of water or more per year must have a measuring device in place by January 1, 2017, while those with rights for 100 to 1,000 acre-feet have until July 1, 2017 and those with rights to take 10 to 100 acre-feet must comply by January 1, 2018.
Continue Reading Three Things You Need to Know About California’s New Surface Water Diversion Reporting Requirements

On July 14, 2016, the California Environmental Protection Agency (“EPA”) announced a “landmark set of regulations to strengthen workplace and environmental safety at oil refineries across the state.”  The refinery safety rules consist of two sets of regulations:  one amending the California Occupational Safety & Health (“OSHA”) worker safety regulations as they apply to refineries, and the other revising the California Accidental Release Prevention program (“CalARP”) regulations.  The regulations implement recommendations from Governor Jerry Brown’s Interagency Working Group on Refinery Safety, which was convened following a chemical release and fire at a refinery in August 2012.
Continue Reading Proposed Oil Refinery Regulations Tackle Safety Concerns

June 3, 2016 was the final deadline for oil- and gas-related bills introduced in the 2015-2016 legislative session to move through their house of origin.  Below is a summary of those bills, many of which relate to natural gas storage following the Aliso Canyon natural gas well leak.  Stoel Rives is monitoring these bills and will provide updates as the bills move through the legislative process.
Continue Reading Updated Status of Oil- and Gas-Related Bills Proposed in California’s 2015-2016 Legislative Session

Not to be outdone by its federal counter-parts, the California Air Resources Board (“ARB”) released Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (“proposed rule”) for methane emissions on Tuesday, May 31, following a slew of recent federal regulations targeting reduction of methane emissions.  Cal. Code Regs. tit. 14, §§ 95665-95676 (proposed).  The federal Bureau of Land Management released proposed regulations for reducing waste and methane emissions in oil and gas operations in January 2016.  Then, in May 2016, the U.S. Environmental Protection Agency also began regulating methane when it released final regulations to curb emissions of methane and volatile organic compounds from additional new, modified, and reconstructed sources in the oil and gas industry.

While methane is the current emissions target for regulators’ greenhouse gas reduction efforts, the oil and gas sector is the industry target.  The proposed rule is part of California’s plan to reduce emissions from short-lived climate pollutants, including methane emissions, by 40-45% by 2025.  This follows the Obama Administration’s similar methane emissions reduction goal.Continue Reading The Other Shoe Just Dropped on Methane Emissions from the Oil and Gas Industry

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