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

As an update to our prior blog post, on January 17, 2017, the California Division of Oil, Gas and Geothermal Resources (“DOGGR”) released a letter sent to notify the U.S. Environmental Protection Agency (“EPA”) of California’s progress toward compliance with the Safe Drinking Water Act.  DOGGR stated that it will allow oil field wastewater

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

February 19, 2016 was the deadline for lawmakers to introduce legislation to the 2015-2016 California Legislative Session, and the Legislature’s ever-growing appetite for regulating the energy industry in California shows no signs of being satiated anytime soon.  More bills than ever proposing to add new regulations on the oil and gas industry have been introduced.  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.

ASSEMBLY BILLS

AB 1759 (Bonta): Hydrogen fluoride: notice of use: substitution

This bill would require an owner or operator of an oil refinery that uses hydrogen fluoride, hydrofluoric acid, or modified hydrofluoric acid in its operations to send out biannual notices to each business, school, child care facility, library, church, community facility, senior facility, and residence within a 3.5-mile radius of the refinery.  The cost of the notice must be paid by the owner or operator of the refinery, and the owner or operator must file a copy of the notice and distribution list with the California Air Resources Board.Continue Reading Status of Oil- and Gas-Related Bills Proposed in California’s 2015-2016 Legislative Session

On Thursday, December 10, environmental organizations filed a complaint against Kern County in California Superior Court alleging that the County violated the California Environmental Quality Act (“CEQA”) by preparing a “grossly inadequate” Environmental Impact Report (“EIR”) for its new oil and gas rules.  The Sierra Club, Center for Biological Diversity, and the Natural Resources Defense Council (jointly “the Sierra Club”), along with several other local organizations, take issue with the programmatic approach of the EIR, and urge a well-by-well environmental analysis.  This lawsuit comes as no surprise to the County.  Environmental groups have a long history of opposing oil and gas development in Kern County, which produces over 70% of all the oil in California.

This lawsuit comes in reaction to a Kern County zoning ordinance amendment which harnessed broad local support.  On November 9, 2015, the Kern County Board of Supervisors unanimously approved amendments to Title 19 of the Kern County Zoning Ordinance which provides a streamline permitting process for oil and gas operations.  Notably, the new ordinance encourages oil and gas producers to work with surface owners to agree on a development plan, promoting cooperation and transparency.  The amendments also required the County to conduct an extensive environmental analysis pursuant to CEQA.  The Board of Supervisors certified the Final EIR after holding multiple public Scoping Meetings and reviewing various mitigation measures.Continue Reading Environmental Challenge Blasts Kern County Oil and Gas Rules

On Friday, November 6, three environmental organizations filed suit against the City of Los Angeles in California Superior Court for the County of Los Angeles. The three groups, Youth for Environmental Justice, the Center for Biological Diversity and the South Central Youth Leadership Coalition, allege that the “City of Los Angeles has for years employed a pattern or practice of rubber stamping oil-drilling applications in violation of the California Environmental Quality Act (“CEQA”).” Verified Complaint and Petition for Writ of Mandate, at 2. By categorically exempting oil-drilling projects from CEQA, the Complaint states that L.A. has permitted a disproportionately high number of drilling operations in low-income communities and neighborhoods where people of color reside. According to the environmental groups, this is a racially discriminatory practice because the City of L.A. exhibits a pattern of “developing and approving weaker conditions for drill sites in communities where a vast majority of the residents identify as Latino and black.” Id. at 26.

The Complaint focuses especially on the risks of drilling operations on children. “Because  they breathe at a higher rate, and drink more water and consume more food in proportion to their body size, children receive higher doses of toxins and contaminants than adults.” Id. at 12-13. Further, in contrast to the public outcry over fracking, the environmental groups note that the emissions from oil and gas development in L.A. are associated with “traditional drilling,” not necessarily hydraulic fracturing. The Complaint also addresses the alleged risks of acidizing and gravel packing techniques, though.
Continue Reading Environmental Justice Lawsuit Accuses L.A. of Discriminatory Oil Permitting

Today, July 30, the Center for Biological Diversity (“CBD”) filed a complaint in Sacramento County Superior Court against the Division of Oil, Gas & Geothermal Resources (“DOGGR”). CBD claims, among other things, that DOGGR failed to comply with Senate Bill 4 (“SB 4”) by releasing its Final EIR regarding oil and gas well stimulation treatment prior to the release of a state-mandated Independent Study.

This lawsuit strikes us as more of a shout out to the Legislature and the Governor to highlight CBD’s ongoing disappointment with SB 4, more than anything else. CBD mistakenly construes SB 4 to require DOGGR to analyze and incorporate the Independent Study’s findings into its Final EIR, when no such requirement is found in the law. Indeed, by its terms, SB 4 only requires DOGGR to comply with the following requirements relating to the EIR:

  • The EIR shall be certified by the division as the lead agency, no later than July 1, 2015.
  • The EIR shall address the issue of activities that may be conducted as defined in Section 3157 and that may occur at oil wells in the state existing prior to, and after, the effective date of this section.
  • The EIR shall not conflict with an EIR conducted by a local lead agency that is certified on or before July 1, 2015.

(Pub. Resources Code, § 3161.) The Legislature, not the Sacramento County Superior Court, is the proper body to which this additional request should be made, as there is currently no law mandating it.
Continue Reading Activists ask Court to Scrap EIR and Stop Fracking

According to several news organizations, Governor Brown has announced plans to form a new panel to review the recent well stimulation study conducted by the California Council on Science and Technology (“CCST”).

The study found that while there is little evidence that hydraulic fracturing is directly linked to widespread negative health and environmental impacts, additional

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