Actions reflect expanded mission and vision for regulators
November 20, 2019 - SACRAMENTO – The Department of Conservation’s Division of Oil, Gas and Geothermal Resources – which will be renamed the Geologic Energy Management Division, or CalGEM, effective Jan. 1, 2020 – on Tuesday announced a series of initiatives to safeguard public health and the environment, advance California’s goal to become carbon-neutral by 2045 and manage the decline of oil production and consumption in the state.
“These actions reflect an evolution in CalGEM’s mission that emphasizes public health and safety, environmental protection and reducing climate impacts associated with oil production,” said Natural Resources Secretary Wade Crowfoot.
- A halt of approvals of new oil extraction wells that use high-pressure steam to break oil formations below the ground, a process linked to recent oil leaks in Kern County
This moratorium prohibits new extraction wells that use a high-pressure cyclic steaming process to break apart a geological formation to extract oil. During the moratorium, regulators will consult with experts to examine records from recent leaks of oil and water, known as surface expressions, in the Cymric oil field in Kern County to determine whether high-pressure cyclic steaming can be done safely and in compliance with recent regulations that make surface expressions illegal. Oil and gas regulators could require certain safety practices, update regulations to impose new rules, or prohibit the practice altogether.
Surface expressions are illegal under new regulations that took effect April 1. CalGEM has issued several notices of violation for spills in the Cymric field, and is partnering with independent experts from the Lawrence Livermore and Sandia National Laboratories to assess underlying conditions in the Cymric formation. Simultaneous to this moratorium, CalGEM is also proactively assessing the safety of existing wells using high-pressure steaming above the fracture pressure of a formation. Wells that use cyclic steaming at lower pressures are not affected by the moratorium.
2. Rules for public health and safety protections near oil and gas extraction facilities will be updated and strengthened
“We are updating rules to better ensure that public health and safety are protected as we continue the transition away from carbon extraction to a renewable energy future,” Crowfoot said.
3. Pending applications to conduct hydraulic fracturing and other well stimulation practices will be independently reviewed
The 2019 Budget Act appropriated $3 million in funding for two studies. One is a first-ever study to identify strategies for managing the decline in the demand and supply for fossil fuels. The second study will examine ways to significantly reduce emissions from vehicles, including transitioning to zero emission vehicles and reducing vehicle miles traveled. The California Environmental Protection Agency is developing the scope for these studies together with other state agencies and the University of California, with input gathered through a public process.
In recent months, the Governor also has:
- Made the state’s first major workforce investment of $165 million over five years to help enable economic transition away from dependence on fossil fuels.
- Changed leadership overseeing oil and gas policy at CalGEM and the Department of Conservation.
- Signed five bills to improve regulatory oversight of oil and gas extraction in the state.
- Strongly opposed President Trump’s effort to expand oil and gas extraction on federal lands within California.
- Initiated the most comprehensive air monitoring campaign in the country in communities located near oil and gas operations.
- Protected the state’s clean car standards against efforts by the Trump Administration to roll back greenhouse gas emission standards that protect public health and combat climate change.
- Supported a series of regulations and incentives directed at supporting zero emission transportation alternatives to facilitate the transition from petroleum.