SB4 Implementation & Kern County Oil and Gas EIR Update

Air and Waste Management Association – Golden Empire Chapter

Western States Petroleum Association // wspa.org // @wspaprez

9 // 16 // 2014

America’s Energy Future

Western States Petroleum Association // wspa.org // @wspaprez

For the first time in nearly two decades, we now produce more oil here at home than we buy from the rest of the world, and our all-of-the-above strategy for new American energy means lower energy costs.

President Barack Obama, Dec 2013

The Best Of Times

Western States Petroleum Association // wspa.org // @wspaprez

U.S. crude oil production has reached its highest point since 1997, due to production from shale and other tight rock formations, while reducing imports to their lowest level in more than 20 years.

American Petroleum Institute

The Worst Of Times…

Western States Petroleum Association // wspa.org // @wspaprez

The Worst Of Times…

Western States Petroleum Association // wspa.org // @wspaprez

The Worst Of Times…

Western States Petroleum Association // wspa.org // @wspaprez

The goal here is not to win. The goal here is to destroy these people, we want a smashing victory.

Tom Steyer

WSPA On Passing Of Senate Bill 4

Western States Petroleum Association // wspa.org // @wspaprez

California now has the most stringent regulations on hydraulic fracturing in the country. However, SB 4 gives California an environmental platform to responsibly develop the potentially enormous energy resource contained in the San Joaquin Valley’s Monterey Shale Formation.

Catherine Reheis-Boyd, WSPA President

Western States Petroleum Association // wspa.org // @wspaprez

Hydraulic FracturingCampaign

Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4

REQUIREMENTS

Prior notification to surrounding land owners

Mandatory disclosure of fracturing fluid with mechanisms for trade secret protections

Well integrity testing before and after fracturing

Groundwater Monitoring Requirements

Development of environmental impact report

Independent, science-based study of hydraulic fracturing

Senate Bill 4 Timeline To July 2015

Western States Petroleum Association // wspa.org // @wspaprez

Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4 Implementation

STAGES OF SB 4

By January 1, 2014

Emergency rules and regulations in place

Well Stimulation Notices required to conduct operations

By January 1, 2015

Completion of a comprehensive independent scientific study on well stimulation treatments

DOGGR to adopt permanent well stimulation rules and regulations

DOGGR to enter into formal agreement with other agencies to delineate regulatory authority

State Water Resources Control Board to develop groundwater monitoring model criteria

Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4 Implementation

STAGES OF SB 4 (CONTINUED)

By July 1, 2015

Permanent well stimulation regulations take effect

DOGGR shall certify an environmental impact report (EIR) as lead agency, regarding any potential impacts of well stimulation in the state

By January 1, 2016

State Water Resources Control Board shall implement regional groundwater monitoring programs

DOGGR to have Internet Web site operational for operators to report specific information related to well stimulation treatment

Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4 Implementation

Current Status

Permanent Regulations

Expect finalization of those rules by November 15th

EIR

Program level document

Announced plan is to circulate it sometime in the fall

SWRCB Groundwater Monitoring Model Criteria Development

Two public workshops held

Funding for resources needed to complete included in the state budget

Western States Petroleum Association // wspa.org // @wspaprez

BLM EIS Process

Litigation brought by the Center for Biological Diversity halted lease sales in California and led to a court-ordered NEPA process and independent scientific study on well stimulation.

BLM held a series of public hearings in the first quarter of 2014 to educate the public on the impact of hydraulic fracturing, and to collect comment

BLM contracted with the California Council for Science and Technology to conduct the independent scientific study which was primarily a literature review of peer-reviewed papers on hydraulic fracturing and other well stimulation technologies.

Western States Petroleum Association // wspa.org // @wspaprez

BLM CCST Study

COMPLETED LATE AUG 2014

Found no record of impacts from well stimulation in California

CCST study was inclusive and considered extensive public comments

WSPA saw CCST study as one of many steps towards safe, efficient energy production in California

Western States Petroleum Association // wspa.org // @wspaprez

Kern County Role In New RegulationsCEQA EIR DEVELOPMENT

Kern County is preparing an Environmental Impact Report that provides oil producers extended CEQA coverage

Oil industry is supporting and financing the process

Project consideration slated for Summer of 2015

Process will assist in development of a statewide EIR

In 2014, a coalition in support of energy production formed the Kern Citizens for Energy to educate local officials and demonstrate community’s wide support

Western States Petroleum Association // wspa.org // @wspaprez

Kern Oil & Gas EIR

New Local Coalitions industry

Kern Citizens for Energy is a grassroots group established to support the oil and gas industry

The Kern Oil & Gas EIR will ensure local control of planning

decisions

KCE will educate the community and provide fact based arguments to opposition claims

www.KernCitizensforEnergy.com

@WSPAPREZFollow along on Twitter