LOS
ANGELES, Aug. 5, 2024 /PRNewswire/ -- Oil
regulators approved 35 new oil and gas well drilling
permits in the second quarter of 2024, about half of which
were potentially illegally issued within the community setback
zone, up from zero new drills approved in the same quarter last
year, according to Consumer Watchdog and FracTracker Alliance. In
addition, the pace of plugging wells slowed by a quarter over the
same period last year, though the issuance of all types of permits
in total fell 41%. (See Table 1 at bottom.)
The groups took issue with Newsom's oil well
regulator, the California Geologic Energy Management Division
(CalGEM), for undermining two state laws banning new oil well
permits near communities and requiring adequate bonding of oil
wells.
In a letter to the Governor, they questioned the influence of a
former top oil regulator who went to work for two oil drillers who
benefited from CalGEM's decisions and called for an independent
investigation of the revolving door.
In June, CalGEM violated SB 1137 (Gonzalez)—the public health
setback law of 3,200 feet between drilling and communities—hours
after the ban on community drilling took effect when the oil
industry withdrew its referendum to overturn the law. CalGEM
approved 17 permits within the setback zone.
In addition, CalGEM is failing to implement state law
requiring adequate bonding for oil wells under California Resource
Corporation's (CRC) recently completed acquisition of Aera Energy,
making the company California's
top holder of idle wells–wells that no longer produce oil and could
soon become orphan. The Orphan Well Prevention Act requires that
drillers who acquire the "right to operate" a low-producing or idle
well be responsible for full bonding but CalGEM is refusing to
apply the law.
"New drilling locks California
into decades of continued fossil fuel consumption and the
environmental impacts that entails," said Kyle Ferrar, Western
Program Director at FracTracker Alliance. "The state should not be
allowing operators to drill new oil and gas wells, particularly
when the state is so under-bonded to deal with cleaning up existing
wells."
"Governor Newsom needs to get control of CalGEM, or its
failure to regulate oil wells will stick to him like oil tar," said
Liza Tucker, energy director at
Consumer Watchdog.
Another 14 permits were issued to Berry Petroleum. Jason Marshall, a former top Department of
Conservation regulator who had served as Acting Director
of CalGEM and its predecessor agency more than once over 28
years, left to become Vice President of Corporate Affairs at Berry
in 2020. While at CalGEM, groups criticized him for
allowing lax permitting and regulation, and for conflicts of
interest. In May, Marshall joined California Resources
Corporation (CRC) as Vice President of Regulatory Affairs, helping
to leverage the state's decision not to enforce The Orphan Well
Prevention Act just as CRC acquired Aera.
"Will Governor Newsom allow Jason
Marshall to continue to run CalGEM or will he order the
agency to enforce the law?" asked Tucker. "CalGEM's decisions
to issue new permits in the setback zone and to fail to endorse
orphan well laws is making a mockery of Newsom's claim to be tough
on oil drilling. Newsom needs to conduct an investigation of
Jason Marshall's role in CalGEM's
decision making and reverse its course."
Consumer Watchdog and FracTracker called
on Newsom to fire Marshall and other top deputies in
July 2019 after it learned about
financial conflicts of interests with supervisors at the regulatory
agency owning stock in oil companies they regulated. Marshall
resigned as the Department of Conservation's Chief Deputy in
February 2020.
Conservation Director David
Shabazian praised Marshall after his resignation for his
"many years of dedicated service" and his "wisdom and counsel on
important issues." Shabazian made the decision recently not to
enforce The Orphan Well Act on CRC after Marshall joined the
company.
"Governor Newsom shook up CalGEM in response to disclosures
about conflicts of interest under Marshall's watch, but now it
appears Marshall's influence over decision making is alive and
well," said Tucker. "Newsom needs an external investigation into
Marshall's influence over Shabazian and CalGEM."
Table 1.
|
Permits by Well
Types
|
Permit Count
Totals
|
Oil and
Gas Production
|
EOR &
Support
|
O&G and EOR
Totals
|
Plugging
|
Year
|
New
Drilling
|
Rework/
Redrill
|
New
Drilling
|
Rework/
Redrill
|
New
Drilling
|
Rework/
Redrill
|
Total
|
Abandon
|
2023 –
Q2
|
0
|
373
|
6
|
433
|
6
|
806
|
812
|
1,543
|
2024 –
Q2
|
28
|
228
|
7
|
216
|
35
|
444
|
479
|
1,142
|
Percent
Change:
|
Up >100%
|
Down 39%
|
Up 17%
|
Down 50%
|
Up 480%
|
Down 45%
|
Down 41%
|
Down 26%
|
*Permits for Sidetracks
and to Deepen wells are included in the Rework/Redrill
counts
|
CalGEM Data Analyzed by FracTracker Alliance
For more permitting information, see: NewsomWellWatch.com,
which is run by the groups and maps all California oil wells.
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SOURCE Consumer Watchdog