Fracking Update: Legislature Proposes Fracking Moratorium

The California Legislature has proposed four bills which would impose a moratorium on hydraulic fracturing, or "fracking," in the State of California. Fracking involves injecting a high pressure stream of water, sand and chemicals into rock formations, known as shale, to extract natural gas and oil. This legislative effort coincides with the California Division of Oil, Gas & Geothermal Resources' ("DOGGR") completion of its statewide public workshops regarding DOGGR's recently proposed "discussion draft" fracking regulations. DOGGR's draft regulations would allow fracking to continue, but would subject fracking operators to notice, testing, monitoring and reporting requirements.

The first three bills, introduced by Senator Richard Bloom (D-Santa Monica), Assembly Member Holly Mitchell (D-Culver City), and Assembly Member Adrin Nazarian (D-East Fernando Valley), would each place an immediate moratorium on fracking, and would allow fracking to continue in the future so long as certain conditions are met. The fourth bill, introduced by Senator Fran Pavley (D-Augora Hills), in contrast, would allow fracking to continue without delay, but would impose a moratorium on fracking if state regulators do not promptly complete a comprehensive study
on the potential risks of fracking by January 1, 2015. Senator Pavley's bill also includes notice,
permitting, transparency, and monitoring requirements. If adopted in their current form, the bills
would require the following:

A.B. 1301 – Assembly Member Richard Bloom (D-Santa Monica)

Full text can be found here.

• Imposes an immediate moratorium on fracking until the Legislature enacts unspecified
legislation that determines whether and under what conditions hydraulic
fracturing may be conducted.

A.B. 1323 – Assembly Member Holly Mitchell (D- Culver City)

Full text can be found here.

• Imposes an immediate moratorium on fracking until an advisory committee appointed by state
regulators completes a fracking report by January 1, 2016, and makes a determination by January 1, 2019, as to whether and under what conditions hydraulic fracturing is to be permitted in the state;

• The advisory must include two representatives each from a specified list government
agencies and members of environmental organizations, as well as representatives from the oil and gas industry;

• The report must be peer-reviewed by members of the scientific and academic community
acknowledged to be experts on the subject matters being considered.

A.B. 649 – Assembly Member Adrin Nazarian (D-East Fernando
Valley)

Full text can be found here.

• Imposes an immediate moratorium on fracking in precisely the same way as A.B. 1323, but
also imposes a moratorium on the use of clean freshwater for the purposes of fracking if the oil or gas well is located a certain distance from an aquifer.

S.B. 4 – Senator Fran Pavley (D-Augora Hills)

Full text can be found here.

• Allows fracking to continue, but imposes a moratorium on fracking if the Natural Resources Agency fails to complete a comprehensive scientific study on the potential risks of fracking by January 1, 2015;

• Requires fracking operators to obtain a state-wide permit before fracking. The permit application must include the location of the operation, an estimate of the amount of water to be used, a
list of the chemicals to be used in the fracking process, and other information;

• Requires fracking operators to notify the public 30-days before fracking operations
commence. Nearby property owners can request regional water boards to test well and surface water before and after fracking;

• Requires the state to develop its own website for fracking fluid reporting by January 1, 2016;

• Requires regulators to perform spot checks to ensure that the fracking information
provided by operators is accurate;

• Requires the administration to enter into formal agreements with water boards and other
regulators in order to specify responsibilities regarding air and water monitoring.

Summary

The bills discussed above are just four of eleven proposed bills that would regulate the fracking process in the State of California. A.B. 1301, A.B. 1323, and A.B. 649, however, are the only bills pending in the Legislature that would place an immediate moratorium on fracking. SB 4, too, goes
further than other fracking bills in that it would impose a moratorium on fracking if certain conditions are unfulfilled by 2015. Regardless of the outcome, a moratorium on fracking, whether immediate or in the future, will substantially delay oil and natural gas exploration efforts in California's Monterey Shale deposit, which is believed to contain approximately two-thirds of all the known recoverable oil in the continental United States.

We will continue to provide regular updates regarding these bills, as well as any additional legislative developments regarding the fracking process.

To link to a downloadable version of this article, please click here.

© 2011-2013 Copyright ~ Harrison, Temblador, Hungerford & Guernsey LLP. All rights reserved.

The materials and information in this article have been prepared by Harrison, Temblador, Hungerford & Guernsey LLP for informational purposes only and do not constitute legal advice.