Gavin Newsom: The California Governor's career in pictures

Janet Wilson | Palm Springs Desert Sun

California Gov. Gavin Newsom on Tuesday placed a moratorium on new permits for potentially dangerous oil drilling techniques, which officials said are linked to illegal spills across the Central Valley.

The temporary ban on new permits for steam injection and fracking is one of a suite of measures announced to increase scrutiny of oil operations — and how they are currently regulated — across the state.

An independent audit will be conducted of the long-troubled agency that oversees oil and gas production, and federal scientists will review all current applications for fracking, steam injection and other well stimulation. New laws will be developed for possible buffers near polluting oil operations in heavily populated areas.

The measures are aimed at better protecting public health and natural resources as the state moves forward with tough climate emissions mandates that could eventually phase out California's entrenched oil and gas operations, Newsom said. But he stopped short of calling for a ban on all new drilling, as hundreds of groups aligned with the Last Chance Alliance are seeking.

“These are necessary steps to strengthen oversight of oil and gas extraction as we phase out our dependence on fossil fuels and focus on clean energy sources,” Newsom said. “This transition cannot happen overnight; it must advance in a deliberate way to protect people, our environment, and our economy.”

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The scandal-plagued Department of Conservation’s Division of Oil, Gas and Geothermal Resources, or DOGGR — which will be renamed the Geologic Energy Management Division, or CalGEM, effective Jan. 1 — will oversee the 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," according to a news release.

The latest actions come after of reports by The Desert Sun on supervisors holding investments in oil companies they regulate, on "dummy" permits awarded in Kern County and on dozens of illegal seeps and spills across the state. That includes a 1.3 million gallon spill in the Cymric oil field this summer, for which officials fined Chevron $2.7 million. Newsom fired the agency's top supervisor after The Desert Sun reported that the rate of fracking permits issued during his first six months in office had doubled compared with the previous year.

Irfan Khan, AP

The steps announced Tuesday are part of the department's recently strengthened mission in accordance with AB 1057, signed by Newsom in October, officials said.

“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, whose agency oversees the Department of Conservation and CalGEM.

Sen. Dianne Feinstein (D-CA) praised Newsom’s decision "to take a hard, close look" at fracking and steam injection as part of its focus on clean energy and transition from fossil fuels. "Ensuring that these invasive and potentially dangerous extraction methods are safe and won’t harm homes, schools, hospitals and parks is vital."

But Catherine Reheis-Boyd, president of the Western States Petroleum Association, called the actions "disappointing" and said “California’s environmental regulations already lead the world."

“There is nothing more important than the health and safety of the communities where the women and men of our industry work, live and raise their families," the state's top oil lobbyist said in a statement.

“Multiple state agencies already validate our protection of health, safety and the environment during production," she added. "These agencies should also consider reliability, affordability and resilience of our energy supply."

WSPA released a study in September saying the state's already high gas prices could rise between 60 cents and $2.33 a gallon if the oil it produces had to be replaced. About a third of gasoline used by Californians comes from the state's oil fields.

Others see it differently.

Consumer Watchdog and FracTracker Alliance on Tuesday released updated data showing regulators have granted oil permits at an 8.8% greater rate in the first 10 months of 2019 than in the same period last year under Gov. Jerry Brown,

The groups applauded Newsom's announcement.

"Governor Newsom has taken an important step toward reining in the most high-risk extraction techniques," said Jamie Court, president of Consumer Watchdog. "The ultimate test of his tenure ... will be simple math ... Net zero wells should be his goal."

Mark Ralston AFP/Getty Images

Longtime critics of state policies also hailed Tuesday's news.

"Finally, we see action from our California leaders," said Cesar Aguirre, community organizer with Central California Environmental Justice Network.

“Gov. Newsom’s historic action protects Californians from some of the most dangerous and destructive oil-extraction techniques,” said Kassie Siegel of the Center for Biological Diversity. “This marks the turning of the tide against the oil industry."

Drew Bird/Center for Biological Diversity

Steaming out gooey crude — is it safe?

A series of actions were announced today, including several involving steam injection, a practice used by oil producers to heat and pump out California's notoriously gooey crude.

State regulators have boasted that a new law that took effect in April is the toughest in the nation, banning nearly all "surface expressions" spills on land.

But Hollin Kretzman, senior attorney with the Center for Biological Diversity, said the law included a new loophole that allowed companies to go past the breaking point of formations below ground.

Surface expressions can foul landscapes and harm wildlife, as well as creating potentially dangerous field conditions. Chevron supervisor Robert Taylor plunged into a sinkhole of boiling gases and died in 2011.

The new moratorium includes the following steps:

A halt of approvals of new oil extraction wells that use high-pressure cyclic steam to break oil formations below the ground, which state officials said is linked to recent oil leaks in Kern County. Oil producers have disputed that.

During the pause, regulators will consult with experts to examine records from recent leaks of oil and waste water, known as surface expressions, in the Cymric oil field. The aim is to determine whether the high-pressure process can be done safely and in compliance with regulations that took effect in April.

Oil and gas regulators could eventually require new safety practices, update regulations to impose new rules, or prohibit the practice altogether.

The department has already 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. Wells that use cyclic steaming at lower pressures are not affected by the temporary ban.

Gary Kavanagh, Center for Biological Diversity

Buffer zones between people and oil wells

In a second push, rules for public health and safety protections near oil and gas extraction could be strengthened, including prohibiting oil activities near homes, schools, hospitals, and parks. New or modified rules are anticipated in late 2020.

Community and environmental groups have been battling for years to have a 2,500-foot legal buffer zone enacted in portions of Los Angeles and elsewhere where pump jacks and other equipment sit right next to schools, playgrounds and homes. Other states already have similar zones in place.

“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.

Aguirre with the Central California Environmental Justice Network applauded the announcement.

"We are optimistic that in the near future this administration will also establish an oil and gas setback in areas where people live, work and study while breathing poisonous gases. No one deserves to have polluters in their backyard."

Andrew Grinberg/Clean Water Action/Clean Water Fund

Audit of regulator's permit practices

In a third step, hundreds of pending applications to conduct hydraulic fracturing and other well stimulation practices will be independently reviewed by the Lawrence Livermore National Laboratory "to ensure the state’s technical standards for public health, safety and environmental protection are met prior to approval."

That review will occur as part of an audit of much of CalGEM's permitting processes.The audit, to be conducted by the California Department of Finance’s Office of State Audits and Evaluations, will focus on whether the current processes comply with state laws, and will develop recommendations to strengthen operational procedures.