PowerPoint Presentation

SB4 Implementation & Kern County Oil and Gas EIR UpdateAir and Waste Management Association Golden Empire ChapterWestern States Petroleum Association // wspa.org // @wspaprez9 // 16 // 20141

Americas Energy FutureWestern 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 20132

The Best Of TimesWestern 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 Institute3The Worst Of TimesWestern States Petroleum Association // wspa.org // @wspaprez

4The Worst Of TimesWestern States Petroleum Association // wspa.org // @wspaprez

5The Worst Of TimesWestern 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

6WSPA 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 Valleys Monterey Shale Formation.Catherine Reheis-Boyd, WSPA President

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

Hydraulic FracturingCampaign8Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4REQUIREMENTSPrior notification to surrounding land ownersMandatory disclosure of fracturing fluid with mechanisms for trade secret protectionsWell integrity testing before and after fracturingGroundwater Monitoring RequirementsDevelopment of environmental impact reportIndependent, science-based study of hydraulic fracturing9

Senate Bill 4 Timeline To July 2015Western States Petroleum Association // wspa.org // @wspaprez

10Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4 ImplementationSTAGES OF SB 4By January 1, 2014Emergency rules and regulations in placeWell Stimulation Notices required to conduct operationsBy January 1, 2015Completion of a comprehensive independent scientific study on well stimulation treatmentsDOGGR 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 criteria11Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4 ImplementationSTAGES OF SB 4 (CONTINUED)By July 1, 2015Permanent well stimulation regulations take effectDOGGR shall certify an environmental impact report (EIR) as lead agency, regarding any potential impacts of well stimulation in the stateBy January 1, 2016State 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 treatment12Western States Petroleum Association // wspa.org // @wspaprez

Senate Bill 4 ImplementationCurrent StatusPermanent RegulationsExpect finalization of those rules by November 15th

EIRProgram level documentAnnounced plan is to circulate it sometime in the fall

SWRCB Groundwater Monitoring Model Criteria DevelopmentTwo public workshops heldFunding for resources needed to complete included in the state budget13Western States Petroleum Association // wspa.org // @wspaprez

BLM EIS ProcessLitigation 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 commentBLM 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.14

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

BLM CCST Study

COMPLETED LATE AUG 2014Found no record of impacts from well stimulation in CaliforniaCCST study was inclusive and considered extensive public commentsWSPA saw CCST study as one of many steps towards safe, efficient energy production in California15Western States Petroleum Association // wspa.org // @wspaprez

Kern County Role In New RegulationsCEQA EIR DEVELOPMENTKern County is preparing an Environmental Impact Report that provides oil producers extended CEQA coverageOil industry is supporting and financing the processProject consideration slated for Summer of 2015Process will assist in development of a statewide EIRIn 2014, a coalition in support of energy production formed the Kern Citizens for Energy to educate local officials and demonstrate communitys wide support

16Western States Petroleum Association // wspa.org // @wspaprez

Kern Oil & Gas EIRNew Local Coalitions industryKern 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 claimswww.KernCitizensforEnergy.com

17@WSPAPrezFollow along on Twitter18