SB4 Implementation & Kern County Oil and Gas EIR Update Air and Waste Management Association – Golden Empire Chapter Western States Petroleum Association // wspa.org 9 // 16 // 2014

America’s Energy Future Western States Petroleum Association // wspa.org 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 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

The Worst Of Times… Western States Petroleum Association // wspa.org

The Worst Of Times… Western States Petroleum Association // wspa.org 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 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 Hydraulic Fracturing Campaign

Western States Petroleum Association // wspa.org 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

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 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 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 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 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 Kern County Role In New Regulations CEQA 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 Kern Oil & Gas EIR New Local Coalition s 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

@WSPAPREZ Follow along on Twitter