SACRAMENTO, CA – Breaking a nine-month streak of approving zero permits for new oil wells, the California Geologic Energy Management Division (CalGEM), California’s oil and gas regulator, issued at least 13 new drilling permits in May.
Ten of these permits greenlight brand new oil wells, the first such drilling permits issued since August 2023 and the first issued under CalGEM’s new Oil and Gas Supervisor, Doug Ito, according to a news release from the Last Chance Alliance.
Thirteen of the permits – ten for new oil wells and three for observation wells – were issued to Berry Petroleum, a Kern-based oil operator, the alliance revealed. The permits were approved near the community of Derby Acres, where the closest new oil well will be located just 3,600 feet from the nearest home.
“It is an absolute betrayal to all Californians that Governor Newsom’s CalGEM would issue 13 new drilling permits in Kern County,” said Chirag Bhakta, California Director of Food & Water Watch. “The fossil fuel industry contaminates our air and land and uses and poisons massive amounts of water, which is very dangerous in a state already experiencing extreme heat waves and historic wildfire seasons. Governor Newsom must deliver on his promises to rein in the fossil fuel industry and immediately direct CalGEM to stop permitting drilling in California.”
The alliance said the three observation wells will be drilled even closer to Derby Acres residents, within the 3,200 foot health buffer established by SB1137, a law currently on hold pending a referendum vote in the fall. These 13 permits are for drilling in the Midway Sunset oil field, one of the most carbon-intensive oil fields in the world, where there have been multiple spills, accidents, and one oil worker fatality as a result of the dangerous and extreme extraction techniques needed to produce oil.
“It is clear that the elevated risks the new wells pose for the community were not properly vetted. CalGEM relied on an outdated document from a 2011 California Environmental Quality Act (CEQA) process to approve the Midway Sunset drilling permits,” the advocates stated.
The coalition said the document’s conclusions, including that a 1,200-well project in the oil field would not result in significant environmental impacts, “strain credibility. They also said “the document also does not adequately account for the danger posed by ‘surface expressions’ related to cyclic steam operations, including new information that has come to light since it was written.”
“Tragically, just one week after the review was finalized, an oil worker died as a result of a surface expression in the very same oil field, near the cyclic steam operations that are now being authorized for expansion with Berry’s new wells. This reliance on a thirteen-year-old environmental assessment overlooks the significant and well-documented harms that oil drilling inflicts on both the environment and surrounding communities,” the group continued.
Additionally, oil drilling poses serious risks to local and regional air and water quality. Oil production sites use and emit known carcinogens like benzene and formaldehyde, fine and ultra-fine particulate matter, and other toxins such as hydrogen sulfide and endocrine disruptors, according to the alliance. These harmful pollutants are released into the atmosphere, degrading air quality that exacerbates respiratory diseases such as asthma, and causes other significant health issues such as heart attacks and birth complications among nearby residents.
“These permits mark a change to a nearly year-long trend that saw a steep decline in drilling permits across the state,” the alliance concluded. “New drilling permits have declined sharply in recent years, from thousands of permits per year at the beginning of Gov. Newsom’s first term, to about 500 permits in 2022, to just 24 permits approved in 2023 – just 18 of which were for new oil wells – and no permits for any new oil wells since August 2023. Climate justice advocates with Last Chance Alliance marked their disappointment over these new drilling permits and doubled down on their call for an end to new permitting in the state,”
However, CalGEM claimed that the well approvals meet the standards set under the state laws and regulations.
According to reporter Ari Plachta in the Sacramento Bee on June 8, “CalGEM and the governor’s office defended the environmental review for the drilling permits, which concluded that a well as deep as 1,200 feet or within 3,600 feet from a home in Derby Acres would not result in environmental impacts.”
“The Department of Conservation reviews individual permits on a case-by-case basis and only approves if the permit meets standards set under state laws and regulations and required environmental review under the California Environmental Quality Act is complete,” said CALGEM spokesperson Jacob Roper in a written statement: www.sacbee.com/...
Representatives of member groups of the Last Chance Alliance disagreed with CalGEM and the Newsom administration’s contention that issuing the permits met state standards and blasted CalGEM for issuing the new oil drilling permits.
“Allowing new drilling directly opposes CalGEM’s mission to protect public health and safety. After the agency drastically scaled back approvals last year, this increase feels like a slap in the face. It puts the community of Derby Acres at further risk of respiratory issues, cancer, and birth defects. CalGEM has the opportunity to bring tangible benefits to California’s frontline communities, but instead its leaders are putting us in harm’s way once again,” said Maricruz Ramirez, Community Organizer at the Center on Race, Poverty & the Environment.
“It’s baffling that the state would greenlight new drilling in California amid repeated oil spills, dangerously high air pollution and intensifying climate disasters,” said Hollin Kretzmann, an attorney at the Center for Biological Diversity’s Climate Law Institute. “On top of that, they’re relying on an old environmental review that predates an oil spill that resulted in the death of one oil worker in the very same oilfield.”
“As leaders representing California communities impacted by air pollution, toxic spills and the devastating effects of climate change, we say enough is enough! Elected Officials to Protect America (EOPA) California is outraged that CalGEM has issued new drilling permits in Kern County, where public health has been sacrificed to the mega-polluter oil and gas industry for far too long” said Meghan Sahli-Wells, EOPA California Director, former Mayor of Culver City. “Families and workers in Kern County have suffered from illnesses, premature deaths, ongoing oil spills, and climate crisis disasters as a result of the oil industry. By sanctioning the expansion of destructive drilling, the state is committing a grave injustice.”
“Environmental justice communities in California had hoped the state’s nearly year-long decline in new permitting for extraction would last. It has not. We had hoped, given the agency’s new Supervisor Doug Ito, that the agency would finally fulfill its mission to protect Californians and regulate this dying and toxic industry. It has not. This new round of permits is a clear step backward and continues the state’s racist legacy of drilling in neighborhoods. The state has put the community of Derby Acres, California at risk, and we won’t be quiet about it,” said Kobi Naseck, Coalition Director, Voices in Solidarity Against Oil in Neighborhoods
“We had hoped that CalGEM turned a corner in prioritizing public health and holding industry accountable for endangering workers and communities, but these new permits show otherwise,” said Nicole Ghio, Senior Fossil Fuels Program Manager at Friends of the Earth. “Californians will not stand idly by while CalGEM returns to the era of lax oversight and a revolving door with industry. Doug Ito must decide what sort of Supervisor he will be — one that serves the people or one that serves Big Oil.”
“The science is clear: Oil and gas drilling can leak methane and other toxins that poison the air, water, and soil,” said Jasmine Vazin, Senior Campaign Strategist for Sierra Club. “In the face of unprecedented climate-related heat waves, polluted air and depleted water supplies, it’s extremely disappointing to see this influx of drilling permits. The Sierra Club and our partners are committed to ending neighborhood oil drilling and continuing to fight for the health and safety of Kern residents.”
“California’s Central Valley communities already suffer from the worst air quality in the country, and according to the state air resources board, the main source of that pollution is oil and gas extraction,” said Kyle Ferrar, Western Program Director at FracTracker Alliance. “Regulators must be required to consider the cumulative impact of new wells and the existing burden on impacted communities.”
“After a nine-month hiatus, CalGEM is back to their old permitting ways. Instead of handing a lifeline to a dying industry, Governor Newsom’s agency could – and should – be charting our state’s course toward a healthy, livable future where we can all thrive,” said Greenpeace USA’s California Climate Director, Zachary Norris. “The raging wildfires, unprecedented flooding, and intense heatwaves of the past few years have completely transformed our state. These events are clear signs that instead of greenlighting new oil and gas projects, we need to stop drilling and insist that fossil fuel companies start paying to clean up their mess. Californians deserve cleaner, greener, safer neighborhoods, not a legacy of toxic mess and destruction.”
“This is a gross betrayal of communities dealing with the deadly impacts of oil and gas extraction and of California’s climate leadership,” said Collin Rees, United States Program Manager at Oil Change International. “It’s 2024. Why would any leader who’s serious about confronting the climate crisis permit new oil and gas drilling when we know we can’t afford to burn the fossil fuels we already have? Governor Newsom and CalGEM must end all new permitting now.”
Chevron and Western States Petroleum Association top 2023 California lobbying with $18.1 million
Why has Big Oil been able to get away with what it does in California for decades? It’s because of the inordinate influence of Big Oil on California politicians and regulators.
Big Oil spent more money on lobbying in California in 2023 than any other year on record besides 2017. Big Oil spent $25,445,606 on lobbying in California in 2023 and $25,445,606 in 2017, according to the research team at Sunstone Strategies in their “Crude Truth” newsletter.
The group analyzed the California lobbying filings of every registered oil company in California, in putting 2023 trends into the context of industry lobbying for the past 20 years dating back to 2004. While in an earlier report on oil spending I used the raw data on fossil fuel spending from the filings on the California Secretary of State’s website, the newsletter used a slightly different methodology.
“Topping the lobbying spending charts in 2023 was Chevron, the second biggest oil producer in the state and the leading crude oil refiner. Trailing at number two: its trade association, the Western States Petroleum Association (WSPA),” wrote Sunstone Strategies.
“The two combined spent $18.1 million in 2023 — more than 71% of the industry’s total $25.4 in expenditures for 2023. Aera Energy, California’s top oil producer and a former joint venture of Exxon Mobil and Shell, placed in a distant third for 2023 lobbying spending,” they said.
However, in the fourth quarter, “WSPA and Chevron exchanged the number one and number two spots as the top lobbying spenders. Their expenditures totaled $2.8 million, accounting for over 60% of Big Oil’s quarterly spending total. Trailing in third was ExxonMobil, spending over $243,000 in lobbying for the quarter.”
The report also revealed that the state’s five major refiners, including Valero, PBF Energy, Marathon Petroleum, and Phillips 66, spent over $2.5 million on 2023 lobbying and influence activities.
Since 2009 I have documented how WSPA and the oil companies wield their power in 8 major ways: through (1) lobbying; (2) campaign spending; (3) serving on and putting shills on regulatory panels; (4) creating Astroturf groups; (5) working in collaboration with media; (6) sponsoring awards ceremonies and dinners, including those for legislators and journalists; (7) contributing to non profit organizations; and (8) creating alliances with labor unions, mainly construction trades.