An oil industry group announced that it has collected enough signatures for a voter referendum on S.B. 1137, which implements a 3,200-foot buffer zone, known as a setback, between oil wells and schools, homes, and playgrounds. The law is scheduled to take effect January 1, 2023. If the signature gathering effort is successful, however, the law cannot take effect until approved by the voters on the 2024 ballot.
The California Independent Petroleum Association (CIPA) announced that it had gathered more than 978,000 signatures for the “Stop the Energy Shutdown” petition, although the signatures must still be verified.. The referendum needs 625,000 signatures to make the ballot. The Associated Press reported that oil companies have donated more than $20 million for the referendum.
The drilling setback has been a priority for the state legislature, as California was one of the few states without a setback requirement. The main requirements in S.B. 1137 are the health protection zones; the sensitive receptor inventory and map; indemnity bond for plugging and abandoning wells; the notice of attention to drill and offer to test the water; a leak detection and response plan; and emissions reporting. The bill exempts underground gas storage wells and the related production facilities from these requirements. (See California Legislature Passes Oil Drilling Setback Requirements.)
Opponents of the law say it threatens to further increase California’s gasoline prices by decreasing in-state energy supplies and replacing them with imported oil that has greater greenhouse gas emissions. “California-produced oil is the most climate-compliant oil in the world. Producers in our state must adhere to the state’s greenhouse gas reduction program and account for all emissions. Foreign oil imports are totally exempt from those requirements,” said Rock Zierman, Chief Executive Officer of CIPA.
“There is absolutely no reason California should be held hostage and export our wealth to OPEC+ countries,” he said. “But by strangling our domestic supply, Governor Newsom is promoting greater greenhouse gas emissions generated in other parts of the world and making gasoline more expensive.”
In June, voters in Ventura County voted against an amendment to the county’s coastal zoning ordinance to increase environmental regulations around oil and gas drilling.