Oil companies see fines over lack of water reporting

As part of SB 1281, which was signed into law last September, California’s 433 oil operators are required to report their source of water, how much water they used and how the water was disposed of during their oil and gas production process. Of the 433 producers, about half filed their reports on time. Another quarter filed reports but they were incomplete and 30 failed to file reports at all.

The California Department of Conservation has issued a $4,500 fine for each of the 30 operators who failed to file a report.

“Most of the state’s oil and gas operators made an attempt to get us the required information,” said Steve Bohlen, State Oil and Gas supervisor. “We have fined those operators who made no effort to comply with the law. We have made it clear that, given severe drought conditions in the state, knowledge of how water is used and treated is vital. Additional fines for other reporting-related infractions likely will come soon.”

The law’s author, State Senator Fran Pavely (D-Agoura Hills) isn’t happy with how the Department of Conservation’s Division of Oil, Gas and Geothermal Resources is handling the reporting guidelines. The first initial reporting period was set to be April 1. The agency decided to provide a grace period because of the complicated aspects of the laws. At that point, oil producers had until June 1 to file their reports. When the agency made that decision, they notified the legislature. That June 1 deadline came and passed, with still no report from the Division of Oil, Gas and Geothermal Resources. It wasn’t until mid-August when the first set of data was released.

“The department’s failure to comply with the law is another example of poor management and lax regulation of the oil and gas industry that has implications for California’s economy and the public health,” Pavley told The Los Angeles Times. “The public — during a serious drought — needs to know where this water comes from and where it’s going.”

According to reports by the Division of Oil, Gas and Geothermal Resources, 205 million barrels of oil were produced with 3.3 billion barrels of water.