Kern County 2015 Updated
Oil & Gas Permitting Ordinance
B. Joe Ashley | Director – Regulatory & External Affairs |
March 2016
The Future of the Oil and Gas Industry: Permitting The Oil Industry In Kern, Lessons Learned And – Now What??
2
BACKGROUND
• California Environmental Quality Act (CEQA) requires state and local
agencies to identify and mitigate significant impacts when issuing
discretionary permits for “Projects”
• The trade associations representing the upstream oil and gas industry in
California – WSPA, CIPA and IOPA – jointly applied for an amendment to
the County’s zoning ordinance in January, 2013 to demonstrate that
adequate CEQA has been completed for oil and gas related activities in
Kern County
• Conduct a project-level CEQA review in support of the amendment to
Kern County’s Oil & Gas Zoning Ordinance (Chapter 19.98) and
establish a new County-led permitting process for oil & gas activities
• The project will provide CEQA coverage for most oilfield development
activities for next ±20 years
3
OBJECTIVES
• Prepare a comprehensive, project-level EIR that provides
operators with both certainty and flexibility for continued
operations and growth in Kern County
• Create a structure that will facilitate permitting by
DOGGR and other agencies (e.g., APCD, RWQCB, CDFW)
• Provide CEQA coverage for SB4 and supplement the
statewide EIR with technical studies and site specific
detail necessary for WST permitting
4
PROJECT AREA
5
• The amendment to the Kern County Oil and Gas Zoning
ordinance has been approved, and the EIR prepared in support
of the zoning amendment was certified
• The effective date of the new zoning ordinance is 12/9/2015
• All projects are now subject to the provisions of the zoning
ordinance, unless they were approved before 12/9/2015
• Example: if you received an approved NOI from DOGGR before
the effective date (12/8/15 or earlier), you do not need a permit
from the county to drill the well
EFFECTIVE DATE OF ORDINANCE
6
• Tier Areas
• Multiple Permit Types (3)
• Surface Owner Notification Requirements
• Improved Certainty and Streamlined Permit
Process
• New Development Standards
• New Certification Requirements
NEW ORDINANCE HIGHLIGHTS
7
• Tier Areas
Tier 1 – Primarily Oil & Gas
Tier 2 – Primarily Agriculture
Tier 3 – Zone Districts NR, RF, M-1, M-2, M-3, FPP, DI, PE
Tier 4 – Zone Districts E, R-1, R-2, R-3, CO, C-1, C-2, CH, OS, PL, MP
Tier 5 – Specific Plan Areas
Non-Jurisdictional
• Permit Types
Conformity Review – New wells, WST, new construction, well re-work
Minor Activity Review –New construction, access roads, geophysical surveys,
well pad preparation, pipelines etc.
CUP – Required for activities not covered, Tier 4 areas, certain Tier 5 areas
No Permit – Non-jurisdictional areas, well abandonment, restoration, fencing
TIERS AND PERMIT TYPES
8
• Conformity Review
No land owner signature needed, OR signature obtained or waived 7 DAY
Land owner signature not obtained 30–120 DAYS
If at any point in the process, the required landowner signature is obtained,
application is approved
• Minor Activity Review
Notification completed or waiver obtained 7 DAYS
No signature required
• Conditional Use Permit (CUP)
Planning Commission/Board of Supervisors approval required
~ 8 months
PERMITTING TIMEFRAMES
9
• Conformity Review or Conditional Use Permit (CUP)
Tiers 1-5 – Notification letter, county handout and copy of site plan 30
days before submittal to county (PRC 848)
Tiers 2, 3, 4, and 5 – Operator provides copy of application to surface
owner
(Operator MUST document this)
• Minor Activity Review
Tier 1 – No notification required
Tiers 2, 3, and 5 – Copy of application 30 days before submission to
county (PRC 848)
SURFACE OWNER NOTIFICATION
10
COVERED ACTIVITIES
• Geophysical surveys
• Drilling operations
• Enhanced oil recovery
• Completion operations, including SB4 regulated activities
• Pipelines, storage facilities, distribution lines, access roads
• Water, Oil, and Gas treatment
• Shallow cyclic thermal production and well remedial operations
• Process water for steam generators and extraction activities
• Construction, operation, and maintenance
• Plugging and abandonment and decommissioning of facilities
11
Environmental Impacts must be mitigated (and documented in
MMRP)
• Air quality
• Water supply and quality
• Setbacks from sensitive receptors
• Environmental pre-activity surveys
• Traffic fees
• Land disturbance mitigation
• Incorporation of existing or new compliance plans (i.e. worker
education program that covers all aspects of the EIR
requirements)
MITIGATION
12
• Quick Reference
Project Area Map
Covered Activities Table
Major Fields and Tiers Table
• County Resources
County Website -
http://pcd.kerndsa.com/planning/oil-gas-zoning-
amendment
Kern Gateway Mapping System -
http://kcpcdd.databasin.org/
RESOURCES
13
• Be aware of the new county process, and that there
are new requirements
• Communicate projects early and often to your
Regulatory experts
• IF YOU HAVE QUESTIONS, ASK!
• Participate in Kern Citizens for Energy!
EXPECTATIONS
WHO WE ARE
• Kern Citizens for Energy is a local coalition established to support all of the
men and women working in the energy industry
• We are local citizens, small business owners, nonprofits, chambers of
commerce, energy companies and taxpayer advocates who support the
energy industry here in Kern County
• We applaud the enormous contributions that the energy industry makes in
Kern County, the state of California and throughout the nation in the form
of jobs, tax revenues and philanthropy
FACTS…CONSIDER THESE
At more than $6.6 billion dollars, the
oil industry is responsible for
nearly 20% of Kern County’s gross
domestic product (GDP).
California has abundant natural
resources yet we currently import
of our total energy needs. Taking
advantage of the rich resources right
beneath us will provide job opportunities
for those in our own state.
• California’s petroleum industry offers employment opportunities to all educational backgrounds
• As a result, industry employees earn double the wages of all private industry in California
Source: http://kedc.com/petroleum-industry-continues-to-drive-california-economy-job-creation/
Petroleum Supports Education
Bachelor's~30%
Associate's~30%
High School Diploma or less
33%
ChambersGreater Bakersfield Chamber of CommerceKern County Black Chamber of Commerce
Kern County Hispanic Chamber of CommerceGreater Lamont Chamber of Commerce
Mojave Chamber of CommerceNorth of the River Chamber of Commerce
Ridgecrest Chamber of CommerceShafter Chamber of Commerce
Taft Chamber of CommerceGreater Tehachapi Chamber of Commerce
Cities & School DistrictsCity of Bakersfield
City of California CityCity of Ridgecrest
City of TaftCity of Tehachapi
Kern High School District
Public SafetyKern County Firefighters Local 1301Kern Law Enforcement Association
Our Supporters...
Curtis Electrical Construction Inc.Hislop PhotographyKern County Firefighters Local 1301Castle & CookeT.L. Maxwell’s Restaurant & BarSunbelt Business Brokers & AdvisorsPerformance ContractingArena PaintingWestside Waste Management Co. Inc.DeWalt CorporationGaines Recruiting & Consulting GroupAmerican Red Cross- Kern ChapterH-Force Kern Patriot PartnershipBakersfield Association of Realtors
American Kids Sports CenterSpectrum SystemsStudent Government Association of Bakersfield College First 5 KernTutoring ClubMendiburu Magic FoundationLighthouse Transport ServicesVarner Bros., Inc.AppleOneAll’s Well Healthcare ServicesMcKee Electric Company iNFocus ConsultingBugs Away Pest Control Lighting in Style
*Partial List– visit our website for full list of supporters
Businesses & Organizations
Advertising Campaign