American Oil and Gas Reporter - November 2016 - 20
IndustryDigest
Sue-And-Settle Yields
New Los Angeles Rules
Without CIPA's Input
SACRAMENTO, CA.-The
California Independent Petroleum
Association reports that a litigation
settlement between the city of Los
Angeles and anti-oil activists has
yielded a set of onerous new oil and gas
regulations. Since CIPA gained
intervenor status in the suit-which
accused the city of rubber-stamping
production projects-the court ordered
all parties to collaborate on the
settlement, CIPA says, but the city and
the plaintiffs ignored that requirement,
and instead issued the rules without
CIPA's input.
"Every development and business
interest in the city impacted by (the
California Environmental Quality Act)
should be alarmed at this maneuver
(because) it sets a very dangerous
precedent, and (is) an exertion of power
beyond the city's authority," warns
CIPA Chief Executive Officer Rock
20 THE AMERICAN OIL & GAS REPORTER
Zierman. "CIPA believes that once the
truth comes out, the court will invalidate
the new regulations and preclude them
from being implemented against
stakeholders in the city."
CIPA mentions a handful of
provisions included in the new
regulations that cover oil operations in
the city:
* They single out oil operations as
requiring a type of environmental
assessment that is distinct from those
required of any other business.
* Their indemnification
requirements attempt to transfer an
unprecedented amount of the city's
legal liability to operators. In one
example CIPA raises, an operator would
be liable for damages if a mineral owner
sued the city because the regulations
amounted to taking property rights.
* Under a new structure, fees for a
new or modified well jump from about
$5,000 to between $90,000 and
$157,000.
CIPA indicated in mid-November
that the next legal steps remained
unclear. It filed a cross complaint
against the city and plaintiffs that
challenged the settlement, but they filed
a joint notice of removal to transfer the
case from state to federal court. ❒
New Mexico Changes
Rules For Shut-In Wells
SANTA FE, N.M.-The New Mexico
State Land Office has issued
amendments to its leasing rules that
allow operators of oil wells on SLO
lands to temporarily shut them in during
periods of low commodity prices. The
SLO says beneficiaries of state trust
lands will be better served if oil wells
on SLO leases are allowed to be shut in
rather than produced at a low price.
SLO says that under the proposed
amendments, a lessee or operator
requesting permission to shut in a well
because of low oil prices must provide
either a Form C-103 Sundry Notice and
Reports on Well filed with the New
Mexico Oil Conservation Division or
American Oil and Gas Reporter - November 2016
Table of Contents for the Digital Edition of American Oil and Gas Reporter - November 2016
Contents
American Oil and Gas Reporter - November 2016 - 1
American Oil and Gas Reporter - November 2016 - 2
American Oil and Gas Reporter - November 2016 - Contents
American Oil and Gas Reporter - November 2016 - 4
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