Oil and gas operators going through the planning process in Santa Barbara County may have a new obstacle to overcome after the state announced a moratorium on new steam-injection wells.
The Department of Conservation’s Division of Oil, Gas, and Geothermal Resources (DOGGR) issued a statement on Nov. 19 that says the state is halting its approval of new oil wells that “use high-pressure steam to break oil formations below the ground.”
John Zorovich, deputy director of the county’s Energy, Minerals, and Compliance Division, said it’s unclear whether or not this will affect oil projects proposed in the county.
TerraCore—which purchased ERG and took over its West Cat Canyon Revitalization Project in June—and Aera Energy are in different stages of the planning process with proposals to develop hundreds of new steam-injection wells in Cat Canyon. The final environmental impact review for Aera Energy’s proposal to develop 189 wells in east Cat Canyon is supposed to reach the county Planning Commission for discussion early next year. TerraCore has begun reworking its project since purchasing ERG.
Zorovich said one of the issues is the state’s use of the terms “high-pressure” and “lower pressures” in its news release announcing the moratorium. The moratorium is only in place for high-pressure wells, but the statement doesn’t define what’s considered high or low pressure.
Also unclear is the statement that the moratorium would affect projects that use steam to break up oil formations underground. Zorovich said oil projects proposed in Santa Barbara County would use steam to heat up underground formations to separate the oil prior to extraction.
“We have to get more clarity, and once we understand the intent, we’ll be able to know how it affects oil and gas operators in Santa Barbara County,” Zorovich said.
In addition to the moratorium, the state announced the California Department of Finance’s Office of State Audits and Evaluations will review the state’s permitting process for oil projects. Moving forward, experts from the Lawrence Livermore National Laboratory—a federal research facility based in California—will review and ensure that pending oil well permit applications meet state standards.
In the state’s news release, Gov. Gavin Newsom said these changes are designed to advance the state’s transition off of its reliance on oil as an energy source.
“These are necessary steps to strengthen oversight of oil and gas extraction as we phase out our dependence on fossil fuels and focus on clean energy sources,” Newsom said. “This transition cannot happen overnight; it must advance in a deliberate way to protect people, our environment, and our economy.”
