How will Newsom’s policies affect Arroyo Grande oil field expansion plans?
News of Gov. Gavin Newsom’s stricter policies on oil extraction methods was celebrated by environmental groups Tuesday — but likely won’t affect extraction methods used at the Price Canyon Oil Field near Arroyo Grande without local action.
Among the package of new oil and gas initiatives for fracking and well stimulation is a moratorium that prohibits new extraction wells that use high-pressure cyclic steaming. The process is linked to a 1.3-million gallon leak of oil and water from a Chevron field in Kern County this summer.
Cyclic steaming and steam injection are used at Price Canyon, but high-pressure steam injection is currently not used there, according to a spokesperson with the California Independent Petroleum Association.
The state is investigating whether high-pressure cyclic steaming can be done safely, which could lead to tighter restrictions on that and similar methods.
Eventually, “oil and gas regulators could require certain safety practices, update regulations to impose new rules, or prohibit the practice altogether,” according to an announcement from the state Department of Conservation’s Division of Oil, Gas and Geothermal Resources.
The state is also evaluating its approval process for all well stimulation and underground injection applications. During the audit process, all proposals will go through a third-party scientific review.
An attorney with the Center for Biological Diversity said the announcement should impact the largest oil field in San Luis Obispo County.
“The governor’s action should have a significant impact on the plans to expand this oil field, since steam injection is used to extract the thick oil in this field,” Maya Golden-Krasner told The Tribune.
“We think this demonstrates that it is critical San Luis Obispo County officials should take a hard look at the use of all dangerous steam injection practices there — whether cyclic steaming injection or high pressure injection,” Golden-Krasner said.
Years-old plans to expand Price Canyon with up to 481 new wells were delayed with a change of ownership and then a legal hurdle that required Sentinel Peak Resources to apply for and receive an aquifer exemption from the Clean Water Act.
Enhanced oil recovery methods with steam are used at the Price Canyon Oil Field due to the nature of the crude reserves.
The first oil well there was in 1906. Cyclic steam was introduced in 1965 and steam flood injection began at Price Canyon in 1980, according to a presentation by the state Department of Conservation.
This story was updated to include information from an industry group about what kind of steam injection is used at Arroyo Grande Oil Field.
This story was originally published November 20, 2019 at 5:10 AM.
