SCOPING MEETING FOR

ENVIRONMENTAL IMPACT REPORTREQUIRED BYPUBLIC RESOURCES CODE SECTION 3161 (b)(3) AND (4)(SENATE BILL 4) (PAVLEY)

CALIFORNIA DEPARTMENT OF CONSERVATIONDIVISION OF OIL, GAS, & GEOTHERMAL RESOURCES

INTRODUCTORY REMARKS

Welcome. This event is a scoping meeting regarding the EIR required by Public Resources Code section 3161, subdivision (b)(3),

otherwise known as SB 4. SB 4 became law in September of this year, and one part of this new law requires the Department of

Conservation, through its Division of Oil, Gas and Geothermal Resources, to conduct an EIR regarding the impacts resulting from

well stimulation treatments, which includes hydraulic fracturing. The EIR is scheduled to be completed by July 1, 2015.

This meeting is not part of the process regarding the public review of regulations to become effective in 2015 regarding well

stimulation treatments, also required by SB 4. Information about that process can be obtained on the Department of

Conservation’s website.

There are a great many legal requirements associated with the preparation of an EIR in California. This meeting is just one step

in the process, and that step is to receive comments from interested government agencies, and the public, about what the EIR

should cover, that is, the scope and content of the EIR. Only one scoping meeting is required under the laws governing the

preparation of EIRs, but the Department is holding five meetings in order to increase the opportunities for interested parties to

comment. Written comments can also be submitted, and is encouraged. Information about submitting written comments will be

provided later in this presentation.

It may be important to you that this meeting is not being held to debate the pros and cons of hydraulic fracturing or well stimulation

treatments. Rather, this process is to implement the direction set by the Legislature in SB 4.  This meeting is held to receive verbal

comments about what issues the public thinks the EIR should cover, and what concerns the public may have about the practices

of well stimulation and/or hydraulic fracturing. Ultimately, any analysis, conclusions or recommendations appearing in this EIR will

assist the Department in regulating these activities and ensuring the protection of the environment and human health and safety.

Agenda• Overview of different processes required by SB 4 • New Statutory Definition of Well Stimulation Treatments• Directive to Prepare an Environmental Impact Report

(EIR)• Objectives of the EIR• Approach to the EIR• EIR Study Regions• EIR Schedule and Future Participation• Contact Information / How to Submit

Scoping Comments

SB 4 Requires . . . • DOC to implement interim (“emergency”) regulations

regarding well stimulation activities occurring in 2014• (released this week).

• DOC to propose and receive comments regarding permanent regulations regarding well stimulation activities occurring in 2015 and beyond (released last month).

• Prepare an EIR to provide the public with detailed information regarding any potential environmental impacts of well stimulation in the State (THIS requirement

is the focus of tonight’s meeting).

Statutory Definition of Well Stimulation Treatments (added to Public Res. Code by SB 4):

“[A]ny treatment of a well designed to enhance oil and gas production or recovery by increasing the permeability of the formation. Well stimulation treatments include, but are not limited to, hydraulic fracturing treatments and acid well stimulation treatments. Well stimulation treatments do not include steam flooding, water flooding, or cyclic steaming and do not include routine well cleanout work, routine well maintenance, routine removal of formation damage due to drilling, bottom hole pressure surveys, or routine activities that do not affect the integrity of the well or the formation.”

Statutory Directive To Prepare an EIR

New Public Res. Code Section 3161, subd. (b)(3) and (4) require DOGGR to:

Prepare an EIR pursuant to the California Environmental Quality Act (CEQA) in order to provide the public with detailed information regarding any potential environmental impacts of well stimulation in the State.

Evaluate the well stimulation activities that may be conducted, as defined in new Public Res. Code Section 3157, that may occur at oil and gas wells in the State existing prior to and after September 20, 2013.

Proposed Objectives• Objectives of EIR:

Ensure DOGGR’s compliance with new Public Res. Code Section 3161, subd. (b)(3) and (4).

Identify, evaluate and disclose the potential environmental impacts of well stimulation treatments.

Further the Legislature’s efforts to ensure that well stimulation practices are conducted in a manner that assures environmental protection, public safety, data collection and reporting, interagency coordination, regulatory oversight and monitoring, and public disclosure.

Allow for the safe recovery and production of the State’s oil and gas resources.

EIR Approach

State California Environmental Quality Act (CEQA) Guidelines Section 15168: Program EIRs are allowable and encouraged under CEQA for a series of actions or activities that can be characterized as one large project and are related either:• Geographically• As logical parts of a chain of activities• In connection with rules, regulations, plans or other

general criteria governing a continuing program, and/or• As individual activities carried out under common authority

(statutory or regulatory) and having similar environmental effects which can be mitigated in similar ways.

EIR Study Regions

EIR Scope / Environmental Factors(non-exhaustive list)

Aesthetics Land Use and Planning

Agriculture and Forestry Resources Mineral Resources

Air Quality Noise and Vibration

Biological Resources Population and Housing

Cultural Resources Public Services

Geology and Soils / Seismicity Recreation

Greenhouse Gas Emissions / Climate Change Transportation and Traffic

Hazards and Hazardous Materials Utilities and Service Systems

Hydrology and Water QualityAlternatives

EIR Schedule & Future Participation

Notice of Preparation Publicationand Public/Agency Scoping

November 18, 2013 – January 16, 2014(60 Day Comment Period)

Draft EIR Publication and Public/Agency Review and Comment

September - November, 2014(60 Day Comment Period)

Public Workshops on Draft EIR September – November, 2014

Final EIR Publication June, 2015

Final EIR Decision Making/Certification June, 2015

SB 4 EIR Basic Timeline . . .

Dec. 2013 Sept.-Nov. 2014 June 2015

Scoping Comment on DEIR Final EIR

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Contact Information

Written Scoping Comments via U.S. Mail:

Ms. Adele Lagomarsino

California Department of Conservation

Division of Oil, Gas, and Geothermal Resources

801 K Street, MS 18-00

Sacramento, CA 95814-3530Email Scoping Comments: SB4EIR@conservation.ca.gov

Scoping Process Information: (916) 322-1348

SB 4 Information:

http://www.conservation.ca.gov/dog/Pages/Index.aspx

PUBLIC AND AGENCY SCOPING COMMENTS . . .