Oil permitting on federal lands across California received a major boost after new action from the federal government.
The Bureau of Land Management has rescinded a 2012 rule between itself and the California Geologic Energy Management Division (CalGEM) that increased regulations surrounding permitting.
The backstory: Thirteen years ago, the Bureau of Land Management signed a Memorandum of Understanding with CalGEM to give the state agency a say in the oil permitting process.
- The MOU has allowed CalGEM to delay new oil permits, especially once Gov. Gavin Newsom took office in 2019.
- Before Newsom was elected, California oil companies averaged over 3,000 new oil and gas wells annually. Newsom has whittled away at the permitting process, with only 21 new oil and gas wells permitted last year.
- Oil revenue in California has decreased by $9 billion per year with the lack of production. That includes a loss of $100 million annually for Kern County in property tax revenue.
The big picture: Last week four California Republicans – Rep. Vince Fong (R–Bakersfield), Rep. David Valadao (R–Hanford), Rep. Doug LaMalfa (R–Richvale) and Rep. Tom McClintock (R–Elk Grove) – penned a letter to U.S. Secretary of the Interior Doug Burgum applauding the decision to rescind the MOU.
- The lawmakers noted that over 100 permits that have been fully approved by the Bureau of Land Management are currently stuck in CalGEM’s permitting process.
- They also urged Burgum to push through with the transition away from CalGEM in order to streamline the permitting process.
What they’re saying: “Rescinding CalGem’s memorandum of understanding with BLM is a critical step toward restoring domestic oil production in the Central Valley,” Valadao said. “Kern County alone has lost hundreds of millions of dollars in local revenue and thousands of good-paying jobs because Sacramento bureaucrats refuse to issue permits in a timely and transparent way. By getting rid of this unnecessary red tape, we can get production back on track, lower energy costs for Valley families, and bring much-needed investment back to our communities.”
- Fong said it is critical to rescind the MOU in order to restore California’s energy production.
- “This decision removes barriers to needed energy production, reduces costs for families, strengthens economic stability, and reaffirms our commitment to American energy dominance,” Fong said. “By streamlining permits and restoring the Bureau of Land Management’s authority over federal lands, we can unlock California’s energy potential, support good-paying jobs, and ensure affordable energy for families across our state.”
