American Oil and Gas Reporter - May 2019 - 97

"California's reliance on foreign oil
has doubled in less than two decades,
while the amount of oil the state uses has
remained about the same," Layton observes.
"The cry to 'keep it in the ground' actually
undermines the state's environmental goals
because the less oil we produce in California under the strictest standards on the
planet, the more we rely on foreign oil
imports shipped here by supertanker. In
addition, California isn't benefitting from
the nation's energy renaissance because
there are no interstate pipelines to affordably send domestically produced oil here."
Moreover, EIA indicates, California
is also the country's largest importer of
electricity.
"No industry is better equipped than
ours with the technology and determination to help the state meet the daunting
energy challenges it faces in the coming
decades-providing reliable and affordable
energy to its citizens in an environmentally and socially responsible manner
that is second to nowhere else in the
world," Layton reflects.
Moreover, exploration is continuing.
An annual industry report by consulting
geologist Ronald Bain highlights a pair
of promising California discoveries: An
oil rediscovery by Temporary Energy in
the abandoned Brentwood Field in Contra
Costa County, and Royale Energy's natural
gas find in the Rio Vista Field.
"California has some of the most prolific fields in the world," Zierman comments. "There are still a lot of oil resources
in the LA Basin and Kern County."
Marketing Service
CIPA approaches its annual meeting
on firm ground with 400 members, including oil and gas producers, service
and supply companies, and royalty owners,
Lockhart details. Its members represent
approximately 70% of California's total
oil production and 90% of California's
natural gas production, she notes.
As the traditional representative of
smaller independent operators, CIPA says
it works to see those operators succeed.
One such demonstration of that support
occurred last year when it formed a crude
marketing service to pick up where a
century-old marketing entity left off. Les
Clark retired as executive vice president
of the Independent Oil Producers Agency
in 2017 after the agency closed its doors
after 113 years of helping small producers
market their oil. CIPA stepped up and
formed the Independent Producers Exchange, Zierman says.
"We wanted to fill the void for our
smaller producers," Zierman relates, explaining that the Independent Producers
Exchange operates under the CIPA um-

brella and holds contracts with refiners
in California while aggregating production
to realize a more favorable price.
"It is potentially a very valuable service
for our members," he says.
Zierman notes California's changing
regulatory climate has prompted CIPA to
expand into a role that provides a connection
between its members and various regulators.
"We have so many agencies with fingers
on our industry now that it is difficult for
an operator to keep up," he muses.
Zierman cites the example of a new
permit checklist posted by the state Water
Quality Control Board for underground injection control permits. The agency updated
the checklist six times and posted each to
its website, but failed to notify permit applicants of the changes. As a result, many
applications were held up, while those submitting them had no idea why.
CIPA now has a process for monitoring
regulatory actions and informing members
of changes. "No longer can the association
merely serve as an industry lobbyist,"
Zierman reflects. "The agency that regulates our members has doubled in size
during the past seven years and much of
that has been for new inspectors and enforcement staff. We have to get more sophisticated to keep up."
Therefore, CIPA notes it has added
staff and consulting expertise, including
a vice president of strategic development
and a regional staff representative in Los
Angeles who will cover issues in the LA
Basin and coastal areas. To cover the increase in member services, CIPA's board
approved a related dues increase last year.
"This industry operated in California
for 100 years and minded its business,"
Zierman said. "That changed 10 years
ago with activist hysteria not based on
any science or facts. We had to deal
with it."
❒

Instrumentation
for Magnetic
Ranging
Instrumentation

Helmholtz Coil Systems
* Calibration of downhole tools
* Active cancellation system

COURTS. . . . . . . . . . .
FROM PAGE 33
for the regulated community and the general public while BLM completes its rulemaking process (AOGR, May 2018, pg.
34)." California, New Mexico and the
environmental groups appealed that ruling
to the 10th Circuit.
The 10th Circuit's decision to uphold
Judge Skavdahl's stay, IPAA explains,
preserves venue in the Wyoming District
Court should the case based on the merits
have a negative outcome in the Northern
District of California.
"The Western Alliance and IPAA have
led the charge in the repeal and replacement of the rule since its introduction,"
the association points out.
❒

High Temperature
Magnetic Field Probes
* Miniature probes down
to 25x11x20mm
* Low noise option
(<30pTrms/√Hz at 1Hz)

US distributor:
www.gmw.com

MAY 2019 97

http://www.gmw.com

American Oil and Gas Reporter - May 2019

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