City of Culver City, California
Agenda Item Report
Meeting Date: 07/02/12 Item Number: A-2
CITY COUNCIL AGENDA ITEM: 1) Adoption of a Resolution Urging the State of
California’s Division of Oil, Gas & Geothermal Resources (DOGGR) to Place a
Moratorium on Hydraulic Fracturing (“Fracking”); and 2) Discussion of Options
Related to Local Regulation of Fracking.
Contact Person/Dept.: Carol Schwab and
Heather Baker
Phone Number: 310-253-5660
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) All Email Notification Categories (06/27/12)
Department Approval:
Carol Schwab (06/28/12)
City Attorney Approval:
Carol Schwab (06/28/12)
Chief Financial Officer Approval:
Jeff Muir (06/28/12)
City Manager Approval:
John Nachbar (06/28/12)
RECOMMENDATION:
Staff recommends the City Council:
1. Adopt a Resolution urging the State of California’s Division of Oil, Gas & Geothermal
Resources (DOGGR) to place a moratorium on hydraulic fracturing (“fracking”); and
2. Discuss options related to local regulation of fracking and direct staff as deemed
appropriate.
BACKGROUND:
DOGGR is currently engaged in the process of studying potential regulations on
fracking. As part of this effort, DOGGR has held several community meetings
throughout the State seeking public comment relating to potential regulation of
fracking. On June 12, 2012, DOGGR held one such community meeting in the City
of Culver City, City Council Chambers, during which a significant number of people
in the Los Angeles County Region, including Culver City residents, provided
testimony opposing the practice of fracking and urging DOGGR to adopt State
legislation banning fracking.
At the June 12
th
community meeting, Mayor Weissman, on behalf of the City
Council, provided testimony regarding the potential risks of fracking and encouraged
the State to take the necessary and appropriate action to provide comprehensive
regulations concerning the practice of fracking in order to ensure the public health
and safety and the environment are protected.
City of Culver City, California
Agenda Item Report
At the City Council meeting of June 18, 2012, the City Council directed staff to
agendize the consideration of a resolution urging DOGGR to place a moratorium on
fracking and the disposal of fracking wastewater by injection wells until such time as
DOGGR enacts legislation to regulate fracking.
Staff recommends the City Council consider and discuss these items and direct staff
as deemed appropriate.
DISCUSSION:
Proposed Resolution:
The proposed Resolution urges DOGGR to immediately place a moratorium on
hydraulic fracturing and on the disposal of fracking wastewater by injection wells
until DOGGR takes all necessary and appropriate actions to adopt, implement and
enforce comprehensive regulations concerning the practice of fracking that will
ensure that public health and safety and the environment will be adequately
protected.
City’s Authority to Adopt Local Fracking Regulations
During public comment at recent City Council meetings, the Culver City community
expressed a desire for the City to adopt local regulations or a ban on fracking.
There is some dispute as to whether a municipal ban on fracking would be
preempted by California’s delegation of authority to DOGGR to regulate oil and gas
production, particularly with respect to subsurface operations. Although some of
DOGGR's regulations may affect fracking, DOGGR thus far has not directly
regulated fracking. For this and other reasons, an argument may be made that a
City ban or moratorium on fracking is not preempted. If the City were to enact a
temporary ban or moratorium on fracking, the City could anticipate that the oil
operator, Plains, Exploration and Production Company (PXP), may mount a legal
challenge to such ban or moratorium. The costs of defending against such a lawsuit
would be significant and it is uncertain as to how a court would ultimately rule.
FISCAL ANALYSIS:
There is no fiscal impact associated with the adoption of the proposed Resolution.
Should City Council choose to regulate or ban fracking in the future, there would be
costs associated with the enforcement of such regulations. Such costs are difficult
to determine at this time. In addition, if a ban was adopted and it caused a decrease
in oil drilling/production in the City, this could result in a decrease in revenues from
permit fees and business taxes, however such a result is speculative. Further,
should the City’s ban or regulations be legally challenged, there would be significant
legal costs in defending such lawsuit. City of Culver City, California
Agenda Item Report
ATTACHMENT(S):
1. Proposed Resolution
MOTION(S):
That the City Council:
1. Adopt a Resolution urging the State of California’s Division of Oil, Gas & Geothermal
Resources (DOGGR) to place a moratorium on hydraulic fracturing (“fracking”); and
2. Discuss options related to local regulation of fracking and direct staff as deemed
appropriate.
MEETING DATE:
AGENDA ITEM:
07/02/12
1) Adoption of a Resolution Urging the State of
California's Division of Oil, Gas & Geothermal
Resources (DOGGR) to Place a Moratorium on Hydraulic
Fracturing ("Fracking"); and 2) Discussion of Options
Related to Local Regulation of Fracking.
ATTACHMENTS
Pages
1. Proposed Resolution
1 — 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, URGING THE STATE OF
CALIFORNIA, DEPARTMENT OF CONSERVATION, DIVISION
OF OIL, GAS & GEOTHERMAL RESOURCES (DOGGR) TO
PLACE A MORATORIUM ON HYDRAULIC FRACTURING
("FRACKING").
I RESOLUTION NO. 2012-R
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WHEREAS, currently, and over the next several years, hundreds of new oil
8 wells will be drilled in the Inglewood Oil Field (the "Oil Field'), which spans across the
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10 jurisdictions of the City of Culver City and unincorporated Los Angeles County and is
11 located in a heavily populated urban area; and
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WHEREAS, hydraulic fracturing, also known as "fracking," is generally a
13 technique to increase oil and gas production by injecting fluids at pressures sufficient to
14 create fractures in subsurface rock or other tight geological formations in order to release
15 petroleum or natural gas for extraction; and
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WHEREAS, the neighborhoods and communities surrounding the Oil Field,
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18 including Culver City residents, have expressed alarm about the potential impacts of
19 fracking on the public health and safety and the environment; and
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WHEREAS, the California State Department of Conservation, Division of Oil,
21 Gas & Geothermal Resources (DOGGR) is currently engaged in the process of studying
22 potential regulations on fracking. As part of this effort, DOGGR has held several
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community meetings throughout the State seeking public comment relating to potential
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regulation of fracking; and
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WHEREAS, On June 12, 2012, DOGGR held one such community meeting
27 in the City of Culver City, during which a significant number of people in the Los Angeles
28 1 County Region, including Culver City residents and the Culver City City Council (the "City
2 Council"), provided testimony regarding the potential risks of fracking, the concern that
3 fracking is generally unregulated and that no further fracking should occur, at least until
4 DOGGR has adopted fracking regulations that can ensure protection against the risks to
5 air quality, water quality and ground movement; and
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WHEREAS, at the community meeting, little or no evidence or testimony was
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8 offered that fracking was safe in the absence of such regulations while numerous members
9 of the public offered considerable testimony that fracking posed a substantial risk to the
10 community and the environment; and
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WHEREAS, at the City Council meeting of June 18, 2012, in response to the
12 community's concerns, the Council directed staff to agendize the consideration of a
13 resolution urging DOGGR to place a moratorium on fracking and the disposal of fracking
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15 wastewater by injection wells until such time as DOGGR enacts legislation to regulate
16 fracking.
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NOW, THEREFORE, the City Council of the City of Culver City DOES
18 HEREBY RESOLVE as follows:
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1. The City of Culver City urges Governor Jerry Brown and the California
20 State Department of Conservation, Division of Oil, Gas & Geothermal Resources
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22 (DOGGR), to immediately place a moratorium on hydraulic fracturing and on the disposal
23 of fracking wastewater by injection wells until DOGGR takes all necessary and appropriate
24 actions to adopt, implement and enforce comprehensive regulations concerning the |1010|)5 practice of flecking that will ensure that public he alth and safety and the environment will
26 be adequately protected.
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-2- APPROVED AS TO FORM:
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2. The City Clerk is hereby directed to transmit a copy of this Resolution
2 to Governor Jerry Brown and DOGGR.
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APPROVED and ADOPTED this day of
2012.
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10 ATTEST:
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13 MARTIN R. COLE, City Clerk
Al2-00521
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ANDREW WEISSMAN , MAYOR
City of Culver City, California
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