In a recent legal development, the California Court of Appeal, First District, denied a request for a rehearing in the ongoing case between the Sunflower Alliance and the California Department of Conservation (CalGEM) regarding Reabold California LLC's project in the Brentwood Oil Field.
Summary of Case
The case centers on CalGEM's approval of a project allowing Reabold to convert a former oil well into a Class II injection well. This project involved minor modifications to the well for reinjecting produced water back into the aquifer, reducing the need to transport the water to a disposal site. CalGEM approved the project under a Class 1 categorical exemption of the California Environmental Quality Act (CEQA), arguing that the changes involved were minor and had negligible environmental impacts.
Sunflower Alliance challenged this approval, contending that the conversion represented a significant change in the well's use, which should not qualify for a Class 1 exemption. The Contra Costa County Superior Court initially sided with Sunflower, issuing a writ of mandate requiring CalGEM to rescind the project's approval. However, upon review, the Court of Appeal overturned this decision, stating that the well conversion did meet the criteria for a Class 1 exemption, as the physical changes were minimal and environmental risks were low.
Rehearing Denied
The Court’s decision to deny Sunflower's petition for a rehearing is noteworthy because such denials are not typical. It underscores the appellate court’s confidence in its previous ruling, affirming that the legal and procedural grounds for granting the exemption were sound. The Court took this opportunity to emphasize its stance further, clarifying that the requirement for environmental assessment is aligned with existing CEQA guidelines and applies to many categorical exemptions.
This decision is a positive outcome for California’s oil industry because it maintains the streamlined process for well conversion projects that meet CEQA’s standards. The Court's rejection of the rehearing reinforces the validity of allowing similar projects to proceed with greater legal certainty.