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The attached order by Kern County Superior Court Judge Bernard C. Barmann Jr.:
- Declares the California Geologic Energy Management Division (“CalGEM”) 2021-2024 policy of denying all well stimulation treatment (WST) permit applications invalid.
- Declares the 2024 Rule (Cal. Code Regs., tit. 14, § 1780, subd. (d)) invalid because CalGEM’s determination that the categorical ban is reasonably necessary is not supported by substantial evidence and lacks a rational connection to the statute’s GHG-reduction purpose.
- Directs CalGEM to set aside the 2024 Rule and the challenged permit denials; reconsider the denied applications; and consider the pending applications under section 3160 and applicable regulations, without reliance on the invalid underground policy or the invalidated Rule.
- The Court does not direct issuance of any permit or impose additional denial-letter or deadline requirements.
The ruling could unlock oil resources in in Kern County’s diatomite formations estimated at up to a billion barrels.
Will this decision have any effect on the dispute related to the California Coastal Commission’s prohibition against the resumption of hydraulic well stimulation at Platform Gilda?
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To date, there have been no public reports of any significant damage to offshore facilities.
Per MMA’s update as of noon today:
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The world’s first floating production unit and the North Sea’s first production facility was in the Argyll field in the UK sector of the North Sea.
JL Daeschler made a presentation on the project at Offshore Europe 1977. See the attached summary.
As JL highlights in the attachment, the press focused on the the perceived negative – the rather high water cut. JL addressed the water production issue by carefully designing the deck handling facilities.
Per JL, “we had some fun for 2 years getting the separator to work in +/- 3 degree pitch and roll, then had the additional water handling challenge.”
The team worked it out. JL can laugh about the challenges now. He proudly notes that “the field produced for 20 years + thanks to evolving technology and first class engineers and contractors.” Such was the life of a pioneering offshore engineer.
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Attached is the Sale Notice for the 3/3/2027 Cook Inlet oil and gas lease sale.
“The proposed sale would make approximately 1.05 million acres available for leasing in the northern portion of the Cook Inlet Planning Area, the same area offered in the Big Beautiful Cook Inlet 1 sale, held in March 2026.” ZERO bids were received at this sale!) Sale summary:
There are currently no active Federal leases in the Cook Inlet. The last well was drilled in 2007. That well was drilled directionally from shore into the Cosmopolitan Unit, a State Unit that included 2 Federal leases at the time.
BlueCrest Energy is operator of the Cosmopolitan Unit. The Alaska Department of Natural Resources threatened to revoke BlueCrest’s Cosmopolitan leases for not meeting the gas drilling requirements, but BlueCrest has reported that they have secured the financing to meet that obligation.
Hilcorp Energy is now the largest oil and gas operator and the largest gas supplier in Alaska. They were the last Federal leaseholder in the Cook Inlet area.
Below are the 8 leases that Hilcorp still held in 2024:
Will Hilcorp participate in the 2027 sale? BlueCrest? Anyone?
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