Bakersfield Oil Regulator Suspended in Suspected Turf War with State

Bakersfield Oil Regulator Suspended in Suspected Turf War with State

Friday, May 06, 2011
The Bakersfield Californian
by John Cox,

Bakersfield's top oil regulator, Randy Adams, has been suspended with pay over what some suspect is an ongoing turf war between local and Sacramento-based officials over how to review certain drilling-related activities.

The April 15 action appears to stem from Adams' approval of an oil producer's request to increase the volume of hydrogen sulfide -- a toxic drilling byproduct better known as sour gas -- it is allowed to inject into the ground.

Adams' superiors within the state Department of Conservation thought he should have consulted them first -- even though the approval was within his traditional authority, according to a former regulator in charge of such projects.

"It's something that I wouldn't have looked twice at as long as the operator had a legitimate reason to increase ... the injection volumes," said MIchael Stettner, who for about 20 years reviewed such projects as a regulator within the department's Division of Oil, Gas and Geothermal Resources, where Adams serves as deputy supervisor.

Department officials declined to discuss the situation, citing confidential personnel matters.

Adams, a nearly 30-year veteran of DOGGR, said he cannot confirm that the approval was the basis for his indefinite suspension. In fact, he said the department refuses to tell him why it sent him a fax notifying him of the suspension.

But Adams said he has had authority to grant such approvals since taking over the Bakersfield office -- the seat of DOGGR's busiest district -- in 2006.

The situation touches on a simmering dispute over how to regulate underground injection projects, which typically involve returning liquids and gases that come up during the drilling process back underground.

Elena Miller, a lawyer appointed in 2009 by former Gov. Schwarzenegger to head the department, has taken a more cautious approach than her predecessor to underground injection projects.

Oil companies and Kern County lawmakers accuse Miller's staff of dragging their feet on such projects, and say that this costs local jobs and limits production. They note that local offices used to have a greater level of discretion and independence from Sacramento.

The department acknowledges a slowdown in project approvals in recent years, but attributes it to staffing limitations, complex engineering issues and the need to follow state and federal laws protecting drinking water.

Assemblywoman Shannon Grove, R-Bakersfield, has pushed the Brown administration for a clearer process for approval of underground injection projects, and said she expects a resolution soon.

Grove called Adams' suspension "unfortunate" but said she did not know whether he had discretion to approve the volume increase.

"I've never seen his job description," he said.

State Sen. Jean Fuller, R-Bakersfield, also has pushed for a more transparent and streamlined project approval process. She said that although she had no knowledge of Adams' suspension, she hoped it was not related to his approval authority.

"I would be very distressed if I were able to find evidence that this has something to do with the broader ... issuing of permits," she said.

Industry representatives declined to speak specifically about Adams' suspension but they praised his work within the division.

"All I know is he's got an impeccable record," said Rock Zierman, CEO of the California Independent Petroleum Association. "He's worked there for 30 years and he's a valuable asset. I think it's a shame that he's still not there."

Les Clark, executive vice president of Bakersfield's Independent Oil Producers Agency, said the local industry is concerned, especially because assessments on oil production, rather than the state's general fund, cover salaries at DOGGR.

"It's just not good," he said, referring to Adams' suspension. "I'm telling you, it's of concern, especially with no explanations."

"Hopefully they can straighten this thing out and get him in here."

Copyright (c) 2011, The Bakersfield Californian. Distributed by McClatchy-Tribune Information Services.

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