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.

Oil & Gas Post

Promote Your Page Too

Statoil temporarily suspended production at Njord and Visund

Statoil temporarily suspended production at Njord and Visund

11 April 2011
Scandinavian Oil and Gas

Oslo. Production on the Njord field in the Norwegian Sea has been temporarily suspended as a safety precaution due to internal damage to flexible risers. The damage was detected during a scheduled inspection.

Statoil has also found it necessary to conduct special investigations at Visund, and this installation will therefore also be shut down today.

In the autumn of 2010, faults were discovered on some of the risers on the Njord A platform. An extraordinary inspection programme was therefore initiated. The inspection was performed visually by means of video camera that was sent down the risers.

Suspended production Risers are pipes that carry oil and gas between the seabed and the installation. They are constructed of multiple layers of plastic and steel.

The current challenges are limited to a specific type of riser technology.

Internal damage of this type does not threaten the structural integrity of the risers, but over time it will reduce resistance to leakage. The risers are therefore immediately removed from operation when damage is detected.

'Damaged risers will be shut down until they have been repaired or replaced. The rest will be shut down until they have been inspected and found satisfactory,' says Jannicke Hilland, Head of Joint Operations.

Njord has been shut down since 1 April, whereas Visund will be shut down today. The shutdown results in suspended production on the fields. The total field production for Njord is some 70 000 barrels of oil equivalent (boe), whereas the production on the Visund field totals about 50 000 boe. The inspection is still in progress, and the production will be phased in as the risers have been inspected and approved.

The Norwegian Petroleum Directorate (NPD) and the Petroleum Safety Authority Norway (PSA) have been informed of the matter.
Other installations Equivalent risers are in use also on other installations on the Norwegian continental shelf: Veslefrikk, Snorre A and B, Norne, Åsgard A and B and Glitne are Statoil-operated fields belonging to this category. On these installations, however, the risers are connected to a pipeline system on the seabed which reduces the risk of damage.

There have been no known incidents or observations in the operating period that suggest damage to risers here.

Risers on all installations are subject to continuous monitoring and routine inspections in keeping with applicable inspection programmes.

Statoil had a meeting with the PSA this afternoon, describing the riser challenges. The company has also appointed a taskforce to identify actions that solve the operating challenges that the involved risers present. The taskforce addresses challenges across the Statoil group.