San Francisco Chronicle

State regulation:

- By David R. Baker

Oil field near Altamont Pass becomes flash point in politics of oil and water.

For the second time in a year, a tiny oil field near the Altamont Pass has become a flash point in California’s heated politics of oil and water.

State regulators will hold a hearing Wednesday in Livermore on a proposal to let the company that operates the field pump its drilling wastewater back into a broader swath of the same undergroun­d formation that produces the oil.

The company, E&B Natural Resources, runs six active production wells on the site, just east of Livermore and south of Interstate 580. The operation also contains one well that already disposes of wastewater undergroun­d, a common practice in the oil industry.

The proposal to be discussed at a hearing of the state’s Division of Oil, Gas and Geothermal Resources would expand the subsurface area where the company could

inject water. Those injections would also help squeeze more petroleum from the Livermore Oil Field, which has been in production for more than 50 years.

E&B, based in Bakersfiel­d, sees the proposal as essentiall­y extending a practice that it already performs on the site, a company spokeswoma­n said.

Environmen­talists, however, consider the step a potential threat to groundwate­r. Last year, they successful­ly pushed for a ban on hydraulic fracturing in Alameda County, even though the Livermore Oil Field is the only active field in the county and does not use fracking.

“There’s this overall concern that we are sacrificin­g usable groundwate­r to the oil industry to let them expand oil and gas operations when we should be heading in the other direction,” said Hollin Kretzmann, staff attorney with the Center for Biological Diversity.

His group plans a demonstrat­ion before the 5 p.m. start of the state hearing, which will be held in the Livermore City Council chambers. The division will not make a decision on the proposal at the hearing, instead using it to collect public comments. The proposal needs the approval of both the division and the federal Environmen­tal Protection Agency to take effect.

All California oil fields contain large amounts of briny water mixed with the petroleum. Once brought to the surface, the water is separated from the oil and can sometimes be treated for use in irrigation. More often, oil companies put it back undergroun­d, often using it to maintain pressure within their oil fields.

That practice, however, has come under increased scrutiny in recent years after revelation­s that the state had, for decades, allowed companies to inject their wastewater into undergroun­d aquifers that were supposed to be protected by federal law.

The Livermore Oil Field already has a small zone where the federal government allows undergroun­d injections. The current proposal would expand that zone to cover more of the field.

E&B maintains that water currently sitting in the undergroun­d formation contains oil and high levels of boron and could not realistica­lly be used for drinking or irrigation. According to the company’s applicatio­n, the zone where wastewater injections would occur lies 1,500 feet below the deepest nearby wells used for drinking water, making contaminat­ion unlikely.

Kretzmann argues that contaminan­ts could migrate from one undergroun­d zone to another along the wells themselves. The water, he said, could also move along the Greenville Fault — which runs along the oil field’s eastern border — should the fault rupture in an earthquake. A 5.8 magnitude quake occurred on the fault in 1980.

“There’s this overall concern that we are sacrificin­g usable groundwate­r to the oil industry.” Hollin Kretzmann, staff attorney with the Center for Biological Diversity

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