Governor Jerry Brown signed an executive order Wednesday implementing California’s first-ever mandatory water restrictions that require cities and towns to cut their water usage by 25 percent over the next nine months. But Brown will not cut oil company water use for fracking because the industry pays over $20 billion in state and local taxes.
Brown promised his extreme measures could save up to 1.5 million acre-feet of water, about enough water to fill Lake Oroville. But in an unsurprising gift to one of the state’s highest taxpayers, he exempted the oil industry’s consumption of 2 million gallons of water each day for production and processing of crude oil.
Reuters reported that the state’s powerful environmentalist lobby is furious that oil companies that use between one to thirteen million gallons of water per well for fracking are being left outside of Brown’s mandatory water cuts.
Breitbart
revealed that the U.S. Energy Information Administration (EIA) released a
Drilling Productivity Report (DPR) that fracking will continue in four major shale deposit regions because the
EIA estimates that the break-even cost for just drilling and producing crude oil from fracking may have a $25 per barrel break-even price.
California Monterrey Shale formation appears to be the largest potential region for “tight oil” shale deposits in America, and many operators are already using fracking techniques to drill wells in California. The
Sacramento Bee reported that up to half of the hundreds of new wells drilled each year in the San Joaquin Valley are using fracking, according to
a new study required by the 2013 law that regulates the practice.
The California Division of Oil, Gas and Geothermal Resources sent letters in 2012 asking California’s oil producers to voluntarily post records for all their fracking activity on
FracFocus. The petroleum industry agreed to comply, as long as they could withhold their chemical solutions mixtures as exempt “trade secrets.” After environmentalists screamed for full-disclosure or nothing, the oil industry has since refused to disclose.
Zack Malitz of environmental group Credo
complained to Reuters, “Governor Brown is forcing ordinary Californians to shoulder the burden of the drought by cutting their personal water use while giving the oil industry a continuing license to break the law and poison our water.” He added, “Fracking and toxic injection wells may not be the largest uses of water in California, but they are undoubtedly some of the stupidest.”
http://www.breitbart.com/california...industry-water-use-because-of-tax-collection/