Aera Energy files lawsuit against Monterey County for passage of Measure Z

Aera's lawsuit alleges that the County's attempt to regulate oil and gas production is preempted by state law administered by the Department of Oil, Gas and Geothermal Resources (DOGGR) and the Water Resources Control Board. Under the state's regulatory framework, oil production in San Ardo, Calif. is produced under the most stringent regulations in the country.

The lawsuit also claims that the results of the election, and loss of the company's ability to produce oil in Monterey County, constitutes a violation of Aera's vested rights resulting in a taking of its property without just compensation in violation of the state and federal constitutions. 

"We filed this lawsuit to protect our workers, our legal rights and our many stakeholders in Monterey County that rely on Aera," said Christina Sistrunk, Aera president and CEO. "Measure Z won't just hurt our company. It will inflict significant unnecessary hardship on our employees and their families, as well as on Monterey County and its citizens, by exporting good jobs and essential revenues out of the County and into foreign countries."

The lawsuit is in addition to the mutually agreed to stipulation between Aera and the County of Monterey, which stays the implementation of Measure Z, until litigation is complete.

Proponents of Measure Z campaigned on the premise that the initiative would be a ban on hydraulic fracturing, a process which in reality does not take place in the Monterey County.  But this misleading measure also contained provisions that would prohibit many other forms of production and ultimately shut down the oil industry in the County. 

Roughly 150 employees and contractors that work at Aera's San Ardo facility are potentially impacted by Measure Z.  In addition, Aera is one of the major property taxpayers in Monterey County.  Shutting down operations, as Measure Z requires, will mean the loss of millions of dollars to education, public safety and other vital services.

"We regret the necessity to take this action, but had no choice as it was the only remedy available to us to protect our legal right to operate in Monterey County and continue to safely and responsibly produce oil that is vitally needed in California."

Monterey County is the 4^th largest oil-producing county in California.  Nearly all crude oil and natural gas produced in Monterey County comes from the San Ardo oil field in the unincorporated southern part of the County.  According to DOGGR, oil production in San Ardo was 7.8 million barrels in 2015, making it the 13th largest producing field in California, and the 46th largest field in the United States. Aera is one of the largest operators in the San Ardo oil field, with approximately 5,050 acres.

Aera Energy is proud to be a respected and responsible California oil company accounting for nearly 25 percent of the state's oil production. Headquartered in Bakersfield, Aera is known for excellent safety and environmental performance, innovative business practices, application of cutting-edge technology, a dynamic company culture and active community involvement. With operations centered in the San Joaquin Valley, much of Aera's oil production comes from Kern County. Aera also has active oil field operations in Ventura and Fresno counties. Aera and its predecessor companies have been producing heavy crude oil in San Ardo in a safe and environmentally responsible way since 1952.

SOURCE Aera Energy

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