California Judge Rebukes Newsom Administration Over Secret Fracking Ban

A Kern County judge has ruled against California Governor Gavin Newsom's administration, invalidating a ban on fracking that the judge found was secretly imposed and maintained without adhering to legal requirements. The ruling, issued in a tentative decision on October 8, challenges the administration's directive that effectively prohibited the issuance of well-stimulation permits.

In 2021, following the failure of legislative efforts to ban fracking, Newsom's office is reported to have directed the California Geologic Energy Management Division (CalGEM) to cease approving such permits. However, the implementation of this directive faced internal challenges. Records indicate that under previous leadership, CalGEM had continued to approve permits. The agency reportedly began a categorical denial of applications in July 2021, deviating from case-by-case evaluations.

This shift prompted legal action. Chevron and Aera Energy filed a lawsuit in March 2022, arguing that CalGEM had abandoned legally mandated reviews and implemented an unlawful blanket prohibition without the required public rulemaking process. For two years, the administration reportedly denied the existence of a ban, with its lawyers describing claims of a prohibition as "hyperbole and speculation."

In October 2024, CalGEM acknowledged imposing what critics called a "shadow ban" to bypass regulatory procedures. Judge Bernard Barmann Jr. found that the explanations provided to permit applicants were not the true basis for rejection. Instead, the administration cited climate change and public health, while the decision to deny all applications was made regardless of individual merit. Barmann concluded that these denials were "arbitrary and unsupported" and lacked a rational connection to the stated environmental goals.

Subsequently, CalGEM formally banned well stimulation in 2024, citing the need to reduce greenhouse gas emissions. However, the agency's own 2015 environmental impact report had previously suggested that a statewide moratorium would reduce oil production within California but not eliminate the state's demand for petroleum. The report indicated that California would likely need to import more oil from foreign and out-of-state sources, potentially from regions with less stringent environmental controls. It projected that approximately 57 million barrels of oil would need to be replaced annually, with associated costs and environmental impacts from transportation.

Judge Barmann vacated the formal regulation, stating that CalGEM's determination that the ban was necessary to reduce greenhouse gases was not supported by substantial evidence. The ruling comes as California faces high gasoline prices, with Governor Newsom recently taking action to suspend the summer-blend gasoline requirement to allow the cheaper winter blend to enter the market earlier. This move, aimed at providing relief to consumers amidst rising prices, has been framed by the administration as a response to national fuel cost increases.