A firm seeking to expand its oil and gas drilling operations in Cat Canyon has withdrawn its application, becoming the third of three companies to cancel major plans for the area.
Terracore Operating Co., formerly ERG Resources, had sought approval for the West Cat Canyon Revitalization Plan Project to develop 233 new steam injection wells, install four additional steam generators and replace other equipment on 75 acres pithing the 8,054-acre property.
Current operations include 185 active or idle non-thermal wells and 314 active or idle thermal wells. Water for steaming the proposed wells would be obtained from the brine water produced by ERG’s field operations on the project property.
On Monday, the applicant now known as Cat Canyon Resources LLC voluntarily pulled its application, according to Santa Barbara County representatives.
“The applicant made this decision to focus on their existing operations and regulatory entitlements within the State Designated Cat Canyon Oil and Gas Field, and plans for future similar projects within their West Cat Canyon areas of operations,” Energy Division representatives said.
Terracore representatives did not respond to a request for comment.
While noting low oil prices and the looming closure of the Philllips 66 Santa Maria refinery, opponents claimed that the persistence of environmental groups in speaking out against Terracore’s project, coupled with the Environmental Defense Center’s legal strategy, contributed to the project’s ultimate demise.
“The defeat of the three Cat Canyon projects marks the end of one of the greatest assaults on Santa Barbara County’s clean air and water, our climate and our community health,” opponents said in a written statement.
Opponents had expressed concern about the proximity of homes and a school to the drilling site.
“A major looming threat to our air, water and climate has been removed, at least for now,” said Katie Davis, chairwoman of the Sierra Club Los Padres Chapter. “A window of opportunity has opened for our county to turn its attention to building the healthy, sustainable, clean-energy economy of the future instead.”
Hearings before the Santa Barbara County Planning Commission occurred in 2019, drawing standing-room-only crowds of supporters who sought the new job opportunities and opponents fearful of harm to the environment.
In all, the three firms sought permission for three steam injection projects seeking to drill about 760 new wells in the field, add more than 400 tanker truck trips to local roadways and highways, and contributing to greenhouse gas emissions.
Earlier this year, Aera Energy LLC and PetroRock withdrew their applications for more oil drilling in Cat Canyon.
Additionally, Phillips 66 announced plans to close the Santa Maria Refinery in southern San Luis Obispo while moving away from fossil fuels.
“The defeat of these three steam injection projects in Cat Canyon should send a clear signal to the oil industry that we will not compromise our climate for carbon intensive projects like Terracore’s proposal,” said Tara Messing, an EDC staff attorney.
— Noozhawk North County editor Janene Scully can be reached at jscully@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.