Trio Petroleum affirms California Supreme Court decision to strike down Measure Z

(WO) – Trio Petroleum Corp. commented on the California Supreme Court affirming the judgement of the Court of Appeal and ruled last week to strike-down Measure Z.

CEO Frank Ingriselli stated, “We are pleased that the California Supreme Court has affirmed the judgment of the Court of Appeal, striking down Measure Z. This measure, if not struck down by the Supreme Court, might have caused unnecessary difficulties in the development of our South Salinas Project, and strained what is currently a good working relationship with Monterey County. Everyone knows that California is a challenging regulatory environment for the oil and gas industry. Eliminating Measure Z is good for Monterey County and the State of California and simplifies our path forward, which we welcome”.

“Measure Z” is a ballot measure that was passed in 2016 by Monterey County voters for the purpose of giving the county increased regulatory authority on oil and gas operations. Prior to being struck down last week by the California Supreme Court, the measure was struck down by the Superior Court of California in 2018 and by the California Appellate Court in 2020.

Measure Z, if implemented, might have caused delays and created obstacles in the continued responsible and necessary development of the oil and gas industry in California, and specifically the company’s primary asset, the South Salinas Project.

The California Supreme Court concluded that Measure Z contradicts Public Resources Code Section 3106, affirming the judgment of the Court of Appeal. Section 3106 provides, among other things, that the state oil and gas supervisor shall supervise oil production to permit well owners and operators to utilize all methods and practices that are suitable for the purpose of increasing the ultimate recovery of underground hydrocarbons.