On June 1, in the midst of the turmoil created by the coronavirus pandemic and the death of George Floyd in Minneapolis, California Gov. Gavin Newsom’s administration quietly issued
12 fracking permits to Aera Energy, a joint venture owned by ExxonMobil and Shell.
The fracking permits are the latest example of California’s oil industry benefiting from regulatory or deregulatory action during the COVID-19 pandemic and came just months after the Newsom administration said it
supported taking actions to “manage the decline of oil production and consumption in the state.” Aera, which also received
24 permits from the California Geologic Energy Management Division (CalGEM) on April 3 during the early days of COVID-19, has well-connected
lobbyists in its corner who work for the firm
Axiom Advisors.
One of them,
Jason Kinney, headed up
Newsom’s 2018 transition team and formerly served as a
senior advisor to Newsom while he was lieutenant governor. He is also a senior advisor to California’s Senate Democrats. The other,
Kevin Schmidt, previously served as policy director for Newsom when the latter was lieutenant governor. Aera paid Axiom
$110,000 for its lobbying work in 2019 and, so far in 2020, has paid
$30,000, lobbying reports reveal.
Axiom’s lobbying disclosure records show both Kinney and Schmidt listed as lobbyists and Aera as one of the firm’s clients. Kinney’s wife, Mary Gonsalvez Kinney, was also the
stylist for Newsom’s wife–Jennifer Siebel Newsom–dating back to their time spent living in the San Francisco Bay Area. Kinney and Schmidt did not respond to repeated requests for comment for this article.
Kinney and Schmidt are not the only two with Newsom ties. Aera CEO Christina Sistrunk sits on the governor’s
Task Force on Business and Jobs Recovery, created to craft an economic recovery plan in response to the ongoing COVID-19 economic fallout.
Aera is one of the state’s top drillers and accounts for nearly
25 percent of California’s production, its website claims. Aera landed
490 drilling permits from CalGEM in the first quarter of 2020, according to data collected by FracTracker, and
651 permits in 2019.
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