Bill Text: CA AB669 | 2013-2014 | Regular Session | Amended

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Bill Title: Oil and gas: drilling.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-02-03 - Died on inactive file. [AB669 Detail]

Download: California-2013-AB669-Amended.html

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BILL NUMBER: AB 669	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  APRIL 17, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly  Member   Stone
  Members   Stone   and Williams 

    (   Coauthor:  
Assembly Member   Williams   )


                        FEBRUARY 21, 2013

   An act to amend Sections 3108, 3203, and 3227 of  , and to add
Sections 3017, 3203.1, 3203.2, and 3203.3 to,  the Public
Resources Code, relating to oil and gas.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 669, as amended, Stone. Oil and gas: drilling.
   Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation regulates the drilling,
operation, maintenance, and abandonment of oil and gas wells in the
state. The State Oil and Gas Supervisor supervises the drilling,
operation, maintenance, and abandonment of wells and the operation,
maintenance, and removal or abandonment of tanks and facilities
related to oil and gas production within an oil and gas field
regarding safety and environmental damage. Existing law further
requires a person who acquires the right to operate a well or
production facility, whether by purchase, transfer, assignment,
conveyance, exchange, or other disposition, to meet specific
requirements before drilling operations.
   This bill would additionally require the operator prior to
drilling, redrilling, or deepening operations to submit proof to the
supervisor that the applicable regional water quality control board
has approved the disposal method and location of wastewater disposal
for the well.
   Existing law requires the supervisor, on or before the first day
of October of each year, to make public a report on specified
information. Existing law requires an operator of a well, on or
before the end of each month, to file with the supervisor a statement
for the last preceding calendar month detailing specified
information.
   This bill would additionally require the supervisor to include
information on the origin and total amount of freshwater used in each
county for the production of oil and gas production, the disposal of
wastewater from oil and gas production in each county, and the well
casing failures in each county. The bill would additionally require
the operator of a well to include in the statement information on the
origin and total amount of freshwater used in each well or in each
oil field if the operator has multiple wells within the oil field,
and the disposal of wastewater.  Because a violation of this
requirement is a crime, this bill would impose a state-mandated local
program.  
   This bill would require the operator of a well, at least 30 days
prior to commencing a hydraulic fracturing treatment, as defined, to
provide a copy of the approved hydraulic fracturing treatment permit
to specified surface property owners. The bill would authorize those
property owners to request the applicable regional water quality
control board to perform water quality sampling and testing on any
water well suitable for drinking or irrigation purposes, as
specified. The bill would require a notice of intent to drill,
rework, or deepen a well where hydraulic fracturing will occur to
include specified information. The bill would require, as a part of a
notice of intent to drill, rework, or deepen a well where hydraulic
fracturing will occur, the operation of a well to provide to the
appropriate water quality control board a groundwater monitoring plan
containing specified information for approval under specified
circumstances. Because a violation of these requirements is a crime,
this bill would impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 3017 is added to the Public
Resources Code, to read:
   3017.  "Hydraulic fracturing" means the injection of fluids or
gases into an underground geologic formation with the intention to
cause or enhance fractures in the formation, in order to cause or
enhance the production of oil or gas from a well. Alternate terms
include, but are not limited to, "fracking," "hydrofracking," and
"hydrofracturing." 
   SECTION 1.   SEC. 2.   Section 3108 of
the Public Resources Code is amended to read:
   3108.  (a) On or before the first day of October of each year the
supervisor shall make public, for the benefit of all interested
persons, a report in writing showing:
   (1) The total amounts of oil and gas produced in each county in
the state during the previous calendar year.
   (2) The total cost of the division for the previous fiscal year.
   (3) The total amount delinquent and uncollected from any
assessments or charges levied pursuant to this chapter.
   (4) The origin and total amount of freshwater used in each county
for oil and gas production during the previous calendar year.
   (5) The surface and underground destinations and total amount of
disposed wastewater from oil and gas production in each county during
the previous calendar year.
   (6) The total number of well casing failures in each county, the
exact location of these wells, the reason for the failures, and at
what point the failures occurred, such as during well completion,
well stimulation, or well production, during the previous calendar
year.
   (b) The report shall also include other information as the
supervisor deems advisable.
   SEC. 2.   SEC. 3.   Section 3203 of the
Public Resources Code is amended to read:
   3203.  (a) The operator of a well, before commencing the work of
drilling the well, shall file with the supervisor or the district
deputy a written notice of intention to commence drilling. Drilling
shall not commence until approval is given by the supervisor or the
district deputy. If the supervisor or the district deputy fails to
give the operator written response to the notice within 10 working
days from the date of receipt, that failure shall be considered as an
approval of the notice and the notice, for the purposes and intents
of this chapter, shall be deemed a written report of the supervisor.
If operations have not commenced within one year of receipt of the
notice, the notice shall be deemed canceled. The notice shall contain
the pertinent data the supervisor requires on printed forms supplied
by the division or on other forms acceptable to the supervisor. The
supervisor may require other pertinent information to supplement the
notice.
   (b) After the completion of any well, this section also applies as
far as may be, to the deepening or redrilling of the well, any
operation involving the plugging of the well, or any operations
permanently altering in any manner the casing of the well. The number
or designation of any well, and the number or designation specified
for any well in a notice filed as required by this section, shall not
be changed without first obtaining a written consent of the
supervisor.
   (c) If an operator has failed to comply with an order of the
supervisor, the supervisor may deny approval of proposed well
operations until the operator brings its existing well operations
into compliance with the order. If an operator has failed to pay a
civil penalty, remedy a violation that it is required to remedy to
the satisfaction of the supervisor pursuant to an order issued under
Section 3236.5, or to pay any charges assessed under Article 7
(commencing with Section 3400), the supervisor may deny approval to
the operator's proposed well operations until the operator pays the
civil penalty, remedies the violation to the satisfaction of the
supervisor, or pays the charges assessed under Article 7 (commencing
with Section 3400).
   (d) Prior to the approval of the commencement of any drilling,
redrilling, or deepening of a well, the operator shall submit written
proof to the supervisor that  a waste discharge report has been
f   iled with  the applicable regional water quality
control board  has approved   pursuant to
Section 13260 of the Water Code for  the disposal 
method and location  of the wastewater for the well.
   SEC. 4.    Section 3203.1 is added to the  
Public Resources Code   , to read:  
   3203.1.  (a) At least 30 days prior to commencing a hydraulic
fracturing treatment, the operator shall provide a copy of the
approved hydraulic fracturing treatment permit to every surface
property owner or authorized agent of the owner whose property line
location is either of the following:
   (1) Within a 1,500 foot radius of the wellhead.
   (2) Within 500 feet from the horizontal projection of all
subsurface portions of the designated well to the surface.
   (b) The operator shall provide the division with a list of
entities and property owners notified pursuant to subdivision (a).
   (c) (1) A property owner notified pursuant to subdivision (a) may
request the applicable regional water quality control board to
perform water quality sampling and testing on any water well suitable
for drinking or irrigation purposes and on any surface water
suitable for drinking or irrigation purposes as follows:
   (A) Baseline measurements prior to the commencement of the
hydraulic fracturing treatment.
   (B) Followup measurements after the hydraulic fracturing treatment
on the same schedule as the pressure testing of the well casing of
the hydraulically fractured well.
   (2) The regional water quality control board may contract with an
independent third party that adheres to board-specified standards and
protocols to perform the water sampling and testing.
   (3) The regional water quality control board shall retain and
archive sufficient samples collected pursuant to this subdivision to
permit a reasonable number of additional analyses. 
   SEC. 5.    Section 3203.2 is added to the  
Public Resources Code  , to read:  
   3203.2.  A notice of intent to drill, rework, or deepen a well
where hydraulic fracturing will occur shall include all of the
following information:
   (a) A description of the estimated quantity of water planned to be
used in the hydraulic fracturing process.
   (b) The source or sources of water to be used. 
   SEC. 6.    Section 3203.3 is added to the  
Public Resources Code   , to read:  
   3203.3.  (a) As part of any notice of intent to drill, rework, or
deepen a well where hydraulic fracturing will occur, the operator
shall provide a groundwater monitoring plan for approval or denial by
the appropriate regional water quality control board. The
groundwater monitoring plan shall include, at a minimum, all of the
following information:
   (1) The current water quality of the groundwater basin through
which the well will be drilled that is sufficient to characterize the
quality of the aquifer and identify the zone of influence of the
proposed well.
   (2) Water quality data or a plan to obtain data regarding the
presence and concentration of the constituents to be used in, or that
can be influenced by, the drilling process.
   (3) A plan that includes sites for monitoring wells that will
allow the detection of contamination associated with well operation
during and after the period of its active use.
   (4) An emergency monitoring plan that will be implemented in the
case of well casing failure or any other event that has the potential
to contaminate groundwater.
   (b) The operator shall submit electronically the water quality
monitoring data to the State Water Resources Control Board's
geotracker database and any public data registry identified by the
division for disclosure of hydraulic fracturing data.
   (c) This section does not apply if the appropriate regional water
quality control board confirms that the proposed well will not
penetrate or will not be located within the zone of influence of an
aquifer that is designated for a beneficial use. 
   SEC. 3.   SEC. 7.   Section 3227 of the
Public Resources Code is amended to read:
   3227.  (a) The owner of a well shall file with the supervisor, on
or before the last day of each month, for the last preceding calendar
month, a statement, in the form designated by the supervisor,
showing all of the following:
   (1) The amount of oil and gas produced from each well during the
period indicated, together with the gravity of the oil, the amount of
water produced from each well, estimated in accordance with methods
approved by the supervisor, and the number of days during which fluid
was produced from each well.
   (2) The number of wells drilling, producing, injecting, or idle,
that are owned or operated by the person.
   (3) What disposition was made of the gas produced from each field,
including the names of persons, if any, to whom the gas was
delivered, and any other information regarding the gas and its
disposition that the supervisor may require.
   (4) The amount of fluid or gas injected into each well used for
enhanced recovery, underground storage of hydrocarbons, and any other
information regarding those wells that the supervisor may require.
   (5) The total amount of wastewater generated per well, the amount
of wastewater disposed per disposition type, and the location of each
disposition site.
   (6) The origin and total amount of freshwater used in each well or
in each oil field if the operator has multiple wells within the oil
field.
   (b) An operator that produces oil by the application of mining or
other unconventional techniques shall file a report with the
supervisor, on or before March 1 of each year, showing the amount of
oil produced by those techniques in the preceding calendar year.
   (c) Upon request and making a satisfactory showing therefor, a
longer filing period may be established by the supervisor for any
particular owner or operator.
   SEC. 8.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.