Bill Text: CA SB1125 | 2021-2022 | Regular Session | Amended
Bill Title: Oil and gas: alternative to bond requirement: financial accounts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-04-19 - April 19 set for first hearing. Failed passage in committee. (Ayes 3. Noes 6. Page 3439.) Reconsideration granted. [SB1125 Detail]
Download: California-2021-SB1125-Amended.html
Amended
IN
Senate
March 16, 2022 |
Introduced by Senator Grove |
February 16, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law authorizes the Geologic Energy Management Division in the Department of Conservation to regulate the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires an operator proposing to perform a well stimulation treatment, as defined, to apply to the State Oil and Gas Supervisor or a district deputy for a permit to perform the well stimulation treatment and imposes other requirements and conditions on the use of well stimulation treatments.
Existing law also defines “hydraulic fracturing,” commonly known as fracking, to mean a well stimulation treatment that, in whole or in part, includes the pressurized injection of hydraulic fracturing fluid or fluids into an underground geologic formation in order to fracture, or with the intent to fracture, the formation, thereby causing or enhancing, for specified purposes, the
production of oil or gas from a well.
This bill would make nonsubstantive changes to that definition.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 3204.5 is added to the Public Resources Code, to read:3204.5.
(a) There is hereby established in the division a program to permit a small, independent oil producer to establish a separate, privately owned financial account for the purpose of financing the costs related to ceasing operations or plugging and abandoning a well in lieu of maintaining a bond required pursuant to this article. A small, independent oil producer that is selected for the program is exempt from the requirement to maintain a bond pursuant to this article, except as otherwise provided in subdivision (b) or (c).“Hydraulic fracturing” means a well stimulation treatment that, in whole or in part, includes the pressurized injection of hydraulic fracturing fluid or fluids into an underground geologic formation in order to fracture, or with the intent to fracture, the formation, thereby causing or enhancing, for purposes of this division, the production of oil or gas from a well.