Bill Text: CA SB1132 | 2013-2014 | Regular Session | Amended
Bill Title: Oil and gas: well stimulation treatments.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2014-05-29 - Read third time. Refused passage. (Ayes 16. Noes 16. Page 3701.) [SB1132 Detail]
Download: California-2013-SB1132-Amended.html
BILL NUMBER: SB 1132 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 27, 2014
AMENDED IN SENATE MAY 6, 2014
AMENDED IN SENATE APRIL 21, 2014
AMENDED IN SENATE APRIL 10, 2014
AMENDED IN SENATE MARCH 27, 2014
INTRODUCED BY Senators Mitchell and Leno
(Principal coauthors: Assembly Members Ammiano and Levine)
(Coauthors: Senators Corbett, DeSaulnier, Hancock, Jackson, Lieu,
and Wolk)
(Coauthors: Assembly Members Bloom, Chesbro, Gordon, Skinner,
Stone, and Williams)
FEBRUARY 20, 2014
An act to amend Sections 3157 and 3160 of, and to repeal and add
Section 3161 of, the Public Resources Code, relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
SB 1132, as amended, Mitchell. Oil and gas: well stimulation
treatments.
Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation regulates the drilling,
operation, maintenance, stimulation, and abandonment of oil and gas
wells in the state. The State Oil and Gas Supervisor, or supervisor,
supervises the drilling, operation, maintenance, stimulation, 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 requires an operator, prior to performing a well
stimulating treatment, as defined, on a well, to obtain approval
from the supervisor or district deputy. Under existing law, a person
who violates any prohibition specific to the regulation of oil or gas
operations is guilty of a misdemeanor.
Existing law requires the Secretary of the Natural Resources
Agency, on or before January 1, 2015, to cause to be conducted, and
completed, an independent scientific study on well stimulation
treatments, including acid well stimulation and hydraulic fracturing
treatments. Existing law requires the division to finalize and
implement regulations regulating well stimulation treatments by
January 1, 2015.
This bill would revise the definition of "well stimulation
treatment." The bill would require the scientific study to be
conducted and completed no later than June 30, 2016, and to consider
additional elements, including, among other things, evaluating
various potential direct, indirect, and cumulative health and
environmental effects of onshore and offshore well stimulation and
well stimulation treatment-related activities, as specified. The bill
would also prohibit all well stimulation treatments until (1) the
Secretary of the Natural Resources Agency convenes a committee to
review the scientific study, as specified, (2) the Governor issues a
determination that specific measures are in place to ensure that well
stimulation treatments do not contribute to the
deterioration of environmental conditions in a way that threatens
public health and welfare or to the environmental and economic
sustainability of the state, create adverse impacts to
public and environmental health or, if the well stimulation
treatments result in adverse impacts to public and environmental
health, the impacts are identified and sufficiently mitigated to
avoid significant adverse impacts to public and environmental health
at the local, regional, or statewide level, and (3) the
division prepares an environmental impact report, as provided.
Because a violation of the bill's requirements would be a crime, the
bill would impose a state-mandated local program. This bill would
require the division to finalize the regulations regulating well
stimulation treatments by June 30, 2015.
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: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares all of the
following:
(1) The state has historically failed to appropriately monitor or
track well stimulation activity and to study its effects.
(2) Well stimulation and well stimulation-related activities may
release chemicals, including methanol, crystalline silica dust,
hydrochloric and hydrofluoric acid, xylene, 2-butoxyethanol,
naphthalene, ethylbenzene, 2-propanol, volatile organic compounds,
and particulate matter. These materials may be released at levels
that are harmful and may have an adverse impact on the state's air
quality and public health and safety. Many parts of California
already suffer from poor air quality.
(3) Well stimulation and well stimulation-related activities can
involve the use of hundreds of chemicals, some of which are known to
be carcinogenic or could otherwise be harmful to human health.
(4) Exposure to the chemicals used in well stimulation and well
stimulation-related activities may pose a widespread and significant
risk to public health and safety and the environment.
(5) Well stimulation and well stimulation-related activities may
involve the use of substantial amounts of freshwater. California is
currently experiencing one of the worst droughts in the state's
history and faces a scarcity of freshwater resources.
(6) Well stimulation and well stimulation-related activities may
result in the emission of greenhouse gases, such as carbon dioxide
and methane. Furthermore, well stimulation and well
stimulation-related activities may lead to a dramatic increase in the
overall amount of recoverable oil and gas in the state. The
expansion of oil and gas activity and the process of well stimulation
both could threaten to undermine the state's goal of reducing
greenhouse gas emissions.
(7) The disposal of wastewater resulting from well stimulation and
well stimulation-related activities into underground injection wells
in other states has been linked to increased earthquake activity.
(8) Fracking and other forms of well stimulation have occurred
disproportionately near communities consisting largely of people of
color, low-income households, non-English-speaking households, and
persons already experiencing high levels of water or air pollution or
water scarcity.
(9) Well stimulation and well stimulation-related activities may
harm wildlife, including species that are protected under federal and
state endangered species laws.
(b) It is the intent of the Legislature in enacting this act to
protect the public health and welfare of the state.
SEC. 2. Section 3157 of the Public Resources Code is amended to
read:
3157. (a) For purposes of this article, "well stimulation
treatment" means any treatment of a well designed to enhance oil and
gas production or recovery by increasing the permeability of the
formation or the flow of fluid through the well. Well stimulation
treatments include, but are not limited to, hydraulic fracturing
treatments and acid well stimulation treatments.
(b) Well stimulation treatments do not include steam flooding,
water flooding, or cyclic steaming and do not include routine well
cleanout work, routine well maintenance, routine removal of formation
damage due to drilling, bottom hole pressure surveys, or routine
activities that do not affect the integrity of the well or the
formation.
(c) Well stimulation treatments do not include gas storage
projects that are subject to Section 1724.9 of Title 14 of the
California Code of Regulations.
SEC. 3. Section 3160 of the Public Resources Code is amended to
read:
3160. (a) The Secretary of the Natural Resources Agency shall
cause to be conducted, and completed, no later than June 30, 2016, an
independent scientific study on well stimulation treatments,
including, but not limited to, hydraulic fracturing and acid well
stimulation treatments. The scientific study shall evaluate the
hazards and risks and potential hazards and risks that well
stimulation treatments and well stimulation treatment-related
activities pose to natural resources and public, occupational, and
environmental health and safety. The scientific study shall do all of
the following:
(1) Follow the well-established standard protocols of the
scientific profession, including, but not limited to, the use of
recognized experts, peer review, and publication. The study shall be
based solely on the best available scientific, health, environmental,
and statistical information.
(2) (A) Identify all onshore areas with existing and potential
conventional and unconventional oil and gas reserves and gas storage
projects where well stimulation treatments are likely to spur or
enable oil and gas exploration and production, or gas storage.
(B) Identify offshore areas, within the jurisdiction of the
division, with existing and potential conventional and unconventional
oil and gas reserves where well stimulation treatments are likely to
spur or enable oil and gas exploration and production.
(3) (A) Evaluate all aspects and effects of well stimulation
treatments, including, but not limited to, the well stimulation
treatment, additive and water transportation to and from the well
site, mixing, storage, and handling of the well stimulation treatment
fluids and additives onsite, the use and potential for use of
nontoxic additives and the use or reuse of treated or produced water
in well stimulation treatment fluids, and flowback fluids and the
handling, treatment, and disposal of flowback fluids and other
materials, if any, generated by the treatment. Specifically, the
potential for the use of recycled water in well stimulation
treatments, including appropriate water quality requirements and
available treatment technologies, shall be evaluated. Well
stimulation treatments include, but are not limited to, hydraulic
fracturing and acid well stimulation treatments.
(B) Review and evaluate acid matrix stimulation treatments,
including the range of acid volumes applied per treated foot and
total acid volumes used in treatments, types of acids, acid
concentration, and other chemicals used in the treatments.
(C) Evaluate all potential direct, indirect, and cumulative health
and environmental effects of onshore well stimulation treatments and
well stimulation treatment-related activities.
(D) Evaluate all potential direct, indirect, and cumulative health
and environmental effects of offshore well stimulation treatments
and well stimulation treatment-related activities that are within the
jurisdiction of the division.
(E) Evaluate all direct, indirect, and cumulative health and
environmental effects of the full lifecycle of oil and gas
exploration, development, and production, including flowback fluids
and other byproducts that would result from allowing well stimulation
treatments within the state.
(F) Evaluate the extent of the increase in oil and gas
development, refining processes, and end-use combustion that would
result from allowing well stimulation treatments within the state.
(4) (A) Consider potential water contamination, including
groundwater and surface water, potential depletion of water
resources, potential effects on water sustainability, and the
ultimate disposition, transport, transformation, and toxicology of
well stimulation treatments, including acid well stimulation fluids,
hydraulic fracturing fluids, and waste hydraulic fracturing fluids,
and acid well stimulation in the environment.
(B) Consider surface contamination, potential noise and light
pollution, as well as actual and potential induced seismicity.
(C) Consider atmospheric emissions, including potential greenhouse
gas emissions, the potential degradation of air quality, and the
potential impacts of well stimulation and increased oil and gas
activity on the state's efforts to meet its greenhouse gas reduction
targets under the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code).
(5) Identify and evaluate the geologic features present in the
vicinity of a well, including the well bore, that should be taken
into consideration in the design of a proposed well stimulation
treatment.
(6) Identify and evaluate all of the following, as they relate to
well stimulation:
(A) The potential impacts of well stimulation treatments on
private property, including home values and direct damage to property
and land.
(B) The potential human health risk for each chemical used in well
stimulation treatments.
(C) The potential economic costs and harms of increased oil and
gas operations in the state as a result of well stimulation
treatments, including, but not limited to, the resulting economic
costs to the agricultural sector and the tourism industry.
(D) The potential effects on communities most likely to be
negatively affected by the impacts of well stimulation, including,
but not limited to, all of the following:
(i) Communities consisting largely of people of color.
(ii) Communities consisting largely of low-income individuals.
(iii) Communities consisting largely of non-English-speaking
households.
(iv) Communities already experiencing high levels of water or air
pollution, or water scarcity.
(E) Potential harm to the public health and welfare of the state's
residents and the state's environment, both cumulatively and
specific to each region where well stimulation treatments may occur.
(F) The potential effect of increased traffic due to increased oil
and gas activity as a result of well stimulation treatments,
including air emissions from vehicle traffic, and road expansion and
deterioration.
(G) The potential effect on pipeline infrastructure due to
increased oil and gas activity as a result of well stimulation
treatments, including potential pipeline leakage.
(H) Potential impacts on wildlife, including harm to endangered or
threatened species, native plants, and habitat, including habitat
fragmentation.
(I) Whether existing emergency planning, procedures, and resources
adequately and fully ensure public safety in the event of an
emergency.
(J) Potential risks to worker safety.
(7) Include a hazard assessment and risk analysis addressing
occupational and environmental exposures to well stimulation
treatments, including hydraulic fracturing treatments, hydraulic
fracturing treatment-related processes, acid well stimulation
treatments, acid well stimulation treatment-related processes, and
the corresponding impacts on public health and safety with the
participation of the Office of Environmental Health Hazard
Assessment.
(8) Clearly identify where additional information is necessary to
inform and improve the analyses.
(b) The Secretary of the Natural Resources Agency shall notify the
Joint Legislative Budget Committee and the chairs of the Assembly
Natural Resources, Senate Environmental Quality, and Senate Natural
Resources and Water Committees on the progress of the independent
scientific study on well stimulation and related activities. The
first progress report shall be provided to the Legislature on or
before April 1, 2014, and progress reports shall continue every four
months thereafter until the independent study is completed, including
a peer review of the study by independent scientific experts.
(c) (1) (A) On or before January 1, 2015, the division, in
consultation with the Department of Toxic Substances Control, the
State Air Resources Board, the State Water Resources Control Board,
the Department of Resources Recycling and Recovery, and any local air
districts and regional water quality control boards in areas where
well stimulation treatments, including acid well stimulation
treatments and hydraulic fracturing treatments may occur, shall adopt
rules and regulations specific to well stimulation treatments. The
rules and regulations shall include, but are not limited to,
revisions, as needed, to the rules and regulations governing
construction of wells and well casings to ensure integrity of wells,
well casings, and the geologic and hydrologic isolation of the oil
and gas formation during and following well stimulation treatments,
and full disclosure of the composition and disposition of well
stimulation fluids, including, but not limited to, hydraulic
fracturing fluids, acid well stimulation fluids, and flowback fluids.
(B) The rules and regulations shall additionally include
provisions for an independent entity or person to perform the
notification requirements pursuant to paragraph (6) of subdivision
(e), for the operator to provide for baseline and followup water
testing upon request as specified in paragraph (7) of subdivision
(e).
(C) (i) In order to identify the acid matrix stimulation
treatments that are subject to this section, the rules and
regulations shall establish threshold values for acid volume applied
per treated foot of any individual stage of the well or for total
acid volume of the treatment, or both, based upon a quantitative
assessment of the risks posed by acid matrix stimulation treatments
that exceed the specified threshold value or values in order to
prevent, as far as possible, damage to life, health, property, and
natural resources pursuant to Section 3106.
(ii) On or before January 1, 2020, the division shall review and
evaluate the threshold values for acid volume applied per treated
foot and total acid volume of the treatment, based upon data
collected in the state, for acid matrix stimulation treatments. The
division shall revise the values through the regulatory process, if
necessary, based upon the best available scientific information,
including the results of the independent scientific study pursuant to
subparagraph (B) of paragraph (3) of subdivision (a).
(2) Full disclosure of the composition and disposition of well
stimulation fluids, including, but not limited to, hydraulic
fracturing fluids and acid stimulation treatment fluids, shall, at a
minimum, include:
(A) The date of the well stimulation treatment.
(B) A complete list of the names, Chemical Abstract Service (CAS)
numbers, and maximum concentration, in percent by mass, of each and
every chemical constituent of the well stimulation treatment fluids
used. If a CAS number does not exist for a chemical constituent, the
well owner or operator may provide another unique identifier, if
available.
(C) The trade name, the supplier, concentration, and a brief
description of the intended purpose of each additive contained in the
well stimulation treatment fluid.
(D) The total volume of base fluid used during the well
stimulation treatment, and the identification of whether the base
fluid is water suitable for irrigation or domestic purposes, water
not suitable for irrigation or domestic purposes, or a fluid other
than water.
(E) The source, volume, and specific composition and disposition
of all water, including, but not limited to, all water used as base
fluid during the well stimulation treatment and recovered from the
well following the well stimulation treatment that is not otherwise
reported as produced water pursuant to Section 3227. Any repeated
reuse of treated or untreated water for well stimulation treatments
and well stimulation treatment-related activities shall be
identified.
(F) The specific composition and disposition of all well
stimulation treatment fluids, including waste fluids, other than
water.
(G) Any radiological components or tracers injected into the well
as part of, or in order to evaluate, the well stimulation treatment,
a description of the recovery method, if any, for those components or
tracers, the recovery rate, and specific disposal information for
recovered components or tracers.
(H) The radioactivity of the recovered well stimulation fluids.
(I) The location of the portion of the well subject to the well
stimulation treatment and the extent of the fracturing or other
modification, if any, surrounding the well induced by the treatment.
(d) (1) Through the consultation process described in paragraph
(1) of subdivision (c), the division shall collaboratively identify
and delineate the existing statutory authority and regulatory
responsibility relating to well stimulation treatments and well
stimulation treatment-related activities of the Department of Toxic
Substances Control, the State Air Resources Board, any local air
districts, the State Water Resources Control Board, the Department of
Resources Recycling and Recovery, any regional water quality control
board, and other public entities, as applicable. This shall specify
how the respective authority, responsibility, and notification and
reporting requirements associated with well stimulation treatments
and well stimulation treatment-related activities are divided among
each public entity.
(2) On or before January 1, 2015, the division shall enter into
formal agreements with the Department of Toxic Substances Control,
the State Air Resources Board, any local air districts where well
stimulation treatments may occur, the State Water Resources Control
Board, the Department of Resources Recycling and Recovery, and any
regional water quality control board where well stimulation
treatments may occur, clearly delineating respective authority,
responsibility, and notification and reporting requirements
associated with well stimulation treatments and well stimulation
treatment-related activities, including air and water quality
monitoring, in order to promote regulatory transparency and
accountability.
(3) The agreements under paragraph (2) shall specify the
appropriate public entity responsible for air and water quality
monitoring and the safe and lawful disposal of materials in
landfills, include trade secret handling protocols, if necessary, and
provide for ready public access to information related to well
stimulation treatments and related activities.
(4) Regulations, if necessary, shall be revised appropriately to
incorporate the agreements under paragraph (2).
(e) (1) Notwithstanding any other law or regulation, prior to
performing a well stimulation treatment, the operator shall apply for
a permit to perform a well stimulation treatment with the supervisor
or district deputy. The well stimulation treatment permit
application shall contain the pertinent data the supervisor requires
on printed forms supplied by the division or on other forms
acceptable to the supervisor. The information provided in the well
stimulation treatment permit application shall include, but is not
limited to, the following:
(A) The well identification number and location.
(B) The time period during which the well stimulation treatment is
planned to occur.
(C) A water management plan that shall include all of the
following:
(i) An estimate of the amount of water to be used in the
treatment. Estimates of water to be recycled following the well
stimulation treatment may be included.
(ii) The anticipated source of the water to be used in the
treatment.
(iii) The disposal method identified for the recovered water in
the flowback fluid from the treatment that is not produced water
included in the statement pursuant to Section 3227.
(D) A complete list of the names, Chemical Abstract Service (CAS)
numbers, and estimated concentrations, in percent by mass, of each
and every chemical constituent of the well stimulation fluids
anticipated to be used in the treatment. If a CAS number does not
exist for a chemical constituent, the well owner or operator may
provide another unique identifier, if available.
(E) The planned location of the well stimulation treatment on the
well bore, the estimated length, height, and direction of the induced
fractures or other planned modification, if any, and the location of
existing wells, including plugged and abandoned wells, that may be
impacted by these fractures and modifications.
(F) A groundwater monitoring plan. Required groundwater monitoring
in the vicinity of the well subject to the well stimulation
treatment shall be satisfied by one of the following:
(i) The well is located within the boundaries of an existing oil
or gas field-specific or regional monitoring program developed
pursuant to Section 10783 of the Water Code.
(ii) The well is located within the boundaries of an existing oil
or gas field-specific or regional monitoring program developed and
implemented by the well owner or operator meeting the model criteria
established pursuant to Section 10783 of the Water Code.
(iii) Through a well-specific monitoring plan implemented by the
owner or operator meeting the model criteria established pursuant to
Section 10783 of the Water Code, and submitted to the appropriate
regional water board for review.
(G) The estimated amount of treatment-generated waste materials
that are not reported in subparagraph (C) and an identified disposal
method for the waste materials.
(2) (A) At the supervisor's discretion, and if applied for
concurrently, the well stimulation treatment permit described in this
section may be combined with the well drilling and related operation
notice of intent required pursuant to Section 3203 into a single
combined authorization. The portion of the combined authorization
applicable to well stimulation shall meet all of the requirements of
a well stimulation treatment permit pursuant to this section.
(B) Where the supervisor determines that the activities proposed
in the well stimulation treatment permit or the combined
authorization have met all of the requirements of Division 13
(commencing with Section 21000), and have been fully described,
analyzed, evaluated, and mitigated, no additional review or
mitigation shall be required.
(C) The time period available for approval of the portion of the
combined authorization applicable to well stimulation is subject to
the terms of this section, and not Section 3203.
(3) (A) The supervisor or district deputy shall review the well
stimulation treatment permit application and may approve the permit
if the application is complete. An incomplete application shall not
be approved.
(B) A well stimulation treatment or repeat well stimulation
treatment shall not be performed on any well without a valid permit
that the supervisor or district deputy has approved.
(C) In considering the permit application, the supervisor or
district deputy shall evaluate the quantifiable risk of the well
stimulation treatment.
(4) The well stimulation treatment permit shall expire one year
from the date that the permit is issued.
(5) Within five business days of issuing a permit to perform a
well stimulation treatment, the division shall provide a copy of the
permit to the appropriate regional water quality control board or
boards and to the local planning entity where the well, including its
subsurface portion, is located. The division shall also post the
permit on the publicly accessible portion of its Internet Web site
within five business days of issuing a permit.
(6) (A) It is the policy of the state that a copy of the approved
well stimulation treatment permit and information on the available
water sampling and testing be provided to every tenant of the surface
property and every surface property owner or authorized agent of
that owner whose property line location is one of the following:
(i) Within a 1,500 foot radius of the wellhead.
(ii) Within 500 feet from the horizontal projection of all
subsurface portions of the designated well to the surface.
(B) (i) The well owner or operator shall identify the area
requiring notification and shall contract with an independent entity
or person who is responsible for, and shall perform, the notification
required pursuant to subparagraph (A).
(ii) The independent entity or person shall identify the
individuals notified, the method of notification, the date of the
notification, and a list of those notified, and shall provide this
information to the division.
(iii) The performance of the independent entity or person shall be
subject to review and audit by the division.
(C) A well stimulation treatment shall not commence before 30
calendar days after the permit copies pursuant to subparagraph (A)
are provided.
(7) (A) A property owner notified pursuant to paragraph (6) may
request water quality sampling and testing from a designated
qualified contractor on any water well suitable for drinking or
irrigation purposes and on any surface water suitable for drinking or
irrigation purposes as follows:
(i) Baseline measurements prior to the commencement of the well
stimulation treatment.
(ii) Followup measurements after the well stimulation treatment on
the same schedule as the pressure testing of the well casing of the
treated well.
(B) The State Water Resources Control Board shall designate one or
more qualified independent third-party contractor or contractors
that adhere to board-specified standards and protocols to perform the
water sampling and testing. The well owner or operator shall pay for
the sampling and testing. The sampling and testing performed shall
be subject to audit and review by the State Water Resources Control
Board or an applicable regional water quality control board, as
appropriate.
(C) The results of the water testing shall be provided to the
division, appropriate regional water quality control board, and the
property owner or authorized agent. A tenant notified pursuant to
paragraph (6) shall receive information on the results of the water
testing to the extent authorized by his or her lease and, where the
tenant has lawful use of the groundwater or surface water identified
in subparagraph (A), the tenant may independently contract for
similar groundwater or surface water testing.
(8) The division shall retain a list of the entities and property
owners notified pursuant to paragraphs (5) and (6).
(9) The operator shall provide notice to the division at least 72
hours prior to the actual start of the well stimulation treatment in
order for the division to witness the treatment.
(f) If a well stimulation treatment is performed, a supplier that
performs any part of the treatment or provides additives directly to
the operator for a well stimulation treatment shall furnish the
operator with information suitable for public disclosure needed for
the operator to comply with subdivision (g). This information shall
be provided as soon as possible but no later than 30 days following
the conclusion of the well stimulation treatment.
(g) (1) Within 60 days following cessation of a well stimulation
treatment, the operator shall post or cause to be posted to an
Internet Web site, designated or maintained by the division and
accessible to the public, all of the well stimulation fluid
composition and disposition
information required to be collected pursuant to the rules and
regulations adopted under subdivision (c), including well
identification number and location. This shall include the collected
water quality data, which the operator shall report electronically to
the State Water Resources Control Board.
(2) (A) The division shall develop an Internet Web site for
operators to report the information required under this section. The
Internet Web site shall be capable of organizing the reported
information in a format, such as a spreadsheet, that allows the
public to easily search and aggregate, to the extent practicable,
each type of information required to be collected pursuant to
subdivision (c) using search functions on that Internet Web site. The
Internet Web site shall be functional within two years of the
Department of Technology's approval of a feasibility study report or
appropriation authority to fund the development of the Internet Web
site, whichever occurs latest, but no later than January 1, 2016.
(B) The division may direct reporting to an alternative Internet
Web site developed by the Ground Water Protection Council and the
Interstate Oil and Gas Compact Commission in the interim until
approval or appropriate authority pursuant to subparagraph (A) occur.
Prior to the implementation of the division's Internet Web site, the
division shall obtain the data reported by operators to the
alternative Internet Web site and make it available in an organized
electronic format to the public no later than 15 days after it is
reported to the alternative Internet Web site.
(h) The operator is responsible for compliance with this section.
(i) (1) All geologic features within a distance reflecting an
appropriate safety factor of the fracture zone for well stimulation
treatments that fracture the formation and that have the potential to
either limit or facilitate the migration of fluids outside of the
fracture zone shall be identified and added to the well history.
Geologic features include seismic faults identified by the California
Geologic Survey.
(2) For the purposes of this section, the "fracture zone" is
defined as the volume surrounding the well bore where fractures were
created or enhanced by the well stimulation treatment. The safety
factor shall be at least five and may vary depending upon geologic
knowledge.
(3) The division shall review the geologic features important to
assessing well stimulation treatments identified in the independent
study pursuant to paragraph (5) of subdivision (a). Upon completion
of the review, the division shall revise the regulations governing
the reporting of geologic features pursuant to this subdivision
accordingly.
(j) (1) Public disclosure of well stimulation treatment fluid
information claimed to contain trade secrets is governed by Section
1060 of the Evidence Code, or the Uniform Trade Secrets Act (Title 5
(commencing with Section 3426) of Part 1 of Division 4 of the Civil
Code), and the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code).
(2) Notwithstanding any other law or regulation, none of the
following information shall be protected as a trade secret:
(A) The identities of the chemical constituents of additives,
including CAS identification numbers.
(B) The concentrations of the additives in the well stimulation
treatment fluids.
(C) Any air or other pollution monitoring data.
(D) Health and safety data associated with well stimulation
treatment fluids.
(E) The chemical composition of the flowback fluid.
(3) If a trade secret claim is invalid or invalidated, the
division shall release the information to the public by revising the
information released pursuant to subdivision (g). The supplier shall
notify the division of any change in status within 30 days.
(4) (A) If a supplier believes that information regarding a
chemical constituent of a well stimulation fluid is a trade secret,
the supplier shall nevertheless disclose the information to the
division in conjunction with a well stimulation treatment permit
application, if not previously disclosed, within 30 days following
cessation of well stimulation on a well, and shall notify the
division in writing of that belief.
(B) A trade secret claim shall not be made after initial
disclosure of the information to the division.
(C) To comply with the public disclosure requirements of this
section, the supplier shall indicate where the trade secret
information has been withheld and provide substitute information for
public disclosure. The substitute information shall be a list, in any
order, of the chemical constituents of the additive, including CAS
identification numbers. The division shall review and approve the
supplied substitute information.
(D) This subdivision does not permit a supplier to refuse to
disclose the information required pursuant to this section to the
division.
(5) In order to substantiate the trade secret claim, the supplier
shall provide information to the division that shows all of the
following:
(A) The extent to which the trade secret information is known by
the supplier's employees, and others involved in the supplier's
business and outside the supplier's business.
(B) The measures taken by the supplier to guard the secrecy of the
trade secret information.
(C) The value of the trade secret information to the supplier and
its competitors.
(D) The amount of effort or money the supplier expended developing
the trade secret information and the ease or difficulty with which
the trade secret information could be acquired or duplicated by
others.
(6) If the division determines that the information provided in
support of a request for trade secret protection pursuant to
paragraph (5) is incomplete, the division shall notify the supplier
and the supplier shall have 30 days to complete the submission. An
incomplete submission does not meet the substantive criteria for
trade secret designation.
(7) If the division determines that the information provided in
support of a request for trade secret protection does not meet the
substantive criteria for trade secret designation, the department
shall notify the supplier by certified mail of its determination. The
division shall release the information to the public, but not
earlier than 60 days after the date of mailing the determination,
unless, prior to the expiration of the 60-day period, the supplier
obtains an action in an appropriate court for a declaratory judgment
that the information is subject to protection or for a preliminary
injunction prohibiting disclosure of the information to the public
and provides notice to the division of the court order.
(8) The supplier is not required to disclose the trade secret
information to the operator.
(9) Upon receipt of a request for the release of trade secret
information to the public, the following procedure applies:
(A) The division shall notify the supplier of the request in
writing by certified mail, return receipt requested.
(B) The division shall release the information to the public, but
not earlier than 60 days after the date of mailing the notice of the
request for information, unless, prior to the expiration of the
60-day period, the supplier obtains an action in an appropriate court
for a declaratory judgment that the information is subject to
protection or for a preliminary injunction prohibiting disclosure of
the information to the public and provides notice to the division of
that action.
(10) The division shall develop a timely procedure to provide
trade secret information in the following circumstances:
(A) To an officer or employee of the division, the state, local
governments, including, but not limited to, local air districts, or
the United States, in connection with the official duties of that
officer or employee, to a health professional under any law for the
protection of health, or to contractors with the division or other
government entities and their employees if, in the opinion of the
division, disclosure is necessary and required for the satisfactory
performance of a contract, for performance of work, or to protect
health and safety.
(B) To a health professional in the event of an emergency or to
diagnose or treat a patient.
(C) In order to protect public health, to any health professional,
toxicologist, or epidemiologist who is employed in the field of
public health and who provides a written statement of need. The
written statement of need shall include the public health purposes of
the disclosure and shall explain the reason the disclosure of the
specific chemical and its concentration is required.
(D) A health professional may share trade secret information with
other persons as may be professionally necessary, in order to
diagnose or treat a patient, including, but not limited to, the
patient and other health professionals, subject to state and federal
laws restricting disclosure of medical records including, but not
limited to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
Division 1 of the Civil Code.
(E) For purposes of this paragraph, "health professional" means
any person licensed or certified pursuant to Division 2 (commencing
with Section 500) of the Business and Professions Code, the
Osteopathic Initiative Act, the Chiropractic Initiative Act, or the
Emergency Medical Services System and the Prehospital Emergency
Medical Care Personnel Act (Division 2.5 (commencing with Section
1797) of the Health and Safety Code).
(F) A person in possession of, or with access to, confidential
trade secret information pursuant to the provisions of this
subdivision may disclose this information to any person who is
authorized to receive it. A written confidentiality agreement shall
not be required.
(k) A well granted confidential status pursuant to Section 3234
shall not be required to disclose well stimulation treatment fluid
information pursuant to subdivision (g) until the confidential status
of the well ceases. Notwithstanding the confidential status of a
well, it is public information that a well will be or has been
subject to a well stimulation treatment.
(l) The division shall perform random periodic spot check
inspections to ensure that the information provided on well
stimulation treatments is accurately reported, including that the
estimates provided prior to the commencement of the well stimulation
treatment are reasonably consistent with the well history.
(m) Where the division shares jurisdiction over a well or the well
stimulation treatment on a well with a federal entity, the division'
s rules and regulations shall apply in addition to all applicable
federal laws and regulations.
(n) This article does not relieve the division or any other agency
from complying with any other provision of existing laws,
regulations, and orders.
(o) Well stimulation treatments used for routine maintenance of
wells associated with underground storage facilities where natural
gas is injected into and withdrawn from depleted or partially
depleted oil or gas reservoirs pursuant to subdivision (a) of Section
3403.5 are not subject to this section.
(p) The division shall finalize the regulations governing this
article on or before June 30, 2015.
SEC. 4. Section 3161 of the Public Resources Code is repealed.
SEC. 5. Section 3161 is added to the Public Resources Code, to
read:
3161. (a) All well stimulation treatments shall be prohibited
until the scientific study pursuant to Section 3160 is completed and
all of the requirements of this section are met.
(b) No later than six months after the scientific study is
complete, the Secretary of the Natural Resources Agency shall convene
a committee to review the scientific study. The committee shall
include a representative from all of the following:
(1) The Natural Resources Agency.
(2) The California Environmental Protection Agency.
(3) The State Air Resources Board.
(4) The State Water Resources Control Board.
(5) The State Department of Public Health.
(c) (1) After reviewing the scientific study as required under
subdivision (b), the committee shall issue a tentative report,
available to the public, evaluating the scientific study using the
best scientific, health, environmental, and statistical information
available, that shall include, but is not limited to, all of the
following findings:
(A) Whether the scientific study is based solely on the best
scientific, health, environmental, and statistical information
available, and meets all of the requirements of subdivision (a) of
Section 3160.
(B) Whether the regulations adopted pursuant to subdivision (c) of
Section 3160 are sufficient to ensure that the damage and
risks associated with well stimulation treatments, and the
increased oil and gas development as a result of these treatments, do
not contribute to the deterioration of environmental
conditions in a way that threatens public health and welfare or the
environmental and economic sustainability of the state.
create adverse impacts to public and environmental health or, if
the well stimulation treatments result in adverse impacts to public
and environmental health, the impacts are identified and
sufficiently mitigated to avoid significant adverse impacts to public
and environmental health at the local, regional, or statewide level.
(C) Whether there are measures in place to ensure that well
stimulation treatments, and the increased oil and gas development as
a result of these treatments, will not impede progress for achieving
the greenhouse gas reduction targets under the California Global
Warming Solutions Act of 2006 (Division 25.5 (commencing with Section
38500) of the Health and Safety Code).
(D) Whether other specific measures are in place to ensure that
well stimulation treatments within the state do not
contribute to the deterioration of environmental conditions in a way
that threatens public health and welfare or the environmental and
economic sustainability of the state. create adverse
impacts to public and environmental health or, if the well
stimulation treatments result in adverse impacts to public and
environmental health, the impacts are identified and sufficiently
mitigated to avoid significant adverse impacts to public and
environmental health at the local, regional, or statewide level.
(2) The public shall have 60 days to submit comments to the
committee regarding the tentative report and the committee shall give
full consideration to all of the comments received.
(3) (A) If the findings in the report conclude that well
stimulation treatments contribute to the deterioration of
environmental conditions in a way that threatens public health and
welfare or to the environmental and economic sustainability of the
state, create adverse impacts to public and
environmental health or, if the well stimulation treatments result in
adverse impacts to public and environmental health, the impacts are
identified and not sufficiently mitigated to avoid significant
adverse impacts to public and environmental health at the local,
regional, or statewide level, the committee may require an
additional study to address any areas of concern and the prohibition
on well stimulation treatments pursuant to subdivision (a) shall
remain in effect.
(B) If the findings in the report conclude that well stimulation
treatments do not contribute to the deterioration of
environmental conditions in a way that threatens public health and
welfare or to the environmental and economic sustainability of the
state, create adverse impacts to public and
environmental health or, if the well stimulation treatments result in
adverse impacts to public and environmental health, the impacts are
identified and sufficiently mitigated to avoid significant adverse
impacts to public and environmental health at the local, regional, or
statewide level, the committee shall certify the report as
final.
(d) Upon certification by the committee, the report shall be
provided to the Governor and the appropriate committees of the
Legislature.
(e) (1) Upon receipt of the report, the Governor shall make a
determination as to whether specific measures are in place to ensure
that well stimulation treatments within the state do not
contribute to the deterioration of environmental conditions in a way
that threatens public health and welfare or to the environmental and
economic sustainability of the state, create adverse
impacts to public and environmental health or, if the well
stimulation treatments result in adverse impacts to public and
environmental health, the impacts are identified and sufficiently
mitigated to avoid significant adverse impacts to public and
environmental health at the local, regional, or statewide level,
and shall provide specific findings of this determination to
the Legislature.
(2) If the Governor's determination concludes that there are not
specific measures in place as described in paragraph (1), the
prohibition on well stimulation treatments pursuant to subdivision
(a) shall remain in effect.
(3) If the Governor's determination concludes that there are
specific measures in place as described in paragraph (1), the
prohibition of well stimulation treatments pursuant to subdivision
(a) shall end on the date provided in subdivision (g).
(f) (1) The division shall prepare an environmental impact report
(EIR) pursuant to the California Environmental Quality Act (Division
13 (commencing with Section 21000)), in order to provide the public
with detailed information regarding any potential environmental
impacts of well stimulation in the state.
(2) Any environmental review conducted by the division shall fully
comply with all of the following requirements:
(A) The EIR shall be certified by the division as the lead agency,
no later than July 1, 2015.
(B) The EIR shall address the issue of activities that may be
conducted as defined in Section 3157 and that may occur at oil wells
in the state existing prior to, and after, the effective date of this
section.
(C) The EIR shall not conflict with an EIR conducted by a local
lead agency that is certified on or before July 1, 2015. This
subparagraph does not prohibit a local lead agency from conducting
its own EIR.
(g) (1) This section shall become inoperative 90 days after the
date the Governor issues a determination pursuant to paragraph (3) of
subdivision (e).
(2) This section shall be repealed on January 1 immediately
following the date it becomes inoperative under paragraph (1).
(h) This section does not impair or infringe any existing property
rights or interests.
(i) The division shall not approve as complete any Interim Well
Stimulation Treatment Notice forms, or make any other approval to
authorize a well stimulation treatment, on or after January 1, 2015.
(j) This section does not preempt a local government's land use
authority to regulate or prohibit oil and gas operations, including
well stimulation treatments and related activities.
SEC. 6. 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.
