Bill Text: CA SB25 | 2021-2022 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Oil and gas: well stimulation treatments: earthquake and leak monitoring and reporting.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2022-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB25 Detail]
Download: California-2021-SB25-Introduced.html
Bill Title: Oil and gas: well stimulation treatments: earthquake and leak monitoring and reporting.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2022-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB25 Detail]
Download: California-2021-SB25-Introduced.html
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 25
| Introduced by Senator Hurtado |
December 07, 2020 |
An act relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
SB 25, as introduced, Hurtado.
Oil and gas: well stimulation treatments.
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 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. Under existing law, a person who fails to comply with this and other requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor.
This bill would express the intent of the Legislature to enact subsequent legislation to (1) strengthen the regulatory review process for well stimulation treatment projects to protect public health and
safety, and the environment, while protecting the livelihoods of essential workers in the San Joaquin Valley, and (2) ensure that any jobs or economic activity affected by the strengthening of the regulatory review process for well stimulation treatment projects are fully compensated for, and retained, in order to ensure the employees and communities affected by these actions are not adversely affected.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
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 Geologic Energy Management Division of the Department of Conservation has responsibility for the protection of public health, safety, and the environment in fulfilling its duty to encourage the wise development of oil and gas resources.
(2) The division supervises oil and gas operations, administers laws for the conservation of petroleum and geothermal resources, and ensures the safe development and recovery of the state’s energy resources.
(3) Permitting to approve oil and gas operations is a core function of the
division and is required for oil field operations that alters the casing of a well, including drilling, reworks, redrilling, recompletions, maintenance work, abandonments, and site restorations.
(4) In 2013, the Legislature passed, and Governor Jerry Brown signed, Senate Bill 4 (Chapter 313 of the Statutes of 2013) that explicitly defined and established a comprehensive permitting process for well stimulation treatments. A well stimulation treatment is a treatment of a well designed to enhance oil and gas production or recovery by increasing permeability of a formation.
(5) Well stimulation is a short-term and noncontinual well completions process for the purpose of opening and stimulating channels for the flow of hydrocarbons, which includes hydraulic fracturing, acid fracturing, and acid matrix stimulation.
(6) Senate Bill 4 established strong public health, safety, and environmental criteria for well stimulation that included public disclosure of chemicals used, public disclosure of permits issued, extensive engineering and geological reviews, well integrity evaluations to ensure that activity is confined to a geologic zone, comprehensive poststimulation report filing and disclosures of water sources and usage, and ongoing seismic monitoring during the well stimulation treatment process.
(7) The division further increased its regulatory review process of well stimulation treatment permits by initiating a third-party scientific review of permit applications.
(8) The division retained experts at the Lawrence Livermore National Laboratory (LLNL) to assess the well stimulation treatment permit review process and evaluate the completeness of operators’ application materials
and the division’s engineering and geologic analyses.
(9) LLNL scientific review of the permit applications and process found that the permitting process met statutory and regulatory requirements.
(10) As a result of LLNL’s involvement in the permit review process, the division increased its requirements of the technical models used in the permit approval process and now requires all operators to provide an Axial Dimensional Stimulation Area Narrative Report for each oilfield and fracture interval that must be validated by LLNL and conform to the permitting process.
(11) The permitting process for an operator to perform well stimulation treatment in California has been widely recognized as among the strongest safeguards and regulatory conditions in the nation.
(12) A significant percentage of California’s daily oil production is sourced from wells that were completed with well stimulation treatments.
(13) The vast majority, 97 percent, of well stimulation treatments occur in the County of Kern, with nearly all well stimulation treatment projects taking place in four oil and gas fields in unincorporated parts of the county.
(14) Well stimulation treatment projects contribute two billion five hundred million dollars ($2,500,000,000) per year to the County of Kern’s gross regional product and two hundred seventy million dollars ($270,000,000) per year in tax revenue, of which one hundred twenty million dollars ($120,000,000) goes to local government to support education, police, and fire.
(15) Thousands of people are directly employed in the oil and gas industry
and the average worker earns ninety-five thousand dollars ($95,000) per year. Many more thousands are employed due to indirect and induced impacts of the oil and gas industry.
(b) It is the intent of the Legislature to enact subsequent legislation that would do both of the following:
(1) Strengthen the regulatory review process for well stimulation treatment projects to protect public health and safety, and the environment, while protecting the livelihoods of essential workers in the San Joaquin Valley.
(2) Ensure that any jobs or economic activity affected by the strengthening of the regulatory review process for well stimulation treatment projects are fully compensated for, and retained, in order to ensure the employees and communities affected by these actions are not adversely affected.
