BILL NUMBER: SB 4 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 11, 2013
INTRODUCED BY Senator Pavley
( Coauthor: Senator Monning
)
DECEMBER 3, 2012
An act to amend Section Sections
3213 , 3215, 3236.5, and 3401 of, and to add Article 3
(commencing with Section 3150) to Chapter 1 of Division 3 of, the
Public Resources Code, relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
SB 4, as amended, Pavley. Oil and gas: hydraulic fracturing.
Under
(1) Under existing law, the
Division of Oil, Gas, and Geothermal Resources (DOGGR)
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 requires an
operator of a well, before commencing the work of drilling the well,
to obtain approval from the State Oil and Gas Supervisor or a
district deputy. Existing law requires the operator of a well to
keep, or cause to be kept, a careful and accurate log, core record,
and history of the drilling of the well. Within 60 days after the
date of cessation of drilling, rework, or abandonment operations, the
owner or operator is required to file with the district deputy
certain information, including the history of work performed.
Under existing law, a person who violates any prohibition specific to
the regulation of oil or gas operations is guilty of a misdemeanor.
This bill would define, among other things, the terms
hydraulic fracturing and hydraulic fracturing fluid. The bill
would require the Secretary of the Natural Resources Agency, on or
before January 1, 2015, to cause to be conducted an independent
scientific study on hydraulic fracturing treatments. The bill
requires would require an operator of a
well to record and include all data on hydraulic fracturing
treatment, including names and locations of all known seismic
faults, as a part of the history of the drilling of the well
treatments, as specified . The bill would
require DOGGR the division , in
consultation with the Department of Toxic Substances Control, the
State Air Resources Board, and the State Water Resources Control
Board, on or before January 1, 2015, to adopt rules and
regulations specific to hydraulic fracturing, including governing the
construction of wells and well casings and full disclosure of the
composition and disposition of hydraulic fracturing. The bill would
require an operator to file apply for a
permit, as specified, with the supervisor or a
district deputy, at least 30 days prior to the
commencement of a hydraulic fracturing treatment, a notice of
intention to commence hydraulic fracturing treatment containing
specified information prior to performing a hydraulic
fracturing treatment of a well and would prohibit the operator from
either conducting a new hydraulic fracturing treatment or repeating a
hydraulic fracturing treatment without a valid, approved permit. The
bill would prohibit the approval of a permit that presents an
unreasonable risk or is incomplete. The bill would require the
division, within 5 business days of issuing a permit to commence
hydraulic fracturing, to provide a copy to specific boards and
entities and to post the permit on a publicly accessible portion of
its Internet Web site . The bill would require the hydraulic
fracturing treatment to be completed within one year
of the filing of the notice of intention from
the date that a permit is issued . The bill would require
DOGGR, within 10 days of the receipt of the notice of
intention, to make the notice publicly available, to post it on the
division's Internet Web site, and to notify the appropriate regional
water quality control board. the division to perform
random periodic spot check investigations during hydraulic fracturing
treatments, as specified. The bill would prohibit the supervisor or
district deputy, as of January 1, 2015, from issuing a permit to
commence a hydraulic fracturing treatment, as specified, until the
study is completed and peer reviewed by independent scientific
experts. The bill would require the operator to provide a copy of the
approved hydraulic fracturing treatment permit to
specified property owners at least 30 days prior to commencing a
hydraulic fracturing treatment. The bill would require the operator
to provide notice to the division at least 72 hours prior to the
actual start of the hydraulic fracturing treatment in order for the
division to witness the hydraulic fracturing treatment. The
bill would require the supplier, as defined, of the hydraulic
fracturing treatment to provide to the operator, within 30 days
following the conclusion of the hydraulic fracturing, certain
information regarding the hydraulic fracturing fluid. The bill would
require the operator, within 60 days of the cessation of hydraulic
fracturing treatment, to post or cause to have posted on an Internet
Web site accessible to the public specified information on the
fracturing and fluid, as specified. The bill would provide that
where the division shares jurisdiction over a wel
l with a federal entity, the division's rules and regulations
govern the hydraulic fracturing treatment of a well. The bill
would require a supplier claiming trade secret protection for the
chemical composition of additives used in the hydraulic treatment to
disclose the composition to DOGGR the
division , in conjunction with a hydraulic fracturing
treatment permit application, but would, except as specified,
prohibit those with access to the trade secret to disclose
it, and a person who violates this prohibition would be guilty of a
misdemeanor from disclosing it . Because a
violation of this bill would create a new crime, it would
impose a state-mandated local program.
(2) Under existing law, a person who violates certain statutes or
regulations relating to oil and gas well operations is subject to a
civil penalty not to exceed $25,000 for each violation.
This bill would make persons who violate specified provisions
relating to hydraulic fracturing subject to a civil penalty of not
less than $10,000 and not to exceed $25,000 per day per violation.
(3) Existing law imposes an annual charge upon each person
operating or owning an interest in an oil or gas well in respect to
the production of the well which charge is payable to the Treasurer
for deposit into the Oil, Gas, and Geothermal Administrative Fund.
Existing law further requires that specific moneys from charges
levied, assessed, and collected upon the properties of every person
operating or owning an interest in the production of a well to be
used exclusively, upon appropriation, for the support and maintenance
of the department charged with the supervision of oil and gas
operations.
This bill would allow the moneys described above to be used for
all costs associated with hydraulic fracturing including scientific
studies required to evaluate the treatment, inspections, and any air
and water monitoring and testing performed by public entities.
This bill would require the supervisor, on or before January 1,
2016, and annually thereafter, to transmit to the Legislature and
make available publicly a comprehensive report on hydraulic
fracturing in the exploration and production of oil and gas resources
in the state.
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. The Legislature finds an d
declares all of the following:
(a) Hydraulic fracturing of oil and gas wells in combination with
technological advances in oil and gas well drilling are spurring oil
and gas extraction and exploration in California.
(b) Insufficient information is available to fully assess the
science of the practice of hydraulic fracturing in California
including environmental, occupational, and public health hazards and
risks.
(c) Providing transparency and accountability to the public
regarding hydraulic fracturing, associated emissions to the
environment, and the handling, processing, and disposal of hydraulic
fracturing and related wastes is of paramount concern.
SECTION 1. SEC. 2. Article 3
(commencing with Section 3150) is added to Chapter 1 of Division 3 of
the Public Resources Code, to read:
Article 3. Hydraulic Fracturing
3150. "Additive" means a substance or combination of substances
added to a base fluid for purposes of preparing a hydraulic
fracturing fluid. An additive may, but is not required to, serve
additional purposes beyond the transmission of hydraulic pressure to
the geologic formation. An additive may be of any phase and includes
proppants.
3151. "Base fluid" means the continuous phase fluid used in the
makeup of a hydraulic fracturing fluid. The continuous phase fluid
may include, but is not limited to, water, and may be a liquid or a
hydrocarbon or nonhydrocarbon gas. A hydraulic
fracturing treatment may use more than one base fluid.
3152. "Carrier fluid" means a base fluid into which additives are
mixed to form a hydraulic fracturing fluid.
3153. 3152. "Hydraulic fracturing"
means a treatment used in stimulating a well
well stimulation or well completion treatment that involves the
pressurized injection of hydraulic fracturing fluid and proppant
into an underground geologic formation in order to fracture the
formation, thereby causing or enhancing, for the purposes of this
division, the production of oil or gas from a well.
3154. 3153. "Hydraulic fracturing
fluid" means a carrier base fluid mixed
with physical and chemical additives for the purpose of hydraulic
fracturing. A hydraulic fracturing treatment may include more than
one hydraulic fracturing fluid.
3155. 3154. "Proppants" means
materials inserted or injected into the underground geologic
formation that are intended to prevent fractures from closing.
3156. 3155. "Supplier" means an
entity performing a hydraulic fracturing treatment
or an entity supplying an additive or proppant directly to the
operator for use in a hydraulic fracturing treatment
.
3157. (a) The Legislature finds and declares that hydraulic
fracturing of oil and gas wells in combination with technological
advances in oil and gas well drilling are spurring oil and gas
extraction, as well as oil and gas exploration, in California.
3156. "Surface property owner" means the owner of real property
as shown on the latest equalized assessment roll or, if more recent
information than the information contained on the assessment roll is
available, the owner of record according to the county assessor or
tax collector.
3160. (a) On or before January 1, 2015, the
Secretary of the Natural Resources Agency shall cause to be conducted
an independent scientific study on hydraulic fracturing treatments.
The scientific study shall evaluate the hazards and risks and
potential hazards and risks that hydraulic fracturing treatments 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.
(2) Identify areas with existing and potential conventional and
unconventional oil and gas reserves where hydraulic fracturing
treatments are likely to spur or enable oil and gas exploration and
production.
(3) Evaluate all aspects of hydraulic fracturing, including, but
not limited to, the hydraulic fracturing treatment, additive and
water transportation to and from the well site, mixing and handling
of the hydraulic fracturing fluids and additives on site, waste water
and waste hydraulic fracturing fluid handling, treatment, and
disposal.
(4) Consider, at a minimum, atmospheric emissions, the potential
degradation of air quality, potential water and surface
contamination, induced seismicity, and the ultimate disposition,
transport, transformation, and toxicology of hydraulic fracturing
fluids, and waste hydraulic fracturing fluids in the environment.
(5) Include a hazard assessment and risk analysis addressing
occupational and environmental exposures to hydraulic fracturing
treatments and hydraulic fracturing treatment-related processes and
the corresponding impacts on public health and safety with the
participation of the Office of Environmental Health Hazard
Assessment.
(6) Clearly identify where additional information is necessary to
inform and improve the analyses.
(b) (1) On or before January 1, 2015, the division , in
consultation with the Department of Toxic Substances Control, the
State Air Resources Board, and the State Water Resources Control
Board, shall adopt rules and regulations specific to
hydraulic fracturing. 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 hydraulic fracturing, and full disclosure of the
composition and disposition of hydraulic fracturing fluids and
waste hydraulic fracturing fluids .
(2) Full disclosure of the composition and disposition of
hydraulic fracturing fluids shall, at a minimum, include:
(A) The date of the hydraulic fracturing 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 hydraulic fracturing 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. Chemical information claimed as a trade secret, pursuant
to subdivision (h) (j) ,
shall be identified as such and reported as described in subdivision
(h) (j) .
(C) The trade name, the supplier, and a brief description of the
intended purpose of each additive contained in the hydraulic
fracturing fluid.
(D) The total volume of carrier fluid used during hydraulic
fracturing, and the identification of whether the carrier fluid is
water suitable for irrigation or domestic purposes, water not
suitable for irrigation or domestic purposes, or a fluid other than
water.
(E)
(D) The total volume of base fluid , if not
reported as a carrier fluid, used during the
hydraulic fracturing 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.
(F)
(E) The source, volume, and specific composition
and disposition of all water, including, but not limited to,
all water used as base and carrier fluids, used
fluid during the hydraulic fracturing
treatment and recovered from the well following the
hydraulic fracturing treatment that is not otherwise
reported as produced water pursuant to Section 3227.
(G)
(F) The specific composition and disposition
of all hydraulic fracturing fluids , including waste fluids,
other than water.
(H)
(G) Any radiological components or tracers injected
into the well as part of , or in order to evaluate, the
hydraulic fracturing process treatment
, a description of the recovery method, if any, for those components
or tracers, the recovery rate, and the
specific disposal method information
for recovered components or tracers.
(I)
(H) The radioactivity of the recovered hydraulic
fracturing fluids.
(J)
(I) The location of the portion of the well subject to
the hydraulic fracturing treatment and the extent of the fracturing
surrounding the well induced by the treatment.
(3) The rules and regulations shall be revised to incorporate the
results of the independent scientific study conducted pursuant to
subdivision (a).
(c) (1) 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
hydraulic fracturing treatments may occur, the State Water Resources
Control Board, and any regional water quality control board where
hydraulic fracturing treatments may occur, clearly delineating
respective authority, responsibility, and notification and reporting
requirements associated with hydraulic fracturing treatments and
hydraulic fracturing treatment-related activities in order to promote
regulatory transparency and accountability.
(2) The agreements under paragraph (1) shall include provisions
for air and water quality monitoring, trade secret handling
protocols, if necessary, and provide for ready public access to
information related to hydraulic fracturing treatments and related
activities. The agreements shall be posted on the publicly accessible
Internet Web site of each entity.
(c)
(d) (1) Notwithstanding any other law or regulation,
at least 30 days prior to commencing
performing a hydraulic fracturing treatment on a
well, the operator shall file a written notice of intention
to commence the apply for a permit to perform a
hydraulic fracturing treatment with the supervisor or district
deputy. The notice 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 hydraulic fracturing treatment shall be
completed within one year of filing the notice of intention.
The information provided in the notice
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 hydraulic fracturing
treatment is planned to occur.
(2) Within 10 days of receipt of the notice of intention, the
division shall make the notice of intention publicly available, post
it on the publicly accessible portion of the division's Internet Web
site, and notify the appropriate regional water quality control board
or boards as determined by where the well, including its subsurface
portion, is located.
(C) An estimate of the amount of water to be used in the treatment
and its source.
(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 hydraulic fracturing fluids
planned 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. Chemical information claimed
as a trade secret, pursuant to subdivision (j), shall be identified
as such and reported as described in subdivision (j).
(E) The planned location of the hydraulic fracturing treatment on
the wellbore and the estimated length, height, and direction of the
induced fractures.
(2) (A) The supervisor or district deputy shall review the
hydraulic fracturing treatment permit application and may approve the
permit if the application is complete.
(B) A hydraulic fracturing treatment or repeat hydraulic
fracturing treatment shall not be performed on any well without a
valid permit that the supervisor or district deputy has approved.
(C) A permit describing a hydraulic fracturing treatment that
presents unreasonable risk or is incomplete shall not be approved.
(3) The hydraulic fracturing treatment shall be completed within
one year of the issuance of the permit.
(4) Within five business days of issuing a permit to perform a
hydraulic fracturing 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 post the
permit on the publicly accessible portion of its Internet Web site.
(5) At least 30 calendar 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 that owner whose property line
location is one of the following:
(A) Within a 1,500 foot radius of the wellhead.
(B) Within 500 feet from the horizontal projection of all
subsurface portions of the designated well to the surface.
(6) A property owner notified pursuant to paragraph (5) may
request the 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) Follow-up measurements after the hydraulic fracturing
treatment on the same schedule as the pressure testing of the
well-casing of the hydraulically-fractured well.
(7) The regional water quality control board shall retain and
archive sufficient sample collected pursuant to paragraph (6) to
permit a reasonable number of additional analyses.
(8) The operator shall provide the division with a list of the
entities and property owners notified pursuant to paragraphs (4) and
(5).
(3)
(9) The operator shall provide notice to the division
at least 72 hours prior to the actual start of the
hydraulic fracturing treatment in order for the division to witness
the treatment.
(e) On and after January 1, 2015, the supervisor or district
deputy shall not issue a hydraulic fracturing treatment permit for
any well until the independent scientific study in subdivision (a) is
completed and peer-reviewed by independent scientific experts.
(d)
(f) If a hydraulic fracturing treatment
is performed on a well, a supplier that performs any part of
hydraulic fracturing or provides additives directly to the operator
for a hydraulic fracturing treatment shall
furnish the operator with information needed for the operator to
comply with subdivision (e) (g) . If a
supplier claims trade secret protection pursuant to subdivision
(h) (j) , the supplier shall notify the
operator and provide to the operator substitute information, as
described in subdivision (h) (j) ,
suitable for public disclosure. This information shall be provided as
soon as possible but no later than 30 days following the conclusion
of the hydraulic fracturing treatment .
(e)
(g) (1) Within 60 days following cessation of a
hydraulic fracturing treatment on a well, the
operator shall post or cause to have posted to an Internet Web site
designated or maintained by the division and accessible to the
public, all of the hydraulic fracturing fluid composition and
disposition information required to be collected pursuant to rules
and regulations adopted under subdivision (b), including well
identification number and location.
(2) The division may designate a publicly accessible Internet Web
site, developed by the Ground Water Protection Council and the
Interstate Oil and Gas Compact Commission for the posting of the data
pursuant to paragraph (1), if all of the following requirements are
met:
(A) The information is organized on that Internet Web site 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 (b) using search
functions on that Internet Web site.
(B) The Internet Web site permits any person to export, copy, or
otherwise obtain in electronic format the data submitted pursuant to
subdivision (b) from that Internet Web site. Once obtained, there
shall be no restrictions on the possession or further distribution,
modification, transmission, or reproduction of any information
submitted pursuant to this section in any form and by any means and
no prior authorization shall be required.
(3) If an Internet Web site is not designated by the division
pursuant to paragraph (2), the division shall maintain a publicly
accessible Internet Web site, in compliance with subparagraphs (A)
and (B) of paragraph (2), for the posting of the data required
pursuant to paragraph (1).
(2) The division's Internet Web site shall be operational by
January 1, 2016, and 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. The reported information shall be organized on the
division's Internet Web site 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 (b) using search functions on that Internet
Web site.
(f)
(h) The operator is responsible for compliance with
this section.
(g) The names and locations of all known seismic faults within a
distance from the well bore in any direction equal to five times the
fracture zone length and the names and locations of seismic faults
whose movement is reasonably anticipated to impact the integrity of
the well, well casing, and oil and gas formation shall be added to
the well history. The fracture zone length is defined as the distance
from the well bore to the maximum extent of any induced fracture.
(i) (1) All geologic features within a distance reflecting an
appropriate safety factor of the fracture zone and having 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, but are not limited to,
seismic faults.
(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 hydraulic fracturing treatment. The safety
factor shall be at least five and may vary depending upon geologic
knowledge.
(h)
(j) (1) The supplier may claim trade secret protection
for the chemical composition of additives pursuant to 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).
(2) If a supplier believes that information regarding a chemical
constituent of a hydraulic fracturing fluid is a trade secret, the
supplier shall nevertheless disclose the information to the division
in conjunction with a hydraulic fracturing treatment permit
application, if not previously disclosed, within 30 days
following cessation of hydraulic fracturing on a well, and shall
notify the division in writing of that belief.
(3) The supplier is not required to disclose trade secret
information to the operator.
(4) This subdivision does not permit a supplier to refuse to
disclose the information required pursuant to this section to the
division.
(5) To comply with the public disclosure requirements of this
section, the supplier shall indicate where trade secret information
has been withheld and the specific name of a chemical constituent
shall be replaced with the chemical family name or similar descriptor
associated with the trade secret chemical information.
(6) Except as provided in subparagraph (B) of paragraph (8), the
division shall protect from disclosure any trade secret designated as
such by the supplier, if that trade secret is not a public record.
(7) The supplier shall notify the division in writing within 30
days of any changes to information provided to the division to
support a trade secret claim.
(8) Upon receipt of a request for the release of information to
the public, which includes information the supplier has notified the
division is a trade secret and is not a public record, 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.
(9) (A) Except as provided in subparagraph
(B) of paragraph (8), trade secret information is not a public record
and shall not be disclosed to anyone except to an officer or
employee of the division, the state, 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 the
state and its 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.
(10) Except as provided in subparagraph (B) of paragraph (8), an
officer or employee of the division or former officer or employee
who, by virtue of that employment or official position, has
possession of, or has access to, any trade secret subject to this
section, and who, knowing that disclosure of the information to the
general public is prohibited by this section, knowingly and willfully
discloses the information in any manner to any person not entitled
to receive it, is guilty of a misdemeanor. A contractor of the
division and any employee of the contractor who has been furnished
information as authorized by this section shall be considered an
employee of the division for purposes of this section.
(11) In the event of exposure to hydraulic fracturing fluids
necessitating medical care, the person receiving the care shall have
the right to petition the division to disclose relevant trade secret
information in order to receive appropriate medical care.
(B) A health professional may share trade secret information with
other persons as may be professionally necessary, including, but not
limited to, the patient and other health professionals.
Confidentiality of the trade secret information shall be maintained.
The holder of the trade secret may request a confidentiality
agreement consistent with the requirements of this subdivision to
whom this information is disclosed as soon as circumstances permit.
If necessary, a procedure for timely disclosure by the division in
the event of an emergency shall be identified.
(i)
(k) This section does not apply to routine
pressure tests to monitor the integrity of wells and well
casings.
(j)
(l) A well granted confidential status pursuant to
Section 3234 shall comply with this section, with the exception of
the disclosure of hydraulic fracturing fluids pursuant to subdivision
(e) (g) which shall not be required
until the confidential status of the well ceases.
(m) The division shall perform random periodic spot check
investigations to ensure that the information provided on hydraulic
fracturing treatments is accurately reported, including that the
estimates provided prior to the commencement of the hydraulic
fracturing treatment are reasonably consistent with the well history.
(n) Where the division shares jurisdiction over a well or the
hydraulic fracturing treatment on a well with a federal entity, the
division's rules and regulations shall govern the hydraulic
fracturing treatment of the well.
3158. (a) Within 60 days after the date of cessation of hydraulic
fracturing, the operator shall file with the district deputy, in
a form approved by the
supervisor, true copies of the log, core record, and history of work
performed, and, if made, true and reproducible copies of all
electrical, physical, or chemical logs, tests, or surveys. Upon a
showing of hardship, the supervisor may extend the time within which
to comply with this section for a period not to exceed 60 additional
days.
(b) The supervisor shall include information provided pursuant to
subdivision (e) of Section 3157 on existing publicly accessible maps
on the division's Internet Web site, and make the information
available such that hydraulic fracturing and related information are
associated with each specific well. If data are reported on an
Internet Web site not maintained by the division pursuant to
paragraph (2) of subdivision (e) of Section 3157, the division shall
provide electronic links to that Internet Web site. The public shall
be able to search and sort the hydraulic fracturing and related
information by at least the following criteria:
(1) Geographic area.
(2) Additive.
(3) Chemical constituent.
(4) Chemical Abstract Service number.
(5) Time period.
(6) Operator.
(c) Notwithstanding Section 10231.5 of the Government Code, on or
before January 1, 2016, and annually thereafter, the supervisor
shall, in compliance with Section 9795 of the Government Code,
prepare and transmit to the Legislature a comprehensive report on
hydraulic fracturing in the exploration and production of oil and gas
resources in California. The report shall include aggregated data of
all of the information required to be reported pursuant to Section
3157 reported by district, county, and operator. The report also
shall include relevant additional information, as necessary,
including, but not limited to, all the following:
(1) Aggregated data detailing the disposition of any produced
water from wells that have undergone hydraulic fracturing.
(2) Aggregated data detailing the names and locations of seismic
faults within a distance from the well bore in any direction equal to
five times the fracture zone length and the names and locations of
seismic faults whose movement is reasonably anticipated to impact the
integrity of the well, well casing, and oil and gas formation.
(3) The number of emergency responses to a spill or release.
(4) Aggregated data detailing the number of times trade secret
information was not provided to the public, by county and by each
company, in the preceding year.
(5) Data detailing the loss of well and well casing integrity in
the preceding year for wells that have undergone hydraulic fracturing
treatment. For comparative purposes, data detailing the loss of well
and well casing integrity in the preceding year for all wells shall
also be provided. The cause of each well and well casing failure, if
known, shall also be provided.
(d) The report shall be made publicly available and an electronic
version shall be available on the division's Internet Web site.
SEC. 2. SEC. 3. Section 3213 of the
Public Resources Code is amended to read:
3213. The history shall show the location and amount of
sidetracked casings, tools, or other material, the depth and quantity
of cement in cement plugs, the shots of dynamite or other
explosives, and the results of production and other tests during
drilling operations. All data on hydraulic fracturing treatments
pursuant to Section 3157 3160 shall be
recorded in the history.
SEC. 4. Section 3215 of the Public
Resources Code is amended to read:
3215. (a) Within 60 days after the date of
cessation of drilling, rework, hydraulic fracturing treatment,
or abandonment operations, or the date of suspension of
operations, the operator shall file with the district deputy, in
a form approved by the supervisor, true copies of the log,
core record, and history of work performed, and, if made, true and
reproducible copies of all electrical, physical, or chemical logs,
tests, or surveys in such form as the supervisor may approve
shall be filed with the district deputy . Upon a showing
of hardship, the supervisor may extend the time within which to
comply with the provisions of this section for a
period not to exceed 60 additional days.
(b) The supervisor shall include information provided pursuant to
subdivision (g) of Section 3160 on existing publicly accessible maps
on the division's Internet Web site, and make the information
available such that hydraulic fracturing treatment and related
information are associated with each specific well. If data is
reported on an Internet Web site not maintained by the division
pursuant to paragraph (2) of subdivision (g) of Section 3160, the
division shall provide electronic links to that Internet Web site.
The public shall be able to search and sort the hydraulic fracturing
treatment and related information by at least the following criteria:
(1) Geographic area.
(2) Additive.
(3) Chemical constituent.
(4) Chemical Abstract Service number.
(5) Time period.
(6) Operator.
(c) Notwithstanding Section 10231.5 of the Government Code, on or
before January 1, 2016, and annually thereafter, the supervisor
shall, in compliance with Section 9795 of the Government Code,
prepare and transmit to the Legislature a comprehensive report on
hydraulic fracturing in the exploration and production of oil and gas
resources in California. The report shall include aggregated data of
all of the information required to be reported pursuant to Section
3160 reported by the district, county, and operator. The report also
shall include relevant additional information, as necessary,
including, but not limited to, all the following:
(1) Aggregated data detailing the disposition of any produced
water from wells that have undergone hydraulic fracturing treatments.
(2) Aggregated data describing the formations where wells have
received hydraulic fracturing treatments including the range of
safety factors used and fracture zone lengths.
(3) The number of emergency responses to a spill or release
associated with a hydraulic fracturing treatment.
(4) Aggregated data detailing the number of times trade secret
information was not provided to the public, by county and by each
company, in the preceding year.
(5) Data detailing the loss of well and well casing integrity in
the preceding year for wells that have undergone hydraulic fracturing
treatment. For comparative purposes, data detailing the loss of well
and well casing integrity in the preceding year for all wells shall
also be provided. The cause of each well and well casing failure, if
known, shall also be provided.
(6) The number of spot check inspections conducted pursuant to
subdivision (m) of Section 3160, including the number of inspections
where the composition of hydraulic fracturing fluids were verified
and the results of those inspections.
(7) The number of hydraulic fracturing treatments witnessed by the
division.
(8) The number of enforcement actions associated with hydraulic
fracturing treatments, including, but not limited to, notices of
deficiency, notices of violation, civil or criminal enforcement
actions, and any penalties assessed.
(d) The report shall be made publicly available and an electronic
version shall be available on the division's Internet Web site.
SEC. 5. Section 3236.5 of the Public
Resources Code is amended to read:
3236.5. (a) A person who violates this chapter or a regulation
implementing this chapter is subject to a civil penalty not to exceed
twenty-five thousand dollars ($25,000) for each violation. A
person who commits a violation of Article 3 (commencing with Section
3150) is subject to a civil penalty of not less than ten thousand
dollars ($10,000) and not to exceed twenty-five thousand dollars
($25,000) per day per violation. An act of God and an act of
vandalism beyond the reasonable control of the operator shall not be
considered a violation. The civil penalty shall be imposed by an
order of the supervisor pursuant to Section 3225 upon a determination
that a violation has been committed by the person charged. The
imposition of a civil penalty under this section shall be in addition
to any other penalty provided by law for the violation. When
establishing the amount of the civil penalty pursuant to this
section, the supervisor shall consider, in addition to other relevant
circumstances, all of the following:
(1) The extent of harm caused by the violation.
(2) The persistence of the violation.
(3) The pervasiveness of the violation.
(4) The number of prior violations by the same violator.
(b) An order of the supervisor imposing a civil penalty shall be
reviewable pursuant to Article 6 (commencing with Section 3350). When
the order of the supervisor has become final and the penalty has not
been paid, the supervisor may apply to the appropriate superior
court for an order directing payment of the civil penalty. The
supervisor may also seek from the court an order directing that
production from the well or use of the production facility that is
the subject of the civil penalty order be discontinued until the
violation has been remedied to the satisfaction of the supervisor and
the civil penalty has been paid.
(c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.
SEC. 6. Section 3401 of the Public
Resources Code is amended to read:
3401. The proceeds of charges levied, assessed, and collected
pursuant to this article upon the properties of every person
operating or owning an interest in the production of a well shall be
used exclusively for the support and maintenance of the department
charged with the supervision of oil and gas operations. This
shall include all costs associated with hydraulic fracturing
treatments including scientific studies required to evaluate the
treatment, inspections, and any air and water quality monitoring and
testing performed by public entities.
SEC. 3. SEC. 7. 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.