Bill Text: CA SB4 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Oil and gas: well stimulation.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2013-09-20 - Chaptered by Secretary of State. Chapter 313, Statutes of 2013. [SB4 Detail]

Download: California-2013-SB4-Amended.html
BILL NUMBER: SB 4	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 18, 2013
	AMENDED IN SENATE  MAY 24, 2013
	AMENDED IN SENATE  MAY 7, 2013
	AMENDED IN SENATE  APRIL 24, 2013
	AMENDED IN SENATE  MARCH 11, 2013

INTRODUCED BY   Senator Pavley
   (Coauthors: Senators De León, Leno, and Monning)
   (  Coauthor:   Assembly Member 
 Stone   Coauthors:   Assembly Members
  Gorell   and Stone  )

                        DECEMBER 3, 2012

   An act to amend 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.   well stimulation. 
   (1) Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation, or the division,
regulates the drilling, operation, maintenance, and abandonment of
oil and gas wells in the state. The State Oil and Gas Supervisor, or
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
supervisor or 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  well
stimulation treatment,  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  well
stimulation treatments,   including acid well stimulation
and  hydraulic fracturing treatments. The bill would require an
operator of a well to record and include all data on 
hydraulic fracturing   well stimulation 
treatments, as specified. The bill would require 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
 hydraulic fracturing   well stimulation 
treatments may occur, on or before January 1, 2015, to adopt rules
and regulations specific to  hydraulic fracturing 
 well stimulation  , including governing the construction of
wells and well casings and full disclosure of the composition and
disposition of  hydraulic fracturing   well
stimulation fluids  . The bill would require an operator to
apply for a permit, as specified, with the supervisor or district
deputy, prior to performing a  hydraulic fracturing 
 well stimulation  treatment of a well and would prohibit
the operator from either conducting a new  hydraulic
fracturing   well stimulation  treatment or
repeating a  hydraulic fracturing   well
stimulation  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   a well stimulation
treatment  , 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   well stimulation  treatment to be
completed within one year from the date that a permit is issued. The
bill would require the division to perform random periodic spot check
inspections during  hydraulic fracturing   well
stimulation  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,
  require the Secretary of the Natural Resources Agency
to notify various legislative committees on the progress of the
independent scientific study on well stimulation and related
activities,  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   well stimulation  treatment permit to
specified  tenants and  property owners at least 30 days
prior to commencing a  hydraulic fracturing  
well stimulation  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   a
well stimulation  treatment in order for the division to witness
the  hydraulic fracturing  treatment. The bill
would require the supplier, as defined, of the  hydraulic
fracturing   well stimulation  treatment to provide
to the operator, within 30 days following the conclusion of the
 hydraulic fracturing   treatment  ,
certain information regarding the  hydraulic fracturing
  well stimulation  fluid. The bill would require
the operator, within 60 days of the cessation of  hydraulic
fracturing   a well stimulation  treatment, to post
or cause to have posted on an Internet Web site accessible to the
public specified information on the  fracturing and 
 well stimulation  fluid, as specified. The bill would
provide that where the division shares jurisdiction over a well with
a federal entity, the division's rules and regulations govern the
 hydraulic fracturing   well stimulation 
treatment of a well. The bill would require a supplier claiming trade
secret protection for the chemical composition of additives used in
 the hydraulic   a well stimulation 
treatment to disclose the composition to the division, in conjunction
with a  hydraulic fracturing   well stimulation
 treatment permit application, but would, except as specified,
prohibit those with access to the trade secret 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   well
stimulation treatments  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 
 well stimulation  including scientific studies required to
evaluate the treatment, inspections, and any air and water quality
sampling, 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   well stimulation  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 and 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.  Other well
stimulation treatments, in addition to hydraulic fracturing, are also
critical to boosting o   il and gas production. 
   (b) Insufficient information is available to fully assess the
science of the practice of hydraulic fracturing  and other well
stimulation treatment technologies  in California including
environmental, occupational, and public health hazards and risks.
   (c) Providing transparency and accountability to the public
regarding  well stimulation treatments, including, but not
limited to,  hydraulic fracturing, associated emissions to the
environment, and the handling, processing, and disposal of  well
stimulation and related wastes, including from  hydraulic
 fracturing and related wastes   fracturing,
 is of paramount concern. 
   (d) The Legislature encourages the use or reuse of treated or
untreated water and produced water for well stimulation treatments
and well stimulation treatment-related activities. 
  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   Well
Stimulation 


   3150.  "Additive" means a substance or combination of substances
added to a base fluid for purposes of preparing  well stimulation
treatment fluid which includes, but is not limited to, an acid
stimulation treatment fluid or  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  well stimulation treatment fluid, including, but not
limited to, an acid stimulation treatment fluid or 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  
well stimulation  treatment may use more than one base fluid.
   3152.  "Hydraulic fracturing" means a well stimulation treatment
that  , in whole or in part,  includes the pressurized
injection of hydraulic fracturing fluid or fluids into an underground
geologic formation in order to fracture  or with the intent to
fracture  the formation, thereby causing or enhancing, for the
purposes of this division, the production of oil or gas from a well.
   3153.  "Hydraulic fracturing fluid" means a 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.
   3154.  "Proppants" means materials inserted or injected into the
underground geologic formation that are intended to prevent fractures
from closing.
   3155.  "Supplier" means an entity performing a  hydraulic
fracturing   well stimulation  treatment or an
entity supplying an additive or proppant directly to the operator for
use in a  hydraulic fracturing   well
stimulation  treatment.
   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. 
   3157.  "Cyclic steam injection" means the alternating injection of
steam and production of oil with condensed steam from the same well
or wells and is an enhanced oil recovery technique. Typical
operations using this technique involve a cycle through a steam
injection stage, followed by a steam soak stage, and then a
production stage.  
   3157.  "Well stimulation treatment" means a treatment applied to a
well in order to enhance oil and gas production. Well stimulation
treatments include, but are not limited to, hydraulic fracturing
treatments and acid well stimulation treatments. Well stimulation
treatments are not underground injection or disposal projects that
are approved under Sections 1724.6 to 1724.10, inclusive, of Title 14
of the California Code of Regulations.  
   3158.  "Acid well stimulation treatment" means a well stimulation
treatment that uses, in whole or in part, the application of one or
more acids to the well or underground geologic formation with the
intent to cause or enhance the production of oil or gas from a well.
The acid well stimulation treatment may be at any applied pressure
and may be used in combination with hydraulic fracturing treatments
or other well stimulation treatments. 
   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  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 
hydraulic fracturing   well stimulation  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   well stimulation  treatments are
likely to spur or enable oil and gas exploration and production.
   (3)  (A)    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,  the use and potential for use of nontoxic
additives and the use or reuse of treated or produced water in
hydraulic fracturing fluids,  wastewater and waste hydraulic
fracturing fluid handling, treatment, and disposal. 
   (B) Evaluate all aspects of acid well stimulation treatments,
including the use and potential use of large-scale acidization
treatments and waste handling, treatment, and disposal. 
   (4) Consider, at a minimum, atmospheric emissions,  including
potential greenhouse gas emissions,  the potential degradation
of air quality,  potential impacts on wildlife, native plants,
and habitat,  potential water and surface contamination, 
potential noise pollution,  induced seismicity, 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.
   (5) Include a hazard assessment and risk analysis addressing
occupational and environmental exposures to  well stimulation
treatments, including  hydraulic fracturing  treatments
and   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.
   (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, 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  hydraulic
fracturing   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  hydraulic fracturing
  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 waste hydraulic fracturing  and acid stimulation 
fluids.
   (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  hydraulic fracturing  
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  hydraulic fracturing
  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.
Chemical information claimed as a trade secret, pursuant to
subdivision (j), shall be identified as such and reported as
described in subdivision (j).
   (C) The trade name, the supplier, and a brief description of the
intended purpose of each additive contained in the  hydraulic
fracturing fluid   well stimulation treatment fluid
 .
   (D) The total volume of base fluid used during the 
hydraulic fracturing   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  hydraulic fracturing   well
stimulation  treatment and recovered from the well following the
 hydraulic fracturing   well stimulat 
ion  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 
hydraulic fracturing   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  hydraulic
fracturing   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  hydraulic
fracturing   well stimulation  fluids.
   (I) The location of the portion of the well subject to the
 hydraulic fracturing   well stimulation 
treatment and the extent of the fracturing  or other
modification, if any,  surrounding the well induced by the
treatment. 
   (3) (A) A hydraulic fracturing treatment that is applied to a well
where cyclic steam injection is approved pursuant to Section 1724.8
of Title 14 of the California Code of Regulations, and that is
distinct from the process described under Section 3157, is subject to
this section.  
   (B) A cyclic steam injection process as described in Section 3157
is not subject to this section. 
   (c) (1) Through the consultation process described in paragraph
(1) of subdivision (b), the division shall  collaborately
  collaboratively  identify and delineate the
existing statutory authority and regulatory responsibility relating
to  hydraulic fracturing   well stimulation
 treatments and  hydraulic fracturing  
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 include how the respective authority, responsibility, and
notification and reporting requirements associated with 
hydraulic fracturing   well stimulation  treatments
and  hydraulic fracturing   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 
hydraulic fracturing   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  hydraulic fracturing
  well stimulation  treatments may occur, clearly
delineating respective authority, responsibility, and notification
and reporting requirements associated with  hydraulic
fracturing   well stimulation  treatments and
 hydraulic fracturing  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 disposal of materials in landfills, include
trade secret handling protocols, if necessary, and provide for ready
public access to information related to  hydraulic fracturing
  well stimulation  treatments and related
activities.
   (d) (1) Notwithstanding any other law or regulation, prior to
performing a  hydraulic fracturing   well
stimulation  treatment on a well, the operator shall apply for a
permit to perform a  hydraulic fracturing  
well stimulation  treatment with the supervisor or district
deputy. The 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 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
  well stimulation  treatment is planned to occur.

   (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
  well stimulation  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
  well stimulation  treatment on the well bore and
the estimated length, height, and direction of the induced fractures
 or other planned modification, if any  . 
   (F) A groundwater monitoring plan. A groundwater monitoring plan
is not required if the appropriate regional water quality control
board confirms that the well subject to the proposed well stimulation
treatment does not or will not penetrate or does not or will not
influence an aquifer that is designated for a beneficial use. The
groundwater monitoring plan shall include, at a minimum, all of the
following information:  
   (i) The current water quality of the groundwater basin through
which the well subject to the proposed well stimulation treatment is
or will be drilled that is sufficient to characterize the quality of
any aquifer through which the well is or will be drilled.  
   (ii) An estimate of the zone of influence of the well subject to
the proposed well stimulation treatment.  
   (iii) Water quality data or a plan to obtain data regarding the
presence and concentration of the constituents to be used in, or that
can be influenced by, the well subject to the proposed well
stimulation treatment.  
   (iv) A plan that specifies sites for monitoring wells designed to
detect contamination due to operation of the well subject to the
proposed well stimulation treatment until the well is plugged and
abandoned. The plan shall also include provisions for emergency
implementation in the event of well or well casing failure or other
event with the potential to contaminate groundwater.  
   (G) A waste and waste water disposal plan. 
   (2) (A) The supervisor or district deputy shall review the
 hydraulic fracturing   well stimulation 
treatment permit application and may approve the permit if the
application is complete.
   (B) A  hydraulic fracturing   well
stimulation  treatment or repeat  hydraulic fracturing
  well stimulation  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 
 well stimulation  treatment that presents unreasonable risk
or is incomplete shall not be approved.
   (3) The  hydraulic fracturing   well
stimulation  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   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  .

   (5)  At least 30 calendar days prior to commencing a
hydraulic fracturing treatment, the operator   (A) 
   The division  shall provide a copy of the
approved  hydraulic fracturing   well
stimulation  treatment permit 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: 
   (A) 
   (i)  Within a 1,500 foot radius of the wellhead. 

   (B) 
    (ii)  Within 500 feet from the horizontal projection of
all subsurface portions of the designated well to the surface. 
   (B) A well stimulation treatment shall not commence before 30
calendar days after the permit copies pursuant to subparagraph (A)
are provided. 
   (6) (A) 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:
   (i) Baseline measurements prior to the commencement of the
 hydraulic fracturing   well stimulation 
treatment.
   (ii) Followup measurements after the  hydraulic fracturing
  well stimulation  treatment on the same schedule
as the pressure testing of the well casing of the 
hydraulically-fractured   treated  well.
   (B) The regional water quality control board may contract with an
independent third party that adheres to board-specified standards and
protocols to perform the water sampling and testing.
   (7)  The   If warranted, the   
regional water quality control board shall  have the authority
to  retain  and archive sufficient   an
appropriately prepared and stored baseline  sample  or
samples  collected pursuant to paragraph (6)  to permit
a reasonable number of additional analyses   for 
 as long as the planned analytical method or methods would
provide valid results  .
   (8) The  operator shall provide the  division
 with   shall retain  a list of the
entities and property owners notified pursuant to paragraphs (4) and
(5).
   (9) The operator shall provide notice to the division at least 72
hours prior to the actual start of the  hydraulic fracturing
  well stimulation  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.
 
   (e) 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. 
   (f) If a  hydraulic fracturing   well
stimulation  treatment is performed on a well, a supplier that
performs any part of  hydraulic fracturing   the
stimulation  or provides additives directly to the operator for
a  hydraulic fracturing   well stimulation
 treatment shall furnish the operator with information needed
for the operator to comply with subdivision (g). If a supplier claims
trade secret protection pursuant to subdivision (j), the supplier
shall notify the operator and provide to the operator substitute
information, as described in subdivision (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   well stimulation  treatment.

   (g) (1) Within 60 days following cessation of a  hydraulic
fracturing   well stimulation  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  
well stimulation  fluid composition and disposition information
required to be collected pursuant to rules and regulations adopted
under subdivision (b), 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) The division's Internet Web site shall be operational 
by   on or before  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.
   (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 
having   that have  the potential to either limit
or facilitate the migration of fluids outside of the fracture
 zone,   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 
 well stimulation  treatment. The safety factor shall be at
least five and may vary depending upon geologic knowledge.
   (j) (1) The supplier may claim trade secret protection for the
chemical composition of additives  , whose use is not otherwise
prohibited by law,  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   well
stimulation  fluid is a trade secret, the supplier shall
nevertheless disclose the information to the division in conjunction
with a  hydraulic fracturing   well stimulation
 treatment permit application, if not previously disclosed,
within 30 days following cessation of  hydraulic fracturing
  well stimulation  on a well, and shall notify the
division in writing of that belief. 
   (3) In order to substantiate the trade secret claim to the
division, the supplier shall provide the following information to the
division:  
   (A) The extent to which the information is known outside the
business of the supplier submitting the information, and whether or
not all individuals with that knowledge are bound by nondisclosure
agreements.  
   (B) The extent to which the information is known by the supplier's
employees and others involved in the supplier's business, and
whether or not all those individuals are bound by nondisclosure
agreements.  
                                                             (C) The
extent of measures taken by the supplier to restrict access to and
guard the secrecy of the information, and whether or not the supplier
plans to continue utilizing those measures.  
   (D) The estimated value of the information to the supplier and its
competitors.  
   (E) The estimated amount of effort and money expended by the
supplier in developing the information, and a description of the
nature and extent of harm that would be caused if the information
were made public.  
   (F) The estimated ease or difficulty with which the information
could be properly acquired or duplicated by others, and an
explanation of why the chemical identity is not readily discoverable
through reverse engineering.  
   (G) Copies of, or references to, any pertinent trade secret or
other confidentiality determinations previously made by the division
or other public agencies, including court orders or decisions. 

   (4) If the division determines that the information provided in
support of a request for trade secret protection pursuant to
paragraph (3) 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.  
   (5) 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. If no order
or declaratory judgment is obtained, the division shall release the
information to the public by revising the information provided
pursuant to subdivision (g).  
   (3) 
    (6)  The supplier is not required to disclose trade
secret information to the operator. 
   (4) 
    (7)  This subdivision does not permit a supplier to
refuse to disclose the information required pursuant to this section
to the division. 
   (5) 
    (8)  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   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, whose specific composition is a trade secret.
Information on the relative amounts or concentration of the
constituents of additi   ves whose specific composition is a
trade secret shall not be publicly disclosed. The division shall
review and approve the supplied substitute information  .

   (6) 
    (9)  Except as provided in subparagraph (B) of paragraph
 (8)   (11)  , the division shall protect
from disclosure any trade secret  designated as such
  claimed  by the supplier, if that trade secret is
not a public record. 
   (7) 
    (10)  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  ,   including if the
information is no longer a trade secret  . 
   (8) 
    (11)  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) 
    (12)  (A) Except as provided in subparagraph (B) of
paragraph  (8)   (11)  , 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 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  if
the requirements of subparagraph (B   ) are met  ,
under any law for the protection of health, or to contractors with
the division or  the state   other government
entities  and  its   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) In order to receive trade secret information, a health
professional shall have a reasonable basis to suspect all of the
following:  
   (i) The information is needed for purposes of diagnosis or
treatment of a patient.  
   (ii) The patient being diagnosed or treated has been exposed to
one or more chemicals subject to trade secret nondisclosure. 

   (iii) Knowledge of the specific chemical identity of the chemical
or chemicals will assist in diagnosis or treatment of the patient.
 
   (B) 
    (C)  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.
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.  
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.  
   (D) The division shall develop a procedure for the timely
disclosure of trade secret information in the event of an emergency
or to diagnose or treat a patient pursuant to this subdivision. 

   (E) Confidentiality of trade secret information from public
disclosure shall be maintained by those who receive trade secret
information pursuant to the provisions of this subdivision, subject
to the enforcement provisions of this division, and any additional
applicable state and federal law.  
   (F) 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).  
   (13) (A) The supplier may provide trade secret information 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 and
confidentiality agreement. The written statement of need shall
include the public health purposes and shall explain the reason the
disclosure of the specific chemical and its concentration is required
in lieu of information describing the properties and effects of the
chemical.  
   (B) Confidentiality of trade secret information from public
disclosure shall be maintained by those who receive trade secret
information pursuant to the provisions of this paragraph subject to
the enforcement provisions of this division and any additional
applicable state and federal law. 
   (k) This section does not apply to routine pressure tests to
monitor the integrity of wells and well casings.
   (l) A well granted confidential status pursuant to Section 3234
shall comply with this section, with the exception of the disclosure
of  hydraulic fracturing   well stimulation
 fluids pursuant to subdivision (g) which shall not be required
until the confidential status of the well ceases.
   (m) The division shall perform random periodic spot check
inspections to ensure that the information provided on 
hydraulic fracturing   well stimulation  treatments
is accurately reported, including that the estimates provided prior
to the commencement of the  hydraulic fracturing 
 well stimulation  treatment are reasonably consistent with
the well history.
   (n) Where the division shares jurisdiction over a well or the
 hydraulic fracturing   well stimulation 
treatment on a well with a federal entity, the division's rules and
regulations shall govern the  hydraulic fracturing 
 well stimulation  treatment of the well.
  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
  well stimulation  treatments pursuant to Section
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   well
stimulation  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. 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 or electronic links
to 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   well stimulation  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   well stimulation  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   well stimulation
treatments  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
  well stimulation  treatments.
   (2) Aggregated data describing the formations where wells have
received  hydraulic fracturing   well
stimulation  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   well
stimulation  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   well stimulation  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 
well stimulation  fluids were verified and the results of those
inspections.
   (7) The number of  hydraulic fracturing  
well stimulation  treatments witnessed by the division.
   (8) The number of enforcement actions associated with 
hydraulic fracturing   well stimulation 
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.  (a) 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.
   (b) Notwithstanding subdivision (a), 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 undergoing a  hydraulic fracturing
  well stimulation  treatment, may be used by
public entities, subject to appropriation by the Legislature, for all
costs associated with  hydraulic fracturing  
well stimulation  treatments including scientific studies
required to evaluate the treatment, inspections, and any air and
water quality sampling, monitoring, and testing performed by public
entities.
  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.                                            
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