BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 571|
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UNFINISHED BUSINESS
Bill No: SB 571
Author: Maldonado (R)
Amended: 6/28/09
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE : 10-0, 4/14/09
AYES: Pavley, Cogdill, Hollingsworth, Huff, Kehoe, Leno,
Padilla, Simitian, Wiggins, Wolk
NO VOTE RECORDED: Benoit
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 35-0, 5/6/09 (Consent)
AYES: Alquist, Ashburn, Benoit, Calderon, Cogdill,
Corbett, Correa, Cox, Denham, Ducheny, Dutton, Florez,
Hancock, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu,
Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla,
Pavley, Romero, Simitian, Steinberg, Strickland, Walters,
Wiggins, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Aanestad, Cedillo, DeSaulnier, Runner,
Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Geothermal resources
SOURCE : Author
DIGEST : This bill extends the authority of the State Oil
and Gas Supervisor to deny approval of an operator's new or
CONTINUED
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expanded geothermal well operations if the operator fails
to pay a civil penalty, complies with an order, or fails to
pay the required well fee. It extends current authority to
include geothermal well operations.
Assembly Amendments struck a portion of the bill
authorizing a supervisor to deny approval of specified
operations, and made clarifying changes.
ANALYSIS :
Existing law:
1. Imposes a civil penalty on an oil or gas well operator
when a violation of geothermal regulations has occurred.
2. Requires the State Oil and Gas Supervisor to investigate
complaints against a well and, when necessary, to issue
an order to the well operator stating the work required
to repair the damage complained of.
3. Requires the supervisor to establish an annual well fee,
and penalties for late payment.
This bill extends the authority of the State Oil and Gas
Supervisor to deny approval of an operator's new or
expanded geothermal well operations if the operator fails
to pay a civil penalty, complies with a specified order, or
fails to pay the required well fee. It extends current
authority to include geothermal well operations.
Background
Geothermal energy is natural heat generated deep inside the
earth. Generally, this heat is only usable when it occurs
near the earth's surface and heats underground water.
Geothermal resources are generally found in two forms: dry
steam and hot water. Dry steam is rare and valuable, due
to the relatively few mineral impurities it contains.
Geothermal wells are drilled into the more permeable,
steam-bearing fracture zones to tap the resource. Hot
water geothermal resources are more common but also more
difficult to develop because they require dealing with the
highly mineralized geothermal water and the disposal of
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spent geothermal water. Geothermal wells bring hot water
to the surface at high pressure and convert the water into
steam.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ARGUMENTS IN SUPPORT : According to the author, "The
State Oil and Gas Supervisor does not have authority to
deny approval of geothermal well operations proposed by an
operator who has failed to comply with an order, pay civil
penalties or well fees. Thus, an out-of-compliance
operator may currently expand operations, and, therefore,
increase opportunities for noncompliance while continuing
to ignore their legal obligations associated with current
operations."
CTW:mw 7/16/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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