BILL NUMBER: AB 591	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 9, 2012
	AMENDED IN SENATE  JULY 7, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  MAY 10, 2011
	AMENDED IN ASSEMBLY  APRIL 12, 2011

INTRODUCED BY   Assembly Member Wieckowski
   (Principal coauthor: Assembly Member Dickinson)
   (Coauthor: Assembly Member Allen)

                        FEBRUARY 16, 2011

   An act to amend Sections  3210,  3213  ,
 and 3215 of, and to add Section  3017 
 3213.5  to, the Public Resources Code, relating to oil and
gas production.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 591, as amended, Wieckowski. Oil and gas production: hydraulic
fracturing.
   Under existing law, the Division of Oil, Gas, and Geothermal
Resources 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 the owner or 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   Existing law also
provides that within  60 days after the date of cessation of
drilling, rework, or abandonment operations, the owner or operator
 of a well is required to file with the district deputy
certain information, including the history of work performed.

   This bill would define "hydraulic fracturing" and require a person
carrying out hydraulic fracturing on behalf of an owner or operator
at a well to provide to the owner or operator a list of the chemical
constituents used in the hydraulic fracturing fluid and the amount of
water and hydraulic fracturing fluid recovered from the well. The
bill would additionally require the history of the drilling of the
well to include certain information regarding the amount and source
of water used in the exploration or production from the well and the
radiological components or tracers injected into the well. The bill
would also require the history to include, if hydraulic fracturing
was used at the well, a complete list of the chemicals used in the
hydraulic fracturing and the amount and disposition of water and
hydraulic fracturing fluid recovered from the well. 
   The bill would require  a supplier, as defined, of hydraulic
fracturing services to furnish to  the owner or operator
 to submit to the supervisor   , certain
information, including  information regarding the chemicals used
in hydraulic fracturing,  who would be required 
 unless protected as a trade secret. The bill would require the
owner or operator to post the information on a Chemical Disclosure
Registry and  to add this information to existing Internet maps
on the division's Internet Web site  and to make this
information available to the public  .  The bill would
require a person asserting trade secret protection as a basis for
nondisclosure to submit to the supervisor specified information under
the penalty of perjury. Because the bill would create a new crime,
this bill would impose a state-mandated local program. 
   This bill would require the State Oil and Gas Supervisor on or
before January 1, 2013, and annually thereafter, to 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 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:  no   yes .



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    This act shall be known, and may be
cited, as the California Fracturing Disclosure Act of 2012. 
   SECTION 1.   SEC. 2.  The Legislature
finds and declares all of the following:
   (a) Hydraulic fracturing is a technique used in the production of
oil and gas that involves the pressurized injection of water and a
mix of chemicals into an underground geologic formation in order to
fracture the formation, thereby causing or enhancing the production
of oil or gas from a well.
   (b) Hydraulic fracturing has been used in California for several
decades to extract oil and gas and is likely to be used more
extensively as the industry seeks to develop additional oil- and
gas-bearing formations.
   (c) The Division of Oil, Gas, and Geothermal Resources in the
Department of Conservation, which has the obligation to protect
public health and the resources of the state, including groundwater
resources, has the authority to regulate all oil and natural gas
drilling in the state, but currently does not require the disclosure
of pertinent information regarding hydraulic fracturing or ascertain
what specific types of production and exploration are taking place at
permitted wells.
   (d) Given California's geologic, seismic complexity, and finite
and significantly compromised water resources, it is important to
collect basic information about natural resource production
processes. The state and the public should know when and where
hydraulic fracturing is occurring and what chemicals are being used
in the process. 
  SEC. 2.    Section 3017 is added to the Public
Resources Code, to read:
   3017.  "Hydraulic fracturing" means a technique used in preparing
a well that typically involves the pressurized injection of water and
a mix of chemicals, compounds, and materials 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.  
  SEC. 3.    Section 3210 of the Public Resources
Code is amended to read:
   3210.  (a) The owner or operator of any well shall keep, or cause
to be kept, a careful and accurate log, core record, and history of
the drilling of the well.
   (b) A person carrying out hydraulic fracturing on behalf of an
owner or operator at a well shall provide to that owner or operator a
complete list of the chemical constituents used in the hydraulic
fracturing fluid and each chemical's associated Chemical Abstracts
Service (CAS) numbers, for the purposes of accurately and completely
maintaining the well's log, history, and core record, and ensuring
compliance with the disclosure requirements of this article.
   (c) A person carrying out hydraulic fracturing on behalf of an
owner or operator at a well shall provide to that owner or operator
the amount and disposition of water and hydraulic fracturing fluid
recovered from each well prior to the reporting of the water produced
pursuant to Section 3227, for the purposes of accurately and
completely maintaining the well's log, history, and core record, and
ensuring compliance with the disclosure requirements of this article.
 
  SEC. 4.    Section 3213 of the Public Resources
Code is amended to read:
   3213.  (a) The history of the drilling of the well shall show all
of the following:
   (1) 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.
   (2) The amount and source of water used in the exploration of or
production from the well, which shall be updated annually.
   (3) Any radiological components or tracers injected into the well
and a description of the recovery method, if any, for those
components or tracers, the recovery rate, and the disposal method for
recovered components or tracers.
   (b) If hydraulic fracturing was used at the well, the history of
the drilling of the well shall also include both of the following:
   (1) A complete list of the chemicals used in the hydraulic
fracturing. This list shall include the names of all of the chemicals
used and their Chemical Abstracts Service (CAS) numbers.
   (2) The amount and disposition of water and hydraulic fracturing
fluid recovered from each well prior to the reporting of the water
produced pursuant to Section 3227. 
   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  , and the information
required pursuant to Section 3213.5  .
   SEC. 4.    Section 3213.5 is added to the  
Public Resources Code   , to read:  
   3213.5.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Additive" means a chemical substance or combination of
substances, including chemicals and proppants intentionally added to
the base fluid for purposes of preparing a hydraulic fracturing fluid
for treatment of a well.
   (2) "Base fluid" means the continuous phase fluid type, such as
water, used in a hydraulic fracturing treatment.
   (3) "Carrier fluid" means a base fluid, such as water, into which
additives are mixed to form the hydraulic fracturing fluid.
   (4) "Chemical" means an element or chemical compound, or mixture
of elements or compounds that has its own specific name or identity
such as a Chemical Abstracts Service number, whether or not the
chemical is subject to the requirements of Section 1910.1200(g)(2) of
Title 29 of the Code of Federal Regulations.
   (5) "Chemical Abstracts Service" means the division of the
American Chemical Society that is the globally recognized authority
for information on chemical substances.
   (6) "Chemical Abstracts Service (CAS) number" means the unique
identification number assigned to a chemical by the Chemical
Abstracts Service.
   (7) "Chemical Disclosure Registry" means the chemical registry
Internet Web site known as fracfocus.org developed by the Ground
Water Protection Council and the Interstate Oil and Gas Compact
Commission. If that Internet Web site becomes permanently inoperable,
then "Chemical Disclosure Registry" shall mean another publicly
accessible information Internet Web site that is designated by the
Division of Oil, Gas and Geothermal Resources.
   (8) "Chemical family" means a group of chemicals that share
similar chemical properties and have a common general name.
   (9) "Health professional" means a physician, physician assistant,
nurse practitioner, registered nurse, or emergency medical technician
licensed by the State of California.
   (10) "Hydraulic fracturing" is a well stimulation treatment that
includes the application of hydraulic fracturing fluids into an
underground geologic formation to create or propagate fractures in
the formation, thereby causing or improving the production of oil or
gas from a well.
   (11) "Hydraulic fracturing fluids" include a carrier fluid mixed
with physical and chemical additives for the purpose of hydraulic
fracturing. The additives may, but are not required to, serve
additional purposes beyond the transmission of hydraulic pressure to
the geologic formation. Additives may be of any phase.
   (12) "Proppants" are materials inserted or injected into the
formation that are intended to prevent newly created or enhanced
fractures from closing.
   (13) "Supplier" means an entity performing hydraulic fracturing or
a person supplying an additive or proppant directly to the operator
for use in hydraulic fracturing.
   (b) If hydraulic fracturing is performed on a well, a supplier who
performs any part of hydraulic fracturing or provides additives
directly to the operator for hydraulic fracturing shall, with the
exception of information claimed to be a trade secret pursuant to
subdivision (f), furnish the operator with information needed for the
operator to comply with subdivision (c). That information shall be
provided as soon as possible but no later than 30 days following the
conclusion of the hydraulic fracturing.
   (c) If hydraulic fracturing is performed on a well, an owner or
operator of the well shall post within 60 days following the
cessation of hydraulic fracturing, or shall arrange with the supplier
to post, to the Chemical Disclosure Registry all the following
information that is not claimed as a trade secret pursuant to
subdivision (f):
   (1) The name of the owner or operator of the well.
   (2) The date of the hydraulic fracturing.
   (3) The county in which the well is located.
   (4) The API number for the well.
   (5) The well name and number.
   (6) The longitude and latitude of the wellhead.
   (7) The true vertical depth of the well.
   (8) A complete list of the names, CAS numbers, and maximum
concentration, in percent by mass, of each chemical intentionally
added to the hydraulic fracturing fluid. Where the CAS number does
not exist for a chemical, the operator or supplier may provide
another unique identifier where available.
   (9) The trade name, supplier, and a brief description of the
intended purpose of each additive contained in the hydraulic
fracturing fluid.
   (10) The total volume of carrier fluid used during hydraulic
fracturing, identifying whether it is water suitable for irrigation
or domestic purposes, water not suitable for irrigation or domestic
purposes, or something other than water.
   (11) The disposition of the carrier fluid used to conduct
hydraulic fracturing.
   (12) Any radiological components or tracers injected into the well
as part of the hydraulic fracturing process, a description of the
recovery method, if any, for those components or tracers, the
recovery rate and the disposal method for recovered components or
tracers.
   (d) The owner or operator of a well is not responsible for
inaccuracy in information that is provided by a supplier.
   (e) The owner or operator may request, in writing, that the
information required in this article be considered confidential
information pursuant to Section 3234.
   (f) (1) Owners, operators, and suppliers are not required to
disclose trade secrets to the division, and may withhold from
disclosure under this section information that is subject to a claim
of trade secret protection.
   (2) (A) An owner, operator, or supplier who withholds information
from the division shall, at the time of posting information to the
Chemical Disclosure Registry pursuant to subdivision (c), submit to
the supervisor a claim of entitlement form stating that the
information specified pursuant to paragraph (3) was withheld as
protected trade secret information, as defined in subdivision (d) of
Section 3426.1 of the Civil Code, or paragraph (9) of subdivision (a)
of Section 499c of the Penal Code.
   (B) On a form approved by the supervisor, an owner, operator, or
supplier shall identify, by category, the information withheld as
protected trade secret information. The form or any attachment to the
form shall not require trade secret information. The form shall
include all of the following:
   (i) The name, mailing address, and phone number of the owner,
operator, supplier, or authorized representative with respect to
trade secrecy claims. If the information changes, the claimant shall
submit an updated form to the supervisor within 30 days.
   (ii) The chemical family or similar descriptor for the chemical,
if the information withheld includes the identity of a chemical.
   (iii) A requirement that the owner, operator, or supplier affirm
or otherwise address, and provide specific information regarding, the
following: (I) that the holder of the trade secret information has
not disclosed it to another person, other than a member of a local
emergency planning committee, an officer or employee of the United
States or a state or local government, an employee of those entities,
or a person who is bound by a confidentiality agreement, and that
person has taken reasonable measures to protect the confidentiality
of the information and intends to continue to take measures, or
disclosure has otherwise been limited so that the information is not
readily available to competitors, (II) the information is not
required to be disclosed, or otherwise made available, to the public
under any other federal or state law, (III) disclosure of the
information would harm the competitive position of the disclosing
entity, and (IV) the information is not readily discoverable through
reverse engineering.
   (iv) A certification by the submitter declaring under penalty of
perjury that the claim of entitlement form has been completed and the
information contained therein is true, correct, and complete to the
best of the declarant's knowledge.
   (3) Information withheld from disclosure under subdivision (b) or
(c) shall be replaced with text signifying that it has been withheld
as trade secret information, except that the specific name of a
constituent that is claimed as trade secret information shall be
replaced with the chemical family or similar descriptor associated
with the trade secret constituent.
   (4) Information contained in the form may be made available to the
public in accordance with Section 3215 or upon request by a member
of the public pursuant to Chapter 3.5 (commencing with Section 6250)
of Division 7 of Title 1 of the Government Code.
   (5) The owner, operator, or supplier claiming a trade secret
entitlement is required to provide the trade secret information to
the supervisor upon receipt of a letter from the supervisor stating
that the information is necessary to respond to a spill, release, or
complaint from a person who may have been directly and adversely
affected or aggrieved by such spill or release. The information
disclosed to the supervisor shall be considered confidential and not
a public record for purposes of Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code.
   (6) This section does not prohibit the exchange of properly
designated trade secrets between public agencies who have lawful
jurisdiction for either enforcement action or emergency response, to
the extent that such disclosure is necessary to allow the agencies to
respond to a spill, release, or complaint, provided that the
agencies in receipt of the information shall not disseminate it
further. Employees who receive a trade secret from the division shall
maintain the confidentiality of the trade secret and destroy all
copies of the trade secret received once the need for the trade
secret has ended. A trade secret received shall not be considered a
public record for purposes of Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code.
   (7) This section does not prohibit the release of properly
designated trade secrets to a health professional who requests the
trade secret in writing, if the health professional provides a
written statement of need for the trade secret to treat injuries
caused by spills or releases and executes a confidentiality agreement
developed by the supervisor.
   (A) The health professional may not use the trade secret for
purposes other than is described in the statement of need. The trade
secret shall not be considered a public record for purposes of
Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code.
   (B) The confidentiality agreement shall state that (i) the trade
secret is needed for purposes of diagnosis or treatment of an
individual, (ii) the individual being diagnosed may have been exposed
to the chemical concerned as a result of a spill or release, and
(iii) knowledge of the trade secret will assist in such diagnosis or
treatment.
   (C) Where a health professional determines that a medical
emergency exists and the trade secret information is necessary for
emergency treatment, the owner, operator, or supplier shall
immediately disclose the information to the health professional on
verbal acknowledgment that the trade secret information shall not be
used for any purpose other than health needs and that the health
professional will otherwise maintain the information as confidential.
The owner, operator, or supplier may request a written statement of
need and confidentiality agreement from the health professional as
soon as circumstances permit.
   (8) This section does not supersede or change the disclosure of
information pursuant to the California Occupational Safety and Health
Act, the California Hazardous Material Release Response Plans and
Inventory statute, the Porter-Cologne Water Quality Control Act, or
any other state or federal act allowing the disclosure of chemical
information.
   (g) (1) Whenever it appears that any person is violating or
threatening to violate any provision of this section relating to the
disclosure of the constituents of hydraulic fracturing fluids, the
supervisor may bring suit against the person in the superior court of
any county where the violation occurs or is threatened to restrain
the person from continuing the violation or from carrying out the
threat of violation. Upon the filing of the suit, summons issued to
the person may be directed to the sheriff or his or her deputies. In
the suit, the court has jurisdiction to grant to the supervisor any
final prohibitory and mandatory injunctions that the facts warrant.
   (2) If the supervisor fails to bring suit to enjoin a violation or
threatened violation of any provision of this section relating to
the disclosure of the constituents of hydraulic fracturing fluids, or
any rule, regulation, or order of the supervisor within 30 days
after receipt of written request to do so by any person who is or
will be adversely affected by the violation, the person making the
request may bring suit in the person's own behalf to restrain the
violation or threatened violation in any court in which the
supervisor might have brought suit. If in the suit, the court holds
that injunctive relief should be granted, the supervisor shall be
made a party and shall be substituted for the person who brought the
suit, and the injunction shall be issued as if the supervisor had at
all times been the plaintiff.
   (3) A civil action for damages shall not lie against any person
for the violation of this section or any rule, regulation, or order
of the supervisor issued to implement or enforce this section. If the
supervisor brings a suit or action pursuant to paragraph (1), a
defendant or intervenor shall not cross-complain or otherwise bring
an action in the same proceeding against any other person for damages
or for any other purpose. 
  SEC. 5.  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, or abandonment
operations, or the date of suspension of operations, the owner or
operator shall file with the district deputy, in the 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 owner or operator shall also submit to the supervisor
information provided in the history pursuant to subdivision (b) of
Section 3213 and the supervisor shall add this information to
existing Internet maps on the division's Internet Web site, and make
the information available to the public in such a way that the list
of chemicals is associated with each specific well where those
chemicals were injected.  
   (b) The supervisor shall add information provided pursuant to
subdivision (c) of Section 3213.5 and not claimed as a trade secret
to existing Internet maps on the division's Internet Web site, and
make the nontrade secret information available to the public in such
a way that the information is associated with each specific well
where those chemicals were used. For the purpose of complying with
this subdivision, the supervisor may use the Chemical Disclosure
Registry if the following conditions are met:  
   (1) The information on the existing public Internet Web site
specific to California wells is originally transmitted to the public
Internet Web site and posted in a form and manner approved by the
supervisor and includes the information required by subdivision (c)
of Section 3213.5 that is not claimed as a trade secret.  
   (2) There is an electronic link from the wells represented on the
division's existing Internet maps that allows members of the public
to view the information about specific wells based on their location.
 
   (3) On and after January 1, 2013, the Chemical Disclosure Registry
allows for the division staff and the public to search and sort the
registry for information by geographic area, ingredient, Chemical
Abstract Service number, time period, and operator. 
   (c) On or before January 1, 2013, and annually thereafter, the
supervisor shall prepare and transmit to the Legislature a
comprehensive report on hydraulic fracturing in the exploration and
production of oil and gas resources in California using the data
provided pursuant to  subdivision (b) of  Section
 3213.   3213.5.  The report also shall
include relevant additional information, as necessary, including, but
not limited to,  the disposition of water used in the
process.   all the following:  
   (1) Aggregated data detailing the volumes of carrier fluid used
during hydraulic fracturing, identifying whether it is water suitable
for irrigation or domestic purposes, water not suitable for
irrigation or domestic purposes, or something other than water. 

   (2) Aggregated data detailing the disposition of carrier fluid
used to conduct hydraulic fracturing.  
   (3) Aggregated data detailing the volumes of each chemical used in
hydraulic fracturing in the state, in each county, and by each
company during the preceding year.  
   (4) The number of wells granted confidentiality for hydraulic
fracturing information under Section 3234.  
   (5) The number of emergency responses to a spill or release. 

   (6) Based on a representative sampling of Chemical Disclosure
Registry forms submitted to the division pursuant to subdivision (c)
of Section 3213.5, the percentage of chemical information withheld
within the representative sample as trade secret information pursuant
to subdivision (f) of Section 3213.5. 
   (d) A report to be submitted pursuant to subdivision (c) shall be
submitted in compliance with Section 9795 of the Government Code.

  SEC. 6.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.