BILL NUMBER: SB 1054	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  MAY 8, 2012
	AMENDED IN SENATE  MAY 1, 2012
	AMENDED IN SENATE  APRIL 17, 2012
	AMENDED IN SENATE  MARCH 29, 2012

INTRODUCED BY   Senator Pavley

                        FEBRUARY 9, 2012

   An act to amend Sections 3203 and 3213 of, and to add Sections
3203.1 and 3203.2 to, the Public Resources Code, relating to oil and
gas.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1054, as amended, Pavley. Oil and gas: well operation: notice.
   (1) Existing law requires, before commencing the work of drilling
an oil and gas well, the operator to file a written notice of
intention to commence drilling with the State Oil and Gas Supervisor
or district deputy. Existing law provides that the notice is deemed
approved if the supervisor or the district deputy fails to give a
written response to the notice within 10 working days from the date
of receipt.
   This bill would extend the response time by the supervisor or the
district deputy from 10 working days to 15 working days.
   The bill would also require the owner or operator to provide
notice to, among others, certain surface property owners and
occupants no less than 20 calendar days prior to the planned drilling
operations of an oil and gas well. If the oil and gas well is
reasonably anticipated to pierce an underground water source that is
suitable for irrigation or domestic purposes, the bill would require
the owner and operator to provide the notice to the appropriate
regional water quality control board and to the supervisor or
district deputy, and would require the notice to be posted on the
Internet Web site of the Division of Oil, Gas, and Geothermal
Resources. The bill would require the notice to include information
about the oil and gas well and the planned operations. The bill would
require a well owner or operator to notify, among others, the
supervisor or district deputy before commencing hydraulic fracturing
operations. If the oil and gas well pierces an underground water
source that is suitable for irrigation or domestic purposes, the bill
would require the owner or operator to notify the appropriate
regional water quality control board and would require the supervisor
or district deputy to post the notice on the division's Internet Web
site.
   The bill would also require the supervisor, beginning January 1,
2014, and on the 10th calendar day of each year thereafter, to submit
to the Legislature an annual written report regarding the
implementation of this notice requirement.
   (2) Existing law requires the owner or operator of any oil and gas
well to keep a careful and accurate history of the drilling of the
well.
   This bill would require the history of the oil and gas well to
include the time period that hydraulic fracturing treatments are
performed.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 3203 of the Public Resources Code is amended to
read:
   3203.  (a) The operator of any well, before commencing the work of
drilling the well, shall file with the supervisor or the district
deputy a written notice of intention to commence drilling. Drilling
shall not commence until approval is given by the supervisor or the
district deputy. If the supervisor or the district deputy fails to
give the operator written response to the notice within 15 working
days from the date of receipt, that failure shall be considered as an
approval of the notice and the notice, for the purposes and intents
of this chapter, shall be deemed a written report of the supervisor.
If operations have not commenced within one year of receipt of the
notice, the notice shall be deemed canceled. The notice shall contain
the pertinent data the supervisor requires on printed forms supplied
by the division or on other forms acceptable to the supervisor. The
supervisor may require other pertinent information to supplement the
notice.
   (b) After the completion of any well, this section also applies as
far as may be, to the deepening or redrilling of the well, any
operation involving the plugging of the well, or any operations
permanently altering in any manner the casing of the well. The number
or designation of any well, and the number or designation specified
for any well in a notice filed as required by this section, shall not
be changed without first obtaining a written consent of the
supervisor.
   (c) If an operator fails to comply with an order of the
supervisor, the supervisor may deny approval of proposed well
operations until the operator brings its existing well operations
into compliance with the order. If an operator fails to pay a civil
penalty, remedy a violation that it is required to remedy to the
satisfaction of the supervisor pursuant to an order issued under
Section 3236.5, or pay any charges assessed under Article 7
(commencing with Section 3400), the supervisor may deny approval of
the operator's proposed well operations until the operator pays the
civil penalty, remedies the violation to the satisfaction of the
supervisor, or pays the charges assessed under Article 7 (commencing
with Section 3400).
  SEC. 2.  Section 3203.1 is added to the Public Resources Code, to
read:
   3203.1.  (a) For the purposes of this section, "surface property
owner" means the owner of a 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.
   (b) (1) Not less than 20 calendar days prior to the planned start
of drilling operations of a well, the well owner or operator shall
notify all of the following:
   (A) Every surface property owner, or authorized agent of that
owner, and every surface property occupant whose property line or
place of residence is within 300 feet of the real property upon which
the wellhead will be located, with the exception of an owner or
occupant whose property line or place of residence is located more
than 2,500 feet from the centerline of the planned vertical wellhead
at the surface. 
   (B) (i) The appropriate regional water quality control board for
any underground waters suitable for irrigation or domestic purposes,
if the well is reasonably anticipated to pierce the underground water
source.  
   (ii) If the notice is provided to a regional water quality control
board pursuant to this subparagraph, the notice shall also be
provided to the supervisor or the district deputy and shall be posted
on the division's Internet Web site within five days of the receipt
of the notice.  
   (C) Every water supplier who uses any underground waters suitable
for irrigation or domestic purposes that the well is reasonably
anticipated to pierce.  
   (B) The appropriate regional water quality control board based on
the wellhead location.  
   (D) 
    (C)  Every municipal government in which a recipient of
the notice pursuant to subparagraph (A) is located.
   (2) The notice shall be mailed or delivered. Notice to a municipal
government pursuant to subparagraph  (D)   (C)
 of paragraph (1)  ,   and  a regional
water quality control board pursuant to subparagraph (B) of
paragraph (1)  , and the division,  may be provided
electronically by prior written agreement.  Notice to the
division shall be provided electronically. 
   (3) The notice shall provide all of the following:
   (A) The location of the well.
   (B) The well identification number, if available.
   (C) A description of the planned drilling operations
understandable to a layperson.
   (D) The time period when drilling operations are planned to occur.

   (E) Instructions on how to obtain additional information on the
status of drilling operations from the well owner or operator.
   (F) The contact information for the district deputy.
   (G) Information on how to obtain additional information on the
well from the division, including well log data.
   (4) The well owner or operator shall provide to the supervisor or
district deputy a complete list of all recipients of the notice and a
copy of the information provided in the notice required pursuant to
this subdivision, in no less than 10 calendar days prior to
commencing drilling operations.  The division shall post a copy
of the information provided in the notice on   the division'
s Internet Web site within   five   days of
receiving this information. 
   (5) The well owner or operator shall notify all recipients of the
notice required, pursuant to this subdivision, if the drilling
operations do not occur during the proposed time period.
   (c) A well owner or operator who complies with this section is
deemed to be in compliance with the notice requirement pursuant to
Section 848 of the Civil Code. 
   (d) For the purposes of enforcing this section, the division may
conduct a random sample of 5 percent or less of the lists provided
pursuant to paragraph (4) of subdivision (b). 
  SEC. 3.  Section 3203.2 is added to the Public Resources Code, to
read:
   3203.2.  (a) For the purposes of this section, the following
definitions apply:
   (1) "Surface property owner" means the owner of a 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.
   (2) "Hydraulic fracturing" or "fracking" means a well stimulation
treatment that typically includes the pressurized injection of water
and other materials into an underground geologic formation in order
to create or propagate fractures in the formation, thereby or with
the intent of causing or improving the production of oil or gas from
a well.
   (b) (1) Thirty calendar days prior to the commencement of
hydraulic fracturing operations on a well, the well owner or operator
shall notify all of the following:
   (A) Every surface property owner, or authorized agent of that
owner, and every surface property occupant whose property line or
place of residence is within 300 feet of the real property upon which
the wellhead will be located, with the exception of an owner or
occupant whose property line or place of residence is located more
than 2,500 feet from the centerline of the planned vertical wellhead
at the surface.
   (B) Every surface property owner, or authorized agent of that
owner, and every surface property occupant whose property line or
place of residence is within 300 feet, in any direction, from the
horizontal projection of the subsurface portion of the designated
well to the surface.
   (C) The appropriate regional water quality control board 
for any underground waters suitable for irrigation or domestic
purposes, if the well pierces the underground water source. The owner
or operator shall, at the same time, notify the supervisor or
district deputy that a notice has been provided pursuant to this
subparagraph, and the supervisor or district deputy shall post the
notice on the division's Internet Web site within five days of the
notification   based on the wellhead location  .

   (D) Every water supplier who uses any underground waters suitable
for irrigation or domestic purposes that the well pierces. 

   (E) 
    (D)  Every municipal government in which recipients of
the notice pursuant to subparagraphs (A) and (B) are located.
   (2) The notice shall be mailed or delivered. Notice to the
regional water quality control board  and the division
 pursuant to subparagraph (C) of paragraph (1)  ,
 and to a municipal government pursuant to subparagraph
 (E)   (D)  of paragraph (1)  ,
 may be provided electronically by prior written agreement.
   Notice to the division shall be provided
electronically. 
   (3) The notice shall provide all of the following:
   (A) The location of the well.
   (B) The well identification number.
   (C) A description of the planned fracking well stimulation
technique understandable to a layperson.
   (D) The time period when fracking well stimulation is planned to
occur.
   (E) Instructions on how to obtain additional information on the
status of drilling operations from the well owner or operator.
   (F) The contact information for the district deputy.
   (G) Information on how to obtain additional information on the
well, including well log data.
   (4) The well owner or operator shall provide to the supervisor or
district deputy a complete list of all recipients of the notice and a
copy of the information provided in the notice required pursuant to
this subdivision, in no less than 20 calendar days prior to starting
a hydraulic fracturing stimulation treatment.  The division shall
post a copy of the information provided in the notice on the
division's Internet Web site within five   days of receiving
this information. 
   (5) The well owner or operator shall notify all recipients of the
notice required pursuant to this subdivision if the hydraulic
fracturing well stimulation treatment does not occur during the
proposed time period.
   (6) The well owner or operator shall add the actual time period of
the hydraulic fracturing well stimulation treatment to the records
contained in the well drilling history pursuant to Section 3213 and
report it accordingly.
   (c) A well owner or operator who complies with this section is
deemed to be in compliance with the notice requirement pursuant to
Section 848 of the Civil Code. 
   (d) For the purposes of enforcing this section, the division may
conduct a random sample of 5 percent or less of the lists provided
pursuant to paragraph (4) of subdivision (b).  
   (d) 
    (e)  Beginning January 1, 2014, and no later than the
10th calendar day of each year thereafter, the supervisor shall
submit to the Legislature a written report describing 
compliance with this section, in order to evaluate compliance and the
regulatory burden imposed     the materials
received from the well owners and operators pursuant to this section.
Data shall be aggregated geographically by the municipal government
and district  . The report shall include  the total
number of notices issued,  the number of wells with notices
 ,  and any additional information necessary to
interpret the results. The report shall be submitted in compliance
with Section 9795 of the Government Code.
  SEC. 4.  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. The history shall include the time period that
hydraulic fracturing treatments are performed.