BILL NUMBER: AB 288 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2013
INTRODUCED BY Assembly Member Levine
FEBRUARY 11, 2013
An act to amend Sections 3106 and 3203 of, and to add Section
3203.5 to, the Public Resources Code, relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
AB 288, as amended, Levine. Oil and gas: hydraulic
fracturing. well stimulation .
(1) Under existing law, the Division of Oil, Gas, and Geothermal
Resources (DOGGR) in the Department of
Conservation regulates the drilling, operation, maintenance, and
abandonment of oil and gas wells in the state. The State Oil and Gas
Supervisor (supervisor) supervises is
required to supervise 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 possible damage to
life, health, property, and natural resources; damage to underground
oil and gas deposits from infiltrating water and other causes; loss
of oil, gas, or reservoir energy, and damage to so as
to prevent, as far as possible, damage to, among other things,
underground and surface waters suitable for irrigation or domestic
purposes by the infiltration of, or the addition of, detrimental
substances. 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 also would require the supervisor to supervise the
stimulation, well completion techniques, and rework of wells, and,
with regard to the manner in which well activities are to
be supervised to present damage to underground and surface waters by
the infiltration of, or the addition of, detrimental substances, the
bill would delete the limitation to waters suitable for irrigation or
domestic purposes. This bill would define
"hydraulic fracturing" "well stimulation" to include
hydraulic fracturing and acid stimulation, as specified, and
would require the operator of a well, at least 30
working days prior to any hydraulic fracturing
well stimulation operations, to file with the
supervisor or the district deputy a written notice of intention, as
specified, to commence hydraulic fracturing
well stimulation . The bill would also prohibit any
hydraulic fracturing well stimulation operations
until written approval is given by the supervisor or district deputy
and would require the supervisor or district deputy to notify the
operator in writing of the approval or denial of the
notice within 10 30 working days after
the notice is submitted. The bill would require the supervisor, upon
approval of the notice, to immediately notify the appropriate
regional water quality control board. The bill would provide that if
hydraulic fracturing well stimulation
has not commenced within one year of receipt of the notice,
that the notice shall be deemed canceled. Because a
violation of these provisions would create a new crime, this bill
would impose a state-mandated local program.
(2) Under existing law, the supervisor is required to supervise
the drilling, operation, maintenance, and abandonment of wells so as
to permit the owners or operators of these wells to utilize all
methods and practices known to the oil industry for the purpose of
increasing the recovery of underground hydrocarbons. Existing law
provides that the grant in an oil and gas lease or contract to a
lessee or operator of the right or power to explore for and remove
all hydrocarbons from any lands in the state, absent a contrary
provision, is deemed to allow the lessee or contractor, or the lessee'
s or contractor's successors or assigns, to do what a prudent
operator using reasonable diligence would do, having in mind the best
interests of the lessor, lessee, and the state in producing and
removing hydrocarbons, including, but not limited to, the injection
of air, gas, water, or other fluids into the productive strata, the
application of pressure heat or other means for the reduction of
viscosity of the hydrocarbons, the supplying of additional motive
force, or the creating of enlarged or new channels for the
underground movement of hydrocarbons into production wells, when
these methods or processes employed have been approved by the
supervisor. Existing law also provides that there
is no legal duty upon the lessee or contractor, or the lessee's or
contractor's successors or assigns, to conduct these operations.
This bill would repeal these provisions.
instead require the supervisor to supervise the drilling,
stimulation, well completion techniques, rework, operation,
maintenance, and abandonment of wells so as to permit the owners or
operators of the wells to utilize all safe methods and practices, as
specified, and would authorize the supervisor to allow these owners
and operators to utilize all methods and practices to increase the
ultimate recovery of underground hydrocarbons if the supervisor makes
certain determinations.
(3) Existing law requires the operator, before commencing the work
of drilling an oil and gas well, to file a written notice of
intention to commence drilling with the State Oil and Gas
Supervisor supervisor or district deputy.
Existing law prohibits any drilling until either approval
is given by the supervisor or district deputy and provides
that or 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.
Existing law also provides that if operations have not commenced
within one year of approval of the notice, the notice is deemed
canceled.
This bill would delete the provision stating that the failure
by the supervisor or district deputy to provide a written
response to the notice within 10 working days is considered an
approval of the notice, and instead would require the
supervisor or district deputy to notify the operator in writing of
the approval or denial of the notice within 10
30 working days after the notice is received and deem
the notice canceled if operations have not commenced within one year
of approval of the notice .
(4) Existing law imposes various fees on operators of oil and gas
wells.
This bill would authorize DOGGR require
the division to establish a reasonable fee , as specified,
to be paid by the owner or operator for the costs incurred by
the department for the regulation of hydraulic fracturing operations.
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. Section 3106 of the Public Resources Code is amended to
read:
3106. (a) The supervisor shall so supervise the drilling,
stimulation, well completion techniques, rework, operation,
maintenance, and abandonment of wells and the operation, maintenance,
and removal or abandonment of tanks and facilities attendant to oil
and gas production, including pipelines not subject to regulation
pursuant to Chapter 5.5 (commencing with Section 51010) of Part 1 of
Division 1 of Title 5 of the Government Code that are within an oil
and gas field, field. This shall
be done in a manner so as to prevent, as far as possible,
damage to life, health, property, and natural resources; damage to
underground oil and gas deposits from infiltrating water and other
causes; loss of oil, gas, or reservoir energy ,
; and damage to underground and surface waters
suitable for irrigation or domestic purposes by the
infiltration of, or the addition of, detrimental substances.
(b) The supervisor shall also supervise the drilling, stimulation,
well completion techniques, rework, operation, maintenance, and
abandonment of wells so as to permit the owners or operators of the
wells to utilize all safe methods and practices. The supervisor may
allow owners or operators of the wells to utilize all methods and
practices to increase the ultimate recovery of underground
hydrocarbons if the supervisor determines that those methods and
practices are consistent with this division and used in a safe
manner.
(b)
(c) The supervisor may require an operator to implement
a monitoring program, designed to detect releases to the soil and
water, including both groundwater and surface water, for aboveground
oil production tanks and facilities.
(c) To best meet oil and gas needs in this state, the supervisor
shall administer this division so as to encourage the wise
development of oil and gas resources.
SEC. 2. 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 written approval is given by the supervisor
or the district deputy. The supervisor or district deputy shall
notify the operator of the approval or denial of the notice within
10 30 working days after the notice is
received. If operations have not commenced within one year of
receipt approval 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 has failed 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 has failed 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 to pay any charges assessed under Article 7
(commencing with Section 3400), the supervisor may deny approval to
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. 3. Section 3203.5 is added to the Public Resources Code, to
read:
3203.5. (a) For purposes of this division, "hydraulic
the following definitions apply:
(1) "Acid stimulation" means a treatment that uses various
formulations of acids to stimulate the extraction of hydrocarbons
from carbonate or sandstone formations. This includes, but is not
limited to, fracture acid stimulation and matrix acid stimulation.
(2) "Hydraulic fracturing" means
a treatment used in stimulating a well that involves the pressurized
injection of hydraulic fracturing fluid and proppants 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.
(3) "Well stimulation" means any well intervention technique,
including, but not limited to, hydraulic fracturing and acid
stimulation, to improve the permeability of the near-wellbore
formation, thereby enhancing the productivity of a well.
(b) The operator of a well approved under Section 3203 ,
shall file with the supervisor or the district deputy a
written notice of intention to commence hydraulic fracturing
well stimulation operations at least 30
working days prior to any hydraulic fracturing
well stimulation operations. 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, and shall detail all well stimulation techniques,
methods, and practices expected to be performed on the well, and
include sufficient information as to demonstrate that the
use of hydraulic fracturing well
stimulation will not present a threat to public health and
safety. The supervisor may require other pertinent information to
supplement the notice. Hydraulic fracturing
Well stimulation operations shall not commence until written
approval is given by the supervisor or district deputy.
(c) If hydraulic fracturing well
stimulation has not commenced within one year of receipt of the
notice, the notice shall be deemed canceled.
(d) The supervisor shall have 10 30
working days to notify the operator in writing of
approval or denial of the notice. In providing the duties to the
public as required under subdivision (a) of Section 3106, the
supervisor shall approve a notice under this section only if the
supervisor finds that the operator has provided sufficient
information as to demonstrate that the use of
hydraulic fracturing well stimulation will not
present a threat to public health and safety.
(e) Upon approval of a notice under this section, the supervisor
shall immediately notify the appropriate regional water quality
control board.
(f) The department may establish, by regulation,
In addition to any charges pursuant to
Article 7 (commencing with Section 3400), the department shall impose
a reasonable and appropriate fee for each notice received
pursuant to subdivision (b) to be paid by the owner or
operator for the costs incurred by the department in implementing
this section.
SEC. 4. 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.