BILL ANALYSIS �
AB 288
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ASSEMBLY THIRD READING
AB 288 (Levine)
As Amended May 28, 2013
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 12-0
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|Ayes:|Chesbro, Garcia, |Ayes:|Gatto, Bocanegra, |
| |Muratsuchi, Skinner, | |Bradford, |
| |Stone, Williams | |Ian Calderon, Campos, |
| | | |Eggman, Gomez, Hall, |
| | | |Ammiano, Pan, Quirk, |
| | | |Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Grove, Bigelow, Patterson | | |
| | | | |
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SUMMARY : Amends the Division of Oil, Gas, and Geothermal Resources'
(DOGGR) duties and the state's general policy related to oil and gas
drilling to focus on safe methods and practices. Specifically, this
bill:
1)Requires DOGGR to supervise the drilling, operation, maintenance,
and abandonment of wells so as to permit the owners or operators
of a well to utilize all safe methods and practices.
2)Authorizes DOGGR to allow owners or operators of the wells to
utilize all methods and practices to increase the ultimate
recovery of underground hydrocarbons if DOGGR determines that
those methods and practices are consistent with the law and used
in a safe manner.
3)Deletes the requirement that DOGGR supervise the drilling,
operation, maintenance, and abandonment of wells so as to permit
the owners or operators of the wells to utilize all methods and
practices known to the oil industry for the purpose of increasing
the ultimate recovery of underground hydrocarbons and which, in
the opinion of DOGGR, are suitable for this purpose in each
proposed case.
4)Repeals the declaration of state policy that to further the
elimination of waste by increasing the recovery of underground
AB 288
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hydrocarbons, a lease or contract for the exploration and
extraction of hydrocarbons is deemed to allow, unless otherwise
stated, the lessee or contractor 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 DOGGR.
5)Deletes the requirement that DOGGR administer its authority so as
to encourage the wise development of oil and gas resources to best
meet oil and gas needs in this state.
EXISTING LAW :
1)Requires DOGGR to do all of the following:
a) Supervise the drilling, 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 certain pipelines that are within
an oil and gas field, 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) Supervise the drilling, operation, maintenance, and
abandonment of wells so as to permit the owners or operators of
the wells to utilize all methods and practices known to the oil
industry for the purpose of increasing the ultimate recovery of
underground hydrocarbons and which, in the opinion of DOGGR,
are suitable for this purpose in each proposed case.
AB 288
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2)Declares as a policy of the state that to further the elimination
of waste by increasing the recovery of underground hydrocarbons, a
lease or contract for the exploration and extraction of
hydrocarbons is deemed to allow, unless otherwise stated, the
lessee or contractor 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 DOGGR.
3)Requires, to best meet oil and gas needs in this state, DOGGR to
administer its authority so as to encourage the wise development
of oil and gas resources.
4)Requires the operator of any well, before commencing the work of
drilling the well, to file with DOGGR a written notice of
intention to commence drilling. Drilling shall not commence until
approval is given by DOGGR. If DOGGR fails to give the operator
written response to the notice within 10 working days from the
date of receipt, that failure shall be considered as an approval
of the notice.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
negligible state costs.
COMMENTS : The intent of this bill is to modernize DOGGR's statute
by eliminating antiquated provisions established in 1961 that some
have argued codifies the "drill, baby, drill" philosophy as the
state's oil and gas policy. This bill replaces these provisions
with language that focuses on requiring safe methods and practices
in oil and gas development.
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN: 0001070
AB 288
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