BILL ANALYSIS Ó
AB 2718
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Date of Hearing: April 28, 2014
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2718 (Bloom) - As Amended: March 28, 2014
SUBJECT : Oil and gas: well stimulation treatment:
notification
SUMMARY : Requires the Division of Oil, Gas, and Geothermal
Resources (DOGGR) to develop a form that a third party notifier
must use when providing well stimulation treatment notices to
the surrounding community. Requires the form to be prepared in
English and Spanish and designed to be easily understood by a
layperson not trained in oil and gas development.
EXISTING LAW :
1)Establishes, pursuant to SB 4 (Pavley, Chapter 313, Statutes
of 2013), a comprehensive, multi-agency regulatory program for
oil and gas well stimulation treatments (e.g., hydraulic
fracturing, acid matrix stimulation). Makes DOGGR the lead
agency for the multi-agency regulatory program, which
includes, among other things, the following with regard to
well stimulation: a statewide environmental impact report, an
independent scientific study, a permitting process,
groundwater monitoring requirements, and public notification
and disclosure.
2)Before a well stimulation treatment may commence, requires
that a notice be provided to every tenant and property owner
whose property line location is within a 1,500 foot radius of
the wellhead or within 500 feet from the horizontal projection
of all subsurface portions of the designated well. Requires
the well stimulation treatment notice to contain a copy of the
approved well stimulation treatment permit and information on
how to request water sampling and testing prior and subsequent
to well stimulation treatment. Requires the oil and gas
operator to contract with an independent entity (third party
notifier) to provide the well stimulation treatment notice.
Authorizes DOGGR to review and audit the performance of the
third party notifier. Allows well stimulation treatment to
commence 30 days after the notice is provided to the
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appropriate surface property tenants and owners.
3)Allows a property owner who receives a well stimulation
treatment notice to request water quality sampling and testing
from a qualified contractor designated by the regional water
quality control board. Requires the well owner or operator to
pay for this sampling and testing.
THIS BILL :
1)Requires DOGGR to develop a form that the third party notifier
must use when providing the well stimulation treatment notice.
Requires the form to be prepared in English and Spanish and
designed to be easily understood by a layperson not trained in
oil and gas development.
2)Requires the third party notifier to provide DOGGR with a copy
of the well stimulation treatment notice that was provided to
surface property tenants and owner.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background . In 2013, nine bills were introduced that would
have regulated, limited, or banned fracking in California. Of
these bills, only one-SB 4-passed the Legislature and was
signed into law by the Governor. SB 4 provides for the
comprehensive regulation of well stimulation
treatments-including both hydraulic fracturing and
acidization. SB 4 requires that DOGGR promulgate emergency
interim and permanent regulations for well stimulation
treatments. Among other additional provisions, SB 4 requires
an oil and gas operator who plans to perform well stimulation
treatments to contract with a third party notifier to give
pre-treatment notice to tenants and property owners of the
surrounding area.
2)Well Stimulation Treatment Notices . The well stimulation
treatment notices are a significant part of SB 4's attempt to
protect the public's health, safety, and welfare. Well
stimulation has been thrust to the forefront of the public's
consciousness in large part due to the 2011 Academy Award
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nominated documentary Gasland, which scrutinized hydraulic
fracturing practices in other areas of the country. There
have also been several lawsuits, news reports, and
governmental reports regarding the risks of hydraulic
fracturing. In California, several communities where unaware
until recently that hydraulic fracturing was occurring in or
near their neighborhoods. There was significant pressure and
demand that oil and gas well operators provide more
notification and disclosure of well stimulation treatments so
the public could respond and protect itself from any possible
health and environmental harm.
SB 4's notification requirements is one of the state's
mechanisms to ensure that the public is no longer kept in the
dark on well stimulation treatments occurring in their
community. SB 4 protects the integrity of these notices by
involving a third party notifier. SB 4 also gives the public
the ability to request water sampling (at no cost) to
determine if the well stimulation operations have had any
effect on drinking water and the surrounding environment.
Several of these well stimulation treatment notices have been
given to landowners and tenants since the passage of SB 4.
One notice obtained by the author and committee staff seems to
be thorough and concise; however, there are a few potential
issues with the cover form (i.e., the form that is required to
accompany the permit and provide information on how to obtain
water sampling) that can easily be fixed by legislative
guidance. This bill proposes to make these fixes.
First, there is no uniform template that a third party
notifier can use to ensure that the notice cover form is
adequate. This bill would require DOGGR to develop such a
template.
Second, there is no requirement that the well stimulation
treatment cover form be in any other language besides English.
According to the census, in Los Angeles (where well
stimulation occurs in areas such as Baldwin Hills), there are
2,118,000 residents who speak a language other than English at
home, with 1,541,000 who speak Spanish, and 1,083,000 who
"speak English less than 'very well.'" Thus, it seems
appropriate that the well stimulation notice be provided in
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Spanish as well as English, which this bill will require.
Third, "well stimulation" is an industry term of art. The
public is well aware of the term "hydraulic fracturing" or
"fracking," but may not necessarily know that the term "well
stimulation" includes hydraulic fracturing. Moreover, other
well stimulation treatment techniques that may be checked off
on the permit, such as acid matrix stimulation, are similar to
hydraulic fracturing; however, the public may not understand
this without a deeper understanding of oil and gas production
jargon. This bill requires the cover form to be designed so
the notice can be easily understood by a layperson not trained
in oil and gas development.
Fourth, there is no requirement that the third party notifier
send a copy of a notice to DOGGR so the agency can monitor
whether the notice is adequate. SB 4 does allow DOGGR to
review and audit the performance of the third party notifiers,
but it would also seem appropriate to have DOGGR keep an
ongoing record of notices to better monitor the process.
REGISTERED SUPPORT / OPPOSITION :
Support
California Coastal Protection Network
Clean Water Action
Coastal Environmental Rights Foundation
Earthworks
Environmental Working Group
Los Padres Forest Watch
The Wildlands Conservancy
Opposition
None on file
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
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