BILL ANALYSIS Ó
AB 2718
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2718 (Bloom) - As Amended: March 28, 2014
Policy Committee: Natural
ResourcesVote:8-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill modifies the state's fracking and well stimulation
laws. Specifically, this bill:
1)Requires the Division of Oil, Gas, and Geothermal Resources
(DOGGR) to develop a form to be used by third parties to
provide well stimulation treatment notices to the surrounding
community.
2)Requires the form to be prepared in both English and Spanish
and designed to be easily understood by a layperson not
trained in oil and gas development.
3)Requires any well stimulation treatment notice provided by
third parties to property tenants and owners to also be
provided to DOGGR.
FISCAL EFFECT
Minor, absorbable costs to DOGG (Oil, Gas, and Geothermal
Administrative fund).
COMMENTS
1)Rationale. California's well stimulation notification
requirements are designed to ensure the public is aware of
well stimulation treatments occurring in their communities.
The use of third party notifiers ensures the integrity of the
process. However, 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
AB 2718
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template.
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. This bill requires
well stimulation notices to be provided in Spanish as well as
English.
2)Background. SB 4 (Pavley, Chapter 313, Statutes of 2013), is
a comprehensive, multi-agency regulatory program for oil and
gas well stimulation treatments (e.g., hydraulic fracturing,
acid matrix stimulation). DOGGR is the lead agency for the
regulatory program, which includes a statewide environmental
impact report, an independent scientific study, a permitting
process, groundwater monitoring requirements, and public
notification and disclosure.
Before well stimulation treatment activities, a notice must be
provided to every tenant and property owner 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. The notice must contain a copy of the
approved permit and information on how to request water
sampling and testing prior and subsequent to well stimulation
treatment.
Oil and gas operators are required to contract with
independent entities (third party notifiers) to provide the
well stimulation treatment notice. A property owner who
receives a well stimulation treatment notice may request water
quality sampling and testing from a qualified contractor
designated by the regional water quality control board to be
paid for by the
well owner or operator .
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081