Amended in Senate April 24, 2013

Amended in Senate March 11, 2013

Senate BillNo. 4


Introduced by Senator Pavley

(begin deleteCoauthor: Senator end deletebegin insertCoauthors: Senators Deend insertbegin insert León, Leno, and end insertMonning)

begin insert

(Coauthor: Assembly Member Stone)

end insert

December 3, 2012


An act to amend Sections 3213, 3215, 3236.5, and 3401 of, and to add Article 3 (commencing with Section 3150) to Chapter 1 of Division 3 of, the Public Resources Code, relating to oil and gas.

LEGISLATIVE COUNSEL’S DIGEST

SB 4, as amended, Pavley. Oil and gas: hydraulic fracturing.

(1) Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservationbegin insert, or the division,end insert regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisorbegin insert, or supervisor,end insert supervises 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 safety and environmental damage. Existing law requires an operator of a well, before commencing the work of drilling the well, to obtain approval from thebegin delete State Oil and Gas Supervisor or aend deletebegin insert supervisor orend insert district deputy. Existing law requires the operator of a well to keep, or cause to be kept, a careful and accurate log, core record, and history of the drilling of the well. Within 60 days after the date of cessation of drilling, rework, or abandonment operations, the owner or operator is required to file with the district deputy certain information, including the history of work performed. 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 would define, among other things, the terms hydraulic fracturing and hydraulic fracturing fluid. The bill would require the Secretary of the Natural Resources Agency, on or before January 1, 2015, to cause to be conducted an independent scientific study on hydraulic fracturing treatments. The bill would require an operator of a well to record and include all data on hydraulic fracturing treatments, as specified. The bill would require the division, on or before January 1, 2015, to adopt rules and regulations specific to hydraulic fracturing, including governing the construction of wells and well casings and full disclosure of the composition and disposition of hydraulic fracturing. The bill would require an operator to apply for a permit, as specified, with the supervisor or district deputy, prior to performing a hydraulic fracturing treatment of a well and would prohibit the operator from either conducting a new hydraulic fracturing treatment or repeating a hydraulic fracturing treatment without a valid, approved permit. The bill would prohibit the approval of a permit that presents an unreasonable risk or is incomplete. The bill would require the division, within 5 business days of issuing a permit to commence hydraulic fracturing, to provide a copy to specific boards and entities and to post the permit on a publicly accessible portion of its Internet Web site. The bill would require the hydraulic fracturing treatment to be completed within one year from the date that a permit is issued. The bill would require the division to perform random periodic spot check investigations during hydraulic fracturing treatments, as specified. The bill would prohibit the supervisor or district deputy, as of January 1, 2015, from issuing a permit to commence a hydraulic fracturing treatment, as specified, until the study is completed and peer reviewed by independent scientific experts. The bill would require the operator to provide a copy of the approved hydraulic fracturing treatment permit to specified property owners at least 30 days prior to commencing a hydraulic fracturing treatment. The bill would require the operator to provide notice to the division at least 72 hours prior to the actual start of the hydraulic fracturing treatment in order for the division to witness the hydraulic fracturing treatment. The bill would require the supplier, as defined, of the hydraulic fracturing treatment to provide to the operator, within 30 days following the conclusion of the hydraulic fracturing, certain information regarding the hydraulic fracturing fluid. The bill would require the operator, within 60 days of the cessation of hydraulic fracturing treatment, to post or cause to have posted on an Internet Web site accessible to the public specified information on the fracturing and fluid, as specified. The bill would provide that where the division shares jurisdiction over a well with a federal entity, the division’s rules and regulations govern the hydraulic fracturing treatment of a well. The bill would require a supplier claiming trade secret protection for the chemical composition of additives used in the hydraulic treatment to disclose the composition to the division, in conjunction with a hydraulic fracturing treatment permit application, but would, except as specified, prohibit those with access to the trade secret from disclosing it. Because a violation of this bill would create a new crime, it would impose a state-mandated local program.

(2) Under existing law, a person who violates certain statutes or regulations relating to oil and gas well operations is subject to a civil penalty not to exceed $25,000 for each violation.

This bill would make persons who violate specified provisions relating to hydraulic fracturing subject to a civil penalty of not less than $10,000 and not to exceed $25,000 per day per violation.

(3) Existing law imposes an annual charge upon each person operating or owning an interest in an oil or gas well in respect to the production of the well which charge is payable to the Treasurer for deposit into the Oil, Gas, and Geothermal Administrative Fund. Existing law further requires that specific moneys from charges levied, assessed, and collected upon the properties of every person operating or owning an interest in the production of a well to be used exclusively, upon appropriation, for the support and maintenance of the department charged with the supervision of oil and gas operations.

This bill would allow the moneys described above to be used for all costs associated with hydraulic fracturing including scientific studies required to evaluate the treatment, inspections, and any air and waterbegin delete monitoringend deletebegin insert quality sampling, monitoring,end insert and testing performed by public entities.

This bill would require the supervisor, on or before January 1, 2016, and annually thereafter, to transmit to the Legislature and make available publicly a comprehensive report on hydraulic fracturing in the exploration and production of oil and gas resources in the state.

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: yes.

The people of the State of California do enact as follows:

P4    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Hydraulic fracturing of oil and gas wells in combination
4with technological advances in oil and gas well drilling are spurring
5oil and gas extraction and exploration in California.

6(b) Insufficient information is available to fully assess the
7science of the practice of hydraulic fracturing in California
8including environmental, occupational, and public health hazards
9and risks.

10(c) Providing transparency and accountability to the public
11regarding hydraulic fracturing, associated emissions to the
12environment, and the handling, processing, and disposal of
13hydraulic fracturing and related wastes is of paramount concern.

14

SEC. 2.  

Article 3 (commencing with Section 3150) is added
15to Chapter 1 of Division 3 of the Public Resources Code, to read:

16 

17Article 3.  Hydraulic Fracturing
18

 

19

3150.  

“Additive” means a substance or combination of
20substances added to a base fluid for purposes of preparing a
21hydraulic fracturing fluid. An additive may, but is not required to,
22serve additional purposes beyond the transmission of hydraulic
23pressure to the geologic formation. An additive may be of any
24phase and includes proppants.

25

3151.  

“Base fluid” means the continuous phase fluid used in
26the makeup of a hydraulic fracturing fluid. The continuous phase
27fluid may include, but is not limited to, water, and may be a liquid
28or a hydrocarbon or nonhydrocarbon gas. A hydraulic fracturing
29treatment may use more than one base fluid.

30

3152.  

“Hydraulic fracturing” means a well stimulation or well
31completion treatment that involves the pressurized injection of
32hydraulic fracturing fluid and proppant into an underground
33geologic formation in order to fracture the formation, thereby
P5    1causing or enhancing, for the purposes of this division, the
2production of oil or gas from a well.

3

3153.  

“Hydraulic fracturing fluid” means a base fluid mixed
4with physical and chemical additives for the purpose of hydraulic
5fracturing. A hydraulic fracturing treatment may include more than
6one hydraulic fracturing fluid.

7

3154.  

“Proppants” means materials inserted or injected into
8the underground geologic formation that are intended to prevent
9fractures from closing.

10

3155.  

“Supplier” means an entity performing a hydraulic
11fracturing treatment or an entity supplying an additive or proppant
12directly to the operator for use in a hydraulic fracturing treatment.

13

3156.  

“Surface property owner” means the owner of real
14property as shown on the latest equalized assessment roll or, if
15more recent information than the information contained on the
16assessment roll is available, the owner of record according to the
17county assessor or tax collector.

18

3160.  

(a) On or before January 1, 2015, the Secretary of the
19Natural Resources Agency shall cause to be conducted an
20independent scientific study on hydraulic fracturing treatments.
21The scientific study shall evaluate the hazards and risks and
22potential hazards and risks that hydraulic fracturing treatments
23pose to natural resources and public, occupational, and
24environmental health and safety. The scientific study shall do all
25of the following:

26(1) Follow the well-established standard protocols of the
27scientific profession, including, but not limited to, the use of
28recognized experts, peer review, and publication.

29(2) Identify areas with existing and potential conventional and
30 unconventional oil and gas reserves where hydraulic fracturing
31treatments are likely to spur or enable oil and gas exploration and
32production.

33(3) Evaluate all aspects of hydraulic fracturing, including, but
34not limited to, the hydraulic fracturing treatment, additive and
35water transportation to and from the well site, mixing and handling
36of the hydraulic fracturing fluids and additives on site, wastewater
37and waste hydraulic fracturing fluid handling, treatment, and
38disposal.

39(4) Consider, at a minimum, atmospheric emissions, the potential
40degradation of air quality, potential water and surface
P6    1contamination, induced seismicity, and the ultimate disposition,
2transport, transformation, and toxicology of hydraulic fracturing
3fluids, and waste hydraulic fracturing fluids in the environment.

4(5) Include a hazard assessment and risk analysis addressing
5occupational and environmental exposures to hydraulic fracturing
6treatments and hydraulic fracturing treatment-related processes
7and the corresponding impacts on public health and safety with
8the participation of the Office of Environmental Health Hazard
9Assessment.

10(6) Clearly identify where additional information is necessary
11to inform and improve the analyses.

12(b) (1) On or before January 1, 2015, the division shall adopt
13rules and regulations specific to hydraulic fracturing. The rules
14and regulations shall include, but are not limited to, revisions, as
15needed, to the rules and regulations governing construction of
16wells and well casings to ensure integrity of wells, well casings,
17and the geologic and hydrologic isolation of the oil and gas
18formation during and following hydraulic fracturing, and full
19disclosure of the composition and disposition of hydraulic
20fracturing fluids and waste hydraulic fracturing fluids.

21(2) Full disclosure of the composition and disposition of
22hydraulic fracturing fluids shall, at a minimum, include:

23(A) The date of the hydraulic fracturing treatment.

24(B) A complete list of the names, Chemical Abstract Service
25(CAS) numbers, and maximum concentration, in percent by mass,
26of each and every chemical constituent of the hydraulic fracturing
27fluids used. If a CAS number does not exist for a chemical
28constituent, the well owner or operator may provide another unique
29identifier, if available. Chemical information claimed as a trade
30secret, pursuant to subdivision (j), shall be identified as such and
31reported as described in subdivision (j).

32(C) The trade name, the supplier, and a brief description of the
33intended purpose of each additive contained in the hydraulic
34fracturing fluid.

35(D) The total volume of base fluid used during the hydraulic
36fracturing treatment, and the identification of whether the base
37fluid is water suitable for irrigation or domestic purposes, water
38not suitable for irrigation or domestic purposes, or a fluid other
39than water.

P7    1(E) The source, volume, and specific composition and
2disposition of all water, including, but not limited to, all water
3used as base fluid during the hydraulic fracturing treatment and
4recovered from the well following the hydraulic fracturing
5treatment that is not otherwise reported as produced water pursuant
6to Section 3227.

7(F) The specific composition and disposition of all hydraulic
8 fracturing fluids, including waste fluids, other than water.

9(G) Any radiological components or tracers injected into the
10well as part of, or in order to evaluate, the hydraulic fracturing
11treatment, a description of the recovery method, if any, for those
12components or tracers, the recovery rate, and specific disposal
13information for recovered components or tracers.

14(H) The radioactivity of the recovered hydraulic fracturing
15fluids.

16(I) The location of the portion of the well subject to the hydraulic
17fracturing treatment and the extent of the fracturing surrounding
18the well induced by the treatment.

19(3) The rules and regulations shall be revised to incorporate the
20results of the independent scientific study conducted pursuant to
21subdivision (a).

begin insert

22(c) (1) The rules and regulations adopted pursuant to paragraph
23(1) of subdivision (b) shall delineate the existing statutory authority
24and regulatory responsibility relating to hydraulic fracturing of
25the Department of Toxic Substances Control, the State Air
26Resources Board, any local air districts, the State Water Resources
27Control Board, any regional water quality control board, and
28other public entities. The division shall additionally delineate how
29the respective authority, responsibility, and notification and
30reporting requirements associated with hydraulic fracturing
31treatments and hydraulic fracturing treatment-related activities
32is divided among each public entity.

end insert
begin delete

33(c)  (1) On

end delete

34begin insert(2)end insertbegin insertend insertbegin insertOnend insert or before January 1, 2015, the division shall enter into
35formal agreements with the Department of Toxic Substances
36Control, the State Air Resources Board, any local air districts where
37hydraulic fracturing treatments may occur, the State Water
38Resources Control Board, and any regional water quality control
39board where hydraulic fracturing treatments may occur, clearly
40delineating respective authority, responsibility, and notification
P8    1and reporting requirements associated with hydraulic fracturing
2treatments and hydraulic fracturing treatment-related activities in
3order to promote regulatory transparency and accountability.

begin delete

4(2)

end delete

5begin insert(3)end insert The agreements under paragraphbegin delete (1)end deletebegin insert (2)end insert shallbegin delete include
6provisionsend delete
begin insert specify the appropriate public entity responsible end insert for
7air and water quality monitoring,begin insert includeend insert trade secret handling
8protocols, if necessary, and provide for ready public access to
9information related to hydraulic fracturing treatments and related
10activities.begin delete The agreements shall be posted on the publicly accessible
11Internet Web site of each entity.end delete

begin insert

12(4) Any party to an agreement under paragraph (2) shall revise
13its regulations, if necessary, to reflect the agreement.

end insert

14(d) (1) Notwithstanding any other law or regulation, prior to
15performing a hydraulic fracturing treatment on a well, the operator
16shall apply for a permit to perform a hydraulic fracturing treatment
17with the supervisor or district deputy. The permit application shall
18contain the pertinent data the supervisor requires on printed forms
19supplied by the division or on other forms acceptable to the
20supervisor. The information provided in the permit application
21shall include, but is not limited to, the following:

22(A) The well identification number and location.

23(B) The time period during which the hydraulic fracturing
24treatment is planned to occur.

25(C) An estimate of the amount of water to be used in the
26treatment and its source.

27(D) A complete list of the names, Chemical Abstract Service
28(CAS) numbers, and estimated concentrations, in percent by mass,
29of each and every chemical constituent of the hydraulic fracturing
30fluids planned to be used in the treatment. If a CAS number does
31not exist for a chemical constituent, the well owner or operator
32may provide another unique identifier, if available. Chemical
33information claimed as a trade secret, pursuant to subdivision (j),
34shall be identified as such and reported as described in subdivision
35(j).

36(E) The planned location of the hydraulic fracturing treatment
37on the well bore and the estimated length, height, and direction of
38the induced fractures.

P9    1(2) (A) The supervisor or district deputy shall review the
2hydraulic fracturing treatment permit application and may approve
3the permit if the application is complete.

4(B) A hydraulic fracturing treatment or repeat hydraulic
5fracturing treatment shall not be performed on any well without a
6valid permit that the supervisor or district deputy has approved.

7(C) A permit describing a hydraulic fracturing treatment that
8presents unreasonable risk or is incomplete shall not be approved.

9(3) The hydraulic fracturing treatment shall be completed within
10one year of the issuance of the permit.

11(4) Within five business days of issuing a permit to perform a
12hydraulic fracturing treatment, the division shall provide a copy
13of the permit to the appropriate regional water quality control board
14or boards and to the local planning entity where the well, including
15its subsurface portion, is located. The division shall post the permit
16on the publicly accessible portion of its Internet Web site.

17(5) At least 30 calendar days prior to commencing a hydraulic
18fracturing treatment, the operator shall provide a copy of the
19approved hydraulic fracturing treatment permit to every surface
20property owner or authorized agent of that owner whose property
21line location is one of the following:

22(A) Within a 1,500 foot radius of the wellhead.

23(B) Within 500 feet from the horizontal projection of all
24subsurface portions of the designated well to the surface.

25(6) begin insert(A)end insertbegin insertend insertA property owner notified pursuant to paragraph (5)
26may request the regional water quality control board to perform
27water quality sampling and testing on any water well suitable for
28drinking or irrigation purposes and on any surface water suitable
29for drinking or irrigation purposes as follows:

begin delete

30(A)

end delete

31begin insert(i)end insert Baseline measurements prior to the commencement of the
32hydraulic fracturing treatment.

begin delete

33(B)

end delete

34begin insert(ii)end insert Followup measurements after the hydraulic fracturing
35treatment on the same schedule as the pressure testing of the well
36casing of the hydraulically-fractured well.

begin insert

37(B) The regional water quality control board may contract with
38an independent third party that adheres to board-specified
39standards and protocols to perform the water sampling and testing.

end insert

P10   1(7) The regional water quality control board shall retain and
2archive sufficient sample collected pursuant to paragraph (6) to
3permit a reasonable number of additional analyses.

4(8) The operator shall provide the division with a list of the
5entities and property owners notified pursuant to paragraphs (4)
6and (5).

7(9) The operator shall provide notice to the division at least 72
8hours prior to the actual start of the hydraulic fracturing treatment
9in order for the division to witness the treatment.

10(e) On and after January 1, 2015, the supervisor or district
11deputy shall not issue a hydraulic fracturing treatment permit for
12any well until the independent scientific study in subdivision (a)
13is completed and peer reviewed by independent scientific experts.

14(f) If a hydraulic fracturing treatment is performed on a well, a
15supplier that performs any part of hydraulic fracturing or provides
16additives directly to the operator for a hydraulic fracturing
17treatment shall furnish the operator with information needed for
18the operator to comply with subdivision (g). If a supplier claims
19trade secret protection pursuant to subdivision (j), the supplier
20shall notify the operator and provide to the operator substitute
21information, as described in subdivision (j), suitable for public
22disclosure. This information shall be provided as soon as possible
23but no later than 30 days following the conclusion of the hydraulic
24fracturing treatment.

25(g) (1) Within 60 days following cessation of a hydraulic
26fracturing treatment on a well, the operator shall post or cause to
27have posted to an Internet Web site designated or maintained by
28the division and accessible to the public, all of the hydraulic
29fracturing fluid composition and disposition information required
30to be collected pursuant to rules and regulations adopted under
31subdivision (b), including well identification number and location.

32(2) The division’s Internet Web site shall be operational by
33January 1, 2016, and the division may direct reporting to an
34alternative Internet Web site developed by the Ground Water
35Protection Council and the Interstate Oil and Gas Compact
36Commission in the interim. The reported information shall be
37organized on the division’s Internet Web site in a format, such as
38a spreadsheet, that allows the public to easily search and aggregate,
39to the extent practicable, each type of information required to be
P11   1collected pursuant to subdivision (b) using search functions on
2that Internet Web site.

3(h) The operator is responsible for compliance with this section.

4(i) (1) All geologic features within a distance reflecting an
5appropriate safety factor of the fracture zone and having the
6potential to either limit or facilitate the migration of fluids outside
7of the fracture zone, shall be identified and added to the well
8history. Geologic features include, but are not limited to, seismic
9faults.

10(2) For the purposes of this section, the “fracture zone” is
11defined as the volume surrounding the well bore where fractures
12were created or enhanced by the hydraulic fracturing treatment.
13The safety factor shall be at least five and may vary depending
14upon geologic knowledge.

15(j) (1) The supplier may claim trade secret protection for the
16chemical composition of additives pursuant to Section 1060 of the
17Evidence Code, or the Uniform Trade Secrets Act (Title 5
18(commencing with Section 3426) of Part 1 of Division 4 of the
19Civil Code).

20(2) If a supplier believes that information regarding a chemical
21constituent of a hydraulic fracturing fluid is a trade secret, the
22supplier shall nevertheless disclose the information to the division
23in conjunction with a hydraulic fracturing treatment permit
24application, if not previously disclosed, within 30 days following
25cessation of hydraulic fracturing on a well, and shall notify the
26division in writing of that belief.

27(3) The supplier is not required to disclose trade secret
28information to the operator.

29(4) This subdivision does not permit a supplier to refuse to
30disclose the information required pursuant to this section to the
31division.

32(5) To comply with the public disclosure requirements of this
33section, the supplier shall indicate where trade secret information
34has been withheld and the specific name of a chemical constituent
35shall be replaced with the chemical family name or similar
36descriptor associated with the trade secret chemical information.

37(6) Except as provided in subparagraph (B) of paragraph (8),
38the division shall protect from disclosure any trade secret
39designated as such by the supplier, if that trade secret is not a public
40record.

P12   1(7) The supplier shall notify the division in writing within 30
2days of any changes to information provided to the division to
3support a trade secret claim.

4(8) Upon receipt of a request for the release of information to
5the public, which includes information the supplier has notified
6the division is a trade secret and is not a public record, the
7following procedure applies:

8(A) The division shall notify the supplier of the request in
9writing by certified mail, return receipt requested.

10(B) The division shall release the information to the public, but
11not earlier than 60 days after the date of mailing the notice of the
12request for information, unless, prior to the expiration of the 60-day
13period, the supplier obtains an action in an appropriate court for a
14declaratory judgment that the information is subject to protection
15or for a preliminary injunction prohibiting disclosure of the
16information to the public and provides notice to the division of
17that action.

18(9) (A) Except as provided in subparagraph (B) of paragraph
19(8), trade secret information is not a public record and shall not be
20disclosed to anyone except to an officer or employee of the
21division, the state, local air districts, or the United States, in
22connection with the official duties of that officer or employee, to
23a health professional, under any law for the protection of health,
24or to contractors with the division or the state and its employees
25if, in the opinion of the division, disclosure is necessary and
26required for the satisfactory performance of a contract, for
27performance of work, or to protect health and safety.

28(B) A health professional may share trade secret information
29with other persons as may be professionally necessary, including,
30but not limited to, the patient and other health professionals.
31Confidentiality of the trade secret information shall be maintained.
32The holder of the trade secret may request a confidentiality
33agreement consistent with the requirements of this subdivision to
34whom this information is disclosed as soon as circumstances
35permit. If necessary, a procedure for timely disclosure by the
36division in the event of an emergency shall be identified.

37(k) This section does not apply to routine pressure tests to
38monitor the integrity of wells and well casings.

39(l) A well granted confidential status pursuant to Section 3234
40shall comply with this section, with the exception of the disclosure
P13   1of hydraulic fracturing fluids pursuant to subdivision (g) which
2shall not be required until the confidential status of the well ceases.

3(m) The division shall perform random periodic spot check
4investigations to ensure that the information provided on hydraulic
5fracturing treatments is accurately reported, including that the
6estimates provided prior to the commencement of the hydraulic
7fracturing treatment are reasonably consistent with the well history.

8(n) Where the division shares jurisdiction over a well or the
9hydraulic fracturing treatment on a well with a federal entity, the
10division’s rules and regulations shall govern the hydraulic
11fracturing treatment of the well.

12

SEC. 3.  

Section 3213 of the Public Resources Code is amended
13to read:

14

3213.  

The history shall show the location and amount of
15sidetracked casings, tools, or other material, the depth and quantity
16of cement in cement plugs, the shots of dynamite or other
17explosives, and the results of production and other tests during
18drilling operations. All data on hydraulic fracturing treatments
19pursuant to Section 3160 shall be recorded in the history.

20

SEC. 4.  

Section 3215 of the Public Resources Code is amended
21to read:

22

3215.  

(a) Within 60 days after the date of cessation of drilling,
23rework, hydraulic fracturing treatment, or abandonment operations,
24or the date of suspension of operations, the operator shall file with
25the district deputy, in a form approved by the supervisor, true
26copies of the log, core record, and history of work performed, and,
27if made, true and reproducible copies of all electrical, physical, or
28chemical logs, tests, or surveys. Upon a showing of hardship, the
29supervisor may extend the time within which to comply with this
30section for a period not to exceed 60 additional days.

31(b) The supervisor shall include information provided pursuant
32to subdivision (g) of Section 3160 on existing publicly accessible
33maps on the division’s Internet Web site, and make the information
34available such that hydraulic fracturing treatment and related
35information are associated with each specific well. If data is
36reported on an Internet Web site not maintained by the division
37pursuant to paragraph (2) of subdivision (g) of Section 3160, the
38division shall provide electronic links to that Internet Web site.
39The public shall be able to search and sort the hydraulic fracturing
40treatment and related information by at least the following criteria:

P14   1(1) Geographic area.

2(2) Additive.

3(3) Chemical constituent.

4(4) Chemical Abstract Service number.

5(5) Time period.

6(6) Operator.

7(c) Notwithstanding Section 10231.5 of the Government Code,
8on or before January 1, 2016, and annually thereafter, the
9supervisor shall, in compliance with Section 9795 of the
10Government Code, prepare and transmit to the Legislature a
11comprehensive report on hydraulic fracturing in the exploration
12and production of oil and gas resources in California. The report
13shall include aggregated data of all of the information required to
14be reported pursuant to Section 3160 reported by the district,
15county, and operator. The report also shall include relevant
16additional information, as necessary, including, but not limited to,
17all the following:

18(1) Aggregated data detailing the disposition of any produced
19water from wells that have undergone hydraulic fracturing
20treatments.

21(2) Aggregated data describing the formations where wells have
22received hydraulic fracturing treatments including the range of
23safety factors used and fracture zone lengths.

24(3) The number of emergency responses to a spill or release
25associated with a hydraulic fracturing treatment.

26(4) Aggregated data detailing the number of times trade secret
27information was not provided to the public, by county and by each
28company, in the preceding year.

29(5) Data detailing the loss of well and well casing integrity in
30the preceding year for wells that have undergone hydraulic
31fracturing treatment. For comparative purposes, data detailing the
32loss of well and well casing integrity in the preceding year for all
33wells shall also be provided. The cause of each well and well casing
34failure, if known, shall also be provided.

35(6) The number of spot check inspections conducted pursuant
36to subdivision (m) of Section 3160, including the number of
37inspections where the composition of hydraulic fracturing fluids
38were verified and the results of those inspections.

39(7) The number of hydraulic fracturing treatments witnessed
40by the division.

P15   1(8) The number of enforcement actions associated with hydraulic
2fracturing treatments, including, but not limited to, notices of
3deficiency, notices of violation, civil or criminal enforcement
4actions, and any penalties assessed.

5(d) The report shall be made publicly available and an electronic
6version shall be available on the division’s Internet Web site.

7

SEC. 5.  

Section 3236.5 of the Public Resources Code is
8amended to read:

9

3236.5.  

(a) A person who violates this chapter or a regulation
10implementing this chapter is subject to a civil penalty not to exceed
11twenty-five thousand dollars ($25,000) for each violation. A person
12who commits a violation of Article 3 (commencing with Section
133150) is subject to a civil penalty of not less than ten thousand
14dollars ($10,000) and not to exceed twenty-five thousand dollars
15($25,000) per day per violation. An act of God and an act of
16vandalism beyond the reasonable control of the operator shall not
17be considered a violation. The civil penalty shall be imposed by
18an order of the supervisor pursuant to Section 3225 upon a
19determination that a violation has been committed by the person
20charged. The imposition of a civil penalty under this section shall
21be in addition to any other penalty provided by law for the
22violation. When establishing the amount of the civil penalty
23pursuant to this section, the supervisor shall consider, in addition
24to other relevant circumstances, all of the following:

25(1) The extent of harm caused by the violation.

26(2) The persistence of the violation.

27(3) The pervasiveness of the violation.

28(4) The number of prior violations by the same violator.

29(b) An order of the supervisor imposing a civil penalty shall be
30reviewable pursuant to Article 6 (commencing with Section 3350).
31When the order of the supervisor has become final and the penalty
32has not been paid, the supervisor may apply to the appropriate
33superior court for an order directing payment of the civil penalty.
34The supervisor may also seek from the court an order directing
35that production from the well or use of the production facility that
36is the subject of the civil penalty order be discontinued until the
37violation has been remedied to the satisfaction of the supervisor
38and the civil penalty has been paid.

39(c) Any amount collected under this section shall be deposited
40in the Oil, Gas, and Geothermal Administrative Fund.

P16   1

SEC. 6.  

Section 3401 of the Public Resources Code is amended
2to read:

3

3401.  

begin insert(a)end insertbegin insertend insert The proceeds of charges levied, assessed, and
4collected pursuant to this article upon the properties of every person
5operating or owning an interest in the production of a well shall
6be used exclusively for the support and maintenance of the
7department charged with the supervision of oil and gas operations.
8begin delete This shall include all costs associated with hydraulic fracturing
9treatments including scientific studies required to evaluate the
10treatment, inspections, and any air and water quality monitoring
11and testing performed by public entities.end delete

begin insert

12(b) Notwithstanding subdivision (a), the proceeds of charges
13levied, assessed, and collected pursuant to this article upon the
14properties of every person operating or owning an interest in the
15production of a well undergoing a hydraulic fracturing treatment,
16may be used by public entities, subject to appropriation by the
17Legislature, for all costs associated with hydraulic fracturing
18treatments including scientific studies required to evaluate the
19treatment, inspections, and any air and water quality sampling,
20monitoring, and testing performed by public entities.

end insert
21

SEC. 7.  

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution because
23the only costs that may be incurred by a local agency or school
24district will be incurred because this act creates a new crime or
25infraction, eliminates a crime or infraction, or changes the penalty
26for a crime or infraction, within the meaning of Section 17556 of
27the Government Code, or changes the definition of a crime within
28the meaning of Section 6 of Article XIII B of the California
29Constitution.



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