Amended in Senate May 7, 2013

Amended in Senate April 24, 2013

Amended in Senate March 11, 2013

Senate BillNo. 4


Introduced by Senator Pavley

(Coauthors: Senators De León, Leno, and Monning)

(Coauthor: Assembly Member Stone)

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 Conservation, or the division, regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisor, or supervisor, 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 the supervisor or 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,begin insert in consultation with the Department of Toxic Substances Control, the State Air Resources Board, the State Water Resources Control Board, the Department of Resources Recycling and Recovery, and any local air districts and regional water quality control boards in areas where hydraulic fracturing treatments may occur,end insert 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 water quality sampling, monitoring, 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
P5    1or a hydrocarbon or nonhydrocarbon gas. A hydraulic fracturing
2treatment may use more than one base fluid.

3

3152.  

“Hydraulic fracturing” means a well stimulation or well
4completion treatment that involves the pressurized injection of
5hydraulic fracturing fluid and proppant into an underground
6geologic formation in order to fracture the formation, thereby
7causing or enhancing, for the purposes of this division, the
8production of oil or gas from a well.

9

3153.  

“Hydraulic fracturing fluid” means a base fluid mixed
10with physical and chemical additives for the purpose of hydraulic
11fracturing. A hydraulic fracturing treatment may include more than
12one hydraulic fracturing fluid.

13

3154.  

“Proppants” means materials inserted or injected into
14the underground geologic formation that are intended to prevent
15fractures from closing.

16

3155.  

“Supplier” means an entity performing a hydraulic
17fracturing treatment or an entity supplying an additive or proppant
18directly to the operator for use in a hydraulic fracturing treatment.

19

3156.  

“Surface property owner” means the owner of real
20property as shown on the latest equalized assessment roll or, if
21more recent information than the information contained on the
22assessment roll is available, the owner of record according to the
23county assessor or tax collector.

24

3160.  

(a) On or before January 1, 2015, the Secretary of the
25Natural Resources Agency shall cause to be conducted an
26independent scientific study on hydraulic fracturing treatments.
27The scientific study shall evaluate the hazards and risks and
28potential hazards and risks that hydraulic fracturing treatments
29pose to natural resources and public, occupational, and
30environmental health and safety. The scientific study shall do all
31of the following:

32(1) Follow the well-established standard protocols of the
33scientific profession, including, but not limited to, the use of
34recognized experts, peer review, and publication.

35(2) Identify areas with existing and potential conventional and
36 unconventional oil and gas reserves where hydraulic fracturing
37treatments are likely to spur or enable oil and gas exploration and
38production.

39(3) Evaluate all aspects of hydraulic fracturing, including, but
40not limited to, the hydraulic fracturing treatment, additive and
P6    1water transportation to and from the well site, mixing and handling
2of the hydraulic fracturing fluids and additives on site, wastewater
3and waste hydraulic fracturing fluid handling, treatment, and
4disposal.

5(4) Consider, at a minimum, atmospheric emissions, the potential
6degradation of air quality, potential water and surface
7contamination, induced seismicity, and the ultimate disposition,
8transport, transformation, and toxicology of hydraulic fracturing
9fluids, and waste hydraulic fracturing fluids in the environment.

10(5) Include a hazard assessment and risk analysis addressing
11occupational and environmental exposures to hydraulic fracturing
12treatments and hydraulic fracturing treatment-related processes
13and the corresponding impacts on public health and safety with
14the participation of the Office of Environmental Health Hazard
15Assessment.

16(6) Clearly identify where additional information is necessary
17to inform and improve the analyses.

18(b) (1) On or before January 1, 2015, the divisionbegin insert, in
19consultation with the Department of Toxic Substances Control,
20the State Air Resources Board, the State Water Resources Control
21Board, the Department of Resources Recycling and Recovery, and
22any local air districts and regional water quality control boards
23in areas where hydraulic fracturing treatments may occur,end insert
shall
24adopt rules and regulations specific to hydraulic fracturing. The
25rules and regulations shall include, but are not limited to, revisions,
26as needed, to the rules and regulations governing construction of
27wells and well casings to ensure integrity of wells, well casings,
28and the geologic and hydrologic isolation of the oil and gas
29formation during and following hydraulic fracturing, and full
30disclosure of the composition and disposition of hydraulic
31fracturing fluids and waste hydraulic fracturing fluids.

32(2) Full disclosure of the composition and disposition of
33hydraulic fracturing fluids shall, at a minimum, include:

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

35(B) A complete list of the names, Chemical Abstract Service
36(CAS) numbers, and maximum concentration, in percent by mass,
37of each and every chemical constituent of the hydraulic fracturing
38fluids used. If a CAS number does not exist for a chemical
39constituent, the well owner or operator may provide another unique
40identifier, if available. Chemical information claimed as a trade
P7    1secret, pursuant to subdivision (j), shall be identified as such and
2reported as described in subdivision (j).

3(C) The trade name, the supplier, and a brief description of the
4intended purpose of each additive contained in the hydraulic
5fracturing fluid.

6(D) The total volume of base fluid used during the hydraulic
7fracturing treatment, and the identification of whether the base
8fluid is water suitable for irrigation or domestic purposes, water
9not suitable for irrigation or domestic purposes, or a fluid other
10than water.

11(E) The source, volume, and specific composition and
12disposition of all water, including, but not limited to, all water
13used as base fluid during the hydraulic fracturing treatment and
14recovered from the well following the hydraulic fracturing
15treatment that is not otherwise reported as produced water pursuant
16to Section 3227.

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

19(G) Any radiological components or tracers injected into the
20well as part of, or in order to evaluate, the hydraulic fracturing
21treatment, a description of the recovery method, if any, for those
22components or tracers, the recovery rate, and specific disposal
23information for recovered components or tracers.

24(H) The radioactivity of the recovered hydraulic fracturing
25fluids.

26(I) The location of the portion of the well subject to the hydraulic
27fracturing treatment and the extent of the fracturing surrounding
28the well induced by the treatment.

29(3) The rules and regulations shall be revised to incorporate the
30results of the independent scientific study conducted pursuant to
31subdivision (a).

32(c) (1) The rules and regulations adopted pursuant to paragraph
33(1) of subdivision (b) shall delineate the existing statutory authority
34and regulatory responsibility relating to hydraulic fracturing of the
35Department of Toxic Substances Control, the State Air Resources
36Board, any local air districts, the State Water Resources Control
37Board,begin insert the Department of Resources Recycling and Recovery,end insert any
38regional water quality control board, and other public entities. The
39division shall additionally delineate how the respective authority,
40responsibility, and notification and reporting requirements
P8    1associated with hydraulic fracturing treatments and hydraulic
2fracturing treatment-related activities is divided among each public
3entity.

4(2) On or before January 1, 2015, the division shall enter into
5formal agreements with the Department of Toxic Substances
6Control, the State Air Resources Board,begin delete anyend delete local air districts where
7hydraulic fracturing treatments may occur, the State Water
8Resources Control Board,begin insert the Department of Resources Recycling
9and Recovery,end insert
and any regional water quality control board where
10hydraulic fracturing treatments may occur, clearly delineating
11respective authority, responsibility, and notification and reporting
12requirements associated with hydraulic fracturing treatments and
13hydraulic fracturing treatment-related activities in order to promote
14regulatory transparency and accountability.

15(3) The agreements under paragraph (2) shall specify the
16appropriate public entity responsible for air and water quality
17monitoringbegin insert and the safe disposal of materials in landfillsend insert, include
18trade secret handling protocols, if necessary, and provide for ready
19public access to information related to hydraulic fracturing
20treatments and related activities.

21(4) Any party to an agreement under paragraph (2) shall revise
22its regulations, if necessary, to reflect the agreement.

23(d) (1) Notwithstanding any other law or regulation, prior to
24performing a hydraulic fracturing treatment on a well, the operator
25shall apply for a permit to perform a hydraulic fracturing treatment
26with the supervisor or district deputy. The permit application shall
27contain the pertinent data the supervisor requires on printed forms
28supplied by the division or on other forms acceptable to the
29supervisor. The information provided in the permit application
30shall include, but is not limited to, the following:

31(A) The well identification number and location.

32(B) The time period during which the hydraulic fracturing
33treatment is planned to occur.

34(C) An estimate of the amount of water to be used in the
35treatment and its source.

36(D) A complete list of the names, Chemical Abstract Service
37(CAS) numbers, and estimated concentrations, in percent by mass,
38of each and every chemical constituent of the hydraulic fracturing
39fluids planned to be used in the treatment. If a CAS number does
40not exist for a chemical constituent, the well owner or operator
P9    1may provide another unique identifier, if available. Chemical
2information claimed as a trade secret, pursuant to subdivision (j),
3shall be identified as such and reported as described in subdivision
4(j).

5(E) The planned location of the hydraulic fracturing treatment
6on the well bore and the estimated length, height, and direction of
7the induced fractures.

8(2) (A) The supervisor or district deputy shall review the
9hydraulic fracturing treatment permit application and may approve
10the permit if the application is complete.

11(B) A hydraulic fracturing treatment or repeat hydraulic
12fracturing treatment shall not be performed on any well without a
13valid permit that the supervisor or district deputy has approved.

14(C) A permit describing a hydraulic fracturing treatment that
15presents unreasonable risk or is incomplete shall not be approved.

16(3) The hydraulic fracturing treatment shall be completed within
17one year of the issuance of the permit.

18(4) Within five business days of issuing a permit to perform a
19hydraulic fracturing treatment, the division shall provide a copy
20of the permit to the appropriate regional water quality control board
21or boards and to the local planning entity where the well, including
22its subsurface portion, is located. The division shall post the permit
23on the publicly accessible portion of its Internet Web site.

24(5) At least 30 calendar days prior to commencing a hydraulic
25fracturing treatment, the operator shall provide a copy of the
26approved hydraulic fracturing treatment permit to every surface
27property owner or authorized agent of that owner whose property
28line location is one of the following:

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

30(B) Within 500 feet from the horizontal projection of all
31subsurface portions of the designated well to the surface.

32(6) (A) A property owner notified pursuant to paragraph (5)
33may request the regional water quality control board to perform
34water quality sampling and testing on any water well suitable for
35drinking or irrigation purposes and on any surface water suitable
36for drinking or irrigation purposes as follows:

37(i) Baseline measurements prior to the commencement of the
38hydraulic fracturing treatment.

P10   1(ii) Followup measurements after the hydraulic fracturing
2treatment on the same schedule as the pressure testing of the well
3casing of the hydraulically-fractured well.

4(B) The regional water quality control board may contract with
5an independent third party that adheres to board-specified standards
6and protocols to perform the water sampling and testing.

7(7) The regional water quality control board shall retain and
8archive sufficient sample collected pursuant to paragraph (6) to
9permit a reasonable number of additional analyses.

10(8) The operator shall provide the division with a list of the
11entities and property owners notified pursuant to paragraphs (4)
12and (5).

13(9) The operator shall provide notice to the division at least 72
14hours prior to the actual start of the hydraulic fracturing treatment
15in order for the division to witness the treatment.

16(e) On and after January 1, 2015, the supervisor or district
17deputy shall not issue a hydraulic fracturing treatment permit for
18any well until the independent scientific study in subdivision (a)
19is completed and peer reviewed by independent scientific experts.

20(f) If a hydraulic fracturing treatment is performed on a well, a
21supplier that performs any part of hydraulic fracturing or provides
22additives directly to the operator for a hydraulic fracturing
23treatment shall furnish the operator with information needed for
24the operator to comply with subdivision (g). If a supplier claims
25trade secret protection pursuant to subdivision (j), the supplier
26shall notify the operator and provide to the operator substitute
27information, as described in subdivision (j), suitable for public
28disclosure. This information shall be provided as soon as possible
29but no later than 30 days following the conclusion of the hydraulic
30fracturing treatment.

31(g) (1) Within 60 days following cessation of a hydraulic
32fracturing treatment on a well, the operator shall post or cause to
33have posted to an Internet Web site designated or maintained by
34the division and accessible to the public, all of the hydraulic
35fracturing fluid composition and disposition information required
36to be collected pursuant to rules and regulations adopted under
37subdivision (b), including well identification number and location.

38(2) The division’s Internet Web site shall be operational by
39January 1, 2016, and the division may direct reporting to an
40alternative Internet Web site developed by the Ground Water
P11   1Protection Council and the Interstate Oil and Gas Compact
2Commission in the interim. The reported information shall be
3organized on the division’s Internet Web site in a format, such as
4a spreadsheet, that allows the public to easily search and aggregate,
5to the extent practicable, each type of information required to be
6collected pursuant to subdivision (b) using search functions on
7that Internet Web site.

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

9(i) (1) All geologic features within a distance reflecting an
10appropriate safety factor of the fracture zone and having the
11potential to either limit or facilitate the migration of fluids outside
12of the fracture zone, shall be identified and added to the well
13history. Geologic features include, but are not limited to, seismic
14faults.

15(2) For the purposes of this section, the “fracture zone” is
16defined as the volume surrounding the well bore where fractures
17were created or enhanced by the hydraulic fracturing treatment.
18The safety factor shall be at least five and may vary depending
19upon geologic knowledge.

20(j) (1) The supplier may claim trade secret protection for the
21chemical composition of additives pursuant to Section 1060 of the
22Evidence Code, or the Uniform Trade Secrets Act (Title 5
23(commencing with Section 3426) of Part 1 of Division 4 of the
24Civil Code).

25(2) If a supplier believes that information regarding a chemical
26constituent of a hydraulic fracturing fluid is a trade secret, the
27supplier shall nevertheless disclose the information to the division
28in conjunction with a hydraulic fracturing treatment permit
29application, if not previously disclosed, within 30 days following
30cessation of hydraulic fracturing on a well, and shall notify the
31division in writing of that belief.

32(3) The supplier is not required to disclose trade secret
33information to the operator.

34(4) This subdivision does not permit a supplier to refuse to
35disclose the information required pursuant to this section to the
36division.

37(5) To comply with the public disclosure requirements of this
38section, the supplier shall indicate where trade secret information
39has been withheld and the specific name of a chemical constituent
P12   1shall be replaced with the chemical family name or similar
2descriptor associated with the trade secret chemical information.

3(6) Except as provided in subparagraph (B) of paragraph (8),
4the division shall protect from disclosure any trade secret
5designated as such by the supplier, if that trade secret is not a public
6record.

7(7) The supplier shall notify the division in writing within 30
8days of any changes to information provided to the division to
9support a trade secret claim.

10(8) Upon receipt of a request for the release of information to
11the public, which includes information the supplier has notified
12the division is a trade secret and is not a public record, the
13following procedure applies:

14(A) The division shall notify the supplier of the request in
15writing by certified mail, return receipt requested.

16(B) The division shall release the information to the public, but
17not earlier than 60 days after the date of mailing the notice of the
18request for information, unless, prior to the expiration of the 60-day
19period, the supplier obtains an action in an appropriate court for a
20declaratory judgment that the information is subject to protection
21or for a preliminary injunction prohibiting disclosure of the
22information to the public and provides notice to the division of
23that action.

24(9) (A) Except as provided in subparagraph (B) of paragraph
25(8), trade secret information is not a public record and shall not be
26disclosed to anyone except to an officer or employee of the
27division, the state, local air districts, or the United States, in
28connection with the official duties of that officer or employee, to
29a health professional, under any law for the protection of health,
30or to contractors with the division or the state and its employees
31if, in the opinion of the division, disclosure is necessary and
32required for the satisfactory performance of a contract, for
33performance of work, or to protect health and safety.

34(B) A health professional may share trade secret information
35with other persons as may be professionally necessary, including,
36but not limited to, the patient and other health professionals.
37Confidentiality of the trade secret information shall be maintained.
38The holder of the trade secret may request a confidentiality
39agreement consistent with the requirements of this subdivision to
40whom this information is disclosed as soon as circumstances
P13   1permit. If necessary, a procedure for timely disclosure by the
2division in the event of an emergency shall be identified.

3(k) This section does not apply to routine pressure tests to
4monitor the integrity of wells and well casings.

5(l) A well granted confidential status pursuant to Section 3234
6shall comply with this section, with the exception of the disclosure
7of hydraulic fracturing fluids pursuant to subdivision (g) which
8shall not be required until the confidential status of the well ceases.

9(m) The division shall perform random periodic spot check
10investigations to ensure that the information provided on hydraulic
11fracturing treatments is accurately reported, including that the
12estimates provided prior to the commencement of the hydraulic
13fracturing treatment are reasonably consistent with the well history.

14(n) Where the division shares jurisdiction over a well or the
15hydraulic fracturing treatment on a well with a federal entity, the
16division’s rules and regulations shall govern the hydraulic
17fracturing treatment of the well.

18

SEC. 3.  

Section 3213 of the Public Resources Code is amended
19to read:

20

3213.  

The history shall show the location and amount of
21sidetracked casings, tools, or other material, the depth and quantity
22of cement in cement plugs, the shots of dynamite or other
23explosives, and the results of production and other tests during
24drilling operations. All data on hydraulic fracturing treatments
25pursuant to Section 3160 shall be recorded in the history.

26

SEC. 4.  

Section 3215 of the Public Resources Code is amended
27to read:

28

3215.  

(a) Within 60 days after the date of cessation of drilling,
29rework, hydraulic fracturing treatment, or abandonment operations,
30or the date of suspension of operations, the operator shall file with
31the district deputy, in a form approved by the supervisor, true
32copies of the log, core record, and history of work performed, and,
33if made, true and reproducible copies of all electrical, physical, or
34chemical logs, tests, or surveys. Upon a showing of hardship, the
35supervisor may extend the time within which to comply with this
36section for a period not to exceed 60 additional days.

37(b) The supervisor shall include information provided pursuant
38to subdivision (g) of Section 3160 on existing publicly accessible
39maps on the division’s Internet Web site, and make the information
40available such that hydraulic fracturing treatment and related
P14   1information are associated with each specific well. If data is
2reported on an Internet Web site not maintained by the division
3pursuant to paragraph (2) of subdivision (g) of Section 3160, the
4division shall provide electronic links to that Internet Web site.
5The public shall be able to search and sort the hydraulic fracturing
6treatment and related information by at least the following criteria:

7(1) Geographic area.

8(2) Additive.

9(3) Chemical constituent.

10(4) Chemical Abstract Service number.

11(5) Time period.

12(6) Operator.

13(c) Notwithstanding Section 10231.5 of the Government Code,
14on or before January 1, 2016, and annually thereafter, the
15supervisor shall, in compliance with Section 9795 of the
16Government Code, prepare and transmit to the Legislature a
17comprehensive report on hydraulic fracturing in the exploration
18and production of oil and gas resources in California. The report
19shall include aggregated data of all of the information required to
20be reported pursuant to Section 3160 reported by the district,
21county, and operator. The report also shall include relevant
22additional information, as necessary, including, but not limited to,
23all the following:

24(1) Aggregated data detailing the disposition of any produced
25water from wells that have undergone hydraulic fracturing
26treatments.

27(2) Aggregated data describing the formations where wells have
28received hydraulic fracturing treatments including the range of
29safety factors used and fracture zone lengths.

30(3) The number of emergency responses to a spill or release
31associated with a hydraulic fracturing treatment.

32(4) Aggregated data detailing the number of times trade secret
33information was not provided to the public, by county and by each
34company, in the preceding year.

35(5) Data detailing the loss of well and well casing integrity in
36the preceding year for wells that have undergone hydraulic
37fracturing treatment. For comparative purposes, data detailing the
38loss of well and well casing integrity in the preceding year for all
39wells shall also be provided. The cause of each well and well casing
40failure, if known, shall also be provided.

P15   1(6) The number of spot check inspections conducted pursuant
2to subdivision (m) of Section 3160, including the number of
3inspections where the composition of hydraulic fracturing fluids
4were verified and the results of those inspections.

5(7) The number of hydraulic fracturing treatments witnessed
6by the division.

7(8) The number of enforcement actions associated with hydraulic
8fracturing treatments, including, but not limited to, notices of
9deficiency, notices of violation, civil or criminal enforcement
10actions, and any penalties assessed.

11(d) The report shall be made publicly available and an electronic
12version shall be available on the division’s Internet Web site.

13

SEC. 5.  

Section 3236.5 of the Public Resources Code is
14amended to read:

15

3236.5.  

(a) A person who violates this chapter or a regulation
16implementing this chapter is subject to a civil penalty not to exceed
17twenty-five thousand dollars ($25,000) for each violation. A person
18who commits a violation of Article 3 (commencing with Section
193150) is subject to a civil penalty of not less than ten thousand
20dollars ($10,000) and not to exceed twenty-five thousand dollars
21($25,000) per day per violation. An act of God and an act of
22vandalism beyond the reasonable control of the operator shall not
23be considered a violation. The civil penalty shall be imposed by
24an order of the supervisor pursuant to Section 3225 upon a
25determination that a violation has been committed by the person
26charged. The imposition of a civil penalty under this section shall
27be in addition to any other penalty provided by law for the
28violation. When establishing the amount of the civil penalty
29pursuant to this section, the supervisor shall consider, in addition
30to other relevant circumstances, all of the following:

31(1) The extent of harm caused by the violation.

32(2) The persistence of the violation.

33(3) The pervasiveness of the violation.

34(4) The number of prior violations by the same violator.

35(b) An order of the supervisor imposing a civil penalty shall be
36reviewable pursuant to Article 6 (commencing with Section 3350).
37When the order of the supervisor has become final and the penalty
38has not been paid, the supervisor may apply to the appropriate
39superior court for an order directing payment of the civil penalty.
40The supervisor may also seek from the court an order directing
P16   1that production from the well or use of the production facility that
2is the subject of the civil penalty order be discontinued until the
3violation has been remedied to the satisfaction of the supervisor
4and the civil penalty has been paid.

5(c) Any amount collected under this section shall be deposited
6in the Oil, Gas, and Geothermal Administrative Fund.

7

SEC. 6.  

Section 3401 of the Public Resources Code is amended
8to read:

9

3401.  

(a) The proceeds of charges levied, assessed, and
10collected pursuant to this article upon the properties of every person
11operating or owning an interest in the production of a well shall
12be used exclusively for the support and maintenance of the
13department charged with the supervision of oil and gas operations.

14(b) Notwithstanding subdivision (a), the proceeds of charges
15levied, assessed, and collected pursuant to this article upon the
16properties of every person operating or owning an interest in the
17production of a well undergoing a hydraulic fracturing treatment,
18may be used by public entities, subject to appropriation by the
19Legislature, for all costs associated with hydraulic fracturing
20treatments including scientific studies required to evaluate the
21treatment, inspections, and any air and water quality sampling,
22monitoring, and testing performed by public entities.

23

SEC. 7.  

No reimbursement is required by this act pursuant to
24Section 6 of Article XIII B of the California Constitution because
25the only costs that may be incurred by a local agency or school
26district will be incurred because this act creates a new crime or
27infraction, eliminates a crime or infraction, or changes the penalty
28for a crime or infraction, within the meaning of Section 17556 of
29the Government Code, or changes the definition of a crime within
30the meaning of Section 6 of Article XIII B of the California
31Constitution.



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