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, 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, 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
begin delete investigationsend delete 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:
The Legislature finds and declares all of the
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
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.
Article 3 (commencing with Section 3150) is added
15to Chapter 1 of Division 3 of the Public Resources Code, to read:
“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.
“Base fluid” means the continuous phase fluid used in
26the makeup of a hydraulic fracturing fluid. The continuous phase
P5 1fluid may include, but is not limited to, water, and may be a liquid
2or a hydrocarbon or nonhydrocarbon gas. A hydraulic fracturing
3treatment may use more than one base fluid.
“Hydraulic fracturing” means a well stimulation
begin delete or well treatment that
begin delete involvesend delete the pressurized
6injection of hydraulic fracturing fluid
begin delete and proppantend delete into
7an underground geologic formation in order to fracture the
8formation, thereby causing or enhancing, for the purposes of this
9division, the production of oil or gas from a well.
“Hydraulic fracturing fluid” means a base fluid mixed
11with physical and chemical additives for the purpose of hydraulic
12fracturing. A hydraulic fracturing treatment may include more than
13one hydraulic fracturing fluid.
“Proppants” means materials inserted or injected into
15the underground geologic formation that are intended to prevent
16fractures from closing.
“Supplier” means an entity performing a hydraulic
18fracturing treatment or an entity supplying an additive or proppant
19directly to the operator for use in a hydraulic fracturing treatment.
“Surface property owner” means the owner of real
21property as shown on the latest equalized assessment roll or, if
22more recent information than the information contained on the
23assessment roll is available, the owner of record according to the
24county assessor or tax collector.
(a) On or before January 1, 2015, the Secretary of the
32Natural Resources Agency shall cause to be conducted an
33independent scientific study on hydraulic fracturing treatments.
34The scientific study shall evaluate the hazards and risks and
35potential hazards and risks that hydraulic fracturing treatments
36pose to natural resources and public, occupational, and
37environmental health and safety. The scientific study shall do all
38of the following:
P6 1(1) Follow the well-established standard protocols of the
2scientific profession, including, but not limited to, the use of
3recognized experts, peer review, and publication.
4(2) Identify areas with existing and potential conventional and
5 unconventional oil and gas reserves where hydraulic fracturing
6treatments are likely to spur or enable oil and gas exploration and
8(3) Evaluate all aspects of hydraulic fracturing, including, but
9not limited to, the hydraulic fracturing treatment, additive and
10water transportation to and from the well site, mixing and handling
11of the hydraulic fracturing fluids and additives on site, wastewater
12and waste hydraulic fracturing fluid handling, treatment, and
14(4) Consider, at a minimum, atmospheric emissions, the potential
15degradation of air quality, potential water and surface
16contamination, induced seismicity, and the ultimate disposition,
17transport, transformation, and toxicology of hydraulic fracturing
18fluids, and waste hydraulic fracturing fluids in the environment.
19(5) Include a hazard assessment and risk analysis addressing
20occupational and environmental exposures to hydraulic fracturing
21treatments and hydraulic fracturing treatment-related processes
22and the corresponding impacts on public health and safety with
23the participation of the Office of Environmental Health Hazard
25(6) Clearly identify where additional information is necessary
26to inform and improve the analyses.
27(b) (1) On or before January 1, 2015, the division, in
28consultation with the Department of Toxic Substances Control,
29the State Air Resources Board, the State Water Resources Control
30Board, the Department of Resources Recycling and Recovery, and
31any local air districts and regional water quality control boards in
32areas where hydraulic fracturing treatments may occur, shall adopt
33rules and regulations specific to hydraulic fracturing. The rules
34and regulations shall include, but are not limited to, revisions, as
35needed, to the rules and regulations governing construction of
36wells and well casings to ensure integrity of wells, well casings,
37and the geologic and hydrologic isolation of the oil and gas
38formation during and following hydraulic fracturing, and full
39disclosure of the composition and disposition of hydraulic
40fracturing fluids and waste hydraulic fracturing fluids.
P7 1(2) Full disclosure of the composition and disposition of
2hydraulic fracturing fluids shall, at a minimum, include:
3(A) The date of the hydraulic fracturing treatment.
4(B) A complete list of the names, Chemical Abstract Service
5(CAS) numbers, and maximum concentration, in percent by mass,
6of each and every chemical constituent of the hydraulic fracturing
7fluids used. If a CAS number does not exist for a chemical
8constituent, the well owner or operator may provide another unique
9identifier, if available. Chemical information claimed as a trade
10secret, pursuant to subdivision (j), shall be identified as such and
11reported as described in subdivision (j).
12(C) The trade name, the supplier, and a brief description of the
13intended purpose of each additive contained in the hydraulic
15(D) The total volume of base fluid used during the hydraulic
16fracturing treatment, and the identification of whether the base
17fluid is water suitable for irrigation or domestic purposes, water
18not suitable for irrigation or domestic purposes, or a fluid other
20(E) The source, volume, and specific composition and
21disposition of all water, including, but not limited to, all water
22used as base fluid during the hydraulic fracturing treatment and
23recovered from the well following the hydraulic fracturing
24treatment that is not otherwise reported as produced water pursuant
25to Section 3227.
26(F) The specific composition and disposition of all hydraulic
27 fracturing fluids, including waste fluids, other than water.
28(G) Any radiological components or tracers injected into the
29well as part of, or in order to evaluate, the hydraulic fracturing
30treatment, a description of the recovery method, if any, for those
31components or tracers, the recovery rate, and specific disposal
32information for recovered components or tracers.
33(H) The radioactivity of the recovered hydraulic fracturing
35(I) The location of the portion of the well subject to the hydraulic
36fracturing treatment and the extent of the fracturing surrounding
37the well induced by the treatment.
38(3) The rules and regulations shall be revised to
39results of the independent scientific study conducted pursuant to
begin deleteThe rules and regulations adopted pursuant to end deleteparagraph (1) of subdivision
10(b) shall delineate the
11existing statutory authority and regulatory responsibility relating
12to hydraulic fracturing of the Department of Toxic Substances
14Control, the State Air Resources Board, any local air districts, the
15State Water Resources Control Board, the Department of Resources
16Recycling and Recovery, any regional water quality control board,
17and other public entities.
begin deleteThe divisionend delete shall
begin delete additionally delineateend delete how the respective authority,
19responsibility, and notification and reporting requirements
20associated with hydraulic fracturing treatments and hydraulic
21fracturing treatment-related activities
begin delete isend delete divided among each
23(2) On or before January 1, 2015, the division shall enter into
24formal agreements with the Department of Toxic Substances
25Control, the State Air Resources Board, local air districts where
26hydraulic fracturing treatments may occur, the State Water
27Resources Control Board, the Department of Resources Recycling
28and Recovery, and any regional water quality control board where
29hydraulic fracturing treatments may occur, clearly delineating
30respective authority, responsibility, and notification and reporting
31requirements associated with hydraulic fracturing treatments and
32hydraulic fracturing treatment-related activities in order to promote
33regulatory transparency and accountability.
34(3) The agreements under paragraph (2) shall specify the
35appropriate public entity responsible for air and water quality
36monitoring and the safe disposal of materials in landfills, include
37trade secret handling protocols, if necessary, and provide for ready
38public access to information related to hydraulic fracturing
39treatments and related activities.
P9 1(4) Any party to an agreement under paragraph (2) shall revise
2its regulations, if necessary, to reflect the agreement.
3(d) (1) Notwithstanding any other law or regulation, prior to
4performing a hydraulic fracturing treatment on a well, the operator
5shall apply for a permit to perform a hydraulic fracturing treatment
6with the supervisor or district deputy. The permit application shall
7contain the pertinent data the supervisor requires on printed forms
8supplied by the division or on other forms acceptable to the
9supervisor. The information provided in the permit application
10shall include, but is not limited to, the following:
11(A) The well identification number and location.
12(B) The time period during which the hydraulic fracturing
13treatment is planned to occur.
14(C) An estimate of the amount of water to be used in the
15treatment and its source.
complete list of the names, Chemical Abstract Service
17(CAS) numbers, and estimated concentrations, in percent by mass,
18of each and every chemical constituent of the hydraulic fracturing
19fluids planned to be used in the treatment. If a CAS number does
20not exist for a chemical constituent, the well owner or operator
21may provide another unique identifier, if available. Chemical
22information claimed as a trade secret, pursuant to subdivision (j),
23shall be identified as such and reported as described in subdivision
25(E) The planned location of the hydraulic fracturing treatment
26on the well bore and the estimated length, height, and direction of
27the induced fractures.
28(2) (A) The supervisor or district deputy shall review the
29hydraulic fracturing treatment permit application and may approve
30the permit if the application is complete.
31(B) A hydraulic fracturing treatment or repeat hydraulic
32fracturing treatment shall not be performed on any well without a
33valid permit that the supervisor or district deputy has approved.
34(C) A permit describing a hydraulic fracturing treatment that
35presents unreasonable risk or is incomplete shall not be approved.
36(3) The hydraulic fracturing treatment shall be completed within
37one year of the issuance of the permit.
38(4) Within five business days of issuing a permit to perform a
39hydraulic fracturing treatment, the division shall provide a copy
40of the permit to the appropriate regional water quality control board
P10 1or boards and to the local planning entity where the well, including
2its subsurface portion, is located. The division shall post the permit
3on the publicly accessible portion of its Internet Web site.
4(5) At least 30 calendar days prior to commencing a hydraulic
5fracturing treatment, the operator shall provide a copy of the
6approved hydraulic fracturing treatment permit to every surface
7property owner or authorized agent of that owner whose property
8line location is one of the following:
9(A) Within a 1,500 foot radius of the wellhead.
10(B) Within 500 feet from the horizontal projection of all
11subsurface portions of the designated well to the surface.
12(6) (A) A property owner notified pursuant to paragraph (5)
13may request the regional water quality control board to perform
14water quality sampling and testing on any water well suitable for
15drinking or irrigation purposes and on any surface water suitable
16for drinking or irrigation purposes as follows:
17(i) Baseline measurements prior to the commencement of the
18hydraulic fracturing treatment.
19(ii) Followup measurements after the hydraulic fracturing
20treatment on the same schedule as the pressure testing of the well
21casing of the hydraulically-fractured well.
22(B) The regional water quality control board may contract with
23an independent third party that adheres to board-specified standards
24and protocols to perform the water sampling and testing.
25(7) The regional water quality control board shall retain and
26archive sufficient sample collected pursuant to paragraph (6) to
27permit a reasonable number of additional analyses.
28(8) The operator shall provide the division with a list of the
29entities and property owners notified pursuant to paragraphs (4)
31(9) The operator shall provide notice to the division at least 72
32hours prior to the actual start of the hydraulic fracturing treatment
33in order for the division to witness the treatment.
34(e) On and after January 1, 2015, the supervisor or district
35deputy shall not issue a hydraulic fracturing treatment permit for
36any well until the independent scientific study in subdivision (a)
37is completed and peer reviewed by independent scientific experts.
38(f) If a hydraulic fracturing treatment is performed on a well, a
39supplier that performs any part of hydraulic fracturing or provides
40additives directly to the operator for a hydraulic fracturing
P11 1treatment shall furnish the operator with information needed for
2the operator to comply with subdivision (g). If a supplier claims
3trade secret protection pursuant to subdivision (j), the supplier
4shall notify the operator and provide to the operator substitute
5information, as described in subdivision (j), suitable for public
6disclosure. This information shall be provided as soon as possible
7but no later than 30 days following the conclusion of the hydraulic
9(g) (1) Within 60 days following cessation of a hydraulic
10fracturing treatment on a well, the operator shall post or cause to
11have posted to an Internet Web site designated or maintained by
12the division and accessible to the public, all of the hydraulic
13fracturing fluid composition and disposition information required
14to be collected pursuant to rules and regulations adopted under
15subdivision (b), including well identification number and location.
16(2) The division’s Internet Web site shall be operational by
17January 1, 2016, and the division may direct reporting to an
18alternative Internet Web site developed by the Ground Water
19Protection Council and the Interstate Oil and Gas Compact
20Commission in the interim. The reported information shall be
21organized on the division’s Internet Web site in a format, such as
22a spreadsheet, that allows the public to easily search and aggregate,
23to the extent practicable, each type of information required to be
24collected pursuant to subdivision (b) using search functions on
25that Internet Web site.
26(h) The operator is responsible for compliance with this section.
27(i) (1) All geologic features within a distance reflecting an
28appropriate safety factor of the fracture zone and having the
29potential to either limit or facilitate the migration of fluids outside
30of the fracture zone, shall be identified and added to the well
31history. Geologic features include, but are not limited to, seismic
33(2) For the purposes of this
section, the “fracture zone” is
34defined as the volume surrounding the well bore where fractures
35were created or enhanced by the hydraulic fracturing treatment.
36The safety factor shall be at least five and may vary depending
37upon geologic knowledge.
38(j) (1) The supplier may claim trade secret protection for the
39chemical composition of additives pursuant to Section 1060 of the
40Evidence Code, or the Uniform Trade Secrets Act (Title 5
P12 1(commencing with Section 3426) of Part 1 of Division 4 of the
3(2) If a supplier believes that information regarding a chemical
4constituent of a hydraulic fracturing fluid is a trade secret, the
5supplier shall nevertheless disclose the information to the division
6in conjunction with a hydraulic fracturing treatment permit
7application, if not previously disclosed, within 30 days following
8cessation of hydraulic fracturing on a well, and shall notify the
9division in writing of that belief.
10(3) The supplier is not required to disclose trade secret
11information to the operator.
12(4) This subdivision does not permit a supplier to refuse to
13disclose the information required pursuant to this section to the
15(5) To comply with the public disclosure requirements of this
16section, the supplier shall indicate where trade secret information
17has been withheld and the specific name of a chemical constituent
18shall be replaced with the chemical family name or similar
19descriptor associated with the trade secret chemical information.
20(6) Except as provided in subparagraph (B) of paragraph (8),
21the division shall protect from disclosure any trade secret
22designated as such by the supplier, if that trade secret is not a public
24(7) The supplier shall notify the division in writing within 30
25days of any changes to information provided to the division to
26support a trade secret claim.
27(8) Upon receipt of a request for the release of information to
28the public, which includes information the supplier has notified
29the division is a trade secret and is not a public record, the
30following procedure applies:
31(A) The division shall notify the supplier of the request in
32writing by certified mail, return receipt requested.
33(B) The division shall release the information to the public, but
34not earlier than 60 days after the date of mailing the notice of the
35request for information, unless, prior to the expiration of the 60-day
36period, the supplier obtains an action in an appropriate court for a
37declaratory judgment that the information is subject to protection
38or for a preliminary injunction prohibiting disclosure of the
39information to the public and provides notice to the division of
P13 1(9) (A) Except as provided in subparagraph (B) of paragraph
2(8), trade secret information is not a public record and shall not be
3disclosed to anyone except to an officer or employee of the
4division, the state, local air districts, or the United States, in
5connection with the official duties of that officer or employee, to
6a health professional, under any law for the protection of health,
7or to contractors with the division or the state and its employees
8if, in the opinion of the division, disclosure is necessary and
9required for the satisfactory performance of a contract, for
10performance of work, or to protect health and safety.
11(B) A health professional may share trade secret information
12with other persons as may be professionally necessary, including,
13but not limited to, the patient and other health professionals.
14Confidentiality of the trade secret information shall be maintained.
15The holder of the trade secret may request a confidentiality
16agreement consistent with the requirements of this subdivision to
17whom this information is disclosed as soon as circumstances
18permit. If necessary, a procedure for timely disclosure by the
19division in the event of an emergency shall be identified.
20(k) This section does not apply to routine pressure tests to
21monitor the integrity of wells and well casings.
22(l) A well granted confidential status pursuant to Section 3234
23shall comply with this section, with the exception of the disclosure
24of hydraulic fracturing fluids pursuant to subdivision (g) which
25shall not be required until the confidential status of the well ceases.
26(m) The division shall perform random periodic spot check
begin delete investigationsend delete to ensure that the information provided
28on hydraulic fracturing treatments is accurately reported, including
29that the estimates provided prior to the commencement of the
30hydraulic fracturing treatment are reasonably consistent with the
32(n) Where the division shares jurisdiction over a well or the
33hydraulic fracturing treatment on a well with a federal entity, the
34division’s rules and regulations shall govern the hydraulic
35fracturing treatment of the well.
Section 3213 of the Public Resources Code is amended
The history shall show the location and amount of
39sidetracked casings, tools, or other material, the depth and quantity
40of cement in cement plugs, the shots of dynamite or other
P14 1explosives, and the results of production and other tests during
2drilling operations. All data on hydraulic fracturing treatments
3pursuant to Section 3160 shall be recorded in the history.
Section 3215 of the Public Resources Code is amended
(a) Within 60 days after the date of cessation of drilling,
7rework, hydraulic fracturing treatment, or abandonment operations,
8or the date of suspension of operations, the operator shall file with
9the district deputy, in a form approved by the supervisor, true
10copies of the log, core record, and history of work performed, and,
11if made, true and reproducible copies of all electrical, physical, or
12chemical logs, tests, or surveys. Upon a showing of hardship, the
13supervisor may extend the time within which to comply with this
14section for a period not to exceed 60 additional days.
15(b) The supervisor shall include information provided pursuant to subdivision (g) of Section
173160 on existing publicly accessible maps on the division’s Internet
18Web site, and make the information available such that hydraulic
19fracturing treatment and related information are associated with
20each specific well. If data is reported on an Internet Web site not
21maintained by the division pursuant to paragraph (2) of subdivision
22(g) of Section 3160, the division shall provide electronic links to
23that Internet Web site. The public shall be able to search and sort
24the hydraulic fracturing treatment and related information by at
25least the following criteria:
26(1) Geographic area.
28(3) Chemical constituent.
29(4) Chemical Abstract Service number.
30(5) Time period.
32(c) Notwithstanding Section 10231.5 of the Government Code,
33on or before January 1, 2016, and annually thereafter, the
34supervisor shall, in compliance with Section 9795 of the
35Government Code, prepare and transmit to the Legislature a
36comprehensive report on hydraulic fracturing in the exploration
37and production of oil and gas resources in California. The report
38shall include aggregated data of all of the information required to
39be reported pursuant to Section 3160 reported by the district,
40county, and operator. The report also shall include relevant
P15 1additional information, as necessary, including, but not limited to,
2all the following:
3(1) Aggregated data detailing the disposition of any produced
4water from wells that have undergone hydraulic fracturing
6(2) Aggregated data describing the formations where wells have
7received hydraulic fracturing treatments including the range of
8safety factors used and fracture zone lengths.
9(3) The number of emergency responses to a spill or release
10associated with a hydraulic fracturing treatment.
11(4) Aggregated data detailing the number of times trade secret
12information was not provided to the public, by county and by each
13company, in the preceding year.
14(5) Data detailing the loss of well and well casing integrity in
15the preceding year for wells that have undergone hydraulic
16fracturing treatment. For comparative purposes, data detailing the
17loss of well and well casing integrity in the preceding year for all
18wells shall also be provided. The cause of each well and well casing
19failure, if known, shall also be provided.
20(6) The number of spot check inspections conducted pursuant
21to subdivision (m) of Section 3160, including the number of
22inspections where the composition of hydraulic fracturing fluids
23were verified and the results of those inspections.
24(7) The number of hydraulic fracturing treatments witnessed
25by the division.
26(8) The number of enforcement actions associated with hydraulic
27fracturing treatments, including, but not limited to, notices of
28deficiency, notices of violation, civil or criminal enforcement
29actions, and any penalties assessed.
30(d) The report shall be made publicly available and an electronic
31version shall be available on the division’s Internet Web site.
Section 3236.5 of the Public Resources Code is
33amended to read:
(a) A person who violates this chapter or a regulation
35implementing this chapter is subject to a civil penalty not to exceed
36twenty-five thousand dollars ($25,000) for each violation. A person
37who commits a violation of Article 3 (commencing with Section
383150) is subject to a civil penalty of not less than ten thousand
39dollars ($10,000) and not to exceed twenty-five thousand dollars
40($25,000) per day per violation. An act of God and an act of
P16 1vandalism beyond the reasonable control of the operator shall not
2be considered a violation. The civil penalty shall be imposed by
3an order of the supervisor pursuant to Section 3225 upon a
4determination that a violation has been committed by the person
5charged. The imposition of a civil penalty under this section shall
6be in addition to any other penalty provided by law for the
7violation. When establishing the amount of the civil penalty
8pursuant to this section, the supervisor shall consider, in addition
9to other relevant circumstances, all of the following:
10(1) The extent of harm caused by the violation.
11(2) The persistence of the violation.
12(3) The pervasiveness of the violation.
13(4) The number of prior violations by the same violator.
14(b) An order of the supervisor imposing a civil penalty shall be
15reviewable pursuant to Article 6 (commencing with Section 3350).
16When the order of the supervisor has become final and the penalty
17has not been paid, the supervisor may apply to the appropriate
18superior court for an order directing payment of the civil penalty.
19The supervisor may also seek from the court an order directing
20that production from the well or use of the production facility that
21is the subject of the civil penalty order be discontinued until the
22violation has been remedied to the satisfaction of the supervisor
23and the civil penalty has been paid.
24(c) Any amount collected under this section shall be deposited
25in the Oil, Gas, and Geothermal Administrative Fund.
Section 3401 of the Public Resources Code is amended
(a) The proceeds of charges levied, assessed, and
29collected pursuant to this article upon the properties of every person
30operating or owning an interest in the production of a well shall
31be used exclusively for the support and maintenance of the
32department charged with the supervision of oil and gas operations.
33(b) Notwithstanding subdivision (a), the proceeds of charges
34levied, assessed, and collected pursuant to this article upon the
35properties of every person operating or owning an interest in the
36production of a well undergoing a hydraulic fracturing treatment,
37may be used by public entities, subject to appropriation by the
38Legislature, for all costs associated with hydraulic fracturing
39treatments including scientific studies required to evaluate the
P17 1treatment, inspections, and any air and water quality sampling,
2monitoring, and testing performed by public entities.
No reimbursement is required by this act pursuant to
4Section 6 of Article XIII B of the California Constitution because
5the only costs that may be incurred by a local agency or school
6district will be incurred because this act creates a new crime or
7infraction, eliminates a crime or infraction, or changes the penalty
8for a crime or infraction, within the meaning of Section 17556 of
9the Government Code, or changes the definition of a crime within
10the meaning of Section 6 of Article XIII B of the California