SB 4, as amended, Pavley. Oil and gas: well stimulation.
(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 well stimulation treatment, 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 well stimulation treatments, including acid well stimulation and hydraulic fracturing treatments. The bill would require an operator of a well to record and include all data on well stimulation 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 well stimulation treatments may occur, on or before January 1, 2015, to adopt rules and regulations specific to well stimulation, including governing the construction of wells and well casings and full disclosure of the composition and disposition of well stimulation fluids. The bill would require an operator to apply for a permit, as specified, with the supervisor or district deputy, prior to performing a well stimulation treatment of a well and would prohibit the operator from either conducting a new well stimulation treatment or repeating a well stimulation 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 a well stimulation treatment, 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 well stimulation 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 inspections during well stimulation treatments, as specified. The bill would require the Secretary of the Natural Resources Agency to notify various legislative committees on the progress of the independent scientific study on well stimulation and related activities, 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 well stimulation treatment permit to specified tenants and property owners at least 30 days prior to commencing a well stimulation treatment. The bill would require the operator to provide notice to the division at least 72 hours prior to the actual start of a well stimulation treatment in order for the division to witness the treatment. The bill would require the supplier, as defined, of the well stimulation treatment to provide to the operator, within 30 days following the conclusion of the treatment, certain information regarding the well stimulation fluid. The bill would require the operator, within 60 days of the cessation of a well stimulation treatment, to post or cause to have posted on an Internet Web site accessible to the public specified information on the well stimulation 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 apply in addition to all applicable federal law and regulations. The bill would require a supplier claiming trade secret protection for the chemical composition of additives used in a well stimulation treatment to disclose the composition to the division, in conjunction with a well stimulation treatment permit application, but would, except as specified, prohibit those with access to the trade secret from disclosing it. Because 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 well stimulation treatments 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 well stimulation 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 well stimulation 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
begin deleteHydraulic end deletefracturing of oil and gas wells in
4combination with technological advances in oil and gas well
5drilling are spurring oil and gas extraction and exploration in
6California. Other well stimulation treatments, in addition to
7hydraulic fracturing, are also critical to boosting oil and gas
9(b) Insufficient information is
available to fully assess the
10science of the practice of hydraulic fracturing and other well
11stimulation treatment technologies in California, including
12environmental, occupational, and public health hazards and risks.
13(c) Providing transparency and accountability to the public
14regarding well stimulation treatments, including, but not limited
15to, hydraulic fracturing, associated emissions to the environment,
16and the handling, processing, and disposal of well stimulation and
P5 1related wastes, including from hydraulic fracturing, is of paramount
3(d) The Legislature encourages the use or reuse of treated or
4untreated water and produced water for well stimulation treatments
5and well stimulation treatment-related activities.
Article 3 (commencing with Section 3150) is added
7to Chapter 1 of Division 3 of the Public Resources Code, to read:
“Additive” means a substance or combination of
12substances added to a base fluid for purposes of preparing well
13stimulation treatment fluid which includes, but is not limited to,
14an acid stimulation treatment fluid or a hydraulic fracturing fluid.
15An additive may, but is not required to, serve additional purposes
16beyond the transmission of hydraulic pressure to the geologic
17formation. An additive may be of any phase and includes
“Base fluid” means the continuous phase fluid used in
20the makeup of a well stimulation treatment fluid, including, but
21not limited to, an acid stimulation treatment fluid or a hydraulic
22fracturing fluid. The continuous phase fluid may include, but is
23not limited to, water, and may be a liquid or a hydrocarbon or
24nonhydrocarbon gas. A well stimulation treatment may use more
25than one base fluid.
“Hydraulic fracturing” means a well stimulation
27treatment that, in whole or in part, includes the pressurized injection
28of hydraulic fracturing fluid or fluids into an underground geologic
29formation in order to fracture or with the intent to fracture the
30formation, thereby causing or enhancing, for the purposes of this
31division, the production of oil or gas from a well.
“Hydraulic fracturing fluid” means a base fluid mixed
33with physical and chemical additives for the purpose of hydraulic
34fracturing. A hydraulic fracturing treatment may include more than
35one hydraulic fracturing fluid.
“Proppants” means materials inserted or injected into
37the underground geologic formation that are intended to prevent
38fractures from closing.
“Supplier” means an entity performing a well stimulation
2treatment or an entity supplying an additive or proppant directly
3to the operator for use in a well stimulation treatment.
“Surface property owner” means the owner of real
5property as shown on the latest equalized assessment roll or, if
6more recent information than the information contained on the
7assessment roll is available, the owner of record according to the
8county assessor or tax collector.
For purposes of this article, “well stimulation treatment”
10means any treatment of a well designed to enhance oil and gas
11production or recovery, including, but not limited to, hydraulic
12fracturing and acid well stimulation. Well stimulation treatments
13include, but are not limited to, hydraulic fracturing treatments and
14acid well stimulation treatments. Well stimulation treatments do
15not include steam flooding, water flooding, or cyclic steaming.
“Acid well stimulation treatment” means a well
17stimulation treatment that uses, in whole or in part, the application
18of one or more acids to the well or underground geologic formation
19with the intent to cause or enhance the production of oil or gas
20from a well. The acid well stimulation treatment may be at any
21applied pressure and may be used in combination with hydraulic
22fracturing treatments or other well stimulation treatments.
(a) On or before January 1, 2015, the Secretary of the
24Natural Resources Agency shall cause to be conducted an
25independent scientific study on well stimulation treatments,
26including, but not limited to, hydraulic fracturing and acid well
27stimulation treatments. The scientific study shall evaluate the
28hazards and risks and potential hazards and risks that well
29stimulation treatments pose to natural resources and public,
30occupational, and environmental health and safety. The scientific
31study shall do all of 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
36unconventional oil and gas reserves where well stimulation
37treatments are likely to spur or enable oil and gas exploration and
39(3) (A) Evaluate all aspects of hydraulic fracturing, including,
40but not limited to, the hydraulic fracturing treatment, additive and
P7 1water transportation to and from the well site, mixing and handling
2of the hydraulic fracturing fluids and additives onsite, the use and
3potential for use of nontoxic additives and the use or reuse of
4treated or produced water in hydraulic fracturing fluids, wastewater
5and waste hydraulic fracturing fluid handling, treatment, and
7(B) Evaluate all aspects of acid well stimulation treatments,
8including the use and potential use of large-scale acidization
9treatments and waste handling, treatment, and disposal.
10(4) Consider, at a minimum, atmospheric emissions, including
11potential greenhouse gas emissions, the potential degradation of
12air quality, potential impacts on wildlife, native plants, and habitat,
13potential water and surface contamination, potential noise pollution,
14induced seismicity, and the ultimate disposition, transport,
15transformation, and toxicology of well stimulation treatments,
16including acid well stimulation fluids, hydraulic fracturing fluids,
17and waste hydraulic fracturing fluids and acid well stimulation in
19(5) Include a hazard assessment and risk analysis
20occupational and environmental exposures to well stimulation
21treatments, including hydraulic fracturing treatments, hydraulic
22fracturing treatment-related processes, acid well stimulation
23treatments, acid well stimulation treatment-related processes, and
24the corresponding impacts on public health and safety with the
25participation of the Office of Environmental Health Hazard
27(6) Clearly identify where additional information is necessary
28to inform and improve the analyses.
29(b) (1) On or before January 1, 2015, the division, in
30consultation with the Department of Toxic Substances Control,
31the State Air Resources Board, the State Water Resources Control
32Board, the Department of Resources Recycling and Recovery, and
33any local air districts and regional water quality control boards in
34areas where well stimulation treatments, including acid well
35stimulation treatments and hydraulic fracturing treatments may
36occur, shall adopt rules and regulations specific to well stimulation
37treatments. The rules and regulations shall include, but are not
38limited to, revisions, as needed, to the rules and regulations
39governing construction of wells and well casings to ensure integrity
40of wells, well casings, and the geologic and hydrologic isolation
P8 1of the oil and gas formation during and following well stimulation
2treatments, and full disclosure of the composition and disposition
3of well stimulation fluids, including, but not limited to, hydraulic
4fracturing fluids, acid well stimulation fluids, and waste hydraulic
5fracturing and acid stimulation fluids.
6(2) Full disclosure of the
composition and disposition of well
7stimulation fluids, including, but not limited to, hydraulic fracturing
8fluids and acid stimulation treatment fluids, shall, at a minimum,
10(A) The date of the well stimulation treatment.
11(B) A complete list of the names, Chemical Abstract Service
12(CAS) numbers, and maximum concentration, in percent by mass,
13of each and every chemical constituent of the well stimulation
14treatment fluids used. If a CAS number does not exist for a
15chemical constituent, the well owner or operator may provide
16another unique identifier, if available. Chemical information
17claimed as a trade secret, pursuant to subdivision (j), shall be
18identified as such and reported as described in subdivision (j).
19(C) The trade name, the supplier, and a brief description of the
20intended purpose of each additive contained in the well stimulation
22(D) The total volume of base fluid used during the well
23stimulation treatment, and the identification of whether the base
24fluid is water suitable for irrigation or domestic purposes, water
25not suitable for irrigation or domestic purposes, or a fluid other
27(E) The source, volume, and specific composition and
28disposition of all water, including, but not limited to, all water
29used as base fluid during the well stimulation treatment and
30recovered from the well following the well stimulation treatment
31that is not otherwise reported as produced water pursuant to Section
323227. Any repeated reuse of treated or untreated water for well
33stimulation treatments and well stimulation treatment-related
34activities shall be identified.
35(F) The specific composition and disposition of all well
36stimulation treatment fluids, including waste fluids, other than
38(G) Any radiological components or tracers injected into the
39well as part of, or in order to evaluate, the well stimulation
40treatment, a description of the recovery method, if any, for those
P9 1components or tracers, the recovery rate, and specific disposal
2information for recovered components or tracers.
3(H) The radioactivity of the recovered well stimulation fluids.
4(I) The location of the portion of the well subject
to the well
5stimulation treatment and the extent of the fracturing or other
6modification, if any, surrounding the well induced by the treatment.
7(c) (1) Through the consultation process described in paragraph
8(1) of subdivision (b), the division shall collaboratively identify
9and delineate the existing statutory authority and regulatory
10responsibility relating to well stimulation treatments and well
11stimulation treatment-related activities of the Department of Toxic
12Substances Control, the State Air Resources Board, any local air
13districts, the State Water Resources Control Board, the Department
14of Resources Recycling and Recovery, any regional water quality
15control board, and other public entities, as applicable. This shall
16include how the respective authority, responsibility, and
17notification and reporting requirements associated with well
18stimulation treatments and well stimulation treatment-related
19activities are divided among each public entity.
20(2) On or before January 1, 2015, the division shall enter into
21formal agreements with the Department of Toxic Substances
22Control, the State Air Resources Board, any local air districts where
23well stimulation treatments may occur, the State Water Resources
24Control Board, the Department of Resources Recycling and
25Recovery, and any regional water quality control board where well
26stimulation treatments may occur, clearly delineating respective
27authority, responsibility, and notification and reporting
28requirements associated with well stimulation treatments and well
29stimulation treatment-related activities, including air and water
30quality monitoring, in order to promote regulatory transparency
32(3) The agreements under paragraph (2) shall specify the
33appropriate public entity responsible for air and water quality
34monitoring and the safe disposal of materials in landfills, include
35trade secret handling protocols, if necessary, and provide for ready
36public access to information related to well stimulation treatments
37and related activities.
38(d) (1) Notwithstanding any other law or regulation, prior to
39performing a well stimulation treatment on a well, the operator
40shall apply for a permit to perform a well stimulation treatment
P10 1with the supervisor or district deputy. The permit application shall
2contain the pertinent data the supervisor requires on printed forms
3supplied by the division or on other forms acceptable to the
4supervisor. The information provided in the permit application
5shall include, but is not limited to, the following:
6(A) The well identification number and location.
7(B) The time period during which the well stimulation treatment
8is planned to occur.
9(C) An estimate of the amount of water to be used in the
10treatment and its source.
11(D) A complete list of the names, Chemical Abstract Service
12(CAS) numbers, and estimated concentrations, in percent by mass,
13of each and every chemical constituent of the well stimulation
14fluids planned to be used in the treatment. If a CAS number does
15not exist for a chemical constituent, the well owner or operator
16may provide another unique identifier, if available. Chemical
17information claimed as a trade secret, pursuant to subdivision (j),
18shall be identified as such and reported as described in subdivision
20(E) The planned location of the well stimulation treatment on
21the well bore, the estimated length, height, and direction of the
22induced fractures or other planned modification, if any, and the
23location of existing wells, including plugged and abandoned wells,
24that may be impacted by these fractures and modifications.
25(F) A groundwater monitoring plan. A groundwater monitoring
26plan is not required if the appropriate regional water quality control
27board confirms that the well subject to the proposed well
28stimulation treatment does not or will not penetrate or does not or
29will not influence an aquifer that is designated for a beneficial use.
30The groundwater monitoring plan shall include, at a minimum, all
31of the following information:
32(i) The current water quality of the groundwater basin through
33which the well subject to the proposed well stimulation treatment
34is or will be drilled that is sufficient to characterize the quality of
35any aquifer through which the well is or will be drilled.
36(ii) An estimate of the zone of influence of the well subject to
37the proposed well stimulation treatment.
38(iii) Water quality data or a plan to obtain data regarding the
39presence and concentration of the constituents to be used in, or
P11 1that can be influenced by, the well subject to the proposed well
3(iv) A plan that specifies sites for monitoring wells designed to
4detect contamination due to operation of the well subject to the
5proposed well stimulation treatment until the well is plugged and
6abandoned. The plan shall also include provisions for emergency
7implementation in the event of well or well casing failure or other
8event with the potential to contaminate groundwater.
9(G) A waste and wastewater disposal plan.
10(2) (A) The supervisor or district deputy shall review the well
11stimulation treatment permit application and may approve the
12permit if the application is complete.
13(B) A well stimulation treatment or repeat well stimulation
14treatment shall not be performed on any well without a valid permit
15that the supervisor or district deputy has approved.
16(C) A permit describing a well stimulation treatment that
17presents unreasonable risk or is incomplete shall not be approved.
18(3) The well stimulation treatment shall be completed within
19one year of the issuance of the permit.
20(4) Within five business days of issuing a permit to perform a
21well stimulation treatment, the division shall provide a copy of the
22permit to the appropriate regional water quality control board or
23boards and to the local planning entity where the well, including
24its subsurface portion, is located. The division shall also post the
25permit on the publicly accessible portion of its Internet Web site
26within five business days of issuing a permit.
27(5) (A) The division shall provide a copy of the approved well
28stimulation treatment permit and information on the water sampling
29and testing available through the regional water quality control
30board to every tenant of the surface property and every surface
31property owner or authorized agent of that owner whose property
32line location is one of the following:
33(i) Within a 1,500 foot radius of the wellhead.
34(ii) Within 500 feet from the horizontal projection of all
35subsurface portions of the designated well to the surface.
36(B) A well stimulation treatment shall not commence before 30
37calendar days after the permit copies pursuant to subparagraph (A)
39(6) (A) A property owner notified pursuant to paragraph (5)
40may request the regional water quality control board to perform,
P12 1and the regional water quality control board or its contractors shall
2perform, water quality sampling and testing on any water well
3suitable for drinking or irrigation purposes and on any surface
4water suitable for drinking or irrigation purposes as follows:
5(i) Baseline measurements prior to the commencement of the
6 well stimulation treatment.
7(ii) Followup measurements after the well stimulation treatment
8on the same schedule as the pressure testing of the well casing of
9the treated well.
10(B) The regional water quality control board may contract with
11an independent third party that adheres to board-specified standards
12and protocols to perform the water sampling and testing.
13(C) A tenant notified pursuant to paragraph (5) shall receive
14information on the results of the water testing to the extent
15authorized by his or her lease and, where the tenant has lawful use
16of the ground or surface water identified in subparagraph (A), the
17tenant may independently contract for similar groundwater or
18surface water testing.
19(7) If warranted, the regional water quality control board shall
20have the authority to retain an appropriately prepared and stored
21baseline sample or samples collected pursuant to paragraph (6) for
22as long as the planned analytical method or methods would provide
24(8) The division shall retain a list of the entities and property
25owners notified pursuant to paragraphs (4) and (5).
26(9) The operator shall provide notice to the division at least 72
27hours prior to the actual start of the well stimulation treatment in
28order for the division to witness the treatment.
29(e) The Secretary of the Natural Resources Agency shall notify
30the Joint Legislative Budget Committee and the chairs of the
31Assembly Natural Resources, Senate Environmental Quality, and
32Senate Natural Resources and Water Committees on the progress
33of the independent scientific study on well stimulation and related
34activities. The first progress report shall be provided to the
35Legislature on or before April 1, 2014, and progress reports shall
36continue every four months thereafter until the independent study
37is completed, including a peer review of the study by independent
39(f) If a well stimulation treatment is performed on a well, a
40supplier that performs any part of the stimulation or provides
P13 1additives directly to the operator for a well stimulation treatment
2shall furnish the operator with information needed for the operator
3to comply with subdivision (g). If a supplier claims trade secret
4protection pursuant to subdivision (j), the supplier shall notify the
5operator and provide to the operator substitute information, as
6described in subdivision (j), suitable for public disclosure. This
7information shall be provided as soon as possible but no later than
830 days following the conclusion of the well stimulation treatment.
9(g) (1) Within 60 days following cessation of a well stimulation
10treatment on a well, the operator shall post or cause to have posted
11to an Internet Web site designated or maintained by the division
12and accessible to the public, all of the well stimulation fluid
13composition and disposition information required to be collected
14pursuant to rules and regulations adopted under subdivision (b),
15including well identification number and location. This shall
16include the collected water quality data, which the operator shall
17report electronically to the State Water Resources Control Board.
18(2) The division’s Internet Web site shall be operational on or
19before January 1, 2016, and the division may direct reporting to
20an alternative Internet Web site developed by the Ground Water
21Protection Council and the Interstate Oil and Gas Compact
22Commission in the interim. The reported information shall be
23organized on the division’s Internet Web site in a format, such as
24a spreadsheet, that allows the public to easily search and aggregate,
25to the extent practicable, each type of information required to be
26collected pursuant to subdivision (b) using search functions on
27that Internet Web site.
28(h) The operator is responsible for compliance with this section.
29(i) (1) All geologic features within a distance reflecting an
30appropriate safety factor of the fracture zone for well stimulation
31treatments that fracture the formation and that have the potential
32to either limit or facilitate the migration of fluids outside of the
33fracture zone shall be identified and added to the well history.
34Geologic features include, but are not limited to, seismic faults.
35(2) For the purposes of this section, the “fracture zone” is
36defined as the volume surrounding the well bore where fractures
37were created or enhanced by the well stimulation treatment. The
38safety factor shall be at least five and may vary depending upon
P14 1(j) (1) The supplier may claim trade secret protection for the
2chemical composition of additives, whose use is not otherwise
3prohibited by law, pursuant to Section 1060 of the Evidence Code,
4or the Uniform Trade Secrets Act (Title 5 (commencing with
5Section 3426) of Part 1 of Division 4 of the Civil Code).
6(2) If a supplier believes that information regarding a chemical
7constituent of a well stimulation fluid is a trade secret, the supplier
8shall nevertheless disclose the information to the division in
9conjunction with a well stimulation treatment permit application,
10if not previously disclosed, within 30 days following cessation of
11well stimulation on a well, and shall notify the division in writing
12of that belief.
13(3) In order to substantiate the trade secret claim to the division,
14the supplier shall provide the following information to the division:
15(A) The extent to which the information is known outside the
16business of the supplier submitting the information, and whether
17or not all individuals with that knowledge are bound by
19(B) The extent to which the information is known by the
20supplier’s employees and others involved in the supplier’s business,
21and whether or not all those individuals are bound by nondisclosure
23(C) The extent of measures taken by the supplier to restrict
24access to and guard the secrecy of the information, and whether
25or not the supplier plans to continue utilizing those measures.
26(D) The estimated value of the information to the supplier and
28(E) The estimated amount of effort and money expended by the
29supplier in developing the information, and a description of the
30nature and extent of harm that would be caused if the information
31were made public.
32(F) The estimated ease or difficulty with which the information
33could be properly acquired or duplicated by others, and an
34explanation of why the chemical identity is not readily discoverable
35through reverse engineering.
36(G) Copies of, or references to, any pertinent trade secret or
37other confidentiality determinations previously made by the
38division or other public agencies, including court orders or
P15 1(4) If the
division determines that the information provided in
2support of a request for trade secret protection pursuant to
3paragraph (3) is incomplete, the division shall notify the supplier
4and the supplier shall have 30 days to complete the submission.
5An incomplete submission does not meet the substantive criteria
6for trade secret designation.
7(5) If the division determines that the information provided in
8support of a request for trade secret protection does not meet the
9substantive criteria for trade secret designation, the department
10shall notify the supplier by certified mail of its determination. The
11division shall release the information to the public, but not earlier
12than 60 days after the date of mailing the determination, unless,
13prior to the expiration of the 60-day period, the supplier obtains
14an action in an appropriate court for a declaratory judgment that
15the information is subject to protection or for a preliminary
16injunction prohibiting disclosure of the information to the public
17and provides notice to the division of the court order. If no order
18or declaratory judgment is obtained, the division shall release the
19information to the public by revising the information provided
20pursuant to subdivision (g).
21(6) The supplier is not required to disclose trade secret
22information to the operator.
23(7) This subdivision does not permit a supplier to refuse to
24disclose the information required pursuant to this section to the
26(8) To comply with the public disclosure requirements of this
27section, the supplier shall indicate where trade secret information
28has been withheld and provide substitute information for public
29disclosure. The substitute information shall be a list, in any order,
30of the chemical constituents of the additive, including CAS
31identification numbers, whose specific composition is a trade
32secret. Information on the relative amounts or concentration of the
33constituents of additives whose specific composition is a trade
34secret shall not be publicly disclosed. The division shall review
35and approve the supplied substitute information.
36(9) Except as provided in subparagraph (B) of paragraph (11),
37the division shall protect from disclosure any trade secret claimed
38by the supplier, if that trade secret is not a public record.
39(10) The supplier shall notify the division in writing within 30
40days of any changes to information provided to the division to
P16 1support a trade secret claim, including if the information is no
2longer a trade secret.
3(11) Upon receipt of a request for the release of information to
4the public, which includes information the supplier has notified
5the division is a trade secret and is not a public record, the
6following procedure applies:
7(A) The division shall notify the supplier of the request in
8writing by certified mail, return receipt requested.
9(B) The division shall release the information to the public, but
10not earlier than 60 days after the date of mailing the notice of the
11request for information, unless, prior to the expiration of the 60-day
12period, the supplier obtains an action in an appropriate court for a
13declaratory judgment that the information is subject to protection
14or for a preliminary injunction prohibiting disclosure of the
15information to the public and provides notice to the division of
17(12) (A) Except as provided in subparagraph (B) of paragraph
18 (11), trade secret information is not a public record and shall not
19be disclosed to anyone except to an officer or employee of the
20division, the state, local governments, including, but not limited
21to, local air districts, or the United States, in connection with the
22official duties of that officer or employee, to a health professional
begin delete if the requirements of subparagraph (B) are met,end delete under any law
24for the protection of health, or to contractors with the division or
25other government entities and their employees if, in the opinion
26of the division, disclosure is necessary and required for the
27satisfactory performance of a contract, for performance of work,
28or to protect health and safety.
29(B) In order to receive trade secret information, a health
30professional shall have a reasonable basis to suspect
begin delete all of the
32(i) The information is needed for purposes of diagnosis or
33treatment of a patient.
34(ii) The patient being diagnosed or treated has been exposed to
35one or more chemicals subject to trade secret nondisclosure.
36(iii) Knowledge of the specific chemical identity of the chemical
37or chemicals will assist in diagnosis or treatment of the patient.
38(C) A health professional may share trade secret information
39with other persons as may be professionally necessary, in order to
40diagnose or treat a patient, including, but not limited to, the patient
P17 1and other health professionals, subject to state and federal laws
2restricting disclosure of medical records including, but not limited
3to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
4Division 1 of the Civil Code.
5(D) The division shall develop a procedure for the timely
6disclosure of trade secret information in the event of an emergency
7or to diagnose or treat a patient pursuant to this subdivision.
8(E) Confidentiality of trade secret information from public
9disclosure shall be maintained by those who receive trade secret
10information pursuant to the provisions of this subdivision, subject
11to the enforcement provisions of this division, and any additional
12 applicable state and federal law.
13(F) For purposes of this paragraph, “health professional” means
14any person licensed or certified pursuant to Division 2
15(commencing with Section 500) of the Business and Professions
16Code, the Osteopathic Initiative Act, the Chiropractic Initiative
17Act, or the Emergency Medical Services System and the
18Prehospital Emergency Medical Care Personnel Act (Division 2.5
19(commencing with Section 1797) of the Health and Safety Code).
20(13) (A) The supplier shall provide trade secret information in
21order to protect public health to any health professional,
22toxicologist, or epidemiologist who is employed in the field of
23public health and who provides a written statement of need and
24confidentiality agreement. The written statement of need shall
25include the public health purposes and shall explain the reason the
26disclosure of the specific chemical and its concentration is required
27in lieu of information describing the properties and effects of the
29(B) Confidentiality of trade secret information from public
30disclosure shall be maintained by those who receive trade secret
31information pursuant to the provisions of this paragraph subject
32to the enforcement provisions of this division and any additional
33applicable state and federal law.
34(k) This section does not apply to routine pressure tests to
35monitor the integrity of wells and well casings.
36(l) A well granted confidential status pursuant to Section 3234
37shall comply with this section, with the exception of the disclosure
38of well stimulation fluids pursuant to subdivision (g) which shall
39not be required until the confidential status of the well ceases.
P18 1(m) The division shall perform random periodic spot check
2inspections to ensure that the information provided on well
3stimulation treatments is accurately reported, including that the
4estimates provided prior to the commencement of the well
5stimulation treatment are reasonably consistent with the well
7(n) Where the division shares jurisdiction over a well or the
8 well stimulation treatment on a well with a federal entity, the
9division’s rules and regulations shall apply in addition to all
10applicable federal law and regulations.
11(o) This article does not relieve the division or any other agency
12from complying with any other provision of existing law.
Section 3213 of the Public Resources Code is amended
The history shall show the location and amount of
16sidetracked casings, tools, or other material, the depth and quantity
17of cement in cement plugs, the shots of dynamite or other
18explosives, and the results of production and other tests during
19drilling operations. All data on well stimulation treatments pursuant
20to 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,
24rework, well stimulation treatment, or abandonment operations,
25or the date of suspension of operations, the operator shall file with
26the district deputy, in a form approved by the supervisor, true
27copies of the log, core record, and history of work performed, and,
28if made, true and reproducible copies of all electrical, physical, or
29chemical logs, tests, or surveys. Upon a showing of hardship, the
30supervisor may extend the time within which to comply with this
31section for a period not to exceed 60 additional days.
32(b) The supervisor shall include information or electronic links
33to information provided pursuant to subdivision (g) of Section
343160 on existing publicly accessible maps on the division’s Internet
35Web site, and make the information available such that well
36stimulation treatment and related information are associated with
37each specific well. If data is reported on an Internet Web site not
38maintained by the division pursuant to paragraph (2) of subdivision
39(g) of Section 3160, the division shall provide electronic links to
40that Internet Web site. The public shall be able to search and sort
P19 1the hydraulic well stimulation and related information by at least
2the following criteria:
3(1) Geographic area.
5(3) Chemical constituent.
6(4) Chemical Abstract Service number.
7(5) Time period.
9(c) Notwithstanding Section 10231.5 of the Government Code,
10on or before January 1, 2016, and annually thereafter, the
11supervisor shall, in compliance with Section 9795 of the
12Government Code, prepare and transmit to the Legislature a
13comprehensive report on well stimulation treatments in the
14exploration and production of oil and gas resources in California.
15The report shall include aggregated data of all of the information
16required to be reported pursuant to Section 3160 reported by the
17district, county, and operator. The report also shall include relevant
18additional information, as necessary, including, but not limited to,
19all the following:
20(1) Aggregated data detailing the disposition of any produced
21water from wells that have undergone well stimulation treatments.
22(2) Aggregated data describing the formations where wells have
23received well stimulation treatments including the range of safety
24factors used and fracture zone lengths.
25(3) The number of emergency responses to a spill or release
26associated with a well stimulation treatment.
27(4) Aggregated data detailing the number of times trade secret
28information was not provided to the public, by county and by each
29company, in the preceding year.
30(5) Data detailing the loss of
well and well casing integrity in
31the preceding year for wells that have undergone well stimulation
32treatment. For comparative purposes, data detailing the loss of
33well and well casing integrity in the preceding year for all wells
34shall also be provided. The cause of each well and well casing
35failure, if known, shall also be provided.
36(6) The number of spot check inspections conducted pursuant
37to subdivision (m) of Section 3160, including the number of
38inspections where the composition of well stimulation fluids were
39verified and the results of those inspections.
P20 1(7) The number of well stimulation treatments witnessed by the
3(8) The number of enforcement actions associated with well
4stimulation treatments, including, but not limited to, notices of
5deficiency, notices of violation, civil or criminal enforcement
6actions, and any penalties assessed.
7(d) The report shall be made publicly available and an electronic
8version shall be available on the division’s Internet Web site.
Section 3236.5 of the Public Resources Code is
10amended to read:
(a) A person who violates this chapter or a regulation
12implementing this chapter is subject to a civil penalty not to exceed
13twenty-five thousand dollars ($25,000) for each violation. A person
14who commits a violation of Article 3 (commencing with Section
153150) is subject to a civil penalty of not less than ten thousand
16dollars ($10,000) and not to exceed twenty-five thousand dollars
17($25,000) per day per violation. An act of God and an act of
18vandalism beyond the reasonable control of the operator shall not
19be considered a violation. The civil penalty shall be imposed by
20an order of the supervisor pursuant to Section 3225 upon a
21determination that a violation has been committed by the person
22charged. The imposition of a civil penalty under this section shall
23be in addition to any other penalty provided by law for the
24violation. When establishing the amount of the civil penalty
25pursuant to this section, the supervisor shall consider, in addition
26to other relevant circumstances, all of the following:
27(1) The extent of harm caused by the violation.
28(2) The persistence of the violation.
29(3) The pervasiveness of the violation.
30(4) The number of prior violations by the same violator.
31(b) An order of the supervisor imposing a civil penalty shall be
32reviewable pursuant to Article 6 (commencing with Section 3350).
33When the order of the supervisor has become final and the penalty
34has not been paid, the supervisor may apply to the appropriate
35superior court for an order directing payment of the civil penalty.
36The supervisor may also seek from the court an order directing
37that production from the well or use of the production facility that
38is the subject of the civil penalty order be discontinued until the
39violation has been remedied to the satisfaction of the supervisor
40and the civil penalty has been paid.
P21 1(c) Any amount collected under this section shall be deposited
2in the Oil, Gas, and Geothermal Administrative Fund.
Section 3401 of the Public Resources Code is amended
(a) The proceeds of charges levied, assessed, and
6collected pursuant to this article upon the properties of every person
7operating or owning an interest in the production of a well shall
8be used exclusively for the support and maintenance of the
9department charged with the supervision of oil and gas operations.
10(b) Notwithstanding subdivision (a), the proceeds of charges
11levied, assessed, and collected pursuant to this article upon the
12properties of every person operating or owning an interest in the
13production of a well undergoing a well stimulation treatment, may
14be used by public entities, subject to appropriation by the
15Legislature, for all costs associated with
begin delete wellend delete
16 stimulation treatments including scientific studies
17required to evaluate the treatment, inspections, and any air and
18water quality sampling, monitoring, and testing performed by
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