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 (A) well stimulation treatments, including scientific studies required to evaluate the treatment, inspections, and any air and water quality sampling, monitoring, and testing performed by public entities, and (B) the development and implementation of specific consultation processes and agreements.
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
3(a) The 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. Other well
6stimulation treatments, in addition to hydraulic fracturing, are also
7critical to boosting oil and gas production.
8(b) Insufficient information is available to fully assess the
9science of the practice of hydraulic fracturing and other well
10stimulation treatment technologies in California, including
11environmental, occupational, and public health hazards and risks.
12(c) Providing transparency and accountability to the public
13regarding well stimulation treatments, including, but not limited
14to, hydraulic fracturing, associated emissions to the environment,
15and 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
begin delete recovery, including, but not limited to, hydraulic . Well stimulation
12fracturing and acid well stimulationend delete
13treatments include, but are not limited to, hydraulic fracturing
14treatments and acid well stimulation treatments. Well stimulation
15treatments do not include steam flooding, water flooding, or cyclic
“Acid well stimulation treatment” means a well
20stimulation treatment that uses, in whole or in part, the application
21of one or more acids to the well or underground geologic formation
22with the intent to cause or enhance the production of oil or gas
23from a well. The acid well stimulation treatment may be at any
24applied pressure and may be used in combination with hydraulic
25fracturing treatments or other well stimulation treatments.
(a) On or before January 1, 2015, the Secretary of the
27Natural Resources Agency shall cause to be conducted an
28independent scientific study on well stimulation treatments,
29including, but not limited to, hydraulic fracturing and acid well
30stimulation treatments. The scientific study shall evaluate the
31hazards and risks and potential hazards and risks that well
32stimulation treatments pose to natural resources and public,
33occupational, and environmental health and safety. The scientific
34study shall do all of the following:
35(1) Follow the well-established standard protocols of the
36scientific profession, including, but not limited to, the use of
37recognized experts, peer review, and publication.
38(2) Identify areas with existing and potential conventional and
39unconventional oil and gas reserves where well stimulation
P7 1treatments are likely to spur or enable oil and gas exploration and
3(3) (A) Evaluate all aspects of hydraulic fracturing, including,
4but not limited to, the hydraulic fracturing treatment, additive and
5water transportation to and from the well site, mixing and handling
6of the hydraulic fracturing fluids and additives onsite, the use and
7potential for use of nontoxic additives and the use or reuse of
8treated or produced water in hydraulic fracturing fluids, wastewater
9and waste hydraulic fracturing fluid handling, treatment, and
11(B) Evaluate all aspects of acid well stimulation treatments,
12including the use and potential use of large-scale acidization
13treatments and waste handling, treatment, and disposal.
14(4) Consider, at a minimum, atmospheric emissions, including
15potential greenhouse gas emissions, the potential degradation of
16air quality, potential impacts on wildlife, native plants, and habitat,
17potential water and surface contamination, potential noise pollution,
18induced seismicity, and the ultimate disposition, transport,
19transformation, and toxicology of well stimulation treatments,
20including acid well stimulation fluids, hydraulic fracturing fluids,
21and waste hydraulic fracturing fluids and acid well stimulation in
23(5) Include a hazard assessment and risk analysis addressing
24 occupational and environmental exposures to well stimulation
25treatments, including hydraulic fracturing treatments, hydraulic
26fracturing treatment-related processes, acid well stimulation
27treatments, acid well stimulation treatment-related processes, and
28the corresponding impacts on public health and safety with the
29participation of the Office of Environmental Health Hazard
31(6) Clearly identify where additional information is necessary
32to inform and improve the analyses.
33(b) (1) On or before January 1, 2015, the division, in
34consultation with the Department of Toxic Substances Control,
35the State Air Resources Board, the State Water Resources Control
36Board, the Department of Resources Recycling and Recovery, and
37any local air districts and regional water quality control boards in
38areas where well stimulation treatments, including acid well
39stimulation treatments and hydraulic fracturing treatments may
40occur, shall adopt rules and regulations specific to well stimulation
P8 1treatments. The rules and regulations shall include, but are not
2limited to, revisions, as needed, to the rules and regulations
3governing construction of wells and well casings to ensure integrity
4of wells, well casings, and the geologic and hydrologic isolation
5of the oil and gas formation during and following well stimulation
6treatments, and full disclosure of the composition and disposition
7of well stimulation fluids, including, but not limited to, hydraulic
8fracturing fluids, acid well stimulation fluids, and waste hydraulic
9fracturing and acid stimulation fluids.
10(2) Full disclosure of the composition
and disposition of well
11stimulation fluids, including, but not limited to, hydraulic fracturing
12fluids and acid stimulation treatment fluids, shall, at a minimum,
14(A) The date of the well stimulation treatment.
15(B) A complete list of the names, Chemical Abstract Service
16(CAS) numbers, and maximum concentration, in percent by mass,
17of each and every chemical constituent of the well stimulation
18treatment fluids used. If a CAS number does not exist for a
19chemical constituent, the well owner or operator may provide
20another unique identifier, if available. Chemical information
21claimed as a trade secret, pursuant to subdivision (j), shall be
22identified as such and reported as described in subdivision (j).
trade name, the supplier, and a brief description of the
24intended purpose of each additive contained in the well stimulation
26(D) The total volume of base fluid used during the well
27stimulation treatment, and the identification of whether the base
28fluid is water suitable for irrigation or domestic purposes, water
29not suitable for irrigation or domestic purposes, or a fluid other
31(E) The source, volume, and specific composition and
32disposition of all water, including, but not limited to, all water
33used as base fluid during the well stimulation treatment and
34recovered from the well following the well stimulation treatment
35that is not otherwise reported as produced water pursuant to Section
363227. Any repeated reuse of treated or untreated water for well
37stimulation treatments and well stimulation treatment-related
38activities shall be identified.
P9 1(F) The specific composition and disposition of all well
2stimulation treatment fluids, including waste fluids, other than
4(G) Any radiological components or tracers injected into the
5well as part of, or in order to evaluate, the well stimulation
6treatment, a description of the recovery method, if any, for those
7components or tracers, the recovery rate, and specific disposal
8information for recovered components or tracers.
9(H) The radioactivity of the recovered well stimulation fluids.
10(I) The location of the portion of the well subject to the well
11stimulation treatment and the extent of the fracturing or other
12modification, if any, surrounding the well induced by the treatment.
13(c) (1) Through the consultation process described in paragraph
14(1) of subdivision (b), the division shall collaboratively identify
15and delineate the existing statutory authority and regulatory
16responsibility relating to well stimulation treatments and well
17stimulation treatment-related activities of the Department of Toxic
18Substances Control, the State Air Resources Board, any local air
19districts, the State Water Resources Control Board, the Department
20of Resources Recycling and Recovery, any regional water quality
21control board, and other public entities, as applicable. This shall
22include how the respective authority, responsibility, and
23notification and reporting requirements associated with well
24stimulation treatments and well stimulation treatment-related
25activities are divided among each public entity.
26(2) On or before January 1, 2015, the division shall enter into
27formal agreements with the Department of Toxic Substances
28Control, the State Air Resources Board, any local air districts where
29well stimulation treatments may occur, the State Water Resources
30Control Board, the Department of Resources Recycling and
31Recovery, and any regional water quality control board where well
32stimulation treatments may occur, clearly delineating respective
33authority, responsibility, and notification and reporting
34requirements associated with well stimulation treatments and well
35stimulation treatment-related activities, including air and water
36quality monitoring, in order to promote regulatory transparency
38(3) The agreements under paragraph (2) shall specify the
39appropriate public entity responsible for air and water quality
40monitoring and the safe disposal of materials in landfills, include
P10 1trade secret handling protocols, if necessary, and provide for ready
2public access to information related to well stimulation treatments
3and related activities.
4(d) (1) Notwithstanding any other law or regulation, prior to
5performing a well stimulation treatment on a well, the operator
6shall apply for a permit to perform a well stimulation treatment
7with the supervisor or district deputy. The permit application shall
8contain the pertinent data the supervisor requires on printed forms
9supplied by the division or on other forms acceptable to the
10supervisor. The information provided in the permit application
11shall include, but is not limited to, the following:
12(A) The well identification number and location.
13(B) The time period during which the well stimulation treatment
14is planned to occur.
15(C) An estimate of the amount of water to be used in the
16treatment and its source.
27(D) A complete list of the names, Chemical Abstract Service
28(CAS) numbers, and estimated concentrations, in percent by mass,
29of each and every chemical constituent of the well stimulation
begin delete plannedend delete
to be used in the treatment. If a CAS
31number does not exist for a chemical constituent, the well owner
32or operator may provide another unique identifier, if available.
33Chemical information claimed as a trade secret, pursuant to
34subdivision (j), shall be identified as such and reported as described
35in subdivision (j).
36(E) The planned location of the well stimulation treatment on
37the well bore, the estimated length, height, and direction of the
38induced fractures or other planned modification, if any, and the
39location of existing wells, including plugged and abandoned wells,
40that may be impacted by these fractures and modifications.
P11 1(F) A groundwater monitoring plan. A groundwater monitoring
2plan is not required if the appropriate regional water quality control
3board confirms that the well subject to the proposed well
4stimulation treatment does not or will not penetrate or does not or
5will not influence an aquifer that is designated for a beneficial use.
6The groundwater monitoring plan shall include, at a minimum, all
7of the following information:
8(i) The current water quality of the groundwater basin through
9which the well subject to the proposed well stimulation treatment
10is or will be drilled that is sufficient to characterize the quality of
11any aquifer through which the well is or will be drilled.
12(ii) An estimate of the zone of influence of the well subject to
13the proposed well stimulation treatment.
14(iii) Water quality data or a plan to obtain data regarding the
15presence and concentration of the constituents to be used in, or
16that can be influenced by, the well subject to the proposed well
18(iv) A plan that specifies sites for monitoring wells designed to
19detect contamination due to operation of the well subject to the
20proposed well stimulation treatment until the well is plugged and
21abandoned. The plan shall also include provisions for emergency
22implementation in the event of well or well casing failure or other
23event with the potential to contaminate groundwater.
24(G) A waste and wastewater disposal plan.end delete
28(2) (A) The supervisor or district deputy shall review the well
29stimulation treatment permit application and may approve the
30permit if the application is complete.
31(B) A well stimulation treatment or repeat well stimulation
32treatment shall not be performed on any well without a valid permit
33that the supervisor or district deputy has approved.
34(C) A permit describing a well stimulation treatment that
35presents unreasonable risk or is incomplete shall not be approved.
36(3) The well stimulation 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
39well stimulation treatment, the division shall provide a copy of the
40permit to the appropriate regional water quality control board or
P12 1boards and to the local planning entity where the well, including
2its subsurface portion, is located. The division shall also post the
3permit on the publicly accessible portion of its Internet Web site
4within five business days of issuing a permit.
5(5) (A) The division shall provide a copy of the approved well
6stimulation treatment permit and information on the water sampling
7and testing available through the regional water quality control
8board to every tenant of the surface property and every surface
9property owner or authorized agent of that owner whose property
10line location is one of the following:
11(i) Within a 1,500 foot radius of the wellhead.
12(ii) Within 500 feet from the horizontal projection of all
13subsurface portions of the designated well to the surface.
14(B) A well stimulation treatment shall not commence before 30
15calendar days after the permit copies pursuant to subparagraph (A)
17(6) (A) A property owner notified pursuant to paragraph (5)
18may request the regional water quality control board to perform,
19and the regional water quality control board or its contractors shall
20perform, water quality sampling and testing on any water well
21suitable for drinking or irrigation purposes and on any surface
22water suitable for drinking or irrigation purposes as follows:
23(i) Baseline measurements prior to the commencement of the
24 well stimulation treatment.
25(ii) Followup measurements after the well stimulation treatment
26on the same schedule as the pressure testing of the well casing of
27the treated well.
28(B) The regional water quality control board may contract with
29an independent third party that adheres to board-specified standards
30and protocols to perform the water sampling and testing.
31(C) A tenant notified pursuant to paragraph (5) shall receive
32information on the results of the water testing to the extent
33authorized by his or her lease and, where the tenant has lawful use
34of the ground or surface water identified in subparagraph (A), the
35tenant may independently contract for similar groundwater or
36surface water testing.
37(7) If warranted, the regional water quality control board shall
38have the authority to retain an appropriately prepared and stored
39baseline sample or samples collected pursuant to paragraph (6) for
P13 1as long as the planned analytical method or methods would provide
3(8) The division shall retain a list of the entities and property
4owners notified pursuant to paragraphs (4) and (5).
5(9) The operator shall provide notice to the division at least 72
6hours prior to the actual start of the well stimulation treatment in
7order for the division to witness the treatment.
8(e) The Secretary of the Natural Resources Agency shall notify
9the Joint Legislative Budget Committee and the chairs of the
10Assembly Natural Resources, Senate Environmental Quality, and
11Senate Natural Resources and Water Committees on the progress
12of the independent scientific study on well stimulation and related
13activities. The first progress report shall be provided to the
14Legislature on or before April 1, 2014, and progress reports shall
15continue every four months thereafter until the independent study
16is completed, including a peer review of the study by independent
18(f) If a well stimulation treatment is performed on a well, a
19supplier that performs any part of the stimulation or provides
20additives directly to the operator for a well stimulation treatment
21shall furnish the operator with information needed for the operator
22to comply with subdivision (g). If a supplier claims trade secret
23protection pursuant to subdivision (j), the supplier shall notify the
24operator and provide to the operator substitute information, as
25described in subdivision (j), suitable for public disclosure. This
26information shall be provided as soon as possible but no later than
2730 days following the conclusion of the well stimulation treatment.
28(g) (1) Within 60 days following cessation of a well stimulation
29treatment on a well, the operator shall post or cause to have posted
30to an Internet Web site designated or maintained by the division
31and accessible to the public, all of the well stimulation fluid
32composition and disposition information required to be collected
33pursuant to rules and regulations adopted under subdivision (b),
34including well identification number and location. This shall
35include the collected water quality data, which the operator shall
36report electronically to the State Water Resources Control Board.
37(2) The division’s Internet Web site shall be operational on or
38before January 1, 2016, and the division may direct reporting to
39an alternative Internet Web site developed by the Ground Water
40Protection Council and the Interstate Oil and Gas Compact
P14 1Commission in the interim. The reported information shall be
2organized on the division’s Internet Web site in a format, such as
3a spreadsheet, that allows the public to easily search and aggregate,
4to the extent practicable, each type of information required to be
5collected pursuant to subdivision (b) using search functions on
6that Internet Web site.
7(h) The operator is responsible for compliance with this section.
8(i) (1) All geologic features within a distance reflecting an
9appropriate safety factor of the fracture zone for well stimulation
10treatments that fracture the formation and that have the potential
11to either limit or facilitate the migration of fluids outside of the
12fracture zone shall be identified and added to the well history.
13Geologic features include, but are not limited to, seismic faults.
14(2) For the purposes of this section, the “fracture zone” is
15defined as the volume surrounding the well bore where fractures
16were created or enhanced by the well stimulation treatment. The
17safety factor shall be at least five and may vary depending upon
19(j) (1) The supplier may claim trade secret protection for the
20chemical composition of additives, whose use is not otherwise
21prohibited by law, pursuant to Section 1060 of the Evidence Code,
22or the Uniform Trade Secrets Act (Title 5 (commencing with
23Section 3426) of Part 1 of Division 4 of the Civil Code).
24(2) If a supplier believes that information regarding a chemical
25constituent of a well stimulation fluid is a trade secret, the supplier
26shall nevertheless disclose the information to the division in
27conjunction with a well stimulation treatment permit application,
28if not previously disclosed, within 30 days following cessation of
29well stimulation on a well, and shall notify the division in writing
30of that belief.
31(3) In order to substantiate the trade secret claim to the division,
32the supplier shall provide the following information to the division:
33(A) The extent to which the information is known outside the
34business of the supplier submitting the information, and whether
35or not all individuals with that knowledge are bound by
37(B) The extent to which the information is known by the
38supplier’s employees and others involved in the supplier’s business,
39and whether or not all those individuals are bound by nondisclosure
P15 1(C) The extent of measures taken by the supplier to restrict
2access to and guard the secrecy of the information, and whether
3or not the supplier plans to continue utilizing those measures.
4(D) The estimated value of the information to the supplier and
6(E) The estimated amount of effort and money expended by the
7supplier in developing the information, and a description of the
8nature and extent of harm that would be caused if the information
9were made public.
10(F) The estimated ease or difficulty with which the information
11could be properly acquired or duplicated by others, and an
12explanation of why the chemical identity is not readily discoverable
13through reverse engineering.
14(G) Copies of, or references to, any pertinent trade secret or
15other confidentiality determinations previously made by the
16division or other public agencies, including court orders or
18(4) If the
division determines that the information provided in
19support of a request for trade secret protection pursuant to
20paragraph (3) is incomplete, the division shall notify the supplier
21and the supplier shall have 30 days to complete the submission.
22An incomplete submission does not meet the substantive criteria
23for trade secret designation.
24(5) If the division determines that the information provided in
25support of a request for trade secret protection does not meet the
26substantive criteria for trade secret designation, the department
27shall notify the supplier by certified mail of its determination. The
28division shall release the information to the public, but not earlier
29than 60 days after the date of mailing the determination, unless,
30prior to the expiration of the 60-day period, the supplier obtains
31an action in an appropriate court for a declaratory judgment that
32the information is subject to protection or for a preliminary
33injunction prohibiting disclosure of the information to the public
34and provides notice to the division of the court order. If no order
35or declaratory judgment is obtained, the division shall release the
36information to the public by revising the information provided
37pursuant to subdivision (g).
38(6) The supplier is not required to disclose trade secret
39information to the operator.
P16 1(7) This subdivision does not permit a supplier to refuse to
2disclose the information required pursuant to this section to the
4(8) To comply with the public disclosure requirements of this
5section, the supplier shall indicate where trade secret information
6 has been withheld and provide substitute information for public
7disclosure. The substitute information shall be a list, in any order,
8of the chemical constituents of the additive, including CAS
9identification numbers, whose specific composition is a trade
10secret. Information on the relative amounts or concentration of the
11constituents of additives whose specific composition is a trade
12secret shall not be publicly disclosed. The division shall review
13and approve the supplied substitute information.
14(9) Except as provided in subparagraph (B) of paragraph (11),
15the division shall protect from disclosure any trade secret claimed
16by the supplier, if that trade secret is not a public record.
17(10) The supplier shall notify the division in writing within 30
18days of any changes to information provided to the division to
19support a trade secret claim, including if the information is no
20longer a trade secret.
21(11) Upon receipt of a request for the release of information to
22the public, which includes information the supplier has notified
23the division is a trade secret and is not a public record, the
24following procedure applies:
25(A) The division shall notify the supplier of the request in
26writing by certified mail, return receipt requested.
27(B) The division shall release the information to the public, but
28not earlier than 60 days after the date of mailing the notice of the
29request for information, unless, prior to the expiration of the 60-day
30period, the supplier obtains an action in an appropriate court for a
31declaratory judgment that the information is subject to protection
32or for a preliminary injunction prohibiting disclosure of the
33information to the public and provides notice to the division of
35(12) (A) Except as provided in subparagraph (B) of paragraph
36 (11), trade secret information is not a public record and shall not
37be disclosed to anyone except to an officer or employee of the
38division, the state, local governments, including, but not limited
39to, local air districts, or the United States, in connection with the
40official duties of that officer or employee, to a health professional
P17 1under any law for the protection of health, or to contractors with
2the division or other government entities and their employees if,
3in the opinion of the division, disclosure is necessary and required
4for the satisfactory performance of a contract, for performance of
5work, or to protect health and safety.
6(B) In order to receive trade secret information, a health
7professional shall have a reasonable basis to suspect the
8information is needed to diagnose or treat a patient.
9(C) A health professional may share trade secret information
10with other persons as may be professionally necessary, in order to
11diagnose or treat a patient, including, but not limited to, the patient
12and other health professionals, subject to state and federal laws
13restricting disclosure of medical records including, but not limited
14to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
15Division 1 of the Civil Code.
16(D) The division shall develop a procedure for the timely
17disclosure of trade secret information in the event of an emergency
18or to diagnose or treat a patient pursuant to this subdivision.
19(E) Confidentiality of trade secret information from public
20disclosure shall be maintained by those who receive trade secret
21information pursuant to the provisions of this subdivision, subject
22to the enforcement provisions of this division, and any additional
23 applicable state and federal law.
24(F) For purposes of this paragraph, “health professional” means
25any person licensed or certified pursuant to Division 2
26(commencing with Section 500) of the Business and Professions
27Code, the Osteopathic Initiative Act, the Chiropractic Initiative
28Act, or the Emergency Medical Services System and the
29Prehospital Emergency Medical Care Personnel Act (Division 2.5
30(commencing with Section 1797) of the Health and Safety Code).
31(13) (A) The supplier shall provide trade secret information in
32order to protect public health to any health professional,
33toxicologist, or epidemiologist who is employed in the field of
34public health and who provides a written statement of need
begin delete and .
The written statement of need shall
35confidentiality agreementend delete
36include the public health purposes and shall explain the reason the
37disclosure of the specific chemical and its concentration is required
38in lieu of information describing the properties and effects of the
P18 1(B) Confidentiality of trade secret information from public
2disclosure shall be maintained by those who receive trade secret
3information pursuant to the provisions of this paragraph subject
4to the enforcement provisions of this division and any additional
5applicable state and federal law.
6(k) This section does not apply to routine pressure tests to
7monitor the integrity of wells and well casings.
9 A well granted confidential status pursuant to Section 3234
10shall comply with this section, with the exception of the disclosure
11of well stimulation fluids pursuant to subdivision (g) which shall
12not be required until the confidential status of the well ceases.
14 The division shall perform random periodic spot check
15inspections to ensure that the information provided on well
16stimulation treatments is accurately reported, including that the
17estimates provided prior to the commencement of the well
18stimulation treatment are reasonably consistent with the well
21 Where the division shares jurisdiction over a well or the
22 well stimulation treatment on a well with a federal entity, the
23division’s rules and regulations shall apply in addition to all
24applicable federal law and regulations.
26 This article does not relieve the division or any other agency
27from complying with any other provision of existing
begin delete lawend delete.
Section 3213 of the Public Resources Code is amended
The history shall show the location and amount of
32sidetracked casings, tools, or other material, the depth and quantity
33of cement in cement plugs, the shots of dynamite or other
34explosives, and the results of production and other tests during
35drilling operations. All data on well stimulation treatments pursuant
36to 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,
40rework, well stimulation treatment, or abandonment operations,
P19 1or the date of suspension of operations, the operator shall file with
2the district deputy, in a form approved by the supervisor, true
3copies of the log, core record, and history of work performed, and,
4if made, true and reproducible copies of all electrical, physical, or
5chemical logs, tests, or surveys. Upon a showing of hardship, the
6supervisor may extend the time within which to comply with this
7section for a period not to exceed 60 additional days.
8(b) The supervisor shall include information or electronic links
9to information provided pursuant to subdivision (g) of Section
103160 on existing publicly accessible maps on the division’s Internet
11Web site, and make the information available such that well
12stimulation treatment and related information are associated with
13each specific well. If data is reported on an Internet Web site not
14maintained by the division pursuant to paragraph (2) of subdivision
15(g) of Section 3160, the division shall provide electronic links to
16that Internet Web site. The public shall be able to search and sort
17the hydraulic well stimulation and related information by at least
18the following criteria:
19(1) Geographic area.
21(3) Chemical constituent.
22(4) Chemical Abstract Service number.
23(5) Time period.
25(c) Notwithstanding Section 10231.5 of the Government Code,
26on or before January 1, 2016, and annually thereafter, the
27supervisor shall, in compliance with Section 9795 of the
28Government Code, prepare and transmit to the Legislature a
29comprehensive report on well stimulation treatments in the
30exploration and production of oil and gas resources in California.
31The report shall include aggregated data of all of the information
32required to be reported pursuant to Section 3160 reported by the
33district, county, and operator. The report also shall include relevant
34additional information, as necessary, including, but not limited to,
35all the following:
36(1) Aggregated data detailing the disposition of any produced
37water from wells that have undergone well stimulation treatments.
38(2) Aggregated data describing the formations where wells have
39received well stimulation treatments including the range of safety
40factors used and fracture zone lengths.
P20 1(3) The number of emergency responses to a spill or release
2associated with a well stimulation treatment.
3(4) Aggregated data detailing the number of times trade secret
4information was not provided to the public, by county and by each
5company, in the preceding year.
6(5) Data detailing the loss of well and well casing integrity in
7the preceding year for wells that have undergone well stimulation
8treatment. For comparative purposes, data detailing the loss of
9well and well casing integrity in the preceding year for all wells
10shall also be provided. The cause of each well and well casing
11failure, if known, shall also be provided.
12(6) The number of spot check inspections conducted pursuant
begin delete (m)end delete of Section 3160, including the number of
14inspections where the composition of well stimulation fluids were
15verified and the results of those inspections.
16(7) The number of well stimulation treatments witnessed by the
18(8) The number of enforcement actions associated with well
19stimulation treatments, including, but not limited to, notices of
20deficiency, notices of violation, civil or criminal enforcement
21actions, and any penalties assessed.
22(d) The report shall be made publicly available and an electronic
23version shall be available on the division’s Internet Web site.
Section 3236.5 of the Public Resources Code is
25amended to read:
(a) A person who violates this chapter or a regulation
27implementing this chapter is subject to a civil penalty not to exceed
28twenty-five thousand dollars ($25,000) for each violation. A person
29who commits a violation of Article 3 (commencing with Section
303150) is subject to a civil penalty of not less than ten thousand
31dollars ($10,000) and not to exceed twenty-five thousand dollars
32($25,000) per day per violation. An act of God and an act of
33vandalism beyond the reasonable control of the operator shall not
34be considered a violation. The civil penalty shall be imposed by
35an order of the supervisor pursuant to Section 3225 upon a
36determination that a violation has been committed by the person
37charged. The imposition of a civil penalty under this section shall
38be in addition to any other penalty provided by law for the
39violation. When establishing the amount of the civil penalty
P21 1pursuant to this section, the supervisor shall consider, in addition
2to other relevant circumstances, all of the following:
3(1) The extent of harm caused by the violation.
4(2) The persistence of the violation.
5(3) The pervasiveness of the violation.
6(4) The number of prior violations by the same violator.
7(b) An order of the supervisor imposing a civil penalty shall be
8reviewable pursuant to Article 6 (commencing with Section 3350).
9When the order of the supervisor has become final and the penalty
10has not been paid, the supervisor may apply to the appropriate
11superior court for an order directing payment of the civil penalty.
12The supervisor may also seek from the court an order directing
13that production from the well or use of the production facility that
14is the subject of the civil penalty order be discontinued until the
15violation has been remedied to the satisfaction of the supervisor
16and the civil penalty has been paid.
17(c) Any amount collected under this section shall be deposited
18in the Oil, Gas, and Geothermal Administrative Fund.
Section 3401 of the Public Resources Code is amended
(a) The proceeds of charges levied, assessed, and
22collected pursuant to this article upon the properties of every person
23operating or owning an interest in the production of a well shall
24be used exclusively for the support and maintenance of the
25department charged with the supervision of oil and gas operations.
26(b) Notwithstanding subdivision (a), the proceeds of charges
27levied, assessed, and collected pursuant to this article upon the
28properties of every person operating or owning an interest in the
29production of a well undergoing a well stimulation treatment, may
30be used by public entities, subject to appropriation by the
31Legislature, for all costs associated with both of the following:
32(1) Well stimulation treatments, including scientific studies
33required to evaluate the treatment, inspections, and any air and
34water quality sampling, monitoring, and testing performed by
36(2) The development and implementation of the consultation
37process and agreements required pursuant to subdivisions (b) and
38(c) of Section 3160.
No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution because
P22 1the only costs that may be incurred by a local agency or school
2district will be incurred because this act creates a new crime or
3infraction, eliminates a crime or infraction, or changes the penalty
4for a crime or infraction, within the meaning of Section 17556 of
5the Government Code, or changes the definition of a crime within
6the meaning of Section 6 of Article XIII B of the California