BILL NUMBER: SB 4	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 19, 2013
	AMENDED IN ASSEMBLY  AUGUST 6, 2013
	AMENDED IN ASSEMBLY  JUNE 25, 2013
	AMENDED IN ASSEMBLY  JUNE 18, 2013
	AMENDED IN SENATE  MAY 24, 2013
	AMENDED IN SENATE  MAY 7, 2013
	AMENDED IN SENATE  APRIL 24, 2013
	AMENDED IN SENATE  MARCH 11, 2013

INTRODUCED BY   Senator Pavley
   (Principal coauthor: Assembly Member Gray)
   (Coauthors: Senators De León, Leno, and Monning)
   (Coauthors: Assembly Members Levine, Muratsuchi, Stone, and
Williams)

                        DECEMBER 3, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The hydraulic fracturing of oil and gas wells in combination
with technological advances in oil and gas well drilling are spurring
oil and gas extraction and exploration in California. Other well
stimulation treatments, in addition to hydraulic fracturing, are also
critical to boosting oil and gas production.
   (b) Insufficient information is available to fully assess the
science of the practice of hydraulic fracturing and other well
stimulation treatment technologies in California, including
environmental, occupational, and public health hazards and risks.
   (c) Providing transparency and accountability to the public
regarding well stimulation treatments, including, but not limited to,
hydraulic fracturing, associated emissions to the environment, and
the handling, processing, and disposal of well stimulation and
related wastes, including from hydraulic fracturing, is of paramount
concern.
   (d) The Legislature encourages the use or reuse of treated or
untreated water and produced water for well stimulation treatments
and well stimulation treatment-related activities.
  SEC. 2.  Article 3 (commencing with Section 3150) is added to
Chapter 1 of Division 3 of the Public Resources Code, to read:

      Article 3.  Well Stimulation


   3150.  "Additive" means a substance or combination of substances
added to a base fluid for purposes of preparing well stimulation
treatment fluid which includes, but is not limited to, an acid
stimulation treatment fluid or a hydraulic fracturing fluid. An
additive may, but is not required to, serve additional purposes
beyond the transmission of hydraulic pressure to the geologic
formation. An additive may be of any phase and includes proppants.
   3151.  "Base fluid" means the continuous phase fluid used in the
makeup of a well stimulation treatment fluid, including, but not
limited to, an acid stimulation treatment fluid or a hydraulic
fracturing fluid. The continuous phase fluid may include, but is not
limited to, water, and may be a liquid or a hydrocarbon or
nonhydrocarbon gas. A well stimulation treatment may use more than
one base fluid.
   3152.  "Hydraulic fracturing" means a well stimulation treatment
that, in whole or in part, includes the pressurized injection of
hydraulic fracturing fluid or fluids into an underground geologic
formation in order to fracture or with the intent to fracture the
formation, thereby causing or enhancing, for the purposes of this
division, the production of oil or gas from a well.
   3153.  "Hydraulic fracturing fluid" means a base fluid mixed with
physical and chemical additives for the purpose of hydraulic
fracturing. A hydraulic fracturing treatment may include more than
one hydraulic fracturing fluid.
   3154.  "Proppants" means materials inserted or injected into the
underground geologic formation that are intended to prevent fractures
from closing.
   3155.  "Supplier" means an entity performing a well stimulation
treatment or an entity supplying an additive or proppant directly to
the operator for use in a well stimulation treatment.
   3156.  "Surface property owner" means the owner of real property
as shown on the latest equalized assessment roll or, if more recent
information than the information contained on the assessment roll is
available, the owner of record according to the county assessor or
tax collector.
   3157.  For purposes of this article, "well stimulation treatment"
means any treatment of a well designed to enhance oil and gas
production or  recovery, including, but not limited to,
hydraulic fracturing and acid well stimulation  
recovery  . Well stimulation treatments include, but are not
limited to, hydraulic fracturing treatments and acid well stimulation
treatments. Well stimulation treatments do not include steam
flooding, water flooding, or cyclic steaming  and do not include
routine well cleanout work, routine well   maintenance,
bottom hole pressure surveys, or routine activities that do not
affect the integrity of the well or the formation  .
   3158.  "Acid well stimulation treatment" means a well stimulation
treatment that uses, in whole or in part, the application of one or
more acids to the well or underground geologic formation with the
intent to cause or enhance the production of oil or gas from a well.
The acid well stimulation treatment may be at any applied pressure
and may be used in combination with hydraulic fracturing treatments
or other well stimulation treatments.
   3160.  (a) On or before January 1, 2015, the Secretary of the
Natural Resources Agency shall cause to be conducted an independent
scientific study on well stimulation treatments, including, but not
limited to, hydraulic fracturing and acid well stimulation
treatments. The scientific study shall evaluate the hazards and risks
and potential hazards and risks that well stimulation treatments
pose to natural resources and public, occupational, and environmental
health and safety. The scientific study shall do all of the
following:
   (1) Follow the well-established standard protocols of the
scientific profession, including, but not limited to, the use of
recognized experts, peer review, and publication.
   (2) Identify areas with existing and potential conventional and
unconventional oil and gas reserves where well stimulation treatments
are likely to spur or enable oil and gas exploration and production.

   (3) (A) Evaluate all aspects of hydraulic fracturing, including,
but not limited to, the hydraulic fracturing treatment, additive and
water transportation to and from the well site, mixing and handling
of the hydraulic fracturing fluids and additives onsite, the use and
potential for use of nontoxic additives and the use or reuse of
treated or produced water in hydraulic fracturing fluids, wastewater
and waste hydraulic fracturing fluid handling, treatment, and
disposal.
   (B) Evaluate all aspects of acid well stimulation treatments,
including the use and potential use of large-scale acidization
treatments and waste handling, treatment, and disposal.
   (4) Consider, at a minimum, atmospheric emissions, including
potential greenhouse gas emissions, the potential degradation of air
quality, potential impacts on wildlife, native plants, and habitat,
potential water and surface contamination, potential noise pollution,
induced seismicity, and the ultimate disposition, transport,
transformation, and toxicology of well stimulation treatments,
including acid well stimulation fluids, hydraulic fracturing fluids,
and waste hydraulic fracturing fluids and acid well stimulation in
the environment.
   (5) Include a hazard assessment and risk analysis addressing
occupational and environmental exposures to well stimulation
treatments, including hydraulic fracturing treatments, hydraulic
fracturing treatment-related processes, acid well stimulation
treatments, acid well stimulation treatment-related processes, and
the corresponding impacts on public health and safety with the
participation of the Office of Environmental Health Hazard
Assessment.
   (6) Clearly identify where additional information is necessary to
inform and improve the analyses.
   (b) (1) On or before January 1, 2015, 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, including acid well stimulation
treatments and hydraulic fracturing treatments may occur, shall adopt
rules and regulations specific to well stimulation treatments. The
rules and regulations shall include, but are not limited to,
revisions, as needed, to the rules and regulations governing
construction of wells and well casings to ensure integrity of wells,
well casings, and the geologic and hydrologic isolation of the oil
and gas formation during and following well stimulation treatments,
and full disclosure of the composition and disposition of well
stimulation fluids, including, but not limited to, hydraulic
fracturing fluids, acid well stimulation fluids, and waste hydraulic
fracturing and acid stimulation fluids.
   (2) Full disclosure of the composition and disposition of well
stimulation fluids, including, but not limited to, hydraulic
fracturing fluids and acid stimulation treatment fluids, shall, at a
minimum, include:
   (A) The date of the well stimulation treatment.
   (B) A complete list of the names, Chemical Abstract Service (CAS)
numbers, and maximum concentration, in percent by mass, of each and
every chemical constituent of the well stimulation treatment fluids
used. If a CAS number does not exist for a chemical constituent, the
well owner or operator may provide another unique identifier, if
available. Chemical information claimed as a trade secret, pursuant
to subdivision (j), shall be identified as such and reported as
described in subdivision (j).
   (C) The trade name, the supplier, and a brief description of the
intended purpose of each additive contained in the well stimulation
treatment fluid.
   (D) The total volume of base fluid used during the well
stimulation treatment, and the identification of whether the base
fluid is water suitable for irrigation or domestic purposes, water
not suitable for irrigation or domestic purposes, or a fluid other
than water.
   (E) The source, volume, and specific composition and disposition
of all water, including, but not limited to, all water used as base
fluid during the well stimulation treatment and recovered from the
well following the well stimulation treatment that is not otherwise
reported as produced water pursuant to Section 3227. Any repeated
reuse of treated or untreated water for well stimulation treatments
and well stimulation treatment-related activities shall be
identified.
   (F) The specific composition and disposition of all well
stimulation treatment fluids, including waste fluids, other than
water.
   (G) Any radiological components or tracers injected into the well
as part of, or in order to evaluate, the well stimulation treatment,
a description of the recovery method, if any, for those components or
tracers, the recovery rate, and specific disposal information for
recovered components or tracers.
   (H) The radioactivity of the recovered well stimulation fluids.
   (I) The location of the portion of the well subject to the well
stimulation treatment and the extent of the fracturing or other
modification, if any, surrounding the well induced by the treatment.
   (c) (1) Through the consultation process described in paragraph
(1) of subdivision (b), the division shall collaboratively identify
and delineate the existing statutory authority and regulatory
responsibility relating to well stimulation treatments and well
stimulation treatment-related activities of the Department of Toxic
Substances Control, the State Air Resources Board, any local air
districts, the State Water Resources Control Board, the Department of
Resources Recycling and Recovery, any regional water quality control
board, and other public entities, as applicable. This shall include
how the respective authority, responsibility, and notification and
reporting requirements associated with well stimulation treatments
and well stimulation treatment-related activities are divided among
each public entity.
   (2) On or before January 1, 2015, the division shall enter into
formal agreements with the Department of Toxic Substances Control,
the State Air Resources Board, any local air districts where well
stimulation treatments may occur, the State Water Resources Control
Board, the Department of Resources Recycling and Recovery, and any
regional water quality control board where well stimulation
treatments may occur, clearly delineating respective authority,
responsibility, and notification and reporting requirements
associated with well stimulation treatments and well stimulation
treatment-related activities, including air and water quality
monitoring, in order to promote regulatory transparency and
accountability.
   (3) The agreements under paragraph (2) shall specify the
appropriate public entity responsible for air and water quality
monitoring and the safe disposal of materials in landfills, include
trade secret handling protocols, if necessary, and provide for ready
public access to information related to well stimulation treatments
and related activities.
   (d) (1) Notwithstanding any other law or regulation, prior to
performing a well stimulation treatment on a well, the operator shall
apply for a permit to perform a well stimulation treatment with the
supervisor or district deputy. The permit application shall contain
the pertinent data the supervisor requires on printed forms supplied
by the division or on other forms acceptable to the supervisor. The
information provided in the permit application shall include, but is
not limited to, the following:
   (A) The well identification number and location.
   (B) The time period during which the well stimulation treatment is
planned to occur. 
   (C) An estimate of the amount of water to be used in the treatment
and its source.  
   (C) A water management plan that shall include all of the
following:  
   (i) An estimate of the amount of water to be used in the
treatment. Estimates of water that is recycled or that could be
recycled following the well stimulation treatment may be included.
 
   (ii) The anticipated source of the water to be used in the
treatment.  
   (iii) The disposal method identified for the recovered water used
in the treatment that is not produced water included in the statement
pursuant to Section 3227. 
   (D) A complete list of the names, Chemical Abstract Service (CAS)
numbers, and estimated concentrations, in percent by mass, of each
and every chemical constituent of the well stimulation fluids
 planned   anticipated  to be used in the
treatment. If a CAS number does not exist for a chemical constituent,
the well owner or operator may provide another unique identifier, if
available. Chemical information claimed as a trade secret, pursuant
to subdivision (j), shall be identified as such and reported as
described in subdivision (j).
   (E) The planned location of the well stimulation treatment on the
well bore, the estimated length, height, and direction of the induced
fractures or other planned modification, if any, and the location of
existing wells, including plugged and abandoned wells, that may be
impacted by these fractures and modifications.
   (F) A groundwater monitoring plan. A groundwater monitoring plan
is not required if the appropriate regional water quality control
board confirms that the well subject to the proposed well stimulation
treatment does not or will not penetrate or does not or will not
influence an aquifer that is designated for a beneficial use. The
groundwater monitoring plan shall include, at a minimum, all of the
following information:
   (i) The current water quality of the groundwater basin through
which the well subject to the proposed well stimulation treatment is
or will be drilled that is sufficient to characterize the quality of
any aquifer through which the well is or will be drilled.
   (ii) An estimate of the zone of influence of the well subject to
the proposed well stimulation treatment.
   (iii) Water quality data or a plan to obtain data regarding the
presence and concentration of the constituents to be used in, or that
can be influenced by, the well subject to the proposed well
stimulation treatment.
   (iv) A plan that specifies sites for monitoring wells designed to
detect contamination due to operation of the well subject to the
proposed well stimulation treatment until the well is plugged and
abandoned. The plan shall also include provisions for emergency
implementation in the event of well or well casing failure or other
event with the potential to contaminate groundwater. 
   (G) A waste and wastewater disposal plan.  
   (G) The estimated amount of treatment-generated waste materials
that are not reported in subparagraph (C) and an identified disposal
method for the waste materials. 
   (2) (A) The supervisor or district deputy shall review the well
stimulation treatment permit application and may approve the permit
if the application is complete.
   (B) A well stimulation treatment or repeat well stimulation
treatment shall not be performed on any well without a valid permit
that the supervisor or district deputy has approved.
   (C) A permit describing a well stimulation treatment that presents
unreasonable risk or is incomplete shall not be approved.
   (3) The well stimulation treatment shall be completed within one
year of the issuance of the permit.
   (4) Within five business days of issuing a permit to perform a
well stimulation treatment, the division shall provide a copy of the
permit to the appropriate regional water quality control board or
boards and to the local planning entity where the well, including its
subsurface portion, is located. The division shall also post the
permit on the publicly accessible portion of its Internet Web site
within five business days of issuing a permit.
   (5) (A) The division shall provide a copy of the approved well
stimulation treatment permit and information on the water sampling
and testing available through the regional water quality control
board to every tenant of the surface property and every surface
property owner or authorized agent of that owner whose property line
location is one of the following:
   (i) Within a 1,500 foot radius of the wellhead.
   (ii) Within 500 feet from the horizontal projection of all
subsurface portions of the designated well to the surface.
   (B) A well stimulation treatment shall not commence before 30
calendar days after the permit copies pursuant to subparagraph (A)
are provided.
   (6) (A) A property owner notified pursuant to paragraph (5) may
request the regional water quality control board to perform, and the
regional water quality control board or its contractors shall
perform, water quality sampling and testing on any water well
suitable for drinking or irrigation purposes and on any surface water
suitable for drinking or irrigation purposes as follows:
   (i) Baseline measurements prior to the commencement of the well
stimulation treatment.
   (ii) Followup measurements after the well stimulation treatment on
the same schedule as the pressure testing of the well casing of the
treated well.
   (B) The regional water quality control board may contract with an
independent third party that adheres to board-specified standards and
protocols to perform the water sampling and testing.
   (C) A tenant notified pursuant to paragraph (5) shall receive
information on the results of the water testing to the extent
authorized by his or her lease and, where the tenant has lawful use
of the ground or surface water identified in subparagraph (A), the
tenant may independently contract for similar groundwater or surface
water testing.
   (7) If warranted, the regional water quality control board shall
have the authority to retain an appropriately prepared and stored
baseline sample or samples collected pursuant to paragraph (6) for as
long as the planned analytical method or methods would provide valid
results.
   (8) The division shall retain a list of the entities and property
owners notified pursuant to paragraphs (4) and (5).
   (9) The operator shall provide notice to the division at least 72
hours prior to the actual start of the well stimulation treatment in
order for the division to witness the treatment.
   (e) The Secretary of the Natural Resources Agency shall notify the
Joint Legislative Budget Committee and the chairs of the Assembly
Natural Resources, Senate Environmental Quality, and Senate Natural
Resources and Water Committees on the progress of the independent
scientific study on well stimulation and related activities. The
first progress report shall be provided to the Legislature on or
before April 1, 2014, and progress reports shall continue every four
months thereafter until the independent study is completed, including
a peer review of the study by independent scientific experts.
   (f) If a well stimulation treatment is performed on a well, a
supplier that performs any part of the stimulation or provides
additives directly to the operator for a well stimulation treatment
shall furnish the operator with information needed for the operator
to comply with subdivision (g). If a supplier claims trade secret
protection pursuant to subdivision (j), the supplier shall notify the
operator and provide to the operator substitute information, as
described in subdivision (j), suitable for public disclosure. This
information shall be provided as soon as possible but no later than
30 days following the conclusion of the well stimulation treatment.
   (g) (1) Within 60 days following cessation of a well stimulation
treatment on a well, the operator shall post or cause to have posted
to an Internet Web site designated or maintained by the division and
accessible to the public, all of the well stimulation fluid
composition and disposition information required to be collected
pursuant to rules and regulations adopted under subdivision (b),
including well identification number and location. This shall include
the collected water quality data, which the operator shall report
electronically to the State Water Resources Control Board.
   (2) The division's Internet Web site shall be operational on or
before January 1, 2016, and the division may direct reporting to an
alternative Internet Web site developed by the Ground Water
Protection Council and the Interstate Oil and Gas Compact Commission
in the interim. The reported information shall be organized on the
division's Internet Web site in a format, such as a spreadsheet, that
allows the public to easily search and aggregate, to the extent
practicable, each type of information required to be collected
pursuant to subdivision (b) using search functions on that Internet
Web site.
   (h) The operator is responsible for compliance with this section.
   (i) (1) All geologic features within a distance reflecting an
appropriate safety factor of the fracture zone for well stimulation
treatments that fracture the formation and that have the potential to
either limit or facilitate the migration of fluids outside of the
fracture zone shall be identified and added to the well history.
Geologic features include, but are not limited to, seismic faults.
   (2) For the purposes of this section, the "fracture zone" is
defined as the volume surrounding the well bore where fractures were
created or enhanced by the well stimulation treatment. The safety
factor shall be at least five and may vary depending upon geologic
knowledge.
   (j) (1) The supplier may claim trade secret protection for the
chemical composition of additives, whose use is not otherwise
prohibited by law, pursuant to Section 1060 of the Evidence Code, or
the Uniform Trade Secrets Act (Title 5 (commencing with Section 3426)
of Part 1 of Division 4 of the Civil Code).
   (2) If a supplier believes that information regarding a chemical
constituent of a well stimulation fluid is a trade secret, the
supplier shall nevertheless disclose the information to the division
in conjunction with a well stimulation treatment permit application,
if not previously disclosed, within 30 days following cessation of
well stimulation on a well, and shall notify the division in writing
of that belief.
   (3) In order to substantiate the trade secret claim to the
division, the supplier shall provide the following information to the
division:
   (A) The extent to which the information is known outside the
business of the supplier submitting the information, and whether or
not all individuals with that knowledge are bound by nondisclosure
agreements.
   (B) The extent to which the information is known by the supplier's
employees and others involved in the supplier's business, and
whether or not all those individuals are bound by nondisclosure
agreements.
   (C) The extent of measures taken by the supplier to restrict
access to and guard the secrecy of the information, and whether or
not the supplier plans to continue utilizing those measures.
   (D) The estimated value of the information to the supplier and its
competitors.
   (E) The estimated amount of effort and money expended by the
supplier in developing the information, and a description of the
nature and extent of harm that would be caused if the information
were made public.
   (F) The estimated ease or difficulty with which the information
could be properly acquired or duplicated by others, and an
explanation of why the chemical identity is not readily discoverable
through reverse engineering.
   (G) Copies of, or references to, any pertinent trade secret or
other confidentiality determinations previously made by the division
or other public agencies, including court orders or decisions.
   (4) If the division determines that the information provided in
support of a request for trade secret protection pursuant to
paragraph (3) is incomplete, the division shall notify the supplier
and the supplier shall have 30 days to complete the submission. An
incomplete submission does not meet the substantive criteria for
trade secret designation.
   (5) If the division determines that the information provided in
support of a request for trade secret protection does not meet the
substantive criteria for trade secret designation, the department
shall notify the supplier by certified mail of its determination. The
division shall release the information to the public, but not
earlier than 60 days after the date of mailing the determination,
unless, prior to the expiration of the 60-day period, the supplier
obtains an action in an appropriate court for a declaratory judgment
that the information is subject to protection or for a preliminary
injunction prohibiting disclosure of the information to the public
and provides notice to the division of the court order. If no order
or declaratory judgment is obtained, the division shall release the
information to the public by revising the information provided
pursuant to subdivision (g).
   (6) The supplier is not required to disclose trade secret
information to the operator.
   (7) This subdivision does not permit a supplier to refuse to
disclose the information required pursuant to this section to the
division.
        (8) To comply with the public disclosure requirements of this
section, the supplier shall indicate where trade secret information
has been withheld and provide substitute information for public
disclosure. The substitute information shall be a list, in any order,
of the chemical constituents of the additive, including CAS
identification numbers, whose specific composition is a trade secret.
Information on the relative amounts or concentration of the
constituents of additives whose specific composition is a trade
secret shall not be publicly disclosed. The division shall review and
approve the supplied substitute information.
   (9) Except as provided in subparagraph (B) of paragraph (11), the
division shall protect from disclosure any trade secret claimed by
the supplier, if that trade secret is not a public record.
   (10) The supplier shall notify the division in writing within 30
days of any changes to information provided to the division to
support a trade secret claim, including if the information is no
longer a trade secret.
   (11) Upon receipt of a request for the release of information to
the public, which includes information the supplier has notified the
division is a trade secret and is not a public record, the following
procedure applies:
   (A) The division shall notify the supplier of the request in
writing by certified mail, return receipt requested.
   (B) The division shall release the information to the public, but
not earlier than 60 days after the date of mailing the notice of the
request for information, unless, prior to the expiration of the
60-day period, the supplier obtains an action in an appropriate court
for a declaratory judgment that the information is subject to
protection or for a preliminary injunction prohibiting disclosure of
the information to the public and provides notice to the division of
that action.
   (12) (A) Except as provided in subparagraph (B) of paragraph (11),
trade secret information is not a public record and shall not be
disclosed to anyone except to an officer or employee of the division,
the state, local governments, including, but not limited to, local
air districts, or the United States, in connection with the official
duties of that officer or employee, to a health professional under
any law for the protection of health, or to contractors with the
division or other government entities and their employees if, in the
opinion of the division, disclosure is necessary and required for the
satisfactory performance of a contract, for performance of work, or
to protect health and safety.
   (B) In order to receive trade secret information, a health
professional shall have a reasonable basis to suspect the information
is needed to diagnose or treat a patient.
   (C) A health professional may share trade secret information with
other persons as may be professionally necessary, in order to
diagnose or treat a patient, including, but not limited to, the
patient and other health professionals, subject to state and federal
laws restricting disclosure of medical records including, but not
limited to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
Division 1 of the Civil Code.
   (D) The division shall develop a procedure for the timely
disclosure of trade secret information in the event of an emergency
or to diagnose or treat a patient pursuant to this subdivision.
   (E) Confidentiality of trade secret information from public
disclosure shall be maintained by those who receive trade secret
information pursuant to the provisions of this subdivision, subject
to the enforcement provisions of this division, and any additional
applicable state and federal law.
   (F) For purposes of this paragraph, "health professional" means
any person licensed or certified pursuant to Division 2 (commencing
with Section 500) of the Business and Professions Code, the
Osteopathic Initiative Act, the Chiropractic Initiative Act, or the
Emergency Medical Services System and the Prehospital Emergency
Medical Care Personnel Act (Division 2.5 (commencing with Section
1797) of the Health and Safety Code).
   (13) (A) The supplier shall provide trade secret information in
order to protect public health to any health professional,
toxicologist, or epidemiologist who is employed in the field of
public health and who provides a written statement of need 
and confidentiality agreement  . The written statement of
need shall include the public health purposes and shall explain the
reason the disclosure of the specific chemical and its concentration
is required in lieu of information describing the properties and
effects of the chemical.
   (B) Confidentiality of trade secret information from public
disclosure shall be maintained by those who receive trade secret
information pursuant to the provisions of this paragraph subject to
the enforcement provisions of this division and any additional
applicable state and federal law. 
   (k) This section does not apply to routine pressure tests to
monitor the integrity of wells and well casings.  
   (l) 
    (k)  A well granted confidential status pursuant to
Section 3234 shall comply with this section, with the exception of
the disclosure of well stimulation fluids pursuant to subdivision (g)
which shall not be required until the confidential status of the
well ceases. 
   (m) 
    (l)  The division shall perform random periodic spot
check inspections to ensure that the information provided on well
stimulation treatments is accurately reported, including that the
estimates provided prior to the commencement of the well stimulation
treatment are reasonably consistent with the well history. 
   (n) 
    (m)  Where the division shares jurisdiction over a well
or the well stimulation treatment on a well with a federal entity,
the division's rules and regulations shall apply in addition to all
applicable federal law and regulations. 
   (o) 
    (n)  This article does not relieve the division or any
other agency from complying with any other provision of existing
 law   laws and regulations  .
  SEC. 3.  Section 3213 of the Public Resources Code is amended to
read:
   3213.  The history shall show the location and amount of
sidetracked casings, tools, or other material, the depth and quantity
of cement in cement plugs, the shots of dynamite or other
explosives, and the results of production and other tests during
drilling operations. All data on well stimulation treatments pursuant
to Section 3160 shall be recorded in the history.
  SEC. 4.  Section 3215 of the Public Resources Code is amended to
read:
   3215.  (a) Within 60 days after the date of cessation of drilling,
rework, well stimulation treatment, or abandonment operations, or
the date of suspension of operations, the operator shall file with
the district deputy, in a form approved by the supervisor, true
copies of the log, core record, and history of work performed, and,
if made, true and reproducible copies of all electrical, physical, or
chemical logs, tests, or surveys. Upon a showing of hardship, the
supervisor may extend the time within which to comply with this
section for a period not to exceed 60 additional days.
   (b) The supervisor shall include information or electronic links
to information provided pursuant to subdivision (g) of Section 3160
on existing publicly accessible maps on the division's Internet Web
site, and make the information available such that well stimulation
treatment and related information are associated with each specific
well. If data is reported on an Internet Web site not maintained by
the division pursuant to paragraph (2) of subdivision (g) of Section
3160, the division shall provide electronic links to that Internet
Web site. The public shall be able to search and sort the hydraulic
well stimulation and related information by at least the following
criteria:
   (1) Geographic area.
   (2) Additive.
   (3) Chemical constituent.
   (4) Chemical Abstract Service number.
   (5) Time period.
   (6) Operator.
   (c) Notwithstanding Section 10231.5 of the Government Code, on or
before January 1, 2016, and annually thereafter, the supervisor
shall, in compliance with Section 9795 of the Government Code,
prepare and transmit to the Legislature a comprehensive report on
well stimulation treatments in the exploration and production of oil
and gas resources in California. The report shall include aggregated
data of all of the information required to be reported pursuant to
Section 3160 reported by the district, county, and operator. The
report also shall include relevant additional information, as
necessary, including, but not limited to, all  of the
following:
   (1) Aggregated data detailing the disposition of any produced
water from wells that have undergone well stimulation treatments.
   (2) Aggregated data describing the formations where wells have
received well stimulation treatments including the range of safety
factors used and fracture zone lengths.
   (3) The number of emergency responses to a spill or release
associated with a well stimulation treatment.
   (4) Aggregated data detailing the number of times trade secret
information was not provided to the public, by county and by each
company, in the preceding year.
   (5) Data detailing the loss of well and well casing integrity in
the preceding year for wells that have undergone well stimulation
treatment. For comparative purposes, data detailing the loss of well
and well casing integrity in the preceding year for all wells shall
also be provided. The cause of each well and well casing failure, if
known, shall also be provided.
   (6) The number of spot check inspections conducted pursuant to
subdivision  (m)   (l)  of Section 3160,
including the number of inspections where the composition of well
stimulation fluids were verified and the results of those
inspections.
   (7) The number of well stimulation treatments witnessed by the
division.
   (8) The number of enforcement actions associated with well
stimulation treatments, including, but not limited to, notices of
deficiency, notices of violation, civil or criminal enforcement
actions, and any penalties assessed.
   (d) The report shall be made publicly available and an electronic
version shall be available on the division's Internet Web site.
  SEC. 5.  Section 3236.5 of the Public Resources Code is amended to
read:
   3236.5.  (a) A person who violates this chapter or a regulation
implementing this chapter is subject to a civil penalty not to exceed
twenty-five thousand dollars ($25,000) for each violation. A person
who commits a violation of Article 3 (commencing with Section 3150)
is subject to a civil penalty of not less than ten thousand dollars
($10,000) and not to exceed twenty-five thousand dollars ($25,000)
per day per violation. An act of God and an act of vandalism beyond
the reasonable control of the operator shall not be considered a
violation. The civil penalty shall be imposed by an order of the
supervisor pursuant to Section 3225 upon a determination that a
violation has been committed by the person charged. The imposition of
a civil penalty under this section shall be in addition to any other
penalty provided by law for the violation. When establishing the
amount of the civil penalty pursuant to this section, the supervisor
shall consider, in addition to other relevant circumstances, all of
the following:
   (1) The extent of harm caused by the violation.
   (2) The persistence of the violation.
   (3) The pervasiveness of the violation.
   (4) The number of prior violations by the same violator.
   (b) An order of the supervisor imposing a civil penalty shall be
reviewable pursuant to Article 6 (commencing with Section 3350). When
the order of the supervisor has become final and the penalty has not
been paid, the supervisor may apply to the appropriate superior
court for an order directing payment of the civil penalty. The
supervisor may also seek from the court an order directing that
production from the well or use of the production facility that is
the subject of the civil penalty order be discontinued until the
violation has been remedied to the satisfaction of the supervisor and
the civil penalty has been paid.
   (c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.
  SEC. 6.  Section 3401 of the Public Resources Code is amended to
read:
   3401.  (a) The proceeds of charges levied, assessed, and collected
pursuant to this article upon the properties of every person
operating or owning an interest in the production of a well shall be
used exclusively for the support and maintenance of the department
charged with the supervision of oil and gas operations.
   (b) Notwithstanding subdivision (a), the proceeds of charges
levied, assessed, and collected pursuant to this article upon the
properties of every person operating or owning an interest in the
production of a well undergoing a well stimulation treatment, may be
used by public entities, subject to appropriation by the Legislature,
for all costs associated with both of the following:
   (1) 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.
   (2) The development and implementation of the consultation process
and agreements required pursuant to subdivisions (b) and (c) of
Section 3160.
  SEC. 7.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.