Amended in Assembly September 3, 2013

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

Senate Bill No. 4

Introduced by begin delete Senator end delete begin insert Senators end insert Pavley begin insert and Leno end insert

(Principal coauthor: Assembly Member Gray)

(Coauthors: Senators begin delete De León, Leno, end delete begin insert De end insert begin insert  León end insert and Monning)

(Coauthors: Assembly Members begin insert Alejo, Bloom, end insert 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, begin insert and to add Section 10783 to the Water Code, end insert 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 begin delete require end delete begin insert provide that end insert the well stimulation treatment begin delete to be completed within end delete begin insert permit expires end insert 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. begin insert The bill would require the division, no later than January 1, 2016, to develop an Internet Web site for operators to report specific information regarding well stimulation treatments. end insert 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, begin insert as specified, end insert but would, begin delete except as specified, end delete begin insert with certain exceptions, end insert 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 begin delete development and implementation of specific consultation processes and agreements end delete begin insert costs of the State Water Resources Control Board and the regional water quality control boards in carrying out groundwater monitoring, as specified end insert .

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.

begin insert

(4) Existing law, the Groundwater Quality Monitoring Act of 2001, requires the State Water Resources Control Board to integrate existing monitoring programs and design new program elements, as necessary, to establish a comprehensive monitoring program capable of assessing each groundwater basin in the state through direct and other statistically reliable sampling approaches.

end insert begin insert

This bill would require the state board, on or before January 1, 2015, to develop a groundwater monitoring model criteria, as specified, to be implemented either on a well-by-well basis or on a regional scale, on how to conduct appropriate monitoring on individual oil and gas wells subject to a well stimulation treatment in order to protect all waters designated for beneficial uses and prioritize the monitoring of groundwater that is or has the potential to be a source of drinking water.

end insert

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.

begin insert

(d) The public disclosure of chemical information required by
this act ensures that potential public exposure to, and dose received
from, well stimulation treatment fluid chemicals can be reasonably
discerned.

end insert begin delete

(d)

end delete

begin insert (e) end insert  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.  

begin delete “Hydraulic fracturing fluid” end delete begin insert “Well stimulation treatment
fluid” end insert means a base fluid mixed with physical and chemical
additives for the purpose of begin delete hydraulic fracturing end delete begin insert a well stimulation
treatment end insert . A begin delete hydraulic fracturing end delete begin insert well stimulation end insert treatment may
include more than one begin delete hydraulic fracturing end delete begin insert well stimulation
treatment end insert fluid. begin insert end insert begin insert Well stimulation treatment fluids include, but are
not limited to, hydraulic fracturing fluids and acid stimulation
treatment fluids. end insert

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. 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.

begin insert

begin insert 3159. end insert   

“Flowback fluid” means the fluid recovered from the
treated well before the commencement of oil and gas production
from that well following a well stimulation treatment. The flowback
fluid may include materials of any phase.

end insert

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) begin delete   end delete begin delete (A) end delete  Evaluate all aspects begin delete of hydraulic fracturing end delete begin insert and effects
of well stimulation treatments end insert , including, but not limited to, the
begin delete hydraulic fracturing end delete begin insert well stimulation end insert treatment, additive and water
transportation to and from the well site, mixing and handling of
the begin delete hydraulic fracturing end delete begin insert well stimulation treatment end insert fluids and
additives onsite, the use and potential for use of nontoxic additives
and the use or reuse of treated or produced water in begin delete hydraulic
fracturing end delete begin insert well stimulation treatment end insert fluids, begin delete wastewater end delete begin insert flowback
fluids end insert and begin delete waste hydraulic fracturing fluid end delete handling, treatment,
and disposal begin insert end insert begin insert of flowback fluids and other materials, if any,
generated by the treatment. Well stimulation treatments include,
but are not limited to, hydraulic fracturing and acid well
stimulation treatments end insert .

begin delete

(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.

end delete

(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,
begin insert including habitat fragmentation, end insert 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)  begin insert (A) end insert begin insert   end insert 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 begin delete waste hydraulic
fracturing and acid stimulation end delete begin insert flowback end insert fluids.

begin insert

(B) The rules and regulations shall additionally include a
provision for the operator to provide for baseline and followup
water testing upon request as specified in paragraph (6) of
subdivision (d).

end insert

(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. begin delete Chemical information
claimed as a trade secret, pursuant to subdivision (j), shall be
identified as such and reported as described in subdivision (j). end delete

(C) The trade name, the supplier, begin insert concentration, end insert 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
begin delete include end delete begin insert specify end insert 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 begin insert and lawful end insert 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.

begin insert

(4) Regulations, if necessary, shall be revised appropriately to
incorporate the agreements under paragraph (2).

end insert

(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. begin insert At the supervisor’s
discretion, and if applied for concurrently, the well stimulation
treatment permit described in this section may be combined with
the well drilling and related operation permit required pursuant
to Section 3203 into a single combined permit. The time period
available for approval of the portion of the combined permit
applicable to well stimulation is subject to the terms of this section,
not Section 3203. end insert The begin insert well stimulation treatment end insert 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 begin insert well stimulation
treatment end insert 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) 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 begin delete used
in end delete begin insert in the flowback fluid from end insert 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 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. begin delete Chemical
information claimed as a trade secret, pursuant to subdivision (j),
shall be identified as such and reported as described in subdivision
(j). end delete

(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.

begin delete

(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.

end delete begin insert

(F) A groundwater monitoring plan. Required groundwater
monitoring in the vicinity of the well subject to the well stimulation
treatment shall be satisfied by one of the following:

end insert begin insert

(i) The well is located within the boundaries of an existing oil
or gas field-specific or regional monitoring program developed
pursuant to Section 10783 of the Water Code.

end insert begin insert

(ii) Through a well-specific monitoring plan implemented by
the owner or operator meeting the model criteria established
pursuant to Section 10783 of the Water Code, and submitted to
the appropriate regional water board for review.

end insert

(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 begin delete shall be completed within
one year of the issuance of the end delete permit begin insert shall expire one year from
the date that the permit is issued end insert .

(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 begin insert available end insert
water sampling and testing begin delete available through the regional water
quality control board end delete 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 begin delete the regional water quality control board to perform,
and the regional water quality control board or its contractors shall
perform, end delete water quality sampling and testing begin insert from a designated
qualified contractor end insert 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 begin delete may contract with
an end delete begin insert shall designate one or more qualified end insert independent begin delete third party end delete
begin insert third-party contractor or contractors end insert that begin delete adheres end delete begin insert adhere end insert to
board-specified standards and protocols to perform the water
sampling and testing. begin insert The well owner or operator shall pay for
the sampling and testing. The sampling and testing performed
shall be subject to audit and review by the applicable regional
water quality control board. end insert

(C)  begin insert The results of the water testing shall be provided to the
division, appropriate regional water board, and the property owner
or authorized agent. end insert 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.

begin delete

(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.

end delete begin delete

(8)

end delete

begin insert (7) end insert  The division shall retain a list of the entities and property
owners notified pursuant to paragraphs (4) and (5).

begin delete

(9)

end delete

begin insert (8) end insert  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 begin insert suitable for public
disclosure end insert needed for the operator to comply with subdivision (g). begin delete 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. end delete 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.

begin insert

(2) (A) The division shall commence the process to develop an
Internet Web site for operators to report the information required
under this section. The Internet Web site shall be capable of
organizing the reported information 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. The Internet Web site shall be functional
within two years of the Department of Technology’s approval of
a Feasibility Study Report and appropriation authority to fund the
development of the Internet Web site, whichever occurs latest, but
no later than January 1, 2016.

end insert begin insert

(B) 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
until such time as approval and appropriation authority pursuant
to subparagraph (A) occur. Prior to the implementation of the
division’s Internet Web site, the division shall obtain the data
reported by operators to the alternative Internet Web site and make
it available in an organized electronic format to the public no later
than 15 days after it is reported to the alternative Web site.

end insert begin delete

(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.

end delete

(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)  begin delete The supplier may claim trade secret protection for the
chemical composition of additives, whose use is not otherwise
prohibited by law, pursuant to end delete begin insert Public disclosure of well stimulation
treatment fluid information claimed to contain trade secrets is
governed by end insert 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) begin insert , and the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) end insert .

begin insert

(2) Notwithstanding any other law or regulation, none of the
following information shall be protected as a trade secret:

end insert begin insert

(A) The identities of the chemical constituents of additives,
including CAS identification numbers.

end insert begin insert

(B) The concentrations of the additives in the well stimulation
treatment fluids.

end insert begin insert

(C) Any air or other pollution monitoring data.

end insert begin insert

(D) Health and safety data associated with well stimulation
treatment fluids.

end insert begin insert

(E) The chemical composition of the flowback fluid.

end insert begin insert

(3) If a trade secret claim is invalid or invalidated, the division
shall release the information to the public by revising the
information released pursuant to subdivision (g). The supplier
shall notify the division of any change in status within 30 days.

end insert begin delete

(2)

end delete

begin insert (4) end insert begin insert   end insert begin insert (A) end insert  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.

begin insert

(B) A trade secret claim shall not be made after initial disclosure
of the information to the division.

end insert begin insert

(C) 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. The division shall review and approve the
supplied substitute information.

end insert begin insert

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

end insert begin insert

(5) In order to substantiate the trade secret claim, the supplier
shall provide information to the division that shows all of the
following:

end insert begin insert

(A) The extent to which the trade secret information is known
by the supplier’s employees, others involved in the supplier’s
business and outside the supplier’s business.

end insert begin insert

(B) The measures taken by the supplier to guard the secrecy of
the trade secret information.

end insert begin insert

(C) The value of the trade secret information to the supplier
and its competitors.

end insert begin insert

(D) The amount of effort or money the supplier expended
developing the trade secret information and the ease or difficulty
with which the trade secret information could be acquired or
duplicated by others.

end insert begin delete

(3) In order to substantiate the trade secret claim to the division,
the supplier shall provide the following information to the division:

end delete begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(D) The estimated value of the information to the supplier and
its competitors.

end delete begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(4)

end delete

begin insert (6) end insert  If the division determines that the information provided in
support of a request for trade secret protection pursuant to
paragraph begin delete (3) end delete begin insert (5) end insert 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.

begin delete

(5)

end delete

begin insert (7) end insert  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. begin delete 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). end delete

begin delete

(6)

end delete

begin insert (8) end insert  The supplier is not required to disclose trade secret
information to the operator.

begin delete

(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)

end delete

begin insert (9) end insert  Upon receipt of a request for the release of begin insert trade secret end insert
information to the public, begin delete which includes information the supplier
has notified the division is a trade secret and is not a public record, end delete
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.

begin insert

(10) The division shall develop a timely procedure to provide
trade secret information in the following circumstances:

end insert begin insert

(A) 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.

end insert begin insert

(B) To a health professional in the event of an emergency or to
diagnose or treat a patient.

end insert begin insert

(C) 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. The
written statement of need shall include the public health purposes
of the disclosure and shall explain the reason the disclosure of the
specific chemical and its concentration is required.

end insert begin delete

(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.

end delete begin delete

(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.

end delete begin delete

(C)

end delete

begin insert (D) end insert  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.

begin delete

(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)

end delete

begin insert (E) end insert  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).

begin insert

(F) A person in possession of, or access to, confidential trade
secret information pursuant to the provisions of this subdivision
may disclose this information to any person who is authorized to
receive it. A written confidentiality agreement shall not be required.

end insert begin delete

(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. 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.

end delete

(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.

(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.

(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 begin delete law end delete begin insert laws end insert and regulations.

(n) This article does not relieve the division or any other agency
from complying with any other provision of existing laws and
regulations.

begin insert

(o) Well stimulation treatments used for routine maintenance
of wells associated with underground storage facilities where
natural gas is injected into and withdrawn from depleted or
partially depleted oil or gas reservoirs pursuant to subdivision (a)
of Section 3403.5 are not subject to this section.

end insert

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 (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 begin delete both of the following: end delete
begin insert well stimulation treatments including rulemaking and scientific
studies required to evaluate the treatment, inspections, any air
and water quality sampling, monitoring, and testing performed by
public entities and the costs of the State Water Resources Control
Board and the regional water quality control boards in carrying
out their responsibilities pursuant to Section 10783 of the Water
Code. end insert

begin delete

(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.

end delete begin delete

(2) The development and implementation of the consultation
process and agreements required pursuant to subdivisions (b) and
(c) of Section 3160.

end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 10783 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 10783. end insert   

(a) The Legislature finds and declares that protecting
the state’s groundwater for beneficial use, particularly sources
and potential sources of drinking water, is of paramount concern.

(b) The Legislature further finds and declares that strategic,
scientifically based groundwater monitoring of the state’s oil and
gas fields is critical to allaying the public’s concerns regarding
well stimulation treatments of oil and gas wells.

(c) On or before January 1, 2015, in order to assess the potential
effects of well stimulation treatments, as defined in Article 3
(commencing with Section 3150) of Chapter 1 of Division 3 of the
Public Resources Code, on the state’s groundwater resources in
a systematic way, the state board shall develop model groundwater
monitoring criteria to be implemented either on a well-by-well
basis for a well subject to well stimulation treatment, or on a
regional scale. The model criteria shall address a range of spatial
sampling scales from methods for conducting appropriate
monitoring on individual oil and gas wells subject to a well
stimulation treatment, to methods for conducting a regional
groundwater monitoring program. The state board shall take into
consideration the recommendations received pursuant to
subdivision (d) and shall include in the model criteria, at a
minimum, the components identified in subdivision (e). The state
board shall prioritize monitoring of groundwater that is or has
the potential to be a source of drinking water, but shall protect all
waters designated for any beneficial use.

(d) The state board, in consultation with the Department of
Conservation, Division of Oil, Gas, and Geothermal Resources,
shall seek the advice of experts on the design of the model
groundwater monitoring criteria. The experts shall assess and
make recommendations to the state board on the model criteria.
These recommendations shall prioritize implementation of regional
groundwater monitoring programs statewide, as warranted, based
upon the prevalence of well stimulation treatments of oil and gas
wells and groundwater suitable as a source of drinking water.

(e) The scope and nature of the model groundwater monitoring
criteria shall include the determination of all of the following:

(1) An assessment of the areas to conduct groundwater quality
monitoring and their appropriate boundaries.

(2) A list of the constituents to measure and assess water quality.

(3) The location, depth, and number of monitoring wells
necessary to detect groundwater contamination at spatial scales
ranging from an individual oil and gas well to a regional
groundwater basin including one or more oil and gas fields.

(4) The frequency and duration of the monitoring.

(5) A threshold criteria indicating a transition from well-by-well
monitoring to a regional monitoring program.

(6) Data collection and reporting protocols.

(7) Public access to the collected data under paragraph (6).

(f) Factors to consider in addressing subdivision (e) shall
include, but are not limited to, all of the following:

(1) The existing quality and potential use of the groundwater.

(2) Groundwater that is not a source of drinking water consistent
with the United States Environmental Protection Agency’s
definition of an Underground Source of Drinking Water as
containing less than 10,000 milligrams per liter total dissolved
solids in groundwater (40 C.F.R. 144.3), including exempt aquifers
pursuant to Section 146.4 of Title 40 of the Code of Federal
Regulations.

(3) Proximity to human population, public water service wells,
and private groundwater use, if known.

(4) The presence of existing oil and gas production fields,
including the distribution, physical attributes, and operational
status of oil and gas wells therein.

(5) Events, including well stimulation treatments and oil and
gas well failures, among others, that have the potential to
contaminate groundwater, appropriate monitoring to evaluate
whether groundwater contamination can be attributable to a
particular event, and any monitoring changes necessary if
groundwater contamination is observed.

(g) On or before January 1, 2016, the state board or appropriate
regional board shall begin implementation of the regional
groundwater monitoring programs based upon the developed
criteria under subdivision (c).

(h) The model criteria for either a well-by-well basis for a well
subject to well stimulation treatment, or for a regional groundwater
monitoring program, shall be used to satisfy the permitting
requirements for well stimulation treatments on oil and gas wells
pursuant to Section 3160 of the Public Resources Code. The model
criteria used on a well-by-well basis for a well subject to a well
stimulation treatment shall be used where no regional groundwater
monitoring plan approved by the state or regional board, if
applicable, exists.

(i) The model criteria shall accommodate monitoring where
surface access is limited. Monitoring is not required for oil and
gas wells where the wells do not penetrate groundwater of
beneficial use, as determined by a regional water quality control
board.

(j) The model criteria and groundwater monitoring programs
shall be reviewed and updated periodically, as needed.

(k) All groundwater quality data collected pursuant to
subparagraph (F) of paragraph (1) of subdivision (d) of Section
3160 of the Public Resources Code shall be submitted to the state
board in an electronic format that is compatible with the state
board’s GeoTracker database, following the guidelines detailed
in Chapter 30 (commencing with Section 3890) of Division 3 of
Title 23 of the California Code of Regulations.

end insert

begin delete SEC. 7. end delete
begin insert SEC. 8. end insert   

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.