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 requireend delete the well stimulation treatment begin delete to be completed withinend delete 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, begin delete except as specified,end delete
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 agreementsend delete.
This bill would require the supervisor, on or before January 1, 2016, and annually thereafter, to transmit to the Legislature and make available publicly a comprehensive report on well stimulation in the exploration and production of oil and gas resources in the state.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
3(a) The hydraulic fracturing of oil and gas wells in combination
4with technological advances in oil and gas well drilling are spurring
5oil and gas extraction and exploration in California. Other well
6stimulation treatments, in addition to hydraulic fracturing, are also
7critical to boosting oil and gas production.
8(b) Insufficient information is available to fully assess the
9science of the practice of hydraulic fracturing and other well
10stimulation treatment technologies in California, including
11environmental, occupational, and public health hazards and risks.
12(c) Providing transparency and accountability to the public
13regarding well stimulation treatments, including, but not limited
14to, hydraulic fracturing, associated emissions to the environment,
15and the handling, processing, and disposal of well stimulation and
16related wastes, including from hydraulic fracturing, is of paramount
23 The Legislature encourages the use or reuse of treated or
24untreated water and produced water for well stimulation treatments
25and well stimulation treatment-related activities.
Article 3 (commencing with Section 3150) is added
27to Chapter 1 of Division 3 of the Public Resources Code, to read:
“Additive” means a substance or combination of
4substances added to a base fluid for purposes of preparing well
5stimulation treatment fluid which includes, but is not limited to,
6an acid stimulation treatment fluid or a hydraulic fracturing fluid.
7An additive may, but is not required to, serve additional purposes
8beyond the transmission of hydraulic pressure to the geologic
9formation. An additive may be of any phase and includes
“Base fluid” means the continuous phase fluid used in
12the makeup of a well stimulation treatment fluid, including, but
13not limited to, an acid stimulation treatment fluid or a hydraulic
14fracturing fluid. The continuous phase fluid may include, but is
15not limited to, water, and may be a liquid or a hydrocarbon or
16nonhydrocarbon gas. A well stimulation treatment may use more
17than one base fluid.
“Hydraulic fracturing” means a well stimulation
19treatment that, in whole or in part, includes the pressurized injection
20of hydraulic fracturing fluid or fluids into an underground geologic
21formation in order to fracture or with the intent to fracture the
22formation, thereby causing or enhancing, for the purposes of this
23division, the production of oil or gas from a well.
begin delete“Hydraulic fracturing fluid” end deletemeans a base fluid mixed with physical and chemical
26additives for the purpose of
begin delete hydraulic fracturingend delete. A begin delete hydraulic fracturingend delete treatment may
28include more than one
begin delete hydraulic fracturingend delete fluid.
“Proppants” means materials inserted or injected into
33the underground geologic formation that are intended to prevent
34fractures from closing.
“Supplier” means an entity performing a well stimulation
36treatment or an entity supplying an additive or proppant directly
37to the operator for use in a well stimulation treatment.
“Surface property owner” means the owner of real
39property as shown on the latest equalized assessment roll or, if
40more recent information than the information contained on the
P7 1assessment roll is available, the owner of record according to the
2county assessor or tax collector.
For purposes of this article, “well stimulation treatment”
4means any treatment of a well designed to enhance oil and gas
5production or recovery. Well stimulation treatments include, but
6are not limited to, hydraulic fracturing treatments and acid well
7stimulation treatments. Well stimulation treatments do not include
8steam flooding, water flooding, or cyclic steaming and do not
9include routine well cleanout work, routine well maintenance,
10bottom hole pressure surveys, or routine activities that do not affect
11the integrity of the well or the formation.
“Acid well stimulation treatment” means a well
13stimulation treatment that uses, in whole or in part, the application
14of one or more acids to the well or underground geologic formation
15with the intent to cause or enhance the production of oil or gas
16from a well. The acid well stimulation treatment may be at any
17applied pressure and may be used in combination with hydraulic
18fracturing treatments or other well stimulation treatments.
(a) On or before January 1, 2015, the Secretary of the
24Natural Resources Agency shall cause to be conducted an
25independent scientific study on well stimulation treatments,
26including, but not limited to, hydraulic fracturing and acid well
27stimulation treatments. The scientific study shall evaluate the
28hazards and risks and potential hazards and risks that well
29stimulation treatments pose to natural resources and public,
30occupational, and environmental health and safety. The scientific
31study shall do all of the following:
32(1) Follow the well-established standard protocols of the
33scientific profession, including, but not limited to, the use of
34recognized experts, peer review, and publication.
35(2) Identify areas with existing and potential conventional and
36unconventional oil and gas reserves where well stimulation
37treatments are likely to spur or enable oil and gas exploration and
begin delete end delete begin delete(A)end delete Evaluate all aspects begin delete of hydraulic fracturingend delete, including, but not limited to, the
begin delete hydraulic fracturingend delete treatment, additive and water
2transportation to and from the well site, mixing and handling of
begin delete hydraulic fracturingend delete fluids and
4additives onsite, the use and potential for use of nontoxic additives
5and the use or reuse of treated or produced water in
begin delete hydraulic fluids,
begin delete wastewaterend deleteand begin delete waste hydraulic fracturing fluidend delete
12(B) Evaluate all aspects of acid well stimulation treatments,
13including the use and potential use of large-scale acidization
14treatments and waste handling, treatment, and disposal.
15(4) Consider, at a minimum, atmospheric
16potential greenhouse gas emissions, the potential degradation of
17air quality, potential impacts on wildlife, native plants, and habitat,
18 potential water and surface
19contamination, potential noise pollution, induced seismicity, and
20the ultimate disposition, transport, transformation, and toxicology
21of well stimulation treatments, including acid well stimulation
22fluids, hydraulic fracturing fluids, and waste hydraulic fracturing
23fluids and acid well stimulation in the environment.
24(5) Include a hazard assessment and risk analysis addressing
25 occupational and environmental exposures to well stimulation
26treatments, including hydraulic fracturing treatments, hydraulic
27fracturing treatment-related processes, acid well stimulation
28treatments, acid well stimulation treatment-related processes, and
29the corresponding impacts on public health and safety with the
30participation of the Office of Environmental Health Hazard
32(6) Clearly identify where additional information is necessary
33to inform and improve the analyses.
34(b) (1) On or before January 1, 2015, the
35consultation with the Department of Toxic Substances Control,
36the State Air Resources Board, the State Water Resources Control
37Board, the Department of Resources Recycling and Recovery, and
38any local air districts and regional water quality control boards in
39areas where well stimulation treatments, including acid well
40stimulation treatments and hydraulic fracturing treatments may
P9 1occur, shall adopt rules and regulations specific to well stimulation
2treatments. The rules and regulations shall include, but are not
3limited to, revisions, as needed, to the rules and regulations
4governing construction of wells and well casings to ensure integrity
5of wells, well casings, and the geologic and hydrologic isolation
6of the oil and gas formation during and following well stimulation
7treatments, and full disclosure of the composition and disposition
8of well stimulation fluids, including, but not limited to, hydraulic
9fracturing fluids, acid well stimulation fluids, and
begin delete waste hydraulic fluids.
10fracturing and acid stimulationend delete
15(2) Full disclosure of the composition and disposition of well
16stimulation fluids, including, but not limited to, hydraulic fracturing
17fluids and acid stimulation treatment fluids, shall, at a minimum,
19(A) The date of the well stimulation treatment.
20(B) A complete list of the names, Chemical Abstract Service
21(CAS) numbers, and maximum concentration, in percent by mass,
22of each and every chemical constituent of the well stimulation
23treatment fluids used. If a CAS number does not exist for a
24chemical constituent, the well owner or operator may provide
25another unique identifier, if available.
begin delete Chemical information
26claimed as a trade secret, pursuant to subdivision (j), shall be
27identified as such and reported as described in subdivision (j).end delete
28(C) The trade name, the supplier, and a brief
29description of the intended purpose of each additive contained in
30the well stimulation treatment fluid.
31(D) The total volume of
base fluid used during the well
32stimulation treatment, and the identification of whether the base
33fluid is water suitable for irrigation or domestic purposes, water
34not suitable for irrigation or domestic purposes, or a fluid other
36(E) The source, volume, and specific composition and
37disposition of all water, including, but not limited to, all water
38used as base fluid during the well stimulation treatment and
39recovered from the well following the well stimulation treatment
40that is not otherwise reported as produced water pursuant to Section
P10 13227. Any repeated reuse of treated or untreated water for well
2stimulation treatments and well stimulation treatment-related
3activities shall be identified.
4(F) The specific composition and disposition of all well
5stimulation treatment fluids, including waste fluids, other than
7(G) Any radiological components or tracers injected into the
8well as part of, or in order to evaluate, the well stimulation
9treatment, a description of the recovery method, if any, for those
10components or tracers, the recovery rate, and specific disposal
11information for recovered components or tracers.
12(H) The radioactivity of the recovered well stimulation fluids.
13(I) The location of the portion of the well subject to the well
14stimulation treatment and the extent of the fracturing or other
15modification, if any, surrounding the well induced by the treatment.
16(c) (1) Through the consultation
process described in paragraph
17(1) of subdivision (b), the division shall collaboratively identify
18and delineate the existing statutory authority and regulatory
19responsibility relating to well stimulation treatments and well
20stimulation treatment-related activities of the Department of Toxic
21Substances Control, the State Air Resources Board, any local air
22districts, the State Water Resources Control Board, the Department
23of Resources Recycling and Recovery, any regional water quality
24control board, and other public entities, as applicable. This shall
begin delete includeend delete how the respective authority, responsibility, and
26notification and reporting requirements associated with well
27stimulation treatments and well stimulation treatment-related
28activities are divided among each public entity.
29(2) On or before January 1, 2015, the division shall enter into
30formal agreements with the Department of Toxic Substances
31Control, the State Air Resources Board, any local air districts where
32well stimulation treatments may occur, the State Water Resources
33Control Board, the Department of Resources Recycling and
34Recovery, and any regional water quality control board where well
35stimulation treatments may occur, clearly delineating respective
36authority, responsibility, and notification and reporting
37requirements associated with well stimulation treatments and well
38stimulation treatment-related activities, including air and water
39quality monitoring, in order to promote regulatory transparency
P11 1(3) The agreements under paragraph (2) shall specify the
2appropriate public entity responsible for air and water quality
3monitoring and the safe disposal of materials in
4landfills, include trade secret handling protocols, if necessary, and
5provide for ready public access to information related to well
6stimulation treatments and related activities.
9(d) (1) Notwithstanding any other law or regulation, prior to
10performing a well stimulation treatment on a well, the operator
11shall apply for a permit to perform a well stimulation treatment
12with the supervisor or district deputy. The permit application
20shall contain the pertinent data the supervisor requires on printed
21forms supplied by the division or on other forms acceptable to the
22supervisor. The information provided in the permit application shall include, but is not limited to,
25(A) The well identification number and location.
26(B) The time period during which the well stimulation treatment
27is planned to occur.
28(C) A water management plan that shall include all of the
30(i) An estimate of the amount of water to be used in the
31treatment. Estimates of water that is recycled or that could be
32recycled following the well stimulation treatment may be included.
33(ii) The anticipated source of the water to be used in the
35(iii) The disposal method identified for the recovered water
begin delete used the treatment that is not produced
37water included in the statement pursuant to Section 3227.
38(D) A complete list of the names, Chemical Abstract Service
39(CAS) numbers, and estimated concentrations, in percent by mass,
40of each and every chemical constituent of the well stimulation
P12 1fluids anticipated to be used in the treatment. If a CAS number
2does not exist for a chemical constituent, the well owner or operator
3may provide another unique identifier, if available.
begin delete Chemical
4information claimed as a trade secret, pursuant to subdivision (j),
5shall be identified as such and reported as described in subdivision
7(E) The planned location of the well stimulation treatment on
8the well bore, the estimated length, height, and direction of the
9induced fractures or other planned modification, if any, and the
10location of existing wells, including plugged and abandoned wells,
11that may be impacted by these fractures and modifications.
12(F) A groundwater monitoring plan. A groundwater monitoring
13plan is not required if the appropriate regional water quality control
14board confirms that the well subject to the proposed well
15stimulation treatment does not or will not penetrate or does not or
16will not influence an aquifer that is designated for a beneficial use.
17The groundwater monitoring plan shall include, at a minimum, all
18of the following information:
19(i) The current water quality of the groundwater basin through
20which the well subject to the proposed well stimulation treatment
21is or will be drilled that is sufficient to characterize the quality of
22any aquifer through which the well is or will be drilled.
23(ii) An estimate of the zone of influence of the well subject to
24the proposed well stimulation treatment.
25(iii) Water quality data or a plan to obtain data regarding the
26presence and concentration of the constituents to be used in, or
27that can be influenced by, the well subject to the proposed well
29(iv) A plan that specifies sites for monitoring wells designed to
30detect contamination due to operation of the well subject to the
31proposed well stimulation treatment until the well is plugged and
32abandoned. The plan shall also include provisions for emergency
33implementation in the event of well or well casing failure or other
34event with the potential to contaminate groundwater.
5(G) The estimated amount of treatment-generated waste
6materials that are not reported in subparagraph (C) and an identified
7disposal method for the waste materials.
8(2) (A) The supervisor or district deputy shall review the well
9stimulation treatment permit application and may approve the
10permit if the application is complete.
11(B) A well stimulation treatment or repeat well stimulation
12treatment shall not be performed on any well without a valid permit
13that the supervisor or district deputy has approved.
14(C) A permit describing a well stimulation treatment that
15presents unreasonable risk or is incomplete shall not be approved.
16(3) The well stimulation treatment
begin delete shall be completed within permit.
17one year of the issuance of theend delete
19(4) Within five business days of issuing a permit to perform a
20well stimulation treatment, the division shall provide a copy of the
21permit to the appropriate regional water quality control board or
22boards and to the local planning entity where the well, including
23its subsurface portion, is located. The division shall also post the
24permit on the publicly accessible portion of its Internet Web site
25within five business days of issuing a permit.
26(5) (A) The division shall provide a copy of the approved well
27stimulation treatment permit and information on the
28 water sampling and testing
begin delete available through the regional water
to every tenant of the surface property and
29quality control boardend delete
30every surface property owner or authorized agent of that owner
31whose property line location is one of the following:
32(i) Within a 1,500 foot radius of the wellhead.
33(ii) Within 500 feet from the horizontal projection of all
34subsurface portions of the designated well to the surface.
35(B) A well stimulation treatment shall not commence before 30
36calendar days after the permit copies pursuant to subparagraph (A)
38(6) (A) A property owner notified pursuant to paragraph (5)
begin delete the regional water quality control board to perform,
water quality sampling and testing on any water well suitable for drinking or
40and the regional water quality control board or its contractors shall
P14 1perform,end delete
3irrigation purposes and on any surface water suitable for drinking
4or irrigation purposes as follows:
5(i) Baseline measurements prior to the commencement of the
6 well stimulation treatment.
7(ii) Followup measurements after the well stimulation treatment
8on the same schedule as the pressure testing of the well casing of
9the treated well.
10(B) The regional water quality control board
begin delete may contract with independent
begin delete third partyend delete
begin delete adheresend delete
13board-specified standards and protocols to perform the water
14sampling and testing.
18(C) A tenant notified pursuant to paragraph (5)
21shall receive information on the results of the water testing to the
22extent authorized by his or her lease and, where the tenant has
23lawful use of the ground or surface water identified in subparagraph
24(A), the tenant may independently contract for similar groundwater
25or surface water testing.
26(7) If warranted, the regional water quality control board shall
27have the authority to retain an appropriately prepared and stored
28baseline sample or samples collected pursuant to paragraph (6) for
29as long as the planned analytical method or methods would provide
32 The division shall retain a list of the entities and property
33owners notified pursuant to paragraphs (4) and (5).
35 The operator shall provide notice to the division at least 72
36hours prior to the actual start of the well stimulation treatment in
37order for the division to witness the treatment.
38(e) The Secretary of the Natural Resources Agency shall notify
39the Joint Legislative Budget Committee and the chairs of the
40Assembly Natural Resources, Senate Environmental Quality, and
P15 1Senate Natural Resources and Water Committees on the progress
2of the independent scientific study on well stimulation and related
3activities. The first progress report shall be provided to the
4Legislature on or before April 1, 2014, and progress reports shall
5continue every four months thereafter until the independent study
6is completed, including a peer review of the study by independent
8(f) If a well stimulation treatment is performed on a well, a
9supplier that performs any part of the stimulation or provides
10additives directly to the operator for a well stimulation treatment
11shall furnish the operator with information needed for the operator to comply with subdivision (g).
begin delete13 If a supplier claims trade secret protection
pursuant to subdivision
14(j), the supplier shall notify the operator and provide to the operator
15substitute information, as described in subdivision (j), suitable for
16public disclosure.end delete
17possible but no later than 30 days following the conclusion of the
18well stimulation treatment.
19(g) (1) Within 60 days following cessation of a well stimulation
20treatment on a well, the operator shall post or cause to have posted
21to an Internet Web site designated or maintained by the division
22and accessible to the public, all of the well stimulation fluid
23composition and disposition information required to be collected
24pursuant to rules and regulations adopted under subdivision (b),
25including well identification number and location. This shall
26include the collected water quality data, which the operator shall
27report electronically to the State Water Resources Control Board.
10(2) The division’s Internet Web site shall be operational on or
11before January 1, 2016, and the division may direct reporting to
12an alternative Internet Web site developed by the Ground Water
13Protection Council and the Interstate Oil and Gas Compact
14Commission in the interim. The reported information shall be
15organized on the division’s Internet Web site in a format, such as
16a spreadsheet, that allows the public to easily search and aggregate,
17to the extent practicable, each type of information required to be
18collected pursuant to subdivision (b) using search functions on
19that Internet Web site.
20(h) The operator is responsible for compliance with this section.
21(i) (1) All geologic features within a distance reflecting an
22appropriate safety factor of the fracture zone for well stimulation
23treatments that fracture the formation and that have the potential
24to either limit or facilitate the migration of fluids outside of the
25fracture zone shall be identified and added to the well history.
26Geologic features include, but are not limited to, seismic faults.
27(2) For the purposes of this section, the “fracture zone” is
28defined as the volume surrounding the well bore where fractures
29were created or enhanced by the well stimulation treatment. The
30safety factor shall be at least five and may vary depending upon
begin deleteThe supplier may claim trade secret protection for the
33chemical composition of additives, whose use is not otherwise
34prohibited by law, pursuant to end delete
37Trade Secrets Act (Title 5 (commencing with Section 3426) of
38Part 1 of Division 4 of the Civil Code).
16 If a supplier believes that information regarding a
17chemical constituent of a well stimulation fluid is a trade secret,
18the supplier shall nevertheless disclose the information to the
19division in conjunction with a well stimulation treatment permit
20application, if not previously disclosed, within 30 days following
21cessation of well stimulation on a well, and shall notify the division
22in writing of that belief.
9(3) In order to substantiate the trade secret claim to the division,
10the supplier shall provide the following information to the division:
11(A) The extent to which the information is known outside the
12business of the supplier submitting the information, and whether
13or not all individuals with that knowledge are bound by
15(B) The extent to which the information is known by the
16supplier’s employees and others involved in the supplier’s business,
17and whether or not all those individuals are bound by nondisclosure
19(C) The extent of measures taken by the supplier to restrict
20access to and guard the secrecy of the information, and whether
21or not the supplier plans to continue utilizing those measures.
22(D) The estimated value of the information to the supplier and
24(E) The estimated amount of effort and money expended by the
25supplier in developing the information, and a description of the
26nature and extent of harm that would be caused if the information
27were made public.
28(F) The estimated ease or difficulty with which the information
29could be properly acquired or duplicated by others, and an
30explanation of why the chemical identity is not readily discoverable
31through reverse engineering.
32(G) Copies of, or references to, any pertinent trade secret or
33other confidentiality determinations previously made by the
34division or other public agencies, including court orders or
37 If the division determines that the information provided in
38support of a request for trade secret protection pursuant to
begin delete (3)end delete is incomplete, the division shall notify the
40supplier and the supplier shall have 30 days to complete the
P19 1submission. An incomplete submission does not meet the
2substantive criteria for trade secret designation.
4 If the division determines that the information provided in
5support of a request for trade secret protection does not meet the
6substantive criteria for trade secret designation, the department
7shall notify the supplier by certified mail of its determination. The
8division shall release the information to the public, but not earlier
9than 60 days after the date of mailing the determination, unless,
10prior to the expiration of the 60-day period, the supplier obtains
11an action in an appropriate court for a declaratory judgment that
12the information is subject to protection or for a preliminary
13injunction prohibiting disclosure of the information to the public
14and provides notice to the division of the court order.
begin delete If no order
15or declaratory judgment is obtained, the division shall release the
16information to the public by revising the information provided
17pursuant to subdivision (g).end delete
19 The supplier is not required to disclose trade secret
20information to the operator.
21(7) This subdivision does not permit a supplier to refuse to
22disclose the information required pursuant to this section to the
24(8) To comply with the public disclosure requirements of this
25section, the supplier shall indicate where trade secret information
26 has been withheld and provide substitute information for public
27disclosure. The substitute information shall be a list, in any order,
28of the chemical constituents of the additive, including CAS
29identification numbers, whose specific composition is a trade
30secret. Information on the relative amounts or concentration of the
31constituents of additives whose specific composition is a trade
32secret shall not be publicly disclosed. The division shall review
33and approve the supplied substitute information.
34(9) Except as provided in subparagraph (B) of paragraph (11),
35the division shall protect from disclosure any trade secret claimed
36by the supplier, if that trade secret is not a public record.
37(10) The supplier shall notify the division in writing within 30
38days of any changes to information provided to the division to
39support a trade secret claim, including if the information is no
40longer a trade secret.
P20 1(11)end delete
2 Upon receipt of a request for the release of
3 information to the public,
begin delete which includes information the supplier
4has notified the division is a trade secret and is not a public record,end delete
5 the following procedure applies:
6(A) The division shall notify the
supplier of the request in
7writing by certified mail, return receipt requested.
8(B) The division shall release the information to the public, but
9not earlier than 60 days after the date of mailing the notice of the
10request for information, unless, prior to the expiration of the 60-day
11period, the supplier obtains an action in an appropriate court for a
12declaratory judgment that the information is subject to protection
13or for a preliminary injunction prohibiting disclosure of the
14information to the public and provides notice to the division of
35(12) (A) Except as provided in subparagraph (B) of paragraph
36(11), trade secret information is not a public record and shall not
37be disclosed to anyone except to an officer or employee of the
38division, the state, local governments, including, but not limited
39to, local air districts, or the United States, in connection with the
40official duties of that officer or employee, to a health professional
P21 1under any law for the protection of health, or to contractors with
2the division or other government entities and their employees if,
3in the opinion of the division, disclosure is necessary and required
4for the satisfactory performance of a contract, for performance of
5work, or to protect health and safety.
6(B) In order to receive trade secret information, a health
7professional shall have a reasonable basis to suspect the
8information is needed to diagnose or treat a patient.
10 A health professional may share trade secret information
11with other persons as may be professionally necessary, in order to
12diagnose or treat a patient, including, but not limited to, the patient
13and other health professionals, subject to state and federal laws
14restricting disclosure of medical records including, but not limited
15to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
16Division 1 of the Civil Code.
17(D) The division shall develop a procedure for the timely
18disclosure of trade secret information in the event of an emergency
19or to diagnose or treat a patient pursuant to this subdivision.
20(E) Confidentiality of trade secret information from public
21disclosure shall be maintained by those who receive trade secret
22information pursuant to the provisions of this subdivision, subject
23to the enforcement provisions of this division, and any additional
24 applicable state and federal law.
26 For purposes of this paragraph, “health professional” means
27any person licensed or certified pursuant to Division 2
28(commencing with Section 500) of the Business and Professions
29Code, the Osteopathic Initiative Act, the Chiropractic Initiative
30Act, or the Emergency Medical Services System and the
31Prehospital Emergency Medical Care Personnel Act (Division 2.5
32(commencing with Section 1797) of the Health and Safety Code).
37(13) (A) The supplier shall provide trade secret information in
38order to protect public health to any health professional,
39toxicologist, or epidemiologist who is employed in the field of
40public health and who provides a written statement of need. The
P22 1written statement of need shall include the public health purposes
2and shall explain the reason the disclosure of the specific chemical
3and its concentration is required in lieu of information describing
4the properties and effects of the chemical.
5(B) Confidentiality of trade secret information from public
6disclosure shall be maintained by those who receive trade secret
7information pursuant to the provisions of this paragraph subject
8to the enforcement provisions of this division and any additional
9applicable state and federal law.
10(k) A well granted confidential status pursuant to Section 3234
11shall comply with this section, with the exception of the disclosure
12of well stimulation fluids pursuant to subdivision (g) which shall
13not be required until the confidential status of the well ceases.
14(l) The division shall perform random periodic spot check
15inspections to ensure that the information provided on well
16stimulation treatments is accurately reported, including that the
17estimates provided prior to the commencement of the well
18stimulation treatment are reasonably consistent with the well
20(m) Where the division shares jurisdiction over a well or the
21 well stimulation treatment on a well with a federal entity, the
22division’s rules and regulations shall apply in addition to all
begin delete lawend delete and regulations.
24(n) This article does not relieve the division or any other agency
25from complying with any other provision of existing laws and
Section 3213 of the Public Resources Code is amended
The history shall show the location and amount of
35sidetracked casings, tools, or other material, the depth and quantity
36of cement in cement plugs, the shots of dynamite or other
37explosives, and the results of production and other tests during
38drilling operations. All data on well stimulation treatments pursuant
39to Section 3160 shall be recorded in the history.
Section 3215 of the Public Resources Code is amended
(a) Within 60 days after the date of cessation of drilling,
4rework, well stimulation treatment, or abandonment operations,
5or the date of suspension of operations, the operator shall file with
6the district deputy, in a form approved by the supervisor, true
7copies of the log, core record, and history of work performed, and,
8if made, true and reproducible copies of all electrical, physical, or
9chemical logs, tests, or surveys. Upon a showing of hardship, the
10supervisor may extend the time within which to comply with this
11section for a period not to exceed 60 additional days.
12(b) The supervisor shall include information or electronic links
13to information provided pursuant to subdivision (g) of Section
143160 on existing publicly accessible maps on the division’s Internet
15Web site, and make the information available such that well
16stimulation treatment and related information are associated with
17each specific well. If data is reported on an Internet Web site not
18maintained by the division pursuant to paragraph (2) of subdivision
19(g) of Section 3160, the division shall provide electronic links to
20that Internet Web site. The public shall be able to search and sort
21the hydraulic well stimulation and related information by at least
22the following criteria:
23(1) Geographic area.
25(3) Chemical constituent.
26(4) Chemical Abstract Service number.
27(5) Time period.
29(c) Notwithstanding Section 10231.5 of the Government Code,
30on or before January 1, 2016, and annually thereafter, the
31supervisor shall, in compliance with Section 9795 of the
32Government Code, prepare and transmit to the Legislature a
33comprehensive report on well stimulation treatments in the
34exploration and production of oil and gas resources in California.
35The report shall include aggregated data of all of the information
36required to be reported pursuant to Section 3160 reported by the
37district, county, and operator. The report also shall include relevant
38additional information, as necessary, including, but not limited to,
39all of the following:
P24 1(1) Aggregated data detailing the disposition of any produced
2water from wells that have undergone well stimulation treatments.
3(2) Aggregated data describing the formations where wells have
4received well stimulation treatments including the range of safety
5factors used and fracture zone lengths.
6(3) The number of emergency responses to a spill or release
7associated with a well stimulation treatment.
8(4) Aggregated data detailing the number of times trade secret
9information was not provided to the public, by county and by each
10company, in the preceding year.
11(5) Data detailing the loss of well and well
casing integrity in
12the preceding year for wells that have undergone well stimulation
13treatment. For comparative purposes, data detailing the loss of
14well and well casing integrity in the preceding year for all wells
15shall also be provided. The cause of each well and well casing
16failure, if known, shall also be provided.
17(6) The number of spot check inspections conducted pursuant
18to subdivision (l) of Section 3160, including the number of
19inspections where the composition of well stimulation fluids were
20verified and the results of those inspections.
21(7) The number of well stimulation treatments witnessed by the
23(8) The number of enforcement actions associated with well
24stimulation treatments, including, but not limited to, notices of
25deficiency, notices of violation, civil or criminal enforcement
26 actions, and any penalties assessed.
27(d) The report shall be made publicly available and an electronic
28version shall be available on the division’s Internet Web site.
Section 3236.5 of the Public Resources Code is
30amended to read:
(a) A person who violates this chapter or a regulation
32implementing this chapter is subject to a civil penalty not to exceed
33twenty-five thousand dollars ($25,000) for each violation. A person
34who commits a violation of Article 3 (commencing with Section
353150) is subject to a civil penalty of not less than ten thousand
36dollars ($10,000) and not to exceed twenty-five thousand dollars
37($25,000) per day per violation. An act of God and an act of
38vandalism beyond the reasonable control of the operator shall not
39be considered a violation. The civil penalty shall be imposed by
40an order of the supervisor pursuant to Section 3225 upon a
P25 1determination that a violation has been committed by the person
2charged. The imposition of a civil penalty under this section shall
3be in addition to any other penalty provided by law for the
4violation. When establishing the amount of the civil penalty
5pursuant to this section, the supervisor shall consider, in addition
6to other relevant circumstances, all of the following:
7(1) The extent of harm caused by the violation.
8(2) The persistence of the violation.
9(3) The pervasiveness of the violation.
10(4) The number of prior violations by the same violator.
11(b) An order of the supervisor imposing a civil penalty shall be
12reviewable pursuant to Article 6 (commencing with Section 3350).
13When the order of the supervisor has become final and the penalty
14has not been paid, the supervisor may apply to the appropriate
15superior court for an order directing payment of the civil penalty.
16The supervisor may also seek from the court an order directing
17that production from the well or use of the production facility that
18is the subject of the civil penalty order be discontinued until the
19violation has been remedied to the satisfaction of the supervisor
20and the civil penalty has been paid.
21(c) Any amount collected under this section shall be deposited
22in the Oil, Gas, and Geothermal Administrative Fund.
Section 3401 of the Public Resources Code is amended
(a) The proceeds of charges levied, assessed, and
26collected pursuant to this article upon the properties of every person
27operating or owning an interest in the production of a well shall
28be used exclusively for the support and maintenance of the
29department charged with the supervision of oil and gas operations.
30(b) Notwithstanding subdivision (a), the proceeds of charges
31levied, assessed, and collected pursuant to this article upon the
32properties of every person operating or owning an interest in the
33production of a well undergoing a well stimulation treatment, may
34be used by public entities, subject to appropriation by the
35Legislature, for all costs associated with
begin delete both of the
3(1) Well stimulation treatments, including scientific studies
4required to evaluate the treatment, inspections, and any air and
5water quality sampling, monitoring, and testing performed by
7(2) The development and implementation of the consultation
8process and agreements required pursuant to subdivisions (b) and
9(c) of Section 3160.
No reimbursement is required by this act pursuant to
30Section 6 of Article XIII B of the California Constitution because
31the only costs that may be incurred by a local agency or school
32district will be incurred because this act creates a new crime or
33infraction, eliminates a crime or infraction, or changes the penalty
34for a crime or infraction, within the meaning of Section 17556 of
35the Government Code, or changes the definition of a crime within
36the meaning of Section 6 of Article XIII B of the California