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
begin delete presents an unreasonable risk orend delete 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 provide that the well stimulation treatment permit expires 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 delete 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 delete 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, as specified, but would, with certain exceptions, 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 costs of the State Water Resources Control Board and the regional water quality control boards in carrying out groundwater monitoring, as specified.
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.
(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.
This bill would require the state board, on or before
begin delete Januaryend delete 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.
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
18(d) The public disclosure of chemical information required by
19this act ensures that potential public exposure to, and dose received
20from, well stimulation treatment fluid chemicals can be reasonably
P6 1(e) The Legislature encourages the use or reuse of treated or
2untreated water and produced water for well stimulation treatments
3and well stimulation treatment-related activities.
Article 3 (commencing with Section 3150) is added
5to Chapter 1 of Division 3 of the Public Resources Code, to read:
“Additive” means a substance or combination of
10substances added to a base fluid for purposes of preparing well
11stimulation treatment fluid which includes, but is not limited to,
12an acid stimulation treatment fluid or a hydraulic fracturing fluid.
13An additive may, but is not required to, serve additional purposes
14beyond the transmission of hydraulic pressure to the geologic
15formation. An additive may be of any phase and includes
“Base fluid” means the continuous phase fluid used in
18the makeup of a well stimulation treatment fluid, including, but
19not limited to, an acid stimulation treatment fluid or a hydraulic
20fracturing fluid. The continuous phase fluid may include, but is
21not limited to, water, and may be a liquid or a hydrocarbon or
22nonhydrocarbon gas. A well stimulation treatment may use more
23than one base fluid.
“Hydraulic fracturing” means a well stimulation
25treatment that, in whole or in part, includes the pressurized injection
26of hydraulic fracturing fluid or fluids into an underground geologic
27formation in order to fracture or with the intent to fracture the
28formation, thereby causing or enhancing, for the purposes of this
29division, the production of oil or gas from a well.
“Well stimulation treatment fluid” means a base fluid
31mixed with physical and chemical additives for the purpose of a well stimulation treatment. A well
33stimulation treatment may include more than one well stimulation
34treatment fluid. Well stimulation treatment fluids include, but are
35not limited to, hydraulic fracturing fluids and acid stimulation
“Proppants” means materials inserted or injected into
38the underground geologic formation that are intended to prevent
39fractures from closing.
“Supplier” means an entity performing a well stimulation
2treatment or an entity supplying an additive or proppant directly
3to the operator for use in a well stimulation treatment.
“Surface property owner” means the owner of real
5property as shown on the latest equalized assessment roll or, if
6more recent information than the information contained on the
7assessment roll is available, the owner of record according to the
8county assessor or tax collector.
For purposes of this article, “well stimulation
10treatment” means any treatment of a well designed to enhance oil
11and gas production or recovery. Well stimulation treatments include, but are not
13limited to, hydraulic fracturing treatments and acid well stimulation
begin delete Wellend delete
15 stimulation treatments do not include steam flooding,
16water flooding, or cyclic steaming and do not include routine well
17cleanout work, routine well maintenance, bottom hole pressure surveys,
19or routine activities that do not affect the integrity of the well or
“Acid well stimulation treatment” means a well
22stimulation treatment that uses, in whole or in part, the application
23of one or more acids to the well or underground geologic
begin delete formation . The acid well stimulation treatment may
24with the intent to cause or enhance the production of oil or gas
25from a wellend delete
26be at any applied pressure and may be used in combination with
27hydraulic fracturing treatments or other well stimulation treatments.
“Flowback fluid” means the fluid recovered from the
34treated well before the commencement of oil and gas production
35from that well following a well stimulation treatment. The flowback
36fluid may include materials of any phase.
(a) On or before January 1, 2015, the Secretary of the
38Natural Resources Agency shall cause to be conducted an independent scientific study on well stimulation
40treatments, including, but not limited to, hydraulic fracturing and
P8 1acid well stimulation treatments. The scientific study shall evaluate
2the hazards and risks and potential hazards and risks that well
3stimulation treatments pose to natural resources and public,
4occupational, and environmental health and safety. The scientific
5study shall do all of the following:
6(1) Follow the well-established standard protocols of the
7scientific profession, including, but not limited to, the use of
8recognized experts, peer review, and publication.
9(2) Identify areas with existing and potential conventional and
10unconventional oil and gas reserves where well stimulation
11treatments are likely to spur or enable oil and gas exploration and
13(3) Evaluate all aspects and effects of well stimulation
14treatments, including, but not limited to, the well stimulation
15treatment, additive and water transportation to and from the well
16site, mixing and handling of the well stimulation treatment fluids
17and additives onsite, the use and potential for use of nontoxic
18additives and the use or reuse of treated or produced water in well
19stimulation treatment fluids, flowback fluids and handling,
20treatment, and disposal of flowback fluids and other materials, if
21any, generated by the treatment. Well stimulation treatments
25include, but are not limited to, hydraulic fracturing and acid well
31(4) Consider, at a minimum, atmospheric emissions, including
32potential greenhouse gas emissions, the potential degradation of
33air quality, potential impacts on wildlife, native plants, and habitat,
34including habitat fragmentation, potential water and surface
35contamination, potential noise pollution, induced seismicity, and
36the ultimate disposition, transport, transformation, and toxicology
37of well stimulation treatments, including acid well stimulation
38fluids, hydraulic fracturing fluids, and waste hydraulic fracturing
39fluids and acid well stimulation in the environment.
6 Include a hazard assessment and risk analysis addressing
7occupational and environmental exposures to well stimulation
8treatments, including hydraulic fracturing treatments, hydraulic
9fracturing treatment-related processes, acid well stimulation
10treatments, acid well stimulation treatment-related processes, and
11the corresponding impacts on public health and safety with the
12participation of the Office of Environmental Health Hazard
15 Clearly identify where additional information is
16to inform and improve the analyses.
17(b) (1) (A) On or before January 1, 2015, the division, in
18consultation with the Department of Toxic Substances Control,
19the State Air Resources Board, the State Water Resources Control
20Board, the Department of Resources Recycling and Recovery, and
21any local air districts and regional water quality control boards in
22areas where well stimulation treatments, including acid well
23stimulation treatments and hydraulic fracturing treatments may
24occur, shall adopt rules and regulations specific to well stimulation
25treatments. The rules and regulations shall include, but are not
26limited to, revisions, as needed, to the rules and regulations
27governing construction of wells and well casings to ensure integrity
28of wells, well casings, and the geologic and hydrologic isolation
29of the oil and gas formation during and following well stimulation
30treatments, and full disclosure of the composition and disposition
31of well stimulation fluids, including, but not limited to, hydraulic
32fracturing fluids, acid well stimulation fluids, and flowback fluids.
33(B) The rules and regulations shall additionally include
begin delete a for the operator to provide for baseline and
37followup water testing upon request as specified in paragraph
begin delete (6)end delete
38 of subdivision (d).
16(2) Full disclosure of the composition and disposition of well
17stimulation fluids, including, but not limited to, hydraulic fracturing
18fluids and acid stimulation treatment fluids, shall, at a minimum,
20(A) The date of the well stimulation treatment.
21(B) A complete list of the names, Chemical Abstract Service
22(CAS) numbers, and maximum concentration, in percent by mass,
23of each and every chemical constituent of the well stimulation
24treatment fluids used. If a CAS number does not exist for a
25chemical constituent, the well owner or operator may provide
26another unique identifier, if available.
27(C) The trade name, the supplier, concentration, and a brief
28description of the intended purpose of each additive contained in
29the well stimulation treatment fluid.
30(D) The total volume of base fluid used during the well
31stimulation treatment, and the identification of whether the base
32fluid is water suitable for irrigation or domestic purposes, water
33not suitable for irrigation or domestic purposes, or a fluid other
35(E) The source, volume, and specific composition and
36disposition of all water, including, but not limited to, all water
37used as base fluid during the well stimulation treatment and
38recovered from the well following the well stimulation treatment
39that is not otherwise reported as produced water pursuant to Section
403227. Any repeated reuse of treated or untreated water for well
P11 1stimulation treatments and well stimulation treatment-related
2activities shall be identified.
3(F) The specific composition and disposition of all well
4stimulation treatment fluids, including waste fluids, other than
6(G) Any radiological components or tracers injected into the
7well as part of, or in order to evaluate, the well stimulation
8treatment, a description of the recovery method, if any, for those
9components or tracers, the recovery rate, and specific disposal
10information for recovered components or tracers.
11(H) The radioactivity of the recovered well stimulation fluids.
12(I) The location of the portion of the well subject to the well
13stimulation treatment and the extent of the fracturing or other
14modification, if any, surrounding the well induced by the treatment.
15(c) (1) Through the consultation process described in paragraph
16(1) of subdivision (b), the division shall collaboratively identify
17and delineate the existing statutory authority and regulatory
18responsibility relating to well stimulation treatments and well
19stimulation treatment-related activities of the Department of Toxic
20Substances Control, the State Air Resources Board, any local air
21districts, the State Water Resources Control Board, the Department
22of Resources Recycling and Recovery, any regional water quality
23control board, and other public entities, as applicable. This shall
24specify how the respective authority, responsibility, and notification
25and reporting requirements associated with well stimulation
26treatments and well stimulation treatment-related activities are
27divided among each public entity.
28(2) On or before January 1, 2015, the division shall enter into
29formal agreements with the Department of Toxic Substances
30Control, the State Air Resources Board, any local air districts where
31well stimulation treatments may occur, the State Water Resources
32Control Board, the Department of Resources Recycling and
33Recovery, and any regional water quality control board where well
34stimulation treatments may occur, clearly delineating respective
35authority, responsibility, and notification and reporting
36requirements associated with well stimulation treatments and well
37stimulation treatment-related activities, including air and water
38quality monitoring, in order to promote regulatory transparency
P12 1(3) The agreements
under paragraph (2) shall specify the
2appropriate public entity responsible for air and water quality
3monitoring and the safe and lawful 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.
7(4) Regulations, if necessary, shall be revised appropriately to
8incorporate the agreements under paragraph (2).
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.
begin delete At the supervisor’s
The well stimulation treatment permit application
13discretion, and if applied for concurrently, the well stimulation
14treatment permit described in this section may be combined with
15the well drilling and related operation permit required pursuant to
16Section 3203 into a single combined permit. The time period
17available for approval of the portion of the combined permit
18applicable to well stimulation is subject to the terms of this section,
19not Section 3203.end delete
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 well stimulation
23treatment 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
begin delete that isend delete recycled begin delete or that could following the well stimulation treatment may be
32be recycledend delete
34(ii) The anticipated source of the water to be used in the
36(iii) The disposal method identified for the recovered water in
37the flowback fluid from the treatment that is not produced water
38included in the statement pursuant to Section 3227.
39(D) A complete list of the names, Chemical Abstract Service
40(CAS) numbers, and estimated concentrations, in percent by mass,
P13 1of each and every chemical constituent of the well stimulation
2fluids anticipated to be used in the treatment. If a CAS number
3does not exist for a chemical constituent, the well owner or operator
4may provide another unique identifier, if available.
5(E) The planned location of the well stimulation treatment on
6the well bore, the estimated length, height, and direction of the
7induced fractures or other planned modification, if any, and the
8location of existing wells, including plugged and abandoned wells,
9that may be impacted by these fractures and modifications.
10(F) A groundwater monitoring plan. Required groundwater
11monitoring in the vicinity of the well subject to the well stimulation
12treatment shall be satisfied by one of the following:
13(i) The well is located within the boundaries of an existing oil
14or gas field-specific or regional monitoring program developed
15pursuant to Section 10783 of the Water Code.
21 Through a well-specific monitoring plan implemented by
22the owner or operator meeting the model criteria established
23pursuant to Section 10783 of the Water Code, and submitted to
24the appropriate regional water board for review.
estimated amount of treatment-generated waste
26materials that are not reported in subparagraph (C) and an identified
27disposal method for the waste materials.
7 (A) The supervisor or district deputy shall review the well
8stimulation treatment permit application and may approve the
9permit 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.
19 The well stimulation treatment permit shall expire one year
20from the date that the permit is issued.
22 Within five business days of issuing a permit to perform a
23well stimulation treatment, the division shall provide a copy of the
24permit to the appropriate regional water quality control board or
25boards and to the local planning entity where the well, including
26its subsurface portion, is located. The division shall also post the
27permit on the publicly accessible portion of its Internet Web site
28within five business days of issuing a permit.
begin deleteThe division shall provide end delete a copy of the approved well stimulation treatment permit and
32information on the available water sampling and testing to every tenant of the surface property and every surface
34property owner or authorized agent of that owner whose property
35line location is one of the following:
36(i) Within a 1,500 foot radius of the wellhead.
37(ii) Within 500 feet from the horizontal projection of all
38subsurface portions of the designated well to the surface.
10 A well stimulation treatment shall not commence before 30
11calendar days after the permit copies pursuant to subparagraph (A)
14 (A) A property owner notified pursuant to paragraph
begin delete (5)end delete
15 may request water quality sampling and testing from a
16designated qualified contractor on any water well suitable for
17drinking or irrigation purposes and on any surface water suitable
18for drinking or irrigation purposes as follows:
19(i) Baseline measurements prior to the commencement of the
20well stimulation treatment.
21(ii) Followup measurements after the well stimulation treatment
22on the same schedule as the pressure testing of the well casing of
23the treated well.
begin delete regional water quality control boardend delete shall designate one or more qualified
26independent third-party contractor or contractors that adhere to
27board-specified standards and protocols to perform the water
28sampling and testing. The well owner or operator shall pay for the
29sampling and testing. The sampling and testing performed shall
30be subject to audit and review by the applicable regional water quality control board.
33(C) The results of the water testing shall be provided to the
34division, appropriate regional water board, and the property owner
35or authorized agent. A tenant notified pursuant to paragraph
begin delete (5)end delete
36 shall receive information on the results of the water testing to
37the extent authorized by his or her lease and, where the tenant has
38lawful use of the ground or surface water identified in subparagraph
39(A), the tenant may independently contract for similar groundwater
40or surface water testing.
P16 1(7)end delete
2 The division shall retain a list of the entities and property
3owners notified pursuant to paragraphs
begin delete (4)end delete and begin delete (5)end delete.
5 The operator shall provide notice to the division at least 72
6hours prior to the actual start of the well stimulation treatment in
7order for the division to witness the treatment.
8(e) The Secretary of the Natural Resources Agency shall notify
9the Joint Legislative Budget Committee and the chairs of the
10Assembly Natural Resources, Senate Environmental Quality, and
11Senate Natural Resources and Water Committees on the progress
12of the independent scientific study on well stimulation and related
13activities. The first progress report shall be provided to the
14Legislature on or before April 1, 2014, and progress reports shall
15continue every four months thereafter until the independent study
16is completed, including a peer review of the study by independent
18(f) If a well stimulation treatment is performed on a well, a
19supplier that performs any part of the stimulation or provides
20additives directly to the operator for a well stimulation treatment
21shall furnish the operator with information suitable for public
22disclosure needed for the operator to comply with subdivision (g).
23This information shall be provided as soon as possible but no later
24than 30 days following the conclusion of the well stimulation
26(g) (1) Within 60 days following cessation of a well stimulation
27treatment on a well, the operator shall post or cause to have posted
28to an Internet Web site designated or maintained by the division
29and accessible to the public, all of the well stimulation fluid
30composition and disposition information required to be collected
31pursuant to rules and regulations adopted under subdivision (b),
32including well identification number and location. This shall
33include the collected water quality data, which the operator shall
34report electronically to the State Water Resources Control Board.
35(2) (A) The division shall commence the process to develop
36an Internet Web site for operators to report the information required
37under this section. The Internet Web site shall be capable of
38organizing the reported information in a format, such as a
39spreadsheet, that allows the public to easily search and aggregate,
40to the extent practicable, each type of information required to be
P17 1collected pursuant to subdivision (b) using search functions on
2that Internet Web site. The Internet Web site shall be functional
3within two years of the Department of Technology’s approval of
4a Feasibility Study Report
begin delete andend delete appropriation authority to fund
5the development of the Internet Web site, whichever occurs latest,
6but no later than January 1, 2016.
7(B) The division may direct reporting to an alternative Internet
8Web site developed by the Ground Water Protection Council and
9the Interstate Oil and Gas Compact Commission in the interim
10until such time as approval
begin delete and end deleteappropriation authority pursuant
11to subparagraph (A) occur. Prior to the implementation of the
12division’s Internet Web site, the division shall obtain the data
13reported by operators to the alternative Internet Web site and make
14it available in an organized electronic format to the public no later
15than 15 days after it is reported to the alternative Web site.
16(h) The operator is responsible for compliance with this section.
17(i) (1) All geologic features within a distance reflecting an
18appropriate safety factor of the fracture zone for well stimulation
19treatments that fracture the formation and that have the potential
20to either limit or facilitate the migration of fluids outside of the
21fracture zone shall be identified and added to the well history.
begin delete include, but are not limited to,end delete seismic
24(2) For the purposes of this section, the “fracture zone” is
25defined as the volume surrounding the well bore where fractures
26were created or enhanced by the well stimulation treatment. The
27safety factor shall be at least five and may vary depending upon
35(j) (1) Public disclosure of well stimulation treatment fluid
36information claimed to contain trade secrets is governed by Section
371060 of the Evidence Code, or the Uniform Trade Secrets Act
38(Title 5 (commencing with Section 3426) of Part 1 of Division 4
39of the Civil Code), and the California Public Records Act (Chapter
P18 13.5 (commencing with Section 6250) of Division 7 of Title 1 of
2the Government Code).
3(2) Notwithstanding any other law or regulation, none of the
4following information shall be protected as a trade secret:
5(A) The identities of the chemical constituents of additives,
6including CAS identification numbers.
7(B) The concentrations of the additives in the well stimulation
9(C) Any air or other pollution monitoring data.
10(D) Health and safety data associated with well stimulation
12(E) The chemical composition of the flowback fluid.
13(3) If a trade secret claim is invalid or invalidated, the division
14shall release the information to the public by revising the
15information released pursuant to subdivision (g). The supplier shall
16notify the division of any change in status within 30 days.
17(4) (A) If a supplier believes that information regarding a
18chemical constituent of a well stimulation fluid is a trade secret,
19the supplier shall nevertheless disclose the information to the
20division in conjunction with a well stimulation treatment permit
21application, if not previously disclosed, within 30 days following
22cessation of well stimulation on a well, and shall notify the division
23in writing of that belief.
24(B) A trade secret claim shall not be made after initial disclosure
25of the information to the division.
26(C) To comply with the public disclosure requirements of this
27section, the supplier shall indicate where trade secret information
28has been withheld and provide substitute information for public
29disclosure. The substitute information shall be a list, in any order,
30of the chemical constituents of the additive, including CAS
31identification numbers. The division shall review and approve the
32supplied substitute information.
33(D) This subdivision does not permit a supplier to refuse to
34disclose the information required pursuant to this section to the
36(5) In order to substantiate the trade secret claim, the supplier
37shall provide information to the division that shows all of the
P19 1(A) The extent to which the trade secret information is known
2by the supplier’s employees, others involved in the supplier’s
3business and outside the supplier’s business.
4(B) The measures taken by the supplier to guard the secrecy of
5the trade secret information.
6(C) The value of the trade secret information to the supplier and
amount of effort or money the supplier expended
9developing the trade secret information and the ease or difficulty
10with which the trade secret information could be acquired or
11duplicated by others.
12(6) If the division determines that the information provided in
13support of a request for trade secret protection pursuant to
14paragraph (5) is incomplete, the division shall notify the supplier
15and the supplier shall have 30 days to complete the submission.
16An incomplete submission does not meet the substantive criteria
17for trade secret designation.
18(7) If the division determines that the information provided in
19support of a request for trade secret protection does not meet the
20substantive criteria for trade secret designation, the department
21shall notify the supplier by certified mail of its determination. The
22division shall release the information to the public, but not earlier
23than 60 days after the date of mailing the determination, unless,
24prior to the expiration of the 60-day period, the supplier obtains
25an action in an appropriate court for a declaratory judgment that
26the information is subject to protection or for a preliminary
27injunction prohibiting disclosure of the information to the public
28and provides notice to the division of the court order.
29(8) The supplier is not required to disclose trade secret
30information to the operator.
31(9) Upon receipt of a request for the release of trade secret
32information to the public, the following procedure applies:
33(A) The division shall notify the supplier of the request in
34writing by certified mail, return receipt requested.
35(B) The division shall release the information to the public,
36not earlier than 60 days after the date of mailing the notice of the
37request for information, unless, prior to the expiration of the 60-day
38period, the supplier obtains an action in an appropriate court for a
39declaratory judgment that the information is subject to protection
40or for a preliminary injunction prohibiting disclosure of the
P20 1information to the public and provides notice to the division of
3(10) The division shall develop a timely procedure to provide
4trade secret information in the following circumstances:
5(A) To an officer or employee of the division, the state, local
6governments, including, but not limited to, local air districts, or
7the United States, in connection with the official duties of that
8officer or employee, to a health professional under any law for the
9protection of health, or to contractors with the division or other
10government entities and their employees if, in the opinion of the
11division, disclosure is necessary and required for the satisfactory
12performance of a contract, for performance of work, or to protect
13health and safety.
14(B) To a health professional in the event of an emergency or to
15diagnose or treat a patient.
16(C) In order to protect public health, to any health professional,
17toxicologist, or epidemiologist who is employed in the field of
18public health and who provides a written statement of need. The
19written statement of need shall include the public health purposes
20of the disclosure and shall explain the reason the disclosure of the
21specific chemical and its concentration is required.
22(D) A health professional may share trade secret information
23with other persons as may be professionally necessary, in order to
24diagnose or treat a patient, including, but not limited to, the patient
25and other health professionals, subject to state and federal laws
26restricting disclosure of medical records including, but not limited
27to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
28Division 1 of the Civil Code.
29(E) For purposes of this paragraph, “health professional” means
30any person licensed or certified pursuant to Division 2
31(commencing with Section 500) of the Business and Professions
32Code, the Osteopathic Initiative Act, the Chiropractic Initiative
33Act, or the Emergency Medical Services System and the
34Prehospital Emergency Medical Care Personnel Act (Division 2.5
35(commencing with Section 1797) of the Health and Safety Code).
36(F) A person in possession of, or access to, confidential trade
37secret information pursuant to the provisions of this subdivision
38may disclose this information to any person who is authorized to
39receive it. A written confidentiality agreement shall not be required.
P21 1(k) A well granted confidential status pursuant to Section 3234
begin delete comply with this section, with the exception of the disclosure well stimulation
begin delete fluidsend delete
pursuant to subdivision (g) begin delete which shall not be until the confidential status of the well ceases.
9(l) The division shall perform random periodic spot check
10inspections to ensure that the information provided on well
11stimulation treatments is accurately reported, including that the
12estimates provided prior to the commencement of the well
13stimulation treatment are reasonably consistent with the well
15(m) Where the division shares jurisdiction over a well or the
16well stimulation treatment on a well with a federal entity, the
17division’s rules and regulations shall apply in addition to all
18applicable federal laws and regulations.
19(n) This article does not relieve the division or any other agency
20from complying with any other provision of existing
begin delete laws andend delete
22(o) Well stimulation treatments used for routine maintenance
23of wells associated with underground storage facilities where
24natural gas is injected into and withdrawn from depleted or partially
25depleted oil or gas reservoirs pursuant to subdivision (a) of Section
263403.5 are not subject to this section.
Section 3213 of the Public Resources Code is amended
The history shall show the location and amount of
27sidetracked casings, tools, or other material, the depth and quantity
28of cement in cement plugs, the shots of dynamite or other
29explosives, and the results of production and
30other tests during drilling operations. All data on well stimulation
31treatments pursuant to 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,
35rework, well stimulation treatment, or abandonment operations,
36or the date of suspension of operations, the operator shall file with
37the district deputy, in a form approved by the supervisor, true
38copies of the log, core record, and history of work performed, and,
39if made, true and reproducible copies of all electrical, physical, or
40chemical logs, tests, or surveys. Upon a showing of hardship, the
P23 1supervisor may extend the time within which to comply with this
2section for a period not to exceed 60 additional days.
3(b) The supervisor shall include information or electronic links
4to information provided pursuant to subdivision (g) of Section
53160 on existing publicly accessible maps on the division’s Internet
6Web site, and make the information available such that well
7stimulation treatment and related information are associated with
8each specific well. If data is reported on an Internet Web site not
9maintained by the division pursuant to paragraph (2) of subdivision
10(g) of Section 3160, the division shall provide electronic links to
11that Internet Web site. The public shall be able to search and sort
12the hydraulic well stimulation and related information by at least
13the following criteria:
14(1) Geographic area.
16(3) Chemical constituent.
17(4) Chemical Abstract Service number.
18(5) Time period.
20(c) Notwithstanding Section 10231.5 of the Government Code,
21on or before January 1, 2016, and annually thereafter, the
22supervisor shall, in compliance with Section 9795 of the
23Government Code, prepare and transmit to the Legislature a
24comprehensive report on well stimulation treatments in the
25exploration and production of oil and gas resources in California.
26The report shall include aggregated data of all of the information
27required to be reported pursuant to Section 3160 reported by the
28district, county, and operator. The report also shall include relevant
29additional information, as necessary, including, but not limited to,
30all of the following:
31(1) Aggregated data detailing the disposition of any produced
32water from wells that have undergone well stimulation treatments.
33(2) Aggregated data describing the formations where wells have
34received well stimulation treatments including the range of safety
35factors used and fracture zone lengths.
36(3) The number of emergency responses to a spill or release
37associated with a well stimulation treatment.
38(4) Aggregated data detailing the number of times trade secret
39information was not provided to the public, by county and by each
40company, in the preceding year.
P24 1(5) Data detailing the loss of well and well casing integrity in
2the preceding year for wells that have undergone well stimulation
3treatment. For comparative purposes, data detailing the loss of
4well and well casing integrity in the preceding year for all wells
5shall also be provided. The cause of each well and well casing
6 failure, if known, shall also be provided.
7(6) The number of spot check inspections conducted pursuant
8to subdivision (l) of Section 3160, including the number of
9inspections where the composition of well stimulation fluids were
10verified and the results of those inspections.
11(7) The number of well stimulation treatments witnessed by the
13(8) The number of enforcement actions associated with well
14stimulation treatments, including, but not limited to, notices of
15deficiency, notices of violation, civil or criminal enforcement
16actions, and any penalties assessed.
17(d) The report shall be made publicly available and an electronic
18version shall be available on the division’s Internet Web site.
Section 3236.5 of the Public Resources Code is
20amended to read:
(a) A person who violates this chapter or a regulation
22implementing this chapter is subject to a civil penalty not to exceed
23twenty-five thousand dollars ($25,000) for each violation. A person
24who commits a violation of Article 3 (commencing with Section
253150) is subject to a civil penalty of not less than ten thousand
26dollars ($10,000) and not to exceed twenty-five thousand dollars
27($25,000) per day per violation. An act of God and an act of
28vandalism beyond the reasonable control of the operator shall not
29be considered a violation. The civil penalty shall be imposed by
30an order of the supervisor pursuant to Section 3225 upon a
31determination that a violation has been committed by the person
32charged. The imposition of a civil penalty under this section shall
33be in addition to any other penalty provided by law for the
34violation. When establishing the amount of the civil penalty
35pursuant to this section, the supervisor shall consider, in addition
36to other relevant circumstances, all of the following:
37(1) The extent of harm caused by the violation.
38(2) The persistence of the violation.
39(3) The pervasiveness of the violation.
40(4) The number of prior violations by the same violator.
P25 1(b) An order of the supervisor imposing a civil penalty shall be
2reviewable pursuant to Article 6 (commencing with Section 3350).
3When the order of the supervisor has become final and the penalty
4has not been paid, the supervisor may apply to the appropriate
5superior court for an order directing payment of the civil penalty.
6 The supervisor may also seek from the court an order directing
7that production from the well or use of the production facility that
8is the subject of the civil penalty order be discontinued until the
9violation has been remedied to the satisfaction of the supervisor
10and the civil penalty has been paid.
11(c) Any amount collected under this section shall be deposited
12in the Oil, Gas, and Geothermal Administrative Fund.
Section 3401 of the Public Resources Code is amended
(a) The proceeds of charges levied, assessed, and
16collected pursuant to this article upon the properties of every person
17operating or owning an interest in the production of a well shall
18be used exclusively for the support and maintenance of the
19department charged with the supervision of oil and gas operations.
20(b) Notwithstanding subdivision (a), the proceeds of charges
21levied, assessed, and collected pursuant to this article upon the
22properties of every person operating or owning an interest in the
23production of a well undergoing a well stimulation treatment, may
24be used by public entities, subject to appropriation by the
25Legislature, for all costs associated with
begin delete wellend delete
begin delete treatmentsend delete including rulemaking
27and scientific studies required to evaluate the treatment,
28inspections, any air and water quality sampling, monitoring, and
29testing performed by public
begin delete entities and theend delete
30 costs of the State Water Resources Control Board and
31the regional water quality control boards in carrying out their
32responsibilities pursuant to Section 10783 of the
Section 10783 is added to the Water Code, to read:
(a) The Legislature finds and declares that protecting
36the state’s groundwater for beneficial use, particularly sources and
37potential sources of drinking water, is of paramount concern.
38(b) The Legislature further finds and declares that strategic,
39scientifically based groundwater monitoring of the state’s oil and
P26 1gas fields is critical to allaying the public’s concerns regarding
2well stimulation treatments of oil and gas wells.
3(c) On or before
begin delete Januaryend delete
1, 2015, in order to assess the
4potential effects of well stimulation treatments, as defined in Article
53 (commencing with Section 3150) of Chapter 1 of Division 3 of
6the Public Resources Code, on the state’s groundwater resources
7 in a systematic way, the state board shall develop model
8groundwater monitoring criteria to be implemented either on a
9well-by-well basis for a well subject to well stimulation treatment,
10or on a regional scale. The model criteria shall address a range of
11spatial sampling scales from methods for conducting appropriate
12monitoring on individual oil and gas wells subject to a well
13stimulation treatment, to methods for conducting a regional
14groundwater monitoring program. The state board shall take into
15consideration the recommendations received pursuant to
16subdivision (d) and shall include in the model criteria, at a
17minimum, the components identified in subdivision
begin delete (e)end delete. The
18state board shall prioritize monitoring of groundwater that is or
19has the potential to be a source of drinking water, but shall protect
20all waters designated for any beneficial use.
21(d) The state board, in consultation with the Department of
22Conservation, Division of Oil, Gas, and Geothermal Resources,
23shall seek the advice of experts on the design of the model
24groundwater monitoring criteria. The experts shall assess and make
25recommendations to the state board on the model criteria. These
26recommendations shall prioritize implementation of regional
27groundwater monitoring programs statewide, as warranted, based
28upon the prevalence of well stimulation treatments of oil and gas
29wells and groundwater suitable as a source of drinking water.
P27 1 The scope and nature of the model groundwater monitoring
2criteria shall include the determination of all of the following:
3(1) An assessment of the areas to conduct groundwater quality
4monitoring and their appropriate boundaries.
5(2) A list of the constituents to measure and assess water quality.
6(3) The location, depth, and number of monitoring wells
7necessary to detect groundwater contamination at spatial scales
8ranging from an individual oil and gas well to a regional
9groundwater basin including one or more oil and gas fields.
10(4) The frequency and duration of the monitoring.
11(5) A threshold criteria indicating a transition from well-by-well
12monitoring to a regional monitoring program.
13(6) Data collection and reporting protocols.
14(7) Public access to the collected data under paragraph (6).
16 Factors to consider in addressing subdivision
begin delete (e)end delete shall
17include, but are not limited to, all of the following:
18(1) The existing quality and potential use of the
20(2) Groundwater that is not a source of drinking water consistent
21with the United States Environmental Protection Agency’s
22definition of an Underground Source of Drinking Water as
23containing less than 10,000 milligrams per liter total dissolved
24solids in groundwater (40 C.F.R. 144.3), including exempt aquifers
25pursuant to Section 146.4 of Title 40 of the Code of Federal
27(3) Proximity to human population, public water service wells,
28and private groundwater use, if known.
29(4) The presence of existing oil and gas production fields,
30including the distribution, physical attributes, and operational status
31of oil and gas wells therein.
32(5) Events, including well
stimulation treatments and oil and
33gas well failures, among others, that have the potential to
34contaminate groundwater, appropriate monitoring to evaluate
35whether groundwater contamination can be attributable to a
36particular event, and any monitoring changes necessary if
37groundwater contamination is observed.
39 On or before January 1, 2016, the state board or
40appropriate regional board shall begin implementation of the
P28 1regional groundwater monitoring programs based upon the
2developed criteria under subdivision (c).
10 The model criteria for either a well-by-well basis
for a well
11subject to well stimulation treatment, or for a regional groundwater
12monitoring program, shall be used to satisfy the permitting
13requirements for well stimulation treatments on oil and gas wells
14pursuant to Section 3160 of the Public Resources Code. The model
15criteria used on a well-by-well basis for a well subject to a well
16stimulation treatment shall be used where no regional groundwater
17monitoring plan approved by the state or regional board, if
21 The model criteria shall accommodate monitoring where
22surface access is limited. Monitoring is not required for oil and
23gas wells where the wells do not penetrate groundwater of
24beneficial use, as determined by a regional water quality control
28 The model criteria and groundwater monitoring
29programs shall be reviewed and updated periodically, as needed.
39 All groundwater quality data collected pursuant to
40subparagraph (F) of paragraph (1) of subdivision (d) of Section
P29 13160 of the Public Resources Code shall be submitted to the state
2board in an electronic format that is compatible with the state
3board’s GeoTracker database, following the guidelines detailed in
4Chapter 30 (commencing with Section 3890) of Division 3 of Title
523 of the California Code of Regulations.
No reimbursement is required by this act pursuant to
24Section 6 of Article XIII B of the California Constitution because
25the only costs that may be incurred by a local agency or school
26district will be incurred because this act creates a new crime or
27infraction, eliminates a crime or infraction, or changes the penalty
28for a crime or infraction, within the meaning of Section 17556 of
29the Government Code, or changes the definition of a crime within
30the meaning of Section 6 of Article XIII B of the California