Senate BillNo. 1132


Introduced by Senators Mitchell and Leno

(Principal coauthor: Assembly Member Ammiano)

(Coauthor: Assembly Member Stone)

February 20, 2014


An act to amend Section 3160 of, to add Sections 3160.1 and 3160.2 to, and to add and repeal Section 3161 of, the Public Resources Code, relating to oil and gas.

LEGISLATIVE COUNSEL’S DIGEST

SB 1132, as introduced, Mitchell. Oil and gas: well stimulation treatments.

Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, stimulation, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisor, or supervisor, supervises the drilling, operation, maintenance, stimulation, 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, prior to performing a well stimulating treatment on a well, to obtain approval from the supervisor or district deputy. Under existing law, a person who violates any prohibition specific to the regulation of oil or gas operations is guilty of a misdemeanor.

Existing law requires the Secretary of the Natural Resources Agency, on or before January 1, 2015, to cause to be conducted, and completed, an independent scientific study on well stimulation treatments, including acid well stimulation and hydraulic fracturing treatments.

This bill would require the scientific study to consider additional elements, including, among other things, evaluating various potential direct, indirect, and cumulative health and environmental effects of onshore and offshore well stimulation and well stimulation treatment-related activities, as specified. The bill would also prohibit all well stimulation treatments until the Secretary of the Natural Resources Agency convenes a committee to review the scientific study, as specified, the Governor issues findings that specific measures are in place to ensure that well stimulation treatments do not pose a risk to, or impairment of, the public health and welfare or to the environmental and economic sustainability of the state, and, if applicable, those findings are affirmed by judicial review, as specified. The bill would also require the division to adopt a formal process to resolve any claims with respect to vested rights, as specified. Because a violation of the bill’s requirements would be a crime, the bill would impose a state-mandated local program.

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:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) It is the intent of the Legislature in enacting this act to protect
4the public health and welfare of the state.

5(b) The actual and potential risks of well stimulation are
6currently unknown because the state has failed to appropriately
7monitor or track well stimulation activity and to study its effects.

8(c) Well stimulation and well stimulation-related activities have
9an impact on the state’s air quality, water quality and supply, soil
10quality, land use patterns, greenhouse gas emissions, seismicity,
11worker safety, social instability, economic instability, and public
12health and safety.

13

SEC. 2.  

Section 3160 of the Public Resources Code is amended
14to read:

P3    1

3160.  

(a) begin deleteOn or before January 1, 2015, the end deletebegin insertTheend insertbegin insert end insertSecretary of
2the Natural Resources Agency shall cause to be conducted, and
3completed, an independent scientific study on well stimulation
4treatments, including, but not limited to, hydraulic fracturing and
5acid well stimulation treatments. The scientific study shall evaluate
6the hazards and risks and potential hazards and risks that well
7stimulation treatmentsbegin insert and well stimulation treatment-related
8activitiesend insert
pose to natural resources and public, occupational, and
9environmental health and safety. The scientific study shall do all
10of the following:

11(1) Follow the well-established standard protocols of the
12scientific profession, including, but not limited to, the use of
13recognized experts, peer review, and publication.begin insert The study shall
14be based solely on the bestend insert
begin insert available scientific, health,
15environmental, and statistical informationend insert
begin insert.end insert

16(2) begin insert(A)end insertbegin insertend insertIdentifybegin insert all onshoreend insert areas with existing and potential
17conventional and unconventional oil and gas reserves where well
18stimulation treatments are likely to spur or enable oil and gas
19exploration and production.

begin insert

20(B) Identify offshore areas, within the jurisdiction of the division,
21with existing and potential conventional and unconventional oil
22and gas reserves where well stimulation treatments are likely to
23spur or enable oil and gas exploration and production.

end insert

24(3) (A) Evaluate all aspects and effects of well stimulation
25treatments, including, but not limited to, the well stimulation
26treatment, additive and water transportation to and from the well
27site, mixingbegin insert, storage,end insert and handling of the well stimulation treatment
28fluids and additives onsite, the use and potential for use of nontoxic
29additives and the use or reuse of treated or produced water in well
30stimulation treatment fluids,begin insert andend insert flowback fluids andbegin insert theend insert handling,
31treatment, and disposal of flowback fluids and other materials, if
32any, generated by the treatment. Specifically, the potential for the
33use of recycled water in well stimulation treatments, including
34appropriate water quality requirements and available treatment
35technologies, shall be evaluated. Well stimulation treatments
36include, but are not limited to, hydraulic fracturing and acid well
37stimulation treatments.

38(B) Review and evaluate acid matrix stimulation treatments,
39including the range of acid volumes applied per treated foot and
P4    1total acid volumes used in treatments, types of acids, acid
2concentration, and other chemicals used in the treatments.

begin insert

3(C) Evaluate all potential direct, indirect, and cumulative health
4and environmental effects of onshore well stimulation treatments
5and well stimulation treatment-related activities.

end insert
begin insert

6(D) Evaluate all potential direct, indirect, and cumulative health
7and environmental effects of offshore well stimulation treatments
8and well stimulation treatment-related activities that are within
9the jurisdiction of the division.

end insert
begin insert

10(E) Evaluate all direct, indirect, and cumulative health and
11environmental effects of the full lifecycle of oil and gas exploration,
12 development, and production, including flowback fluids and other
13byproducts that would result from allowing well stimulation
14treatments within the state.

end insert
begin insert

15(F) Evaluate the extent of the increase in oil and gas
16development, refining processes, and end-use combustion that
17would result from allowing well stimulation treatments within the
18state.

end insert

19(4) begin insert(A)end insertbegin insertend insertConsider begin delete, at a minimum, atmospheric emissions,
20including potential greenhouse gas emissions, the potential
21degradation of air quality, potential impacts on wildlife, native
22plants, and habitat, including habitat fragmentation,end delete
potential water
23begin delete and surface contamination, potential noise pollution, induced
24seismicity,end delete
begin insert end insertbegin insertcontamination, including groundwater and surface
25water, potential depletion of water resources, potential effects on
26water sustainability,end insert
and the ultimate disposition, transport,
27transformation, and toxicology of well stimulation treatments,
28including acid well stimulation fluids, hydraulic fracturing fluids,
29and waste hydraulic fracturing fluidsbegin insert,end insert and acid well stimulation in
30the environment.

begin insert

31(B) Consider surface contamination, potential noise and light
32pollution, as well as actual and potential induced seismicity.

end insert
begin insert

33(C) Consider atmospheric emissions, including potential
34greenhouse gas emissions, the potential degradation of air quality,
35and the potential impacts of well stimulation and increased oil
36and gas activity on the state’s efforts to meet its greenhouse gas
37reduction targets under the California Global Warming Solutions
38Act of 2006 (Division 25.5 (commencing with Section 38500) of
39the Health and Safety Code).

end insert

P5    1(5)  Identify and evaluate the geologic features present in the
2vicinity of a well, including the well bore, that should be taken
3into consideration in the design of a proposed well stimulation
4treatment.

begin insert

5(6) Identify and evaluate all of the following:

end insert
begin insert

6(A) The potential impacts of well stimulation treatments on
7private property and land use, including home values and direct
8damage to property and land.

end insert
begin insert

9(B) The potential human health risk for each chemical used in
10well stimulation treatments.

end insert
begin insert

11(C) The potential economic costs and harms of increased oil
12and gas operations in the state as a result of well stimulation
13treatments, including, but not limited to, the resulting economic
14costs to the agricultural sector and the tourism industry.

end insert
begin insert

15(D) The potential effects on communities most likely to be
16negatively affected by the impacts of well stimulation, including,
17but not limited to, all of the following:

end insert
begin insert

18(i) Communities consisting largely of people of color.

end insert
begin insert

19(ii) Communities consisting largely of low-income individuals.

end insert
begin insert

20(iii) Communities consisting largely of non-English-speaking
21households.

end insert
begin insert

22(iv) Communities already experiencing high levels of water or
23air pollution, or water scarcity.

end insert
begin insert

24(E) Potential harm to the public health and welfare of the state’s
25residents and the state’s environment, both cumulatively and
26specific to each region where well stimulation treatments may
27occur.

end insert
begin insert

28(F) The potential effect of increased traffic due to increased oil
29and gas activity as a result of well stimulation treatments, including
30air emissions from vehicle traffic, and road expansion and
31deterioration.

end insert
begin insert

32(G) The potential effect on pipeline infrastructure due to
33increased oil and gas activity as a result of well stimulation
34treatments, including potential pipeline leakage.

end insert
begin insert

35(H) Potential impacts on wildlife, including harm to endangered
36or threatened species, native plants, and habitat, including habitat
37fragmentation.

end insert
begin insert

38(I) Whether existing emergency planning, procedures, and
39resources adequately and fully ensure public safety in the event
40of an emergency.

end insert
begin insert

P6    1(J) Potential risks to worker safety.

end insert
begin delete

2(6)

end delete

3begin insert(7)end insert Include a hazard assessment and risk analysis addressing
4occupational and environmental exposures to well stimulation
5treatments, including hydraulic fracturing treatments, hydraulic
6fracturing treatment-related processes, acid well stimulation
7treatments, acid well stimulation treatment-related processes, and
8the corresponding impacts on public health and safety with the
9participation of the Office of Environmental Health Hazard
10Assessment.

begin delete

11(7)

end delete

12begin insert(8)end insert Clearly identify where additional information is necessary
13to inform and improve the analyses.

begin delete

14(b) (1) (A) On or before January 1, 2015, the division, in
15consultation with the Department of Toxic Substances Control,
16the State Air Resources Board, the State Water Resources Control
17Board, the Department of Resources Recycling and Recovery, and
18any local air districts and regional water quality control boards in
19areas where well stimulation treatments, including acid well
20stimulation treatments and hydraulic fracturing treatments may
21occur, shall adopt rules and regulations specific to well stimulation
22treatments. The rules and regulations shall include, but are not
23limited to, revisions, as needed, to the rules and regulations
24governing construction of wells and well casings to ensure integrity
25of wells, well casings, and the geologic and hydrologic isolation
26of the oil and gas formation during and following well stimulation
27treatments, and full disclosure of the composition and disposition
28of well stimulation fluids, including, but not limited to, hydraulic
29fracturing fluids, acid well stimulation fluids, and flowback fluids.

30(B) The rules and regulations shall additionally include
31provisions for an independent entity or person to perform the
32notification requirements pursuant to paragraph (6) of subdivision
33(d), for the operator to provide for baseline and followup water
34testing upon request as specified in paragraph (7) of subdivision
35(d).

36(C) (i) In order to identify the acid matrix stimulation treatments
37that are subject to this section, the rules and regulations shall
38establish threshold values for acid volume applied per treated foot
39of any individual stage of the well or for total acid volume of the
40treatment, or both, based upon a quantitative assessment of the
P7    1risks posed by acid matrix stimulation treatments that exceed the
2specified threshold value or values in order to prevent, as far as
3possible, damage to life, health, property, and natural resources
4pursuant to Section 3106.

5(ii) On or before January 1, 2020, the division shall review and
6evaluate the threshold values for acid volume applied per treated
7foot and total acid volume of the treatment, based upon data
8collected in the state, for acid matrix stimulation treatments. The
9division shall revise the values through the regulatory process, if
10necessary, based upon the best available scientific information,
11including the results of the independent scientific study pursuant
12to subparagraph (B) of paragraph (3) of subdivision (a).

13(2) Full disclosure of the composition and disposition of well
14stimulation fluids, including, but not limited to, hydraulic fracturing
15fluids and acid stimulation treatment fluids, shall, at a minimum,
16include:

17(A) The date of the well stimulation treatment.

18(B) A complete list of the names, Chemical Abstract Service
19(CAS) numbers, and maximum concentration, in percent by mass,
20of each and every chemical constituent of the well stimulation
21treatment fluids used. If a CAS number does not exist for a
22chemical constituent, the well owner or operator may provide
23another unique identifier, if available.

24(C) The trade name, the supplier, concentration, and a brief
25description of the intended purpose of each additive contained in
26the well stimulation treatment fluid.

27(D) The total volume of base fluid used during the well
28stimulation treatment, and the identification of whether the base
29fluid is water suitable for irrigation or domestic purposes, water
30not suitable for irrigation or domestic purposes, or a fluid other
31than water.

32(E) The source, volume, and specific composition and
33disposition of all water, including, but not limited to, all water
34used as base fluid during the well stimulation treatment and
35recovered from the well following the well stimulation treatment
36that is not otherwise reported as produced water pursuant to Section
373227. Any repeated reuse of treated or untreated water for well
38stimulation treatments and well stimulation treatment-related
39activities shall be identified.

P8    1(F) The specific composition and disposition of all well
2stimulation treatment fluids, including waste fluids, other than
3water.

4(G) Any radiological components or tracers injected into the
5well as part of, or in order to evaluate, the well stimulation
6treatment, a description of the recovery method, if any, for those
7components or tracers, the recovery rate, and specific disposal
8information for recovered components or tracers.

9(H) The radioactivity of the recovered well stimulation fluids.

10(I) The location of the portion of the well subject to the well
11stimulation treatment and the extent of the fracturing or other
12modification, if any, surrounding the well induced by the treatment.

13(c) (1) Through the consultation process described in paragraph
14(1) of subdivision (b), the division shall collaboratively identify
15and delineate the existing statutory authority and regulatory
16responsibility relating to well stimulation treatments and well
17stimulation treatment-related activities of the Department of Toxic
18Substances Control, the State Air Resources Board, any local air
19districts, the State Water Resources Control Board, the Department
20of Resources Recycling and Recovery, any regional water quality
21control board, and other public entities, as applicable. This shall
22specify how the respective authority, responsibility, and notification
23and reporting requirements associated with well stimulation
24treatments and well stimulation treatment-related activities are
25divided among each public entity.

26(2) On or before January 1, 2015, the division shall enter into
27formal agreements with the Department of Toxic Substances
28Control, the State Air Resources Board, any local air districts where
29well stimulation treatments may occur, the State Water Resources
30Control Board, the Department of Resources Recycling and
31Recovery, and any regional water quality control board where well
32stimulation treatments may occur, clearly delineating respective
33authority, responsibility, and notification and reporting
34requirements associated with well stimulation treatments and well
35stimulation treatment-related activities, including air and water
36quality monitoring, in order to promote regulatory transparency
37and accountability.

38(3) The agreements under paragraph (2) shall specify the
39appropriate public entity responsible for air and water quality
40monitoring and the safe and lawful disposal of materials in
P9    1landfills, include trade secret handling protocols, if necessary, and
2provide for ready public access to information related to well
3stimulation treatments and related activities.

4(4) Regulations, if necessary, shall be revised appropriately to
5incorporate the agreements under paragraph (2).

6(d) (1) Notwithstanding any other law or regulation, prior to
7performing a well stimulation treatment on a well, the operator
8shall apply for a permit to perform a well stimulation treatment
9with the supervisor or district deputy. The well stimulation
10 treatment permit application shall contain the pertinent data the
11supervisor requires on printed forms supplied by the division or
12on other forms acceptable to the supervisor. The information
13provided in the well stimulation treatment permit application shall
14include, but is not limited to, the following:

15(A) The well identification number and location.

16(B) The time period during which the well stimulation treatment
17is planned to occur.

18(C) A water management plan that shall include all of the
19following:

20(i) An estimate of the amount of water to be used in the
21treatment. Estimates of water to be recycled following the well
22stimulation treatment may be included.

23(ii) The anticipated source of the water to be used in the
24treatment.

25(iii) The disposal method identified for the recovered water in
26the flowback fluid from the treatment that is not produced water
27included in the statement pursuant to Section 3227.

28(D) A complete list of the names, Chemical Abstract Service
29(CAS) numbers, and estimated concentrations, in percent by mass,
30of each and every chemical constituent of the well stimulation
31fluids anticipated to be used in the treatment. If a CAS number
32does not exist for a chemical constituent, the well owner or operator
33may provide another unique identifier, if available.

34(E) The planned location of the well stimulation treatment on
35the well bore, the estimated length, height, and direction of the
36induced fractures or other planned modification, if any, and the
37location of existing wells, including plugged and abandoned wells,
38that may be impacted by these fractures and modifications.

P10   1(F) A groundwater monitoring plan. Required groundwater
2monitoring in the vicinity of the well subject to the well stimulation
3treatment shall be satisfied by one of the following:

4(i) The well is located within the boundaries of an existing oil
5or gas field-specific or regional monitoring program developed
6pursuant to Section 10783 of the Water Code.

7(ii) The well is located within the boundaries of an existing oil
8or gas field-specific or regional monitoring program developed
9and implemented by the well owner or operator meeting the model
10criteria established pursuant to Section 10783 of the Water Code.

11(iii) Through a well-specific monitoring plan implemented by
12 the owner or operator meeting the model criteria established
13pursuant to Section 10783 of the Water Code, and submitted to
14the appropriate regional water board for review.

15(G) The estimated amount of treatment-generated waste
16materials that are not reported in subparagraph (C) and an identified
17disposal method for the waste materials.

18(2) (A) At the supervisor’s discretion, and if applied for
19concurrently, the well stimulation treatment permit described in
20this section may be combined with the well drilling and related
21operation notice of intent required pursuant to Section 3203 into
22a single combined authorization. The portion of the combined
23authorization applicable to well stimulation shall meet all of the
24requirements of a well stimulation treatment permit pursuant to
25this section.

26(B) Where the supervisor determines that the activities proposed
27in the well stimulation treatment permit or the combined
28authorization have met all of the requirements of Division 13
29(commencing with Section 21000), and have been fully described,
30analyzed, evaluated, and mitigated, no additional review or
31mitigation shall be required.

32(C) The time period available for approval of the portion of the
33combined authorization applicable to well stimulation is subject
34to the terms of this section, and not Section 3203.

35(3) (A) The supervisor or district deputy shall review the well
36stimulation treatment permit application and may approve the
37permit if the application is complete. An incomplete application
38shall not be approved.

P11   1(B) A well stimulation treatment or repeat well stimulation
2treatment shall not be performed on any well without a valid permit
3that the supervisor or district deputy has approved.

4(C) In considering the permit application, the supervisor shall
5evaluate the quantifiable risk of the well stimulation treatment.

6(4) The well stimulation treatment permit shall expire one year
7from the date that the permit is issued.

8(5) Within five business days of issuing a permit to perform a
9well stimulation treatment, the division shall provide a copy of the
10permit to the appropriate regional water quality control board or
11boards and to the local planning entity where the well, including
12its subsurface portion, is located. The division shall also post the
13permit on the publicly accessible portion of its Internet Web site
14within five business days of issuing a permit.

15(6) (A) It is the policy of the state that a copy of the approved
16well stimulation treatment permit and information on the available
17water sampling and testing be provided to every tenant of the
18surface property and every surface property owner or authorized
19agent of that owner whose property line location is one of the
20following:

21(i) Within a 1,500 foot radius of the wellhead.

22(ii) Within 500 feet from the horizontal projection of all
23subsurface portions of the designated well to the surface.

24(B) (i) The well owner or operator shall identify the area
25requiring notification and shall contract with an independent entity
26or person who is responsible for, and shall perform, the notification
27required pursuant to subparagraph (A).

28(ii) The independent entity or person shall identify the
29individuals notified, the method of notification, the date of the
30notification, a list of those notified, and shall provide a list of this
31information to the division.

32(iii) The performance of the independent entity or persons shall
33be subject to review and audit by the division.

34(C) A well stimulation treatment shall not commence before 30
35calendar days after the permit copies pursuant to subparagraph (A)
36are provided.

37(7) (A) A property owner notified pursuant to paragraph (6)
38may request water quality sampling and testing from a designated
39qualified contractor on any water well suitable for drinking or
P12   1irrigation purposes and on any surface water suitable for drinking
2or irrigation purposes as follows:

3(i) Baseline measurements prior to the commencement of the
4well stimulation treatment.

5(ii) Followup measurements after the well stimulation treatment
6on the same schedule as the pressure testing of the well casing of
7the treated well.

8(B) The State Water Resources Control Board shall designate
9one or more qualified independent third-party contractor or
10contractors that adhere to board-specified standards and protocols
11to perform the water sampling and testing. The well owner or
12operator shall pay for the sampling and testing. The sampling and
13testing performed shall be subject to audit and review by the State
14Water Resources Control Board or applicable regional water quality
15control board, as appropriate.

16(C) The results of the water testing shall be provided to the
17division, appropriate regional water board, and the property owner
18or authorized agent. A tenant notified pursuant to paragraph (6)
19shall receive information on the results of the water testing to the
20extent authorized by his or her lease and, where the tenant has
21lawful use of the ground or surface water identified in subparagraph
22(A), the tenant may independently contract for similar groundwater
23or surface water testing.

24(8) The division shall retain a list of the entities and property
25owners notified pursuant to paragraphs (5) and (6).

26(9) The operator shall provide notice to the division at least 72
27hours prior to the actual start of the well stimulation treatment in
28order for the division to witness the treatment.

end delete
begin insert

29(b) (1) Prior to the issuance of the final scientific study, the
30division shall conduct public hearings throughout the state to
31obtain additional public comment. Public notice of a hearings
32shall be provided at least 30 days prior to any hearing.

end insert
begin insert

33(2) All relevant notices and hearing documents shall be made
34available in non-English languages necessary to inform the public
35of the opportunity to comment and to accommodate public
36participation.

end insert
begin delete

37(e)

end delete

38begin insert(c)end insertbegin insertend insertThe 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
P13   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
7scientific experts.

begin delete

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 suitable for public
12disclosure needed for the operator to comply with subdivision (g).
13This information shall be provided as soon as possible but no later
14than 30 days following the conclusion of the well stimulation
15treatment.

16(g) (1) Within 60 days following cessation of a well stimulation
17treatment on a well, the operator shall post or cause to have posted
18to an Internet Web site designated or maintained by the division
19and accessible to the public, all of the well stimulation fluid
20composition and disposition information required to be collected
21pursuant to rules and regulations adopted under subdivision (b),
22including well identification number and location. This shall
23include the collected water quality data, which the operator shall
24report electronically to the State Water Resources Control Board.

25(2) (A) The division shall commence the process to develop
26an Internet Web site for operators to report the information required
27under this section. The Internet Web site shall be capable of
28organizing the reported information in a format, such as a
29spreadsheet, that allows the public to easily search and aggregate,
30to the extent practicable, each type of information required to be
31collected pursuant to subdivision (b) using search functions on
32that Internet Web site. The Internet Web site shall be functional
33within two years of the Department of Technology’s approval of
34a Feasibility Study Report or appropriation authority to fund the
35development of the Internet Web site, whichever occurs latest, but
36no later than January 1, 2016.

37(B) The division may direct reporting to an alternative Internet
38Web site developed by the Ground Water Protection Council and
39the Interstate Oil and Gas Compact Commission in the interim
40until such time as approval or appropriation authority pursuant to
P14   1subparagraph (A) occur. Prior to the implementation of the
2division’s Internet Web site, the division shall obtain the data
3reported by operators to the alternative Internet Web site and make
4it available in an organized electronic format to the public no later
5than 15 days after it is reported to the alternative Web site.

6(h) The operator is responsible for compliance with this section.

7(i) (1) All geologic features within a distance reflecting an
8appropriate safety factor of the fracture zone for well stimulation
9treatments that fracture the formation and that have the potential
10to either limit or facilitate the migration of fluids outside of the
11fracture zone shall be identified and added to the well history.
12Geologic features include seismic faults identified by the California
13Geologic Survey.

14(2) For the purposes of this section, the “fracture zone” is
15defined as the volume surrounding the well bore where fractures
16were created or enhanced by the well stimulation treatment. The
17safety factor shall be at least five and may vary depending upon
18geologic knowledge.

19(3) The division shall review the geologic features important to
20assessing well stimulation treatments identified in the independent
21study pursuant to paragraph (5) of subdivision (a). Upon
22completion of the review, the division shall revise the regulations
23governing the reporting of geologic features pursuant to this
24subdivision accordingly.

25(j) (1) Public disclosure of well stimulation treatment fluid
26information claimed to contain trade secrets is governed by Section
271060 of the Evidence Code, or the Uniform Trade Secrets Act
28(Title 5 (commencing with Section 3426) of Part 1 of Division 4
29of the Civil Code), and the California Public Records Act (Chapter
303.5 (commencing with Section 6250) of Division 7 of Title 1 of
31the Government Code).

32(2) Notwithstanding any other law or regulation, none of the
33following information shall be protected as a trade secret:

34(A) The identities of the chemical constituents of additives,
35including CAS identification numbers.

36(B) The concentrations of the additives in the well stimulation
37treatment fluids.

38(C) Any air or other pollution monitoring data.

39(D) Health and safety data associated with well stimulation
40treatment fluids.

P15   1(E) The chemical composition of the flowback fluid.

2(3) If a trade secret claim is invalid or invalidated, the division
3shall release the information to the public by revising the
4information released pursuant to subdivision (g). The supplier shall
5notify the division of any change in status within 30 days.

6(4) (A) If a supplier believes that information regarding a
7chemical constituent of a well stimulation fluid is a trade secret,
8the supplier shall nevertheless disclose the information to the
9division in conjunction with a well stimulation treatment permit
10application, if not previously disclosed, within 30 days following
11cessation of well stimulation on a well, and shall notify the division
12in writing of that belief.

13(B) A trade secret claim shall not be made after initial disclosure
14of the information to the division.

15(C) To comply with the public disclosure requirements of this
16section, the supplier shall indicate where trade secret information
17has been withheld and provide substitute information for public
18disclosure. The substitute information shall be a list, in any order,
19of the chemical constituents of the additive, including CAS
20identification numbers. The division shall review and approve the
21supplied substitute information.

22(D) This subdivision does not permit a supplier to refuse to
23disclose the information required pursuant to this section to the
24division.

25(5) In order to substantiate the trade secret claim, the supplier
26shall provide information to the division that shows all of the
27following:

28(A) The extent to which the trade secret information is known
29by the supplier’s employees, others involved in the supplier’s
30business and outside the supplier’s business.

31(B) The measures taken by the supplier to guard the secrecy of
32the trade secret information.

33(C) The value of the trade secret information to the supplier and
34its competitors.

35(D) The amount of effort or money the supplier expended
36developing the trade secret information and the ease or difficulty
37with which the trade secret information could be acquired or
38duplicated by others.

39(6) If the division determines that the information provided in
40support of a request for trade secret protection pursuant to
P16   1paragraph (5) is incomplete, the division shall notify the supplier
2and the supplier shall have 30 days to complete the submission.
3An incomplete submission does not meet the substantive criteria
4for trade secret designation.

5(7) If the division determines that the information provided in
6support of a request for trade secret protection does not meet the
7substantive criteria for trade secret designation, the department
8shall notify the supplier by certified mail of its determination. The
9division shall release the information to the public, but not earlier
10than 60 days after the date of mailing the determination, unless,
11prior to the expiration of the 60-day period, the supplier obtains
12an action in an appropriate court for a declaratory judgment that
13the information is subject to protection or for a preliminary
14injunction prohibiting disclosure of the information to the public
15and provides notice to the division of the court order.

16(8) The supplier is not required to disclose trade secret
17information to the operator.

18(9) Upon receipt of a request for the release of trade secret
19information to the public, the following procedure applies:

20(A) The division shall notify the supplier of the request in
21writing by certified mail, return receipt requested.

22(B) The division shall release the information to the public, but
23not earlier than 60 days after the date of mailing the notice of the
24request for information, unless, prior to the expiration of the 60-day
25period, the supplier obtains an action in an appropriate court for a
26declaratory judgment that the information is subject to protection
27or for a preliminary injunction prohibiting disclosure of the
28information to the public and provides notice to the division of
29that action.

30(10) The division shall develop a timely procedure to provide
31trade secret information in the following circumstances:

32(A) To an officer or employee of the division, the state, local
33governments, including, but not limited to, local air districts, or
34the United States, in connection with the official duties of that
35officer or employee, to a health professional under any law for the
36protection of health, or to contractors with the division or other
37government entities and their employees if, in the opinion of the
38division, disclosure is necessary and required for the satisfactory
39performance of a contract, for performance of work, or to protect
40health and safety.

P17   1(B) To a health professional in the event of an emergency or to
2diagnose or treat a patient.

3(C) In order to protect public health, to any health professional,
4toxicologist, or epidemiologist who is employed in the field of
5public health and who provides a written statement of need. The
6written statement of need shall include the public health purposes
7of the disclosure and shall explain the reason the disclosure of the
8specific chemical and its concentration is required.

9(D) A health professional may share trade secret information
10with other persons as may be professionally necessary, in order to
11diagnose or treat a patient, including, but not limited to, the patient
12and other health professionals, subject to state and federal laws
13restricting disclosure of medical records including, but not limited
14to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
15Division 1 of the Civil Code.

16(E) For purposes of this paragraph, “health professional” means
17any person licensed or certified pursuant to Division 2
18(commencing with Section 500) of the Business and Professions
19Code, the Osteopathic Initiative Act, the Chiropractic Initiative
20Act, or the Emergency Medical Services System and the
21Prehospital Emergency Medical Care Personnel Act (Division 2.5
22(commencing with Section 1797) of the Health and Safety Code).

23(F) A person in possession of, or access to, confidential trade
24secret information pursuant to the provisions of this subdivision
25may disclose this information to any person who is authorized to
26receive it. A written confidentiality agreement shall not be required.

27(k) A well granted confidential status pursuant to Section 3234
28shall not be required to disclose well stimulation treatment fluid
29information pursuant to subdivision (g) until the confidential status
30of the well ceases. Notwithstanding the confidential status of a
31well, it is public information that a well will be or has been subject
32to a well stimulation treatment.

33(l) The division shall perform random periodic spot check
34inspections to ensure that the information provided on well
35stimulation treatments is accurately reported, including that the
36estimates provided prior to the commencement of the well
37stimulation treatment are reasonably consistent with the well
38history.

39(m) Where the division shares jurisdiction over a well or the
40well stimulation treatment on a well with a federal entity, the
P18   1division’s rules and regulations shall apply in addition to all
2applicable federal laws and regulations.

3(n) This article does not relieve the division or any other agency
4from complying with any other provision of existing laws,
5regulations, and orders.

6(o) Well stimulation treatments used for routine maintenance
7of wells associated with underground storage facilities where
8natural gas is injected into and withdrawn from depleted or partially
9depleted oil or gas reservoirs pursuant to subdivision (a) of Section
103403.5 are not subject to this section.

end delete
11

SEC. 3.  

Section 3160.1 is added to the Public Resources Code,
12to read:

13

3160.1.  

(a) (1) (A) On or before January 1, 2015, the division,
14in consultation with the Department of Toxic Substances Control,
15the State Air Resources Board, the State Water Resources Control
16Board, the Department of Resources Recycling and Recovery, and
17any local air districts and regional water quality control boards in
18areas where well stimulation treatments, including acid well
19stimulation treatments and hydraulic fracturing treatments may
20occur, shall adopt rules and regulations specific to well stimulation
21treatments. The rules and regulations shall include, but are not
22limited to, revisions, as needed, to the rules and regulations
23governing construction of wells and well casings to ensure integrity
24of wells, well casings, and the geologic and hydrologic isolation
25 of the oil and gas formation during and following well stimulation
26treatments, and full disclosure of the composition and disposition
27of well stimulation fluids, including, but not limited to, hydraulic
28fracturing fluids, acid well stimulation fluids, and flowback fluids.

29(B) The rules and regulations shall additionally include
30provisions for an independent entity or person to perform the
31notification requirements pursuant to paragraph (6) of subdivision
32(a) of Section 3160.2, for the operator to provide for baseline and
33followup water testing upon request as specified in paragraph (7)
34of subdivision (a) of Section 3160.2.

35(C) (i) In order to identify the acid matrix stimulation treatments
36that are subject to this section, the rules and regulations shall
37establish threshold values for acid volume applied per treated foot
38of any individual stage of the well or for total acid volume of the
39treatment, or both, based upon a quantitative assessment of the
40risks posed by acid matrix stimulation treatments that exceed the
P19   1specified threshold value or values in order to prevent, as far as
2possible, damage to life, health, property, and natural resources
3pursuant to Section 3106.

4(ii) On or before January 1, 2020, the division shall review and
5evaluate the threshold values for acid volume applied per treated
6foot and total acid volume of the treatment, based upon data
7collected in the state, for acid matrix stimulation treatments. The
8division shall revise the values through the regulatory process, if
9necessary, based upon the best available scientific information,
10including the results of the independent scientific study pursuant
11to subparagraph (B) of paragraph (3) of subdivision (a) of Section
123160.

13(2) Full disclosure of the composition and disposition of well
14stimulation fluids, including, but not limited to, hydraulic fracturing
15fluids and acid stimulation treatment fluids, shall, at a minimum,
16include:

17(A) The date of the well stimulation treatment.

18(B) A complete list of the names, Chemical Abstract Service
19(CAS) numbers, and maximum concentration, in percent by mass,
20of each and every chemical constituent of the well stimulation
21treatment fluids used. If a CAS number does not exist for a
22chemical constituent, the well owner or operator may provide
23another unique identifier, if available.

24(C) The trade name, the supplier, concentration, and a brief
25description of the intended purpose of each additive contained in
26the well stimulation treatment fluid.

27(D) The total volume of base fluid used during the well
28stimulation treatment, and the identification of whether the base
29fluid is water suitable for irrigation or domestic purposes, water
30not suitable for irrigation or domestic purposes, or a fluid other
31than water.

32(E) The source, volume, and specific composition and
33disposition of all water, including, but not limited to, all water
34used as base fluid during the well stimulation treatment and
35recovered from the well following the well stimulation treatment
36that is not otherwise reported as produced water pursuant to Section
373227. Any repeated reuse of treated or untreated water for well
38stimulation treatments and well stimulation treatment-related
39activities shall be identified.

P20   1(F) The specific composition and disposition of all well
2stimulation treatment fluids, including waste fluids, other than
3water.

4(G) Any radiological components or tracers injected into the
5well as part of, or in order to evaluate, the well stimulation
6treatment, a description of the recovery method, if any, for those
7components or tracers, the recovery rate, and specific disposal
8information for recovered components or tracers.

9(H) The radioactivity of the recovered well stimulation fluids.

10(I) The location of the portion of the well subject to the well
11stimulation treatment and the extent of the fracturing or other
12modification, if any, surrounding the well induced by the treatment.

13(b) (1) Through the consultation process described in paragraph
14(1) of subdivision (a), the division shall collaboratively identify
15and delineate the existing statutory authority and regulatory
16responsibility relating to well stimulation treatments and well
17stimulation treatment-related activities of the Department of Toxic
18Substances Control, the State Air Resources Board, any local air
19districts, the State Water Resources Control Board, the Department
20of Resources Recycling and Recovery, any regional water quality
21control board, and other public entities, as applicable. This shall
22specify how the respective authority, responsibility, and notification
23and reporting requirements associated with well stimulation
24treatments and well stimulation treatment-related activities are
25divided among each public entity.

26(2) On or before January 1, 2015, the division shall enter into
27formal agreements with the Department of Toxic Substances
28Control, the State Air Resources Board, any local air districts where
29well stimulation treatments may occur, the State Water Resources
30Control Board, the Department of Resources Recycling and
31Recovery, and any regional water quality control board where well
32stimulation treatments may occur, clearly delineating respective
33authority, responsibility, and notification and reporting
34requirements associated with well stimulation treatments and well
35stimulation treatment-related activities, including air and water
36quality monitoring, in order to promote regulatory transparency
37and accountability.

38(3) The agreements under paragraph (2) shall specify the
39appropriate public entity responsible for air and water quality
40monitoring and the safe and lawful disposal of materials in
P21   1landfills, include trade secret handling protocols, if necessary, and
2provide for ready public access to information related to well
3stimulation treatments and related activities.

4(4) Regulations, if necessary, shall be revised appropriately to
5incorporate the agreements under paragraph (2).

6

SEC. 4.  

Section 3160.2 is added to the Public Resources Code,
7to read:

8

3160.2.  

(a) (1) Notwithstanding any other law or regulation,
9prior to performing a well stimulation treatment, the operator shall
10apply for a permit to perform a well stimulation treatment with
11the supervisor or district deputy. The well stimulation treatment
12permit application shall contain the pertinent data the supervisor
13requires on printed forms supplied by the division or on other
14forms acceptable to the supervisor. The information provided in
15the well stimulation treatment permit application shall include, but
16is not limited to, the following:

17(A) The well identification number and location.

18(B) The time period during which the well stimulation treatment
19is planned to occur.

20(C) A water management plan that shall include all of the
21following:

22(i) An estimate of the amount of water to be used in the
23treatment. Estimates of water to be recycled following the well
24stimulation treatment may be included.

25(ii) The anticipated source of the water to be used in the
26treatment.

27(iii) The disposal method identified for the recovered water in
28the flowback fluid from the treatment that is not produced water
29included in the statement pursuant to Section 3227.

30(D) A complete list of the names, Chemical Abstract Service
31(CAS) numbers, and estimated concentrations, in percent by mass,
32of each and every chemical constituent of the well stimulation
33fluids anticipated to be used in the treatment. If a CAS number
34does not exist for a chemical constituent, the well owner or operator
35may provide another unique identifier, if available.

36(E) The planned location of the well stimulation treatment on
37the well bore, the estimated length, height, and direction of the
38induced fractures or other planned modification, if any, and the
39location of existing wells, including plugged and abandoned wells,
40that may be impacted by these fractures and modifications.

P22   1(F) A groundwater monitoring plan. Required groundwater
2monitoring in the vicinity of the well subject to the well stimulation
3treatment shall be satisfied by one of the following:

4(i) The well is located within the boundaries of an existing oil
5or gas field-specific or regional monitoring program developed
6pursuant to Section 10783 of the Water Code.

7(ii) The well is located within the boundaries of an existing oil
8or gas field-specific or regional monitoring program developed
9and implemented by the well owner or operator meeting the model
10criteria established pursuant to Section 10783 of the Water Code.

11(iii) Through a well-specific monitoring plan implemented by
12the owner or operator meeting the model criteria established
13pursuant to Section 10783 of the Water Code, and submitted to
14the appropriate regional water board for review.

15(G) The estimated amount of treatment-generated waste
16materials that are not reported in subparagraph (C) and an identified
17disposal method for the waste materials.

18(2) (A) At the supervisor’s discretion, and if applied for
19 concurrently, the well stimulation treatment permit described in
20this section may be combined with the well drilling and related
21operation notice of intent required pursuant to Section 3203 into
22a single combined authorization. The portion of the combined
23authorization applicable to well stimulation shall meet all of the
24requirements of a well stimulation treatment permit pursuant to
25this section.

26(B) Where the supervisor determines that the activities proposed
27in the well stimulation treatment permit or the combined
28authorization have met all of the requirements of Division 13
29(commencing with Section 21000), and have been fully described,
30analyzed, evaluated, and mitigated, no additional review or
31mitigation shall be required.

32(C) The time period available for approval of the portion of the
33combined authorization applicable to well stimulation is subject
34to the terms of this section, and not Section 3203.

35(3) (A) The supervisor or district deputy shall review the well
36stimulation treatment permit application and may approve the
37permit if the application is complete. An incomplete application
38shall not be approved.

P23   1(B) A well stimulation treatment or repeat well stimulation
2treatment shall not be performed on any well without a valid permit
3that the supervisor or district deputy has approved.

4(C) In considering the permit application, the supervisor shall
5evaluate the quantifiable risk of the well stimulation treatment.

6(4) The well stimulation treatment permit shall expire one year
7from the date that the permit is issued.

8(5) Within five business days of issuing a permit to perform a
9well stimulation treatment, the division shall provide a copy of the
10permit to the appropriate regional water quality control board or
11boards and to the local planning entity where the well, including
12its subsurface portion, is located. The division shall also post the
13permit on the publicly accessible portion of its Internet Web site
14within five business days of issuing a permit.

15(6) (A) It is the policy of the state that a copy of the approved
16well stimulation treatment permit and information on the available
17water sampling and testing be provided to every tenant of the
18surface property and every surface property owner or authorized
19agent of that owner whose property line location is one of the
20following:

21(i) Within a 1,500 foot radius of the wellhead.

22(ii) Within 500 feet from the horizontal projection of all
23subsurface portions of the designated well to the surface.

24(B) (i) The well owner or operator shall identify the area
25requiring notification and shall contract with an independent entity
26or person who is responsible for, and shall perform, the notification
27required pursuant to subparagraph (A).

28(ii) The independent entity or person shall identify the
29individuals notified, the method of notification, the date of the
30notification, a list of those notified, and shall provide a list of this
31information to the division.

32(iii) The performance of the independent entity or persons shall
33be subject to review and audit by the division.

34(C) A well stimulation treatment shall not commence before 30
35calendar days after the permit copies pursuant to subparagraph (A)
36are provided.

37(7) (A) A property owner notified pursuant to paragraph (6)
38may request water quality sampling and testing from a designated
39qualified contractor on any water well suitable for drinking or
P24   1irrigation purposes and on any surface water suitable for drinking
2or irrigation purposes as follows:

3(i) Baseline measurements prior to the commencement of the
4well stimulation treatment.

5(ii) Followup measurements after the well stimulation treatment
6on the same schedule as the pressure testing of the well casing of
7the treated well.

8(B) The State Water Resources Control Board shall designate
9one or more qualified independent third-party contractor or
10contractors that adhere to board-specified standards and protocols
11to perform the water sampling and testing. The well owner or
12operator shall pay for the sampling and testing. The sampling and
13testing performed shall be subject to audit and review by the State
14Water Resources Control Board or applicable regional water quality
15control board, as appropriate.

16(C) The results of the water testing shall be provided to the
17division, appropriate regional water board, and the property owner
18or authorized agent. A tenant notified pursuant to paragraph (6)
19shall receive information on the results of the water testing to the
20extent authorized by his or her lease and, where the tenant has
21lawful use of the ground or surface water identified in subparagraph
22(A), the tenant may independently contract for similar groundwater
23or surface water testing.

24(8) The division shall retain a list of the entities and property
25owners notified pursuant to paragraphs (5) and (6).

26(9) The operator shall provide notice to the division at least 72
27hours prior to the actual start of the well stimulation treatment in
28order for the division to witness the treatment.

29(b) If a well stimulation treatment is performed, a supplier that
30performs any part of the treatment or provides additives directly
31to the operator for a well stimulation treatment shall furnish the
32operator with information suitable for public disclosure needed
33for the operator to comply with subdivision (c). This information
34shall be provided as soon as possible but no later than 30 days
35following the conclusion of the well stimulation treatment.

36(c) (1) Within 60 days following cessation of a well stimulation
37 treatment, the operator shall post or cause to be posted to an
38Internet Web site designated or maintained by the division and
39accessible to the public all of the well stimulation fluid composition
40and disposition information required to be collected pursuant to
P25   1rules and regulations adopted under subdivision (a) of Section
23160.1, including well identification number and location. This
3shall include the collected water quality data, which the operator
4shall report electronically to the State Water Resources Control
5Board.

6(2) (A) The division shall commence the process to develop
7an Internet Web site for operators to report the information required
8under this section. The Internet Web site shall be capable of
9organizing the reported information in a format, such as a
10spreadsheet, that allows the public to easily search and aggregate,
11to the extent practicable, each type of information required to be
12collected pursuant to subdivision (a) of Section 3160.1 using search
13functions on that Internet Web site. The Internet Web site shall be
14functional within two years of the Department of Technology’s
15approval of a Feasibility Study Report or appropriation authority
16to fund the development of the Internet Web site, whichever occurs
17latest, but no later than January 1, 2016.

18(B) The division may direct reporting to an alternative Internet
19Web site developed by the Ground Water Protection Council and
20the Interstate Oil and Gas Compact Commission in the interim
21until approval or appropriation authority pursuant to subparagraph
22(A) occur. Prior to the implementation of the division’s Internet
23Web site, the division shall obtain the data reported by operators
24to the alternative Internet Web site and make it available in an
25organized electronic format to the public no later than 15 days
26after it is reported to the alternative Web site.

27(d) The operator is responsible for compliance with this section.

28(e) (1) All geologic features within a distance reflecting an
29appropriate safety factor of the fracture zone for well stimulation
30treatments that fracture the formation and that have the potential
31to either limit or facilitate the migration of fluids outside of the
32fracture zone shall be identified and added to the well history.
33Geologic features include seismic faults identified by the California
34Geologic Survey.

35(2) For the purposes of this section, the “fracture zone” is
36defined as the volume surrounding the well bore where fractures
37were created or enhanced by the well stimulation treatment. The
38safety factor shall be at least five and may vary depending upon
39geologic knowledge.

P26   1(3) The division shall review the geologic features important to
2assessing well stimulation treatments identified in the independent
3study pursuant to paragraph (5) of subdivision (a) of Section 3160.
4Upon completion of the review, the division shall revise the
5regulations governing the reporting of geologic features pursuant
6to this subdivision accordingly.

7(f) (1) Public disclosure of well stimulation treatment fluid
8information claimed to contain trade secrets is governed by Section
91060 of the Evidence Code, or the Uniform Trade Secrets Act
10(Title 5 (commencing with Section 3426) of Part 1 of Division 4
11of the Civil Code), and the California Public Records Act (Chapter
123.5 (commencing with Section 6250) of Division 7 of Title 1 of
13the Government Code).

14(2) Notwithstanding any other law or regulation, none of the
15following information shall be protected as a trade secret:

16(A) The identities of the chemical constituents of additives,
17including CAS identification numbers.

18(B) The concentrations of the additives in the well stimulation
19treatment fluids.

20(C) Any air or other pollution monitoring data.

21(D) Health and safety data associated with well stimulation
22treatment fluids.

23(E) The chemical composition of the flowback fluid.

24(3) If a trade secret claim is invalid or invalidated, the division
25shall release the information to the public by revising the
26information released pursuant to subdivision (c). The supplier shall
27notify the division of any change in status within 30 days.

28(4) (A) If a supplier believes that information regarding a
29chemical constituent of a well stimulation fluid is a trade secret,
30the supplier shall nevertheless disclose the information to the
31division in conjunction with a well stimulation treatment permit
32application, if not previously disclosed, within 30 days following
33cessation of well stimulation on a well, and shall notify the division
34in writing of that belief.

35(B) A trade secret claim shall not be made after initial disclosure
36of the information to the division.

37(C) To comply with the public disclosure requirements of this
38section, the supplier shall indicate where trade secret information
39has been withheld and provide substitute information for public
40disclosure. The substitute information shall be a list, in any order,
P27   1 of the chemical constituents of the additive, including CAS
2identification numbers. The division shall review and approve the
3supplied substitute information.

4(D) This subdivision does not permit a supplier to refuse to
5disclose the information required pursuant to this section to the
6division.

7(5) In order to substantiate the trade secret claim, the supplier
8shall provide information to the division that shows all of the
9following:

10(A) The extent to which the trade secret information is known
11by the supplier’s employees, others involved in the supplier’s
12business and outside the supplier’s business.

13(B) The measures taken by the supplier to guard the secrecy of
14the trade secret information.

15(C) The value of the trade secret information to the supplier and
16its competitors.

17(D) The amount of effort or money the supplier expended
18developing the trade secret information and the ease or difficulty
19with which the trade secret information could be acquired or
20duplicated by others.

21(6) If the division determines that the information provided in
22support of a request for trade secret protection pursuant to
23paragraph (5) is incomplete, the division shall notify the supplier
24and the supplier shall have 30 days to complete the submission.
25An incomplete submission does not meet the substantive criteria
26for trade secret designation.

27(7) If the division determines that the information provided in
28support of a request for trade secret protection does not meet the
29substantive criteria for trade secret designation, the department
30shall notify the supplier by certified mail of its determination. The
31division shall release the information to the public, but not earlier
32than 60 days after the date of mailing the determination, unless,
33prior to the expiration of the 60-day period, the supplier obtains
34an action in an appropriate court for a declaratory judgment that
35the information is subject to protection or for a preliminary
36injunction prohibiting disclosure of the information to the public
37and provides notice to the division of the court order.

38(8) The supplier is not required to disclose trade secret
39information to the operator.

P28   1(9) Upon receipt of a request for the release of trade secret
2information to the public, the following procedure applies:

3(A) The division shall notify the supplier of the request in
4 writing by certified mail, return receipt requested.

5(B) The division shall release the information to the public, but
6not earlier than 60 days after the date of mailing the notice of the
7request for information, unless, prior to the expiration of the 60-day
8period, the supplier obtains an action in an appropriate court for a
9declaratory judgment that the information is subject to protection
10or for a preliminary injunction prohibiting disclosure of the
11information to the public and provides notice to the division of
12that action.

13(10) The division shall develop a timely procedure to provide
14trade secret information in the following circumstances:

15(A) To an officer or employee of the division, the state, local
16governments, including, but not limited to, local air districts, or
17the United States, in connection with the official duties of that
18officer or employee, to a health professional under any law for the
19protection of health, or to contractors with the division or other
20government entities and their employees if, in the opinion of the
21division, disclosure is necessary and required for the satisfactory
22performance of a contract, for performance of work, or to protect
23health and safety.

24(B) To a health professional in the event of an emergency or to
25diagnose or treat a patient.

26(C) In order to protect public health, to any health professional,
27toxicologist, or epidemiologist who is employed in the field of
28public health and who provides a written statement of need. The
29written statement of need shall include the public health purposes
30of the disclosure and shall explain the reason the disclosure of the
31specific chemical and its concentration is required.

32(D) A health professional may share trade secret information
33with other persons as may be professionally necessary, in order to
34diagnose or treat a patient, including, but not limited to, the patient
35and other health professionals, subject to state and federal laws
36restricting disclosure of medical records including, but not limited
37to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
38Division 1 of the Civil Code.

39(E) For purposes of this paragraph, “health professional” means
40any person licensed or certified pursuant to Division 2
P29   1(commencing with Section 500) of the Business and Professions
2Code, the Osteopathic Initiative Act, the Chiropractic Initiative
3Act, or the Emergency Medical Services System and the
4Prehospital Emergency Medical Care Personnel Act (Division 2.5
5(commencing with Section 1797) of the Health and Safety Code).

6(F) A person in possession of, or access to, confidential trade
7secret information pursuant to the provisions of this subdivision
8may disclose this information to any person who is authorized to
9receive it. A written confidentiality agreement shall not be required.

10(g) A well granted confidential status pursuant to Section 3234
11shall not be required to disclose well stimulation treatment fluid
12information pursuant to subdivision (c) until the confidential status
13of the well ceases. Notwithstanding the confidential status of a
14well, it is public information that a well will be or has been subject
15to a well stimulation treatment.

16(h) The division shall perform random periodic spot check
17inspections to ensure that the information provided on well
18stimulation treatments is accurately reported, including that the
19estimates provided prior to the commencement of the well
20stimulation treatment are reasonably consistent with the well
21history.

22(i) Where the division shares jurisdiction over a well or the well
23stimulation treatment on a well with a federal entity, the division’s
24rules and regulations shall apply in addition to all applicable federal
25laws and regulations.

26(j) This article does not relieve the division or any other agency
27from complying with any other provision of existing laws,
28regulations, and orders.

29(k) Well stimulation treatments used for routine maintenance
30of wells associated with underground storage facilities where
31natural gas is injected into and withdrawn from depleted or partially
32depleted oil or gas reservoirs pursuant to subdivision (a) of Section
333403.5 are not subject to this section.

34

SEC. 5.  

Section 3161 of the Public Resources Code is repealed.

begin delete
35

3161.  

(a) The division shall finalize and implement the
36regulations governing this article on or before January 1, 2015.

37(b) The division shall allow, until regulations governing this
38article are finalized and implemented, and upon written notification
39by an operator, all of the activities defined in Section 3157,
40provided all of the following conditions are met:

P30   1(1) The owner or operator certifies compliance with subdivision
2(b) of, subparagraphs (A) to (F), inclusive, of paragraph (1) and
3paragraphs (6) and (7) of subdivision (d) of, and subdivision (g)
4of, Section 3160.

5(2) The owner or operator provides a complete well history,
6incorporating the information required by Section 3160, to the
7division on or before March 1, 2015.

8(3) The division conducts an environmental impact report (EIR)
9pursuant to the California Environmental Quality Act (Division
1013 (commencing with Section 21000)), in order to provide the
11public with detailed information regarding any potential
12environmental impacts of well stimulation in the state.

13(4) Any environmental review conducted by the division shall
14fully comply with all of the following requirements:

15(A) The EIR shall be certified by the division as the lead agency,
16no later than July 1, 2015.

17(B) The EIR shall address the issue of activities that may be
18conducted as defined in Section 3157 and that may occur at oil
19wells in the state existing prior to, and after, the effective date of
20this section.

21(C) The EIR shall not conflict with an EIR conducted by a local
22lead agency that is certified on or before July 1, 2015. Nothing in
23this section prohibits a local lead agency from conducting its own
24EIR.

25(5) The division ensures that all activities pursuant to this section
26fully conform with this article and other applicable provisions of
27law on or before December 31, 2015, through a permitting process.

28(6) The division has the emergency regulatory authority to
29implement the purposes of this section.

end delete
30

SEC. 6.  

Section 3161 is added to the Public Resources Code,
31to read:

32

3161.  

(a) All well stimulation treatments shall be prohibited
33until the scientific study pursuant to Section 3160 is completed
34and all of the requirements of this section are met.

35(b) No later than six months after the scientific study is
36complete, the Secretary of the Natural Resources Agency shall
37convene a committee to review the scientific study. The committee
38shall include a representative from all of following:

39(1) The Natural Resources Agency.

40(2) The California Environmental Protection Agency.

P31   1(3) The State Air Resources Control Board.

2(4) The State Water Resources Control Board.

3(5) The State Department of Public Health.

4(c) (1) After reviewing the scientific study as required under
5subdivision (b), the committee shall issue a tentative report,
6available to the public, evaluating the scientific study using the
7best scientific, health, environmental, and statistical information
8available, that shall include, but is not limited to, all of the
9following findings:

10(A) Whether the scientific study is based solely on the best
11scientific, health, environmental, and statistical information
12available, and meets all of the requirements of subdivision (a) of
13Section 3160.

14(B) Whether the regulations adopted pursuant to Section 3160.1
15are sufficient to ensure that the damage and risks associated with
16well stimulation treatments, and the increased oil and gas
17development as a result of these treatments, do not pose a risk to,
18or impairment of, the public health and welfare or the
19environmental and economic sustainability of the state.

20(C) Whether there are measures in place to ensure that well
21stimulation treatments, and the increased oil and gas development
22as a result of these treatments, will not impede progress for
23achieving the greenhouse gas reduction targets under the California
24Global Warming Solutions Act of 2006 (Division 25.5
25(commencing with Section 38500) of the Health and Safety Code).

26(D) Whether other specific measures are in place to ensure that
27well stimulation treatments within the state do not pose a risk to,
28or impairment of, the public health and welfare or the
29 environmental and economic sustainability of the state.

30(2) The public shall have 60 days to submit comments to the
31committee regarding the tentative report and the committee shall
32give full consideration to all of the comments received.

33(3) (A) If the findings in the report conclude that well
34stimulation treatments pose a risk to, or impairment of, the public
35health and welfare or to the environmental and economic
36sustainability of the state, the committee may require an additional
37study to address any areas of concern and the prohibition on well
38stimulation treatments pursuant to subdivision (a) shall remain in
39effect.

P32   1(B) If the findings in the report conclude that well stimulation
2treatments do not pose a risk to, or impairment of, the public health
3and welfare or to the environmental and economic sustainability
4of the state, the committee shall certify the report as final.

5(d) Upon certification by the committee, the report shall be
6provided to the Governor and the appropriate committees of the
7Legislature.

8(e) (1) Upon receipt of the report, the Governor shall determine
9whether specific measures are in place to ensure that well
10stimulation treatments within the state do not pose a risk to, or
11impairment of, the public health and welfare or to the
12environmental and economic sustainability of the state, and shall
13provide specific findings of this determination to the Legislature.

14(2) If the Governor’s findings conclude that there are not specific
15measures in place as described in paragraph (1), the prohibition
16on well stimulation treatments pursuant to subdivision (a) shall
17 remain in effect.

18(3) If the Governor’s findings conclude that there are specific
19measures in place as described in paragraph (1), the prohibition
20of well stimulation treatments pursuant to subdivision (a) shall
21end on the date provided in subdivision (f).

22(4) A person who submitted comments to the committee or
23provided testimony at a hearing held by the division pursuant to
24paragraph (9) of subdivision (a) of Section 3160 may seek judicial
25review of the Governor’s findings within 90 days after the date
26that the findings are issued. The Governor’s findings shall be
27considered final when all pending legal challenges are resolved
28and the Governor’s findings based on clear and convincing
29evidence, are affirmed.

30(f) (1) This section shall become inoperative 90 days after the
31date the Governor issues the findings pursuant to paragraph (3) of
32subdivision (e) or, if judicial review pursuant to paragraph (4) of
33subdivision (e) is requested, on the date the Governor’s findings
34are considered final.

35(2) This section shall be repealed on January 1 immediately
36following the date it becomes inoperative under paragraph (1).

37(g) (1) This section shall not be interpreted to impair or infringe
38any vested right to conduct or continue to conduct a well
39stimulation treatment.

P33   1(2) The division shall adopt a formal process to determine
2whether a person has a vested right to perform a well stimulation
3treatment.

4(3) A person claiming a vested right to perform a well
5stimulation treatment has the burden of proof, by clear and
6convincing evidence, that he or she had a vested right and may
7request a public hearing with the division.

8(4) A person claiming a vested right shall not perform a well
9stimulation treatment until the division makes a final determination
10that the person has a vested right.

11

SEC. 7.  

No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13the only costs that may be incurred by a local agency or school
14district will be incurred because this act creates a new crime or
15infraction, eliminates a crime or infraction, or changes the penalty
16for a crime or infraction, within the meaning of Section 17556 of
17the Government Code, or changes the definition of a crime within
18the meaning of Section 6 of Article XIII B of the California
19Constitution.


CORRECTIONS:

Text--Pages 2, 5, 12, and 31.




O

Corrected 2-28-14—See last page.     99