SB 1281, as amended, Pavley. Oil and gas production: water use: reporting.
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. Existing law requires the owner of any well to file with the State Oil and Gas Supervisor a monthly statement that provides certain information relating to the well, including what disposition was made of the water produced from each field. Existing law provides that a person who fails to comply with specific laws relating to the regulation of oil or gas operations, including failing to furnish a report or record, is guilty of a misdemeanor.
This bill would declare that it is the policy of the state that oil and gas field exploration, development, and production shall use, or treat and use, water produced though oil field activities
and other recycled water to the extent feasible. The bill would require, in the event, and duration, of a declared state of emergency because of a drought, new oil and gas field, exploration, development, and production, as defined, to use recycledbegin delete water andend deletebegin insert water. The billend insert would prohibit the use of water frombegin delete an unmanagedend deletebegin insert aend insert groundwaterbegin delete basin.end deletebegin insert basin or subbasin designated as highend insertbegin insert
priority if the use would compromise existing use for domestic or irrigation purposes.end insert The bill would require thebegin delete monthlyend delete statement to the supervisor to include the source and volume of any water reported, including water used to generate or make up the composition of any injected fluid or gas, as providedbegin insert, and would require that information to be reported on a quarterly basisend insert. The bill would also require the statement to include additional information, including the treatment of water and the use of treated or recycled water in oil and gas field activities, as providedbegin insert, and would require that information to be reported on a quarterly basisend insert. The bill would require the division, among
other things, to use a standardized form or format to facilitate reportingbegin insert
and to use noncustom software, as feasible, to implement online reporting by the operator of specified informationend insert. Because a violation of the bill’s reporting requirements by an owner or operator 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:
The Legislature finds and declares all of the
2following:
3(a) Existing state policy promotes the use of recycled water in
4industry where feasible.
5(b) Water of previously unsuitable quality may now be used or
6treated and used in some oil and gas industry processes due to
7technological advancement.
8(c) Information facilitating an analysis of the water used or
9produced by each well would improve understanding of water use
10in the state’s oil and gas fields.
11(d) In the event of extreme water scarcity, untreated high-quality
12water should not be used
for new oil and gas exploration,
P3 1development, or production. According to the Department of Water
2Resources, groundwater resources throughout the state are at
3historically low levels.
Section 3226.3 is added to the Public Resources Code,
5to read:
The division shall annually provide to the State Water
7Resources Control Board and the California regional water quality
8control boards an inventory of all unlined oil and gas field sumps.
Section 3226.5 is added to the Public Resources Code,
10to read:
It is the policy of the state that oil and gas field
12exploration, development, and production shall use, or treat and
13use, water produced through oil field activities and other recycled
14water to the extent feasible. The use and reuse of water initially
15unsuitable forbegin delete drinkingend deletebegin insert domesticend insert or irrigation purposes is
16encouraged.
Section 3226.7 is added to the Public Resources Code,
18to read:
(a) In the event, and for the duration, of a declared
20state of emergency, pursuant to Article 13 (commencing with
21Section 8625) of Chapter 7 of Division 1 of Title 2 of the
22Government Code, because of a drought, new oil and gas field
23exploration, development, and production shall use recycled water,
24as defined in subdivision (n) of Section 13050 of the Water Code.
25begin insert Recycled water includes water that is produced from a well used
26to produce oil, gas, or both, that has been separated from the oil,
27gas, or both, and that has been treated.end insert
28(b) New oil and gas field exploration, development, and
29production shall not use water obtained from a
groundwater basinbegin delete30 that is not managed in accordance with Division 6 (commencing
31with
Section 10000) of the Water Code.end delete
32being of highend insertbegin insert priority pursuant to Sections 10933 and 12924 of
33the Water Code if this use would compromise existing use for
34domestic or irrigation purposes pursuant to end insertbegin insertstate policy established
35in Section 106 of the Water Code.end insert
36(c) For purposes of this section, “new oil and gas field
37exploration, development, and production” means any oil field
38activity that requires the division to issue a new permit or notice
39of intention pursuantbegin insert toend insert
Section 3203.
Section 3227 of the Public Resources Code is amended
2to read:
(a) The owner of any well shall file with the supervisor,
4on or before the last day of each month, for the last preceding
5calendar month, a statement, in the form designated by the
6supervisor, showing all of the following:
7(1) The amount of oil and gas produced from each well during
8the period indicated, together with the gravity of the oil, the amount
9of water produced from each well, estimated in accordance with
10methods approved by the supervisor, and the number of days during
11which fluid was produced from each well.
12(2) The number of wells drilling, producing, injecting, or idle,
13that are owned or operated by the person.
14(3) What disposition was made of the gas produced from each
15field, including the names of persons, if any, to whom the gas was
16delivered, and any other information regarding the gas and its
17disposition that the supervisor may require.
18(4) begin deleteThe end deletebegin insertWhat disposition was made of water produced from
19each fieldend insertbegin insert and the end insertamount of fluid or gas injected into each well
20used for enhanced recovery, underground storage of hydrocarbons,
21or wastewater disposal, and any other information regarding those
22wells that the supervisor may require.
23(5) The source of water, and volume of any water, reported in
24paragraph (4), including the water used to generate or make up the
25composition of any injected fluid or gas. Water volumes shall be
26reported by water source if more than one water source is used.
27The volume of untreated water suitable forbegin delete drinkingend deletebegin insert domesticend insert or
28irrigation purposes shall be reported.begin insert end insertbegin insertCommingled water shall be
29proportionally assigned to individual wells, as appropriate.end insert
30(6) The treatment of water and the use
of treated or recycled
31water in oil and gas field activities, including, but not limited to,
32exploration, development, and production.
33(7) begin insert(A)end insertbegin insert end insert The specific disposition of all water used in or generated
34by oil and gas field activities, including water produced from each
35well reported pursuant to paragraph (1).begin insert end insertbegin insertWater volumes shall be
36reported by disposition method if more than one disposition method
37is used. Commingled water shall be proportionally assigned to
38individual wells, as appropriate.end insert
P5 1(B) This information shall also include the temporary onsite
2storage of water, as or if appropriate, and the ultimate specific
3use, disposal method or method of recycling, or reuse of this water.
4(b) Any operator that produces oil by the application of mining
5or other unconventional techniques shall file a report with the
6supervisor, on or before March 1 of each year, showing the amount
7of oil produced by those techniques in the preceding calendar year.
8(c) begin insert(1)end insertbegin insert end insertUpon request and making a satisfactory showing
9therefor, a longer filing period may be established by the supervisor
10for any particular owner or operator.
11(2) Notwithstanding subdivision (a), the owner of any well shall
12file with the supervisor, on a quarterly basis, a statement
13containing the information required to be reported pursuant to
14paragraphs (5), (6), and (7) of subdivision (a) in the form
15designated by the supervisor.
16 (d) The division shall use a standardized form or format to
17facilitate reporting required pursuant to this section.
18(e) The division shall use noncustom software, as feasible, to
19implement online reporting by the operator of the information
20required pursuant to paragraphs (5), (6), and (7) of subdivision
21(a). This information may be reported separately from other
22information required to be reported pursuant to this section.
23(e)
end delete
24begin insert(f)end insert For purposes of this section, the following terms have the
25following meanings:
26(1) “Source of water” or “water source” means any of the
27following:
28(A) The well or wells, if commingled, from which the water
29was produced or extracted.
30(B) The water supplier, if purchased or obtained from a supplier.
31(C) The point of diversion of surface water.
32(2) “Specific disposition of all water” means the identification
33of the ultimate specificbegin insert
use,end insert disposal method or method ofbegin delete recyclingend delete
34begin insert
recycling,end insert orbegin delete re-useend deletebegin insert reuseend insert of the water. This includes, but is not
35limited to, the identification of any treatment or recycling method
36used, injection of the water into specific injection or disposal well
37or wells, if commingled, discharge of the water to surface water
38or sumps, and sale or transfer of the water to a named entity.
39begin delete Temporary on-site storage of water shall not constitute a specific
40disposition of water.end delete
P6 1(3) “Recycled water” has the same meaning as that term is
2defined in subdivision (n) of Section 13050 of the Water Code.
3begin insert
Recycled water includes water that is produced from a well used
4to produce oil, gas, or both, that has been separated from the oil,
5gas, or both, and that has been treated.end insert
No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.
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