BILL ANALYSIS Ó SB 1281 Page 1 SENATE THIRD READING SB 1281 (Pavley) As Amended August 22, 2014 Majority vote SENATE VOTE :27-3 NATURAL RESOURCES 6-3 APPROPRIATIONS 10-6 ----------------------------------------------------------------- |Ayes:|Chesbro, Garcia, |Ayes:|Gatto, Bocanegra, | | |Muratsuchi, Skinner, | |Bradford, Campos, Eggman, | | |Stone, Williams | |Gomez, Holden, Pan, | | | | |Quirk, Weber | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Dahle, Bigelow, Patterson |Nays:|Bigelow, Donnelly, Jones, | | | | |Linder, Ridley-Thomas, | | | | |Wagner | ----------------------------------------------------------------- SUMMARY : Requires the Division of Oil, Gas and Geothermal Resources (DOGGR) to collect information regarding unlined oil and gas field sumps. Requires additional information on water used during oil and gas field activities on the reporting statements filed by an owner of a well as specified. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)One-time costs in the range of at least $1 million from the Oil, Gas, and Geothermal Administrative Fund over a period of up to two years for the expansion of the reporting system to include additional required information. 2)Ongoing costs of $125,000 from the Oil, Gas, and Geothermal Administrative Fund for the management of the expanded data. COMMENTS : According to the Central Valley Regional Water Board (CVRWB), produced water, which accounts for about 95% of the fluids produced during oil well production (the other 5% is oil), was historically disposed of by discharge to dry stream channels or unlined surface impoundments (sumps). A sump is a surface impoundment or excavated depression used to separate crude oil, water, and solids in oil fields. SB 1281 Page 2 CVRWB is in the process of reviewing unlined sumps in its jurisdiction. Many of the sumps are covered by out-of-date waste discharge requirement (WDR) permits, and CVRWB is working to bring these up-to-date, where needed. This bill will require DOGGR to collect information on unlined sumps, which would help CVRWB revise these old permits. This bill will also require an owner of an oil or gas well to periodically submit information to DOGGR on water used during oil and gas field activities. Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092 FN: 0005357