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