BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1281|
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UNFINISHED BUSINESS
Bill No: SB 1281
Author: Pavley (D)
Amended: 8/22/14
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMMITTEE : 8-0, 4/29/14
AYES: Pavley, Cannella, Evans, Hueso, Jackson, Lara, Monning,
Wolk
NO VOTE RECORDED: Fuller
SENATE APPROPRIATIONS COMMITTEE : 6-0, 5/23/14
AYES: De León, Gaines, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters
SENATE FLOOR : 27-3, 5/27/14
AYES: Anderson, Beall, Block, Corbett, Correa, De León,
DeSaulnier, Evans, Gaines, Galgiani, Hancock, Hernandez, Hill,
Hueso, Jackson, Lara, Leno, Lieu, Mitchell, Monning, Padilla,
Pavley, Roth, Steinberg, Torres, Wolk, Wyland
NOES: Knight, Morrell, Vidak
NO VOTE RECORDED: Berryhill, Calderon, Cannella, Fuller, Huff,
Liu, Nielsen, Walters, Wright, Yee
ASSEMBLY FLOOR : 72-6, 8/27/14 - See last page for vote
SUBJECT : Oil and gas production: water use reporting
SOURCE : Author
DIGEST : This bill requires the Division of Oil, Gas and
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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.
Assembly Amendments delete finding and declarations; define
various terms for purposes of this bill; require the division,
among other things, to use a standardized form or format to
facilitate reporting, as specified; require the division to use
non-custom software, as feasible, to implement online reporting
by the operator of specified information; and make other
clarifying and technical changes.
ANALYSIS :
Existing law:
1.Regulates, under the DOGGR in the Department of Conservation,
the drilling, operation, maintenance, stimulation, and
abandonment of oil and gas wells in the state.
2.Requires the owner of any well to file with the DOGGR
Supervisor a monthly statement that provides certain
information relating to the well, including what disposition
was made of the water produced from each field.
3.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:
1.Requires the monthly statement that provides specified
information relating to the oil and gas well, to the DOGGR
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 provided, and
requires that information to be reported on a quarterly basis.
2.Requires the statement to include additional information,
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including the treatment of water and the use of treated or
recycled water in oil and gas field activities, as provided,
and requires that information to be reported on a quarterly
basis.
3.Requires the DOGGR, among other things, to use a standardized
form or format to facilitate reporting and to use non-custom
software, as feasible, to implement online reporting by the
operator of specified information.
4.Requires the DOGGR to annually provide to the State Water
Resources Control Board and the California regional water
quality control boards an inventory of all unlined oil and gas
field sumps.
Background
SB 4 (Pavley, Chapter 313, Statutes of 2013) established a
regulatory program for oil and gas well stimulation treatments
(e.g. hydraulic fracturing, acid well stimulation) which
includes, among other things, a study, the development of
regulations, a permitting process, and public notification and
disclosure. Section 3160 of the Public Resources Code states
required content of the regulations, including full disclosure
of the composition and disposition of hydraulic fracturing
fluids and acid stimulation treatment fluids. At a minimum,
this disclosure includes the source, volume, and specific
composition and disposition of all water, including water that
is used as a base fluid and water that is recovered from the
well following the treatment.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee:
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.
Ongoing costs of $125,000 from the Oil, Gas, and Geothermal
Administrative Fund for the management of the expanded data.
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SUPPORT : (Verified 8/27/14)
California League of Conservation Voters
Citizens for Responsible Oil and Gas
Clean Water Action
Earthworks
Environmental Defense Center
Environmental Working Group
Grassroots Coalition
League of Women Voters of California
Los Padres ForestWatch
Main Street Moms
Mount Shasta Bioregional Ecology Center
Natural Resources Defense Council
Save the Sespe
Sierra Club California
South Monterey County Citizen Planning Alliance
Southern Monterey County Rural Coalition
Wildlands Conservancy
ARGUMENTS IN SUPPORT : According to the author, "California is
suffering from one of the worst droughts since it became a
state. Last year, 2014, was the driest year in terms of
rainfall since 1850. Water scarcity is not unusual here, and is
a matter of considerable public concern.
"The amount of water used in oil and gas field exploration,
development and production is also of continuing and significant
public concern. Much of California's oil and gas production is
located in arid parts of the Central Valley and where existing
groundwater - particularly good quality groundwater - may be
depleted or under threat of depletion.
"Earlier this year, I asked the Senate Office of Research (SOR)
to find out how much water is used in oil and gas activities in
California. While some information is routinely provided to
regulators, SOR could only provide very rough estimates. The
current reporting requirements are inadequate. The data
reported don't add up.
"SB 1281 is designed to address the public's concerns in two
ways. First, it establishes state policy to promote the use and
treatment and use of produced water and recycled water for oil
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and gas field operations. Second, it enhances existing water
reporting requirements. Implementation of SB 1281 will provide
public transparency and adequate recordkeeping on water use in
the oil and gas industry."
ASSEMBLY FLOOR : 72-6, 8/27/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chesbro, Conway, Cooley, Dababneh,
Dahle, Daly, Dickinson, Eggman, Fong, Frazier, Beth Gaines,
Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Hagman,
Hall, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine,
Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina,
Melendez, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan,
Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva,
Rendon, Ridley-Thomas, Rodriguez, Skinner, Stone, Ting,
Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada,
Atkins
NOES: Chávez, Donnelly, Fox, Grove, Patterson, Salas
NO VOTE RECORDED: Harkey, Vacancy
RM:e 8/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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