BILL NUMBER: AB 356 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 17, 2015
INTRODUCED BY Assembly Member Williams
(Coauthors: Assembly Members Nazarian and Mark Stone)
FEBRUARY 17, 2015
An act to amend Section 3106 Sections 3106
and 3401 of, and to add Section 3106.1 to,
Article 2.5 (commencing with Section 3130) to Chapter 1 of
Division 3 of, the Public Utilities
Resources Code, and to add Section 13227.5 to the Water Code,
relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
AB 356, as amended, Williams. Oil and gas: groundwater monitoring.
(1) Existing law requires the State Oil and Gas Supervisor to
supervise the drilling, operation, maintenance, and abandonment of
wells and the operation, maintenance, and removal or abandonment of
tanks and facilities attendant to oil and gas production. Existing
law authorizes the supervisor to require a well operator to implement
a monitoring program, designed to detect releases to the soil and
water, for aboveground oil production tanks and facilities. Under
existing law, a person who fails to comply with specified
requirements relating to the regulation of oil or gas operation is
guilty of a misdemeanor.
This bill would additionally authorize the supervisor to require a
well operator to implement a monitoring program for belowground oil
production tanks and facilities, and disposal and injection
wells,. wells. Because a failure to comply with
this requirement would be a crime, this bill would impose a
state-mandated local program.
(2) The federal Safe Drinking Water Act regulates certain wells as
Class II injection wells. Under existing federal
law, the authority to regulate Class II injection
wells in California is delegated to the Division of Oil, Gas, and
Geothermal Resources. Under existing regulations, a well operator is
required to obtain approval from the supervisor or a district deputy
for a subsurface injection or disposal project, including Class II
injection wells, or any change in a project, as
provided.
This bill would require the division to annually review
underground injection or disposal projects approved by the division
that use Class II wells . The bill would require
an the operator of a Class II
injection well, the project, as a part of its
application or notice of change the annual
review process, to submit to an the
State Water Resources Control Board or appropriate regional
water quality control board for its review a groundwater
monitoring plan containing certain information, including, among
other things, a schedule for monitoring and reporting groundwater
quality data. data, as provided. The
bill would require the data be submitted to the State Water
Resources Control Board state board for
inclusion in the state board's geotracker database. Because a
violation of this requirement would be a crime, this bill would
impose a state-mandated local program. The bill would require the
state board or regional water quality control board to
review and approve authorize them to provide
a written concurrence for the plan.
(3) Existing federal law prohibits certain well activities that
affect underground sources of drinking water unless those sources are
located in an exempt aquifer. Existing federal law authorizes a
state delegated with the responsibility of regulating Class II wells
to propose that an aquifer or a portion of an aquifer be an exempt
aquifer and authorizes the United States Environmental Protection
Agency to approve the proposal if the aquifer or a portion of the
aquifer meets certain criteria.
This bill would require the division, prior to proposing to the
United States Environmental Protection Agency an aquifer for
exemption, to hold a public hearing on the proposal and to submit the
proposal to the state board for review and written concurrence. The
bill would authorize the state board to concur with the proposal if
certain conditions are met.
(3)
(4) 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:
SECTION 1. Section 3106 of the Public Resources Code is amended to
read:
3106. (a) The supervisor shall so supervise the drilling,
operation, maintenance, and abandonment of wells and the operation,
maintenance, and removal or abandonment of tanks and facilities
attendant to oil and gas production, including pipelines not subject
to regulation pursuant to Chapter 5.5 (commencing with Section 51010)
of Part 1 of Division 1 of Title 5 of the Government Code that are
within an oil and gas field, so as to prevent, as far as possible,
damage to life, health, property, and natural resources; damage to
underground oil and gas deposits from infiltrating water and other
causes; loss of oil, gas, or reservoir energy; and damage to
underground and surface waters suitable for irrigation or domestic
purposes by the infiltration of, or the addition of, detrimental
substances.
(b) The supervisor shall also supervise the drilling, operation,
maintenance, and abandonment of wells so as to permit the owners or
operators of the wells to utilize all methods and practices known to
the oil industry for the purpose of increasing the ultimate recovery
of underground hydrocarbons and which, in the opinion of the
supervisor, are suitable for this purpose in each proposed case. To
further the elimination of waste by increasing the recovery of
underground hydrocarbons, it is hereby declared as a policy of this
state that the grant in an oil and gas lease or contract to a lessee
or operator of the right or power, in substance, to explore for and
remove all hydrocarbons from any lands in the state, in the absence
of an express provision to the contrary contained in the lease or
contract, is deemed to allow the lessee or contractor, or the lessee'
s or contractor's successors or assigns, to do what a prudent
operator using reasonable diligence would do, having in mind the best
interests of the lessor, lessee, and the state in producing and
removing hydrocarbons, including, but not limited to, the injection
of air, gas, water, or other fluids into the productive strata, the
application of pressure heat or other means for the reduction of
viscosity of the hydrocarbons, the supplying of additional motive
force, or the creating of enlarged or new channels for the
underground movement of hydrocarbons into production wells, when
these methods or processes employed have been approved by the
supervisor, except that nothing in this section imposes a legal duty
upon the lessee or contractor, or the lessee's or contractor's
successors or assigns, to conduct these operations.
(c) The supervisor may require an operator to implement a
monitoring program, designed to detect releases to the soil and
water, including both groundwater and surface water, for aboveground
and belowground oil production tanks and facilities, and disposal and
injection wells.
(d) To best meet the oil and gas needs in this state,
the supervisor shall administer this division so as to encourage the
wise development of oil and gas resources.
SEC. 2. Section 3106.1 is added to the Public
Resources Code, to read:
3106.1. (a) Notwithstanding subdivision (c) of Section 3106, for
a well that is a Class II injection well pursuant to the federal Safe
Drinking Water Act (42 U.S.C. Sec. 311f et seq.), an operator
submitting an application for approval pursuant to Section 1724.6 of
Title 14 of the California Code of Regulations or a notice of intent
pursuant to Section 1724.10 of Title 14 of the California Code of
Regulations shall provide, as a part of the application or notice, a
groundwater monitoring plan for review and approval by an appropriate
regional water quality control board. The groundwater monitoring
plan shall include, at a minimum, all of the following information:
(1) The current water quality of the groundwater basin through
which the well passes, that is sufficient to characterize the quality
of the aquifer.
(2) The current water quality of the injection zone sufficient to
demonstrate that the injection zone is not suitable to be used as a
source of drinking or irrigation water based on treatment
technologies existing at the time of application or notice.
(3) The identification of both public supply and domestic water
wells located within one mile of the boundaries of the injection
zone.
(4) A demonstration that the proposed injection well is located in
an area that is geologically suitable, including an appropriate
confining and injection zone.
(5) Chemical and physical analyses of, and data regarding,
identities and concentrations of all constituents present in the
injected fluid or gas. Subdivision (j) of Section 3160 shall apply to
a claim of trade secret for information described in this paragraph.
(6) Sites for monitoring wells that will allow for the detection
of contamination or degradation associated with injection well
operations during and after the period of its active use.
(7) (A) A schedule for monitoring and reporting data that provides
groundwater quality data on a quarterly basis, at a minimum, during
the active life of a well and at least annually after the well has
been closed and abandoned.
(B) The data shall be submitted electronically to the State Water
Resources Control Board for inclusion in the state board's geotracker
database.
(8) An emergency plan that will be implemented in the case of a
well failure or other event that has the potential to degrade
groundwater.
(b) This section does not apply to a well if the appropriate
regional water quality board has determined that the well meets both
of the following:
(1) The well does not inject into, or pass through, an aquifer
with a beneficial use.
(2) There are no public supply or domestic water wells located
within one mile of the injection zone.
SEC. 2. Article 2.5 (commencing with Section 3130)
is added to Chapter 1 of Division 3 of the Public
Resources Code , to read:
Article 2.5. Underground Injection Control
3130. For purposes of this article, the following terms mean the
following:
(a) "Class II well" means a well that injects brine and other
fluids associated with oil and gas production or a well that injects
hydrocarbons for the purposes of storage.
(b) "Exempt aquifer" means an aquifer that has been proposed by
the division and approved by the United States Environmental
Protection Agency for exemption from the UIC program and meets the
criteria for an aquifer exemption determination pursuant to the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and
regulations implementing that act.
(c) "Project" means an underground injection or disposal project
that uses a Class II well.
(d) "State board" means the State Water Resources Control Board.
(e) "UIC program" means a program covering Class II wells for
which the division has received primacy from the United States
Environmental Protection Agency pursuant to Section 1425 of the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).
3131. (a) Prior to proposing to the United States Environmental
Protection Agency an aquifer as an exempt aquifer, the division shall
do both of the following:
(1) Conduct a public hearing on the proposal.
(2) Submit the proposal to the state board for written
concurrence.
(b) The state board may concur on the proposal if all of the
following conditions are met:
(1) The division has included in the proposal all data necessary
to meet the aquifer exemption criteria set forth in Section 146.4 of
Title 40 of the Code of Federal Regulations.
(2) The state board determines that the proposed aquifer cannot
now, or will not in the future, serve as a source of drinking water
or for other beneficial uses.
(3) The state board determines that injection into the proposed
aquifer will stay in the proposed area and will not impact the
ability of nearby nonexempt aquifers to be a source of drinking water
or for other beneficial uses.
3132. The division shall review annually all projects approved
pursuant to this chapter for compliance with applicable law.
3133. As a part of an application for approval of a project or as
a part of the annual review conducted pursuant to Section 3132, the
operator of the project shall submit to the state board or
appropriate regional water quality control board for review and
concurrence a groundwater monitoring plan meeting the requirements of
Section 3134.
3134. (a) The groundwater monitoring plan required pursuant to
Section 3133 shall include, at a minimum, all of the following:
(1) Information demonstrating that the aquifer into which the
injection occurs or the proposed injection will occur is an exempt
aquifer.
(2) Information regarding the current water quality of the
groundwater basin through which the well passes sufficient to
characterize the quality of the aquifer.
(3) Information regarding the current water quality of the
injection zone sufficient to demonstrate that the injection zone is
not suitable to be used as a source of drinking or irrigation water
based on treatment technologies existing at the time of submission of
the plan.
(4) The identification of both public supply and domestic water
wells located within one mile of the boundaries of the injection zone
or evidence showing that there are no public supply or domestic
water wells located within the one mile zone.
(5) A demonstration that the proposed injection well is located in
an area that is geologically suitable, including an appropriate
confining and injection zone.
(6) Chemical and physical analyses of, and data regarding,
identities and concentrations of all constituents present in the
injected fluid or gas. Subdivision (j) of Section 3160 shall apply to
a claim of trade secret for information described in this paragraph.
(7) (A) Sites for monitoring wells that will allow for the
detection of contamination or degradation associated with underground
injection projects during and after the period of its active use.
(B) Sites for monitoring wells that demonstrate that the injection
fluid is confined to the intended injection zone or zones of
injection.
(8) (A) A schedule for monitoring and reporting data that
provides, at a minimum, groundwater quality data on a quarterly basis
during the active life of the well and at least annually after the
well has been closed and abandoned.
(B) The data shall be submitted electronically to the state board
for inclusion in the state board's geotracker database.
(9) An emergency plan that will be implemented in the case of a
well failure or other event that has the potential to degrade
groundwater.
(b) Subparagraph (A) of paragraph (7) of subdivision (a) does not
apply to a well if the state board or appropriate regional water
quality board has determined that the well meets both of the
following:
(1) The well does not inject into, or pass through, an aquifer
with a beneficial use.
(2) There are no public supply or domestic water wells located
within one mile of the injection zone.
(c) (1) The state board or appropriate regional water quality
control board may revise the monitoring plan to avoid duplication and
assist with regional monitoring plans associated with oil and gas
activities.
(2) The state board or appropriate regional water quality board
may authorize the well operator to rely on a regional monitoring plan
in lieu of the requirements of paragraphs (7) and (8) of subdivision
(a).
SEC. 3. Section 3401 of the Public
Resources Code is amended to read:
3401. (a) The proceeds of charges levied, assessed, and collected
pursuant to this article upon the properties of every person
operating or owning an interest in the production of a well shall be
used exclusively for the support and maintenance of the department
charged with the supervision of oil and gas operations.
(b) Notwithstanding subdivision (a), the proceeds of charges
levied, assessed, and collected pursuant to this article upon the
properties of every person operating or owning an interest in the
production of a well undergoing a well stimulation treatment, may be
used by public entities, subject to appropriation by the Legislature,
for all costs associated with both of the following:
(1) Well stimulation treatments, including rulemaking and
scientific studies required to evaluate the treatment, inspections,
any air and water quality sampling, monitoring, and testing performed
by public entities.
(2) The costs of the State Water Resources Control Board and the
regional water quality control boards in carrying out their
responsibilities pursuant to Section 3160 and Section 10783 of the
Water Code.
(c) Notwithstanding subdivision (a), the proceeds of charges
levied, assessed, and collected pursuant to this article upon the
properties of every person operating or owning an interest in an
injection or disposal well subject to Article 2.5 (commencing with
Section 3130), may be used, subject to appropriation by the
Legislature, for all costs of the State Water Resources Control Board
or appropriate regional water quality control board in carrying out
their responsibilities pursuant to that article and Section 13227.5
of the Water Code.
SEC. 3. SEC. 4. Section 13227.5 is
added to the Water Code, to read:
13227.5. A The state board or appropriate
regional board, with respect to its region,
board shall review and approve may
provide a written concurrence for a groundwater monitoring
plan submitted pursuant to Section 3106.1
3133 of the Public Resources Code to ensure that groundwater
quality is protected.
SEC. 4. SEC. 5. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.