BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1420


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          Date of Hearing:  April 27, 2015


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 1420  
          Salas - As Amended April 21, 2015


          SUBJECT:  Oil and gas:  pipelines


          SUMMARY:  Requires a local health officer, if notified of a leak  
          in a pipeline regulated by the Department of Conservation's  
          Division of Oil, Gas and Geothermal Resources (DOGGR), to direct  
          the responsible party to test soil, air, and water; and, based  
          on the test results, make an assessment of the risk to the  
          public. If the leak poses a risk to the public, requires the  
          local health officer to notify residents affected by the leak of  
          the threat and provide assistance to the public. 


          EXISTING LAW: 


          1)Requires DOGGR to prescribe minimum facility maintenance  
            standards for oil and gas production facilities, including  
            pipelines that are not under the jurisdiction of the State  
            Fire Marshal. 


          2)Requires minimum facility maintenance standards to include  
            standards for leak detection.










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          3)Establishes local health departments under the purview of the  
            local health officer. Prescribes various duties for those  
            local health departments, including supervising remediation  
            when hazardous waste is released and enforcing statutes  
            relating to public health.


          THIS BILL:


          1)If the local health officer is notified of a leak in a  
            pipeline that is regulated by DOGGR, and the local health  
            officer makes a determination that the leak poses a risk to  
            public health, the officer shall, working collaboratively with  
            the division and the owner or operator of the pipeline, do  
            both of the following:


             a)   Direct the responsible party to test the soil, air, and  
               water in the affected area for contamination caused by the  
               leak and disclose the results of the tests to the public.


             b)   Make a determination, based on the result of the tests,  
               on whether the leak poses a serious threat to the public  
               health and safety of residents affected by the leak, and  
               provide assistance to those residents.


          2)Requires DOGGR to prioritize the identification and testing of  
            all pipelines under its jurisdiction that are near sensitive  
            areas, such as residential areas and schools.


          3)Requires the operator of the pipeline to promptly notify the  
            local health officer and DOGGR of a leak.


          FISCAL EFFECT:  Unknown








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          COMMENTS: 


          1)Author's statement.


               California is the fourth largest oil and gas producing  
               state and natural resources extraction is an important  
               contributor to the state's economy. Most oil  
               production in California occurs in Kern County in the  
               San Joaquin Valley. Oil also is produced from wells in  
               portions of Los Angeles County and Orange County and  
               on or near the central coast near Santa Barbara.





               As the industry continues to be a fixture in  
               California, the safety of workers, communities, and  
               the environment should remain a top priority. Despite  
               precautions taken, incidents occur in which immediate  
               action is needed to protect the health, safety, and  
               environment of nearby communities.





               In early 2014, a gas leak was detected beneath the  
               community of Arvin, California. A total of eight  








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               families were evacuated from their homes and unable to  
               return for several months. Affected residents claimed  
               to have smelled gas, and complained of nosebleeds,  
               headaches, coughing, and dizziness. Once the leak was  
               detected, affected residents were unclear where to get  
               resources and information. This incident demonstrated  
               a lack of clarity in the law regarding the role of all  
               involved entities.





               AB 1420 will ensure that clear guidelines exist should  
               another similar incident occur.


          2)Gas leaks and DOGGR.  According to DOGGR's regulations  
            governing pipeline testing, operators are required to visually  
            inspect all aboveground pipelines for leaks and corrosion at  
            least once a year. For underground urban pipelines that are  
            older than 10 years, over 4 inches in diameter, and are in  
            environmentally sensitive areas, testing every two years is  
            required. A county board of supervisors, a city council, or a  
            state agency may petition the Supervisor of DOGGR to include  
            other pipelines as environmentally sensitive. DOGGR  
            regulations also require an operator to promptly report  
            significant gas leaks to the appropriate DOGGR district  
            office.


            When asked about its responsibility for the March 2014 Arvin  
            gas leak, the Supervisor stated that DOGGR is responsible for  
            the pipeline that leaked. However, the pipeline "is not  
            subject to the periodic testing required of other, larger  
            capacity line, or lines that carry liquid hydrocarbons."  


            The pipeline leak in Arvin was in an environmentally sensitive  








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            area, but the pipeline was less than four inches and therefore  
            thousands of feet of pipeline have never been checked for  
            leaks. DOGGR stated the last time the pipeline was inspected  
            was August 8, 2011.  AB 1420 will require DOGGR to prioritize  
            the testing of all pipelines under DOGGR's jurisdiction in  
            sensitive places, such as residents and schools.


          3)Coordination. DOGGR first learned of the leak on March 12 from  
            the City of Arvin, which had been working with Southern  
            California Gas to determine the source of the gas. DOGGR's  
            staff met with Petro Capital Resources (PCR) that same day and  
            after further examination determined that the mapping of PCR's  
            pipelines was incorrect and it was a PCR pipeline that was  
            leaking.  On March 13, PCR shut down the gas line. However, it  
            was not until March 17 and 18 that testing revealed that there  
            was a high level of flammable gas outside of homes.  The  
            county then issued a mandatory evacuation. AB 1420 attempts to  
            require local health officers and DOGGR to work  
            collaboratively from first detection of a leak to protect and  
            provide assistance to residents.


          4)Related legislation.


          AB 1501 (Rendon) requires air districts to establish an emission  
          standard for methane from well stimulation treatment and other  
          petroleum extraction facilities. The emission standard must  
          include a permit requirement and consideration of the effect  
          production facilities have on adjacent vulnerable populations.  
          AB 1501 also requires the Air Resources Board or a local air  
          district to install monitoring stations near any approved well  
          stimulation site and other petroleum extraction facilities to  
          monitor for 12 different chemicals. This bill will also be heard  
          by this committee on April 27.


          5)Double referral.  This bill is double referred to the  








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            Environmental Safety and Toxic Materials Committee.   
          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          None on file




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092