BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1420


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1420 (Salas)


          As Amended  September 4, 2015


          Majority vote


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          |ASSEMBLY:  | 74-0 | (May 22,      |SENATE: | 40-0 |(September 9,    |
          |           |      |2015)          |        |      |2015)            |
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          Original Committee Reference:  NAT. RES.




          SUMMARY:  Requires a local health officer to take specified  
          actions when there is a leak in a gas pipeline and requires the  
          Division of Oil, Gas and Geothermal Resources (DOGGR) to review  
          its gas pipeline regulations and update them, if needed.


          The Senate amendments:


          1)Require the responsibility party to be liable for the costs  
            incurred by the local health officer or his or her designee  
            implementing the requirements of this bill.


          2)Specify that providing resident assistance and reimbursement  
            for local health officer expenses does not relieve a  








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            responsible party from liability for damages.


          3)Rather than requiring DOGGR to prioritize the identification  
            and testing of all pipelines under its jurisdiction that are  
            near sensitive areas, such as residential areas and schools,  
            the amendments instead require DOGGR to review and evaluate,  
            and update as appropriate, its existing regulations regarding  
            all active gas pipelines that are four inches or less in  
            diameter, located in sensitive areas, and that are 10 years  
            old or older.


          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.


          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.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, ongoing costs of less than $1 million to the Oil,  
          Gas, and Geothermal Administrative Fund (special) for personnel  
          and equipment necessary to identify all pipelines in sensitive  
          areas and to perform required mechanical integrity tests as  
          required.


          COMMENTS:  According to DOGGR's regulations governing pipeline  








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          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  
          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.  This bill will require DOGGR to review its regulations  
          to ensure the integrity and operation of all active gas  
          pipelines that are four inches or less in diameter, located in  
          sensitive areas, and that are 10 years old or older.


          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.  This bill attempts to require local  
          health officers and DOGGR to work collaboratively from first  
          detection of a leak to protect and provide assistance to  
          residents.








                                                                    AB 1420


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          Analysis Prepared by:                                             
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0002347