BILL ANALYSIS �
AB 591
Page 1
ASSEMBLY THIRD READING
AB 591 (Wieckowski)
As Amended May 27, 2011
Majority vote
NATURAL RESOURCES 6-3 APPROPRIATIONS 10-5
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|Ayes:|Chesbro, Brownley, |Ayes:|Fuentes, Blumenfield, |
| |Dickinson, Huffman, | |Bradford, Campos, Davis, |
| |Monning, Skinner | |Gatto, Hall, Hill, Lara, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Grove, Halderman |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Requires an owner or operator of an oil and gas well
in the state to provide information to the Division of Oil, Gas,
and Geothermal Resources (DOGGR) regarding its hydraulic
fracturing operations. Requires DOGGR to make this information
available on its Web site. Specifically, this bill:
1)Requires an owner or operator of an oil and gas well, as part
of its duty to keep a careful and accurate history of the
drilling of the well, to maintain the following additional
information:
a) The amount and source of water used in the exploration
of or production from the well;
b) Any radiological components or tracers injected into the
well and a description of the recovery method, the recovery
rate, and the disposal method for recovered components or
tracers; and,
c) If hydraulic fracturing was used at the well, a complete
list of chemicals used.
2)Requires the owner or operator of a well to provide DOGGR with
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the complete list of hydraulic fracturing chemicals used at
the well. Requires DOGGR to add this information to existing
maps on its Web site and make the information available to the
public in such a way that the list of chemicals is associated
with each specific well where those chemicals were injected.
EXISTING LAW requires:
1)DOGGR to supervise activities related to oil and gas wells,
tanks, and facilities so as to prevent damage to life, health,
property, natural resources, and underground and surface
waters suitable for irrigation or domestic purposes.
2)The owner or operator of any oil and gas well to keep, or
cause to be kept, a careful and accurate log, core record, and
history of the drilling of the well.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Minor one-time costs in the tens of thousands of dollars to
one hundred thousand dollars to DOGGR to modify its Web site
to accommodate required information (Special fund).
2)Minor, ongoing annual costs, no more than tens of thousands of
dollars, to DOGGR to include required information on its Web
site and to make it available to the public (Special fund).
COMMENTS : According to the Western States Petroleum Association
(WSPA), hydraulic fracturing is one energy production technique
used to obtain oil and natural gas in areas where those energy
supplies are trapped in rock and sand formation. Once an oil or
natural gas well is drilled and properly lined with steel
casing, fluids are pumped down to an isolated portion of the
well at pressures high enough to cause cracks in shale
formations below the earth's surface. These cracks or fractures
allow oil and natural gas to flow more freely. Often, a
propping agent such as sand is pumped into the well to keep
fractures open.
In many instances, the fluids used in hydraulic fracturing are
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water-based. There are some formations, however, that are not
fractured effectively by water-based fluids because clay or
other substances in the rock absorb water. For these
formations, complex mixtures with a multitude of chemical
additives may be used to thicken or thin the fluids, improve the
flow of the fluid, or even kill bacteria that can reduce
fracturing performance. According to a congressional report,
between 2005 and 2009, oil and gas companies throughout the
United States used hydraulic fracturing products containing 29
chemicals that are: 1) known or possible human carcinogens; 2)
regulated under the Safe Drinking Water Act for their risk to
human health; or, 3) listed as hazardous air pollutants under
the Clean Air Act.
Recently, national attention has been brought to the harm that
hydraulic fracturing has caused to public health and the
environment in parts of the country. For example, in
Pennsylvania, there was a report of tens of thousands of gallons
of toxic fracturing fluid that leaked onto residential property,
killing trees and contaminating water. The U.S. Environmental
Protection Agency has reported that two water wells in Texas
were contaminated by gas from hydraulic fracturing. The
investigative news Web site ProPublica, which Congress relies on
for information on this subject matter, found over 1,000 reports
of water contamination near drilling sites.
In response to the controversy surrounding hydraulic fracturing,
several states, local governments, and even Quebec, Canada have
imposed moratoriums on hydraulic fracturing or required
disclosure of fracturing fluid information. Many other states
have introduced hydraulic fracturing related legislation this
year.
According to the oil and gas industry, hydraulic fracturing has
been used in California for decades. Reports from various
sources suggest that hydraulic fracturing in California will
likely increase significantly in the upcoming years-the Monterey
shale, which stretches from Northern to Southern California, is
considered the largest onshore shale opportunity in the United
States.
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DOGGR, although having statutory authority to regulate hydraulic
fracturing, has not yet developed regulations to address the
activity. Moreover, DOGGR does not have information that
indicates where and how often hydraulic fracturing occurs within
the state, nor does it have data on the safety, efficacy, and
necessity of hydraulic fracturing as currently employed in
California.
The bill requires an oil and gas company to provide DOGGR with
specific information related to hydraulic fracturing. This
information will help DOGGR understand the extent to which
hydraulic fracturing is used in California and to identify any
health, safety, and environmental issues that have gone
undetected. This information could also be used in the future
to develop legislation and/or regulations to reasonably and
effectively regulate hydraulic fracturing.
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN:
0001144