BILL ANALYSIS �
SB 1281
Page 1
SENATE THIRD READING
SB 1281 (Pavley)
As Amended August 22, 2014
Majority vote
SENATE VOTE :27-3
NATURAL RESOURCES 6-3 APPROPRIATIONS 10-6
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|Ayes:|Chesbro, Garcia, |Ayes:|Gatto, Bocanegra, |
| |Muratsuchi, Skinner, | |Bradford, Campos, Eggman, |
| |Stone, Williams | |Gomez, Holden, Pan, |
| | | |Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Dahle, Bigelow, Patterson |Nays:|Bigelow, Donnelly, Jones, |
| | | |Linder, Ridley-Thomas, |
| | | |Wagner |
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SUMMARY : Requires the Division of Oil, Gas and 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)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.
2)Ongoing costs of $125,000 from the Oil, Gas, and Geothermal
Administrative Fund for the management of the expanded data.
COMMENTS : According to the Central Valley Regional Water Board
(CVRWB), produced water, which accounts for about 95% of the
fluids produced during oil well production (the other 5% is
oil), was historically disposed of by discharge to dry stream
channels or unlined surface impoundments (sumps). A sump is a
surface impoundment or excavated depression used to separate
crude oil, water, and solids in oil fields.
SB 1281
Page 2
CVRWB is in the process of reviewing unlined sumps in its
jurisdiction. Many of the sumps are covered by out-of-date
waste discharge requirement (WDR) permits, and CVRWB is working
to bring these up-to-date, where needed. This bill will require
DOGGR to collect information on unlined sumps, which would help
CVRWB revise these old permits.
This bill will also require an owner of an oil or gas well to
periodically submit information to DOGGR on water used during
oil and gas field activities.
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN:
0005357