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AGENDA REPORT ioN: !�� �:��•�� ---
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TO: Honorable City Council
FROM: Jennifer Mellon, Administrative Services Manager
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DATE: May 13, 2013 (Special CC Meeting of,0/15/13)
SUBJECT: Consider Taking a Position on SB 4: Oil and Gas: Hydraulic
Fracturing (Fracking)
BACKGROUND
Senator Fran Pavley (D) has introduced SB 4 - Oil and gas: hydraulic fracturing and has
requested support from cities. The bill in its entirety, Attachment 1, is a regulatory bill
requiring the Hydraulic Fracturing (fracking) industry to adhere to specific guidelines.
Attachment 2 is Senator Pavley's fact sheet regarding the bill.
DISCUSSION
Staff has read the bill and it is difficult to find a nexus to local government with SB 4 and
the bill does not specifically fit into the City of Moorpark Legislative Program which is
why staff is bringing the bill forward for Council consideration.
The League of California Cities currently has a watch position on SB 4 due to their
inability to link the legislation to impact on local government. Other Ventura County
Jurisdictions are also watching the legislation at this time and have not taken a position.
Currently SB 4 is set for Hearing on May 20, 2013 in the Senate Appropriations
committee; the 1st House Fiscal Committee. Committee voting on SB 4 to date has
been: Senate Nat. Resources & Water 4/9/13 (Y:6, N:2, A:1) and Senate Environmental
Quality 5/1/13 (Y:6, N:2, A:1)
FISCAL IMPACT
There is no Fiscal Impact.
STAFF RECOMMENDATION
Direct staff as deemed appropriate.
Attachment 1: SB 4 Senate Bill Amended in Senate May 7, 2013
Attachment 2: Fact Sheet: SB 4
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SB 4 Senate Bill - AMENDED Page 1 of 11
BILL NUMBER: SB 4 AMENDED
BILL TEXT ATTACHMENT 1
AMENDED IN SENATE MAY 7, 2013
AMENDED IN SENATE APRIL 24, 2013
AMENDED IN SENATE MARCH 11, 2013
INTRODUCED BY Senator Pavley
(Coauthors: Senators De Leon, Leno, and Monning)
(Coauthor: Assembly Member Stone)
DECEMBER 3, 2012
An act to amend Sections 3213, 3215, 3236.5, and 3401 of, and to
add Article 3 (commencing with Section 3150) to Chapter 1 of Division
3 of, the Public Resources Code, relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
SB 4, as amended, Pavley. Oil and gas: hydraulic fracturing.
(1) Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation, or the division,
regulates the drilling, operation, maintenance, and abandonment of
oil and gas wells in the state. The State Oil and Gas Supervisor, or
supervisor, supervises the drilling, operation, maintenance, and
abandonment of wells and the operation, maintenance, and removal or
abandonment of tanks and facilities related to oil and gas production
within an oil and gas field regarding safety and environmental
damage. Existing law requires an operator of a well, before
commencing the work of drilling the well, to obtain approval from the
supervisor or district deputy. Existing law requires the operator of
a well to keep, or cause to be kept, a careful and accurate log,
core record, and history of the drilling of the well. Within 60 days
after the date of cessation of drilling, rework, or abandonment
operations, the owner or operator is required to file with the
district deputy certain information, including the history of work
performed. Under existing law, a person who violates any prohibition
specific to the regulation of oil or gas operations is guilty of a
misdemeanor.
This bill would define, among other things, the terms hydraulic
fracturing and hydraulic fracturing fluid. The bill would require the
Secretary of the Natural Resources Agency, on or before January 1,
2015, to cause to be conducted an independent scientific study on
hydraulic fracturing treatments. The bill would require an operator
of a well to record and include all data on hydraulic fracturing
treatments, as specified. The bill would require the division,
in consultation with the Department of Toxic Substances Control, the
State Air Resources Board, the State Water Resources
Control Board, the Department of Resources Recycling and Recovery,
and any local air districts and regional water quality control boards
in areas where hydraulic fracturing treatments may occur, on
or before January 1, 2015, to adopt rules and regulations specific to
hydraulic fracturing, including governing the construction of wells
and well casings and full disclosure of the composition and
disposition of hydraulic fracturing. The bill would require an
operator to apply for a permit, as specified, with the supervisor or
district deputy, prior to performing a hydraulic fracturing treatment
of a well and would prohibit the operator from either conducting a
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new hydraulic fracturing treatment or repeating a hydraulic
fracturing treatment without a valid, approved permit. The bill would
prohibit the approval of a permit that presents an unreasonable risk
or is incomplete. The bill would require the division, within 5
business days of issuing a permit to commence hydraulic fracturing,
to provide a copy to specific boards and entities and to post the
permit on a publicly accessible portion of its Internet Web site. The
bill would require the hydraulic fracturing treatment to be
completed within one year from the date that a permit is issued. The
bill would require the division to perform random periodic spot check
investigations during hydraulic fracturing treatments, as specified.
The bill would prohibit the supervisor or district deputy, as of
January 1, 2015, from issuing a permit to commence a hydraulic
fracturing treatment, as specified, until the study is completed and
peer reviewed by independent scientific experts. The bill would
require the operator to provide a copy of the approved hydraulic
fracturing treatment permit to specified property owners at least 30
days prior to commencing a hydraulic fracturing treatment. The bill
would require the operator to provide notice to the division at least
72 hours prior to the actual start of the hydraulic fracturing
treatment in order for the division to witness the hydraulic
fracturing treatment. The bill would require the supplier, as
defined, of the hydraulic fracturing treatment to provide to the
operator, within 30 days following the conclusion of the hydraulic
fracturing, certain information regarding the hydraulic fracturing
fluid. The bill would require the operator, within 60 days of the
cessation of hydraulic fracturing treatment, to post or cause to have
posted on an Internet Web site accessible to the public specified
information on the fracturing and fluid, as specified. The bill would
provide that where the division shares jurisdiction over a well with
a federal entity, the division's rules and regulations govern the
hydraulic fracturing treatment of a well. The bill would require a
supplier claiming trade secret protection for the chemical
composition of additives used in the hydraulic treatment to disclose
the composition to the division, in conjunction with a hydraulic
fracturing treatment permit application, but would, except as
specified, prohibit those with access to the trade secret from
disclosing it. Because a violation of this bill would create a new
crime, it would impose a state-mandated local program.
(2) Under existing law, a person who violates certain statutes or
regulations relating to oil and gas well operations is subject to a
civil penalty not to exceed $25, 000 for each violation.
This bill would make persons who violate specified provisions
relating to hydraulic fracturing subject to a civil penalty of not
less than $10, 000 and not to exceed $25, 000 per day per violation.
(3) Existing law imposes an annual charge upon each person
operating or owning an interest in an oil or gas well in respect to
the production of the well which charge is payable to the Treasurer
for deposit into the Oil, Gas, and Geothermal Administrative Fund.
Existing law further requires that specific moneys from charges
levied, assessed, and collected upon the properties of every person
operating or owning an interest in the production of a well to be
used exclusively, upon appropriation, for the support and maintenance
of the department charged with the supervision of oil and gas
operations.
This bill would allow the moneys described above to be used for
all costs associated with hydraulic fracturing including scientific
studies required to evaluate the treatment, inspections, and any air
and water quality sampling, monitoring, and testing performed by
public entities.
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This bill would require the supervisor, on or before January 1,
2016, and annually thereafter, to transmit to the Legislature and
make available publicly a comprehensive report on hydraulic
fracturing in the exploration and production of oil and gas resources
in the state.
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. The Legislature finds and declares all of the
following:
(a) Hydraulic fracturing of oil and gas wells in combination with
technological advances in oil and gas well drilling are spurring oil
and gas extraction and exploration in California.
(b) Insufficient information is available to fully assess the
science of the practice of hydraulic fracturing in California
including environmental, occupational, and public health hazards and
risks.
(c) Providing transparency and accountability to the public
regarding hydraulic fracturing, associated emissions to the
environment, and the handling, processing, and disposal of hydraulic
fracturing and related wastes is of paramount concern.
SEC. 2. Article 3 (commencing with Section 3150) is added to
Chapter 1 of Division 3 of the Public Resources Code, to read:
Article 3. Hydraulic Fracturing
3150. "Additive" means a substance or combination of substances
added to a base fluid for purposes of preparing a hydraulic
fracturing fluid. An additive may, but is not required to, serve
additional purposes beyond the transmission of hydraulic pressure to
the geologic formation. An additive may be of any phase and includes
proppants.
3151. "Base fluid" means the continuous phase fluid used in the
makeup of a hydraulic fracturing fluid. The continuous phase fluid
may include, but is not limited to, water, and may be a liquid or a
hydrocarbon or nonhydrocarbon gas. A hydraulic fracturing treatment
may use more than one base fluid.
3152. "Hydraulic fracturing" means a well stimulation or well
completion treatment that involves the pressurized injection of
hydraulic fracturing fluid and proppant into an underground geologic
formation in order to fracture the formation, thereby causing or
enhancing, for the purposes of this division, the production of oil
or gas from a well.
3153. "Hydraulic fracturing fluid" means a base fluid mixed with
physical and chemical additives for the purpose of hydraulic
fracturing. A hydraulic fracturing treatment may include more than
one hydraulic fracturing fluid.
3154. "Proppants" means materials inserted or injected into the
underground geologic formation that are intended to prevent fractures
from closing.
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3155. "Supplier" means an entity performing a hydraulic
fracturing treatment or an entity supplying an additive or proppant
directly to the operator for use in a hydraulic fracturing treatment.
3156. "Surface property owner" means the owner of real property
as shown on the latest equalized assessment roll or, if more recent
information than the information contained on the assessment roll is
available, the owner of record according to the county assessor or
tax collector.
3160. (a) On or before January 1, 2015, the Secretary of the
Natural Resources Agency shall cause to be conducted an independent
scientific study on hydraulic fracturing treatments. The scientific
study shall evaluate the hazards and risks and potential hazards and
risks that hydraulic fracturing treatments pose to natural resources
and public, occupational, and environmental health and safety. The
scientific study shall do all of the following:
(1) Follow the well-established standard protocols of the
scientific profession, including, but not limited to, the use of
recognized experts, peer review, and publication.
(2) Identify areas with existing and potential conventional and
unconventional oil and gas reserves where hydraulic fracturing
treatments are likely to spur or enable oil and gas exploration and
production.
(3) Evaluate all aspects of hydraulic fracturing, including, but
not limited to, the hydraulic fracturing treatment, additive and
water transportation to and from the well site, mixing and handling
of the hydraulic fracturing fluids and additives on site, wastewater
and waste hydraulic fracturing fluid handling, treatment, and
disposal.
(4) Consider, at a minimum, atmospheric emissions, the potential
degradation of air quality, potential water and surface
contamination, induced seismicity, and the ultimate disposition,
transport, transformation, and toxicology of hydraulic fracturing
fluids, and waste hydraulic fracturing fluids in the environment.
(5) Include a hazard assessment and risk analysis addressing
occupational and environmental exposures to hydraulic fracturing
treatments and hydraulic fracturing treatment-related processes and
the corresponding impacts on public health and safety with the
participation of the Office of Environmental Health Hazard
Assessment.
(6) Clearly identify where additional information is necessary to
inform and improve the analyses.
(b) (1) On or before January 1, 2015, the division , in
consultation with the Department of Toxic Substances Control, the
State Air Resources Board, the State Water Resources Control Board,
the Department of Resources Recycling and Recovery, and
any local air districts and regional water quality control boards in
areas where hydraulic fracturing treatments may occur, shall
adopt rules and regulations specific to hydraulic fracturing. The
rules and regulations shall include, but are not limited to,
revisions, as needed, to the rules and regulations governing
construction of wells and well casings to ensure integrity of wells,
well casings, and the geologic and hydrologic isolation of the oil
and gas formation during and following hydraulic fracturing, and full
disclosure of the composition and disposition of hydraulic
fracturing fluids and waste hydraulic fracturing fluids.
(2) Full disclosure of the composition and disposition of
hydraulic fracturing fluids shall, at a minimum, include:
(A) The date of the hydraulic fracturing treatment.
(B) A complete list of the names, Chemical Abstract Service (CAS)
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numbers, and maximum concentration, in percent by mass, of each and
every chemical constituent of the hydraulic fracturing fluids used.
If a CAS number does not exist for a chemical constituent, the well
owner or operator may provide another unique identifier, if
available. Chemical information claimed as a trade secret, pursuant
to subdivision (j ) , shall be identified as such and reported as
described in subdivision (j ) .
(C) The trade name, the supplier, and a brief description of the
intended purpose of each additive contained in the hydraulic
fracturing fluid.
(D) The total volume of base fluid used during the hydraulic
fracturing treatment, and the identification of whether the base
fluid is water suitable for irrigation or domestic purposes, water
not suitable for irrigation or domestic purposes, or a fluid other
than water.
(E) The source, volume, and specific composition and disposition
of all water, including, but not limited to, all water used as base
fluid during the hydraulic fracturing treatment and recovered from
the well following the hydraulic fracturing treatment that is not
otherwise reported as produced water pursuant to Section 3227.
(F) The specific composition and disposition of all hydraulic
fracturing fluids, including waste fluids, other than water.
(G) Any radiological components or tracers injected into the well
as part of, or in order to evaluate, the hydraulic fracturing
treatment, a description of the recovery method, if any, for those
components or tracers, the recovery rate, and specific disposal
information for recovered components or tracers.
(H) The radioactivity of the recovered hydraulic fracturing
fluids.
(I) The location of the portion of the well subject to the
hydraulic fracturing treatment and the extent of the fracturing
surrounding the well induced by the treatment.
(3) The rules and regulations shall be revised to incorporate the
results of the independent scientific study conducted pursuant to
subdivision (a) .
(c) (1) The rules and regulations adopted pursuant to paragraph
(1) of subdivision (b) shall delineate the existing statutory
authority and regulatory responsibility relating to hydraulic
fracturing of the Department of Toxic Substances Control, the State
Air Resources Board, any local air districts, the State Water
Resources Control Board, the Department of Resources Recycling
and Recovery, any regional water quality control board, and
other public entities. The division shall additionally delineate how
the respective authority, responsibility, and notification and
reporting requirements associated with hydraulic fracturing
treatments and hydraulic fracturing treatment-related activities is
divided among each public entity.
(2) On or before January 1, 2015, the division shall enter into
formal agreements with the Department of Toxic Substances Control,
the State Air Resources Board, —'rrrp— local air
districts where hydraulic fracturing treatments may occur, the State
Water Resources Control Board, the Department of Resources
Recycling and Recovery, and any regional water quality control
board where hydraulic fracturing treatments may occur, clearly
delineating respective authority, responsibility, and notification
and reporting requirements associated with hydraulic fracturing
treatments and hydraulic fracturing treatment-related activities in
order to promote regulatory transparency and accountability.
(3) The agreements under paragraph (2) shall specify the
appropriate public entity responsible for air and water quality
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monitoring and the safe disposal of materials in landfills
, include trade secret handling protocols, if necessary, and provide
for ready public access to information related to hydraulic
fracturing treatments and related activities.
(4) Any party to an agreement under paragraph (2) shall revise its
regulations, if necessary, to reflect the agreement.
(d) (1) Notwithstanding any other law or regulation, prior to
performing a hydraulic fracturing treatment on a well, the operator
shall apply for a permit to perform a hydraulic fracturing treatment
with the supervisor or district deputy. The permit application shall
contain the pertinent data the supervisor requires on printed forms
supplied by the division or on other forms acceptable to the
supervisor. The information provided in the permit application shall
include, but is not limited to, the following:
(A) The well identification number and location.
(B) The time period during which the hydraulic fracturing
treatment is planned to occur.
(C) An estimate of the amount of water to be used in the treatment
and its source.
(D) A complete list of the names, Chemical Abstract Service (CAS)
numbers, and estimated concentrations, in percent by mass, of each
and every chemical constituent of the hydraulic fracturing fluids
planned to be used in the treatment. If a CAS number does not exist
for a chemical constituent, the well owner or operator may provide
another unique identifier, if available. Chemical information claimed
as a trade secret, pursuant to subdivision (j ) , shall be identified
as such and reported as described in subdivision (j ) .
(E) The planned location of the hydraulic fracturing treatment on
the well bore and the estimated length, height, and direction of the
induced fractures.
(2) (A) The supervisor or district deputy shall review the
hydraulic fracturing treatment permit application and may approve the
permit if the application is complete.
(B) A hydraulic fracturing treatment or repeat hydraulic
fracturing treatment shall not be performed on any well without a
valid permit that the supervisor or district deputy has approved.
(C) A permit describing a hydraulic fracturing treatment that
presents unreasonable risk or is incomplete shall not be approved.
(3) The hydraulic fracturing treatment shall be completed within
one year of the issuance of the permit.
(4) Within five business days of issuing a permit to perform a
hydraulic fracturing treatment, the division shall provide a copy of
the permit to the appropriate regional water quality control board or
boards and to the local planning entity where the well, including
its subsurface portion, is located. The division shall post the
permit on the publicly accessible portion of its Internet Web site.
(5) At least 30 calendar days prior to commencing a hydraulic
fracturing treatment, the operator shall provide a copy of the
approved hydraulic fracturing treatment permit to every surface
property owner or authorized agent of that owner whose property line
location is one of the following:
(A) Within a 1, 500 foot radius of the wellhead.
(B) Within 500 feet from the horizontal projection of all
subsurface portions of the designated well to the surface.
(6) (A) A property owner notified pursuant to paragraph (5) may
request the regional water quality control board to perform water
quality sampling and testing on any water well suitable for drinking
or irrigation purposes and on any surface water suitable for drinking
or irrigation purposes as follows:
(i) Baseline measurements prior to the commencement of the
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hydraulic fracturing treatment.
(ii) Followup measurements after the hydraulic fracturing
treatment on the same schedule as the pressure testing of the well
casing of the hydraulically-fractured well.
(B) The regional water quality control board may contract with an
independent third party that adheres to board-specified standards and
protocols to perform the water sampling and testing.
(7) The regional water quality control board shall retain and
archive sufficient sample collected pursuant to paragraph (6) to
permit a reasonable number of additional analyses.
(8) The operator shall provide the division with a list of the
entities and property owners notified pursuant to paragraphs (4) and
(5) .
(9) The operator shall provide notice to the division at least 72
hours prior to the actual start of the hydraulic fracturing treatment
in order for the division to witness the treatment.
(e) On and after January 1, 2015, the supervisor or district
deputy shall not issue a hydraulic fracturing treatment permit for
any well until the independent scientific study in subdivision (a) is
completed and peer reviewed by independent scientific experts.
(f) If a hydraulic fracturing treatment is performed on a well, a
supplier that performs any part of hydraulic fracturing or provides
additives directly to the operator for a hydraulic fracturing
treatment shall furnish the operator with information needed for the
operator to comply with subdivision (g) . If a supplier claims trade
secret protection pursuant to subdivision (j ) , the supplier shall
notify the operator and provide to the operator substitute
information, as described in subdivision (j ) , suitable for public
disclosure. This information shall be provided as soon as possible
but no later than 30 days following the conclusion of the hydraulic
fracturing treatment.
(g) (1) Within 60 days following cessation of a hydraulic
fracturing treatment on a well, the operator shall post or cause to
have posted to an Internet Web site designated or maintained by the
division and accessible to the public, all of the hydraulic
fracturing fluid composition and disposition information required to
be collected pursuant to rules and regulations adopted under
subdivision (b) , including well identification number and location.
(2) The division's Internet Web site shall be operational by
January 1, 2016, and the division may direct reporting to an
alternative Internet Web site developed by the Ground Water
Protection Council and the Interstate Oil and Gas Compact Commission
in the interim. The reported information shall be organized on the
division's Internet Web site in a format, such as a spreadsheet, that
allows the public to easily search and aggregate, to the extent
practicable, each type of information required to be collected
pursuant to subdivision (b) using search functions on that Internet
Web site.
(h) The operator is responsible for compliance with this section.
(i) (1) All geologic features within a distance reflecting an
appropriate safety factor of the fracture zone and having the
potential to either limit or facilitate the migration of fluids
outside of the fracture zone, shall be identified and added to the
well history. Geologic features include, but are not limited to,
seismic faults.
(2) For the purposes of this section, the "fracture zone" is
defined as the volume surrounding the well bore where fractures were
created or enhanced by the hydraulic fracturing treatment. The safety
factor shall be at least five and may vary depending upon geologic
knowledge.
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(j ) (1) The supplier may claim trade secret protection for the
chemical composition of additives pursuant to Section 1060 of the
Evidence Code, or the Uniform Trade Secrets Act (Title 5 (commencing
with Section 3426) of Part 1 of Division 4 of the Civil Code) .
(2) If a supplier believes that information regarding a chemical
constituent of a hydraulic fracturing fluid is a trade secret, the
supplier shall nevertheless disclose the information to the division
in conjunction with a hydraulic fracturing treatment permit
application, if not previously disclosed, within 30 days following
cessation of hydraulic fracturing on a well, and shall notify the
division in writing of that belief.
(3) The supplier is not required to disclose trade secret
information to the operator.
(4) This subdivision does not permit a supplier to refuse to
disclose the information required pursuant to this section to the
division.
(5) To comply with the public disclosure requirements of this
section, the supplier shall indicate where trade secret information
has been withheld and the specific name of a chemical constituent
shall be replaced with the chemical family name or similar descriptor
associated with the trade secret chemical information.
(6) Except as provided in subparagraph (B) of paragraph (8) , the
division shall protect from disclosure any trade secret designated as
such by the supplier, if that trade secret is not a public record.
(7) The supplier shall notify the division in writing within 30
days of any changes to information provided to the division to
support a trade secret claim.
(8) Upon receipt of a request for the release of information to
the public, which includes information the supplier has notified the
division is a trade secret and is not a public record, the following
procedure applies:
(A) The division shall notify the supplier of the request in
writing by certified mail, return receipt requested.
(B) The division shall release the information to the public, but
not earlier than 60 days after the date of mailing the notice of the
request for information, unless, prior to the expiration of the
60-day period, the supplier obtains an action in an appropriate court
for a declaratory judgment that the information is subject to
protection or for a preliminary injunction prohibiting disclosure of
the information to the public and provides notice to the division of
that action.
(9) (A) Except as provided in subparagraph (B) of paragraph (8) ,
trade secret information is not a public record and shall not be
disclosed to anyone except to an officer or employee of the division,
the state, local air districts, or the United States, in connection
with the official duties of that officer or employee, to a health
professional, under any law for the protection of health, or to
contractors with the division or the state and its employees if, in
the opinion of the division, disclosure is necessary and required for
the satisfactory performance of a contract, for performance of work,
or to protect health and safety.
(B) A health professional may share trade secret information with
other persons as may be professionally necessary, including, but not
limited to, the patient and other health professionals.
Confidentiality of the trade secret information shall be maintained.
The holder of the trade secret may request a confidentiality
agreement consistent with the requirements of this subdivision to
whom this information is disclosed as soon as circumstances permit.
If necessary, a procedure for timely disclosure by the division in
the event of an emergency shall be identified.
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(k) This section does not apply to routine pressure tests to
monitor the integrity of wells and well casings.
(1) A well granted confidential status pursuant to Section 3234
shall comply with this section, with the exception of the disclosure
of hydraulic fracturing fluids pursuant to subdivision (g) which
shall not be required until the confidential status of the well
ceases.
(m) The division shall perform random periodic spot check
investigations to ensure that the information provided on hydraulic
fracturing treatments is accurately reported, including that the
estimates provided prior to the commencement of the hydraulic
fracturing treatment are reasonably consistent with the well history.
(n) Where the division shares jurisdiction over a well or the
hydraulic fracturing treatment on a well with a federal entity, the
division's rules and regulations shall govern the hydraulic
fracturing treatment of the well.
SEC. 3. Section 3213 of the Public Resources Code is amended to
read:
3213. The history shall show the location and amount of
sidetracked casings, tools, or other material, the depth and quantity
of cement in cement plugs, the shots of dynamite or other
explosives, and the results of production and other tests during
drilling operations. All data on hydraulic fracturing treatments
pursuant to Section 3160 shall be recorded in the history.
SEC. 4. Section 3215 of the Public Resources Code is amended to
read:
3215. (a) Within 60 days after the date of cessation of drilling,
rework, hydraulic fracturing treatment, or abandonment operations,
or the date of suspension of operations, the operator shall file with
the district deputy, in a form approved by the supervisor, true
copies of the log, core record, and history of work performed, and,
if made, true and reproducible copies of all electrical, physical, or
chemical logs, tests, or surveys. Upon a showing of hardship, the
supervisor may extend the time within which to comply with this
section for a period not to exceed 60 additional days.
(b) The supervisor shall include information provided pursuant to
subdivision (g) of Section 3160 on existing publicly accessible maps
on the division's Internet Web site, and make the information
available such that hydraulic fracturing treatment and related
information are associated with each specific well. If data is
reported on an Internet Web site not maintained by the division
pursuant to paragraph (2) of subdivision (g) of Section 3160, the
division shall provide electronic links to that Internet Web site.
The public shall be able to search and sort the hydraulic fracturing
treatment and related information by at least the following criteria:
(1) Geographic area.
(2) Additive.
(3) Chemical constituent.
(4) Chemical Abstract Service number.
(5) Time period.
(6) Operator.
(c) Notwithstanding Section 10231.5 of the Government Code, on or
before January 1, 2016, and annually thereafter, the supervisor
shall, in compliance with Section 9795 of the Government Code,
prepare and transmit to the Legislature a comprehensive report on
hydraulic fracturing in the exploration and production of oil and gas
resources in California. The report shall include aggregated data of
all of the information required to be reported pursuant to Section
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3160 reported by the district, county, and operator. The report also
shall include relevant additional information, as necessary,
including, but not limited to, all the following:
(1) Aggregated data detailing the disposition of any produced
water from wells that have undergone hydraulic fracturing treatments.
(2) Aggregated data describing the formations where wells have
received hydraulic fracturing treatments including the range of
safety factors used and fracture zone lengths.
(3) The number of emergency responses to a spill or release
associated with a hydraulic fracturing treatment.
(4) Aggregated data detailing the number of times trade secret
information was not provided to the public, by county and by each
company, in the preceding year.
(5) Data detailing the loss of well and well casing integrity in
the preceding year for wells that have undergone hydraulic fracturing
treatment. For comparative purposes, data detailing the loss of well
and well casing integrity in the preceding year for all wells shall
also be provided. The cause of each well and well casing failure, if
known, shall also be provided.
(6) The number of spot check inspections conducted pursuant to
subdivision (m) of Section 3160, including the number of inspections
where the composition of hydraulic fracturing fluids were verified
and the results of those inspections.
(7) The number of hydraulic fracturing treatments witnessed by the
division.
(8) The number of enforcement actions associated with hydraulic
fracturing treatments, including, but not limited to, notices of
deficiency, notices of violation, civil or criminal enforcement
actions, and any penalties assessed.
(d) The report shall be made publicly available and an electronic
version shall be available on the division's Internet Web site.
SEC. 5. Section 3236.5 of the Public Resources Code is amended to
read:
3236.5. (a) A person who violates this chapter or a regulation
implementing this chapter is subject to a civil penalty not to exceed
twenty-five thousand dollars ($25, 000) for each violation. A person
who commits a violation of Article 3 (commencing with Section 3150)
is subject to a civil penalty of not less than ten thousand dollars
($10, 000) and not to exceed twenty-five thousand dollars ($25, 000)
per day per violation. An act of God and an act of vandalism beyond
the reasonable control of the operator shall not be considered a
violation. The civil penalty shall be imposed by an order of the
supervisor pursuant to Section 3225 upon a determination that a
violation has been committed by the person charged. The imposition of
a civil penalty under this section shall be in addition to any other
penalty provided by law for the violation. When establishing the
amount of the civil penalty pursuant to this section, the supervisor
shall consider, in addition to other relevant circumstances, all of
the following:
(1) The extent of harm caused by the violation.
(2) The persistence of the violation.
(3) The pervasiveness of the violation.
(4) The number of prior violations by the same violator.
(b) An order of
the supervisor imposing a civil penalty shall be reviewable pursuant
to Article 6 (commencing with Section 3350) . When the order of the
supervisor has become final and the penalty has not been paid, the
supervisor may apply to the appropriate superior court for an order
directing payment of the civil penalty. The supervisor may also seek
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Sti 4 Senate Bill - AMENDED Yage 11 of 11
from the court an order directing that production from the well or
use of the production facility that is the subject of the civil
penalty order be discontinued until the violation has been remedied
to the satisfaction of the supervisor and the civil penalty has been
paid.
(c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.
SEC. 6. 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 hydraulic fracturing treatment, may
be used by public entities, subject to appropriation by the
Legislature, for all costs associated with hydraulic fracturing
treatments including scientific studies required to evaluate the
treatment, inspections, and any air and water quality sampling,
monitoring, and testing performed by public entities.
SEC. 7. 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.
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ATTACH
NT 2
FACT SHEET:
AUTHOR: SENATOR FRAN PAVLEY
(CO-AUTHORS: SENATORS DE LEON,LENO AND MONNING&
r }
ASSEMBLYMEMBER STONE)
� ��IVIPREHENSIVE REGULATION OF FRACKING
Urn D: MAY 6,2013
THE PROBLEM regulations. In December 2012,DOGGR released a
Hydraulic fracturing or "fracking" of "discussion draft"of proposed fracking regulations,
and is again holding public workshops to receive
underground oil- and gas-bearing formations is public input.
a well stimulation treatment to create or
enhance cracks in the formation in order to While the"discussion draft"contains some positive
improve oil and gas production. Recent elements(e.g. advance public notification,
advances in the practice of fracking have made enhanced well and well-casing integrity testing
the development of previously-uneconomic oil before and after fracking,among others),overall the
and gas reservoirs financially feasible and have proposal is inadequate and fails to address the
contributed to drilling and production booms in public's concern about transparency or provide for
many areas. The extensive use of fracking is of regulatory accountability. In February 2013,
increasing public concern due to the potential Senator Pavley co-chaired a legislative
informational hearing on fracking which revealed
risks to human and environmental health, poor coordination between regulators,significant
public safety, water supply and quality, and gaps in regulation,and a complete lack of available
other factors. The development of California's data related to fracking,including waste disposal.
hydrocarbon reserves may depend upon
fracking, yet it is largely outside the current Studies and reports from other states and by the
regulatory framework. federal government indicate there are numerous
instances where fracking and fracking-related
BACKGROUND activities pose or have the potential to pose hazards
In California,the Department of Conservation's to public,occupational and environmental health
Division of Oil,Gas and Geothermal Resources and safety. New York is maintaining its fracking
(DOGGR)is the oil and gas industry regulator. moratorium until a public health study is completed
Fracking of some form has apparently been in wide- and academic efforts are underway to address
spread use in California for decades—primarily to public health impacts related to fracking in eastern
stimulate oil production. DOGGR has repeatedly states. Oil and gas wells cost millions of dollars to
stated that it has little-to-no information available drill,and can produce millions of dollars of oil and
on the practice,despite its extensive use here. gas. According to estimates by the federal
DOGGR has also acknowledged that its existing government,the regulatory compliance costs for
authority is sufficient to regulate fracking. It has fracking are comparatively nominal,particularly in
not done so to-date,despite three years of comparison to groundwater clean-up costs.
legislative approval of budgets that included
additional funding and personnel available for work THE SOLUTION
on fracking. Finally,in response to legislative SB 4 (Pavley)provides a comprehensive
pressure,in March 2012 DOGGR asked for statutory framework for fracking regulation in
voluntary disclosure of fracking operations in California. SB 4 has been endorsed by the San
California and began a series of public workshops Jose Mercury News and the Bakersfield
across the state to gather input on fracking
Californian. The San Francisco Chronicle,the
Senator Fran Pavley Fact Sheet Page 1
Contact:Katharine Moore at(916)651-4116 or katharine.moore @sen.ca.gov
18
Ventura County Star, and the San Gabriel specifically notify DOGGR 72 hours ahead
Valley Tribune have also editorialized of the scheduled job in order for DOGGR
positively about the issues addressed in the bill. to witness the procedure, if needed. (PRC
SB 4 also incorporates the majority of the §3160d)
recommendations for effective regulation of • Allow the neighbors to have baseline and
fracking in California in a recent UC Berkeley follow-up water quality testing on water
Law study. wells and surface water by the regional
water board. (PRC§3160d)
In its current form, the bill would: • Require that no fracking permits will be
issued after January 1, 2015 until the
• Require an independent scientific study on independent scientific study is completed.
fracking addressing occupational,public (PRC§3160e)
and environmental health and safety be • Require that DOGGR develop and maintain
conducted by January 1, 2015. The study its own web-site for fracking information
will address induced seismicity associated by January 1, 2016, although Fracfocus.org
with fracking. (Public Resources Code(PRC) could be used in the interim. (PRC§3160p)
§3160a) Provide a procedure for trade secret
• Require DOGGR to adopt fracking protections to be challenged and for health
regulations by January 1, 2015 that include professionals and other regulators to obtain
full disclosure of the composition and trade secret information, if needed. (PRC
disposition of hydraulic fracturing fluids §3160b,j)
with trade secret protection for chemical Keep intact existing exploratory well
formulas extended to industry. (PRC§3160b) confidentiality protections. (PRC§31601)
• The name and quantity of each chemical • Require DOGGR to perform spot checks to
species will be publicly-available. For ensure fracking data provided are accurate.
valid trade secret claims, the chemical (PRC§3160m)
family name will be substituted for the • Require DOGGR to annually report to the
specific name. (PRC§3160j) Legislature on fracking. Specific data
reporting requirements will facilitate public
• Require that DOGGR enter into formal dissemination and ease public concerns.
agreements with specified regulators to (PRC§3215)
ensure regulatory accountability and public . Increase the civil fine provision to at least
transparency for fracking operations $10,000 and up to $25,000 per day per
including disposal by January 1, 2015. (PRC violation. (PRC§3236.5)
§3160c) & Amend the existing oil and gas production
• Integrate public reporting and disclosure of fee that supports DOGGR to specifically
fracking into existing regulatory processes. include fracking-related activities. (PRC
(PRC§3160c,§3213,§3215) §3401)
• Require that well operators obtain a permit • Incorporate additional clarifying and
for fracking. The permit application would technical provisions to promote regulatory
include estimates of the amount of water accountability and public transparency.
and the composition of the fracking fluids
planned to be used. (PRC§3160d) LEGISLATIVE HISTORY
• Require the well operator to provide at least
30 days advance notice to the public, • Passed Senate Natural Resources and Water
DOGGR and the regional water quality Committee (6—2)
control board of the intent to frack a well. • Passed Senate Environmental Quality
The well owner would also have to Committee (6—2)
Senator Fran Pavley Fact Sheet Page 2
Contact:Katharine Moore at(916)651-4116 or katharine.moore @sen.ca.gov
19
SUPPORT
California Coastal Protection Network
Councilmember Brian Brennan, City of
Ventura
Councilmember Carmen Ramirez, City of
Oxnard
Environmental Working Group
Natural Resources Defense Council
Environmental Defense Center
Mayor Lou LaMonte, City of Malibu
Ventura County Board of Supervisors
Santa Cruz County Board of Supervisors
San Fernando Valley Young Democrats
The League of Women Voters
Los Angeles County Board of Supervisors
Los Angeles Community College District
California Association of Professional
Scientists
Paw PAC
South Coast Air Quality Management District
(w/amendments)
Sierra Club California(if amended)
Clean Water Action(if amended)
Earthworks(if amended)
OPPOSITION
California Chamber of Commerce
California Independent Petroleum Association
American Chemistry Council
California Manufacturers and Technology
Association
California Business Properties Association
Citizens Coalition for a Safe Community
Western States Petroleum Association
Physicians for Social Responsibility—Los
Angeles (unless amended)
Senator Fran Pavley Fact Sheet Page 3
Contact: Katharine Moore at(916)651-4116 or katharine.moore @sen.ca.gov
20