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Italicized text includes proposed additions to law or the previous version of the bill.
Struck text includes proposed deletions to law or the previous version of the bill.

(pdf version)
AMENDED IN ASSEMBLY MAY 27, 2011
AMENDED IN ASSEMBLY MAY 10, 2011
AMENDED IN ASSEMBLY APRIL 12, 2011

INTRODUCED BY Assembly Member Wieckowski
(Principal coauthor: Assembly Member Dickinson)
( Coauthor: Assembly Member
Allen
)

FEBRUARY 16, 2011

An act to amend Sections 3107 and 3203
3210, 3213, and 3215
of the Public Resources Code, relating to
oil and gas production.



LEGISLATIVE COUNSEL'S DIGEST


AB 591, as amended, Wieckowski. Oil and gas production: hydraulic
fracturing.
(1) Under

Under existing law, the Division of Oil, Gas, and
Geothermal Resources in the Department of Conservation regulates the
drilling, operation, maintenance, and abandonment of oil and gas
wells in the state. The State Oil and Gas 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 the district deputy to prepare maps regarding oil
and gas production in each district and to collect information
regarding the presence of oil and gas and the location and extent of
strata bearing water or surface water suitable for irrigation or
domestic purposes
the owner or 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
.

This bill would instead require the district deputy to collect
information on the presence of oil and gas deposits and the location
and extent of strata bearing water or surface water suitable for
irrigation, domestic, industrial, or wildlife purposes that might be
affected. The bill would also require the maps prepared by the
district deputy to be posted, as specified, on the division's
Internet Web site.

(2) Existing law requires the operator of a well, before
commencing the work of drilling the well, to file with the supervisor
or the district deputy a written notice of intention to commence
drilling, and prohibits the commencement of drilling until approval
is given by the supervisor or the district deputy. The existing Safe
Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65)
prohibits any person, in the course of doing business, from knowingly
and intentionally exposing any individual to a chemical known to the
state to cause cancer or reproductive toxicity without giving a
specified warning, or from discharging or releasing such a chemical
into any source of drinking water, except as specified.


This bill would revise that procedure to instead require the
operator to file an application before commencing drilling and would
require additional information to be included in the application,
including information regarding the chemicals, if any, that the
operator intends to bring onsite for purposes of injecting into the
well. The bill would also require the operator, after drilling has
commenced, to submit certain information to the supervisor, including
a list of chemicals used, and would require the supervisor to post
the information regarding the type of process and listed chemicals on
the division's Internet Web site. The bill would require the
operator to notify every property owner and occupant of property
within one mile of a well if the listed chemicals includes a chemical
known to cause cancer or reproductive toxicity pursuant to the list
adopted in accordance with the Safe Drinking Water and Toxic
Enforcement Act of 1986.

This bill would require a person carrying out hydraulic fracturing
on behalf of an owner or operator at a well to provide to the owner
or operator a list of the chemical constituents used in the hydraulic
fracturing fluid. The bill would additionally require the history of
the drilling of the well to include certain information regarding
the amount and source of water used in the exploration or production
from the well and the radiological components or tracers injected
into the well. The bill would also require the history to include, if
hydraulic fracturing was used at the well, a complete list of the
chemicals used in the hydraulic fracturing.

The bill would require the owner or operator to submit to the
supervisor information regarding the chemicals used in hydraulic
fracturing, who would be required to add this information to existing
Internet maps on the division's Internet Web site and to make this
information available to the public.

Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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 is a technique used in the production of
oil and gas that involves the pressurized injection of water and a
mix of chemical chemicals into an
underground geologic formation in order to fracture the formation,
thereby causing or enhancing the production of oil or gas from a
well.
(b) Hydraulic fracturing has been used in California for several
decades to extract oil and gas and is likely to be used more
extensively as the industry seeks to develop additional oil
and gas
oil-and-gas bearing formations.
(c) The Division of Oil, Gas, and Geothermal Resources in the
Department of Conservation, which has the obligation to protect
public health and the resources of the state, including groundwater
resources, has the authority to regulate all oil and natural gas
drilling in the state, but currently does not require the disclosure
of pertinent information regarding hydraulic fracturing or ascertain
what specific types of production and exploration are taking place at
permitted wells.
(d) Given California's geologic, seismic complexity, and finite
and significantly compromised water resources, it is important to
collect basic information about natural resource production
processes. The state and the public should know when and where
hydraulic fracturing is occurring and what chemicals are being used
in the process.
SEC. 2.
Section 3107 of the Public Resources
Code is amended to read:
3107. (a) A district deputy in each district, designated by the
supervisor, shall collect all necessary information regarding the oil
and gas wells in the district, with a view to determining the
presence of oil and gas deposits and the location and extent of
strata bearing water or surface water suitable for irrigation,
domestic, industrial, or wildlife purposes that might be affected.
(b) The district deputy shall prepare maps and other accessories
necessary to determine the presence of oil and gas deposits and the
location and extent of strata bearing water or surface water suitable
for irrigation, domestic, industrial, or wildlife purposes. The maps
prepared by the district deputy pursuant to this section shall be
posted on the division's Internet Web site, as a modification to any
existing maps, and shall include the information obtained pursuant to
subdivision (b) of Section 3203.
(c) This work shall be done with the view to advising an operator
as to the best means of protecting the oil and gas deposits and the
water-bearing strata and surface water, and with a view to aiding the
supervisor in ordering tests or repair work at wells. All data shall
be kept on file in the office of the district deputy of the
respective district.

SEC. 3.
Section 3203 of the Public Resources
Code is amended to read:
3203. (a) The operator of a well, before commencing the work of
drilling the well, shall file with the supervisor or the district
deputy an application to commence drilling. Drilling shall not
commence until approval of the application is given by the supervisor
or the district deputy. If the supervisor or the district deputy
fails to give the operator a written response to the application
within 10 working days from the date of receipt, that failure shall
be considered as an approval of the application, and the application,
for the purposes and intents of this chapter, shall be deemed a
written report of the supervisor. If operations have not commenced
within one year of receipt of the application, the application shall
be deemed canceled. The 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 supervisor may
require other pertinent information to supplement the application.
(b) (1) On and after January 1, 2012, in addition to the pertinent
information required to be collected pursuant to subdivision (a),
the application shall include all of the following information:
(A) The type of exploration and production techniques that the
operator will use at the well or wells.
(B) A complete list of the chemicals, if any, that the operator
intends to bring onsite for purposes of injecting into the well for
hydraulic fracturing or other production enhancement methods in the
exploration or production process or processes.
(C) The location of any known active seismic faults within five
miles of the well.
(2) After drilling has commenced, the operator shall submit to the
supervisor all of the following information:
(A) A list of the chemicals that were injected into the well. This
list shall include all of the following information:
(i) The name of the chemical.
(ii) The purpose of the chemical in the production or exploration
process.
(iii) The Chemical Abstract Service numbers for the chemical.
(iv) The estimated total amount of the chemical used.
(v) The actual rate or concentration of each chemical used,
expressed as pounds per thousand gallons or gallons per thousand
gallons and expressed as a percentage by volume of the total
hydraulic fracturing fluid or other injected fluid used.
(B) The amount and source of water used in the exploration or
production from the well.
(C) Any radiological components or tracers injected into the well
and a description of the recovery method, if any, for those
components or tracers, the recovery rate, and disposal method for
recovered components or tracers.
(3) The supervisor shall post the type of process and list of
chemicals obtained pursuant to this subdivision on the division's
Internet Web site in such a way that it is accessible to the public.
(4) If any of the information required pursuant to this
subdivision changes over the course of the exploration and production
process, the operator shall immediately notify the supervisor.
(5) Notwithstanding any other law, if a chemical listed pursuant
to this subdivision is also listed as a chemical known to cause
cancer or reproductive toxicity pursuant to the list adopted in
accordance with Section 25249.8 of the Health and Safety Code, the
operator shall notify every property owner and occupant of property
within one mile of the well that this chemical is to be, or has been,
injected into the ground.
(c) After the completion of any well, this section also applies as
far as may be, to the deepening or redrilling of the well, an
operation involving the plugging of the well, or any operations
permanently altering in any manner the casing of the well. The number
or designation of a well, and the number or designation specified
for a well in an application filed as required by this section, shall
not be changed without first obtaining a written consent of the
supervisor.
(d) If an operator fails to comply with an order of the
supervisor, the supervisor may deny approval of proposed well
operations until the operator brings its existing well operations
into compliance with the order. If an operator fails to pay a civil
penalty, remedy a violation that it is required to remedy to the
satisfaction of the supervisor pursuant to an order issued under
Section 3236.5, or to pay any charges assessed under Article 7
(commencing with Section 3400), the supervisor may deny approval to
the operator's proposed well operations until the operator pays the
civil penalty, remedies the violation to the satisfaction of the
supervisor, or pays the charges assessed under Article 7 (commencing
with Section 3400).

SEC. 2. Section 3210 of the Public
Resources Code
is amended to read:
3210. (a) The owner or operator of any well
shall keep, or cause to be kept, a careful and accurate log, core
record, and history of the drilling of the well.
(b) A person carrying out hydraulic fracturing on behalf of an
owner or operator at a well shall provide to that owner or operator a
complete list of the chemical constituents used in the hydraulic
fracturing fluid and each chemical's associated chemical abstract
service (CAS) numbers, for the purposes of accurately and completely
maintaining the well's log, history, and core record, and ensuring
compliance with the disclosure requirements of this article.

SEC. 3. Section 3213 of the Public
Resources Code
is amended to read:
3213. (a) The history of the drilling
of the well
shall show the all of the
following:

(1) 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.
(2) The amount and source of water used in the exploration of or
production from the well, which shall be updated annually.


(3) Any radiological components or tracers injected into the well
and a description of the recovery method, if any, for those
components or tracers, the recovery rate, and the disposal method for
recovered components or tracers.

(b) If hydraulic fracturing was used at the well, the history of
the drilling of the well shall also include a complete list of the
chemicals used in the hydraulic fracturing. This list shall include
the names of all of the chemicals used and their chemical abstract
service (CAS) numbers.

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, or abandonment operations, or the date
of suspension of operations, the owner or operator shall file
with the district deputy, in the 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 in
such form as the supervisor may approve shall be filed with the
district deputy
. Upon a showing of hardship, the
supervisor may extend the time within which to comply with
the provisions of
this section for a period not to exceed
60 additional days.
(b) The owner or operator shall also submit to the supervisor
information provided in the history pursuant to paragraph (1) of
subdivision (b) of Section 3213 and the supervisor shall add this
information to existing Internet maps on the division's Internet 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.