Bill Text: CA AB288 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California Coastal Commission: meeting notices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-30 - Chaptered by Secretary of State - Chapter 866, Statutes of 2014. [AB288 Detail]

Download: California-2013-AB288-Introduced.html

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BILL NUMBER: AB 288	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 11, 2013

   An act to amend Sections 3106 and 3203 of, and to add Section
3203.5 to, the Public Resources Code, relating to oil and gas.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 288, as introduced, Levine. Oil and gas: hydraulic fracturing.
   (1) Under existing law, the Division of Oil, Gas, and Geothermal
Resources (DOGGR) 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 (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 possible damage to life, health, property,
and natural resources; damage to underground oil and gas deposits
from infiltrating water and other causes; loss of oil, gas, or
reservoir energy, and damage to underground and surface waters
suitable for irrigation or domestic purposes by the infiltration of,
or the addition of, detrimental substances.
   This bill would define "hydraulic fracturing" and require the
operator of a well, at least 30 days prior to any hydraulic
fracturing operations, to file with the supervisor or the district
deputy a written notice of intention, as specified, to commence
hydraulic fracturing. The bill would also prohibit any hydraulic
fracturing operations until written approval is given by the
supervisor or district deputy and would require the supervisor or
district deputy to notify the operator of the approval or denial of
the notice within 10 working days after the notice is submitted. The
bill would require the supervisor, upon approval of the notice, to
immediately notify the appropriate regional water quality control
board. The bill would provide that if hydraulic fracturing has not
commenced within one year of receipt of the notice, that the notice
shall be deemed canceled.
   (2) Under existing law, the supervisor is required to supervise
the drilling, operation, maintenance, and abandonment of wells so as
to permit the owners or operators of these wells to utilize all
methods and practices known to the oil industry for the purpose of
increasing the recovery of underground hydrocarbons. Existing law
provides that the grant in an oil and gas lease or contract to a
lessee or operator of the right or power to explore for and remove
all hydrocarbons from any lands in the state, absent a contrary
provision, is deemed to allow the lessee or contractor, or the lessee'
s or contractor's successors or assigns, to do what a prudent
operator using reasonable diligence would do, having in mind the best
interests of the lessor, lessee, and the state in producing and
removing hydrocarbons, including, but not limited to, the injection
of air, gas, water, or other fluids into the productive strata, the
application of pressure heat or other means for the reduction of
viscosity of the hydrocarbons, the supplying of additional motive
force, or the creating of enlarged or new channels for the
underground movement of hydrocarbons into production wells, when
these methods or processes employed have been approved by the
supervisor. Existing law also provides that there is no legal duty
upon the lessee or contractor, or the lessee's or contractor's
successors or assigns, to conduct these operations.
   This bill would repeal these provisions.
   (3) Existing law requires the operator, before commencing the work
of drilling an oil and gas well, to file a written notice of
intention to commence drilling with the State Oil and Gas Supervisor
or district deputy. Existing law prohibits any drilling until
approval is given by the supervisor or district deputy and provides
that the notice is deemed approved if the supervisor or the district
deputy fails to give a written response to the notice within 10
working days from the date of receipt.
   This bill would delete the provision stating that the failure to
provide a written response to the notice within 10 working days is
considered an approval of the notice, and instead require the
supervisor or district deputy to notify the operator in writing of
the approval or denial of the notice within 10 working days after the
notice is received.
   (4) Existing law imposes various fees on operators of oil and gas
wells.
   This bill would authorize DOGGR to establish a reasonable fee to
be paid by the owner or operator for the costs incurred by the
department for the regulation of hydraulic fracturing operations.
   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.  Section 3106 of the Public Resources Code is amended to
read:
   3106.  (a) The supervisor shall so supervise the drilling,
operation, maintenance, and abandonment of wells and the operation,
maintenance, and removal or abandonment of tanks and facilities
attendant to oil and gas production, including pipelines not subject
to regulation pursuant to Chapter 5.5 (commencing with Section 51010)
of Part 1 of Division 1 of Title 5 of the Government Code that are
within an oil and gas field, so as to prevent, as far as possible,
damage to life, health, property, and natural resources; damage to
underground oil and gas deposits from infiltrating water and other
causes; loss of oil, gas, or reservoir energy, and damage to
underground and surface waters suitable for irrigation or domestic
purposes by the infiltration of, or the addition of, detrimental
substances. 
   (b) The supervisor shall also supervise the drilling, operation,
maintenance, and abandonment of wells so as to permit the owners or
operators of the wells to utilize all methods and practices known to
the oil industry for the purpose of increasing the ultimate recovery
of underground hydrocarbons and which, in the opinion of the
supervisor, are suitable for this purpose in each proposed case. To
further the elimination of waste by increasing the recovery of
underground hydrocarbons, it is hereby declared as a policy of this
state that the grant in an oil and gas lease or contract to a lessee
or operator of the right or power, in substance, to explore for and
remove all hydrocarbons from any lands in the state, in the absence
of an express provision to the contrary contained in the lease or
contract, is deemed to allow the lessee or contractor, or the lessee'
s or contractor's successors or assigns, to do what a prudent
operator using reasonable diligence would do, having in mind the best
interests of the lessor, lessee, and the state in producing and
removing hydrocarbons, including, but not limited to, the injection
of air, gas, water, or other fluids into the productive strata, the
application of pressure heat or other means for the reduction of
viscosity of the hydrocarbons, the supplying of additional motive
force, or the creating of enlarged or new channels for the
underground movement of hydrocarbons into production wells, when
these methods or processes employed have been approved by the
supervisor, except that nothing contained in this section imposes a
legal duty upon the lessee or contractor, or the lessee's or
contractor's successors or assigns, to conduct these operations.
 
   (c) 
    (b)  The supervisor may require an operator to implement
a monitoring program, designed to detect releases to the soil and
water, including both groundwater and surface water, for aboveground
oil production tanks and facilities. 
   (d) 
    (c)  To best meet oil and gas needs in this state, the
supervisor shall administer this division so as to encourage the wise
development of oil and gas resources.
  SEC. 2.  Section 3203 of the Public Resources Code is amended to
read:
   3203.  (a) The operator of any well, before commencing the work of
drilling the well, shall file with the supervisor or the district
deputy a written notice of intention to commence drilling. Drilling
shall not commence until  written  approval is given by the
supervisor or the district deputy.  If the supervisor or the
district deputy fails to give the operator written response to the
notice within 10 working days from the date of receipt, that failure
shall be considered as an approval of the notice and the notice, for
the purposes and intents of this chapter, shall be deemed a written
report of the supervisor.   The supervisor or district
deputy shall notify the operator of the approval or denial of the
notice within 10 working days after the notice is received.  If
operations have not commenced within one year of receipt of the
notice, the notice shall be deemed canceled. The notice 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
notice.
   (b) After the completion of any well, this section also applies as
far as may be, to the deepening or redrilling of the well, any
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 any well, and the number or designation specified
for any well in a notice filed as required by this section, shall not
be changed without first obtaining a written consent of the
supervisor.
   (c) If an operator has failed 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 has failed 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. 3.  Section 3203.5 is added to the Public Resources Code, to
read:
   3203.5.  (a) For purposes of this division, "hydraulic fracturing"
means a treatment used in stimulating a well that involves the
pressurized injection of hydraulic fracturing fluid and proppants
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.
   (b) The operator of a well approved under Section 3203, shall file
with the supervisor or the district deputy a written notice of
intention to commence hydraulic fracturing at least 30 days prior to
any hydraulic fracturing operations. The notice shall contain the
pertinent data the supervisor requires on printed forms supplied by
the division or on other forms acceptable to the supervisor, and
shall include sufficient information as to demonstrate that use of
hydraulic fracturing will not present a threat to public health and
safety. The supervisor may require other pertinent information to
supplement the notice. Hydraulic fracturing shall not commence until
written approval is given by the supervisor or district deputy.
   (c) If hydraulic fracturing has not commenced within one year of
receipt of the notice, the notice shall be deemed canceled.
   (d) The supervisor shall have 10 days to notify the operator of
approval or denial of the notice. In providing the duties as required
under subdivision (a) of Section 3106, the supervisor shall approve
a notice under this section only if the supervisor finds that the
operator has provided sufficient information as to demonstrate that
use of hydraulic fracturing will not present a threat to public
health and safety.
   (e) Upon approval of a notice under this section, the supervisor
shall immediately notify the appropriate regional water quality
control board.
   (f) The department may establish, by regulation, a reasonable and
appropriate fee to be paid by the owner or operator for the costs
incurred by the department in implementing this section.