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

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-Amended.html

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BILL NUMBER: AB 288	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 28, 2013
	AMENDED IN ASSEMBLY  APRIL 8, 2013

INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 11, 2013

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 288, as amended, Levine. Oil and gas:  well
stimulation.   hydr   aulic fracturin 
 g. 
   (1) 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 is required to supervise 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 so as to prevent, as far as possible, damage to, among other
things, underground and surface waters suitable for irrigation or
domestic purposes by the infiltration of, or the addition of,
detrimental substances.  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 also would require the supervisor to supervise the
stimulation, well completion techniques, and rework of wells, and,
with 
    With  regard to the manner in which well activities are
to be supervised to  present  prevent 
damage to underground and surface waters by the infiltration of, or
the addition of, detrimental substances, the bill would delete the
limitation to waters suitable for irrigation or domestic purposes.
 This bill would define "well stimulation" to include
hydraulic fracturing and acid stimulation, as specified, and would
require the operator of a well, at least 30 working days prior to any
well stimulation operations, to file with the supervisor or the
district deputy a written notice of intention, as specified, to
commence well stimulation. The bill would also prohibit any well
stimulation operations until written approval is given by the
supervisor or district deputy and would require the supervisor or
district deputy to notify the operator in writing of the approval or
denial of the notice within 30 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 well
stimulation has not commenced within one year of receipt of the
notice, the notice shall be deemed canceled. Because a violation of
these provisions would create a new crime, this bill would impose a
state-mandated local program. 
   (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 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 instead require the supervisor to supervise the
drilling,  stimulation, well completion techniques, rework,
 operation, maintenance, and abandonment of wells so as to
permit the owners or operators of the wells to utilize all safe
methods and practices, as specified, and would authorize the
supervisor to allow these owners and operators to utilize all methods
and practices to increase the ultimate recovery of underground
hydrocarbons if the supervisor makes certain determinations. 

   (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 supervisor or district
deputy. Existing law prohibits any drilling until either approval is
given by the supervisor or district deputy or 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. Existing law also provides that if operations have not
commenced within one year of approval of the notice, the notice is
deemed canceled.  
   This bill would delete the provision stating that the failure by
the supervisor or district deputy to provide a written response to
the notice within 10 working days is considered an approval of the
notice, and instead would require the supervisor or district deputy
to notify the operator in writing of the approval or denial of the
notice within 30 working days after the notice is received and deem
the notice canceled if operations have not commenced within one year
of approval of the notice.  
   (4) Existing law imposes various fees on operators of oil and gas
wells.  
   This bill would require the division to establish a reasonable
fee, as specified, to be paid by the owner or operator for the costs
incurred by the department for the regulation of hydraulic fracturing
operations.  
   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   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,
 stimulation, well completion techniques, rework, 
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. This shall be done in a manner 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 by the
infiltration of, or the addition of, detrimental substances.
   (b) The supervisor shall also supervise the drilling, 
stimulation, well completion techniques, rework, operation,
maintenance, and abandonment of wells so as to permit the owners or
operators of the wells to utilize all safe methods and practices. The
supervisor may allow owners or operators of the wells to utilize all
methods and practices to increase the ultimate recovery of
underground hydrocarbons if the supervisor determines that those
methods and practices are consistent with this division and used in a
safe manner.
   (c) 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. 
  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. The supervisor or district deputy shall
notify the operator of the approval or denial of the notice within 30
working days after the notice is received. If operations have not
commenced within one year of approval 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, the following
definitions apply:
   (1) "Acid stimulation" means a treatment that uses various
formulations of acids to stimulate the extraction of hydrocarbons
from carbonate or sandstone formations. This includes, but is not
limited to, fracture acid stimulation and matrix acid stimulation.
   (2) "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.
   (3) "Well stimulation" means any well intervention technique,
including, but not limited to, hydraulic fracturing and acid
stimulation, to improve the permeability of the near-wellbore
formation, thereby enhancing the productivity of 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 well stimulation operations at least 30 working
days prior to any well stimulation 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 detail all well stimulation techniques,
methods, and practices expected to be performed on the well, and
include sufficient information as to demonstrate that the use of well
stimulation will not present a threat to public health and safety.
The supervisor may require other pertinent information to supplement
the notice. Well stimulation operations shall not commence until
written approval is given by the supervisor or district deputy.
   (c) If well stimulation has not commenced within one year of
receipt of the notice, the notice shall be deemed canceled.
   (d) The supervisor shall have 30 working days to notify the
operator in writing of approval or denial of the notice. In providing
the duties to the public 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 the use of well
stimulation 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) In addition to any charges pursuant to Article 7 (commencing
with Section 3400), the department shall impose a reasonable and
appropriate fee for each notice received pursuant to subdivision (b)
to be paid by the owner or operator for the costs incurred by the
department in implementing this section.  
  SEC. 4.    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.