Bill Text: CA SB1281 | 2013-2014 | Regular Session | Chaptered
Bill Title: Oil and gas production: water use: reporting.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-25 - Chaptered by Secretary of State. Chapter 561, Statutes of 2014. [SB1281 Detail]
Download: California-2013-SB1281-Chaptered.html
BILL NUMBER: SB 1281 CHAPTERED
BILL TEXT
CHAPTER 561
FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2014
APPROVED BY GOVERNOR SEPTEMBER 25, 2014
PASSED THE SENATE AUGUST 28, 2014
PASSED THE ASSEMBLY AUGUST 27, 2014
AMENDED IN ASSEMBLY AUGUST 22, 2014
AMENDED IN ASSEMBLY AUGUST 20, 2014
AMENDED IN ASSEMBLY AUGUST 4, 2014
AMENDED IN ASSEMBLY JUNE 9, 2014
AMENDED IN SENATE APRIL 21, 2014
INTRODUCED BY Senator Pavley
FEBRUARY 21, 2014
An act to amend Section 3227 of, and to add Section 3226.3 to, the
Public Resources Code, relating to oil and gas.
LEGISLATIVE COUNSEL'S DIGEST
SB 1281, Pavley. Oil and gas production: water use: reporting.
Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation regulates the drilling,
operation, maintenance, stimulation, and abandonment of oil and gas
wells in the state. Existing law requires the owner of any well to
file with the State Oil and Gas Supervisor a monthly statement that
provides certain information relating to the well, including what
disposition was made of the water produced from each field. Existing
law provides that a person who fails to comply with specific laws
relating to the regulation of oil or gas operations, including
failing to furnish a report or record, is guilty of a misdemeanor.
This bill would require the statement to the supervisor to
include the source and volume of any water reported, including water
used to generate or make up the composition of any injected fluid or
gas, as provided, and would require that information to be reported
on a quarterly basis. The bill would also require the statement to
include additional information, including the treatment of water and
the use of treated or recycled water in oil and gas field activities,
as provided, and would require that information to be reported on a
quarterly basis. The bill would require the division, among other
things, to use a standardized form or format to facilitate reporting
and to use noncustom software, as feasible, to implement online
reporting by the operator of specified information. Because a
violation of the bill's reporting requirements by an owner or
operator would be a crime, the bill would impose a state-mandated
local program.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3226.3 is added to the Public Resources Code,
to read:
3226.3. The division shall annually provide to the State Water
Resources Control Board and the California regional water quality
control boards an inventory of all unlined oil and gas field sumps.
SEC. 2. Section 3227 of the Public Resources Code is amended to
read:
3227. (a) The owner of any well shall file with the supervisor,
on or before the last day of each month, for the last preceding
calendar month, a statement, in the form designated by the
supervisor, showing all of the following:
(1) The amount of oil and gas produced from each well during the
period indicated, together with the gravity of the oil, the amount of
water produced from each well, estimated in accordance with methods
approved by the supervisor, and the number of days during which fluid
was produced from each well.
(2) The number of wells drilling, producing, injecting, or idle,
that are owned or operated by the person.
(3) What disposition was made of the gas produced from each field,
including the names of persons, if any, to whom the gas was
delivered, and any other information regarding the gas and its
disposition that the supervisor may require.
(4) What disposition was made of water produced from each field
and the amount of fluid or gas injected into each well used for
enhanced recovery, underground storage of hydrocarbons, or wastewater
disposal, and any other information regarding those wells that the
supervisor may require.
(5) The source of water, and volume of any water, reported in
paragraph (4), including the water used to generate or make up the
composition of any injected fluid or gas. Water volumes shall be
reported by water source if more than one water source is used. The
volume of untreated water suitable for domestic or irrigation
purposes shall be reported. Commingled water shall be proportionally
assigned to individual wells, as appropriate.
(6) The treatment of water and the use of treated or recycled
water in oil and gas field activities, including, but not limited to,
exploration, development, and production.
(7) (A) The specific disposition of all water used in or generated
by oil and gas field activities, including water produced from each
well reported pursuant to paragraph (1). Water volumes shall be
reported by disposition method if more than one disposition method is
used. Commingled water shall be proportionally assigned to
individual wells, as appropriate.
(B) This information shall also include the temporary onsite
storage of water, as or if appropriate, and the ultimate specific
use, disposal method or method of recycling, or reuse of this water.
(b) Any operator that produces oil by the application of mining or
other unconventional techniques shall file a report with the
supervisor, on or before March 1 of each year, showing the amount of
oil produced by those techniques in the preceding calendar year.
(c) (1) Upon request and making a satisfactory showing therefor, a
longer filing period may be established by the supervisor for any
particular owner or operator.
(2) Notwithstanding subdivision (a), the owner of any well shall
file with the supervisor, on a quarterly basis, a statement
containing the information required to be reported pursuant to
paragraphs (5), (6), and (7) of subdivision (a) in the form
designated by the supervisor.
(d) The division shall use a standardized form or format to
facilitate reporting required pursuant to this section.
(e) The division shall use noncustom software, as feasible, to
implement online reporting by the operator of the information
required pursuant to paragraphs (5), (6), and (7) of subdivision (a).
This information may be reported separately from other information
required to be reported pursuant to this section.
(f) For purposes of this section, the following terms have the
following meanings:
(1) "Source of water" or "water source" means any of the
following:
(A) The well or wells, if commingled, from which the water was
produced or extracted.
(B) The water supplier, if purchased or obtained from a supplier.
(C) The point of diversion of surface water.
(2) "Specific disposition of all water" means the identification
of the ultimate specific use, disposal method or method of recycling,
or reuse of the water. This includes, but is not limited to, the
identification of any treatment or recycling method used, injection
of the water into specific injection or disposal well or wells, if
commingled, discharge of the water to surface water or sumps, and
sale or transfer of the water to a named entity.
SEC. 3. 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.
