Bill Text: CA SB1281 | 2013-2014 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: SB 1281	AMENDED
	BILL TEXT

	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
  Sections 3226.3,  3226.5  , and 3226.7 
to, the Public Resources Code, relating to oil and gas.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1281, as amended, 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 declare that it is the policy of the state that
oil and gas field exploration, development, and production shall
 use   use,  or treat and  use
  use,  water produced though oil field activities
and  other  recycled water to the extent feasible.  The
bill would require, in the event, and duration, of a declared state
of emergency because of a drought, new oil and gas field,
exploration, development, and production, as defined, to use rec
  ycled water and would prohibit the use of water from an
unmanaged groundwater basin.  The bill would require the monthly
statement to the supervisor to include the source and amount
  volume  of  fluid or gas injected into
each well, as provided, and the source and amount of  
any  water  reported, including water  used to generate
 or make up the composition of any  injected fluid or gas
 , as provided  . 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.  The bill would require the division,
among other things, to use a standardized form or format to
facilitate reporting.  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.
   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  both
  all  of the following:
   (a) Existing state policy promotes the use of recycled water in
industry where feasible.
   (b) Water of previously unsuitable quality may now be used or
treated and used in some oil and gas industry processes due to
technological advancement. 
   (c) Information facilitating an analysis of the water used or
produced by each well would improve understanding of water use in the
state's oil and gas fields.  
   (d) In the event of extreme water scarcity, untreated high-quality
water should not be used for new oil and gas exploration,
development, or production. According to the Department of Water
Resources, groundwater resources throughout the state are at
historically low levels. 
   SEC. 2.    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.   SEC. 3.   Section 3226.5 is
added to the Public Resources Code, to read:
   3226.5.  It is the policy of the state that oil and gas field
exploration, development, and production shall  use 
 use,  or treat and  use   use, 
water produced through oil field activities and  other 
recycled water to the extent feasible. The use and reuse of water
initially unsuitable for drinking or irrigation purposes is
encouraged.
   SEC. 4.    Section 3226.7 is added to the  
Public Resources Code   , to read:  
   3226.7.  (a) In the event, and for the duration, of a declared
state of emergency, pursuant to Article 13 (commencing with Section
8625) of Chapter 7 of Division 1 of Title 2 of the Government Code,
because of a drought, new oil and gas field exploration, development,
and production shall use recycled water, as defined in subdivision
(n) of Section 13050 of the Water Code.
   (b) New oil and gas field exploration, development, and production
shall not use water obtained from a groundwater basin that is not
managed in accordance with Division 6 (commencing with Section 10000)
of the Water Code.
   (c) For purposes of this section, "new oil and gas field
exploration, development, and production" means any oil field
activity that requires the division to issue a new permit or notice
of intention pursuant Section 3203. 
   SEC. 3.   SEC. 5.   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: 
   (a) 
    (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. 
   (b) 
    (2)  The number of wells drilling, producing, injecting,
or idle, that are owned or operated by the person. 
   (c) 
    (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. 
   (d) 
    (4)  The  source and the  amount of
fluid or gas injected into each well used for enhanced recovery,
underground storage of hydrocarbons, or waste water disposal,
 including the source and the amount of water used to
generate injected fluid or gas,  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 drinking or irrigation
purposes shall be reported.  
   (e) 
    (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. 
   (f) 
    (7)  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)  .

    Any 
    (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. 
    Upon 
    (c)     Upon  request and making a
satisfactory showing therefor, a longer filing period may be
established by the supervisor for any particular owner or operator.

    (d) The division shall use a standardized form or format to
facilitate reporting required pursuant to this section.  
   (e) 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 disposal method or method of recycling or
re-use 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. Temporary on-site
storage of water shall not constitute a specific disposition of
water.  
   (3) "Recycled water" has the same meaning as that term is defined
in subdivision (n) of Section 13050 of the Water Code. 
   SEC. 4.   SEC. 6.   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.