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  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  Sections
3226.3, 3226.5, and 3226.7   Section 3226.3  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, or treat and use, water produced through 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 recycled water. The
bill would prohibit the use of water from a groundwater basin or
subbasin designated as high priority if the use would compromise
existing use for domestic or irrigation purposes. The 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.
   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
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 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. 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, or treat and use,
water produced through oil field activities and other recycled water
to the extent feasible. The use and reuse of water initially
unsuitable for domestic 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. Recycled water includes water
that is produced from a well used to produce oil, gas, or both, and
that has been treated by separating the water from the oil, gas, or
both.
   (b) New oil and gas field exploration, development, and production
shall not use water obtained from a groundwater basin or subbasin
identified as being of high priority pursuant to Sections 10933 and
12924 of the Water Code if this use would compromise existing use for
domestic or irrigation purposes pursuant to state policy established
in Section 106 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's approval of a new permit or
notice of intention pursuant to Section 3203, with the exception of
any oil field activity in fields and pools that produce revenue,
money, and remittances payable to the State Lands Commission that the
State Lands Commission is required to deposit in the General Fund
pursuant to Section 6217. 
   SEC. 5.   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. 
   (3) "Recycled water" has the same meaning as that term is defined
in subdivision (n) of Section 13050 of the Water Code. Recycled water
includes water that is produced from a well used to produce oil,
gas, or both, and that has been treated by separating the water from
the oil, gas, or both. 
   SEC. 6.   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.