Oil and gas: well stimulation treatments.

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. The State Oil and Gas Supervisor, or supervisor, supervises the drilling, operation, maintenance, stimulation, 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 safety and environmental damage. Existing law requires an operator, prior to performing a well stimulating treatment, as defined, on a well, to obtain approval from the supervisor or district deputy. Under existing law, a person who violates any prohibition specific to the regulation of oil or gas operations is guilty of a misdemeanor. Existing law requires the Secretary of the Natural Resources Agency, on or before January 1, 2015, to cause to be conducted, and completed, an independent scientific study on well stimulation treatments, including acid well stimulation and hydraulic fracturing treatments. Existing law requires the division to finalize and implement regulations regulating well stimulation treatments by January 1, 2015. This bill would revise the definition of "well stimulation treatment." The bill would require the scientific study to be conducted and completed no later than June 30, 2016, and to consider additional elements, including, among other things, evaluating various potential direct, indirect, and cumulative health and environmental effects of onshore and offshore well stimulation and well stimulation treatment-related activities, as specified. The bill would also prohibit all well stimulation treatments until (1) the Secretary of the Natural Resources Agency convenes a committee to review the scientific study, as specified, (2) the Governor issues a determination that specific measures are in place to ensure that well stimulation treatments do not create adverse impacts to public and environmental health or, if the well stimulation treatments result in adverse impacts to public and environmental health, the impacts are identified and sufficiently mitigated to avoid significant adverse impacts to public and environmental health at the local, regional, or statewide level, and (3) the division prepares an environmental impact report, as provided. Because a violation of the bill's requirements would be a crime, the bill would impose a state-mandated local program. This bill would require the division to finalize the regulations regulating well stimulation treatments by June 30, 2015. 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.