Oil and gas wastewater: unlined ponds: prohibition.

Existing law establishes the Geologic Energy Management Division in the Department of Conservation under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells. Existing law requires the owner of any well to file with the supervisor a monthly statement that provides certain information relating to the well, including the source, volume, treatment, and disposition of water produced in oil and gas activities. Under existing law, a person who fails to comply with this and other requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor. Under the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and the California regional water quality control boards are the principal state agencies with authority over matters relating to water quality, including prescribing waste discharge requirements for the discharge of waste that could affect the quality of the waters of the state. Under the act, persons discharging waste are required to file with the appropriate regional board a report of the discharge and the discharge is subject to waste discharge requirements prescribed by that regional board. Under the act, each regional board is required to formulate and adopt water quality control plans for all areas within its region, as specified. Beginning January 1, 2023, and until January 1, 2025, this bill would prohibit the disposal of produced wastewater, as defined, into unlined ponds and the construction of new unlined ponds, except as conducted pursuant to a permit or other authorization lawfully issued before that date, and would also prohibit the issuance or renewal of a permit or other authorization for those activities. Beginning January 1, 2025, the bill would prohibit all disposal of produced wastewater into unlined ponds and the construction of new unlined ponds. The bill would exclude from these prohibitions the discharge of produced wastewater into unlined ponds under specified conditions. The bill would require, as needed, the State Water Resources Control Board and regional water quality control boards, on or before January 1, 2025, to adopt amendments to their rules and regulations consistent with the prohibitions beginning January 1, 2023. To the extent regional water quality control boards would be required to provide a higher level of service in the amending of rules and regulations, the bill would impose a state-mandated local program. Because violation of the prohibition on disposing of produced wastewater into unlined ponds or constructing new unlined ponds, except pursuant to a permit issued before January 1, 2023, or as otherwise exempted, would create a new 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.