Oil and gas: well stimulation treatments: earthquake and leak monitoring and reporting.

Existing law authorizes the Geologic Energy Management Division in the Department of Conservation to regulate the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires an operator proposing to perform a well stimulation treatment to apply to the State Oil and Gas Supervisor or a district deputy for a permit to perform the well stimulation treatment, including hydraulic fracturing, and imposes other requirements and conditions on the use of well stimulation treatments. 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. This bill would express the intent of the Legislature in enacting this legislation to (1) strengthen the regulatory review process for well stimulation treatment projects to protect public health and safety, and the environment, while protecting the livelihoods of essential workers in the San Joaquin Valley, and (2) ensure that any jobs or economic activity affected by the strengthening of the regulatory review process for well stimulation treatment projects are fully compensated for, and retained, in order to ensure the employees and communities affected by these actions are not adversely affected. The bill would require the operator of a well, from the commencement of hydraulic fracturing until 30 days after the end of the hydraulic fracturing on the well, to monitor the California Integrated Seismic Network for indication of an earthquake of magnitude 2.7 or greater occurring within a radius of 5 times the axial dimensional stimulation area. If an earthquake of magnitude 2.7 or greater is identified, the bill would require the operator to immediately notify the division and inform the division when the earthquake occurred relative to the hydraulic fracturing operations, and would prohibit any further hydraulic fracturing to be done within the radius until the division has completed a certain evaluation and is satisfied that hydraulic fracturing within that radius does not create a heightened risk of seismic activity. Within 72 hours of the occurrence of an unauthorized release of certain fluids, the bill would require the operator of the well to provide the division a written report containing certain information related to the release. Because a violation of these requirements 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.