Amended IN Senate May 26, 2017

Amended IN Senate April 17, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 773

Introduced by Senator Stern

February 17, 2017

An act to amend Section 3214 of, and to add Section 3210.5 to to, the Public Resources Code, relating to oil and gas.

LEGISLATIVE COUNSEL'S DIGEST

SB 773, as amended, Stern. Oil and gas: well records.

(1) Existing law requires the Division of Oil, Gas, and Geothermal Resources to regulate the drilling and operation of wells used for the purpose of producing oil and gas. Existing law requires an owner or operator of a well to keep, or cause to be kept, a careful and accurate log, core record, and history of the drilling of the well. Existing law requires the log to be kept in the local office of the owner or operator, and, together with the tour reports of the owner or operator, is subject, during business hours, to the inspection of the supervisor, the district deputy, or the director. Under existing law, a person who fails to comply with ~~this~~ these and other requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor.

This bill would provide that it is the policy of the state that information sufficient to characterize each well, including after plugging and abandonment, be maintained by the state. The bill would require the State Oil and Gas Supervisor to ensure compliance with this policy. Because a violation of an order or regulation implementing these provisions would be a crime, the bill would impose a state-mandated local program.
This bill would require the well history and all well summaries, in addition to the log, to be kept in the local office of the owner or operator, and would make them subject, during business hours, to the inspection of the supervisor, the district deputy, or the director. Because a violation of this requirement would be a crime, the bill would impose a state-mandated local program. The bill would require the division to post on its Internet Web site, in a manner determined by the division, specified mandatory disclosures received from operators on or after January 1, 2019, within 30 days of receipt.

(2) 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 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) During earlier reform efforts at the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation, the division released a memo in 2010 that emphasized the importance of regulatory recordkeeping and maintenance of well records by division personnel.

(b) Public concern and expectations regarding division recordkeeping has increased in recent years, and has highlighted questions regarding reporting at the Aliso Canyon natural gas storage facility following the massive gas leak that started in October of 2015.

(c) In 2015, the division publicly released an internal review of the records maintained by one of its district offices. The review revealed that many critical records were missing from Underground Injection Control Program project files. In some instances, more than one-half of a type of critical record were incomplete or missing.

(d) Recent leadership at the division and the department have made a renewed and continuing commitment to overhauling regulations and modernizing data management to help address expectations and address public safety.

SEC. 2.Section 3210.5 is added to the Public Resources Code, to read:
3210.5.
It is the policy of the state that information sufficient to characterize each well, including after plugging and abandonment pursuant to Section 3208, be maintained by the state. For purposes of this section, well characterization shall include, but not be limited to, a careful and accurate log, core record, and history of the drilling of the well kept and maintained pursuant to Section 3210 and Sections 3211 to 3214, inclusive, and any other information required by the division through regulations. The supervisor shall ensure compliance with this policy.

SEC. 2.

Section 3210.5 is added to the Public Resources Code, to read:

3210.5.
(a) The division shall post on its Internet Web site, in a manner determined by the division, all of the following mandatory disclosures received from operators on or after January 1, 2019, within 30 days of receipt:
(1) Copies of approved notices of intention to commence drilling.
(2) Well summaries.
(3) Core records and histories.
(4) All electrical, physical, and chemical logs, tests, and surveys run on the well, including mud logs.
(b) To ensure that the records are sufficient, to the satisfaction of the division, the division may conduct random audits of operators in a manner consistent with Section 3214.

SEC. 3.

Section 3214 of the Public Resources Code is amended to read:

3214.

The ~~log~~ log, the well history, and all well summaries shall be kept in the local office of the owner or operator, and, together with the tour reports of the owner or operator, shall be subject, during business hours, to the inspection of the supervisor, the district deputy, or the director.

SEC. 3.SEC. 4.

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.