BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 4| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 4 Author: Pavley (D), et al. Amended: 9/6/13 Vote: 21 SENATE NATURAL RESOURCES AND WATER COMMITTEE : 6-2, 4/9/13 AYES: Pavley, Evans, Hueso, Jackson, Monning, Wolk NOES: Cannella, Fuller NO VOTE RECORDED: Lara SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-2, 5/1/13 AYES: Hill, Corbett, Hancock, Jackson, Leno, Pavley NOES: Gaines, Fuller NO VOTE RECORDED: Calderon SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines SENATE FLOOR : 28-11, 5/29/13 AYES: Beall, Block, Calderon, Corbett, Correa, De León, DeSaulnier, Evans, Galgiani, Hancock, Hernandez, Hill, Hueso, Jackson, Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley, Price, Roth, Steinberg, Torres, Wolk, Wright, Yee NOES: Anderson, Berryhill, Cannella, Emmerson, Fuller, Gaines, Huff, Knight, Nielsen, Walters, Wyland NO VOTE RECORDED: Vacancy ASSEMBLY FLOOR : Not available SUBJECT : Oil and gas: well stimulation CONTINUED SB 4 Page 2 SOURCE : Author DIGEST : This bill establishes a comprehensive regulatory program for oil and gas well stimulation treatments (e.g., hydraulic fracturing, acid well stimulation), which includes, among other things, a study, the development of regulations, a permitting process, and public notification and disclosure. Assembly Amendments make numerous substantive and clarifying changes including (1) removal the fracking permit moratorium tied to when the independent scientific study is completed; (2) revise the scope of this bill to include both hydraulic fracturing and acid well stimulation treatments ("acidizing"); (3) require the Division of Oil, Gas and Geothermal Resources (DOGGR) to establish "threshold values" through its rulemaking process to identify acid matrix stimulation treatments subject to the bill's permitting requirements; (4) revise the "savings" clause; (5) offer a variety of other regulatory tools to all applicable regulatory entities beyond this bill; (6) add regional groundwater monitoring in the vicinity of oil and gas fields; (7) require the State Water Resources Control Board (SWRCB) to develop model criteria with input from experts and stakeholders; (8) require the SWRCB to perform the monitoring in high priority areas (9) add groundwater monitoring to the well stimulation treatment permit requirement; (10) require the state to complete a statewide environmental impact report (EIR); (11) require that the ingredient list of trade secret chemical additives be disclosed; and (12) shift the advance neighbor notification requirement to a third party from the well owner, and require that tenants be notified. ANALYSIS : Existing law: 1. Requires the DOGGR to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, including certain pipelines that are within an oil and gas field, so as to prevent, as far as possible, damage to life, health, property, and natural resources; damage to underground oil and gas deposits from infiltrating water and other causes; loss of oil, gas, or reservoir energy, and damage to CONTINUED SB 4 Page 3 underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental substances. 2. Requires the operator of any well, before commencing the work of drilling the well, to file with DOGGR a written notice of intention to commence drilling. Prohibits the commencement of drilling until approval is given by DOGGR. If DOGGR fails to give the operator written response to the notice within 10 working days from the date of receipt, requires that failure to be considered an approval of the notice. This bill: 1. Defines "well stimulation treatment" as any treatment of a well designed to enhance oil and gas production or recovery by increasing the permeability of the formation. Specifies that hydraulic fracturing and acid well stimulation are well stimulation treatments. Specifies that steam flooding, water flooding, cyclic steaming, routine removal of formation damage due to drilling, routine well cleanout work, routine well maintenance, bottom hole pressure surveys, and routine activities that do not affect the integrity of the well or the formation are not well stimulation treatments. 2. Requires, on or before January 1, 2015, the Secretary of the Natural Resources Agency to complete a comprehensive independent scientific study on well stimulation treatments. Requires the scientific study to evaluate the hazards and risks that well stimulation treatments pose to natural resources and public, occupational, and environmental health and safety. 3. Requires, on or before January 1, 2015, DOGGR, in consultation with the Department of Toxic Substances Control (DTSC), the State Air Resources Board (ARB), the SWRCB, the Department of Resources Recycling and Recovery (CalRecycle), and any local air districts and regional water quality control boards in areas where well stimulation treatments may occur, to adopt rules and regulations specific to well stimulation treatments. Requires these regulations to include the following: (a) revisions to the rules and regulations governing construction of wells and well casings to ensure the integrity of wells, well casings, and the CONTINUED SB 4 Page 4 geologic and hydrologic isolation of the oil and gas formation during and following well stimulation treatments, (b) full disclosure of the composition and disposition of well stimulation fluids, (c) a provision for the well operator to provide for baseline and followup water testing upon request by a nearby property owner; and (d) threshold values for acid matrix stimulation treatments, as specified. 4. Requires, while regulations are being developed, DOGGR to allow all well stimulation treatment activities, provided that various conditions are met, including the following: A. The owner or operator of the well certifies compliance with the disclosure and notification requirements in the bill; B. The owner or operator provides to DOGGR on or before March 1, 2015 a complete well history incorporating the disclosure information required in the bill; and C. DOGGR conducts an EIR (to be completed by July 1, 2015) to provide the public with detailed information regarding any potential environmental impacts of well stimulation in the state. 1. Requires, on or before January 1, 2015, DOGGR to enter into formal agreements with DTSC, ARB, SWRCB, CalRecycle, and any local air districts and regional water quality control boards in areas where well stimulation treatments may occur, that clearly delineate respective authority, responsibility, and notification and reporting requirements associated with well stimulation treatments and well stimulation treatment-related activities, including air and water quality monitoring, in order to promote regulatory transparency and accountability. 2. Requires the operator of an oil and gas well who wishes to perform well stimulation treatments to first apply for a permit with DOGGR to conduct such treatments. Requires the permit to include the well identification number and location; the time period during which the treatment is planned to occur; a water management plan regarding water quantity, source, and disposal; specific information related to the chemicals used in the treatment; the planned location of the treatment on the well bore; the estimated length, CONTINUED SB 4 Page 5 height, and direction of the induced fractures; the location of existing wells, including plugged and abandoned wells, that may be impacted; a ground water monitoring plan; and the estimated amount of treatment-generated waste material and an identified disposal method for the waste materials. Requires the permit to expire one year from the date of issuance. 3. Provides for the pre-Well Stimulation Treatment Notification: A. Within five business days of issuing a permit to perform a well stimulation treatment, requires DOGGR to provide a copy of the permit to the appropriate regional water quality control board(s) and to the local planning entity where the well, including the subsurface portion, is located. B. Within five business days of issuing a permit to perform a well stimulation treatment, requires DOGGR to post the permit on a publicly accessible portion of its Internet Web site. C. Requires that a copy of the approved well stimulation permit and information on the available water sampling and testing, as described, be provided to every tenant of the surface property and every surface property owner whose property line location is within a 1,500 foot radius of the wellhead or within 500 feet from the horizontal projection of all subsurface portions of the designated well to the surface. Allows well stimulation treatment to commence 30 days after the permit copies are provided to the appropriate surface property tenants and owners. D. Requires the operator of the oil and gas well to provide DOGGR at least 72 hours' notice prior to the actual start of the well stimulation treatment in order for DOGGR to witness the treatment. 1. Allows a property owner who receives a well stimulation treatment notice to request water quality sampling and testing from a qualified contractor designated by the regional water quality control board. Requires the well owner or operator to pay for this sampling and testing. CONTINUED SB 4 Page 6 2. Requires, within 60 days after the cessation of well stimulation treatment, the operator of the oil and gas well to post to an Internet Web site designated or maintained by DOGGR and accessible to the public, all of the well stimulation fluid composition and disposition information required to be collected, including well identification number, well location, and collected water quality data. Requires DOGGR to have its Internet Web site operational on or before January 1, 2016. Requires DOGGR's Internet Web site to organize the reported information in a format, such as a spreadsheet, that allows the public to easily search and aggregate each type of information required. Authorizes DOGGR to direct reporting to fracfocus.org in the interim. Requires DOGGR to allow the public to search and sort the well stimulation and related information by at least the following criteria: (a) geographic area; (b) additive; (c) chemical constituent; (d) Chemical Abstract Service number; (e) time period; and (f) operator. 3. Allows a supplier of well stimulation chemicals to claim trade secret protections for the chemical composition of additives; however, the supplier must still provide the trade secret information to DOGGR. Requires a supplier to substantiate a trade secret claim, which is reviewed by DOGGR. If the supplier legitimately claims a trade secret, requires the supplier to publicly disclose where trade secret information has been withheld and provide substitute information as specified. 4. Requires, if DOGGR receives a request for release of the trade secret information to the public, DOGGR to notify the supplier of the request and give the supplier at least 60 days to commence a court action to prohibit the release of information. 5. Allows disclosure of trade secret information to a government officer or employee in connection with his/her official duties or to a contractor with a government entity if, in the opinion of DOGGR, disclosure is necessary and required for satisfactory performance of a contract or to protect health and safety. 6. Authorizes disclosure of trade secret information to a health professional in the event of an emergency or to CONTINUED SB 4 Page 7 diagnose or treat a patient. 7. Requires, to protect public health, a supplier to provide trade secret information to a health professional, toxicologist, or epidemiologist who is employed in the field of public health and who provides a written statement of need. Requires the written statement of need to include the public health purpose and reason the disclosure of the specific chemical and its concentration is required. 8. Prohibits the following information from be protected as trade secret: the identities of the chemical constituents of additives; the concentration of the additives in the well stimulation treatment fluids; any air or other pollution monitoring data; health and safety data associated with well stimulation treatment fluids; and the chemical composition of the flowback fluid. 9. Requires annual public reports from DOGGR containing data and information on well stimulation as specified. 10.Authorizes a civil penalty between $10,000 to $25,000 per day against a person who violates the well stimulation requirements in this bill. 11.Authorizes, subject to appropriation by the Legislature, DOGGR's fee authority to be used to fund a public entity's costs associated with well stimulation treatments including rulemaking and scientific studies required to evaluate the treatment, inspections, and any air and water quality sampling, monitoring, and testing performed by public entities and the costs of SWRCB and the regional water quality control boards for its groundwater monitoring program. 12.Requires, on or before July 1, 2015, SWRCB to develop model groundwater monitoring criteria to be implemented either on a well-by-well basis for a well subject to well stimulation treatment, or on a regional scale. Requires, on or before January 1, 2016, SWRCB or appropriate regional water quality control board to begin implementation of the regional groundwater monitoring programs. Where there is no regional groundwater monitoring plan approved by SWRCB or regional water quality control board, requires the use of the CONTINUED SB 4 Page 8 well-by-well groundwater monitoring plan. Background Background on well stimulation . According to the Western States Petroleum Association (WSPA), hydraulic fracturing (also known as fracking) is a form of well stimulation used to obtain oil and natural gas in areas where those energy supplies are trapped in rock (i.e., shale) or sand formations. Once an oil or natural gas well is drilled and properly lined with steel casing, fluids are pumped down to an isolated portion of the well at pressures high enough to cause cracks in shale formations below the earth's surface. These cracks or fractures allow oil and natural gas to flow more freely. Often, a propping agent such as sand is pumped into the well to keep fractures open. In many instances, the fluids used in hydraulic fracturing are water-based. There are some formations, however, that are not fractured effectively by water-based fluids because clay or other substances in the rock absorb water. For these formations, complex mixtures with a multitude of chemical additives may be used to thicken or thin the fluids, improve the flow of the fluid, or even kill bacteria that can reduce fracturing performance. Another form of well stimulation is called acid matrix stimulation, which involves the injection of acid-such as hydrochloric or hydrofluoric-into an oil and gas well to create or enhance channels for the oil and gas. Unlike hydraulic fracturing, acid matrix stimulation injection pressures are not high enough to fracture the formation. In 2005, Congress enacted what is colloquially referred to as the "Halliburton Loophole," which exempts hydraulic fracturing (except when involving the injection of diesel fuels) from the federal Safe Drinking Water Act (SDWA). As a result of this action, the U.S. Environmental Protection Agency (US EPA) lacks the authority to regulate hydraulic fracturing activities that do not use diesel fuel as an additive. Around the same time that Congress exempted hydraulic fracturing from SDWA, the country experienced a boom in the production of shale oil and gas. From 2007 to 2011, shale oil production CONTINUED SB 4 Page 9 increased more than fivefold, from approximately 39 million barrels to about 217 million barrels, and shale gas production increased approximately fourfold, from 1.6 trillion cubic feet to 7.2 trillion cubic feet. This increase in production was driven primarily by technological advances in horizontal drilling and hydraulic fracturing that made more shale oil and gas development economically viable. But with this boom comes various issues with regard to environmental health and safety, which has caused enormous public anxiety. Cases of environmental contamination attributed to hydraulic fracturing have been reported in Wyoming, Texas, Colorado, West Virginia, and Pennsylvania. Consequently, governments at all levels across the country are looking to regulate the practice and address these concerns. The risks associated with shale oil and gas development . According to a recent report from the U.S. Government Accountability Office (GAO), which is an independent, nonpartisan agency that works for Congress, "[d]eveloping oil and gas resources?poses inherent environmental and public health risks, but the extent of risks associated with shale oil and gas development is unknown, in part, because the studies we reviewed do not generally take into account potential long-term, cumulative effects." The GAO's report categorizes the environmental risks into the four major categories: air quality, water quantity, water quality, and land and wildlife. With regard to air quality, the risks are "generally the result of engine exhaust from increased truck traffic, emissions from diesel-powered pumps used to power equipment, intentional flaring or venting of gas for operational reasons, and unintentional emissions of pollutants from faulty equipment." The GAO report also explains how silica sand, a proppant commonly used in hydraulic fracturing, and storing fracturing fluids and produced waters in impoundments can cause air quality issues. Silica sand, if not properly handled, can become airborne, lodge into a person's lungs, and cause silicosis, which is an incurable lung disease. Impoundments (i.e., ponds) containing fracturing fluids and produced waters (i.e., the water produced when oil and gas are extracted from the ground) pose a risk because the evaporation of the fluids has the potential to release contaminants into the atmosphere. CONTINUED SB 4 Page 10 With regard to water quantity, water is used for well drilling operations to make drilling mud as well as to cool and lubricate the drill bits. Water is also the primary component of hydraulic fracturing fluids. According to the GAO, "the amount of water used for shale gas development is small in comparison to other water uses, such as agriculture and other industrial purposes. However, the cumulative effects of using surface water or ground water at multiple oil and gas development sites can be significant at the local level, particularly in areas experiencing drought conditions." It should be noted that the oil and gas industry and DOGGR both assert that the amount of water used for hydraulic fracturing in California is a fraction of what is used in other states. This assertion is based on information voluntarily provided by oil and gas operators. It is not clear whether this information is representative of all hydraulic fracturing in the state. Additionally, with the potential for an oil boom in the Monterey Shale (which is explained in more detail below), it is too speculative to determine the type and amount of well stimulation that will take place in the future and how much water will be needed. With regard to water quality, the GAO explains that shale oil and gas development pose risks from contamination of surface water and ground water as a result of spills and releases of hydraulic fracturing chemicals, produced water, and drill cuttings. Spills and releases of these materials can occur as a result of tank ruptures, blowouts, equipment or impoundment failures, overfills, vandalism, accidents, ground fires, or operational errors. The potential for the spill and release of chemicals involved in hydraulic fracturing has received a great amount of public attention. According to a recent congressional report, between 2005 and 2009, oil and gas companies throughout the U.S. used hydraulic fracturing products containing 29 chemicals that are known or possible human carcinogens; regulated under the SDWA for their risk to human health; or listed as hazardous air pollutants under the Clean Air Act. As for produced water, it can carry a range of contaminants, including hydraulic fracturing chemicals, salts, metals, oil, grease, dissolved organics, and naturally occurring radioactive materials. Drill cuttings (i.e., the broken bits of solid material removed from drilling) may contain naturally occurring radioactive materials, as well. CONTINUED SB 4 Page 11 The potential for underground migration is also a potential risk to water quality. The GAO explains that "[u]nderground migration can occur as a result of improper casing and cementing of the wellbore as well as the intersection of induced fractures with natural fractures, faults, or improperly plugged dry or abandoned wells. There are also concerns that induced fractures can grow over time and intersect with drinking water aquifers." It should be noted that the oil and gas industry has provided information claiming that hydraulic fracturing typically occurs thousands of feet below the earth's surface and that the well casing for these wells extends below an impervious layer of rock "that would prevent any migration of fluids up into the drinking water supply." Assuming that the industry is correct, there is still the problem with well casing failures. A 2000 Society of Petroleum Engineers article regarding an oil field in Kern County explained that "the well failure rate, although lower than that experienced in the 1980s, is still economically significant at 2 to 6% of active wells per year." In Pennsylvania, poor cementing around a well casing allowed methane to contaminate the water wells of 19 families. Moreover, little data exists on fracture growth in shale formations following multistage hydraulic fracturing over an extended time period; the frequency with which refracturing of horizontal wells may occur; the effect of refracturing on fracture growth over time; and the likelihood of adverse effects on drinking water aquifers from a large number of hydraulically fractured wells in close proximity to each other. With regard to land and wildlife, the GAO explains that "clearing land of vegetation and leveling the site to allow access to the resource, as well as construction of roads, pipelines, storage tanks, and other infrastructure needed to extract and transport the resource can fragment habitats?[which] increases disturbances?, provides pathways for predators, and helps spread nonnative plant species." Noise, the presence of new infrastructure, and spills of oil, gas, or other toxic chemicals are other risks that can negatively affect wildlife and habitat. There is also the issue of earthquakes and hydraulic fracturing. According to the GAO report, well injections, especially the injection of produced water, have been connected to seismicity. Ideally, the environmental risks referenced above would be CONTINUED SB 4 Page 12 analyzed by the lead agency under CEQA. However, according to a complaint in a recent lawsuit filed against DOGGR by a number of environmental groups, the agency has been "approving permits for oil and gas wells after exempting such projects from environmental review or? issuing boilerplate negative declarations finding no significant impacts from these activities." Well stimulation in California . According to the oil and gas industry, hydraulic fracturing has been used in California for decades. The industry claims that over 90% of hydraulic fracturing occurs in Kern County, in areas with no potable water, no surrounding population, and no other significant business interests. However, reports from various sources suggest that hydraulic fracturing in California will likely increase significantly in the upcoming years, spreading to areas throughout the state. A recent report from the University of Southern California explains that "California boasts perhaps the largest deep-shale reserves in the world. Those reserves exist within the Monterey Shale Formation, a 1,750 square mile swath of mostly underground shale rock that runs lengthwise through the center of the state, with the major portion in the San Joaquin Basin." The U.S. Energy Department estimates that the Monterey Shale contains more than 15 billion barrels of oil, accounting for approximately two-thirds of the shale-oil reserve in the U.S. Additionally, according to a 2008 paper published by the Society of Petroleum Engineers, "it is believed that hydraulic fracturing has a significant potential in many Northern California gas reservoirs." DOGGR, although having statutory authority to regulate well stimulation, has not yet developed regulations to address the activity. As explained below, the agency is currently focused on developing regulations that require oil and gas operators to take certain protective measures and provide information about hydraulic fracturing operations. DOGGR's Draft Regulations . On December 28, 2012, DOGGR released a pre-rulemaking discussion draft of regulations on hydraulic fracturing-this draft does not address other forms of well stimulation, such as acid matrix stimulation. The proposed hydraulic fracturing regulations attempt to impose requirements CONTINUED SB 4 Page 13 on operators aimed to improve transparency and safety. Specifically, the proposed regulations would require an operator to: (1) submit information to DOGGR at least 10 days prior to beginning hydraulic fracturing operations and notify DOGGR at least 24 hours prior to commencing hydraulic fracturing operations (advance disclosure of hydraulic fracturing chemicals is not required); (2) prior to operations, test the structural integrity of wells and casings to prevent fluid migration; (3) store and handle hydraulic fracturing fluids in a specified manner; (4) monitor a specified set of parameters during hydraulic fracturing operations and, in case a breach occurs, terminate operations and immediately notify DOGGR about the breach; (5) after the conclusion of operations, monitor wells for up to 30 days and maintain data for a period of five years; and (6) disclose data to a Chemical Disclosure Registry (such as fracfocus.org) that is not a trade secret, unless a health professional submits a written statement of need stating that the trade secret information will be used for diagnosis or treatment of an individual exposed to hazardous hydraulic fracturing chemicals and the health professional also executes a confidentiality agreement. CEQA review of oil and gas wells . DOGGR regularly approves oil and gas development proposals under the CEQA categorical exemptions for minor alterations to land or existing facilities, or by way of negative or mitigated negative declarations. As a result, oil and gas permits are rarely reviewed in EIRs that would evaluate the potential risks associated with hydraulic fracturing. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Assembly Appropriations Committee: 1. One-time costs of $2 million for DOGGR's initial activities including rulemaking. Ongoing costs of approximately $2 million for DOGGR to provide regulatory oversight. 2. Unknown Increased initial and ongoing costs to the SWRCB and regional boards to provide groundwater monitoring depending on well activity. 3. Unknown significant costs to the Natural Resources Agency, CONTINUED SB 4 Page 14 potentially in the hundreds of thousands of dollars to conduct an independent scientific study. 4. Ongoing costs of approximately $2 million for the ARB to update their regulations and provide associated monitoring. 5. Unknown one-time and ongoing costs for CalRecycle and the DTSC likely in the hundreds of thousands of dollars to consult with DOGGR in regulation development and form multi-agency agreements. SUPPORT : (Verified 9/11/13) Senator Dianne Feinstein Alameda County Water District American Lung Association in California Association of California Water Agencies California Association of Environmental Health Administrators California Association of Professional Scientists California Coastal Protection Network California Interfaith Power and Light Citizens for Responsible Oil and Gas City of Los Angeles Councilmember, Gil Cedillo City of Malibu Mayor, Lou LaMonte City of Moorpark City of Moorpark Councilmember, David Pollock City of Oxnard Councilmember, Carmen Ramirez City of Ventura Councilmember, Brian Brennan Clean Coalition Community Alliance with Family Farmers County of Ventura Supervisor, Linda Parks County of Ventura Supervisor, Steve Bennett Earthworks Environmental Defense Center Los Angeles Community College District Los Angeles County Board of Supervisors Los Angeles County Democratic Party Central Committee Paw PAC San Fernando Valley Young Democrats San Francisco Baykeeper Santa Cruz County Board of Supervisors South Coast Air Quality Management District The League of Women Voters The Nature Conservancy CONTINUED SB 4 Page 15 Ventura County Board of Supervisors OPPOSITION : (Verified 9/11/13) American Chemistry Council California Business Properties Association California Chamber of Commerce California Environmental Justice Alliance California Independent Petroleum Association California Manufacturers and Technology Association Center for Biological Diversity Citizen's Coalition for a Safe Community Department of Finance Food and Water Watch Halliburton Energy Services, Inc. Kern County Board of Supervisors Physicians for Social Responsibility - Los Angeles Sierra Club California Southwest California Legislative Council Western States Petroleum Association ARGUMENTS IN SUPPORT : The Environmental Defense Center states, "while the state of California is widely regarded as the nation's leader on environmental issues, our state lags far behind other major oil and gas producing states in the development of a legal and regulatory framework to address fracking and the significant risks it poses to the public health, safety, and the natural environment? No one but the oil industry truly knows the location, extent, or frequency of fracking, the source and volume of water used, or what chemicals are being utilized? SB 4 would remedy this unacceptable status quo." Ventura County states the county is "highly dependent on local groundwater resources for potable water, and groundwater is the lifeblood of the County's $1 billion-plus agricultural industry? Ventura County has historically balanced oil and gas production and the jobs it brings with the protection of our natural and agricultural resources. It is important that this balancing continue to occur." ARGUMENTS IN OPPOSITION : In a joint letter, the Western States Petroleum Association states that "SB 4 imposes a moratorium on the use of hydraulic fracturing in oil and gas CONTINUED SB 4 Page 16 production starting on January 1, 2015, until [the state's] regulations are complete. This would unnecessarily and substantially threaten our supplies of oil and natural gas, raising business costs and harming California's economy." They continue, "This significant, untimely burden on California's businesses and economy is unnecessary. Oil and gas production as a whole is heavily regulated and monitored, and hydraulic fracturing has been used for decades with no reported incidents of harm to the environment or public health. Opponents argue that SB 4 will not provide added public health or environmental protections, but it will increase business costs, hamper California's economic recovery and deprive our state of much-needed fuel, jobs and tax revenues indefinitely." RM:k 9/11/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED