STATE OF CALIFORNIA Budget Change Proposal - Cover Sheet DF-46 (REV08/15) Fiscal Year 2017/18 Business Unit 3480 Department Conservation Priority No. 5 Budget Request Name 3480-005-BCP-BR-2017-GB Program 2425 - OIL, GAS AND GEOTHERMAL REGULATION Subprogram 2425010 - REGULATION OF OIL AND GAS OPERATIONS Budget Request Description Well Statewide Tracking and Reporting (WellSTAR) Budget Request Summary The Department of Conservation's Division of Oil, Gas, and Geothermal Resources requests 2.0 permanent positions, three year funding for 12.0 Program Technician II positions, and an appropriation of $21,087,000 in 2017-18, $15,012,000 in 2018-19, $5,545,000 in 2019-20, $2,540,000 in 2020-21, and $1,327,000 ongoing from the Oil, Gas, and Geothermal Administrative Fund. Positions and funding will be used to further develop and implement the Well Statewide Tracking and Reporting, a centralized database system to help run operations and meet the requirements of recent legislation. There is no General Fund impact with this proposal. Requires Legislation • Yes ^ No Code Section(s) to be Added/Amended/Repealed Does this BCP contain information technology (IT) components? ^ Yes • No /fyes, departmental Chief information Officer must sign. Department CIO Date For IT requests, specify the date a Special Project Report (SPR) or Feasibility Study Report (FSR) was approved by the Department of Technology, or previously by the Department of Finance. • FSR lEI SPR Project No. 3480-047 Date: 9/30/2016 If proposal affects another department, does other department concur with proposal? • Yes • No Attach comments of affected department, signed and dated by the department director or designee. Prepared By Date Reviewed By Date Department Director Date Agency Secretary Date Department of Finance Use Only Additional Review: • Capital Outlay • ITCU • FSCU • OSAE • CALSTARS • Dept. of Technology BCP Type: • Policy • Workload Budget per Government Code 13308.05 PPBA ^"9inal Signed by Amanda Martin Date submitted to the Legislature
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STATE OF CALIFORNIA Budget C h a n g e Proposal - Cover Sheet DF-46 (REV08/15)
Fiscal Year 2017/18
Business Unit 3480
Department Conservation
Priority No. 5
Budget Request Name 3480-005-BCP-BR-2017-GB
Program 2425 - OIL, GAS AND
GEOTHERMAL REGULATION
Subprogram 2425010 - REGULATION OF OIL AND GAS OPERATIONS
Budget Request Description Well Statewide Tracking and Reporting (WellSTAR)
Budget Request Summary The Department of Conservation's Division of Oil, Gas, and Geothermal Resources requests 2.0 permanent positions, three year funding for 12.0 Program Technician II positions, and an appropriation of $21,087,000 in 2017-18, $15,012,000 in 2018-19, $5,545,000 in 2019-20, $2,540,000 in 2020-21, and $1,327,000 ongoing from the Oil, Gas, and Geothermal Administrative Fund. Positions and funding will be used to further develop and implement the Well Statewide Tracking and Reporting, a centralized database system to help run operations and meet the requirements of recent legislation.
There is no General Fund impact with this proposal.
Requires Legislation
• Yes ^ No
Code Section(s) to be Added/Amended/Repealed
Does this BCP contain information technology (IT) components? ^ Yes • No
/fyes, departmental Chief information Officer must sign.
Department CIO Date
For IT requests, specify the date a Special Project Report (SPR) or Feasibility Study Report (FSR) was approved by the Department of Technology, or previously by the Department of Finance.
• FSR lEI SPR Project No. 3480-047 Date: 9/30/2016
If proposal affects another department, does other department concur with proposal? • Yes • No Attach comments of affected department, signed and dated by the department director or designee.
Prepared By Date Reviewed By Date
Department Director Date Agency Secretary Date
Department of Finance Use Only
Additional Review: • Capital Outlay • ITCU • FSCU • OSAE • CALSTARS • Dept. of Technology
BCP Type: • Policy • Workload Budget per Government Code 13308.05
PPBA ^"9inal Signed by Amanda Martin Date submitted to the Legislature
2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
Budget Request Summary
The Department of Conservation's (Department) Division of Oil, Gas, and Geothermal Resources (Division) requests 2.0 permanent positions, three year funding for 12.0 Program Technician II positions, and an appropriation of $21,087,000 in 2017-18, $15,012,000 in 2018-19, $5,545,000 in 2019-20, $2,540,000 in 2020-21, and $1,327,000 ongoing from the Oil, Gas, and Geothermal Administrative (OGGA) Fund. Positions and funding will be used to develop and implement the Well Statewide Tracking and Reporting (WellSTAR), a centralized database system to help run operations and meet the requirements of recent legislation. The table below illustrates the requested funding plan.
There is no General Fund impact with this proposal.
As specified in Chapters 1 and 4, Division 3 of the Public Resources Code (PRC), the Division regulates onshore and offshore oil, gas, and geothermal well operations throughout the State by enforcing laws for the conservation of petroleum and geothermal resources and the protection of public health and safety, and the environment. The Division's mission is to prevent damage to life, health, property, the environment, and natural resources by ensuring that wells are properly drilled, operated for production and injection purposes, repaired, and plugged and abandoned.
The Division's regulatory program includes evaluation of permit applications to drill, rework, and plug and abandon wells, and providing permit conditions that ensure operations are conducted to prevent damage to State resources and provide adequate protection for oil field workers and surrounding communities. In addition, the Division provides expertise to local planning agencies to provide critical information when new development is planned over, near, or adjacent to historic oil field operations. To ensure continuing oil field operations, including well stimulation, are not impacting the environment, the Division is responsible for maintaining a field, island, and platform presence to ensure oil field operations are in compliance with State laws and regulations.
SB 4 (Pavley, Chapter 313, Statutes of 2013) mandated the development and implementation of well stimulation regulations. Emergency regulations that became effective January 1, 2014, specify new interim technical program requirements. Permanent regulations put in place on July 1, 2015, specify new technical program requirements. The permanent regulations require the collection of large amounts of complex oil and gas data related to well stimulation jobs to be evaluated, permitted, validated, inspected, and monitored. This data includes, but is not limited to, directional surveys, geophysical well logs, well construction details, well completion details, drill stem tests, fracture
2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
stimulations and micro-seismic data, core logs, mud logs, pressure transient test data, and production and injection data. The electronic capture of this data is essential for analysis and development of annual reports to the Legislature and will be made available on the Department's public website.
SB 1281 (Pavley, Chapter 561, Statutes of 2013) mandates the Division to collect information on water production and use from operators on a quarterly basis and annually report an inventory of all unlined oil and gas field sumps to the State Water Resources Control Board and Regional Water Quality Control Boards. SB 1281 requires detailed reporting of water use by type, amount, and source, as well as additional reporting on produced water, water treatment and recycling efforts, and disposition of all water used or produced. This reporting must be done at both the level of individual wells, and the overall field.
Injection wells have been an integral part of California's oil and gas operations for over 50 years. Currently, over 50,000 oilfield injection wells are operating in the State. Injection wells are used to increase oil recovery and to safely dispose of the saltwater and freshwater produced with oil and natural gas. About 72 percent of California's oil production is the result of Enhanced Oil Recovery (EOR) methods, such as steam flood, water flood, and natural gas injection. The injection for EOR in California using newer technologies is emerging throughout oil and gas fields in California. With EOR injections, it is critical to ensure the competency of the reservoir, and the integrity of the injection wells. The increased use of injection also presents new public health and safety risks, especially in fields with older wells. These risks include groundwater contamination, reservoir fluids leaking to the surface, and fires and blowouts caused by the migration of oil and gas. Additionally, urban encroachment on, or around, older oil and gas wells raises additional health and public safety concerns.
The Division, and the State Water Board and Regional Water Quality Control Board (collectively Water Boards) identified oil and gas wastewater injection wells that may be injecting production wastewater into aquifers that may not have been properly permitted under the U.S. Environmental Protection Agency (US EPA) underground injection control (UlC) process. This process, for which the Division has primacy with the US EPA, is known as "aquifer exemption" under Title 40 of the code of federal regulations.
On February 6, 2015, the Division and the Water Boards submitted a comprehensive plan to the US EPA that would ensure California's UlC program will come into compliance with the Safe Drinking Water Act. The US EPA noted in their March 9, 2015, response that "As one of these program improvements, the Division shall create a searchable injection well database. An effectively designed searchable database is necessary for the Division to properly manage permitting and enforcement of injection activity across the State, for EPA to conduct its oversight of the Class II program, and for the public to monitor injection activity."
"Revenue covers fund appropriations to the Air Resources Board and State Water Resources Control Board
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The 2015-16 Budget included Spring Finance Letter (SFL) #16, Oil and Gas Data Management System. The Oil and Gas Data Management System (a Risk Based Data Management System (RBDMS)) has since been named Well Statewide Tracking and Reporting (WellSTAR). This SFL requested a total of $20 million, with an appropriation of $10 million per year over two years. WellSTAR costs were estimated to be $20 million in the SFL, though it was noted that through the Stage/Gate process more specifics regarding the scope and budgetary costs would become available. Table 1 lists the funding request from the 2015-16 BCP. The purpose of this 2017-18 BCP is to cover the added costs discovered through the Stage/Gate process of the project.
Table 1. RBDMS ESTIMATED COSTS
Item Cost RBDMS Implementation & Customization $12,350,000 Contract with Ground Water Protection Council $750,000 Business Process Engineering $1,250,000 CALTECH (CDT) Services $2,000,000 Division Personal Services $3,150,000 Training $500,000 Total Estimated Project Cost $20,000,000
0. state Level Considerations
Oil and gas production in California is a $34 billion annual industry, employing more than 25,000 people with an annual payroll of over $1.5 billion. California is the third largest oil-producing state in the nation, producing about 625,000 barrels per day, which supplies the State with 35 percent of its transportation fuels (the remainder is refined oil imported via rail or ship). Property and other tax payments to the State and local governments from the industry amount to about $800 million annually. There are approximately 110,000 active or idle production and injection wells in the State.
Injection wells have been an integral part of California's oil and gas operations for over 50 years. Currently, over 50,000 oilfield injection wells are operating in the State. Injection wells are used to increase oil recovery and to safely dispose of the saltwater and freshwater produced with oil and natural gas. About 80 percent of California's oil production is the result of EOR methods, such as steam flood, water flood, and natural gas injection that rely on injection technologies.
D. Justification
The Division has faced many challenges in recent years. New programs (SB 4 - Well Stimulation Treatment Program) and changes to existing programs (UlC, Aquifer Exemptions, and SB 1281) have placed tremendous pressure and scrutiny on the Division to increase performance and transparency. The Division has started to develop business processes so that it can effectively implement these programs, integrating them with existing processes, and maintaining them with a comprehensive database. The existing databases and IT systems (CalWIMS, WellSTAT) are not capable of handling the technological advances that are necessary in order to move the Division forward to meet its regulatory requirements. The current systems lack the capability of accepting on-line permitting, cannot easily be queried for data that is expected by stakeholders, does not allow oil and gas operators to upload their reporting requirements, does not allow the Division a quality control mechanism to check the data that is provided by the operators, and cannot equip field staff with mobile assets necessary to increase their productivity in order for the Division to meet inspection goals.
WellSTAR will provide the Division, operators, other state agencies, and the public with an integrated data and information system that is searchable, public, and transparent. With input from the Division, including data elements used in casing diagrams and formation data, as well as digital data from
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2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
operators, WellSTAR will allow the Division to generate its own casing diagrams as part of the evaluation of the viability of the injection projects. In time, the operators will not need to provide casing diagrams as part of their data submissions if the well construction data is provided through the WellSTAR permitting portal. WellSTAR will enable agencies at the state and federal level to collect baseline data needed for informed regulatory decisions that protect the environment. It will reduce the cost of information exchange between agencies and industry groups, agencies/industry groups and third party laboratories, and between agencies and the public. WellSTAR will also help agencies reduce their operating expenses while increasing staff efficiency through automated workflows and regulatory data processing and analysis.
The Division entered into an agreement with the California Department of Technology (CDT) to complete a Stage/Gate process with the assistance and direction of staff from CDT Consulting and Planning Division. (The Stage/Gate process replaces the FSR process.) This process consists of providing legal and technical evidence of the project's vitality, sustainability, and cost-effectiveness. It allows the senior management to get the necessary information required to make key decisions on budgeting and investment planning. This BCP requests an additional $1,188,000 to extend CDT assistance through 2019-20.
In addition to the agreement with CDT, the Division contracted with a business process engineering firm to develop key process checkpoints to ensure a smooth transition with acquiring a single data system. Many of the Division's existing processes are antiquated or not well defined. Through the Business Process Engineering steps, the Division will adapt current processes or develop new processes that will fit into California regulatory requirements and those of a RBDMS, thus reducing the cost of the database.
The Project Approval Lifecycle (aka Stage/Gate) has four stages: Stage 1 Business Analysis, Stage 2 Alternatives Analysis, Stage 3 Solution Development, Stage 4 Project Readiness Approval. The Stage 1 Business Analysis packet was approved by the CDT, June 30, 2016. The Stage 2 Alternative Analysis packet was submitted to CDT on July 30, 2016. The project team is currently working through the scorecard question-and-answer process. The Stage 3 Solution Development will begin shortly. The Division is working with its CDT analyst to determine the appropriate content and timeline needed for this stage. It was during this 2"'' Stage that the total costs for WellSTAR had become clearer. The revised need is an additional $36 million for the complete deployment of critical business and regulatory functions from this point forward.
The driving force for this increase consists of a few key factors. First, the initial request for the database was a best guess scenario at the time. There was a clear need for quality and reliable data as identified above to meet US EPA and California legislative requirements. The RBDMS system was identified as being the most applicable system to implement in California due to its history of providing EPA and regulatory compliant functionality in 23+ other states. The RBDMS system has been successfully implemented in all 23+ states and received all positive feedback when the Division surveyed other states on the quality of RBDMS as a system as well as the level of service provided by GWPC. The Division, CDT and the contractor (Ground Water Protection Council (GWPC)) completed a Proof of Concept (POC) stage to test three regulatory forms that are universally used and to complete a fit/gap requirements analysis for California. The POC identified 473 requirements and recommended a cloud-based architecture for the implementation to be consistent with the direction that CDT is taking with regards to new application deployments. The projected cost at that time was approximately $50+ million to accommodate the 473 requirements as well as the re-architecting of the RBDMS system.
After the POC, GWPC performed a competitive request for proposal from various small-business/California based firms to acquire a reasonable market price to meet the needs of California. The bids were based on the POC data and the requirement was the winning vendor would engage in a 90 day analysis period to validate the fit/gap and perform a more in-depth requirements analysis to ensure California's needs were met. GWPC selected a firm and a complete analysis was completed over a 90 day period, which ended on November 1, 2016. The rigorous analysis performed revealed that the initial requirements fit/gap was incomplete as a total of 1384 requirements were documented and confirmed by the Division. This 192% increase in requirements included approximately 600 that were specific to RBDMS and another 800 that were California specific requirements. Because of the
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2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
rigorous process that was followed to gather, document, confirm, and re-confirm requirements, the Division is confident in the final functional and product requirements for the new RBDMS system.
Another factor contributing to the rise in the cost of implementing RBDMS was the decision to convert legacy well data from the existing production systems: WellSTAT and CalWIMS. This increase in cost is approximately $1.38 million. The original plan was to implement RBDMS without new data and allow the end-users to gradually migrate to and enter data into RBDMS. This plan would require end-users to toggle between three systems. After further investigation and analysis, the Division realized that this option would not only reduce the Division engineer(s) and geologist(s) productivity due to the need to toggle between three systems and manually re-type data, there was also an operational risk. The risk to the Division is that the legacy system, WellSTAT is currently operating on a platform that is no longer supported and if WellSTAT were to encounter a fatal system error, the application may not be recoverable. While the data is backed-up, the application is beyond end-of-life and because of the critical data and functionality it provides, converting the data into RBDMS is the best and most viable option. In addition, by decommissioning the legacy applications, assumption of ownership and operations by Department information technology staff will be faster, more comprehensive, and less costly as staff will no longer need to maintain the legacy systems and can focus their efforts on preparing to assume operational responsibility of RBDMS.
Furthermore, the data volumes in WellSTAT (2.15GB) and CalWIMS (3.92GB) are not large (volumes) and therefore, project timelines were not negatively impacted by the decision to convert legacy data. Finally, DOC will be offsetting some of the cost for data conversion as Department staff will be responsible for data cleansing and validation prior to loading into the target system, RBDMS.
The other major factors are based on an analysis that was completed by CDT and the Resources Agency CIO prior to GWPC distributing a competitive RFP. This analysis identified the following problems and solutions:
The Division requires a Web-Enabled RBDMS solution
• Problem: Existing RBDMS installations are still using client server interfaces. o The Division is not centrally located, which makes maintenance of a client server-based
application complex and cumbersome, o The Division's users and operators utilize varied computing equipment and platforms that
would require multiple versions of a client server-based application to be maintained, which can be cost prohibitive and difficult to sustain in the long-term.
• Solution: Re-platform the existing RBDMS suite to a web-based application. o Deployment and maintenance of a web-based solution is performed centrally rather than in
a distributed fashion (i.e. client/server), o Need for a standard machine configuration is mitigated whereas any user who has a
machine with Internet access can use a modern web browser that will access application from any location.
o The Division can gain program efficiencies by using online forms that allow external users to perform data entry therefore eliminating the need for DOGGR resources to 'key in' data from hardcopy forms.
The Division requires a Modernized RBDMS
• Problem: Products in the RBDMS suite are currently built and deployed in various technologies (e.g. Silverlight, WPF, VB.Net). o Several of these technologies are headed toward obsolescence where vendor support could
become limited and resources for maintenance could become scarce. o Sustainability of the application is immediately limited as are modifications to integrate with
other external applications
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2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR) $
• Solution: Re-platform the RBDMS suite into a consolidated, modern, web-based architecture and technology (ASP.NET Core, MVC 6, Entity Framework Core). o Consolidate the product technologies into a single application framework to simplify
maintenance and mitigate long-term sustainability and interoperability concerns. o Will require a significant refactoring of existing code, including rewriting in the target
language and redesigning the current product interface to take advantage of modern web design techniques.
The Division requires a Cloud-Based RBDMS Solution
• Problem: Existing RBDMS installations are still using client server interfaces which are not suitable for migration to, or service from, cloud-based IT resources.
• Solution: Re-platform the existing RBDMS products to a web-based architecture that can use cloud-based IT resources. o California has adopted a "Cloud First" policy for new IT projects through its Cloud Computing
Policy. o According to its Cloud Computing Reference Architecture, the benefits of deploying to, and
operating from, cloud-based IT resources include: • Increasing the focus on delivering business value by delegating responsibility for running
and managing of parts of the infrastructure and technology stack to a specialized third party
• Improving business agility by using services on-demand, integrating services, and by making use of scalable computing
• Operational efficiency, resulting from reduced capital expenditure and on-demand usage of IT resources
• Increased operational reliability and resilience, guaranteed by SI_As and supported by state-of-the-art availability, access control and backup solutions
• Environmental efficiency and sustainability, resulting from decreased energy consumption and reduced IT facility footprint
In addition to the above requirements, the Division needs to address infrastructure and solution hosting costs as well as ongoing solution maintenance once the system is implemented. The infrastructure costs are driven by the need for various servers, data storage, and environments for development and deployment, data conversion, performance, and thorough testing by the Division of the WellSTAR solution. This is essential for WellSTAR and is typical industry practice for systems development. WellSTAR's hardware will be hosted by the California Department of Technology's CalCloud which is highly secure and available and is consistent with State policy and standards. To the extent feasible, Department will leverage current existing infrastructure software and licenses. The estimated infrastructure hosting costs for hardware and software are based on the current WellSTAR General Architectural Design. A more definitive infrastructure cost will be defined once the WellSTAR project completes the detailed design during the initial release. As such, the project has allocated a 20% infrastructure contingency to allow for any unknown technical environment changes such as a need for additional servers, additional storage capacity,etc.
Once WellSTAR is in production, the system will be maintained and supported using contractor services combined with Department IT staff as part of operational transition and assumption of ownership to Department IT staff. Ongoing maintenance and operation (M&O) of IT systems is typical for IT projects in California. Once in production, WellSTAR is projecting five (5) full years of ongoing M&O consistent with the Department of Finance's request to demonstrate five (5) years of M&O once WellSTAR is fully implemented. The M&O will be reflected in the Department of Technology's Financial Analysis Worksheets as part of the project approval lifecycle. The project is estimating the post-implementation M&O to be approximately 10% of the total design development, and implementation
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2017-18 Budget Ctiange Proposal Well Statewide Tracking and Reporting (WellSTAR)
costs in its 1^* year, 5% in its 2"̂ ^ year, and $500k on an annual basis. M&O is essential for maintaining the implemented functionality, sustaining the system technologies with the latest updates for optimum performance, and for making any necessary fixes identified by DOGGR during operational use. The M&O estimated cost does not include any functionality enhancements that may result in new or changed legislation, regulation, and/or rulemaking.
REQUESTED POSITIONS
Information Technology
The Department's Enterprise Technology Services Division (ETSD) requests two permanent positions and 12 three year limited term positions to implement the WellSTAR project and provide ongoing support for the new WellSTAR system for the Department. The new WellSTAR system will allow Division staff, operators, various boards, state and federal entities, and the public to search, track, permit, and report on well activity within the State. Over the last several years the Department has experienced significant increases in the requests for access to well information from the public, state and federal entities, and the legislature. The current staffing levels within ETSD are not adequate to meet this increased demand for more transparency. ETSD is not currently able to support the additional project workload or the increased ongoing workload after the project is completed.
As the public demand for data transparency increases, it is imperative that ETSD provide leadership in the area of enterprise architecture. ETSD estimates that it will require two permanent positions to meet this critical need; One Data Processing Manager III (DPM III) and one System Software Specialist III (SSS III). The DPM III will manage and oversee strategic planning for Information Technology (IT) projects and strategies, organizational change impacts, enterprise infrastructure, and application architecture. The SSS III will provide leadership in enterprise IT strategies and practices for architectural governance, enterprise documentation, infrastructure and data migration, lead development teams, and ensure technology aligns with business strategies. The allocation of current ETSD resources is focused on keeping existing systems operational. As the need to effectively manage evolving business and public demands for accurate information and immediate access to that information increases, it is vital that ETSD provide the technical leadership to ensure that the Department's automated systems are operational, maintained, and adapted to current and future business processes. The requested number of new staff is based on current ETSD workload and staffing components and the ability to maintain technology services that meet the Department's program mandates. Without the augmentation of ETSD resources, the Department will not meet the legislative mandates to gather, track, and report regulatory information to Department staff, federal and state stakeholders, and the public. The redirection of ETSD resources to assume the additional workload introduced by the WellSTAR system would seriously jeopardize existing Department workload and initiatives.
Data Processing Manager III Enterprise Architecture - 1 Permanent
The DPM III will manage and oversee strategic planning for IT projects and strategies, organizational change impacts, enterprise infrastructure, and application architecture. The DPM III will provide high-level management of Department IT projects, and system changes to support critical program mandates and missions. The DPM III will represent the Department to control agencies and directly manage technical staff and various contract staff. The DPM III will be responsible for analyzing complex technical and strategic issues in conjunction with Department program requirements when making recommendations to management and executive staff and when presenting Department issues to control agencies.
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Workload - Data Processing Manager ill Hours to Perform
Total Hours
Plans, organizes, monitors, and directs the activities associated with the development, implementation, and maintenance of the Department architecture and applications. Oversees the administration of Department databases. Leads operational and maintenance support of mission critical applications and essential functions for the Department. Provides direction for technical staff and contract consultants. Assesses technical skills needed for staff to support Department systems. 700 700 Develops project plans, allocates appropriate project resources to manage identified projects, and provides fiscal oversight (budget development, monitoring and reporting) and evaluation of ongoing Department IT projects. Leads and provides consultation to customers and project teams through all project phases including the initiating, planning, executing, monitoring, and closing of IT projects. Oversees project activities and tasks that are performed by the project team, both State staff and external consultants to ensure work efforts are completed timely, within scope and budget. Leads the development of IT proposals. 600 600 Plans, organizes, directs, and provides managerial review of the work performed by staff. Recruits, hires, trains, develops, and provides leadership to staff. Identifies appropriate long-range plans and goals to address succession planning and knowledge transfer. 500 500 Participates in the development of IT strategic and tactical plans that can be used to satisfy the Department's business goals and objectives. Assists in developing, implementing, enforcing, and maintaining policies, processes, standards, and procedures related to technology. 200 200
Total Workload Hours 2,000 2,000
Systems Software Specialist III (Technical) Enterprise Architect-1 Permanent
The SSS III will be the enterprise architect for the Department. The SSS III will ensure any future changes to the new WellSTAR system and all other Department systems are architecturally structured and designed to meet the Department's current and future legislative mandates and mission critical functions. The SSS III will conduct strategic planning and align IT with business strategies, information workflows, and identify and mitigate known risks. The SSS III will lead IT development projects and provide operational support to maintain existing applications and databases. The SSS III will provide support to technical staff and will serve as the highest level of technical review and approval of any changes that will be applied to the Department's applications and databases. This position will provide technical expertise and project management to the most complex Department initiatives and projects.
The SSS III will be the main point of contact for the Department's internal and external technical staff and business staff. The SSS III will ensure infrastructure and applications are scalable and reliable, plan and design the architecture, code the most complex applications and user interfaces, manage integration of multiple applications and identify technological risks that could jeopardize the growth or operations of the Department. The SSS III will oversee quality assurance efforts throughout the system development life cycle to ensure the quality assurance efforts consistently result in increased customer confidence and satisfaction in technology products and services.
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2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
The workload for the SSS III and the average time to perform each job function are listed below;
Workload - System Software Specialist III/ Enterprise Architect / Lead Developer
Hours to Perform Frequency
Total Hours
Conducts strategic planning and aligns IT with business strategies, information workflows, and identifies risks. 40 6 240 Architects and analyzes infrastructure and database changes, analyzes change impacts and system enhancements. 60 6 360 Facilitates project planning, leads joint application development sessions with Department staff to identify and define business, user, system, and security requirements. 50 12 600 Oversees and performs software coding and database changes, reports, enhancements, installations, software testing, and quality assurance. 40 12 480 Oversees infrastructure and application capacity tuning and leads the execution of application recovery to ensure high application availability. 60 2 120 Oversees and provides technical training to development staff.
20 10 200
Total Workload Hours 2,000
Program Technician 11-12 Limited Term (3 years)
The Division tracks well information on over 238,000 existing wells within the State. The well information currently tracked in multiple systems is critical to meet the Division's program mandates and to ensure the health and safety of the citizens of California. To ensure the quality of information within the new WellSTAR system, a comprehensive Data Cleansing effort is required. This effort is for the cleansing of data currently existing in the legacy systems to be converted into the new WellSTAR system. The Division's existing well information data exists in various formats and in multiple legacy systems. Validation of the quality of the existing data to ensure that it is in a consistent format for conversion into the new WellSTAR system must be performed by business subject matter experts, in order to meet the project implementation dates, the Division is requesting 12 limited-term Program Technician lis (PT lis).
The PT II staff will be responsible for investigating existing data discrepancies, validating the accuracy of data cleansing routines, or manually entering the data corrections. In addition, the PT II staff will be responsible for entering directional data for wells that currently only exist in paper files. Based on this critical one-time effort, there is a need for 12 limited-term PT lis to meet the workload requirements for the WellSTAR project. The Division does not have the staff necessary for this additional workload required by the WellSTAR project. It is estimated that this Data Cleansing would take 12-15 years to complete without this augmentation.
Program Technician 11 - 12 limited-term Time (Hours)
#of items
Total Hours
Identify existing data discrepancies and related resolutions 3.0 200 600 Define data correction routines 1.0 300 300 Validate cleansed data 0.5 6,000 3,000 Manually correct data 0.2 2,500 500 Input Directional Survey Data from paper files 1.0 20,000 20,000 TOTAL Workload Hours 24,700 Staffing Need 12.0
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2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
E. Outcomes and Accountabi l i ty
Appropriated funds will be subject to budgetary and fiscal controls such as appropriation limits, expenditure authority, and expenditure tracking reports. The Division will work closely with CDT staff to ensure that proper State procedures are used in the development of the WellSTAR. The project will be subject to review and approval by CDT.
F. Analysis of All Feasible Alternatives
Alternative 1. Do not approve this request.
Pros: • No fiscal impact to the Oil, Gas, and Geothermal Administrative Fund. • No increase in the size of State government.
Cons: • The Division will be significantly hindered in meeting its new legislative requirements. • The Division would be unable to adequately perform regulatory oversight of the oil and gas
industry. • This alternative continues to leave a void in State agency oversight capabilities. • Not responsive to general public, industry, and the relevant agencies at the federal, State, and
local levels.
Alternative 2. Provide 2.0 permanent posit ions, three year funding for 12.0 Program Technician II posit ions, and $21,087,000 in 2017-18, $15,012,000 in 2018-19, $5,545,000 in 2019-20, $2,540,000 in 2020-21, and $1,327,000 ongoing, f rom the Oil, Gas, and Geothermal Administrat ive Fund.
Pros: • Would ensure the Division can meet its statutory mandates. • Would provide necessary resources (tools and technology) to facilitate the new regulations and
program oversight to address well stimulation and other oil and gas production activities. • Would allow the Division to better serve the general public for information and Public Records
Act requests. • Would enhance the Division's ability to conduct more timely reviews and determinations of
project applications. • Would better protect California's natural resources, public health and safety, and increase
transparency and disclosure of data to the public.
Cons: • Would have a fiscal impact to the Oil, Gas, and Geothermal Administrative Fund.
Alternative 3. Provide a one-time appropriat ion of $150,000,000 for a custom system from the Oil, Gas, and Geothermal Administrat ive Fund.
Pros:
• Provides funding to develop WellSTAR.
Cons: • Will take longer to implement than WellSTAR. • Does not allow the Department to take advantage of investments made in product by other
states. • Requires a larger IT staff to maintain. • Will be tied to a specific technology that may not be sustainable in the future, putting long term
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2017-18 Budget Change Proposal Well Statewide Tracking and Reporting (WellSTAR)
G. Implementation Plan
The Division would implement the WellStar database operations and meet its legislative mandates.
H. Supplemental Information
None.
I. Recommendation
The Department recommends Alternative #2. Provide 2.0 permanent positions, three year funding for 12.0 PT II positions, and an appropriation of $21,087,000 in 2017-18, $15,012,000 in 2018-19, $5,545,000 in 2019-20, $2,540,000 in 2020-21, and $1,327,000 ongoing from the Oil, Gas, and Geothermal Administrative Fund.
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BCP Fiscal Detail Sheet BCP Title: Well Statewide Tracking and Reporting (WellSTAR) BR Name: 3480-005-BCP-2017-GB
Budget Request Summary FY17 CY BY BY+1 BY+2 BY+3 BY+4
