SECTIONS 3200-3238 - California Statutes

PUBLIC RESOURCES CODE

SECTION 3200-3238

3200. An owner or operator of a well or production facility shall
designate an agent, giving his or her address, who resides in this
state, to receive and accept service of all orders, notices, and
processes of the supervisor or a court of law. Every person so
appointing an agent shall, within five days after the termination of
the agency, notify the supervisor, in writing, of the termination,
and unless operations are discontinued, shall appoint a new agent.

3201. The operator of a well or production facility shall notify
the supervisor or the district deputy, in writing, in such form as
the supervisor or the district deputy may direct, of the sale,
assignment, transfer, conveyance, exchange, or other disposition of
the well or production facility by the operator of the well or
production facility as soon as is reasonably possible, but in no
event later than the date that the sale, assignment, transfer,
conveyance, exchange, or other disposition becomes final. The
operator shall not be relieved of responsibility for the well or
production facility until the supervisor or the district deputy
acknowledges the sale, assignment, transfer, conveyance, exchange, or
other disposition, in writing, and the person acquiring the well or
production facility is in compliance with Section 3202. The operator'
s notice shall contain all of the following:
(a) The name and address of the person to whom the well or
production facility was or will be sold, assigned, transferred,
conveyed, exchanged, or otherwise disposed.
(b) The name and location of the well or production facility, and
a description of the land upon which the well or production facility
is situated.
(c) The date that the sale, assignment, transfer, conveyance,
exchange, or other disposition becomes final.
(d) The date when possession was or will be relinquished by the
operator as a result of that disposition.

3202. A person who acquires the right to operate a well or
production facility, whether by purchase, transfer, assignment,
conveyance, exchange, or other disposition, shall, as soon as it is
reasonably possible, but not later than the date when the acquisition
of the well or production facility becomes final, notify the
supervisor or the district deputy, in writing, of the person's
operation. The acquisition of a well or production facility shall not
be recognized as complete by the supervisor or the district deputy
until the new operator provides all of the following material:
(a) The name and address of the person from whom the well or
production facility was acquired.
(b) The name and location of the well or production facility, and
a description of the land upon which the well or production facility
is situated.
(c) The date when the acquisition becomes final.
(d) The date when possession was or will be acquired.
(e) An indemnity bond for each idle well. The bond shall be in an
amount as provided in Section 3204 or 3205. The conditions of the
bond shall be the same as the conditions stated in Section 3204. An
operator that has provided an individual bond required by this
subdivision in an amount as provided in Section 3204 shall not be
required additionally to comply with the requirements of Section
3206. An operator who has provided a blanket indemnity bond in the
minimum amount required in subdivision (a) or (b) of Section 3205
shall additionally comply with Section 3206 for any idle wells not
covered by a bond provided under Section 3204.

3203. (a) The operator of any well, before commencing the work of
drilling the well, shall file with the supervisor or the district
deputy a written notice of intention to commence drilling. Drilling
shall not commence until approval is given by the supervisor or the
district deputy. If the supervisor or the district deputy fails to
give the operator written response to the notice within 10 working
days from the date of receipt, that failure shall be considered as an
approval of the notice and the notice, for the purposes and intents
of this chapter, shall be deemed a written report of the supervisor.
If operations have not commenced within one year of receipt of the
notice, the notice shall be deemed canceled. The notice shall contain
the pertinent data the supervisor requires on printed forms supplied
by the division or on other forms acceptable to the supervisor. The
supervisor may require other pertinent information to supplement the
notice.
(b) After the completion of any well, this section also applies as
far as may be, to the deepening or redrilling of the well, any
operation involving the plugging of the well, or any operations
permanently altering in any manner the casing of the well. The number
or designation of any well, and the number or designation specified
for any well in a notice filed as required by this section, shall not
be changed without first obtaining a written consent of the
supervisor.
(c) If an operator has failed to comply with an order of the
supervisor, the supervisor may deny approval of proposed well
operations until the operator brings its existing well operations
into compliance with the order. If an operator has failed to pay a
civil penalty, remedy a violation that it is required to remedy to
the satisfaction of the supervisor pursuant to an order issued under
Section 3236.5, or to pay any charges assessed under Article 7
(commencing with Section 3400), the supervisor may deny approval to
the operator's proposed well operations until the operator pays the
civil penalty, remedies the violation to the satisfaction of the
supervisor, or pays the charges assessed under Article 7 (commencing
with Section 3400).

3204. Any operator who, on or after January 1, 1999, engages in the
drilling, redrilling, deepening, or in any operation permanently
altering the casing, of any well shall file with the supervisor an
individual indemnity bond in the specified sum for each well so
drilled, redrilled, deepened, or permanently altered. This sum shall
be fifteen thousand dollars ($15,000) for each well less than 5,000
feet deep, twenty thousand dollars ($20,000) for each well at least
5,000 feet but less than 10,000 feet deep, and thirty thousand
dollars ($30,000) for each well 10,000 or more feet deep. The bond
shall be filed with the supervisor at the time of the filing of the
notice of intention to perform work on the well, as provided in
Section 3203. The bond shall be executed by the operator, as
principal, and by an authorized surety company, as surety,
conditioned that the principal named in the bond shall faithfully
comply with all the provisions of this chapter, in drilling,
redrilling, deepening, or permanently altering the casing in any well
or wells covered by the bond, and shall secure the state against all
losses, charges, and expenses incurred by it to obtain such
compliance by the principal named in the bond.
The conditions of the bond shall be stated in substantially the
following language: "If the ____, the above bounden principal, shall
well and truly comply with all the provisions of Division 3
(commencing with Section 3000) of the Public Resources Code and shall
obey all lawful orders of the State Oil and Gas Supervisor or the
district deputy or deputies, subject to subsequent appeal as provided
in that division, and shall pay all charges, costs, and expenses
incurred by the supervisor or the district deputy or deputies in
respect of the well or wells or the property or properties of the
principal, or assessed against the well or wells or the property or
properties of the principal, in pursuance of the provisions of that
division, then this obligation shall be void; otherwise, it shall
remain in full force and effect."

3205. Any operator who engages in the drilling, redrilling,
deepening, or in any operation permanently altering the casing, of
one or more wells at any time, may file with the supervisor one
blanket indemnity bond to cover all the operations in any of its
wells in the state in lieu of an individual indemnity bond for each
operation as required by Section 3204. The bond shall be executed by
the operator, as principal, and by an authorized surety company, as
surety, and shall be in substantially the same language and upon the
same conditions as provided in Section 3204, except as to the
difference in the amount. The bond shall be provided in one of the
following amounts, as applicable:
(a) The sum of two hundred fifty thousand dollars ($250,000),
which does not include the bond or fee required in Section 3206. A
blanket surety bond provided prior to January 1, 1999, shall be
increased to comply with this subdivision on or before January 1,
2001. A blanket cash bond provided prior to January 1, 1999, shall be
increased by a minimum of thirty thousand dollars ($30,000) per
year, initially payable January 1, 2000, and yearly on January 1,
thereafter, until the amount on deposit is sufficient to comply with
this subdivision.
(b) The sum of one hundred thousand dollars ($100,000), which does
not include the bond or fee required in Section 3206, for any
operator having 50 or fewer wells in the state, exclusive of properly
abandoned wells.
(c) The sum of one million dollars ($1,000,000), which does
include the bond or fee required in Section 3206.

3205.1. (a) Notwithstanding Sections 3204 and 3205, any person who
engages in the drilling, redrilling, deepening, or in any operation
permanently altering the casing, of one or more wells located on
submerged lands under ocean waters within the jurisdiction of this
state, shall file with the supervisor a blanket indemnity bond for
two hundred fifty thousand dollars ($250,000) to cover all his or her
operations in drilling, redrilling, deepening, or permanently
altering the casing in any of his or her wells located on those
submerged lands. The bond shall be executed by the person, as
principal, and by an authorized surety company, as surety, and the
conditions of the bond shall be the same as the conditions stated in
Section 3204, except for the difference in the amount.
(b) In addition to providing the bond required by subdivision (a),
any person who operates one or more wells that are located on tide
or submerged lands within the jurisdiction of this state shall
provide an additional amount of security acceptable to the
supervisor, covering the full costs of plugging and abandoning all of
the operator's wells. The supervisor shall determine the amount of
the security required of each operator, based on his or her
determination of the reasonable costs of that plugging and
abandonment. The supervisor may not adjust the amount of security
required of each operator more frequently than once every three
years, to reflect changes in those costs. An operator may self-insure
this security obligation if the supervisor, at his or her
discretion, determines that the operator has sufficient financial
resources to plug and abandon the wells for which the operator is
responsible. The security shall remain in effect until all wells are
plugged and abandoned in accordance with Section 3208, but the
supervisor shall reduce the amount of the security required of an
operator to reflect reduced obligations as wells are plugged and
abandoned.
(c) If the state lease or other agreement that sets forth
obligations or performance requirements under the lease provides
security that is equal to, or greater than, the total of the
additional security required pursuant to subdivision (b), plus all
other liabilities under the lease or other agreement, the supervisor
shall not require the additional security.

3205.2. (a) Notwithstanding Section 3204, any person who engages in
the operation of a class II commercial wastewater disposal well, as
defined in subdivision (d), shall file an indemnity bond with the
supervisor for fifty thousand dollars ($50,000) for each well so
used. The bond shall cover all operations of drilling, redrilling,
deepening, altering casing, maintaining, or abandoning the well and
attendant facilities. The bond shall be executed by the person as the
principal, and by an authorized surety company as the surety, and,
except for differences in the amount, shall be in substantially the
same language and upon the same conditions as provided in Section
3204.
(b) A blanket bond submitted under subdivision (a) or (c) of
Section 3205 may be used in lieu of the bond required in subdivision
(a), except that the termination and cancellation shall be in
accordance with subdivision (c) of this section.
(c) Notwithstanding Section 3207, any bond issued in compliance
with this section may be terminated and canceled and the surety
relieved of all obligations thereunder when the well is properly
abandoned or another valid bond has been substituted therefor.
(d) A class II commercial wastewater disposal well is a well that
is used to dispose of oilfield wastewater for a fee and that is
regulated by the division pursuant to this chapter and Subpart F
(commencing with Section 147.250) of Part 147 of Title 40 of the Code
of Federal Regulations.

3205.5. In lieu of the indemnity bond required by Sections 3204,
3205, 3205.1, 3205.2, and 3206, a deposit may, with the written
approval of the supervisor, be given pursuant to Article 7
(commencing with Section 995.710) of Chapter 2 of Title 14 of Part 2
of the Code of Civil Procedure, other than a deposit of money or
bearer bonds or bearer notes.

3206. (a) The operator of any idle well not covered by an indemnity
bond provided under Section 3204, subdivision (c) of Section 3205,
or subdivision (a) of Section 3205.2 shall do one of the following:
(1) File with the supervisor an annual fee for each idle well
equal to the sum of the following amounts:
(A) One hundred dollars ($100) for each idle well that has been
idle for less than 10 years.
(B) Two hundred fifty dollars ($250) for each idle well that has
been idle for 10 years or longer, but less than 15 years.
(C) Five hundred dollars ($500) for each idle well that has been
idle for 15 years or longer.
(2) Provide an escrow account in a federally insured bank that
does business in, and has an office in, the State of California, by
depositing the amount of five thousand dollars ($5,000) for each idle
well, in the following manner:
(A) The escrow account shall be accessible only by the supervisor
and the money shall be retained in the escrow account exclusively for
use by the supervisor for plugging and abandoning the operator's
idle wells that become deserted pursuant to Section 3237.
(B) The money in the escrow account may be released only by the
supervisor and only in amounts covering any idle well that has
properly been plugged and abandoned, returned to production or
injection or converted to an active observation well, if that money
remaining in the escrow account is sufficient to fully fund the
required deposits for all of the operator's remaining idle wells.
(C) The required deposit for each idle well shall be funded
completely within 10 years of the date the well becomes idle, or 10
years from January 1, 1999, for any well that is idle as of January
1, 1999.
(D) The operator shall fund the escrow account at the rate of at
least five hundred dollars ($500) per well per year.
(E) Failure of an operator in any year to provide the minimum
funding for any idle well shall result in the institution of the
annual fees required by paragraph (1) for that idle well, and all
money already on deposit for that idle well shall be treated as
previously paid annual fees and shall be deposited into the Hazardous
and Idle-Deserted Well Abatement Fund specified in subdivision (b)
for expenditure pursuant to that subdivision.
(3) File with the supervisor an indemnity bond that provides the
sum of five thousand dollars ($5,000) for each idle well. The bond
shall be subject to the conditions provided in Section 3204.
(4) On or before July 1, 1999, file a plan with the supervisor to
provide for the management and elimination of all long-term idle
wells not covered under paragraph (1), (2), or (3).
(A) For the purposes of the plan required by this paragraph,
elimination of an idle well shall be accomplished when the well meets
the requirements of Section 3208.
(B) A plan filed pursuant to this paragraph shall meet all of the
following requirements and conditions:
(i) The plan shall cover a time period of no more than 10 years
and may be renewed annually thereafter, subject to approval by the
supervisor.
(ii) The plan shall be reviewed for performance annually by the
supervisor, and be subject to amendment with the approval of the
supervisor.
(iii) The required rate of long-term idle well elimination shall
be based upon the number of idle wells under the control of an
operator on January 1 of each year, as specified in clause IV. The
supervisor may require additional well testing requirements as part
of the plan.
(iv) The plan shall require that operators with 10 or fewer idle
wells eliminate at least one long-term idle well every two years;
operators with 11 to 20, inclusive, idle wells eliminate at least one
long-term idle well each year; operators with 21 to 50, inclusive,
idle wells eliminate at least two long-term idle wells each year;
operators with 51 to 100, inclusive, idle wells eliminate at least
five long-term idle wells each year; operators with 101 to 250,
inclusive, idle wells eliminate at least 10 long-term wells each
year; and operators with more than 250 idle wells eliminate at least
4 percent of their long-term idle wells each year.
(v) An operator who complies with the plan is exempt from any
increased idle well bond or fee requirements.
(vi) An operator who fails to comply with the plan, as determined
by the supervisor after the annual performance review, is not
eligible to use the requirements of this paragraph, for purposes of
compliance with this section, for any of its idle wells. That
operator shall immediately provide one of the alternatives in
paragraph (1), (2), or (3) for its idle wells and may not propose a
new idle well plan for the next five years. An operator may appeal to
the director pursuant to Article 6 (commencing with Section 3350)
regarding the supervisor's rejection of a plan and plan amendments
and the supervisor's determinations of the operator's failure to
comply with a plan.
(b) All fees received under this section shall be deposited in the
Hazardous and Idle-Deserted Well Abatement Fund, which is hereby
created in the State Treasury. Notwithstanding Section 13340 of the
Government Code, the moneys in the Hazardous and Idle-Deserted Well
Abatement Fund are hereby continuously appropriated to the department
for expenditure without regard to fiscal year, to mitigate a
hazardous or potentially hazardous condition by well plugging and
abandonment.
(c) Failure to file, for any well, the bond or fee required under
this section shall be conclusive evidence of desertion of the well,
permitting the supervisor to order the well abandoned.
(d) Nothing in this section prohibits a local agency from
collecting a fee for regulation of wells.

3206.5. (a) Any city or county may request from the supervisor a
list of those wells within its jurisdiction which have not
continuously produced oil or natural gas, or have not been utilized
continuously for injection purposes for a six-month period during any
consecutive 10-year period prior to or after January 1, 1991.
(b) After receiving the list from the supervisor, the city or
county may identify idle wells within its jurisdiction which it has
determined, based on a competent, professional evaluation, have no
reasonable expectation of being reactivated, and formally request the
supervisor to make a determination whether the wells should be
plugged and abandoned.
(c) Upon receiving the written request of a city or county, as
specified in subdivision (b):
(1) The supervisor may, within 60 days of receiving a written
request from a city or county, require the operator or operators to
file a statement for each well outlining those reasons why the wells
should not be plugged and abandoned.
(2) The supervisor shall, within 120 days of receiving a written
request, make a determination as to whether any of these wells should
be plugged and abandoned, pursuant to the criteria contained in this
chapter.
(d) Failure of the operator to file, for any well, the statement
required under this section shall be conclusive evidence of desertion
of the well, thereby permitting the supervisor to order the well
abandoned.

3207. Any individual or blanket indemnity bond issued in compliance
with this chapter may be terminated and canceled and the surety be
relieved of all obligations thereunder when the well or wells covered
by such bond have been properly completed or abandoned or another
valid bond has been substituted therefor. Should the person who has
filed a blanket bond properly complete or abandon a portion of his
wells covered by the bond, the bond may be terminated and canceled
and the surety be relieved of all obligations thereunder upon the
filing by such person of an individual bond for each well which is
still not producing or which he is still engaged in drilling,
redrilling, deepening, or permanently altering the casing. Liability
as to individual wells that have been completed or drilled and
abandoned under a blanket bond may also be terminated.

3208. For the purposes of Section 3207, a well is properly
completed when it has been shown, to the satisfaction of the
supervisor, that the manner of producing oil or gas or injecting
fluids into the well is satisfactory and that the well has maintained
production of oil or gas or injection for a continuous six-month
period. A well is properly abandoned when it has been shown, to the
satisfaction of the supervisor, that all proper steps have been taken
to isolate all oil-bearing or gas-bearing strata encountered in the
well, and to protect underground or surface water suitable for
irrigation or farm or domestic purposes from the infiltration or
addition of any detrimental substance and to prevent subsequent
damage to life, health, property, and other resources.

3208.1. (a) To prevent, as far as possible, damage to life, health,
and property, the supervisor or district deputy may order the
reabandonment of any previously abandoned well if the supervisor or
the district deputy has reason to question the integrity of the
previous abandonment.
The operator responsible for plugging and abandoning deserted
wells under Section 3237 shall be responsible for the reabandonment
except in the following situations:
(1) The supervisor finds that the operator plugged and abandoned
the well in conformity with the requirements of this division in
effect at the time of the plugging and abandonment and that the well
in its current condition presents no immediate danger to life,
health, and property but requires additional work solely because the
owner of the property on which the well is located proposes
construction on the property that would prevent or impede access to
the well for purposes of remedying a currently perceived future
problem. In this situation, the owner of the property on which the
well is located shall be responsible for the reabandonment.
(2) The supervisor finds that the operator plugged and abandoned
the well in conformity with the requirements of this division in
effect at the time of the plugging and abandonment and that
construction over or near the well preventing or impeding access to
it was begun on or after January 1, 1988, and the property owner,
developer, or local agency permitting the construction failed either
to obtain an opinion from the supervisor or district deputy as to
whether the previously abandoned well is required to be reabandoned
or to follow the advice of the supervisor or district deputy not to
undertake the construction. In this situation, the owner of the
property on which the well is located shall be responsible for the
reabandonment.
(3) The supervisor finds that the operator plugged and abandoned
the well in conformity with the requirements of this division in
effect at the time of the plugging and abandonment and after that
time someone other than the operator or an affiliate of the operator
disturbed the integrity of the abandonment in the course of
developing the property, and the supervisor is able to determine
based on credible evidence, including circumstantial evidence, the
party or parties responsible for disturbing the integrity of the
abandonment. In this situation, the party or parties responsible for
disturbing the integrity of the abandonment shall be responsible for
the reabandonment.
(b) Except for the situations listed in paragraphs (1), (2), and
(3) of subdivision (a), nothing in this section precludes the
application of Article 4.2 (commencing with Section 3250) when its
application would be appropriate.

3209. The provisions of Section 3207 as to termination and
cancellation shall also apply to all bonds which have been heretofore
filed with the supervisor as then provided by law.

3210. The owner or operator of any well shall keep, or cause to be
kept, a careful and accurate log, core record, and history of the
drilling of the well.

3211. The log shall show the character and depth of the formation
passed through or encountered in the drilling of the well. The log
shall show completely the amounts, kinds, and size of casing used,
the depth at which oil-bearing or gas-bearing strata are encountered,
the depth and character of the strata, and whether all water
overlying and underlying the oil-bearing or gas-bearing strata was
successfully and permanently shut off so as to prevent the
percolation or penetration of water into the oil-bearing or
gas-bearing strata; and whether strata bearing water that might be
suitable for irrigation or domestic purposes are properly protected
from the infiltration or addition of detrimental substances from the
well.

3212. The core record shall show the depth, character, and fluid
content of cores obtained, so far as determined.

3213. The history shall show the location and amount of sidetracked
casings, tools, or other material, the depth and quantity of cement
in cement plugs, the shots of dynamite or other explosives, and the
results of production and other tests during drilling operations.

3214. The log 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.

3215. Within 60 days after the date of cessation of drilling,
rework, or abandonment operations, or the date of suspension of
operations, true copies of the log, core record, and history of work
performed, and, if made, true and reproducible copies of all
electrical, physical, or chemical logs, tests, or surveys in such
form as the supervisor may approve shall be filed with the district
deputy. Upon a showing of hardship, the supervisor may extend the
time within which to comply with the provisions of this section for a
period not to exceed 60 additional days.

3216. The owner or operator of any well, or his local agent, shall
file with the supervisor a copy of the log, history, and core record,
or any portion thereof, at any time after the commencement of the
work of drilling any well upon written request of the supervisor, or
the district deputy. The request shall be signed by the supervisor,
or the district deputy, and served either personally, or by mailing a
copy of the request, by registered mail, to the last known post
office address of the owner or operator, or his agent.

3219. Any person engaged in operating any oil or gas well wherein
high pressure gas is known to exist, and any person drilling for oil
or gas in any district where the pressure of oil or gas is unknown
shall equip the well with casings of sufficient strength, and with
such other safety devices as may be necessary, in accordance with
methods approved by the supervisor, and shall use every effort and
endeavor effectually to prevent blowouts, explosions, and fires.

3219.5. (a) On or before July 1, 2001, the Department of
Conservation shall report to the Governor and the Legislature on
options for ensuring the existence of blowout insurance for persons
engaged in drilling or redrilling exploratory oil and gas wells in
areas where abnormally high or unknown subsurface pressure gradients
exist. The report shall consider all of the following:
(1) Types of insurance policies, which include control of well
policies and policies that cover personal injury and property damage
resulting from a catastrophic well blowout occurrence.
(2) Methods of setting insurance policy amounts.
(3) Forms of insurance, including third-party insurance, provision
of an operator's proof of ability to respond in damages, a
combination thereof, or other options.
(4) Areas of the state where abnormally high pressure gradients
exist, or where insufficient data exists to draw conclusions
regarding the subsurface pressure gradient.
(5) Any other factors the department deems appropriate to include
in the report.
(b) The Department of Conservation shall consult with
representatives of the oil industry and insurers in developing the
report's recommendations.

3220. The owner or operator of any well on lands producing or
reasonably presumed to contain oil or gas shall properly case it with
water-tight and adequate casing, in accordance with methods approved
by the supervisor or the district deputy, and shall, under his
direction, shut off all water overlying and underlying oil-bearing or
gas-bearing strata and prevent any water from penetrating such
strata. The owner or operator shall also use every effort and
endeavor to prevent damage to life, health, property, and natural
resources; to shut out detrimental substances from strata containing
water suitable for irrigation or domestic purposes and from surface
water suitable for such purposes; and to prevent the infiltration of
detrimental substances into such strata and into such surface water.

3222. The owner or operator of any well shall, at the request of
the supervisor, demonstrate that water from any well is not
penetrating oil-bearing or gas-bearing strata or that detrimental
substances are not infiltrating into underground or surface water
suitable for irrigation or domestic purposes. The owner or operator
shall give the district deputy adequate notice of the time at which
he will demonstrate the test for shutoff in the well.

3223. The district deputy or an inspector designated by the
supervisor may be present at the test for shutoff. If the test is
personally witnessed by the district deputy or an inspector at the
site of the well, such district deputy or inspector shall make a
report in writing of the result to the supervisor. A duplicate of the
report shall be delivered to the owner.
If any test is unsatisfactory to the supervisor, he shall so
notify the owner or operator and shall within five days after the
completion of the test, order any additional work and tests necessary
to properly shut off the well. In the order the supervisor shall
designate a day upon which the owner or operator shall again test for
shutoff, which day may, upon the application of the owner or
operator, be changed from time to time at the discretion of the
district deputy.

3224. The supervisor shall order such tests or remedial work as in
his judgment are necessary to prevent damage to life, health,
property, and natural resources; to protect oil and gas deposits from
damage by underground water; or to prevent the escape of water into
underground formations, or to prevent the infiltration of detrimental
substances into underground or surface water suitable for irrigation
or domestic purposes, to the best interests of the neighboring
property owners and the public. The order shall be in writing, signed
by the supervisor. It shall be served upon the owner of the well, or
his local agent, either personally or by mailing a copy of the order
to the post office address given at the time the local agent is
designated. If no local agent has been designated, the order shall be
served by mailing a copy to the last known post office address of
the owner, or if the owner is unknown, by posting a copy in a
conspicuous place upon the property, and publishing it once a week
for two successive weeks in some newspaper of general circulation
throughout the county in which the well is located. The order shall
specify the conditions sought to be remedied and the work necessary
to protect such deposits from damage from underground water.

3225. (a) An order of the supervisor or a district deputy issued
pursuant to this chapter shall provide a clear and concise recitation
of the acts or omissions with which the operator is charged. The
order shall state all penalties and requirements imposed on the
operator in connection with the acts or omissions charged and the
order shall provide references to the provisions of this code and the
regulations that support the imposition of the penalties and
requirements.
(b) An order requiring an operator to cease and desist operations
pursuant to Section 3270.3 shall specify the operations that the
operator is required to cease and desist and shall provide a detailed
explanation of the steps that the operator shall take before the
supervisor will permit the operations to resume.
(c) An order of the supervisor or a district deputy shall be in
writing and shall be served on the operator by personal service or by
certified mail.
(d) When the supervisor or a district deputy issues a written
order concerning an operation, an appeal may be made from the order
pursuant to the procedures contained in Article 6 (commencing with
Section 3350). The order shall inform the operator of its right to
appeal the order.

3226. Within 30 days after service of an order pursuant to Sections
3224 and 3225, or Section 3237, or if there has been an appeal from
the order to the director, within 30 days after service of the
decision of the director, or if a review has been taken of the order
of the director, within 10 days after affirmance of the order, the
owner or operator shall commence in good faith the work ordered and
continue it until completion. If the work has not been commenced and
continued to completion, the supervisor may appoint necessary agents
to enter the premises and perform the work. An accurate account of
the expenditures shall be kept. Any amount so expended shall
constitute a lien against real or personal property of the operator
pursuant to the provisions of Section 3423.
Notwithstanding any other provisions of Section 3224, 3225, or
3237, if the supervisor determines that an emergency exists, the
supervisor may order or undertake the actions he or she deems
necessary to protect life, health, property, or natural resources.

3227. The owner of any well shall file with the supervisor, on or
before the last day of each month, for the last preceding calendar
month, a statement, in the form designated by the supervisor, showing
all of the following:
(a) The amount of oil and gas produced from each well during the
period indicated, together with the gravity of the oil, the amount of
water produced from each well, estimated in accordance with methods
approved by the supervisor, and the number of days during which fluid
was produced from each well.
(b) The number of wells drilling, producing, injecting, or idle,
that are owned or operated by the person.
(c) What disposition was made of the gas produced from each field,
including the names of persons, if any, to whom the gas was
delivered, and any other information regarding the gas and its
disposition that the supervisor may require.
(d) What disposition was made of the water produced from each
field, and the amount of fluid or gas injected into each well used
for enhanced recovery, underground storage of hydrocarbons, or waste
water disposal and any other information regarding those wells that
the supervisor may require.
Any operator that produces oil by the application of mining or
other unconventional techniques shall file a report with the
supervisor, on or before March 1 of each year, showing the amount of
oil produced by those techniques in the preceding calendar year.
Upon request and making a satisfactory showing therefor, a longer
filing period may be established by the supervisor for any particular
owner or operator.

3227.5. The supervisor shall compile from statements filed pursuant
to Section 3227 and publish monthly statistics, within 90 days of
the end of each calendar month, showing the amount of oil and gas
produced in the state by field and pool, together with the number of
wells producing or idle, all separately stated as to field and pool,
with any other information that the supervisor deems proper.

3227.6. As used in Sections 3227 and 3227.5, the following terms
have the following meaning:
(a) "Field" means the same general surface area which is
underlain, or reasonably appears to be underlain, by one or more
pools.
(b) "Pool" means an underground reservoir containing, or appearing
at the time of determination to contain, a common accumulation of
crude petroleum oil or natural gas or both. Each zone of a general
structure which is separated from any other zone in the structure is
a separate pool.

3228. Before abandoning any well in accordance with methods
approved by the supervisor or the district deputy, and under his or
her direction, the owner or operator shall isolate all oil-bearing or
gas-bearing strata encountered in the well and shall use every
effort and endeavor to protect any underground or surface water
suitable for irrigation or domestic purposes from the infiltration or
addition of any detrimental substances.

3229. Before commencing any work to abandon any well, the owner or
operator shall file with the supervisor or the district deputy a
written notice of intention to abandon the well. Abandonment shall
not proceed until approval is given by the supervisor or the district
deputy. If the supervisor or the district deputy does not give the
owner or operator a written response to the notice of intention
within 10 working days, the proposed abandonment shall be deemed to
have been approved and the notice of intention shall for the purposes
of this chapter be deemed a written report of the supervisor. If
abandonment operations have not commenced within one year of receipt
of the notice of intention, the notice of intention shall be deemed
canceled.

3230. The notice of intention to abandon shall contain the
following information:
(a) The total depth of the well to be abandoned.
(b) The complete casing record of the well, including plugs.
(c) Such other pertinent data as the supervisor may require on
printed forms supplied by the division or on other forms acceptable
to the supervisor.

3232. The supervisor or the district deputy shall, within 10 days
after the receipt of a written report of abandonment, furnish the
owner or operator with a written final approval of abandonment, or a
written disapproval of abandonment, setting forth the conditions upon
which the disapproval is based.
Failure to abandon in accordance with the approved method of
abandonment, or failure to notify the supervisor or the district
deputy of any test required by the final approval of abandonment to
be witnessed by the supervisor, the district deputy, or his or her
inspector, or failure to furnish the supervisor or the district
deputy, at his or her request, with any information regarding the
condition of the well, shall constitute sufficient grounds for
disapproval of the abandonment.

3233. (a) The division may develop field rules which establish
volumetric thresholds for emergency reporting by the operator of oil
discharges to land associated with onshore drilling, exploration, or
production operations, where the oil discharges, because of the
circumstances established pursuant to paragraph (1) of subdivision
(c), cannot pass into or threaten the waters of the state. The
division may not adopt field rules under this section, unless the
State Water Resources Control Board and the Department of Fish and
Game first concur with the volumetric reporting thresholds contained
in the proposed field rules. Subchapter 1 (commencing with Section
1710) of Chapter 4 of Division 2 of Title 14 of the California Code
of Regulations shall apply to the adoption and implementation of
field rules authorized by this section.
(b) The authority granted to the division pursuant to subdivision
(a) shall apply solely to oil fields located in the San Joaquin
Valley, as designated by the division. The division shall adopt the
field rules not later than January 1, 1998.
(c) For purposes of implementing this section, the division, the
State Water Resources Control Board, and the Department of Fish and
Game shall enter into an agreement that defines the process for
establishing both of the following:
(1) The circumstances, such as engineered containment, under which
oil discharges cannot pass into or threaten the waters of this
state.
(2) The volumetric reporting thresholds that are applicable under
the circumstances established pursuant to paragraph (1).
(d) In no case shall a reporting threshold established in the
field rules, where the oil discharge cannot pass into or threaten the
waters of this state, be less than one barrel (42 gallons), unless
otherwise established by federal law or regulation. Until field rules
are adopted, emergency reporting of oil discharges shall continue as
required by existing statute and regulations.
(e) An operator who discharges oil in amounts less than the
volumetric thresholds adopted by the division pursuant to this
section is exempt from all applicable state and local reporting
requirements. Discharges of oil in amounts equal to, or greater than,
the volumetric thresholds adopted by the division pursuant to this
section shall be immediately reported to the California Emergency
Management Agency which shall inform the division and other local or
state agencies as required by Section 8589.7 of the Government Code.
Reporting to the California Emergency Management Agency shall be
deemed to be in compliance with all applicable state and local
reporting requirements.
(f) Oil discharges below the reporting thresholds established in
the field rules shall be exempt from the emergency notification or
reporting requirements, and any penalties provided for nonreporting,
established under paragraph (1) of subdivision (a) of Section 13260
of the Water Code, subdivisions (a), (c), and (e) of Section 13272 of
the Water Code, Section 25507 of the Health and Safety Code,
Sections 8670.25.5 and 51018 of the Government Code, and subdivision
(h) of Section 1722 of Title 14 of the California Code of
Regulations. Oil discharge reporting requirements under Section 51018
of the Government Code shall be applicable if a spill involves a
fire or explosion.
(g) This section shall not affect existing reporting or
notification requirements under federal law.
(h) Nothing in this section shall be construed to relieve any
party of any responsibility established by statute, regulation, or
order, to clean up or remediate any oil discharge, whether reportable
or exempt pursuant to this section.
(i) Reporting provided pursuant to this section is not intended to
prohibit any department or agency from seeking and obtaining any
supplemental postreporting information to which the department or
agency might otherwise be entitled.
(j) For purposes of this section, "oil" means naturally occurring
crude oil.

3234. (a) (1) Except as otherwise provided in this section, all the
well records, including production reports, of any owner or operator
which are filed pursuant to this chapter are public records for
purposes of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).
(2) Those records are public records when filed with the division
unless the owner or operator requests, in writing, that the division
maintain the well records of onshore exploratory wells or offshore
exploratory wells as confidential information. The records of other
wells may be maintained as confidential information if, based upon
information in a written request of the owner or operator, the
supervisor determines there are extenuating circumstances. For
onshore wells, the confidential period shall not exceed two years
from the cessation of drilling operations as defined in subdivision
(e). For offshore wells, the confidential period shall not exceed
five years from the cessation of drilling operations as specified in
subdivision (e).
(3) Well records maintained as confidential information by the
division shall be open to inspection by those persons who are
authorized by the owner or operator in writing. Confidential status
shall not apply to state officers charged with regulating well
operations, the director, or as provided in subdivision (c).
(4) On receipt by the supervisor of a written request documenting
extenuating circumstances relating to a particular well, including a
well on an expired or terminated lease, the supervisor may extend the
period of confidentiality for six months. For onshore wells, the
total period of confidentiality, including all extensions, shall not
exceed four years from the cessation of drilling operations as
specified in subdivision (e), and for offshore wells the total period
of confidentiality, including all extensions, shall not exceed seven
years from the cessation of drilling operations as specified in
subdivision (e), unless the director approves a longer period after a
30-day public notice and comment period. The director shall initiate
and conduct a public hearing on receipt of a written complaint.
(b) Notwithstanding the provisions of subdivision (a) regarding
the period of confidentiality, the well records for onshore and
offshore wells shall become public records when the supervisor is
notified that the lease has expired or terminated.
(c) Production reports filed pursuant to Section 3227 shall be
open to inspection by the State Board of Equalization or its duly
appointed representatives when making a survey pursuant to Section
1815 of the Revenue and Taxation Code or when valuing state-assessed
property pursuant to Section 755 of the Revenue and Taxation Code,
and by the assessor of the county in which a well referred to in
Section 3227 is located.
(d) For the purposes of this section, "well records" does not
include either experimental logs and tests or interpretive data not
generally available to all operators, as defined by the supervisor by
regulation.
(e) The cessation of drilling operations occurs on the date of
removal of drilling machinery from the well site.

3235. The supervisor may upon his own initiative or shall upon
receipt of a written complaint from a person owning land or operating
wells within a radius of one mile of any well or group of wells
complained against make an investigation of the well or wells
involved. The supervisor shall make a written report and order,
stating the work required to repair the damage complained of, or
stating that no work is required.
A copy of the order shall be delivered to the complainant, or if
more than one, to each complainant, and, if the supervisor orders the
damage repaired, a copy of the order shall be delivered to each of
the owners, operators, or agents having in charge the well or wells
upon which the work is to be done.
The order shall contain a statement of the conditions sought to be
remedied or repaired and a statement of the work required by the
supervisor to repair the condition. Service shall be made by mailing
copies to such persons at the post office address given.

3236. Any owner or operator, or employee thereof, who refuses to
permit the supervisor or the district deputy, or his inspector, to
inspect a well, or who willfully hinders or delays the enforcement of
the provisions of this chapter, and every person, whether as
principal, agent, servant, employee, or otherwise, who violates,
fails, neglects, or refuses to comply with any of the provisions of
this chapter, or who fails or neglects or refuses to furnish any
report or record which may be required pursuant to the provisions of
this chapter, or who willfully renders a false or fraudulent report,
is guilty of a misdemeanor, punishable by a fine of not less than one
hundred dollars ($100), nor more than one thousand dollars ($1,000),
or by imprisonment for not exceeding six months, or by both such
fine and imprisonment, for each such offense.

3236.5. (a) A person who violates this chapter or a regulation
implementing this chapter is subject to a civil penalty not to exceed
twenty-five thousand dollars ($25,000) for each violation. An act of
God and an act of vandalism beyond the reasonable control of the
operator shall not be considered a violation. The civil penalty shall
be imposed by an order of the supervisor pursuant to Section 3225
upon a determination that a violation has been committed by the
person charged. The imposition of a civil penalty under this section
shall be in addition to any other penalty provided by law for the
violation. When establishing the amount of the civil penalty pursuant
to this section, the supervisor shall consider, in addition to other
relevant circumstances, all of the following:
(1) The extent of harm caused by the violation.
(2) The persistence of the violation.
(3) The pervasiveness of the violation.
(4) The number of prior violations by the same violator.
(b) An order of the supervisor imposing a civil penalty shall be
reviewable pursuant to Article 6 (commencing with Section 3350). When
the order of the supervisor has become final and the penalty has not
been paid, the supervisor may apply to the appropriate superior
court for an order directing payment of the civil penalty. The
supervisor may also seek from the court an order directing that
production from the well or use of the production facility that is
the subject of the civil penalty order be discontinued until the
violation has been remedied to the satisfaction of the supervisor and
the civil penalty has been paid.
(c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.

3237. (a) (1) The supervisor or district deputy may order the
plugging and abandonment of a well that has been deserted whether or
not any damage is occurring or threatened by reason of that deserted
well. The supervisor or district deputy shall determine from credible
evidence whether a well is deserted.
(2) For purposes of paragraph (1), "credible evidence" includes,
but is not limited to, the operational history of the well, the
response or lack of response of the operator to inquiries and
requests from the supervisor or district deputy, the extent of
compliance by the operator with the requirements of this chapter, and
other actions of the operator with regard to the well.
(3) A rebuttable presumption of desertion arises in any of the
following situations:
(A) If a well has not been completed to production or injection
and drilling machinery have been removed from the well site for at
least six months.
(B) If a well's production or injection equipment has been removed
from the well site for at least two years.
(C) If an operator has failed to comply with an order of the
supervisor within the time provided by the order or has failed to
challenge the order on a timely basis.
(D) If an operator fails to designate an agent as required by
Section 3200.
(E) If a person who is to acquire a well that is subject to a
purchase, transfer, assignment, conveyance, exchange, or other
disposition fails to comply with Section 3202.
(F) If an operator has failed to maintain the access road to a
well site passable to oilfield and emergency vehicles.
(4) The operator may rebut the presumptions of desertion set forth
in paragraph (3) by demonstrating with credible evidence compliance
with this division and that the well has the potential for commercial
production, including specific and detailed plans for future
operations, and by providing a reasonable timetable for putting those
plans into effect. The operator may rebut the presumption set forth
in subparagraph (F) of paragraph (3) by repairing the access road.
(b) An order to plug and abandon a deserted well may be appealed
to the director pursuant to the procedures specified in Article 6
(commencing with Section 3350).
(c) (1) The current operator, as determined by the records of the
supervisor, of a deserted well that produced oil, gas, or other
hydrocarbons or was used for injection is responsible for the proper
plugging and abandonment of the well. If the supervisor determines
that the current operator does not have the financial resources to
fully cover the cost of plugging and abandoning the well, the
immediately preceding operator shall be responsible for the cost of
plugging and abandoning the well.
(2) The supervisor may continue to look seriatim to previous
operators until an operator is found that the supervisor determines
has the financial resources to cover the cost of plugging and
abandoning the well. However, the supervisor may not hold an operator
responsible that made a valid transfer of ownership of the well
prior to January 1, 1996.
(3) For purposes of this subdivision, "operator" includes a
mineral interest owner who shall be held jointly liable for the well
if the mineral interest owner has or had leased or otherwise conveyed
the working interest in the well to another person, if in the lease
or other conveyance, the mineral interest owner retained a right to
control the well operations that exceeds the scope of an interest
customarily reserved in a lease or other conveyance in the event of a
default.
(4) No prior operator is liable for any of the costs of plugging
and abandoning a well by a subsequent operator if those costs are
necessitated by the subsequent operator's illegal operation of a
well.
(5) If the supervisor is unable to determine that an operator that
acquired ownership of a well after January 1, 1996, has the
financial resources to fully cover the costs of plugging and
abandonment, the supervisor may undertake plugging and abandonment
pursuant to Article 4.2 (commencing with Section 3250).
(d) (1) Notwithstanding any other provision of this chapter, the
supervisor or district deputy, at his or her sole discretion, may
determine that a well that has been idle for 25 years or more and
that fails to meet either of the following conditions is conclusive
evidence of desertion, and may order the well abandoned:
(A) The operator is operating in compliance with a valid idle well
management plan that is on file with the supervisor pursuant to
paragraph (4) of subdivision (a) of Section 3206 or is covered by an
indemnity bond provided under Section 3204, subdivision (c) of
Section 3205, or subdivision (a) of Section 3205.2.
(B) The well meets the relevant testing standards required by the
district's Idle Well Planning and Testing Program and Section 1723.9
of Title 14 of the California Code of Regulations.
(2) The supervisor or district deputy shall provide the operator a
90-day notice of warning once a determination has been reached
pursuant to this subdivision that a well has been deserted. An
operator may rebut the determination, made pursuant to paragraph (1),
of the supervisor or district deputy by demonstrating compliance
with subparagraphs (A) and (B) of paragraph (1).
(3) An order to plug and abandon a deserted well under this
section due to the supervisor's or district deputy's determination of
an operator's noncompliance with either subparagraph (A) or (B) of
paragraph (1) may be appealed to the director pursuant to the
procedures specified in Article 6 (commencing with Section 3350).

3238. (a) For oil and gas produced in this state from a well that
qualifies under Section 3251 or which has been inactive for a period
of at least the preceding five consecutive years, the rate of the
charges imposed pursuant to Sections 3402 and 3403 shall be reduced
to zero for a period of 10 years. The supervisor or district deputy
shall not permit an operator to undertake any work on wells
qualifying under Section 3251 unless the mineral rights owner
consents, in writing, to the work plan.
(b) An operator who undertakes any work on a well qualifying under
Section 3251 shall have up to 90 days from the date the operator
receives written consent from the supervisor to evaluate the well. On
or before the 90 day evaluation period ends, the operator shall file
with the supervisor a bond or deposit in an amount specified in
Section 3204, 3205, or 3205.1, in accordance with the requirements of
whichever of those sections is applicable to the well, if the well
operations are to continue for a period in excess of the 90-day
evaluation period. The conditions of the bond shall be the same as
the conditions stated in Section 3204.