SECTIONS 3350-3359 - California Statutes

PUBLIC RESOURCES CODE

SECTION 3350-3359

3350. (a) The operator of a well or a production facility to whom
the supervisor or district deputy has issued an order pursuant to
this chapter may file a notice of appeal to the director from that
order. The notice of appeal shall be in writing and shall be filed
with the supervisor or with the district deputy who issued the order.
The operator shall file the appeal within 10 days of the service of
the order, or within 10 days of the posting of a copy of an order
made pursuant to Section 3308. Failure of the operator to file an
appeal from the order within the 10-day period shall be a waiver by
the operator of its rights to challenge the order. If the order,
other than an order made pursuant to Section 3308, is served by mail,
the time for responding shall be determined as provided in Section
1013 of the Code of Civil Procedure.
(b) (1) The filing of a written notice of appeal shall operate as
a stay of the order, except when an order for remedial work or an
order to cease and desist operations is issued as an emergency order
pursuant to Section 3226. If the order is an emergency order, the
operator shall immediately cease and desist the specified operations
and shall perform whatever work is required by the order to alleviate
the emergency or shall permit the agents appointed by the supervisor
to perform that work.
(2) If the emergency order is set aside or modified on appeal, the
supervisor shall refund the reasonable costs incurred by the
operator for whatever work is not required by the set-aside or
modified order or shall not impose costs for work performed by the
supervisor or the supervisor's agents if the work is excluded from
the modified order or the order is set aside.
(3) (A) The costs to be refunded pursuant to paragraph (2) by the
supervisor shall be determined in a hearing before the director after
the exhaustion of appeals. The operator shall have the burden of
proving the amount of costs to be refunded.
(B) A determination by the director as to the amount of costs to
be refunded pursuant to paragraph (2) may be appealed by the operator
pursuant to subdivision (a) of Section 3354.
(4) If the operator believes that it will be irretrievably injured
by the performance of the work required to alleviate the emergency
pending the outcome of the appeal, the operator may seek an order
from the appropriate superior court restraining the enforcement of
the order pending the outcome of the appeal.

3351. (a) A hearing shall be provided in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code only in an appeal from an order in the following
circumstances:
(1) Issued pursuant to a Section 3237 finding that the operator's
wells are deserted and should be plugged and abandoned.
(2) Imposing civil penalties totaling more than ten thousand
dollars ($10,000).
(3) Rescinding an injection project approval for a project that
has already commenced.
(4) Imposing a life-of-well bond or a life-of-production facility
bond.
(b) An order issued pursuant to Section 3225 shall satisfy the
requirement of Section 11503 of the Government Code that an
accusation be filed.
(c) For an appeal of an order that is not described in subdivision
(a), a hearing shall be conducted by the director in accordance with
Sections 3352 and 3353.
(d) For an appeal of an order that is described in subdivision (a)
and is also an emergency order for remedial work or to cease and
desist operations, a hearing shall be conducted by the director in
accordance with Sections 3352 and 3353 for the limited purpose of
considering the emergency order for remedial work or to cease and
desist operations. All other penalties and requirements imposed by
the order shall be considered at a hearing provided in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code.

3352. (a) A hearing conducted by the director shall adhere to the
following:
(1) When an order is not issued as an emergency order, within 30
days from the date of the service of the notice of appeal, the
director shall provide to the operator notice of the time and place
of the hearing. The hearing shall take place within 30 days after the
date of the director's notice. The notice shall inform the operator
that the director may extend the date of the hearing for up to 60
days for good cause upon application of the operator or the
supervisor.
(2) When an order has been issued as an emergency order, within 10
days from the date of the service of the notice of appeal, the
director shall provide to the operator notice of the time and place
of the hearing. The hearing shall take place within 20 days after the
date of the director's notice. The notice shall inform the operator
that the director may extend the date of the hearing for up to 30
days for good cause upon application of the operator or the
supervisor.
(b) The director shall conduct the hearing within the district
where the majority of the wells or production facilities that are the
subject of the order are located, or the hearing may be conducted at
a location outside of that district upon application of the
operator. The hearing shall be reported by a stenographic reporter
and may, in addition, be electronically recorded by either party.
(c) The notice of hearing shall inform the operator of its right
to file a written answer to the charges no later than 10 days before
the date of the hearing. The notice also shall inform the operator
that it has the right to present oral and documentary evidence at the
hearing.
(d) Upon a verified and timely petition of the operator, the
director may order the testimony of a witness at the hearing. The
petition shall be served upon the director and the other party within
five days after the filing of an appeal and shall set forth the name
and address of the witness whose testimony is requested, to the
extent known; a showing of the materiality of the testimony; and a
showing that the witness cannot be compelled to testify absent an
order of the director. The supervisor may file an opposition to the
petition within five days after the petition is served. The director
shall either deny or grant the petition within 10 days after receipt
of the petition and receiving any opposition to the petition. Upon
granting a petition, the director shall issue a subpoena pursuant to
Section 3357 compelling the testimony of the witness at the hearing.
(e) The director may convert a hearing pursuant to this section to
a formal hearing conducted in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code in any of the following circumstances:
(1) The operator makes a showing satisfactory to the director that
the order being appealed is likely to result in termination of an
established oil or gas producing or injection operation.
(2) It appears to the director that the hearing will involve
complex evidentiary or procedural issues that will cause more than
minimal delay or burdens.
(3) The operator and the supervisor agree and stipulate to convert
the hearing to a formal hearing.
(f) The conversion of a hearing pursuant to this section to a
formal hearing shall be conducted in accordance with Article 15
(commencing with Section 11470.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code.

3353. (a) Within 30 days after the close of a hearing conducted by
the director, the director shall issue a written decision affirming,
setting aside, or modifying the order from which the appeal was
taken. The director's written decision shall be based upon the
preponderance of the evidence and shall set forth the director's
factual findings, legal conclusions, and rationale for the result.
The director may extend the 30-day period for issuing the written
decision if the extension is agreed to by the operator.
(b) The director shall file the written decision with the
supervisor and serve it on the operator as soon as the decision is
complete, at which time the decision shall be deemed final. The
director's decision shall supersede the order of the supervisor from
which the appeal was made. If the director affirms or modifies the
order, the director shall retain jurisdiction until the operator
completes the work required to be performed by the order.

3354. (a) Following a hearing conducted by the director pursuant to
Sections 3352 and 3353 or subdivision (b) of Section 3350, the
operator may obtain judicial review of the decision of the director
by filing a petition for writ of administrative mandamus in the
superior court of the county where the division's district office
from which the order was issued is located. The operator shall file
the petition within 30 days after the date the operator was served
with the decision.
(b) Following a hearing conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, the operator may obtain judicial review of the
decision pursuant to Section 11523 of the Government Code.

3355. When an operator seeks judicial review of a decision of the
director, including a decision following a hearing conducted in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code, the court shall hear
the cause on the record before the director or an administrative law
judge. New or additional evidence shall not be introduced in court.
The court's inquiry shall extend to whether the director acted
without or in excess of jurisdiction, whether there was a fair
hearing, and whether there is any prejudicial abuse of discretion.
Abuse of discretion is established if the administrative proceeding
has not been conducted in the manner required by law, the decision is
not supported by the findings, or the findings are not supported by
substantial evidence in light of the whole record.

3356. If the operator does not appeal an order, if the operator
does not timely seek judicial review of a decision affirming or
modifying an order within the time provided in Section 3354, or if
the operator has timely sought and obtained judicial review and the
court has affirmed the decision, then any charge, including penalty
and interest, that the decision permits the supervisor to impose on
the operator for work performed by the supervisor or the supervisor's
agents shall constitute a state tax lien against the real and
personal property of the operator pursuant to Section 3423.

3357. In any proceeding before the director, and in any proceeding
instituted by the supervisor for the purpose of enforcing or carrying
out the provisions of this division, or for the purpose of holding
an investigation to ascertain the condition of any well or wells
complained of, or which in the opinion of the supervisor may
reasonably be presumed to be improperly located, drilled, operated,
maintained, or conducted, the supervisor and the director shall have
the power to administer oaths and may apply to a judge of the
superior court of the county in which the proceeding or investigation
is pending for a subpoena for witnesses to attend the proceeding or
investigation. Upon the application of the supervisor or the
director, the judge of the superior court shall issue a subpoena
directing the witness to attend the proceeding or investigation, and
such person shall be required to produce, when directed, all records,
surveys, documents, books, or accounts in the witness' custody or
under the witness' control; except that no person shall be required
to attend upon such proceeding unless the person resides within the
same county or within 100 miles of the place of attendance. The
supervisor or the director may in such case cause the depositions of
witnesses residing within or without the state to be taken in the
manner prescribed by law for like depositions in civil actions in
superior courts of this state under Title 4 (commencing with Section
2016.010) of Part 4 of the Code of Civil Procedure, and may, upon
application to a judge of the superior court of the county within
which the proceeding or investigation is pending, obtain a subpoena
compelling the attendance of witnesses and the production of records,
surveys, documents, books, or accounts at such places as the judge
may designate within the limits prescribed in this section.

3358. Witnesses shall be entitled to receive the fees and mileage
fixed by law in civil causes, payable from the Oil, Gas, and
Geothermal Administrative Fund.

3359. In case of the failure or neglect on the part of any person
to comply with any order of the supervisor or the director, or any
subpoena, or upon the refusal of any witness to testify to any matter
regarding which he may lawfully be interrogated, or upon refusal or
neglect to appear and attend at any proceeding or hearing on the day
specified, after having received a written notice of not less than 10
days prior to such proceeding or hearing, or upon his failure,
refusal, or neglect to produce books, papers, or documents as
demanded in the order or subpoena upon such day, such failure,
refusal, or neglect shall constitute a misdemeanor. Each day's
further failure, refusal, or neglect is a separate and distinct
offense.
The district attorney of the county in which the proceeding,
hearing, or investigation is to be held, shall prosecute any person
guilty of violating this section by continuous prosecution until the
person appears or attends or produces such books, papers, or
documents, or complies with the subpoena or order of the supervisor
or the director.