SECTIONS 3700-3776 - California Statutes

PUBLIC RESOURCES CODE

SECTION 3700-3776

3700. It is hereby found and determined that the people of the
State of California have a direct and primary interest in the
development of geothermal resources, and that the State of
California, through the authority vested in the State Oil and Gas
Supervisor, should exercise its power and jurisdiction to require
that wells for the discovery and production of geothermal resources
be drilled, operated, maintained and abandoned in such manner as to
safeguard life, health, property, and the public welfare, and to
encourage maximum economic recovery.

3701. For the purposes of this chapter, "geothermal resources"
shall mean geothermal resources as defined in Section 6903 of this
code.

3702. For the purposes of this chapter, "geothermal resources area"
means the same general surface area which is underlaid, or
reasonably appears to be underlaid, by geothermal resources.

3703. "Well" means any well for the discovery of geothermal
resources or any well on lands producing geothermal resources or
reasonably presumed to contain geothermal resources, or any special
well, converted producing well or reactivated or converted abandoned
well employed for reinjecting geothermal resources or the residue
thereof.

3703.1. "Low-temperature geothermal resources" are fluids that have
value by virtue of the heat contained therein and have a temperature
that is not more than the boiling point of water at the altitude of
occurrence.

3704. "Department", in reference to the government of this state,
means the Department of Conservation.

3705. "Division," in reference to the government of this state,
means the Division of Oil, Gas, and Geothermal Resources in the
Department of Conservation.

3706. "Director" means the Director of Conservation.

3707. "Supervisor" means the State Oil and Gas Supervisor.

3708. "Person" includes any individual, firm, association,
corporation, or any other group or combination acting as a unit.

3709. "Operator" means any person drilling, maintaining, operating,
pumping, or in control of any well.

3710. "Owner" includes "operator" when any well is operated or has
been operated or is about to be operated by any person other than the
owner.

3711. "Operator" includes "owner" when any well is or has been or
is about to be operated by or under the direction of the owner.

3712. This chapter shall be liberally construed to meet its
purposes, and the director and the supervisor, acting with the
approval of the director, shall have all powers which may be
necessary to carry out the purposes of this chapter, including the
authority to adopt rules and regulations.

3714. The State Oil and Gas Supervisor shall so supervise the
drilling, operation, maintenance and abandonment of geothermal
resources wells as to encourage the greatest ultimate economic
recovery of geothermal resources, to prevent damage to life, health,
property, and natural resources, and to prevent damage to, and waste
from, the underground geothermal deposits, and to prevent damage to
underground and surface waters suitable for irrigation or domestic
purposes by reason of the drilling, operation, maintenance, and
abandonment of geothermal resources wells.

3714.5. The supervisor, pursuant to regulation, shall designate
geothermal resources areas and may exclude from the operation of this
chapter certain wells within such geothermal resources areas when
there is no probability of encountering geothermal resources.

3715. The supervisor shall also supervise the drilling, operation,
maintenance, and abandonment of wells so as to permit the owners or
operators of such wells to utilize all methods and practices known to
the industry for the purpose of increasing the ultimate recovery of
geothermal resources and which, in the opinion of the supervisor, are
suitable for such purpose in each proposed case. In order to further
the elimination of waste by increasing the recovery of geothermal
resources it is hereby declared as a policy of this state that the
grant in a geothermal resources lease or contract to a lessee or
operator of the right or power, in substance, to explore for and
remove all geothermal resources from any lands in the State of
California, in the absence of an express provision to the contrary
contained in such lease or contract, is deemed to allow the lessee or
contractor or his successors or assigns, to do what a prudent
operator using reasonable diligence would do, having in mind the best
interest of the lessor, lessee and the state, in producing and
removing geothermal resources; provided, however, nothing contained
in this section imposes a legal duty upon such lessee or contractor,
his successors or assigns, to conduct such operations.

3715.5. For the purposes of the California Environmental Quality
Act (commencing with Section 21000), the division shall be the lead
agency as defined in Section 21067 for all geothermal exploratory
projects as defined in Section 21065.5. The division shall complete
all its responsibilities pursuant to the California Environmental
Quality Act, including public and agency review and approval or
disapproval of the project, within 135 days of the receipt of the
application for such project. The division may delegate its lead
agency responsibility under this section to a county which has
adopted a geothermal element, as defined in Section 25133, for its
general plan. Any such delegation shall provide that the county
complete its lead agency responsibility under this section within 135
days of the receipt of the application for such project. The
provisions of this section shall not apply to geothermal exploratory
projects as defined in Section 21065.5 where, prior to January 1,
1979, preparation of an environmental impact report for such project
has begun or an application for such project which will require
preparation of an environmental impact report has been filed.

3716. The district deputy in each district shall collect all
information regarding the wells in the district necessary for the
proper supervision of the wells. The district deputy shall prepare
maps and other accessories necessary to determine the underground
conditions in a geothermal area and the location and extent of strata
bearing water suitable for irrigation or domestic purposes or
surface water suitable for those purposes. This work shall be done
with the view to advising the operators as to the best means of
protecting the geothermal resource deposits and the water-bearing
strata and surface water, and with a view to aiding the supervisor in
ordering tests or repair work at wells. All the data shall be kept
on file in the office of the district deputy of the respective
district, and copies thereof shall be available, upon request, to the
Director of Water Resources, the State Geologist, and the
appropriate California regional water quality control board located
in the area involved, subject to Section 3752.

3717. Upon request, the supervisor shall notify the Department of
Fish and Game and the California regional water quality control board
in the area affected of the location and abandonment of geothermal
wells.

3718. Nothing in this chapter shall be construed as superseding any
of the provisions of Division 7 (commencing with Section 13000) of
the Water Code or Division 6 (commencing with Section 5650) of the
Fish and Game Code.

3719. The supervisor shall publish any publications, reports, maps,
statistical data or other printed matter relating to geothermal
resources, for which there may be public demand. If these
publications, reports, maps, statistical data or other printed matter
are sold, they shall be sold at cost, and the proceeds shall be
deposited in the Oil, Gas, and Geothermal Administrative Fund.

3720. For the purposes of this chapter, the state may be divided
into one or more districts, the boundaries of which shall be fixed by
the director.

3721. Every owner or operator of any well shall designate an agent,
giving his or her address, who resides in this state, to receive and
accept all orders, notices, and processes of the supervisor or any
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 such termination, and unless operations are discontinued,
shall appoint a new agent.

3722. The owner or operator of any well 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, or exchange by the owner or operator of such well, and
the land, owned or leased, upon which the well is located, within 30
days after such sale assignment, transfer, conveyance, or exchange.
The notice shall contain the following:
(a) The name and address of the person to whom such well was sold,
assigned, transferred, conveyed, or exchanged.
(b) The name and location of the well.
(c) The date of the sale, assignment, transfer, conveyance or
exchange.
(d) The date when possession was relinquished by the owner or
operator.
(e) A description of the land upon which the well is situated.

3723. Every person who acquires the ownership or operation of any
well, whether by purchase, transfer, assignment, conveyance,
exchange, or otherwise, shall, within 30 days after acquiring the
well and the land, owned or leased, upon which it is located, notify
the supervisor or the district deputy, in writing, of his ownership
or operation. The notice shall contain the following:
(a) The name and address of the person from whom the well was
acquired.
(b) The name and location of the well.
(c) The date of acquisition.
(d) The date when possession was acquired.
(e) A description of the land upon which the well is situated.

3723.5. Any person who acquires the ownership or operation of any
well or wells, whether by purchase, transfer, assignment, conveyance,
exchange, or otherwise, shall, within 30 days after acquiring the
well or wells, file with the supervisor an individual indemnity bond
in the sum of twenty-five thousand dollars ($25,000) for each well
acquired, or a blanket indemnity bond in the sum of one hundred
thousand dollars ($100,000) for any number of wells acquired. The
bond shall be stated in substantially the language set forth in
Section 3725.

3724. The owner or operator of any well, before commencing the
original drilling of a well or the redrilling of an abandoned well,
shall file with the supervisor or the district deputy a written
notice of intention to commence drilling, accompanied by the
prescribed fee. 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 owner or operator written response
to the notice within 10 working days, such failure shall be
considered as an approval of the notice and the notice shall, for the
purposes and intents of this chapter, be deemed a written report of
the supervisor. The notice shall contain the following:
(a) The location and elevation of the floor of the proposed
derrick.
(b) The number or other designation by which the well shall be
known. Such number or designation shall be subject to the approval of
the supervisor.
(c) The owner's or operator's estimate of the depths between which
production will be attempted.
(d) Such other pertinent data as the supervisor may require.
After the completion of any well, the provisions of this section,
other than the requirement of the payment of the fee, shall also
apply, as far as may be, to the deepening or redrilling of the well,
or 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 by which any well heretofore drilled has
been known, 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.
As set forth by regulation, the appropriate fee to be filed for
the drilling of a new well or the redrilling of an abandoned well,
shall be twenty-five dollars ($25), two hundred dollars ($200), five
hundred dollars ($500), or one thousand dollars ($1,000).
The fee shall be paid as provided in Section 3724.6.

3724.1. An owner or operator may submit to the supervisor for
approval a written program to drill a shallow well or wells for
temperature-gradient monitoring purposes. In order to qualify under
this section, a program shall contain not more than 25 wells and the
maximum total depth of each of these wells shall not exceed 250 feet.
Each program submitted for approval shall include:
(a) Well numbers.
(b) Well locations and elevations.
(c) Geologic interpretation of the area under investigation,
including any known or inferred temperature data.
(d) Such other data as may be required by the supervisor.
The fee required to be filed for the drilling of these shallow
wells shall be twenty-five dollars ($25) per well or two hundred
dollars ($200) per program, whichever is the lesser.
The fee shall be paid as provided in Section 3724.6.

3724.2. If, after study by the supervisor, it is determined that
one or all of the wells proposed pursuant to Section 3724.1 require
additional supervision, the supervisor may require that a proposal
for such well or wells be submitted in compliance with all the
provisions of Section 3724.

3724.3. Drilling of program wells, as described in Section 3724.1,
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 owner or operator written response to the program within 10
working days, such failure shall be considered as an approval of the
program and the program shall, for the purposes and intents of this
chapter, be deemed a written report of the supervisor.

3724.32.

3724.35. The supervisor may adopt regulations governing
intermediate and deep wells drilled for temperature-gradient
monitoring purposes. The regulations may specify the content of any
written program for the wells drilled for that purpose to be
submitted to the supervisor for approval, the amount of the fee, if
any, to be filed for each intermediate or deep well drilled or for
each program, and any other matter deemed necessary by the
supervisor.

3724.4. The proposal, and all other data submitted as required by
Sections 3724.1, 3724.2, and 3724.3, shall be maintained in a
confidential status as provided for in Section 3752.

3724.5. To provide funds for the supervision of geothermal resource
wells, the supervisor shall establish an annual well fee, and
penalties for late payment, to be applied on an equal basis to all
wells as provided under this section.
The annual well fee shall be imposed upon each producing, service,
and idle well that existed at any time during the calendar year
preceding the statewide fee-assessment date. However, the annual well
fee shall not be imposed on any temperature-gradient or observation
well, irrespective of its depth, and any low-temperature well,
including any well drilled for the purpose of filling a hot water spa
or pool intended for human immersion, or any well for which the
supervisor has approved suspension.
The annual well fee shall be established so that the sum of the
annual well fees plus the estimated sum of those well permit fees
provided in Sections 3724 and 3724.1 and pursuant to any regulation
adopted under Section 3724.35 are equal to the appropriation for the
supervision of geothermal resource wells as provided in the Governor'
s Budget. The establishment of the annual well fee shall take into
account any budget adjustments for actual expenditures in the current
and prior fiscal years. Any budget change proposal for support of
the provisions of this chapter shall be submitted by the supervisor
to geothermal operators for review and comment. A system for
determining the fee and penalties and administering the fee and
penalty collection shall be adopted by the supervisor by regulation
after public hearing.

3724.6. The permit application fees established in Sections 3724
and 3724.1 shall be made payable by the operator to the Department of
Conservation, and the annual well fee established in accordance with
Section 3724.5 shall be made payable to the Treasurer. The proceeds
from the permit applications and the annual well fees shall be
deposited in the Oil, Gas, and Geothermal Administrative Fund, and
shall be available for appropriation exclusively for the supervision
of geothermal resource wells.

3725. Every person who engages in the drilling, redrilling,
deepening, maintaining, or abandoning of any well, except a
low-temperature geothermal well, shall file with the supervisor an
individual indemnity bond in the sum of twenty-five thousand dollars
($25,000) for each well drilled, redrilled, deepened, maintained, or
abandoned. The bond shall be filed with the supervisor at the time of
the filing of the notice of intention to drill, redrill, deepen,
maintain, or abandon, as provided in Section 3724 or 3724.1. The bond
shall be executed by the person, 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, maintaining, or
abandoning 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 above bounden principal, shall well and truly comply
with all the provisions of Chapter 4 (commencing with Section 3700)
of Division 3 of the Public Resources Code and shall obey all lawful
orders of the State Oil and Gas Supervisor, or his or her district
deputy or deputies, if not appealed as provided in that chapter, or
upon affirmance thereof by the Director of Conservation, if appealed
thereto, and shall pay all charges, costs, and expenses incurred by
the supervisor or his or her 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 chapter,
then this obligation shall be void; otherwise, it shall remain in
full force and effect."

3725.5. Any person who engages in the drilling, redrilling,
deepening, maintaining, or abandoning of any low-temperature well, as
defined in Section 3703.1, shall file with the supervisor an
individual indemnity bond in the sum of two thousand dollars ($2,000)
for each well less than 2,000 feet deep, ten thousand dollars
($10,000) for each well 2,000 feet deep or deeper, but less than
5,000 feet deep, fifteen thousand dollars ($15,000) for each well
5,000 but less than 10,000 feet deep, or twenty-five thousand dollars
($25,000) 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 drill, redrill, deepen, maintain, or abandon, as
provided in Section 3724 or 3724.1. The bond shall be executed by
such person, 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 3725, except as to the
difference in the amount.

3726. Any person who engages in the drilling, redrilling,
deepening, maintaining, or abandoning of one or more wells at any
time, may file with the supervisor one bond for one hundred thousand
dollars ($100,000) to cover all his operations in drilling,
redrilling, deepening, maintaining, or abandoning of any of his wells
in this state in lieu of an individual indemnity bond for each such
operation as required by Section 3725 or 3725.5. The bond shall be
executed by such person, 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 3725, except as
to the difference in the amount.

3728. Any individual or blanket indemnity bond issued in compliance
with this chapter may, with the consent of the supervisor, 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 abandoned or another valid bond has been substituted
therefor. Should the person who has filed a blanket bond properly
abandon a portion of his wells covered by the bond, the bond may,
with the consent of the supervisor, be terminated and canceled and
the surety be relieved of all obligations thereunder upon the filing
by such person of an individual bond for e ch well which he is still
engaged in drilling, redrilling, deepening, maintaining, or
abandoning. Liability as to individual wells that have been drilled
and abandoned under a blanket bond may also be terminated with the
consent of the supervisor.

3728.5. In lieu of the bond required by Sections 3723.5, 3725,
3725.5, and 3726, 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.

3729. For the purposes of Section 3728, a well is properly
abandoned when it has been shown to the satisfaction of the
supervisor that all proper steps have been taken 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 the escape of all fluids to the
surface.

3730. 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.

3731. The log shall show the character and depth of the formation
passed through or encountered in the drilling of the well, the
amount, size and weight of casing used, and particularly the
location, depth and temperature of waterbearing strata, together with
the temperature, chemical composition, and other chemical and
physical characteristics of fluid encountered from time to time, so
far as ascertained.

3732. The core record shall show the depth, character, and fluid
content of cores obtained, so far as determined.

3733. 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, the
results of production and other tests during drilling operations, and
completion data.

3734. 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 board, the supervisor, or the district deputy.

3735. Upon the completion or abandonment of any well or upon the
suspension of operations upon any well, true copies of the log, core
record, history, and, if made, true copies of all electrical,
physical, or chemical logs, tests, or surveys, in duplicate and in
such form as the supervisor may direct, shall be filed with the
district deputy within 60 days after such completion or abandonment.
Like copies shall be filed upon the recompletion of any well.

3736. 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.

3737. A well is completed, for the purposes of this chapter, 30
days after it has commenced to produce a geothermal resource unless
drilling operations are resumed before the end of the 30-day period.

3739. Any person engaged in operating any wells wherein high
pressures are known to exist, and any person drilling for geothermal
resources in any district where the pressures are 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 reasonable effort and
endeavor effectually to prevent blowouts, explosions, and fires.

3740. The owner or operator of any well on lands producing or
reasonably presumed to contain geothermal resources shall properly
case it with watertight and adequate casing, in accordance with
methods approved by the supervisor or the district deputy. The owner
or operator shall also use every reasonable 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.

3741. The supervisor shall require such tests or remedial work as
in his judgment are necessary to prevent damage to life, health,
property, and natural resources, to protect geothermal resources
deposits from damage, 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.

3742.2. Any person having drilled a well or wells on state, federal
or private lands which are producing or, according to the
supervisor, are capable of producing geothermal resources, may, at
any time, apply to the supervisor for a certificate of primary
purpose. When the supervisor determines that such well or wells are
primarily for the purpose of producing geothermal resources and not
for the purpose of producing water usable for domestic and irrigation
purposes, the supervisor shall issue a certificate of primary
purpose to such person. Such certificate shall establish a rebuttable
presumption that such person has absolute title to the geothermal
resources reduced to his possession from such well or wells. Such
presumption may be rebutted only upon a showing that the water
content of the geothermal resources is useful for domestic or
irrigation purposes without further treatment thereof, but not by
virtue of any production of such water as a by-product incident to
the production of the geothermal resources.

3743. (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 citations to the provisions of this code and the
regulations that support the imposition of the penalties and
requirements.
(b) 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.
(c) When the supervisor or a district deputy makes or gives any
written direction concerning the drilling, testing, or other
operations in any well drilled, in process of drilling, or being
abandoned, and the operator, owner, or representative of either,
serves written notice, either personally or by mail, addressed to the
supervisor, or to the district deputy at his or her office in the
district, requesting that a definite order be made upon the subject,
the supervisor or the district deputy shall, within five days after
receipt of the notice, deliver a final written order on the subject
matter.
(d) When the supervisor or a district deputy issues any written
order concerning an operation, an appeal may be made from the order
pursuant to Sections 3762 to 3768, inclusive. The order shall inform
the operator of its right to appeal the order.

3744. (a) Within 30 days from the date of service of an order made
pursuant to Section 3743, 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 the affirmance of the order, the
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 constitutes a lien
against the real or personal property of the operator upon which the
work is done and the lien has the force, effect, and priority of a
judgment lien pursuant to Section 3772.
(b) Notwithstanding Section 3741, 3743, or 3755, if the supervisor
determines that an emergency exists, the supervisor may make formal
or emergency orders or undertake any other action that the supervisor
determines to be necessary for the protection of life, health,
property, or natural resources.

3745. The owner of any well producing geothermal resources or
injecting fluids associated with geothermal operations shall file
with the supervisor, on or before the 30th day of each month, for the
last preceding calendar month, a statement of production and
injection in the form as the supervisor may designate.

3746. Before abandoning any well in accordance with methods
approved by the supervisor or the district deputy, and under his
direction, the owner or operator shall use every reasonable 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.

3747. Before any work is commenced to abandon any well, the owner
or operator shall give written notice to the supervisor or the
district deputy of the owner's or operator's intention to abandon the
well and the date upon which the work of abandonment will begin.
The notice shall be given at least 10 days before the proposed
abandonment, and it shall show the condition of the well and the
proposed method of abandonment.
The owner or operator shall furnish the supervisor or the district
deputy any additional information that the supervisor or the
district deputy may request regarding the condition of the well and
the proposed method of abandonment, at any time between the filing of
the notice of intention to abandon the well and the completion of
abandonment.

3748. The supervisor, or the district deputy, shall before the
proposed date of commencing work to abandon such well, furnish to the
owner or operator either:
(a) A written report of approval of the proposal.
(b) A written report stating what work or tests will be necessary
before approval of abandonment will be given.
(c) A written request stating what information will be necessary
for the owner or operator to furnish the supervisor or the district
deputy before approval to commence work to abandon or before approval
of abandonment will be given.

3749. If the supervisor or the district deputy fails to give the
owner or operator a written report or request within the specified
time, such failure shall be considered as an approval of the proposal
to abandon the well, and the proposal shall, for the purposes and
intents of this chapter, be deemed a written report of the supervisor
or the district deputy.

3750. Within 60 days after the completion of abandonment of any
well, the owner or operator of the well shall make, in such form as
the supervisor or the district deputy may direct, a written report of
all work done in connection with the abandonment. The supervisor or
the district deputy shall, within 10 days after the receipt of a
written report of completion, 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 inspector,
or failure to furnish the supervisor or the district deputy, at his
request, with any information regarding the condition of the well,
shall constitute sufficient grounds for disapproval of the
abandonment.

3751. No person, whether as principal, agent, servant, employee, or
otherwise, shall remove the casing or any portion thereof, from any
well without first giving written notice to the supervisor or the
district deputy of the person's intention to remove the casing from
the well. The notice shall be given at least 10 days before the
proposed removal.
The supervisor or the district deputy shall, before the proposed
date of removal, furnish the person with a written report of approval
of the person's proposal, or a written report stating what work
shall be done before the approval will be given.
If the supervisor or the district deputy fails to give the person
a written report within the specified time, that failure shall be
considered an approval of the proposal to remove the casing, and the
proposal shall, for the purposes and intents of this chapter, be
deemed a written report of the supervisor or the district deputy.
Within five days after the completion of the removal, the person
shall make, in the form as the supervisor or district deputy may
direct, a written report, in duplicate, of all work done in
connection with the removal.

3752. (a) (1) Except as otherwise provided in this section, all the
well records, including production records, of an owner or operator
that 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 as confidential information. The
confidential period shall not exceed five years from the cessation of
drilling operations as specified in subdivision (e).
(3) Well records that are maintained as confidential information
by the division shall be open to inspection by those persons whom the
owner or operator authorizes 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. 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 subdivision (a), the well records shall become
public records when the supervisor is notified that the lease has
expired or terminated.
(c) Production reports filed pursuant to Section 3745 shall be
open to inspection by the State Board of Equalization or its duly
appointed representative 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 3745 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) For purposes of this section, the cessation of drilling
operations occurs on the date of removal of drilling machinery from
the well site.

3753. Upon receipt by the supervisor or by a district deputy of a
written complaint, alleging a condition in violation of this chapter,
specifically setting forth the condition complained against, signed
by the complainant, the supervisor shall make an investigation of the
well or wells and 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.

3754. Any owner or operator, or employee thereof, who refuses to
permit the supervisor or the district deputy, or his or her
inspector, to inspect a well or appurtenant facilities, or who
willfully hinders or delays the enforcement of this chapter, and
every person, whether as principal, agent, servant, employee, or
otherwise, who violates, fails, neglects, or refuses to comply with
this chapter, or who fails or neglects or refuses to furnish any
report or record which may be required pursuant to 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 the fine and
imprisonment, for each offense.

3754.5. (a) Any person who violates this chapter or any regulation
implementing this chapter is subject to a civil penalty not to exceed
five thousand dollars ($5,000) for each violation. Acts of God, and
acts 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 upon a determination that a
violation has been committed by the person charged, following notice
to the person and an opportunity to be heard. 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 civil liability pursuant to this section, the supervisor
shall consider, in addition to other relevant circumstances, (1) the
extent of harm caused by the violation, (2) the persistence of the
violation, and (3) the number of prior violations by the same
violator.
(b) An order of the supervisor imposing a civil penalty shall be
reviewable pursuant to Sections 3762 to 3771, inclusive. When the
order of the supervisor has become final or has been upheld following
exhaustion of the applicable review procedures, the supervisor may
apply to the appropriate superior court for an order directing
payment of the civil penalty.
(c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.

3755. The supervisor or his deputy may order the abandonment of any
well that has been deserted whether or not any damage is occurring
or threatened by reason of said well. Suspension of drilling
operations and removal of drilling machinery is prima facie evidence
of desertion after the elapse of six months unless a request for an
extension of time for a period not to exceed an additional six months
is theretofore filed. At any time the supervisor may for good cause
shown extend this period.

3756. Whenever the supervisor finds that it is in the interest of
the protection of geothermal resources from unreasonable waste, the
lessors, lessees, operators, or other persons owning or controlling
royalty or other interests in the separate properties of the same
producing or prospective geothermal resources area, may, with the
approval of the supervisor, enter into agreements for the purpose of
bringing about the cooperative development and operation of all or a
part or parts of the area, or for the purpose of bringing about the
development or operation of all or a part or parts of such area as a
unit, or for the purpose of fixing the time, location, and manner of
drilling and operating of wells for the production of geothermal
resources. Any such agreement shall bind the successors and assigns
of the parties thereto in land affected thereby and shall be
enforceable in an action for specific performance. No such agreement
when approved by the supervisor hereunder shall be held to violate
any of the statutes of this state prohibiting monopolies or acts,
arrangements, agreements, contracts, combinations, or conspiracies in
restraint of trade or commerce.

3757. Any well hereafter drilled for the discovery and production
of geothermal resources, which is located within 100 feet of an outer
boundary of the parcel of land on which the well is situated, or
within 100 feet of a public road or street or highway dedicated prior
to the commencement of drilling of the well, is a public nuisance.

3757.1. Notwithstanding any other provisions of this chapter, where
a parcel of land contains one acre or more and all or substantially
all of the surface is unavailable for the location of a geothermal
well and directional drilling is found by the supervisor to be
necessary, the supervisor may approve proposals to drill wells at
whatever locations the supervisor determines to be advisable for the
purpose of properly developing the geothermal resources except, that
no well shall be drilled or permitted to produce which is located
within 25 feet of the outer boundary of the parcel of land on which
the well is situated or within 25 feet of a public road, street, or
highway dedicated prior to the commencement of drilling. The
supervisor may require, at the time the supervisor gives approval of
the notice of intention to drill, redrill, or deepen such well, that
a subsurface directional survey be made, and that the survey be filed
with the supervisor within 15 days of cessation of drilling
operations.

3757.2. For the purpose of developing low-temperature geothermal
resources, the supervisor may approve the exemption of any
low-temperature geothermal well from Sections 3721, 3722, 3723,
3723.5, 3725.5, and 3745, if the resource is used domestically or in
a noncommercial manner. The supervisor may also approve the drilling
of low-temperature geothermal wells at whatever locations he deems
advisable, if no well is drilled or permitted to produce which is
located within 15 feet of the outer boundary of the parcel of land on
which the well is situated or within 15 feet of a public road,
street, or highway dedicated prior to the commencement of drilling.

3758. Where several contiguous parcels of land in one or different
ownerships are operated as a single geothermal resources lease or
operating unit, the term "outer boundary line" means the outer
boundary line of the lands included in the lease or unit. In
determining the contiguity of any such parcels of land, no street,
road or alley lying within the lease or unit shall be deemed to
interrupt such contiguity.

3759. For the purpose of this chapter, an alley which intersects or
lies within any block or other subdivision unit is not a public
street or road.

3760. Each day in which the drilling of any well is carried on, or
on which it is permitted to produce geothermal resources in violation
of this chapter is a separate nuisance.

3761. The provisions regarding the location of geothermal resources
wells do not apply to any wells producing geothermal resources on
the effective date of this act.

3762. (a) The operator of a well 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. 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 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 is issued
as an emergency order pursuant to Section 3744. If the order is an
emergency order, the operator shall immediately 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.

3763. (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 3755 finding that the operator's
wells are deserted and should be plugged and abandoned.
(2) Rescinding an injection project approval for a project that
has already commenced.
(b) An order issued pursuant to Section 3743 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 3764 and 3765.
(d) For an appeal of an order that is described in subdivision (a)
and is also an emergency order for remedial work, a hearing shall be
conducted by the director in accordance with Sections 3764 and 3765
for the limited purpose of considering the emergency order for
remedial work. 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.

3764. (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 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.

3765. (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.

3766. (a) Following a hearing conducted by the director pursuant to
Sections 3764 and 3765 or subdivision (b) of Section 3762, 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.

3767. 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.

3768. 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 3766, 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 3772.

3769. In any proceeding instituted by the supervisor for the
purpose of enforcing or carrying out the provisions of this chapter,
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
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,
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 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.

3770. 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.

3771. 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 the person 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 the proceeding or hearing, or upon the
person's failure, refusal or neglect to produce books, papers, or
documents as demanded in the order or subpoena upon that day, that
failure, refusal or neglect constitutes 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 the books, papers, or
documents, or complies with the subpoena or order of the supervisor
or the director.

3772. (a) If any person fails to pay any charge or penalty imposed
under this chapter at the time that it becomes due and payable, the
amount thereof, including penalties and interest, together with any
costs in addition thereto, shall thereupon be a perfected and
enforceable state tax lien. Such a lien is subject to Chapter 14
(commencing with Section 7150) of Division 7 of Title 1 of the
Government Code.
(b) For the purpose of this section only, "due and payable" means
the date a return is required to be filed, without regard to any
extension of time, without payment of the amount due or the date a
determination or assessment made under this chapter becomes final,
whichever is applicable.

3772.2. A warrant may be issued by the Controller or his or her
duly authorized representative for the collection of any charges,
interests and penalty and for the enforcement of any such lien
directed to the sheriff and shall have the same effect as a writ of
execution. It may and shall be levied and sale made pursuant to it in
the same manner and with the same effect as a levy of and a sale
pursuant to a writ of execution.

3772.4. The sheriff shall receive, upon the completion of his or
her services pursuant to a warrant, and the Controller is authorized
to pay to him or her the same fees and commissions and expenses in
connection with services pursuant to the warrant as are provided by
law for similar services pursuant to a writ of execution; provided,
that fees for publication in a newspaper shall be subject to approval
by the Controller rather than by the court; the fees, commissions
and expenses shall be an obligation of the person or persons liable
for the payment of those charges and may be collected from such
person or persons by virtue of the warrant or in any other manner
provided in this chapter for the collection of those charges.

3772.6. In the event that the lien of the charges, penalties or
interest attaches to real property from which geothermal energy is
extracted and more than one parcel of property is included within the
lien, the Controller may release by certificate pursuant to Section
7174 of the Government Code from the lien of such charges, interest,
and penalties and costs, upon payment by the owner of any parcel or
parcels of property of his proportionate share of the charges.

3773. The Controller shall, on or before the 90th day following the
delinquency of any charge, bring an action in the name of the people
of the state, in the county in which the property involved in the
order is situated, to collect any delinquent charges, together with
any penalties or costs, which have not been paid.

3774. The Attorney General, as provided in Section 3102 of the
Public Resources Code, shall commence and prosecute any such action
to final judgment.

3775. In such actions the record of charges, or a copy of so much
thereof as is applicable, duly certified by the Controller, showing
unpaid charges against any person, is prima facie evidence of the
charges, the delinquency, the amount of charges, penalties, and costs
due and unpaid, that the person is indebted to the people of the
State of California in the amount of charges and penalties therein
appearing unpaid, and that all forms of law in relation to the
charges have been complied with.
The provisions of the Code of Civil Procedure relating to service
of summons, pleadings, proofs, trials, and appeals are applicable to
the proceedings.

3776. Payment of the penalties and charges, or the amount of the
judgment recovered in the action, shall be made to the State
Treasurer, and shall be returned and credited to the Oil, Gas, and
Geothermal Administrative Fund.