State California Regulations TITLE 14. NATURAL RESOURCES DIVISION 2. DEPARTMENT OF CONSERVATION database is current through 10/6/06, Register 2006, No. 40 s 1670. General Provisions. The Political Reform Act (Government Code Sections 81000,et seq.),requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Sec. 18730) which contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency's code. After public notice and hearing it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix designating officials and employees and establishing disclosure categories shall constitute the conflict of interest code of the Department of Conservation. Designated employees shall file statements of economic interests with the Department. Upon receipt of the statements of the Director and members of Boards and Commissions, the Department shall make and retain a copy and forward the originals of these statements to the Fair Political Practices Commission. Statements for all other designated employees will be retained by the Department which shall make them available for public inspection and reproduction. Note: Authority cited: Sections 87300 and 87306, Government Code. Reference: Sections 87300, et seq., Government Code. Appendix A Designated Employees and Retired Annuitants filling such positions under the Conflict of Interest Code of the Department of Conservation The following individuals are hereby required to file statements of economic interests in accordance with the disclosure category indicated: Executive Disclosure Position Category Director............................................. 1 Chief Deputy Director................................ 1 Deputy Director...................................... 1 Members, State Mining and Geology Board.............. 1 Executive Officer, State Mining and Geology Board.... 3 Designation Coordinator.............................. 3 Equal Opportunity and Strategic Planning Officer..... 1 Office of Mine Reclamation Assistant Director, Office of Mine Reclamation...... 1 Manager, Reclamation Unit........................... 1 Manager, Abandoned Mine Lands Unit.................. 1 Manager, Reporting and Compliance Unit.............. 1 All Staff Performing SMARA Compliance (Reporting and Compliance Unit)................................... 1 Legal Office Chief Counsel........... 1 Senior Staff Counsel.... 1 Staff Counsel........... 1 Office of Governmental and Environmental Relations Assistant Director, Office of Government and Environmental Relations.... 1 Public Information Office Communications Director.... 1 Staff Services Analyst..... 1 Recycling Specialist....... 1 Division of Land Resource Protection Assistant Director, Division of Land Resource Protection.... 1 Associate Environmental Planner............................. 6 California Farmland Conservancy Program Senior Land and Water Use Analyst......... 1 Research Analyst.......................... 6 Associate Governmental Program Analyst.... 6 Associate Land and Water Use Analyst...... 6 Associate Land Agent...................... 6 Resource Conservation District Assistance Program Environmental Scientist................... 6 Associate Governmental Program Analyst.... 6 Farmland Mapping and Monitoring Program Senior Land and Water Use Analyst.... 1 Williamson Act Program Environmental Program Manager............. 1 Staff Environmental Scientist............. 6 Associate Environmental Planner........... 6 Associate Governmental Program Analyst.... 6 Research Analyst.......................... 6 Division of Administration Assistant Director, Administration........ 1 Accounting Administrator.................. 2 Accounting Officer........................ 2 Budget Officer............................ 1 Program Budget Specialist................. 2 Chief, Human Resources.................... 2 Assistant Chief, Human Resources.......... 2 Administrative Services Officer........... 2 Business Services Officer (Supervisor).... 2 Office of Technology Services Assistant Director, Office of Technology Services.... 2 Manager for Applications Development................. 2 Manager of Operations................................ 2 Systems Network Administrator........................ 2 Geographic Information Systems Support Lead.......... 2 California Geological Survey State Geologist........... 1 Supervising Geologists.... 2 and 3 Senior Geologist.......... 2 Staff Services Manager.... 2 and 3 Seismic Hazards Mapping Program Senior Engineering Geologist.... 2 and 3 Engineering Geologist........... 2 and 3 Research Manager................ 2 Regional Geologic and Hazards Mapping Program Senior Geologist................ 2 and 3 Senior Seismologist............. 2 and 3 Senior Engineering Geologist.... 2 and 3 Timber Harvest Program Enforcement and Watershed Restoration Program Senior Engineering Geologist.... 2 and 3 Engineering Geologist........... 2 and 3 Strong Motion Instrumentation/Earthquake Engineering Program Staff Electronics Instrumentation Engineer.... 2 Senior Civil Engineer......................... 2 Senior Seismologist........................... 2 Division of Oil, Gas, and Geothermal Resources State Oil and Gas Supervisor........... 1 Chief Deputy Oil and Gas Supervisor.... 1 Supervising Oil and Gas Engineers...... 2 and 4 Senior Oil and Gas Engineers........... 2 and 4 Associate Oil and Gas Engineers........ 4 Division of Recycling Assistant Director, Division of Recycling................................... 1 Deputy Chief, Division of Recycling......................................... 1 All Branch Managers and Supervisors......................................... 1 All employees in the following Division of Recycling classifications or series: Environmental Program Manager (non-supervisory)............................. 5 Management Services Technician.............................................. 5 Staff Services Analyst...................................................... 5 Associate Governmental Program Analyst...................................... 5 Recycling Specialist (non-supervisory)...................................... 5 Auditor..................................................................... 5 Research Analyst............................................................ 5 Research Program Specialist................................................. 5 Graphic Designer............................................................ 5 Environmental Scientist..................................................... 5 Consultants Consultants (Department-wide).... *1 Consultants are "designated employees" for the purposes of these provisions and shall disclose pursuant to the broadest disclosure category in the Code, subject to the following limitation: The Director may determine in writing that a particular consultant, although a "designated employee," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in the Code. This written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure required. The Director's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. Department of Conservation Disclosure Categories Disclosure Category 1: A designated employee in this category must report all investments, business positions, interests in real property, and sources of income, including gifts, loans and travel payments. Disclosure Category 2: A designated employee in this category must report investments and business positions in, and income, including gifts, loans, and travel payments, from any business entity of the type that provides services, supplies, materials, machinery or equipment of the type used by the Department of Conservation. Disclosure Category 3: A designated employee in this category must report real property and investments and business positions in and income, including gifts, loans, and travel payments, from any business entity of the type that may be affected by or subject to any provisions, guidelines, rules, regulations or policies adopted, enforced or promulgated by the California Geological Survey, the Office of Mine Reclamation, or the State Mining and Geology Board. This includes, but is not limited to, business entities engaged in real estate development, mining, quarrying, mineral refining or smelting operations, logging operations, geothermal and petroleum development, or public utility facility development; or the manufacturing, distribution, sale, repair or advertising of products for use in exploration, development and design criteria, and construction of facilities and projects involving siting investigations or land use. Disclosure Category 4: A designated employee in this category must report real property and investments and business positions in, and income, including gifts, loans, and travel payments, from any business entity of the type that may be affected by or subject to any provisions, guidelines, rules, or policies adopted, enforced or promulgated by the Division of Oil, Gas, and Geothermal Resources. This includes, but is not limited to, business entities of the type that are regularly engaged in the extraction and/or production of oil, gas or geothmal resources; or providing consulting, research or other contractual services to companies sponsoring such developments; or the manufacturing, distribution, sale, repair or advertising of products for use in exploration, development and design criteria, and construction of facilities and projects involving siting investigations or land use. Disclosure Category 5: A designated employee in this category must report real property and investments and business positions in and income, including gifts, loans, and travel payments, from sources that: (1) are subject to the regulatory, certification, registration, or licensing authority of the Division of Recycling; (2) provides leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services of the type used by the Division of Recycling; (3) are recipients of grants, or program payments from the Division of Recycling, and/or subjects of collection activity by the Division of Recycling. Disclosure Category 6: A designated employee in this category must report all investments and interests in real estate and business positions in and income, including gifts, loans, and travel payments, from sources of the type that are involved in the Williamson Act program or are recipients of grants from the Division of Land Resources Protection. Note: Authority cited: Sections 87300 and 87306, Government Code. Reference: Sections 87300-87302 and 87306, Government Code. s 1681. Scope of Regulations. These regulations refer to the requirements of the Division of Oil, Gas, and Geothermal Resources in the preparation of environmental documents under CEQA. They are to be used in conjunction with the "State CEQA Guidelines," Title 14 California Code of Regulations, Sections 15000 et seq. Note: Authority cited: Sections 606, 3013 and 21082, Public Resources Code. Reference: Sections 21000-21176, Public Resources Code. s 1681.1. Decision Making Body. "Decision making body" means any person or group of people within a public agency permitted by law to approve or disapprove the project at issue. Where an applicant requests approval of a Notice of Intention to drill for an oil, gas, or geothermal well, the "decision making body" is the State Oil and Gas Supervisor or his or her representative. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 21080, Public Resources Code. s 1681.2. Lead Agency. Note: Authority cited: Section 21082, Public Resources Code. Reference: Sections 3715.5, 21065.5 and 21067, Public Resources Code. s 1681.3. Notice of Intent to Prepare Environmental Document. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 21080.3, Public Resources Code. s 1681.4. Geothermal Exploratory Project. (a) A geothermal exploratory project is for the purpose of evaluating the presence and characteristics of geothermal resources prior to starting a geothermal field development project. An exploratory project is comprised of not more than six wells. The wells must be located at least one-half mile from the surface location of any existing geothermal wells that are capable of producing geothermal resources in commercial quantities. (b) For the purpose of preparing an environmental document for an exploratory project, a description of the environmental impacts of a project shall be limited to the proposed drill sites, the proposed wells, and any roads or other facilities that may be required before the exploratory wells can be drilled. The environmental document for the exploratory project does not need to describe the environmental impacts of any future exploratory or development projects. Note: Authority cited: Section 21082, Public Resources Code. Reference: Sections 21065.5 and 21090.1, Public Resources Code. s 1682. Contents of a Geothermal Project Application. An application for a geothermal exploratory project shall include: (a) A statement declaring that the purpose of the proposed project is to evaluate the presence and characteristics of geothermal resources and that the surface location of each well in the project is at least one-half mile from the surface location of an existing well capable of producing geothermal resources in commercial quantities. (b) The following information in narrative form: (1) A description of the project including a regional map showing the location of the proposed well(s). (2) A statement of whether or not the project is compatible with existing zoning and State and local plans. (3) A description of the environmental setting. (4) A description of probable short-term and long-term environmental effects of the project. (5) A description of measures acceptable to the project sponsor which mitigate the project's probable environmental effects. (6) A description of any significant adverse environmental impacts which the project sponsor cannot mitigate. (c) A statement that the sponsor agrees to provide additional environmental information the Division may need to complete any environmental documents required by CEQA. Note: Authority cited: Sections 3012 and 21082, Public Resources Code. Reference: Sections 3715.5 and 21160, Public Resources Code. s 1682.1. Lead Agency CEQA Time Limits for Geothermal Projects. When the Division accepts an application for a geothermal exploratory project as complete, the Division shall prepare or cause the preparation of the required environmental documents and make a decision on the project within 135 days. (a) The time limit shall be measured from the date on which the application is accepted as complete. (b) Within 30 days after receiving an application for a geothermal exploratory project, the Division shall determine whether the application is complete and whether the project will require a Notice of Exemption, an Environmental Impact Report (EIR) or a Negative Declaration. (c) The Division shall consult with Responsible Agencies to discuss the scope and content of a proposed environmental document pursuant to Section 168.3.1(b) of these regulations. Note: Authority cited: Sections 3012 and 21082, Public Resources Code. Reference: Sections 3715.5, 21080.1 and 21080.3, Public Resources Code. s 1682.2. Responsible Agency CEQA Time Limits. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 21080.4, Public Resources Code. s 1682.3. Delegation of Lead Agency Responsibilities for Geothermal Exploratory Projects Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 3715.5, Public Resources Code. s 1683. Federal Geothermal Project Coordination. Where a geothermal exploratory project will be subject to both CEQA and the National Environmental Policy Act, the Division shall approve or disapprove the project within 135 days. Note: Authority cited: Sections 3012 and 21082, Public Resources Code. Reference: Sections 3715.5, 21083.5 and 21083.7, Public Resources Code. s 1683.1. Consultation In Connection with a Geothermal Project. (a) Prior to determining whether a Notice of Exemption, Negative Declaration, or EIR is required for a geothermal exploratory project, the Division shall consult with each Responsible Agency and Trustee Agency responsible for natural resources affected by the project. (b) In connection with a geothermal exploratory project, the Division shall consult with Responsible Agencies to discuss the scope and content of a proposed environmental document as soon as possible but not later than 30 days after the Division receives an application. The Division may waive this requirement if the project has no significant environmental impact or if the project sponsor agrees to mitigate all foreseeable environmental impacts. This requirement may be met through written correspondence. Note: Authority cited: Sections 3012 and 21082, Public Resources Code. Reference: Sections 3715.5 and 21080.3, Public Resources Code. s 1683.2. Geothermal Discretionary Projects. Permitting actions of the Division for geothermal exploratory projects are discretionary under CEQA, when the Division acts as lead agency. Note: Authority cited: Sections 3012 and 21082, Public Resources Code. Reference: Sections 3715.5 and 21080, Public Resources Code. s 1683.3. Procedures for Exempted Projects. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 3715.5, Public Resources Code. s 1683.5. Responsible Agency CEQA Time Limits. As soon as possible after receiving a Notice of Preparation and in no event more than 45 days after receiving the notice, a Responsible Agency shall inform the Lead Agency of the scope and content of the environmental information that the Responsible Agency would need in the EIR. Note: Authority cited: Section 21082, Public Resources Code. Reference: Sections 21000-21176, Public Resources Code. s 1683.6. Delegation of Responsibilities for Geothermal Lead Agency. The Division may delegate its Lead Agency responsibility for geothermal exploratory projects to a county that has adopted a geothermal element for its general plan and agreed to complete its Lead Agency responsibilities for such projects within 135 days of receipt of a complete application for such project. Note: Authority cited: Sections 3012 and 21082, Public Resources Code. Reference: Section 3715.5, Public Resources Code. s 1683.7. Delegation of Lead Agency Responsibilities for Geothermal Exploratory Projects. (a) A request for delegation of Lead Agency responsibilities for geothermal exploratory projects shall contain a letter of request signed by the Chairperson of the Board of Supervisors, copies of the county's adopted geothermal element, the final environmental document on the element, and copies of the county's CEQA procedures which detail the county method of completing its Lead Agency responsibilities for geothermal exploratory projects within 135 days. (b) Upon receipt of the request, the State Oil and Gas Supervisor shall transmit a copy of the geothermal element and final environmental document to the Office of Planning and Research (OPR) and shall consult with the OPR prior to making a decision on the county's request. The Supervisor may consult with any other agencies, at his or her discretion. (c) If the geothermal element and CEQA procedures are adequate, the Supervisor shall approve the request. Note: Authority cited: Section 21082, Public Resources Code. Reference: Sections 21000-21176, Public Resources Code. s 1684. Categorical Exemptions. Section 21084 of the Public Resources Code requires these Guidelines to include a list of classes of projects which have been determined not to have a significant effect on the environment and which shall, therefore, be exempt from the provisions of the Environmental Quality Act of 1970. In response to that mandate, the Secretary for Resources has found that the following classes of projects listed in this article do not have a significant effect on the environment and they are declared to be categorically exempt from the requirement for the preparation of environmental documents. Only those classes of projects that would pertain to the responsibilities of the Division of Oil, Gas, and Geothermal Resources are listed in these regulations. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 21084, Public Resources Code. s 1684.1. Class 1: Existing Facilities. Class 1 consists of the operation, repair, maintenance, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of use beyond that existing previously. The Class includes, but is not limited to: remedial, maintenance, conversion, and abandonment work on oil, gas, injection, and geothermal wells involving the alteration of well casing, such as perforating and casing repair, removal, or replacement; installation or removal of downhole production or injection equipment, cement plugs, bridge plugs, and packers set to isolate production or injection intervals. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 21080, Public Resources Code. s 1684.2. Class 4: Minor Alterations to Land. Class 4 consists of drilling operations that result only in minor alterations with negligible or no permanent effects to the existing condition of the land, water, air, and/or vegetation. Note: Authority cited: Section 21082, Public Resources Code. Reference: Section 21080, Public Resources Code. s 1685. Adequate Time for Review and Comment. The Department shall provide adequate time for other agencies and members of the public to review and comment on EIR's that the Department or one of its subdivisions prepares. The review periods the Department sets shall coincide with those the State Clearinghouse sets, provided that the review period for draft EIR's for geothermal exploratory projects shall be no longer than 30 calendar days. Note: Authority cited: Section 21082, Public Resources Code. Reference: Sections 3715.5 and 21092, Public Resources Code. s 1690. Selection of Professional Service Firms. (a) The purpose of these regulations is to establish those procedures authorized and required by Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. (b) Selection by the division for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Selection of the services of analytical laboratory, forestry, geological, geophysical, and other firms shall be on this same basis when the additional services qualify as environmental services or ancillary services logically or justifiably performed in connection with architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services. Note: Authority cited: Sections 3013 and 3106, Public Resources Code; and Section 4526, Government Code. Reference: Sections 4525-4529.5, Government Code. s 1690.1. Definitions, as Used in These Regulations. (a) "Division" means the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation. (b) "Small business" shall mean a small business firm as defined by the Director of General Services (Section 1896, Title 2 of California Code of Regulations) pursuant to Section 14837 of the Government Code. (c) "Architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services" are those services to be procured outside State of California Civil Service procedures and of a character necessarily rendered by an architect, landscape architect, engineer, environmental specialist, land surveyor, and construction project management contractor, but may include ancillary services logically or justifiably performed in connection therewith. (d) "Project" means a project as defined in Section 10105 of the Public Contract Code, or as defined in Public Resources Code section 21065. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5 and 14837, Government Code; and Section 10105, Public Contract Code; and Section 21065, Public Resources Code. s 1691. Establishment of Criteria. (a) The division shall establish criteria, on a case-by-case basis, which will comprise the basis for selection for each project. The criteria shall include, but is not limited to, such factors as professional excellence, demonstrated competence, specialized experience of the firm, education and experience of key personnel to be assigned, staff capability, workload, ability to meet schedules, nature and quality of completed work, reliability and continuity of the firm, location, and other considerations deemed relevant. Such factors shall be weighted by the division according to the nature of the project, the needs of the State and complexity and special requirements of the specific project. (b) In no event shall the criteria include practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration. Division staff with a relationship to a person or business entity seeking a contract under this section are prohibited from participating in the selection process if the division staff would be subject to the prohibition of Government Code Section 87100. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5 and 87100, Government Code. s 1692. Estimate of Value of Services. Before any discussion with any firm concerning fees, the division may cause an estimate of the value of such services to be prepared. This estimate shall serve as a guide in determining fair and reasonable compensation for the services rendered. Such estimate shall be, and remain, confidential until award of contract or abandonment of any further procedure for the services to which it relates. At any time the division determines the estimates to be unrealistic because of rising costs, special conditions, or for other relevant considerations, the estimate may be reevaluated and modified if necessary. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1693. Request for Qualifications. (a) Where a project requires architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services, the division shall make an announcement in a publication of the respective professional society. Additionally, the Division may publish an announcement in a construction trade journal or in other appropriate publication, if any exist. The announcement shall be published within a reasonable time frame so that a lengthy publication delay does not adversely affect the project. (b) The announcement shall contain the following information: The nature of the work, the criteria upon which the award shall be made, and the time within which statements of interest, qualification and performance data will be received. (c) The division shall endeavor to provide to all small business firms who have indicated an interest in receiving such, a copy of each announcement for projects for which the division concludes that small business firms could be especially qualified. A failure of the division to send a copy of an announcement to any firm shall not operate to preclude any contract. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1694. Selection of Firm. After expiration of the time period stated in the announcement, the division shall evaluate statements of qualifications and performance data which have been submitted to the division. Discussions shall be conducted with no less than three firms regarding the required service. Where three firms cannot be found which could provide the required service, a full explanation including names and addresses of firms and individuals requested to submit proposals must be entered in the files. From the firms with which discussions are held, the division shall select no less than three, provided at least three firms submit proposals, in order of preference, based upon the established criteria, which are deemed to be the most highly qualified to provide the services required. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1695. Negotiation. The division shall attempt to negotiate a contract with the most highly qualified firm. When the division is unable to negotiate a satisfactory contract with this firm with fair and reasonable compensation provisions, as determined by the procedure set forth in Section 1692 if those procedures were used, negotiations shall be terminated. The division shall then undertake negotiations with the second most qualified firm on the same basis. Failing accord, negotiations shall be terminated. The division shall then undertake negotiations with the third most qualified firm on the same basis. Failing accord, negotiations shall be terminated. Should the division be unable to negotiate a satisfactory contract at fair and reasonable compensation with any of the selected firms, additional firms may be selected in the manner prescribed in this Chapter and the negotiation procedure continued. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1696. Amendments. In instances where the division effects a necessary change in the project during the course of performance of the contract, the firm's compensation may be adjusted by negotiation of a mutual written agreement in a fair and reasonable amount where the amount of work to be performed by the firm is changed from that which existed previously in the contemplation of the parties. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1697. Contracting in Phases. Should the division determine that it is necessary or desirable to have a given project performed in phases, it will not be necessary to negotiate the total contract price or compensation provisions in the initial instance, provided that the division shall have determined that the firm is best qualified to perform the whole project at a fair and reasonable cost, and the contract contains provisions that the division, at its option, may utilize the firm for other phases and that the firm will accept a fair and reasonable price for subsequent phases to be later negotiated and reflected in a subsequent written instrument. The procedure with regard to estimates and negotiation shall otherwise be applicable. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1698. Division's Power to Require Bids. Where the division determines that the services needed are technical in nature and involve little professional judgment and that requiring bids would be in the public interest, a contract shall be awarded on the basis of bids rather than by following the foregoing procedures for requesting proposals and negotiations. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1699. Exclusions. The provisions of this article shall not apply to service agreements for an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor, engaged to provide consulting services on specific problems on projects where the architectural, landscape architectural, engineering, environmental, land surveying, or construction project management work is being performed by State of California Civil Service employees nor to service agreements for the services of recognized experts retained as consultants. Note: Authority cited: Section 4526, Government Code; and Section 3013, Public Resources Code. Reference: Sections 4525-4529.5, Government Code. s 1710. Purpose. Note: Authority cited: Sections 3013 and 3016, Public Resources Code. Reference: Sections 3000 through 3237, Public Resources Code. s 1711. Policy. s 1712. Scope of Regulations. These regulations shall be statewide in application for onshore drilling, production, and injection operations. All onshore prospect, development, and service wells shall be drilled and operated in accordance with these regulations, which shall continue in effect until field rules are established by the supervisor pursuant to Section 1722(k). If field rules are established, oil and gas operations shall be performed in accordance with those field rules. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1713. Revision of Regulations. s 1714. Approval of Well Operations. Written approval of the supervisor is required prior to commencing drilling, reworking, injection, plugging, or plugging and abandonment operations, with the exception that temporary approval to commence such operations may be granted by the supervisor or a representative of the supervisor when such operations are necessary to avert a threat to life, health, property, or natural resources, or when approved operations are in progress and newly discovered well conditions are such that immediate corrective or plugging and abandonment operations are desirable. Notwithstanding such temporary approval, the operator shall file immediately a written notice of intention to carry out a temporarily approved program. In addition, written approval of the supervisor is required prior to utilizing any well, including a plugged and abandoned well, for anything other than its currently approved purpose, such as conversion to injection or production, use as a sacrificial anode in a cathodic-protection program, or conversion to a freshwater well. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3008, 3106, 3203 and 3229, Public Resources Code. s 1715. Other Requirements. Note: Authority cited: Sections 3106 and 3107, Public Resources Code. Reference: Sections 3106, 3107, 3203, 3210-3215, 3219, 3220 and 3222-3224, Public Resources Code. s 1720. Definitions. (a) "Critical well" means a well within: (1) 300 feet of the following: (A) Any building intended for human occupancy that is not necessary to the operation of the well; or (B) Any airport runway. (2) 100 feet of the following: (A) Any dedicated public street, highway, or nearest rail of an operating railway that is in general use; (B) Any navigable body of water or watercourse perennially covered by water; (C) Any public recreational facility such as a golf course, amusement park, picnic ground, campground, or any other area of periodic high-density population; or (D) Any officially recognized wildlife preserve. Exceptions or additions to this definition may be established by the supervisor upon his or her own judgment or upon written request of an operator. This written request shall contain justification for such an exception. (b) "Rework" means any operation subsequent to drilling that involves deepening, redrilling, plugging, or permanently altering in any manner the casing of a well or its function. (c) "New pool" means, for the purpose of this subchapter, a pool discovered on or after January 1, 1974. (d) "Directional survey" means a well survey that determines the deviation of the hole in degrees from the vertical and the direction (azimuth) and amount of horizontal deviation of the hole from the surface location. (e) "Drift-only survey" means a well survey that determines the deviation of the hole in degrees from the vertical. (f) "Operations" means any one or all of the activities of an operator covered by Division 3 of the Public Resources Code. (g) "Onshore well" means a well located on lands that are not submerged under ocean waters or inland bays during mean high tide. (h) "Ultimate economic recovery" means the maximum physical amount of a substance, such as oil or gas, that can be recovered without economic loss. (i) "Economic loss" means the loss that occurs when the lifetime discounted revenue after current dollar operating costs, including royalties and ad valorem, severance, and excise taxes, becomes less than the initial drilling and completion costs. The discount rate shall be equal to current prime lending rates plus two percent. Note: Wells directionally drilled offshore from onshore locations shall fall within the scope of the Onshore Regulations and wells directionally drilled onshore from offshore locations shall fall within the scope of the Offshore Regulations (Subchapter 1.1). Note: Authority cited: Sections 3013 and 3609, Public Resources Code. Reference: Sections 3000, 3013, 3106 and 3609, Public Resources Code. s 1721. Objectives and Policy. The objectives of this article are to prevent waste, protect correlative rights, increase the ultimate economic recovery of oil and gas, or either, from new pools, and protect health, safety, welfare, and the environment. To achieve the ultimate economic recovery of oil and gas, it shall be the policy of the supervisor to give the greatest consideration to the minimum spacing, in acres per well, that can be established based on the geologic geometry of the pool and the area that can be effectively and efficiently drained by a well without economic loss. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.1. Set Back. The producing interval of any well drilled into a new pool after the effective date of this section shall be not less than 75 feet from an outer boundary line. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.1.1. Adoption of an Interim Well-Spacing Plan. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.1.2. Permanent Well Spacing. s 1721.1.3. Exploratory Well Drilling. Note: Authority cited: Sections 3609 and 3782, Public Resources Code. s 1721.1.4. Slant Well Drilling. s 1721.2. Well Spacing Initiated by Supervisor. (a) Whenever a new pool is discovered, the supervisor may issue a notice of intent to establish a well-spacing plan for the pool the notice shall specify the well-spacing plan proposed by the supervisor. The notice shall be delivered or mailed to all operators in the pool and any other affected persons whose identity is known to or can readily be ascertained by the division, and shall be published in a newspaper of general circulation in the county in which the pool is located. (b) The notice shall provide that the well spacing plan proposed by the supervisor shall take effect as an order of the supervisor on the 31st day after the date of the notice unless within 30 days after the date of the notice the supervisor receives a written objection to the proposed well spacing plan from any affected person, submitting a written objection is a prerequisite to any challenge to the implementation of a well spacing plan initiated by the supervisor. If a written objection is timely received, the supervisor shall set a hearing on the well spacing proposal and shall give notice of that hearing in the manner provided above, within 10 days of receipt of the written objection. The hearing shall be held at a time not less than 15 days nor more than 60 days from the date of the notice and at a place within the oil and gas district where the new pool is located. The hearing may be continued for a period not to exceed 60 days with the consent of all those affected persons having informed the division of their intent to participate in the hearing. (c) Within 45 days following the hearing, the supervisor shall issue an order in the form of a written decision either providing no well spacing plan or specifying a well spacing plan for the pool. If a well spacing plan is adopted, the plan shall describe the pool to which it applies and set forth the surface and subsurface well spacing pattern for all wells to be drilled or redrilled into the pool. (d) The supervisor shall mail or deliver the written decision to all operators in the pool and all other previously identified affected persons. (e) The supervisor may request at any time from any operator in the pool any or all of the data listed in Section 1721.3 for use in making the well spacing determination. If such data are neither supplied nor otherwise available to the supervisor, the supervisor nevertheless may make a well spacing determination using methods found in petroleum industry literature or by analogy to similar pools. Note: Authority cited: Section 3609, Public Resources Code. Reference: Sections 3609, Public Resources Code. s 1721.2.1. No New Drilling Pending Outcome of Petition. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.3. Petition for Well Spacing. Any affected person may, at any time after the discovery of a new pool, petition the supervisor to adopt, pursuant to Public Resources Code Section 3609, a well-spacing plan other than that specified in Public Resources Code Sections 3600 to 3608.1, inclusive, or Section 1721.1 hereof. The petition shall be supported by information necessary to establish the need for an extent of such a well-spacing plan. The petition shall contain the following data pertaining to the pool for which well-spacing is sought and shall include the source (i.e., laboratory analyses, field measurements, published reports, etc.) from which such data are derived: (a) Lease map of the area showing current lease operator and well locations. (b) Structural contour map drawn on a geologic marker at or near the top of the pool, which includes estimated productive limits of the pool. (c) At least two geologic cross sections, one that is parallel to and one that is perpendicular to the structural or depositional strike, and through at least one producing well in the pool. (d) Representative electric log to a depth below the producing pool (if not already shown on the cross section) identifying all geologic units, formations, and oil or gas zones. (e) Average net productive thickness in feet. (f) Average effective porosity as a percent of bulk volume. (g) Average initial oil, water, and gas saturations as a percent of pore volume. (h) Most probable oil and gas recovery factors as percents of original oil and gas in place. (i) Average initial stabilized oil and gas producing rates in barrels per day per well and thousand standard cubic feet per day per well. (j) Complete reservoir pressure history, including the initial shut-in bottom hole pressure and the bubble point pressure of a crude oil system or dew point pressure of a condensate system. (k) Reservoir temperature in degrees Fahrenheit. (l) Solution gas/oil ratio at bubble point pressure and reservoir temperature. (m) Initial oil formation volume factor as reservoir barrels per stock tank barrel. (n) Average API gravity of stock tank oil and specific gravity of produced gas. (o) Average current drilling and completion cost in dollars per well. (p) Average current operating cost in dollars per well per year, including anticipated workover costs. (q) Current market value of oil and gas production in dollars per stock tank barrel and dollars per thousand standard cubic feet. (r) Amount of all royalty interests, including overriding royalties, if any, in the tracts proposed for inclusion in the well-spacing plan. (s) Current ad valorem, severance, and excise taxes levied on the working interests, or production attributable to the working interests, proposed for inclusion in the well-spacing plan. Failure to supply in the petition of any of these data that are available and their source shall be grounds for denial of the petition without a hearing. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.3.1. Action on Petition for Well Spacing. (a) Within 30 days of receipt of a petition for well spacing deemed complete by the division, the supervisor shall issue a notice setting a time and place for a hearing on the petition. The notice of hearing on the petition shall provide that the hearing shall be held not less than 15 days nor more than 60 days from the date of the notice and at a place within the oil and gas district in which the new pool is located. The hearing may be continued for a period not to exceed 60 days with the consent of all those affected persons having informed the division of their intent to participate in the hearing. The notice of hearing shall be given in the manner prescribed in Section 1721.2. The hearing shall not be limited to consideration of the well-spacing plan proposed in the petition but shall encompass consideration of any appropriate well-spacing plan for the pool. (b) Within 45 days following the hearing, the supervisor shall issue an order in the form of a written decision which either shall refuse to adopt a well-spacing plan or shall adopt a well-spacing plan for the pool based on scientific principles and good oilfield practices. The adopted plan shall describe the pool to which it applies and set forth the surface and subsurface well-spacing pattern for all wells to be drilled or redrilled into the pool. (c) The supervisor shall mail or deliver the written decision to all operators in the pool and all other previously identified affected persons. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.4. No New Drilling or Reworking Pending Decision on Well Spacing. Upon the issuance by the supervisor of a notice of intent to establish a well spacing plan under Section 1721.2 or upon the filing of a complete petition for well spacing under Section 1721.3, no drilling or reworking operations shall begin on any well to be completed in the pool subject to possible well spacing even if the operator has an approved notice of intention to drill or rework until an order has been issued by the supervisor that disposes with all the matters in the supervisor's notice or in the petition. If drilling or reworking operations have started in a well prior to the issuance of a notice or the filing of a petition, the operations may continue until completion. This temporary suspension of drilling and reworking operations is for the purpose of preventing operations during the pendency of well spacing proceedings that would preclude the establishment of an optimum spacing pattern. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.5. Judicial Review of Order of Supervisor. There shall be no appeal to the director from an order of the supervisor either adopting or failing to adopt a well-spacing plan. Judicial review of any such order may be sought directly. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.6. Revision or Repeal of Spacing Plan. Any well-spacing plan adopted by the supervisor shall be subject to revision or repeal pursuant to either the initiative of the supervisor or a petition of an affected person. Any revision or repeal shall be preceded by notice and hearing as provided in Section 1721.2. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.7. Exceptions. The supervisor may approve the drilling, redrilling, or production of a well which does not comply with the requirements of a well-spacing plan adopted pursuant to this article or with the set back requirement of section 1721.1 of these regulations if, in the opinion of the supervisor, such drilling, redrilling, or production is necessary to accommodate the use of onshore or offshore central drilling sites; to protect health, safety, welfare, or the environment; to prevent waste; or to otherwise increase the ultimate economic recovery of oil and gas. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.8. Pooling. A well-spacing plan adopted by the supervisor shall require that all or certain parcels of land be included in a voluntary or mandatory pooling agreement if necessary to protect correlative rights. The supervisor may provide, in any order adopting a well-spacing plan, for a period not to exceed 60 days from the date of the order during which the affected parties shall be allowed to attempt to pool voluntarily their respective interests. Such period may be extended at the supervisor's discretion upon the written request of the affected parties. Any well-spacing order providing a period for an attempt at voluntary pooling is not a final order of the supervisor until either voluntary pooling has been accomplished and the supervisor notified of it or the supervisor has ordered mandatory pooling upon the failure of the affected parties to reach a pooling agreement voluntarily. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1721.9. Surveys. For the purpose of enforcement of this article, the supervisor may order that a directional survey or drift-only survey of a well be made and filed with the supervisor before the well can be produced. If such a survey shows that the producing interval of a well is less than 75 feet from an outer boundary line or does not conform to the well-spacing plan, then written approval must be obtained from the supervisor before the well can be produced. Note: Authority cited: Section 3609, Public Resources Code. Reference: Section 3609, Public Resources Code. s 1722. General. (a) All operations shall be conducted in accordance with good oilfield practice. (b) The operator for a facility or group of related facilities shall develop an oil spill contingency plan. Condensate spill plans shall also be developed by the operator for those facilities within gas fields that produce condensate at an average rate of at least one barrel per day or where condensate storage volume exceeds 50 barrels. The plan(s) shall be filed within six months after initial production or acquisition of a facility. A copy of the plan shall be on file in the local office of the operator and subject to the inspection of the supervisor or a representative of the supervisor during regular business hours. If the operator does not have an office in the district, a copy of the plan shall be filed with the division district office. Plans prepared pursuant to Federal Environmental Protection Agency regulations (SPCC Plans) may fulfill the provisions of this subsection if such plans are determined to be adequate by the appropriate division district deputy. If, in the judgment of the supervisor, a plan becomes outdated, the supervisor may require that the plan be updated to ensure that it addresses and applies to current conditions and technology. (c) For certain critical or high-pressure wells designated by the supervisor, a blowout prevention and control plan, including provisions for the duties, training, supervision, and schedules for testing equipment and performing personnel drills, shall be submitted by the operator to the appropriate division district deputy for approval. (d) Notices of intention to drill, deepen, redrill, rework, or plug and abandon wells shall be completed on current division forms and submitted, in duplicate, to the appropriate division district office for approval. Such notices shall include all information required on the forms, and such other pertinent data as the supervisor may require. Notices of intention and approvals will be cancelled if the proposed operations have not commenced within one year of receipt of the notice. However, an approval for proposed operations may be extended for one year if the operator submits a supplementary notice prior to the expiration of the one-year period and can show good cause for such an extension. For the purpose of interpretation and enforcement of provisions of this section, operations, when commenced, must be completed in a timely and orderly manner. (e) A copy of the operator's notice of intention and any subsequent written approval of proposed operations by the division shall be posted at the well site throughout the operations. (f) Operators shall give the appropriate division district office sufficient advance notice of the time for inspections and tests requiring the presence of division personnel. (g) Operations approved by the division shall not deviate from the approved program without prior division approval, except in an emergency. (h) Oil spills shall be promptly reported to the Office of Emergency Services (OES) by calling the toll-free telephone number (800) 852-7550 and by contacting the agencies specified in the operator's oil spill contingency plan. (i) Blowouts, fires, serious accidents, and significant gas or water leaks resulting from or associated with an oil or gas drilling or producing operation, or related facility, shall be promptly reported to the appropriate division district office. (j) The use of radioactive materials in wells shall comply with the California Department of Health Services regulations in Title 17, Division 1, Chapter 5, Subchapter 4 of the California Code of Regulations. With the exception of radioactive tracers used in injection surveys, the loss of radioactive materials in a well shall be promptly reported to the Department of Health Services pursuant to Section 30350.3 of the above-referenced regulations and to the appropriate division district office. (k) When sufficient geologic and engineering information is available from previous drilling, operators may make application to the supervisor for the establishment of field rules, or the supervisor may establish field rules or change established field rules for any oil or gas pool or zone in a field. Before establishing or changing a field rule, the supervisor shall distribute the proposed rule or change to affected persons and allow at least thirty (30) days for comments from the affected persons. The supervisor shall notify affected persons in writing of the establishment or change of field rules. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106, 3203, 3208, 3219, 3222, 3223, 3229 and 3230, Public Resources Code. s 1722.1. Acquiring Right to Operate a Well. Every person who acquires the right to operate any well, whether by purchase, transfer, assignment, conveyance, exchange, or otherwise, shall file an indemnity or cash bond, with his or her own name or company as principal, in the appropriate amount to cover obligations covered under the previous operator's bond. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3204, 3205, 3205.1 and 3205.5, Public Resources Code. s 1722.1.1. Well and Operator Identification. (a) Each well location shall have posted in a conspicuous place a clearly visible, legible, permanently affixed sign with the name of the operator, name or number of the lease, and number of the well. These signs shall be maintained on the premises from the time drilling operations cease until the well is plugged and abandoned. (b) The appropriate division district deputy may approve existing identification methods if they substantially comply with the intent of this section. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106, Public Resources Code. s 1722.2. Casing Program. Each well shall have casing designed to provide anchorage for blowout prevention equipment and to seal off fluids and segregate them for the protection of all oil, gas, and freshwater zones. All casing strings shall be designed to withstand anticipated collapse, burst, and tension forces with the appropriate design factor provided to obtain a safe operation. Casing setting depths shall be based upon geological and engineering factors, including but not limited to the presence or absence of hydrocarbons, formation pressures, fracture gradients, lost circulation intervals, and the degree of formation compaction or consolidation. All depths refer to true vertical depth (TVD) below ground level. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3219 and 3220, Public Resources Code. s 1722.3. Casing Requirements. (a) Conductor casing. This casing shall be cemented at or driven to a maximum depth of 100 feet. Exceptions may be granted by the appropriate division district deputy if conditions require deeper casing depth. (b) Surface casing. Surface casing shall be cemented into or through a competent bed and at a depth that will allow complete well shut-in without fracturing the formation immediately below the casing shoe. As a general guideline, the surface casing for prospect wells shall be cemented at a depth that is at least 10 percent of the proposed total depth, with a minimum of 200 feet and a maximum of 1,500 feet of casing. A second string of surface casing, cemented into or through a competent bed, shall be required in prospect wells if the first string has not been cemented in a competent bed or if unusual drilling hazards exist. In development wells, the surface casing requirement shall be determined on the basis of known field conditions. The appropriate division district deputy may vary these general surface casing requirements, including the adoption of a field rule, consistent with known geological conditions and engineering factors, to provide adequate protection for freshwater zones and blowout control. (c) Intermediate casing. This casing may be required for protection of oil, gas, and freshwater zones, and to seal off anomalous pressure zones, lost circulation zones, and other drilling hazards. (d) Production casing. This casing shall be cemented and, when required by the division, tested for fluid shutoff above the zone or zones to be produced. The test may be witnessed by a division inspector. When the production string does not extend to the surface, at least 100 feet of overlap between the production string and next larger casing string shall be required. This overlap shall be cemented and tested by a fluid-entry test to determine whether there is a competent seal between the two casing strings. A pressure test may be allowed only when such test is conducted pursuant to an established field rule. The test may be witnessed by a division inspector. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106 and 3220, Public Resources Code. s 1722.4. Cementing Casing. Surface casing shall be cemented with sufficient cement to fill the annular space from the shoe to the surface. Intermediate and production casings, if not cemented to the surface, shall be cemented with sufficient cement to fill the annular space to at least 500 feet above oil and gas zones, and anomalous pressure intervals. Sufficient cement shall also be used to fill the annular space to at least 100 feet above the base of the freshwater zone, either by lifting cement around the casing shoe or cementing through perforations or a cementing device placed at or below the base of the freshwater zone. All casing shall be cemented in a manner that ensures proper distribution and bonding of cement in the annular spaces. The appropriate division district deputy may require a cement bond log, temperature survey, or other survey to determine cement fill behind casing. If it is determined that the casing is not cemented adequately by the primary cementing operation, the operator shall recement in such a manner as to comply with the above requirements. If supported by known geologic conditions, an exception to the cement placement requirements of this section may be allowed by the appropriate division district deputy. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106, 3220 and 3222-3224, Public Resources Code. s 1722.5. Blowout Prevention and Related Well Control Equipment. Blowout prevention and related well control equipment shall be installed, tested, used, and maintained in a manner necessary to prevent an uncontrolled flow of fluid from a well. Division of Oil, Gas, and Geothermal Resources publication No. MO 7, "Blowout Prevention in California," shall be used by division personnel as a guide in establishing the blowout prevention equipment requirements specified in the division's approval of proposed operations. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3219 and 3220, Public Resources Code. s 1722.6. Drilling Fluid Program. The operational procedures and the properties, use, and testing of drilling fluid shall be such as are necessary to prevent the uncontrolled flow of fluids from any well. Drilling fluid additives in sufficient quantity to ensure well control shall be kept readily available for immediate use at all times. Fluid which does not exert more hydrostatic pressure than the known pressure of the formations exposed to the well bore shall not be used in a drilling operation without prior approval of the supervisor. (a) Before removal of the drill pipe or tubing from the hole is begun, the drilling fluid shall be conditioned to provide adequate pressure overbalance to control any potential source of fluid entry. Proper overbalance shall be confirmed by checking the annulus to ensure that there is no fluid flow or loss when there is no fluid movement in the drill pipe or tubing. The drilling fluid weight, the weight and volume of any heavy slug or pill, and the fact that the annulus was checked for fluid movement shall be noted on the driller's log. During removal of the drill pipe or tubing from the hole, a hole-filling program shall be followed to maintain a satisfactory pressure overbalance condition. (b) Tests of the drilling fluid to determine viscosity, water loss, weight, and gel strength shall be performed at least once daily while circulating, and the results of such tests shall be recorded on the driller's log. Equipment for measuring viscosity and fluid weight shall be maintained at the drill site. Exceptions to the test requirements may be granted for special cases, such as shallow development wells in low pressure fields, through the field rule process. (c) Disposal of drilling fluids shall be done in accordance with Section 1775, Subchapter 2 of these regulations. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3219 and 3220, Public Resources Code. s 1722.7. Directional Surveys. The supervisor may order that a well be directionally surveyed. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106 and 3224, Public Resources Code. s 1723. Plugging and Abandonment -General Requirements. (a) Cement Plugs. In general, cement plugs will be placed across specified intervals to protect oil and gas zones, to prevent degradation of usable waters, to protect surface conditions, and for public health and safety purposes. Cement may be mixed with or replaced by other substances with adequate physical properties, which substances shall be approved by the supervisor. The application of these mixed materials and other substances to particular wells shall be at the discretion of the district deputy. (b) Hole Fluid. Mud fluid having the proper weight and consistency to prevent movement of other fluids into the well bore shall be placed across all intervals not plugged with cement, and shall be surface poured into all open annuli. (c) Plugging by Bailer. Placing of a cement plug by bailer shall not be permitted at a depth greater than 3,000 feet. Water is the only permissible hole fluid in which a cement plug shall be placed by bailer. (d) Surface Pours. A surface cement-pour shall be permitted in an empty hole with a diameter of not less than 5 inches. Depth limitations shall be determined on an individual well basis by the district deputy. (e) Blowout Prevention Equipment. Blowout prevention equipment may be required during plugging and abandonment operations. Any blowout prevention equipment and inspection requirements determined necessary by the district deputy shall appear on the approval to plug and abandon issued by the division. (f) Junk in Hole. Diligent effort shall be made to recover junk when such junk may prevent proper plugging and abandonment either in open hole or inside casing. In the event that junk cannot be removed from the hole and fresh-saltwater contacts or oil or gas zones penetrated below cannot therefore be properly abandoned, cement shall be downsqueezed through or past the junk and a 100-foot cement plug shall be placed on top of the junk. If it is not possible to downsqueeze through the junk, a 100-foot cement plug shall be placed on top of the junk. (g) Lost Radioactive Tool. In the event that a source containing radioactive material cannot be retrieved from the hole, a 100-foot standard color dyed (red iron oxide or equivalent red cement dye) cement plug shall be placed on top of the radioactive tool, and a whipstock or other approved deflection device shall be placed on top of the cement plug to prevent accidental or intentional mechanical disintegration of the radioactive source. In addition, the operator shall comply with the California Department of Health Services regulations in Section 30346 of Title 17, Division 1, Chapter 5, Subchapter 4, Group 3, Article 7, of the California Code of Regulations. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3219 and 3228, Public Resources Code. s 1723.1. Plugging of Oil or Gas Zones. (a) Plugging in an Open Hole. A cement plug shall be placed to extend from the total depth of the well or from at least 100 feet below the bottom of each oil or gas zone, to at least 100 feet above the top of each oil or gas zone. (b) Plugging in a Cased Hole. All perforations shall be plugged with cement, and the plug shall extend at least 100 feet above the top of a landed liner, the uppermost perforations, the casing cementing point, the water shut-off holes, or the oil or gas zone, whichever is highest. (c) Special Requirements. Special requirements may be made for particular types of hydrocarbon zones, such as: (1) Fractured shale or schist; (2) Massive sand intervals, particularly those with good vertical permeability; (3) Any depleted productive interval more than 100 feet thick; or (4) Multiple zones completed in a well. As a minimum for an open-hole plugging and abandonment, the special requirement shall include a cement plug extending from at least 100 feet below the top of the oil or gas zone to at least 100 feet above the top of the zone. As a minimum for a cased-hole plugging and abandonment, the special requirement shall include a cement plug extending from at least 25 feet below the top of the uppermost perforated interval to at least 100 feet above the top of the perforations, the top of the landed liner, the casing cementing point, the water shutoff holes, or the zone, whichever is highest. (d) Bridge Plug. In a multiple zone completion, a single bridge plug above the lowermost zone may be allowed in lieu of cement through that zone if the zone is isolated from the upper zones by cement behind the casing. Subsequent bridge plugs are not allowed unless separated by cement plugs meeting the requirements of Section 1723.1(b). Temporary bridge plugs must be removed and replaced with cement plugs prior to shallower zone completions or well abandonment. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3228, Public Resources Code. s 1723.2. Plugging for Freshwater Protection. (a) Plugging in Open Hole. (1) A minimum 200-foot cement plug shall be placed across all fresh-saltwater interfaces. (2) An interface plug may be placed wholly within a thick shale if such shale separates the freshwater sands from the brackish or saltwater sands. (b) Plugging in a Cased Hole. (1) If there is cement behind the casing across the fresh-saltwater interface, a 100-foot cement plug shall be placed inside the casing across the interface. (2) If the top of the cement behind the casing is below the top of the highest saltwater sands, squeeze-cementing shall be required through perforations to protect the freshwater deposits. In addition, a 100-foot cement plug shall be placed inside the casing across the fresh-saltwater interface. (3) Notwithstanding other provisions of this section, the district deputy may require or allow a cavity shot immediately below the base of the freshwater sands. In such cases, the hole shall be cleaned out to the estimated bottom of the cavity and a 100-foot cement plug shall be placed in the casing from the cleanout point. (c) Special Plugging Requirements. Where geologic or groundwater conditions dictate, special plugging procedures may be specified to prevent contamination of usable waters by downward percolation of poor quality surface waters, separate water zones of varying quality, and isolate dry sands that are in hydraulic continuity with groundwater aquifers. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106 and 3228, Public Resources Code. s 1723.3. Plugging at a Casing Shoe. If the hole is open below a shoe, a cement plug shall extend from at least 50 feet below to at least 50 feet above the shoe. If the hole cannot be cleaned out to 50 feet below the shoe, a 100-foot cement plug shall be placed as deep as possible. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106 and 3228, Public Resources Code. s 1723.4. Plugging at the Casing Stub. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106 and 3228, Public Resources Code. s 1723.5. Surface Plugging. The hole and all annuli shall be plugged at the surface with at least a 25-foot cement plug. The district deputy may require that inner strings of uncemented casing be removed to at least the base of the surface plug prior to placement of the plug. All well casing shall be cut off at least 5 feet but no more than 10 feet below the surface of the ground. The district deputy may approve a different cut-off depth, as conditions warrant, including but not limited to excavation or grading operations for construction purposes. As defined in Section 1760(j), a steel plate at least as thick as the outer well casing shall be welded around the circumference of the casing at the top of the casing, after division approval of the surface plug. The steel plate shall show the well's identification, indicated by the last five digits of the API well number. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1723.6. Recovery of Casing. (a) Approval to recover all casing possible will be given in the plugging and abandonment of wells where subsurface plugging can be done to the satisfaction of the district deputy. (b) The hole shall be full of fluid prior to the detonation of any explosives in the hole. Such explosives shall be utilized only by a licensed handler with the required permits. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106 and 3228, Public Resources Code. s 1723.7. Inspection of Plugging and Abandonment Operations. Plugging and abandonment operations that require witnessing by the division shall be witnessed and approved by a division employee. When discretion is indicated by these regulations, the district deputy shall determine which operations are to be witnessed. (a) Blowout prevention equipment -may inspect and witness testing of equipment and installation. (b) Oil and gas zone plug -may witness placing and shall witness location and hardness. (c) Mudding of hole -may witness mudding operations and determine that specified physical characteristics of mud fluid are met. (d) Freshwater protection: (1) Plug in open hole -may witness placing and shall witness location and hardness. Plug in cased hole -shall witness placing or location and hardness. (2) Cementing through perforations -may witness perforating and shall witness cementing operation. (3) Cavity shot -may witness shooting and shall witness placing or location and hardness of required plug. (e) Casing shoe plug -shall witness placing or location and hardness. (f) Casing stub plug -may witness placing or location and hardness. (g) Surface plug -may witness emplacement and shall witness or verify location. (h) Environmental inspection (after completion of plugging operations) -shall determine that division environmental regulations (California Code of Regulations, Title 14, Subchapter 2) have been adhered to. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3228, Public Resources Code. s 1723.8. Special Requirements. The supervisor, in special cases, may set forth other plugging and abandonment requirements or may establish field rules for the plugging and abandonment of wells. Such cases include, but are not limited to: (a) The plugging of a high-pressure saltwater zone. (b) Perforating and squeeze-cementing previously uncemented casing within and above a hydrocarbon zone. (c) The plugging of particular zones or specifying cleanout intervals within a wellbore. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1723.9. Testing of Idle Wells. Any well that has not produced oil or natural gas or been used for fluid injection for a continuous six-month period during any consecutive five-year period, prior to or after the adoption of this regulation, must have either the fluid level determined using acoustical, mechanical, or other reliable methods, or other diagnostic tests as approved by the supervisor. Additional well tests or remedial operations may be required if the fluid level is located above or adjacent to freshwater or potential drinking water zones, or as specified by the appropriate division district deputy. Subsequent testing periods shall be based on the fluid level in the well, the well's location in relation to freshwater zones, mitigation measures taken by the operator to prevent fluid migration, or other factors determined by the appropriate division district deputy, upon a showing of good cause. The appropriate district office shall be notified before tests are made, as a Division inspector may witness the operations. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1724. Required Well Records. The operator of any well drilled, redrilled, deepened, or reworked shall keep, or cause to be kept, an accurate record of each operation on each well including, but not limited to, the following, when applicable: (a) Log and history showing chronologically the following data: (1) Character and depth of all formations, water-bearing strata, oil- and gas-bearing zones, lost circulation zones, and abnormal pressure zones encountered. (2) Casing size, weight, grade, type, condition (new or used), top, bottom, and perforations; and any equipment attached to the casing. (3) Tubing size and depth, type and location of packers, safety devices, and other tubing equipment. (4) Casing pressure tests and pressure tests of the casing-tubing annulus, including date, duration, pressure, and percent bleed-off. (5) Hole sizes. (6) Cementing and plugging operations, including date, depth, slurry volume and composition, fluid displacement, pressures, calculated or actual fill, and downhole equipment. (7) Drill-stem, leak-off, or other formation tests, including date, duration, depth, pressures, and recovery (volume and description). (8) BOPE installation, inspections, and pressure tests. (9) Water shutoff and lap tests of casing, including date, duration, depth, and results. (10) Sidetracked casing, tools or other material, collapsed or bad casing, holes in casing, and stuck drill pipe, tubing, or other junk in casing or open hole. (11) Depth and type of all electrical, physical, or chemical logs, tests, or surveys made. (12) Production or injection method and equipment. (b) Core record showing the depth, character, and fluid content, so far as determined, of all cores, including sidewall samples. (c) Such other information as the supervisor may require for the performance of his or her statutory duties. Note: Authority cited: Sections 3013 and 3107, Public Resources Code. Reference: Sections 3106, 3107, 3203, 3210 and 3214, Public Resources Code. s 1724.1. Records to Be Filed with the Division. Two true and reproducible copies of the well summary, core record, and history, and all electrical, physical and chemical logs, tests and surveys run, including mud logs shall be filed with the division within 60 days after the completion, plugging and abandonment, or suspension of operations of a well. Dipmeter surveys shall be submitted in a form indicating the computed direction and amount of dip. Note: Authority cited: Sections 3013, 3106 and 3107, Public Resources Code. Reference: Sections 3107, 3215 and 3216, Public Resources Code. s 1724.2. Maintenance of Production Facilities, Safety Systems, and Equipment. All surface equipment, including but not limited to production safety systems, wellheads, separators, pumps, manifolds, valves, and pipelines, used for the production of oil, gas, and waste water shall be maintained in good condition at all times to safeguard life, health, property, and natural resources. Safety systems and equipment associated with consolidated production facilities in urban areas may be inspected and tested at six-month intervals. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106, 3219, 3220 and 3222-3224, Public Resources Code. s 1724.3. Well Safety Devices for Critical Wells. Certain wells designated by the supervisor, that meet the definition of "critical" pursuant to Section 1720(a) and have sufficient pressure to allow fluid-flow to the surface, shall have safety devices as specified by the supervisor, installed and maintained in operating condition. A description of such safety devices follows: (a) Surface safety devices. (1) Fail-close, well shut-in or shut-down devices. Wellhead assemblies shall be equipped with an automatic fail-close valve. (2) High-low pressure sensors in all flowlines, set to actuate shut in or shut down of the well(s) in the event of abnormal pressures in the flowlines. (3) Check valves in all headers, except for gas storage wells, to prevent backflow in the event of flowline failure. All flowlines and valves shall be capable of withstanding shut-in wellhead pressure, unless protected by a relief valve with connections to bypass the header. (4) Fire detection devices, such as fusible plugs, at strategic points in pneumatic, hydraulic, and other shut-in control lines in fire hazard areas. (5) Remote, manually operated, quick operating shut-in controls at strategic points. (b) Subsurface safety devices. (1) A surface-controlled, subsurface tubing safety valve installed at a depth of 50 feet or more below the ground level. For shut-in wells capable of flowing, a tubing plug may be installed in lieu of a subsurface tubing safety valve. Subsurface safety devices shall be installed, adjusted, and maintained to ensure reliable operation. If for any reason a subsurface safety device is removed from a well, a replacement subsurface safety device or tubing plug shall be promptly installed. Any well in which a subsurface safety device or tubing plug is installed shall have the tubing-casing annulus sealed at or below the valve- or plug-setting depth. A bypass-type packer that will seal the annulus on manual or automatic operation of the tubing subsurface safety device will meet this requirement. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106 and 3219, Public Resources Code. s 1724.4. Testing and Inspection of Safety Devices. (a) All installed well safety devices, required pursuant to Section 1724.3 of this article, shall be tested at least every six (6) months, as follows: (1) Flow line pressure sensors shall be tested for proper pressure settings. (2) Automatic wellhead safety valves shall be tested for reliable operation and holding pressure. (3) Subsurface safety devices shall be tested for reliable operation. (4) Tubing plugs or packers shall be tested for holding pressure . (b) The appropriate division district office shall be notified before such tests are made, as these tests may be witnessed by a division inspector. Test failures not immediately repaired or corrected and not witnessed by a division inspector shall be reported to the division within 24 hours. (c) The supervisor may establish a special testing schedule for safety devices other than that specified in this section, based upon equipment performance or special conditions. (d) The operator shall maintain records, available to division personnel during business hours, showing the present status and history of each well safety device installed, including dates, details and results of inspections, tests, repairs, reinstallations, and replacements. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106 and 3219, Public Resources Code. s 1724.5. Surface Disposal of Waste Water. Note: Authority cited: Sections 3106 and 3107, Public Resources Code. Reference: Sections 3106, 3107, 3203, 3210-3215, 3219, 3220 and 3222-3224, Public Resources Code. s 1724.6. Approval of Underground Injection and Disposal Projects. Approval must be obtained from this division before any subsurface injection or disposal project can begin. This includes all EPA Class II wells and air- and gas-injection wells. The operator requesting approval for such a project must provide the appropriate division district deputy with any data that, in the judgment of the supervisor, are pertinent and necessary for the proper evaluation of the proposed project. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1724.7. Project Data Requirements. (Note: See Section 1724.8 for special requirements for cyclic steam projects, and Section 1724.9 or supplementary requirements for gas storage projects.) The data required to be filed with the district deputy include the following, where applicable: (a) An engineering study, including but not limited to: (1) Statement of primary purpose of the project. (2) Reservoir characteristics of each injection zone, such as porosity, permeability, average thickness, areal extent, fracture gradient, original and present temperature and pressure, and original and residual oil, gas, and water saturations. (3) Reservoir fluid data for each injection zone, such as oil gravity and viscosity, water quality, and specific gravity of gas. (4) Casing diagrams, including cement plugs, and actual or calculated cement fill behind casing, of all idle, plugged and abandoned, or deeper-zone producing wells within the area affected by the project, and evidence that plugged and abandoned wells in the area will not have an adverse effect on the project or cause damage to life, health, property, or natural resources. (5) The planned well-drilling and plugging and abandonment program to complete the project, including a flood-pattern map showing all injection, production, and plugged and abandoned wells, and unit boundaries. (b) A geologic study, including but not limited to: (1) Structural contour map drawn on a geologic marker at or near the top of each injection zone in the project area. (2) Isopachous map of each injection zone or subzone in the project area. (3) At least one geologic cross section through at least one injection well in the project area. (4) Representative electric log to a depth below the deepest producing zone (if not already shown on the cross section), identifying all geologic units, formations, freshwater aquifers, and oil or gas zones. (c) An injection plan, including but not limited to: (1) A map showing injection facilities. (2) Maximum anticipated surface injection pressure (pump pressure) and daily rate of injection, by well. (3) Monitoring system or method to be utilized to ensure that no damage is occurring and that the injection fluid is confined to the intended zone or zones of injection. (4) Method of injection. (5) List of proposed cathodic protection measures for plant, lines, and wells, if such measures are warranted. (6) Treatment of water to be injected. (7) Source and analysis of the injection liquid. (8) Location and depth of each water-source well that will be used in conjunction with the project. (d) Copies of letters of notification sent to offset operators. (e) Other data as required for large, unusual, or hazardous projects, for unusual or complex structures, or for critical wells. Examples of such data are: isogor maps, water-oil ratio maps, isobar maps, equipment diagrams, and safety programs. (f) All maps, diagrams and exhibits required in Section 1724.7(a) through (e) shall be clearly labeled as to scale and purpose and shall clearly identify wells, boundaries, zones, contacts, and other relevant data. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1724.8. Data Required for Cyclic Steam Injection Project Approval. The data required by the division prior to approval of a cyclic steam (steam soak) project include, but are not limited to, the following: (a) A letter from the operator notifying the division of the intention to conduct cyclic steam injection operations on a specific lease, in a specific reservoir, or in a particular well. (b) If cyclic steam injection is to be in wells adjacent to a lease boundary, a copy of a letter notifying each offset operator of the proposed project. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1724.9. Gas Storage Projects. The data required by the division prior to approval of a gas storage project include all applicable items listed in Section 1724.7(a) through (e), and the following, where applicable: (a) Characteristics of the cap rock, such as areal extent, average thickness, and threshold pressure. (b) Oil and gas reserves of storage zones prior to start of injection, including calculations. (c) List of proposed surface and subsurface safety devices, tests, and precautions to be taken to ensure safety of the project. (d) Proposed waste water disposal method. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1724.10. Filing, Notification, Operating, and Testing Requirements for Underground Injection Projects. (a) The appropriate division district deputy shall be notified of any anticipated changes in a project resulting in alteration of conditions originally approved, such as: increase in size, change of injection interval, or increase in injection pressure. Such changes shall not be carried out without division approval. (b) Notices of intention to drill, redrill, deepen, or rework, on current division forms, shall be completed and submitted to the division for approval whenever a new well is to be drilled for use as an injection well and whenever an existing well is converted to an injection well, even if no work is required on the well. (c) An injection report on a current division form or in a computerized format acceptable to the division shall be filed with the division on or before the 30th day of each month, for the preceding month. (d) A chemical analysis of the liquid being injected shall be made and filed with the division whenever the source of injection liquid is changed, or as requested by the supervisor. (e) An accurate, operating pressure gauge or pressure recording device shall be available at all times, and all injection wells shall be equipped for installation and operation of such gauge or device. A gauge or device used for injection-pressure testing, which is permanently affixed to the well or any part of the injection system, shall be calibrated at least every six months. Portable gauges shall be calibrated at least every two months. Evidence of such calibration shall be available to the division upon request. (f) All injection piping, valves, and facilities shall meet or exceed design standards for the maximum anticipated injection pressure, and shall be maintained in a safe and leak-free condition. (g) All injection wells, except steam, air, and pipeline-quality gas injection wells, shall be equipped with tubing and packer set immediately above the approved zone of injection within one year after the effective date of this act. New or recompleted injection wells shall be equipped with tubing and packer upon completion or recompletion. Exceptions may be made when there is: (1) No evidence of freshwater-bearing strata. (2) More than one string of casing cemented below the base of fresh water. (3) Other justification, as determined by the district deputy, based on documented evidence that freshwater and oil zones can be protected without the use of tubing and packer. (h) Data shall be maintained to show performance of the project and to establish that no damage to life, health, property, or natural resources is occurring by reason of the project. Injection shall be stopped if there is evidence of such damage, or loss of hydrocarbons, or upon written notice from the division. Project data shall be available for periodic inspection by division personnel. (i) To determine the maximum allowable surface injection pressure, a step-rate test shall be conducted prior to sustained liquid injection. Test pressure shall be from hydrostatic to the pressure required to fracture the injection zone or the proposed injection pressure, whichever occurs first. Maximum allowable surface injection pressure shall be less than the fracture pressure. The appropriate district office shall be notified prior to conducting the test so that it may be witnessed by a division inspector. The district deputy may waive or modify the requirement for a step-rate test if he or she determines that surface injection pressure for a particular well will be maintained considerably below the estimated pressure required to fracture the zone of injection. (j) A mechanical integrity test (MIT) must be performed on all injection wells to ensure the injected fluid is confined to the approved zone or zones. An MIT shall consist of a two-part demonstration as provided in subsections (j)(1) and (2). (1) Prior to commencing injection operations, each injection well must pass a pressure test of the casing-tubing annulus to determine the absence of leaks. Thereafter, the annulus of each well must be tested at least once every five years; prior to recommencing injection operations following the repositioning or replacement of downhole equipment; or whenever requested by the appropriate division district deputy. (2) When required by subsection (j) above, injection wells shall pass a second demonstration of mechanical integrity. The second test of a two-part MIT shall demonstrate that there is no fluid migration behind the casing, tubing, or packer. (3) The second part of the MIT must be performed within three (3) months after injection has commenced. Thereafter, water-disposal wells shall be tested at least once each year; waterflood wells shall be tested at least once every two years; and steamflood wells shall be tested at least once every five years. Such testing for mechanical integrity shall also be performed following any significant anomalous rate or pressure change, or whenever requested by the appropriate division district deputy. The MIT schedule may be modified by the district deputy if supported by evidence documenting good cause. (4) The appropriate district office shall be notified before such tests/surveys are made, as a division inspector may witness the operations. Copies of surveys and test results shall be submitted to the division within 60 days. (k) Additional requirements or modifications of the above requirements may be necessary to fit specific circumstances and types of projects. Examples of such additional requirements or modifications are: (1) Injectivity tests. (2) Graphs of time vs. oil, water, and gas production rates, maintained for each pool in the project and available for periodic inspection by division personnel. (3) Graphs of time vs. tubing pressure, casing pressure, and injection rate maintained for each injection well and available for periodic inspection by division personnel. (4) List of all observation wells used to monitor the project, indicating what parameter each well is monitoring (i.e., pressure, temperature, etc.), submitted to the division annually. (5) List of all injection-withdrawal wells in a gas storage project, showing casing-integrity test methods and dates, the types of safety valves used, submitted to the division annually. (6) Isobaric maps of the injection zone, submitted to the division annually. (7) Notification of any change in waste disposal methods. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1740. Purpose. It is the purpose of this subchapter to set forth the rules and regulations governing the drilling, redrilling, production, maintenance, and plugging and abandonment of offshore oil and gas wells in accordance with the provisions of Division 3 of the Public Resources Code. Note: Authority cited: Sections 3000-3013 and 3106, Public Resources Code. Reference: Sections 3203-3220 and 3227-3237, Public Resources Code. s 1740.1. Policy. Section 3106 of Division 3 of the Public Resources Code will be administered with the objective of furthering declared legislative policy; namely, that the supervisor shall supervise drilling, operation, maintenance, and plugging and abandonment of wells to prevent as far as possible, damage to life, health, property, and natural resources, damage to underground oil and gas deposits from infiltrating water and other causes, loss of oil, gas, or reservoir energy and damage to underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of detrimental substances by reason of the drilling, operation, maintenance, or plugging and abandonment of wells. s 1740.2. Scope of Regulations. They shall apply to any and all oil or gas well operations conducted from locations within the offshore territorial boundaries and inland bays of the State of California, and where in conflict, the existing regulations shall supersede any and all previous rules, regulations, and requirements pertaining to the operations previously stated. s 1740.3. Revision of Regulations. The supervisor at appropriate intervals, or as the need arises, may review and issue special regulations or change present regulations, and such special regulations or changes shall prevail against general regulations if in conflict therewith. Public hearings on such special issues or changes will be held if required. s 1740.4. Incorporation by Reference. Any documents or part therein incorporated by reference herein are a part of this regulation as though set out in full. s 1740.5. Approval. Written approval of the supervisor is required prior to commencing drilling, reworking, injection, plugging, or abandonment operations. Temporary approval to commence such operations, however, may be granted by the supervisor or his or her representative when such operations are necessary to avert a threat to life, health, property, or natural resources, or when approved operations are in progress and newly discovered well condition are such that immediate corrective or abandonment operations are desirable. Such temporary approval shall be granted only after the operator has provided the division with all information pertaining to the condition of the well, including but not limited to, geological, mechanical, and the results of tests and surveys. Notwithstanding any such temporary approval, the operator shall immediately file a written notice of intention to carry out a program temporarily approved. An operator shall act immediately to correct a condition which creates a clear and present danger to life, health, property, or natural resources and shall immediately notify the division of the condition and the action taken to correct it. s 1741. Definitions. Unless this context otherwise requires, the following definitions shall apply to these regulations: (a) "District" means oil and gas district as provided for in Section 3105 of Division 3 of the Public Resources Code. (b) "Division," in reference to the government of this state, means the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation. (c) "Drilling fluid" means the fluid used in the hole during drilling or other proposed operations. (d) "Field" means the same general surface area which is underlaid or reasonably appears to be underlaid by one or more pools. (e) "Field rules" means unique requirements or procedures which may be established by the supervisor for a producing field. (f) "Gas" means any natural hydrocarbon gas coming from the earth. (g) (Reserved) (h) "Oil" includes petroleum, and "petroleum" includes oil. (i) "Operations" means any one or all of the activities of an operator covered by Division 3 of the Public Resources Code. (j) "Operator" means any person drilling, maintaining, operating, pumping, or in control of any well. (k) "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. (l) "Rework" means any operation subsequent to drilling that involves deepening, redrilling, plugging, or permanently altering in any manner the casing of a well or its function. (m) "String" means a continuous length of connected joints of casing, liner, drill pipe or tubing run into the well, including all attached drilling, cementing, testing, producing, safety, and gravel-pack equipment. (n) "Supervisor" means the State Oil and Gas Supervisor. (o) "Well" means any oil or gas well or well for the discovery of oil or gas, or any well on lands producing or reasonably presumed to contain oil or gas or any well drilled for the purpose of injecting fluids or gas for stimulating oil or gas recovery, repressuring or pressure maintenance of oil or gas reservoirs, or disposing of oil field waste fluids or any well drilled within or adjacent to an oil or gas pool for the purpose of obtaining water to be used in production stimulation or repressuring operations. Note: Authority cited: Section 3106, Public Resources Code. Reference: Sections 3000-3014, Public Resources Code. s 1742. Well Identification. (a) The number or designation, which includes the lease name when used, by which a well shall be known is subject to the approval of the supervisor and shall not be changed without the written consent of the supervisor. (b) Identification of wells. The well designation shall be affixed to the wellhead or guard rail of each completed well. Wells completed from two or more zones shall have the zones individually identified at the wellhead. The supervisor may approve existing well identification methods if they substantially comply with the intent of this section. Identifying signs shall be maintained in a legible condition. (c) Platforms, islands, or other fixed structures shall be identified at two diagonal corners of the platform or structure by a sign with letters and figures not less than 12 inches in height with the following information: the platform or structure designation, the name of lease operator, and the lease designation. The supervisor may approve abbreviations. (d) Non-fixed platforms or structures shall be identified by two (2) signs with letters and figures not less than 12 inches in height affixed to opposite sides of the derrick to be visible from off the vessel with the following information: the name of the operator and the lease designation. s 1743. General Requirements. (a) It is understood that this division's approval of operations is contingent upon the continual fulfillment of all marine and pollution control requirements established by the U. S. Coast Guard and the State of California. (b) All operations are to be conducted in a proper and workmanlike manner in accordance with good oil field practice. (c) All installations shall comply with applicable provisions of Safety Orders of the State Division of Industrial Safety, including the Petroleum Safety Orders, the General Industry Safety Orders and the Unfired Pressure Vessel Safety Orders. (d) An approved oil spill contingency plan that includes provisions for rapid deployment of containment and recovery equipment shall be in effect, and a copy of the plan shall be on file with this division prior to commencing operations. (e) An approved plan for blowout prevention and control, "kick control plan," including provisions for duties, training, supervision, and schedules for testing equipment and drills, shall be on file with the division prior to commencing operations. (f) Tubing, casing, or annulus open to an oil or gas zone shall be sealed off or equipped with a device to shut it in at the surface. (g) A copy of the operator's proposals on division forms and subsequent approval of proposed operations by the division shall be available at the wellsite throughout such operations. (h) Operators shall give adequate prior notice to the division's office of the district in which a well is located, of the time for inspections, and tests required by the division. (i) Operations shall not deviate from the approved basic program without prior approval of the division. Additional requirements may be made at that time. (j) Oil spills or slicks shall be reported to the agencies as specified in the California Oil Spill Disaster Contingency Plan and in the National Oil Hazardous Substances Pollution Contingency Plan. (k) Blowouts, fires, hazardous gas leaks, disasters, major accidents, or similar incidents on or emanating from an oil or gas drilling, producing, or treating facility shall be reported to the division immediately. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3203, Public Resources Code. s 1744. Drilling Regulations. All exploratory wells and initial development wells on offshore sites shall be drilled or reworked in accordance with these regulations, which shall continue in effect until field rules are established. After field rules have been established, development wells shall be drilled or reworked according to such rules. (a) Where sufficient geologic and engineering information is available from previous drilling, operators may make application to the supervisor for the establishment of field rules for each oil or gas pool or zone. The supervisor shall review field rules at least once a year and notify operators in writing of any change. (b) Drilling or reworking of wells shall not commence without approval of the division. Notices of intention and approvals shall be considered cancelled if the proposed operations are not commenced within one year of receipt of the notice. Each proposal to drill or rework a well shall include all information required on division forms and a detailed work program including, when applicable, casing, cementing, drilling fluid, and blowout prevention programs, proposed bottom hole location, anticipated location of the intersection of each proposed zone of completion with the bore hole, anticipated pressures, and anticipated depths (both measured and vertical) of geologic formations, oil zones, gas zones, and freshwater zones. The casing, cementing, drilling fluid, and blowout prevention programs shall comply with either the following requirements or established field rules. s 1744.1. Casing Program. All wells shall be cased and cemented in a manner that will fulfill the requirements of Sections 3106, 3219, 3220, and 3222 of Division 3 of the Public Resources Code. The proposal to drill, redrill, or deepen shall include a casing program designed to provide for firm anchorage and for full protection of all oil, gas, or fresh water zones. All casing strings shall be new pipe or equivalent, capable of withstanding all anticipated collapse and burst pressures to be encountered or used. For the purpose of these regulations, the several strings in order of normal installation are conductor, first surface, second surface, intermediate, protective, and production. Casing strings shall be run and cemented prior to drilling below the specified setting depth, subject to minor variations necessary to allow the casing to be set in firm compacted or consolidated stratum. All depths refer to true vertical depth (TVD) below the ocean floor, unless otherwise specified. Determination of proper casing setting depths shall be based upon all geological and engineering factors, including but not limited to the presence or absence of hydrocarbons, formation pressures, fracture gradients, lost circulation intervals, and the degree of compaction or consolidation of formations. s 1744.2. Description of Casing Strings. Names of strings used by the division are not always the same as those used by the federal government for wells drilled on the Outer Continental Shelf. Where there is a difference, the division name is given first followed by the federal name shown in parentheses. (a) Conductor casing (drive or structural). This casing may be set by drilling, driving, or jetting to a depth of approximately 100 feet to provide hole stability for initial drilling operations. This casing may be omitted, when approved by the Offshore Unit, if there is geological evidence that hydrocarbons will not be encountered while drilling the hole for the first surface casing and is not needed for hole stability. (b) First surface casing (conductor). This casing shall be set at a minimum depth of 300 feet or a maximum depth of 500 feet provided that this casing string shall be set before drilling into shallow strata known to contain oil or gas or, if unknown, upon encountering such strata. (c) Second surface casing (surface). This casing shall be set at a minimum depth of 1,000 feet or a maximum depth of 1,200 feet below the ocean floor, but may be set as deep as 1,500 feet, in the event the surface casing is set at a depth at least 450 feet. (d) Intermediate casing. This casing shall be set if the proposed total depth of the well is more than 3,500 feet. When surface casing is set at deeper than 1,000 feet, the proposed total depth of the well may be extended two (2) feet for each foot of surface casing below 1,000 feet. Proposed Total Depth of Well or Proposed Depth of First Full String Setting Depth for Itermediate of Protective Casing (TVD in Feet Casing (TVD in Feet Below Below Ocean Floor) Ocean Floor) ___________________________________ _______________________________ Minimum Maximum 3,500- 4,500 1,500 4,500 4,500- 6,000 1,750 4,500 6,000- 9,000 2,250 4,500 9,000-11,000 2,750 4,500 11,000-13,000 3,250 4,500 13,000-Below 3,500 4,500 (e) Protective casing. This casing shall be set when required by well conditions, such as lost circulation or abnormal pressures. When this string does not extend to the surface, the lap shall be cemented and tested by a fluid entry test to determine whether a seal between the protective string and next larger string has been achieved. The test shall be witnessed and approved by a division inspector and recorded on the driller's log. (f) Production casing. This casing shall be cemented as noted in Section 1744.3 below and a test of water shut-off made above the zones to be produced or injected into. The test shall be witnessed and approved by a division inspector before completing the well for production or injection. In injection wells, the supervisor may approve the demonstration of the shut-off by running of a survey within 30 days after injection commences. The survey must show that injection fluid is confined to the approved injection interval. When the production string does not extend to the surface, the lap between the production string and next larger casing string shall be cemented and tested as in the case of protective casing. The surface casing shall never be used as production casing unless all lower oil or gas zones are properly plugged. s 1744.3. Cementing Casing. The conductor (if drilled or jetted) and surface casings shall be cemented with sufficient cement to fill the annular space back to the ocean floor. The intermediate casing shall be cemented with sufficient cement to fill the annular space back to the ocean floor or at least 200 feet into the next larger string of pipe. The protective and production casings shall be cemented so that all fresh water zones, oil or gas zones, and abnormal pressure intervals are covered or isolated, and, in addition, a calculated volume sufficient to fill the annular space to at least 500 feet above cementing points, above oil or gas zones, and above abnormal pressure intervals not previously cased. When the cement behind casing is not returned to the ocean floor or through a lap, the amount of solid cement fill behind casing shall be determined by surveys acceptable to the supervisor. If the annular space is not adequately cemented by the primary operation, the operator shall displace sufficient cement to fill the required annular space. Upon demonstrating shut-off above the zones to be produced or injected into as indicated under (f) above, the operator may continue with the approved operations. s 1744.4. Pressure Testing. Prior to drilling out the plug after cementing, all blank casing strings, except the conductor casing, shall be pressure tested as shown in the table below. Loss in pressure shall not exceed 10 percent during a 30 minute test; corrective measures must be taken until a satisfactory test is obtained. Casing String Minimum Surface Test Pressure First surface 1 psi/ft. of depth Second surface 1,000 psi Intermediate, protective 1,500 psi or 0.2 psi/ft., and production whichever is greater After cementing any of the above strings, drilling shall not be commenced until a time lapse of: eight hours for the first surface casing string and 12 hours for all other casing strings, or sufficient time for the bottom 500 feet of annular cement fill to attain a compressive strength of at least 500 psi based on a pretest of the slurry at the temperature and pressure at the cementing depth, using testing procedures as set forth by the American Petroleum Institute in RP 10B, 1972, incorporated here by reference. All casing pressure tests shall be witnessed and approved by a division inspector prior to drilling out of the casing or perforating opposite possible oil or gas zones. Inspection of data recorded by a device approved by the division may be substituted for witnessing. s 1744.5. Blowout Prevention and Related Well-Control Equipment. This equipment shall be installed, tested, used, and maintained in a manner necessary to prevent an uncontrolled flow of fluid from a well. Division personnel shall use the current edition of Division of Oil, Gas, and Geothermal Resources Manual No. M07, "Oil and Gas Well Blowout Prevention in California," as a guide in establishing the blowout prevention equipment requirements specified in the division's approval of proposed operations. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3219, Public Resources Code. s 1744.6. Drilling Fluid Program -General. The characteristics, use, and testing of drilling fluid and the method of conducting related drilling procedures shall be such as are necessary to prevent the uncontrolled flow of fluid from any well. Quantities of drilling fluid materials sufficient to insure well control shall be maintained readily accessible for immediate use at all times. (a) Drilling fluid control. Before starting out of the hole with drill pipe, the drilling fluid shall be circulated with the drill pipe hung just off bottom until the drilling fluid is properly conditioned. Proper conditioning requires circulation of the drilling fluid to the extent that the total annulus volume is displaced and until gas is removed. When coming out of the hole with drill pipe or tubing, the annulus shall be filled with drilling fluid before the drilling fluid level drops below a calculated depth of 100 feet below the derrick floor. A mechanical device that indicates the amount of drilling fluid required to keep the hole full shall be watched. If there is any indication of "swabbing" or influx of formation fluids, the inside blowout preventer shall be installed on the drill pipe, the drill pipe shall be run to bottom, and the drilling fluid properly conditioned. The drilling fluid shall not be circulated and conditioned except on or near bottom, unless well conditions prevent running the pipe to bottom. The fluid in the hole shall be circulated or reverse circulated prior to pulling drill-stem test tools from the hole. (b) Drilling fluid testing equipment. Drilling fluid testing equipment for measuring viscosity, water loss, weight, and thixotropic properties shall be maintained on the drillsite at all times. Tests of the drilling fluid consistent with good operating practice shall be performed at the beginning of each eight-hour tour while drilling, with additional tests as conditions warrant. Results of tests shall be recorded on the driller's log. The following or comparable equipment for monitoring the drilling fluid system must be installed with the indicators at the driller's station and used throughout the period of drilling after setting and cementing the first surface casing. (1) A recording mud-pit level indicator to determine mud pit volume gains and losses. This indicator shall include a visual and audible warning device. (2) A mud volume measuring device for accurately determining mud volumes required to maintain fluid level at the surface while pulling the drill pipe from the hole. (3) A mud return or full hole indicator to show when returns have been obtained, or when they occur unintentionally, and also to determine that returns essentially equal the pump discharge rate. (c) Inspection of the complete drilling fluid system shall be made by a division inspector. Approval of the system is required prior to drilling out the shoe of the first surface casing. s 1745. Plugging and Abandonment. Plugging and abandonment operations shall not commence until approval has been obtained from the supervisor. Proposals to plug or plug and abandon shall be submitted on a division form for plugging or plugging and abandonment and accompanied by a detailed work program. The proposed plugging and abandonment program shall be deemed to have been approved if the supervisor does not give the operator a written response to the notice of intention within ten (10) working days. Under circumstances specified in Section 1740.5, the operator may receive conditional approval to commence operations. The operator shall comply with the following minimum requirements which have general application to all wells. The supervisor may approve or require specific plugging materials and methods of operation to fulfill or exceed the minimum requirements. s 1745.1. Permanent Plugging and Abandonment. (a) Plugging in uncased hole. In uncased portions of wells, cement plugs shall be placed to extend from total depth or at least 100 feet below each oil or gas zone, whichever is less, to at least 100 feet above the top of each zone, and a cement plug at least 200 feet long shall be placed across an intrazone freshwater-saltwater interface or opposite impervious strata between fresh- and saltwater zones so as to confine the fluids in the strata in which they are found and to prevent them from escaping into other strata. (b) Isolation of open hole. Where there is open hole immediately below casing, a cement plug shall be placed in the deepest cemented casing string from total depth or at least 100 feet below the casing shoe, whichever is less to at least 100 feet above the casing shoe. (c) Plugging perforated intervals. A cement plug shall be placed opposite all perforations extending to a minimum of 100 feet above the perforated intervals, liner top, cementing point, or zone, whichever is higher. (d) Isolating zones behind cemented casing. Inside cemented casing, a cement plug at least 100 feet long shall be placed above each oil or gas zone and above the shoe of the intermediate or second surface casing; a cement plug at least 200 feet long shall also be placed across an intrazone freshwater-saltwater interface or opposite impervious strata between fresh- and saltwater zones. s 1745.2. Junk in Hole or Collapsed Casing. In the event that junk cannot be removed from the hole, and the hole below the junk is not properly plugged, cement plugs shall be placed as follows: (a) Sufficient cement shall be squeezed through the junk to isolate the lower oil, gas, or fresh water zones and a minimum of 100 feet of cement shall be placed on top of the junk, but no higher than the sea bed. (b) If the top of the junk is opposite uncemented casing, the casing annulus immediately above the junk shall be cemented with sufficient cement to insure isolation of the lower zones. s 1745.3. Plugging of Casing Stubs. If casing is cut and recovered, other than that pulled for placing the surface plug, a cement plug shall be placed from at least 100 feet below to at least 100 feet above the stub. s 1745.4. Plugging of Annular Space. No annular space that extends to the ocean floor shall be left open to drilled hole below. If this condition exists, a minimum of 200 feet of the annulus immediately above the shoe shall be plugged with cement. s 1745.5. Surface Plug Requirement. A cement plug at least 100 feet long shall be placed in the well with the top between 50 and 150 feet below the ocean floor. All inside casing strings with uncemented annuli shall be pulled from below the surface plug. The casing shall not be shot or cut in a manner that will damage outer casing strings and prevent reentry into the well. s 1745.6. Testing of Plugs. Division tests for the location and hardness of cement plugs shall be verified by placing the total weight of the pipe string on the plug, or where there is sufficient depth, an open-end pipe weight of at least 10,000 pounds. s 1745.7. Mud. Any interval of the hole not plugged with cement shall be filled with mud fluid of sufficient density to exert hydrostatic pressure exceeding the greatest formation pressure encountered while drilling such interval. s 1745.8. Clearance of Location. All casing and anchor piling shall be cut and removed from not more than 5 feet below the ocean floor, and the ocean floor cleared of any obstructions, unless prior approval to the contrary is obtained from the appropriate marine navigation and wildlife agencies and a copy of the approval filed with the division. s 1745.9. Temporary Abandonments. Any well that is to be temporarily abandoned shall be mudded and cemented as required for permanent plugging and abandonment, but requirements of Sections 1745.1(d), 1745.4, 1745.5, and 1745.8 of this article may be omitted. For ocean-floor and platform sites, a mechanical bridge plug (retrievable or permanent) shall be set in the well between 15 and 200 feet below the ocean floor. For land fill, pier, and island sites, the well shall be securely capped or closed at the surface, until operations are resumed. s 1745.10. Witnessing of Operations. Operations to be witnessed by a division inspector include tests for location and hardness of plugs placed across oil or gas zones open to the well, across fresh water zones, across casing shoes, cementing through junk, and placing of the surface plug. Geologic or mechanical conditions may require changes or additions to the schedule of inspections. s 1746. Well Records. The operator of any well shall keep, or cause to be kept, an accurate record of each well consisting of but not limited to the following: (a) A log and history for each well showing chronologically the following applicable data: (1) Character and depth of formations, water-bearing strata, oil and gas-bearing zones, and lost circulation zones encountered. (2) Casing size, kind, top, bottom, perforations, and attached equipment used. (3) Tubing size, and depth, type and location of packers, safety devices, and other tubing equipment used. (4) Hole size. (5) Cementing and plugging operations including time, depth, slurry volume and composition, fluid displacement, fill, pressures used, and down-hole equipment used. (6) Drillstem and formation tests including time, depth, pressures, and recovery (volume and description). (7) BOPE installation, inspections, pressure tests, and drills. (8) Shut-off, pressure, and lap tests of casing. (9) Depth and type of all electrical, physical or chemical logs, tests, or surveys run. (10) Wellhead specifications and method of production. (b) Core record showing the depth, character, and fluid content of all cores, including sidewall cores, so far as determined. (c) Filing records. (d) Records at wellsite. s 1746.1. Filing Records. Well records shall be filed in accordance with the provisions of Sections 3215 or 3216, Article 4, Public Resources Code. Note: Authority cited: Sections 3000-3013 and 3016, Public Resources Code. Reference: Sections 3203-3220 and 3227-3237, Division 3, Chapter 1, Article 4, Public Resources Code. s 1746.2. Records of Wellsite. During the performance of proposed operations, a copy of a well's tour reports shall be maintained at the wellsite. All pertinent well records shall be made available to the division inspector upon request. Note: Authority cited: Sections 3000-3013 and 3016, Public Resources Code. Reference: Sections 3203-3220 and 3227-3237, Division 3, Chapter 1, Article 4, Public Resources Code. s 1747. Safety and Pollution Control. Operators shall equip wells and associated facilities with necessary safety devices and establish procedures as follows: (a) Subsurface safety device. All wells capable of flowing oil or gas to the ocean floor shall be equipped with a surface controlled subsurface tubing safety valve installed at a depth of 100 feet or more below the ocean floor. Such device shall be installed in all oil and gas wells, including artificial lift wells, unless proof is provided to the supervisor that such wells are incapable of any natural flow to the ocean floor. For shut-in wells capable of flowing oil or gas, a tubing plug may be installed, in lieu of a subsurface safety device, and such plug shall also be installed when required by the supervisor. (b) Subsurface safety devices shall be adjusted, installed, and maintained to insure reliable operation. When a subsurface safety device is removed from a well for repair or replacement, a standby subsurface safety device or tubing plug shall be available at the well location, and shall be immediately installed within the limits of practicability, consideration being given to time, equipment, and personnel safety. All wells in which subsurface safety device or tubing plug is installed shall have the tubing-casing annulus sealed below the valve or plug setting depth. (c) Each subsurface safety device and tubing plug installed in a well shall be tested at intervals not exceeding one month and a report filed with the division within five (5) days. Failures shall be reported to the division immediately. The tests shall be performed in the presence of a division inspector following installation or reinstallation and at 90-day intervals thereafter. The supervisor may adjust the testing sequence based on equipment performance. (d) The control system for the surface-controlled subsurface safety devices shall be an integral part of the shut-in system for the production facility. (e) The operator shall maintain records, available at the structure or facility to any representative of the division, showing the present status and history of each subsurface safety device or tubing plug, including dates and details of inspection, testing, repairing, adjustment, and reinstallation or replacement. Note: Authority cited: Section 3106, Public Resources Code. Reference: Sections 3106 and 3219, Public Resources Code. s 1747.1. Safety and Pollution Control Equipment Requirements. The following requirements shall apply to all offshore production facilities. Sections 1747.3, 1747.4, and 1747.9 shall also apply to mobile drilling structures. Sections 1747.2 and 1747.10 shall also apply to ocean floor completions or wells with submerged wellheads. (a) The following devices shall be installed and maintained in an operating condition on all pressurized vessels and water separation facilities when such vessels and separation facilities are in service. The operator shall maintain records on the structure or facility showing the present status and history of each such device including dates and details of inspection, testing, repairing, adjustment, and reinstallation or replacement. (1) All separators shall be equipped with high-low pressure shut-in sensors, low level shut-in controls, and a relief valve. High liquid level control devices shall be installed when the vessel can discharge to a gas vent line. (2) All pressure surge tanks shall be equipped with a high and low pressure shut-in sensor, a high level shut-in control, gas vent line, and relief valve. (3) Atmospheric surge tanks shall be equipped with a high level shut-in sensor. (4) All other hydrocarbon handling pressure vessels shall be equipped with high-low pressure shut-in sensors, high-low level shut-in controls, and relief valves, unless they are determined by the supervisor to be otherwise protected. All low pressure systems connected to high pressure systems shall be equipped with relief valves. (5) Pilot-operated pressure relief valves shall be equipped to permit testing with an external pressure source. Spring-loaded pressure relief valves shall either be bench-tested or equipped to permit testing with an external pressure source. A relief valve shall be set no higher than the designed working pressure of the vessel. On all vessels with a rated or designed working pressure of more than 400 psi, the high pressure shut-in sensor shall be set no higher than 5 percent below the rated or designed working pressure and the low pressure shut-in sensor shall be set no low er than 10 percent below the lowest pressure in the operating pressure range. On lower pressure vessels the above percentages shall be used as guidelines for sensor settings considering pressure and operating conditions involved, except that sensor setting shall not be within 5 psi of the rated or designed working pressure or the lowest pressure in the operating pressure range. (6) All pressure-operated sensors shall be equipped to permit testing with an external pressure source. (7) All gas vent lines shall be equipped with a scrubber or similar separation equipment. s 1747.2. Safety Devices. The following devices shall be installed and maintained in an operating condition at all times when the affected well (or wells) is producing. The operator shall maintain records on the structure or facility showing the present status and history of each such device, including dates and details of inspection, testing, repairing, adjustment, and reinstallation or replacement. (a) All wells shall have a fail shut-in capability. For pumping wells incapable of natural flow to the ocean floor, an approved power source shut-off system may be used. On all flowing or gas lift wells the wellhead assemblies shall be equipped with an automatic failclose valve. (b) All flowlines from wellheads shall be equipped with high-low pressure sensors located close to the wellhead. The pressure sensors shall be set to shut-in the well in the event of abnormal pressures in the flowline. (c) All headers shall be equipped with check valves on the individual flowlines. The flowline and valves from each well located upstream of, and including, the header valves shall withstand the shut-in pressure of that well, unless protected by a relief valve with connections to bypass the header. If there is an inlet valve to a separator, the valve, flowline, and all equipment upstream of the valve shall also withstand shut-in wellhead pressure, unless protected by a relief valve with connections to bypass the header. (d) All pneumatic, hydraulic, and other shut-in control lines shall be equipped with fusible material at strategic points. (e) Remote shut-in controls shall be located on the helicopter deck and all exit stairway landings leading to the helicopter deck and to all boat landings. These controls shall be quick-operating devices. (f) All pressure sensors shall be operated and tested for proper pressure settings monthly. Results of all tests shall be recorded and maintained on the structure or facility. (g) All automatic wellhead safety valves shall be tested for holding pressure monthly. Results of all tests shall be recorded and maintained on the structure or facility. (h) Check valves shall be tested for holding pressure monthly for at least four months. At such time as the monthly results are satisfactory, a quarterly test shall be required. Results of all tests shall be recorded and maintained on the structure or facility. (i) A standard procedure for testing of safety equipment shall be filed with the division and posted in a prominent place on the structure or facility. s 1747.3. Containment. Curbs, gutters, and drains shall be constructed and maintained in good condition in all deck areas in a manner necessary to collect all contaminants, unless drip pans or equivalent are placed under equipment and piped to a sump which will automatically maintain the oil at a level sufficient to prevent discharge of oil into the ocean waters. Alternate methods to obtain the same results may be approved by the supervisor. These systems shall not permit spilled oil to flow into the wellhead area of a platform or pier. s 1747.4. Emergency Power. An auxiliary electrical power supply shall be installed to provide emergency power sufficient to operate all electrical equipment required to maintain safety of operation in the event the primary electrical power supply fails. The auxiliary system shall be tested weekly and the results recorded. s 1747.5. Fire Protection. A fire fighting system shall be installed and maintained in an operating condition in accordance with volumes 6 and 7 of the National Fire Codes, 1973, as appropriate, incorporated here by reference. A diagram of the fire fighting system, showing the location of all equipment, shall be filed with the division and posted in a prominent place on the structure. The system shall be tested monthly by the operator and a report filed with the division. Failure of any part of the system shall be reported to the division immediately. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1747.6. Detection System. An automatic gas detector and alarm system shall be installed and maintained in an operating condition in accordance with the following: (a) Gas detection systems shall be installed in all enclosed areas containing gas handling facilities or equipment, and in other areas classified as hazardous and defined in API RP 500 B, 1973, and the National Electric Code, 1971, both incorporated here by reference. (b) All gas detection systems shall be capable of continuous monitoring. The sensitivity shall be maintained at a level that will detect the presence of combustible gas within the areas in which the detection devices are located. (c) The central control shall be capable of giving an alarm at not higher than 60 percent of the lower explosive limit. (d) The central control shall automatically activate shut-in sequences and emergency equipment at a point not higher than 90 percent of the lower explosive limit. s 1747.7. Installation Application. An application for the installation and maintenance of any gas detection system shall be filed with the division for approval and it shall include the following: (a) Type, location, and number of detection or sampling heads. (b) Cycling, non-cycling, and frequency information. (c) Type and kind of alarm and emergency equipment to be activated. (d) Method used for detection of combustible gas. (e) Method and frequency of calibration. (f) A diagram of the gas detection system. (g) Other pertinent information. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1747.8. Diagram. A diagram of the gas detection system showing the location of all gas detection points shall be filed with the division and posted in a prominent place at the structure. s 1747.9. Electrical Equipment Installation. All electrical equipment and systems shall be installed in accordance with the California Building Standards Electrical Code, 1971, the National Electric Code, 1971, and API RP 500 B, 1973, incorporated here by reference. On mobile drilling structures, certificated by the U. S. Coast Guard, this equipment shall be installed, protected, and maintained in accordance with the applicable provisions of CG-259, Electrical Engineering Regulations, 1971, incorporated here by reference. s 1747.10. Testing and Inspection. The safety and pollution control systems shall be tested and inspected every month and a report filed with the division. Failures shall be reported to the division immediately. A division inspector shall witness the tests and inspect the systems at the time production is commenced and at 90-day intervals thereafter. The supervisor may adjust the testing and inspection sequence based on equipment performance. (a) After review by the supervisor and with his or her written approval, existing production facilities that substantially comply with the intent of Sections 1747 through 1747.9 will be exempt from these regulations. However, any changes or additions to existing platforms will comply with these regulations. (b) The division shall be notified of all major production facility shutdowns anticipated to be in excess of 24-hour duration, whether intentional or otherwise. When inspected by a division inspector, a complete shutdown may be substituted for the next scheduled test of some or all of the safety systems. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1748. Waste Disposal and Injection Projects. Disposal and injection projects are subject to the provisions of Section 1748.1 through 1748.3. s 1748.1. Waste Disposal. All discharges into the ocean shall conform to the requirements of the appropriate Regional Water Quality Control Board. s 1748.2. Injection Projects. All subsurface injection projects require prior approval of this division. An operator requesting approval to inject fluid into any subsurface strata must provide certain technical data regarding the project. This information must be submitted sufficiently in advance to enable the division to evaluate fully the possible effects of the project upon any oil, gas, or fresh water reservoirs that may be present. The completeness and accuracy of the following data filed will have a bearing on this division's decision to approve or disapprove the project. (a) One or more geologic cross sections through the injection well at a scale that will clearly show the following: (1) The injection well, or wells. (2) A sufficient number of producing wells to show the geologic structure and stratigraphic relationship. (3) Casing detail of all wells shown. (4) The zone or zones to be injected into, other geologic units present, and the base of any fresh water aquifer. (5) Location of any existing oil-water and oil-gas interfaces in or above the injection zone. (6) The intervals of all geologic formations present. (7) Fault block designations. (b) A representative electric log from the surface to a depth below the producing zones (if not already shown on the cross section), identifying all geologic units, formations, oil or gas zones, and fresh water aquifers. (c) Structural contour maps of markers at or near the top of each proposed injection zone showing the following: (1) The location of the proposed injection well or wells, together with directional plots, bottom-hole locations, well status symbols, and zones open to production for all wells bottomed within the affected area. (2) Reservoir characteristics such as pinchouts, permeability barriers and faults. (3) Mineral lease boundary lines and fault block designations. (4) Lines of cross sections. (5) Lines showing original oil-water and oil-gas contacts. (d) Letter containing engineering and geologic details of the project, in duplicate, including: (1) Primary purpose. (2) Reservoir characteristics of the injection zone; i.e., porosity, permeability, thickness (net and gross), present temperature and pressure, and present oil, gas, and water saturation. (3) Casing diagrams, including cement plugs and cement fill behind casing, of all idle, plugged and abandoned, or deeper-zone producing wells within the area affected by the project. (4) Source and analysis of the injection water and analysis of the water in the injection zone. (5) Treatment of the water to be injected. (6) Method of injection, i.e., through casing, tubing, tubing with packer, between strings. (7) Maximum daily rate of injection, by well or wells. (8) Maximum surface injection pressure anticipated (pump pressure). (9) Precautions taken, or to be taken, to insure that the injected fluid is confined to the injection zone and to the area controlled by the operator. (10) Protective methods used, if any, on injection lines and well(s), i.e., cathodic, etc. (e) Copies of letters of notification sent to neighboring operators. (f) Other data as required for large, unusual, or hazardous projects, for unusual or complex structures, for sensitive locations, etc. Examples: Isopach map, IsoGOR map, water-oil ratio map, IsoBAR maps, equipment diagrams, and safety precautions. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3301, Public Resources Code. s 1748.3. Injection Requirements. (a) Appropriate forms furnished by the division for proposal to drill or rework shall be completed and submitted to the division for approval whenever a new well is to be drilled for use as an injection well, or whenever an existing well is to be converted to an injection well, even if no work is required. (b) An injection report on a division form shall be filed with this division in duplicate on or before the tenth day of each month, for the preceding month. (c) A chemical analysis of the fluid (or gas) to be injected shall be made and filed with this division at least every two years, whenever the source of injection fluid is changed, or as requested. (d) An accurate, operating pressure gauge or chart shall be maintained at the wellhead at all times. (e) Fluid injection profile surveys shall be required for all injection wells within one month after injection has commenced, at least once every year thereafter for all high-pressure or high-volume injection wells, after any significant anomalous rate or pressure change, or as requested by the division, to confirm that the injection fluid is confined to the proper zone. (f) Sufficient data shall be maintained to show performance of the project and to establish that no damage is occurring because of excessive injection pressure. These data shall be available for periodic inspection by personnel from this division. (g) Injection shall cease upon written notice from the division if any evidence of damage is observed by the division or in its opinion is occurring. (h) Additional requirements or modification of the above requirements may be necessary to fit individual circumstances. s 1749. Cooperative Agreements. Note: Authority cited: Section 3106, Public Resources Code. Reference: Section 3301, Public Resources Code. s 1750. Purpose. It is the purpose of this subchapter to set forth the rules and regulations governing the environmental protection program of the Division of Oil, Gas, and Geothermal Resources as provided for in Section 3106 of Division 3 of the Public Resources Code. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3000 through 3237, Public Resources Code. s 1751. Policy. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. s 1752. Scope of Regulations. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. s 1753. Revision of Regulations. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. s 1760. Definitions. The following definitions are applicable to this subchapter: (a) "Catch basin" means a dry sump that is constructed to protect against unplanned overflow conditions. (b) "Designated waterways" means any named perennial or ephemeral waterways or any perennial waterways shown as solid blue lines on United States Geological Survey topographic maps and any ephemeral waterways that the supervisor determines to have a direct impact on perennial waterways. (c) "Evaporation sump" means a sump containing fresh or saline water which can properly be used to store such waters for evaporation. (d) "Environmentally sensitive pipeline" means any of the following: (1) A pipeline located within 300 feet of any public recreational area, or a building intended for human occupancy that is not necessary to the operation of the production operation, such as residences, schools, hospitals, and businesses. (2) A pipeline located within 200 feet of any officially recognized wildlife preserve or environmentally sensitive habitat that is designated on a United States Geological Survey topographic map, designated waterways, or other surface waters such as lakes, reservoirs, rivers, canals, creeks, or other water bodies that contain water throughout the year. (3) A pipeline located within the coastal zone as defined in Section 30103(b) of the Public Resources Code. (4) Any pipeline for which the supervisor determines there may be a significant potential threat to life, health, property, or natural resources in the event of a leak, or that has a history of chronic leaks. (e) "Field" means the general surface area that is underlain or reasonably appears to be underlain by an underground accumulation of crude oil or natural gas, or both. The surface area is delineated by the administrative boundaries shown on maps maintained by the Supervisor. (f) "Gathering line" means a pipeline (independent of size) that transports liquid hydrocarbons between any of the following: multiple wells, a testing facility, a treating and production facility, a storage facility, or a custody transfer facility. (g) "Operations sump" means a sump used in conjunction with a drilling or workover rig during the period of time a well is being drilled or reworked. (h) "Pipeline" means a tube, usually cylindrical, with a cross sectional area greater than 0.8 square inches (1 inch nominal diameter), through which crude oil, liquid hydrocarbons, combustible gases, and/or produced water flows from one point to another within the administrative boundaries of an oil or gas field. Pipelines under the State Fire Marshal jurisdiction, as specified by the Elder Pipeline Safety Act of 1981 (commencing with s 51010 of the Government Code, and the regulations promulgated thereunder) are exempt from this definition. (i) "Sump" means an open pit or excavation serving as a receptacle for collecting and/or storing fluids such as mud, hydrocarbons, or waste waters attendant to oil or gas field drilling or producing operations. (j) "Urban area" means a cohesive area of at least twenty-five business establishments, residences, or combination thereof, the perimeter of which is 300 feet beyond the outer limits of the outermost structures. (k) "Urban pipeline" means that portion of any pipeline within an urban area as defined in this section. ( l ) "Waste water" means produced water that after being separated from the produced oil may be of such quality that discharge requirements need to be set by a California Regional Water Quality Control Board. Note: Authority cited: Sections 3013 and 3782, Public Resources Code. Reference: Sections 3106 and 3782, Public Resources Code. s 1770. Oilfield Sumps. (a) Location. Sumps for the collection of waste water or oil shall not be permitted in natural drainage channels. Contingency catch basins may be permitted, but they shall be evacuated and cleaned after any spill. Unlined evaporation sumps, if they contain harmful waters, shall not be located where they may be in communication with freshwater-bearing aquifers. (b) Construction. Sumps shall be designed, constructed, and maintained so as to not be a hazard to people, livestock, or wildlife including birdlife. (1) To protect people, sumps in urban areas shall be enclosed in accordance with Section 1778 (a) or (e) and (c). (2) In non-urban areas, to protect people and livestock and to deter wildlife, an enclosure shall be constructed around sumps in accordance with Section 1778 (b) or (e). (3) Any sump, except an operations sump, which contains oil or a mixture of oil and water shall be covered with screening to restrain entry of wildlife in accordance with Section 1778(d). (4) A sump need not be individually fenced if the property or the production facilities of which the sump is a part is enclosed by proper perimeter fencing. Note: Authority cited: Sections 3013, 3106 and 3782, Public Resources Code. Reference: Sections 3106 and 3783, Public Resources Code. s 1770.1. Oil Sumps of Immediate Danger to Wildlife. Note: Authority cited: Section 3782, Public Resources Code. s 1770.2. Oil Sumps Hazardous to Wildlife. Note: Authority cited: Section 3782, Public Resources Code. s 1770.3. Compliance. Note: Authority cited: Section 3782, Public Resources Code. s 1770.4. Appeal. Note: Authority cited: Section 3782, Public Resources Code. s 1770.5. Injunction. Note: Authority cited: Section 3782, Public Resources Code. s 1771. Channels. Open unlined channels and ditches shall not be used to transport waste water which is harmful to underlying freshwater deposits. Oil or water containing oil shall not be transported in open unlined channels or ditches unless provisions are made so that they are not a hazard as determined by the supervisor. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1772. Program to Eliminate Improper Sumps. Note: Authority cited: Section 3782, Public Resources Code. s 1773. Tank Settings. Tank settings in areas where damage to life, health, property, or natural resources might occur as a result of leakage, shall have a method for control of the spilled fluid and detection of tank-bottom leaks. This may be accomplished by employing a combination of the following containment and detection methods: (a) For containment: (1) A drainage system for safe fluid containment. (2) Diversion walls to direct fluids to a preferred collection point. (3) Dikes or fire walls capable of containing the volume of the largest tank. Tank settings in urban areas shall have dikes. (b) For leak detection: (1) A tank installation that allows the exterior surface, including the bottom of the tank and connection piping, to be monitored by direct viewing. (2) A tank foundation of concrete or gravel. (3) A tank bottom leak detection system. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1774. Oilfield Facilities and Equipment Maintenance. (a) Well cellars shall be covered and kept drained. Grating or flooring shall be installed and maintained in good condition so as to exclude people and animals. Cellars should be protected from as much runoff water as practical. (b) Production facilities, including but not limited to, tanks, pipelines, flowlines, wellheads, and separators shall be maintained in a manner to prevent leakage. (c) Other production facilities and equipment, including but not limited to pumping units, compressors, tanks, and skimming devices, shall be installed and maintained properly for the protection of people, wildlife, and domestic animals. (d) All equipment and facilities in urban areas shall be enclosed individually or with perimeter fencing in accordance with the provisions of Section 1778 (a) and (e) where it is necessary to protect life and property. Enclosures in nonurban areas shall be constructed in accordance with Section 1778 (a) or (b) where necessary to protect life and property. (e) Pipelines shall be designed, constructed, tested, operated, and maintained in accordance with good oil field practice and applicable standards, such as the American Petroleum Institute (API) (API Rec. Prac. 1110, 3rd Ed., Dec. 1991, and API Spec. effective 1990) or American Society for Testing and Materials (ASTM) (ASTM Designation Stand. Spec., 1991), Code of Federal Regulations 49, Part 192, or other applicable standards for the transportation of oil, gas, produced water, and other fluids. Good oilfield practice includes, but is not limited to: (1) Utilization of preventative methods such as cathodic protection and corrosion inhibitors, as appropriate, to minimize external and internal corrosion. (2) Employment, where practical, of equipment such as low-pressure alarms and safety shut-down devices to minimize spill volume in the event of a leak. (3) Evaluating the applicability of locating any new pipelines or parts of a pipeline system that are being relocated or replaced above ground. The use of pipe clamps or screw-in plugs are not considered good oilfield practice for permanent repair of pipeline leaks. (f) All aboveground pipelines shall be inspected visually for leaks and corrosion at least once a year. (g) The supervisor may order such tests or inspections deemed necessary to establish the reliability of any pipeline system. Repair, replacement, or cathodic protection may be required. (h) Maps of all pipelines should be maintained and updated whenever pipelines are installed or removed. (i) On or before January 1, 1999, all operators of environmentally sensitive pipelines shall prepare a pipeline management plan for all environmentally sensitive pipelines. The plan shall be submitted to the supervisor for approval and review every five years after the approval date. These plans shall be updated whenever pipelines are installed, altered, the plan becomes obsolete, or at the request of the supervisor. Pipelines that have been abandoned to the standards specified in Section 1776(f) are exempt from this requirement. The pipeline management plan shall include the following: (1) A map showing all active and inactive environmentally sensitive pipelines, including line sizes and any buried line segments. If the location of a buried pipeline is unknown, the most probable location shall be shown. (2) A listing of available information on each pipeline including, but not limited to: pipeline type, grade, age of pipeline, design and operating pressures, and any available leak, repair, inspection and testing history. (3) A listing of any safety shutdown devices, corrosion prevention, or corrosion monitoring techniques utilized. (4) A description of the testing method and schedule for any pipelines indicated in (j) or (k). (j) After a pipeline management plan is approved, a mechanical integrity test shall be performed on all active environmentally sensitive pipelines that are gathering lines, and all urban pipelines over 4 inches in diameter, every two years. Pipelines less than ten (10) years old are exempt from the two year testing requirement. These tests shall be performed to ensure the pipeline does not present a threat to public health, safety, or the environment by using at least one of the following methods: (1) Nondestructive testing using ultrasonic or other techniques approved by the supervisor, to determine wall thickness. (2) Hydrostatic testing using the guidelines recommended in Publication API RP 1110 (3d Ed., Dec. 1991), Testing of Liquid Petroleum Pipelines, or the method approved by the State Fire Marshal, Pipeline Safety and Enforcement Division. (3) Internal inspection devices such as a smart pig, as approved by the supervisor. (4) Or any other method of ensuring the integrity of a pipeline that is approved by the supervisor. Copies of test results shall be maintained in a local office of the operator for six years and made available to the Division, upon request. The operator shall repair and retest or remove from service any pipeline that fails the mechanical integrity test. The Division shall be promptly notified in writing by the operator of any pipeline taken out of service due to a test failure. (k) A county board of supervisors, a city council, or another state agency may petition the supervisor to include other pipelines within their jurisdiction as environmentally sensitive. The request must be in writing and based on findings of a competent, professional evaluation that shows there is a probability of significant public danger or environmental damage if a leak were to occur. 1. Within 30 days of receipt of a petition, the supervisor shall notify any affected operator. 2. Within 60 days of notification to the operators, the supervisor shall schedule a hearing with the petitioner and operators to allow all parties to be heard. 3. Within 30 days of the conclusion of the hearing, the supervisor shall make a determination as to whether the areas or pipelines should be considered environmentally sensitive. (l) Additions and Exemptions 1. The Supervisor may establish additional requirements to Section 1774(i) and (j) to ensure life, health, property, and natural resources are protected adequately. 2. The Supervisor may establish exemptions to the requirements in Section 1774(i) and (j) that will not result in a significant threat to life, health, property, or natural resources. 3. An operator may petition the supervisor to establish an exemption or addition for any environmentally sensitive pipeline. An operator's petition to exempt a requirement must clearly establish that eliminating the requirement will not impose a significant potential threat to life, health, property, or natural resources. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1775. Oilfield Wastes and Refuse. (a) Oilfield wastes, including but not limited to oil, water, chemicals, mud, and cement, shall be disposed of in such a manner as not to cause damage to life, health, property, freshwater aquifers or surface waters, or natural resources, or be a menace to public safety. Disposal sites for oilfield wastes shall also conform to State Water Resources Control Board and appropriate California Regional Water Quality Control Board regulations. (b) Dumping harmful chemicals where subsequent meteoric waters might wash significant quantities into freshwaters shall be prohibited. Drilling mud shall not be permanently disposed of into open pits. Cement slurry or dry cement shall not be disposed of on the surface. (c) Unused equipment and scrap attendant to oilfield operations shall be removed from a production or injection operations area and/or stored in such a manner as to not cause damage to life, health, or property, or become a public nuisance or a menace to public safety. Trash and other waste materials attendant to oilfield operations shall be removed and disposed of properly. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3106, Public Resources Code. s 1776. Well Site and Lease Restoration. (a) In conjunction with well plugging and abandonment operations, any auxiliary holes, such as rat holes, shall be filled with earth and compacted properly; all construction materials, cellars, production pads, and piers shall be removed and the resulting excavations filled with earth and compacted properly to prevent settling; well locations shall be graded and cleared of equipment, trash, or other waste materials, and returned to as near a natural state as practicable. Well site restoration must be completed within 60 days following plugging and abandonment of the well. (b) Sumps shall be closed in accordance with Regional Water Quality Control Board and Department of Toxic Substances Control requirements. (c) Unstable slope conditions created during site preparation shall be mitigated in such a manner as to prevent slope collapse. (d) Access roads to well locations generally will not be covered by these regulations; however, any condition that creates a hazard to public safety or property or causes interference with natural drainage will not be acceptable. (e) Prior to the plugging and abandonment of the last well or group of wells on a lease, the operator shall submit a plan and schedule for completing lease restoration. The lease-restoration plan shall also include the locations of any existing or previously removed, where known, sumps, tanks, pipelines, and facility settings. Lease restoration must begin within three (3) months and be completed within one year after the plugging and abandonment of the last well(s) on the lease. However, the supervisor may require or approve a different deadline for lease restoration. (f) Lease restoration shall include the removal of all tanks, above-ground pipelines, debris, and other facilities and equipment. Remaining buried pipelines shall be purged of oil and filled with an inert fluid. Toxic or hazardous materials shall be removed and disposed of in accordance with Department of Toxic Substances Control requirements. (g) Upon written request of the operator or property owner, exceptions to this section may be made provided the condition does not create a public nuisance or a hazard to public safety. Exceptions may also be granted by the supervisor when these requirements conflict with local or federal regulations. If a written request for an exception is received from the operator, consent to the exception from the property owner may be required before it is approved by the supervisor. Note: Authority cited: Section 3013, Public Resources Code. Reference: Sections 3106 and 3208, Public Resources Code. s 1777. Air Pollution. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. s 1778. Enclosure Specifications. (a) Chain link fences. All chain link fences shall be constructed to meet the following specifications: (1) Fences shall be not less than 5 feet high and mounted on 1 1/4" diameter steel posts with at least three strands of barbed wire mounted at a 45-degree angle from the top of the fence. (2) The fence shall be constructed of chain link or other industrial-type fencing of not less than 11-gauge wire and of not greater than 2-inch nominal mesh. (3) Supporting posts shall be securely anchored to the surface, spaced no more than 14 feet apart. Provisions for removable posts may be approved provided that the anchoring device is an integral part of the fence. (4) Tension wires of at least No. 9 gauge coil spring wire, or equivalent, shall be stretched at the top and bottom of the fence fabric and shall be fastened to the fabric at 24-inch intervals. There shall be no aperture below the fence large enough to permit any child to crawl under. (b) Wire fences. All wire fences shall be constructed to meet the following specifications: (1) There shall be either: (1) four strands of barbed wire spaced 12 inches between strands and maintained with sufficient tension to preclude sagging; or (2) commercial livestock wire netting with a minimum height of 4 feet and sufficient tension. (2) Posts may be of any material of sufficient strength and rigidity to support the wire and restrain people or livestock from pushing them over. Posts shall be set no more than 10 feet apart and buried at least 12 inches into the ground. (c) Gates. Gates shall be of a structure substantially the same as the required fences and shall be kept secured when not attended by an adult. (d) Screening. All screening to cover sumps shall meet the following specifications: (1) Be not greater than 2-inch nominal mesh. (2) Be of sufficient strength to restrain entry of wildlife. (3) Be supported in such a manner so as to prevent contact withthe sump fluid. (e) Other Types of Materials. Any material that can be used effectively to restrict access may be substituted for the materials indicated in (a), (b), (c), and (d), if approved by the supervisor. Note: Authority cited: Sections 3013, 3106 and 3782, Public Resources Code. Reference: Sections 3106 and 3781, Public Resources Code. s 1779. Special Requirements. The supervisor in individual cases may set forth other requirements where justified or called for. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. Reference: Sections 3106, 3226 and 3787, Public Resources Code. s 1780. Other Regulatory Agencies. Note: Authority cited: Sections 3013 and 3106, Public Resources Code. s 1790. Purpose. This subchapter specifies the criteria and procedures to be followed by the Department of Conservation in administering the Methane Gas Hazards Reduction Program for Eligible Jurisdictions under Section 3860 of the Public Resources Code. Note: Authority cited: Section 3863, Public Resources Code. Reference: Sections 3860 and 3863, Public Resources Code. s 1791. Definitions. (a) "CEQA" means the California Environmental Quality Act. (b) "Department" in reference to the government of this State, means the Department of Conservation in the Resources Agency. (c) "Director" means the Director of Conservation. (d) "Eligible Activity" means any one of the four purposes listed in Section 3860 of the Public Resources Code. (e) "Eligible Jurisdiction" per Section 3855(b) of the Public Resources Code means counties and cities identified as having methane gas hazards in the study conducted by the State Oil and Gas Supervisor pursuant to Article 4.1 (commencing with Section 3240) of the Public Resources Code. (f) "Final Application" means the application that is filed after the Department has approved a preapplication and has notified the eligible jurisdiction of its grant award. (g) "Notice of Intent to File" means a brief project description and an estimate of the anticipated project expenditures to be covered by a grant award. This notice will be used by the Director to determine the number of jurisdictions that plan to request a grant award and the equitable amount of grant monies that ultimately may be applied for by each eligible jurisdiction. (h) "Methane Gas Hazards" per Section 3855(a) of the Public Resources Code means collections of biogenic or thermogenic gases identified as hazards in the study conducted by the State Oil and Gas Supervisor pursuant to Article 4.1 (commencing with Section 3240) of the Public Resources Code. (i) "Mitigation Project" is an eligible activity that identifies the potential adverse impact of accumulations of methane gas and implements measures to reduce or eliminate those impacts. (j) "Preapplication" means a report that contains a detailed project preapplication as described in Section 1793(e) of this chapter. This preapplication will be used by the Director to evaluate project proposals. Note: Authority cited: Section 3863, Public Resources Code. Reference: Sections 3240, 3855, 3860 and 3863, Public Resources Code. s 1792. Amount of Financial Assistance Available. (a) The Department shall distribute approximately three hundred and fifty thousand dollars ($350,000) in the 1988-89 fiscal year as grant awards for planning, equipment purchases, installation, and other measures related to the mitigation of methane gas hazards. Ongoing maintenance and monitoring activities of eligible jurisdictions shall not be financed by grants pursuant to this chapter. (b) The amount of the initial grant monies available for each eligible jurisdiction shall be determined by the Director, following a review of the notices of intent to file grant applications. Within 15 days following the receipt of all notices, the Director will notify each jurisdiction of the approximate amount available for their proposed activity. (c) Any funds distributed after the initial award shall be based upon the availability of remaining funds and a demonstration of the need for additional funds to augment an initial award, or to begin a new eligible activity. Note: Authority cited: Section 3863, Public Resources Code. Reference: Sections 3860, 3863 and 3865, Public Resources Code; and 1987 Statutes, Chapter 1322, Section 4. s 1793. Application and Award Procedures. (a) Within 15 days of the effective date of this subchapter, the Department shall notify jurisdictions of their eligibility to apply for grants. A notice of intent to file an application for a grant shall then be submitted by a jurisdiction to the Director no later than 30 days after notification of eligibility by the Department. The notice of intent to file should include a brief project description and an estimate of the anticipated expenditures to be covered by a grant award. (b) Per Section 3861 of the Public Resources Code, eligible jurisdictions must provide opportunity for public review and comment, and shall hold at least one public hearing in regard to how the funds are to be expended. The hearing shall be held within 90 days after a jurisdiction is notified (per Section 1792(b)) of the approximate amount available for the proposed activity. (c) Eligible jurisdictions shall submit a preapplication to the Director within 30 days after the last scheduled public hearing. The preapplication shall provide information indicated in Section 1793(e) and a description of how the grant award is to be expended. Also, the jurisdiction shall submit a copy of any public comments received regarding the preapplication and the jurisdiction's response to the public comments. (d) The decision to award grants for the purposes set forth in Section 3860 of the Public Resources Code will be based upon information included in the preapplication. (e) The preapplication shall include: (1) Name, mailing address, and phone numbers of the project director, the budget officer, and the project manager. (2) A detailed project narrative that includes: (A) A detailed project description, including the problem to be solved and an explanation of how the funds are to be used to solve or mitigate the problem. (B) The anticipated effect of the project on mitigating the methane gas hazard in the area. (C) The expected benefits to the jurisdiction. (D) Budget (including other funding sources investigated or secured for the project). The budget should include estimates for direct and indirect expenses. (E) A work statement describing tasks and products (reports, technical studies, engineering plans, etc.) (F) A project schedule to present the relationship between work tasks and the amount of time required for the work to be completed. (G) A statement of applicable laws and regulations, including CEQA, that may affect the project. (H) Related activities undertaken, if any. (I) Any other information that may be relevant. Note: Authority cited: Section 3863, Public Resources Code. Reference: Sections 3861, 3862 and 3863, Public Resources Code. s 1794. Preapplication Criteria. In evaluating the preapplications, the Department shall consider, but not be limited to, the following criteria: (a) Urgency of need. (b) Consistency with the purposes and allowable activities. (c) Cost effectiveness. (d) Extent to which the requested grant amount is used to leverage other funding sources. (e) Availability of alternative sources of funding. (f) Likelihood that the project objectives will be achieved. (g) Compliance with CEQA and other applicable laws and regulations. Note: Authority cited: Section 3863, Public Resources Code. Reference: Section 3863, Public Resources Code. s 1795. Preapplication Review. (a) Within 15 days of receipt of a preapplication, the Department shall provide written comments addressing the completeness of the submitted information. The preapplication shall be deemed complete when the preapplication is considered by the Department to be adequate for evaluation purposes. The staff of the Department of Conservation shall complete the review of preapplications within 60 days of receipt of a complete preapplication. (b) Within 15 days of receipt of written comments, an applicant may request a meeting with the staff to discuss the staff comments concerning completeness of the application. The meeting should be held within 10 days of the request. (c) Notification of grant awards or denials will be made by the Director within 15 days following completion of staff review. Even though a jurisdiction is notified that they will receive a grant, payment of the grant monies cannot be made until the provisions of Sections 3861 and 3862 of the Public Resources Code have been fulfilled, and the final application that meets the requirements of Section 1796 of this chapter has been filed with the Department. Note: Authority cited: Section 3863, Public Resources Code. Reference: Sections 3861, 3862 and 3863, Public Resources Code. s 1796. Final Application Requirements. The final application shall include: (a) Evidence that the items required by subsections (a), (b), and (c) of Section 3862 of the Public Resources Code have been completed. (b) A resolution or notification from the eligible jurisdiction's governing body authorizing the request for the grant award. (c) A statement of compliance with CEQA requirements, if CEQA compliance was necessary for the activity. Note: Authority cited: Section 3863, Public Resources Code. Reference: Section 3863, Public Resources Code. s 1797. Fiscal Requirements for Grants. (a) Eligible jurisdictions receiving a grant shall establish a separate ledger account for expenditures that will be paid or are expected to be paid by grant funds. This will provide separate accountability for grant activities, ensure that expenditures to be paid by grant funds are not commingled with other funds, and feature accounting records that are supported by source documents. (b) Financial reports to the Department shall be submitted on a semi-annual basis. Note: Authority cited: Section 3863, Public Resources Code. Reference: Section 3863, Public Resources Code. s 1798. General Information. (a) All correspondence, notices of public hearings, notices of intent, preapplications, final applications, and financial reports shall be submitted to the Department of Conservation in Sacramento and to the Division of Oil, Gas, and Geothermal Resources in Cypress. The addresses will be provided when a jurisdiction is notified of their eligibility to receive a grant award. (b) Extensions of time periods indicated in this subchapter may be granted upon the showing of good cause. Note: Authority cited: Section 3863, Public Resources Code. Reference: Section 3863, Public Resources Code. s 1810. Purpose. It is the purpose of this subchapter to set forth the rules and regulations governing the submittal of proposed unit agreements, modifications thereof, additions thereto, and disagreements with respect to unit operations as provided in Chapter 3.5 (commencing with Section 3630) of Division 3 of the Public Resources Code and to implement, interpret and to make specific the provisions of said Chapter 3.5. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3630-3690, Public Resources Code. s 1811. Policy. Note: Authority cited: Section 3585, Public Resources Code. s 1820. Definitions. Note: Authority cited: Section 3685, Public Resources Code. s 1821. Standards. In implementing Chapter 3.5, the following standards shall be applied by the supervisor whenever relevant in any determination or order: (a) "Price of hydrocarbons" shall be the current price as of the date of the petition for: (1) Crude oil and liquid or liquefied products extracted and sold from wet gas, the average posted price for crude oil and like products of the same gravity in the field of which the unit area is a part, or if none, in the nearest field; (2) Residue dry gas, the average price in the field in which the unit area is located. In the event there are no relevant posted prices or a dry gas price, all relevant data shall be considered. (b) "Reasonable value of the use of the surface" as used in Public Resources Code Section 3648 shall be deemed to be fair rental value. The amount stipulated in the unit agreement shall be accepted as the fair rental value for any parcel for which royalty owners have signed the agreement. For those royalty owners included by an order by the supervisor, the fair rental value shall be determined by the supervisor. (c) "Present worth value" as used in Public Resources Code Section 3643(d) shall be determined by using a discount rate equal to two percent above the generally prevailing prime rate charged by three major banks in the district in which the field of which the unit area is a part as of the date of the filing of the petition. (d) The "reasonable interest charge" provided for in Public Resources Code Section 3646(b) shall not exceed two percent above the generally prevailing prime rate charged by major banks in the metropolitan area nearest the field of which the unit area is a part as of the first day of January and the first day of July of each year. (e) Upon a petition of a person for carrying or otherwise financing made pursuant to Section 3646(b), the supervisor shall order a committee to review the matter and submit a report. The committee shall be made up of one person nominated by the petitioner, one person nominated by the unit operator and one person chosen by the other two nominees, or in the event of disagreement between such two nominees as to the selection of the third person, one person chosen by the supervisor. The committee shall review all data and submit a report and recommendation to the supervisor as to (1) whether the petitioner is unable to meet his or her financial obligations in connection with unit operations; and (2) a program and plan for carrying or otherwise financing the petition, including but not limited to source of money, recommended interest rate and source of funds for repayment including future production from the petitioner's tract or tracts. (f) Under Section 3646(b) of the Public Resources Code, the provisions for carrying or otherwise financing persons who request the same and are determined by the supervisor to be unable to meet their obligations in connection with the unit operations, shall be met in one of the following methods: (1) By one or more of the working interests. (2) By the unit operator. (g) The tract share or tract assignment of hydrocarbon production shall be determined by calculating the estimated economic production using good oil field practices and prudent engineering. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3643(d), 3644, 3646(b), 3648 and 3652, Public Resources Code. s 1830. Fees. Upon filing a petition pursuant to this subchapter, the petitioner shall pay to the supervisor the fees set forth in this section. The supervisor may defer payment of a filing fee after a showing of good cause by the petitioner, but in no event shall payment be deferred beyond the effective date of the supervisor's order under Sections 3645, 3649, or 3651 of the Public Resources Code. (a) For any petition for approval of a unit agreement, the fee shall be $3,500.00. (b) For any other petition, the fee shall be $2,500.00. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3685, Public Resources Code. s 1831. Costs. (a) After the filing of a petition, and from time to time as the supervisor finds necessary, the supervisor may issue orders requiring the deposit of funds with the supervisor to cover the actual or estimated costs incurred by the State in the administration of Chapter 3.5 of Division 3 of the Public Resources Code or this subchapter. (b) Within 5 working days after issuance of an order by the supervisor pursuant to subsection (a), the petitioner shall make the required deposit. For a petition requesting the supervisor's review and decision pursuant to Section 3653 of the Public Resources Code, all costs paid by the petitioner shall be reimbursed by the unit operator if the supervisor upholds the position of the petitioner. (c) Any excess funds deposited with the supervisor shall be refunded after final disposition of the petition. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3685, Public Resources Code. s 1832. Failure to Pay. The supervisor may dismiss the petition if the petitioner fails to pay a filing fee or deposit funds pursuant to an order of the supervisor. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3685, Public Resources Code. Note: Authority cited: Section 3685, Public Resources Code. s 1850. Requests for Action. (a) Requests for action of the supervisor pursuant to Sections 3642, 3646(b), 3649, 3650, or 3653 of the Public Resources Code shall be made by filing a petition as provided in this article. (b) A petition shall be signed by the petitioner and filed, together with 5 copies, with the district deputy of the district in which the unit area is located. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3642, 3646(b), 3649, 3650 and 3653, Public Resources Code. s 1851. Persons Who May File a Petition. Note: Authority cited: Section 3685, Public Resources Code. s 1852. Filing of Petitions. Note: Authority cited: Section 3685, Public Resources Code. s 1853. Contents of Petition Requesting Approval of Unit Agreement. In addition to the information required by Section 3653.5 of the Public Resources Code, a petition requesting approval of a unit agreement shall contain: (a) The names and addresses of all persons listed in the records of the county tax assessor as having an interest in the lands included in the proposed unit area. (b) A certified copy of the resolution of the State Lands Commission approving the unit agreement in those cases where lands under the jurisdiction of the commission are in the proposed unit area. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3643(h) and 3653.5, Public Resources Code. s 1854. Contents of Petition Requesting Approval of Modification of Unit Agreement. A petition requesting approval of a proposed modification of a unit agreement previously approved by the supervisor shall contain: (a) A copy of the unit agreement and the proposed modification. (b) A report, accompanied by appropriate data, which establishes that the proposed modification qualifies for approval pursuant to Section 3649 of the Public Resources Code. (c) The names and addresses of all persons listed in the records of the county tax assessor as having an interest in the lands affected by the proposed modification. (d) A certified copy of the resolution of the State Lands Commission approving the proposed modification of the unit agreement in those cases where lands under the jurisdiction of the commission are affected by the proposed modification. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3649, Public Resources Code. s 1855. Contents of Petition Requesting Approval of Additions to Unit Area. A petition requesting the addition of a tract or tracts of land to the unit area of the unit agreement previously approved by the supervisor shall contain or have attached to it: (a) A copy of the unit agreement and a description of the lands proposed to be added. (b) A report, accompanied by appropriate data, which establishes that the request qualifies for approval pursuant to Section 3650 of the Public Resources Code. (c) A recommendation, supported by data and calculations, of the appropriate allocation of unit production within the meaning of Section 3652 of the Public Resources Code. (d) The names and addresses of all persons listed in the records of the county tax assessor as having an interest in the lands affected by the proposed addition. (e) A certified copy of the resolution of the State Lands Commission approving the addition to the unit area of any lands under the jurisdiction of the commission. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3650, Public Resources Code. s 1856. Resolution of Disagreement over Unit Operations. A petition requesting review and decision by the supervisor of a disagreement with respect to unit operations and each copy shall contain: (a) A copy of the unit agreement and any applicable unit operating agreement. (b) A report, accompanied by appropriate data, specifying in detail the nature of the disagreement. (c) A recommended resolution of the disagreement, accompanied by supporting data and calculations. (d) The names and addresses of all working interest owners in the unit, and all persons listed in the records of the county tax assessor as having an interest in the lands included in the unit area. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3653, Public Resources Code. s 1857. Determination of Inability to Meet Financial Obligations. A petition requesting the supervisor to determine that the petitioner is unable to meet his or her financial obligations in connection with unit operations shall contain: (a) A description of the petitioner's interest in the unit. (b) A complete financial statement establishing that the petitioner is unable to meet his or her financial obligations in connection with the unit operations. (c) The name and address of petitioner's nominee for the committee provided in Section 1821(e) of this subchapter. (d) A statement of the petitioner's preferences, if any, as to the source of repayment, including any production that may be used as a source of repayment. (e) A declaration that a copy of the petition has been sent to the unit operator. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3646(b), Public Resources Code. s 1858. Additional Data. The supervisor may request additional data with regard to any petition, and that data shall be submitted by the petitioner or the unit operator within 30 days of the request. Failure to comply with the request may result in the dismissal of the petition. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3642, 3646(b), 3649, 3650 and 3653, Public Resources Code. s 1860. Types of Hearings. Note: Authority cited: Section 3685, Public Resources Code. s 1861. Public Hearings. Note: Authority cited: Section 3685, Public Resources Code. s 1862. Informal Hearings. Note: Authority cited: Section 3685, Public Resources Code. s 1863. Time and Place for Public Hearings. (a) A public hearing shall be held no later than 45 days after the date the petition was filed. If a request for additional data has been made by the supervisor pursuant to Section 1858 of this subchapter, the hearing shall be held no later than 75 days after the petition was filed. (b) Public hearings shall be held at a convenient place within the district in which the unit area is located. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3643, 3649 and 3650, Public Resources Code. s 1864. Notice. (a) Written notice of all public hearings shall: (1) Be sent by regular mail to those persons and entities designated in Section 3659 of the Public Resources Code and to all persons whose names and addresses have been provided in the petition. (b) The notice shall state the time, place, and purpose of the hearing and that written or oral evidence shall be received at the hearing. (c) The notices shall be sent no less than ten days prior to the date set for the public hearing. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3659, Public Resources Code. s 1865. Hearing Procedures. (a) All petitions shall be heard by the supervisor or by a deputy designated by the supervisor. (b) The supervisor or the designated deputy shall determine the manner in which the hearing shall be conducted and the form and content in which evidence may be presented. (c) Within 60 days after the close of the hearing, the supervisor shall issue a written order granting or denying the petition in whole or in part. The written order shall state the facts upon which the supervisor bases his or her decision and the reasons for the decision. Note: Authority cited: Section 3685, Public Resources Code. Reference: Sections 3643, 3645, 3646, 3649, 3650, 3651 and 3652, Public Resources Code. s 1866. Hearing Officer. Note: Authority cited: Section 3685, Public Resources Code. s 1867. Evidence. Note: Authority cited: Section 3685, Public Resources Code. s 1868. Continuances. Note: Authority cited: Section 3685, Public Resources Code. s 1869. Record. Note: Authority cited: Section 3685, Public Resources Code. Note: Authority cited: Section 3685, Public Resources Code. s 1880. General. Note: Authority cited: Section 3685, Public Resources Code. s 1881. Notice of Offer to Sell. (a) An offer of sale pursuant to Section 3647 of the Public Resources Code shall be made by filing a written notice of the offer to sell the interest with the district deputy of the district in which the unit area is located. The notice shall contain: (1) An identification of the approved unit agreement. (2) A description of the tract offered for sale. (3) An identification of the oil and gas interest offered for sale, such as a royalty interest or working interest, together with a reference to any specific lease or contract giving rise to that interest, if applicable. (4) The address where the offeror may receive any notices and communications concerning the offer. (5) The price asked. (b) Within five working days after receipt in the district office of the notice provided in subsection (a) of this section, the supervisor shall send by regular mail copies of that notice to the unit operator and all working interest owners who have consented to the unit agreement. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3647, Public Resources Code. s 1881.5. Notice of Intention to Purchase. (a) Any working interest owner who desires to participate in the purchase of the offered interest shall file a notice of intention to purchase with the district deputy of the district in which the offered interest is located and shall give written notice thereof to the offeror on or before a date specified by the supervisor, which shall be no later than 30 days after the date the notice of offer of sale is filed pursuant to Section 1881(a) of this subchapter. (b) Negotiations toward the consummation of the purchase of the offeror's interest shall be undertaken in good faith by the offeror and by those working interest owners filing the notice of intention to purchase. Those negotiations shall be concluded on or before a date specified by the supervisor, which shall be no later than 60 days after the date the notice of offer of sale is filed under Section 1881(a) of this subchapter. (c) If the purchase price is agreed upon prior to the date specified in subsection (b) of this section, the offeror shall notify the supervisor immediately in writing, and the parties shall proceed expeditiously to finalize the sale agreement. The sale agreement shall be promptly filed with the supervisor and in no event shall be filed more than 15 days after written notice of the agreed price is given to the supervisor. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3647, Public Resources Code. s 1882. Disagreements as to Price. (a) If the parties fail to agree upon the purchase price for the offered interest within the time specified in Section 1881.5(b) of this subchapter, either party may invoke the arbitration provisions of Section 3647 of the Public Resources Code, and such arbitration shall be governed by the procedures described therein and in this section. (b) The person or persons electing arbitration shall file notice of the election in writing to the supervisor within 5 calendar days of the expiration of the negotiation period provided in Section 1881.5(b) of this subchapter. (c) Upon receipt of the notice provided in subsection (b) of this section, the supervisor shall: (1) Authorize the creation of an arbitration committee and direct that the committee act in accordance with the provisions of Section 3647 of the Public Resources Code. (2) Designate one committee member to act as chairperson and direct the committee to make an independent appraisal of the interest offered for sale. (3) Fix a date no later than 60 days after the date of receipt of the notice under subsection (b) of this section on or prior to which the committee shall submit to the supervisor its determination of the fair market value of the interest offered for sale and a report summarizing the basis for that value. Such 60-day period may be extended by the supervisor for one additional period of 30 days. (d) Notice of the supervisor's action under subsection (c) of this section shall be sent to the parties and the unit operator. (e) Upon receipt of the determination of the fair market value and the report of the committee, the supervisor shall send to the parties and the unit operator notice of the price at which the offered interest shall be purchased. Subject to the provisions for judicial review contained in Section 3647 of the Public Resources Code, the parties shall finalize the sale agreement and shall file the sale agreement with the supervisor within 15 days after receipt of the supervisor's notice of the price. Note: Authority cited: Section 3685, Public Resources Code. Reference: Section 3647, Public Resources Code. s 1883. Final Orders of the Supervisor. Note: Authority cited: Section 3685, Public Resources Code. s 1900. Purpose. It is the purpose of this subchapter to set forth the rules and regulations governing the geothermal regulation program of the Division of Oil, Gas, and Geothermal Resources as provided for by Chapter 4 (Sections 3700-3776), Division 3, of the Public Resources Code. Note: Authority cited: Sections 3700 through 3776, Public Resources Code. s 1910. Policy. s 1911. Scope of Regulations. These regulations shall be statewide in application. s 1912. Revision of Regulations. s 1913. Incorporation by Reference. s 1914. Approval. The approval of the supervisor is required prior to commencing drilling, deepening, redrilling, or plugging and abandonment operations. The written approval shall list any and all requirements of the division. In an emergency, the supervisor or a designee may give verbal approval to the operator to start any operations covered by these regulations, provided the operator sends the division a written notice of the emergency operations conducted within 5 days after receiving the verbal approval. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712, 3714, and 3724, Public Resources Code. s 1915. Legal Conflicts. s 1920. Legal Definitions. Note: Authority cited: Sections 3712 and 3714, Public Resources Code. Reference: Sections 3701-3711, Public Resources Code. s 1920.1. Definitions. (a) "Observation Well" means a well drilled strictly for monitoring purposes. (b) "Exploratory Geothermal Well" means a well other than a development well drilled to discover or evaluate the presence of either low-temperature or high-temperature geothermal fluids, including steam, where the surface location of the well is at least .8 km or one-half mile from the surface location of an existing well capable of producing geothermal fluids in commercial quantities. (c) "Development Well" means a well, other than an exploratory well, drilled for the purpose of producing either high-temperature or low-temperature geothermal fluids in commercial quantities. (d) "Abandoned Well" means a well the supervisor so designates after it has been demonstrated that all steps have been taken to protect underground or surface water suitable for irrigation or other domestic uses from the infiltration or addition of any detrimental substance, and to prevent the escape of all fluids to the surface. (e) "Injection Well" is a service well drilled or converted for the purpose of injecting fluids. (f) "High-Temperature Geothermal Fluid" means a naturally heated subterranean fluid with a surface temperature equal to or higher than the boiling point of water. (g) "High-Temperature Well" means a well drilled to discover, evaluate, produce, or utilize high-temperature geothermal fluids. (h) "High-Temperature Geothermal Field" means an area so designated by the supervisor for administrative purposes. The area shall contain at least one well capable of producing high-temperature geothermal fluids in commercial quantities. (i) "Low-Temperature Geothermal Fluid" means naturally heated subterranean fluid with a surface temperature below the boiling point of water at ambient atmospheric pressure. (j) "Low-Temperature Geothermal Well" means a well drilled to discover, evaluate, produce, or utilize low-temperature geothermal fluids where the fluids will be used for their heat value. (k) "Low-Temperature Geothermal Field" means an area the supervisor so designates for administrative purposes. The area shall contain at least one well capable of producing low-temperature geothermal fluids in commercial quantities. (l) "Idle Well" means a well, other than a suspended well, that has not been officially plugged and abandoned, on which the operator has ceased all activity, including but not limited to drilling, production or injection. (m) "Production Tested" means a well that the operator has tested for temperature, flow rate, and pressure. (n) "A well capable of producing geothermal fluid in commercial quantities" means a well: (1) Supplying geothermal fluid to an existing power plant or other facility for the purpose of generating electricity; or (2) Production tested and scheduled to supply geothermal fluid to a power plant or other facility for the purpose of generating electricity for which: (A) An application is pending before the California Energy Commission or the California Public Utilities Commission; or (B) The California Energy Commission or California Public Utilities Commission has approved a site; or (C) A contract has been executed between the supplier and a user and conditions have been fulfilled that commit the user to build a facility; or (3) Supplying geothermal fluid or completed and scheduled to supply geothermal fluid to facilities existing, under construction, or committed for construction, for any nonelectric use of geothermal resources, including but not limited to space heating or food processing; or (4) Production tested and, in the operator's opinion, able to supply sufficient geothermal energy to justify construction of a facility to utilize the energy, and designated capable of production by the supervisor; or (5) Production tested and found by the supervisor, after a public hearing, to be capable of producing sufficient geothermal energy to be a commercially viable geothermal development project. (o) "Usable Thermal Energy" means the usable heat energy contained in geothermal fluid, expressed in British Thermal Units or gigajoules. (p) "Notice" means an application for permission to do work on a well. (q) "Drilling Log" means the recorded description of the lithologic sequence encountered while drilling a well. (r) "Drilling Operations" means the actual drilling or redrilling of a well for exploration, production, observation, or injection, including the running and cementing of casing and the installation of wellhead equipment. "Drilling Operations" do not include perforating, logging, or related operations after all the casing has been cemented. (s) "Suspension" means the status assigned to a well that is temporarily abandoned pursuant to specified plugging requirements that are selected by the division from the plugging and abandonment requirements contained in Sections 1980, 1981, 1981.1, and 1981.2 of this subchapter, and the operations necessary to cause temporary abandonment have been carried out by the operator and approved by the division. (t) With respect to well depth: (1) "Shallow" means deeper than 25 feet (about 8 meters) but no deeper than 250 feet (about 76 meters); (2) "Intermediate" means deeper than 250 feet (about 76 meters) but no deeper than 1,000 feet (about 305 meters); (3) "Deep" means deeper than 1,000 feet (about 305 meters). (u) "BOPE" is an acronym for blowout prevention equipment. (v) "Mineral Extraction Well" means a well drilled, converted, or reworked for the purpose of discovering, evaluating, or producing minerals or other products in solution from naturally heated subterranean fluids. A low- or high-temperature geothermal well may also be a mineral extraction well. Note: Authority cited: Sections 3712 and 3714, Public Resources Code. Reference: Section 3714, Public Resources Code. s 1920.2. Field Designation. The supervisor may designate geothermal fields for administrative purposes. A field shall contain at least one well capable of producing geothermal resources in commercial quantities. The supervisor shall establish the boundaries by graphically constructing a one-mile square around each well capable of producing geothermal resources in commercial quantities. Each such well shall be at the center of a square. Note: Authority cited: Section 3714, Public Resources Code. Reference: Section 3712, Public Resources Code. s 1920.3. Field Rules. When sufficient geologic and engineering information is available, the supervisor may adopt or amend existing field rules for any geothermal resource field or area. Before adopting or amending field rules, the supervisor shall notify affected persons, including but not limited to operators, landowners, and any utilities or other commercial users, and allow at least 30 days for them to comment on the proposed rules. The supervisor shall notify affected persons in writing of the adoption of the rules. Note: Authority cited: Section 3714, Public Resources Code. Reference: Section 3712, Public Resources Code. s 1921. Duties of the Supervisor. s 1921.1. Duties of the Geothermal Resources Board. s 1930. General. All wells shall be drilled in such a manner as to protect or minimize damage to the environment, usable ground waters (if any), geothermal resources, life, health and property. s 1930.1. Designation of Agent. s 1931. Notice of Intention to Drill. Before an owner or operator can commence drilling a well, a Notice of Intention to Drill must be filed on a division form (OGG105-11/93) and submitted to the division, accompanied by the appropriate fee and bond (see Section 1932). The operator shall not commence drilling until the division approves the Notice of Intention to Drill. The Notice shall include all information required on the division form, and the following: (a) A map showing the parcel boundaries and the location of the proposed well. (b) If a government agency has prepared an environmental document for the proposed well, the name and address of the agency or a copy of the final environmental documents. If operations on an exploratory well or observation well for which the division is required to prepare environmental documents have not commenced within two years from the date the Notice of Intention to Drill was approved, the division shall cancel the notice unless, prior to the expiration date, the operator requests an extension on a Rework/Supplementary Notice. If operations on a development well, exploratory well, or observation well for which the division is not required to prepare environmental documents have not commenced one year from the date the notice is approved, the division shall cancel the notice unless, prior to the expiration date, the operator requests a time extension on a Rework/Supplementary Notice. The division may extend these time limits at its discretion. (c) Such other information as the supervisor may require. Note: Authority cited: Sections 3712 and 3714, Public Resources Code. Reference: Sections 3712, 3724, and 3724.1, Public Resources Code. s 1931.1. Rework/Supplementary Notice. If there is any change in the original Notice of Intention, or if the operator plans to deepen, redrill, plug, or perform any operation that will permanently alter the well casing, a Rework/Supplementary Notice must be filed with the division. A fee and/or bond may be required if, for example, the proposal concerns entering a plugged and abandoned or suspended well. If the drilling operations the division approved on a Rework/Supplementary Notice have not commenced one year from the date the notice is approved, the division shall cancel the notice unless, prior to the expiration date, the operator requests a time extension on a Rework/Supplementary Notice. The division may extend this time limit at its discretion. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712 and 3724, Public Resources Code. s 1931.2. Notice to Convert to Injection. An operator planning to convert an existing well to an injection or disposal well, even if there will be no change in mechanical condition, must file a Rework/Supplementary Notice with the division and the division must approve the notice before injection is commenced. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712 and 3724, Public Resources Code. s 1931.3. Notices to Drill Individual Shallow Observation Wells and Notices to Drill Shallow Observation Well Programs Are Required. s 1931.4. Supplementary Notice. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712 and 3724, Public Resources Code. s 1931.5. Unstable Terrain. If the construction of drilling sites, roads, sumps, steam transmission lines, and other construction attendant to geothermal operations could cause or could be affected by slumping, landslides, or unstable earth conditions, the supervisor shall require that the operator submit a written analysis of the proposed work prior to the commencement of any construction and prior to approving a permit to drill. At the request of the supervisor, the report shall be prepared by a civil engineer, licensed in the state and experienced in soils engineering; and if slumping or landsliding could be involved, the requested report shall also be prepared by an engineering geologist, certified in the state and experienced in slope stability and related problems. No permit to drill shall be approved unless the report indicates that the work is planned in such a manner as to reasonably mitigate the problem throughout the life of the project. Upon completion of any construction authorized by the supervisor pursuant to this section, the operator shall certify in writing to the supervisor that the work was carried out according to the approved plans subject only to changes approved by the supervisor. s 1932. Fees. The appropriate fee, as listed below, shall be paid when the Notice of Intention to Drill is filed. (Refer to Section 1920.1 for definitions of terms and depth limitations.) (a) $25 Fee. (1) Shallow low-temperature geothermal well. (2) Shallow observation well. (b) $200 Fee. (1) Shallow observation well program of up to and including 25 such wells (except as provided in PRC Section 3724.1). (2) Intermediate depth low-temperature geothermal well. (3) Intermediate depth observation well. (c) $500 Fee. (1) Intermediate depth observation well program of up to and including 5 such wells. (2) Development well, other than low-temperature, to any depth. (3) Deep low-temperature geothermal well. (4) Injection well. (5) Deep observation well. (d) $1,000 Fee. Exploratory well, other than low-temperature, to any depth. (e) If a Notice of Intention to Drill is cancelled, the division shall refund the fee paid by the operator, minus the division's administrative costs for processing and reviewing the notice. Note: Authority cited: Sections 3712 and 3714, Public Resources Code. Reference: Sections 3724 and 3724.1, Public Resources Code s 1933. Statewide Fee-Assessment Date. June 15 of each year is established as the statewide fee-assessment date. Assessments for all geothermal operators shall be annually fixed on or before June 15. The funds provided by fees are for the supervision of geothermal resource wells during the fiscal year following the statewide fee-assessment date. Note: Authority cited: Section 3724.5, Public Resources Code. Reference: Section 3724.5, Public Resources Code. s 1933.1. Establishment of Annual Well Fees. To establish the annual fee that must be charged to each geothermal well operator, the department, on or before the statewide fee-assessment date shall: (a) Make an estimate of the sum of the well drilling fees that will be filed by operators during the fiscal year following the fee assessment date. (b) Establish the appropriation for the supervision of geothermal resource wells from the amount proposed in the Governor's Budget. The appropriation shall be adjusted by any changes that have occurred during the legislative review process. (c) Establish the estimated surplus or deficit from the current and prior fiscal year by calculating the cost of the supervision of geothermal resource wells and the actual revenues therefrom. (d) Estimate the amount assessable to geothermal operators by taking the appropriation amount (paragraph b), deducting the well drilling fees (paragraph a), and adding or deducting the current year and prior year adjustments (paragraph c). (e) Determine the total number of chargeable wells by identifying the total number of producing, service, and idle wells that existed at any time during the preceding calendar year in the state. A well that has changed ownership one or more times during the preceding calendar year shall be counted only once, and assignment of charges shall be made to the operator of record on December 31 of that year. "Chargeable wells" shall not include: (1) Any well used for observation purposes. (2) Any well for which the supervisor has approved a suspension. However, a well must be suspended for the entire calendar year to be nonchargeable. (3) Any low-temperature well. (f) Determine the annual well fee by dividing the amount assessable by the total number of chargeable wells. (g) Determine the amount to be charged to each operator by multiplying the total number of chargeable wells of record on the previous December 31 by the annual well fee. Note: Authority cited: Section 3724.5, Public Resources Code. Reference: Sections 3724, 3724.1 and 3724.5, Public Resources Code. s 1933.2. Notification of Assessment. On or before June 15 of each year, the department shall notify each operator of that operator's assessment. If an operator believes an error has been made, the operator shall notify the supervisor of the division on or before July 1 following the notification of assessment. Note: Authority cited: Section 3724.5, Public Resources Code. Reference: Section 3724.5, Public Resources Code. s 1933.3. Establishment and Certification of Assessment Roll. (a) The director of the department shall create an Annual Assessment Roll as of July 1 of each year. The assessment roll shall be comprised of the name of each operator, a billing address, the number of chargeable wells as identified by the provisions of Section 1933.1(e) of this subchapter, and the amount charged. (b) On or before July 1, the director shall transmit the roll to the State Controller, together with a certification stating that appeals have (or have not) been adjudicated and the assessment roll contains the true and correct amounts to be assessed to each operator. (c) The director shall keep on file and have available for public inspection during regular office hours, a listing of the chargeable wells by operator. Note: Authority cited: Section 3724.5, Public Resources Code. Reference: Section 3724.5, Public Resources Code. s 1933.4. Payments and Penalties. (a) The charges levied and assessed are due and payable to the State Treasurer on the first of July of each year. One-half of the charges shall be delinquent if not paid on or before August 15th of each year. The remaining one-half of the charges shall be delinquent if not paid on or before the first of February of the following year. (b) Any person who fails to pay any charge within the time required shall pay a penalty of 10 percent of the amount due, plus interest on the charge due at the rate of 1 1/2% per month, or fraction thereof, computed from the delinquent date of the assessment until and including the date of payment. (c) Any person who fails to pay any charge or penalty shall be subjected to the provisions of Sections 3772-3775 of the Public Resources Code. Note: Authority cited: Section 3724.5, Public Resources Code. Reference: Sections 3724.5 and 3724.6, Public Resources Code. s 1934. Well Spacing. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712, 3757, 3757.1, 3757.2, 3758, 3759, and 3761, Public Resources Code. s 1934.1. Violation of Spacing. s 1935. Casing Requirements. All wells shall be cased in such a manner as to protect or minimize damage to the environment, usable ground waters and surface waters (if any), geothermal resources, life, health and property. The permanent wellhead completion equipment shall be attached to the production casing or to the intermediate casing if production casing does not reach to the surface. Division specifications for casing strings shall be determined on a well-to-well basis. All casing strings reaching the surface shall provide adequate anchorage for blowout-prevention equipment, hole pressure control and protection for all natural resources. The following casing requirements are general but should be used as guidelines in submitting proposals to drill. s 1935.1. Conductor Pipe. Conductor pipe shall be cemented with sufficient cement to fill the annular space from the shoe to the surface. An annular blowout preventer, or its equivalent, approved by the division, shall be installed on conductor pipe for exploratory wells and development wells when deemed necessary by the division. The division may waive this requirement for low-temperature geothermal wells. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3739 and 3740, Public Resources Code. s 1935.2. Surface Casing. Surface casing shall provide for control of formation fluids, for protection of shallow usable groundwater, and for adequate anchorage for blowout prevention equipment. All surface casing shall be cemented with sufficient cement to fill the annular space from the shoe to the surface. The following requirements may be modified or waived by the division for low-temperature geothermal wells. (a) Length of Surface Casing. (1) In areas where subsurface geological conditions are variable or unknown, surface casing in general shall be set at a depth equaling or exceeding 10 percent of the proposed total depths of wells drilled in such areas. A minimum of 60 meters (about 200 feet) and a maximum of 400 meters (about 1,300 feet) of surface casing shall be set. (2) In areas of known high formation pressure, surface casing shall be set at a depth determined by the division after a careful study of geological conditions. (3) Within the confines of designated geothermal fields, the depth at which surface casing shall be set shall be determined by the division on the basis of known field conditions. (b) Cementing Point for Surface Casing. Surface casing shall be cemented through a sufficient series of low permeability, competent lithologic units (such as claystone or siltstone) to ensure a solid anchor for blowout prevention equipment and to protect usable groundwater and surface water from contamination. A second string of surface casing may be required if the first string has not been cemented through a sufficient series of low permeability, competent lithologic units, and either a rapidly increasing thermal gradient or rapidly increasing formation pressures are encountered. (c) Drilling Fluid Return Temperatures. The temperature of the return drilling fluid shall be monitored continuously during the drilling of the surface casing hole. Either a continuous temperature monitoring device shall be installed and maintained in working condition, or the temperature shall be read manually. In either case, return drilling fluid temperatures shall be entered into the log book after each joint of pipe has been drilled down (every 10 meters, about 30 feet). Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3739 and 3740, Public Resources Code. s 1935.3. Intermediate Casing. Intermediate casing shall be required for protection against anomalous pressure zones, cave-ins, washouts, abnormal temperature zones, uncontrollable lost circulation zones or other drilling hazards. Intermediate casing strings shall be, if possible, cemented solid to the surface. s 1935.4. Production Casing. Production casing may be set above or through the producing or injection zone and cemented above the objective zones. Sufficient cement shall be used to exclude overlying formation fluids from the zone, to segregate zones, and to prevent movement of fluids behind the casing into zones that contain usable groundwater. Production casing shall either be cemented with sufficient cement to fill the annular space from the shoe to the surface or lapped into intermediate casing, if run. Production casing lapped into an intermediate string, shall overlap at least 15 meters (about 50 feet); the lap shall be cemented solidly; and shall be pressure tested to ensure its integrity. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3739 and 3740, Public Resources Code. s 1936. Electric Logging. All wells, except observation wells and low-temperature thermal wells, shall be logged with an induction electrical log, or equivalent, from total depth to the bottom of the conductor pipe, except in the case where air is used as the drilling medium. This requirement may be waived by the supervisor and may vary depending on geologic conditions as stated in Section 1935.2(a)(2). s 1937. Records. s 1937.1. Records Required to Be Filed with the Division. (a) Drilling Log and Core Record. The drilling log shall show the lithologic characteristics and depths of formations encountered, the depths and temperatures of water-bearing and steam-bearing strata, the temperatures, chemical compositions, and other chemical and physical characteristics of fluids encountered from time to time, so far as ascertained. The core record shall show the depth, lithologic character and fluid content of cores obtained, so far as determined. (b) Well History. The history shall describe in detail in chronological order on a daily basis all significant operations carried out and equipment used during all phases of drilling, testing, completion, recompletion and plugging and abandonment of the well. (c) Well Summary Report. The well summary report shall accompany the core record and well history reports. It is designed to show data pertinent to the condition of a well at the time of completion of work done. (d) Production Records. Monthly production records shall be filed with the division on or before the 30th day of each month, for the last preceding calendar month. (e) Injection Records. Monthly injection records shall be filed with the division on or before the 30th day of each month, for the last preceding calendar month. (f) Other Records. The following shall also be filed with the division, if run: electric logs, physical or chemical logs, tests, water analyses, and surveys (including temperature surveys and directional surveys). s 1937.2. Filing of Records. s 1937.3. Records As Evidence. s 1937.4. Publications. s 1938. Transfer of Property. s 1940. Authority. s 1941. General. Blowout-Prevention Equipment (BOPE) installations shall include high temperature-rated packing units and ram rubbers, if available, and shall have a minimum working-pressure rating equal to or greater than the lesser of: (a) A pressure equal to the product of the depth of the BOPE anchor string in meters times 0.2 bar per meter. (Feet times one (1) psi per foot) (b) A pressure equal to the rated burst pressure of the BOPE anchor string. (c) A pressure equal to 138 bars (2,000 psi). Specific inspections and tests of the BOPE shall be made by the division. The requirements for such tests will be included in the division's answer to the notice of intention to drill. s 1942. BOPE Guide. The division shall prepare a guide for establishing the blowout prevention equipment requirements specified in the division's approval of proposed operations. Note: Authority cited: Section 3714, Public Resources Code. Reference: Section 3739, Public Resources Code. s 1942.1. Unstable Areas. Drilling any wells, including water wells, is prohibited in areas containing fumaroles, geysers, hot springs, mud pots, etc. (unstable areas), unless the division determines, after a thorough geological investigation, that drilling in an unstable area is feasible. In this case, a special permit may be issued. The following may be required for a well drilled in an unstable area: (a) A division engineer shall be present at the well at all times during the initial phases of drilling until the surface casing has been cemented and the BOPE has been pressure-tested satisfactorily. The division engineer may observe all drilling operations at the well and if, in his or her opinion, conditions warrant, may order a second or third string of surface casing to be run. (b) The operator, while drilling the surface casing hole, shall continuously monitor and record the following: (1) Drilling fluid temperature (in and out), (2) Drilling fluid pit level, (3) Drilling fluid pump volume, (4) Drilling fluid weight, and (5) Drilling rate. (c) A drilling fee in addition to the fee specified in Section 1932, up to the maximum of $1,000 per well, depending on the geologic conditions in the area. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3724, 3739, 3740, and 3741, Public Resources Code. s 1942.2. Cable Tool Drilling. This method of drilling, or any other method of drilling, will be allowed, at the discretion of the supervisor, with certain stipulations in the following cases only: (a) Areas where formation pressures are known to be hydrostatic and are known to contain geothermal fluids at shallow depths, and where down-hole temperatures are less than 100 degrees C (212 degrees F). (b) Areas where geothermal fluids have been produced from shallow wells, less than 150 meters (500 feet) true vertical depth, over a number of years with no known history of a blowout or geyser. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712 and 3715, Public Resources Code. s 1942.3. Stable Areas Using Air As the Drilling Fluid. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712, 3715, 3724, 3739 and 3740, Public Resources Code. s 1942.4. Cable Tool Drilling. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712, 3715, 3724, 3737, and 3740, Public Resources Code. s 1950. Official Completion. A well is considered to be completed 30 days after drilling operations have ceased and the well is capable of producing a geothermal resource, or 30 days after the well has commenced to produce a geothermal resource, unless drilling operations are resumed before the end of the 30-day period. Note: Authority cited: Section 3714, Public Resources Code. Reference: Section 3737, Public Resources Code. s 1950.1. Time Limits. For the purpose of filing drilling records pursuant to Section 3735, Public Resources Code, the 60 day time limit for filing such records shall begin when the division determines that a well is completed, idle, or plugged and abandoned. Note: Authority cited: Section 3714, Public Resources Code. Reference: Section 3735, Public Resources Code. s 1951. Production Reports. s 1952. Maintenance. All wellheads, separators, pumps, mufflers, manifolds, valves, pipelines and other equipment used for the production of geothermal resources, shall be maintained in good condition in order to prevent loss of or damage to life, health, property and natural resources. s 1953. Corrosion. All surface wellhead equipment and pipelines and subsurface casing and tubing will be subject to periodic corrosion surveillance in order to safeguard life, health, property and natural resources. s 1954. Tests. (a) Requirements. The supervisor shall require such tests or remedial work as in his or her judgment are necessary to prevent damage to life, health, property, and natural resources, to protect geothermal reservoirs from damage or to prevent the infiltration of detrimental substances into underground or surface water suitable for agricultural, industrial, municipal, or domestic purposes, to the best interest of the neighboring property owners and the public. (b) Types of Tests. (1) Casing Tests (A) Spinner surveys (B) Wall thickness (C) Lap (D) Pressure (E) Radioactive tracer surveys (2) Cementing Tests (A) Cementing of casing (B) Pumping of plugs (C) Hardness of plugs (D) Depths of plugs (3) Equipment Tests (A) Gauges (B) Thermometers (C) Surface facilities, lines, vessels, etc. (D) Blowout-prevention equipment. BOPE inspections and/or tests are normally performed on all drilling wells. The supervisor requires that the blowout-prevention equipment be tested prior to drilling out the shoe of the surface casing. A division engineer must be contacted to witness a pressure test of each preventer of the well prior to drilling out the shoe of the surface casing. s 1954.1. Right of Entry. s 1960. Definition. Injection wells are those used for the disposal of waste fluids, the augmentation of reservoir fluids, pressure maintenance of reservoirs or for any other purpose authorized by the supervisor. New wells may be drilled and/or old wells may be converted for water injection or disposal service. Notices, bonds and fees are required for drilling or conversion as stated in Article 3. s 1961. Projects. Following is an outline which sets forth the requirements for initiating an injection project. Data and exhibits need only extend or cover the injection zone and zones which will possibly be affected by an injection project: (a) Letter setting forth the entire plan of operations, which should include: (1) Reservoir conditions. (2) Method of injection: through casing, tubing, or tubing with a packer. (3) Source of injection fluid. (4) Estimates of daily amount of water to be injected. (b) Map showing contours on a geologic marker at or near the intended zone of injection. (c) One or more cross sections showing the wells involved. (d) Analyses of fluid to be injected and of fluid from intended zone of injection. (e) Copies of letter or notification sent to neighboring operators if deemed advisable by the supervisor. s 1962. Project Approval. A written approval of a project will be sent to the operator and such approval will contain those provisions specified by the division as necessary for safe operations. Injection shall not commence until approval has been obtained from the division. s 1963. Notice to Drill New Well or Convert Existing Well. Prior to the operator doing work on a well, the appropriate notices must be approved by the division. Proposals to drill new wells for injection purposes shall be filed on the division form entitled Notice of Intention to Drill New Well (OGG 105). Proposals to convert existing wells shall be filed on the division form entitled Rework/Supplementary Notice. Bonds and fees are required for all proposed wells. The bonds and fees for an injection well are the same as those required for a development well. Injection wells shall conform to the division's spacing regulations. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712, 3723, 3724, and 3725, Public Resources Code. s 1964. Subsequent Work. A Rework/Supplementary Notice is required for any subsequent work that alters the well casing(s) or changes the use of the well as provided in Section 1966(f). Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3724, 3724.2, 3724.3, Public Resources Code. s 1965. Injection Reports. s 1966. Surveillance. (a) Surveillance of waste water disposal or injection projects is necessary on a continuing basis to establish to the satisfaction of the supervisor that all water is confined to the intended zone of injection. (b) When an operator proposes to drill an injection well, convert a producing or idle well to an injection well, or rework an injection well and return it to injection service, the operator shall be required to demonstrate complete casing integrity to the division by means of a specific test. (c) To establish the integrity of the casing and the annular cement above the shoe of the casing, within 30 days after injection is started into a well, the operator shall make sufficient surveys to demonstrate that all the injected fluid is confined to the intended zone of injection. Thereafter, such surveys shall be made at least every two years, or more often if ordered by the supervisor or his or her representative. All such surveys shall be witnessed by a division engineer. (d) After the well has been placed on injection, a division inspector shall visit the well site periodically. At these times, surface conditions shall be noted and, if any unsatisfactory conditions exist, the operator shall be notified of required remedial work. If this required work is not performed within 90 days, the approval issued by the division shall be rescinded. The supervisor may order that the repair work be done immediately if it is determined that damage is occurring at a rapid rate. (e) Injection pressures shall be recorded and compared with the pressures reported on the monthly injection reports. Any discrepancies shall be rectified immediately by the operator. A graph of pressures and rates versus time shall be maintained by the operator. Reasons for anomalies shall be promptly ascertained. If these reasons are such that it appears damage is being done, approval by the division may be rescinded, and injection shall cease . (f) When an injection well has been idle for two years, the division may inform the operator, by letter, that approval for use of the well for injection purposes is rescinded. If the operator intends to reclaim the well for injection purposes, a Rework/Supplementary Notice shall be filed proposing to demonstrate by specified tests that the injected fluid will be confined to the intended zone of injection. Note: Authority cited: Section 3714, Public Resources Code. Reference: Section 3712, Public Resources Code. s 1967. Abandonment. Note: Authority cited: Section 3714, Public Resources Code. Reference: Sections 3712, 3729, and 3740, Public Resources Code. s 1970. Responsibility. The prime responsibility for subsidence detection and abatement in geothermal areas in the State of California lies with the Division of Oil, Gas, and Geothermal Resources. s 1971. Imperial Valley Subsidence Regulations. (a) Surveys and Bench Marks. (1) Subsidence bench marks, at wellsites, tied to existing first- and/or second-order networks, are required for all wells that will be tested or produced. These bench marks shall be the responsibility of and at the expense of the operator. Surveys shall precede extensive production testing of the well. (2) All survey work shall be coordinated with the County Surveyor. (3) All work shall be done under the direct supervision of a Registered Civil Engineer or Licensed Land Surveyor. (4) An adequate series of bench marks shall be set as required by the division and shall be tied to existing survey nets. (5) All field work, computations, etc., shall conform to National Geodetic Survey (N.G.S.) standards. Refer to "Manual of Geodetic Leveling" (1948). (6) All surveys shall be second-order or better. (7) All single-point tie-ins shall be double-run. Survey loops between two points on existing surveys may be single-run. (8) Equipment shall be equal to or better than that accepted by the N.G.S. for second-order surveys. The N.G.S. procedures shall be followed. (9) Types of acceptable bench marks are: (A) Brass rod driven to refusal or 9 meters (about 30 feet) and fitted with an acceptable brass plate. (B) Permanent structure (head walls, bridges, etc.) with installed plate. (10) Bench marks at wellsites shall be situated so as to minimize the possibility of being destroyed during any subsequent work-over activity at the wells. Each bench mark shall be well marked so as to be plainly visible to work-over crews. (11) Between the wellsite and the network, bench marks shall be set at one-half mile intervals or as specified by the division. (12) Surveys shall be run annually by and at the expense of the operator while well(s) are being produced unless otherwise specified by the division. (13) The adjusted data from all surveys shall be submitted to the division within 60 days after leveling is completed. (14) Resurveys of the first- and second-order networks shall be coordinated by the division. (b) Reservoir Engineering. (1) Initial bottom-hole pressures and temperatures (allowing a minimum of one month static time) shall be submitted to the division within thirty (30) days of completion of work. (2) All preliminary test data shall be submitted to the division within 30 days of completion of the tests. (3) Monthly surface recordings of production, injection, temperature, and pressure shall be reported to the division on the appropriate forms (Sections 1951 and 1965). (4) Periodic development and review meetings between operators and the division shall be required (at least one per year). s 1980. Objectives. The objectives of abandonment plugging are to block interzonal migration of fluids so as to: (a) Prevent contamination of the fresh waters or other natural resources. (b) Prevent damage to geothermal reservoirs. (c) Prevent loss of reservoir energy. (d) Protect integrity of reservoirs. (e) Protect life, health, environment and property. s 1981. General Requirements. The following are general requirements which are subject to review and modification for individual wells or field conditions. The division may require the witnessing of any or all of the field operations listed below. (a) Notice of Intention to plug and abandon Geothermal Resources Well, is required for all wells. (b) History of Geothermal Resources Well shall be filed within 60 days after completion of the plugging and abandonment. (c) The division's Report of Well plugging and abandonment, will not be issued until all records have been filed and the site inspected for final cleanup by a division engineer. (d) Subsequent to the plugging and abandonment of the hole, all casings shall be cut off at least 2 meters (6 feet) below the surface of the ground, all concrete cellars and other structures shall be removed, and the surface location restored, as near as practicable, to original conditions. The landowner has the option to assume legal responsibility for a well; however, to do so he or she must have legal clearance from the division. (e) Good quality, heavy drilling fluid approved by the supervisor shall be used to replace any water in the hole and to fill all portions of the hole not plugged with cement. (f) All cement plugs, with the possible exception of the surface plug, shall be pumped into the hole through drill pipe or tubing. (g) All open annuli shall be filled solid with cement to the surface. s 1981.1. Exploratory Well Requirements (No Production Casing). (a) Base of fresh waters -a minimum of 30 meters (about 100 feet) of cement straddling the interface or transition zone whether behind casing or uncased. (b) Shoe plug (all casing, including conductor pipe) -straddle with 30 meters (about 100 feet) of cement. (c) Where the well has been drilled with air, a bridge plug shall be placed at the shoe of the surface casing and the bridge plug shall be capped with at least 60 meters (about 200 feet) of cement. (d) Surface plug -15 meters (about 50 feet) minimum. May be either neat cement or concrete mix. s 1981.2. Cased Wells. Cased exploratory, uncompleted development, former producing and injection wells. (a) Geothermal zones -uncased or perforated. Cement plugs shall extend from the bottom of the zone or perforations to 30 meters (about 100 feet) over the top of the zone or perforations. (b) Liners. Cement plugs shall be placed from 15 meters (about 50 feet) below to 15 meters (about 50 feet) above liner tops. (c) Casing may be salvaged within protection, if first approved by the division. A minimum overlap of 15 meters (about 50 feet) is required. (d) Casing stubs and laps. Cement plugs shall be placed, if possible, from 15 meters (about 50 feet) below to 15 meters (about 50 feet) above top of casing. If unable to enter stub or lap, 30 meters (about 100 feet) of cement shall be placed on the top of the stub or lap. (e) Fish, collapsed pipe, etc. Cement plugs shall be squeezed, with the use of a retainer or bradenhead, with sufficient cement to fill across the production zone or perforations and to 30 meters (about 100 feet) above the zone or perforations. (f) Base of fresh waters -a minimum of 30 meters (about 100 feet) of cement straddling the interface or transition zone, whether behind casing or uncased. (g) Shoe plug (all casing, including conductor pipe) -straddle with 30 meters (about 100 feet) of cement. (h) Where the well has been drilled with air, a bridge plug shall be placed at the shoe of the surface casing and the bridge plug shall be capped with at least 60 meters (about 200 feet) of cement. (i) Surface plug -15 meters (about 50 feet) minimum. May be either neat cement or concrete mix. s 1982. Abandonment of Deserted Well. s 1990. Complaints. s 1991. Filing Appeals. s 1992. Appeal Hearing. s 1993. Review of Hearing Decision. s 1995. Purpose. The purpose of this subchapter is to set forth the rules and regulations governing the disclosure and inspection of well records on file with the Division of Oil, Gas, and Geothermal Resources as provided for in Sections 3234 and 3752, Division 3 of the Public Resources Code. Note: Authority cited: Sections 3013 and 3712, Public Resources Code; and Section 6253(a), Government Code. Reference: Sections 3234(a) and 3752, Public Resources Code. s 1995.1. Policy. The policy of the division is to make all well records that are open to public inspection readily available to the public. Upon request by any person, identifiable public records shall be made available for inspection and copying as provided for in this subchapter. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code; and Sections 6256 and 6257, Government Code. s 1995.2. Scope of Regulations. These regulations shall apply to all records on file at every office of the Division of Oil, Gas, and Geothermal Resources as defined in Section 1996.1 of this subchapter. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234 and 3752, Public Resources Code. s 1995.3. Effective Date. s 1996. General. The following words or terms used in this subchapter, unless otherwise defined, shall have the meaning ascribed to them in this article. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code. s 1996.1. Records. "Records" mean all of the well records filed pursuant to Division 3, Chapters 3 or 4 of the Public Resources Code, including production and injection reports of the wells of any owner or operator, except experimental logs, experimental tests, or interpretive data as defined in this article. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code. s 1996.2. Confidential Status. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. s 1996.3. Experimental Log and Experimental Test. "Experimental log" or "experimental test" means a log or test that is not generally available to all operators, or that is run to evaluate whether such log or test is an effective, workable, and valid engineering or geologic tool. A log or test that is not generally available to all operators is one that is not listed in the pricing schedules, nor offered as a routine service, by established logging companies. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(d) and 3752(c), Public Resources Code. s 1996.4. Interpretive Data. "Interpretive data" mean geologic and engineering data, from an owner or operator, that are derived from raw data by means of professional study and interpretation. "Interpretive data" include, but are not limited to: geologic cross sections, subsurface contour maps, surface geologic maps, oil and gas reserve calculations, and paleontologic reports. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(d) and 3752(c), Public Resources Code. s 1996.5. Offshore Well. "Offshore well" as related to well records means a well that is identified by a specific API numbering system used to classify offshore wells. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3234(a), Public Resources Code. s 1996.6. Well. "Well" means an original hole, or a subsequent deepening or redrilling thereof, carried out after completion of the original drilling operation. The records of all holes drilled during the course of a single drilling operation or shallow geothermal observation well program shall be considered as records of a single well for purposes of this subchapter. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code. s 1996.7. Date of Cessation of Drilling Operations. "Date of cessation of drilling operations" means the date on which any or all equipment or machinery necessary for carrying out a drilling operation is removed from the well site. Note: Authority cited: Section 3013, Public Resources Code. Reference: Section 3234(e), Public Resources Code. s 1996.8. Date of Abandonment. "Date of abandonment" means the date on which, in the judgment of the supervisor, the plugging for the purpose of abandonment is completed or virtually completed. Note: Authority cited: Section 3712, Public Resources Code. Reference: Section 3752(a), Public Resources Code. s 1996.9. Extenuating Circumstances. "Extenuating circumstances" mean conditions, beyond the control of the owner or operator, which have prevented the owner or operator from utilizing the competitive advantage from the information obtained from a well. "Extenuating circumstances" include, but are not limited to, the following: (a) Active competitive leasing or mineral rights sales in the immediate vicinity of the well; (b) Governmental or judicial action delaying oil, gas, or geothermal development; (c) Natural disasters; or (d) Scarcity of materials and equipment. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code. s 1996.10. Applicant. "Applicant" means any person requesting permission to inspect and/or copy records on file with the Division of Oil, Gas, and Geothermal Resources. Note: Authority cite: Sections 3013 and 3712, Public Resources Code. Reference: Section 6250, Government Code. s 1997. General. All records filed with the Division of Oil, Gas, and Geothermal Resources, including records filed before July 1, 1976, are public records and are open for inspection and copying, except those records maintained in confidential status pursuant to Sections 3234 or 3752, Division 3 of the Public Resources Code. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections3234(a) and 3752(a), Public Resources Code. s 1997.1. Request for Confidential Status. (a) A request for confidential status pursuant to Sections 3234 or 3752, Division 3, Public Resources Code, must be filed prior to or at the time the records subject to said request are filed, and shall not apply retrospectively to portions of a well record already on file with the division for which confidential status had not been requested. Said request shall be made in writing to: (1) The district deputy of the district in which the well is located, for an onshore oil or gas well (see Map No. 1 titled "Oil and Gas District Boundaries of the Division of Oil, Gas, and Geothermal Resources"); (2) The district geothermal office for a geothermal well (see Map No. 2 titled "Geothermal District Boundaries of the Division of Oil, Gas, and Geothermal Resources"); Such request shall be signed by a representative of the company. (b) If the supervisor fails to reply to a request for confidential status within twenty (20) working days from the date of receipt of such request, the request shall be deemed approved. (c) Records that are the subject of a request for confidential status shall be retained in confidential status after receipt of the request until their status is determined by the supervisor. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code. s 1997.2. Request for Extension of Confidential Status. (a) A request for extension of confidential status pursuant to Sections 3234 or 3752, Division 3, Public Resources Code, shall be made in writing to the appropriate party, as indicated in Section 1997.1 of this article; shall document extenuating circumstances; and shall be signed by a representative of the company. (b) If the supervisor fails to reply to a request for extension of confidential status within twenty (20) working days from the date of receipt of such request, the request shall be deemed approved. (c) Records that are the subject of a request for extension of confidential status shall be retained in confidential status after receipt of the request until their status is determined by the supervisor. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(a) and 3752(a), Public Resources Code. s 1997.3. Classification As Experimental Log or Experimental Test. (a) The supervisor shall not consider a log or test for classification as experimental unless the owner or operator requests that such log or test be classified as experimental at the time of filing of the log or test with the division. Such request shall be made in writing to the appropriate party, as indicated in Section 1997.1 of this article; shall contain justification for the request; and shall be signed by a representative of the company. (b) If the supervisor fails to reply to a request for experimental status within twenty (20) working days from the date of receipt of such request, the request shall be deemed approved. (c) A log or test that is the subject of a request for classification as experimental shall be retained in confidential status after receipt of the request until the supervisor determines whether it is experimental. (d) The supervisor may review the experimental classification of logs and tests to determine if the classification remains appropriate. If technological advances or other factors indicate the experimental classification should be withdrawn, thus revoking confidential status, the supervisor shall notify the operator of this decision. If no written appeal is made pursuant to section 1997.5 of this article, the supervisor may open the log or test data to public review. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(d) and 3752(c), Public Resources Code. s 1997.4. Classification As Interpretive Data. (a) An owner or operator may request that certain data filed with the division be classified as interpretive; however, in the absence of such request, the supervisor may classify data as interpretive. (b) A request for classification of data as interpretive must be made at the time of filing of the data with the division. Such request shall be made in writing to the appropriate party, as indicated in Section 1997.1 of this article; shall contain justification for the request; and shall be signed by a representative of the company. (c) If the supervisor fails to reply to a request for interpretive status within twenty (20) working days from the date of receipt of such request, the request shall be deemed approved. (d) Data that are the subject of a request for classification as interpretive shall be retained in confidential status after receipt of the request until the supervisor determines whether they are interpretive. (e) The supervisor may review the confidential status of interpretive data after a period of five years. The data shall remain confidential unless the supervisor demonstrates that the data does not warrant classification as interpretive data. The supervisor shall notify the operator of this decision. If no written appeal is made pursuant to section 1997.5 of this article, the supervisor may open the interpretive data to public review. Note: Authority cited: Sections 3013 and 3712, Public Resources Code. Reference: Sections 3234(d) and 3752(c), Public Resources Code. s 1997.5. Appeal. (a) An owner or operator may appeal to the Director of the Department of Conservation within thirty (30) days following notification of: (1) the denial of a request for confidential status made pursuant to Section 1997.1 of this article, or (2) the denial of a request for extension of confidential status under Section 1997.2 of this article or (3) the denial of a request for, or the supervisor's withdrawal of, classification as an experimental log or test, or interpretive data made pursuant to Sections 1997.3 or 1997.4 of this article. Such appeal shall be made in writing, shall contain justification for the appeal, and shall be signed by the owner, operator or a representative of the company. (b) All records that are the subject of a denial of a request for, or extension of, confidential status made pursuant to Sections 1997.1 or 1997.2 of this article, or the subject of a denial of a request for, or withdrawal of, classification as an experimental log or test, or interpretive data made pursuant to Sections 1997.3 or 1997.4 of this article shall be confidential for a period of thirty (30) days following notification of the denial or withdrawal to allow adequate time for the filing of an appeal. Records that are the subject of an appeal pursuant to this section shall be retained in confidential status pending the Director's decision on the appeal. (c) If no written reply is made by the Director within thirty (30) days following the date of the appeal, the appeal shall be deemed denied and the records in question shall be public records. Note: Authority cited: Section 6253(a), Government Code. Reference: Section 6253(a), Government Code. s 1998. Request to Inspect and/or Copy Records. Note: Authority cited: Section 6253(a), Government Code. s 1998.1. Inspection and Copying of Records. Note: Authority cited: Section 6253(a), Government Code. s 1998.2. Written Guidelines. The supervisor shall establish written guidelines for accessibility of public records consistent with these regulations. A copy of the guidelines shall be posted in a conspicuous public place at the offices of the division and thereafter be available free of charge to any person. s 2000. Definitions. (a) In addition to the definitions provided in the California Beverage Container Recycling and Litter Reduction Act, except for subdivisions (a)(3.1), (10), (20), (21), (35), (37), (38), (40) and (42) below which modify definitions in the Act for purposes of these regulations, the following definitions shall apply whenever the terms are used in this chapter. (1) "Act" means the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 of the Public Resources Code). (2) "Administrative Costs" means the cost of recordkeeping and accounting required of curbside programs, distributors, recycling centers and processors to comply with the requirements of the Act and these regulations. (2.1) "Amended Processor Invoice" means an invoice submitted by a processor correcting an original report that has been processed and paid. (2.2) "Amended Shipping Report" means a shipping report submitted by a processor correcting an original shipping report that has been processed and paid. (2.5) "Alternative Methodology" means an individual commingled rate survey methodology, which either employs the Division's methodology with variations or creates a proposed methodology for the dropoff or collection, community service or curbside programs to arrive at an individual commingled rate. (3) "Applicant" means the person(s) who has authority to legally bind the operator to a contract. (3.1) "Beneficiating Processor" means any processor certified by the department who sells cullet to another certified processor or to a glass container manufacturer during the three months preceding the month in which scrap value data is reported to the Division and who beneficiates purchased cullet so that the cullet either: (A) meets the American Society for Testing and Materials (ASTM) standard specification for waste glass as a raw material for the manufacture of glass containers [E708-79 (Reapproved 1988) Standard Specification for Waste Glass As A Raw Material For The Manufacture of Glass Containers. Current Edition Approved Nov. 30, 1979: published January 1980, see appendix A]; or, (B) is free from nonglass contaminants and non-container glass compositions, cleansed, crushed to size, free-flowing with minimum water content, absent of hazardous material residue and passes furnace ready sampling and testing methods of a purchasing glass container manufacturer. (C) Notwithstanding, the other provisions of this section, any certified processor shall not be considered a beneficiating processor if fifty percent (50%) or more of the cullet purchased by that processor during the survey month in which the scrap value data is reported was purchased as beneficiated cullet. (3.2) "Beverage manufacturer" shall have the same definition as provided in Public Resources Code section 14506, and "any person . . . who imports", as provided in that section, shall include, in the following order of preference: (A) Any consignee of filled beverage containers brought into this State from without this State, when the filled beverage containers are for delivery, use, or sale within this State. (B) Any person or entity to whom delivery is first made in this State of filled beverage containers brought into this State from without this State, when the filled beverage containers are for delivery, use, or sale within this State. (C) Any person or entity bringing filled beverage containers into this State from without this State which are not consigned to any person, when the filled beverage containers are for delivery, use, or sale within this State. (4) "Cancellation" means the act of removing the refund value of an empty beverage container by any of the following actions: (A) Aluminum empty beverage containers shall be deemed cancelled when such containers can no longer be physically reconstituted or distinguished as container units. Except as provided in section 2110(b), this may be accomplished by shredding or densification to thirty pounds per cubic foot or more. (B) Glass empty beverage containers shall be deemed cancelled when such containers have been substantially cleaned of non-glass contaminants and they are crushed size in such a manner as to be acceptable without further processing by a willing user. (C) Plastic empty beverage containers shall be deemed cancelled when the original form has been so altered as to make its reconstitution physically impossible. (D) Bimetal empty beverage containers shall be deemed cancelled by densification sufficient to ensure that separation of a single container is no longer possible, or by shredding, milling, or nuggeting. (E) Any empty beverage container shall be deemed cancelled when it is permanently exported from the State and export verified in accordance with subsections 2420(d)(1), (2) and (3) of these regulations provided that, if aluminum beverage containers, they are first densified to no less than 15 pounds per cubic foot, or shredded. (F) Any empty beverage container shall be deemed cancelled when it is delivered to a location of end use and the delivery verified in accordance with subsections 2420(d)(1), (2) and (3) of these regulations provided that the following requirements are met: 1. aluminum beverage containers are first densified to not less than 15 pounds per cubic foot, or shredded. 2. glass beverage containers are delivered to a location of end use, which includes a beneficiating processor, as defined in Public Resources Code section 14503.6. (5) "Category" means the classification of operation, i.e., processor, recycling center, grandfathered recycling center, dropoff or collection program, or community service program. (6) "Certificate" means the official document issued by the Division which identifies an operator of a recycling center, dropoff or collection program, community service program or processing facility as meeting the requirements for certification by the Division. (7) "Certified" means an operator of a recycling center, dropoff or collection program, community service program or processing facility has met the minimum requirements established by the Division to receive the certificate defined in (6) above. (8) "Certification Sign" means a sign or decal issued by the Division for display which identifies the operator of a recycling center as meeting the requirements for certification by the Division. (9) "Clearly and Prominently" means that the redemption message is displayed so that it is easily found and read by consumers and recyclers. Each letter comprising the message is complete, legible, and cannot be readily obscured. Other factors include boldness, width, spacing, and location of lettering. The message must be distinguishable from refund messages of other states. (9.5) "Close proximity" means the area within, or adjacent to, a convenience zone, as determined by the Division on a case-by-case basis considering geographic and demographic factors, and consumer convenience. (10) "Commingled" means a mix of empty beverage containers and other containers of the same material type. Any broken glass empty beverage container(s) purchased from consumers, dropoff or collection programs, or community service programs shall be deemed commingled. Any broken or partial beverage container(s) or rejected, line breakage or out-of-state containers shall not be included when performing a survey methodology to arrive at an individual commingled rate or statewide average commingled rate. Dropoff or collection, curbside and community service programs' individual commingled rate shall be determined pursuant to subsection 2620 through 2645, 2660 through 2685, and 2720 through 2745, respectively. The statewide average commingled rates shall be determined by the Division pursuant to subsections 2900(a)(1)(B) and section 2930 of these regulations. (11) "Community Service Program" means a program, certified by the Division, which does not pay refund value and accepts or collects empty beverage containers at a specific location or locations and meets one of the following criteria: (A) The program is organized under Section 501(c) or 501(d) of the Internal Revenue Code [26 U.S.C. 501(c) and 501(d)], or (B) The program is a charitable group organized under Section 23701 of the California Revenue and Taxation Code, or (C) The program is operated by, or caused to be operated by, a city, county or other public agency. (11.1) "Consolidated Shipping Report" documents the delivery and receipt of material for processors or recycling centers that operate multiple recycling centers or receive material from dropoff or collection programs, community service programs, or curbside programs and is prepared pursuant to subsection 2090(f) of these regulations. (12) "Contrasting Colors" as used in reference to the redemption message lettering means a clear differentiation in hue, value, and intensity with the background on which the redemption message appears, surrounding artwork, and other nearby printed information. (13) "Days" means all calendar days unless provided otherwise. (14) "Delivered" or "Delivery", as used in subchapters 5 & 6 of these regulations, means physically taking possession of the material. (15) "Dual Certified Entity" means any person who is certified as a processor and also a recycling center at the same location as the processor. (16) "Densification" means the process of compressing material for the purpose of increasing the weight to volume ratio. (17) "Disposal Cost" means the transportation cost for hauling postfilled beverage container types to a state-permitted disposal site (landfill, incinerator, or other type of state-permitted site), plus the specified disposal fee. (18) "Division" means the Division of Recycling which is within the Department of Conservation. (19) (Reserved) (20) "Dropoff or Collection Program" means a recycling program which does not pay refund value and accepts or collects empty beverage containers, and which cannot qualify as a curbside program as defined in Section 14509.5 of the Act. "Dropoff or Collection Program" also means a program which separates recyclables from mixed municipal waste. "Dropoff or Collection Program" does not mean a program which accepts or collects recyclable materials which have already been separated from mixed municipal waste. Dropoff or Collection Program includes a Neighborhood Dropoff Program which meets all of the criteria in Section 14514.4.1 of the Act. (21) "Empty Beverage Container" means a beverage container which meets all the requirements in Section 14512 of the Act except that such term does not include refillable beverage containers. (22) "Exemption" means an exclusion to the requirement that a recycling center must be established in a convenience zone. (22.5) "Exempt convenience zone" or "Exempt zone" means a convenience zone which has been granted an exemption pursuant to Section 14571.8 of the Act. (23) "Exporting" means the act of sending a filled or unfilled empty beverage container or empty beverage container component permanently out of this State. (24) "Facility" means a recycling or processing operation that has been built, installed or established to serve as a collection or processing point for redeemable beverage containers. (25) "Grandfathered" is a term which refers to recycling centers that meet the requirements of section 2500(c) of these regulations. (26) "Importing" means the act of bringing into this State a filled or unfilled empty beverage container or empty beverage container component. (27) "Indelibly" means that the redemption message is permanently affixed on the beverage container from the point of purchase until the point of redemption and cannot be smeared or removed during regular use. (27.1) "Individual Commingled Rate" means a commingled rate approved by the Division which is applicable to dropoff or collection, community service, or curbside programs, which have obtained prior approval from the Division. (27.5) "Interested person" means a supermarket, dealer, certified recycling center, person with a pending certification application, located in or in close proximity to the zone under consideration for an exemption or revocation of an exemption, or a local government agency with jurisdiction over the area where the zone under consideration for an exemption or revocation is located. (27.6) "Line Breakage," for purposes of these regulations, means preconsumer material that is recycled or disposed of by a container manufacturer, beverage manufacturer, distributor, or dealer. (27.7) "Letter of Denial" (LED) means a notice sent to program participants denying requests to conduct an individual commingled rate survey or denying approval of an individual commingled rate, or revoking an individual commingled rate for reason(s) indicated in the LED. (28) "Location" means the street address where the facility operates. (29) "Location of End Use" means the place where beverage containers or materials are physically reconstituted for purposes other than sorting, shredding, stripping, compressing, storing, landfilling, disposing, or other activities which do not result in recycling. (29.5) "Low volume" means an average monthly volume, as defined at Section 14503.5 of the Act, which is less than the statewide average monthly volume of recycling centers in convenience zones. Average monthly volumes shall be calculated annually and shall apply during the calendar year immediately following the calculation. (30) "Material" means the physical substance used to manufacture a beverage container or food and drink package including, but not limited to, aluminum, bimetal, glass, and plastic. (30.7) "Milk" means the lacteal secretion which is obtained from the udder of a cow or goat. (31) "Minimum Lettering Size" is applicable to the height of all the letters in the redemption message. (32) "Nonaffiliated seller" means any person who sells scrap beverage container material types to a certified processor and is neither owned nor managed in common with such processor. (32.4) "Notice of Denial" (NOD) means a notice sent to program participants denying requests for program payments, including handling fees, for reason(s) indicated on the notice. Handling fee notices will be sent for each denied site and will explain why the site was denied during a particular month. (33) "Operator" means the person(s) or entity who has ultimate responsibility for a recycling facility, processing facility, dropoff or collection program, or community service program. (34) "Person" means an individual, corporation, operation, or other entity, regardless of its form, subject to the Act. (35) "Processor" means any person, including a scrap dealer, who purchases or offers to purchase empty beverage containers from more than one recycling center in this state and is responsible for cancelling empty beverage container(s) in a manner prescribed in section 2000(a)(4) of these regulations. (35.1) "Processor Invoice" means the report required in section 2425 of these regulations which the Department uses to determine payment to a certified processor. (36) "Public Agency" means the city, county, district or other government entity which operates a curbside program or which has the authority to approve or acknowledge the operation of a curbside program. (36.5) "Recycling Center" means those operations defined in Section 14520 of the Act and includes "Nonprofit Convenience Zone Recycler" as defined in Section 14514.7 of the Act and "Rural Region Recycler" as defined in Section 14525.5.1 of the Act. (37) "Redeem" means to return an empty beverage container which bears the message as required in Section 14561 of the Act to a certified recycling or processing facility and receive refund value for the container. (38) "Redeemable Beverage Container" means a container which bears the message as required in Section 14561 of the Act and has an established refund value. (39) "Redemption Weight" is the weight of empty California redemption-labeled beverage containers. (40) "Refund Value" means, in addition to the definition provided in Section 14524 of the Act, any amount paid by a noncertified recycler, dropoff or collection program, or community service program, or any payments received by a noncertified recycler, in excess of: (A) For aluminum, the scrap price as listed in the American Metal Market publication. (B) For glass, plastic and bimetal, the portion of the processing payment which are the costs for the recycler, as determined by the Division pursuant to Section 14575 of the Act. (41) "Rejected Container" means a California redemption-labeled beverage container, which a container manufacturer or beverage manufacturer elects to recycle or dispose of without paying any applicable processing fee, or which a distributor elects to recycle or dispose of without paying the redemption payment. "Rejected containers" includes container tops, lids, or other components which bear the message as required in Section 14561 of the Act. (41.05) "Representation of Materials" means a typical collection of commingled container materials, of the same material type, representing a ratio of empty beverage containers and all other containers collected by the program and surveyed by the operator to determine an individual commingled rate for dropoff or collection, community service, or curbside programs. (41.1) "Rural Region" means a non-urban area identified by the Division on an annual basis using Farmers Home Administration criteria. Such criteria for area include, but are not limited to, places, open country, cities, towns, or census designated places with populations less than 10,000. Areas with populations between 10,000 and 50,000 may be designated as rural unless identified as part of, or associated with, urban areas, as determined by the Department on a case by case basis. (41.2) "Scrap", for purposes of these regulations, is any recyclable container, including food or drink packaging material, other beverage containers, other nonredeemable containers, out-of-state beverage containers, line breakage or rejected containers, of the same material composition as redeemable containers covered by the Act. (42) "Scrap Value" is the total net payment per ton to any nonaffiliated sellers in each of the following categories: Certified recycling centers, dropoff or collection programs, community service programs, registered curbside programs, and certified processors, for container material types. (43) "Segregated" means divided by material type and that such divided load consists of 100% California Refund Value material. (44) "Shipping Report" is the documentation of the receipt of material by a processor, or by a recycling center from another recycling center, dropoff or collection program, community service program, or curbside program. The shipping report is the basis for payments by the Division pursuant to Section 14573 of the Act. (45) "Shrinkage" means the reduced value due to contamination of empty beverage containers by dirt, moisture, or other foreign substances. (46) "Size" means the capacity of the beverage container in fluid ounces. (47) "Statistical Sample" means an estimate with an 85% confidence level. (47.1) "Supplemental Processor Invoice" means: (A) A report to correct any shipping report(s) denied on the original processor invoice and/or (B) A report to add any shipping report(s) to the original processor invoice for transactions that occurred within the same specific reporting period. (47.2) "Total Net Payment", as used in subparagraph (a)(42) of this section and section 2425, means the amount paid for the reported monthly weight after deductions (e.g., transportation service) and additions (e.g., freight allowance) pertinent to the specific sales transaction have been made. "Total net payment" includes positive, zero and negative dollar amounts, as applicable. This subsection is not intended to relieve a processor of its obligation to pay refund value, administrative and processing payments pursuant to Sections 14539(b)(3) of the Act and sections 2400 and 2430 of this chapter. (47.3) "Urban Area" means an area identified by the Division on an annual basis using Farmers Home Administration criteria. Such criteria for area include, but are not limited to, densely settled areas of continuous residential development with minimum population of 50,000. Areas with populations less than 50,000 and greater than 10,000 may be designated as urban unless identified as part of, or associated with, rural areas, as determined by the Department on a case by case basis. (48) "Working Days" means all days except Saturdays, Sundays, and official California State Holidays. (49) "Zonemate" means a supermarket which lies within the boundaries of a convenience zone other than the one that it creates. Note: Authority cited: Sections 14530.5(b), 14536(b) and 14536.1, Public Resources Code. Reference: Sections 14500, 14501(f), 14503, 14503.6, 14504, 14505, 14506.5, 14509.5(b), 14511.7, 14512, 14512.5, 14513, 14514.4.1, 14514.7, 14517, 14518, 14518.5, 14519.5, 14520, 14520.5, 14520.6, 14522.5, 14524, 14525.5.1, 14526, 14530, 14530.2, 14536(a), 14537, 14538, 14539, 14550, 14552, 14561, 14571.2, 14571.8(b), 14572, 14573, 14573.5, 14573.51, 14574 and 14575(a) and (b), Public Resources Code. Appendix A Designation: E 708-79 Standard Specification for Waste Glass As a Raw Material for the Manufacture of Glass Containers [FN1] This standard is issued under the fixed designation E 708: the number immediately following the designation indicates the year of original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. 1. Scope 1.1 This specification covers particulate glass (cullet material, recovered from waste destined for disposal, smaller than 6 mm intended for reuse as a raw material in the manufacture of glass containers. 2. Applicable Documents 2.1 ASTM Standards C 162 Definitions of Terms Relating to Glass and Glass Products [FN2] C 169 Chemical Analysis of Soda-Lime and Borosilicate Glass [FN2] C 429 Sieve Analysis of Raw Materials for Glass Manufacture [FN2] E 688 Testing Waste Glass as a Raw Material for Manufacture of Glass Containers [FN3] 3. Definitions 3.1 first glass cullet - a particulate glass material that contains no more than 0.1 weight % Fe 2 O 3 or 0.0015 weight % Cr 2 O 3, as determined by chemical analysis. 3.2 For definitions of other terms used in this specification, refer to Definitions C 162. 4. Representative Sample 4.1 The following requirements qualify the glass lot to be used for direct use in soda-lime glass container manufacturing. Sample should be prepared and examined in accordance with Methods E 688. NOTE1 -A preponderant proportion of glass cullet will be soda-lime bottle glass, the glass cullet having a composition as follows, as determined by Method C 169. Oxide Composition, Weight % SiO2 66 to 75 A12 O3 1 to 7 CaO + MgO 9 to 13 Na2O 12 to 16 NOTE2 -All percents referred to in this specification are weight percents. 5. General Requirements. 5.1 The sample shall show no drainage of liquid and be noncaking and free flowing. A moisture content of less than 0.5 weight % is required to meet the free-flowing characteristics of a cullet that is predominantly of smaller particle size, 1.18-mm (No. 16) sieve or smaller. 5.2 Screen Size - No material shall be retained on a 6-mm (1/4-in.) screen. Material not exceeding 15 weight % shall pass through a 106- m m (No. 140) screen. 5.3 Organic Materials - The total content of organic materials, as measured in accordance with Section 6 shall not exceed 0.2 weight % of dry sample, except for color-mixed glass where the content of organic material may exceed 0.2 weight %. However, a content of organic material greater than 0.2 weight % must be held within a tolerance of + 0.05 weight %, with a maximum organic limit of 0.4 weight %. 5.4 Magnetic Materials -The total magnetic materials shall not exceed 0.05 weight % of dry sample weight for flint glass and 0.14 weight % for colored glass of dry sample weight in accordance with Section 6. [FN1] This specification is under the jurisdiction of ASTM TM Committee E-38 on Resource Recovery and is the direct responsibility of Subcommittee E38.05 on Glass. [FNCurrent] edition approved Nov. 30, 1979. Published February 1980. [FN2] Annual Book of ASTM Standards, Part 17. [FN3] Annual Book of ASTM Standard s, Part 41. 5.5 Permissible Color Mix for Color Sorted Glass Cullet by Weight: 5.5.1 Amber Glass Cullet: 90 to 100 % amber 0 to 10 % flint 0 to 10 % green 0 to 5 % other colors 5.5.2 Green Glass Cullet: 50 to 100 % green 0 to 35 % amber 0 to 15 % flint 0 to 4 % other colors 5.5.3 Flint Glass Cullet: 95 to 100 % flint 0 to 5 % amber 0 to 1 % green 0 to 0.5 % other colors 5.5.3.1 Percents above 0.1 weight % of Fe 2 O 3 or 0.0015 weight % of Cr 7 O 3, or both, as determined by chemical analysis shall be considered mixed color glass. These limits are consistent with industry experience on raw material. 5.5.3.2 Flint glass cullet may contain up to 1 weight % emerald green or 10 weight % Georgia green, or a combination within the limits: 1 % Georgia green = 0.1 % emerald green. 5.6 Other Inorganic Material (such as non-magnetic metals or refractories) -As measured, material larger than 850- m m (No. 20) screen size shall not exceed 0.1 % of the dry sample weight. Material smaller than 850- m m screen size shall not exceed 0.5 % of the dry sample weight. 5.6.1 Refractories -Based upon U.S. series screen size and sample weight, the following refractory particle limits shall apply for each screen fraction as stated below. +20 mesh 1 particle per 18-kg (40-lb) sample -20, +40 mesh 2 particles per 450-g (1-lb) sample -40, +60 mesh 20 refractory particles per 450-g (1-lb) sample 5.6.2 Nonmagnetic Metals: +20 mesh 1 particle per 18-kg (40-lb) sample Upon failure to meet the previously stated specification limits, retesting is permissible. 6. Sampling and Testing 6.1 Sampling and testing shall be in accordance with Methods E 688. The American Society for Testing and Materials takes no position respecting the validity of any patent rights assured in connection with any item mentioned in this standard. Users of this standard are expressly advised that determination of the validity of any such patent rights, and the risk of infringement of such rights, are entirely their own responsibility. This standard is subject to revision at any time by the responsible technical committee and must be reviewed every five years and if not revised, either reapproved or withdrawn. Your comments are invited either for revision of this standard or for additional standards and should be addressed to ASTM Headquarters. Your comments will receive careful consideration at a meeting of the responsible technical committee, which you may attend. If you feel that your comments have not received a fair hearing you should make your views known to the ASTM Committee on Standards 1916 Race St., Philadelphia, Pa. 19103, which will schedule a further hearing regarding your comments. Failing satisfaction there, you may appeal to the ASTM Board of Directors. s 2005. Certification Required. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14538, 14539 and 14541.5, Public Resources Code. s 2010. Applicant Qualifications. (a) Any operator of a recycling center, a dropoff or collection program, community service program or a processing facility shall be eligible to apply for certification in the respective category from the Division. (b) A processor shall meet the requirements and be certified to operate a recycling center in order to receive any payments from the Division for beverage containers purchased by the processor directly from consumers. (c) Operators certified by the Division must establish and maintain an office in California where records and reports meeting the requirements of Articles 3 of Subchapter 5 and Article 3 of subchapter 6 of these regulations will be stored and available for inspection at the request of the Division. The office shall be identified on the application for certification as the business address of the operator. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14514.5, 14538, 14539, 14540 and 14553(b), Public Resources Code. s 2015. Filing of Applications for Certification. (a) Applications for certification, on a form(s) provided by the Division, shall be accepted and reviewed on a continuous basis as received. (b) A separate, complete application shall be submitted to request certification to operate each recycling center, dropoff or collection program, community service program and processing facility. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14538, 14539 and 14540, Public Resources Code. s 2020. Multiple Convenience Zones or Multiple Locations. (a) The Division shall accept a single application for an individual recycling center to redeem empty beverage containers in more than one convenience zone only if the convenience zones overlap and the recycling center is located in the overlapped area of the convenience zones. (b) The Division shall accept multiple applications from an individual operator of a recycling center or a processing facility requesting certification at more than one location. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14538, Public Resources Code. s 2025. Certification Outside Convenience Zones. (a) Certification of an operator of a recycling center shall not require that the recycling center be located within a designated convenience zone. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14538, Public Resources Code. s 2030. Review of Applications. (a) All applications for certification shall be reviewed by the Division for compliance with these regulations. (b) The Division shall periodically conduct field investigations to verify the accuracy of information contained in the certification application and explain program requirements. (c) The Division shall notify the applicant in writing within fifteen (15) working days of receipt of the application, or receipt of additional information if the application was initially incomplete, that it is either: (1) Complete and accepted for further review, or (2) Incomplete and the reasons for the incompleteness. (d) Upon determining that an application is complete, the Division shall notify the applicant in writing within forty-five (45) calendar days that such application is either: (1) Approved, (2) Approved with a probationary status, or (3) Denied and the reasons for denial. (e) In determining whether the operator is likely to operate in accordance with these regulations, the Division shall review the certification history of the operator and other individuals identified in the application as responsible for the recycling center, processing facility, dropoff or collection program, or community service program operation. (f) The Division shall review its records to determine whether one or more certified entities have operated within the past five years at the same location that is the subject of an application for certification of a recycling center or processor. If one or more entities have operated at the same location, the Division shall review the certification history of the entity or entities certified at the same location within the past five years and determine whether the operations at the location exhibit, to the Division's satisfaction, a pattern of operation in compliance with the requirements of the California Beverage Container Recycling and Litter Reduction Act, including all relevant regulations adopted thereunder. (g) Reasons for denial of applications may include, but shall not be limited to, any of the following: (1) Failure to provide information or documentation to complete the application as stipulated in section 2045 and 2055 of these regulations; (2) The operator is unwilling to accept and redeem all beverage container types; (3) The recycling center operator does not agree to be open for business at least thirty (30) hours per week, five (5) of which are other than from 9 a.m. to 5 p.m. on Monday through Friday; (4) The operator's certification history demonstrates outstanding fines, penalties, or audit findings; (5) The operator's certification history discloses decertification of a recycling center, processing facility, dropoff or collection program, or community service program within the past two-year period; (6) The operator's certification history demonstrates a pattern of operation in conflict with the requirements of the California Beverage Container Recycling and Litter Reduction Act, including all relevant regulations adopted thereunder; or (7) For applications for certification of recycling centers or processors, the certification history of one or more entities certified at the same location within the past five years fails to demonstrate to the Division's satisfaction a pattern of operation in compliance with the requirements of the California Beverage Container Recycling and Litter Reduction Act, including all relevant regulations adopted thereunder. (h) Notwithstanding paragraph (3) of subsection (g) above, the Division may allow the applicant to operate less than 30 hours per week if all of the following conditions are met: (1) the recycling center will be located in a designated rural region; and, (2) the recycling center will not be located within a convenience zone; and, (3) the proposed operating hours will not significantly decrease the ability of consumers to conveniently return beverage containers for the refund value to a certified recycling center redeeming all material types. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14538, 14539, 14540, 14541 and 14571, Public Resources Code. s 2035. Withdrawal of Applications. (a) An applicant shall have the right to withdraw an application from review by the Division. Such withdrawal shall be requested in writing and submitted to the Division. (b) A withdrawal of application shall not prohibit the operator of a recycling center, dropoff or collection program, community service program or processing facility from reapplying at a later date. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14538 and 14539, Public Resources Code. s 2040. Submission of New Applications. (a) The occurrence of any one of the following conditions shall require an operator to file a new application with the Division in accordance with section 2045 or section 2055 of these regulations: (1) A change in the location of the recycling center or processing facility; or (2) A change in the operator of the recycling center, dropoff or collection program, community service program or processing facility; or (3) A change in category as defined in section 2000(a)(5) of these regulations; or (4) With the exception of an operator who is currently operating under a probationary certification, expiration of the certificate; or (5) A change in the type of organization operating the certified entity. (b) A new application shall be submitted forty-five (45) calendar days prior to the occurrence of any of the conditions in subsection (a), above. (c) If a new application is not received and approved by the Division on or before the expiration date of the certificate, the existing certificate shall expire and the operator shall not be eligible for any refund value, administrative fees, processing payments or handling fees from the date of expiration until a new application is approved. The Division shall review all new applications for renewal of certification in the same manner as initial applications. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14518.5, 14538, 14539 and 14541, Public Resources Code. s 2045. Applications for Recycling Centers and Processors. (a) To be considered complete, the applications (see Figures 1, 2, 3, and 4) shall contain the following information: (1) The category of certification requested. (2) The contact person, business address, mailing address, and telephone number of the organization. (3) The type of organization which is requesting certification. (A) If the organization is an individual doing or proposing to do business under a different name, the applicant shall provide a copy of any fictitious business name statement. (B) If the organization is a partnership, the applicant shall provide a copy of the current partnership agreement and any fictitious business name statement. (C) If the organization is a corporation, the applicant shall provide the corporate number and Articles of Incorporation and name and position of all current corporate officers as filed with the Secretary of State, any fictitious business name statement, and the agent for service of process. (D) If the organization is a corporation from a state other than California, the applicant shall provide a copy of the approved certificate from the California Secretary of State qualifying and authorizing the corporation to transact business in California. (E) If the organization is a husband and wife co-ownership, the applicant shall provide both names and any fictitious business name statement. (F) If the organization is a local government agency, the applicant shall provide a copy of the authorizing resolution from the governing board. (G) If the organization is a limited liability company (LLC), the applicant shall provide a copy of the Articles of Organization and Statement of Information as filed with the Secretary of State, any operating agreement, any fictitious business name statement, and the agent for service of process. (H) If the organization is a limited liability company from a state other than California, the applicant shall provide a copy of their certificate from the California Secretary of State authorizing the LLC to transact business in California. (4) The federal identification number (employer ID number) of the organization. (5) A history of past and pending certifications requested from the Division. (6) The name, address, and phone number (if applicable) of the recycling center or processing facility. (7) The physical location of the facility in relation to the nearest cross street. (8) The name, address and phone number of the owner or leaseholder, if applicable, of the facility premises. (A) If the applicant owns the property, a current mortgage statement or a current tax bill which specifically identifies the organization name and the facility location. (B) If applicant is leasing, renting, or operating on donated space, a signed copy of a current lease, rental agreement or written permission from the property owner or leaseholder who has authority to determine use of the specific property shall be provided. (9) Processors shall provide the actual days and hours open for business if a regular schedule is maintained or, if a regular schedule is not maintained, processors shall indicate that they transact business by appointment only. This is for informational purposes only and does not subject processors to the fine and penalty provisions of the Act. (10) Recycling centers shall provide the actual days and hours open for business. (A) For recycling centers which are staffed, "actual days and hours open for business" shall be those days and hours where staff are scheduled to be present and do not include lunch breaks. (B) For recycling centers which consist of reverse vending machines, "actual days and hours open for business" shall include all of the following: 1. The days and hours when the machine is scheduled to be in operation, and 2. The days and hours when beverage containers which are odd-sized or made from materials other than aluminum, glass and plastic will be redeemed, and 3. The days and hours when any beverage containers not accepted by the reverse vending machine will be redeemed by the host dealer. (11) With the exception of recycling centers which meet the criteria for grandfathering and processors, acknowledgment that the organization agrees to accept and redeem all types of redeemable beverage containers. (12) For recycling centers, a general description of the methods used to collect, store and/or cancel redeemed beverage containers. This shall include, but is not limited to, the types of equipment and/or receptacles used and the staffing. (13) For recycling centers, the organization shall indicate if applying as a rural region recycler or a nonprofit convenience zone recycler. (14) Recycling centers which consist of reverse vending machines shall specify a method for redeeming empty beverage containers which are odd-sized, made from materials other than aluminum, glass and plastic, or otherwise not accepted by the reverse vending machine. In determining whether the method is acceptable, the Division shall consider, but not be limited to, the following: (A) Convenience to the public, (B) Volume of containers sold, and (C) Size and shape of containers (15) For processors, the type(s) of beverage containers which will be accepted. (16) Processors shall describe which of the acceptable methods prescribed in section 2000(a)(4) of these regulations will be used to cancel redeemable beverage containers. (17) The name, residence address, including city and zip code, and residence phone number of the applicant. Programs operated by limited liability companies, corporations or governmental agencies are exempt from this provision. (18) For an organization seeking certification of a recycling center located on federal land, a written authorization from an authorized agent of the federal government which will allow inspectors from the Division to enter the federal property for the purpose of conducting audits and unannounced inspections of the recycling center, pursuant to section 2125 of these regulations. (19) For organizations requesting certification to operate a grandfathered facility, evidence that the recycling center was in operation on January 1, 1986, and the types of beverage containers accepted on that date. (b) The application shall be submitted on a form entitled "Certification Application, Recycling Centers and Processors," DOR 6/93 6, Rev. 10/99 provided by the Division and signed by the applicant under penalty of perjury. The signature block shall contain an affidavit that the information in the application is true and that the organization agrees to operate in compliance with the Act and these regulations. (1) If the organization is a partnership, the application shall be signed by each partner. (2) If the organization is a firm, association, corporation, county, city, public agency or other governmental entity, the application shall be signed by the chief executive officer or the individual with authority to legally bind said entity to a contract. (3) If the organization is a husband and wife co-ownership, the application shall be signed by both the husband and wife. (4) If the organization is a limited liability company, the application shall be signed by a managing member, Executive Officer, or other designated member with the authority to legally bind the limited liability company to a contract. (5) The applicant shall provide the drivers license number of the applicant for identification purposes. (c) An organization seeking certification to operate a recycling center as a nonprofit convenience zone recycler shall provide written documentation showing that its organization was established under Section 501(c) or 501(d) of Title 26 of the United States Code. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14514.7, 14515.6, 14538, 14539, 14540 and 14571(a), (b) and (d), Public Resources Code. s 2046. General Content of Applications for Dropoff Programs and Collection Programs. s 2050. Plan of Operation for Recycling Centers, Nonprofit Dropoff Programs and Processors. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14515.6, 14538, 14539, 14540, 14541.5, 14542, 14571(a), (b) and (d), Public Resources Code. s 2051. Filing and Review of Applications for Certification of Dropoff and Collection Programs. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7, Public Resources Code. s 2055. Applications for Dropoff or Collection Programs and Community Service Programs. (a) To be considered complete, applications (See Figures 5, 6, and 7) shall contain the following information: (1) The contact person, title, organization name, business address, mailing address and daytime telephone number of the person, association, corporation, church, club or other organization requesting certification. (2) The type of organization which is requesting certification. (A) If the organization is an individual doing or proposing to do business under a different name, the applicant shall provide a copy of any fictitious business name statement. (B) If the organization is a partnership, the applicant shall provide a copy of the current partnership agreement and any fictitious business name statement. (C) If the organization is a corporation, the applicant shall provide the corporate number and Articles of Incorporation and name and position of all current corporate officers, as filed with the Secretary of State, any fictitious business name statement, and the agent for service of process. (D) If the organization is a corporation from a state other than California, the applicant shall provide a copy of the approved certificate from the California Secretary of State qualifying and authorizing the corporation to transact business in California. (E) If the organization is a husband and wife co-ownership, the applicant shall provide both names and any fictitious business name statement. (F) If the organization is a local government agency, the applicant shall provide a copy of the authorizing resolution from the governing board. (G) If the organization is a limited liability company (LLC), the applicant shall provide a copy of the Articles of Organization and Statement of Information as filed with the Secretary of State, the operating agreement, any fictitious business name statement, and the agent for service of process. (H) If the organization is a limited liability company from a state other than California, the applicant shall provide a copy of their certificate from the California Secretary of State authorizing the LLC to transact business in California. (3) The federal identification number (employer ID number) of the organization. (4) A history of past and pending certifications requested from the Division. (5) The name of the program, if different from the organization name (i.e., association, corporation, church, club or other organization). (6) The types of empty beverage containers collected or accepted. (7) A description of the recycling program demonstrating that it meets the criteria for a dropoff or collection program as defined in section 2000(a)(20) or a community service program as defined in section 2000(a)(11) of these regulations. (8) If seeking certification as a neighborhood dropoff program, the applicant shall so state. (9) If the program separates beverage containers from mixed municipal waste, a copy of the current permit or formal acknowledgement from the local government agency. (10) The number and location of any dropoff sites. (11) If applicable, the business name, address, contact person's name and telephone number of three (3) bars, restaurants, hotels or motels, or other commercial or industrial establishments, from which the organization collects empty beverage containers. (12) The name, residence address, including city and zip code, and residence phone number of the applicant. Programs operated by limited liability companies, corporations or governmental agencies are exempt from this provision. (13) The application shall be submitted on a form entitled, "Certification Application, Dropoff or Collection Programs and Community Service Programs," DOR 6/93 7, Rev. 10/99 provided by the Division and signed by the applicant under penalty of perjury. (A) The signature block shall contain an affidavit that the information in the application is true and that the organization agrees to operate in compliance with the Act and these regulations. (B) If the organization is a partnership, the application shall be signed by each partner. (C) If the organization is a firm, association, corporation, county, city, public agency or other government entity, the application shall be signed by the chief executive officer or the individual with authority to legally bind said entity to a contract. (D) If the organization is a husband and wife co-ownership, the application shall be signed by both the husband and wife. (E) If the organization is a limited liability company, the application shall be signed by a managing member, Executive Officer, or other designated member with the authority to legally bind the limited liability company to a contract. (F) The applicant shall provide the vehicle license number and driver license number of the applicant for identification purposes. (14) For an organization seeking certification of a dropoff or collection program located on federal land, a written authorization from an authorized agent of the federal government which will allow inspectors from the Division to enter the federal property for the purpose of conducting audits and unannounced inspections of the dropoff or collection program, pursuant to section 2125 of these regulations. (b) An organization seeking certification as a neighborhood dropoff program shall provide: (1) An area map noting the dropoff locations included in the program; and (2) The specific address of each dropoff location included in the program. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7, Public Resources Code. s 2060. Certification Required. (a) With the exception of section 2060(b), the certificate shall be kept on file at the recycling and/or processing facility. An operator may request that the certificate be kept on file at another location, and the Division shall grant approval of such request when the request is submitted in writing and the following conditions are met: (1) A facsimile of the certificate with a statement indicating where the original certificate is maintained is kept on file at the recycling and/or processing facility, and (2) The original certificate is maintained at the main business office of the operator where records and reports meeting the requirements of Article 3 of subchapter 5 and Article 3 of subchapter 6 of these regulations are maintained. (b) The certificate issued to the operator of a reverse vending machine, dropoff or collection program, or community service program shall be kept on file at the main business office of the operator where records and reports meeting the requirements of Article 3 of subchapter 5 and Article 3 of subchapter 6 of these regulations are maintained. (c) With the exception of probationary certificates and certificates whose term is otherwise limited by law, the certificate for recycling centers and processors shall be valid for five (5) years and the certificate for dropoff or collection programs and community service programs shall be valid for two (2) years from the date the certification application is approved by the Division, or until such time as it is surrendered by the operator, or suspended or revoked by the Division. (d) The certificate is neither transferrable nor assignable to any other person, company, processor, recycling center, dropoff or collection program, community service program or other entity. (e) The certificate is issued to a specific operator of a recycling center or processing facility for a specific category of certification for a specific location. The certificate issued to a dropoff or collection program or community service program is issued to the operator for a specific category. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14538 and 14539 Public Resources Code. s 2065. Posting of Certification. (a) The certification sign provided by the Division shall be prominently displayed where it can be viewed by customers approaching the recycling center. (b) The certification sign may be posted at a location which varies from the provisions of this section if requested in writing and approved in writing by the Division. (c) The certificate or certification sign shall not be displayed by any person, company, processor, recycling center, dropoff or collection program, community service program or other entity not approved for certification by the Division. Dropoff or collection programs or community service programs, and processors are not required to post a certification sign. (d) The certificate is the property of the Division and shall be returned to the Division upon decertification, revocation of certification, invalidation of certificate or expiration of certification. (e) The certification sign is the property of the Division and, at the request of the Division, this sign shall be returned to the Division upon decertification, revocation of certification, invalidation of certification or expiration of certification. Certification decals are exempt from this provision. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7, 14538, and 14539 Public Resources Code. s 2070. Applicability. To the extent that a person performs the functions of more than one entity (such as beverage manufacturer and distributor or recycling center and processor) governed by these regulations, such person shall separately comply with the applicable subchapter and article for each function. The provisions of this article apply to every person subject to regulation under the Act, including but not limited to container manufacturers, beverage manufacturers, distributors, recycling centers, and processors, unless specifically stated otherwise. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14530.5 and 14536, Public Resources Code. s 2075. Examinations. (a) The Division or persons authorized by it shall conduct examinations of curbside programs, recycling centers, processors, beverage manufacturers, distributors, and any other person subject to audit or examination pursuant to the Act. Nothing herein shall limit the authority of the Division pursuant to the Act to audit, examine, review, inspect, or otherwise determine the compliance of any person with the Act or this chapter. (b) An examination is a review, of any books, records, accounts, or on-site operations, for the purpose of determining compliance with the Act or this chapter. Such reviews may include observation and inspection of transactions, verification of measurements, counts, weights or statistics, or other examination procedures regarding payments, transfers or other activities related to the Act. Nothing herein shall in any way limit the Division's ability to carry out its responsibilities pursuant to the Act. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14537, 14541(c), 14549.1, 14552 and 14553(b), Public Resources Code. s 2080. Proprietary and Other Records Exempt from Disclosure. (a) All information obtained by the Division pursuant to this chapter may be disclosed to the public upon request unless the information is exempt from such disclosure pursuant to the Act, the Public Records Act, or other applicable law. Information exempt from public disclosure includes, but is not limited to, proprietary information concerning specific sales or purchases; market reports; personal financial data; or other information as permitted by section 6255 of the Public Records Act (Government Code section 6255). (b) Upon receipt of a written request for records pertaining to information obtained by the Division pursuant to this chapter, the Division shall determine whether the requested information may be exempt from disclosure. The Division shall notify the requesting party of its determination within 10 days of the receipt of the written request as required by the Public Records Act (Government Code section 6256). If the Division determines that the information is not exempt from disclosure, it shall promptly provide it to the requesting party in accordance with the procedures of the Public Records Act. (c) This subsection does not preclude the Department from compiling aggregate information for use in a final public document. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Section 14551(b), Public Resources Code; Sections 6250-6267, Government Code. s 2085. Records. Any records which persons are required to maintain pursuant to theseregulations shall be kept in accordance with the following provisions: (a) Location of Records. (1) Records of certified recycling centers and certified processors shallbe kept at the business address identified in the application for certification pursuant to section 2045(a)(2) or (a)(6) of these regulations. Recordsmay be moved to and kept at a different location if notice is given to theDivision pursuant to subsection (3) below. (2) Container manufacturers in this state, beverage manufacturers inthis state, and distributors shall give the Division notice of the locationof their records on or before October 1, 1987. Notice of any change inlocation, or intent to establish a new location of such records, shall be provided pursuant to subsection (3) below. (3) Notice shall mean written notice stating the full name of the person; certification number where applicable; complete present and future addresses of the location of the records, and name and phone number of theindividuals responsible for such records. Such notice shall be submittedno less than 10 days prior to any change in location or establishment ofa new location. (4) Records of dropoff or collection programs and community serviceprograms shall be kept at the business address identified in the application for certification pursuant to section 2055(a)(1) of these regulations.Records may be moved to and kept at a different location, if notice is given to the Division pursuant to subsection (3) above. (b) Record Retention Period. Records shall be maintained for at leastfive years following their preparation. (c) Suitability for Examination. Any receipt or log records that certified recycling centers other than reverse vending machines are requiredto maintain pursuant to this chapter shall be original receipt or log records. All records maintained pursuant to this chapter shall be suitable forexamination. All records suitable for examination shall be prepared andretained in accordance with all of the following conditions: (1) records must be legible; (2) records must be stored at the address identified by the certified operator pursuant to subsection (a)(1), (3) or (4) above; (3) records must be stored in a secured area where the records are protected from debris, moisture, contamination, hazardous waste, fire andtheft; (4) records shall not be stored in an unprotected area, stored in an outside location, stored in a motor vehicle or stored in a location where therecords are likely to become contaminated, damaged or stolen. (d) If the Department determines that records do not meet the conditions in Section 2085(c), the Department may take disciplinary actionagainst the certificate holder pursuant to Section 14591.2(c) of the Act. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code.Reference: Sections 14537, 14538, 14539 and 14552, Public Resources Code. s 2090. Reports, Notices, and Claims Submitted to the Division. (a) Except where specifically provided otherwise, any reports, notices, and claims prepared pursuant to this chapter shall be prepared and submitted in the form designated by the Division. Only reports, notices, and claims in such form and bearing an original signature pursuant to subsection 2090(d)(4) shall be acceptable. The Division shall provide reporting forms to any person upon request. (b) In lieu of submitting information on report forms provided by the Division, program participants who use Automated Data Processing (ADP) equipment for maintaining records and producing reports, may submit these ADP reports, provided that such reports: (1) are consistent with the recordkeeping requirements of these regulations; and (2) provide the information in the form and manner required by the Division. Where magnetic tapes, diskettes, microfilms, or other ADP-produced reports are submitted in lieu of written reports, a representative of the submitting organization shall certify in accordance with subsections (d)(4) and (5) below, that these ADP reports are the actual records or were compiled from the actual records of the program participant. (c) Except as provided in subsection (b) above, reports, notices, claims, and all applicable supporting data shall be accurate, complete, and typed or legibly handwritten in English using permanent ink. Errors shall be voided only by using a single line through the error. Correction fluid, correction tape or erasures shall not be used for correcting errors on any documentation required by or submitted to the Department. (d) All reports and claims to support payments to or from the Division shall contain all of the following information: (1) The full name, address, and identification number of the entity preparing the report; and (A) For recycling centers, dropoff or collection programs, community service programs and processors, the identification number shall be the certification number designated by the Division. (B) For all other persons, the identification number shall be the Seller's Permit Number as designated by the state pursuant to Revenue and Taxation Code sections 6066 and 6067. (C) If an entity preparing the report has no certification number or Seller's Permit Number, an identification number shall be obtained from the Division upon written request. (2) The name and phone number of a contact person for purposes of the report; and (3) The reporting period and date of preparation of the report; and (4) The signature and title of the representative of the entity authorized to prepare the report. The signature block shall state that the information in the report or claim is correct to the best knowledge of the person submitting the report or claim; and (5) The date and place of the signing of the claim or report. (e) Failure to comply with any provision of this section, or other reporting requirements of this chapter, shall be grounds for the Division to reject or deny the report, notice or claim or take disciplinary action against the certificate holder pursuant to Section 14591.2(c) of the Act. Any such rejection shall not extend any applicable time period. (f) In lieu of submitting multiple shipping reports to document transactions between affiliated recycling centers or the receipt of material by a recycling center or processor from a dropoff or collection program, community service program, or curbside program, certified processors and certified recycling centers may apply in writing to the Division for permission to file consolidated shipping reports. (1) The Division shall approve or deny such requests within 45 days of receipt of the application; and, if the request is approved, a consolidated reporting number shall be issued to the applicant. (2) The Division shall deny an application to file consolidated shipping reports if the recycling center or processor is not operating in compliance with Section 14538 or Section 14539 of the Act, as applicable. (3) Upon obtaining written authorization from the Division, processors and recycling centers may consolidate their reporting records onto one shipping report for each delivery to another recycling center or processor and attach a detailed listing of each location's recycling activity for transactions from the effective date of the authorization forward. (A) Processors and recycling centers shall retain copies of consolidated shipping reports and all supporting documentation. (B) Consolidated shipping reports shall consist of the following general information, delivery-specific information and information related to totals (see Figure 8 for example): 1. Name and address of the receiving certified administrative office, 2. Certification number, 3. Material type, 4. Shipping report (DR-6) number, 5. Number of shipments, 6. Shipper's certification number, 7. Receipt and log dates, if applicable, 8. Received weight, excluding line breakage, rejected and out-of-state containers. 9. Redemption weight; 10. Adjusted redemption weight, 11. Refund value, 12. For glass collected by curbside programs that meets the requirements of Section 2850(e), the sorting facility shall be identified as either the Shipper (S), or the Receiver (R). 13. Total payments, 14. Total received weight, excluding line breakage, rejected and out-of-state containers. 15. Total redemption weight claimed, 16. Total adjusted redemption weight, 17. Total refund value, 18. Total payments. (4) The Division shall revoke authorization to file consolidated shipping reports if the recycling center or processor is not operating in compliance with Section 14538 or Section 14539 of the Act, as applicable. Figure 8. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7, 14518.5, 14538, 14539, 14541, 14549.1, 14550, 14551, 14552 and 14553, Public Resources Code; and Sections 6066 and 6067, Revenue and Taxation Code. s 2095. Payments. Payments to consumers shall be in cash or by check or by voucher, which is immediately redeemable for cash. All financial transactions shall be reported and recorded in currency of the United States of America ( "dollars"). Where the actual transaction is made in foreign currency it shall be converted to dollars for reporting and recording at the prevail ing exchange rate at the time of the payment. All payments to the Division shall be in dollars and made by either check, draft, money order or cashier's check payable to the State of California, Department of Conservation. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14553, 14574 and 14575, Public Resources Code. s 2100. Penalties and Interest Charges. (a) For violations of subchapters 1, 6, 7 and 9 and sections 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, 2125, 2130, 2400, 2405, 2415, 2420, 2425, 2430 of chapter 5, division 2, title 14 of the California Code of Regulations and sections 14560.5(a), 14561(c), 14561(d), 14570, 14571.6 and 14572 of the Act, the Division shall issue a Notice of Violation. The Notice of Violation shall be issued to a responsible party (i.e., the manager or other person in authority) at the site of the violation and shall contain the information in subsections (1) and (4) below. A copy shall be served upon the legal owner of the entity, (respondent), within ten (10) working days. The Notice of Violation served upon the legal owner shall contain all of the following: (1) A brief statement of the violation(s) alleged. (2) A statement to the effect that the respondent has the right to a formal hearing, upon request, at which they may be represented by counsel. (3) A statement that the respondent's right to a hearing will be deemed waived if respondent fails to respond in writing within 15 days from the date service of the Notice of Violation was received by the respondent, or respondent's agent for service, stating that he/she wishes to assert that right and that, in the event of such failure to respond, the Department may assess the maximum civil penalty permitted by law without a hearing. (4) A sworn statement, signed by the Division inspector issuing the violation(s), verifying the acts or omissions which form the basis of the violation(s). (b) For civil penalties sought by the Department pursuant to sections 14591.1, 14591.2, 14593, or 14594 of the Act, the Division shall provide for notice and a hearing regarding such penalties in accordance with the provisions of chapter 5 of the Administrative Procedure Act (Government Code Section 11500 et seq.); except that notice for violations of the Act, and the regulations enacted thereunder, enumerated in subdivision (a) shall be effected pursuant to the procedures in subdivision (a). (c) Interest shall accrue from the date the payment was due. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14591.1, 14591.2, 14593 and 14594, Public Resources Code; and Section 11500 et seq., Government Code. s 2105. Persons Certified as Both Processors and Recycling Centers (Dual Certified Entities). (a) All persons certified as both a processor and a recycling center ( "dual certified entities") shall receive material from other recycling centers, curbside programs, dropoff or collection programs and community service programs as a processor. All receipts or reports of such transactions requiring the certification number shall be filled out with the processor certification number. (b) For the purpose of complying with section 2420(b) of these regulations, a dual certified entity may summarize the total weight purchased at its recycling center for each shipping report period and record the information in the received weight section of the shipping report (DR-6 (11/05)). If this method is used, the dual certified entity shall use its daily summaries to summarize the total refund value from each reporting period and record that information on the DR-6. The total redemption weight will be then calculated, based on the refund value, and recorded on the DR-6. Out-of-state material, rejected material, and line-breakage material shall not be included in the summarized received weight. (c) For the purpose of complying with section 2425(d) of these regulations, a dual certified entity may prepare more than one shipping report (DR-6 (11/05)) for transfers of material between its recycling center and its processor for each processor reporting period. If refund values, processing fees, administrative fees, or if any rate changes during a processor reporting period, a separate shipping (DR-6 (11/05)) report shall be prepared for each rate or fee change within that processor reporting period. The received date recorded on each shipping report shall be the last day of the receipt and log period. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14540, 14549.1, 14572 and 14573.5, Public Resources Code. s 2110. Canceled Materials and Rejected Containers. (a) Except as specified in subsection (b) of this section, no person shall pay or receive a refund value, processing payment, administrative fee, handling fee or other payment mandated by the Act or this chapter for any material that has been canceled, any rejected containers, or any line breakage containers. (b) The Division shall pay applicable payments or fees to a processor for material canceled by the processor and reported pursuant to section 2425 of these regulations. (1) A processor may issue a written authorization, for a period not to exceed one year, to a recycling center or another processor to cancel material. (2) The processor shall submit a copy of the authorization in (b)(1) above to the Division at least 12 days prior to its effective date. The Division shall modify the beginning or ending dates, if the authorization is not submitted 12 days prior to its effective date or exceeds the one year limitation in 2110(b)(1) above. The Division shall have the authority to deny the authorization and must notify the parties of such denial, in writing, prior to the date the authorization would have become effective. If the Division does not deny the authorization, in writing, prior to the effective date the authorization shall be deemed approved. (A) The Division may deny an authorization to cancel only upon the grounds enumerated as follows: 1. If aluminum beverage containers, the recycling center or another processor does not have the capability to shred the material or densify the material to at least 15 pounds per cubic foot. 2. If, for any beverage container type, the recycling center or another processor has been found to be in violation of sections 14538(b) or 14539(b) of the Act within the prior two year period of the requested date of the authorization to cancel and the violation(s) has (have) not been corrected. (3) Notwithstanding (1), above, a processor shall not issue an authorization to a recycling center or another processor to cancel aluminum beverage containers unless such recycling center or processor either shreds the material or densifies the material to no less than 15 pounds per cubic foot prior to cancellation by shipment to a location of end use or shipment out-of-state and the processor has verified that the recycling center or processor has the equipment to densify, or shred, and that the equipment is properly functioning at the time the authorization is given. (4) The authorization in (b)(1) above shall contain all of the following information: (A) The dates during which it shall be in effect. (B) The certification numbers of both the recycling center or other processor and the authorizing processor. (C) The material type which the recycling center or other processor is being authorized to cancel and the method of cancellation. (D) The manufacturer and model number of the equipment being utilized to cancel the material, if applicable, and the manner by which the processor verified that the equipment is properly functioning. (5) The Division shall have the authority to immediately revoke, effective upon written notification to both parties, any authorization to cancel aluminum beverage containers if the authorized recycling center or other processor is no longer capable of shredding or densifying to at least 15 pounds per cubic foot, or does not do so. (6) The Division shall have the authority to immediately revoke, effective upon written notification to both parties, an authorization to cancel for any beverage container type, if the recycling center or other processor is found to be in violation of sections 14538(b) or 14539(b) of the Act. (7) Notwithstanding section 2000(a)(4), material disposed of pursuant to section 2410 shall be deemed canceled. (c) For material not physically delivered to a processor pursuant to this section and section 2430(a)(3) of these regulations for which the processor paid, or will pay, the refund value, the Division shall have the authority to inspect the load or loads of material, and examine the records pertaining to such loads, at the location of end use or any other location where the material was physically delivered. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14518, 14518.5, 14538, 14539, 14552.51, 14553, 14573 and 14573.5, Public Resources Code. s 2111. Mobile Buyback Pilot Study. s 2112. Load Inspection Requirements. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14538, 14539 and 14553, Public Resources Code. s 2115. Computation of Time and Weight. (a) Time shall be computed or determined in accordance with California Code of Civil Procedure section 12. (b) Weight shall be measured, recorded and reported in short tons, pounds and fractions thereof. All weighing in this state shall be done on a scale or other device approved, tested and sealed in accordance with division 5 of the Business and Professions Code (Weights and Measures) and any applicable regulations thereunder. (c) For redemption of empty beverage containers by count, weight shall be determined and noticed as provided in subchapter 12 of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14551(b) and 14552, Public Resources Code. s 2120. Dates. (a) The date of any sale or transfer of material shall be deemed to be the date of delivery to the person receiving it. (b) Reports, complaints, notices and other information submitted to the Division shall be deemed to be submitted on the date of the postmark or the date received by the Division, whichever is earlier. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14551(b) and 14552, Public Resources Code. s 2125. Inspection Authority. (a) An applicant, certified operator, or curbside program shall provide access to the operator's facility or program to staff authorized by the Division for any one or all of the following purposes: (1) To determine compliance with the Division's regulations and with the provisions of the Act, or (2) To determine the accuracy of the information provided in the application for certification, or (3) For the investigation of complaints related to compliance with the Division's regulations and with the provisions of the Act, or (4) To obtain allowable cost survey data required for the Division to carry out its responsibilities pursuant to section 14575 of the Act, or (5) To inspect all records, required by section 2420(h), upon which the scrap value surveys are based. (b) Failure to submit to inspections described in subsection (a) above shall result in either: (1) Denial of an application if said application is pending, or (2) Revocation of a certification, or registration, or (3) Suspension of a certification, or registration. (4) Imposition of civil penalties pursuant to Section 14591.1 of the Act. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14537, 14538, 14539, 14540, 14549.1 and 14575, Public Resources Code. s 2130. Hearings. (a) Notice shall be given to the operator of record pursuant to chapter 5 (Administrative Adjudication) of division 3 of title 2 of the Government Code, commencing with Section 11500, of the Division's intent to hold adjudication proceedings to consider any or all of the following: (1) Revocation of a certificate; (2) Suspension of a certificate; (3) Nonrenewal of a certificate; or (4) Imposition of civil penalties on the certificate holder. (b) Hearings concerning proceedings in (a) above shall be held in accordance with the provisions of chapter 5 (Administrative Adjudication) of division 3 of title 2 of the Government Code, commencing with Section 11500. (c) Upon receiving notification of the Division's decision denying a certification application or notification to revoke a certificate issued to a dropoff or collection program or community service program, the operator shall have the right to request a hearing with the Department of Conservation. (1) The operator shall submit directly to the director of the Department of Conservation, within ten (10) calendar days of receipt of the notification from the Division, a written request for a hearing. Such request shall include, at a minimum, all of the following: (A) The operator's name, mailing address, and daytime telephone number; and (B) The requested certification category, as defined in section 2000(a)(5) of these regulations, or current certification number; and (C) The facility name and street address, if applicable; and (D) The date on the notification from the Division and the stated reasons for denial or revocation; and (E) A clear and concise statement of the basis for objecting to denial of the certification application or revocation of the certificate. (2) The director of the Department of Conservation shall schedule the hearing within twenty (20) working days of receipt of the written request for a hearing. (3) The director shall make a determination to sustain or reverse the Division's denial of a certification application or revocation of a certificate issued to a dropoff or collection program or community service program based on the Division's preliminary review findings and any additional information submitted at the time of the hearing by the operator. (4) The operator shall be notified of the determination by the director in writing within seven (7) working days from the date the hearing is conducted. Note: Authority cited: Section 14536, Public Resources Code. Reference: Sections 14511.7, 14538, 14539, 14541 and 14591, Public Resources Code; and Sections 11500-11528, Government Code. s 2135. Unfair and Predatory Pricing. (a) Complaints submitted pursuant to Section 14588.2 of the Act shall be filed on the Predatory Pricing Complaint Form, DOR 51 (Rev. 01/02) and shall contain all of the following information: (1) The complainant's name, address, telephone number, facility or business name, and certification number. The complainant shall meet the requirements of Section 2000(a)(36.5) of these regulations. (2) The name and address and, if known, the telephone number, certification number, and the owner/representative of the supermarket site recycling center alleged to have engaged in unfair and predatory pricing (hereinafter "respondent"). (3) A summary of the facts and allegations which form the basis of the complaint, including, but not limited to, all of the following: (A) The date on which the alleged unfair and predatory pricing took place. (B) The type of beverage container(s) in question. (C) The amount paid for the beverage containers in question. (4) A statement declaring the truth of the information and allegations contained in the complaint and the complainant's dated signature, signed under penalty of perjury. (b) A complaint must be submitted within 60 days of the alleged occurrence that forms the basis of the complaint. (c) A complaint will be deemed "received" by the Division, within the meaning of Section 14588.2 of the Act, only if it is submitted on the form prescribed by the Division and is determined by the Division to be complete. (1) To be complete, a complaint shall contain all of the information required in subsection (a) above and shall comply with the requirements of Section 14588.2(a) of the Act. (2) Once a complaint is deemed received, the Division shall mail copies of the received complaint to the complainant and the respondent. Each copy shall be clearly marked with the date that the complaint was deemed received. (3) Upon notification by the Division that a complaint is incomplete pursuant to paragraph (c)(1) above, the complainant shall have ten calendar days in which to provide the information needed to complete the complaint. Any complaint that remains incomplete for more than ten calendar days after the complainant has been notified shall be rejected by the Division and may not be resubmitted by the complainant. (d) The subject of a complaint submitted pursuant to Section 14588.1 of the Act must be a supermarket site that receives handling fees. (1) A supermarket site is a "supermarket site that receives handling fees," as that term is used in Section 14588.1, if the Division determines that a handling fee payment was disbursed to the supermarket site within sixty days before the date of the alleged unfair and predatory pricing. (2) A compliant will be deficient on its face and rejected without further investigation, if the Division determines that the condition described in paragraph (d)(1) has not been satisfied. (e) Upon the Division's receipt of a completed complaint regarding a supermarket site that receives handling fees, the Division shall conduct an audit as required by Section 14588.2 of the Act. The Division may conduct field visits and inspect recycler records in conducting the audit. (1) The Division shall audit a three-day period, including the date of the alleged occurrence, the day before the alleged occurrence, and the day after the alleged occurrence. (A) No later than five days after being notified of the Division's audit, each recycling center subject to the audit shall provide the Division with the records necessary to complete the audit. The necessary records include, but are not limited to, receipts, logs, and daily summaries. The records may be submitted to the Division via mail or facsimile, or made available to Division staff conducting a field visit to the recycling center. (B) A recycling center's failure to provide timely or accurate information pursuant to paragraph (e)(1)(A) above is grounds for discipline pursuant to Sections 14591.1 and 14591.2 of the Act. (2) The Division shall use the data compiled pursuant to paragraph (e)(1)(A) to calculate the average scrap value paid per pound by specified recycling centers. (3) For purposes of this section, "average scrap value paid" is the per-pound average paid by all specified recycling centers over the three-day period in question, for the material or materials listed in the complaint, exclusive of the refund value. This is calculated by dividing the total amount paid for all audited transactions ($sum) less the total refund value paid for all audited transactions (CRV sum) by the total weight purchased for all audited transactions (#sum) as follows: $sum - CRV sum =average scrap value paid ---------------------------------------- # sum (4) Per Section 14588.1(b) of the Act, and for purposes of this section, "specified recycling centers" are those that did not receive handling fees in three or more of the 12 whole months immediately preceding the date of the alleged violation. (5) The audit will be limited to recycling centers located within either a five-mile or a ten-mile radius of the respondent as specified by Section 14588.1(a)(2) of the Act. (f) Upon completing the audit required in Section 14588.2 of the Act, the Director, or the Director's designee, shall determine whether there is probable cause to believe that the respondent has engaged in unfair and predatory pricing. (1) If the Director/designee determines that such probable cause exists, the Department shall convene an informal hearing pursuant to subsection (c) of Section 14588.2. The informal hearing shall be conducted pursuant to Chapter 4.5 (commencing with Section 11445.10) of Part 1 of Division 3 of Title 2 of the Government Code. (2) If the Director/designee determines that probable cause does not exist, the Division shall notify both the complainant and the respondent of this finding and the complaint shall be dismissed pursuant to paragraph (c)(5)(A) of Section 14588.2 of the Act. The Division shall also resume payment of handling fees to the respondent, including payment of handling fees withheld pending resolution of the pending complaint, if the respondent is otherwise eligible to receive those handling fees. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14588, 14588.1, 14588.2, 14591.1 and 14591.2, Public Resources Code.Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14588, 14588.1, 14588.2, 14591.1 and 14591.2, Public Resources Code. s 2140. Unfair and Predatory Pricing Determination Hearing. Note: Authority cited: Section 14536, Public Resources Code. Reference: Section 14585(f), Public Resources Code, and Section 11505(c), Government Code. s 2200. Labeling Required. (a) A beverage manufacturer shall indicate on every nonrefillable beverage container sold or offered for sale in the state by the beverage manufacturer the message as required in Section 14561 of the Act. (1) All nonrefillable beverage containers sold, on and after the effective date of inclusion under the Act, by any person to a distributor, dealer, or consumer shall be labeled in accordance with this section. (b) Beverage containers shall be clearly, prominently, and indelibly marked as indicated in subsection (a) by painting, printing, scratch embossing, raised letter embossing, or permanent ink jetting, in the specific manner indicated in paragraphs (1), (2), (3) or (4): (1) Metal containers, excluding metal bottles, shall be marked on the top end of the container in minimum lettering size at least 3/16 inch in height. Metal containers, excluding metal bottles, with a top lid of two inches or less in diameter shall have a minimum lettering size of at least 1/8 inch in height. (A) Scratch embossed lettering shall be of a minimum width of 0.004 inch of disturbed surface metal. (2) Glass containers and plastic containers shall be free of notations resembling "No Deposit-No Return," and shall be marked either: (A) Along the bottom edge of the container body label in minimum lettering size at least 3/16 inch in height; (B) On or in a secondary label in minimum lettering size at least 3/16 inch in height; or (C) On a container body label or secondary label with contrasting colors with legible lettering in minimum lettering size at least 1/8 inch in height. Contrasting colors shall direct the reader to the message required in subsection (a). (3) Plastic portion controlled cups that have peelable, heat sealed lids that are not resealable, shall be marked in a minimum lettering size of at least 1/8 inch in height on either the side of the container only, or on the lid and bottom of the container. (4) Metal bottles shall be marked on the side of the bottle in minimum lettering size at least 3/16 inch in height. Note: Authority: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14504(c), 14561, 14530.5 and 14536, Public Resources Code.Authority: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14504(c), 14561, 14530.5 and 14536, Public Resources Code. s 2220. Applicability. In addition to the general requirements of subchapter 2 of these regulations, container manufacturers in this state shall comply with the provisions of this article. Persons other than container manufacturers in this state need not comply with this article. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5 and 14536, Public Resources Code. s 2225. Recordkeeping. A container manufacturer shall maintain records of any recycling, processing, or other transfer of containers rejected and any payments therefor. These records shall include receipts from the recycling center, processor, or other recipient. Such receipts shall be signed by the recycling center, processor, or other recipient and shall state the weight by material type of rejected containers and any payments made or credit granted therefor. Such records shall be maintained in accordance with the general requirements set forth in section 2085 of subchapter 2 of these regulations. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14541(d), 14552 and 14575, Public Resources Code. s 2230. Applicability. (a) Except where other persons are responsible as provided in subsections (b) and (c), in addition to the general requirements of subchapter 2 of these regulations, a beverage manufacturer shall be responsible for the recordkeeping, reporting, and processing fee payments of this article. (b) Out-of-state vendors, holding a certificate of compliance with the Department of Alcoholic Beverage Control, of beer and other malt beverages located outside of California which sell or transfer filled beverage containers to California shall, pursuant to Public Resources Code Section 14575(g)(2), be deemed to be the beverage manufacturer for payment of processing fees and shall be responsible for the recordkeeping, reporting, and payment responsibilities described in sections 2235(d), 2240, and 2245. (c) Beverage manufacturers shall notify the Division in writing if another entity has agreed to report and make payments on the beverage manufacturer's behalf. The beverage manufacturer shall submit to the Division a copy of the written agreement between the beverage manufacturer and the entity, which has agreed to report and make payments on the beverage manufacturer's behalf. A copy of the written agreement shall be submitted to the Division within 10 working days of the initial agreement and any subsequent changes or termination of the agreement. The agreement shall include but is not limited to: (1) The name of each company involved in the agreement. (2) The beverage manufacturer identification number of each company. (3) The business and mailing address of each company. (4) A statement signed and dated by an authorized representative from each company indicating one company has agreed to report and pay for another company. (d) Nothing in this article shall be construed to require the Division to transfer any of the responsibilities set forth in this article, nor shall the Division be prohibited from holding the in-state beverage manufacturer, distributor, dealer, and/or consumer liable for any due and unpaid processing fees. Note: Authority cited: Sections 14506, 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5, 14536 and 14575(g), Public Resources Code. s 2235. Recordkeeping. A beverage manufacturer shall maintain the following records in accordance with the general requirements set forth in section 2085 of subchapter 2 of these regulations. (a) Transactions with a Container Manufacturer. A beverage manufacturer shall maintain the following records evidencing the receipt of beverage containers or components thereof. Such records shall include all bills of lading, other shipping documents, and the following information: (1) Date of receipt of shipment; (2) Quantity, material type, size, and component type, if applicable, of beverage containers or components in shipment; (3) Full name and address of shipper; and (4) Cancelled checks or other proof of payment (receipts), invoices, and statements regarding container manufacturers' payment or credit for processing fees pursuant to the Act. (b) Rejected Containers. A beverage manufacturer shall maintain records of any recycling, processing, or other disposition of rejected containers and any payments therefor. These records shall include receipts or statements signed by the recycling center, processor, or other recipient. Such receipts or statements shall state the weight by material type of rejected containers and any payment made or credit granted therefor. (c) Sales and Transfers of Beverage Containers by a Beverage Manufacturer. A beverage manufacturer shall maintain records, by individual sale or transfer, of all sales or transfers of beverage containers to distributors, dealers, or consumers, and any payments made therefor. The records shall include all of the following: (1) The number, by material type, of beverage containers sold or transferred to dealers, distributors, or consumers; (2) The date of the sale or transfer; (3) The full name and address of the buyer or other transferee, and shipping name and address if different; and (4) Proof of payment for the beverage containers sold or transferred, such as invoices and statements. (d) Processing Fee Report Records. A beverage manufacturer shall retain a copy of the Beverage Manufacturer Report, DR-4 (1/00) submitted to the Division pursuant to section 2240 of this subchapter, and proof of payment and receipts for processing fee payments made to the Division. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14537, 14541(c) and (d), 14552 and 14575, Public Resources Code. s 2240. Reporting. For each month during which a processing fee applies to any beverage container material type sold or transferred by a beverage manufacturer, the appropriate beverage manufacturer, as determined by section 2230, shall prepare and submit to the Division the Beverage Manufacturer Report, DR-4 (1/00). The DR-4 (1/00) shall contain the following information in accordance with the general requirements for reporting as contained in section 2090 of these regulations. (a) Sales and Transfers of Beverage Containers Subject to a Processing Fee. Each report shall contain all of the following information: (1) The beverage manufacturer's name, address, manufacturer identification number, contact person, and telephone number of contact person; (2) The reporting period; (3) The number of beverage containers, by material type, sold or transferred in or into this state during the reporting period which are subject to a processing fee; (4) The amount of the processing fee per beverage container and material type ( "unit fee"); (5) The amount of the processing fee payment for each material type, calculated by multiplying the beverage container count for each material type by the applicable processing fee per container; (6) The amount of the total processing fee payment due, which is equal to the sum of the processing fee payments by material type pursuant to subsection (5); and (7) The signature of an authorized representative and date signed. (b) The DR-4 (1/00) shall be submitted no later than the tenth day of the second month following the month of sales. For example, sales of January 2000 shall be reported on March 10th, 2000, sales of February 2000 shall be reported on April 10th, 2000, sales of March 2000 shall be reported on May 10th, 2000, etc. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14552 and 14575, Public Resources Code. s 2245. Payments. Each beverage manufacturer, except as provided in section 2230(b), shall pay to the Division all applicable processing fees for the beverage containers that the beverage manufacturer sells or transfers to the following entities located in California: distributors, dealers, or consumers. (a) Timing of payment. The payment is due on the same date as the report. (b) Calculation of payment. A beverage manufacturer shall pay to the Division for each month the processing fee reported for that month pursuant to section 2240(a). (c) Documentation. A beverage manufacturer shall submit a report as required by section 2240 with each payment. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14506, 14530.5, and 14575(h), Public Resources Code. s 2300. Applicability. In addition to the general requirements of subchapter 2 of these regulations, distributors shall comply with the provisions of this article. Persons other than distributors need not comply with this article. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5 and 14536, Public Resources Code. s 2305. Recordkeeping. A distributor shall maintain the following records by individual sale or transfer and in accordance with the general requirements set forth in section 2085 of subchapter 2 of these regulations. (a) Receipt of Beverage Containers. A distributor shall maintain records, by individual sale or transfer, of all beverage containers received, including all containers which bear the message as required in Section 14561 of the Act. The records shall contain all of the following information: (1) The quantity received by material type, of beverage containers, including all containers which bear the message as required in Section 14561 of the Act; (2) The full name and address of the beverage manufacturer or other originating person; and (3) The date the beverage containers, including all containers which bear the message as required in Section 14561 of the Act, were received by the distributor. (b) Sale or Transfer of Beverage Containers. A distributor shall maintain records, by individual sale or transfer, of all beverage containers, including all containers which bear the message as required in Section 14561 of the Act on all CRV beverage containers, and refillable beverage containers sold or transferred to other distributors, dealers, or consumers. The records shall contain all of the following information: (1) The quantity by material type of all beverage containers, including all containers which bear the message as required in Section 14561 of the Act, and refillable beverage containers; (2) The full name and address (and the shipping or destination name and address, if different) of the dealer, consumer, or other distributor to whom the beverage containers, including refillable beverage containers and containers which bear the message as required in Section 14561 of the Act, were sold or transferred; and (3) The date(s) the beverage containers, including all the containers which bear the message as required in Section 14561 of the Act, and refillable beverage containers, were sold or transferred. (c) The Distributor Report, DR-3, (1/04) and Payments to the Division. A distributor shall maintain the DR-3 (1/04) and payment records prepared pursuant to sections 2310 and 2320 of this subchapter. (d) Rejected Containers. A distributor shall maintain records of any recycling, processing, or other disposition of rejected containers and any payments therefor. These records shall include receipts or statements signed by the recycling center, processor, or other recipient. Such receipts shall state the weight by material type of the rejected containers and any payment made or credit granted therefor. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5, 14537, 14550(b) and (c), 14561 and 14572.5, Public Resources Code. s 2310. Reporting. (a) A distributor shall prepare and submit to the Division the Distributor Report, DR-3 (1/04) in accordance with the general requirements for reporting contained in section 2090 of these regulations. (1) The DR-3 (1/04) for sales or transfers of beverage containers shall be submitted no later than the last day of the third month following the month of sales. For example, sales of January 2000 shall be reported on April 30, 2000; sales of February 2000 shall be reported on May 31, 2000; sales of March 2000 shall be reported on June 30, 2000; etc. (2) The DR-3 (1/04) shall contain all of the following information: (A) The distributor's name, address, contact person, and telephone number of the contact person; (B) The distributor's assigned identification number, specific to the beverage type reported. A report of sales or transfers of beer and malt beverage containers shall include an assigned identification number with the prefix "DB". A report of sales or transfers of beverage containers other than beer and malt beverage containers shall include an assigned identification number with the prefix "DS". A separate DR-3 (1/04) shall be submitted for each "DB" and "DS" identification number; (C) The reporting period; (D) The total number and total empty weight of beverage containers, by material type and size, including all containers which bear the message as required in Section 14561 of the Act, sold or transferred; (E) The total number of beverage containers identified in subparagraph (C); (F) Redemption payment and administrative fee: 1. The redemption payment for each material type by size, and 2. The total redemption payment, 3. The administrative fee deducted, and 4. The total due to the Division; (G) The total number and total empty weight of refillable beverage containers sold, transferred, and returned to the distributor. Each of these items shall be reported by material type; and (H) The signature of an authorized representative and date signed. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5, 14550(b) and (c), 14560, 14561 and 14574, Public Resources Code. s 2315. Reporting Additional Information. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5, 14560, 14561 and 14571.9, Public Resources Code. s 2320. Payments. (a) The distributor shall pay to the Division the total redemption payment for all beverage containers, including all containers which bear the message as required in Section 14561 of the Act, sold or transferred to dealers or consumers, less an administrative fee equal to one percent (1%) of the calculated redemption payment. Notwithstanding any other provisions of this subchapter, this administrative fee shall not be deducted from the calculated redemption payment, if the Division calculates the redemption payment owed by the distributor to the Division. (b) Redemption Payments. The distributor shall compute the total redemption payment, by material type, by multiplying the number of beverage containers, including all containers which bear the message as required in Section 14561 of the Act, reported pursuant to section 2310(a), by the currently effective redemption payment per container for that material type. The currently effective redemption payment shall also be applicable for all containers which bear the message as required in Section 14561 of the Act. (c) The redemption payment per container is determined by the Division pursuant to section 14560 of the Act and section 2900(b) of subchapter 12 of these regulations. (d) The sum of the individual redemption payments by material type computed pursuant to subsection (b), shall equal the total redemption payment for the reporting period. (e) Administrative Fee. The administrative fee equals one percent (1%) of the total redemption payment computed pursuant to subsection (b). (f) Total Payment Due. The total payment due to the Division for each reporting period is calculated by subtracting the administrative fee computed pursuant to subsection (e) from the total redemption payment computed pursuant to subsection (b). The distributor shall submit to the Division the total payment due, accompanied by the reports required pursuant to section 2310. (g) Recycling Center Handling Fee. The distributor shall negotiate a handling fee with each recycling center which returns or causes to be returned empty refillable beer or other refillable malt containers. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14561, 14572.5 and 14574, Public Resources Code. s 2400. Operation Standards. (a) All certified processors shall operate in accordance with all of the following requirements: (1) Processors certified by the Division shall begin operation within sixty (60) calendar days of approval of the certification. Failure to begin operation within sixty (60) calendar days shall result in invalidation of the certification by the Division. (2) The processor shall accept one or more type(s) of redeemable beverage container(s). (3) Certified processors shall redeem empty beverage containers from any certified operators of recycling centers, dropoff or collection programs, or community service programs and operators of curbside programs which have been issued an identification number in accordance with these regulations. Payments shall be made in accordance with section 2430 of these regulations. (4) Certified processors shall make payments and invoice the Division within the time periods specified in article 3 of this subchapter. (5) Certified processors shall cancel redeemable beverage containers in any one or more of the manners prescribed in section 2000(a)(4) of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14539, 14573, 14573.5 and 14573.6, Public Resources Code. s 2401. Load Inspection Requirements. (a) Certified processors shall inspect each load of containers, subject to the Act, delivered to the processor, for which refund value is claimed, to determine whether the load is eligible for any refund value and, if so, to determine whether the load is segregated or commingled, as follows: (1) For any load delivered to a processor from a dropoff or collection program, community service program, curbside program or recycling center, each processor taking delivery of the material shall visually inspect each load of material by monitoring the unloading and/or conveyor process to determine eligibility and whether the load is segregated or commingled. (b) In addition to the requirements of section 2110 of these regulations, a load of aluminum material shall be deemed not eligible for any refund value if there are pieces of broken, densified bales or biscuits of aluminum beverage containers within the load. This does not include cans which have merely been flattened. A load of plastic material shall be deemed not eligible for any refund value, if pieces of bales of plastic are found in the load. (c) Once eligibility is determined, payment shall be calculated pursuant to section 2430 of these regulations. (d) All out-of-state material, whether labeled with the message required in Section 14561 of the Act or not, and all rejected and line breakage containers are not eligible for any refund value payments. (e) Notwithstanding Section 2530(b)(1) of these regulations, a certified processor shall not inspect, weigh or receive a load of material subject to the Act from a recycling center unless and until the shipper's section of the shipping report is completed and accompanies the load of material delivered to the certified processor's site. (f) All rejected, line breakage or out-of-state containers in the load, whether labeled or not with the message required in Section 1451 of the Act, must be excluded from the received weight of the load. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14539 and 14553, Public Resources Code. s 2405. Notification Requirements. (a) Notwithstanding the requirements of section 2040 of these regulations, certified processors shall notify the Division in writing ten (10) calendar days prior to any of the following events: (1) Change of name under which the processing facility is doing business, (2) Change of business or mailing address or phone number of operator, (3) Separation from parent company, if applicable, (4) Merger with another company, (5) Dissolution of the organization type identified in the applicationfor certification, (6) Change in the type of redeemable beverage containers accepted, (7) A change in the method a processor is using to cancel containers, (8) Any change in a processor's status as a beneficiator as defined insection 2000(a)(3.1) of these regulations and Section 14503.6 of the Act. (9) A change in the agent for service of process, if applicable, (10) Any change in hours of operation, as presented in the applicationfor certification or subsequent notification to the Division, during whichcertified operators and curbside programs can deliver beverage containers to the processing facility. Processors who do not maintain regularhours are exempt from this subsection, and nothing in this subsectionshall result in processors being subject to the fine and penalty provisionsof the Act, (11) A change in the type of organization, (12) Change in the name of the contact person for the operator, (13) Change in corporate officers, if applicable, (14) Change in the name of organization, (15) Any change in business ownership. (b) A processor who intends to be decertified shall submit a written notification to the Division, which includes the proposed effective date. Note: Authority cited: Section 14536(b), Public Resources Code. Reference:Sections 14503.6, 14539 and 14575, Public Resources Code. s 2410. Notice of Disposal. (a) Except as provided at Sections 14552.5 and 14552.51 of the Act, no processor shall dispose, have disposed, or authorize a recycling center operator to dispose of any empty beverage containers without written notice submitted to the Division at least ten days prior to disposal. For purposes of this section, disposal shall include burning, landfilling, or any other method of handling or processing material that is not consistent with recycling. (1) Such notice shall clearly identify the place of disposal. (2) The notice shall state the weight of the material, by material type, to be disposed. (3) The notice shall be signed by an authorized representative of the processor and state the date and place of the signing. (4) The signature block shall state that the information in the notice is correct to the best knowledge of the person signing the notice. (5) For a specific load, or loads, authorization to dispose granted to a recycling center operator shall satisfy the requirement for authorization to cancel, pursuant to section 2110 of these regulations. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14501(h), 14518, 14519, 14538, 14539, 14552.5 and 14552.51, Public Resources Code. s 2415. Applicability. In addition to the general accounting requirements of subchapter 2, processors shall comply with the accounting and reporting provisions of this article. Persons other than processors need not comply with this article. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5 and 14536, Public Resources Code. s 2420. Recordkeeping. Processors shall maintain the following records in accordance with the general requirements set forth in section 2085 of these regulations. (a) Shipping reports. Processors shall obtain shipping reports from each recycling center and also prepare shipping reports for material received from all other persons. Processors shall retain copies of all shipping reports. (b) Weight tickets. Processors shall prepare and retain weight tickets indicating material and weight of individual loads of beverage containers by material type received from recycling centers and other persons. A copy of any weight ticket prepared pursuant to this section shall be provided to the shipper unless the receiving processor and the shipper are the same person and located at the same physical address or location. (c) Processor reports to the Division. Processors shall retain copies of reports to the Division pursuant to section 2425 of these regulations. (d) Verification of cancellation. Processors shall retain proof that the processor canceled or had canceled in accordance with section 2000(a)(4) of these regulations all empty beverage containers received. The verification shall include: (1) For shipments by sea, the proof of cancellation by export from the state shall be the on-board bill of lading. (2) For other shipments out of the State or to a location of end use, the proof of cancellation shall include a receipt issued by the person receiving the shipment and any applicable bill of lading. (3) For other forms of cancellation defined in section 2000(a)(4) of these regulations, proof shall be a certification prepared in accordance with subsection 2090(d) of these regulations and signed by the person performing the cancellation. The certification shall identify the cancelled materials, the date of cancellation, and the method of cancellation, pursuant to subsections 2000(a)(4)(A), (B), (C), (D), (E), or (F) of these regulations. (e) Records of processor to processor transactions. Processors shall prepare and retain a record of all exchanges of materials subject to the Act. Such records shall identify: (1) The shipping processor and receiving processor(s): (2) The date of the shipment, material type, and the weight of the material; and (3) The amount of mixed-color glass collected by curbside program(s). (f) Notices of Disposal. Processors shall retain copies of written notices of disposal sent to the Division pursuant to section 2410 of these regulations. (g) The processor shall prepare and retain a receipt setting forth the weight and type of material delivered to the processor and payment made or credit granted for all scrap transactions. In addition, the receipt shall indicate if the load consisted of rejected containers, line-breakage containers, or out-of-state beverage containers. (h) Records of scrap value survey data. Processors shall maintain records to support all of the information provided to the Division on the Scrap Value Purchases Survey Form DOR - SV (10/00) required by Section 2425(f) of this subchapter. Note: Authority cited: Sections 14530.5, 14536 and 14536.1, Public Resources Code. Reference: Sections 14504, 14537, 14539, 14550, 14552 and 14575, Public Resources Code. s 2425. Reporting. The processor initially receiving material from recycling centers, curbside programs, dropoff or collection programs, or community service programs shall prepare and submit to the Division the report described in this section. (a) The report shall be submitted monthly or, at the option of the processor, up to eight times per calendar month. The reporting periods for the month must cover from the beginning to the end of the calendar month and not overlap any days. (1) All reports shall be submitted no later than the 10th day after the last day of the reporting period. (2) Processors shall be allowed to submit no more than four supplemental processor invoices per material type, per original processor invoice, provided each is submitted no later than forty-five (45) days from the following events: (A) The due date of the original processor invoice that the supplemental processor invoice covers, if it is for new shipping reports not previously submitted with the original processor invoice being supplemented; or (B) The date appearing on the Notice of Denial (NOD) if the reports were previously denied or if the reports are a combination of new shipping reports not previously submitted with the original processor invoice and previously denied shipping reports. (3) Processors shall be allowed to submit no more than two amended processor invoices per material type, per original processor invoice, provided each is submitted no later than ninety (90) days after the due date of the original processor invoice being amended. (4) Nothing herein shall limit the Division's authority to accept an amended processor invoice which will result in money being owed to the State of California. (b) The report shall contain the following information, by material type, in addition to the general requirements for reporting contained in section 2090 of these regulations. (c) A summary of the processor's transactions during the period covered by the report, including all of the following information: (1) The total weight of all material, including empty beverage containers received by the processor; and (2) The total weight of empty beverage containers received, and the refund value, and applicable administrative and processing payments paid for such material by material type; and (3) The computation and amount of the total processing payment due for the reporting period; and (4) The computation and amount of the total administrative fee due for the period; and (5) Total payments requested from the Division for the period. These payments are computed as the sum of the total reported refund value, the administrative fees due, and the processing payments due; and (6) A statement indicating whether the materials which are the subject matter of the report are "for recycling" or "not for recycling." (d) Each report shall also include copies of the shipping reports for the period of the report. The total number of shipping reports included shall be specified. (e) Each report shall also contain a shipping report prepared by the processor for each shipment of materials received from any curbside program, dropoff or collection program, or community service program, and a shipping report for each shipment of materials received from a recycling center that has been prepared by the recycling center and completed by the processor. Each report shall include all of the following information: (1) The name, address, and identification number or certification number, of the entity shipping the material to the processor, as well as the name and telephone number of a contact person; and (2) The name and the certification number of the processor receiving the material; and (3) The date the material was received and the material type covered by the report; and (4) The received weight, excluding line breakage, rejected containers, and out-of-state containers; and (5) The redemption weight; and, for glass collected by curbside programs that meets the requirements of Section 2850(e), the sorting facility shall be identified as either the Shipper (S), or the Receiver (R) in the QGIP (Quality Glass Incentive Payment) Box. (6) The refund value paid; and (7) The total administrative fees paid, when applicable; and (8) The processing payments paid; and (9) The printed name, title and signature of the shipper or an authorized representative of the shipper and date signed; and (10) The weight ticket number; and (11) The shrinkage deduction taken, if any; and (12) The printed name, title and signature of an authorized representative of the processor and the date signed. (f) Additionally each certified processor shall submit a Scrap Value Purchases Survey Form DOR - SV (10/00) report for purchases of beverage container material types every month. The DOR - SV (10/00) Scrap Value Purchases Survey Form shall be submitted to the Division no later than the 10th day of the month following the month of the report. The DOR - SV (10/00) Scrap Value Purchases Survey Form must be submitted regardless of whether or not purchases occurred in the applicable time period. In addition to the general requirements for reporting contained in section 2090 of these regulations, the DOR - SV (10/00) Scrap Value Purchases Survey Form shall contain all of the following information, if applicable: (1) The processor's name, address and certification number, physical address, including city, phone number and date prepared; and, (2) The month covered by the report; and (3) The total weight, in tons, of each beverage container material type purchased, even if zero, from nonaffiliated sellers, excluding beverage container material types received in a form mixed with other beverage material types or material types not covered by the Act, in each of the following categories: certified recycling centers, dropoff or collection programs, community service programs, processors, registered curbside programs, any certified and non-certified entities; in the case of glass, beneficiating and nonbeneficiating processors shall be reported separately; and (4) The total weight, in tons, of each beverage container material type received from affiliates and/or subsidiaries. Beverage container material that processors receive in a form mixed with other beverage container material types and/or material types not covered by the Act, whether from affiliates or nonaffiliates, shall be reported with the affiliated transaction after the material has been sorted and the received weight determined. (5) The total net payment for the reported total monthly weight, in tons, for each beverage container material type purchased, by the reporting processor from nonaffiliated sellers in each of the categories listed in item 3 above; and (6) For glass only, the monthly total weight, in tons, of purchased beverage container material types by color; and the monthly total weight of color sorted or mixed glass purchased from any non-affiliated beneficiating or nonbeneficiating processor; and (7) For plastic, the monthly total weight, in tons, of purchased beverage container material types, by each plastic resin code type (1 through 7); and (8) The printed name and signature of an authorized representative of the reporting processor. (g) Processors purchasing materials directly from more than one curbside program, dropoff or collection program, or community service program may apply to the Division to request the use of alternative methods for preparing the corresponding shipping reports. The Division shall consider each proposed alternative method and issue a written approval or denial within forty-five (45) calendar days. (1) In order for alternative methods to be accepted, they must be based on reasonable allocation methods. (2) An application for an alternative allocation method shall be denied if: (A) The received weight of the material purchased by an entity from the processor is not used to calculate allocations to the curbside programs, dropoff or collection programs, or community service programs; or (B) The processor does not ensure that the weight of rejected containers, line breakage, and out-of-state containers is not included in the allocated weight (this does not require a physical separation); or (C) The processor does not account for each incoming load of material; or (D) The processor does not inspect incoming material to verify that it is eligible for refund value payments, as specified in section 2401. (3) Processors may file a formal appeal by writing the Assistant Director for Recycling within thirty (30) calendar days after the receipt of a notice denying an application requesting an alternative method for shipping report preparation. Appeals submitted after this time period shall be rejected. All written appeals shall include: (A) A copy of the notice denying the allocation method; (B) A detailed explanation of why the determination was in error; and, (C) Any other documentation that supports the appeal. (4) A written decision on the appeal shall be sent to the processor within seven (7) calendar days of the receipt of the appeal. (h) Processors purchasing commingled glass from a certified dropoff or collection program including a "waste reduction facility", a certified community service program, or a registered curbside program, shall visually inspect every load delivered to determine eligibility for refund value and the level of contamination in the load. If a load presented to a processor is eligible for refund value and has residual or other contamination, the processor shall reduce the load for shrinkage. If a load has a residual or other contamination level of greater than 10% by weight, and the load is otherwise eligible for refund value, the receiving processor shall request an alternative method of preparing the shipping report for payment. The Division shall consider each proposed alternative method and issue a written approval or denial within forty-five (45) calendar days. (1) In order for the alternative method to be accepted, it must: (A) Be based on a recycled glass cleaning process that produces cullet which meets the American Society for Testing and Materials standard specification for waste glass as a raw material for the manufacture of glass as specified in Section 2000(a)(3.1)(A). (B) Clearly state: 1. That the received weight, for beverage container redemption purposes, shall be determined from the cullet produced in (A) above. 2. That the redemption weight shall be determined using the applicable commingled rates and the received weight from 1. 3. That, if a sampling procedure will be used to determine the received weight of contaminated loads from each entity, the sampling procedure must be included with the request for an alternative method of preparing the shipping report. (2) An application for an alternate method will be denied if: (A) The total weight of all contaminated materials received at the facility is not recorded. (B) All material received at this facility is not inspected for the presence of out-of-state, rejected, or line breakage containers and this weight excluded from shipping reports. (C) Records accurately supporting both cullet sold and residual or contaminated material disposed of or used for an alternative market is not made available to Department staff upon request. (D) The method does not clearly account for the weight of empty beverage containers for each certified dropoff or collection program including a "waste reduction facility", certified community service program, or registered curbside program from which the processor receives this material. (3) When used in this subsection, "waste reduction facility" means a dropoff or collection program certified by the Department, which separates beverage container material types from mixed waste. Note: Authority cited: Sections 14530.5, 14536 and 14536.1, Public Resources Code. Reference: Sections 14504, 14515.5, 14518.5, 14519.5, 14537, 14539, 14549.1, 14550, 14552, 14552.51, 14575 and 18015, Public Resources Code. s 2430. Payments. (a) Payments to recycling centers. (1) Substantiation of payment. The processor shall weigh, and pursuant to section 2401, inspect all loads received from recycling centers before completing the receiver's section of the shipping reports. The processor shall do all of the following for materials received from recycling centers: (A) Verify all calculations are accurate and that all other pieces of information shown on the shipping report, including signatures, are filled in. (B) Record the received weight, excluding the weight of rejected containers, line breakage and out-of-state containers provided by the shipping recycler, onto the shipping report. (C) Sign and date the shipping report to verify the receipt of the materials as indicated on the report. (D) Calculate the refund value payment. If the redemption weight does not exceed the received weight by more than 2.5 percent, then the processor shall reimburse the recycler the refund value claimed. Otherwise, the processor shall multiply the received weight by the segregated rate per pound and record that amount as the refund value paid. (E) Calculate the processing payment. If the redemption weight does not exceed the received weight by more than 2.5 percent, then the processor shall multiply the redemption weight claimed by the processing payment in effect on the date the material was received and pay that amount. Otherwise, the processor shall multiply the received weight by the processing payment in effect on the date the material was received and pay that amount. (F) Calculate the administrative fee. The processor shall multiply the refund value paid from (D) by the administrative fee rate in effect on the date the material was received and pay that amount. (2) In addition to the provisions of this section, processors shall not make any payments pursuant to the Act for materials which have not been delivered to the processor unless the following conditions are met: (A) The shipper is a certified recycling center to which the processor has given authorization to cancel pursuant to section 2110 of these regulations; and (B) The delivery to a location of end use and cancellation are verified in accordance with section 2420(d) of these regulations. (3) In the case of processors that do not take delivery of the material, the weight shall mean the weight received by the entity to whom the material is physically delivered. (4) In no case shall a processor make any payments pursuant to the Act for any material which the processor has rejected for any reason. (b) Payments to curbside programs. Processors shall pay the refund value, administrative fees and any applicable processing payments for materials delivered to the processor from curbside programs. Processors shall adjust the refund value rate to account for shrinkage in the same manner as set forth in subsection 2535(e) of these regulations. (1) Substantiation of payment. The processor shall compute the refund value, administrative fees and applicable processing payments based upon the materials delivered on the shipping report prepared pursuant to subsection 2425(c) of these regulations. The processor shall provide a duplicate copy of the shipping report to the shipper. Notwithstanding any other provision of this subchapter, curbside programs may not be paid at more than the applicable statewide average commingled rate, or the Division's approved individual commingled rate. (2) Calculation of payment and fee. (A) The processor shall pay based on the received weight of the material, excluded the weight of rejected, line breakage and out-of-state containers, multiplied by: 1. the statewide commingled rate, or the Division's approved individual commingled rate in effect on the date received; and 2. the per pound processing payment in effect on the date received, when applicable. (B) In addition, administrative fees shall be calculated as three-fourths of one percent (3/4%) of the total refund value. (c) Payments to dropoff or collection programs and community service programs. Processors shall adjust the refund value rate to account for shrinkage in the same manner as set forth in subsection 2535(e) of subchapter 6 these regulations. Notwithstanding any other provision of this subchapter, dropoff or collection, and community service programs may not be paid at more than the applicable statewide average commingled rate, or the Division's approved individual commingled rate. (1) Substantiation of payment. Based upon materials received, the processor shall prepare a shipping report which states the refund value and applicable processing payments paid. The shipping report shall be prepared pursuant to subsection 2425(c) of these regulations. The processor shall provide a copy of the shipping report to the shipper. (2) Calculation of payment and fee. (A) The processor shall pay based on the received weight of the material, excluding the weight of rejected, line breakage and out-of-state containers, multiplied by: 1. the statewide commingled rate, or the Division's approved individual commingled rate in effect on the date received; and 2. the per pound processing payment in effect on the date received, when applicable. (d) Payments for canceled material. The authorizing processor shall make payment in accordance with Section 14573.5 of the Act, to recycling centers for canceled material provided the material is shipped to the authorizing processor or to a location designated by the authorizing processor. For such transactions, program payments will be issued by the Division to processors issuing the written authorization to cancel. Program payments will not be issued by the Division to processors for loads for which they have received authorization to cancel. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14518.5, 14539, 14552(a), 14572 and 14573.5, Public Resources Code. s 2500. Operation Standards. (a) With the exception of recycling centers which meet the criteria for grandfathering, all certified recycling centers shall operate in accordance with all of the following requirements: (1) Recycling centers certified by the Division shall begin operation within sixty (60) calendar days of approval of the certification. Failure to begin operating within sixty (60) calendar days shall result in invalidation of the certification by the Division. (2) The recycling center shall accept from customers all of the following: (A) All types of redeemable beverage containers; and (B) With the exception of reverse vending machines, refillable beer and malt beverage containers. (3) The recycling center shall make all payments in accordance with section 2535 of these regulations. (4) Unless an exception is provided for elsewhere in this Chapter, each certified recycling center shall be open for business during the following hours: (A) At least thirty (30) hours per week, and (B) At least five (5) hours per week shall be other than 9:00 a.m. to 5:00 p.m. on Monday through Friday; and (C) Up to fifteen (15) hours each week shall be other than 9:00 a.m. to 5:00 p.m. on Monday through Friday if the Division, subsequent to a public hearing, determines that it is necessary to further the recycling goals specified in Section 14501 of the Act. In making its determination, the Division shall consider, but not be limited to, the following: 1. Convenience to the public, 2. Alternative recycling opportunities available to the public, and 3. If the Division has received three or more complaints against the certified recycling center regarding its operating hours outside of 9:00 a.m. to 5:00 p.m., Monday through Friday. (b) A recycling center which is staffed and is not a reverse vending machine shall have an employee present during its posted hours and shall display a sign having a minimum size of two feet by two feet (576 square inches) informing the public that the recycling center is open for business. Where local zoning or ordinance restricts the size of the sign to less than two feet by two feet, the sign shall be the maximum size allowable. Where the physical location of the posted sign restricts the size of the sign, a sign varying from the specifications contained in this section may be posted if requested in writing and approved in writing by the Division. The sign shall contain, at a minimum, the word "OPEN" in lettering at least 10 inches in height. (1) If the recycling center consists of dropoff receptacles with refund value payment occurring elsewhere on the property, the operator of the recycling center shall take the following actions: (A) A sign shall be placed on or at the front of the receptacles with lettering of at least 3/8 inch in height which informs the customer that all types of empty beverage containers will be accepted and redeemed at all open check-out stands, or exactly where on the property the customer may redeem the beverage containers. (B) A person shall be present during the hours posted at the recycling center to inspect the empty beverage containers pursuant to Article 3 of this subchapter and pay customers the refund value. (C) A sign shall be posted during the hours open for business at the designated area where the public may redeem beverage containers. The sign shall contain, at a minimum, the words "OPEN" and "RECYCLING CENTER." The word "OPEN" shall consist of lettering at least 10 inches in height. The words "RECYCLING CENTER" shall be on a separate line and consist of lettering at least 3 1/2 inches in height. (c) An operator of a recycling center who does not accept all types of redeemable beverage containers may continue to do so and shall be certified as a recycling center, provided all of the following conditions are met: (1) The recycling center was operating in the same location on January 1, 1986, or if it is a reverse vending machine, the machine was operational on January 1, 1986; (2) The recycling center did not accept all types of redeemable beverage containers at the same location as of January 1, 1986; (3) The recycling center continues to redeem, at a minimum, those beverage containers it accepted at the same location as of January 1, 1986; and (d) A recycling center which meets the criteria to be grandfathered shall make payments in accordance with section 2535 of these regulations. (e) Each certified recycling center which does not utilize a reverse vending machine shall post the following near the certification sign provided by the Division and in a conspicuous location which can be easily seen by the public: (1) A legible sign indicating its hours of operation; and (2) A refund price sign indicating the prices paid by weight or per container and by material type (i.e. aluminum, glass, plastic or bimetal). A refund price sign shall meet the following specifications: (A) Dimensions. The sign shall be two feet by two feet (576 square inches). (B) Content. In addition to the prices paid as required in subsection (e)(2) above, the sign shall contain, at a minimum, the statements as indicated in Figure 9. A refund price sign varying from the specifications of this section may be posted if requested in writing and approved in writing by the Division. *Refund is not paid for packaging, contamination such as dirt or moisture, nor beverage containers not properly labeled with the California redemption value message. *This recycler will discount the refund value, and may discount scrap value for loads of containers which include nonredemption material. *The consumer has the right to: a. Accept a discounted refund and/or scrap price. b. Separate refund from nonrefund material. c. Take material back. Figure 9. (f) Each certified recycling center utilizing a reverse vending machine shall post the following on each machine near the certification sign provided by the Division: (1) A legible sign indicating its hours of operation, and (2) A refund price sign or decal indicating the prices paid by weight or per container for each material type accepted by that reverse vending machine. The refund price sign or decal shall be at a minimum 15 square inches with lettering of at least 3/8 inch in height. A refund price sign or decal not meeting the requirements of this section may be posted if requested in writing and approved in writing by the Division. (3) A sign which specifies the method approved by the Division for redeeming empty beverage containers which are odd-sized, made of materials other than aluminum, glass or plastic, or otherwise not accepted by the reverse vending machine or if the reverse vending machine is out of order. If in-store redemption is the alternative method, a sign which is at a minimum 120 square inches with lettering of at least 1/2 inch in height shall be posted which specifies that containers will be redeemed at all open cash registers or the sign must designate exactly where redemption will occur. (A) If beverage containers are not redeemed at all open registers, a sign shall be posted where refund value payment occurs within the store. The sign shall contain, at a minimum, the words "Redeem CA beverage containers here", and consist of lettering at least 3 inches in height. (g) The operator of a certified recycling center shall maintain records and submit reports regarding redemption activities in compliance with Article 3 of this subchapter. (h) Notwithstanding section 2060(e) of these regulations, if all of the requirements of section 2525(k) are met, a certified recycling center may collect, and pay refund value for, empty beverage containers at a church, school, business where beverages are consumed, or other community service organization. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14501(i), 14515.6, 14538, 14571, 14571.3, 14572(a), (b) and (c) and 14572.5, Public Resources Code. s 2501. Load Inspection Requirements. (a) Certified recycling centers shall inspect each load of containers, subject to the Act, delivered to the recycling center, for which refund value is claimed, to determine whether the load is eligible for any refund value and, if so, to determine whether the load is segregated or commingled, as follows: (1) For transactions with consumers, the recycling center shall remove the containers from any bag, box or other receptacle used to deliver the material to the recycling center and visually inspect the containers prior to determining the basis for payment and paying the seller. In no case shall a certified recycling center pay or claim the refund value for any material not inspected by the recycling center. (2) For any load delivered to a recycling center, from a dropoff or collection program, community service program, curbside program or other recycling center, each recycling center taking delivery of the material shall visually inspect each load of material by monitoring the unloading and/or conveyor process to determine eligibility and whether the load is segregated or commingled. (b) In addition to the requirements of section 2110 of these regulations, a load of material shall be deemed not eligible for any refund value if any one of the following conditions exist: (1) There are pieces of broken, densified bales or biscuits of aluminum beverage containers within the load. This does not include cans which have merely been flattened. (2) Pieces of bales of plastic are found in the load. (3) The motor vehicle, if any, used to deliver the load has a license plate from any foreign country, or any state other than California, unless all of the following conditions are met: (A) The person delivering the load is not a noncertified recycler, as defined at Section 14520.6 of the Act; and, (B) The total refund value of material delivered by any one person per day does not exceed fifty dollars ($50.00); and, (C) The load is not ineligible pursuant to subsection (b)(1), above. (c) Once eligibility is determined payment shall be calculated pursuant to section 2535(d), of these regulations. (d) All out-of-state material, whether labeled with the message required in Section 14561 of the Act or not, and all rejected and line breakage containers are not eligible for any refund value payments. (e) All rejected, line breakage or out-of-state containers in a load delivered from another recycling center, dropoff or collection program, community service program or curbside program, whether labeled or not with the message required in Section 14561 of the Act, must be excluded from the received weight of the load. (f) All loads containing out-of-state material received from consumers are not eligible for any refund value payments. (g) Loads received from consumers shall have rejected or line breakage containers removed from the load or the load is not eligible for any refund value payments. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14538 and 14553, Public Resources Code. s 2502. Labeling Required. s 2505. Notification Requirements. (a) Notwithstanding the requirements of section 2040 of these regulations, certified recycling centers shall notify the Division in writing ten (10) calendar days prior to any of the following events: (1) Change of name under which the recycling center is doing business, (2) Change of business address, mailing address or phone number of operator, (3) Separation from parent company, if applicable, (4) Merger with another company, (5) Discontinuance of operation, (6) Dissolution of the organization type identified in the application for certification, (7) Change in the type of redeemable beverage containers accepted, (8) Any change in the hours of operation as presented in the application for certification or by subsequent notification to the Division, (9) For recycling centers which consist of reverse vending machines, a change in the method approved by the Division for redeeming empty beverage containers which are odd-sized, made of materials other than aluminum, glass, and plastic, or otherwise not accepted by the reverse vending machine, or (10) Change in the agent for service of process, if applicable, (11) Change in the type of organization, (12) Change in the name of the contact person for the operator, (13) Change in corporate officers, if applicable, (14) Change in the name of the organization, (15) Any change in business ownership. (b) Within five (5) calendar days of the date the recycling center began redeeming empty beverage containers, the operator of the recycling center shall notify the Division in writing of the actual date the recycling center began redeeming. Failure to do so or to provide an accurate date will result in denial of handling fee payments for the months the operator failed to notify, or provide an accurate date to, the Division. (c) The operator of a supermarket site shall notify the Division in writing, within ten (10) working days, of the closure of the supermarket or dealer where the recycling center is located. (d) The operator of a certified recycling center who intends to be decertified shall submit a written notification to the Division, which includes the proposed effective date. (e) The operator of a supermarket site shall notify the Division in writing, within five (5) calendar days, if the recycling center is moved within the supermarket or dealer parking lot. Nothing in this section is intended to require a recycling center to report to the Division movement related to the emptying of recycling equipment. Note: Authority cited: Section 14536(b), Public Resources Code. Reference: Sections 14515.6, 14526.6, 14538, 14571(d) and 14585, Public Resources Code. s 2510. Operation Standards. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14514.5, 14538, 14541.5, 14571 and 14572(a) and (b), Public Resources Code. s 2515. Notification Requirements. Note: Authority cited: Sections 14530.5 and 14536(b), Public Resources Code. Reference: Sections 14538, 14541.5, 14542(c) and 14571.9, Public Resources Code. s 2516. Eligibility Criteria. (a) In addition to meeting the requirements of Section 14585 of the Act, a recycling center shall meet all of the following criteria for handling fees eligibility on the first day of the calendar month for which they are claimed. A recycling center must be: (1) certified, operational, and accepting and paying refund value to consumers for all empty beverage container material types; and (2) located within a convenience zone; and (3) a "supermarket-site" recycling center as defined in Section 14526.6 of the Act, or a nonprofit convenience zone recycler as defined in Section 14514.7 of the Act, or a rural region recycler as defined in Section 14525.5.1 of the Act; and (4) the only certified, non-grandfathered recycling center in the convenience zone. (b) The Division shall inspect each supermarket site, nonprofit convenience zone recycler, or rural region recycler to determine whether such sites satisfy the requirements of this section. (c) Commencing January 1, 1993, a recycling center, which locates within a convenience zone, thereby causing a preexisting recycling center to become ineligible to receive handling fees, shall never be eligible to receive handling fees in that convenience zone. Such ineligibility shall apply to the parent company, its subsidiaries and affiliates even if the preexisting recycling center ceases to operate within the convenience zone. Such ineligibility shall also apply to the parent, the subsidiaries and the affiliates of any grandfathered recycling center which elects to begin accepting all material types. (d) A rural region recycler may combine total monthly beverage container purchases from two or more of its convenience zone sites to establish eligibility for a single handling fee payment by submitting the following information monthly in writing: (1) The certification numbers and addresses of the locations where receipt and/or log transactions are to be combined; (2) The month and year of the transactions to be combined; (3) The company name, address, contact person and business phone number, signed and dated by the contact person. (e) The additional information required in subsection (d) shall be postmarked no later than the fifth day of the first month following the reporting month. A rural region recycler that fails to provide this information by the date specified in this subsection shall not be eligible for a single handling fee payment based on combined monthly beverage container purchases from two or more of its convenience zone sites. (f) A rural region recycler shall submit a separate Handling Fee Application Form (Form DR-14 (1/00)) for each convenience zone site which is combined with one or more convenience zone sites to establish eligibility for a single handling fee payment. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14513.4, 14514.7, 14525.5.1, 14526.6, 14552, 14571.8(b), 14572 and 14585, Public Resources Code. s 2517. Termination of Eligibility. (a) A recycling center's eligibility for handling fees shall terminate if that supermarket-site recycling center, nonprofit convenience zone recycler, or rural region recycler, fails to meet the criteria established in Section 2516 of this subchapter or any other criteria established in Section 14585 of the Act or if, commencing January 1, 1993: (1) Another recycling center certifies and begins operation, or a grandfathered recycling center amends their certification application to begin accepting all beverage container types, within the convenience zone in which a recycling center is eligible to receive handling fees. Eligibility will terminate sixty (60) days from the effective date of the second recycling center's certification and operational date; or, (2) The convenience zone served by a recycling center is deleted due to the closure of a supermarket, or exempted by the Department pursuant to Section 14571.8 of the Act, or the dealer where the supermarket site is located closes. Eligibility will terminate at the end of the month in which the supermarket or dealer closes or a convenience zone exemption is granted. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14513.4, 14525.5.1, 14526.6, 14552, 14571.8(b), 14572 and 14585, Public Resources Code. s 2518. Calculations and Payments. (a) The Division shall determine handling fee payments for a recycling center meeting the requirements of Section 14585 of the Act and Section 2516, above, based on data contained in the Handling Fee Application Form (Form DR-14 (1/00)) by performing the following calculations: (1) The reported redemption weights shall be converted to number of empty beverage containers using the Division's statewide average containers-per-pound rate for each material type, and pursuant to Subsection 14585(a)(3) of the Act. (2) The total number of empty beverage containers for the calendar month shall be calculated by summing the number of empty aluminum, glass, plastic and bimetal beverage containers. If the total number of empty beverage containers is less than the minimum number required by Section 14585(a)(2) of the Act, the recycling center is not eligible for handling fees for that calendar month. (3) The Division shall determine the number of empty beverage containers eligible for handling fees pursuant to Subsection 14585(a)(4) of the Act. (4) The monthly handling fee for each recycling center shall be the lesser of the following: (A) Two thousand three hundred dollars ($2,300); or (B) The total number of containers eligible for handling fees as derived in paragraph (3) above, multiplied by one and eight-tenths of one cent ($0.018). (b) Prior to release of handling fees for each month during which a recycling center is eligible, the Division may determine that such fees should be withheld for any of the following reasons: (1) The Division has prevailed against the recycler in a civil or administrative action and money is owed to the Division as a result of the action. (2) The Division determines, based on information contained in the shipping reports filed pursuant to Section 2530 of Article 3 of Subchapter 6, that the recycler has received handling fees for materials which were not redeemed for refund value and such discrepancies between reported redemption weights and shipping weights are more than two and one-half percent. Note: Authority cited: Sections 14530.5, 14536 and 14552(e), Public Resources Code. Reference: Sections 14504, 14526.6 and 14585, Public Resources Code. s 2519. Handling Fee Appeals. (a) Recycling centers may file a formal appeal by writing to the Division within thirty (30) calendar days of the warrant date of the payment or the date of the Notice of Denial (NOD). Appeals submitted after this time period will be rejected. All written appeals must include: (1) A list of applicable certification numbers and corresponding facility addresses; and, (2) the month(s) and year(s) in question; and, (3) the canceled, original Form(s) DR-14 (1/00) and NOD(s), if this is an appeal of a denial; and, (4) a copy of the remittance advice, if this is an appeal of a payment determination; and, (5) a short explanation of why you believe the determination was in error; and, (6) any other documentation that supports your appeal. (b) A decision on the appeal will be sent, in writing, within fifteen (15) working days of receipt of the appeal. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14526.6 and 14585, Public Resources Code. s 2520. Applicability. In addition to the general accounting requirements of subchapter 2, recycling centers shall comply with the accounting and reporting provisions of this article. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5 and 14536, Public Resources Code. s 2525. Recordkeeping. Recycling centers shall maintain the following records in accordance with the general requirements set forth in section 2085 of these regulations. (a) Except for reverse vending machines as provided in subsection 2525(c) below, the recycling centers shall prepare and maintain a copy of a press pre-numbered receipt or a receipt produced by an automatic computer-generated numbering system that cannot be altered by the participant, for any purchase or donation of empty beverage containers in the amount of one hundred dollars ($100.00) or more in refund value. A copy of the receipt shall be provided to the person selling or donating the material, and shall include all of the following information: (1) The total weight or count of materials by material type (the recycling center shall comply with section 2535(f) but may treat different colors of glass as different material types only for recordkeeping purposes pursuant to this section); and (2) The total payment made by the recycling center or the amount paid for each material type; and (3) The basis for the refund value payment (e.g., segregated and counted, segregated and weighed, commingled, or, if no refund value is paid, indicate scrap only); and (4) The certification number of the recycling center; and (5) The date of the sale or donation; and (6) The printed name and signature of the person selling or donating the material, or a statement explaining why such could not be obtained; and (7) Additional information identifying the person selling or donating the material. The additional information shall be either: the person's valid driver license number and state of issuance or vehicle license number and state of issuance. If neither identifying item is available, a California Identification Card number may be substituted. In the absence of any of these items of identification, a statement shall be required explaining why the additional information could not be obtained. (b) Except for reverse vending machines as provided in subsection 2525(c) below, for all purchases or donations with a total refund value of less than one hundred dollars ($100.00), the recycling center shall either prepare a receipt pursuant to subsection 2525(a), or shall maintain a log setting forth the information required by subsections (a)(1) through (a)(6) above. Any item of additional identifying information specified in subsection 2525(a)(7) above may be substituted for the printed name of the person selling or donating the material. (c) For all material received from a reverse vending machine owned or operated by the recycling center, the recycling center shall prepare a receipt or log each time material is removed from the reverse vending machine, or if material is removed more than once a day, on a daily basis. The receipt or log shall set forth the meter reading, date, total weight, and certification number. Recycling centers shall retain such receipts or logs in their records along with the copies of any receipts issued by the machine. For redemption transactions other than machine transactions, receipt and log requirements pursuant to 2525(a) or (b) shall be followed. (d) For all donations made anonymously, such as those left at the recycling center when the recycling center is not open for business, the recycling center shall prepare a receipt or log setting forth the information required by subsections 2525(a)(1) through (a)(5) above. The refund value stated on such a receipt shall be based on the applicable commingled rate. Such receipts or log entries shall be prepared on at least a daily basis for all days when the recycling center receives anonymous donations. (e) The recycling center shall retain a copy of any shipping report which the recycling center prepares or receives from another recycling center pursuant to section 2530 of these regulations. (f) The recycling center shall retain a copy of the weight ticket prepared by the recycling center, or provided by the person receiving material from the recycling center, describing the weight of shipped material by material type. (g) The recycling center shall retain a copy of any report to the Division for handling fee prepared pursuant to section 2530 of these regulations. (h) The recycling center shall prepare and retain a receipt setting forth the information required by subsection (b) of this section for all scrap transactions. In addition, the receipt shall indicate whether the load consisted of rejected containers, line-breakage containers, or out-of-state beverage containers. (i) The recycling center shall prepare and retain daily summaries of all receipt and log transactions, including donations, for each shipping report. The summaries shall contain the total weight and the corresponding refund value for each day of the shipping report period. (j) Records of allowable cost. Recycling centers shall maintain records containing the information specified at section 2960(b)(1) through (12), inclusive. (k) Certified recycling centers collecting materials pursuant to section 2500(h) shall, in addition to subsections (a) through (j) of this section, do both of the following: (1) Maintain a written agreement at the recycling center which is between the recycling center and the church, school, business where beverages are consumed, or other community service organization. The agreement must include, at a minimum, the following: (A) The name, address, and certification number of the recycling center, as well as the name and phone number of a contact person at the recycling center; and (B) The name and address of the organization to be served by the recycling center, as well as the name and phone number of a contact person at the organization; and (C) Language, typed or legibly handwritten in English, which states the agreement between the recycling center and the organization and includes the material type of beverage containers to be picked up and the method of determining the weight of beverage containers picked up. (2) Prepare, issue and maintain a receipt for the transaction, regardless of the amount of the transaction. The receipt shall be in the form of a press pre-numbered receipt and shall include all of the information specified in section 2525(a)(1) through (a)(6) and section 2525(k)(1)(B) of these regulations. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14537, 14538, 14552, 14575 and 14585, Public Resources Code.Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14537, 14538, 14552, 14575 and 14585, Public Resources Code. s 2530. Reporting. Recycling centers shall prepare and submit all of the following reports in accordance with the general requirements for reporting of section 2090 of these regulations. (a) A shipping report for each delivery (of material subject to the Act) between: (1) the recycling center and any other recycling center; or (2) the recycling center and the processor; or (3) the recycling center and a dropoff or collection program, community service program, or curbside program, as provided in subdivision (f), below. (b) The shipping recycling center shall indicate on the shipping report all information listed under subsection 2530(e)(1) through (6), provide the shipping report containing this information to the person receiving the shipment and shall retain a completed copy; the shipping report shall accompany the material shipped, except as noted in (1) below. For shipments to processors, the recycling center shall receive a copy of the completed shipping report from the processor upon payment, pursuant to section 2430(a)(1) of these regulations. (1) In the case of glass, recyclers may add up the daily summaries until total weight is equal to received weight and claim the corresponding redemption weight and refund value. In such cases, a shipping report need not accompany the load. (c) The shipping report shall be based upon any receipts or log entries prepared pursuant to section 2525 above, or any shipping reports for material received by recycling centers from other recycling centers. (d) Copies of any shipping reports for material received by a recycling center from other recycling centers, dropoff or collection programs, community service programs, or curbside programs, shall be appended to the shipping report prepared pursuant to this section. (e) Except as provided for in subsection (f) below, a separate shipping report shall be prepared for each material type and shall include all of the following information: (1) The name, address, and certification number of the recycling center shipping the material as well as the name and telephone number of a contact person; and (2) The name and certification number of the recycling center or processor receiving the material; and (3) The period and the material type covered by the report; and (4) The following information based upon the information contained in the receipts and logs and the received shipping reports: (A) The redemption weight of the material. (B) The total refund value. (5) The number of attached shipping reports which pertain to material included in the shipment. (6) The printed name, title and signature of an authorized representative of the recycling center and the date signed. (f) For material received by the recycling center from a dropoff or collection program, community service program or curbside program, the recycling center shall prepare a separate shipping report for each material type and provide a copy of the completed shipping report to the shipping dropoff or collection program, community service program or curbside program. Shipping reports prepared pursuant to this subsection shall contain all of the following information: (1) The name, address, certification or identification number for the entity shipping the material, as well as the name and telephone number of a contact person; and (2) The name and certification number of the recycling center receiving the material; and (3) The date the material was received and the material type covered by the report; and (4) The received weight, excluding rejected containers, line breakage, and out-of-state containers; and (5) The refund value paid; and (6) The printed name, title and signature of the shipper or an authorized representative of the shipper and the date signed; and (7) The printed name, title and signature of an authorized representative of the recycling center and the date signed; and (8) The weight ticket number; and (9) The shrinkage deduction taken, if any. (10) The redemption weight; and, for glass collected by curbside programs that meets the requirements of Section 2850(e), the sorting facility shall be identified as either the Shipper (S), or the Receiver (R) in the QGIP (Quality Glass Incentive Payment) Box. (g) For material received by a recycling center from another recycling center, the receiving recycling center shall ensure that all the information specified in subsection 2530(f)(1) through (8) is recorded on the report and provide a copy of the completed shipping report to the shipping recycling center. (h) To obtain handling fees, only those recycling centers eligible for such fees, as described in section 2516, shall submit a Handling Fee Application Form (Form DR-14 (1/00)) to the Division for the calendar month for which handling fees are being claimed. The Form DR-14 (1/00) shall be postmarked no later than the first day of the second month following the reporting month. Forms postmarked after this date, and incorrectly completed forms, will be denied for payment and the handling fee will be forfeited for that calendar month. Forfeiture for that calendar month will not affect eligibility for subsequent months. There shall be a separate Form DR-14 (1/00) completed for each supermarket site recycling center, nonprofit convenience zone recycler, or rural region recycler which shall include all of the following information in addition to that required by section 2090 of these regulations: (1) The calendar month and year covered by the report; and (2) The name and mailing address of the recycling center; and (3) The name and telephone number of a contact person; and (4) The certification number of the supermarket site recycling center, nonprofit convenience zone recycler, or rural region recycler; and, (5) A change of mailing address, ownership or a closing of the supermarket site recycling center, nonprofit convenience zone recycler, or rural region recycler; and (6) The weight, to the nearest tenth of a pound, of empty beverage containers, by material type, redeemed by that recycling center, at that supermarket site, nonprofit convenience zone recycler, or rural region recycler, only from consumers delivering that material during the hours the recycling center was open for business. This weight shall be taken from the receipts and logs of that recycling center for that calendar month; and, (7) The signature and title of an authorized representative of the recycling center in accordance with subsections 2090(d)(4) and (5) of subchapter 2 of these regulations; and (8) The date the application was signed. (i) Each recycling center shall maintain a separate list of all purchases of more than 250 pounds of aluminum beverage containers. Such list (or legible copies of the receipts) shall be sent to the Division weekly and shall contain all of the following information, taken from the receipt prepared pursuant to section 2525(a) of these regulations: (1) The receipt number for the transaction; and (2) The name of the person selling the material; and (3) The additional identifying information of the person selling the material; and (4) The name, address, and certification number of the recycling center submitting the list; and (5) The transaction date; and (6) The pounds purchased on the receipt; and (7) The total amount paid. (j) Recycling centers purchasing materials directly from more than one curbside program, dropoff or collection program, or community service program may apply to the Division to request the use of alternative methods for preparing the corresponding shipping reports. The Division shall consider each proposed alternative method and issue a written approval or denial within forty-five (45) calendar days. (1) In order for alternative methods to be accepted, they must be based on reasonable allocation methods. (2) An application for an alternative allocation method shall be denied if: (A) The received weight of the material purchased by an entity from the recycling center is not used to calculate allocations to the curbside programs, dropoff or collection programs, or community service programs; or (B) The recycling center does not ensure that the weight of rejected containers, line breakage, and out-of-state containers is not included in the allocated weight (this does not require a physical separation); or (C) The recycling center does not account for each incoming load of material; or (D) The recycling center does not inspect incoming material to verify that it is eligible for refund value payments, as specified in section 2501. (3) Recycling centers may file a formal appeal by writing the Assistant Director for Recycling within thirty (30) calendar days after the receipt of a notice denying an application requesting an alternative method for shipping report preparation. Appeals submitted after this time period shall be rejected. All written appeals shall include: (A) A copy of the notice denying the allocation method; (B) A detailed explanation of why the determination was in error; and, (C) any other documentation that supports the appeal. (4) A written decision on the appeal shall be sent to the recycling center within seven (7) calendar days of the receipt of the appeal. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14526.6, 14538, 14549.1, 14571.9 and 14585, Public Resources Code. s 2535. Payments to Consumers, Curbside Programs, Community Service Programs and Dropoff or Collection Programs. (a) Recycling centers shall pay on delivery the refund value for every empty beverage container not donated to the recycling center. (b) For deliveries to a recycling center, except reverse vending machines: (1) The consumer has the option of being paid based on count for up to 50 empty beverage containers of each material type. (2) The recycler may pay based on count for all deliveries of empty beverage containers received from consumers. (c) Notwithstanding any other provision of this subchapter, recycling centers shall not pay dropoff or collection, community service, and curbside programs more than the relevant commingled rate. (d) Calculation of Payment. (1) If the material received from consumers is segregated, as determined by the load inspection required by section 2501 of these regulations, and payment is based upon weight, payment shall be calculated by multiplying the actual weight of the empty beverage containers, by the applicable segregated refund value per pound for the relevant material type. (2) If the payment is based on the actual number of empty beverage containers, the payment shall be based upon the following: (A) in the case of recycling centers other than a reverse vending machine, the number of the empty beverage containers, multiplied by the refund value per empty beverage container for the relevant material type and size; or, (B) in the case of a reverse vending machine, the number of empty beverage containers, multiplied by the refund value per empty beverage container for the relevant material type and size. If the reverse vending machine accepts empty beverage containers in gross, rather than by individual containers, and pays based on weight, the payment shall be based on the applicable refund value per pound rate. (3) For commingled materials delivered from a dropoff or collection program, community service program or curbside program, payment shall be based on the received weight of the commingled material, excluding the weight of line breakage, rejected and out-of-state material, multiplied by the applicable commingled rate, or the Division's approved individual commingled rate. (4) For commingled materials delivered from another recycling center, payment shall be based on the received weight of the commingled material, excluding the weight of line breakage, rejected and out-of-state material, multiplied by the applicable commingled rate. (5) For commingled materials delivered from consumers, payment shall be based on the received weight of the material, multiplied by the applicable commingled rate. (e) Recycling centers shall have the option to refuse to accept empty beverage containers which, in the opinion of the recycling center, are excessively contaminated with dirt, moisture, or other foreign substances ( "shrinkage"). Alternatively, recycling centers may adjust downward the refund value per pound used to calculate payment by the ratio of such substances to empty beverage containers. (f) A certified recycler shall not pay the refund value to, or claim refund value for any material received from any person, operation or entity who is not certified by the Division, delivering a load of material in excess of 500 pounds of aluminum or plastic beverage containers, or 2,500 pounds of glass beverage containers, per day. This limitation is applicable to all transactions, including those performed pursuant to section 2500(h) of these regulations. (1) It is a violation of this Section for a recycling center to split loads in excess of the aforementioned weighs, or accept during any one day an aggregate total of material in excess of the aforementioned weighs from any person not certified by the Division. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14572 and 14572.5, Public Resources Code. s 2540. Receipt of Funds. (a) The recycling center shall receive from the processor the sum of the following amounts: (1) total refund value; and (2) three-fourths of one percent (3/4%) of the refund value for administrative costs; and (3) any applicable processing payment pursuant to Section 14573.5 of the Act. (b) Such payments in subsection (a) above shall be based upon the lesser of the shipping report total amount due as set forth in the shipping report, or the value appropriate for the received weight as determined by the processor in accordance with subsections 2430(a)(1)(D), (E), and (F) of these regulations. (c) For reverse vending machines, the refund value pursuant to subsection 2540(a) above shall be based upon the applicable commingled rate, except as follows: (1) The refund value shall be based upon the full refund value only where the reverse vending machine distinguishes 100% of the time between empty beverage containers and other containers. (d) Except as provided in Section 14585(b)(4) of the Act, a recycling center shall receive handling fees directly from the Division based upon the weight of all empty beverage containers reported to the Division pursuant to subsection 2530(c) of these regulations. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14518.5, 14573.5, 14575(c) and 14585(b)(4), Public Resources Code. s 2550. Additions and Clarifications. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14500, 14503, 14504, 14505, 14512.5, 14513, 14514, 14517, 14518, 14520.6, 14524, 14530.5, 14536, 14550, 14552, 14561, 14572, 14573, and 14573.5, Public Resources Code. s 2600. Operation Standards. (a) All certified dropoff or collection programs shall meet the following requirements: (1) Operate and maintain records in accordance with the category of certification as approved by the Division and defined in these regulations. (2) In order to remain certified, a dropoff or collection program must collect or accept a minimum of 500 pounds of aluminum or plastic beverage containers, or 2,000 pounds of glass beverage containers every year after becoming certified. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7, Public Resources Code. s 2601. Examinations. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14537, 14538(f), 14541(c) and (d), Public Resources Code. s 2602. Proprietary and Other Records Exempt from Disclosure. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Section 14551(b), Public Resources Code. s 2603. Records. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14537, 14538(e) and (f) and 14552, Public Resources Code. s 2604. Reports, Notices, and Claims Submitted to Division. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 1438, 14541, 14541.5, 14550, 14551, 14552, and 14553, Public Resources Code; and Sections 6066 and 6067, Revenue and Taxation Code. s 2605. Notification Requirements. (a) In addition to the requirements contained in section 2600(a) above, the operator of a certified dropoff or collection program shall notify the Division prior to any of the following events: (1) Any change in operation, including additional dropoff or collection sites and changes in location of dropoff sites. (2) Any change in operator name or contact person, business or mailing address, or telephone number of the operator. (3) Change in the name of the program. (4) Change in the corporate officers, if applicable. (5) Change in the agent for service of process, if applicable. (b) The operator of a certified dropoff or collection program who intends to be decertified shall submit a written notification to the Division, which includes the proposed effective date. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7, Public Resources Code. s 2606. Penalties and Interest Charges. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14541 and 14591(c), Public Resources Code; and Section 11500 et seq., Government Code. s 2607. Persons That are Certified as Both Processors and Recycling Centers (Dual Certified Entities). Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14540, 14572 and 14573.5, Public Resources Code. s 2608. Cancelled Material and Rejected Containers. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14518, 14539 and 14573.5, Public Resources Code. s 2609. Notice of Disposal. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14501(h), 14518 and 14519, Public Resources Code. s 2610. Applicability. In addition to the general accounting requirements of subchapter 2, dropoff or collection programs shall comply with the accounting and reporting provisions of this article. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7 and 14552, Public Resources Code. s 2611. Dates. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14551(b) and 14552, Public Resources Code. s 2615. Recordkeeping. (a) Dropoff or collection programs shall maintain the following records in accordance with the general requirements set forth in section 2085 of these regulations. (1) Dropoff or collection programs shall prepare and maintain logs which contain all of the following information: (A) The date and time of pickup or donation; and (B) The name and address of the location of pickup or donation; and (C) The material types picked up or donated; and (D) An approximation of the weight of each material type picked up or donated; and (E) The name and phone number of a contact person at the location of pickup; and (F) Amount of scrap value paid for each material type. (2) Dropoff or collection programs shall maintain a copy of the shipping report prepared by a recycling center or processor and a copy of the weight ticket prepared by a recycling center or processor. (b) Dropoff or collection programs shall not claim refund value for empty beverage containers purchased from, or donated by, curbside programs. All scrap transactions between dropoff or collection programs and curbside programs shall be reported in the same manner as is required pursuant to section 2530 of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7 and 14552, Public Resources Code. s 2616. Obtaining Department Approval. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2617. Alternative Methodology Procedures. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2618. Permit Processing Times for Individual Commingled Rate Studies. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 15376, Government Code; Section 14552(a), Public Resources Code. s 2619. Appeals. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2620. Obtaining Division Approval. Operators of dropoff or collection programs shall be paid the applicable statewide average commingled rate, determined by the Division, for commingled beverage container material types, unless the Division approves an individual commingled rate for their program. Individual commingled rates may be approved for one or more material-types which have an existing statewide commingled rate. Operators of dropoff or collection programs who wish to apply for an individual commingled rate shall submit a completed Individual Commingled Rate Application (ICRS-APP (07/00)) in the form and manner required by this section. The applicant shall request approval to conduct an individual commingled rate survey using either the Division's individual commingled rate methodology specified in subsection (c), or an alternative methodology submitted by the applicant. A total of six weekly surveys shall be conducted on a bimonthly basis beginning in October and ending no later than the second full week of the following September. Individual commingled rates that are approved by the Division, shall be effective from January 1 through December 31 of the year following the survey period. (a) At least 60 days prior to the commencement of the surveys, which begin in October, the Division shall notify operators of dropoff or collection programs of the opportunity to perform an individual commingled rate survey. An operator of a dropoff or collection program wishing to conduct an individual commingled rate survey shall contact the Division to obtain the Individual Commingled Rate Application (ICRS-APP (07/00)). (b) The Individual Commingled Rate Application (ICRS-APP (07/00)) must be completed and submitted to the Division no later than September 1st. To be considered complete, the survey application shall contain the following information: (1) The organization name and, if applicable, a copy of any fictitious business name statement being used. (2) The operator contact person's name, title, phone number, facsimile number, mailing address, and business address. (3) The survey location address and city, and a brief site description. (4) The survey technician's name and phone number. (5) A selection of either the Division's survey methodology in subsection (c) or an alternative proposed methodology to be submitted by the applicant. (6) The identification of material-types selected to be surveyed, the sample size, and daily sample size for each selected material. (7) The dates of survey weeks and the number of days for specified sample periods. (8) The specific time of the day in which surveys will be conducted. (9) The program category of the certified program to be surveyed. (10) The certification number of the program to be surveyed. (11) The source of material for the certified program to be surveyed. (12) The number of municipalities served by the certified program to be surveyed, if any. (13) The number of customer sites from which survey material is to be collected by the certified program. (14) The frequency that collected material is sold. (15) A brief description of the certified program. (16) Declarations and signatures of applicant. (c) The Division's suggested methodology requires the following: (1)The program shall determine the annual survey sample size for each material type based on the chart below. Annual Survey Sample Size Aluminum 6600 Glass 4500 Plastic (all resins) 3000 (2) Upon determining the annual survey sample size, the program shall calculate the daily sample size by dividing the annual survey sample size, specified in the chart above, by the total number of days the survey will be conducted during the entire annual survey. Once the daily sample size is determined for each material type, this will remain the daily sample size throughout the entire annual survey period for that material type. (3) Surveys shall be conducted for one regular workweek during each two-month sample period at pre-established dates, times, and places as indicated on the Individual Commingled Rate Application (ICRS-APP (07/00)) submitted to the Division. Surveys shall not be scheduled for weeks containing holidays or other days the program is not in operation, and shall be equally distributed throughout the survey period. (4) Daily samples shall be collected on a random basis from the material which has been received exclusively from programs approved for the survey. Only whole containers may be surveyed. (5) Upon selection and removal of containers for the daily sample, the applicant shall perform a complete sample analysis of counting, sorting, and weighing containers. In performing a sample analysis, weight shall be measured, recorded, and reported in pounds and fractions thereof. All weighing in this state shall be done on a scale or other device approved, tested and sealed in accordance with Division 5 of the Business and Professions Code (Weights and Measures) and any applicable regulations thereunder. (6) The results of the sample analysis shall be legibly, accurately, and completely recorded on the Daily Data Collection Sheet (DDCS (07/00)), which shall contain the following information: (A) The year the rate will be effective. (B) The two-month sample period in which each one-week survey is conducted. (C) The program name. (D) The survey day and date. (E) The certification and/or registration numbers. (F) Identification of the material type surveyed. (G) The total quantity of containers surveyed, and their total weight. (H) The quantity and weight of CRV containers surveyed that have a volume less than 24 ounces. (I) The quantity and weight of CRV containers surveyed that have a volume of 24 ounces or more. (J) The quantity and weight of non-CRV containers surveyed. (K) The daily totals for each column. (7) At the conclusion of each weekly survey, the applicant shall complete a Weekly Summary Sheet (WSS (07/00)) which shall contain the following information: (A) The year the rate will be effective. (B) The two-month sample period of the weekly survey (C) The program name. (D) The survey week by dates. (E) The certification and/or registration numbers. (F) Identification of the material type surveyed. (G) The survey date summarized on that line. (H) The total quantity of containers surveyed on that date, and their total weight. (I) The quantity and weight of CRV containers surveyed on that date that have a volume less than 24 ounces. (J) The quantity and weight of CRV containers surveyed on that date that have a volume of 24 ounces or more. (K) The quantity and weight of non-CRV containers surveyed on that date. (L) The weekly totals for each column. (8) The completed original Daily Data Collection Sheet, and the Weekly Summary Sheet shall be confirmed to be complete, accurate, and consistent with the methodology approved for that program and shall be submitted to the Division for review, verification, and approval at the conclusion of each two-month survey period and must be postmarked no later than the 15th day of the month following the survey period. (9) At the conclusion of the annual survey period, the applicant shall submit an Affidavit (AFD (07/00)) to confirm that all information is complete, accurate, and consistent with the methodology approved for that program. (d) Dropoff or collection programs proposing to alter the Division's methodology or create their own alternative methodology must apply for Division approval, in advance, pursuant to section 2625 of these regulations. A proposed alternative methodology must equal the Division's methodology in the accuracy of estimation and level of confidence in the estimation. The alternative methodology must be described in adequate detail to determine the accuracy of estimation and level of confidence in the estimation. (e) Determination by the Division that a program has deviated from an approved methodology, demonstrated a significant lack of quality control, or misrepresented their survey results shall result in the termination of the individual commingled rate survey and/or disapproval or revocation of the individual commingled rate and a reversion to the statewide average commingled rate. The Division's adverse action may be appealed pursuant to section 2645 of these regulations. (1) A significant lack of quality control is demonstrated when five (5) percent or more of the sample data submitted by an applicant is found to be incorrect by the Division, and is deleted from the survey pursuant to Section 2620(e)(3) below because of the following: (A) The cumulative weight of all components of a sample deviates by more than an acceptable range of accuracy , as defined in Section 2620(e)(2) below, from the total sample taken for that material type and/or (B) The cumulative count of containers from all components of a sample does not equal the total sample count for that material type. (2) An acceptable range of accuracy, applicable to Section 2620(e)(1)(A) above, is the smallest variance or increment of accuracy of the applicant's scale multiplied by 2.0. (3) The Division, upon its sole discretion, may delete incorrect data samples. (f) The Division shall disapprove individual commingled rates that are based on terminated surveys. The Division shall notify the applicant of such disapproval within thirty (30) calendar days of the determination that a program has deviated from an approved methodology, demonstrated a lack of quality control, or misrepresented survey results. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2625. Alternative Methodology Procedures. (a) Dropoff or collection programs choosing to use an alternative survey methodology shall apply to the Division for approval. Operators shall complete and submit to the Division the following documents, in originals: (1) A completed survey application as specified in section 2620(b); (2) A written description of the alternative methodology procedure in detail, the steps necessary to perform the alternative survey methodology, including the equipment to be used, materials to be collected, how the materials will be analyzed, location where sampling will occur, time and dates of the survey, and any other relevant details that are necessary to arrive at the individual commingled rate. The proposed alternative methodology procedure must be as detailed and inclusive as the survey methodology provided by the Division. (b) The Division shall review all completed proposed alternative methodology requests submitted. (c) The Division shall notify the operator of its decision, after receipt of the documents requested in this subsection, if the methodology was approved or denied, pursuant to section 2630 of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2630. Survey Application Processing Time. (a) Within fifteen (15) calendar days from the receipt of the survey application and alternative methodology procedure, if applicable, from an operator of a dropoff or collection program requesting approval to use the Division's methodology or an alternative methodology to determine their program's specific individual commingled rate, the Division shall inform the applicant, in writing, that the survey application and alternative methodology procedure, if applicable, are either complete and accepted for processing, or incomplete. If the survey application and/or alternative methodology procedure, if applicable, are incomplete, the Division shall indicate, in writing, to the applicant what information or documentation is required. The applicant shall submit the required additional information or documentation, to the Division, postmarked no later than ten (10) calendar days from the date indicated in the Division's letter requesting additional information or documentation. Material postmarked later than ten (10) calendar days will be rejected and the application will be denied. (b) Within fifteen (15) calendar days after the Division informs the applicant of the receipt of a complete survey application and alternative methodology procedure, if applicable, as indicated in subsection 2630(a) above, the Division shall approve or disapprove the survey application and alternative methodology procedure, if applicable. (c) If the application is disapproved, the applicant may request an appeal pursuant to subsection 2645 of these regulations. (d) The applicant may begin using the approved survey methodology for the specified survey period, after receiving written notification from the Division that the survey application and alternative methodology procedure, if applicable, has been approved. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7 and 14552(a), Public Resources Code and Section 15376, Government Code. s 2635. Individual Commingled Rate Survey Audit and Results. (a) The Division may audit any applicant's procedures and results of an approved individual commingled rate survey. The Division shall conduct its audit during the scheduled survey week for any applicant. (b) The Division shall conduct audits. To enable the Division to conduct audits, applicants shall retain the pile of material from which the sample was taken, including the sample itself, until the completion of their daily survey. On the day of the audit, the applicant shall provide Division audit staff access to the material immediately after the applicant conducts the survey. If the applicant deviates from the approved survey time, they shall notify the Division immediately, but not less than 24 hours prior to the time of the deviation. (c) If, in each of two separate audits, the Division determines, using standard statistical formulas, that the difference between the applicant's and the Division's proportion of California Redemption Value containers is statistically significant, the Division shall terminate the applicant's individual commingled rate survey. The difference shall be statistically significant, if the applicant's proportion is higher than the Division's, and the Division is 99% confident that the chances of the difference occurring under the applicant's approved study methodology is 5% or less. (1) The Division shall disapprove individual commingled rates that are based on terminated surveys. The Division shall notify the applicant of such termination and disapproval within thirty (30) calendar days of the audit. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14552(a), Public Resources Code. s 2640. Receipt of Approval or Disapproval and Notification of Changes. (a) Within sixty (60) calendar days after the Division receives the dropoff or collection program's final survey results, the Division shall approve or disapprove the program's individual commingled rate. (b) The applicant shall notify the Division, in writing, within ten (10) working days, of the occurrence of either of the following for any material for which the operator has an approved individual commingled rate: (1) Any increase or decrease of twenty (20) percent or more in the total monthly weight from the average weight of the previous three (3) month period; or (2) Any increase or decrease of twenty (20) percent in the total monthly number of customer sites served by the applicant from the average number of customer sites of the previous three (3) month period. (c) Failure to provide this notification may subject the applicant to immediate revocation of the individual commingled rate. (d) Upon notification of operational changes, described in subsections (b)(1) or (b)(2) above, the Division may, upon its sole discretion, review and alter or revoke the individual commingled rate. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14552(a), Public Resources Code; and Section 15376, Government Code. s 2645. Individual Commingled Rate Appeals Process. (a) In the event of the denial of a survey application, termination of an individual commingled rate survey and/or disapproval or revocation of an individual commingled rate, dropoff or collection programs may file a formal appeal by writing to the Assistant Director for Recycling within thirty (30) calendar days after the receipt of a Letter of Denial (LED). Appeals submitted after this time period shall be rejected. All written appeals shall include: (1) A copy of the (LED); (2) A detailed explanation of why the determination was in error; and (3) Any other documentation that supports the appeal. (b) A decision on the appeal shall be sent to the program applicant, in writing, within fifteen (15) working days of receipt of the appeal. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2650. Curbside Registration Application Review and Renewal. (a) The Division will issue a registration number to all eligible curbside programs in order to facilitate the auditing of payments made to curbside programs, and proper payment of refund values, processing payments, supplemental payments, quality glass incentive payments and administrative fees. No curbside program may receive refund values, processing payments, supplemental payments, quality glass incentive payments or administrative fees without a valid registration number. (b) The registration number issued shall be valid for a maximum of two years. All registration numbers expire on the anniversary of the original application approval date. The curbside program shall submit a completed Application for Curbside Registration, DOR 50 10/99, for renewal, at least 30 days prior to the expiration date of the registration number. The application may be obtained from the Division upon request. The renewal application shall be subject to the same standards and requirements as the original application. (c) Upon receiving a request for a registration number from a curbside program, the Division shall furnish the curbside operator with an "Application for Curbside Registration" DOR 50 10/99, which shall be used to apply for a new registration number or for renewal of a current registration number. In addition to submitting the completed application, the curbside program operator shall supply to the Division the following information: (1) A dated and signed copy of a contract or franchise agreement acknowledging the curbside program and the expiration date of the contract or franchise agreement, and identification of the public official responsible for oversight of the contract or franchise agreement, including the official's title, address, and phone number; or (2) A letter prepared by the operator or the public official, and bearing the signature of the city, county or other public agency's chief administrative officer, or his or her designee, verifying that the program operates with the full knowledge and concurrence of the city, county, or public agency. (d) The application (DOR 50 10/99) shall be completed by providing the following information: (1) The operator's organization name; parent company name and fictitious business name statement, if applicable; business and mailing address; telephone number; federal employer identification number and the name and title of the individual responsible for completing the application. (2) The date the program started, or proposes to start operation. (3) The operator's type of organization, whether an individual, partnership, profit corporation, nonprofit corporation, limited liability company, husband and wife co-ownership, local government agency, federal agency, joint power of authority, or other type of organization. (A) If the organization or individual is doing or proposing to do business under a different name, the applicant shall provide a copy of their fictitious business name statement. (B) If the organization is a partnership, the applicant shall provide a copy of the current partnership agreement. (C) If the organization is a corporation, the applicant shall provide the corporate number, the Articles of Incorporation, name and position of all current corporate officers as filed with the Secretary of State, and the agent for service of process. (D) If the organization is a corporation from a state other than California, the applicant shall provide a copy of the approved certificate from the California Secretary of State qualifying and authorizing the corporation to transact business in California. (E) If the organization is a husband and wife co-ownership, both names shall be provided. (F) If the organization is a limited liability company (LLC), the applicant shall provide a copy of the Articles of Organization and Statement of Information as filed with the Secretary of State, any operating agreement, and the agent for service of process. (G) If the organization is a limited liability company (LLC) from a state other than California, the applicant shall provide a copy of the Articles of Organization and Statement of Information as filed with the Secretary of State, any operating agreement, the agent for service of process and a copy of the certificate from the California Secretary of State authorizing the LLC to transact business in California. (H) If the organization is a local government agency, federal agency or a joint power of authority, the applicant shall provide a copy of the authorizing resolution from the governing board. (4) A map of the areas serviced by the program and the number of single and multiple family residences and apartment units served by the program. (5) Whether the operator of the curbside program is currently certified by the Division and a list of valid certification numbers, if applicable. (6) A description of the program including a listing of the types of residences and/or businesses served by the program. (7) Whether recyclables are sorted or mixed at the point of collection. (8) A description of the collection containers used by the program. (9) If a separate company sorts the curbside materials after collection, the sorter company name, address, telephone number and contact person. (10) The name and certification number of the recycling centers and/or processors to which materials collected by the curbside program are most often sold and the type(s) of material sold. (11) The name and address of the public agency responsible for the oversight of the contract or franchise agreement and the name, title and telephone number of the public agency contact person as well as the community or communities served by this curbside program. (12) The frequency that curbside materials are collected. (13) The method of collection for materials in residential areas. (14) The types of recyclable materials the curbside program accepts or collects. (15) The name, residence address, including city and zip code, residence phone number, and driver license number of the applicant(s). (e) The curbside program operator shall submit to the Division the local public agency authorization described in subsection (c) above and the completed application signed by the operator under penalty of perjury. The signature block shall contain an affidavit that the information in the application is true and that the operator agrees to operate in compliance with the Act and these regulations. (1) If the operator is a partnership, each partner shall sign the application. (2) If the operator is a firm, association, corporation, LLC, county, city, public agency or other governmental entity, the application shall be signed by the chief executive officer or the individual with the authority to legally bind the entity to a contract. (3) If the operator is a husband and wife co-ownership, both husband and wife shall sign the application. (f) All applications for curbside registration shall be reviewed by the Division for compliance with the Act and these regulations. Within 15 working days of receiving the Application for Curbside Registration, DOR 50 10/99 and local public agency authorization, the Division shall notify the curbside program, in writing, that the requested information is complete and accepted for filing with the Division, or incomplete and the reasons for the incompleteness. If incomplete, the Division shall specify the additional information necessary before a registration number will be issued. Upon determining that an application is complete, the Division shall notify the applicant in writing within forty-five (45) calendar days that the application is either approved, approved for probationary status or denied and the reason(s) for denial. (g) A curbside program shall meet all standards and requirements for registration contained in section 14551.5 of the Act and in these regulations. (h) Reasons for denial of an Application for Curbside Registration, DOR 50 10/99, are: (1) Failure to provide information or documentation to complete the application as required in these regulations; (2) The curbside program is unwilling to accept all beverage container types; (3) The curbside operator, the curbside program or other individuals identified in the application have a history which demonstrates a pattern of operation in conflict with the requirements of the Act. (i) The curbside program shall provide its registration number on all reports required by the Division and shall provide its registration number to certified recyclers and processors at the time it delivers recyclables. (j) The operator of a curbside program shall notify the Division in writing ten (10) calendar days prior to any of the following events: (1) Change of name under which the curbside program is doing business, (2) Change of address or phone number of operator, (3) Separation from parent company, if applicable, (4) Merger with another company, (5) Discontinuance of operation, (6) Expiration of, or cancellation of, contract or franchise agreement with the city, county, or local public agency, or (7) Change or retraction in the acknowledgment of the curbside program by the authorized public agency. (k) Notification of any events listed in (j) above may result in cancellation of the registration number by the Division. ( l) Any curbside program information of a personal or proprietary nature that is retained by the Division shall be confidential. The data shall only be released on a cumulative basis, and without identification of any individual operator by name, number or location of operation. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5, 14549.1, 14551.5, 14554, 14571.8 and 14573.5, Public Resources Code. s 2655. Survey Form and Identification Number Renewal. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5, 14551.5, 14571.8 and 14554, Public Resources Code. s 2660. Obtaining Division Approval. Operators of curbside programs shall be paid the applicable statewide average commingled rate, determined by the Division, for commingled beverage container material types, unless the Division approves an individual commingled rate for their program. Individual commingled rates may be approved for one or more material-types which have an existing statewide commingled rate. Operators of curbside programs who wish to apply for an individual commingled rate shall submit a completed Individual Commingled Rate Application (ICRS-APP (07/00)) in the form and manner required by this section. The applicant shall request approval to conduct an individual commingled rate survey using either the Division's individual commingled rate methodology, specified in subsection (c), or an alternative methodology submitted by the applicant. An operator of a curbside program shall conduct surveys on each day the program operates during a one week period. A total of six weekly surveys shall be conducted on a bimonthly basis beginning in October and ending no later than the second full week of the following September. Individual commingled rates that are approved by the Division, shall be effective from January 1 through December 31 of the year following the survey period. (a) At least 60 days prior to the commencement of the surveys, which begin in October, the Division shall notify operators of curbside programs of the opportunity to perform an individual commingled rate survey. An operator of a curbside program wishing to conduct an individual commingled rate survey shall contact the Division to obtain the Individual Commingled Rate Application (ICRS-APP (07/00)). (b) The Individual Commingled Rate Application (ICRS-APP (07/00)) must be completed and submitted to the Division no later than September 1st. To be considered complete, the survey application shall contain the following information: (1) The organization name and, if applicable, a copy of any fictitious business name statement being used. (2) The operator contact person's name, title, phone number, facsimile number, mailing address, and business address. (3) The survey location address and city, and a brief site description. (4) The survey technician's name and phone number. (5) A selection of either the Division's survey methodology in subsection (c) or an alternative proposed methodology to be submitted by the applicant. (6) The identification of material-types selected to be surveyed, the sample size, and daily sample size for each selected material. (7) The dates of survey weeks and the number of days for specified sample periods. (8) The specific time of the day in which surveys will be conducted. (9) The program category of the certified program to be surveyed. (10) For each curbside program to be surveyed under one application, the curbside registration number, the municipality served, and the operator contracted for collection and/or sorting, if any. (11) Declarations and signatures of applicant. (c) The Division's suggested methodology requires the following: (1)The program shall determine the annual survey sample size for each material type based on the chart below. Annual Survey Sample Size Aluminum 6600 Glass 4500 Plastic (all resins) 3000 (2) Upon determining the annual survey sample size, the program shall calculate the daily sample size by dividing the annual survey sample size, specified in the chart above, by the total number of days the survey will be conducted during the entire annual survey. Once the daily sample size is determined for each material type, this will remain the daily sample size throughout the entire annual survey period for that material type. (3) Surveys shall be conducted for one regular workweek during each two-month sample period at pre-established dates, times, and places as indicated on the Individual Commingled Rate Application (ICRS-APP (07/00)) submitted to the Division. Surveys shall not be scheduled for weeks containing holidays or other days the program is not in operation, and shall be equally distributed throughout the survey period. (4) Daily samples shall be collected on a random basis from the material which has been received exclusively from programs approved for the survey. Only whole containers may be surveyed. (5) Upon selection and removal of containers for the daily sample, the applicant shall perform a complete sample analysis of counting, sorting, and weighing containers. In performing a sample analysis, weight shall be measured, recorded, and reported in pounds and fractions thereof. All weighing in this state shall be done on a scale or other device approved, tested and sealed in accordance with Division 5 of the Business and Professions Code (Weights and Measures) and any applicable regulations thereunder. (6) The results of the sample analysis shall be legibly, accurately, and completely recorded on the Daily Data Collection Sheet (DDCS (07/00)), which shall contain the following information: (A) The year the rate will be effective. (B) The two-month sample period in which each one-week survey is conducted. (C) The program name. (D) The survey day and date. (E) The certification and/or registration numbers. (F) Identification of the material type surveyed. (G) The total quantity of containers surveyed, and their total weight. (H) The quantity and weight of CRV containers surveyed that have a volume less than 24 ounces. (I) The quantity and weight of CRV containers surveyed that have a volume of 24 ounces or more. (J) The quantity and weight of non-CRV containers surveyed. (K) The daily totals for each column. (7) At the conclusion of each weekly survey, the applicant shall complete a Weekly Summary Sheet (WSS (07/00)) which shall contain the following information: (A) The year the rate will be effective. (B) The two-month sample period of the weekly survey (C) The program name. (D) The survey week by dates. (E) The certification and/or registration numbers. (F) Identification of the material type surveyed. (G) The survey date summarized on that line. (H) The total quantity of containers surveyed on that date, and their total weight. (I) The quantity and weight of CRV containers surveyed on that date that have a volume less than 24 ounces. (J) The quantity and weight of CRV containers surveyed on that date that have a volume of 24 ounces or more. (K) The quantity and weight of non-CRV containers surveyed on that date. (L) The weekly totals for each column. (8) The completed original Daily Data Collection Sheet, and the Weekly Summary Sheet shall be confirmed to be complete, accurate, and consistent with the methodology approved for that program and shall be submitted to the Division for review, verification, and approval at the conclusion of each two-month survey period and must be postmarked no later than the 15th day of the month following the survey period. (9) At the conclusion of the annual survey period, the applicant shall submit an Affidavit (AFD (07/00)) to confirm that all information is complete, accurate, and consistent with the methodology approved for that program. (d) Curbside programs proposing to alter the Division's methodology or create their own alternative methodology must apply for Division approval, in advance, pursuant to section 2665 of these regulations. A proposed alternative methodology must equal the Division's methodology in the accuracy of estimation and level of confidence in the estimation. The alternative methodology must be described in adequate detail to determine the accuracy of estimation and level of confidence in the estimation. (e) Curbside programs shall have the option of conducting their individual commingled rate survey at either their location where curbside trucks unload or the location of curbside collections(s). (f) Determination by the Division that a program has deviated from an approved methodology, demonstrated a significant lack of quality control, or misrepresented their survey results shall result in the termination of the individual commingled rate survey and/or disapproval or revocation of the individual commingled rate and a reversion to the statewide average commingled rate. The Division's adverse action may be appealed pursuant to section 2685 of these regulations. (1) A significant lack of quality control is demonstrated when five (5) percent or more of the sample data submitted by an applicant is found to be incorrect by the Division, and is deleted from the survey pursuant to Section 2660(f)(3) below because of the following: (A) The cumulative weight of all components of a sample deviates by more than an acceptable range of accuracy ,as defined in Section 2660(f)(2) below, from the total sample taken for that material type and/or (B) The cumulative count of containers from all components of a sample does not equal the total sample count for that material type. (2) An acceptable range of accuracy, applicable to Section 2660(f)(1)(A) above, is the smallest variance or increment of accuracy of the applicant's scale multiplied by 2.0. (3) The Division, upon its sole discretion, may delete incorrect data samples. (g) The Division shall disapprove individual commingled rates that are based on terminated surveys. The Division shall notify the applicant of such disapproval within thirty (30) calendar days of the determination that a program has deviated from an approved methodology, demonstrated a lack of quality control, or misrepresented survey results. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5, 14552(a) and 14573.51, Public Resources Code. s 2665. Alternative Methodology Procedures. (a) Curbside programs choosing to use an alternative survey methodology shall apply to the Division for approval. Operators shall complete and submit to the Division the following documents, in originals: (1) A completed survey application as specified in section 2660(b); (2) A written description of the alternative methodology procedure in detail, the steps necessary to perform the alternative survey methodology, including the equipment to be used, materials to be collected, how the materials will be analyzed, location where sampling will occur, time and days of the survey, and any other relevant details that are necessary to arrive at the individual commingled rate. The proposed alternative methodology procedure must be as detailed and inclusive as the survey methodology provided by the Division. (b) The Division shall review all completed proposed alternative methodology requests submitted. (c) The Division shall notify the operator of its decision, after receipt of the documents requested in this subsection, if their methodology was approved or denied, pursuant to section 2670 of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5, 14552(a) and 14573.51, Public Resources Code. s 2670. Survey Application Processing Time. (a) Within fifteen (15) calendar days from the receipt of the survey application and alternative methodology procedure, if applicable, from an operator of a curbside program requesting approval to use the Division's methodology or an alternative methodology to determine their program's specific individual commingled rate, the Division shall inform the applicant, in writing, that the survey application, and alternative methodology procedure, if applicable, are either complete and accepted for processing, or incomplete. If the survey application, and/or alternative methodology procedure, if applicable, are incomplete, the Division shall indicate, in writing, to the applicant what information or documentation is required. The applicant shall submit the required additional information or documentation, to the Division, postmarked no later than 10 calendar days from the date indicated in the Division's letter requesting additional information or documentation. Material postmarked later than ten (10) calendar days will be rejected and the application will be denied. (b) Within fifteen (15) calendar days after the Division informs the applicant of the receipt of a complete survey application and alternative methodology procedure, if applicable, as indicated in subsection 2670(a) above, the Division shall approve or disapprove the survey application and alternative methodology procedure, if applicable. (c) If the application is disapproved, the applicant may request an appeal pursuant to subsection 2685 of these regulations. (d) The applicant may begin using the approved survey methodology for the specified survey period, after receiving written notification from the Division that the survey application and alternative methodology procedure, if applicable, has been approved. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5, 14552(a) and 14573.51, Public Resources Code; and Section 15376, Government Code. s 2675. Individual Commingled Rate Survey Audit and Results. (a) The Division may audit any applicant's procedures and results of an approved individual commingled rate survey. The Division shall conduct its audit during the scheduled survey week for any applicant. (b) The Division shall conduct audits. To enable the Division to conduct audits, applicants shall retain the pile of material from which the sample was taken, including the sample itself, until the completion of their daily survey. On the day of the audit, the applicant shall provide Division audit staff access to the material immediately after the applicant conducts the survey. If the applicant deviates from the approved survey time, they shall notify the Division immediately, but not less than 24 hours prior to the time of the deviation. (c) If, in each of two separate audits, the Division determines, using standard statistical formulas, that the difference between the applicant's and the Division's proportion of California Redemption Value containers is statistically significant, the Division shall terminate the applicant's individual commingled rate survey. The difference shall be statistically significant, if the applicant's proportion is higher than the Division's, and the Division is 99% confident that the chances of the difference occurring under the applicant's approved study methodology is 5% or less. (1) The Division shall disapprove individual commingled rates that are based on terminated surveys. The Division shall notify the applicant of such termination and disapproval within thirty (30) calendar days of the audit. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5 and 14552(a), Public Resources Code. s 2680. Receipt of Approval or Disapproval and Notification of Changes. (a) Within sixty (60) calendar days after the Division receives the curbside program's final survey results, the Division shall approve or disapprove the program's individual commingled rate. (b) The applicant shall notify the Division, in writing, within ten (10) working days, of the occurrence of either of the following for any material for which the operator has an approved individual commingled rate: (1) Any increase or decrease of twenty (20) percent or more in the total monthly weight from the average weight of the previous three (3) month period; or (2) Any increase or decrease of twenty (20) percent in the total monthly number of customer sites served by the applicant from the average number of customer sites of the previous three (3) month period. (c) Failure to provide this notification may subject the applicant to immediate revocation of the individual commingled rate. (d) Upon notification of operational changes, described in subsections (b)(1) or (b)(2) above, the Division may, upon its sole discretion, review and alter or revoke the individual commingled rate. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14552(a), Public Resources Code; and Section 15376, Government Code. s 2685. Individual Commingled Rate Appeals Process. (a) In the event of the denial of survey application, termination of an individual commingled rate survey, and/or disapproval or revocation of an individual commingled rate, curbside programs may file a formal appeal by writing to the Assistant Director for Recycling within thirty (30) calendar days after the receipt of a Letter of Denial (LED). Appeals submitted after this time period shall be rejected. All written appeals shall include: (1) A copy of the LED; and (2) A detailed explanation of why the determination was in error; and (3) Any other documentation that supports the appeal. (b) A decision on the appeal shall be sent to the program applicant, in writing, within fifteen (15) working days of receipt of the appeal. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14509.5 and 14552(a), Public Resources Code. s 2690. Quality Glass Incentive Payments. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14549.1, Public Resources Code. s 2700. Operation Standards. (a) All certified community service programs shall meet the following requirements: (1) Operate in accordance with the category of certification as approved by the Division and defined in these regulations. (2) In order to remain certified, a community service program must collect or accept a minimum of 500 pounds of aluminum or plastic beverage containers, or 2000 pounds of glass beverage containers every year after becoming certified. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7, Public Resources Code. s 2701. Recordkeeping. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14541(d), 14552 and 14575, Public Resources Code. s 2705. Notification Requirements. (a) In addition to the requirements contained in section 2700(a) above, a certified community service program shall notify the Division prior to any of the following events: (1) Any change in operation. (2) Any change in operator name or contact person, mailing or business address, or telephone number of the operator. (3) Change in the name of the program. (4) Change in the corporate officers, if applicable. (5) Change in the agent for service of process, if applicable. (b) The operator of a certified community service program who includes to be decertified shall submit a written notification to the Division, which includes the proposed effective date. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14511.7, Public Resources Code. s 2710. Applicability. In addition to the general accounting requirements of article 4 of subchapter 2, community service programs shall comply with the accounting and reporting provisions of this article. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7 and 14552, Public Resources Code. s 2711. Recordkeeping. s 2712. Reporting. s 2713. Payments. s 2715. Recordkeeping. Community service programs shall maintain the following records in accordance with the general requirements set forth in section 2085 of subchapter 2 of these regulations. (a) Community service programs which accept or collect empty beverage containers at a specific location or location(s) shall maintain all of the following: (1) A copy of the shipping report prepared by a recycling center or processor; and (2) A copy of the weight ticket prepared by a recycling center or processor; and (3) A log containing a brief written description of any recycling drive or special event at which the program accepts or collects empty beverage containers, including the name of the event, the name and phone number of a contact person from the community service program, the date the event occurred, the material types collected, and an estimate of the weight of each material type collected. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Sections 14511.7 and 14552, Public Resources Code. s 2716. Obtaining Department Approval. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2717. Alternative Methodology Procedures. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2718. Permit Processing Times for Individual Commingled Rate Studies. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 15376, Government Code; Section 14552(a), Public Resources Code. s 2719. Appeals. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14511.7 and 14552(a), Public Resources Code. s 2720. Obtaining Division Approval. Operators of community service programs shall be paid the applicable statewide average commingled rate, determined by the Division, for commingled beverage container material types, unless the Division approves an individual commingled rate for their program. Individual commingled rates may be approved for one or more material-types which have an existing statewide commingled rate. Operators of community service programs who wish to apply for an individual commingled rate shall submit a completed Individual Commingled Rate Application (ICRS-APP (07/00)) in the form and manner required by this section. The applicant shall request approval to conduct an individual commingled rate survey using either the Division's individual commingled rate methodology, specified in subsection (c), or an alternative methodology submitted by the applicant. An operator of a community service program shall conduct surveys on each day the program operates during a one week period. A total of six weekly surveys shall be conducted on a bimonthly basis beginning in October and ending no later than the second full week of the following September. Individual commingled rates that are approved by the Division, shall be effective from January 1 through December 31 of the year following the survey period. (a) At least 60 days prior to the commencement of the surveys, which begin in October, the Division shall notify operators of community service programs of the opportunity to perform an individual commingled rate survey. An operator of a community service program wishing to conduct an individual commingled rate survey shall contact the Division to obtain the Individual Commingled Rate Application (ICRS-APP (07/00)). (b) The Individual Commingled Rate Application (ICRS-APP (07/00)) must be completed and submitted to the Division no later than September 1st. To be considered complete, the survey application shall contain the following information: (1) The organization name and, if applicable, a copy of any fictitious business name statement being used. (2) The operator contact person's name, title, phone number, facsimile number, mailing address, and business address. (3) The survey location address and city, and a brief site description. (4) The survey technician's name and phone number. (5) A selection of either the Division's survey methodology in subsection (c) or an alternative proposed methodology to be submitted by the applicant. (6) The identification of material-types selected to be surveyed, the sample size, and daily sample size for each selected material. (7) The dates of survey weeks and the number of days for specified sample periods. (8) The specific time of the day in which surveys will be conducted. (9) The program category of the certified program to be surveyed. (10) The certification number of the program to be surveyed. (11) The source of material for the certified program to be surveyed. (12) The number of municipalities served by the certified program to be surveyed, if any. (13) The number of customer sites from which survey material is to be collected by the certified program. (14) The frequency that collected material is sold. (15) A brief description of the certified program. (16) Declarations and signatures of applicant. (c) The Division's suggested methodology requires the following: (1)The program shall determine the annual survey sample size for each material type based on the chart below. Annual Survey Sample Size Aluminum 6600 Glass 4500 Plastic (all resins) 3000 (2) Upon determining the annual survey sample size, the program shall calculate the daily sample size by dividing the annual survey sample size, specified in the chart above, by the total number of days the survey will be conducted during the entire annual survey. Once the daily sample size is determined for each material type, this will remain the daily sample size throughout the entire annual survey period for that material type. (3) Surveys shall be conducted for one regular workweek during each two-month sample period at pre-established dates, times, and places as indicated on the Individual Commingled Rate Application (ICRS-APP (07/00)) submitted to the Division. Surveys shall not be scheduled for weeks containing holidays or other days the program is not in operation, and shall be equally distributed throughout the survey period. (4) Daily samples shall be collected on a random basis from the material which has been received exclusively from programs approved for the survey. Only whole containers may be surveyed. (5) Upon selection and removal of containers for the daily sample, the applicant shall perform a complete sample analysis of counting, sorting, and weighing containers. In performing a sample analysis, weight shall be measured, recorded, and reported in pounds and fractions thereof. All weighing in this state shall be done on a scale or other device approved, tested and sealed in accordance with Division 5 of the Business and Professions Code (Weights and Measures) and any applicable regulations thereunder. (6) The results of the sample analysis shall be legibly, accurately, and completely recorded on the Daily Data Collection Sheet (DDCS (07/00)), which shall contain the following information: (A) The year the rate will be effective. (B) The two-month sample period in which each one-week survey is conducted. (C) The program name. (D) The survey day and date. (E) The certification and/or registration numbers. (F) Identification of the material type surveyed. (G) The total quantity of containers surveyed, and their total weight. (H) The quantity and weight of CRV containers surveyed that have a volume less than 24 ounces. (I) The quantity and weight of CRV containers surveyed that have a volume of 24 ounces or more. (J) The quantity and weight of non-CRV containers surveyed. (K) The daily totals for each column. (7) At the conclusion of each weekly survey, the applicant shall complete a Weekly Summary Sheet (WSS (07/00)) which shall contain the following information: (A) The year the rate will be effective. (B) The two-month sample period of the weekly survey (C) The program name. (D) The survey week by dates. (E) The certification and/or registration numbers. (F) Identification of the material type surveyed. (G) The survey date summarized on that line. (H) The total quantity of containers surveyed on that date, and their total weight. (I) The quantity and weight of CRV containers surveyed on that date that have a volume less than 24 ounces. (J) The quantity and weight of CRV containers surveyed on that date that have a volume of 24 ounces or more. (K) The quantity and weight of non-CRV containers surveyed on that date. (L) The weekly totals for each column. (8) The completed original Daily Data Collection Sheet, and the Weekly Summary Sheet shall be confirmed to be complete, accurate, and consistent with the methodology approved for that program and shall be submitted to the Division for review, verification, and approval at the conclusion of each two-month survey period and must be postmarked no later than the 15th day of the month following the survey period. (9) At the conclusion of the annual survey period, the applicant shall submit an Affidavit (AFD (07/00)) to confirm that all information is complete, accurate, and consistent with the methodology approved for that program. (d) Community service programs proposing to alter the Division's methodology or create their own alternative methodology must apply for Division approval, in advance, pursuant to section 2725 of these regulations. A proposed alternative methodology must equal the Division's methodology in the accuracy of estimation and level of confidence in the estimation. The alternative methodology must be described in adequate detail to determine the accuracy of estimation and level of confidence in the estimation. (e) Determination by the Division that a program has deviated from an approved methodology, demonstrated a significant lack of quality control, or misrepresented their survey results shall result in the termination of the individual commingled rate survey and/or disapproval or revocation of the individual commingled rate and a reversion to the statewide average commingled rate. The Division's adverse action may be appealed pursuant to section 2745 of these regulations. (1) A significant lack of quality control is demonstrated when five (5) percent or more of the sample data submitted by an applicant is found to be incorrect by the Division, and is deleted from the survey pursuant to Section 2720(e)(3) below because of the following: (A) The cumulative weight of all components of a sample deviates by more than an acceptable range of accuracy, as defined in Section 2720(e)(2) below, from the total sample taken for that material type and/or (B) The cumulative count of containers from all components of a sample does not equal the total sample count for that material type. (2) An acceptable range of accuracy, applicable to Section 2720(e)(1)(A) above, is the smallest variance or increment of accuracy of the applicant's scale multiplied by 2.0. (3) The Division, upon its sole discretion, may delete incorrect data samples. (f) The Division shall disapprove individual commingled rates that are based on terminated surveys. The Division shall notify the applicant of such disapproval within thirty (30) calendar days of the determination that a program has deviated from an approved methodology, demonstrated a lack of quality control, or misrepresented survey results. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14520 and 14552(a), Public Resources Code. s 2721. Recordkeeping. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14530.5, 14537, 14550(b) and (c), 14561, 14571.9 and 14572.5, Public Resources Code. s 2722. Reporting. s 2722.1. Reporting Additional Information. s 2723. Payments. s 2725. Alternative Methodology Procedures. (a) Community service programs choosing to use an alternative survey methodology shall apply to the Division for approval. Operators shall complete and submit to the Division the following documents, in originals: (1) A completed survey application as specified in Section 2720(b); (2) A written description of the alternative methodology procedure in detail, the steps necessary to perform the alternative survey methodology, including the equipment to be used, materials to be collected, how the materials will be analyzed, location where sampling will occur, time and days of the survey, and any other relevant details that are necessary to arrive at the individual commingled rate. The proposed alternative methodology procedure must be as detailed and inclusive as the survey methodology provided by the Division. (b) The Division shall review all completed proposed alternative methodology requests submitted. (c) The Division shall notify the operator of its decision, after receipt of the documents requested in this subsection, if their methodology was approved or denied, pursuant to section 2730 of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14520 and 14552(a), Public Resources Code. s 2730. Survey Application Processing Time. (a) Within fifteen (15) calendar days from the receipt of the survey application, and alternative methodology procedure, if applicable, from an operator of a community service program requesting approval to use the Division's methodology or an alternative methodology to determine their program's specific individual commingled rate, the Division shall inform the applicant, in writing, that the survey application, and alternative methodology procedure, if applicable, are either complete and accepted for processing, or incomplete. If the survey application, and/or alternative methodology procedure, if applicable, are incomplete, the Division shall indicate, in writing, to the applicant what information or documentation is required. The applicant shall submit the required additional information or documentation, to the Division, postmarked no later than ten (10) calendar days from the date indicated in the Division's letter requesting additional information or documentation. Material postmarked later than ten (10) calendar days will be rejected and the application will be denied. (b) Within fifteen (15) calendar days after the Division informs the applicant of the receipt of a complete survey application and alternative methodology procedure, if applicable, as indicated in subsection 2730(a) above, the Division shall approve or disapprove the survey application and alternative methodology procedure, if applicable. (c) If the application is disapproved, the applicant may request an appeal pursuant to section 2745 of these regulations. (d) The applicant may begin using the approved survey methodology for the specified survey period, after receiving written notification from the Division that the survey application and alternative methodology procedure, if applicable, has been approved. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14520 and 14552(a), Public Resources Code; and Section 15376, Government Code. s 2731. Recordkeeping. s 2732. Reporting. s 2733. Payments to Consumers, Curbside Programs, Nonprofit Dropoff Programs, and Dropoff or Collection Programs. s 2734. Receipt of Funds. s 2735. Individual Commingled Rate Survey Audit and Results. (a) The Division may audit any applicant's procedures and results of an approved individual commingled rate survey. The Division shall conduct its audit during the scheduled survey week for any applicant. (b) The Division shall conduct audits. To enable the Division to conduct audits, applicants shall retain the pile of material from which the sample was taken, including the sample itself, until the completion of their daily survey. On the day of the audit, the applicant shall provide Division audit staff access to the material immediately after the applicant conducts the survey. If the applicant deviates from the approved survey time, they shall notify the Division immediately, but not less than 24 hours prior to the time of the deviation. (c) If, in each of two separate audits, the Division determines, using standard statistical formulas, that the difference between the applicant's and the Division's proportion of California Redemption Value containers is statistically significant, the Division shall terminate the applicant's individual commingled rate survey. The difference shall be statistically significant, if the applicant's proportion is higher than the Division's, and the Division is 99% confident that the chances of the difference occurring under the applicant's approved study methodology is 5% or less. (1) The Division shall disapprove individual commingled rates that are based on terminated surveys. The Division shall notify the applicant of such termination and disapproval within thirty (30) calendar days of the audit. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14552(a), Public Resources Code. s 2740. Receipt of Approval or Disapproval and Notification of Changes. (a) Within sixty (60) calendar days after the Division receives the community service program's final survey results, the Division shall approve or disapprove the program's individual commingled rate. (b) The applicant shall notify the Division,in writing, within ten (10) working days, of the occurrence of either of the following for any material for which the operator has an approved individual commingled rate: (1) Any increase or decrease of twenty (20) percent or more in the total monthly weight from the average weight of the previous three (3) month period; or, (2) Any increase or decrease of twenty (20) percent in the total monthly number of customer sites served by the applicant from the average number of customer sites of the previous three (3) month period. (c) Failure to provide this notification may subject the applicant to immediate revocation of the individual commingled rate. (d) Upon notification of operational changes, described in subsections (b)(1) or (b)(2) above, the Division may, upon its sole discretion, review and alter or revoke the individual commingled rate. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14552(a), Public Resources Code; and Section 15376, Government Code. s 2741. Recordkeeping. s 2742. Reporting. s 2743. Payments. s 2744. Cancellation. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Sections 14572 and 14573.5, Public Resources Code. s 2745. Individual Commingled Rate Appeals Process. (a) In the event of the denial of a survey application, termination of an individual commingled rate survey, and/or disapproval or revocation of an individual commingled rate, community service programs may file a formal appeal by writing to the Assistant Director for Recycling within thirty (30) calendar days after the receipt of a Letter of Denial (LED). Appeals submitted after this time period shall be rejected. All written appeals shall include: (1) A copy of the LED; and (2) A detailed explanation of why the determination was in error; and (3) Any other documentation that supports the appeal. (b) A decision on the appeal shall be sent to the program applicant, in writing, within fifteen (15) working days of receipt of the appeal. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14552(a), Public Resources Code. s 2750. Exemption Guidelines. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Section 14571.8, Public Resources Code. s 2760. Containers Per Pound Rate. s 2770. Commingled Rate. s 2800. Exemption Guidelines. (a) If the number of convenience zones being reviewed for exemption,pursuant to Section 14571.8 of the Act, exceeds the number of exemptions available pursuant to Section 14571.8(d) of the Act, the Divisionshall consider exemptions in the following order of priority: (1) all exemptions specifically applied for, in writing, or on the formprovided by the Division (Form #CZ-1 (Rev.8/00)) shall contain all ofthe following information: (A) The name, mailing address and phone number of the applicant. (B) The company or organization which the applicant represents, ifapplicable. (C) The name of a contact person if different from the applicant. (D) The company name and address of the supermarket which is thefocal point of each convenience zone for which the applicant is seekingan exemption. (E) A statement justifying the request for an exemption, pursuant toSection 14571.8 of the Act. (F) The signature and title (if applicable) of the applicant and the dateof signature. (2) newly established convenience zones and convenience zoneswhich have become unserved, in order by date in which the recycling facility ceased operation. (b) If the Division determines that the exemption cap established bySection 14571.8(d) of the Act has been reached, the Division shall thereafter serve all dealers in convenience zones which become unserved, orare newly created, with the notice specified at Section 14571.7(a). (c) After the exemption cap has been reached, only those conveniencezones which submit a Form #CZ-1 or a letter containing all specified information pursuant to Section 2800(a)(1) will be considered. Forms#CZ-1 or letters containing all specified information pursuant to Section2800(a)(1) shall be considered in the order received as exemptions become available. (d) The Division shall review exemption requests, pursuant to PublicResources Code Section 14571.8(b), at a minimum, every six months.Prior and subsequent to each exemption decision, the Division shall mailnotice of the proposed convenience zone exemption to each of the following persons: (1) Each person who has submitted a Form #CZ-1 or a letter containing all specified information pursuant to Section 2800(a)(1); and (2) Each dealer located within the convenience zones which are beingconsidered for an exemption; and (3) Each person who has specifically requested notice of such actions. (e) The persons enumerated in section (d) above shall have 30 daysfrom the date of the notice to submit written comments to the Divisionregarding the proposed convenience zone exemption. Note: Authority cited: Sections 14530.5 and 14536, Public Resources Code. Reference: Section 14571.8, Public Resources Code. s 2805. Exemption Revocation Guidelines. (a) The Division on its own motion may revoke a convenience zoneexemption, or any interested person may petition the Division, on a formprovided by the Division (Convenience Zone Exemption RevocationApplication Form #CZ-2 (Rev. 8/00)) or in a letter to the Division, to revoke the exemption for any exempt convenience zone. The departmentwill only consider petitions submitted in writing on either the form#CZ-2 or in a letter, which shall contain all of the following information: (1) The name, complete mailing address and phone number of the petitioner. (2) The name, complete mailing address and phone number of thecompany or firm which the petitioner represents, if applicable. (3) The company name and street address of the supermarket whichis the focal point of the exempt zone which is the subject of the petition. (4) A statement of the change in condition(s) or other rationale whichforms the basis for the petitioner's request. (5) The signature and title (if applicable) of the petitioner and the date of signature. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public ResourcesCode. Reference: Section 14571.8, Public Resources Code. s 2810. Granting of Exemptions. Note: Authority cited: Sections 14530.5(b) and 14536(b), Public Resources Code. Reference: Section 14571.8, Public Resources Code. s 2815. Eligibility. s 2820. Pacific Beach Pilot Mobile Recycling Program. Upon selection of an applicant, the Division shall certify one recycling center operator to establish a pilot mobile recycling program in the Pacific Beach area within the City of San Diego. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Section 14571.4, Public Resources Code. s 2825. General Operating Requirements for the Pacific Beach Pilot Mobile Recycling Program. (a) All dealers in the Pacific Beach area of the City of San Diego shall comply with sections 14571.6 and 14571.7 of the Public Resources Code if, at any time, the Pacific Beach Pilot Mobile Recycling Program does not have an operator. (b) Unless expressly specified otherwise in Public Resources Code Section 14571.4, the operator of the Pacific Beach Pilot Mobile Recycling Program is not exempt from compliance with other provisions of the Act or Regulations. (c) The operator of the Pacific Beach Pilot Mobile Recycling Program shall be eligible to apply for one handling fee payment per month, based upon the combined logs and receipts from consumer transactions only, at the five recycling locations approved by the Division in the Pacific Beach area of the City of San Diego. (d) If the Division terminates an operator's certification before January 1, 1997, the Division shall give a thirty (30) day notice to the operator before the effective termination date. The Division may terminate certification prior to January 1, 1997, if the operator violates the terms of the Division's regulations or its agreement with the Division, including such acts as: (1) Failure to operate one (1) day per week, eight (8) hours per day, at each of the five (5) locations approved by the Division. (2) Failure to operate a minimum of five hours per week occurring during periods other than from Monday to Friday, from 9:00 a.m. to 5:00 p.m. (3) Failure to submit to the Department a copy of all shipping reports completed by the receiver for transactions of empty beverage containers recycled in the Pacific Beach area of the City of San Diego within five (5) working days of the receiver's signature date on the shipping report. (4) Failure to keep records in accordance with sections 2525 and 2530 of subchapter 6 of these regulations. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14571.4, 14571.6 and 14571.7, Public Resources Code. s 2850. Quality Glass Incentive Payments. (a) The Division may pay a quality glass incentive payment, as determined by the Division, to any entity certified pursuant to the Act for glass which is collected by curbside programs and color-sorted and substantially free of contamination. Payments shall be made directly to the certified entity that color-sorts the glass beverage containers for recycling. (b) For glass beverage containers that are color-sorted prior to completion of the Shipping Report (DR 6 (11/05)), the eligible sorting facility shall be identified on the Shipping Report, as specified in sections 2425(e), or 2530(f) and the Shipping Report (DR 6 (11/05)) shall constitute the claim for the quality glass incentive payment. (c) For glass beverage containers that are color-sorted subsequent to completion of the Shipping Report Form, the certified entity that claims a quality glass incentive payment for color-sorted glass shall submit a Quality Glass Incentive Payment Claim Form (DOR 56 (01/02)) to the Division for each calendar month in which the quality glass incentive payment is being claimed. To be eligible to submit Quality Glass Incentive Payment Claim Forms (DOR 56 (01/02)), the sorting facility shall submit a request and receive approval from the Division for authorization to submit claims. (1) The request for authorization must include the methodology developed by the sorting facility to attribute the color-sorted glass beverage container materials to the types of programs from which they were received to ensure that glass materials collected by sources other than curbside programs are excluded from the amount claimed for quality glass incentive payments. (2) The Division shall notify the applicant in writing within fifteen (15) working days of receipt of the application, or receipt of additional information if the application was initially incomplete, that it is either: (A) Complete and accepted for further review, or (B) Incomplete and the reasons for the deficiency. (3) The Division shall review and consider each request for authorization to submit claims for quality glass incentive payments for post shipping-report color-sorted glass materials and issue a written approval or denial within forty-five (45) calendar days from receipt of the complete and accepted request. Upon approval, the authorization to submit claims for quality glass incentive payments for post shipping-report color-sorted glass materials, as specified in Section 2850(c), shall be valid for a period of three (3) years from the date of approval, or until such time as the authorization is surrendered by the sorting facility, or suspended or revoked by the Division. (4) Reasons for denying a request for authorization, or for suspending or revoking an approved authorization may include, but shall not be limited to any of the following: (A) The sorting facility does not ensure that mixed color glass received from entities other than curbside programs are excluded from the claim; (B) The sorting facility does not account for each incoming load of mixed color glass; (C) The claim for quality glass incentive payment is not based on the color-sorted weight; (D) The sorting facility fails to maintain inventory records that show shipped and received materials by color; and, (E) The sorting facility has been found to be in violation of any provision of the Act, or any regulations adopted pursuant to the Act. (5) A sorting facility may request reconsideration of a denial, suspension, or revocation of an authorization by submitting a written request for reconsideration to the Division within thirty (30) calendar days of being served with a denial, revocation, or suspension of an authorization to submit claims for quality glass incentive payments for post shipping report color-sorted glass materials. All written requests shall include: (A) A copy of the notice denying the authorization to submit claims for quality glass incentive payments for post shipping-report color-sorted glass materials; (B) A detailed explanation of the grounds for reconsideration; and, (C) Any other documentation that supports the request. (6) A written decision on the request for reconsideration shall be sent to the sorting facility within twenty (20) calendar days of the receipt of the request. (7) To be eligible for payment, the Quality Glass Incentive Payment Claim Form (DOR 56 (01/02)) must be postmarked no later than the first day of the second month following the reporting month. Claims postmarked after this date or incomplete claims may be denied payment. A separate claim shall be completed by each certified entity. (8) Each Quality Glass Incentive Payment Claim Form (DOR 56 (01/02)) must include all of the following information: (A) The month for which the claim is submitted; (B) The facility name, mailing address, and certification number of the entity submitting a claim for quality glass incentive payments; (C) The name and phone number of a contact person; (D) The redemption weight to tenths of tons of color-sorted glass claimed; (E) The signature and title of an authorized representative; and (F) The date the report was signed by the authorized representative under penalty of perjury. (d) The quality glass incentive payment may be denied or reduced if the Division has prevailed against the certified entity in a civil or administrative action and money is owed to the Division as a result of the action. (e) For the purpose of Section 14549.1 of the Act and these regulations, the following definitions shall apply: (1) "Color-sorted glass" means glass that has been sorted into flint, amber, or green fractions, and would be acceptable to a beneficiating processor. (2) "Substantially free of contamination" means glass that has been substantially cleaned of non-glass contaminants. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14549.1 and 14552, Public Resources Code; and Section 15376, Government Code. s 2900. Determinations. The Division shall make, and give notice of, the following determinations. For purposes of this section, notice shall be deemed complete upon the date of the postmark or date of deposit in the U.S. mail, whichever is earlier. Notices shall be mailed to the last known address of the intended recipient. (a) Statistics. (1) Determination. The Division shall determine the following statistics: (A) Containers per pound. The average number of empty beverage containers per pound, by material type. This number is used to calculate the quantity of beverage containers for certain records, reports, and payments required pursuant to this chapter. (B) Commingled rate. The average percentage of empty beverage containers in a commingled load of containers, by material type. The Division may determine more than one commingled rate. The Division shall also determine the geographic area within which each commingled rate shall apply. This rate shall be used to calculate the quantity of empty beverage containers for certain records, reports, and payments required pursuant to this chapter. (2) Notice. Except for the initial determination of the above statistics after which the Division shall provide notice of not less than 10 days prior to their effective date or dates, the Division shall provide notice of the initial determination and any changes to the above statistics no less than 30 days prior to their effective date or dates, as follows: (A) Recipients. Notice of any such determination shall be provided to persons certified pursuant to subchapter 2 of these regulations, and to any persons requesting such notice in writing. (B) Contents. The notice shall state the relevant statistics themselves and their effective date. (b) Notice of redemption payment or refund value. The Division shall provide notice of any change pursuant to section 14560 of the Act to the redemption payment or refund value per container, by material type, as follows. (1) Timing: Notice shall be given no less than 30 days prior to the effective date of the change. (2) Recipients: Notice shall be mailed to the last known addresses of the following parties: (A) Persons certified pursuant to subchapter 2 of these regulations. (B) Distributors having submitted a report to the Division within the previous 6 months. (C) Persons requesting such notice in writing. (3) Contents: The notice shall state the changed redemption payment and/or refund value by material type, and its effective date. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14551, 14553, 14560 and 14581, Public Resources Code. s 2920. Containers Per Pound Rate. The method used to calculate the average number of empty beverage containers per pound, by material type, shall include sampling procedures which consider, at a minimum, the following factors: (a) Weight by separately aggregated size categories of containers (same size) in their original manufactured and unfilled state. (b) Weight by variously mixed aggregated size of containers (different sizes) in their original manufactured and unfilled state. (c) Weight by separately aggregated size categories of containers (same size) in their post-filled state. (d) Weight by variously mixed aggregated size of containers (different sizes) in their post-filled state. (e) Weight by individually mixed aggregated size of container loads in their post-filled state as presented by consumers at recycling centers (selected statewide on a random basis). (f) Volume of sales at wholesale and retail levels in various regions of the state. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14552 and 14572, Public Resources Code. s 2930. Commingled Rate. The method used to calculate the commingled rate per pound, by material type, shall include sampling procedures which consider, at a minimum, the following factors: (a) Weight and analysis of randomly mixed pre-filled empty beverage containers and other pre-filled containers of the same size in the original manufactured and unfilled state. (b) Weight and analysis of individual loads of empty beverage containers and other containers in their post-filled state as presented by consumers at recycling centers (selected statewide on a random basis), excluding reverse vending machines. (c) Weight and analysis of loads of empty beverage containers and other containers in their post-filled state redeemed or returned by consumers to reverse vending machines (selected statewide on a random basis). (d) Weight and analysis of loads presented to processors by curbside programs, community service programs and dropoff or collection programs. Note: Authority cited: Sections 14530.5(b) and 14536, Public Resources Code. Reference: Sections 14506.7, 14549.5, 14552 and 14572, Public Resources Code. s 2945. Confidentiality of Information. (a) The Division shall disclose only aggregated survey information for three or more firms to the public. (b) Individual recycling center, processor, or scrap purchaser survey data exempt from public disclosure includes: trade secrets; financial statements; investment data; proprietary information relating to specific sales, purchases, revenues or expenses; or other information as permitted by section 6255 of the Public Records Act (Government Code section 6255). (c) Upon receipt of a written request for records pertaining to information obtained by the Division pursuant to this chapter, the Division shall determine whether the requested information may be exempt from disclosure. The Division shall notify the requesting party of its determination within 10 days of the receipt of the written request as required by the Public Records Act (Government Code section 6256). If the Division determines that the information is not exempt from disclosure, it shall promptly provide it to the requesting party in accordance with the procedures of the Public Records Act. Note: Authority cited: Section 14530.5(b) and (c), Public Resources Code. Reference: Sections 14518.5, 14551(b) and 14575(a), (b) and (d), Public Resources Code; and Sections 6250-6267, Government Code. s 2950. Eligibility. (a) Programs and operations eligible to receive processing payments include: (1) recycling centers certified pursuant to these regulations, (2) curbside programs which hold a valid identification number issued by the Division, (3) dropoff or collection programs certified pursuant to these regulations, (4) community service programs certified pursuant to these regulations. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14518.5, 14573, 14573.5, and 14575(a), (b) and (d), Public Resources Code. s 2955. Scrap Value Calculation. (a) The Division shall survey processors to determine statewide weighted average scrap values paid for each beverage container material type (in the case of plastic, for each resin code type) on a monthly basis. (b) The Division shall calculate the statewide weighted average scrap value using a statistically significant survey of the processors pursuant to paragraph (a). (c) The statewide weighted average scrap value shall be equal to the quotient of the total net payment by the sampled processors to nonaffiliated recyclers divided by the total volume of beverage container material types purchased by the sampled processors from nonaffiliated recyclers, excluding beverage container material types processors receive in a form mixed with other beverage container material types and/or material types not covered by the Act. (d) The scrap values reported in (c) above will then be used to determine a per container statewide weighted average scrap value for each container type. (e) The Division may periodically sample and review processors' individual scrap purchases to verify the accuracy of the aggregated weights and aggregated net payments reported on the monthly Scrap Value Purchases Survey Form DOR - SV (10/00). The review may include examination of the records maintained by a sample of the selling entities. (f) If, through this review the Division determines that either or both of the sampled weights and sampled net payments reported by a processor differ by more than ten percent (.10) from those recorded by the sellers, the Division shall adjust the reported aggregate weights or aggregate net payments or both to reflect the discovered difference. Note: Authority cited: Sections 14530.5(b), 14536 and 14536.1, Public Resources Code. Reference: Sections 14504, 14515.5, 14518.5, 14519.5, 14526, 14538(b)(8), 14539(a)(9), 14575 and 18015, Public Resources Code. s 2960. Allowable Costs for Recycling Centers. (a) On and after January 1, 2004, and every second year thereafter, the Division shall survey a statistical sample of recycling centers to determine statewide average allowable costs per container type. (b) Allowable costs for calculation of the processing fee and processing payment shall include the actual costs of receiving, handling, processing, and storing and transporting postfilled beverage containers. Allowable costs also include maintaining equipment necessary for the above activities. More specifically these costs shall include, but not be limited to: (1) labor, (2) property taxes, (3) depreciation, (4) utilities, (5) supplies, (6) fuel, (7) insurance, (8) interest, (9) general business overhead exclusive of administrative costs, (10) facilities and equipment rent or lease, (11) maintenance, (12) transportation, (13) disposal costs. (c) The scrap price paid to the consumer by the recycling center shall not be included in allowable costs. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14518.5, 14526, 14573.5 and 14575(a), (b), (c) and (k), Public Resources Code. s 2965. Allowable Costs for Processors. (a) Allowable costs for calculation of the processing fee shall include the actual costs of receiving, handling, processing, storing, and maintaining equipment, necessary for accepting, canceling, and readying postfilled beverage containers prior to shipment to scrap purchasers. More specifically, these costs shall include, but not be limited to: (1) labor, (2) property taxes, (3) depreciation, (4) utilities, (5) supplies, (6) fuel, (7) insurance, (8) interest, (9) general business overhead exclusive of administrative costs, (10) facilities and equipment rent or lease, (11) maintenance, (12) disposal costs pursuant to (c) below, (13) transportation. (b) The scrap price paid to recycling centers by processors shall not be included in allowable costs. (c) The Division shall calculate a statewide average disposal cost per container for each beverage container type if the scrap value of a container type is negative as determined in section 2955(c) of these regulations. (1) When 200% of the disposal cost is less than the absolute value of scrap value pursuant to section 2955 of these regulations, the Division shall use disposal cost, not scrap value, in the calculation of processing fees and processing payments. (2) When 200% of the disposal cost is greater than or equal to the absolute value of scrap value pursuant to section 2955 of these regulations, the Division shall use only scrap value in the calculation of processing fees and processing payments. (3) If the scrap price is zero, the Division shall use disposal cost, not scrap value in the calculation of processing fees and processing payments. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14501(d) and (h), 14518.5, 14526, 14573.5 and 14575(a), (b), (c) and (k), Public Resources Code. s 2970. Allocation of Allowable Costs. (a) The Division shall determine allowable costs per container pursuant to sections 2960 and 2965 of this subchapter that can be directly allocated to each beverage container type. (For example: depreciation and labor expenses for operating an aluminum can crusher shall be directly allocated to the allowable costs of aluminum beverage containers.) (b) Allowable costs pursuant to sections 2960 and 2965 of this subchapter that cannot be directly allocated shall be allocated using the direct labor cost percentages for each container type as determined in the allowable cost surveys pursuant to sections 2960 and 2965 of this subchapter. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14518.5 and 14575(a) and (b), Public Resources Code. s 2975. Reasonable Financial Return Calculation. The statewide average reasonable financial return for recycling centers shall be equal to the statewide average allowable costs calculated in section 2960 of this subchapter, multiplied by the average return on costs for the scrap and waste materials industry as determined from data contained in the most recent Dun and Bradstreet Standard Three Year Norm Report (Published by Dun and Bradstreet Credit Services). Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14501(f) and (g), 14518.5 and 14575(a) and (b), Public Resources Code. s 2976. Consumer Price Index. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14501(f) and (g), 14518.5 and 14575(a) and (b), Public Resources Code. s 2980. Processing Payments. On and after January 1, 2000, the processor shall pay the operators of curbside programs, dropoff or collection programs, community service programs, and certified recycling centers, the entirety of the processing payment multiplied by the number of containers accepted from the operator by the processor. Note: Authority cited: Section 14530.5(b), Public Resources Code. Reference: Sections 14518.5, 14573.5 and 14575(a), (b) and (h)(3), Public Resources Code. s 2981. Calculation Of Reduced Processing Fee Payments. Note: Authority cited: Sections 14530.5(b), 14581.5(e)(2) & (g), Public Resources Code. References cited: Sections 14575 and 14581.5, Public Resources Code. s 2985. Notification of Changes. (a) When the Division adopts a revised, terminated or newly established processing fee and processing payment pursuant to Public Resources Code section 14575, the Division shall mail written notification within fifteen (15) days of adoption, and at least 15 days prior to the effective date of the proposed action(s), to all interested persons. (b) The Division shall mail written notification to certified processors, who participated in the scrap value survey, of the average monthly scrap value for each container material type pursuant to Section 2955 of the regulations. This notification will be sent within sixty (60) days of the end of the reporting month. Note: Authority cited: Section 14530.5(b) and (c), Public Resources Code. Reference: Sections 14518.5 and 14575(a), (b) and (f)(1), Public Resources Code. s 3000. Definitions. All terms used in these regulations shall have the same meaning as provided in Public Resources Code sections 10210 through 10223. General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Sections 10200-10277, Public Resources Code. s 3010. Eligibility. A real estate appraisal pursuant to Public Resources Code section 10260 must be completed prior to acting upon any grant application under the Agricultural Land Stewardship Program (ALSP) involving the acquisition of interests in real property. The cost of the appraisal is to be borne by the applicant. However, if the applicant is successful in obtaining a grant, the cost of the appraisal shall be considered a direct cost pursuant to Public Resources Code section 10231 and may be reimbursed at the discretion of the Director, based upon the fiscal considerations of a specific project. General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Section 10231, Public Resources Code. s 3011. Local Government Support for Agricultural Land Conservation. In meeting the requirement of Public Resources Code section 10244, a local government shall include a summary of any specific actions taken in support of its stated goals and objectives for agricultural land conservation, including but not limited to specific planning and zoning decisions that have been taken that demonstrate this commitment. General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Section 10244, Public Resources Code. s 3012. Potential Easement Impacts upon Neighboring Lands. In considering the selection criteria for ALSP applicants, information providing evidence that, by acquisition of an agricultural conservation easement for a given parcel or parcels, long term conservation of neighboring lands through any combination of geographic, zoning, or other considerations can logically be expected without incurring costs of additional easement acquisitions, will be considered pursuant to Public Resources Code section 10252(l). General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Section 10252( l), Public Resources Code. s 3013. Temporary Purchase of Fee Interests. An applicant for funding of a temporary purchase of a fee interest in anticipation of creating an agricultural conservation easement pursuant to Public Resources Code section 10239 shall satisfy the criteria otherwise applicable to easements as provided in this chapter as well as the Agricultural Lands Stewardship Program Act of 1995. General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Sections 10239, 10251 and 10252, Public Resources Code. s 3014. Easement Enforcement. Agricultural conservation easements funded through this program shall provide that in the event the holder of the easement fails to enforce any of the terms of the easement, as determined in the sole discretion of the Director of the Department, the Director of the Department and his or her successors and assigns shall have the right to enforce the terms of the easement, including limits on significant impairment of agricultural productivity and multiple uses created by incidental activities as specified in Public Resources Code section 10262. Multiple uses shall be those as defined in Public Resources Code section 10252(b). General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Section 10262, Public Resources Code. s 3015. Easement Transfer. Agricultural conservation easements funded through this program shall provide that in the event that a local government or nonprofit organization holding an easement that was acquired with the use of ALSP funds is dissolved, the Department shall identify and select an appropriate public or private entity to whom the easement shall be transferred pursuant to Public Resources Code section 10235(b). In cases where the easement was acquired utilizing ALSP funds as well as funds from other sources, the Department shall work with the other contributing sources to identify and select an appropriate entity to whom the easement shall be transferred. General Materials (GM) - References, Annotations, or Tables Note: Authority cited: Section 10240(b), Public Resources Code. Reference: Section 10235(b), Public Resources Code. s 3500. Purpose. It is the purpose of this subchapter to establish state policy for the reclamation of mined lands and the conduct of surface mining operations in accord with the general provisions set forth in Public Resources Code, Division 2, Chapter 9, Section 2710 et seq. (Surface Mining and Reclamation Act of 1975, as amended by Statutes of 1980). Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2710-2795, Public Resources Code. s 3501. Definitions. The following definitions as used herein shall govern the interpretation of these regulations: Agricultural Activity. The cultivation and tillage of the soil, dairying, the production, cultivation, growing and harvesting of any agricultural commodity, the raising of livestock or poultry, and any practices performed by a farmer or on a farm as incident to or in conjunction with those farming operations, including preparation of these products for market. Angle of Repose. The maximum angle of slope (measured from horizontal plane) at which loose cohesionless material will come to rest on a pile of similar material. Backfill. Earth, overburden, mine waste or imported material used to replace material removed during mining. Borrow Pits. Excavations created by the surface mining of rock, unconsolidated geologic deposits or soil to provide material (borrow) for fill elsewhere. Critical Gradient. The maximum stable inclination of an unsupported slope under the most adverse conditions that it will likely experience, as determined by current engineering technology. Excavations for On-Site Construction. Earth material moving activities that are required to prepare a site for construction of structures, landscaping, or other land improvements (such as excavation, grading, compaction, and the creation of fills and embankments), or that in and of themselves constitute engineered works (such as dams, road cuts, fills, and catchment basins). Grading. To bring an existing surface to a designed form by cutting, filling, and/or smoothing operations. Minerals. Any naturally occurring chemical element or compound, or groups of elements and compounds, formed from inorganic processes and organic substances, including, but not limited to, coal, peat, and bituminous rock, but excluding geothermal resources, natural gas, and petroleum. Person. Any individual, firm, association, corporation, organization, or partnership, or any city, county, district, or the state or any department or agency thereof. Reclamation Plan. The applicant's (operator's) completed and approved plan for reclaiming the lands affected by his surface mining operations conducted after January 1, 1976, as called for in Section 2772 of the Act. Resoiling. The process of artificially building or reconstructing a soil profile. Stream Bed Skimming. Excavation of sand and gravel from stream bed deposits above the mean summer water level or stream bottom, whichever is higher. Surface Mining Operations. In addition to the provisions of Section 2735 of the Act, borrow pitting, streambed skimming, segregation and stockpiling of mined materials (and recovery of same) are deemed to be surface mining operations unless specifically excluded under Section 2714 of the Act or Section 3505 of these regulations. Topsoil. The upper part of the soil profile that is relatively rich in humus, which is technically known as the A-horizon of the soil profile. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2726-2735, Public Resources Code. s 3502. The Reclamation Plan. (a) Objectives. Reclamation plans shall be developed to attain the objectives of Public Resources Code Section 2712(a)-(c). (b) Reclamation Plan Elements. In addition to the information required by Public Resources Code Section 2772, the following elements shall be included in the reclamation plan: (1) The environmental setting of the site of operations and the effect that possible alternate reclaimed site conditions may have upon the existing and future uses of surrounding lands. (2) The public health and safety, giving consideration to the degree and type of present and probable future exposure of the public to the site. (3) The designed steepness and proposed treatment of the mined lands' final slopes shall take into consideration the physical properties of the slope material, its probable maximum water content, landscaping requirements, and other factors. In all cases, reclamation plans shall specify slope angles flatter than the critical gradient for the type of material involved. Whenever final slopes approach the critical gradient for the type of material involved, regulatory agencies shall require an engineering analysis of the slope stability. Special emphasis on slope stability and design shall be necessary when public safety or adjacent property may be affected. (4) Areas mined to produce additional materials for backfilling and grading, as well as settlement of filled areas, shall be considered in the reclamation plan. Where ultimate site uses include roads, building sites, or other improvements sensitive to settlement, the reclamation plans shall include compaction of the fill materials in conformance with good engineering practice. (5) Disposition of old equipment. (6) Temporary stream or watershed diversions. (c) Adequacy. In judging the adequacy of a particular reclamation plan in meeting the requirements described herein and within the Act, the lead agency shall consider the physical and land-use characteristics of the mined lands and their surrounding area pursuant to Public Resources Code Section 2773. (d) Each surface mining operation as defined in Public Resources Code Section 2735 and Title 14 California Code of Regulations Section 3501, shall have no more than one approved reclamation plan applicable to that operation except as described in subsection (i) to this section. An amended reclamation plan shall be approved by the lead agency prior to the commencement of activities determined to be a substantial deviation from the approved plan. For purposes of the Surface Mining and Reclamation Act of 1975 and regulations adopted pursuant thereto, a substantial deviation shall be defined as a change or expansion to a surface mining operation that substantially affects the completion of the previously approved reclamation plan, or that changes the end use of the approved plan to the extent that the scope of the reclamation required for the surface mining operation is substantially changed. In determining whether a change or expansion constitutes a substantial deviation, the lead agency shall take into consideration the following factors: (1) A substantial increase in the disturbance of a surface area or in the maximum depth of mining; (2) A substantial extension of the termination date of the mining operation as set out in the approved reclamation plan; (3) Changes that would substantially affect the approved end use of the site as established in the reclamation plan; (4) The consistency of any proposed change to the operation with the previously adopted environmental determinations. (5) Any other changes that the lead agency deems substantial deviations as defined in this subsection. (e) An amended reclamation plan shall be filed if the lead agency determines, after an inspection, that the surface mining operation can no longer be reclaimed in accordance with its approved reclamation plan. Such amended plan shall incorporate current reclamation standards as described in Chapter 9 (commencing with Section 2710) and Title 14 of the California Code of Regulations commencing with Section 3700. (f) In the event that a proposed change is determined not to be a substantial deviation from an approved reclamation plan, then current reclamation standards need only apply to the amended portion of the plan. An amendment to the originally approved reclamation plan that includes an expanded operating area shall be approved by the lead agency prior to implementation of the activities in the expansion area. (g) Should an expansion of an operation into an area not covered by an approved reclamation plan be determined by the lead agency to be a substantial deviation, an amended reclamation plan shall be prepared that ensures adequate reclamation for the surface mining operation. The amended reclamation plan shall incorporate current reclamation standards for the entire area governed by the plan that is impacted by the deviation. If reclamation has been substantially initiated at the time that a lead agency determines that an amended reclamation plan is required, the operator may complete reclamation of those areas according to the previously approved reclamation plan, except for those areas that are or will be affected by the proposed expanded mining activities which shall be subject to the requirements of the amended reclamation plan. (h) Where a surface mining operation has in effect an approved reclamation plan and approved financial assurance covering a surface mining operation, and the mining operator proposes to utilize a new surface area, not included within the approved reclamation plan, for purposes of creating a new and separate pit, quarry, or other excavation, the operator may, at the option of the operator do one of two things: (1) Amend the existing reclamation plan to encompass the new area designated for use as a pit, quarry, or excavation, together with any other changes necessary to make the reclamation plan, as amended, conform to the Act and these regulations. If such an amended plan is proposed, the amended plan must conform to the current reclamation standards required by the Act and the regulations, as to the new area(s) designated as a quarry, pit or excavation, and any processing facilities, roads, sumps, drainage systems or storage or processing areas, which that new area will utilize within the previously approved reclamation plan area or within the new area. Concurrently with the approval of the amended reclamation plan to encompass the new area operations, unless such a provision already is in the existing reclamation plan, the lead agency may require an amendment to the existing reclamation plan to provide for the immediate commencement of the reclamation of any mined lands which no longer are required for mining operations. (2) Obtain approval of a new reclamation plan covering the new area and any facilities, roads, sumps, drainage systems, or storage or processing areas, utilized in connection with operations in the new area. Any areas encompassed within such plan shall conform to the reclamation standards of the Act and these regulations that are in effect at the time the reclamation plan is approved. (i) The following exemptions to this section shall apply: (1) Where a single surface mining operation has separate facilities located within different lead agency jurisdictions, and where these facilities are separated by a distinct and significant physical boundary such as a major highway, stream channel, or the like, the operator may obtain separate reclamation plans and financial assurances for the facilities from the lead agencies in which those facilities are located. (2) Those surface mining operations that have more than one reclamation plan approved on or before October 1, 2002 shall not be subject to the requirements for a single reclamation plan as described in subsection (d) of this section unless new mining operations or substantial deviations to the operation are proposed after that date that require one of the plans to be amended. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2712(a)-(c), 2756-2757, 2770 and 2772-2773, Public Resources Code. s 3503. Surface Mining and Reclamation Practice. The following are minimum acceptable practices to be followed in surface mining operations: (a) Soil Erosion Control. (1) The removal of vegetation and overburden, if any, in advance of surface mining shall be kept to the minimum. (2) Stockpiles of overburden and minerals shall be managed to minimize water and wind erosion. (3) Erosion control facilities such as retarding basins, ditches, streambank stabilization, and diking shall be constructed and maintained where necessary to control erosion. (b) Water Quality and Watershed Control. (1) Settling ponds or basins shall be constructed to prevent potential sedimentation of streams at operations where they will provide a significant benefit to water quality. (2) Operations shall be conducted to substantially prevent siltation of ground-water recharge areas. (c) Protection of Fish and Wildlife Habitat. All reasonable measures shall be taken to protect the habitat of fish and wildlife. (d) Disposal of Mine Waste Rock and Overburden. Permanent piles or dumps of mine waste rock and overburden shall be stable and shall not restrict the natural drainage without suitable provisions for diversion. (e) Erosion and Drainage. Grading and revegetation shall be designed to minimize erosion and to convey surface runoff to natural drainage courses or interior basins designed for water storage. Basins that will store water during periods of surface runoff shall be designed to prevent erosion of spillways when these basins have outlet to lower ground. (f) Resoiling. When the reclamation plan calls for resoiling, coarse hard mine waste shall be leveled and covered with a layer of finer material or weathered waste. A soil layer shall then be placed on this prepared surface. Surface mines that did not salvage soil during their initial operations shall attempt, where feasible, to upgrade remaining materials. The use of soil conditioners, mulches, or imported topsoil shall be considered where revegetation is part of the reclamation plan and where such measures appear necessary. It is not justified, however, to denude adjacent areas of their soil, for any such denuded areas must in turn be reclaimed. (g) Revegetation. When the reclamation plan calls for revegetation the available research addressing revegetation methods and the selection of species having good survival characteristics, for the topography, resoiling characteristics, and climate of the mined areas shall be used. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2756 and 2757, Public Resources Code. s 3503.1. Reclamation Plan Elements. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2756, 2757, 2772 and 2773, Public Resources Code. s 3504. Administration by Lead Agency. (a) Record Keeping. The lead agency shall establish and maintain in-house measures and procedures to ensure organized record-keeping and monitoring of surface mining reclamation under its jurisdiction. The lead agency shall forward a copy of each permit and approved reclamation plan and financial assurance instrument to the director of the Department of Conservation. (b) Financial Assurances. The lead agency shall ensure that the objectives of the reclamation plan will be attained. This may include provisions for surety bonds, irrevocable letters of credit, trust funds, or other forms of financial assurances adopted by the board in accordance with PRC s 2773.1(e), to guarantee the reclamation in accordance with the approved reclamation plan. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2757, 2758(b), 2774(a) and 2778, Public Resources Code. s 3504.5. Mine Inspections Per Calendar Year. The purpose of this section is to clarify and make specific the scope, nature, and frequency of a surface mine inspection required under Public Resources Code Section 2774(b). (a) Inspection of a surface mining operation shall be conducted not less than once each calendar year to determine if the operation is in compliance with the requirements of Public Resources Code Chapter 9, commencing with section 2710. The lead agency, or the board if the board is the lead agency, shall send written notice to the operator at least ten days prior to any inspection. (b) A person, who in the determination of the lead agency has demonstrated competence in performing inspections of surface mining operations, shall perform inspections. Evaluation of geological and engineering conditions, when required, shall be performed by or under the supervision of a Geologist Registered to practice in the state under the Geologists and Geophysicists Act or a Professional Engineer registered to practice in the state under the Professional Engineers Act. (c) A surface mine inspection shall not be performed by any person who holds a financial interest in or has been employed by the surface mining operation in any capacity, including as a consultant or as a contractor, during the year preceding the inspection. (d) Annual surface mine inspections may be conducted by a specialist or a team of specialists with expertise that includes but is not limited to, geology, engineering, surveying, ecology, water chemistry and quality, and permitting. Persons participating in the inspection shall follow such reasonable requirements of the operator so that there is minimal interference with the surface mining operation and the inspection is conducted in a safe manner in accordance with all state and federal safety requirements. (e) The operator shall be responsible for the reasonable cost of the annual inspection conducted by the lead agency or by the board if the board is the lead agency. (f) Inspections may include, but shall not be limited to the following: the operation's horizontal and vertical dimensions; volumes of materials stored on the site; slope angles of stock piles, waste piles and quarry walls; potential geological hazards; equipment and other facilities; samples of materials; photographic or other electronic images of the operation; any measurements or observations deemed necessary by the inspector or the lead agency to ensure the operation is in compliance with Public Resources Code Chapter 9. (g) The inspection report to the lead agency shall consist of the inspection form MRRC-1 (4/97), developed by the department and approved by the board, and any other reports or documents prepared by the inspector or inspection team. The lead agency shall provide a copy of the completed inspection report along with the lead agency's statement regarding the status of compliance of the operation to the director within 30 days of completion of the inspection. A copy of the completed inspection report and lead agency statement of compliance shall also be provided to the mine operator within 30 days of completion of the inspection. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774, Public Resources Code. s 3505. Special Provisions. (a) Exemptions. (1) In addition to the provisions of Public Resources Code Section 2714(a), (c) and (d), any surface mining operation that does not involve either the removal of a total of more than 1000 cubic yards of minerals, ores, and overburden, or involve more than one acre in any one location, shall be exempt from the provisions of the Act. (2) The purpose of this subdivision is to define the criteria of a "flood control facility," the clean-out of which is exempt from the requirements of the Surface Mining and Reclamation Act of 1975 under PRC Section 2714(a) and (b). It is intended that cleaning out of a previously engineered, constructed facility for which approved design plans exist is an activity to restore the usefulness of that flood control facility to its original design purpose. It is not the intent of this subsection to exempt the removal of materials from natural channels. The removal of post-construction accumulated materials from a responsible public agency-approved, managed, engineered, constructed facility intended for the purpose of water retention or detention, debris retention, or from a flood water conveyance, where the post-extraction condition, capacity or grade of the facility or conveyance does not exceed the as-built approved design specification contained in the approved documents for the facility or conveyance, shall be exempt from the provisions of the Act. (3) The excavation, grading, or transportation of mineral materials, including overburden, exclusive of commercial surface mining activities as defined in Public Resources Code Section 2714(d), that is wholly integral and necessary to the conduct of agricultural activities either on-site or on non-contiguous parcels, shall meet the requirements of Public Resources Code Section 2714(a) for farming excavations or grading. This exemption does not apply to the exportation of mineral materials, including overburden, from the property that is in excess of 1,000 cubic yards for commercial purposes. (b) Vested Rights. The permit and reclamation plan requirements for persons with vested rights are stated in Public Resources Code Section 2776. Where a person with vested rights continues surface mining in the same area subsequent to January 1, 1976, he shall obtain an approval of a reclamation plan covering the mined lands disturbed by such subsequent surface mining. In those cases where an overlap exists (in the horizontal and/or vertical sense) between pre- and post-Act mining, the reclamation plan shall call for reclamation proportional to that disturbance caused by the mining after the effective date of the Act. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2714, 2758(c) and 2776, Public Resources Code; and 78 Ops.Cal.Atty.Gen. 343 (1995). s 3506. Special Provisions. Note: Authority cited: Sections 2714(d) and 2755, Public Resources Code. Reference: Sections 2714, 2758(c) and 2776, Public Resources Code. s 3507. Suggested Form for Reclamation Plan. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2756, 2757, 2758(b), 2772 and 2773, Public Resources Code. s 3507.1. Confidential Information. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2778, Public Resources Code. s 3507.2. Multiple Operations in a Single Plan. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2756, 2757, 2758(b), 2772 and 2773, Public Resources Code. s 3508. Model Surface Mining and Reclamation Ordinance. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2758(b) and 2774(a), Public Resources Code. s 3550. Introduction. Pursuant to Section 2790 of the Surface Mining and Reclamation Act, the Mining and Geology Board designates certain mineral resource sectors within the following geographical areas to be of regional significance. Note: Authority and reference cited: Section 2790, Public Resources Code. s 3550.1. Tujunga and Pacoima Wash Areas of the San Fernando Valley Region, Los Angeles County. On January 7, 1981, following a December 11, 1980, public hearing, the Mining and Geology Board designated Sectors A, B, C, and D of the Tujunga and Pacoima Wash areas to be of regional significance. In general, these sectors are described as follows: (1) Sector A -Tujunga Valley east of the Hansen Dam flood control basin, west of the 210 freeway and excluding identified archaeological sites; (2) Sector B -the Hansen Dam Area; (3) Sector C -an area southwest of Hansen Dam; and (4) Sector D -Pacoima Wash north of Lopez Dam. These sectors contain sand and gravel deposts which provide a source of construction aggregate for the region's future need. Designation Map #81-1 and a report summarizing the designation findings of the State Mining and Geology Board are on file at the Board's office in Sacramento. Note: Authority and reference cited: Section 2790, Public Resources Code. s 3550.2. Santa Clara River Valley Area of the Western Ventura County Region, Ventura County. On January 28, 1982, following a November 19, 1981, public hearing, the State Mining and Geology Board designated Sectors A, B, C, D, E, F, G, H, I, and J, on Designation Map #82-1, in the Santa Clara River Valley to be of regional significance. In general, these sectors are described as follows: (1) Sector A -Instream deposits of the Santa Clara River near the community of El Rio beginning approximately one mile downstream of the U.S. Highway 101 bridge and extending to a point approximately two miles upstream of the Los Angeles Avenue bridge. (2) Sector B -Offstream deposits located adjacent to Vineyard Avenue in the community of El Rio. (3) Sector C -Offstream deposits located in and adjacent to the community of El Rio. (4) Sector D -Offstream deposits located east of Los Angeles Avenue and south of the Santa Clara River. (5) Sector E -Instream deposits of the Santa Clara River beginning at the eastern boundary of Sector A and extending upstream to the confluence of Santa Paula Creek. (6) Sector F -Instream deposits extending from the eastern boundary of Sector E upstream to the confluence of Sespe Creek. (7) Sector G -Instream deposits extending from the eastern boundary of Sector F upstream to Cavin Road. (8) Sector H -Instream deposits extending from the eastern boundary of Sector G upstream to Piru. (9) Sector I -Instream deposits extending from the eastern boundary of Sector H upstream for approximately three miles. (10) Sector J -Instream deposits extending from the eastern boundary of Sector I upstream to the Ventura County line. These sectors contain sand and gravel deposits that provide a source of construction aggregate for the region's future need. Designation Map #82-1 and a report summarizing the designation findings of the State Mining and Geology Board, "Designation of Regionally Significant Construction Aggregate Resource Areas in the Western Ventura County and Simi Production-Consumption Regions -March 1982," are on file at the Board's office in Sacramento. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-2763 and 2790-2791, Public Resources Code. s 3550.3. Simi Valley Area of the Simi Region, Ventura County. On January 28, 1982, following a November 19, 1981, public hearing, the State Mining and Geology Board designated Sectors A, B, and C, on Designation Map 82- 1, in the Simi Valley area to be of regional significance. In general, these sectors are described as follows: (1) Sector A -Hillside deposits located on Oak Ridge and the Simi Hills. (2) Sector B -Hillside deposits located along a portion of Oak Ridge extending from Long Canyon eastward to the Ventura County line. (3) Sector C -Hillside deposits located above Meir and Runkle Canyons in the Simi Hills. These sectors contain sand and gravel deposits that provide a source of construction aggregate for the region's future needs. Designation Map #82-1 and a report summarizing the designation findings of the State Mining and Geology Board, "Designation of Regionally Significant Construction Aggregate Resource Areas in the Western Ventura County and Simi Production-Consumption regions -March 1982," are on file at the Board's office in Sacramento. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-2763 and 2790-2791, Public Resources Code. s 3550.4. Santa Ana River, Santiago Creek, Arroyo Trabuco, San Juan Creek, and Temescal Valley Areas of the Orange County-Temescal Valley Region, Orange, Riverside, and San Bernardino Counties. A set of maps identifying the exact locations of the designated areas, entitled "Regionally Significant Construction Aggregate Resource Areas in the Orange County-Temescal Valley and San Gabriel Valley Production-Consumption Regions," is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. The construction aggregate deposits in the following areas have been designated as being of regional significance: Sector A -Instream deposits of the Santa Ana River beginning at Prado Dam and extending downstream for one and one-half miles. Sector B -Instream deposits along the north side of the Santa Ana River beginning near Coal Canyon and extending downstream for approximately three miles. Sector C -Instream deposits along the south side of the Santa Ana River from Horseshoe Bend downstream to the Weir Canyon Bridge. Sector D -Offstream deposits located between Orangethorpe Avenue and La Palma Avenue in the northeastern part of Anaheim. Sector E -Offstream deposits located near the intersection of Fee Ana Street and La Palma Avenue in Anaheim. Sector F -Offstream deposits in the Warner Basin located near Jefferson Street and the Riverside Freeway in Anaheim. Sector G -Offstream deposit located on the south side of the Santa Ana River near Lincoln Avenue in Anaheim. Sector H -Hillside deposit located immediately east of Prado Dam in the Chino Hills. Sector I -Hillside deposit located east of Gypsum Canyon in the Santa Ana Mountains. Sector J -Instream deposit of Santiago Creek beginning near Villa Park Dam and extending downstream to approximately the Newport Freeway. Sector K -A conglomerate deposit in upper Blind Canyon east of Villa Park Dam. Sector L -Instream deposit located on Santiago Creek between Santiago Dam and Irvine Park. Sector M -Instream deposit located under the Santiago Reservoir on Santiago Creek. Sector N -Instream deposits of Santiago Creek beginning near Santiago Reservoir and extending upstream to the confluence of Williams Canyon, including a portion of Silverado Canyon. Sector O -Offstream deposit located on the southeast side of Cota Street in Corona. Sector P -Offstream deposits of Temescal Wash near the intersection of the Riverside Freeway and Interstate 15 near Corona. Sector Q -Instream deposits located in Temescal Wash beginning near Magnolia Avenue and extending upstream to Cajalco Road. Sector R -Instream deposits located in Temescal Wash beginning near the Olsen Canyon confluence and extending upstream to Lee Lake. Sector S -Offstream deposits of the Coldwater Mayhew Fan near Glen Ivy Hot Springs. Sector T -Instream deposits of San Juan Creek beginning near Casper Regional Park and extending downstream to approximately Ganado Road in San Juan Capistrano. Sector U -Instream deposits of Arroyo Trabuco beginning one-half mile above Interstate 5 and extending approximately five miles upstream. Sector V -Instream deposits of Arroyo Trabuco beginning at the Live Oak Canyon Road crossing and extending upstream for approximately two miles. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-2763 and 2790-2791, Public Resources Code. s 3550.5. San Gabriel River, Eaton Wash, Devils Gate, and Palos Verdes Areas of the San Gabriel Valley Region, Los Angeles County. A set of maps identifying the exact locations of the designated areas, entitled "Regionally Significant Construction Aggregate Resource Areas in the Orange County-Temescal Valley and San Gabriel Valley Production-Consumption Regions," is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. The construction aggregate deposits in the following areas have been designated as being of regional significance: Sector A -Offstream and instream deposits of the San Gabriel River below Morris Dam near Azusa. Sector B -Instream deposit consisting of the flood control channel of the San Gabriel River upstream of Foothill Boulevard near Azusa. Sector C -Instream deposits in a portion of the Santa Fe Flood Control Basin and spillway channel near Irwindale. Sector D -Offstream and instream deposits in the western portion of the San Gabriel River Fan near Baldwin Park and Arcadia. Sector E -Offstream deposits in the eastern portion of the San Gabriel River Fan in Irwindale. Sector F -Instream deposits of Eaton Wash located in the Eaton Wash Flood Control Basin. Sector H -Instream deposits of Arroyo Seco in the Devils Gate Reservoir area. Sector I -Hillside deposit in the Palos Verdes Hills on Narbonne Avenue in Bent Springs Canyon. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-2763 and 2790-2791, Public Resources Code. s 3550.6. Construction Aggregate Resources, Western San Diego County Region. A set of maps identifying the exact locations of the designated resource areas, entitled "Regionally Significant Construction Aggregate Resource Areas in the Western San Diego County Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A -A granitic rock deposit located in eastern Oceanside, southwest of the intersection of Highway 78 and College Boulevard, near Buena Vista Creek Canyon. Sector B -Channel and flood-plain deposits of the San Luis Rey River beginning near North River Road in Oceanside and extending upstream for approximately six miles. Sector C -Channel and flood-plain deposits of the San Luis Rey River from near the Highway 78 bridge upstream to approximately the Interstate 15 bridge. Sector D -Alluvial deposits of the upper San Luis Rey River, extending discontinuously from the Interstate 15 bridge upstream to the community of Rincon in Pauma Valley. Sector E -A hillside alluvial fan deposit located northeast of the San Luis Rey River, extending from the community of Pala to Pauma Valley. Sector F -An alluvial fan deposit located in upper Pauma Valley near the community of Rincon. Sector H -A granitic rock deposit located in Twin Oaks Valley approximately three miles east of the City of Vista. Sector I -An alluvial fan deposit extending eastward from Lake Hodges on the San Dieguito River to the upper end of San Pasqual Valley. Sector J -A mesa-top conglomerate deposit consisting of 4 areas located in or near the communities of Rancho Bernardo, Rancho Penasquitos, Poway Mira Mesa, Tierra Santa, and Santee, and on the Miramar Naval Air Station. Sector K -A metavolcanic rock deposit located in Mission Gorge on the San Diego River. Sector M -Channel and flood-plain deposits of the upper San Diego River from Magnolia Avenue in the City of Santee to within one mile of El Capitan Dam. Sector N -A channel deposit of the lower Sweetwater River located near the community of Sunnyside. Sector O -A channel deposit of the Sweetwater River located at the upper end of Sweetwater Reservoir. Sector P -A channel deposit of the Sweetwater River located in upper Jamacha Valley. Sector Q -A channel deposit of the Sweetwater River that extends from near the Singing Hills Golf Course upstream for a distance of approximately four miles. Sector R -Channel and adjacent mesa deposits of the Otay River extending from near Interstate 805 upstream to approximately the head of Otay Valley. Sector S -A metavolcanic rock deposit on Rock Mountain located on the north side of upper Otay Valley. Sector U -Flood-plain deposits of the Tijuana River extending from the international boundary downstream for a distance of approximately four miles. Sector V -Conglomerate deposits located on the Border Highlands immediately south of the Tijuana River. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-2763 and 2790-2792, Public Resources Code. s 3550.7. Construction Aggregate Resources, Claremont-Upland Region. A set of maps identifying the exact locations of the designated resources areas entitled "Regionally Significant Construction Aggregate Resources Areas in Claremont-Upland Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. [FNa1] The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A-The annual recharge area upstream from the San Antonio Creek Flood Control Dam. Sector B-Eight parcels south of San Antonio Creek Flood Control Dam in the unurbanized areas of the San Antonio Creek Fan, northeast of the City of Clarement. Sector B is roughly bounded by Foothill Boulevard on the south, San Antonio Avenue on the east, and Thompson Creek on the west. Sector C-Four parcels in the proximal part of the Cucamonga Creek Fan, north of the City of Upland. The area is generally north of 19th Street, west of Carmelian Avenue, east of Euclid Avenue, and south of the San Bernadino National Forest. Sector D-Three parcels covering parts of the Day Creek and Deer Creek Fans between the Cities of Cucamonga and Fontana. It is bounded by the San Gabriel Mountains on the north and Highland Avenue on the south. [FNa1] Copies of the maps incorporated by this section accompanied the text which was filed with Secretary of State on 12-3-86. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.8. Construction Aggregate Resources, San Bernadino Region. A set of maps identifying the exact locations of the designated resources areas entitled "Regionally Significant Construction Aggregate Resources Areas in San Bernadino Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. [FNa1] The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A-Eighteen parcels on the Lytle Creek Fan in and around the City of Fontana. The larger parcels of this sector are north of Fontana; several smaller parcels are scattered to the east and south of Fontana to the Santa Ana River. Sector B-Thirteen parcels covering the unurbanized portions of Lytle Creek Wash from north of Freeway 15, west to the downtown area of the City of San Bernadino. Sector C-Eight parcels along the Cajon Creek Wash from the bend in the wash south of Lost Lake, southward to the confluence of Cajon Creek and Lytle Creek. Sector D-Five parcels in a generally oval-shaped area southeast of the City of Ontario. The area is generally bounded by Freeway 10 on the south, Marlay Avenue on the north, Haven Avenue on the west, and Etiwanda Avenue on the east. Sector E-Fourteen parcels in and along the Santa Ana River from Freeway 395, south and west to the town of Rubidoux. Sector F-Seventeen parcels along the upper Santa Ana River and Santa Ana Wash and areas along smaller drainages merging with the Santa Ana Wash, including Warm Creek, City Creek, and Mill Creek. Sector G-Two parcels covering parts of the San Gorgonio River alluvial fan, east of the City of Banning. Sector G extends from the mouth of Banning Canyon, southeastward to the community of Cabazon. Sector H-The alluviated area of the Rice Canyon drainage, about one mile south of Alberhill. Sector I-The alluvial deposits in the lower part of McVickers Canyon and the alluvial fan near the mouth of McVickers Canyon. Sector I is a few miles northeast of Lake Elsinore. [FNa1] Copies of the maps incorporated by this section accompanied the text which was filed with Secretary of State on 12-3-86. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.9. Construction Aggregate Resources, Saugus-Newhall and Palmdale Regions. A set of maps identifying the exact locations of the designated resources areas entitled "Regionally Significant Construction Aggregate Resources Areas in Saugus-Newhall and Palmdale Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. [FNa1] The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A-Portions of the Santa Clara River and its immediate flood plain extending from the Los Angeles County Line to Bee Canyon, parts of Castiac Creek, and Oak Spring Canyon. Sector B-An area bounded by Bee Canyon on the northwest, the Santa Clara River to the south, and extending approximately one mile east of the Agua Dulce Canyon; and a triangle-shaped area with a boundary extending from the mouth of Pole Canyon west along an old railroad grade, south to Oak Spring Canyon then northeast back to the mouth of Pole Canyon. Sector C-A triangular area beginning at the mouth of Pole Canyon, running southeast along the canyon to Oak Spring Canyon then southwest to Coyote Canyon, turning northeast to close the triangle back at the mouth of Pole Canyon. Sector D-An area north of the California Aqueduct whose eastern boundary is along Little Rock Wash then turns west approximately one mile north of Boundary Avenue. The western boundary runs south near 47th Street and Fort-Tejon Road. Sector E-An area of the Big Rock Wash bounded by the aqueduct on the south, North 165th Street on the east, Palmdale Boulevard on the north, and 116th Street on the west. [FNa1] Copies of the maps incorporated by this section accompanied the text which was filed with Secretary of State on 12-3-86. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.10. Construction Aggregate Resources, South San Francisco Bay Region. A set of maps identifying the exact locations of the designated resources areas entitled "Regionally Significant Construction Aggregate Resources Areas in South San Francisco Bay Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. Sector A-Aggregate deposit located in Amador Valley and Livermore Valley areas in the Cities of Pleasanton and Livermore in Alameda County. Sector B-Alluvial deposit consisting of six parcels along Arroyo del Valle on the southwestern edge of Livermore in Alameda County. Sector C-Alluvial deposit consisting of six parcels located along Arroyo Mucho on the eastern edge of Livermore in Alameda County. Sector D-Greenstone deposit located on Apperson Ridge east of Sunol Valley in Alameda County. Sector E-Alluvial deposit consisting of five parcels in Sunol Valley in southern Alameda County. Sector H-Elongated sandstone deposit located on the foothills of the Cities of Fremont and Union City. Sector I-Elongated series of parcels consisting of a sandstone deposit along the foothills east of the Cities of Fremont and Milpitas. Sector J-Alluvial deposit located near Mowry Landing on the southern edge of Fremont in Alamada County. Sector K-Alluvial deposit located west of Highway 17 on the southern edge of Fremont in Alameda County. Sector L-Alluvial deposit consisting of three parcels located between the Nimitz Freeway, Alameda Creek, the Coyote Hills, and Jarvis Avenue in the northwestern portion of the City of Fremont in Alameda County. Sector M-Located at the southern end of the Coyote Hills on the west side of Fremont in Alameda County. Sector N-Greenstone deposit in the foothills east of the City of Hayward in Alameda County. Sector O-Consists of greenstone and rhyolite located in the Berkeley Hills west of Lake Chabot in Alameda County. Sector P-Consists of rhyolite located north of the Oak Knoll Naval Hospital in the Berkeley Hills. Sector S-Mount Zion and a smaller adjacent hill in central Contra Costa County. Sector T-Consists of basalt and andesite located at the south end of Gudde Ridge in the City of Moraga in southwestern Contra Costa County. Sector U-Consists of basalt and andesite located on a small ridge southwest of the City of Orinda in Contra Costa County. Sector V-Consists of basalt and andesite located on a small ridge southwest of the city of Orinda in Costa Contra County. Sector W-Sandstone and shale deposit consisting of three parcels located on the west side of the City of Richmond in Contra Costa County. Sector X-The Guadalupe Quarry property on the north side of Mount San Bruno adjacent to the City of Brisbane in San Mateo County . Sector Y-Limestone and greenstone deposits located west of Pacifica near Rockway Beach in northern San Mateo County. Sector Z-Greenstone deposit located in the Los Altos Hills in northwestern Santa Clara County. Sector BB-Limestone deposit located west of the City of Cupertino on upper Permanente Creek in Santa Clara County. Sector CC-Greenstone deposit located northwest of Stevens Creek Reservoir on the western edge of the City of Cupertino in Santa Clara County. Sector DD-Conglomerate deposit located northwest of Stevens Creek Reservoir west of the City of Cupertino in Santa Clara County. Sector EE-Located immediately northwest of the intersection of Capitol Expressway and Monterey Road (highway 82) on the City of San Jose in Santa Clara Cunty. Sector GG-Sandstone deposit located approximately four miles south of Brentwood in eastern Contra Costa County. Sector HH-Granitic rock deposit located northwest of the City of Half Moon Bay in western San Mateo County. Sector II-Sandstone and siltstone deposit located in Limekiln Canyon east of Lexington Reservoir in southwestern Santa Clara County. Sector LL-Sandstone deposit located in the foothills east of the City of Fremont in Alameda County. [FNa1] Copies of the maps incorporated by this section accompanied the text which was filed with Secretary of State on 12-3-86. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.11. Construction Aggregate Resources, North San Francisco Bay Region. A set of maps identifying the exact locations of the designated resources areas entitled "Regionally Significant Construction Aggregate Resources Areas in North San Franciso Bay Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. [FNa1] The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A-Channel and floodplain alluvium deposits located in Alexander Valley of Sonoma County; extends from approximately the City of Cloverdale downstream to a point 3.25 miles southeast of the community of Jimtown. Sector B-Alluvial deposits of the middle reach of the Russian River and a small portion of Dry Creek 0.5 miles west of Healdsburg. The sector extends from the City of Healdsburg down the Russian River to a point near the Wohler Road bridge. Sector C-Alluvial deposits restricted to two small portions of Sonoma Creek. The first is about one l mile south of Sonoma State Hospital, and the second is about one mile south of Boyes Hot Springs. Sector D-Consists of Novato Conglomerate deposits located near Black Point in eastern Marin County. Sector E-A small basalt deposit located on Petaluma Hill near the southeastern edge of the City of Petaluma in Sonoma County. Sector F-A small aggregate deposit located west of the City of Cotati on Stony Point Road in Sonoma County. Sector G-Three contiguous parcels consisting of metamorphosed graywacke and greenstone deposits located east of the City of Vallejo at the southern end of Sulphur Springs Mountain. Sector H-Aggregate deposit located southeast of the City of Napa in Napa County. Sector I-Metamorphosed sandstone deposit located on Point San Pedro in eastern Marin County. Sector J-A large block of andesite located on Burdell Mountain approximately two miles north of the City of Novato in Marin County. Sector K-Two areas east of Dunbar Union School and northeast of the community of Glen Ellen in Sonoma County. Sector L-Small greenstone and pillow lavas deposits located in Millerton Gulch approximately 3.5 miles north of the community of Point Reyes Station in Marin County. Sector M-A small serpentinite deposit located in upper Bowman Canyon on Burdell Mountain approximately three miles northwest of Novato in Marin County. Section N-A small siltstone deposit located approximately one mile west of the community of Forestville and south of Highway 116. Sector O-A small siltstone deposit located approximately one mile west of the community of Forestville and north of Highway 116. Sector P-Located along the west side of Green Valley approximately three miles southwest of Forestville in Sonoma County. Sector Q-Sandstone deposit located in Cheney Gulch approximately 2.5 miles east of Bodega Bay in western Sonoma County. Sector R-Located approximately 2.5 miles southeast of the City of Petaluma in Sonoma County. Sector S-Located approximately five miles west of Petaluma on Petaluma Creek Road in Sonoma County. Sector T-Sandstone deposits located 1.5 miles north of Duncan Mills on Austin Creek in western Sonoma County. Sector U-Located at the confluence of the South Fork and Wheatfield Fork of the Gualala River in northwestern Sonoma County. Sector V-Consists of andesite located on Burdell Mountain approximately two miles north of the City of Novato in Marin County. Sector W-Located on Porter Creek Road approximately four miles east of the community of Mark West Springs in eastern Sonoma County. Sector X-Consists of sandstone and andesite located along Highway 121 approximately 2.5 miles north of Sears Point in southeastern Sonoma County. Sector Y-Shale deposit located approximately 2.5 miles west of Healdsburg in Sonoma County. [FNa1] Copies of the maps incorporated by this section accompanied the text which was filed with Secretary of State on 12-3-86. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.12. Construction Aggregate Resources, Monterey Bay Region. A set of maps identifying the exact locations of the designated resources areas entitled "Regionally Significant Construction Aggregate Resources Areas in Monterey Bay Production-Consumption Region" is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. [FNa1] The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A-Consists of quartz diorite located on Ben Lomond Mountain southwest of Felton in Santa Cruz County. Sector B-Consists of sandstone deposit divided into three large non-contiguous parcels located east of Felton in Santa Cruz County. Sector C-Sandstone deposit located near Wilder Ranch west of the City of Santa Cruz. Sector D-Alluvial deposit located in a portion of Uvas Creek located west of Gilroy in southern Santa Clara County. Sector E-Channel and floodplain deposits located in a long portion of the San Benito River extending from lower Tres Pinos Creek west to State Highway 101 in central San Benito County. Sector F-Two elongated deposits located near the community of Aromas in western San Benito County, extending from State Highway 101 northwesterly to Pajaro Gap on Highway 129, a distance of approximately five miles. Sector G-The Natividad Quarry located northeast of Salinas in Monterey County. Sector H-Sand deposits in two separate but adjacent parcels located along the southern portion of Monterey Bay, north of the City of Marina. Sector I-A large sand dune area located on the northern edge of the City of Marina in Monterey County. Sector J-Quartz diorite located on Huckleberry Hill on the east side of the community of Pebble Beach in Monterey County. Sector K-Stream channel and floodplain deposits consisting of a one mile long portion of the lower Carmel River in the Carmel Valley of Monterey County. Sector L-Consists of quartz diorite and siltstone located on upper Soquel Creek on the east side of Sugarloaf Mountain in Santa Cruz County. Sector M-Fluvial sand and gravel deposit located on Freedom Boulevard approximately seven miles northwest of Watsonville in southern Santa Cruz County. Sector N-Located at the confluence of Chalone Creek with the Salinas River in southern Monterey County, approximately three miles southwest of the community of Greenfield, northeast of the Southern Pacific Railroad tracks. Sector O-Located at the confluence of Chalone Creek with the Salinas River in southern Monterey County, approximately three miles southwest of the community of Greenfield. Sector P-Stream channel and floodplain deposits of San Lorenzo Creek located in the foothills of the Gabilan Range in southern Monterey County, approximately six miles northwest of King City. Sector U-Stream channel and floodplain deposits of Upper Pacheco Creek located near Bells Station in southeastern Santa Clara County. [FNa1] Copies of the maps incorporated by this section accompanied the text which was filed with Secretary of State on 12-3-86. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.13. Construction Aggregate Resources, Fresno Production-Consumption Region. A set of maps identifying the exact locations of the designated resource areas entitled "Regionally Significant Construction Aggregate Resource Areas in the Fresno Production-Consumption Region," February 2000, is incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. The construction aggregate deposits in the following areas are designated as being of regional significance: Sector K -Alluvial deposits of the Kings River between Avocado Lake on the northeast and the Southern Pacific Railroad tracks on the southwest. Sector S -Portions of the San Joaquin River floodplain between Friant Dam and Highway 99. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2726, 2761-63 and 2790-92, Public Resources Code. s 3550.14. Construction Aggregate Resources, Stockton-Lodi Production-Construction Region. A map identifying the exact locations of the designated resource areas entitled, "Regionally Significant Construction Aggregate Resource Areas in the Stockton-Lodi Production-Consumption Region, 1989," is incorporated by reference into this regulation. This map is available from the State Mining and Geology Board's office in Sacramento. The construction aggregate deposits in the following areas are designated as being of regional significance: Sector A-Aggregate deposits on the alluvial fan created by Corral Hollow Creek, situated south of the City of Tracy. Sector B-Aggregate deposit on the alluvial fan created by Lone Tree Creek. Deposit extends from just west of Interstate 580 near the base of the Coast Range hills northwest to the alignment of Interstate 5. Sector C-Aggregate deposit that consists of the alluvial fan formed by Hospital Creek. Deposit extends from west of Interstate 580 within the foothills of the Coast Range and east into the San Joaquin Valley. Sector D-Sand deposit centered on the San Joaquin River near the intersection of Highway 120 and Interstate 5 west of the City of Manteca. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2762, 2761-63 and 2790-92, Public Resources Code. s 3550.15. Construction Aggregate Resources, Palm Springs Production-Consumption Region. Two maps identifying the exact locations of the designated resource areas entitled, "Regionally Significant Construction Aggregate Resource Areas in the Palm Springs Production-Consumption Region, 1989 (Designation Map no. 89-2, Plates 1 and 2)," are incorporated by reference into this regulation. These maps are available from the State Mining and Geology Board's office in Sacramento. The aggregate deposits in the following areas are designated as being of regional significance: Sector A-1 -Aggregate deposits located adjacent to the southeast border of the community of Cabezon at the base of the San Jacinto Mountains. Sector A-2 -Aggregate deposits located between the Colorado River Aqueduct and the Morongo Indian Reservation. Sector A-3 -Aggregate deposits located directly south of Interstate 10 two miles east of the community of Cabazon. Sector B-1 -Aggregate deposit located at the mouth of the Whitewater Canyon north of Interstate 10. Sector B-2 -Aggregate deposit located immediately south of Interstate 10 at the intersection of Highway 62. Sector B-3 -Aggregate deposit located immediately south of Sector B-2 and east of the San Gorgonio Pass to Garnet Hill. Sector B-4 -Aggregate deposit located east of Indian Avenue and south of Garnet Hill. Sector B-5 -Aggregate deposit located adjacent to the northern border of Sector B-3 and the southern border of Interstate 10 near Garnet Hill. Sector C -Aggregate deposit located in the Little Morongo Canyon approximately one mile north of the City of Desert Hot Springs. Sector D -Aggregate deposit located in a small unnamed wash in the foothills of the community of Thousand Palms. Sector E-1 -Aggregate deposit located northeast of Dillon Road, approximately six miles northeast of the City of Indio. Sector E-2 -Aggregate deposit located approximately six miles northeast of the City of Indio. Sector F -Aggregate deposit located approximately four miles northeast of the City of Indio. Sector G -Aggregate deposit located approximately three miles north of the City of Indio. Sector H-1 -Aggregate deposit located approximately four miles east of the community of Thermal. Sector H-2 -Aggregate deposit located northeast of the Coachella Canal approximately three and a half miles east of the community of Thermal. Sector H-3 -Aggregate deposit located southwest of the Coachella Canal approximately three miles east of the community of Thermal. Note: Authority cited: Section 2790, Public Resources Code. Reference: Sections 2762, 2761-63 and 2790-92, Public Resources Code . s 3600. Purpose. It is the purpose of this subchapter to set forth the policies and criteria of the State Mining and Geology Board, hereinafter referred to as the "Board," governing the exercise of city, county, and state agency responsibilities to prohibit the location of developments and structures for human occupancy across the trace of active faults in accordance with the provisions of Public Resources Code Section 2621 et seq. (Alquist-Priolo Earthquake Fault Zoning Act). The policies and criteria set forth herein shall be limited to potential hazards resulting from surface faulting or fault creep within earthquake fault zones delineated on maps officially issued by the State Geologist. Note: Authority cited: Section 2621.5, Public Resources Code. Reference: Sections 2621-2630, Public Resources Code. s 3601. Definitions. The following definitions as used within the Act and herein shall apply: (a) An "active fault" is a fault that has had surface displacement within Holocene time (about the last 11,000 years), hence constituting a potential hazard to structures that might be located across it. (b) A "fault trace" is that line formed by the intersection of a fault and the earth's surface, and is the representation of a fault as depicted on a map, including maps of earthquake fault zones. (c) A "lead agency" is the city or county with the authority to approve projects. (d) "Earthquake fault zones" are areas delineated by the State Geologist, pursuant to the Alquist-Priolo Earthquake Fault Zoning Act (Public Resources Code Section 2621 et seq.) and this subchapter, which encompass the traces of active faults. (e) A "structure for human occupancy" is any structure used or intended for supporting or sheltering any use or occupancy, which is expected to have a human occupancy rate of more than 2,000 person-hours per year. (f) "Story" is that portion of a building included between the upper surface of any floor and the upper surface of the floor next above, except that the topmost story shall be that portion of a building included between the upper surface of the topmost floor and the ceiling or roof above. For the purpose of the Act and this subchapter, the number of stories in a building is equal to the number of distinct floor levels, provided that any levels that differ from each other by less than two feet shall be considered as one distinct level. Note: Authority cited: Section 2621.5, Public Resources Code. Reference: Sections 2621-2630, Public Resources Code. s 3602. Review of Preliminary Maps. (a) Within 45 days from the issuance of proposed new or revised preliminary earthquake fault zone map(s), cities and counties shall give notice of the Board's announcement of a ninety (90) day public comment period to property owners within the area of the proposed zone. The notice shall be by publication, or other means reasonably calculated to reach as many of the affected property owners as feasible. Cities and counties may also give notice to consultants who may conduct geologic studies in fault zones. The notice shall state that its purpose is to provide an opportunity for public comment including providing to the Board geologic information that may have a bearing on the proposed map(s). (b) The Board shall also give notice by mail to those California Registered Geologists and California Registered Geophysicists on a list provided by the State Board of Registration for Geologists and Geophysicists. The notice shall indicate the affected jurisdictions and state that its purpose is to provide an opportunity to present written technical comments that may have a bearing on the proposed zone map(s) to the Board during a 90-day public comment period. (c) The Board shall receive public comments during the 90-day public comment period. The Board shall conduct at least one public hearing on the proposed zone map(s) during the 90-day public comment period. (d) Following the end of the 90-day public comment period, the Board shall forward its comments and recommendations, with supporting data received, to the State Geologist for consideration prior to the release of official earthquake fault zone map(s). Note: Authority cited: Section 2621.5, Public Resources Code. Reference: Section 2622, Public Resources Code. s 3603. Specific Criteria. The following specific criteria shall apply within earthquake fault zones and shall be used by affected lead agencies in complying with the provisions of the act. (a) No structure for human occupancy, identified as a project under Section 2621.6 of the Act, shall be permitted to be placed across the trace of an active fault. Furthermore, as the area within fifty (50) feet of such active faults shall be presumed to be underlain by active branches of that fault unless proven otherwise by an appropriate geologic investigation and report prepared as specified in Section 3603(d) of this subchapter, no such structures shall be permitted in this area. (b) Affected lead agencies, upon receipt of official earthquake fault zones maps, shall provide for disclosure of delineated earthquake fault zones to the public. Such disclosure may be by reference in general plans, specific plans, property maps, or other appropriate local maps. (c) No change in use of character of occupancy, which results in the conversion of a building or structure from one not used for human occupancy to one that is so used, shall be permitted unless the building or structure complies with the provisions of the Act. (d) Application for a development permit for any project within a delineated earthquake fault zone shall be accompanied by a geologic report prepared by a geologist registered in the State of California, which is directed to the problem of potential surface fault displacement through the project site, unless such report is waived pursuant to Section 2623 of the Act. The required report shall be based on a geologic investigation designed to identify the location, recency, and nature of faulting that may have affected the project site in the past and may affect the project site in the future. The report may be combined with other geological or geotechnical reports. (e) A geologist registered in the State of California, within or retained by each lead agency, shall evaluate the geologic reports required herein and advise the lead agency. (f) One (1) copy of all such geologic reports shall be filed with the State Geologist by the lead agency within thirty (30) days following the report's acceptance. The State Geologist shall place such reports on open file. Note: Authority cited: Section 2621.5, Public Resources Code. Reference: Sections 2621.5, 2622, 2623 and 2625(c), Public Resources Code. s 3604. Selection of Professional Service Firms. (a) The purpose of these regulations is to establish those procedures authorized and required by Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. These regulations are specific to the Alquist-Priolo Earthquake Fault Zoning Act (Public Resources Code Sections 2621 et seq.). (b) Selection by the department for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management, firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Note: Authority cited: Section 2621.5, Public Resources Code; and Section 4526, Government Code. Reference: Sections 4525-4529.5, Government Code. s 3605. Definitions, As Used in These Regulations. (a) "Small business" shall mean a small business firm as defined by the Director of General Services (section 1896 of Title 2 of the California Code of Regulations) pursuant to section 14837 of the Government Code. (b) "Architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services" are those services to be procured outside State of California Civil Service procedures and of a character necessarily rendered by an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor but may include ancillary services logically or justifiably performed in connection therewith. (c) "Project" means a project as defined in Section 10105 of the Public Contract Code, or as defined in the Public Resources Code Section 21065. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4525 and 14837, Government Code; Section 10105, Public Contract Code; and Section 21065, Public Resources Code. s 3606. Establishment of Criteria. (a) The department shall establish criteria, on a case by case instance, which will comprise the basis for selection for each project. The criteria shall include such factors as professional excellence, demonstrated competence, specialized experience of the firm, education and experience of key personnel to be assigned, staff capability, workload, ability to meet schedules, nature and quality of completed work, reliability and continuity of the firm, location, and other considerations deemed relevant. Such factors shall be weighted by the department according to the nature of the project, the needs of the State and complexity and special requirements of the specific project. (b) In no event shall the criteria include practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration. Department employees with a relationship to a person or business entity seeking a contract under this section are prohibited from participating in the selection process if the employee would be subject to the prohibition of Section 87100 of the Government Code. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526 and 87100, Government Code. s 3607. Estimate of Value of Services. Before any discussion with any firm concerning fees, the department may cause an estimate of the value of such services to be prepared. This estimate shall serve as a guide in determining fair and reasonable compensation for the services rendered. Such estimate shall be, and remain, confidential until award of contract or abandonment of any further procedure for the services to which it relates. At any time the department determines the estimates to be unrealistic because of rising costs, special conditions, or for other relevant considerations, the estimate may be reevaluated and modified if necessary. Note: Authority cited: Section 4526, Government Code. Reference: Section 4528, Government Code. s 3608. Request for Proposals. (a) Where a project requires architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services, the department shall make an announcement through a publication of the respective professional society, if any exist, in a construction trade journal or, if none exist, in other appropriate publications that are published within a reasonable time frame such that a lengthy publication delay does not adversely affect the project. (b) The announcement shall contain the following information: The nature of the work, the criteria upon which the award shall be made, and the time within which statements of interest, qualification and performance data will be received. (c) The department shall endeavor to provide to all small business firms who have indicated an interest in receiving such, a copy of each announcement for projects for which the department concludes that small business firms could be especially qualified. A failure of the department to send a copy of an announcement to any firm shall not operate to preclude any contract. Note: Authority cited: Section 4526, Government Code. Reference: Section 4527, Government Code. s 3609. Selection of Firm. After expiration of the period stated in the publications or other public announcements, the department shall evaluate statements of qualifications and performance data which have been submitted to the department. Discussions shall be conducted with no less than three firms regarding the required service. Where three firms cannot be found which could provide the required service, a full explanation including names and addresses of firms and individuals requested to submit proposals must be entered in the files. From the firms with which discussions are held, the department shall select no less than three, provided at least three firms submit proposals, in order of preference, based upon the established criteria, which are deemed to be the most highly qualified to provide the services required. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526-4527, Government Code. s 3610. Negotiation. The department shall attempt to negotiate a contract with the most highly qualified firm. When the department is unable to negotiate a satisfactory contract with this firm with fair and reasonable compensation provisions, as determined by the procedure set forth in Section 3923 if those procedures were used, negotiations shall be terminated. The department shall then undertake negotiations with the second most qualified firm on the same basis. Failing accord, negotiations shall be terminated. The department shall then undertake negotiations with the third most qualified firm on the same basis. Failing accord, negotiations shall be terminated. Should the department be unable to negotiate a satisfactory contract at fair and reasonable compensation with any of the selected firms, additional firms may be selected in the manner prescribed in this article and the negotiation procedure continued. Note: Authority cited: Section 4526, Government Code. Reference: Section 4528, Government Code. s 3611. Amendments. In instances where the department effects a necessary change in the project during the course of performance of the contract, the firm's compensation may be adjusted by negotiation of a mutual written agreement in a fair and reasonable amount where the amount of work to be performed by the firm is changed from that which existed previously in the contemplation of the parties. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3612. Contracting in Phases. Should the department determine that it is necessary or desirable to have a given project performed in phases, it will not be necessary to negotiate the total contract price or compensation provisions in the initial instance, provided that the department shall have determined that the firm is best qualified to perform the whole project at a fair and reasonable cost, and the contract contains provisions that the department, at its option, may utilize the firm for other phases and that the firm will accept a fair and reasonable price for subsequent phases to be later negotiated and reflected in a subsequent written instrument. The procedure with regard to estimates and negotiation shall otherwise be applicable. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3613. Department's Power to Require Bids. Where the department determines that the services needed are technical in nature and involve little professional judgment and that requiring bids would be in the public interest, a contract shall be awarded on the basis of bids rather than by following the foregoing procedures for requesting proposals and negotiation. Note: Authority cited: Section 4526, Government Code. Reference: Section 4529, Government Code. s 3614. Exclusions. The provisions of this article shall not apply to service agreements for an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor, engaged to provide consulting services on specific problems on projects where the architectural, landscape architectural, engineering, environmental, land surveying, or construction project management work is being performed by State of California Civil Service employees. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3625. Purpose of Regulations. The regulations contained in this article govern procedures affecting appeals to the Board on the approval or denial of a permit to conduct surface mining operations by a city or county, hereinafter referred to as the "lead agency," in an area designated as containing mineral deposits of statewide or regional significance pursuant to the provisions of Section 2775, Public Resources Code (PRC 2775). Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3626. Filing of Intent to Appeal. (a) Any person filing an appeal to the Board pursuant to PRC 2775 shall, within 15 days of exhausting his or her rights to appeal in accordance with the procedures of the lead agency, file an intent to appeal by submitting the following information. Failure to submit all the required, completed documents to the Board within the 15 days filing period will result in an incomplete filing of intent and an automatic rejection of the appeal. (1) A map indicating the exact location of the disputed area, including township and range, and corresponding to the designation map prepared for the region; (2) Written statements with supporting documentation indicating the basis for the appellant's challenge to the decision by the lead agency either to approve or deny a permit to mine in an area designated as being of statewide or regional significance. (3) Copy of notice to the lead agency that the appellant has filed an intent to appeal to the Board. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3627. Determination of Jurisdiction. The Chairman of the Mining and Geology Board, or the Chairman's designee, based upon the information submitted pursuant Section 3626 of this article, shall determine whether the appeal is within the jurisdiction of the Board for purposes of hearing the appeal, and determine whether the appellant's challenge raises substantial issues with respect to the action taken to approve or deny the permit to conduct surface mining operations by the lead agency. The Chairman of the Board, or the Chairman's designee, shall make such determination within 15 days of receipt of the information required by Section 3626 of this article, and shall notify the appellant and the lead agency of the determination by certified mail. If the Chairman finds, based upon the criteria stated in (a), (b) or (c) below, that the appeal raises no substantial issues with respect to the action taken by the lead agency to approve or deny the permit to conduct surface mining operations in a designated area, he or she shall refuse to grant a hearing on an appeal. In making this determination, the Chairman, or the Chairman's designee, shall consider the following: (a) Whether the appeal raises any issues which legally can be addressed by the Board within the limits of the Public Resources Code and the rules of the Board; and (b) Whether the appeal specifically relates to the approval or denial of a permit to conduct surface mining operations in an area designated by the Board as being of statewide or regional significance. (c) Whether the appeal is that of a lead agency's reconsideration of an appeal previously remanded by the board to that lead agency, and the appellant's challenge raises no new substantial issues with respect to the action taken by the lead agency to approve or deny the permit to conduct surface mining operations. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3628. Administrative Record. (a) Once the appellant has been notified that a determination has been made that an appeal is within the jurisdiction of the Board for purposes of hearing the appeal, the appellant shall submit to the board within 30 days of receipt of notification three certified copies for the complete administrative record, which shall include, but not be limited to, all of the following information. (1) Project application and complete, detailed description of the proposed project, including conditions added for mitigation of environmental impacts; (2) Location and site description maps submitted to the lead agency as part of the application process; (3) All reports, findings, communications, correspondence, and statements in the file of the lead agency relating to the project; and (4) Written transcripts of all public hearings related to the decision of the lead agency. (b) In cases where the appellant is faced with more than 30 days delay in gathering the administrative record because of internal procedures of the lead agency, the appellant shall so notify the Board in writing and the Board may require the lead agency to immediately submit three copies of the administrative record to the Board for purposes of hearing the appeal without undue delay. (c) Failure of the lead agency to produce the administrative record upon request of the Board within 30 days shall be deemed grounds to remand the appeal to the lead agency for reconsideration. Note: Authority cited: Section 2772, 2773, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3629. Hearing Procedures -Scheduling. The Board shall schedule and hold a public hearing on an appeal no later than 30 days from the filing of the complete administrative record, or at such time as may be mutually agreed upon by the Board and the appellant. In no case shall the hearing be scheduled beyond 180 days of the receipt of the complete administrative record without the concurrence of the Board, the appellant, and the project proponent (when not the same person as the appellant). The hearing may be scheduled as part of a regular business meeting of the Board or may be conducted by a committee of the Board. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3630. Hearing Procedures -Authority for Delegation. The Board may delegate conduct of the hearing to a committee of at least two members to be appointed for that hearing by the Chairman of the Board. The Chairman of the Board or the Chairman's designee shall conduct the hearing; the recommendations of the committee shall be presented to a quorum of the Board at its next regular business meeting for a decision of the full Board consistent with the procedures set forth in Section 3634 of these regulations. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3631. Hearing Procedures -Notice. (a) At least 10 working days prior to the hearing, the Board shall give public notice as follows: (1) Mailing the notice to the lead agency, the appellant, and the project proponent (when not the same person as the appellant); (2) Mailing the notice to any person who requests notice of theappal or hearing; (3) Mailing the notice to the Board's regular mailing list; and (4) Posting of the notice in a place where notices are customarily posted in the city or county jurisdiction within which the proposed surface mining operations are to take place. (b) The notice of hearing shall include the following: (1) The name of the appellant; (2) Identification of the proposed surface mining operation, a brief description of the location of the operation by reference to any commonly known landmarks in the area, and a simple location map indicating the general location of the operation; (3) A statement that the appellant has appealed the lead agency's decision to approve or deny the project and has requested the Board hear the appeal; (4) A statement inviting the appellant, the lead agency, the project proponent (when not the same person as the appellant), and the public to make statements at the hearing regarding the decision of the lead agency; and (5) The time, date, and location of the public hearing. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3632. Hearing Procedures -Record. The record before the Board at the public hearing shall be the administrative record submitted pursuant to Sections 3626 and 3628 of this article. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3633. Hearing Procedures -Sequence. (a) The public hearing should normally proceed in the following manner: (1) Identification of the record; (2) Statements on behalf of the appellant; (3) Statements on behalf of the lead agency; (4) Statements on behalf of the project proponent (when not the same person as the appellant); (5) Statements on behalf of the public; (6) Rebuttal on behalf of the appellant; and (7) Motion to close the public hearing. (b) Notwithstanding the above, the Chairman or the Chairman's designee for purposes of conducting the hearing may in the exercise of discretion, determine the order of the proceedings. (c) The Chairman or the Chairman's designee may impose reasonable time limits upon statements and presentations and may accept written statements in lieu of oral statements. Written statements must be submitted to the Board at least five days prior to the hearing. (d) The public hearing shall be recorded either electronically or by other convenient means. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3634. Hearing Procedures -Determination. Following the public hearing, the Board shall determine whether, upon the record before it, the lead agency decision was made based on substantial evidence in light of the whole record. Notification of the Board's determination shall be made by certified mail to the appellant, the lead agency, and the project proponent (when not the same person as the appellant) within 15 days following the regular business meeting of the Board at which the decision is made. Note: Authority cited: Section 2775, Public Resources Code. Reference: Section 2775, Public Resources Code. s 3650. Filing of Intent to Appeal. Any person filing an appeal to the Board pursuant to PRC 2770 shall, within 15 days of exhausting his or her rights to appeal in accordance with the procedures of the lead agency, file an intent to appeal by submitting the following information. Failure to submit all the required, completed documents to the board within the 15 days filing period will result in an incomplete filing of intent and an automatic rejection of the appeal. (a) A map indicating the exact location of the surface mining operation, including township and range. (b) A copy of all documents which together were proposed to serve as the reclamation plan and which were submitted to the lead agency for review and approval pursuant to PRC 2770. (c) Written statements with supporting documentation indicating the basis for the appellant's challenge of: (1) the lead agency's action to deny approval of the reclamation plan submitted pursuant to PRC 2770; or (2) the lead agency's failure to act according to due process; or (3) the lead agency's failure to act within a reasonable period of time of submittal of a completed application. (A) failure to act means a lead agency's inaction in processing the reclamation plan through its successive steps as provided for in the lead agency's surface mining and reclamation ordinance adopted pursuant to PRC Section 2774, and as provided for in PRC Section 2774(c). (B) reasonable time means the time period specified in the lead agency's surface mining and reclamation ordinance, or that which is mutually agreed upon by the applicant and the lead agency. Where no times are specified in the lead agency's ordinance, then the interval between successive review steps shall not exceed 60 days. (d) Copy of notice to the lead agency that the appellant intends to file an appeal to the Board. Note: Authority cited: Section 2770, Public Resources Code. Reference: Section 2770(c)-(e), Public Resources Code. s 3651. Determination of Jurisdiction. The Chairman of the Mining and Geology Board, or the Chairman's designee (Board Member), shall determine whether the appeal is within the jurisdiction of the Board for purposes of hearing the appeal, and determine whether the appellant's challenge raises substantial issues related to the lead agency's review of reclamation plans submitted for surface mining operations pursuant to the provisions of PRC 2770. If the Chairman finds, based upon the criteria stated in (a) plus (b) below, that the appeal raises no substantial issues with respect to the lead agency's review of reclamation plans submitted for vested surface mining operations pursuant to the provisions of PRC 2770, he or she shall refuse to grant a hearing on the appeal. In making these determinations, the Chairman shall consider the following: (a) Whether the appeal raises any issues which can legally be addressed by the Board within the limits of PRC 2770(e) and the rules of the Board; and (b) Whether the appeal specifically relates to the lead agency's review of reclamation plans submitted for vested surface mining operations pursuant to the provisions of PRC 2770. Note: Authority cited: Section 2770, Public Resources Code. Reference: Section 2770(c)-(e), Public Resources Code. s 3652. Administrative Record. (a) Once the appellant has been notified that a determination has been made that an appeal is within the jurisdiction of the Board for purposes of hearing the appeal, the appellant shall submit to the board within 30 days of receipt of notification three certified copies of the complete administrative record, which shall include, but not be limited to, all of the following information: (1) All documents which together are proposed to serve as the reclamation plan and which were submitted to the lead agency for review and approval pursuant to PRC 2770; (2) Location and site description maps submitted to the lead agency as part of the reclamation plan application; (3) Environmental documentation prepared pursuant to the provisions of the California Environmental Quality Act (CEQA), PRC Sections 21000 et seq., including conditions added for mitigation of environmental impacts, if any; (4) A copy of the lead agency surface mining and reclamation ordinance under which the reclamation plan may have been judged pursuant to PRC 2770; (5) All reports, findings, communications, correspondence, and statements in the file of the lead agency relating to the proposed reclamation plan; and (6) Written transcripts of all public hearings related to the lead agency review for approval of the reclamation plan pursuant to PRC Section 2770. (b) Should the lead agency choose not to complete an environmental review of the project pursuant to the provisions of CEQA, or should the Board deem such review inadequate under the provisions of CEQA, the record will not be considered complete until an adequate CEQA review is completed. (1) In those instances in which the Board is the CEQA lead agency, the Board shall be responsible for the preparation of new or supplemental environmental documents. (2) Pursuant to PRC Section 15045, the project proponent shall bear any costs relating to preparation and completion of any required environmental documents. (c) Failure of the appellant to request in writing the administrative record from the lead agency within 10 days of receiving notification of the Board's acceptance of the appeal may be deemed grounds for dismissal of the appeal. (d) If the appellant is unable to obtain the administrative record from the lead agency within 15 days, the appellant shall so notify the Board in writing and the Board may require the lead agency to immediately submit three copies of the administrative record to the Board for purposes of hearing the appeal without undue delay. (e) Failure of the lead agency to produce the administrative record upon request of the Board within 30 days shall be deemed grounds for Board action based on information provided solely by the appellant. (f) Following production of the administrative record by the lead agency, failure of the appellant to produce the administrative record upon the request of the Board within 10 days may be deemed grounds for dismissal of the appeal. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e) and 21000 et seq., Public Resources Code; and Section 15000 et seq., California Code of Regulations. s 3653. Technical Review for Adequacy of Reclamation Plan. (a) The Board may consult with the technical staff of the Department of Conservation for determination of the adequacy of reclamation plans prepared for surface mining operations that are appealed to the Board. Preliminary determination of technical adequacy shall be based on, but shall not be limited to, the following: (1) Substantial compliance with the requirements of PRC Sections 2772 and 2773; (2) Substantial compliance with the requirements of Board rules and regulations (14 CCR Sections 3500 et seq. and Sections 3700 et seq.); (3) Substantial compliance with the reclamation provisions of the lead agency surface mining and reclamation ordinance as certified by the Board pursuant to the provisions of PRC 2774; and (4) Whether the proposed reclamation plan is technically feasible given the scope of the mining operations. (b) The determination of whether substantial compliance with PRC Sections 2772 and 2773, 14 CCR Sections 3500 et seq. and Sections 3700 et seq., and the Board-certified lead agency surface mining and reclamation ordinance have been met shall be based on whether all elements of these provisions that are necessary to ensure viable, planned reclamation of a particular site are included and are technically feasible so as to satisfy the objectives of the Surface Mining and Reclamation Act. For example, a description of revegetation efforts might not be necessary for a pit to be used as a landfill, just as a description of final slope angles may not be necessary for a gravel bar skimming operation. In other sites, however, such information may be critical. In all cases, a site visit by the technical staff of the Department of Conservation shall be made before substantial compliance is determined. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e) and 2774, Public Resources Code. s 3654. Hearing Procedures -Scheduling. The Board shall schedule and hold a public hearing on an appeal no later than 45 days from the filing of the complete administrative record, or at such time as may be mutually agreed upon by the Board and the appellant. The hearing may be scheduled as part of a regular business meeting of the Board or may be conducted by a committee of the Board. The Board shall endeavor to schedule such public hearings in the jurisdiction from which the appeal originated, but may otherwise schedule such appeals to be heard in Sacramento. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e), Public Resources Code. s 3655. Hearing Procedures -Authority for Delegation. The Board may delegate conduct of the hearing to a committee of at least two members of the Board to be appointed for that hearing by the Chairman of the Board. The Chairman of the Board or the Chairman's designee (Board Member) shall conduct the hearing; the recommendations of the committee shall be presented to a quorum of the Board at a regular business meeting for a decision of the full Board consistent with the procedures set forth in Section 3659 of these regulations. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e), Public Resources Code. s 3656. Hearing Procedures -Notice. (a) At least 10 days prior to the hearing, the Board shall give public notice as follows: (1) Mailing the notice to the lead agency and to the appellant; (2) Mailing the notice to any person who requests notice of the appeal or hearing; (3) Mailing the notice to the Board's regular mailing list; and (4) Posting of the notice in a place where notices are customarily placed within the jurisdiction of the lead agency. (b) The notice of hearing shall include the following: (1) The name of the appellant; (2) Identification of the proposed reclamation plan, a brief description of the location of the surface mining operation for which the reclamation plan was prepared by reference to any commonly known landmarks in the area, and a simple location map indicating the general location of the operation; (3) A statement that the appellant has appealed the lead agency's decision to deny approval of the reclamation plan, or that the lead agency is being challenged based on failure to act according to due process, or that the lead agency is being challenged based on failure to act within a reasonable period of time; (4) A statement explaining that the Board may approve or deny approval of the reclamation plan, and that if the reclamation plan is denied approval, it shall be returned to the operator who then must revise it and resubmit the revised plan to the lead agency within 30 days of receipt from the Board; (5) A statement inviting the appellant, the lead agency, and the public to make statements at the hearing regarding the action (or inaction) of the lead agency; and (6) The time, date, and location of the public hearing. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e), Public Resources Code. s 3657. Hearing Procedures -Record. The record before the Board at the public hearing shall be the administrative record submitted pursuant to Sections 3650 and 3652 of this article, together with any findings from the technical review pursuant to Section 3653 of this article, and any CEQA documents prepared pursuant to Section 3652 of this article. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e) and 2774, Public Resources Code. s 3658. Hearing Procedures -Sequence. (a) The public hearing shall normally proceed in the following manner: (1) Identification of the record; (2) Statements on behalf of the appellant; (3) Statements on behalf of the lead agency; (4) Statements on behalf of the public; (5) Rebuttal on behalf of the appellant; and (6) Motion to close the public hearing. (b) Notwithstanding the above, the Chairman or the Chairman's designee (Board Member) for purposes of conducting the hearing may in the exercise of discretion, determine the order of the proceedings. (c) The Chairman or the Chairman's designee (Board Member) shall have the authority to impose time limits upon statements and presentations and accept written statements in lieu of oral statements. Written statements (12 copies) must be submitted to the Board at least five days prior to the hearing. (d) The public hearing shall be recorded. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e), Public Resources Code. s 3659. Hearing Procedures -Determination. Following the public hearing, the Board shall determine whether, based on the record before it, the proposed reclamation plan substantially meets the requirements of PRC 2772 and 2773 and the lead agency surface mining and reclamation ordinance, and the provisions of Section 3654 of this article. Notification of the Board's determination shall be made by certified mail to the appellant and the lead agency within 15 days following the regular business meeting of the Board at which the decision is made. In cases where the reclamation plan is not approved, deficiencies shall be noted in the correspondence notifying the appellant and the lead agency of the Board's decision, and the operator shall be put on notice that deficiencies must be corrected and a revised reclamation plan filed with the lead agency within 30 days. Note: Authority cited: Section 2770, Public Resources Code. Reference: Sections 2770(c)-(e), 2772, 2773 and 2774, Public Resources Code. s 3675. Definitions. The following definitions as used herein shall govern the interpretation of these regulations: Compatible Land Use. Land uses inherently compatible with mining and/or that require a minimum public or private investment in structures, land improvements, and which may allow mining because of the relative economic value of the land and its improvements. Examples of such uses may include, but shall not be limited to, very low density residential, geographically extensive but low impact industrial, recreational, agricultural, silvicultural, grazing, andopen space. Incompatible Land Use. Land uses inherently incompatible with mining and/or that require public or private investment in structures, land improvements, and landscaping and that may prevent mining because of the greater economic value of the land and its improvements. Examples of such uses may include, but shall not be limited to, high density residential, low density residential with high unit value, public facilities, geographically limited but impact intensive industrial, and commercial. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2761-2762, Public Resources Code. s 3676. Mineral Resource Management Policies. Lead agency mineral resource management policies adopted pursuant to the provisions of PRC Section 2762 shall include but not be limited to, the following: (a) A summary of the information provided by the classification and/or designation reports, or incorporation of PRC Sections 2710 et seq., and state policy by reference, together with maps of the identified mineral deposits or incorporation by reference of the classification and/or designation maps provided by the Board. (b) Statements of policy in accordance with the provisions of PRC Section 2762(a). (c) Implementation measures that shall include: (1) Reference in the general plan of the location of identified mineral deposits, and a discussion of those areas targeted for conservation and possible future extraction by the lead agency. (2) Use of overlay maps or inclusion of information on any appropriate planning maps to clearly delineate identified mineral deposits and those areas targeted by the lead agency for conservation and possible future extraction. (3) At least one of the following: (A) Use of special purpose overlay zones, mineral resource/open space zoning, or any other appropriate zoning that identifies the presence of identified mineral deposits and restricts the encroachment of incompatible land uses in those areas that are to be conserved. (B) Record, on property titles in the affected mineral resource areas, a notice identifying the presence of identified mineral deposits. (C) Impose conditions upon incompatible land uses in and surrounding areas containing identified mineral deposits for the purpose of mitigating the significant land use conflicts prior to approving a use that would otherwise be incompatible with mineral extraction. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2757 and 2761-63, Public Resources Code. s 3680. Purpose of Regulations. The regulations contained in this article govern procedures for appeals to the State Mining and Geology Board ( "the Board") concerning financial assurances for reclamation of existing surface mining operations under section 2770 of the Public Resources Code. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3681. Filing of Intent to Appeal. Any person filing an appeal to the Board pursuant to section 2770 of the Public Resources Code concerning financial assurances for reclamation shall, within 15 days of exhausting his or her right to appeal in accordance with the procedures of the lead agency, file a notice of intent to appeal by submitting the following information: (1) A map indicating the exact location of the surface mining operation, including township and range. (2) A copy of all documents which together comprise the financial assurances for reclamation which are the subject of the appeal. (3) Written statements, with supporting documentation, indicating the basis for the appellant's challenge of the action or inaction by the lead agency concerning financial assurances for reclamation. (4) Copy of the notice to the lead agency that the appellant intends to file an appeal with the Board. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3682. Determination of Jurisdiction. The Chairman of the Board, or the Chairman's designee (Board Member), shall determine whether the appeal is within the jurisdiction of the Board for purposes of hearing the appeal, and determine whether the appellant's challenge raises any substantial issues related to the review by the lead agency of financial assurances for reclamation for existing surface mining operations pursuant to Public Resources Code section 2770. If the Chairman finds, based on the criteria stated in (a) through (c) below, that the appeal raises no substantial issues with respect to the review by the lead agency of financial assurances for existing surface mining operations under Public Resources Code section 2770, he or she shall refuse to grant a hearing on the appeal. In making this determination, the Chairman shall consider the following: (a) Whether the appeal raises any issues which legally can be addressed by the Board within the limits of Public Resources Code section 2770 and the rules of the Board; (b) Whether the appeal specifically relates to the lead agency's review of financial assurances submitted for existing surface mining operations pursuant to the provisions of Public Resources Code section 2770; and (c) Whether the appellant exhausted his or her appeal remedies before the lead agency. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3683. Limit on Number of Filings of Appeal. Upon a finding by the Chairman, or the Chairman's designee (Board Member), that the appeal is not within the jurisdiction of the Board, the appellant may refile the notice of intent to appeal, once only, with the identified information needed to complete the appeal, within 21 days of receipt of the letter of denial of the original notice of intent to appeal. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3684. Administrative Record. (a) Once the appellant has been notified that a determination has been made that an appeal is within the jurisdiction of the Board for purposes of hearing the appeal, the appellant shall submit three certified copies of the complete administrative record, which shall include, but shall not be limited to, all of the following information: (1) A copy of the approved reclamation plan for the mining operation and any permit conditions or California Environmental Quality Act mitigations which pertain to reclamation for which the financial assurances for reclamation are proposed; (2) A copy of the documents comprising the financial assurances or the proposed financial assurances for reclamation which were submitted to the lead agency for review and approval pursuant to Public Resources Code section 2770; (3) Location and site description maps submitted to the lead agency as part of the reclamation plan; (4) A detailed estimate of the cost of the reclamation, in accordance with the approved reclamation plan, of the lands remaining disturbed and/or to be disturbed by the surface mining operation in the applicable twelve (12) month period, together with a map clearly delineating the boundaries of those lands; (5) All reports, findings, communications, correspondence and statements in the file of the lead agency relating to the financial assurances in question; (6) Written transcripts of all public hearings related to the lead agency's review of the financial assurances. (b) Failure of the appellant to request the administrative record from the lead agency within 21 days of receiving the notice stating the Board's acceptance of the appeal, may be deemed grounds for dismissal of the appeal. (c) If the appellant is unable to obtain the administrative record from the lead agency within 10 working days after submission of the request for the record, the appellant shall so notify the Board in writing. The Board may then require the lead agency to immediately submit three certified copies of the administrative record to the Board for purposes of hearing the appeal without undue delay. (d) Failure of the lead agency to produce the administrative record upon request of the Board within 30 days may be deemed grounds for Board action based on information provided solely by the appellant. (e) Following production of the administrative record by the lead agency, failure of the appellant to produce the administrative record upon the request of the Board within 21 days may be deemed grounds for dismissal of the appeal. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3685. Hearing Procedures - Scheduling. The Board shall schedule and hold a public hearing on an appeal no later than 45 days from the filing of the complete administrative record, or at such time as may be mutually agreed upon by the Board and the appellant. The hearing may be scheduled as part of a regular business meeting of the Board or may be conducted by a committee of the Board. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3686. Hearing Procedures - Authority for Delegation. The Board may delegate conduct of the hearing to a committee of at least two Board members to be appointed for that hearing by the Chairman of the Board. The Chairman of the Board or the Chairman's designee (Board Member) shall conduct the hearing; the recommendations of the committee shall be presented to a quorum of the board at a regular business meeting for a decision of the full Board consistent with the procedures set forth in section 3690 of these regulations. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3687. Hearing Procedures - Notice. (a) At least 10 working days prior to the hearing, the Board shall give public notice as follows: (1) Mailing the notice to the lead agency and to the appellant; (2) Mailing the notice to any person who requests notice of the appeal or hearing; (3) Mailing the notice to the Board's regular mailing list; and (4) Posting of the notice in a place where notices are customarily placed within the jurisdiction of the lead agency. (b) The notice of hearing shall include the following: (1) The name of the appellant; (2) Description of the financial assurances for reclamation, identification of the surface mining operation for which the financial assurances for reclamation were provided, a brief description of the location of the surface mining operation by reference to any commonly known landmarks in the area, and a simple location map indicating the general location of the operation; (3) A statement of the grounds for the appeal; (4) A statement that the Board may approve or deny approval of the financial assurances for reclamation; (5) A statement that if the Board denies approval of the financial assurances, they shall be returned to the mine operator who shall be granted, once only, a period of 30 days, or a longer period mutually agreed upon by the operator and the Board, to correct the noted deficiencies and submit the revised financial assurances to the lead agency for review and approval; (6) A statement inviting the appellant, the lead agency, and the public to provide testimony and evidence at the hearing regarding the action or inaction of the lead agency; and (7) The time, date, and location of the public hearing. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3688. Hearing Procedures - Record. The record before the Board at the public hearing shall be the administrative record submitted pursuant to sections 3681 and 3684 of this article. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Sections 2770 and 2774, Public Resources Code. s 3689. Hearing Procedures - Sequence. (a) The public hearing shall normally proceed in the following manner: (1) Identification of the record; (2) Statements on behalf of the appellant; (3) Statements on behalf of the lead agency; (4) Statements on behalf of the public; (5) Rebuttal on behalf of the appellant; and (6) Motion to close the public hearing. (b) Notwithstanding the above, the Chairman or the Chairman's designee (Board Member) for purposes of conducting the hearing may, in the exercise of discretion, determine the order of the proceedings. (c) The Chairman or the Chairman's designee (Board Member) shall have the authority to impose time limits upon statements and presentations and to accept written statements in lieu of oral statements. Written statements shall be submitted to the Board at least ten days prior to the hearing. (d) The public hearing shall be recorded. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Section 2770, Public Resources Code. s 3690. Hearing Procedures - Determination. Following the public hearing, the Board shall determine whether, based on the record before it, the proposed or existing financial assurances for reclamation substantially meet the applicable requirements of Public Resources Code sections 2770, 2773.1., and the lead agency surface mining ordinance adopted pursuant to subdivision (a) of section 2774. Financial assurances determined to meet these requirements shall be approved. Notification of the Board's determination shall be made by certified mail to the appellant and the lead agency within 15 days following the regular business meeting of the Board at which the decision was made. In cases where the financial assurances for reclamation are not approved, deficiencies shall be noted in the correspondence notifying the appellant and the lead agency of the Board's decision. The appellant shall be granted, once only, a period of 30 days, or a longer period mutually agreed upon by the operator and the Board, to correct the noted deficiencies and submit the revised financial assurances for reclamation to the lead agency for review and approval. Note: Authority cited: Sections 2755 and 2770, Public Resources Code. Reference: Sections 2770 and 2774, Public Resources Code. s 3695. Definitions. The following definitions shall govern the interpretation of these regulations: "Produced Minerals" means minerals extracted at the site of the mining operation, and either: (a) sold, given or otherwise moved off the site of the operation, as defined in the approved reclamation plan, or; (b) used on-site for production of completed products (e.g. cement, bricks, asphaltic concrete, etc.),Stockpiles of mineral products that remain on the site, as defined in the lead agency approved reclamation plan, are not produced minerals for purposes of these regulations. "Primary Mineral Commodity Produced" means the produced mineral that provides the highest dollar values sales for the operation. "Board" means State Mining and Geology Board. As used in Section 3697 and 3699 "Mining Company" means any entity, corporation, partnership, parent or holding company. Any subsidiaries of the above are deemed to be part of the mining company. As used in section 3699, "Gross Income" means all income from whatever source derived as defined by, and determined in accordance with, Section 61 of the Internal Revenue Code, Title 26, U.S.C.S. "Aggregate Products" means decomposed granite, sand and gravel, slag, or stone. "Industrial Minerals" means borates, cinders, clay, diatomite, dolomite, gypsum, iron ore, lime, limestone, perlite, pumice, rare earth elements, saline compounds, salt, shale, silica, specialty sand, abrasives, asbestos, barite, bituminous rock, decorative rock, dimension stone, feldspar, fluorite, gemstones, graphite, kyanite, lignite, lithium, magnesite, mica, olivine, peat, phosphate, potash, pyrophyllite, quartz crystal, sea shells, sericite, sulfur, talc, vermiculite, wollastonite, zeolites, and zircon. "Gold, Silver, and Precious Metals" means gold (lode), gold (placer), platinum group metals, and silver. "Base Metals and Other Metals" means antimony, arsenic, chromite, copper, lead, manganese, mercury, molybdenum, nickel, pyrite, tin, titanium, tungsten, uranium, vanadium, and zinc. Note: Authority cited: Sections 2207(d)(1)-(2), Public Resources Code. Reference: Sections 2207(d)(1)-(2) and 2207(f), Public Resources Code. s 3696. Operations Subject to Fees. (a) Each surface mining operation, as defined in Public Resources Code Sections 2719, 2727.1, 2735, and California Code of Regulations, Title 14, Section 3501, unless exempted by Public Resources Code Section 2714, shall be assessed an annual reporting fee according to the schedule established pursuant to in Section 3698 each May 1 following the reporting calendar year. (b) In addition to the annual reporting fee, each surface mining operation that is newly permitted shall be assessed an initial reporting fee according to the schedule in Section 3698 of this article. Note: Authority cited: Section 2207, Public Resources Code. Reference: Sections 2207 and 2719, Public Resources Code. s 3696.5. Board Administration Fee. Each surface mining operation, as defined in Public Resources Code sections 2719, 2727.1, and 2735, and, Title 14 California Code of Regulations, Section 3501, unless exempted by Public Resources Code Section 2714, shall be assessed each January 31 an annual administration fee of $7 (seven dollars) per day for each day of the previous calendar year that the surface mine operation was under the board's jurisdiction as lead agency pursuant to Chapter 9, commencing with Section 2710. The administration fee is due and payable to the State Mining and Geology Board not later than April 1 each year by the surface mine's owner or operator of record on the preceding December 31. Note: Authority cited: Sections 2207 and 2755, Public Resources Code. Reference: Section 2207, Public Resources Code. s 3697. Fees Due and Delinquent. (a) The annual reporting fee and Mining Operation Annual Report (MRRC-2) are due and payable to the Department of Conservation not later than July 1 for the prior reporting year, by the owner or operator of record on the preceding December 31. The initial reporting fee for a new surface mining operation, together with an initial report, are due and payable to the Department of Conservation not later than thirty (30) days after permit approval. An owner or operator of a surface mining operation submitting an annual reporting fee or annual report after July 1, or more than thirty (30) days after permit approval, shall be assessed a penalty fee and interest as provided in Public Resources Code Section 2207(c) and (d)(5). (b) Except as otherwise provided in (c), for the purposes of this article, surface mining operations are deemed to be discrete operations per each reclamation plan required. (c) Multiple site surface mining operations are deemed to be those active surface mining operations which meet all of the following criteria: (1) one or more surface mining operations are operated on one or more sites by a single operator or mining company; (2) the total annual combined mineral production for all sites is less than 100 troy ounces for precious metals, if precious metals are the primary mineral commodity produced, or less than 100,000 short tons if the primary mineral commodity product is not precious metals; (3) all of the sites included are active; (4) all of the operator or company's entire active surface mining operations located in the State of California are tied to, or located on, the listed sites; and (d) In addition to the criteria provided in (c), multiple site mining operator's submittal of the annual report form (Mining Operation Annual Report, Form MRRC-2) shall be accompanied by a multiple site form (Multiple Site Single Fee Request, Form MRRC-4M) supplied by the Department of Conservation. Note: Authority cited: Section 2207, Public Resources Code. Reference: Section 2207, Public Resources Code. s 3698. Fees Calculation. Annual reporting fees cited in sections 3698 and 3699 shall be adjusted for the cost of living as measured by the California Consumer Price Index for all urban consumers, calendar year averages, using the percentage change in the previous year, beginning with the 2005-2006 fiscal year and annually thereafter. (a) The annual reporting fee for a multiple site surface mining operation shall be four thousand dollars ($4,000). (b) The annual reporting fee for surface mining operations which are no longer in operation with no intent to resume, which had no mineral production in the reporting calendar year, and (1) which did not complete reclamation during the reporting calendar year shall be $100; or (2) which completed reclamation during the reporting calendar year shall be $100. Proof of completion of reclamation, approved by the lead agency, shall be submitted with this fee. (c) Except as otherwise provided, the annual reporting fee for surface mining operations shall be calculated on the total primary mineral commodity produced in the reporting calendar year. A factor to determine the amount of fee adjustments from one reporting calendar year to the next shall be calculated according to the following formula: [((AT RY) - (AT PY))/(AT PY)] = Factor Where: Adjusted Total (AT) equals the Amount Requested by the Director, less a projected amount from fees set in CCR s3698(a)(b)(d)(e) and CCR s3699, and less a projected amount from mine operations subject to the maximum fee amount of $4,000; Where: ATRY is the Adjusted Total for the current "Reporting Year" Where: ATPY is the Adjusted Total for the "Prior Year" The new Fee Amount for each category is determined by the following formulae (calculated amounts cannot be less than $100 or more than $4,000, as adjusted for the cost of living as measured by the California Consumer Price Index for all urban consumers, calendar year averages, using the percentage change in the previous year, beginning with the 2005-2006 fiscal year and annually thereafter, and may be rounded to the nearest $1 (one dollar): Formula 1: Current Year Reporting Fee = Prior Year Reporting Fee times (1 + Factor) if Factor is positive; Formula 2: Current Year Reporting Fee = Prior Year Reporting Fee times (1 - Factor) if Factor is negative. (1) Operations where the primary mineral commodity produced is either aggregate products or industrial minerals shall be assessed a fee as follows: Tons Fee in Dollars 0 - 100 Formula 1 or 2 (not less than $100) >100 - 1,000 Formula 1 or 2 >1,000 - 10,000 Formula 1 or 2 >10,000 - 50,000 Formula 1 or 2 >50,000 - 100,000 Formula 1 or 2 >100,000 4,000 (2) Operations where the primary mineral commodity produced is gold, silver, or precious metals shall be assessed a fee as follows: Ounces Fee in Dollars 0 - 1 Formula 1 or 2 (not less than $100) >1 - 10 Formula 1 or 2 >10 - 50 Formula 1 or 2 >50 - 150 Formula 1 or 2 >150 - 300 Formula 1 or 2 >300 4,000 (3) Operations where the primary mineral commodity produced is base metals or other metals shall be assessed a fee as follows: Pounds Fee in Dollars 0 - 10 Formula 1 or 2 (not less than $100) >10 - 100 Formula 1 or 2 >100 - 1,000 Formula 1 or 2 >1,000 - 10,000 Formula 1 or 2 >10,000 - 20,000 Formula 1 or 2 >20,000 4,000 (d) The initial reporting fee for surface mining operations shall be five hundred dollars ($500). (e) The annual reporting fee for newly permitted surface mining operations which have not yet begun operations shall be one hundred dollars ($100). (f) In addition to the annual reporting fees, the board shall collect five dollars ($5) per ounce of gold and ten cents ($0.10) per ounce of silver based on the amount of product mined within the state during the reporting year. Note: Authority cited: Section 2207, Public Resources Code. Reference: Section 2207, Public Resources Code. s 3699. Low Gross Exemptions. (a) For the calendar reporting year, a single operator or mining company may file with the Office of Mine Reclamation of the Department of Conservation, a written request for an exemption from the method of fee assessment set forth in Section 3698. Neither the State, nor any county, city, district or other political subdivision shall be eligible for an exemption under this Section. A request for an exemption must be filed on a form (Low Gross Exemption Fee Request, Form MRRC-4L) supplied by the Department of Conservation and received by the Department of Conservation by July 1 following the calendar reporting year. The Department of Conservation shall grant the exemption if information submitted and confirmed by the annual report form and approved reclamation plan, clearly demonstrates that the operation meets the following criteria: (1) material is extracted from one surface mining operation, and lead agency approval of a reclamation plan and financial assurance has been obtained; and (2) all of the single operator or mining company's surface mining operation located in the State of California is tied to, or located on, one site; and (3) the amount of the operator's gross income from the surface mining operation for the reporting calendar year was less than $100,000, and proof of gross income is supplied in the form of a signed federal tax return or returns accompanied by a complete and signed Federal Internal Revenue Service Form 4506, or a report prepared and signed by a certified public accountant; and (4) the owner or operator has submitted an annual reporting fee of four hundred dollars ($400) as adjusted for the cost of living as measured by the California Consumer Price Index for all urban consumers, calendar year averages, using the percentage change in the previous year, beginning with the 2005-2006 fiscal year and annually thereafter. (b) For any request received on or before July 1 following the reporting calendar year the Department may afford the applicant one 30-day period in which to correct minor deficiencies in the application. (c) If the Department of Conservation determines that an exemption is not warranted, the operator may appeal that determination to the Board. The appeal must be submitted in writing within fifteen (15) days of the denial of exemption notification by the Department of Conservation. The Chairman of the Board or his designee (Board Member), shall determine whether the Board has jurisdiction for the purposes of an appeal. In order for the Board to have jurisdiction the appeal must: (1) Demonstrate the exemption request was complete and filed in a timely fashion; (2) Specifically relate to the exemption criteria outlined in this Section; and (3) Specify the appellant's arguments for granting the exemption. (d) If the appeal is within the Board's jurisdiction, the Board, based on all the evidence in the record, may affirm the Department's decision or grant the exemption. If the operator does not appeal, the appeal is not within the Board's jurisdiction, or the Board affirms the Department's decision, the operator or owner shall submit an annual reporting fee calculated upon the total mineral commodity produced pursuant to Section 3698. Such fee shall be submitted within thirty (30) days of notification by the Department of Conservation or the Board. An operator or owner submitting an annual reporting fee later than thirty (30) days after notification shall be assessed a penalty and interest as provided in Public Resources Code Section 2207(d)(5). Note: Authority cited: Section 2207, Public Resources Code. Reference: Section 2207, Public Resources Code. s 3700. Applicability. Reclamation of mined lands shall be implemented in conformance with the standards in this Article. (a) The standards shall apply to each surface mining operation to the extent that: (1) they are consistent with required mitigation identified in conformance with the California Environmental Quality Act, provided that such mitigation is at least as stringent as the standards; and (2) they are consistent with the planned or actual subsequent use or uses of the mining site. (b) Where an applicant demonstrates to the satisfaction of the lead agency that an exception to the standards specified in this article is necessary based upon the approved end use, the lead agency may approve a different standard for inclusion in the approved reclamation plan. Where the lead agency allows such an exception, the approved reclamation plan shall specify verifiable, site-specific standards for reclamation. The lead agency may set standards which are more stringent than the standards set forth in this Article; however, in no case may the lead agency approve a reclamation plan which sets any standard which is less stringent than the comparable standard specified in this Article. (c) When substantial amendments are proposed to reclamation plans which were approved prior to January 15, 1993, the standards set forth in this Article shall be applied by the lead agency in approving or denying approval of the amended reclamation plan. (d) The standards in this Article shall not apply to mining operations: (1) which completed reclamation prior to January 15, 1993, in conformance with an approved reclamation plan; or (2) for which a reclamation plan has been approved prior to January 15, 1993. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3701. Definitions. The following definitions shall govern the interpretation of these regulations: "Arid" means landscapes with an average annual precipitation of five inches or less. "Contamination" means an impairment of the quality of the waters of the state to a degree which creates a hazard to the public health through poisoning or through the spread of disease. "Highwall" means the unexcavated face of exposed overburden and ore in a surface mine. "Indigenous Plants" means plants occurring naturally in an area, not introduced. "Native Species" means plant species indigenous to California, using pre-European as the historic time reference. "Noxious Weeds" means any species of plant that is or is likely to become destructive or difficult to control or eradicate, and is termed to be so by the Director of the Department of Food and Agriculture in section 4500, Title 3 of the California Code of Regulations, pursuant to the Food and Agriculture Code section 5004 et seq. "Vegetative Cover" means the vertical projection of the crown or shoot area of a species to the ground surface expressed as a percentage of the reference area (percentage can be greater than 100 percent). "Vegetative Density" means the number of individuals or stems of each species rooted within the given reference area. "Vegetative Species-richness" means the number of different plant species within the given reference area. "Wetlands" for the purposes of these regulations, the definition of wetlands shall be the same as defined in the California Fish and Game Code, section 2785, subdivision (g). Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3702. Financial Assurances. Lead agencies shall require financial assurances for reclamation in accordance with Public Resources Code section 2773.1 to ensure that reclamation is performed in accordance with the approved reclamation plan and with this article. Note: Authority cited: Sections 2755, 2773 and 2773.1, Public Resources Code. Reference: Sections 2773 and 2773.1, Public Resources Code. s 3703. Performance Standards for Wildlife Habitat. Wildlife and wildlife habitat shall be protected in accordance with the following standards: (a) Rare, threatened or endangered species as listed by the California Department of Fish and Game, (California Code of Regulations, Title 14, sections 670.2 - 670.5) or the U.S. Fish and Wildlife Service, (50 CFR 17.11 and 17.12) or species of special concern as listed by the California Department of Fish and Game in the Special Animals List, Natural Diversity Data Base, and their respective habitat, shall be conserved as prescribed by the federal Endangered Species Act of 1973, 16 U.S.C. section 1531 et seq., and the California Endangered Species Act, Fish and Game Code section 2050 et seq. If avoidance cannot be achieved through the available alternatives, mitigation shall be proposed in accordance with the provisions of the California Endangered Species Act, Fish and Game Code section 2050 et seq., and the federal Endangered Species Act of 1973, 16 U.S.C. section 1531 et seq. (b) Wildlife habitat shall be established on disturbed land in a condition at least as good as that which existed before the lands were disturbed by surface mining operations, unless the proposed end use precludes its use as wildlife habitat or the approved reclamation plan establishes a different habitat type than that which existed prior to mining. (c) Wetland habitat shall be avoided. Any wetland habitat impacted as a consequence of surface mining operations shall be mitigated at a minimum of one to one ratio for wetland habitat acreage and wetland habitat value. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3704. Performance Standards for Backfilling, Regrading, Slope Stability, and Recontouring. Backfilling, regrading, slope stabilization, and recontouring shall conform with the following standards: (a) Where backfilling is proposed for urban uses (e.g., roads, building sites, or other improvements sensitive to settlement), the fill material shall be compacted in accordance with the Uniform Building Code, published by the International Conference of Building Officials and as adopted by the lead agency, the local grading ordinance, or other methods approved by the lead agency as appropriate for the approved end use. (b) Where backfilling is required for resource conservation purposes (e.g., agriculture, fish and wildlife habitat, and wildland conservation), fill material shall be backfilled to the standards required for the resource conservation use involved. (c) Piles or dumps of mining waste shall be stockpiled in such a manner as to facilitate phased reclamation. They shall be segregated from topsoil and topsoil substitutes or growth media salvaged for use in reclamation. (d) Final reclaimed fill slopes, including permanent piles or dumps of mine waste rock and overburden, shall not exceed 2:1 (horizontal:vertical), except when site-specific geologic and engineering analysis demonstrate that the proposed final slope will have a minimum slope stability factor of safety that is suitable for the proposed end use, and when the proposed final slope can be successfully revegetated. (e) At closure, all fill slopes, including permanent piles or dumps of mine waste and overburden, shall conform with the surrounding topography and/or approved end use. (f) Cut slopes, including final highwalls and quarry faces, shall have a minimum slope stability factor of safety that is suitable for the proposed end use and conform with the surrounding topography and/or approved end use. (g) Permanent placement of piles or dumps of mining waste and overburden shall not occur within wetlands unless mitigation acceptable to the regulatory agencies with jurisdiction over wetlands, which may include the lead agency, has been proposed to offset wetland impacts and/or losses. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3704.1. Performance Standards for Backfilling Excavations and Recontouring Lands Disturbed by Open Pit Surface Mining Operations for Metallic Minerals. Notwithstanding the provisions of Section 3700(b) of this Article, no reclamation plan, including any reclamation plan in which the end use is for wildlife habitat, wildland conservation, or open space, or financial assurance for a surface mining operation subject to the provisions of this section, shall be approved by a lead agency unless the reclamation plan meets the provisions of this section. Financial assurances must be maintained in an amount sufficient to provide for the backfilling and contour grading of the mined lands as required in this section. (a) An open pit excavation created by surface mining activities for the production of metallic minerals shall be backfilled to achieve not less than the original surface elevation, unless the circumstances under subsection (h) are determined by the lead agency to exist. (b) Backfilling shall be engineered, and backfilled materials shall be treated, if necessary, to meet all of the provisions of Title 27, California Code of Regulations, Division 2, Chapter 7, Subchapter 1, Mining Waste Management, commencing with Section 22470, and the applicable Regional Water Quality Control Board's Water Quality Control Plan. (c) Excavated materials remaining in overburden piles, waste rock piles, and processed or leached ore piles not used in the backfilling process and remaining on the mine site shall be graded and contoured to create a final surface that is consistent with the original topography of the area. Care shall be taken to avoid the creation of un-natural topographic features, impediments to natural drainage, or conditions hazardous to human life and wildlife. (d) Backfilling, recontouring, and revegetation activities shall be performed in clearly defined phases to the engineering and geologic standards required for the end use of the site as stipulated in the approved reclamation plan. All fills and fill slopes shall be designed to protect groundwater quality, to prevent surface water ponding, to facilitate revegetation, to convey runoff in a non-erosive manner, and to account for long term settlement. (e) The requirements of subsections (a), (b), (c), and (d) notwithstanding, no final reclaimed fill slopes shall exceed 2:1 (horizontal:vertical), nor shall the resultant topography exceed inheight the pre-mining surface contour elevations by more than 25 feet. Final fill slopes shall have static and dynamic factors of safety, as determined by an engineer licensed in California, that are suitable for the proposed end use of the site and meet or exceed the requirements of applicable building or grading codes, ordinances, statutes, and regulations. Final slopes must be capable of being revegetated, and shall blend visually with the local topography. Surface soil shall be salvaged, stored, and reapplied to facilitate revegetation of recontoured material in accordance with the requirements of Section 3711 of this Article. (f) For the purposes of this section, a metallic mine is defined as one where more than ten percent of the mining operation's gross annual revenues as averaged over the last five years are derived from the production of, or any combination of, the following metallic minerals by the open pit extraction method: Precious metals (gold, silver, platinum); Iron; Nickel; Copper; Lead; Tin; Ferro-alloy metals (tungsten, chromium, manganese); Mercury; Uranium and thorium; Minor metals including rubidium, strontium, and cesium; Niobium and tantalum; (g) For the purposes of this regulation, an open pit mine is the same as an open pit quarry, opencast mine, or opencut mine, and is defined as a mine working or excavation that is open to the surface and in which the opening is approximately the full size of the excavation. (h) The requirement to backfill an open pit excavation to the surface pursuant to this section using materials mined on site shall not apply if there remains on the mined lands at the conclusion of mining activities, in the form of overburden piles, waste rock piles, and processed or leached ore piles, an insufficient volume of materials to completely backfill the open pit excavation to the surface, and where, in addition, none of the mined materials has been removed from the mined lands in violation of the approved reclamation plan. In such case, the open pit excavation shall be backfilled in accordance with subsections (b) and (d) to an elevation that utilizes all of the available material remaining as overburden, waste rock, and processed or leached ore. (i) This regulation does not apply to any surface mining operation as defined in Public Resources Code Section 2735(a) and (b) for which the lead agency has issued final approval of a reclamation plan and a financial assurance prior to December 18, 2002. Note: Authority cited: Sections 2755 and 2756, Public Resources Code; Reference: Sections 2733, 2772 and 2773, Public Resources Code. s 3705. Performance Standards for Revegetation. Revegetation shall be part of the approved plan, unless it is not consistent with the approved end use. (a) A vegetative cover suitable for the proposed end use and capable of self-regeneration without continued dependence on irrigation, soil amendments or fertilizer shall be established on disturbed land unless an artificially maintained landscape is consistent with the approved reclamation plan. Vegetative cover or density, and species-richness shall be, where appropriate, sufficient to stabilize the surface against effects of long-term erosion and shall be similar to naturally occurring habitats in the surrounding area. The vegetative density, cover and species richness of naturally occurring habitats shall be documented in baseline studies carried out prior to the initiation of mining activities. However, for areas that will not be reclaimed to prior conditions, the use of data from reference areas in lieu of baseline site data is permissible. (b) Test plots conducted simultaneously with mining shall be required to determine the most appropriate planting procedures to be followed to ensure successful implementation of the proposed revegetation plan. The lead agency may waive the requirement to conduct test plots when the success of the proposed revegetation plan can be documented from experience with similar species and conditions or by relying on competent professional advice based on experience with the species to be planted. (c) Where surface mining activities result in compaction of the soil, ripping, disking, or other means shall be used in areas to be revegetated to eliminate compaction and to establish a suitable root zone in preparation for planting. (d) Prior to closure, all access roads, haul roads, and other traffic routes to be reclaimed shall be stripped of any remaining roadbase materials, prepared in accordance with subsection 3705(g), covered with suitable growth media or topsoil, and revegetated. When it is not necessary to remove roadbase materials for revegetative purposes, lead agencies may set a different standard as specified in section 3700(b) of this Article. (e) Soil analysis shall be required to determine the presence or absence of elements essential for plant growth and to determine those soluble elements that may be toxic to plants, if the soil has been chemically altered or if the growth media consists of other than the native topsoil. If soil analysis suggests that fertility levels or soil constituents are inadequate to successfully implement the revegetative program, fertilizer or other soil amendments may be incorporated into the soil. When native plant materials are used, preference shall be given to slow-release fertilizers, including mineral and organic materials that mimic natural sources, and shall be added in amounts similar to those found in reference soils under natural vegetation of the type being reclaimed. (f) Temporary access for exploration or other short-term uses on arid lands shall not disrupt the soil surface except where necessary to gain safe access. Barriers shall be installed when necessary to gain safe access. Barriers shall be installed when necessary to prevent unauthorized vehicular traffic from interfering with the reclamation of temporary access routes. (g) Native plant species shall be used for revegetation, except when introduced species are necessary to meet the end uses specified in the approved reclamation plan. Areas to be developed for industrial, commercial, or residential use shall be revegetated for the interim period, as necessary, to control erosion. In this circumstance, non-native plant species may be used if they are not noxious weeds and if they are species known not to displace native species in the area. (h) Planting shall be conducted during the most favorable period of the year for plant establishment. (i) Soil stabilizing practices shall be used where necessary to control erosion and for successful plant establishment. Irrigation may be used when necessary to establish vegetation. (j) If irrigation is used, the operator must demonstrate that the vegetation has been self-sustaining without irrigation for a minimum of two years prior to release of the financial assurances by the lead agency, unless an artificially maintained landscape is consistent with the approved end use. (k) Noxious weeds shall be managed: (1) when they threaten the success of the proposed revegetation; (2) to prevent spreading to nearby areas; and (3) to eliminate fire hazard. (l) Protection measures, such as fencing of revegetated areas and/or the placement of cages over individual plants, shall be used in areas where grazing, trampling, herbivory, or other causes threaten the success of the proposed revegetation. Fencing shall be maintained until revegetation efforts are successfully completed and the lead agency authorizes removal. (m) Success of revegetation shall be judged based upon the effectiveness of the vegetation for the approved end use, and by comparing the quantified measures of vegetative cover, density, and species-richness of the reclaimed mined-lands to similar parameters of naturally occurring vegetation in the area. Either baseline data or data from nearby reference areas may be used as the standard for comparison. Quantitative standards for success and the location(s) of the reference area(s) shall be set forth in the approved reclamation plan. Comparisons shall be made until performance standards are met provided that, during the last two years, there has been no human intervention, including, for example, irrigation, fertilization, or weeding. Standards for success shall be based on expected local recovery rates. Valid sampling techniques for measuring success shall be specified in the approved reclamation plan. Sample sizes must be sufficient to produce at least an 80 percent confidence level. There are standard statistical methods in commonly available literature for determining an 80 percent confidence level on a site-by-site basis. Examples of such literature include, but are not limited to, D. Mueller-Dombois and H. Ellenberg, 1974, "Aims and Methods of Vegetation Ecology", John Wiley and Sons, Inc., or C. D. Bonham, 1988, "Measurements for Terrestrial Vegetation", John Wiley and Sons, Inc., and are available at many university libraries. The texts are also available at some local libraries through the Inter-Library Loan Program. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3706. Performance Standards for Drainage, Diversion Structures, Waterways, and Erosion Control. (a) Surface mining and reclamation activities shall be conducted to protect on-site and downstream beneficial uses of water in accordance with the Porter-Cologne Water Quality Control Act, Water Code section 13000, et seq., and the Federal Clean Water Act, 33 U.S.C. section 1251, et seq. (b) The quality of water, recharge potential, and storage capacity of ground water aquifers which are the source of water for domestic, agricultural, or other uses dependent on the water, shall not be diminished, except as allowed in the approved reclamation plan. (c) Erosion and sedimentation shall be controlled during all phases of construction, operation, reclamation, and closure of a surface mining operation to minimize siltation of lakes and watercourses, as required by the Regional Water Quality Control Board or the State Water Resources Control Board. (d) Surface runoff and drainage from surface mining activities shall be controlled by berms, silt fences, sediment ponds, revegetation, hay bales, or other erosion control measures, to ensure that surrounding land and water resources are protected from erosion, gullying, sedimentation and contamination. Erosion control methods shall be designed to handle runoff from not less than the 20 year/1 hour intensity storm event. (e) Where natural drainages are covered, restricted, rerouted, or otherwise impacted by surface mining activities, mitigating alternatives shall be proposed and specifically approved in the reclamation plan to assure that runoff shall not cause increased erosion or sedimentation. (f) When stream diversions are required, they shall be constructed in accordance with: (1) the stream and lake alteration agreement between the operator and the Department of Fish and Game; and (2) the requirements of the Federal Clean Water Act, Sections 301 (33 U.S.C. 1311) and Section 404 (33 U.S.C. 1344) and/or Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403). (g) When no longer needed to achieve the purpose for which they were authorized, all temporary stream channel diversions shall be removed and the affected land reclaimed. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3707. Performance Standards for Prime Agricultural Land Reclamation. In addition to the standards for topsoil salvage, maintenance, and redistribution, the following standards shall apply to mining operations on prime agricultural lands where the approved end use is agriculture: (a) Mining operations which will operate on prime agricultural lands, as defined by the U.S. Soil Conservation Service, shall return all disturbed areas to a fertility level as specified in the approved reclamation plan. (b) When distinct soil horizons are present, topsoil shall be salvaged and segregated by defined A, B, and C soil horizons. Upon reconstruction of the soil, the sequence of horizons shall have the A atop the B, the B atop the C, and the C atop graded overburden. (c) Reclamation shall be deemed complete when productive capability of the affected land is equivalent to or exceeds, for two consecutive crop years, that of the premining condition or similar crop production in the area. Productivity rates, based on reference areas described in the approved reclamation plan, shall be specified in the approved reclamation plan. (d) Use of fertilizers or other soil amendments shall not cause contamination of surface or ground water. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3708. Performance Standards for Other Agricultural Land. The following standards shall apply to agricultural lands, other than prime agricultural lands, when the approved end use is agriculture. In addition to the standards for topsoil salvage, maintenance, and redistribution, non-prime agricultural lands shall be reclaimed so as to be capable of sustaining economically viable production of crops commonly grown in the surrounding areas. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3709. Performance Standards for Building, Structure, and Equipment Removal. (a) All equipment, supplies and other materials shall be stored in designated areas (as shown in the approved reclamation plan). All waste shall be disposed of in accordance with state and local health and safety ordinances. (b) All buildings, structures, and equipment shall be dismantled and removed prior to final mine closure except those buildings, structures, and equipment approved in the reclamation plan as necessary for the end use. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3710. Performance Standards for Stream Protection, Including Surface and Groundwater. (a) Surface and groundwater shall be protected from siltation and pollutants which may diminish water quality as required by the Federal Clean Water Act, sections 301 et seq. (33 U.S.C. section 1311), 404 et seq. (33 U.S.C. section 1344), the Porter-Cologne Act, section 13000 et seq., County anti-siltation ordinances, the Regional Water Quality Control Board or the State Water Resources Control Board. (b) In-stream surface mining operations shall be conducted in compliance with Section 16000 et seq. of the California Fish and Game Code, section 404 of the Clean Water Act, and Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403). (c) Extraction of sand and gravel from river channels shall be regulated to control channel degredation in order to prevent undermining of bridge supports, exposure of pipelines or other structures buried within the channel, loss of spawning habitat, lowering of ground water levels, destruction of riparian vegetation, and increased stream bank erosion (exceptions may be specified in the approved reclamation plan). Changes in channel elevations and bank erosion shall be evaluated annually using records of annual extraction quantities and benchmarked annual cross sections and/or sequential aerial photographs to determine appropriate extraction locations and rates. (d) In accordance with requirements of the California Fish and Game Code section 1600 et seq., in-stream mining activities shall not cause fish to become entrapped in pools or in off-channel pits, nor shall they restrict spawning or migratory activities. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3711. Performance Standards for Topsoil Salvage, Maintenance, and Redistribution. When the approved reclamation plan calls for revegetation or cultivation of disturbed lands, the following performance standards shall apply to topsoil salvage, maintenance, and redistribution activities: (a) All salvageable topsoil suitable for revegetation shall be removed as a separate layer from areas to be disturbed by mining operations. Topsoil and vegetation removal shall not precede surface mining activities by more than one year, unless a longer time period is approved by the lead agency. (b) Topsoil resources shall be mapped prior to stripping and the location of topsoil stockpiles shall be shown on a map in the reclamation plan. If the amount of topsoil needed to cover all surfaces to be revegetated is not available on site, other suitable material capable of sustaining vegetation (such as subsoil) shall be removed as a separate layer for use as a suitable growth media. Topsoil and suitable growth media shall be maintained in separate stockpiles. Test plots may be required to determine the suitability of growth media for revegatation purposes. (c) Soil salvage operations and phases of reclamation shall be carried out in accordance with a schedule that: (1) is set forth in the approved reclamation plan; (2) minimizes the area disturbed; and (3) is designed to achieve maximum revegetation success allowable under the mining plan. (d) Topsoil and suitable growth media shall be used to phase reclamation as soon as can be accommodated by the mining schedule presented in the approved reclamation plan following the mining of an area. Topsoil and suitable growth media that cannot be utilized immediately for reclamation shall be stockpiled in an area where it will not be disturbed until needed for reclamation. Topsoil and suitable growth media stockpiles shall be clearly identified to distinguish them from mine waste dumps. Topsoil and suitable growth media stockpiles shall be planted with a vegetative cover or shall be protected by other equally effective measures to prevent water and wind erosion and to discourage weeds. Relocation of topsoil or suitable growth media stockpiles for purposes other than reclamation shall require prior written approval from the lead agency. (e) Topsoil and suitable growth media shall be redistributed in a manner that results in a stable, uniform thickness consistent with the approved end use, site configuration, and drainage patterns. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3712. Performance Standards for Tailing and Mine Waste Management. State Water Resources Control Board mine waste disposal regulations in Article 1, Subchapter 1, Chapter 7 of Title 27, California Code of Regulations, shall govern mine waste and tailings, and mine waste disposal units shall be reclaimed in conformance with this article. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3713. Performance Standards for Closure of Surface Openings. (a) Except those used solely for blasting or those that will be mined through within one year, all drill holes, water wells, and monitoring wells shall be completed or abandoned in accordance with each of the following: (1) Water Code sections 13700, et seq. and 13800, et seq.; (2) the applicable local ordinance adopted pursuant to Water Code section 13803; (3) the applicable Department of Water Resources report issued pursuant to Water Code section 13800; and (4) Subdivisions (1) and (2) of section 2511(g) of Chapter 15 of Title 23 regarding discharge of waste to land. (b) Prior to closure, all portals, shafts, tunnels, or other surface openings to underground workings shall be gated or otherwise protected from public entry in order to eliminate any threat to public safety and to preserve access for wildlife habitat. Note: Authority cited: Sections 2755, 2756 and 2773, Public Resources Code. Reference: Section 2773, Public Resources Code. s 3720. Purpose. These regulations shall govern the exercise of city, county and state agency responsibilities to identify and map seismic hazard zones and to mitigate seismic hazards to protect public health and safety in accordance with the provisions of the Public Resources Code, section 2690 et seq. (Seismic Hazards Mapping Act). Note: Authority cited: Sec tion 2695, Public Resources Code. Reference: Section 2695(a)(1) and (3)-(5), Public Resources Code. s 3721. Definitions. (a) " Acceptable Level" means that level that provides reasonable protection of the public safety, though it does not necessarily ensure continued structural integrity and functionality of the project. (b) "Lead Agency" means the city, county or state agency with the authority to approve projects. (c) "Registered civil engineer" or "certified engineering geologist" means a civil engineer or engineering geologist who is registered or certified in the State of California. Note: Authority cited: Sec tion 2695, Public Resources Code. Reference: Sections 2690-2696.6, Public Resources Code. s 3722. Requirements for Mapping Seismic Hazard Zones. (a) The Department of Conservation, Division of Mines and Geology, shall prepare one of more State-wide probabilistic ground shaking maps for a suitably defined reference soil column. One of the maps shall show ground shaking levels which have a 10% probability of being exceeded in 50 years. These maps shall be used with the following criteria to define seismic hazard zones: (1) Amplified shaking hazard zones shall be delineated as areas where historic occurrence of amplified ground shaking, or local geological and geotechnical conditions indicate a potential for ground shaking to be amplified to a level such that mitigation as defined in Public Resources Code Section 2693(c) would be required. (2) Liquefaction hazard zones shall be delineated as areas where historic occurrence of liquefaction, or local geological, geotechnical and ground water conditions indicate a potential for permanent ground displacements such that mitigation as defined in Public Resources Code Section 2693(c) would be required. (3) Earthquake-induced landslide hazard zones shall be delineated as areas where Holocene occurrence of landslide movement, or local slope of terrain, and geological, geotechnical and ground moisture conditions indicate a potential for permanent ground displacements such that mitigation as defined in Public Resources Code Section 2693(c) would be required. (b) Highest priority for mapping seismic hazard zones shall be given to areas facing urbanization or redevelopment in conjunction with the factors listed in section 2695(a)(2)(A), (B), (C) and (D) of the Public Resources Code. Note: Authority cited: Sec tion 2695, Public Resources Code. Reference: Section 2695(a)(1), Public Resources Code. s 3723. Review of Preliminary Seismic Hazard Zones Maps. (a) The Mining and Geology Board shall provide an opportunity for receipt of public comments and recommendations during the 90-day period for review of preliminary seismic hazard zone maps provided by the Public Resources Code Section 2696. At least one public hearing shall be scheduled for that purpose. (b) Following the end of the review period, the Board shall forward its comments and recommendations, with supporting data received, to the State Geologist for consideration prior to revision and official issuance of the maps. Note: Authority cited: Sec tion 2696, Public Resources Code. Reference: Section 2696, Public Resources Code. s 3724. Specific Criteria for Project Approval. The following specific criteria for project approval shall apply within seismic hazard zones and shall be used by affected lead agencies in complying with the provisions of the Act: (a) A project shall be approved only when the nature and severity of the seismic hazards at the site have been evaluated in a geotechnical report and appropriate mitigation measures have been proposed. (b) The geotechnical report shall be prepared by a registered civil engineer or certified engineering geologist, having competence in the field of seismic hazard evaluation and mitigation. The geotechnical report shall contain site-specific evaluations of the seismic hazard affecting the project, and shall identify portions of the project site containing seismic hazards. The report shall also identify off-site seismic hazards that could adversely affect the site in the event of an earthquake. The contents of the geotechnical report shall include, but shall not be limited, the following: (1) Project description. (2) A description of the geologic and geotechnical conditions at the site, including an appropriate site location map. (3) Evaluation of site-specific seismic hazards based on geological and geotechnical conditions, in accordance with current standards of practice. (4) Recommendations for appropriate mitigation measures as required in section 3724 (a), above (5) Name of report preparer(s), and signature(s) of a certified engineering geologist and/or registered civil engineer, having competence in the field of seismic hazard evaluation and mitigation. (c) Prior to approving the project, the lead agency shall independently review the geotechnical report to determine the adequacy of the hazard evaluation and proposed mitigation measures and to determine that the requirements of section 3724 (a), above, are satisfied. Such reviews shall be conducted by a certified engineering geologist or registered civil engineer, having competence in the field of seismic hazard evaluation and mitigation. Note: Authority cited: Sec tion 2695, Public Resources Code. Reference: Section 2695(a)(3)(A), (B), and (C), Public Resources Code. s 3725. Waivers of Geotechnical Report Requirements. For a specific project, the lead agency may determine that the geological and geotechnical conditions at the site are such that public safety is adequately protected and no mitigation is required. This finding shall be based on a report presenting evaluations of sites in the immediate vicinity having similar geologic and geotechnical characteristics. The report shall be prepared by a certified engineering geologist or registered civil engineer, having competence in the field of seismic hazard evaluation and mitigation. The lead agency shall review submitted reports in the same manner as in section 3724(c) of this article. The lead agency shall also provide a written commentary that addresses the report conclusions and the justification for applying the conclusions contained in the report to the project site. When the lead agency makes such a finding, it may waive the requirement of a geotechnical report for the project. All such waivers shall be recorded with the county recorder and a separate copy, together with the report and the commentary, filed with the State Geologist within 30 days of the waiver. Note: Authority cited: Sec tion 2695, Public Resources Code. Reference: Section 2697(a)(5), Public Resources Code. s 3726. Selection of Professional Service Firms. (a) The purpose of these regulations is to establish those procedures authorized and required by Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. These regulations are specific to the Seismic Hazards Mapping Act (PRC Section 2690 et. seq.). (b) Selection by the department for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Note: Authority cited: Section 2695, Public Resources Code; and Section 4526, Government Code. Reference: Sections 4525-4529.5, Government Code. s 3727. Definitions, As Used in These Regulations. (a) "Small business" shall mean a small business firm as defined by the Director of General Services (section 1896 of Title 2 of the California Code of Regulations) pursuant to section 14837 of the Government Code. (b) "Architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services" are those services to be procured outside State of California Civil Service procedures and of a character necessarily rendered by an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor but may include ancillary services logically or justifiably performed in connection therewith. (c) "Project" means a project as defined in Section 10105 of the Public Contract Code, or as defined in the Public Resources Code Section 21065. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4525 and 14837, Government Code; Section 10105, Public Contract Code; and Section 21065, Public Resources Code. s 3728. Establishment of Criteria. (a) The department shall establish criteria, on a case by case instance, which will comprise the basis for selection for each project. The criteria shall include such factors as professional excellence, demonstrated competence, specialized experience of the firm, education and experience of key personnel to be assigned, staff capability, workload, ability to meet schedules, nature and quality of completed work, reliability and continuity of the firm, location, and other considerations deemed relevant. Such factors shall be weighted by the department according to the nature of the project, the needs of the State and complexity and special requirements of the specific project. (b) In no event shall the criteria include practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration. Department employees with a relationship to a person or business entity seeking a contract under this section are prohibited from participating in the selection process if the employees would be subject to the prohibition of Section 87100 of the Government Code. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526 and 87100, Government Code. s 3729. Estimate of Value of Services. Before any discussion with any firm concerning fees, the department may cause an estimate of the value of such services to be prepared. This estimate shall serve as a guide in determining fair and reasonable compensation for the services rendered. Such estimate shall be, and remain, confidential until award of contract or abandonment of any further procedure for the services to which it relates. At any time the department determines the estimates to be unrealistic because of rising costs, special conditions, or for other relevant considerations, the estimate may be reevaluated and modified if necessary. Note: Authority cited: Section 4526, Government Code. Reference: Section 4528, Government Code. s 3730. Request for Proposals. (a) Where a project requires architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services, the department shall make an announcement through a publication of the respective professional society, if any exist, in a construction trade journal or, if none exist, in other appropriate publications that are published within a reasonable time frame such that a lengthy publication delay does not adversely affect the project. (b) The announcement shall contain the following information: The nature of the work, the criteria upon which the award shall be made, and the time within which statements of interest, qualification and performance data will be received. (c) The department shall endeavor to provide to all small business firms who have indicated an interest in receiving such, a copy of each announcement for projects for which the department concludes that small business firms could be especially qualified. A failure of the department to send a copy of an announcement to any firm shall not operate to preclude any contract. Note: Authority cited: Section 4526, Government Code. Reference: Section 4527, Government Code. s 3731. Selection of Firm. After expiration of the period stated in the publications or other public announcements, the department shall evaluate statements of qualifications and performance data which have been submitted to the department. Discussions shall be conducted with no less than three firms regarding the required service. Where three firms cannot be found which could provide the required service, a full explanation including names and addresses of firms and individuals requested to submit proposals must be entered in the files. From the firms with which discussions are held, the department shall select no less than three, provided at least three firms submit proposals, in order of preference, based upon the established criteria, which are deemed to be the most highly qualified to provide the services required. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526-4527, Government Code. s 3732. Negotiation. The department shall attempt to negotiate a contract with the most highly qualified firm. When the department is unable to negotiate a satisfactory contract with this firm with fair and reasonable compensation provisions, as determined by the procedure set forth in Section 3729 if those procedures were used, negotiations shall be terminated. The department shall then undertake negotiations with the second most qualified firm on the same basis. Failing accord, negotiations shall be terminated. The department shall then undertake negotiations with the third most qualified firm on the same basis. Failing accord, negotiations shall be terminated. Should the department be unable to negotiate a satisfactory contract at fair and reasonable compensation with any of the selected firms, additional firms may be selected in the manner prescribed in this article and the negotiation procedure continued. Note: Authority cited: Section 4526, Government Code. Reference: Section 4528, Government Code. s 3733. Amendments. In instances where the department effects a necessary change in the project during the course of performance of the contract, the firm's compensation may be adjusted by negotiation of a mutual written agreement in a fair and reasonable amount where the amount of work to be performed by the firm is changed from that which existed previously in the contemplation of the parties. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3734. Contracting in Phases. Should the department determine that it is necessary or desirable to have a given project performed in phases, it will not be necessary to negotiate the total contract price or compensation provisions in the initial instance, provided that the department shall have determined that the firm is best qualified to perform the whole project at a fair and reasonable cost, and the contract contains provisions that the department, at its option, may utilize the firm for other phases and that the firm will accept a fair and reasonable price for subsequent phases to be later negotiated and reflected in a subsequent written instrument. The procedure with regard to estimates and negotiation shall otherwise be applicable. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3735. Department's Power to Require Bids. Where the department determines that the services needed are technical in nature and involve little professional judgment and that requiring bids would be in the public interest, a contract shall be awarded on the basis of bids rather than by following the foregoing procedures for requesting proposals and negotiation. Note: Authority cited: Section 4526, Government Code. Reference: Section 4529, Government Code. s 3736. Exclusions. The provisions of this article shall not apply to service agreements for an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor, engaged to provide consulting services on specific problems on projects where the architectural, landscape architectural, engineering, environmental, land surveying, or construction project management work is being performed by State of California Civil Service employees. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3800. Purpose. It is the purpose of this article to specify additional financial assurance mechanisms to assure reclamation pursuant to Public Resources Code Section 2710 et seq. (Surface Mining and Reclamation Act, as amended). Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3801. Authority. Review, approval, adjustment, enforcement, notification, forfeiture and all other responsibilities of the lead agency, operator and Department of Conservation with respect to financial assurances shall be conducted as prescribed in Public Resources Code Section 2710 et seq. unless expressly outlined in this article. Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3802. Definitions. The following definitions shall govern the interpretation of this article: (a) "Budget Set Aside" means a financial assurance mechanism, meeting the requirements of Section 3806.2 of this article, by which a government entity proposes to make specific identified monies within the entity's budget available to perform reclamation pursuant to the approved reclamation plan. (b) "Financial Assurance Amount" means that amount of money necessary to conduct and complete reclamation on the mined lands in accordance with the approved reclamation plan, plus a reasonable estimate of the administrative costs and expenses which would be incurred by the lead agency or the Department of Conservation, the total of which shall be calculated in accordance with section 3804, and shall constitute an obligation to pay by the operator. (c) "Financial Assurance" means an instrument, fund or other form of Financial Assurance as provided in Section 2773.1(a) and (e) of the Public Resources Code and this Article. (d) "Pledge of Revenue" means a financial assurance mechanism meeting the requirements of Section 3806.1, of this Article, by which a governmental entity proposes to make specific, identified future revenue available to perform reclamation pursuant to the approved reclamation plan. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2726-2734, Public Resources Code. s 3803. Financial Assurance Mechanisms. As outlined by this article, financial assurances may take the form of any one or a combination of the following, which the lead agency, upon review by the Department of Conservation, reasonably determines are adequate to perform reclamation in accordance with the approved reclamation plan. (a) For non-governmental entity operators: (1) Surety bonds; (2) Irrevocable letters of credit; and (3) Trust funds; (b) For governmental entity operators: (1) Surety bonds; (2) Irrevocable letters of credit; (3) Trust funds; (4) Pledges of Revenue; or (5) Budget Set Aside. Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3804. Calculation of Financial Assurance Amount. (a) The Financial Assurance Amount shall be calculated as prescribed in Public Resources Code Section 2773.1 and based on: (1) an analysis of the physical activities and materials necessary to implement the approved reclamation plan; (2) the lead agency's unit costs, or costs for third party contracting, for each of these activities, if applicable; (3) the number of units of each of these activities, if applicable; (4) a contingency amount not to exceed 10% of the reclamation costs. (b) The calculated amount should not include the cost of completing mining of the site. (c) In order for the lead agency or the Department of Conservation to determine what annual adjustments, if any, are appropriate to the Financial Assurance Amount, the operator shall annually submit to the lead agency a revision of the written calculation required under Section 3804(a). Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3805. Review by the Department of Conservation. Pursuant to Section 2774(c), Public Resources Code, the lead agency shall submit a copy of the proposed Financial Assurance and the Calculation of Financial Assurance Amount submitted by the operator pursuant to Section 3804 to the Director of the Department of Conservation for review. With this submittal the lead agency shall include the information and documentation relied upon in calculating the amount of the proposed Financial Assurance and indicate to the Director that the Financial Assurance Amount is adequate for the lead agency or the Department of Conservation to conduct and complete reclamation on the mined lands in accordance with the approved reclamation plan. The Director shall have 45 days, upon receipt, to prepare written comments regarding the proposed Financial Assurance, if he/she so chooses. Note: Authority cited: Section 2774, Public Resources Code. Reference: Section 2774(c), (d), Public Resources Code. s 3805.5. Modification or Release of Financial Assurance. (a) Prior to the modification of a financial assurance amount, or to the release of the financial assurance instrument to which both the lead agency and the Department of Conservation are co-beneficiaries under Public Resources Code section 2773.1, the lead agency shall provide to the director of the department the following documents at one time: (1) An inspection report, prepared by a qualified person as provided for in Public Resources Code section 2774, indicating that there are aspects of the surface mining operation that require modification of the existing financial assurance amount, or stating that the mined land has been reclaimed in accordance with the approved reclamation plan, and that there are no aspects of the reclaimed surface mining operation that are inconsistent with the meaning of reclamation as defined in Public Resources Code section 2733, and the Surface Mining and Reclamation Act of 1975, Chapter 9, commencing with section 2710. (2) A revised financial assurance cost estimate prepared by the operator and accepted by the lead agency, or prepared by the lead agency, in accordance with Public Resources Code section 2773.1, with supporting documentation, indicating the specific cost changes to the existing financial assurance amount, or indicating that there are no further outstanding reclamation liabilities to be included in the financial assurance. (3) A statement by the lead agency, with supporting documentation that may include the most recent inspection report and any geological and engineering reports prepared as part of the inspection report, that the mined land remains subject to a financial assurance as modified, or that the mined land has been reclaimed in accordance with the approved reclamation plan, that there are no outstanding reclamation liabilities, and recommending to the director that the financial assurance be released. (b) The director shall have 45 days from the date of receipt of the documents to review and comment on them as provided for in Public Resources Code section 2774, and to conduct the director's own inspection of the surface mining operation if the director determines it necessary under Public Resources Code section 2774.1, and do one of the following: (1) Notify the lead agency of the director's concurrence that the modified financial assurance amount is adequate, or that there are no outstanding reclamation liabilities on the mined land and that the original financial assurance should be released pursuant to Public Resources Code section 2773.1, at which time the financial assurance shall be released; or, (2) Notify the lead agency that the director has found, based upon an inspection, aspects of the surface mining operation that require additional modifications to the financial assurance amount, or aspects that are not in compliance with the approved reclamation plan and the Surface Mining and Reclamation Act of 1975; or, (3) Commence the financial assurance forfeiture process under Public Resources Code section 2773.1. (c) If a violation by the surface mining operation is confirmed by an inspection either by the lead agency or by the director, then the lead agency, or the director, may take actions under Public Resources Code section 2774.1 to ensure that the violation is corrected. In any event, the financial assurance shall not be released until the violation is corrected. (d) Prior to sending written notification and release of financial assurances as provided under Public Resources Code section 2773.1, the lead agency shall obtain written concurrence of the director that the completion of reclamation of the mined land disturbed by the surface mining operation is in accordance with the requirements of the lead agency-approved reclamation plan. (e) If a violation of the Surface Mining and Reclamation Act of 1975 or of the approved reclamation plan is confirmed by the inspection, and the lead agency does not take action under Public Resources Code section 2774.1 to ensure that the violation is corrected or take action under Public Resources Code section 2773.1 for forfeiture of the financial assurance, then the director may refer the matter to the board for further action under Public Resources Code section 2774.4. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2729, 2731, 2733, 2735, 2773.1, 2774 and 2774.1, Public Resources Code.Authority cited: Section 2755, Public Resources Code. Reference: Sections 2729, 2731, 2733, 2735, 2773.1, 2774 and 2774.1, Public Resources Code. s 3806. Surface Mining Operations Owned and Operated by State or Local Governmental Entities. In addition to the mechanisms provided in Public Resources Section 2773.1 and this article, a financial assurance mechanism for reclamation for a surface mining operation owned and operated by the state, county, city, district, or other political subdivision may be in the form of a: (a) Pledge of Revenue; or (b) Budget Set Aside. These financial assurance mechanisms may only be used by the state, county, city, district, or other political subdivision. Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3806.1. Pledge of Revenue. (a) A pledge of revenue shall consist of a resolution or other appropriate document from the governing body of the state, county, city, district, or other political subdivision responsible for reclamation of the mined lands pursuant to the approved reclamation plans. The resolution or document shall remain effective continuously throughout the period in which the pledge of revenue is used to satisfy the requirements of Section 2773.1, Public Resources Code. (b) The pledge of revenue shall contain the following items: (1) The resolution or document establishing the pledge of revenue; (2) The types and sources of pledged revenue; (3) The period of time that each source of revenue is pledged to be available; (4) The calculation amount of the financial assurance prepared pursuant to Section 3804; and (5) The authorization for the lead agency or the Department of Conservation to use the proceeds of the pledge to conduct and complete reclamation if the lead agency or the Department of Conservation determines that the operator is incapable of performing the reclamation covered by the pledge pursuant to Section 2773.1(b). (c) The state, county, city, district, or other political subdivision may pledge any following types of revenue that it controls and that will be available in a timely manner to conduct and complete reclamation: (1) Fees, rents, or other charges; (2) Tax revenues within statutory limitations; and/or (3) Other guaranteed revenues that are acceptable to the lead agency and the Board. (d) If the governmental entity ceases at any time to retain control of its ability to allocate any pledged revenue to conduct and complete reclamation, the entity shall notify the lead agency and the Department of Conservation and shall obtain alternative coverage within 60 days after control lapses. Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3806.2. Budget Set Aside. (a) A Budget Set Aside shall consist of a specific fund or line item set aside by the state, county, city, district or other political subdivision responsible for reclamation of the mined lands. The Budget Set Aside shall remain effective continuously throughout the period in which the Budget Set Aside is used to satisfy the requirements of Section 2773.1, Public Resources Code. (b) The set aside shall contain the following items: (1) A resolution or other appropriate document establishing the set aside or line item including proof of approval by the governing body or appropriate official of the state, county, city, district, or other political subdivision; (2) The types and sources of specific funds; (3) The period of time that each funding source is to be available: (4) The calculation amount of the financial assurance prepared pursuant to Section 3804; and (5) The authorization for the lead agency or the Department of Conservation to use the funds to conduct and complete reclamation if the lead agency or the Department of Conservation determines that the operator is incapable of performing the reclamation covered by the set aside pursuant to Section 2773.1(b). Note: Authority cited: Section 2773.1, Public Resources Code. Reference: Section 2773.1(e), Public Resources Code. s 3806.3. Acceptance of Liability. (a) An Acceptance of Liability shall consist of a specific written statement by a Federal entity responsible for performing reclamation that obligates that Federal entity for all costs associated with the full reclamation of mined lands in accordance with the requirements of an approved reclamation plan. (b) The Acceptance of Liability shall contain the following items: (1) a duly authorized resolution, statement, or other appropriate document that guarantees liability and obligates the Federal entity to reclaim the mine site; and, (2) a statement that if the Federal entity ceases at any time to retain control of the mine operation, that the Federal entity's Acceptance of Liability shall remain in effect until the succeeding mine operator provides a financial assurance mechanism provided for in Public Resources Code Section 2773.1 and this Article 11. In no event shall any succeeding mine operator commence surface mining operations until a financial assurance mechanism is accepted by the lead agency. Note: Authority cited: Sections 2755 and 2773.1, Public Resources Code. Reference: Section 2773.1, Public Resources Code. s 3806.5. Surface Mining Operations Owned and Operated by a Federal Entity on State Owned Land. In addition to the financial assurance mechanisms provided in Public Resources Code Section 2773.1 and this Article 11, a financial assurance mechanism for reclamation for a surface mining operation owned and operated on State lands by a Federal entity may be in the form of a: (a) Pledge of Revenue (b) Budget Set Aside (c) Acceptance of Liability Note: Authority cited: Sections 2755 and 2773.1, Public Resources Code. Reference: Section 2773.1, Public Resources Code. s 3810. Purpose. The purpose of this article is to define the procedures to be followed by the lead agency, or the board acting at the request of the director, or when the board is acting as lead agency pursuant to Public Resources Code Section 2774.4 or Section 2774.5, in determining whether a surface mine operator is financially incapable of performing reclamation in accordance with its approved reclamation plan, or has abandoned its surface mining operation without commencing reclamation, and should therefore forfeit its financial assurance pursuant to Public Resources Code Section 2773.1(b). Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2773.1, 2774.4 and 2774.5, Public Resources Code. s 3811. Circumstances Leading to a Hearing. A lead agency or the board may conduct a hearing to determine the forfeiture of financial assurances when any of the following circumstances has occurred: (a) Unless an appeal of a financial assurance amount is pending before the board pursuant to Public Resources Code Section 2770, an operator has failed to provide an acceptable financial assurance mechanism within 30 days of notification by the lead agency of its approval of an adequate financial assurance amount. Acceptable financial assurance mechanisms are described in Title 14, California Code of Regulations Section 3803. (b) The operator has failed to provide the lead agency with a revised financial assurance cost estimate as required by Public Resources Code Section 2773.1 that adequately addresses the criteria contained in Title 14, California Code of Regulations Section 3804 within 30 days of receipt of notification to provide a revised cost estimate. (c) An acceptable financial assurance mechanism has lapsed and has not been renewed or replaced by another acceptable mechanism within 30 days and any remaining financial assurance coverage is not, according to the lead agency, adequate by itself to ensure the reclamation of the mine site according to the approved reclamation plan. (d) The lead agency is unable to contact the mine operator or the mine's agent of record after 90 days of the mine's becoming idle as defined in Public Resources Code Section 2727.1. (e) The surface mining operation meets the criteria stated under Public Resources Code Section 2770(h)(6). Submitting of an interim management plan after the operator has been notified that his or her mine meets the criteria in Section 2770(h)(6) shall not prevent the lead agency or the board from proceeding with its hearing. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2727.1, 2770 and 2773.1, Public Resources Code. s 3812. Public Hearing. The determination by the lead agency or the board that a surface mine operator is financially incapable of reclaiming according to an approved reclamation plan, or that an operator has abandoned a mine site without commencing reclamation, shall be made during a public hearing. The hearing may be conducted as part of a regularly scheduled business meeting of the lead agency, or may be held during a special meeting. Where the board is the lead agency, the board may delegate the hearing to a committee composed of not less than two board members selected by the board Chairman or the Chairman's designee. The determination of the board committee shall be reported to the full board for its action at its next meeting. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2773.1, Public Resources Code. s 3813. Hearing Procedure - Notice. (a) The local lead agency shall give prior notice of the public hearing in accordance with the provisions of its local ordinances. (b) Where the board is the lead agency, at least 10 days prior to the hearing date, public notice shall be given as follows: (1) Mailing the notice to the operator and to the director. (2) Mailing the notice to any person who requests notice of the hearing; (3) Mailing the notice to the board's regular mailing list; and, (4) Mailing the notice to the city or county jurisdiction within which the surface mining operation is located. (c) The notice of hearing shall include the following: (1) The name of the surface mine operator or agent of record; (2) Identification of the surface mining operation, and a brief description of the location of the operation by reference to any commonly known landmarks in the area; (3) A statement that the purpose of the hearing is to determine the financial capability of the operator to reclaim his or her mining operation in accordance with the approved reclamation plan; (4) A statement inviting the operator, public agencies, and other interested persons to make statements at the hearing regarding the decision of the lead agency; and, (5) The time, date, and location of the public hearing. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2773.1, Public Resources Code. s 3814. Administrative Record. The administrative record shall consist of, but not be limited to, the following: (a) The approved reclamation plan for the mining operation; (b) The currently approved financial assurance mechanism in an amount certain; (c) The name and address of the surface mining operator and the name and address of any person designated by the operator as an agent for the service of process; (d) A detailed cost estimate provided by the operator and supporting a financial assurance amount prepared by a qualified individual, such as a licensed grading contractor, licensed civil engineer, or a licensed geologist, who must be licensed in the state of California, and prepared not more than six months from the last annual inspection of the mine conducted by the lead agency; (e) A copy of the last annual inspection report conducted by the lead agency pursuant to Public Resources Code Section 2774, or any other more recent inspection report conducted by the lead agency or the Department of Conservation. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2773.1 and 2774, Public Resources Code. s 3815. Criteria for Determining Financial Capability. The lead agency or the board shall use, but not be limited to, the following criteria when determining the financial capability of a mine operator to perform reclamation. It is the sole responsibility of the surface mine operator to provide the lead agency or the board with sufficient information to reasonably demonstrate his or her financial capability. An operator shall be found financially incapable if the lead agency or the board makes any of the following findings: (a) The operator is incapable of providing, or refuses to provide, a financial assurance in an amount deemed adequate by the lead agency or the board; or, (b) The operator is incapable of providing, or refuses to provide, a financial assurance mechanism approved by the board in Section 3803 of this subchapter; or, (c) The lead agency, the board, or the director, is unable to contact the mine operator or the mine's agent of record after 90 days of the mine's becoming idle as defined in Public Resources Code Section 2727.1; or, (d) The mine operation meets the criteria stated in Public Resources Code Section 2770(h)(6). Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2727.1, 2770 and 2773.1, Public Resources Code. s 3816. Hearing Procedures - Sequence. (a) The public hearing conducted before the board shall normally proceed in the following manner; a local lead agency may conduct the hearing sequence according to its locally adopted procedures: (1) Identification of the record; (2) Statements on behalf of the lead agency; (3) Statements on behalf of the operator; (4) Statements on behalf of the public; (5) Rebuttal on behalf of the lead agency (6) Rebuttal on behalf of the operator; and (7) Motion to close the public hearing. (b) Notwithstanding the above, the Chairman of the board or the Chairman's designee for purposes of conducting the hearing may, in the exercise of discretion, determine the order of the proceedings. (c) The Chairman or the Chairman's designee shall have the authority to impose time limits upon statements and presentations and accept written statements in lieu of oral statements. Written statements (12 copies) must be submitted to the board at least five days prior to the hearing. (d) The public hearing conducted before the board or a lead agency shall be recorded. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2773.1, Public Resources Code. s 3817. Hearing Procedures - Determination. Following the public hearing, the lead agency or the board shall determine whether, based on the record before it and the criteria described in Section 3815 of this Article, the operator is financially incapable of performing reclamation in accordance with its approved reclamation plan, or has abandoned its surface mining operation without commencing reclamation. If the operator is determined to be financially incapable of performing reclamation or to have abandoned the operation, then the following shall occur: (a) The lead agency, or the director in cases where the Board is the lead agency, shall notify the operator within 10 days of the date of determination of its intent to take appropriate actions to cause forfeiture of the operator's financial assurances. Notification shall be made by personal service or certified mail. (b) The lead agency, or the director, or the board in cases where the board is the lead agency, shall follow the procedures described in Public Resources Code Section 2773.1(b). Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2773.1, Public Resources Code. s 3900. Purpose of Regulations. The regulations contained in this article govern procedures for petitions to the State Mining and Geology Board pursuant to Public Resources Code Section 2774.2 concerning the issuance of an Administrative Penalty by the Director of the Department of Conservation. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3901. Filing of Petition/Notice of Defense. Any person filing a petition to the Board pursuant to Public Resources Code Section 2774.2 concerning the issuance of an administrative penalty by the Director of the Department of Conservation shall, within 30 days of the date of issuance of the order setting an administrative penalty, file a petition/notice of defense with the Board requesting a hearing. The petition/notice of defense shall be on the form set forth in Section 3911 of this article, or shall supply the following information to the Board. Failure to submit all the following documents within the 30 days filing period will result in an incomplete filing and an automatic rejection of the appeal. (1) Written statements, with supporting documentation, indicating specifically the basis for the petitioner's challenge of the Director's order of administrative penalty; (2) A written statement advising the Board of the name, address and telephone number of the petitioner's representative, if any; Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3902. Determination of Jurisdiction. The Chairman of the Board, or the Chairman's designee who is a Board member, shall determine within 15 days of receipt of the information required by Section 3901 of this article, whether the petition is within the jurisdiction of the Board for the purpose of hearing the petition, and determine whether the petition's challenge raises substantial issues related to the validity of the allegations supporting the Director's order. If the Chairman finds, based upon the criteria stated in (a), (b), and (c) below, that the petition raises no substantial issues with respect to the Director's allegations contained in the order of administrative penalty, or has not been filed within statutory time limits, then the Chairman shall refuse to grant a hearing on the petition. In making these determinations, the Chairman shall consider the following: (a) Whether the filing of the petition/notice of defense with the Board is within the time limits stipulated in Public Resources Code Section 2774.2; (b) Whether the petition specifically relates to the allegations contained in the Director's notice and order of administrative penalty; (c) Whether prima facie documentation supporting the petition's position is reasonably sufficient to substantiate the petition's challenge. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3903. Administrative Record. The Administrative Record shall consist of the record before the Director, evidence submitted on behalf of the petitioner, any other relevant evidence which, in the judgment of the Board, should be considered applicable, and evidence presented during the hearing on the petition. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3904. Hearing Procedures -Scheduling. The Board shall schedule and hold a public hearing on a petition no later than 60 days from the Chairman's acceptance of the petition, or at such time as may be mutually agreed upon by the Board and the petitioner. The hearing may be conducted as part of a regular business meeting of the Board, or may be conducted by a committee of the Board. The Board shall endeavor to schedule such public hearings in or near the jurisdiction from which the petition originated, but may otherwise schedule such petitions to be heard in Sacramento. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3905. Hearing Procedures -Authority for Delegation. The Board may delegate conduct of the hearing to a committee composed of three members of the Board, who shall consist of either the Chairman or Vice Chairman of the Board, and two other members of the Board selected by the Chairman. The Chairman or Vice Chairman shall conduct the hearing. The record of the hearing and the recommendations of the committee shall be presented to a quorum of the Board at its next regular business meeting for a decision of the full Board consistent with the procedures set forth in Section 3910 of this article. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3906. Hearing Procedures -Notice. (a) At least 10 days prior to the hearing, the Board shall give public notice as follows: (1) Mailing or delivering by personal service the notice to the petitioner and to the petitioner's lead agency; (2) Mailing or delivering by personal service the notice to the Director of the Department of Conservation. (3) Mailing the notice to any person who requests notice of the petition or hearing; and, (4) Mailing the notice to the Board's regular mailing list. (b) The notice of hearing shall include the following: (1) The name of the petitioner; (2) A statement describing the basis for the action; (3) The amount of the administrative penalty petitioned; (4) The time, date, and location of the public hearing. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3907. Hearing Procedures -Record. The record before the Board at the public hearing shall be the administrative record submitted pursuant to Sections 3901, 3902, and 3903 of this article. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3908. Hearing Procedures -Recording and Transcription. Hearings conducted under the procedures of this article shall be electronically recorded by the Board. Cost of transcription or reproduction of the electronic recording, if requested, shall be borne by the party making such request. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2755, Public Resources Code. s 3909. Hearing Procedures -Use of Informal Hearing Procedure and Sequence. (a) The Board may conduct the petition hearing under this article pursuant to the informal hearing adjudicative proceedings described in the California Administrative Procedure Act. The informal hearing procedure is intended to satisfy due process and public policy requirements in a manner that is simpler and more expeditious than hearing procedures otherwise required by statute, for use in appropriate circumstances. (b) The public hearing shall normally proceed in the following manner: (1) Identification of the record; (2) Statements on behalf of the petitioner; (3) Statements on behalf of the Director; (4) Statements on behalf of the lead agency; (5) Statements on behalf of the public; (6) Rebuttal on behalf of the petitioner; (7) Rebuttal on behalf of the Director; (8) Motion to close the public hearing. (c) Not withstanding the above, the Chairman or the Chairman's designee (Board member) for the purposes of conducting the hearing may, in the exercise of discretion, determine the order of the proceedings. (d) The Chairman or the Chairman's designee (Board member) shall have the authority to impose time limits upon statements and presentations and to accept written statements in lieu of oral statements. Four copies of any written statements shall be submitted to the Board at least ten days prior to the hearing. (e) Should the appellant, or his or her representative, fail to appear at the scheduled hearing, the board may make a determination upon the record otherwise before it, or, in the alternative, the board may consider the petition for hearing withdrawn. (f) If the board determines that the petition for hearing has been withdrawn and more than 30 days has passed since the date of issuance of the order setting an administrative penalty, the order setting the administrative penalty shall not be subject to review by any court or agency. (g) The actions of the Chairman or the Chairman's designee (Board member) under this section are not subject to judicial review. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code; and Article 10, Administrative Procedure Act. Reference: Section 2774.2, Public Resources Code; and Article 10, Administrative Procedure Act. s 3910. Hearing Procedures -Determination. (a) Following the public hearing, the Board shall determine: (1) whether the alleged violations cited in the Director's order are supported by substantial evidence in light of the whole record before it; and, (2) the action the Board should take to affirm, modify, or set aside, in whole or in part, the administrative penalty issued by the Director. The Board shall issue its own order upholding its determination. (b) Modify means to change the administrative penalty from its original construction by the director. The board may modify the administrative penalty, in whole or in part, by such measures as it deems appropriate which include, but are not limited to, increasing or decreasing the penalty amount, establishing compliance deadlines, and structuring a method for payment of the penalty. (c) Notification of the Board's determination shall be made by certified mail or personal service to the petitioner, the lead agency, and the Director within 15 days following the regular business meeting of the Board at which the decision is made. Note: Authority cited: Sections 2755 and 2774.2, Public Resources Code. Reference: Section 2774.2, Public Resources Code. s 3911. Petition/Notice of Defense Form. STATE OF CALIFORNIA DEPARTMENT OF CONSERVATION STATE MINING AND GEOLOGY BOARD IN THE MATTER OF THE ) Case No. ADMINISTRATIVE PENALTY ) ASSESSED AGAINST: ) ) PETITION/ ) NOTICE OF DEFENSE an individual, ) ) d.b.a. ) ) PETITIONER(S) ) ______________________ ) ( ) I acknowledge receipt of this action assessing an administrative penalty under Public Resources Code Section 2774.1(c) against me or the company for which I am the agent. ( ) I request a hearing before the State Mining and Geology Board. ( ) I object to the action on the ground that it does not state acts or omissions upon which the Department of Conservation may proceed. ( ) I object to the form of the action on the ground that it is so indefinite or uncertain that I cannot identify the transaction or prepare a defense. ( ) I admit the action in whole or in part. (Indicate which parts you admit by paragraph number or list on a separate page facts or allegations admitted.) ( ) I deny the action in whole or in part. (Indicate which parts you deny by paragraph number or list on a separate page facts or allegations denied.) ( ) I have no personal knowledge of the facts or allegations. (Indicate which parts by paragraph number or on a separate page.) ( ) I present the following new matter by way of defense: (On a separate page, list other facts which may exonerate or mitigate your possible responsibility or otherwise explain your relationship to the alleged violation. Be as specific as you can. If you have or know of any document(s), photograph(s), map(s), letter(s), or other evidence that you believe is/are relevant, please identify it/them by name, date, type, and any other identifying information and provide the original(s) or (a) cop(y/ies) if you can): ( ) I wish to present the following information, statement, etc. in addition: (Use a separate page, if needed.) ( ) I have documents, exhibits, declarations under penalty of perjury and/or other materials that I am attaching to this form or that I want to be made a part of the administrative record for this administrative penalty. (Please list in chronological order by date, author and title and enclose a copy with this completed form.) ( ) I object to the action on the ground that, under the circumstances, compliance with the requirement of a regulation would result in a material violation of another regulation enacted by another department affecting substantive rights. (List the other regulation(s).) ( ) I will pay the full assessed amount and waive a hearing. DO NOT SEND CASH. Please note your case number on your remittance, made payable to: State of California, Department of Conservation, to ensure proper credit and mail it to this address: Department of Conservation, Office of Mine Reclamation, 801 K Street, MS 09-06, Sacramento, California 95814. If you intend to be represented by an attorney, please state his/her name, address, and telephone number. Otherwise, state the address and phone number where you want legal documents sent. Mail this Notice of Defense to: Executive Officer, State Mining and Geology Board, 801 K Street, MS 24-05, Sacramento, California 95814. DATED: ____________________ _____________________________________ Petitioner's Signature ------------------------------------------------------------------------------ Name of Counsel/Petitioner (circle one) Phone Number ------------------------------------------------------------------------------ Address City State Zip s 3920. Selection of Professional Service Firms. (a) The purpose of these regulations is to establish those procedures authorized and required by Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. These regulations are specific to the Surface Mining and Reclamation Act of 1975 (Public Resources Code Sections 2710, et seq. (b) Selection by the board for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management, firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Note: Authority cited: Sections 2755-2759, Public Resources Code; and Section 4526, Government Code. Reference: Sections 4525-4529.5, Government Code. s 3921. Definitions, as Used in These Regulations. (a) "Small business" shall mean a small business firm as defined by the Director of General Services (section 1896 of Title 2 of the California Code of Regulations) pursuant to section 14837 of the Government Code. (b) "Architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services" are those services to be procured outside State of California Civil Service procedures and of a character necessarily rendered by an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor but may include ancillary services logically or justifiably performed in connection therewith. (c) "Project" means a project as defined in Section 10105 of the Public Contract Code, or as defined in the Public Resources Code Section 21065. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4525 and 14837, Government Code; Section 10105, Public Contract Code; and Section 21065, Public Resources Code. s 3922. Establishment of Criteria. (a) The board shall establish criteria, on a case by case instance, which will comprise the basis for selection for each project. The criteria shall include such factors as professional excellence, demonstrated competence, specialized experience of the firm, education and experience of key personnel to be assigned, staff capability, workload ability to meet schedules, nature and quality of completed work, reliability and continuity of the firm, location, and other considerations deemed relevant. Such factors shall be weighted by the board according to the nature of the project, the needs of the State and complexity and special requirements of the specific project. (b) In no event shall the criteria include practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration. Board members with a relationship to a person or business entity seeking a contract under this section are prohibited from participating in the selection process if the board member would be subject to the prohibition of Section 87100 of the Government Code. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526 and 87100, Government Code. s 3923. Estimate of Value of Services. Before any discussion with any firm concerning fees, the board may cause an estimate of the value of such services to be prepared. This estimate shall serve as a guide in determining fair and reasonable compensation for the services rendered. Such estimate shall be, and remain, confidential until award of contract or abandonment of any further procedure for the services to which it relates. At any time the board determines the estimates to be unrealistic because of rising costs, special conditions, or for other relevant considerations, the estimate may be reevaluated and modified if necessary. Note: Authority cited: Section 4526, Government Code. Reference: Section 4528, Government Code. s 3924. Request for Proposals. (a) Where a project requires architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services, the board shall make an announcement through a publication of the respective professional society, if any exist, in a construction trade journal or, if none exist, in other appropriate publications that are published within a reasonable time frame such that a lengthy publication delay does not adversely affect the project. (b) The announcement shall contain the following information: The nature of the work, the criteria upon which the award shall be made, and the time within which statements of interest, qualification and performance data will be received. (c) The board shall endeavor to provide to all small business firms who have indicated an interest in receiving such, a copy of each announcement for projects for which the board concludes that small business firms could be especially qualified. A failure of the board to send a copy of an announcement to any firm shall not operate to preclude any contract. Note: Authority cited: Section 4526, Government Code. Reference: Section 4527, Government Code. s 3925. Selection of Firm. After expiration of the period stated in the publications or other public announcements, the board shall evaluate statements of qualifications and performance data which have been submitted to the board. Discussions shall be conducted with no less than three firms regarding the required service. Where three firms cannot be found which could provide the required service, a full explanation including names and addresses of firms and individuals requested to submit proposals must be entered in the files. From the firms with which discussions are held, the board shall select no less than three, provided at least three firms submit proposals, in order of preference, based upon the established criteria, which are deemed to be the most highly qualified to provide the services required. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526-4527, Government Code. s 3926. Negotiation. The board shall attempt to negotiate a contract with the most highly qualified firm. When the board is unable to negotiate a satisfactory contract with this firm with fair and reasonable compensation provisions, as determined by the procedure set forth in Section 3923 if those procedures were used, negotiations shall be terminated. The board shall then undertake negotiations with the second most qualified firm on the same basis. Failing accord, negotiations shall be terminated. The board shall then undertake negotiations with the third most qualified firm on the same basis. Failing accord, negotiations shall be terminated. Should the board be unable to negotiate a satisfactory contract at fair and reasonable compensation with any of the selected firms, additional firms may be selected in the manner prescribed in this article and the negotiation procedure continued. Note: Authority cited: Section 4526, Government Code. Reference: Section 4528, Government Code. s 3927. Amendments. In instances where the board effects a necessary change in the project during the course of performance of the contract, the firm's compensation may be adjusted by negotiation of a mutual written agreement in a fair and reasonable amount where the amount of work to be performed by the firm is changed from that which existed previously in the contemplation of the parties. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3928. Contracting in Phases. Should the board determine that it is necessary or desirable to have a given project performed in phases, it will not be necessary to negotiate the total contract price or compensation provisions in the initial instance, provided that the board shall have determined that the firm is best qualified to perform the whole project at a fair and reasonable cost, and the contract contains provisions that the board, at its option, may utilize the firm for other phases and that the firm will accept a fair and reasonable price for subsequent phases to be later negotiated and reflected in a subsequent written instrument. The procedure with regard to estimates and negotiation shall otherwise be applicable. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3929. Board's Power to Require Bids. Where the board determines that the services needed are technical in nature and involve little professional judgment and that requiring bids would be in the public interest, a contract shall be awarded on the basis of bids rather than by following the foregoing procedures for requesting proposals and negotiation. Note: Authority cited: Section 4526, Government Code. Reference: Section 4529, Government Code. s 3930. Exclusions. The provisions of this article shall not apply to service agreements for an architect, landscape architect, engineer, environmental specialist, land surveyor, or construction project management contractor, engaged to provide consulting services on specific problems on projects where the architectural, landscape architectural, engineering, environmental, land surveying, or construction project management work is being performed by State of California Civil Service employees. Note: Authority cited: Section 4526, Government Code. Reference: Section 4526, Government Code. s 3940. Purpose of Regulations. The regulations contained in this article govern procedures affecting the review of orders to comply with the Surface Mining and Reclamation Act of 1975 (Act) issued by the director of the department, or by the board when acting in the capacity of lead agency pursuant to Public Resources Code Section 2774.4. Note: Authority cited: Section 2755, Public Resources Code. Reference: Sections 2774.1 and 2774.4, Public Resources Code. s 3941. Determination of Jurisdiction. (a) The Chairman of the board, or the Chairman's designee, shall determine whether the review of the order is within the jurisdiction of the board for the purposes of hearing the alleged violation. If the Chairman or the designee finds that the criteria listed in (1) and (2) below have been satisfied, then he or she shall schedule a hearing of the order before the board, otherwise he or she shall refuse to grant a hearing. In making this determination, the Chairman, or the Chairman's designee, shall consider the following: (1) Whether the order addresses violations related to the Act which have been confirmed by findings during an annual inspection or as the result of another physical site inspection of the mine; (2) Whether the alleged violation has extended beyond 30 days from the date of receipt by the operator of notification from the director or the board. (b) The Chairman of the board or designee shall make such a determination within 15 days of receipt of an order issued by the director. Where the board issues the order to comply pursuant to its lead agency authority under Public Resources Code Section 2774.4, no independent determination by the Chairman or the designee is required. The board shall notify the appellant and the director of its determination by certified mail or personal service. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3942. Administrative Record. The administrative record shall consist of the information that was before the director for an order issued by the director, or before the board for an order issued by the board, at the time the order was issued and which comprised the basis for the order. The information before the director, or the board, shall consist of but may not be limited to the following: (a) The name and address of the surface mining operator and the name and address of any person designated by the operator as an agent for the service of process; (b) A general description of the surface mining operation; (c) A description of the alleged violation specifying which aspects of the surface mine's activities or operations are inconsistent with the Act; (d) A time for achieving compliance that the director, or the board, has determined to be reasonable. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3943. Hearing Procedures - Scheduling. The board shall schedule and hold a public hearing on an order no sooner than 30 days from the date of issuance of the order. In no case shall the hearing be scheduled beyond 60 days after the issuance of the order. The hearing may be scheduled as part of a regular business meeting of the board or may be conducted by a committee of the board. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3944. Hearing Procedures - Authority for Delegation. The board may delegate conduct of the hearing to a committee of at least two members of the board to be appointed for that hearing by the Chairman of the board. The Chairman of the board or the Chairman's designee shall conduct the hearing; the recommendations of the hearing committee shall be presented to a quorum of the board at its next regular business meeting for a decision of the full board consistent with the procedures set forth in Section 3948 of these regulations. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3945. Hearing Procedures - Notice. (a) At least 10 days prior to the hearing, the board shall give public notice as follows: (1) Mailing the notice to the lead agency (if the board is not the lead agency), the operator subject to the order to comply, and the director; (2) Mailing the notice to any person who requests notice of the hearing; (b) The notice of hearing shall include the following: (1) The name of the operator subject to the order to comply; (2) Identification of the proposed surface mining operation and a brief description of the location of the operation by reference to any commonly known landmarks in the area; (3) A statement that the operator has been issued an order to comply with specific aspects of the Act; (4) A statement inviting the operator, the lead agency, and the public to make statements at the hearing regarding the decision of board; and, (5) The time, date, and location of the public hearing. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3946. Hearing Procedures - Record. The record before the board at the public hearing shall be the administrative record submitted pursuant to Section 3942 of this article. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3947. Hearing Procedures - Sequence. (a) The public hearing should normally proceed in the following manner: (1) Identification of the record; (2) Statements on behalf of the operator subject to the order; (3) Statements on behalf of the director, or the board if acting as the lead agency; (4) Statements on behalf of the public; (5) Rebuttal on behalf of the operator; and (6) Rebuttal on behalf of the director, or the board if acting as the lead agency; (7) Motion to close the public hearing. (b) Notwithstanding the above, the Chairman or the Chairman's designee for purposes of conducting the hearing may in the exercise of discretion, determine the order of the proceedings. (c) The Chairman or the Chairman's designee may impose reasonable time limits upon statements and presentations and may accept written statements in lieu of oral statements. Written statements (12 copies) must be submitted to the board at least five days prior to the hearing. (d) The public hearing shall be recorded. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code. s 3948. Hearing Procedures - Determination. Following the public hearing, the board shall determine whether, based on the record before it, the evidence before the director for orders issued by the director, or the board for orders issued by the board, substantially supports the basis for the order at the time the order was issued. If the board finds that the evidence in the record supports the issuance of the order, the board shall uphold the order and any effective date contained in the order. If no effective date is contained in the order, then the board shall set a date upon which the order takes effect. If the board finds that the evidence in the record does not substantially support the order, then the board shall not uphold the order and shall notify the director of the specific reasons for not upholding the director's order. Notification of the board's determination shall be made by certified mail or personal service to the operator and the director within 15 days following the regular business meeting of the board at which the determination is made. Note: Authority cited: Section 2755, Public Resources Code. Reference: Section 2774.1, Public Resources Code.