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(continued)
(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 wellcapable of producing high-temperature geothermal fluids in commercial quantities. (continued)