California Legislature—2013–14 Regular Session

Assembly Bill No. 669

Introduced by Assembly Member Stone

February 21, 2013

An act to amend Section 3202 of the Public Resources Code, relating to oil and gas.

LEGISLATIVE COUNSEL’S DIGEST

AB 669, as introduced, Stone. Oil and gas: drilling.

Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisor supervises the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field regarding safety and environmental damage. Existing law further requires a person who acquires the right to operate a well or production facility, whether by purchase, transfer, assignment, conveyance, exchange, or other disposition, to meet specific requirements before drilling operations.

This bill would additionally require the operator prior to drilling operations to submit proof to the supervisor that the applicable regional water quality control board has approved the method and location of wastewater disposal for the well.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 3202 of the Public Resources Code is
amended to read:

3202.  

begin insert (a) end insert begin insert   end insert A person who acquires the right to operate a well
or production facility, whether by purchase, transfer, assignment,
conveyance, exchange, or other disposition, shall, as soon as it is
reasonably possible, but not later than the date when the acquisition
of the well or production facility becomes final, notify the
supervisor or the district deputy, in writing, of the person’s
operation. The acquisition of a well or production facility shall not
be recognized as complete by the supervisor or the district deputy
until the new operator provides all of the following material:

begin delete

(a)

end delete

begin insert (1) end insert  The name and address of the person from whom the well or
production facility was acquired.

begin delete

(b)

end delete

begin insert (2) end insert  The name and location of the well or production facility,
and a description of the land upon which the well or production
facility is situated.

begin delete

(c)

end delete

begin insert (3) end insert  The date when the acquisition becomes final.

begin delete

(d)

end delete

begin insert (4) end insert  The date when possession was or will be acquired.

begin delete

(e)

end delete

begin insert (5) end insert  An indemnity bond for each idle well. The bond shall be in
an amount as provided in Section 3204 or 3205. The conditions
of the bond shall be the same as the conditions stated in Section
3204. An operator that has provided an individual bond required
by this subdivision in an amount as provided in Section 3204 shall
not be required additionally to comply with the requirements of
Section 3206. An operator who has provided a blanket indemnity
bond in the minimum amount required in subdivision (a) or (b) of
Section 3205 shall additionally comply with Section 3206 for any
idle wells not covered by a bond provided under Section 3204.

begin insert

(b) Prior to the approval of the commencement of any drilling
or redrilling of a well, the operator shall submit proof to the
supervisor that the applicable regional water quality control board
has approved the method and location of wastewater disposal for
the well.

end insert