BILL NUMBER: AB 669	INTRODUCED
	BILL TEXT


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.   (a)    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: 
   (a) 
    (1)  The name and address of the person from whom the
well or production facility was acquired. 
   (b)
    (2)  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. 
   (c) 
    (3)  The date when the acquisition becomes final.

   (d) 
    (4)  The date when possession was or will be acquired.

   (e) 
    (5)  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. 
   (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.