AB 2711

Introduced by Assembly Member Ellis
(Coauthors: Assembly Members Alanis, Alvarez, and Sanchez)
 An act to amend Sections 3203 and 3229 of the Public Resources Code, relating to oil and gas.
oil and gas
Oil and gas: notice of intention.
Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires the operator of a well to file a written notice of intention to commence drilling or written notice of intention to abandon a well with, and prohibits any drilling or abandonment, respectively, until approval is given by, the supervisor or district deputy. Under existing law, if the supervisor or district deputy fails to give the operator written response to the notice
			 of intention to commence drilling or to the notice of intention to abandon a well within 10 working days from the date of receipt, that failure to respond is considered an approval, as specified. Under existing law, if operations to commence drilling or to abandon a well have not commenced within 24 months of receipt of the notice by the supervisor or the district deputy, the notice is deemed canceled, as provided.
This bill would instead require the supervisor or district deputy to provide the operator, within 10 working days of the receipt of notice of intention to commence drilling or notice of intention to abandon a well, respectively,
			 a written determination stating whether the notice of intention is complete. The bill would provide that if a supervisor or district deputy fails to provide this written determination the notice of intention to commence drilling or notice of intention to abandon a well, respectively, is required to be deemed complete. The bill would require, if the supervisor or the district deputy determines the notice of intention to commence drilling or notice of intention to abandon a well, respectively, is not complete, the supervisor or the district deputy to provide a written list that specifically identifies each item that is missing or
			 deficient and to make a good faith effort to provide that information in a single document, as specified, in addition to the written determination that the notice of intention is not complete. The bill would authorize the operator to cure any deficiencies and to resubmit the notice of intention
			 to commence drilling or notice of intention to abandon a well, respectively, and would require the supervisor or deputy to provide a written determination stating whether the resubmitted notice of intention is complete within 10 working days. The bill would require, if the supervisor or district deputy provides a written determination that a notice of intention or a resubmitted notice of intention to commence drilling or notice of intention to abandon a well, respectively, is complete, or if a notice of intention to commence drilling or notice of intention to abandon a well, respectively, is deemed complete due to a failure of the supervisor or district deputy to provide the written determination of completeness within 10 working days as described above, the
			 supervisor or the district deputy to approve or deny the notice within 30 working days from the date of the determination of completeness. The bill would provide that if the supervisor or district deputy fails to approve or deny a notice of intention to commence drilling or notice of intention to abandon a well, respectively, within 30 working days, that failure is to be considered an approval, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete. The bill would also require, if the notice of intention to commence drilling or notice of intention to abandon a
			 well, respectively, is denied by the supervisor or district deputy, within 30 working days from the date of a written determination of completion, the supervisor or the district deputy to include in the denial
			 a rationale for why the notice was denied. The bill would instead provide that if operations
			 to commence drilling or to abandon a well, respectively, have not commenced within 24 months of receipt of approval of the notice by the supervisor or the district deputy, the notice is deemed canceled, as provided.
The people of the State of California do enact as follows:
SECTION 1.
Section 3203 of the
Public Resources Code
 is amended to read:
3203.
(a) The operator of any well, before commencing the work of drilling the well, shall file with the supervisor or the district deputy a written notice of intention to commence drilling. Drilling shall not commence until approval is given by the supervisor or the district deputy.
(1) The supervisor or district deputy shall within 10 working days of receipt of a notice of intention provide the operator with a written determination stating whether the notice of intention is complete or not complete for purposes of this section. Pursuant to subdivision (b), a complete notice of intention includes all necessary environmental and
						technical materials that the supervisor or district deputy requires to be submitted by the operator. The supervisor or district deputy shall include in their written determination on whether the notice of intention is complete or not complete if all necessary environmental and technical materials required to be submitted by the operator have been submitted.
(A) (i) If the supervisor or district deputy determines that the notice of intention is complete and provides the written determination to the operator pursuant to paragraph (1), the supervisor or district deputy shall have 30 working days from the date of the determination of completeness to provide the operator an approval or denial of the notice.
(ii) If the supervisor or the district deputy fails to give the operator
						an approval or denial of the notice within 30 working days, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor.
(B) (i) If the supervisor or district deputy determines that the notice of intention is not complete, the supervisor or district deputy shall provide, in addition to the determination that the notice of
						intention is not complete pursuant to paragraph (1), the operator with a written list that specifically identifies each item that is missing or deficient and the relevant legal authority requiring any item that is identified as missing or deficient and shall make a good faith effort to include that information in a single document. The operator may cure the deficiencies and resubmit the notice of intention. The supervisor or district deputy shall, within 10 working days of the receipt of the resubmitted notice of intention, provide the operator with a written determination stating whether the resubmitted notice of intention is complete for purposes of this section.
(ii) If the resubmitted notice of intention is determined to be complete, the supervisor or the district deputy shall have 30 working days from the date of the determination of completeness to provide the operator an approval or denial of the notice.
(iii) If the supervisor or the district deputy fails to give the operator an approval or denial of the notice within 30 working days, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor.
(2) (A) If the supervisor or district deputy fails to provide a written determination within 10 working days pursuant to paragraph (1), the notice of intention shall be deemed complete, and supervisor or district deputy shall have 30 working days from the date the notice of intention was received to provide the operator an approval or denial of the notice.
(B) If the supervisor or district deputy fails to provide the operator with an approval or denial of the notice within 30 working days, provided that all necessary environmental and technical reviews by the supervisor or district deputy
						are complete, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor.
(b) The notice shall contain the pertinent data the supervisor requires on printed forms supplied by the division or on other forms acceptable to the supervisor. The supervisor may require other pertinent information to supplement the notice.
(c) If the notice is denied by the supervisor or the district deputy within 30 working days from the date of a written determination of completeness pursuant to
						paragraph (1) of subdivision (a), the supervisor or district deputy shall include in the denial
						a rationale for why the notice was denied.
(d) If operations have not commenced within 24 months of receipt of approval of the notice, the notice shall be deemed canceled, the notice shall not be extended, and the cancellation shall be noted in the division’s records.
(e) After the completion of any well, this section also applies as far as may be, to the deepening or redrilling of the well, any operation involving the plugging of the well, or any operations permanently altering in any manner the casing of the well. The number or designation of any well, and the number or designation specified for any well in a notice filed as required by this section, shall not be changed without first obtaining a written consent of the supervisor.
(f) If an operator has failed to comply with an order of the supervisor, the supervisor may deny approval of proposed well operations until the operator brings its existing well operations into compliance with the order. If an operator has failed to pay a civil penalty, remedy a violation that it is required to remedy to the satisfaction of the supervisor pursuant to an order issued under Section 3236.5, or to pay any charges assessed under Article 7 (commencing with Section 3400), the supervisor may deny approval to the operator’s proposed well operations until the operator pays the civil penalty, remedies the violation to the satisfaction of the supervisor, or pays the charges assessed under Article 7 (commencing with Section 3400).
(g) For purposes of this section, all necessary environmental and technical materials to be submitted to the supervisor or district deputy for consideration are directly applicable to the evaluation of the notice of intention and include, as applicable, documentation of compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000)), location of an exempted aquifer as defined in subdivision (c) of Section 3130, and other environmental and technical information as necessary for the supervisor or district deputy to complete the reviews required for a notice of intention.
SEC. 2.
Section 3229 of the
Public Resources Code
 is amended to read:
3229.
(a) Before commencing any work to abandon a well, the owner or operator shall file with the supervisor or the district deputy a written notice of intention to abandon the well. Abandonment shall not proceed until approval is given by the supervisor or the district deputy.
(1) The supervisor or district deputy shall within 10 working days of receipt of a notice of intention to abandon the well provide the operator with a written determination stating whether the notice of intention to abandon the well is complete or not complete for purposes of this section. Pursuant to Section 3230, a complete notice of intention to abandon the well includes all necessary environmental and technical materials that the supervisor or district deputy requires to be submitted by the operator. The supervisor or district deputy shall include in their written determination on whether the notice of intention to abandon the well is complete or not complete if all necessary environmental and technical materials required to be submitted by the operator have been submitted.
(A) (i) If the supervisor or district deputy determines that the notice of intention to abandon the well is complete and provides the written determination to the operator pursuant to paragraph (1), the supervisor or district deputy shall have 30 working days from the date of the determination of completeness to provide the operator an approval or denial of the notice.
(ii) If the supervisor or the district deputy fails to give the operator an approval or denial of the notice within 30 working days, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor.
(B) (i) If the supervisor or district deputy determines that the notice of intention to abandon the well is not complete, the supervisor or district deputy shall provide, in addition to the determination that the notice of intention to abandon the well is not complete pursuant to paragraph (1), the operator with a written list that specifically identifies each item that is missing or deficient and the relevant legal authority requiring any item that is identified as missing or deficient and shall make a good faith effort to include that information in a single document. The operator may cure the deficiencies and resubmit the notice of intention to abandon the well. The supervisor or district deputy shall, within 10 working days of the receipt of the resubmitted notice of intention to abandon the well, provide the operator with a written determination stating whether the resubmitted notice of intention to abandon the well is
						complete for purposes of this section.
(ii) If the resubmitted notice of intention to abandon the well is determined to be complete, the supervisor or the district deputy shall have 30 working days from the date of the determination of completeness to provide the operator an approval or denial of the notice.
(iii) If the supervisor or the district deputy fails to give the operator an approval or denial of the notice within 30 working days, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor.
(2) (A) If the supervisor or district deputy fails to provide a written determination within 10 working days pursuant to paragraph (1), the notice of intention to abandon the well shall be deemed complete, and supervisor or district deputy shall have 30 working days from the date the notice of intention to abandon the well was received to provide the operator an approval or denial of the notice.
(B) If the supervisor or district deputy fails to provide the operator with an approval or denial of the notice within 30 working days, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor.
(b) If the notice is denied by the supervisor or the district deputy within 30 working days from the date of a written determination of completeness pursuant to paragraph (1) of subdivision (a), the supervisor or district deputy shall include in the denial a rationale for why the notice was denied.
(c) If abandonment operations have not commenced within 24 months of receipt of approval of the notice of intention, the notice of intention shall be deemed canceled and the cancellation shall be noted in the division’s records.
(d) For purposes of this section, all necessary environmental and technical materials to be submitted to the supervisor or district deputy for consideration are as described in subdivision (g) of Section 3203.