AB 2712

Introduced by Assembly Member Ellis
 An act to amend Sections 3281 and 3285 of the Public Resources Code, relating to oil and gas.
oil and gas
Oil and gas: notices of intention: health protection zones: new wells.
Existing law establishes the Geologic Energy Management Division within 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, and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production within an oil and gas field so as to prevent damage to life, health, property, and natural resources. Existing law requires the operator of a well to file a written notice of intention to commence drilling with, and prohibits any drilling until approval is given by, the supervisor or district deputy. Existing law also requires an operator of a well to file a notice of intention with, and to receive approval from, the supervisor or a district deputy for the deepening or redrilling of wells, the plugging of wells, or the permanent altering of the casing of wells.
Existing law prohibits the division
			 from approving any notice of intention within a health protection zone, defined as the area within 3,200 feet of sensitive receptors, except for approvals necessary for specified purposes. Existing law defines sensitive receptors to include certain residential, educational, health care, detention, or business facilities, as provided. Existing law prohibits the construction or operation of new production facilities in health protection zones, except as provided.
This bill would instead limit the prohibition on the division’s approval of notices of intention within health protection zones to notices of intention for new wells, as defined. The bill would repeal the prohibition on the construction or operation of new production facilities in health protection zones.
Existing law requires every operator who submits a notice of intention, except as provided, to submit a sensitive receptor inventory and map to the division or a statement certifying there are no sensitive receptors located within 3,200 feet of the wellhead location, as provided.
This bill would instead limit that requirement to submit a sensitive receptor inventory and map or certification to an operator who submits a notice of intention for a new well.
Under existing law, if a notice of intention is approved within a health protection zone in order to comply with a court order, the approval shall require the operator of the oil
			 or gas well to provide an individual indemnity bond sufficient to pay the full cost of properly plugging and abandoning the operator’s well or wells, and decommissioning any attendant production facilities in the health protection zone.
This bill would instead limit that bonding requirement to a notice of intention for a new well that is approved within a health protection zone in order to comply with a court order, as provided.
The people of the State of California do enact as follows:
SECTION 1.
Section 3281 of the
Public Resources Code
 is amended to read:
3281.
(a) Notwithstanding any other law, commencing January 1, 2023, the division shall not approve any notice of intention under Section 3203 for a new well within a health protection zone, except for approvals of notices of intention necessary for any of the following purposes:
(1) To prevent or respond to a threat to public health, safety, or the environment.
(2) To comply with a court order finding that denying approval would amount to a taking of property, or a court order otherwise requiring approval of a notice of intention.
(3) To plug and abandon or reabandon a well, including an intercept well necessary to plug and abandon or reabandon a well.
(b) An operator who submits a notice of intention under Section 3203 for a new well, except for notices of intention described in paragraph (3) of subdivision (a), shall submit a sensitive receptor inventory and map pursuant to Section 3285 of the area within the 3,200-foot radius of the wellhead or proposed wellhead location to the division with the notice of intention or a statement certifying that the operator has confirmed, and the division has verified, that there are no sensitive receptors located within 3,200 feet of the wellhead location. The operator shall submit the sensitive receptor inventory and map in
						a format that complies with all requirements of the federal Americans with Disabilities Act of 1990 (Public Law 101–336) and its implementing regulations for online viewing. If the inventory or map includes any personally identifiable information, the operator shall submit a second version with the personally identifiable information redacted. Inventories and maps with no personally identifiable information shall be made available to the public in compliance with Section 3234.
(c) If a notice of intention is approved pursuant to paragraph (2) of subdivision (a), the approval shall require the operator of
						the new oil or gas well to provide an individual indemnity bond sufficient to pay the full cost of properly plugging and abandoning the operator’s well or wells, and decommissioning any attendant production facilities in the health protection zone. The division shall determine the amount of the individual indemnity bond in accordance with subdivision (b) of Section 3205.3. The bond shall be executed by the operator, as principal, and by an authorized surety company, as surety, and shall be in substantially the same language and upon the same conditions as provided in Section 3204, except as to the difference in the amount. The operator’s blanket indemnity bond authorized pursuant to Section 3205 shall not be used to satisfy this subdivision.
(d) For
						purposes of this section, a “new well” or a “new oil or gas well” means a well that has not been completed on or before January 1, 2027.
(e) Underground gas storage wells and attendant production facilities are not subject to this article.
SEC. 2.
Section 3285 of the
Public Resources Code
 is amended to read:
3285.
(a) Every operator who submits a notice of intention for a new well, as that term is defined in Section 3281, shall submit to the division by July 1, 2025, a sensitive receptor inventory and map that includes the following:
(1) A list of all sensitive receptors within 3,200 feet of an operator’s wellheads and production facilities by field. For each sensitive receptor listed, the operator shall provide all of the following:
(A) The distance from the sensitive receptor to each wellhead or production facility that is located within 3,200 feet of that specific receptor. The well shall be
						identified by API number, and the production facility shall also be explicitly identified. Latitude and longitude shall also be provided for the wellhead and production facility.
(B) The type of sensitive receptor.
(C) A map showing each sensitive receptor’s location in relation to the operator’s wellheads and production facilities.
(2) A statement from each operator based on their sensitive receptor inventory that provides the operator’s determination as to whether their wellheads and production facilities are located within 3,200 feet of a sensitive receptor. An operator who has identified sufficient sensitive receptors such that their entire operation is located within a health protection zone may cease adding new sensitive receptors to their inventory and make a determination that all of their wellheads and
						production facilities are located within a health protection zone.
(b) By July 1 of each year, all operators described in subdivision (a) shall submit to the division a sensitive receptor inventory and map pursuant to subdivision (a) that is up to date, with information no more than 90 days old, and shall make a new determination regarding the location of each of their wellheads and production facilities within a health protection zone. If there have been no changes to the location of sensitive receptors in the 3,200 feet surrounding the operator’s wellheads and production facilities, the operator shall submit a statement that no changes to the determination are needed.
(c) The division shall review for completeness and accuracy no less than 30 percent of the inventories and
						associated maps submitted annually pursuant to this section. The division shall notify operators of any discrepancies in the submitted inventories and maps as determined by the division.
(d) The division shall make available to the public on its internet website all current sensitive receptor inventories and maps.