California Public Resources Code

§ 3205.3

PRC § 3205.3 Effective Jan 1, 2020Div. 3 · Ch. 1 · Art. 4

Statute text

(a)The division may require an operator filing an individual indemnity bond pursuant to Section 3204 or a blanket indemnity bond pursuant to Section 3205, as applicable, to provide an additional amount of security acceptable to the division based on the division’s evaluation of the risk that the operator will desert its well or wells and the potential threats the operator’s well or wells pose to life, health, property, and natural resources. The additional security required by the division shall not exceed the lesser of the division’s estimation of the reasonable costs of properly plugging and abandoning all of the operator’s wells and decommissioning any attendant production facilities in accordance with Section 3208, or thirty million dollars ($30,000,000).

(b)When making an estimation under this section of the reasonable costs of properly plugging and abandoning an operator’s well or wells and decommissioning any attendant production facilities, the division shall provide the operator with an opportunity to submit the operator’s own estimation and shall consider all of the following:

(1)The depth of the well or wells.

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Legislative history

Added by Stats. 2019, Ch. 771, Sec. 13. (AB 1057) Effective January 1, 2020.