California oil and gas laws can be found in Division 3 of California Public Resources Code. Pursuant to Cal Pub Resources Code § 3100, for the purposes of this statute, the state is divided into six districts, the boundaries of which will be fixed by the director. The supervisor should appoint one chief deputy and at least one district deputy for each of the districts and should prescribe their duties[i].
Powers and Jurisdiction of the Supervisor
Pursuant to Cal Pub Resources Code § 3106, the supervisor supervises the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, including pipelines so as to prevent, as far as possible, damage to life, health, property, and natural resources; damage to underground oil and gas deposits from infiltrating water and other causes; loss of oil, gas, or reservoir energy, and damage to underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental substances.
The supervisor also supervises the drilling, operation, maintenance, and abandonment of wells so as to permit the owners or operators of the wells to utilize all methods and practices known to the oil industry for the purpose of increasing the ultimate recovery of underground hydrocarbons and which, in the opinion of the supervisor, are suitable for this purpose in each proposed case[ii].
The supervisor may require an operator to implement a monitoring program, designed to detect releases to the soil and water, including both groundwater and surface water, for aboveground oil production tanks and facilities.
To best meet oil and gas needs in this state, the supervisor should administer this division so as to encourage the wise development of oil and gas resources.
Regulation of Operation
The operator of a well or production facility should notify the supervisor or the district deputy, in writing, in such form as the supervisor or the district deputy may direct, of the sale, assignment, transfer, conveyance, exchange, or other disposition of the well or production facility by the operator of the well or production facility as soon as is reasonably possible, but in no event later than the date that the sale, assignment, transfer, conveyance, exchange, or other disposition becomes final[iii].
Pursuant to Cal Pub Resources Code § 3204, any operator who, on or after January 1, 2018, engages in the drilling, redrilling, deepening, or in any operation permanently altering the casing, of any well shall file with the supervisor an individual indemnity bond in the specified sum for each well so drilled, redrilled, deepened, or permanently altered.
Civil Actions
The supervisor may upon his/her own initiative or upon receipt of a written complaint from a person owning land or operating wells within a radius of one mile of any well or group of wells complained against make an investigation of the well or wells involved[iv]. The supervisor makes a written report and order, stating the work required to repair the damage complained of, or stating that no work is required.
A copy of the order should be delivered to the complainant, or if more than one, to each complainant, and, if the supervisor orders the damage repaired, a copy of the order should be delivered to each of the owners, operators, or agents having in charge the well or wells upon which the work is to be done.
Appeals
The lessor, lessee, or any operator or any well owner, or the owner of any rig, derrick, or other operating structure, or his/her local agent, should within ten days from the date of the service of any order from the supervisor or a district deputy either comply with the order or file with the supervisor or the district deputy a written statement that the order is not acceptable, and that appeal from the order is taken to the director[v]. Any lessor, lessee, or operator affected by an order may, within ten days from the posting of the copy of the order, file with the supervisor a written appeal therefrom to the director. Any such appeal should operate as a stay of any order issued.
Penalties
Pursuant to Cal Pub Resources Code § 3236, any owner or operator, or employee thereof, who refuses to permit the supervisor or the district deputy, or his/her inspector, to inspect a well, or who willfully hinders or delays the enforcement of the provisions of this statute, and every person, whether as principal, agent, servant, employee, or otherwise, who violates, fails, neglects, or refuses to comply with any of the provisions of this statute, or who fails or neglects or refuses to furnish any report or record which may be required, or who willfully renders a false or fraudulent report, is guilty of a misdemeanor, punishable by a fine of not less than one hundred dollars, nor more than one thousand dollars, or by imprisonment for not exceeding six months, or by both such fine and imprisonment, for each such offense.
Further, a person who violates this statute or a regulation implementing this statute is subject to a civil penalty not to exceed twenty-five thousand dollars for each violation[vi].
[i] Cal Pub Resources Code § 3101.
[ii] Cal Pub Resources Code § 3106.
[iii] Cal Pub Resources Code § 3201.
[iv] Cal Pub Resources Code § 3235.
[v] Cal Pub Resources Code § 3350.
[vi] Cal Pub Resources Code § 3236.5.
