California Code of Regulations
Title 14 - Natural Resources
Division 2 - Department of Conservation
Chapter 4 - Development, Regulation, and Conservation of Oil and Gas Resources
Subchapter 2 - Environmental Protection
Article 1 - General
Section 1753.2.2 - Site Remediation Cost Estimate Method 1
Universal Citation: 14 CA Code of Regs 1753.2.2
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Site Remediation Cost Estimates calculated by operators using Method 1 shall be calculated by summing the Base Site Remediation Cost from subdivision (a)(1), Other Project Component Costs from subdivision (a)(2), and the Contingency Cost from subdivision (a)(4), and each Site Remediation Cost Estimate shall specify all the following information for each of the operator's well sites and each of the operator's production facility sites:
(1) The Base Site Remediation Cost. The Base Site Remediation Cost shall be calculated by identifying all of the operator's Cost Elements using the Well Site and Production Facility Site Remediation Unit Costs Table in subdivision (a)(1)(A), multiplying by the associated Unit Cost, and summing all of those costs.
(A) Well Site and Production Facility Site Remediation Unit Costs Table.
| Cost Element | Unit Cost |
| Site remediation per tank (>10,001 bbl) | $137,243 |
| Site remediation per tank (5,001-10,000 bbl) | $61,970 |
| Site remediation per tank (2,500-5,000 bbl) | $24,433 |
| Site remediation per tank (<2,499 bbl) | $7,429 |
| Site remediation per vessel | $7,429 |
| Site remediation per wellhead | $11,914 |
| Site remediation per cubic foot of sumps | $5.10 |
| Site remediation per cubic foot of auxiliary holes | $5.10 |
| Site remediation per well cellar | $7,539 |
| Total cubic yards of refuse, trash, debris on site to be removed and disposed per cubic yard | $153 |
| Total cubic feet of access roads that must be removed and restored under Section 1776, subdivision (d) per cubic foot | $2.73 |
(2) The Cost of Other Project Components. The Cost of Other Project Components shall be calculated by summing the costs of Permitting and Regulatory Compliance, Mobilization and Demobilization, and Project Management and Engineering.
(A) The cost of Permitting and Regulatory Compliance shall be calculated by multiplying the Base Site Remediation Cost from subdivision (a)(1) by five percent.
(B) The cost of Mobilization and Demobilization shall be calculated by multiplying the Base Site Remediation Cost from subdivision (a)(1) by five percent.
(C) The cost of Project Management and Engineering shall be calculated by multiplying the Base Site Remediation from subdivision (a)(1) by eight percent.
(3) The Site Remediation Aggregated Risk Score. The Site Remediation Aggregated Risk score shall be calculated by identifying the characteristics of the site, points assigned to those characteristics, as listed in the Site Remediation Aggregated Risk Score Table in subdivision (a)(3)(A), and summing those points.
(A) Site Remediation Aggregated Risk Score Table
| Characteristic | Points |
| The site is in a sensitive area or urban area, as defined in Section 1760; or there is an environmentally sensitive production facility, which includes an environmentally sensitive wellhead, as defined in Section 1760, on the site | 10 |
| A well or production facility located on the site potentially pose a threat to life, health, property, or natural resources | 10 |
| There has been a reportable spill or leak from production facilities or wells located on the site or there are unlined sumps on the site | 10 |
| The site has or at one time had a freshwater aquifer underneath | 5 |
| The site is in an area of known geologic hazards including subsidence, landslides, or seismicity | 5 |
| There are surface obstacles or other impediments preventing access to the site, including but not limited to buildings or structures, surface-use activities, irrigation systems, roads, terrain, or restricted access | 5 |
| A production facility or well, based on the spud date of the well, located on the site is greater than 50 years | 5 |
| Maximum Potential Aggregated Risk Score | 50 |
(4) The Contingency Cost. The Contingency Cost shall be calculated by multiplying the Base Site Remediation Cost from subdivision (a)(1) by the Contingency Percentage. The Contingency Percentage shall be determined based upon the Well Site and Production Facility Site Remediation Aggregated Risk Score calculated under subdivision (a)(3) as follows:
(A) The Contingency Percentage shall be 10% if the Well Site and Production Facility Site Aggregated Risk Score is less than 10 points.
(B) The Contingency Percentage shall be 20% if the Well Site and Production Facility Site Aggregated Risk Score is between 10 and 19 points.
(C) The Contingency Percentage shall be 30% if the Well Site and Production Facility Site Aggregated Risk Score is 20 points or greater.
(5) The Lease and Field. The name of the lease and field where the well site or production facility site is located.
Note: Authority cited: Sections 3013 and 3205.7, Public Resources Code. Reference: Sections 3011, 3106 and 3205.7, Public Resources Code.
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