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 1753.3.2 - Site Remediation Cost Estimate Method 2

Universal Citation: 14 CA Code of Regs 1753.3.2

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Site Remediation Cost Estimates calculated by operators using Method 2 shall be calculated by summing the estimated costs under subdivisions (a)(2) through (a)(9) to restore the site in accordance with Section 1776, including subdivisions (e) and (f), and reducing that total by any reductions from subdivision (a)(10) and shall provide the following information for each of the operator's well sites and production facility sites:

(1) A description, the quantity, unit type, and unit cost data for each site remediation activity;

(2) Cost to develop and obtain permits;

(3) Cost for the project management and engineering;

(4) Cost to develop safety, environmental, and emergency response plans including spill response and incident cleanup;

(5) Cost to mobilize and demobilize the equipment and crews required to perform the work;

(6) Costs associated with materials removal and transportation;

(7) Costs associated with materials recycling or disposal;

(8) Costs associated with access to the site location;

(9) A contingency of 10% of the costs calculated under subdivision (a)(1) through (a)(8);

(10) Any reductions based upon the repurposing of the well site or production facility site, which does not include the value or any change in the value of the real estate; and

(11) The name of the lease and field where the well site or production facility site is located.

(b) Operators calculating Site Remediation Cost Estimates under this section shall account for costs associated with the location and characteristics of the site such as condition, geologic hazards, history, and proximity to sensitive populations and environmental resources.

(c) Operators calculating Site Remediation Cost Estimates under this section shall also submit documentation consistent with section 1753.1.1 supporting the costs estimated under subdivision (a).

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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