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 - Well Abandonment Cost Estimate Method 2

Universal Citation: 14 CA Code of Regs 1753.3

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

(a) Well Abandonment Cost Estimates calculated by operators using Method 2 shall be calculated by summing the costs estimated under subdivisions (a)(2) through (a)(9) for plugging and abandoning each of the operator's wells in accordance with Public Resources Code section 3208 and reducing that total by any reductions from subdivision (a)(11), and shall provide the following information for each of the operator's wells:

(1) The number of days, including partial days to perform the plugging and abandonment work;

(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 response plans;

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

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

(7) Costs associated with materials recycling or disposal;

(8) Cost to perform the plugging and abandonment work;

(9) A contingency of 10% of the costs calculated under subdivision (a)(2) through (a)(8);

(10) The name of the lease and field where the well is located; and

(11) Any reductions based upon the repurposing of the well.

(b) Operators calculating Well Abandonment Cost Estimates under this section shall account for costs associated with the location of the well and well specific characteristics such as age, well condition and configuration, geologic hazards, well history, and proximity to sensitive populations and environmental resources.

(c) Operators calculating Well Abandonment 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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