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 3 - Requirements
Section 1772.1.2 - Engineering Analysis for 15-Year Idle Wells

(a) By the end of the month in which an idle well has been idle for 15 years, the operator shall provide the Division with an engineering analysis demonstrating to the Division's satisfaction that it is viable to return the well to operation in the future. The engineering analysis shall document that the well could be used to access potential oil and gas reserves and that it has mechanical integrity as demonstrated by pressure testing and a clean out tag as required under Section 1772.1(a)(2) and (a)(3).

(b) The engineering analysis required under subdivision (a) shall include the following information for the purpose of demonstrating the well could be used to access potential oil and gas reserves:

(c) The engineering analysis required under subdivision (a) shall include all data specified in Section 1772.1.3, provided in the form of a graphical casing diagram or flat file data sets.

(d) The Division may require the operator to include additional data in the engineering analysis required under subdivision (a) on a case-by-case basis if the Division deems it necessary for the evaluation of whether it is viable to return the well to operation in the future.

(e) If the operator submits information to the Division under subdivision (b) that is demonstrated to be applicable to multiple wells in the same field subject to the requirements of this section, then the operator may reference the applicable information in subsequent engineering analyses and is not required to submit duplicate information.

(f) All data required under this section shall be submitted to the Division in a digital format. All maps, diagrams, and exhibits shall be clearly labeled, such as to scale and purpose, and shall clearly identify wells, boundaries, zones, contacts, and other relevant data. Unless requested by the Division, information that has already been provided to the Division is not required to be resubmitted.

(g) Where it is infeasible to supply the data specified in subdivisions (b) and (c), the Division may accept alternative data, provided that the alternative data demonstrate to the Division's satisfaction that it is viable to return the well to operation in the future.

(h) If the Division determines upon initial review of an engineering analysis required under subdivision (a) that it is not viable to return the well to operation in the future, then the Division will inform the operator of the basis of that determination and allow the operator at least 30 days to provide additional information to substantiate that the well is viable to return to operation in the future. If the Division determines upon final review of the engineering analysis and any additional information provided by the operator that it is not viable to return a well to operation in the future, then the Division will provide a notice of final determination to the operator. The operator shall either plug and abandon the well in accordance with Public Resources Code section 3208 within 12 months of receiving the notice of final determination, or schedule the well for plugging and abandonment under an approved Idle Well Management Plan or an approved Testing Waiver Plan.

(i) For wells that as of April 1, 2019, have met the definition of an idle well for nine years or more, the operator shall provide the engineering analysis described in this section to the Division by the later of the following: