text:
(a) (1) On or before July 1, 2026, the supervisor shall make all public information collected or maintained by the division, with priority given to well records, well logs, notices of intention, supplementary notices, field reports, inspection reports, correspondence, and other materials, readily available to the public on the division’s internet website, except well records required to be held as confidential information pursuant to Section 3234. All online materials shall be organized by well, operator, or project, and searchable.

(2) On or before July 1, 2024, the supervisor shall make all notices of violation and orders of the supervisor readily available to the public on the division’s internet website.

(b) The supervisor shall make continuous progress towards meeting the requirements of subdivision (a) and the materials readily available to the public online shall steadily increase. Priority shall be given to public information regarding well records, well logs, notices of intention, notices of violation, supplementary notices, field reports, inspection reports, and correspondence previously available on the division’s internet website and documents associated with wells that have not been plugged and abandoned.

(c) (1) The supervisor shall, commencing July 1, 2023, provide an annual update to the Assembly Committee on Natural Resources and the Senate Committee on Natural Resources and Water on progress made toward meeting the requirements of subdivision (a).

(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on July 1, 2027, pursuant to Section 10231.5 of the Government Code.

history: (History: Added by Stats. 2021, Ch. 727, Sec. 3. (SB 406) Effective January 1, 2022.)

article: 2. Administration


kind: section

code: PRC

citation: PRC § 3109

text: The supervisor may publish any publications, reports, maps, or other printed matter relating to oil and gas, for which there may be public demand. If these publications, reports, maps, or other printed matter are sold, they shall be sold at cost, and the proceeds shall be deposited to the credit of the Oil, Gas, and Geothermal Administrative Fund.

history: (History: Amended by Stats. 2003, Ch. 240, Sec. 10. Effective August 13, 2003.)

division: 3. OIL AND GAS

chapter: 1. Oil and Gas Conservation

article: 2. Administration

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 2. Administration


citation: PRC § 3110

text: All money paid to the Treasurer pursuant to Article 7 (commencing with Section 3400) shall be deposited to the credit of the Oil, Gas, and Geothermal Administrative Fund, which is hereby established in the State Treasury, for expenditure as provided in Section 3401.

history: (History: Amended by Stats. 2003, Ch. 240, Sec. 11. Effective August 13, 2003.)

article: 2. Administration


citation: PRC § 3111

text:
(a) All money received in repayment of repair work done as provided in this chapter shall be returned and credited to the Oil, Gas, and Geothermal Administrative Fund for expenditure as provided in Section 3401.

(b) All miscellaneous revenues from oil and gas wells and from real and personal property acquired by the supervisor in the course of carrying out this chapter shall be credited to the Oil, Gas, and Geothermal Administrative Fund for expenditure as provided in Section 3401.

history: (History: Amended by Stats. 2003, Ch. 240, Sec. 12. Effective August 13, 2003.)

article: 2. Administration


citation: PRC § 3112

text: Notwithstanding any other provision of this code or of law and except as provided in the State Building Standards Law, Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, on and after January 1, 1980, the supervisor or the Division of Oil and Gas shall not adopt nor publish a building standard as defined in Section 18909 of the Health and Safety Code unless the provisions of Sections 18930, 18933, 18938, 18940, 18943, 18944, and 18945 of the Health and Safety Code are expressly excepted in the statute under which the authority to adopt rules, regulations, or orders is delegated. Any building standard adopted in violation of this section shall have no force or effect. Any building standard adopted before January 1, 1980, pursuant to this code and not expressly excepted by statute from such provisions of the State Building Standards Law shall remain in effect only until January 1, 1985, or until adopted, amended, or superseded by provisions published in the State Building Standards Code, whichever occurs sooner.

history: (History: Added by Stats. 1979, Ch. 1152.)

article: 2. Administration


citation: PRC § 3113

text:
(a) Notwithstanding Section 10231.5 of the Government Code, the division shall, in compliance with Section 9795 of the Government Code, annually prepare and transmit to the Legislature a report of all of the following information statewide and by district:

(1) The number of shall-witness and may-witness operations performed. The number of each type of may-witness operation as identified by law or regulation included in the total shall be provided.

(2) The number of shall-witness and may-witness operations performed that were witnessed by the division in person. The number of each type of may-witness operation as identified by law or regulation included in the total shall be provided.

(3) The number of shall witness and may-witness operations performed where division personnel did not witness the operations in person and witnessed the operations remotely. The number of each type of may-witness operation as identified by law or regulation included in the total shall be provided.

(4) The number of shall-witness and may-witness operations performed on critical wells. The number of each type of may-witness operation as identified by law or regulation included in the total shall be provided.

(5) The number of shall-witness and may-witness operations performed on critical wells that were witnessed by the division in person. The number of each type of may-witness operation as identified by law or regulation included in the total shall be provided.

(6) The number of shall-witness and may-witness operations performed on critical wells where division personnel did not witness the operations in person and witnessed the operations remotely. The number of each type of may-witness operation as identified by law or regulation included in the total shall be provided.

(7) A complete list of all shall-witness operations where division personnel did not witness the operations in person and witnessed the operations remotely. Information about each operation, including, but not limited to, the type of operation, the date, location, API number, and district, shall be included. The division shall maintain a written justification for each remote witnessing of shall-witness operations and provide it upon request.

(b) (1) The division is authorized to witness may-witness operations remotely. The division shall prioritize witnessing of may-witness operations in person to the maximum extent possible.

(2) This subdivision shall become inoperative on January 1, 2028.

(c) The supervisor may, only in writing and only on a case-by-case basis, authorize division personnel to witness shall-witness operations remotely. The supervisor shall not delegate the authority to approve witnessing of these shall-witness operations remotely. All written authorizations for division personnel to witness shall-witness operations remotely shall be maintained and available to the public upon request.

(d) The supervisor shall not set any positive numerical quotas for division personnel to witness operations remotely. The supervisor shall not provide a blanket authorization for remote witnessing of shall-witness operations. The supervisor shall provide written guidance to division personnel on minimum standards for remote witnessing of shall-witness and may-witness operations.

(e) For purposes of this section, the following terms have the following meanings:

(1) “Critical well” has the same meaning as in Section 1720 of Title 14 of the California Code of Regulations, or a successor regulation.

(2) “May-witness” means an operation performed that by law the division is authorized to witness.

(3) “Shall-witness” means an operation performed that by law the division is required to witness.

(4) “Witnessed by the division in person” means the operation is witnessed by division personnel who were physically present at the location when the operation was performed.

(5) “Witnessed the operations remotely” or “witness the operations remotely” or “witnessing the operations remotely” means the viewing or reviewing of video, livestream, photographic, or other materials or evidence of the conduct of the operation during or after the operation was conducted without the division personnel being physically present at the location when the operation was performed.

(f) It is the policy of the state that division personnel witness operations in person that are critical to ensuring public and environmental health and safety, that the presence of division personnel in the field to regularly observe operations under the division’s jurisdiction is of utmost importance, and that division staffing levels be set and maintained to ensure this policy is met.

history: (History: Amended by Stats. 2022, Ch. 574, Sec. 16. (AB 211) Effective September 27, 2022.)

article: 2. Administration


citation: PRC § 3114

text:
(a) By July 30, 2019, and annually thereafter, the Department of Conservation, in consultation with the State Water Resources Control Board, shall report to the fiscal and relevant policy committees of the Legislature on the Underground Injection Control Program. The report shall include, but is not limited to, all of the following about activities in the previous 12 months:

(1) The number and location of underground injection control project approvals issued by the department, including projects that were approved but subsequently lapsed without having commenced injection.

(2) The monthly average number of pending project applications.

(3) The average length of time to obtain an underground injection control project approval from date of receipt of complete application to the date of issuance.

(4) The average amount of time to review an underground injection control project proposal by the division and the average combined review time by the State Water Resources Control Board and regional water quality control boards for each proposed underground injection control project.

(5) The number of project proposals pending for over one year.

(6) A list of pending aquifer exemptions, if any, and their status in the review process.

(7) The average length of time to process an aquifer exemption and the average amount of time to review a proposed aquifer exemption by the division and the average combined review time by the State Water Resources Control Board and regional water quality control boards for each aquifer exemption proposal.

(8) The number and description of underground injection control related violations identified.

(9) The number of enforcement actions taken by the department.

(10) The number of shut-in orders or requests to relinquish permits and the status of those orders or requests.

(11) The number, classification, and location of staff with work related to underground injection control.

(12) The number of staff vacancies for positions associated with underground injection control.

(13) Any state or federal legislation, administrative, or rulemaking changes to the program.

(14) The number of underground injection control projects reviewed for compliance with statutes and regulations in each district and a summary of findings from project reviews completed during the reporting period, including any steps taken to address identified deficiencies.

(15) The number of underground injection control projects that have not been reviewed for compliance with applicable statutes and regulations within the prior two years.

(16) Summary of significant milestones in their compliance schedule agreed to with the United States Environmental Protection Agency, as indicated in the March 9, 2015, letter to the division and the state board from the United States Environmental Protection Agency, including, but not limited to, regulatory updates, evaluations of injection wells, and aquifer exemption applications.

(17) Summary of activities undertaken by the underground injection control review panel established pursuant to Section 46 of Chapter 24 of the Statutes of 2015.

(b) This section shall become inoperative on October 1, 2029, and, as of January 1, 2030, is repealed.

history: (History: Amended by Stats. 2023, Ch. 848, Sec. 1. (AB 1526) Effective January 1, 2024. Section inoperative October 1, 2029. Repealed as of January 1, 2030, by its own provisions.)

article: 2. Administration


citation: PRC § 3115

text: On or before July 1, 2023, the division shall develop and implement an education and outreach program to provide training to local governmental entities on materials collected and maintained by the division related to oil and gas operations.

history: (History: Added by Stats. 2021, Ch. 727, Sec. 4. (SB 406) Effective January 1, 2022.)

article: 2. Administration


citation: PRC § 3125

text: All work to plug and abandon wells, decommission production facilities, or otherwise remediate well sites that is undertaken, funded, or financed by the division pursuant to Section 3226 or 3255 and performed by outside contractors is public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

history: (History: Added by Stats. 2022, Ch. 844, Sec. 2. (SB 1295) Effective January 1, 2023.)

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 2.3. Oil, Gas, and Geothermal Administrative Fund: Labor Standards for Funding


text:
(a) Not later than June 30, 2024, the California Workforce Development Board shall consult with the division in developing and implementing the Oil and Gas Well Capping Pilot initiative established pursuant to the Budget Act of 2022 to assist state-registered apprenticeship programs in creating curriculum for training apprentices and to upskill journeypersons on well capping projects.

(b) The division and other public agencies that receive funds from the Oil, Gas, and Geothermal Administrative Fund pursuant to this chapter shall consult and coordinate with the California Workforce Development Board when promoting or seeking to improve workforce education and training programs for incumbent and entry-level workers that support or advance high-quality work performance and increase priority populations’ access to high-quality jobs associated with projects involving the performance of construction, alteration, demolition, installation, repair, or work, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites pursuant to Section 3226 or 3255.

(c) In developing and implementing workforce development programs to support projects involving the performance of construction, alteration, demolition, installation, repair, or work, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites pursuant to Section 3226 or 3255, the board, division, and other public agencies shall align with the principles and practices of the high road, high road training partnerships, and high road construction careers as defined in subdivisions (r) to (t), inclusive, of Section 14005 of the Unemployment Insurance Code.

article: 2.3. Oil, Gas, and Geothermal Administrative Fund: Labor Standards for Funding


text:
(a) The division, with assistance from the Labor and Workforce Development Agency, shall develop a procurement process to group multiple projects involving the performance of construction, alteration, demolition, installation, repair, or work, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites pursuant to Section 3226 or 3255, to use project labor agreements under which to deliver those projects.

(b) The division, when contracting on or after January 1, 2028, for the performance of construction, alteration, demolition, installation, repair, or work, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites pursuant to Section 3226 or 3255, shall ensure that all entities selected for these projects enter into a project labor agreement that will bind all of the contractors performing work on the project. For purposes of this section, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.


text:
(a) This section applies only to work performed by contractors licensed by the Contractors State License Board under contracts for the performance of construction, alteration, demolition, installation, repair, or work, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites, pursuant to Section 3226 or 3255, that are awarded, extended, or renewed on or after January 1, 2028.

(b) The division, when contracting for the performance of construction, alteration, demolition, installation, repair, or work, including the plugging, and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites pursuant to Section 3226 or 3255, shall require that contractors and any subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

(c) The requirements of this section are satisfied if all contractors and subcontractors for the performance of construction, alteration, demolition, installation, repair, or work, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites, are required to become bound to a multicraft project labor agreement that expressly requires each contractor and subcontractor performing the work to use a skilled and trained workforce. For purposes of this subdivision, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.


citation: PRC § 3130

text:
For purposes of this article, the following terms mean the following:

(a) “Beneficial use” has the same meaning as set forth in subdivision (f) of Section 13050 of the Water Code.

(b) “Class II well” has the same meaning as set forth in Section 144.6 of Title 40 of the Code of Federal Regulations.

(c) “Exempted aquifer” has the same meaning as set forth in Section 144.3 of Title 40 of the Code of Federal Regulations.

(d) “State board” means the State Water Resources Control Board.

(e) “Underground Injection Control Program” means a program covering Class II wells for which the division has received primacy from the United States Environmental Protection Agency pursuant to Section 1425 of the federal Safe Drinking Water Act (42 U.S.C. Sec. 300h-4).

history: (History: Added by Stats. 2015, Ch. 24, Sec. 29. (SB 83) Effective June 24, 2015.)

article: 2.5. Underground Injection Control

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 2.5. Underground Injection Control


citation: PRC § 3131

text:
(a) To ensure the appropriateness of a proposal by the state for an exempted aquifer determination subject to any conditions on the subsequent injection of fluids, and before proposing to the United States Environmental Protection Agency that it exempt an aquifer or portion of an aquifer pursuant to Section 144.7 of Title 40 of the Code of Federal Regulations, the division shall consult with the appropriate regional water quality control board and the state board concerning the conformity of the proposal with all of the following:

(1) The criteria set forth in Section 146.4 of Title 40 of the Code of Federal Regulations.

(2) The injection of fluids will not affect the quality of water that is, or may reasonably be, used for any beneficial use.

(3) The injected fluid will remain in the aquifer or portion of the aquifer that would be exempted.

(b) Based on the consultation pursuant to subdivision (a), if the division and the staff of the state board preliminarily concur that an aquifer or portion of an aquifer may merit consideration for exemption by the United States Environmental Protection Agency, the division and the staff of the state board shall provide a public comment period and, with a minimum of 30 days’ public notice, and shall jointly conduct a public hearing.

(c) Following review of the public comments pursuant to subdivision (b) and only if the division and the staff of the state board concur that the exemption proposal merits consideration for exemption, the staff of the state board shall submit a report to the state board evaluating the exemption proposal’s consistency with the criteria set forth in subdivision (a), including an analysis of all potential conduits, that shall be made available to the public no fewer than 60 days prior to a meeting before the state board and subject to a 45-day public comment period.

(d) The state board shall consider, in a public meeting, the report submitted pursuant to subdivision (c) and shall determine whether it concurs that the exemption proposal, with any appropriate modifications, complies with the requirements specified in subdivision (a) and merits consideration for exemption.

(e) If the state board concurs pursuant to subdivision (d), the division shall submit the aquifer exemption proposal to the United States Environmental Protection Agency.

history: (History: Amended by Stats. 2024, Ch. 467, Sec. 1. (SB 1304) Effective January 1, 2025.)

article: 2.5. Underground Injection Control


citation: PRC § 3132

text:
(a) For purposes of this section, the following definitions apply:

(1) “Carbon dioxide capture project” means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.

(2) “Carbon dioxide capture, removal, or sequestration project” means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.

(3) “Carbon dioxide removal project” means a project that uses a process to remove carbon dioxide from the atmosphere.

(4) “Concentrated carbon dioxide fluid” means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.

(b) An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.

history: (History: Added by Stats. 2022, Ch. 359, Sec. 4. (SB 905) Effective January 1, 2023.)

article: 2.5. Underground Injection Control


citation: PRC § 3150

text: “Additive” means a substance or combination of substances added to a base fluid for purposes of preparing well stimulation treatment fluid which includes, but is not limited to, an acid stimulation treatment fluid or a hydraulic fracturing fluid. An additive may, but is not required to, serve additional purposes beyond the transmission of hydraulic pressure to the geologic formation. An additive may be of any phase and includes proppants.

history: (History: Added by Stats. 2013, Ch. 313, Sec. 2. (SB 4) Effective January 1, 2014.)

article: 3. Well Stimulation

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 3. Well Stimulation


citation: PRC § 3151

text: “Base fluid” means the continuous phase fluid used in the makeup of a well stimulation treatment fluid, including, but not limited to, an acid stimulation treatment fluid or a hydraulic fracturing fluid. The continuous phase fluid may include, but is not limited to, water, and may be a liquid or a hydrocarbon or nonhydrocarbon gas. A well stimulation treatment may use more than one base fluid.

article: 3. Well Stimulation


citation: PRC § 3152

text: “Hydraulic fracturing” means a well stimulation treatment that, in whole or in part, includes the pressurized injection of hydraulic fracturing fluid or fluids into an underground geologic formation in order to fracture or with the intent to fracture the formation, thereby causing or enhancing, for the purposes of this division, the production of oil or gas from a well.

article: 3. Well Stimulation


citation: PRC § 3153

text: “Well stimulation treatment fluid” means a base fluid mixed with physical and chemical additives, which may include acid, for the purpose of a well stimulation treatment. A well stimulation treatment may include more than one well stimulation treatment fluid. Well stimulation treatment fluids include, but are not limited to, hydraulic fracturing fluids and acid stimulation treatment fluids.

article: 3. Well Stimulation


citation: PRC § 3154

text: “Proppants” means materials inserted or injected into the underground geologic formation that are intended to prevent fractures from closing.

article: 3. Well Stimulation


citation: PRC § 3155

text: “Supplier” means an entity performing a well stimulation treatment or an entity supplying an additive or proppant directly to the operator for use in a well stimulation treatment.

article: 3. Well Stimulation


citation: PRC § 3156

text: “Surface property owner” means the owner of real property as shown on the latest equalized assessment roll or, if more recent information than the information contained on the assessment roll is available, the owner of record according to the county assessor or tax collector.

article: 3. Well Stimulation


citation: PRC § 3157

text:
(a) For purposes of this article, “well stimulation treatment” means any treatment of a well designed to enhance oil and gas production or recovery by increasing the permeability of the formation. Well stimulation treatments include, but are not limited to, hydraulic fracturing treatments and acid well stimulation treatments.

(b) Well stimulation treatments do not include steam flooding, water flooding, or cyclic steaming and do not include routine well cleanout work, routine well maintenance, routine removal of formation damage due to drilling, bottom hole pressure surveys, or routine activities that do not affect the integrity of the well or the formation.

article: 3. Well Stimulation


citation: PRC § 3158

text: “Acid well stimulation treatment” means a well stimulation treatment that uses, in whole or in part, the application of one or more acids to the well or underground geologic formation. The acid well stimulation treatment may be at any applied pressure and may be used in combination with hydraulic fracturing treatments or other well stimulation treatments. Acid well stimulation treatments include acid matrix stimulation treatments and acid fracturing treatments. Acid matrix stimulation treatments are acid treatments conducted at pressures lower than the applied pressure necessary to fracture the underground geologic formation.

article: 3. Well Stimulation


citation: PRC § 3159

text: “Flowback fluid” means the fluid recovered from the treated well before the commencement of oil and gas production from that well following a well stimulation treatment. The flowback fluid may include materials of any phase.

article: 3. Well Stimulation


citation: PRC § 3160

text:
(a) On or before January 1, 2015, the Secretary of the Natural Resources Agency shall cause to be conducted, and completed, an independent scientific study on well stimulation treatments, including, but not limited to, hydraulic fracturing and acid well stimulation treatments. The scientific study shall evaluate the hazards and risks and potential hazards and risks that well stimulation treatments pose to natural resources and public, occupational, and environmental health and safety. The scientific study shall do all of the following:

(1) Follow the well-established standard protocols of the scientific profession, including, but not limited to, the use of recognized experts, peer review, and publication.

(2) Identify areas with existing and potential conventional and unconventional oil and gas reserves where well stimulation treatments are likely to spur or enable oil and gas exploration and production.

(3) (A) Evaluate all aspects and effects of well stimulation treatments, including, but not limited to, the well stimulation treatment, additive and water transportation to and from the well site, mixing and handling of the well stimulation treatment fluids and additives onsite, the use and potential for use of nontoxic additives and the use or reuse of treated or produced water in well stimulation treatment fluids, and flowback fluids and the handling, treatment, and disposal of flowback fluids and other materials, if any, generated by the treatment. Specifically, the potential for the use of recycled water in well stimulation treatments, including appropriate water quality requirements and available treatment technologies, shall be evaluated. Well stimulation treatments include, but are not limited to, hydraulic fracturing and acid well stimulation treatments.

(B) Review and evaluate acid matrix stimulation treatments, including the range of acid volumes applied per treated foot and total acid volumes used in treatments, types of acids, acid concentration, and other chemicals used in the treatments.

(4) Consider, at a minimum, atmospheric emissions, including potential greenhouse gas emissions, the potential degradation of air quality, potential impacts on wildlife, native plants, and habitat, including habitat fragmentation, potential water and surface contamination, potential noise pollution, induced seismicity, and the ultimate disposition, transport, transformation, and toxicology of well stimulation treatments, including acid well stimulation fluids, hydraulic fracturing fluids, and waste hydraulic fracturing fluids and acid well stimulation in the environment.

(5) Identify and evaluate the geologic features present in the vicinity of a well, including the wellbore, that should be taken into consideration in the design of a proposed well stimulation treatment.

(6) Include a hazard assessment and risk analysis addressing occupational and environmental exposures to well stimulation treatments, including hydraulic fracturing treatments, hydraulic fracturing treatment-related processes, acid well stimulation treatments, acid well stimulation treatment-related processes, and the corresponding impacts on public health and safety with the participation of the Office of Environmental Health Hazard Assessment.

(7) Clearly identify where additional information is necessary to inform and improve the analyses.

(b) (1) (A) On or before January 1, 2015, the division, in consultation with the Department of Toxic Substances Control, the State Air Resources Board, the State Water Resources Control Board, the Department of Resources Recycling and Recovery, and any local air districts and regional water quality control boards in areas where well stimulation treatments, including acid well stimulation treatments and hydraulic fracturing treatments, may occur, shall adopt rules and regulations specific to well stimulation treatments. The rules and regulations shall include, but are not limited to, revisions, as needed, to the rules and regulations governing construction of wells and well casings to ensure integrity of wells, well casings, and the geologic and hydrologic isolation of the oil and gas formation during and following well stimulation treatments, and full disclosure of the composition and disposition of well stimulation fluids, including, but not limited to, hydraulic fracturing fluids, acid well stimulation fluids, and flowback fluids.

(B) The rules and regulations shall additionally include provisions for an independent entity or person to perform the notification requirements pursuant to paragraph (6) of subdivision (d), for the operator to provide for baseline and followup water testing upon request as specified in paragraph (7) of subdivision (d).

(C) (i) In order to identify the acid matrix stimulation treatments that are subject to this section, the rules and regulations shall establish threshold values for acid volume applied per treated foot of any individual stage of the well or for total acid volume of the treatment, or both, based upon a quantitative assessment of the risks posed by acid matrix stimulation treatments that exceed the specified threshold value or values in order to prevent, as far as possible, damage to life, health, property, and natural resources pursuant to Section 3106.

(ii) On or before January 1, 2020, the division shall review and evaluate the threshold values for acid volume applied per treated foot and total acid volume of the treatment, based upon data collected in the state, for acid matrix stimulation treatments. The division shall revise the values through the regulatory process, if necessary, based upon the best available scientific information, including the results of the independent scientific study pursuant to subparagraph (B) of paragraph (3) of subdivision (a).

(2) Full disclosure of the composition and disposition of well stimulation fluids, including, but not limited to, hydraulic fracturing fluids and acid stimulation treatment fluids, shall, at a minimum, include:

(A) The date of the well stimulation treatment.

(B) A complete list of the names, Chemical Abstract Service (CAS) numbers, and maximum concentration, in percent by mass, of each and every chemical constituent of the well stimulation treatment fluids used. If a CAS number does not exist for a chemical constituent, the well owner or operator may provide another unique identifier, if available.

(C) The trade name, the supplier, concentration, and a brief description of the intended purpose of each additive contained in the well stimulation treatment fluid.

(D) The total volume of base fluid used during the well stimulation treatment, and the identification of whether the base fluid is water suitable for irrigation or domestic purposes, water not suitable for irrigation or domestic purposes, or a fluid other than water.

(E) The source, volume, and specific composition and disposition of all water, including, but not limited to, all water used as base fluid during the well stimulation treatment and recovered from the well following the well stimulation treatment that is not otherwise reported as produced water pursuant to Section 3227. Any repeated reuse of treated or untreated water for well stimulation treatments and well stimulation treatment-related activities shall be identified.

(F) The specific composition and disposition of all well stimulation treatment fluids, including waste fluids, other than water.

(G) Any radiological components or tracers injected into the well as part of, or in order to evaluate, the well stimulation treatment, a description of the recovery method, if any, for those components or tracers, the recovery rate, and specific disposal information for recovered components or tracers.

(H) The radioactivity of the recovered well stimulation fluids.

(I) The location of the portion of the well subject to the well stimulation treatment and the extent of the fracturing or other modification, if any, surrounding the well induced by the treatment.

(c) (1) Through the consultation process described in paragraph (1) of subdivision (b), the division shall collaboratively identify and delineate the existing statutory authority and regulatory responsibility relating to well stimulation treatments and well stimulation treatment-related activities of the Department of Toxic Substances Control, the State Air Resources Board, any local air districts, the State Water Resources Control Board, the Department of Resources Recycling and Recovery, any regional water quality control board, and other public entities, as applicable. This shall specify how the respective authority, responsibility, and notification and reporting requirements associated with well stimulation treatments and well stimulation treatment-related activities are divided among each public entity.

(2) On or before January 1, 2015, the division shall enter into formal agreements with the Department of Toxic Substances Control, the State Air Resources Board, any local air districts where well stimulation treatments may occur, the State Water Resources Control Board, the Department of Resources Recycling and Recovery, and any regional water quality control board where well stimulation treatments may occur, clearly delineating respective authority, responsibility, and notification and reporting requirements associated with well stimulation treatments and well stimulation treatment-related activities, including air and water quality monitoring, in order to promote regulatory transparency and accountability.

(3) The agreements under paragraph (2) shall specify the appropriate public entity responsible for air and water quality monitoring and the safe and lawful disposal of materials in landfills, include trade secret handling protocols, if necessary, and provide for ready public access to information related to well stimulation treatments and related activities.

(4) Regulations, if necessary, shall be revised appropriately to incorporate the agreements under paragraph (2).

(d) (1) Notwithstanding any other law or regulation, before performing a well stimulation treatment on a well, the operator shall apply for a permit to perform a well stimulation treatment with the supervisor or district deputy. The well stimulation treatment permit application shall contain the pertinent data the supervisor requires on printed forms supplied by the division or on other forms acceptable to the supervisor. The information provided in the well stimulation treatment permit application shall include, but is not limited to, the following:

(A) The well identification number and location.

(B) The time period during which the well stimulation treatment is planned to occur.

(C) A water management plan that shall include all of the following:

(i) An estimate of the amount of water to be used in the treatment. Estimates of water to be recycled following the well stimulation treatment may be included.

(ii) The anticipated source of the water to be used in the treatment.

(iii) The disposal method identified for the recovered water in the flowback fluid from the treatment that is not produced water included in the statement pursuant to Section 3227.

(D) A complete list of the names, Chemical Abstract Service (CAS) numbers, and estimated concentrations, in percent by mass, of each and every chemical constituent of the well stimulation fluids anticipated to be used in the treatment. If a CAS number does not exist for a chemical constituent, the well owner or operator may provide another unique identifier, if available.

(E) The planned location of the well stimulation treatment on the wellbore, the estimated length, height, and direction of the induced fractures or other planned modification, if any, and the location of existing wells, including plugged and abandoned wells, that may be impacted by these fractures and modifications.

(F) A groundwater monitoring plan. Required groundwater monitoring in the vicinity of the well subject to the well stimulation treatment shall be satisfied by one of the following:

(i) The well is located within the boundaries of an existing oil or gas field-specific or regional monitoring program developed pursuant to Section 10783 of the Water Code.

(ii) The well is located within the boundaries of an existing oil or gas field-specific or regional monitoring program developed and implemented by the well owner or operator meeting the model criteria established pursuant to Section 10783 of the Water Code.

(iii) Through a well-specific monitoring plan implemented by the owner or operator meeting the model criteria established pursuant to Section 10783 of the Water Code, and submitted to the appropriate regional water board for review.

(G) The estimated amount of treatment-generated waste materials that are not reported in subparagraph (C) and an identified disposal method for the waste materials.

(2) (A) At the supervisor’s discretion, and if applied for concurrently, the well stimulation treatment permit described in this section may be combined with the well drilling and related operation notice of intent required pursuant to Section 3203 into a single combined authorization. The portion of the combined authorization applicable to well stimulation shall meet all of the requirements of a well stimulation treatment permit pursuant to this section.

(B) The time period available for approval of the combined authorization applicable to well stimulation is subject to the terms of this section, and not Section 3203.

(3) (A) The supervisor or district deputy shall review the well stimulation treatment permit application and may approve the permit if the application is complete. An incomplete application shall not be approved.

(B) A well stimulation treatment or repeat well stimulation treatment shall not be performed on any well without a valid permit that the supervisor or district deputy has approved.

(C) In considering the permit application, the supervisor shall evaluate the quantifiable risk of the well stimulation treatment.

(D) In the absence of state implementation of a regional groundwater monitoring program pursuant to paragraph (1) of subdivision (h) of Section 10783 of the Water Code, the supervisor or district deputy may approve a permit application for well stimulation treatment pursuant to subparagraph (A) before the approval by the State Water Resources Control Board or a regional water quality control board of an area-specific groundwater monitoring program developed by an owner or operator pursuant to paragraph (2) of subdivision (h) of Section 10783 of the Water Code, but the well stimulation treatment shall not commence until the state board or the regional water board approves the area-specific groundwater monitoring program.

(4) The well stimulation treatment permit shall expire one year from the date that the permit is issued.

(5) Within five business days of issuing a permit to perform a well stimulation treatment, the division shall provide a copy of the permit to the appropriate regional water quality control board or boards and to the local planning entity where the well, including its subsurface portion, is located. The division shall also post the permit on the publicly accessible portion of its internet website within five business days of issuing a permit.

(6) (A) It is the policy of the state that a copy of the approved well stimulation treatment permit and information on the available water sampling and testing be provided to every tenant of the surface property and every surface property owner or authorized agent of that owner whose property line location is one of the following:

(i) Within a 1,500 foot radius of the wellhead.

(ii) Within 500 feet from the horizontal projection of all subsurface portions of the designated well to the surface.

(B) (i) The well owner or operator shall identify the area requiring notification and shall contract with an independent entity or person who is responsible for, and shall perform, the notification required pursuant to subparagraph (A).

(ii) The independent entity or person shall identify the individuals notified, the method of notification, the date of the notification, a list of those notified, and shall provide a list of this information to the division.

(iii) The performance of the independent entity or persons shall be subject to review and audit by the division.

(C) A well stimulation treatment shall not commence before 30 calendar days after the permit copies pursuant to subparagraph (A) are provided.

(7) (A) A property owner notified pursuant to paragraph (6) may request water quality sampling and testing from a designated qualified contractor on any water well suitable for drinking or irrigation purposes and on any surface water suitable for drinking or irrigation purposes as follows:

(i) Baseline measurements before the commencement of the well stimulation treatment.

(ii) Followup measurements after the well stimulation treatment on the same schedule as the pressure testing of the well casing of the treated well.

(B) The State Water Resources Control Board shall designate one or more qualified independent third-party contractor or contractors that adhere to board-specified standards and protocols to perform the water sampling and testing. The well owner or operator shall pay for the sampling and testing. The sampling and testing performed shall be subject to audit and review by the State Water Resources Control Board or applicable regional water quality control board, as appropriate.

(C) The results of the water testing shall be provided to the division, appropriate regional water board, and the property owner or authorized agent. A tenant notified pursuant to paragraph (6) shall receive information on the results of the water testing to the extent authorized by the tenant’s lease and, where the tenant has lawful use of the ground or surface water identified in subparagraph (A), the tenant may independently contract for similar groundwater or surface water testing.

(8) The division shall retain a list of the entities and property owners notified pursuant to paragraphs (5) and (6).

(9) The operator shall provide notice to the division at least 72 hours before the actual start of the well stimulation treatment in order for the division to witness the treatment.

(e) The Secretary of the Natural Resources Agency shall notify the Joint Legislative Budget Committee and the Chairs of the Assembly Natural Resources, Senate Environmental Quality, and Senate Natural Resources and Water Committees on the progress of the independent scientific study on well stimulation and related activities. The first progress report shall be provided to the committees on or before April 1, 2014, and progress reports shall continue every four months thereafter until the independent study is completed, including a peer review of the study by independent scientific experts.

(f) If a well stimulation treatment is performed on a well, a supplier that performs any part of the stimulation or provides additives directly to the operator for a well stimulation treatment shall furnish the operator with information suitable for public disclosure needed for the operator to comply with subdivision (g). This information shall be provided as soon as possible but no later than 30 days following the conclusion of the well stimulation treatment.

(g) Within 60 days following cessation of a well stimulation treatment on a well, the operator shall post or cause to have posted to an internet website designated or maintained by the division and accessible to the public all of the well stimulation fluid composition and disposition information required to be collected pursuant to rules and regulations adopted under subdivision (b), including well identification number and location. This shall include the collected water quality data, which the operator shall report electronically to the State Water Resources Control Board.

(h) The operator is responsible for compliance with this section.

(i) (1) All geologic features within a distance reflecting an appropriate safety factor of the fracture zone for well stimulation treatments that fracture the formation and that have the potential to either limit or facilitate the migration of fluids outside of the fracture zone shall be identified and added to the well history. Geologic features include seismic faults identified by the California Geologic Survey.

(2) For purposes of this section, the “fracture zone” is defined as the volume surrounding the wellbore where fractures were created or enhanced by the well stimulation treatment. The safety factor shall be at least five and may vary depending upon geologic knowledge.

(3) The division shall review the geologic features important to assessing well stimulation treatments identified in the independent study pursuant to paragraph (5) of subdivision (a). Upon completion of the review, the division shall revise the regulations governing the reporting of geologic features pursuant to this subdivision accordingly.

(j) (1) Public disclosure of well stimulation treatment fluid information claimed to contain trade secrets is governed by Section 1060 of the Evidence Code, or the Uniform Trade Secrets Act (Title 5 (commencing with Section 3426) of Part 1 of Division 4 of the Civil Code), and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(2) Notwithstanding any other law or regulation, none of the following information shall be protected as a trade secret:

(A) The identities of the chemical constituents of additives, including CAS identification numbers.

(B) The concentrations of the additives in the well stimulation treatment fluids.

(C) Any air or other pollution monitoring data.

(D) Health and safety data associated with well stimulation treatment fluids.

(E) The chemical composition of the flowback fluid.

(3) If a trade secret claim is invalid or invalidated, the division shall release the information to the public by revising the information released pursuant to subdivision (g). The supplier shall notify the division of any change in status within 30 days.

(4) (A) If a supplier believes that information regarding a chemical constituent of a well stimulation fluid is a trade secret, the supplier shall nevertheless disclose the information to the division in conjunction with a well stimulation treatment permit application, if not previously disclosed, within 30 days following cessation of a well stimulation on a well, and shall notify the division in writing of that belief.

(B) A trade secret claim shall not be made after initial disclosure of the information to the division.

(C) To comply with the public disclosure requirements of this section, the supplier shall indicate where trade secret information has been withheld and provide substitute information for public disclosure. The substitute information shall be a list, in any order, of the chemical constituents of the additive, including CAS identification numbers. The division shall review and approve the supplied substitute information.

(D) This subdivision does not permit a supplier to refuse to disclose the information required pursuant to this section to the division.

(5) In order to substantiate the trade secret claim, the supplier shall provide information to the division that shows all of the following:

(A) The extent to which the trade secret information is known by the supplier’s employees and others involved in the supplier’s business and outside the supplier’s business.

(B) The measures taken by the supplier to guard the secrecy of the trade secret information.

(C) The value of the trade secret information to the supplier and its competitors.

(D) The amount of effort or money the supplier expended developing the trade secret information and the ease or difficulty with which the trade secret information could be acquired or duplicated by others.

(6) If the division determines that the information provided in support of a request for trade secret protection pursuant to paragraph (5) is incomplete, the division shall notify the supplier and the supplier shall have 30 days to complete the submission. An incomplete submission does not meet the substantive criteria for trade secret designation.

(7) If the division determines that the information provided in support of a request for trade secret protection does not meet the substantive criteria for trade secret designation, the department shall notify the supplier by certified mail of its determination. The division shall release the information to the public, but not earlier than 60 days after the date of mailing the determination, unless, before the expiration of the 60-day period, the supplier obtains an action in an appropriate court for a declaratory judgment that the information is subject to protection or for a preliminary injunction prohibiting disclosure of the information to the public and provides notice to the division of the court order.

(8) The supplier is not required to disclose trade secret information to the operator.

(9) Upon receipt of a request for the release of trade secret information to the public, the following procedure applies:

(A) The division shall notify the supplier of the request in writing by certified mail, return receipt requested.

(B) The division shall release the information to the public, but not earlier than 60 days after the date of mailing the notice of the request for information, unless, before the expiration of the 60-day period, the supplier obtains an action in an appropriate court for a declaratory judgment that the information is subject to protection or for a preliminary injunction prohibiting disclosure of the information to the public and provides notice to the division of that action.

(10) The division shall develop a timely procedure to provide trade secret information in the following circumstances:

(A) To an officer or employee of the division, the state, local governments, including, but not limited to, local air districts, or the United States, in connection with the official duties of that officer or employee, to a health professional under any law for the protection of health, or to contractors with the division or other government entities and their employees if, in the opinion of the division, disclosure is necessary and required for the satisfactory performance of a contract, for performance of work, or to protect health and safety.

(B) To a health professional in the event of an emergency or to diagnose or treat a patient.

(C) In order to protect public health, to any health professional, toxicologist, or epidemiologist who is employed in the field of public health and who provides a written statement of need. The written statement of need shall include the public health purposes of the disclosure and shall explain the reason the disclosure of the specific chemical and its concentration is required.

(D) A health professional may share trade secret information with other persons as may be professionally necessary, in order to diagnose or treat a patient, including, but not limited to, the patient and other health professionals, subject to state and federal laws restricting disclosure of medical records including, but not limited to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of Division 1 of the Civil Code.

(E) For purposes of this paragraph, “health professional” means any person licensed or certified pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code, the Osteopathic Initiative Act, the Chiropractic Initiative Act, or the Emergency Medical Services System and the Prehospital Emergency Medical Care Personnel Act (Division 2.5 (commencing with Section 1797) of the Health and Safety Code).

(F) A person in possession of, or having access to, confidential trade secret information pursuant to this subdivision may disclose this information to any person who is authorized to receive it. A written confidentiality agreement shall not be required.

(k) A well granted confidential status pursuant to Section 3234 shall not be required to disclose well stimulation treatment fluid information pursuant to subdivision (g) until the confidential status of the well ceases. Notwithstanding the confidential status of a well, it is public information that a well will be or has been subject to a well stimulation treatment.

(l) The division shall perform random periodic spot check inspections to ensure that the information provided on well stimulation treatments is accurately reported, including that the estimates provided before the commencement of the well stimulation treatment are reasonably consistent with the well history.

(m) Where the division shares jurisdiction over a well or the well stimulation treatment on a well with a federal entity, the division’s rules and regulations shall apply in addition to all applicable federal laws and regulations.

(n) This article does not relieve the division or any other agency from complying with any other provision of existing laws, regulations, and orders.

history: (History: Amended by Stats. 2021, Ch. 615, Sec. 367. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)

article: 3. Well Stimulation


citation: PRC § 3161

text:
(a) The division shall finalize the regulations governing this article on or before January 1, 2015. Notwithstanding any other laws, the regulations shall become effective on July 1, 2015.

(b) The division shall allow, until regulations specified in subdivision (b) of Section 3160 are finalized and implemented, and upon written notification by an operator, all of the activities defined in Section 3157, provided all of the following conditions are met:

(1) The owner or operator certifies compliance with paragraph (2) of subdivision (b) of, paragraphs (1), (6), and (7) of subdivision (d) of, and paragraph (1) of subdivision (g) of, Section 3160.

(2) The owner or operator shall provide a complete well history, incorporating the information required by Section 3160, to the division on or before March 1, 2015.

(3) (A) The division commences the preparation of an environmental impact report (EIR) pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)), to provide the public with detailed information regarding any potential environmental impacts of well stimulation in the state.

(B) Any environmental review conducted by the division shall fully comply with both of the following requirements:

(i) The EIR shall be certified by the division as the lead agency, no later than July 1, 2015.

(ii) The EIR shall address the issue of activities that may be conducted as defined in Section 3157 and that may occur at oil wells in the state existing prior to, and after, January 1, 2014.

(C) This paragraph does not prohibit a local lead agency from conducting its own EIR.

(4) The division ensures that all activities pursuant to this section fully conform with this article and other applicable provisions of law on or before December 31, 2015, through a permitting process.

(c) The division has the emergency regulatory authority to implement the purposes of this section. Notwithstanding Section 11349.6 of the Government Code or other laws, an emergency regulation adopted pursuant to this subdivision implementing subdivision (b) shall be filed with, but shall not be disapproved by, the Office of Administrative Law, and shall remain in effect until revised by the director or July 1, 2015, whichever is earlier.

(d) This section does not limit the authority of the division to take appropriate action pursuant to subdivision (a) of Section 3106.

history: (History: Amended by Stats. 2014, Ch. 35, Sec. 131. (SB 861) Effective June 20, 2014.)

article: 3. Well Stimulation


citation: PRC § 3180

text:
(a) As used in this article, “gas storage well” means an active or idle well used primarily to inject natural gas into or withdraw natural gas from an underground natural gas storage facility.

(b) On or before January 1, 2018, the operators of all gas storage wells shall have commenced a mechanical integrity testing regime specified by the division. The testing regime shall include all of the following:

(1) Regular leak testing.

(2) Casing wall thickness inspection.

(3) Pressure test of the production casing.

(4) Any additional testing deemed necessary by the division to demonstrate the integrity of the well.

(c) All anomalies identified in the testing shall be immediately reported to the appropriate district office and explained to the supervisor’s satisfaction.

(d) (1) The division shall promulgate regulations that establish standards for the design, construction, and maintenance of all gas storage wells to ensure that integrity concerns with a gas storage well are identified and addressed before they can become a threat to life, health, property, the climate, or natural resources.

(2) The regulations shall require that gas storage wells be designed, constructed, and maintained to ensure that a single point of failure does not pose an immediate threat of loss of control of fluids, as determined by the supervisor.

(3) In developing the regulations, the division shall consider enhanced design, construction, and maintenance measures that could meet the standard in paragraph (2), including any of the following:

(A) Primary and secondary mechanical well barriers to isolate the storage gas within the storage reservoir and transfer storage gas from the surface into and out of the storage reservoir.

(B) Production casing to the surface with the required integrity to contain reservoir pressure.

(C) Tubing and packer and production tree with the required integrity to contain reservoir pressure.

(D) Surface controlled subsurface safety valves or Christmas tree valves with the required integrity to contain reservoir pressure that halt flow through the well.

(E) Secondary barrier with overlapping cement casing between two concentric casings with good quality cement bond.

(F) Wellhead with annular valves and seals and the required integrity to contain reservoir pressure.

(G) Casing with a hanger and seal assembly.

(H) Any other well construction requirements the supervisor determines would improve the protection of public health, safety, the environment, and natural resources.

(4) In developing the regulations, the division shall develop a schedule for ongoing mechanical integrity testing.

(e) In order to facilitate consistency, standardization, and training for site inspection and maintenance, to the extent that the regulations promulgated by the division pursuant to subdivision (d) address surface equipment associated with an underground gas storage facility, the division shall ensure that those regulations are consistent with comparable requirements in Parts 190 to 199, inclusive, of Title 49 of the Code of Federal Regulations.

history: (History: Added by Stats. 2016, Ch. 673, Sec. 3. (SB 887) Effective January 1, 2017.)

article: 3.5. Natural Gas Storage Wells

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 3.5. Natural Gas Storage Wells


citation: PRC § 3181

text:
(a) The operator of a gas storage well shall submit for the supervisor’s approval the following materials:

(1) Data describing the gas storage project and gas storage wells that demonstrate that stored gas will be confined to the approved zone or zones. Updated data shall be provided to the division if conditions change or if more accurate data become available.

(2) A risk management plan to identify and plan for mitigation of all threats and hazards and potential threats and hazards associated with gas storage well operation in order to ensure internal and external mechanical integrity of a well, including site-specific information. The risk management plan shall provide for regular review and revision, as needed, to ensure the plan appropriately reflects current conditions. The risk management plan shall include, but is not limited to, all of the following:

(A) A natural gas leak prevention and response program that addresses the full range of natural gas leaks possible at the facility with specific response plans that provide for immediate control of the leak. The operator shall consult with local emergency response entities on the response plans. The prevention and response program shall include, but is not limited to, all of the following:

(i) A protocol for public notice of a large, uncontrollable leak to any potentially impacted community, as defined in the risk management plan, if the leak cannot be controlled within 48 hours of discovery by the operator.

(ii) Prepositioning, as feasible, and identification of materials and personnel necessary to respond to leaks. This shall include materials and equipment to respond to and stop the leak itself as well as to protect public health.

(iii) The identification of personnel responsible for notifying regulatory authorities with jurisdiction over the range of leaks possible.

(B) A plan for corrosion monitoring and evaluation.

(C) A schedule for regular well and reservoir integrity assessments.

(D) An assessment of the risks associated with the gas storage well and its operation.

(E) Planned risk mitigation efforts.

(F) A regular maintenance program for the well and the portion of the facility within the division’s jurisdiction. The maintenance program shall include training for site personnel and proactive replacement of equipment at risk of failure to ensure safe operation.

(3) In addition to other factors deemed relevant by the supervisor, the risk management plan required in paragraph (2) shall consider all of the following:

(A) The facility’s distance from dwellings, other buildings intended for human occupancy, or other well-defined outside areas where people may assemble such as campgrounds, recreational areas, or playgrounds.

(B) The risks to and from the well related to roadways, rights of way, railways, airports, and industrial facilities.

(C) Proximity to environmentally or culturally sensitive areas.

(D) The risks of well sabotage.

(E) The current and predicted development of the surrounding area.

(F) Topography and local wind patterns.

(b) All of the materials described in subdivision (a) shall be reported to the division according to a schedule approved by the supervisor. The operator shall not deviate from the programs, plans, and other conditions and protocols contained in the materials without prior written approval by the supervisor.

article: 3.5. Natural Gas Storage Wells


text:
(a) (1) The operator of a gas storage well shall provide to the division a complete chemical inventory of the materials, of any phase, that may be emitted from the gas storage well in the event of a reportable leak, as defined for purposes of Section 3183, periodically, as determined by the division, but no less than annually. For purposes of this section, material includes, but is not limited to, the composition of formation fluids, gas in the storage reservoir, wellbore-produced fluids, and all well maintenance and control materials, including well kill fluids, placed in the well. For purposes of this section, fluids include suspended or entrained solids.

(2) The division shall consider information collected pursuant to its existing regulations when determining what information satisfies the requirements of this section.

(b) Notwithstanding subdivision (a), in the event of a reportable leak, as defined for purposes of Section 3183, the operator of a gas storage well shall provide to the division the composition of well kill fluids within five days of their use in a leaking gas storage well and any updates to the information reported pursuant to subdivision (a) to ensure that it is current.

(c) The information provided pursuant to this section shall be provided with sufficient accuracy and precision as determined by the division, in consultation with the Office of Environmental Health Hazard Assessment and other relevant health experts, to inform the determination of public health impacts from the release of these materials to the environment.

(d) If an operator subject to this section is unable to obtain information about a chemical from the chemical’s supplier for any reason, including, but not limited to, assertion by the chemical supplier of trade secret protections, the division may require the supplier to furnish that information to the division.

(e) In the event of a reportable leak, as defined for purposes of Section 3183, the division shall post the information related to the reportable leak received pursuant to this section on its internet website.

history: (History: Added by Stats. 2019, Ch. 773, Sec. 3. (SB 463) Effective January 1, 2020.)

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3182

text: On a weekly basis, the division shall post a list of notices received pursuant to Section 3203 on the division’s Internet Web site. Copies of any notice shall be provided to members of the public upon request.

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3183

text:
(a) The division, in consultation with the State Air Resources Board, shall determine and adopt by regulation what constitutes a reportable leak from a gas storage well and the timeframe for reporting that leak. The regulations shall require an operator to immediately report to the division a leak that poses a significant present or potential hazard to public health and safety, property, or to the environment.

(b) Until the regulations pursuant to subdivision (a) are in effect, a leak of any size from a gas storage well shall be deemed a reportable leak, and the operator shall notify the division immediately.

(c) If a leak from a gas storage well that is reported to the division pursuant to subdivision (a) or (b), as applicable, cannot be controlled within 48 hours, the division shall post information about the leak on its internet website and provide regular updates to the public until the leak is stopped.

(d) The division, in consultation with the State Air Resources Board, shall review and, if necessary, revise the regulations developed pursuant to subdivision (a) no less than once every 10 years.

history: (History: Amended by Stats. 2019, Ch. 773, Sec. 4. (SB 463) Effective January 1, 2020.)

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3184

text:
(a) Within 72 hours of being notified of a reportable leak, pursuant to Section 3183, the supervisor shall determine if the reportable leak poses a significant present or potential hazard to public health and safety, property, or to the environment such that a relief well is necessary. If the supervisor makes that determination, the operator shall immediately begin preparation for, and, as soon as practicable at the determination of the supervisor, commence the drilling of, a relief well.

(b) Nothing in subdivision (a) shall prevent the supervisor from making a determination after the initial 72-hour period that a reportable leak poses a significant hazard to public health and safety, property, or to the environment and that a relief well is necessary. If the supervisor makes that determination, the operator shall immediately begin preparation for, and, as soon as practicable at the determination of the supervisor, commence the drilling of, a relief well.

(c) If the operator is required to drill a relief well under subdivision (a) or (b), the operator’s efforts to drill the relief well shall continue until the reportable leak has been stopped and the cause of the reportable leak has been fully addressed or the supervisor determines that other means of controlling the reportable leak are appropriate.

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3185

text: The division shall perform unannounced random onsite inspections of some gas storage wells annually. The results shall be posted and available to the public on the division’s Internet Web site.

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3186

text: An operator of a gas storage well shall develop and maintain a comprehensive gas storage well training and mentoring program for those employees whose job duties involve the safety of operations and maintenance of gas storage wells and associated equipment. The training program shall include, but is not limited to, gas storage well operations, including best practices to prevent leaks, maintenance and testing, gas storage well safety regulations, emergency response, and incident reporting. If storage field employees are represented by a labor union, the operator shall consult with the relevant union local on safety issues and, when requested, establish a framework to provide training through a joint labor-management training program.

article: 3.5. Natural Gas Storage Wells


text:
On or before July 1, 2021, in response to the independent root cause analysis of the 2015 well leak at the Aliso Canyon gas storage facility prepared by Blade Energy Partners dated May 16, 2019, and ordered by the supervisor and the Public Utilities Commission, the division shall review and, if necessary, revise its natural gas storage well policy and regulations to address the root causes identified. At a minimum, the division shall evaluate and consider all of the following:

(a) Requirements for cathodic protection measures for well casings, where appropriate, on a well-by-well or field-by-field basis.

(b) Requirements for well control plans for a gas storage field, that include the range of flow properties possible in the event of an uncontrolled well release.

(c) Requirements for investigating leaks and other pressure equipment integrity incidents that present a risk of leaks as determined by the division. This shall include reporting requirements to the division.

history: (History: Added by Stats. 2019, Ch. 773, Sec. 5. (SB 463) Effective January 1, 2020.)

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3187

text: All materials provided to the division and approved by the supervisor to comply with Sections 3181, 3184, and 3185 shall be posted and available to the public on the Internet Web site of the division in a timely manner.

article: 3.5. Natural Gas Storage Wells


citation: PRC § 3190

text:
For purposes of this article, the following definitions apply:

(a) “Federal agency” means the United States Environmental Protection Agency, including Region 9 of that agency.

(b) (1) “Gravity-based energy storage well” means a well that meets all of the following:

(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.

(B) The well is isolated from a hydrocarbon reservoir.

(C) The well has mechanical integrity.

(D) The well is not a conduit for fluid migration into a beneficial use aquifer.

(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.

(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.

(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained.

history: (History: Added by Stats. 2025, Ch. 419, Sec. 1. (SB 567) Effective January 1, 2026. Repealed as of January 1, 2035, pursuant to Section 3190.9.)

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 3.6. Gravity-Based Energy Storage Well Pilot Program


text:
(a) The supervisor, after consulting with the State Water Resources Control Board and an appropriate regional water quality control board, may authorize the conversion of not more than 250 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.

(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor, the State Water Resources Control Board, or an appropriate regional water quality control board may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well, including, but not limited to, providing an analysis of the chemical composition of the fluid in the wellbore, and may require testing for, among other indicators of suitability, total dissolved solids, total petroleum hydrocarbon as crude oil, major cations, including, but not limited to, calcium, magnesium, sodium, potassium, iron, manganese, strontium, and boron, major anions, including, but not limited to, chloride, sulfate, bicarbonate, carbonate, bromide, and iodide, total alkalinity and hydroxide, electrical conductance, potential of hydrogen or pH, and temperature. Liquid analysis required pursuant to this section shall be performed by a laboratory that is certified by the State Water Resources Control Board’s Environmental Laboratory Accreditation Program. The performing laboratory shall submit the data and analysis directly to the supervisor or the appropriate regional water quality control board, as appropriate, using a digital format, and also to the State Water Resources Control Board, in an electronic format uploaded to their online GeoTracker information system following the applicable regulations adopted pursuant to Section 13197.5 of the Water Code.

(c) The operator, before conversion of a well to a gravity-based energy storage well, shall file with the supervisor a written notice of intention to convert the well to a gravity-based energy storage well. The notice shall contain the pertinent data the supervisor requires in a format acceptable to the supervisor. The supervisor may require other pertinent information to supplement the notice. If conversion has not commenced within 24 months from the approval of the notice, the notice shall be deemed canceled. The notice shall not be extended and the cancellation shall be noted in the division’s records.

(d) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site, consistent with the requirements of this division.

(e) (1) Before authorizing the conversion of a well for use as a gravity-based energy storage well, the supervisor shall obtain an enforceable commitment from the operator that all contractors and subcontractors, at every tier, performing the conversion will pay at least prevailing wages and will use a skilled and trained workforce to perform all work that falls within an apprenticeable occupation in the building and construction trades.

(2) Paragraph (1) shall not apply if all work to perform the conversion is subject to a project labor agreement that requires the payment of prevailing wages and the use of a skilled and trained workforce.

(3) For purposes of this subdivision, the following definitions apply:

(A) “Prevailing wages” means at the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.

(B) “Project labor agreement” means a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code.

(C) “Skilled and trained workforce” has the same meaning as set forth in Section 2601 of the Public Contract Code.

(f) Submittal of a written notice of intention or supplemental notice pursuant to this section is separate from, and in addition to, any requirement to submit a written notice of intention or supplemental notice pursuant to Section 3203.

article: 3.6. Gravity-Based Energy Storage Well Pilot Program


text: A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization of the federal agency. The written acknowledgment and authorization shall be part of the well record.


text:
(a) For purposes of this section, “plan” means the plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.

(b) An idle well that is authorized for use as a gravity-based energy storage well shall be identified in any plan or update to a plan. Identification of the idle well as a gravity-based energy storage well within the plan or update to the plan shall constitute the elimination of an idle well for purposes of compliance with plan requirements.

(c) A gravity-based energy storage well that ceases to be operated as a gravity-based energy storage well may be incorporated as an idle well in any plan or update to a plan and subject to the plan elimination requirements.

(d) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3.


text:
(a) The division shall require mechanical integrity testing before the conversion of a well to a gravity-based energy storage well, and not less than annually thereafter, that shall include, at a minimum, pressure testing. Test results and testing requirements shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.

(b) A well, after being converted for use as a gravity-based energy storage well, shall be continuously monitored for leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for leak monitoring and reporting.

(c) The operator of a gravity-based energy storage well shall annually report data, including, but not limited to, the number of wells converted to gravity-based energy storage wells, the number of converted gravity-based energy storage wells that were previously leaking methane or other fluid, the average number of cycles to store and produce energy per day by gravity-based energy storage wells, and energy production from gravity-based energy storage wells, to the division.

(d) This section does not alter or affect the obligation of the operator to comply with Section 8589.7 of the Government Code, as applicable.


text: A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.


text: Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.


text: The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.


text:
(a) On or by January 1, 2033, the division, in consultation with entities operating gravity-based energy storage wells, the Secretary for Environmental Protection, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells as a result of the benefits determined for renewable energy sources and the storage of the energy in gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:

(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.

(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for gravity-based energy storage wells to ensure safe, leak-free operation, including, but not limited to, methane leaks and leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.

(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.

(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.

(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.

(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.

(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.


text:
(a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.

(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.

(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified, upon the repeal of this article, as idle wells subject to Section 3206 and other applicable law.

history: (History: Added by Stats. 2025, Ch. 419, Sec. 1. (SB 567) Effective January 1, 2026. Repealed as of January 1, 2035, by its own provisions. Note: Repeal affects Article 3.6, commencing with Section 3190.)


citation: PRC § 3200

text: An owner or operator of a well or production facility shall designate an agent, giving his or her address, who resides in this state, to receive and accept service of all orders, notices, and processes of the supervisor or a court of law. Every person so appointing an agent shall, within five days after the termination of the agency, notify the supervisor, in writing, of the termination, and unless operations are discontinued, shall appoint a new agent.

history: (History: Amended by Stats. 2008, Ch. 562, Sec. 5. Effective January 1, 2009.)

article: 4. Regulation of Operations

path: 3. OIL AND GAS > 1. Oil and Gas Conservation > 4. Regulation of Operations


citation: PRC § 3201

text:
(a) The operator of a well or production facility shall notify the supervisor or the district deputy, in writing, in the form that 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. The operator shall not be relieved of responsibility for the well or production facility until the supervisor or the district deputy acknowledges the sale, assignment, transfer, conveyance, exchange, or other disposition, in writing, and the person acquiring the well or production facility is in compliance with Section 3202. The operator’s notice shall contain all of the following information:

(1) The name and address of the person to whom the well or production facility was or will be sold, assigned, transferred, conveyed, exchanged, or otherwise disposed.

(2) The name and location of the well or production facility, and a description of the land upon which the well or production facility is situated.

(3) The date that the sale, assignment, transfer, conveyance, exchange, or other disposition becomes final.

(4) The date when possession was or will be relinquished by the operator as a result of that disposition.

(b) (1) Upon request of the supervisor, the former operator shall, within 15 days, provide to the division copies of the documents recorded with a governmental office involving the sale, assignment, transfer, conveyance, exchange, or other disposition of the well or production facility.

(2) If after reviewing the documents submitted pursuant to paragraph (1) the division determines additional documentation is needed to validate the sale, assignment, transfer, conveyance, exchange, or other disposition of the well or production facility, the division shall notify the former operator.

(3) Upon receiving notice pursuant to paragraph (2), the former operator shall, within 30 days, provide to the division documents necessary to identify the operator of the well or production facility. If the documents are not otherwise publicly available, the former operator may redact information from the documents before submitting them to the division if the division agrees the information is not relevant to identification of the current operator of the well or production facility.

history: (History: Amended by Stats. 2020, Ch. 370, Sec. 234. (SB 1371) Effective January 1, 2021.)

article: 4. Regulation of Operations


citation: PRC § 3202

text:
(a) A person who acquires the right to operate a well or production facility, whether by purchase, transfer, assignment, conveyance, exchange, or other disposition, shall, as soon as it is reasonably possible, but not later than the date when the acquisition of the well or production facility becomes final, notify the supervisor or the district deputy, in writing, of the person’s operation. The acquisition of a well or production facility shall not be recognized as complete by the supervisor or the district deputy until the new operator provides all of the following material:

(1) The name and address of the person from whom the well or production facility was acquired.

(2) The name and location of the well or production facility, and a description of the land upon which the well or production facility is situated.

(3) The date when the acquisition becomes final.

(4) The date when possession was or will be acquired.

(5) An indemnity bond for each well as required pursuant to Section 3204, 3205, or 3205.8, as applicable.

(b) (1) Upon request of the supervisor, the new operator shall, within 15 days, provide to the division copies of the documents recorded with a governmental office involving the sale, assignment, transfer, conveyance, exchange, or other disposition of the well or production facility.

(2) If after reviewing the documents submitted pursuant to paragraph (1) the division determines additional documentation is needed to validate the sale, assignment, transfer, conveyance, exchange, or other disposition of the well or production facility, the division shall notify the new operator.

(3) Upon receiving notice pursuant to paragraph (2), the new operator shall, within 30 days, provide to the division documents necessary to identify the operator of the well or production facility. If the documents are not otherwise publicly available, the new operator may redact information from the documents before submitting them to the division if the division agrees the information is not relevant to identification of the current operator of the well or production facility.

(c) After notice is given pursuant to subdivision (a) and until another person acquires the well or production facility, the new operator shall notify the supervisor whether any of the rights have changed. That notification shall be in writing and occur every other year by July 1.

(d) The new operator shall also notify the supervisor within 30 days of any quitclaim of a well or production facility.

(e) The supervisor shall maintain records of all transfers recognized as complete pursuant to subdivision (a), including all materials required to be provided by the new operator under that subdivision, and shall make those records available on the division’s internet website.

history: (History: Amended by Stats. 2023, Ch. 359, Sec. 3. (AB 1167) Effective January 1, 2024.)

article: 4. Regulation of Operations


citation: PRC § 3203

text:
(a) The operator of any well, before commencing the work of drilling the well, shall file with the supervisor or the district deputy a written notice of intention to commence drilling. Drilling shall not commence until approval is given by the supervisor or the district deputy. If the supervisor or the district deputy fails to give the operator written response to the notice within 10 working days from the date of receipt, that failure shall be considered as an approval of the notice and the notice, for the purposes and intents of this chapter, shall be deemed a written report of the supervisor. If operations have not commenced within 24 months of receipt of the notice, the notice shall be deemed canceled, the notice shall not be extended, and the cancellation shall be noted in the division’s records. The notice shall contain the pertinent data the supervisor requires on printed forms supplied by the division or on other forms acceptable to the supervisor. The supervisor may require other pertinent information to supplement the notice.

(b) After the completion of any well, this section also applies as far as may be, to the deepening or redrilling of the well, any operation involving the plugging of the well, or any operations permanently altering in any manner the casing of the well. The number or designation of any well, and the number or designation specified for any well in a notice filed as required by this section, shall not be changed without first obtaining a written consent of the supervisor.

(c) If an operator has failed to comply with an order of the supervisor, the supervisor may deny approval of proposed well operations until the operator brings its existing well operations into compliance with the order. If an operator has failed to pay a civil penalty, remedy a violation that it is required to remedy to the satisfaction of the supervisor pursuant to an order issued under Section 3236.5, or to pay any charges assessed under Article 7 (commencing with Section 3400), the supervisor may deny approval to the operator’s proposed well operations until the operator pays the civil penalty, remedies the violation to the satisfaction of the supervisor, or pays the charges assessed under Article 7 (commencing with Section 3400).

history: (History: Amended by Stats. 2017, Ch. 652, Sec. 1. (SB 724) Effective January 1, 2018.)

article: 4. Regulation of Operations


text:
(a) The division shall require a copy of the local land use authorization that supports the installation of a well at the time an operator submits the notice of intention for the well under Section 3203.

(b) The division shall modify its forms used to evaluate notices of intention under Section 3203 to include expiration dates for the required local land use authorizations described in subdivision (a).

history: (History: Added by Stats. 2021, Ch. 727, Sec. 5. (SB 406) Effective January 1, 2022.)

article: 4. Regulation of Operations


citation: PRC § 3204

text:
(a) An operator who, on or after January 1, 2018, engages in the drilling, redrilling, deepening, or in any operation permanently altering the casing, of a well, shall file with the supervisor an individual indemnity bond for each well so drilled, redrilled, deepened, or permanently altered in the following amount:

(1) Twenty-five thousand dollars ($25,000) for each well that is less than 10,000 feet deep.

(2) Forty thousand dollars ($40,000) for each well that is 10,000 or more feet deep.

(b) The bond shall be filed with the supervisor at the time of the filing of the notice of intention to perform work on the well, as provided in Section 3203, or at the time of acquisition of the well, as provided in Section 3202. The bond shall be executed by the operator, as principal, and by an authorized surety company, as surety, on the condition that the principal named in the bond shall faithfully comply with all the provisions of this chapter, in drilling, redrilling, deepening, or permanently altering the casing in any well or wells covered by the bond, and shall secure the state against all losses, charges, and expenses incurred by it to obtain the compliance by the principal named in the bond.

(c) The conditions of the bond shall be stated in substantially the following language: “If the ____, the above bounden principal, shall well and truly comply with all the provisions of Division 3 (commencing with Section 3000) of the Public Resources Code and shall obey all lawful orders of the State Oil and Gas Supervisor or the district deputy or deputies, subject to subsequent appeal as provided in that division, and shall pay all charges, costs, and expenses incurred by the supervisor or the district deputy or deputies in respect of the well or wells or the property or properties of the principal, or assessed against the well or wells or the property or properties of the principal, in pursuance of the provisions of that division, then this obligation shall be void; otherwise, it shall remain in full force and effect.”

history: (History: Amended by Stats. 2023, Ch. 359, Sec. 4. (AB 1167) Effective January 1, 2024.)

article: 4. Regulation of Operations