Cal. PRC § 3206 — California Code / Code prc / Division 3 / Chapter 1 / Article 4 / Section 3206
Section 3206
Status: in_force

(a) No later than May 1 of each year, the operator of any idle well shall do either of the following:

(1) For each idle well that was an idle well at any time in the last calendar year, file with the supervisor an annual fee equal to the sum of the following amounts:

(A) One thousand dollars ($1,000) for each idle well that has been an idle well for less than three years.

(B) Two thousand five hundred dollars ($2,500) for each idle well that has been an idle well for three years or longer, but less than eight years.

(C) Five thousand dollars ($5,000) for each idle well that has been an idle well for 8 years or longer, but less than 15 years.

(D) Twelve thousand five hundred dollars ($12,500) for each idle well that has been an idle well 15 years or longer, but less than 20 years.

(E) (i) Until January 1, 2029, twenty-two thousand five hundred dollars ($22,500) for each idle well that has been an idle well for 20 years or longer.

(ii) On and after January 1, 2029, twenty-two thousand five hundred dollars ($22,500) for each idle well that has been an idle well for 20 years or longer, but less than 25 years.

(F) On and after January 1, 2029, sixty thousand dollars ($60,000) for each idle well that has been an idle well for 25 years or longer.

(2) File a plan with the supervisor to provide for the management and elimination of all idle wells. For purposes of the plan, elimination of an idle well shall be accomplished when the well has been properly abandoned in accordance with Section 3208, or it has been shown to the division’s satisfaction that, since the well became an idle well, the well has maintained production of oil or gas, maintained production of water used in production stimulation, or been used for enhanced oil recovery, reservoir pressure management, or injection for a continuous six-month period. The plan shall comply with all of the following:

(A) Specify the calendar year or years that it covers. The plan and any renewal of the plan shall cover a time period of up to eight years.

(B) Require the operator to consider all of the following when prioritizing idle wells for plugging and abandonment, in addition to priorities identified by the supervisor in regulations:

(i) The age of the idle well.

(ii) Any indication that the idle well potentially poses a threat to life, health, property, or natural resources.

(iii) Wells that are located within 3,200 feet of a sensitive receptor, as defined in Section 3280.

(C) Include notes indicating the basis for prioritizing wells.

(D) Be subject to approval by the supervisor, who may prioritize the order in which idle wells are addressed.

(E) Be reviewed for performance annually by the supervisor, and be subject to amendment by the supervisor, or by the operator with the approval of the supervisor. An updated plan shall be required if there is a change in ownership or holdings of the operator.

(F) The required rate of idle well elimination shall be based upon the number of idle wells under the control of an operator on January 1 of each year, as specified in subparagraph (G). If the operator has eliminated more wells than required in calendar year 2024 or any subsequent calendar year, the supervisor may deduct from the new requirement the number of idle wells eliminated in excess of those previously required. In addition, the supervisor may require additional well testing requirements as part of the plan.

(G) (i) For calendar years 2025 to 2027, inclusive, unless and until the operator has no idle wells, require that operators with 250 or fewer idle wells eliminate at least 5 percent of their idle wells each year, and, in no case, less than 1 idle well; operators with 251 to 1,250, inclusive, idle wells eliminate at least 6 percent of their idle wells each year; operators with 1,251 to 3,000, inclusive, idle wells eliminate at least 7 percent of their idle wells each year; and operators with more than 3,000 idle wells eliminate at least 15 percent of their idle wells each year.

(ii) For calendar years 2028 and 2029, unless and until the operator has no idle wells, require that operators with 250 or fewer idle wells eliminate at least 6 percent of their idle wells each year, and, in no case, less than 1 idle well; operators with 251 to 1,250, inclusive, idle wells eliminate at least 8 percent of their idle wells each year; operators with 1,251 to 3,000, inclusive, idle wells eliminate at least 10 percent of their idle wells each year; and operators with more than 3,000 idle wells eliminate at least 18 percent of their idle wells each year.

(iii) For calendar year 2030 and all subsequent calendar years, unless and until the operator has no idle wells, require that operators with 250 or fewer idle wells eliminate at least 8 percent of their idle wells each year, and, in no case, less than 1 idle well; operators with 251 to 1,250, inclusive, idle wells eliminate at least 10 percent of their idle wells each year; operators with 1,251 to 3,000, inclusive, idle wells eliminate at least 15 percent of their idle wells each year; and operators with more than 3,000 idle wells eliminate at least 20 percent of their idle wells each year.

(H) An operator who fails to comply with the plan, as determined by the supervisor after the annual performance review, is not eligible to use the requirements of this paragraph, for purposes of compliance with this section, for any of its idle wells. An operator may appeal to the director pursuant to Article 6 (commencing with Section 3350) regarding the supervisor’s rejection of a plan and plan amendments and the supervisor’s determination of the operator’s failure to comply with a plan. If the supervisor’s determination that the operator failed to comply with the plan is not timely appealed, or if the director upholds the supervisor’s determination upon appeal, the operator shall immediately file the fees required under paragraph (1) for each year that the operator failed to comply with the plan. That operator may not propose a new idle well plan under this paragraph for the next two years and then only if the operator has paid all required idle well fees and any associated late payment penalties and interest.

(b) All fees received under this section shall be deposited in the Hazardous and Idle-Deserted Well Abatement Fund, which is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the moneys in the Hazardous and Idle-Deserted Well Abatement Fund are hereby continuously appropriated to the department for expenditure without regard to fiscal year, to mitigate a hazardous or potentially hazardous condition, by well plugging and abandonment, decommissioning the production facilities, or both, at a well of an operator subject to the requirements of this section.

(c) The failure to file, for any well, the fee required under this section shall be conclusive evidence of desertion of the well, permitting the supervisor to order the well abandoned pursuant to Section 3237.

(d) This section does not prohibit a local agency from collecting a fee for regulation of wells.

(e) Subject to the approval of the division, an idle well shall not be subject to the requirements of this section if the operator has made a diligent effort to locate and access the well, and provided documentation of those efforts demonstrating that it is infeasible to locate or physically access the wellbore.

(f) This section does not apply to an idle well that is the subject of a court-approved settlement agreement entered into on or before December 31, 2024, between a local governmental entity and the operator of the idle well, if that settlement agreement imposes more stringent requirements relating to the management and elimination of idle wells than the requirements imposed by the amendments to this section made by Assembly Bill 1866 of the 2023–24 Regular Session of the Legislature.