2023 California Code › Public Resources Code - PRC › DIVISION 3 - OIL AND GAS › CHAPTER 1 - Oil and Gas Conservation › ARTICLE 4 - Regulation of Operations › Section 3236.5.

3236.5. (a) A person who violates this chapter or a regulation implementing this chapter is, at the supervisor’s discretion, subject to an administrative civil penalty as described in subdivision (b) for each violation. An act of God and an act of vandalism beyond the reasonable control of the operator shall not be considered a violation. The administrative civil penalty shall be imposed by an order of the supervisor pursuant to Section 3225 upon a determination that a violation has been committed by the person charged. The imposition of an administrative civil penalty under this section shall be in addition to any other penalty provided by law for the violation, except that a person is not subject to an administrative civil penalty imposed pursuant to this section and to a civil penalty imposed pursuant to Section 3236.2 for the same act or failure to act. When establishing the amount of the administrative civil penalty pursuant to this section, the supervisor shall consider, in addition to other relevant circumstances, all of the following:
(1) The extent of harm caused by the violation.
(2) The persistence of the violation.
(3) The pervasiveness of the violation.
(4) The number of prior violations by the same violator.
(5) The degree of culpability of the violator.
(6) Any economic benefit to the violator resulting from the violation.
(7) The violator’s ability to pay the administrative civil penalty amount, as determined based on information publicly available to the division.
(8) The supervisor’s prosecution costs.
(b) (1) (A) For purposes of this section, a “well stimulation violation” is a violation of Article 3 (commencing with Section 3150) or the regulations implementing that article.
(B) The administrative civil penalty amount for a well stimulation violation shall be not less than ten thousand dollars ($10,000) per day per violation and not more than twenty-five thousand dollars ($25,000) per day per violation.
(2) (A) For purposes of this section, a “major violation” is a violation that is not a well stimulation violation and that is one or more of the following:
(i) A violation that results in harm to persons or property or presents a significant threat to human health or the environment.
(ii) A knowing, willful, or intentional violation.
(iii) A chronic violation or one that is committed by a recalcitrant violator. In determining whether a violation is chronic or a violator is recalcitrant, the supervisor shall consider whether there is evidence indicating that the violator has engaged in a pattern of neglect or disregard with respect to applicable requirements.
(B) The administrative civil penalty amount for a major violation shall be not less than two thousand five hundred dollars ($2,500) per violation and not more than twenty-five thousand dollars ($25,000) per violation.
(3) (A) For purposes of this section, a “minor violation” is a violation that is neither a well stimulation violation nor a major violation.
(B) The administrative civil penalty amount for a minor violation shall be not more than two thousand five hundred dollars ($2,500) per violation.
(4) At the supervisor’s discretion, each day a major or minor violation continues or is not cured may be treated as a separate violation.
(c) An order of the supervisor imposing an administrative civil penalty shall be reviewable pursuant to Article 6 (commencing with Section 3350). When the order of the supervisor has become final and the penalty has not been paid, the supervisor may apply to the appropriate superior court for an order directing payment of the administrative civil penalty. The supervisor may also seek from the court an order directing that production from the well or use of the production facility that is the subject of the administrative civil penalty order be discontinued until the violation has been remedied to the satisfaction of the supervisor and the administrative civil penalty has been paid.
(d) (1) The supervisor may allow a supplemental environmental project in lieu of a portion of the administrative civil penalty amount. The supplemental environmental project may not be more than 50 percent of the total administrative civil penalty amount. Any amount collected under this section that is not allocated for a supplemental environmental project shall be deposited in the Oil and Gas Environmental Remediation Account, established pursuant to Section 3261.
(2) For purposes of this section, “supplemental environmental project” means an environmentally beneficial project that a person, subject to an order of the supervisor imposing an administrative civil penalty, voluntarily agrees to undertake in settlement of the action and to offset a portion of an administrative civil penalty.
(e) (1) The supervisor may establish regulations prescribing specific penalty amounts for specific violations.
(2) These regulations shall include a determination of whether the violation in question is a minor violation, a major violation, or a well stimulation violation.
(3) Penalty amounts prescribed in regulation shall not exceed the maximum civil penalty amount for the type of violation and shall not be less than the minimum penalty amount for the type of violation.
(4) When prescribing an administrative civil penalty amount by regulation, the supervisor shall consider the potential harm caused by the violation, the potential benefit to the violator resulting from the violation, the supervisor’s potential prosecution costs, and other relevant circumstances associated with enforcement of the requirement. When imposing an administrative civil penalty amount prescribed in regulation, the supervisor is not required to consider circumstances listed in subdivision (a).
(f) The supervisor shall adjust the maximum penalties specified in this section for inflation based on the California Consumer Price Index. The adjustment shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(Amended by Stats. 2023, Ch. 337, Sec. 7. (AB 631) Effective January 1, 2024.)