2023 California Code › Public Resources Code - PRC › DIVISION 3 - OIL AND GAS › CHAPTER 1 - Oil and Gas Conservation › ARTICLE 4 - Regulation of Operations › Section 3236.2.

3236.2. (a) (1) Upon referral by the supervisor, a person who violates this chapter or a regulation implementing this chapter is subject to a civil penalty of not more than fifty thousand dollars ($50,000) for each separate violation or, for continuing violations, for each day that violation continues, except as otherwise provided in paragraph (2). An act of God or a criminal act of vandalism beyond the reasonable control of the operator is not a violation.
(2) A civil penalty under this subdivision shall not be more than twenty-five thousand dollars ($25,000) for each separate violation, or, for continuing violations, for each day that violation continues, if the person accused of the violation alleges by affirmative defense and establishes by a preponderance of the evidence both of the following:
(A) The violation did not result in harm to, and did not present a significant threat to, human health, property, or the environment.
(B) The violation is not a chronic violation, and the operator is not a recalcitrant violator. In determining whether a violation is chronic or a violator is recalcitrant, consideration shall be given to whether there is evidence indicating that the violator has engaged in a pattern of neglect or disregard with respect to applicable requirements.
(b) Upon referral by the supervisor, a person subject to an order issued pursuant to Section 3224.5 who does not comply with that order shall be subject to a civil penalty of not more than twenty-five thousand dollars ($25,000).
(c) Upon referral by the supervisor, a person subject to an order issued pursuant to this chapter who does not comply with that order shall be subject to a civil penalty of not more than fifty thousand dollars ($50,000) for each day of noncompliance.
(d) Upon referral by the supervisor, a person who intentionally or negligently makes a false statement or representation in an application, record, report, permit, notice to comply, or other document filed, maintained, or used for purposes of compliance with this chapter, shall be liable for a civil penalty not to exceed seventy thousand dollars ($70,000) for each separate violation or, for continuing violations, for each day that violation continues.
(e) Except as provided in subdivision (b), (c), or (d), a person who intentionally or negligently violates a provision of this chapter or a permit, rule, regulation, standard, or requirement issued or promulgated pursuant to this chapter shall be liable for a civil penalty not to exceed seventy thousand dollars ($70,000) for each violation of a separate provision or, for continuing violations, for each day that violation continues.
(f) The civil penalty imposed for each separate violation pursuant to this section is separate, and in addition to any other civil penalty imposed for a separate violation pursuant to this section or any other law.
(g) In determining the amount of a civil penalty imposed pursuant to this section, the court shall take into consideration all relevant circumstances, including, but not limited to, the extent of harm caused by the violation, the persistence of the violation, the pervasiveness of the violation, the number of prior violations by the same violator, the degree of culpability of the violation, any economic benefit to the violator resulting from the violation, the violator’s ability to pay the civil penalty amount, as determined based on information publicly available to the division, the prosecution costs associated with enforcement of this section, and any other matters the court determines justice may require.
(h) In determining the amount of a civil penalty imposed pursuant to subdivision (b), the court shall consider all relevant circumstances, including, but not limited to, the economic assets of the operator, owner, or property owner and whether the operator, owner, or property owner has acted in good faith.
(i) In addition to any other penalty set forth in this section, a person found liable for a civil penalty under subdivision (a), (c), (d), or (e) shall also pay a penalty in an amount equal to the cost to plug and abandon any well associated with the violation. The cost to plug and abandon any well associated with the violation is to be determined by the supervisor using any reasonable method, including, but not limited to, consideration of the factors listed in subdivision (b) of Section 3205.3 or the cost estimation criteria described in subdivision (b) of Section 3205.7, or consultation with a contractor to obtain an estimate of the cost to plug and abandon the well.
(j) Any action commenced pursuant to this section may be brought pursuant to this chapter by a public prosecutor, the Attorney General, or an attorney for the division or the department who shall bring the action in the name of the people of the State of California. Any actions relating to the same violation may be joined or consolidated.
(k) Fifty percent of any penalty collected under this section, other than penalties collected under subdivision (i), shall be paid to the agency or office prosecuting the action.
(l) Fifty percent of any penalty collected under this section, other than penalties collected under subdivision (i), shall be distributed to the division for deposit in the Oil and Gas Environmental Remediation Account established pursuant to Section 3261.
(m) Any penalty collected under subdivision (i) shall be distributed to the division for deposit in the Oil and Gas Environmental Remediation Account established pursuant to Section 3261.
(n) A person is not subject to a civil penalty imposed pursuant to this section and to an administrative civil penalty imposed pursuant to Section 3236.5 for the same act or failure to act.
(Added by Stats. 2023, Ch. 337, Sec. 5. (AB 631) Effective January 1, 2024.)