Part 1 — Administrative Procedures

• A. This Chapter shall be known as the "Oil and Gas Ordinance of the City of Carson."

• B. It is the purpose of this Chapter, amongst other things, to protect the health, safety, environmental quality and general welfare of the City by the reasonable regulation of oil and gas facilities, equipment, and operations, including but not limited to: exploration; production; storage; processing; transportation; disposal; plugging abandonment and reabandonment of wells; operations and equipment accessory and incidental thereto and development and redevelopment of oil and gas sites. It is further the intent of the City that oil and gas operations shall be permitted within this City (except where expressly prohibited herein), subject to the application of this Chapter and all other applicable laws, regulations and requirements.

• C. It is not the intent of this Chapter to regulate public utility operations for the storage or distribution of natural gas under the jurisdiction of the California Public Utilities Commission (CPUC). Any well or site related operations, however, shall be subject to this Chapter.

• (Ord. 16-1590, Exh. B (§ 1))

• A. The regulations in this Chapter shall apply, insofar as specifically provided herein, to oil and gas production and related sites and facilities, equipment, structures, or appurtenances including, but not limited to:

  1. Drilling and abandonment operations of any new or existing well or reentry of a previously abandoned well for the production of oil and gas.

  2. Sites, infrastructure, structures, equipment, and/or facilities necessary and incidental to processing of oil, produced water, gas, and condensate obtained from an oil and gas field, zone, subsurface lease or area.

  3. Injection wells and incidental equipment necessary for enhanced oil recovery or disposal of produced water.

  4. Equipment and facilities necessary for enhanced oil recovery including water flooding, steam flooding, air injection, carbon dioxide injection, or introduction of polymers, or other techniques.

  5. Pipelines located within an oil and gas lease area that are necessary for oil and gas production operations.

  6. Pipelines that transport oil or gas to another location for sale or transfer to a third party.

  7. Storage tanks and equipment necessary or incidental to gathering, separation or treatment of oil, water, and gas, and/or temporary storage of separated fluids and gases, and transfer of the produced hydrocarbons to pipelines or tanker trucks.

  8. Oil spill containment and recovery equipment, and facilities including offices, storage spaces, and vehicles for the storage of floating oil and water separators, pumps, generators, hosing, assorted absorbent materials, steam cleaners, storage tanks, and other land and wildlife cleanup and recovery equipment.

• B. All portions of this Chapter are applicable to new or existing oil and gas sites and operators if they have or are required to obtain a CUP. For oil and gas sites lawfully existing at the time of adoption of this Chapter which do not have or are not required to obtain a new CUP, only the following sections are applicable:

CMC § 9506 , Well Drilling Permit.

CMC § 9507.4(B), Modifications and Extensions.

CMC § 9510 , Facility Closure, Site Abandonment, and Site Restoration Procedures.

CMC § 9521(C), Setback Requirements.

CMC § 9522 , Site Access and Operations.

CMC § 9523 , Lighting.

CMC § 9526 , Signage.

CMC § 9527 , Steaming.

CMC § 9530 , Safety Assurances and Emergency/Hazard Management (except CMC § 9530.4 ).

CMC § 9531 , Environmental Resource Management (except CMC § 9531.3 and § 9531.5.1 ).

CMC § 9532 , Standards for Wells (except CMC § 9532(G)).

CMC § 9535 , Operational Prohibitions.

CMC § 9536 , Prohibited Uses.

All decisions related to this subsection (B) are appealable as per CMC § 9505 . Violations of these sections shall also be subject to enforcement mechanisms contained in this Chapter and this Code.

To the extent this Chapter applies to existing oil and gas sites, it is not intended to apply in such manner as to interfere with any vested rights that have accrued to property owners.

• C. The provisions of this Chapter which impose any limitation, prohibition, or requirement, or confer a right on the basis of the distance between a well or any other use or improvement and another

zone classification, use or improvement, shall be applied solely with reference to zone classification uses and improvements within the City. (Ord. 16-1590, Exh. B (§ 1))

Table 1-1 below specifies what City zoning designations allow for oil and gas sites and, if allowable, what type of authorization is required for the use.

• In addition to the zones listed in the table below, oil and gas sites shall be permitted in any specific plan area where such uses are specifically allowed in accordance with the requirements of this Chapter.

** CUP indicates a requirement for a Conditional Use Permit, while DA indicates a development agreement.

Notes:

1. Development agreement provisions apply as specified in CMC § 9508 .

(Ord. 16-1590, Exh. B (§ 1))

Unless the context otherwise requires, the definitions hereinafter set forth shall govern the construction of this Chapter.

"Abandoned well"

means a nonproducing well DOGGR so designates after it has been demonstrated that all steps have been taken to protect underground or surface water suitable for irrigation or other domestic uses from the infiltration or addition of any detrimental substance, and to prevent the escape of all fluids to the surface.

"Acid fracturing"

is an acid well stimulation treatment that, in whole or in part, includes the pressurized injection of acid into an underground geologic formation in order to fracture the formation, thereby causing or enhancing the production of oil or gas from a well.

"Acid matrix stimulation treatment"

is an acid well stimulation treatment conducted at pressures lower than the applied pressure necessary to fracture the underground geologic formation.

"Acid volume threshold"

means a volume per treated foot of well stimulation treatment, calculated as per DOGGR consistent with DOGGR Statutes and Regulations.

"Acid well stimulation treatment" or "acidizing"

is defined in the DOGGR Statutes and Regulations and means a well stimulation treatment that uses, in whole or in part, the application of one (1) 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.

"Air injection"

is an enhanced oil recovery process utilizing compressed air that is injected into a reservoir. Oxygen in the gas reacts exothermically with some of the oil, producing highly mobile flue gas. The flue gas advances ahead of the reaction front and achieves an efficient displacement of the in situ oil.

"API"

refers to the American Petroleum Institute.

"ASTM"

shall mean the American Society of Testing and Materials.

"City Manager"

is the City's administrative official, and the City Manager's designated assistants, inspectors and deputies having the responsibility for the enforcement of this Chapter. The City Manager is authorized to consult experts qualified in fields related to the subject matter of this Chapter and codes adopted by reference herein as necessary to assist in carrying out duties. The City Manager may also appoint such number of officers, inspectors, assistants and other employees and/or appoint a Petroleum Administrator to assist in carrying out duties. If the City Manager determines it is necessary based on public health, safety or welfare, he or she may require any information as deemed reasonably necessary for a CUP or an abandonment application.

"Cyclic steaming" or "steaming"

shall mean a production method with alternating steam flooding and subsequent oil production from the same well. Consistent with Section 3157(b) of Division 3 of the California Public Resources Code, cyclic steaming is not considered to be a well stimulation treatment.

"DOGGR"

is the Division of Oil, Gas and Geothermal Resources which is part of the Department of Conservation of the State of California. DOGGR oversees the drilling, operation, maintenance, and plugging and abandonment of oil, natural gas, and geothermal wells.

"DOGGR Statutes and Regulations"

are the California statutes and regulations related to or governing DOGGR, at Division 3 of the California Public Resources Code, Oil and Gas, and the California Code of Regulations , Title 14, Division 2.

"Drill" or "drilling"

is to bore a hole in the earth, usually to find and remove subsurface formation fluids such as oil and gas. Drilling, under this Chapter, includes redrilling and reworking of wells.

"Enforcement action"

is any administrative, injunctive, or legal action (either civil or criminal), to enforce, cite or prosecute a violation or efforts to abate or correct a violation (or dangerous or hazardous situation caused by a violation), including investigation, research, legal action, physical abatement, law enforcement and other necessary acts.

"Enhanced oil recovery"

is the injection of steam, gas, or other chemical compounds into hydrocarbon reservoirs to stimulate the production of usable oil beyond what is possible through natural pressure and pumping at the wellhead.

"EPA"

refers to the U.S. Environmental Protection Agency.

"Existing,"

as applied to oil and gas sites, wells or other facilities and operations, refers to and includes all that were lawfully in existence at the effective date of the ordinance codified in this Chapter.

"Exploratory well"

is defined in the DOGGR Statutes and Regulations and means any well drilled to extend a field or explore a new, potentially productive reservoir.

"Facilities"

include tanks, compressors, pumps, vessels, and other equipment or structures pertinent to oil field operations located at an oil and gas site.

"Gas"

means any natural hydrocarbon gas coming from the earth.

"Gas plant"

means processing equipment for produced gas to separate, recover, and make useful natural gas liquids (condensate, natural gasoline (e.g., pentenes), and liquefied petroleum gas, etc.), to separate, remove, and dispose of other nonhydrocarbon substances, such as water, sulfur, carbon dioxide, ammonia, etc., and to produce utility-grade gas suitable for delivery and sale.

"High risk operation"

means an oil or gas production, processing or storage facility which: (a) has been in violation of any applicable section of this Chapter for more than thirty (30) consecutive days and resulted in the issuance of a notice of determination of fines pursuant to CMC § 9514 during the preceding twelve (12) months; or (b) has had three (3) separate unauthorized releases of oil, produced water and/or other hazardous materials of a quantity not less than fifteen (15) barrels (six hundred thirty (630) gallons) other than within secondary containment for each incident during the preceding twelve (12) months.

"Hydraulic fracturing"

is defined in the DOGGR Statutes and Regulations and means a well stimulation treatment that, in whole or in part, includes the pressurized injection of hydraulic fracturing fluid 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 Chapter, the production of oil or gas from a well.

"Idle well"

is defined in the DOGGR Statutes and Regulations and is any well that has not produced oil or natural gas or has not been used for injection for six (6) consecutive months of continuous operation during the last five (5) or more years. An idle well does not include an active observation well.

"Natural gas liquids"

(NGLs) include propane, butane, pentane, hexane and heptane, but not methane and ethane, since these hydrocarbons need refrigeration to be liquefied.

"New development"

means any of the following: (1) development of new buildings, structures or wells for oil and gas operations on a site that has either not previously been used for such activities, or where the previous use was abandoned, or a CUP expired or was revoked; (2) the expansion by three (3) or more wells at an existing site used for oil and gas operations and which conforms to setback requirements; (3) the placement or erection of tanks for holding produced substances or substances intended for subsurface injection in connection with oil and gas operations exceeding by twenty-five (25) percent or more the capacity of existing tanks as of the effective date of the ordinance codified in this Chapter. New development does not include the like-kind replacement of facilities required for legally operating oil and gas operations that are damaged, failed, are at risk of failure, or are at the end of their useful life at an existing site. New development does not include workovers or other maintenance for legally operating oil and gas operations, including replacement-in-kind, or redrills of existing active or idle wells. Redrills of abandoned wells are considered new wells under this Chapter.

"New well"

is defined by the DOGGR Statutes and Regulations as the drilling of a well that requires the submission of the DOGGR Form OG105, Notice of Intention to Drill New Well – Oil and Gas, as may be updated or amended. For the purposes of this Chapter, the redrilling of an abandoned well is considered a new well.

"NFPA"

refers to the National Fire Protection Agency.

"Oil"

is a simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline, kerosene, diesel fuel, and various other products.

"Oil and gas operations"

are all activities in connection with the exploration, drilling for and the production of oil and gas and other hydrocarbons, together with all incidental equipment and appurtenances thereto.

"Oil and gas site" or "site"

is an oil drilling site and all associated operations and equipment attendant to oil and gas production or injection operations including, but not limited to, pipelines, tanks, exploratory facilities (including exploratory wells), flowlines, headers, gathering lines, wellheads, heater treaters, pumps, valves, compressors, injection equipment, drilling facilities, and production facilities.

"Operator"

means the person, who by virtue of ownership or under the authority of a lease or any other agreement, has the right to drill, operate, maintain, or control a well or production facility.

"OSHA"

refers to the California Occupational Safety and Health Administration.

"Person"

encompasses any individual, firm, association, corporation, joint venture or any other group or combination acting as an entity.

"Petroleum"

is a substance occurring naturally in the earth in a solid, liquid, or gaseous state and composed mainly of mixtures of chemical compounds of carbon and hydrogen, with or without other nonmetallic elements such as sulfur, oxygen, and nitrogen.

"Petroleum Administrator"

(PA) is the City's administrative official having the responsibility for the enforcement of this Chapter. To carry out duties, the Petroleum Administrator may use designated assistants, inspectors and deputies subject to approval of the City Manager. The Petroleum Administrator is

authorized and directed to enforce the provisions of this Chapter and the codes adopted by reference herein. The Petroleum Administrator shall operate under the direction of the City Manager.

The Petroleum Administrator shall have the primary responsibility for enforcing the provisions of this Chapter unless otherwise specified. The Petroleum Administrator is authorized to consult experts qualified in fields related to the subject matter of this Chapter and codes adopted by reference herein as necessary to assist the Petroleum Administrator in carrying out duties. The Petroleum Administrator may also appoint such number of officers, inspectors, assistants and other employees for the petroleum unit as shall be authorized by the City Manager.

strator is authorized to consult experts qualified in fields related to the subject matter of this Chapter and codes adopted by reference herein as necessary to assist the Petroleum Administrator in carrying out duties. The Petroleum Administrator may also appoint such number of officers, inspectors, assistants and other employees for the petroleum unit as shall be authorized by the City Manager.

The Petroleum Administrator must be a licensed engineer such as petroleum engineer, mechanical engineer, or civil engineer. This Petroleum Administrator must possess an understanding of oil and gas production, facilities, operations, and ideally development. Past work experience should include production engineering, project management, facility or operational experience with the oil and gas industry. In alternative, the Petroleum Administrator may possess equivalent licenses and qualifications in the areas of environmental and earth sciences, toxicology and human health risk assessment. The Petroleum Administrator must be able to demonstrate relevant and current knowledge of oil field and oil production technology and practices.

"Pipelines,"

for the purposes of this Chapter, shall mean all flow lines associated with wells located within the City of Carson used for the transportation of petroleum or petroleum by-products or of materials used in the production of petroleum.

"Produced water"

is a term used to describe the water that is produced along with crude oil and gas.

"PSM"

refers to process safety management.

"Redevelopment,"

for the purposes of this Chapter, is the development of all or a portion of a current or former oil or gas site to another authorized use other than petroleum operations.

"Redrilling"

is defined in the DOGGR Statutes and Regulations and is the deepening of an existing well or the creation of a partial new well bore including plugging of the original bore and casings and requires the submission of DOGGR Form OG107, Notice of Intention to Rework/Redrill Well, as may be updated or amended.

"Reentry"

is the process of cleaning a plugged and abandoned well by drilling, jetting, or other method.

"Refining"

shall mean any industrial process facility where crude oil is processed and refined into more useful products and sold to others without further treatment or processing.

"Regional Water Quality Control Board"

shall mean the Los Angeles Regional Water Quality Control Board.

"Rework"

is defined in the DOGGR Statutes and Regulations and means any operation subsequent to initial drilling that involves redrilling, plugging, or permanently altering in any manner the casing of a well or its function and requires the filing of a notice of intent to rework/redrill a well with DOGGR. Altering a casing includes such actions as a change in well type, new or existing perforations in casing, running or removing of cement liners, placing or drilling out any plug (cement, sand, mechanical), running a wireline tool that has the ability to drill through a cased

nner the casing of a well or its function and requires the filing of a notice of intent to rework/redrill a well with DOGGR. Altering a casing includes such actions as a change in well type, new or existing perforations in casing, running or removing of cement liners, placing or drilling out any plug (cement, sand, mechanical), running a wireline tool that has the ability to drill through a cased

borehole, or any other operation which permanently alters the casing of a well. For the purposes of this Chapter, "rework" includes a well abandonment.

"Secondary containment"

means containment which is external to and separate from the primary containment, typically constructed of masonry block or poured concrete walls, which incorporates an impervious barrier, including but not limited to dikes, berms, or retaining walls sufficiently impervious to contain oil.

"Secondary recovery"

means an improved recovery method of any type applied to a reservoir to produce oil not recoverable by primary recovery methods and would include water flooding, steam flooding and gas injection.

"Shutdown" or "shutdown order"

is an order by the Petroleum Administrator, California State Fire Marshal, or DOGGR official to restrict or prohibit certain (or all) functions or operations at a facility or by an operator pursuant to authority of this Chapter.

"SPCC"

refers to spill prevention, control, and countermeasures.

"Steam flooding"

is a thermal oil and gas recovery method in which steam is injected into a reservoir through injection wells and driven toward production wells. The steam reduces the viscosity of crude oil, causing it to flow more freely. The heat vaporizes lighter hydrocarbons; as they move ahead of the steam, they cool and condense into liquids that dissolve and displace crude oil. The steam provides additional gas drive. This method is also used to recover viscous oils. The technique is also called continuous steam injection or steam drive. Consistent with Section 3157(b) of Division 3 of the California Public Resources Code, steam flooding is not considered to be a well stimulation treatment.

"Structure"

means anything constructed or erected which requires location on the ground or is attached to something having a location on the ground, except outdoor areas such as walks, paved areas, tennis courts, and similar open recreation areas. This definition includes buildings, but does not include wells.

"Supervisor"

means the DOGGR Supervisor.

"Toxic air contaminants"

means an air pollutant which may cause or contribute to an increase in mortality or in serious illness, or which may pose a present or potential hazard to human health as defined in Section 39655 of the California Health and Safety Code, as may be amended from time to time. California Code of Regulations, Title 17, Section 93000 , lists substances defined as toxic air contaminants.

"USEPA"

refers to the United States Environmental Protection Agency.

"Waterflooding"

is a method of secondary recovery in which water is injected into the reservoir formation to displace residual oil. The water from injection wells physically sweeps the displaced oil to adjacent production wells. Consistent with Section 3157(b) of Division 3 of the California Public Resources Code, waterflooding is not considered to be a well stimulation treatment.

"Well"

is defined in the DOGGR Statutes and Regulations and means any oil or gas well or well for the discovery of oil or gas; any well on lands producing or reasonably presumed to contain oil or gas; any well drilled for the purpose of injecting fluids or gas for stimulating oil or gas recovery, repressuring or pressure maintenance of oil or gas reservoirs, or disposing of waste fluids from

an oil or gas field; any well used to inject or withdraw gas from an underground storage facility; or any well drilled within or adjacent to an oil or gas pool for the purpose of obtaining water to be used in production stimulation or repressuring operations.

"Well stimulation treatment"

is defined in the DOGGR Statutes and Regulations and means a treatment of a well designed to enhance oil and gas production or recovery by increasing the permeability of the formation. Well stimulation is a short term and noncontinual process for the purposes of opening and stimulating channels for the flow of hydrocarbons. Examples of well stimulation treatments include hydraulic fracturing, acid fracturing and acid matrix stimulation. Except for operations that meet the definition of "underground injection project" under California Code of Regulations, Title 14, Section 1761(a)(2) , a treatment at pressures exceeding the formation fracture gradient shall be presumed to be a well stimulation treatment unless it is demonstrated to DOGGR's satisfaction that the treatment, as designed, does not enhance oil and gas production or recovery by increasing the permeability of the formation. Except for operations that meet the definition of "underground injection project" under California Code of Regulations, Title 14, Section 1761(a) (2) , a treatment that involves emplacing acid in a well and that uses a volume of fluid equal to or greater than the acid volume threshold for the operation shall be presumed to be a well stimulation treatment unless it is demonstrated to DOGGR's satisfaction that the treatment, as designed, does not enhance oil and gas production or recovery by increasing the permeability of the formation. Well stimulation treatment does not include steaming, waterflooding or cyclic steaming and does not include routine well cleanout work; routine well maintenance; routine treatment for the purpose of removal of formation damage due to drilling; bottom hole pressure surveys; routine activities that do not affect the integrity of the well or the formation; the removal of scale or precipitate from the perforations, casing, or tubing; a gravel pack treatment that does not exceed the formation fracture gradient; or a treatment that involves emplacing acid in a well and that uses a volume of fluid that is less than the acid volume threshold for the operation and is below the formation fracture gradient.

"Workover"

is the process of major maintenance or remedial treatments on an oil or gas well without changing the physical design of the well. Workovers include all operations that do not involve the initial drilling or reworking of wells and is regulated by DOGGR but without requirements for notices of intent or permits.

(Ord. 16-1590, Exh. B (§ 1))

This Chapter, insofar as it regulates oil and gas operations also regulated by the California Department of Conservation, Division of Oil, Gas, and Geothermal Resources (DOGGR), is intended to supplement such State regulations and to be in furtherance and support thereof. Some definitions in CMC § 9503 are based on DOGGR Statutes and Regulations and the intent of this Chapter is to utilize those definitions, as they may be amended from time to time by the California Legislature or by DOGGR, as applicable. In all cases where there is conflict with State laws or regulations, such State laws or regulations shall prevail over any contradictory provisions, or contradictory prohibitions or requirements, made pursuant to this Chapter. Additionally, the approving body, whether the City Manager, Planning Commission or City Council, may grant an exception or modification to the requirements of this Chapter to the minimal extent necessary to prevent a compensable taking. Such exception or modification shall be as consistent with the intent and purpose of this Chapter as possible given the specific factual circumstances of the particular project. (Ord. 16-1590, Exh. B (§ 1))

Unless otherwise specified in this Chapter, any interested person may appeal a discretionary decision of the Petroleum Administrator consistent with procedure set forth in CMC § 9173.4 , except that references to "Director" shall be replaced with "Petroleum Administrator," and the Planning Commission's decision is final with no right of appeal to the City Council, unless otherwise specified in this Section. Examples of appeals to the City Council that are discretionary, but allowed, include conditional use permits, CMC § 9507 and § 9537(H)(2); periodic review, CMC § 9509 ; ordinance applicability to existing operations, CMC § 9501(B); and facility closures (including wells and pipelines), CMC § 9510 . CMC § 9173.5 shall govern the statute of limitations. Mandatory requirements of this Chapter are not subject to appeal.

Except as noted herein, CMC § 9508.2 shall govern the process of recommendations by the Planning Commission to the City Council. Examples of matters that go to the Council for final decision after recommendation by the Planning Commission are development agreements (CMC § 9508 ) and permits related to well stimulation (CMC § 9536 ). The procedures for processing and review of development agreements is set forth in CMC § 9508.2 . All other types of decisions requiring review by the Planning Commission as to a recommendation shall follow the process set forth in CMC § 9508.2(A) through (D), except that (i) references to "development agreement" or "agreement" shall be read as "permit," "plan" or "application" as appropriate; and (ii) notice shall be provided consistent with CMC § 9173.22 , except that the City Manager, not the Director, shall be responsible for providing notice. In no event shall a hearing be required to set for the Planning Commission until a recommendation on environmental compliance may also be considered if required by the California Environmental Quality Act. (Ord. 16-1590, Exh. B (§ 1))

Prior to commencing drilling or reworking of any oil and gas well, the operator must receive a well drilling or rework permit from DOGGR. Well permits from DOGGR shall be provided to the Petroleum Administrator prior to commencement of drilling or reworking activities. (Ord. 16-1590, Exh. B (§ 1))

• A. New development to which this Chapter applies (see CMC § 9501 ) shall be required to receive a conditional use permit (CUP) from the City Planning Commission in order to receive authorization for, and proceed with, the construction and operation of new development. No permits shall be considered or approved without such permits being consistent with provisions of the CUP.

• B. All procedures for CUPs to which this Chapter applies shall be consistent with the Part 7 of Chapter 1 of Article 9 as well as with the following additional requirements.

• (Ord. 16-1590, Exh. B (§ 1))

Projects appropriate for development agreements are subject to the requirements of this Section, which establishes procedures for adoption. The procedures for development agreements will comply with Article 2.5 of Chapter 4 of Division 1 of the California Government Code and the following additional requirements.

(Ord. 16-1590, Exh. B (§ 1))

The City may choose to conduct a comprehensive review of any oil or gas drilling permit, CUP or DA every five (5) years from the date of approval to determine if the project and the associated CUP or DA are adequately mitigating significant environmental impacts caused by the drilling and operations. Nothing in this Section shall limit the City's authority to conduct a review at more frequent intervals, engage in mitigation monitoring as required by CEQA, or otherwise act as directed or authorized by law.

• A. Within thirty (30) days from the request by the City, the operator shall deposit to the City the funds necessary for the City to retain a third-party entity to prepare a periodic review, which includes all records, drawings, specifications, permits from State agencies, and analysis of the effectiveness of this Chapter, enforcement activity, and any other issues associated with potentially adverse effects of and complaints about oil and gas site operations. A periodic review will be funded by the operator at most once every five (5) year period following approval. If the periodic review identifies significant deficiencies in an oil and gas drilling permit, a CUP or DA that are resulting in unmitigated adverse impacts then the Petroleum Administrator may identify these deficiencies and bring forward recommendations of corrective actions to the Planning Commission for consideration and prospective amendments of oil and gas drilling permits and CUPs, and to the Planning Commission for recommendation to the City Council for consideration and prospective amendments of DAs.

• B. A permit, CUP, or DA may also be reviewed by the Petroleum Administrator at any time, if more than three (3) violations occur within a twelve (12) month period and the Petroleum Administrator determines that resolution of the violations may be addressed by a new permit and/or an amendment to the CUP or DA. The Petroleum Administrator shall make a recommendation of amendments to the Planning Commission for CUPs and permits, and the Planning Commission and City Council for DAs, as deemed necessary. Nothing in this Section shall preclude the City from taking any other enforcement action authorized by this Code.

on of the violations may be addressed by a new permit and/or an amendment to the CUP or DA. The Petroleum Administrator shall make a recommendation of amendments to the Planning Commission for CUPs and permits, and the Planning Commission and City Council for DAs, as deemed necessary. Nothing in this Section shall preclude the City from taking any other enforcement action authorized by this Code.

• C. Nothing in this Section shall limit the requirements of an operator with a DA to demonstrate to the Petroleum Administrator good faith compliance with the terms of the agreement at least every twelve (12) months as required by Section 65865.1 of the California Government Code. If as a result of that review the Petroleum Administrator believes there is substantial evidence that the operator has not complied in good faith with the terms or conditions of the agreement, the Petroleum Administrator shall present the matter to the Commission for a recommendation to the City Council. The Commission shall set the matter for public hearing within forty (40) days of receipt of the matter from the Petroleum Administrator. If the Commission fails to act upon such request within a reasonable time, the Council may, by written notice, require the Commission to render its recommendation within forty (40) days. Failure to so report to the Council within the above time period shall be deemed to be a recommendation against modification or termination. After the Commission has rendered its recommendation, the matter shall be set for hearing before the City Council, who may terminate or modify the agreement if it finds and determines,

on the basis of substantial evidence, that the operator or successor in interest has not complied in good faith with the terms and conditions of the DA.

(Ord. 16-1590, Exh. B (§ 1))

The following provisions and procedures shall be implemented at the end of life of an oil and gas site, subject to a CUP, and govern the site (including well) facility closure and site restoration procedures.

(Ord. 16-1590, Exh. B (§ 1))

• A. Each operator shall submit copies of notices provided to or received from DOGGR, to the Petroleum Administrator, within ten (10) business days of transmission or receipt of such notices, as applicable. These shall include: designation of agents, notice of intent to drill a new well, division approvals (permit to conduct well operations, notice and permit to drill, permit to rework/redrill well (p-report), enhanced recovery project approval, water disposal project approval, commercial water disposal approval), notice of intention to rework/redrill well, notice of intention to abandon/reabandon well, supplementary notices, report of property transfer forms and any inspection reports or notices of violation, as these notices may be updated or amended. All other DOGGR notices or other DOGGR communications shall be submitted at the discretion of the Petroleum Administrator.

• B. The operator of (or any person who acquires) any well, property, or equipment appurtenant thereto, whether by purchase, transfer, assignment, conveyance, exchange or otherwise, shall

each notify the Petroleum Administrator within ten (10) business days of the transaction closing date. The notice shall contain the following:

1. The names and addresses of the person from whom and to whom the well(s) and property changed.

2. The name and location of the well(s) and property.

3. The date of acquisition.

4. The date possession changed.

5. A description of the properties and equipment transferred.

6. The new operator's agent or person designated for service of notice and his address.

• C. The operator of any well shall notify the Petroleum Administrator, in writing, of the idling of any well. The operator shall notify the Petroleum Administrator in writing upon the resumption of operations of an idle well giving the date thereof.

• D. The operator shall report any violations of State or Federal laws that occur on an oil and gas site to the Petroleum Administrator within thirty (30) days of their date of documentation by a State or Federal agency.

• (Ord. 16-1590, Exh. B (§ 1))

All complaints related to activities regulated by this Chapter received by the operator shall be reported within one (1) business day to the Petroleum Administrator. If the complaint is received after normal business hours, it shall be reported to the Petroleum Administrator the next business day. In addition, the operator shall maintain a written log of all complaints and provide that log to the Petroleum Administrator on a quarterly basis.

(Ord. 16-1590, Exh. B (§ 1))

In addition to any administrative remedies or enforcement provided in this Code, the City may seek and obtain temporary, preliminary, and permanent injunctive relief to prohibit violation or mandate compliance with this Code. All remedies and enforcement procedures set forth herein shall be in addition to any other legal or equitable remedies provided by law. (Ord. 16-1590, Exh. B (§ 1))

• A. The operator shall also be subject to a fine for violation of any requirement of a CUP or this Chapter as determined by the Petroleum Administrator, subject to the following:

  1. Depending on the specific type and degree of the violation, the operator in violation may be penalized at a rate of up to $10,000 per day, per violation, until it is cured, but in no event in an amount beyond that authorized by State law. The Petroleum Administrator will develop a violation fine schedule for Council approval to specifically identify the fines associated with oil or gas site violations. This violation fine schedule may also include nuisance violations.

  2. In the event of a violation of any of the City's permitting actions, a written notice of violation and the associated fine determination will be sent to the operator by the Petroleum

Administrator. The operator shall deposit the sum of $5,000 per well, up to $100,000, in an interest-bearing trust fund with the City within thirty (30) days of the date of the second violation notice sent to the operator by the Petroleum Administrator, to establish a draw down account. If the noted violation is not corrected within thirty (30) calendar days to the satisfaction of the Petroleum Administrator, or if steps satisfactory to the Petroleum Administrator have not been initiated during that period to effect a cure or to seek modification of the condition, the fine amount cited in the written notice will be deducted from the account. The operator shall reimburse the City for any additional reasonable costs above the amount of the original deposit.

3. The operator has a right of appeal to the Petroleum Administrator or Commission within fifteen (15) days of the written notice or contested determination of compliance. Decisions of the Petroleum Administrator not appealed within fifteen (15) days become final. If the operator appeals to the Petroleum Administrator or the Commission such that the decision is ultimately reversed and the operator is specifically designated the "prevailing party" by the Petroleum Administrator or Commission, then the City shall refund the operator the deposit related to the challenged determination.

• B. Nothing in this Section or Chapter shall limit the City's ability to pursue other enforcement procedures, including CUP revocation proceedings, actions to enforce a DA, or other legal or equitable remedies provided by this Code or available under the law. Revocations of a permit or CUP may be done pursuant to CMC § 9172.28 , except that the Commission may choose to amend rather than revoke, and the references to "Director" shall be replaced with "Petroleum Administrator."

• (Ord. 16-1590, Exh. B (§ 1))

Any violation of this Chapter is hereby declared to be a public nuisance for the purposes of CMC § 5702 , and may be abated pursuant to the procedures set forth in Chapter 7 of Article 5, Property Maintenance, except that references to "Director" shall be replaced with "City Manager or designee." The procedures for abatement shall not be exclusive, and shall not in any manner limit or restrict the City from otherwise enforcing this Chapter or abating public nuisances in any other manner as provided by law, including the institution of legal action by the City Attorney to abate the public nuisance at the request of the City Manager.

(Ord. 16-1590, Exh. B (§ 1))

• A. Environmental Compliance Coordinator(s). The City may hire Environmental Compliance Coordinators as needed to oversee the monitoring and condition compliance requirements of the City's permitting actions subject to regulation under this Chapter, the costs of which shall be reimbursed by operator. The number of Environmental Compliance Coordinators shall be determined by the City and shall take into account the level of oil and gas operations associated with the project site. The Environmental Compliance Coordinator(s) shall be approved by, and shall report to, the Petroleum Administrator consistent with the Petroleum Administrator's authority under CMC § 2107. The responsibilities of the Environmental Compliance Coordinator(s) shall be determined by the City for the project site and shall generally include:

  1. Monitoring of oil and gas sites for compliance with this Chapter as it relates to construction, drilling, operational or abandonment and site restoration activities as determined by the Petroleum Administrator.

  2. Taking steps to ensure that the operator, and all employees, contractors and other persons working in the project site, have knowledge of and are in compliance with all applicable provisions of the conditional use permit or development agreement.

  3. Reporting responsibilities to the various City departments with oversight responsibility at the project site, as well as other agencies such as DOGGR and SCAQMD.

• B. Compliance Deposit Account. An applicant must establish a compliance deposit account with the City within thirty (30) days of receiving authorization for a CUP or DA from the City. The compliance security deposit amounts shall be determined by the Petroleum Administrator, and shall be based on the nature and extent of the compliance actions required and shall be a minimum of $5,000.

• (Ord. 16-1590, Exh. B (§ 1))

• A. CMC § 9518 through § 9520 shall apply to any person who operates any oil or gas site involved in exploration, production, processing, storage or transportation of oil or gas extracted from reserves in the City of Carson.

• B. This Chapter shall not apply to the change of operator of the following:

  1. Sales gas pipelines operated by a public utility and regulated by the California Public Utilities Commission;

  2. A change of ownership consisting solely of a change in percentage ownership of a site and which does not entail addition or removal of an owner or affect any financial guarantee or bonds for a permit, CUP, and/or DA.

• (Ord. 16-1590, Exh. B (§ 1))

The applicant shall be fully responsible for all reasonable costs and expenses incurred by the City or any City contractors, consultants, or employees in reviewing, approving, implementing, inspecting, monitoring, or enforcing this Chapter or any CUP, DA, or permit, including, but not limited to, costs for permitting, permit conditions implementation, mitigation monitoring (including well abandonment and reabandonment), reviewing and verifying information contained in reports, inspections, administrative support, and including the fully burdened cost of time spent by City employees, City Attorney, or third-party consultants and contractors on such matters. (Ord. 16-1590, Exh. B (§ 1))

The operator or any contractor of any oil and gas operation subject to this Chapter shall provide, or cause to be provided, the securities and bond requirements described below.

• A. The operator shall file a faithful performance bond with the Petroleum Administrator consistent with the following bonding requirements:

  1. The Petroleum Administrator shall determine the amount of the bond based on the total number of wells, proposed operations, size and nature of the property, appropriate environmental studies on the property, including a phase I, II or human health risk assessment report and other relevant conditions related to the proposed wells or operations at a specific oil or gas site, and recognized commercial standards.

  2. The amount of the bond shall be sufficient to assure the completion of the abandonment, necessary reabandonment, site restoration, to the extent not fully covered by DOGGR bonds, and remediation of contamination of the oil or gas site if the work had to be performed by the City in the event of forfeiture. The performance bond shall be inflation indexed to ensure the amount of the bond shall be sufficient to assure completion of the abandonment, restoration and remediation of contamination of the oil or gas site. The bond shall be available within a time frame to allow the City to undertake related activities in a timely manner, including at least one-half (1/2) for immediate access and use in the event of an emergency as determined by the Petroleum Administrator.

  3. Prior to expansion of an oil or gas site, the operator shall apply to the Petroleum Administrator for a determination of the amount of the bond necessary to ensure completion for both the existing and expanded operations. In addition, every bond shall be reassessed by the Petroleum Administrator every five (5) years to ensure the amount is sufficient to ensure the completion of the abandonment, site restoration, and remediation of contamination of the oil or gas site.

  4. Upon application by the operator, the Petroleum Administrator may reduce bonding amounts based upon change of physical circumstances, completion or partial completion of work, or significant reduction in cost to perform the work. In no event shall the amount of the bond be reduced to an amount insufficient to complete any remaining work, nor shall the bond be reduced due to economic hardship or similar considerations.

  5. After completion of all abandonment and site restoration requirements, the bond shall be maintained in a sufficient amount to ensure remediation of contamination at the oil or gas site for a period not less than fifteen (15) years.

  6. In no event shall the bonding amount required by the City be less than $10,000 per well.

7. The bond may be drawn only from a qualified entity without any economic interests or relationship with the operator and any related economic entities related thereto, and bonds must be rated "A" or better by a nationally recognized bond rating organization. The Petroleum Administrator shall receive all pertinent information related to the bond and bonding entity prior to issuance of a final approved permit, CUP, or DA.

• B. In lieu of these bonding requirements, an operator may also submit any other legally adequate and binding financial mechanism, subject to City Attorney approval, to satisfy the monetary assurance requirements set by the Petroleum Administrator to assure completion of the abandonment, restoration and remediation of contamination of the oil or gas site.

• C. For any evaluation of bonding amounts by the Petroleum Administrator in this Section, or evaluation of a financial mechanism proposed in lieu of a bond by the City Attorney, the operator shall deposit the estimated costs with the Petroleum Administrator with the application, and shall also make any additional deposit(s) within thirty (30) days of written request by the Petroleum Administrator. The Petroleum Administrator may retain consultants or other experts in the industry to assist in deriving a commercially reasonable bond amount.

• (Ord. 16-1590, Exh. B (§ 1))

The operator of any oil and gas operation subject to this Chapter shall provide, or cause to be provided, the insurance described below for each oil and gas site during the pendency of oil and gas operations. The operator or contractor must provide to the City sufficient documentation that the insurance complies with the minimum requirements and coverage amounts of this Section before a permit may be issued.

• A. General Provisions Regarding Insurance.

  1. The operator or any contractor shall pay for and maintain in full force and effect all policies of insurance described in this Section with an insurance company or companies admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A-VII" in Best's Insurance Rating Guide.

  2. In the event any policy is due to expire, the operator or any contractor shall provide a new certificate evidencing renewal of such policy not less than thirty (30) calendar days prior to the expiration date of the expiring policy. Upon issuance by the insurer, broker, or agent of a notice of cancellation in coverage, operator or any contractor shall file with the Petroleum Administrator a new certificate and all applicable endorsements for such policy.

  3. Liability policies shall name as "additional insured" the City, including its officers, officials, agents, employees and authorized volunteers.

  4. All policies shall be endorsed to provide an unrestricted thirty (30) calendar day written notice in favor of City of policy cancellation of coverage, except for: (1) nonpayment, which

shall provide a ten (10) day written notice of such cancellation of coverage, and (2) the workers' compensation policy which shall provide a ten (10) calendar day written notice of such cancellation of coverage.

5. The operator shall present to the Petroleum Administrator copies of the pertinent portion of the insurance policies evidencing all coverage and endorsements required by this Section before the issuance of any permit subject to this Chapter, and the acceptance by the City of a policy without the required limits or coverage shall not be deemed a waiver of these requirements. The City may, in its sole discretion, accept a certificate of insurance in lieu of a copy of the pertinent portion of the policy pending receipt of such document by the City. After the issuance of the permit, the City may require the operator to provide a copy of the most current insurance coverage and endorsements for review at any time. The operator will be responsible for paying an administration fee to cover the costs of such review as may be established by the City's fee schedule.

6. Claims-made policies shall not be accepted except for excess policies and environmental impairment (or seepage and pollution) policies.

7. Insurance coverage shall be reviewed by the Petroleum Administrator as required by CMC § 9509 to ensure adequate insurance is maintained.

• B. Required Insurance Coverage.

  1. Commercial or Comprehensive General Liability Insurance.

• i. Bodily injury and property damage coverage shall be a minimum combined single limit of $2,000,000 per occurrence, $2,500,000 in the aggregate. This coverage must include premises, operations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, underground reservoir (or resources) damage, broad form property damage, independent contractor's protective liability and personal injury.

  - ii. Environmental impairment (or seepage and pollution) coverage shall be either included in the comprehensive general liability coverage or as separate coverage. Such coverage shall not exclude damage to the lease site. If environmental impairment (or seepage and pollution) coverage is written on a claims-made basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, oil and gas, waste material, or other irritants, contaminants or pollutants. Such policy shall provide for minimum combined single limit coverage of $2,000,000 per occurrence and $2,500,000 in the aggregate. A discovery period for such peril shall not be less than ten (10) years after the occurrence. 
  

  2. Commercial Automobile Liability Insurance. Minimum combined single limit of $1,000,000 per occurrence for bodily injury and property damage. The policy shall be at least as broad as the most current version of Insurance Services Office (ISO) Business Auto Coverage Form CA 00 01 and shall include coverage for all owned, hired, and nonowned automobiles or other licensed vehicles (Section 1, Subsection A.1 entitled "Any Auto").

  3. Workers' Compensation Insurance. Maintain the minimum statutory requirements, coverage which shall not be less than $1,000,000 for each occurrence.

  4. Excess (or Umbrella) Liability Insurance. Minimum limit of $25,000,000 providing excess coverage for each of the perils insured by the preceding liability insurance policies, except for underground reservoir (or resources) damage.

  5. Control of Well Insurance (Only During Drilling or Reworking).

     • i. Minimum limit of $40,000,000 per occurrence, with a maximum deductible of $500,000 per occurrence.

     • ii. Policy shall cover the cost of controlling a well that is out of control, drilling or restoration expenses, and seepage and pollution damage. Damage to property in the operator's care, custody and control with a sub-limit of $500,000 may be added.

     • iii. The Petroleum Administrator may reduce or waive the coverage requirements upon finding that the operations will be confined to depths and formations within which there is no substantial risk of loss of well control.

6. Self-Insurance. The operator shall have the option to self-insure if insurance is not commercially feasible to obtain and maintain in the commercial insurance market, as certified by a written report prepared by an independent insurance advisor of recognized national standing, for the following types of insurance required by this subsection: excess (or umbrella) liability insurance, control of well insurance, and environmental impairment (or seepage and pollution) coverage. The operator shall provide a certificate for self-insurance subject to approval by the Petroleum Administrator and Risk Management, and to the City Attorney for approval as to legal sufficiency. To the extent said insurance is limited to amounts less than that required by this Chapter, the operator must first obtain available insurance coverage to the extent it is commercially feasible, and then shall self-insure for the remaining amount.

• C. Failure to Maintain Coverage. Upon failure of the operator or contractors to provide that proof of insurance as required by this Section when requested, the Petroleum Administrator may order the suspension of any outstanding permits and petroleum operations of the operator until the operator provides proof of the required insurance coverage.

• (Ord. 16-1590, Exh. B (§ 1))