AB 2711: Oil and gas: notice of intention.

Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires the operator of a well to file a written notice of intention to commence drilling or written notice of intention to abandon a well with, and prohibits any drilling or abandonment, respectively, until approval is given by, the supervisor or district deputy. Under existing law, if the supervisor or district deputy fails to give the operator written response to the notice of intention to commence drilling or to the notice of intention to abandon a well within 10 working days from the date of receipt, that failure to respond is considered an approval, as specified. Under existing law, if operations to commence drilling or to abandon a well have not commenced within 24 months of receipt of the notice by the supervisor or the district deputy, the notice is deemed canceled, as provided.

This bill would instead require the supervisor or district deputy to provide the operator, within 10 working days of the receipt of notice of intention, intention to commence drilling or notice of intention to abandon a well, respectively, a written determination stating whether the notice of intention is complete. The bill would provide that if a supervisor or district deputy fails to provide this written determination the notice of intention to commence drilling or notice of intention to abandon a well, respectively, is required to be deemed complete. The bill would require, if the supervisor or the district deputy determines the notice of intention to commence drilling or notice of intention to abandon a well, respectively, is not complete, the supervisor or the district deputy to provide a written list that specifically identifies each item that is missing or deficient, deficient and to make a good faith effort to provide that information in a single document, as specified, in addition to the written determination that the notice of intention is not complete. The bill would authorize the operator to cure any deficiencies and to resubmit the notice of intention to commence drilling or notice of intention to abandon a well, respectively, and would require the supervisor or deputy to provide a written determination stating whether the resubmitted notice of intention is complete within 10 working days. The bill would require, if the supervisor or district deputy provides a written determination that a notice of intention or a resubmitted notice of intention to commence drilling or notice of intention to abandon a well, respectively, is complete, or if a notice of intention to commence drilling or notice of intention to abandon a well, respectively, is deemed complete due to a failure of the supervisor or district deputy to provide the written determination of completeness within 10 working days as described above, the supervisor or the district deputy to approve or deny the notice within 30 working days from the date of the determination of completeness. The bill would provide that if the supervisor or district deputy fails to approve or deny a notice of intention, intention to commence drilling or notice of intention to abandon a well, respectively, within 30 working days, that failure is to be considered an approval, provided that all necessary environmental and technical reviews by the supervisor or district deputy are complete. The bill would also require, if the notice of intention to commence drilling or notice of intention to abandon a well, respectively, is denied by the supervisor or district deputy, within 30 working days from the date of a written determination of completion, the supervisor or the district deputy to include in the denial a rational explanation a rationale for why the notice was denied. The bill would instead provide that if operations to commence drilling or to abandon a well, respectively, have not commenced within 24 months of receipt of approval of the notice by the supervisor or the district deputy, the notice is deemed canceled, as provided.