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SB-759 Geothermal well fees.(2017-2018)

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Date Published: 02/17/2017 09:00 PM
SB759:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 759


Introduced by Senator McGuire

February 17, 2017


An act to amend Sections 3724, 3724.1, and 3724.6 of the Public Resources Code, relating to wells.


LEGISLATIVE COUNSEL'S DIGEST


SB 759, as introduced, McGuire. Geothermal well fees.
Existing law requires the owner or operator of any geothermal well to pay the appropriate fees before commencing the original drilling of a geothermal well or the redrilling of an abandoned well. Existing law establishes the appropriate fees for the drilling of certain shallow geothermal wells.
This bill would delete the above fees.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 3724 of the Public Resources Code is amended to read:

3724.
 (a) The owner or operator of any well, before commencing the original drilling of a well or the redrilling of an abandoned well, shall file with the supervisor or the district deputy a written notice of intention to commence drilling, accompanied by the prescribed fee. drilling. Drilling shall not commence until approval is given by the supervisor or the district deputy. If the supervisor or the district deputy fails to give the owner or operator written response to the notice within 10 working days, such the failure shall be considered as an approval of the notice and the notice shall, for the purposes and intents of this chapter, be deemed a written report of the supervisor. The notice shall contain the following:

(a)

(1) The location and elevation of the floor of the proposed derrick.

(b)

(2) The number or other designation by which the well shall be known. Such The number or designation shall be subject to the approval of the supervisor.

(c)

(3) The owner’s or operator’s estimate of the depths between which production will be attempted.

(d)Such other

(4) Other pertinent data as the supervisor may require.

After

(b) After the completion of any well, the provisions of this section, other than the requirement of the payment of the fee, this section shall also apply, as far as may be, to the deepening or redrilling of the well, or any operation involving the plugging of the well, or any operations permanently altering in any manner the casing of the well. The number or designation by which any well heretofore drilled has been known, and the number or designation specified for any well in a notice filed as required by this section, shall not be changed without first obtaining a written consent of the supervisor.

As set forth by regulation, the appropriate fee to be filed for the drilling of a new well or the redrilling of an abandoned well, shall be twenty-five dollars ($25), two hundred dollars ($200), five hundred dollars ($500), or one thousand dollars ($1,000).

The fee shall be paid as provided in Section 3724.6.

SEC. 2.

 Section 3724.1 of the Public Resources Code is amended to read:

3724.1.
 An owner or operator may submit to the supervisor for approval a written program to drill a shallow well or wells for temperature-gradient monitoring purposes. In order to qualify under this section, a program shall contain not more than 25 wells and the maximum total depth of each of these wells shall not exceed 250 feet. Each program submitted for approval shall include:
(a) Well numbers.
(b) Well locations and elevations.
(c) Geologic interpretation of the area under investigation, including any known or inferred temperature data.
(d) Such Any other data as may be required by the supervisor.

The fee required to be filed for the drilling of these shallow wells shall be twenty-five dollars ($25) per well or two hundred dollars ($200) per program, whichever is the lesser.

The fee shall be paid as provided in Section 3724.6.

SEC. 3.

 Section 3724.6 of the Public Resources Code is amended to read:

3724.6.
 The permit application fees established in Sections 3724 and 3724.1 shall be made payable by the operator to the Department of Conservation, and the annual well fee established in accordance with Section 3724.5 shall be made payable to the Treasurer. The proceeds from the permit applications and the annual well fees shall be deposited in the Oil, Gas, and Geothermal Administrative Fund, and shall be available for appropriation exclusively for the supervision of geothermal resource wells.