Article 3-4

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Article 3.4

Article 3.4. Oil and Gas Drilling and Production Operations: Pollution Control

2133. General Provisions
2134. Definitions
2135. Administration
2136. Prohibition of Pollution
2137. Suspension of Operations and Corrective Action
2138. Disposal of Drill Cuttings and Drilling Muds
2139. Oil Spill Contingency Plan
2140. Pollution Control and Removal Equipment
2141. Critical Operations and Curtailment Plans
2142. Pollution Reports

'2133. General Provisions.

(a) This Article 3.4 pertains to oil and gas drilling and production to operations on State oil and gas leases located on State tide and submerged lands under the jurisdiction of the State Lands Commission, and is applicable to operations conducted from mobile rigs, fixed offshore structures and upland locations serving these leases.

(b) In addition to complying with Division 6 of the California Public Resources Code and with Title 2, Division 3, Chapter 1 of the California Administrative Code, the lessee shall comply with all applicable laws, rules and regulations now or hereafter promulgated of the United States of the State of California and of any respective political subdivision thereof, including, but not limited to, those of the Division of Oil and Gas, the Department of Fish and Game, the Division of Industrial Safety, the State Water Resources Control Board, and the Regional Water Quality Control Board, the California Coastal Commission, and any respective successors thereto.

(c) All operations conducted on State oil and gas leases shall be carried on in a proper and workmanlike manner in accordance with accepted good oilfield practice.

NOTE: Authority cited: Sections 6103, 6108, 6216, 6301, and 6873(d), Public Resources Code; and Section 11152, Government Code. Reference: Sections 6005, 6216, 6301, 6871, 6871.1, 6873(d), Public Resources Code.

HISTORY

1. New Article 3.4 (Sections 2133-2142) filed 6-13-80; effective thirtieth day thereafter (Register 80, No. 24).

'2134. Definitions.

For purposes of this Article 3.4 the following definition shall apply:

(a) AStaff’ shall mean the Executive Officer or other duly authorized member of the Staff of the State Lands Commission.

'2135. Administration.

(a) The Staff shall administer this Article 3.4 and shall thereby seek to provide for the prevention and elimination of any contamination or pollution of the ocean and tidelands, for the prevention of waste and for the conservation of natural resources, and for the protection of human health and safety and of property.

(b) The Commission has designed these regulations in as great detail as possible. However, the Commission recognizes that situations may arise which are not specifically covered by this Article 3.4 and that emergency situations may arise which will require immediate decisions by the Staff. In such situations, the Executive Officer or his designee may authorize appropriate procedures to be followed.

'2136. Prohibition of Pollution.

(a) Pollution and contamination of the ocean and tidelands and any impairment of or interference with recreation, fishing, or navigation in the waters of the ocean or any bay or any inlet thereof is prohibited; and no oil, tar, residuary product of oil or any refuse of any kind from any well or facility that is deleterious to marine life shall be permitted to be deposited on or pass into the waters of the ocean or any bay or any inlet thereof.

(b) All drilling and production operations shall be conducted in a manner that will eliminate, insofar as is practical, any dust, noise, vibration, or noxious odors.

Note: Authority cited: Sections 6103, 6108, 6216, 6301 and 6873(d), Public Resources Code; and Section 11152, Government Code. Reference: Sections 6005, 6216, 6301, 6871, 6871.3, 6873(d), Public Resources Code.

'2137. Suspension of Operations and Corrective Action.

A lessee shall suspend immediately any drilling and production operations, except those which are corrective, protective, or mitigative, in the event of any disaster of or contamination or pollution caused in any manner or resulting from drilling and/or production operations under its lease. Such drilling and/or production operations shall not be resumed until adequate corrective measures have been taken and authorization for resumption of such operations has been made by the Staff. Corrective measures shall be taken immediately whenever pollution has occurred.

NOTE: Authority cited: Sections 6103, 6108, 6216, 6301 and 6873(d), Public Resources Code; and Section 11152, Government Code. Reference: Sections 6005, 6216, 6301, 6871, 6871.l, 6873(d), Public Resources Code.

'2138. Disposal of Drill Cuttings and Drilling Muds.

The lessee shall dispose of those drill cuttings and drilling muds associated with drilling and production well work, in accordance with regulations promulgated by the appropriate Regional Water Quality Control Board. The method employed to dispose of the drill cuttings and drilling muds shall be submitted to the Staff for approval along with the drilling mud program that is required in Section 2128(d)(1).

'2139. Oil Spill Contingency Plan.

Each lessee shall prepare and maintain a current oil spill contingency plan for initiating corrective action to control and recover oil spilled in or on the ocean. The plan shall cover both minor and major oil spills associated with lease drilling and production operations. The plan and any subsequent revisions thereto shall be submitted for approval by the Staff.

'2140. Pollution Control and Removal Equipment.

(a) Pollution control equipment and material shall be available immediately to each lessee for use in oil pollution control and removal operations on its lease. The equipment and material shall include, but need not be limited to, containment booms, skimming apparatus, licensed chemicals, and absorbents, and shall be the most effective available given the current state of pollution control and removal research and development at the time of acquisition. The lessee shall, however, update such equipment whenever any significant technological improvements are developed.

(b) Emergency equipment shall be maintained on each mobile drilling rig and fixed offshore drilling or production facility for immediate cleanup of small oil spills. Each mobile drilling rig shall be equipped with a minimum of 1500 feet of oil containment boom, an oil skimming or recovery device that is capable of open ocean use, and an amount of absorbent material sufficient to remove 15 barrels of spilled oil. In addition, a boat that is capable of deploying this equipment shall be maintained on-site or available to the rig within 15 minutes. The equipment and material required on each fixed offshore drilling or production facility shall be determined and approved by the staff on an individual basis considering the type of structure, location, current activity, oil production capability, method of well production and other factors peculiar to the facility.

Equipment for the control and removal of larger oil spills shall be maintained at an offshore or onshore location near the area of lease operations where deployment and response to the spill would provide the most feasible protection of coastal resources. All equipment shall be inspected regularly and shall be maintained in good condition for immediate use.

(c) The lessee shall conduct training classes and periodic drills in the deployment and use of pollution control and removal equipment, to ensure that designated personnel can carry out the assignments which are necessary for effective control and removal of oil spilled in or on the ocean.

(d) The lessee shall maintain an inventory of the emergency equipment that is stored on each mobile drilling rig and offshore drilling or production facility as well as an inventory showing the description, application, and location of all pollution control and removal equipment that is immediately available for a major oil spill. In addition, the lessee shall maintain a listing of equipment, material, services, and labor forces that are immediately available for beach cleanup and restoration operations. The inventories shall be updated as changes occur and current copies shall be filed with the Staff annually.

(e) All mobile drilling rigs and offshore drilling or production facilities shall be equipped in a manner that will prevent spilling of contaminants in the ocean. Any fluids spilled shall be collected in a sump(s) that is provided with appropriate pumping equipment, liquid level controls, and alarms to prevent accidental discharge of contaminants into the ocean waters.

'2141. Critical Operations and Curtailment Plans.

The primary purpose of a Critical Operations and Curtailment Plan is to provide additional precautionary measures to minimize the likelihood of an oil spill incident occurring from offshore drilling and production well work during (1) adverse weather and sea conditions when oil spill containment and recovery equipment, material and techniques are not effective and marine transportation is severely hampered; and (2) the time that oil spill containment and recovery equipment, material, manpower, and transportation thereof are not readily available to the site of operation.

Certain operations performed in drilling and production well work are more critical than others with respect to well control and accidental discharge of oil and gas. This is particularly so when subsurface formations are exposed in the well that are capable of flowing oil and gas to the surface or when the well has been pressured by outside means. It is these critical operations that should be ceased, limited or not commenced in order to minimize the likelihood of an oil spill occurring during adverse weather and sea conditions which could seriously impede both well control and oil cleanup efforts.

The lessee shall file with the Staff, for its approval, a Critical Operations and Curtailment Plan to be followed while conducting drilling and/or production well work on the lease. A plan shall be filed for each exploratory well as required in Section 2128(d)(2) in order to accommodate different drilling rigs, circumstances and conditions. A separate plan shall be filed for development drilling and production well work on the lease. These plans shall contain the following:

(a) A descriptive list of the critical drilling and production well work that is likely to be conducted on the lease, such as:

(1) Drilling in close proximity to another well.

(2) Drilling into a known lost circulation zone or into a zone capable of flowing oil and/or gas.

(3) Continuation of drilling into zones that are suspected to be capable of flowing oil and/or gas or into zones suspected to be abnormally pressured.

(4) If zones capable of flowing oil and/or gas are exposed or suspected to be exposed in the well then the following are considered to be critical operations:

(A) Pulling out of the hole.

(B) Fishing operations.

(D) Wireline logging in open hole.

(E) Running casing.

(F) Cutting and recovering casing.

(G) Perforating casing.

(H) Well completion work.

(I) Remedial well work.

(J) Well stimulation.

(b) A descriptive list of circumstances or conditions under which the critical drilling and production well work shall be ceased, limited, or not commenced. This list shall be developed from all the factors and conditions relating to the lease and shall take into account but may not to be limited to the following:

(1) Whether or not well operations are being conducted from a mobile rig or a fixed structure.

(2) Adverse meteorological or oceanographical conditions exist or are anticipated soon.

(3) Limited availability and capability of oil containment and cleanup equipment.

(4) Significant increase in oil spill control system response time for any reason.

(5) Personnel or equipment for conducting a particular critical operation are not available.

(6) Insufficient supply of drilling mud materials on the drill site for emergency well control purposes.

(7) Transportation equipment for personnel, supplies and oil spill containment and cleanup equipment is not readily available.

(8) Construction and maintenance work involving welding, moving heavy equipment, etc. is being performed.

(9) Other factors peculiar to the particular lease under consideration.

(c) When any circumstance or condition listed or described in the plan occurs or other operational limits are encountered, the lessee shall cease, limit, or not commence the affected critical operation(s) as set forth in Section 2141(a).

(d) Any deviation from the approved plan shall require prior written approval by the Staff. If emergency action requires deviation from the plan, and there is inadequate time to seek the Staffs approval, the Staff shall be notified immediately after said deviation occurs.

(e) The plan shall be reviewed at least annually and any changes thereto shall be submitted to the Staff for approval.

'2142. Pollution Reports.

(a) All spills or leakage of oil and liquid pollutants originating from operations on State oil and gas leases shall be reported orally without delay to the United States Coast Guard and to the State Office of Emergency Services in Sacramento. Subsequent to oral notification, a written report shall be filed with the State Lands Commission, stating the source, cause, size of spill and the action taken.

(b) Lessees shall report orally to the three authorities indicated in Section 2142(a) any pollution of unknown source or pollution unassociated with lease operations that is observed on or in State waters.

(c) Lessees shall notify one another of information regarding equipment malfunction or of information regarding pollution resulting from another’s operation.

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