§ 22.34.040. Oil and Gas Well Development Standards.

The following standards apply to all resource extraction wells:

A.

Bonding. Performance guarantees to assure compliance with applicable provisions of this Title, conditions of approval and other applicable regulations, shall be provided as follows:

1.

Single bonds. Following approval of a drilling permit and prior to any work on the proposed drilling site, the applicant shall post a surety bond in the minimum sum of $5,000 per well, in favor of the County, conditioned that the applicant (who shall be named in the bond) shall faithfully comply with all applicable conditions, restrictions, and requirements of this Title, APCD regulations, and any conditions of approval in drilling or redrilling and maintaining all surface production facilities as required by this Title or APCD regulations and conditions of approval, until abandonment of such facilities in compliance with this Title. The bond shall secure the County of San Luis Obispo against all expenses incurred on account of any failure of the applicant to comply with the provisions of this Title, APCD regulations and any conditions of approval. The bond shall include the correct name or number of the well and such other information as may be necessary to readily identify the well. Such guarantee is in addition to any bond required by the state.

2.

Blanket bonds. Where the Director is satisfied as to the financial responsibility of an operator, the Director may permit the filing of a bond in the minimum amount of $25,000 to cover all the operator's surface operations in the County, instead of the single bond required by Subsection A.1. The bond shall be accompanied by a rider filed with the Director that includes a description of all operations and facilities covered by the bond.

3.

Increase in bond amount. The bond amounts in this Subsection may be increased or decreased by the Director when justified by particular circumstances. The Director shall annually review all such bond amounts to determine whether they are adequate to insure compliance with the provisions of this Title. Disputes between the Director and applicant regarding increased or decreased bond amounts shall be subject to the appeal process of Section 22.70.050.

B.

Site development.

1.

Roads, access and site preparation. Roadwork and grading for drill site preparation shall be limited to that necessary for site access and shall be designed and oriented to minimize cut and fill slopes and removal of vegetation. Roads shall be maintained in a dust-free condition by periodic watering or by compacted surfacing. A grading permit may be required for drill site access roads and site preparation, as determined by Chapter 22.52 (Grading).

2.

Clearing and revegetation. The land area exposed and the vegetation removed during construction shall be the minimum necessary to install and operate the facility. Top soil shall be stripped and stored separately. Disturbed areas no longer required for production will be regraded, covered with topsoil and replanted during the next appropriate season.

3.

Well locations. A well hole, derrick or tank shall not be placed closer than 100 feet of any residence, or closer than 25 feet from any public road, street or highway, except where the Review Authority determines that separations are unnecessary or ineffective because of physical conditions of the drilling site or the vicinity.

4.

Drilling within a community. The following standards apply to drilling operations within urban or village reserve lines or Residential Suburban land use categories.

a.

Portable rig required. Drilling operations shall use portable drilling apparatus only, which shall be removed from the site within five calendar days from completion of drilling.

b.

Hours of operation. Drilling operations may continue uninterrupted once started. Delivery of materials, equipment, tools or pipe shall occur only between the hours of 7:00 a.m. and 9:00 p.m., or such other hours as the Commission may establish, except in case of emergency.

5.

Sumps and waste disposal. All waste substances such as drilling muds, oil, brine, or acids produced or used in connection with oil drilling operations or oil production shall be retained in watertight receptors, from which they can be piped or hauled for terminal disposal in a dumping area specifically approved for such disposal by the Regional Water Quality Control Board. The use of unprotected earthen sumps is prohibited except during drilling operations. Any allowed sump located within view of any public street or within 1,000 feet of any residence shall be enclosed with a fence not less than five nor more than 10 feet in height, mounted on steel posts with not less than three strands of barbed wire around the top, except when an earthen sump is under continuous supervision and use during drilling operations. Fencing shall be constructed of woven wire fencing or equivalent of not greater than six inch mesh.

6.

Fire protection. Fire fighting apparatus and supplies, approved by the County Fire Department shall be maintained on the site at all times during drilling and production operations.

7.

Completion of drilling. The applicant shall notify the Director within 10 days after completing or abandoning the facility. Within 30 days after completion or abandonment of an exploratory or production well, all derricks, other drilling apparatus and equipment, including any earthen sumps, shall be removed from the site and the sumps filled. Drill rigs in urban areas shall be removed within five calendar days as provided in Subsection B.4. After completion of drilling, any necessary servicing or maintenance of wells may use portable derricks, if needed.

C.

Well operation and site maintenance.

1.

Landscaping. Within 30 days after the completion of the drilling of a producing well within view of any public street or any residence, production equipment shall be screened, and the entire extraction site, including disturbed areas not directly related to the extraction shall be revegetated and thereafter maintained as shown on the approved landscaping plan. This requirement is not applicable in Agriculture and Rural Lands categories outside of urban and village reserve lines.

2.

Site maintenance. The drillsite, permanent equipment and approaches to the site shall be kept in a clean, neat appearing condition free from debris, other than necessary and incidental drilling equipment and supplies. The site shall be maintained so as to prevent any accumulation of oil, oil products, or oil-coated boards, materials or equipment which might cause fumes or odors detrimental to adjoining property.

3.

Storage tanks. Oil storage tanks erected or maintained on the premises shall be removed no later than 180 days after the first well on the site is completed except where located as part of a permanent tank battery authorized through Conditional Use Permit approval. Oil produced thereafter shall be transported from the drilling site by means of an underground pipeline connected directly with the producing pump without venting to the atmosphere at the drilling site. This requirement is not applicable in Agriculture and Rural Lands categories outside urban and village reserve lines.

4.

Parking and loading. All parking and loading activities related to well drilling or production shall occur on-site.

5.

Signing. Only directional, instructional and warning signs, and signs required for identification of a well may be placed on the premises.

6.

Operating wells. Pumping wells shall be operated by electric motors or muffled internal combustion engines. Pumping units within urban or village reserve lines or Residential Suburban land use categories shall be installed within pits or above-grade structures which screen all mechanical equipment from the view of public roads or adjoining properties and which reduce noise generated by pumping equipment to within the limits specified by Section 22.10.120 (Noise Standards).

7.

Violations. If the facility is operated in a manner that violates the standards or conditions of this Section or any other required permit, the applicant shall:

a.

Immediately stop, contain, or correct the unauthorized action or inaction.

b.

Within 30 days of the violation, inform the Director in writing about the cause of the violation, its effects, and corrective action the applicant took in response to the violation and proposes to take to prevent a reoccurrence of the violation or its cause.

D.

Periodic inspection. All active wells will be inspected annually by the Department. The applicant shall pay the costs of such inspections in compliance with the County Fee ordinance.

E.

Well abandonment. The abandonment of an oil well shall occur as follows.

1.

All production and processing facilities related to the well shall be removed from the site unless they have been approved for use with another adjacent well.

2.

The well site and surroundings affected by drilling operations shall be restored and revegetated to achieve a natural-appearing condition which will approximate their original vegetative and topographic state.

3.

The applicant shall notify the Director within 10 days after abandoning the well and associated facilities.

4.

The requirements of Title 7.04 of this code shall be complied with.

5.

The applicant shall report the well abandonment as required to the Division of Oil and Gas, and the applicant shall provide the Director a copy of the response received from the Division of Oil and Gas regarding completion of abandonment in compliance with their requirements.

[Amended 1989, Ord. 2409] [22.08.174]