§ 17.46

A.

This chapter shall be known as the oil and gas ordinance of the City of Arvin.

B.

It is the purpose of this chapter, amongst other things, to protect the health, safety, public welfare, physical environment and natural resources 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 re-abandonment of wells; of 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 re-entry 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, or at the time this chapter becomes applicable, which do not have or are not required to obtain a new CUP, only the following sections are applicable:

Violations of these sections shall also be subject to enforcement mechanisms contained in this chapter and Code.

To the extent the ordinance 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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.

TABLE 1-1

• 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, and permitted on federal, state, county or municipal land, subject to the entitlement process (CUP, DA, or otherwise) of the governmental entity having jurisdiction over such entitlement.

**CUP indicates a requirement for a conditional use permit, while DA indicates a development agreement. Where not prohibited, all oil and gas facilities or sites within the city's jurisdiction are required to have either a CUP or a DA.

1 Development agreement provisions apply as specified in Section 17.46.09.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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

"Abandoned well" means a non-producing 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.

"API" refers to the American Petroleum Institute.

"ASTM" 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 to 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.

"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 California Public Resources Code, Division 3, and 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 re-drilling and re-working 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.

"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 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 non-hydrocarbon 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 Section 17.46.012 of this chapter 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.

"Idle well" is defined in the DOGGR statutes and regulations and is any well that for a period of twenty-four (24) consecutive months has either not produced oil or natural gas, produced water to be used in production stimulation, or been used for enhanced oil recovery, reservoir pressure management, or injection. 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.

"NFPA" refers to the National Fire Protection Agency.

"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 percent (25%) or more the capacity of existing tanks as of the effective date of 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 re-drills of existing active or idle wells. Re-drills of abandoned wells are considered new wells under this chapter; re-drills of abandoned wells for re-abandonment are not 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 re-drilling of an abandoned well is considered a new well.

"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 site" or "site" is a 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.

"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.

"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.

"Pipelines" for the purposes of this chapter, shall mean all flow lines associated with wells located within the City of Arvin 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 of a portion of a current or former oil or gas site to another authorized use other than petroleum operations.

"Re-drilling" 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.

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

"Re-work" is defined in the DOGGR statutes and regulations and means any operation subsequent to initial drilling that involves re-drilling, 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 borehole, or any other operation which permanently alters the casing of a well. For the purposes of this chapter, re-work includes a well abandonment.

"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 Central Valley Regional Water Quality Control Board.

"Secondary containment" means an engineered impoundment, such as a catch basin, which can include natural topographic features, that is designed to capture fluid released from a production facility."

"Shut down" or "shut down order" is an order by the city manager, Kern County Fire Department Chief, California State Fire Marshall, 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.

"SJVAPCD" refers to the San Joaquin Valley Air Pollution Control District.

"SPCC" refers to spill prevention, control, and countermeasures.

"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 California Health and Safety Code Section 39655, as may be amended from time to time. Title 17, Section 93000, of the California Code of Regulations, lists substances defined as toxic air contaminants.

"USEPA" refers to the United States Environmental Protection Agency.

"Regional water quality control board" shall mean the Central Valley Regional Water Quality Control Board.

"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.

"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 re-working of wells and is regulated by DOGGR but without requirements for notices of intent or permits.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 Section 17.46.04 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

Unless otherwise specified in this chapter, any discretionary decision of the city manager shall be final unless within fifteen (15) days after the decision by the city manager, or ten (10) days after the mailing of the required notice(s), whichever date is later, any aggrieved person appeals therefrom in writing to the planning commission by timely presenting such appeal to the city clerk. At its next regular meeting after the filing of such appeal with the city clerk, the planning commission shall set a date for a hearing thereon. The decision appealed from shall be affirmed unless reversed by a vote of not less than a majority of all the members of the planning commission. An appeal of the planning commission to the city council shall follow the same process. Mandatory requirements of this chapter are not subject to appeal.

A.

Any court action or proceeding to attack, review, set aside, void or annul any decision or any matter mentioned in this chapter or concerning any of the proceedings, acts or determinations taken, done or made prior to such decision,(except for any decision approving or denying an application for a permit or revoking a previously granted permit, which is governed by subsection B) shall not be maintained by any person unless such action or proceeding is commenced within sixty (60) days after the date on which such decision becomes final. Thereafter all persons are barred from any such action or proceeding or any defense of invalidity or unreasonableness of such decision or of such proceedings, acts or determinations.

B.

Any court action brought pursuant to Code of Civil Procedure Section 1094.5 to attack, review, set aside, void or annul any decision approving or denying an application for a permit or revoking a previously granted permit, shall not be maintained by any person unless such action is commenced within ninety (90) days after the date on which such decision becomes final. This subsection has been adopted pursuant to Code of Civil Procedure Section 1094.6.

C.

Nothing in this section shall expand or otherwise extend any shorter statute of limitation set by state or federal law, including any statute of limitation under the California Environmental Quality Act.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

Prior to commencing drilling or re-working of any oil and gas well, the operator must receive a well drilling or re-work permit from DOGGR. Well permits from DOGGR shall be provided to the city manager prior to commencement of drilling or re-working activities.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

New development to which this chapter applies (see Section 17.46.02) 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 the same as provided in the Arvin Municipal Code except appeals as noted above. Additionally all procedures for CUPs to which this chapter applies shall comply with the following additional requirements:

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

In addition to the filing requirements required by use permits of this Code, for projects within the city to which this chapter is applicable, the following materials are also required as part of a CUP application for the consideration of the planning commission, or the city council on appeal:

A.

A complete statement of the proposed project including, but not limited to, activities, facilities, and sites.

B.

A new or updated emergency response plan to deal with potential consequences and actions to be taken in the event of floods, earthquakes, hydrocarbon leaks or fires for the site. The emergency response plan shall be approved by the city's engineer and the Kern County Fire Department.

C.

A phasing plan for the staging of development that includes the estimated timetable for project construction, operation, completion, restoration, and, where applicable, the location and amount of land reserved for future expansion.

D.

A site plan showing:

1.

Surface property, easement, rights-of-way and pipeline right-of-way boundaries within the site.

2.

Proposed access road constructions or modifications and connections with city streets and roads and any existing private roads.

3.

Areas to be used for construction.

4.

Areas to be used for access and maintenance during pipeline operation within and adjacent to the site.

5.

Existing roads, and pipelines and pipeline rights-of-way, if any.

6.

Location and type of existing and proposed structures within fifty (50) feet of pipeline right-of-way.

7.

Location of existing and proposed wells and oil or gas containing equipment and their measured distance from nearby uses, including the closest residential or school property line.

8.

Proposed alteration of surface drainages within the site.

A contour map showing existing and proposed contours.

10.

A plan for parking on or off site.

11.

A map of all known, historic, or suspected active, idle and abandoned oil and gas wells or wellheads within the site and within seven hundred fifty (750) feet of the surface location of any existing or proposed new well within the site.

E.

Site operations plan containing process flow diagrams, piping and instrumentation diagrams, expected process flows (rates, pressures, composition, and shut-down/start-up procedures, quarterly/annual production, disposition, injection, and disposal).

F.

Plans with measures to be used to prevent or reduce nuisance effects (e.g., dust, fumes, glare, noise, odor, air pollutants, and vibration) and to prevent danger to life, environmental quality, and property, consistent with the Development Standards in this chapter.

G.

Estimates of the amount of cut and fill required by the proposed project.

H.

If the site is within six hundred (600) feet of any prohibited zoning as listed in Table 1-1, a plan for a community alert system (including new or utilizing existing systems, including but not limited to, those operated by the police, sheriff or fire department) to automatically notify area residences and businesses in the event of an emergency at an oil or gas site that would require residents to take shelter or take other protective actions.

I.

If any grading is proposed that results in the loss of vegetated, sandy, permeable ground areas, which could alter surface runoff at the site, a site-specific hydrologic analysis to evaluate anticipated changes in drainage patterns and associated increased runoff at the site.

J.

If the site is within six hundred (600) feet of any prohibited zoning as listed in Table 1-1, a quiet mode operation plan which includes, but is not limited to, the following noise reduction measures throughout the weekends and on weekdays between the hours of 6:00 p.m. and 8:00 a.m.:

Using signalers for all backup operations instead of backup alarms and turning off backup alarms;

2.

Using radios instead of voice communication;

3.

Minimizing crane use and pipe handling operations, pipe offloading from trucks and board loading to the maximum extent feasible and nighttime loading only for safety reasons;

4.

Prohibiting material and supply deliveries to the project site, other than along designated truck routes, between the hours of 6:00 p.m. and 8:00 a.m. on weekdays and prohibiting deliveries on weekends and holidays, with exceptions only for safety; and

5.

Limiting process alarms and communications over the broadcast system to the maximum extent feasible during all operations and use only for safety reasons.

K.

If the site is within six hundred (600) feet of any prohibited zoning as listed in Table 1-1, a photometric analysis, which compares the baseline of the existing light measurements with the proposed light spill that will result from the oil and gas site.

L.

An Environmental Quality Assurance Program ("EQAP"). (Ref. Section 17.46.32.1).

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

Processing of CUPs shall comply with California's Permit Streamlining Act requirements as consistent with this Code.

A.

The applicant may apply for:

1.

The drilling operations only;

2.

The production facilities only; or

Both the drilling and production facilities.

B.

The city manager will review the submitted application(s) for completeness in compliance with the filing requirements of Section 17.46.08.1 and any other applicable sections of the Code, and shall refer the filed CUP to appropriate city departments or local and state agencies, as appropriate, for review and comment.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

In addition to the requirements of a use permit by this Code, the planning commission shall approve a conditional use permit only if it is able to make affirmative findings of the following criteria:

1.

The proposed project shall be in conformance with requirements of other local, regional, or state entities;

2.

The project shall not be detrimental to the comfort, convenience, health, safety, and general welfare of the community, and will be compatible with the uses in the surrounding area;

3.

The project shall be in compliance with the development standards contained in Part 2 of this chapter, commencing with Section 17.46.22; and

4.

The project shall not result in an increased level of freshwater pollution or groundwater contamination in the immediate area or cause regulatory water standards at an existing water production well to be violated as defined in the California Code of Regulations, Title 22, Division 4, Chapter 15 and in the Safe Water Drinking Act, as they may be amended.

B.

As a condition of approval of a CUP, the planning commission shall consider and impose appropriate conditions as deemed reasonable and necessary to find consistency with the findings 1 through 4 above.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

The provisions of this section shall apply for all modifications or extensions requested for oil and gas operations.

B.

Any existing oil and gas operation that does not have a CUP or development agreement for the operation shall be required to comply with this chapter if any new development occurs at the existing oil and gas site.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Listing on permit. Any person who operates an oil or gas site that is subject to this chapter shall be listed as a permittee on the permit(s) issued for that facility.

B.

Acceptance of permit. Prior to being listed on a permit, any operator of an oil or gas site that is subject to this chapter shall provide the city with a letter from an authorized agent or officer of the operator formally accepting all conditions and requirements of the permit.

C.

Permits transferable. Any CUP issued to any oil and gas site authorized pursuant to this Code shall be transferable to a new operator provided that the new operator accepts and meets all of the conditions and requirements of the CUP and this chapter.

D.

Ongoing notification. All operators, and guarantors shall, as an ongoing requirement, notify the city manager in writing of any change in the information required by this section within thirty (30) days of such change.

E.

Change of operator. A change of operator shall require an application filed with the city within thirty (30) days prior to a change of operator. Upon approval by the city manager, such change of operator will become effective upon joint notice from the prior and new operators that the change of operator has become effective. An application is not required when the change of operator does not entail a substantive change to operations or personnel of the oil or gas site as determined by the city manager.

F.

Liability for compliance with permit conditions. Any operator listed on a permit pursuant to this chapter shall comply with all conditions of such permit. Failure to comply with such permit conditions shall subject the operator to the applicable penalty and enforcement provisions of this Code or other applicable ordinance for such permits.

G.

Liability for abandonment. The operator, as determined by the records of the city manager, of a facility or site subject to this chapter shall be responsible for the proper abandonment of the facility or site.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 Government Code Division 1, Chapter 4, Article 2.5 and the following additional requirements:

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Only a qualified applicant may file an application to enter into a development agreement. A qualified applicant is a person(s) who has a legal or equitable interest in the real property of the oil or gas site. The qualified applicant shall provide proof of ownership interest, proof of interest in the real property, and proof of the authority of the agent or representative, to act for the applicant. Said proof of interest and proof of authority shall be subject to review and approval by the city attorney.

B.

The city manager shall prescribe the form for each application, notice and documents provided for or required under these regulations for the preparation and implementation of development agreements. The applicant shall complete and submit such an application form to the city manager, along with a deposit for the estimated direct and indirect costs of processing the development agreement. The applicant shall deposit any additional amounts for all costs and fees to process the development agreement, including all legal fees, within fifteen (15) days of request by the city manager. Upon either completion of the application process or withdrawal of the application, the city shall refund any remaining deposited amounts in excess of the costs of processing.

C.

The city manager shall require an applicant to submit such information and supporting data as the city manager considers necessary to process the application.

D.

A community benefit assessment to evaluate the benefits the DA will provide to the community.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

The city manager shall endorse on the application the date it is received. An application or related document shall not be complete until an estimated deposit for the cost of processing has been paid to the city. If within thirty (30) days of receiving the application the city manager finds that all required information has not been submitted or the application is otherwise incomplete or inaccurate, the processing of the application and the running of any limits shall be suspended upon written notice to the applicant and a new thirty (30) day period shall commence once the required material is received by the city manager. If the city manager finds that the application is complete it shall be accepted for filing and the applicant so notified. The city manager shall review the application and determine the additional requirements necessary to complete processing of the agreement. After receiving the required information and the application is determined to be complete, the city manager shall prepare a staff report and recommendation to the

planning commission and city council stating whether or not the agreement as proposed or in an amended form would be consistent with policies of the city, this chapter and any applicable general or specific plan. The city attorney shall review the proposed development agreement as to legal form.

B.

Notice of a hearing regarding the development agreement shall be given by the city manager and shall comply with the requirements of Government Code Section 65867, as may be amended, except that the city manager, not the director, shall be responsible for providing notice.

C.

The planning commission shall review the proposed development agreement and provide a recommendation to the city council to approve, approve with modifications or deny the proposed development agreement. If the planning commission fails to take action within sixty (60) days of opening the hearing on the matter, such failure shall be deemed to have made a recommendation of denial to the city council unless the applicant has requested an extension of time, either in writing or on the record, which has been approved by the planning commission prior to the running of the 60^th day.

D.

The proposed development agreement shall be set for hearing and consideration before the council within sixty (60) days of the recommendation of the planning commission, unless the applicant agrees in writing to an extension of time with the city manager prior to the matter being heard by the council.

E.

Within ten (10) calendar days after the city enters into the development agreement, the city clerk shall have the agreement recorded with the county recorder. If the parties to the agreement or their successors in interest amend or cancel the agreement as provided in Government Code Section 65868, or if the city terminates or modifies the agreement as provided in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of the agreement, the city clerk shall have notice of such action recorded with the county recorder.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

After the city council completes the public hearing, the council may not approve the development agreement unless it finds that the provisions of the agreement:

1.

Are consistent with the goals, objectives, and policies of the general plan and any applicable specific plan;

2.

Are compatible with the uses authorized in, and the regulations prescribed for the zoned district in which the real property is located;

3.

Will not be detrimental to the health, safety, environmental quality, and general welfare of the community;

4.

Will not adversely affect the orderly development of property or the preservation of property values; and

5.

Provides for a penalty for any violation of the development agreement consistent with the provisions of Section 17.46.015.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

The provisions of Government Code Section 65868 shall apply for all modifications, extensions or other amendments of the terms of a development agreement subject to this chapter.

B.

Either party may propose an amendment or termination of an approved development agreement subject to the following:

1.

The procedure for amending or terminating, the development agreement is the same as the procedure for entering into an agreement in the first instance.

2.

The development agreement may be amended or cancelled only by the mutual consent of the parties, as provided in California Government Code section 65868.

C.

Nothing herein shall limit the city's ability to terminate or modify the agreement consistent with Government Code section 65865.1 or 65865.3 as may be amended.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

The city may choose to conduct a comprehensive performance review of any oil or gas drilling permit, CUP or DA every ten (10) 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.

If a periodic review reveals violation of the conditions of any city-issued permit, CUP or DA related to the oil and gas site operations, and if the city takes any subsequent and successful enforcement action based up that violation or related violations, the operator shall reimburse the city with funds necessary for the city to prepare the periodic review, whether performed through a third party or not. 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, but which do not constitute violations of any permit, CUP or DA, then the city manager may identify these deficiencies and bring forward recommendations of corrective actions to the planning commission for consideration, including to the planning commission for recommendation to the city council for consideration and prospective amendments of DAs, as deemed necessary.

B.

A permit, CUP, or DA may also be reviewed by the city manager at any time, if more than three (3) violations occur within a twelve (12) month period and the city manager determines that resolution of the violations may be addressed by a new permit and/or an amendment to the CUP or DA. If such a review reveals violation of the conditions of any city-issued permit, CUP or DA related to the oil and gas site operations, and if the city takes any subsequent and successful enforcement action based up that violation or related violations, the operator shall reimburse the city with funds necessary for the city to prepare the periodic review, whether performed through a third party or not. The city manager shall make a recommendation of corrective actions 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, including more frequent reviews.

C.

Nothing in this section shall limit the requirements of an operator with a DA to demonstrate to the city manager good faith compliance with the terms of the agreement at least every twelve (12) months as required by Government Code section 65865.1. If as a result of that review the city manager believes there is substantial evidence that the operator has not complied in good faith with the terms or conditions of the agreement, the city manager 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 city manager. 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Section 17.46.11 et seq. establishes procedures and provisions to achieve the timely abandonment of oil and gas related activities and land uses, and following the abandonment, the timely and proper removal of applicable oil and gas facilities (including wells, equipment and gas-related structures), reclamation and remediation of host sites, and final disposition of pipelines, in compliance with applicable laws and permits.

B.

The procedures ensure appropriate due process in differentiating idled from abandoned facilities and protecting the vested rights of permittees while also ensuring that sites with no reasonable expectation of restarting are removed, in compliance with the intent of abandonment permits. These procedures also ensure a process for abandoning or re-abandonment of portions of sites where oil and gas operations will continue on the site, as well as procedures for restoration and redevelopment of a site to other uses at the end of the economic life of oil and gas production.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

Oil and gas sites and operations subject to Section 17.46.11 and its subsections, shall include all permitted uses identified in Section 17.46.02.A of this Code, regardless of whether these uses were permitted in compliance with this chapter or any preceding ordinance. This includes, all pipeline systems, except for public utility natural gas transmission and distribution systems, that either transport or at one time transported natural gas, oil, produced water, or waste water that originated from a reservoir, regardless of whether these uses were permitted in compliance with this Code or any preceding ordinance.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

The city manager has the discretion to process and approve the application. Any person may submit an appeal to the city manager or the planning commission within fifteen (15) days of the city manager's notice of decision consistent with Section 17.46.06. Mandatory requirements of the Code are not subject to appeal. All procedures shall be consistent with the following requirements.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Complete abandonment of oil and gas operations: The operator shall submit an application to the city manager upon intentional abandonment of the entire oil and gas operation or site. The application for abandonment and site restoration proceedings shall be submitted sixty (60) calendar days prior to the planned shutdown of all the facilities.

B.

Partial abandonment of oil and gas operations: If any portion of the oil or gas site is being abandoned, or if a well is being re-abandoned, the operator shall submit an application to the city manager for partial abandonment of oil or gas operations. Said application shall be submitted not later than thirty (30) calendar days prior to abandonment or re-abandonment of wells involving no more than ten percent (10%) of the total number of wells on site or ten (10) wells, whichever is more; all other applications shall be submitted not later than sixty (60) calendar days prior to abandonment, re-abandonment or restoration.

C.

Other events requiring an application. The operator shall submit an application for abandonment, reabandonment, and site restoration proceedings to the city manager upon any of the following:

1.

Any event or condition designated in an existing city permit or entitlement that would require consideration of abandonment. The application shall be submitted sixty (60) days in advance of the event or condition. If the event or condition cannot be known until after it occurs, the application must be submitted within fifteen (15) days of the event or condition.

2.

Upon order of DOGGR. The application shall be submitted within thirty (30) days of a DOGGR order to abandon, re-abandon, and restore the site, provided, however, that if the operator timely appeals such an order of the DOGGR, it shall have no obligation hereunder until thirty (30) days after a final decision affirming such order.

D.

Nothing in this chapter shall limit the city's police powers. The city may require those measures reasonably necessary to address specific site or operational conditions that threaten public health, morals, safety or general welfare, which measures could include partial or complete abandonment.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

The application shall be in a form and content specified by the city manager and this section. The application shall contain the following:

A.

Name, address, and contact information for the permittee.

B.

Name, address, and general description of the permitted land use.

C.

Gross and net acreage and boundaries of the subject property.

D.

Location of all structures, above and underground, proposed to be removed.

E.

Location of all structures, above and underground, proposed to remain in-place.

F.

Location of all wells, including active, idled, abandoned or re-abandoned wells, including distances from site boundaries, and existing structures. Each well shall include the DOGGR well name and number, as well as the American Petroleum Institute (API) well number. If available, the location of the wells shall be identified with the name of the operator and well designation.

G.

Location of all city or public utility easements on or adjacent to the subject property that may be affected by demolition or reclamation.

H.

To the extent known, the type and extent of any contamination and proposed remedial actions to the level of detail that can be assessed through environmental review. This information does not require a new or modified Phase 2 site assessment in advance of any requirement by the fire department or State agencies with regulatory oversight of site assessments.

I.

A proposed abandonment and restoration plan that details the activities for the proposed action, including the following details: Hours of operation, disposition of equipment and structures proposed for decommissioning, and an estimated schedule for decommissioning the facilities or completion of the work.

J.

A proposed grading and drainage plan if drainage from the site will be altered.

K.

A proposed plan to convert the site to natural condition or convert to other proposed land use. In the latter case, include other applicable permit applications required, if any, for the proposed land use.

L.

A statement of intent regarding the disposition of utilities that served the oil and gas operations, including fire protection, power, sewage disposal, transportation, and water.

M.

Measures proposed to be used to prevent or reduce nuisance effects (e.g., dust, fumes, glare, noise, odor, smoke, traffic congestion, vibration) and to prevent danger to life and property.

N.

A copy of DOGGR approval to abandon, re-abandon or remediate well(s), such as an approval of a notice of intent of request to abandon.

O.

A leak test report for each abandoned well on the site that meets the requirements of Section 17.46.38.

P.

For abandonment or restoration in any circumstances where the permit is approved by the city manager without planning commission action, proof of mailed notice of intent to seek a permit to abandon or restore to the owner of record on the latest assessment roll for neighboring parcels within three hundred (300) feet of the oil and gas site property boundaries. The notice shall generally describe the scope of the activity being proposed.

Q.

Any other information deemed reasonably necessary by the city manager to address site-specific factors.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Application filing. The city manager shall process complete applications for permits after determining the applications to be complete in compliance with Section 17.46.011.3.2 of this chapter, and submit applications subject to initial planning commission review to the planning commission with a recommendation regarding approval if the findings in Section 17.46.011.3.4 are met. An application shall not be complete unless the applicant has made a deposit for the estimated direct and indirect costs of

processing the application. The applicant shall deposit any additional amounts for the costs to process the application, including legal review, within fifteen (15) days of request by the city manager. Upon either completion of the permitting process or withdrawal of the application, the city shall refund any remaining deposited amounts in excess of the direct and indirect costs of processing.

B.

Independent or concurrent processing of applications. For applications subject to initial planning commission review, the planning commission shall process complete applications for abandonment and site restoration permits independently of any other permit applications to develop the site in question, unless the city manager makes the determination that the concurrent processing of abandonment and site restoration permits and development permits for the same site do not unduly hinder timely restoration of abandoned sites or result in long delays in securing approval of development permits.

C.

Demolition and restoration permit shall supersede. Upon approval of a demolition and restoration permit subject to initial approval by the planning commission, or upon abandonment of operations, whichever occurs later, the demolition and reclamation permit shall supersede any inconsistencies in the discretionary permit approved for construction and operation of the facilities.

D.

Conditions of permit. In addition to any other requirements of this Code, any permit for abandonment, reabandonment or restoration shall be subject to the following requirements regardless whether initially approved by the city manager or the planning commission:

1.

Oil well abandonment shall be performed by oil service company contractors with a business license issued by the city.

2.

All equipment and surface installations used in connection with the well that are not necessary, as determined by the city manager or planning commission, for the operation or maintenance of other wells on the drill or operation site shall be removed from the site.

3.

The abandoned site or portions of the oil and gas site shall be restored to its original condition or as nearly as is practical given the nature of the location and continuing uses for an oil and gas site, so long as the restoration will not adversely impact ongoing oil and gas production operations.

4.

All sumps, cellars, and ditches which are not necessary for the operation or maintenance of other wells on the oil or gas site shall be cleaned out and all oil, oil residue, drilling fluid, and rubbish shall be removed to reduce hydrocarbons to standards acceptable to federal, state, or local agencies. All sumps, cellars, and

ditches shall be leveled or filled. Where such sumps, cellars, and ditches are lined with concrete, the operator shall cause the walls and bottoms to be broken up and all concrete shall be removed.

5.

The portions of the site not necessary for continuing oil or gas site operations shall be cleaned and graded and left in a clean and neat condition free of oil, rotary mud, oil-soaked earth, asphalt, tar, concrete, litter, and debris.

6.

All public streets, alleys, sidewalks, curbs and gutters, and other places constituting public property which may have been disturbed or damaged in connection with any operation, including operations for the abandonment or re-abandonment of the well shall be cleaned, and, except for ordinary wear and tear, shall be repaired and restored to substantially the same condition thereof as the same existed at the time of issuance of the permit, or at the time operations were first commenced in connection with the drilling, operation, or maintenance of the well.

7.

A copy of written approval of DOGGR confirming compliance with all state abandonment proceedings for all abandoned facilities must be furnished to the city manager.

8.

Proposed restoration will leave the subject site in a condition that is compatible with any existing easements or dedications for public access through, or public use of a portion of the property.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

In addition to the findings specified in the Code for a use permit, for permits the city manager or planning commission shall also make affirmative findings based on the following criteria:

A.

The subject site will be restored and remediated to its pre-project conditions unless areas within the site are subject to approved development, in which case restoration and landscaping of these areas will conform to the permitted development. In cases where development is proposed but not yet permitted, restoration of affected areas to natural conditions may be waived by the planning commission; provided, the development is permitted within five (5) years and the permittee has posted financial assurances acceptable to the city manager to ensure restoration to natural conditions if the proposed development is not permitted.

B.

The proposed restoration will leave the subject site in a condition that is compatible with any existing easements or dedications for public access through, or public use of a portion of the property.

C.

The permit conditions comply with Section 17.46.011.3.3 and contain specific enforceable requirements to ensure the timely completion of any abandonment or re-abandonment of wells, restoration activities or cessation of other oil and gas site operations subject to the permit.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Each operator shall submit copies of notices provided to or received from DOGGR, to the city manager, 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/re-abandon 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 city manager.

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 city manager 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 city manager, in writing, of the idling of any well. The operator shall notify the city manager 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 city manager within thirty (30) days of their date of documentation by a state or federal agency.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

All complaints related to activities regulated by this chapter received by the operator shall be reported within two (2) business days to the city manager. In addition, the operator shall maintain a written log of all complaints and provide that log to the city manager on a quarterly basis.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 city manager, 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 ten thousand dollars ($10,000) per day, per violation, until it is cured, but in no event, in an amount beyond that authorized by state law. The city manager 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. Nothing in this section shall preclude the use of use of fines as may be applicable from this code, including those related to nuisances, as long as said fines are not imposed in addition to fine schedule developed under this chapter for a similar violation.

2.

In the event of a violation of any of the city's permitting actions, a written notice of violation, and notice of the associated fine amount if the violation is not cured, will be sent to the operator by the city manager. If

the noted violation is not corrected within fifteen (15) calendar days (as may be extended by the city manager up to an additional thirty (30) days) to the satisfaction of the city manager, the city manager will provide the operator notice of the imposition of administrative fines. The operator shall be required to pay the fines to the city, and any fines which continue to accrue until the violation has been cured. Notwithstanding, if the violation creates an immediate danger to health or safety, the city (including a contractor hired by the city) may immediately abate the dangerous condition, and said costs of abatement shall also be paid by the operator.

3.

The operator has a right of appeal to the city manager or planning commission within fifteen (15) days of the written notice or contested determination of compliance. Decisions of the city manager not appealed within fifteen (15) days become final.

B.

Nothing in this section or ordinance 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 including code enforcement provisions as amended, as long as those provisions are identified. Revocations or suspensions of a permit or CUP may be done pursuant to Title 17-Zoning, as may be amended.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

Any violation of this chapter is hereby declared to be a public nuisance for the purposes of Section 8.12.020, and may be abated pursuant to the procedures set forth in Section 8.12.030 of this Code. 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Upon determination that any oil and gas production, processing or storage operation meets the definition of high risk operation from Section 17.46.004, the city manager shall give the operator written notice of the city manager's intent to determine the operation a high risk operation under this section. The intent of this section shall be to remediate the high-risk operation and bring the oil or gas site and the operator within normal, safe operating standards and protect the public safety, health and environment. The written notice of the intent to determine the operation a high-risk operation shall include:

1.

Facts substantiating the determination; and

2.

A notice regarding the right to appeal the determination to the commission within fifteen (15) days. During the pendency of any such appeal, the city manager's determination shall remain in full force and effect until affirmatively set aside by the planning commission. The planning commission's decision shall be supported by substantial evidence, and refusal by the operator to provide access to the operation to allow inspection or investigation to determine compliance as authorized by this Code or other law shall be deemed evidence the definition of a high risk operation has been met.

B.

Along with the determination of the site being a high risk operation, the city manager may take either or both of the following actions:

1.

An investigation of the causes leading up to the high risk determination;

2.

Require a mandatory restoration plan to be submitted by the operator. Such plan shall include, but is not limited to:

i.

A mandatory restoration schedule for bringing the site and operator within normal, safe operating standards. Such schedule does not supersede any timeline for abatement otherwise established for individual outstanding violations.

ii.

An audit of overall site operation(s):

a.

The audit shall be conducted by an independent third party approved by the city manager. Costs associated with the audit shall be borne by the operator;

b.

The audit shall identify and analyze the root causes leading to the high risk designation;

c.

The audit shall further identify and analyze other potential areas in overall site operation that could impact the site's ability to operate within safe and normal standards (e.g. personnel training, operational policies, internal procedures, etc.);

d.

Provide a plan for remediating all issues identified in the audit, including a mandatory schedule for remediating those issues. Such restoration plans shall be subject to approval by the city manager.

e.

The audit may be ordered in lieu of, or in addition to the investigation undertaken by the city manager.

iii.

Any other requirements the city manager deems necessary to bring the site and operation within normal, safe operating standards for the purposes of protecting the public safety, health and environment.

C.

The operator of the high risk operation shall carry out the approved restoration plan and shall be responsible for paying all reasonable costs associated with the implementation of the plan, including:

1.

City staff time in enforcing these provisions at an hourly rate that provides for full cost recovery of the direct and indirect costs. Staff time shall include, but is not limited to, the ongoing monitoring and verification of compliance with the approved restoration plan;

2.

Investigative, research (including legal research) and consulting costs associated with preparation of the restoration plan;

3.

Third party costs for investigation, consultation, engineering, clean-up, operator staff training, operations and all other related costs necessary to carry out the restoration plan;

4.

Any other costs necessary to remediate the high risk operation as ordered by the city manager.

D.

At the sole discretion of the city manager, at any time during which a site or operator is subject to this section, the city manager may require a bond be posted to cover the cost of remediating the causative problems of the high risk operation.

E.

The determination of high risk operations shall continue to apply until the goals and guidelines of the restoration plan established hereunder is achieved. The high risk operator shall notify the city manager when a milestone in the restoration plan has been satisfied. The city manager may conduct independent verification of the compliance upon such notification. The restoration plan may be amended from time to time as necessary to achieve the purposes of this section. Upon a determination by the city that the goals

and guidelines of the restoration plan have been achieved, the city shall notify the operator in writing that the site is no longer a high risk operation.

F.

Failure of the operator of a high risk operation to post a bond required under this section, prepare the restoration plan within a reasonable timeframe as ordered by the city manager, or to reasonably achieve the goals and guidelines of an approved restoration plan under this section, may be cause for a shutdown of the high risk operation(s) or any other petroleum operations located in the city that are co-owned or cooperated by the high risk operator, at the discretion of the city manager.

G.

The operator of a high risk operation shall compensate the city for any costs associated with the enforcement of this section within thirty (30) days of written demand by the city manager. Any city costs associated with enforcement of this section, which are not promptly paid by the operator shall be subject to enforcement by tax bill lien or other collection methods at the discretion of the city.

H.

The city may institute legal proceedings to require compliance provisions with this section.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 city manager consistent with the city manager's authority under Section 2.06.070 of this Code. 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 city manager.

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.

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 city manager, and shall be based on the nature and extent of the compliance actions required.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

A.

Sections 17.46.019 through 17.46.021 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 Arvin:

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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 re-abandonment), 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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 city manager consistent with the following bonding requirements:

1.

The city manager 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 Reports 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 half for immediate access and use in the event of an emergency as determined by the city manager.

3.

Prior to expansion of an oil or gas site, the operator shall apply to the city manager 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 re-assessed by the city manager 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 city manager 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. Upon application by the former operator, the city manager may provide for partial or complete release of the bond at an earlier date if a former site is being developed or redeveloped

consistent with Section 17.46.038(G) and construction of said development or redevelopment is completed,

6.

In no event shall the bonding amount required by the city be less than ten thousand dollars ($10,000.00) 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 and must be rated "A" or better by a nationally recognized bond rating organization. The city manager 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 type of legally adequate and binding financial mechanism, subject to city attorney approval, to satisfy the monetary assurance requirements set by the city manager to assure completion of the abandonment, restoration and remediation of contamination of the oil or gas site to the extent not fully covered by DOGGR bonds.

C.

For any evaluation of bonding amounts by the city manager 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, or deposit equivalent, with the city manager with the application, and shall also make any additional deposit(s) within thirty (30) days of written request by the city manager. The city manager may retain consultants or other experts in the industry to assist in deriving a commercially reasonable bond amount.

(Ord. No. 451, § 3(Exh. B, § 2), 7-17-2018)

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(ies) 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 ten (10) 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 city manager 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) non-payment, which shall provide a 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 city manager 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 city manager as required by Section 17.46.010 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 two million dollars ($2,000,000.00) per occurrence two million five hundred thousand dollars ($2,500,000.00) 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 two million dollars ($2,000,000.00) per occurrence and two million five hundred thousand dollars ($2,500,000.00)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 one million dollars ($1,000,000.00) 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 non-owned automobiles or other licensed vehicles (Section 1, subsection A.1 entitled "Any Auto")

3.

Worker's compensation insurance: Maintain the minimum statutory requirements, coverage which shall not be less than one million dollars ($1,000,000.00) for each occurrence.

4.

Excess (or umbrella) liability insurance: Minimum limit of five million dollars ($5,000,000.00) 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 re-working):

i.

Minimum limit of two million dollars ($2,000,000.00) per occurrence, with a maximum deductible of one hundred thousand dollars ($100,000.00) 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 sublimit of five hundred thousand dollars ($500,000.00) may be added.

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 city manager 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.

7.

Commercially available: If the city manager determines that certain types of insurance identified herein are not reasonably commercially available or necessary given specific field conditions, the city manager has the discretion to authorize substitute or equivalent types of insurance, to the extent there is a reasonable and relevant risk, or modifications to an amount that is commercially available, all subject to approval as to legal form by the city attorney.

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 city manager 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. No. 451, § 3(Exh. B, § 2), 7-17-2018)