§ 9515.1. High Risk Operations.

• A. Upon determination that any oil and gas production, processing or storage operation meets the definition of "high risk operation" from CMC § 9503 , the Petroleum Administrator shall give the operator written notice of the Petroleum Administrator'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 Petroleum Administrator's determination shall remain in full force and effect until affirmatively set aside by the Commission. The 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 Petroleum Administrator 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 Petroleum Administrator. 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 Petroleum Administrator;

       • e. The audit may be ordered in lieu of, or in addition to, the investigation undertaken by the Petroleum Administrator.

     • iii. Any other requirements the Petroleum Administrator 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 Petroleum Administrator.

• D. At the sole discretion of the Petroleum Administrator, at any time during which a site or operator is subject to this Section, the Petroleum Administrator 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 are achieved. The high risk operator shall notify the Petroleum Administrator when a milestone in the restoration plan has been satisfied. The Petroleum Administrator 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 time frame as ordered by the Petroleum Administrator, 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 co-operated by the high risk operator, at the discretion of the Petroleum Administrator.

• 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 Petroleum Administrator. 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. 16-1590, Exh. B (§ 1))