Chapter 19.21 — OIL AND GAS WELLS

Section

• 19.21.001 Position of Petroleum Administrator established

• 19.21.002 Purpose of chapter

• 19.21.003 Adopted codes, regulations, and standards

• 19.21.004 Definitions

• 19.21.005 Permits

• 19.21.006 Permit procedures

• 19.21.007 Specific conditions of approval relating to conditional use permits for oil and gas well

• operations

• 19.21.008 Fees relating to conditional use permits for oil and gas well operations

• 19.21.009 Notices

• 19.21.010 Spill control plan

• 19.21.011 State and federal laws

• 19.21.012 Service of notice

• 19.21.013 Extension or waivers

• 19.21.014 Vested rights/legal non-conforming operations

• 19.21.015 Penalties

• 19.21.016 Appeals

• 19.21.017 Spacing and location

• 19.21.018 Grading

• 19.21.019 Drilling and well servicing structures

• 19.21.020 Piping

• 19.21.021 Fire prevention and control equipment

• 19.21.022 Removal of drilling and service equipment

• 19.21.023 Surface inspections

• 19.21.024 Hazardous conditions or nuisances

• 19.21.025 Signs

• 19.21.026 Water quality

• 19.21.027 Notice

• 19.21.028 Insurance

• 19.21.029 Severability

• 19.21.030 Zoning provisions to be complied with; community leasing

• 19.21.031 Reserved

• 19.21.032 Determination of exemption

(A) The Petroleum Administrator shall have the primary responsibility and authority to administer and enforce this chapter. The Director of Planning and Building Services shall serve as Petroleum Administrator, unless another individual is appointed by the Board of Supervisors of the County of San Benito. (B) The Petroleum Administrator, or his or her assistants and deputies, in the performance of the duties herein prescribed, has authority to enter upon and into any and all premises under his or her jurisdiction at all reasonable hours for the purpose of inspecting the same to determine whether or not the provisions of this code and of all other applicable laws or ordinances are observed therein; provided that a reasonable effort to locate the operator or other person having charge or control of the property will be made to request entry and explain the reason for entering. (C) Notwithstanding the foregoing, if the Petroleum Administrator has reasonable cause to believe that there exists any condition on the property unsafe or dangerous which may require immediate inspection to safeguard the public safety, the Petroleum Administrator shall have the right to immediately enter and inspect such property and may use any reasonable means required to effect such entry and make such inspection. The operator shall permit such entry and hold harmless and indemnify the Petroleum Administrator and the county from any liability in connection with lawful entry hereunder. (D) In the event the Petroleum Administrator is unable to obtain compliance with any of the terms and provisions of this chapter or a condition of approval, related to health and safety, he or she may order immediate cessation of operations. In the event of non-compliance with this chapter or of a condition of approval not involving a health and safety risk, the Petroleum Administrator may request that the Planning Commission issue an order for the immediate cessation of operations. In the event of an order to cease operations is issued, the Petroleum Administrator shall coordinate with the operator to ensure that the operator completes the shut-down as soon it can be safely accomplished, and may require that the operator provide a schedule, subject to the Petroleum Administrator’s approval, of the timeline and events necessary to accomplish the shut-down. If such operations are not stopped or if resumed prior to written approval of the Petroleum Administrator, the Petroleum Administrator may request civil action by the office of county counsel, criminal prosecution by the office of the district attorney, or both such remedies, or may utilize any other available remedies available under the law. (Ord. 918, § 1(part), 2013)

(A) It is the purpose of this chapter, among other things, to protect the health, safety, public welfare, physical environment and natural resources of the county by the reasonable regulation of petroleum facilities and operations, including but not limited to: exploration; production; storage; processing; transportation; disposal; plugging and abandonment of wells; and of operations and equipment accessory and incidental thereto. (B) It is further the intent of the County Board of Supervisors that petroleum operations shall be permitted within this county (except where expressly prohibited herein), through a conditional use process further described in this chapter and in Title 25 (Zoning) of the San Benito County Code, subject to all applicable laws, regulations and requirements. (C) It is the purpose of this chapter to protect and balance the interests of the simple fee interest (commonly called surface owner) and mineral encumbered fee simple interests (commonly called mineral owners) in gaining access to and making use of the natural resources of San Benito County’s oil and gas reserves with the concerns of potential risk to the health and safety of the people of San Benito County. It is also the goal of this chapter to protect the water, natural resources, wildlife, and air quality of our county, to permit and supervise the extraction of oil and gas while recognizing that San Benito County is also the home of other unique natural resources, and to protect these resources for future generations while contributing to and acknowledging our dependence on and need for oil and gas and to maintain and enhance our lifestyles. (D) It is not the intent of this chapter to regulate public utility operations for the storage or distribution of natural gas. Any drilling, therein, however, shall be subject to this chapter. (E) All amendments to this code shall be applied in a prospective manner only, not retrospectively to situations, conditions or facts existing at the time of or prior to the amendment. Further, this chapter shall only apply to those applications deemed complete after the effective date of this chapter. (F) The regulations contained within this chapter shall apply to equipment, structures, and appurtenances necessary for: the drilling of a new well, facilities for the production of oil and gas from a well; reentering a previously abandoned well for the production of oil and gas; structures, equipment, or facilities necessary and incidental to the separation of oil, gas, and water (e.g., oil and gas separation plant); injection wells and incidental equipment necessary for enhanced oil recovery or disposal of production wastes including but not limited to the equipment and facilities necessary for waterflooding, steam injection, air injection, natural gas, carbon dioxide injection, or introduction of polymers or other agents; pipelines that are incidental to production operations; storage tanks necessary or incidental to oil and gas separation, or temporary storage of separated hydrocarbons, and equipment for transfer of the produced hydrocarbons to pipelines or tanker trucks; proposed access

roads; oil spill containment and recovery equipment including but not limited to central office space and vehicles for the storage of floating air/water separators, pumps, generators, hosing, assorted absorbent materials, steam cleaners, storage tanks, and other land and wildlife cleanup equipment; co-located treatment and processing facilities located on the drill site determined by the Planning Commission to be incidental to proposed production operations; and hydraulic fracturing, or use of any secondary or enhanced recovery methods of any new or existing well. (Ord. 918, § 1(part), 2013)

This chapter, insofar as it regulates petroleum operations also regulated by the California Department of Conservation, Division of Oil, Gas, and Geothermal Resources (hereinafter “DOGGR”), is intended to supplement such state regulations and to be in furtherance and support thereof. This chapter shall be interpreted to be consistent with all provisions of state and federal law applicable to oil/gas well operations in the county, whether such exists on the date the ordinance codified in this chapter becomes operative or subsequently thereafter. Accordingly, where there is conflict with state or federal regulations or laws, such state or federal regulations or laws shall prevail over any conflicting provisions of this chapter or contradictory prohibitions or requirements made pursuant thereto, except where this chapter lawfully imposes additional or greater requirements pursuant to the county’s exercise of its inherent land use and police powers. (Ord. 918, § 1(part), 2013)

For purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section. APPLICANT. The applicant for the conditional use permit. An APPLICANT shall not be interpreted to include the surface owner, unless the surface owner is the applicant for the conditional use permit. THE COUNTY. The County of San Benito. DRILLING. Any boring into the earth for petroleum operations; but excluding any well drilled solely for the production of fresh water. ENHANCED RECOVERY WELLS (also known as SECONDARY OR TERTIARY RECOVERY). Inject brine, water, steam, polymers, carbon dioxide, or other gasses into oil-bearing formations to recover residual oil and in some limited applications natural gas. The injected fluid thins (decreases the viscosity) or displaces small amounts of extractable oil and gas, which is then available for recovery. FACILITIES. Include tanks, compressors, pumps, vessels, and other large equipment or structures pertinent to oil field operations sited at a single location which are related to up to six wells. HAZARDOUS MATERIALS. Materials that, because of its quantity, concentration, or physical or chemical characteristics, pose a significant present or potential hazard to human health and safety or to the environment if released into the workplace or the environment, or as otherwise defined by the California Health and Safety Code. HYDRAULIC FRACTURE or HYDRAULIC FRACTURING. A technique used in stimulating a formation or zone that involves the pressurized injection of hydraulic fracturing fluid and proppant into an underground geologic formation in order to fracture the formation, thereby causing or enhancing the production of oil or gas from a well. IDLE WELL and LONG TERM IDLE WELL. Shall be defined as set forth in Cal. Public Resources Code § 3008(d) and (e). INCIDENTAL EQUIPMENT AND APPURTENANCES. Facilities for the collection and/or separation of petroleum from water or other materials; for storage of water, petroleum or unrefined petroleum byproducts for recycling, re-pressuring or injecting such material for underground disposal, use or storage; and for preparation of such products for shipping and storage. It shall include lease facilities, processing plants, lease tanks, pipelines, test equipment, and the like. INJECTION WELL. A well used for the purpose of injecting fluids or gas into the ground. OPERATOR. Shall be defined as set forth in Cal. Public Resources Code § 3009. PERSON. Shall be defined as set forth in Cal. Public Resources Code § 3005. PETROLEUM. Includes crude oil, natural gas and petroleum derivatives. PETROLEUM OPERATIONS. All activities in connection with the exploration, drilling for and the production of petroleum, gas and other hydrocarbons, together with all incidental equipment and appurtenances thereto until the abandonment of all wells in accordance with applicable law. PIPELINES. For the purposes of this chapter, shall mean all flow lines or tubes for the transportation of hydrocarbons or their by-products or of materials used in the production of unrefined hydrocarbons. PLUGGED AND ABANDONED WELL. A well that is considered “plugged and abandoned” by the DOGGR as evidenced by the issuance of a report of well abandonment and which has complied with all provisions of this chapter.

POLLUTION. Such contamination, or other alteration of the physical, chemical, or biological properties of any surface or groundwater within the county, or such discharge of any liquid or gaseous or solid substance into any waters within the county as will create a nuisance or render such waters harmful or detrimental or injurious to public health, safety or welfare, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish or other aquatic life. PPM. Parts per million. PRIMARY RECOVERY PROJECTS. Include any such operation where naturally occurring hydrocarbons are produced by natural flow, except a project utilizing a pumping unit or submersible pump which provides “artificial lift” shall also be considered a PRIMARY RECOVERY PROJECT. PRODUCED WATER. Water produced with oil and gas. RE-DRILLING. The deepening of an existing well or the creation of a partial new well bore some distance below the surface of the earth. Typically that portion of the well bore below the kickoff point for the re-drill has been plugged and abandoned to DOGGR standards. SECONDARY CONTAINMENT. Shall be defined as set forth in Cal. Code of Regulations Title 14, § 1760. TANK SETTING. The area on a lease where tanks are located for collecting, testing, treating and/or shipping crude oil or other fluids incidental to petroleum operations. WELL. A hole, including a core hole, drilled or being drilled into the earth for the purpose of obtaining and removing or reintroducing into the ground, any substance for petroleum operations or which is to be used as an accessory to the production of petroleum, including the production, injection or disposal of USEPA designated Class II materials; but excluding any well drilled solely for the production of fresh water. WELL SITE. The premises used during the maintaining, operating and producing of a well or wells located thereon. (Ord. 918, § 1(part), 2013)

(A) A conditional use permit in accordance with Title 25 must be obtained prior to commencing operations. (B) Modification of conditional use permits pertaining to petroleum operations. When there is any proposal to engage in a secondary or enhanced recovery operation, or hydraulic fracturing, not specifically described and approved in the original conditional use permit; or when there is any increase in the nature or intensity of land use on the site beyond that already analyzed and approved by the county in a previously approved use permit, a modification of the conditional use permit shall be required prior to commencement of operations. (Ord. 918, § 1(part), 2013)

An application for a conditional use permit, or amended conditional use permit, for petroleum operations, including oil and gas wells, shall include all of the following, unless waived or deferred in the discretion of the Petroleum Administrator, except fees shall not be waived or deferred without the prior approval of the Board of Supervisors. (A) Plot plan showing the well location, including GPS coordinates, nearest adjacent well, and any buildings, structures, and/or natural or artificial features within 200 feet. (B) Fees are payable to the County of San Benito, according to the latest fee resolution adopted by the Board of Supervisors. (C) Such other pertinent and reasonable information as may be required by the Petroleum Administrator, including but not limited to environmental data. (D) One copy of each of the DOGGR notice of intent to drill new well and the DOGGR permit to conduct new well drilling operations if applicant possesses those notices at the time of application. If not provided at the time of application, applicant shall provide such notices to the county within ten days after providing/receiving such notice to/from DOGGR. (E) A drilling plan. Drilling plans shall include, but not be limited to: (1) A location map. (2) Name and address of all parties of interest, including surface property owners and owners of all petroleum and other mineral interests as shown on recorded title, and a copy of the title report or short form mineral lease. (3) A description of the use, size, height, and location of all proposed wells (as defined and additionally all water wells and proposed injection wells), drilling pads, production equipment, pipelines, processing equipment, ancillary structures, containment structures above and in-ground, and limits of work areas for all phases of the project. (4) A description of the road system and/or road improvements that will be necessary including ingress, egress, road width and surface treatments.

(5) A description of the expected number of vehicle trips required to implement the proposed project (peak and daily average trip). Include trips for: (a) Site preparation; (b) Drilling; (c) Production; (d) Processing; and (e) Maintenance. (6) Geological information regarding the area in which drilling is to occur, including identification of known earthquake faults as recognized by USGS, wells, or abandoned wells. (7) Distances of project boundaries to property lines, residences, businesses, and other uses. (8) A description of the measures proposed to prohibit public access to the site during drilling and all operational activities. (9) A description for all phases of the project including an estimate of how long the drilling rig will be located on site (including assembly, disassembly, and removal) and estimate of how long the drilling program will take. Descriptions of any subsequent phases shall be required. (10) Identify water source(s) and volumes to be used in all processes, including dust control and any injection down- hole. Identify ownership of the source or commercial provider, and the method of delivery and distribution. (11) A description of the disposition of the oil, natural gas, natural gas liquids, and produced water extracted from the well(s), including mode and route of transportation. (12) A list of any hazardous materials proposed to be stored/discharged/produced on the property and list and quantify all chemicals to be used and how and where they would be stored onsite, subject to the provisions of division (F) of this section. Describe the proposed use and method of storage and disposal. Indicate if diesel or radiological trace elements are used. (13) An emergency spill contingency plan consistent with Cal. Code of Regulations Title 14, Division 2, Chapter 4, § 1722, that would address unforeseen discharges of oil, produced waters, chemical suites or other materials. (14) A description of any secondary or enhanced recovery operation or hydraulic fracturing (anything that enhances the flow of production) proposed as part of this project. This description shall identify what means will be employed; the maximum length of any potential horizontal well, all substances, including chemicals and fluids to be used as part of the secondary or enhanced recovery operation, and source(s) of water. In identifying chemicals, applicants must identify each chemical that may be used, except as set forth in division (F) below. (15) A description of gases and products expected to be found and extracted at the well site. (16) A description of the maximum expected pressures at the well head and pipeline. (17) A list of equipment for exploration and production (tanks, pipelines, number of wells and well cellars, loading racks, combustion equipment) and indicate the equipment’s operational characteristics (size/capacity, horsepower rating, etc.): (a) Description of how the drilling rigs will be powered (i.e., via electricity or via internal combustion engine) and whether the rigs will be registered with the California Air Resources Board’s Portable Equipment Registration Program. (b) Calculations for criterion pollutants and greenhouse gas (GHG) emissions. (18) A process flow diagram for the oil production and gas handling equipment at the site. (19) Identification of the watershed in which the well will be located. (F) If the chemical(s) required to be disclosed by divisions (E)(12) and (E)(14) of this section are protected as trade secret information, as defined in Cal. Civil Code § 3426.1, subdivision (d) or Cal. Penal Code § 499c, the applicant, or his or her agent, may, upon submittal of declaration under the penalty of perjury that the chemical is protected trade secret information, disclose instead the chemical family or similar descriptor associated with the trade secret constituent. (Ord. 918, § 1(part), 2013)

(A) Financial assurances/security to guarantee performance. Any applicant receiving a new conditional use permit involving oil and gas wells, or receiving an amendment or modification to an existing use permit relating to oil and gas wells, after the effective date of this chapter, shall provide to the county’s Planning Department financial assurances in the amount of $15,000 per facility for six and fewer facilities. For applicants with seven or more facilities, the applicant may provide a blanket bond in the amount of $100,000 for all of applicant’s facilities under a specific conditional use permit. The proof of financial assurances shall be provided to the Planning Department prior to beginning any work on site. If more than one bond is provided, each bond shall allow the bond to be drawn upon for any facility authorized under the conditional use

permit or relating to the conditional use permit as set forth below. The financial assurance shall be in addition to any bond required by the state. The applicant may post security in the form of cash, a surety bond, trust fund, irrevocable letter of credit from an accredited financial institution or other method acceptable to the county, in a form approved by County Counsel. The financial assurances shall remain in effect during the entire time the permit is in force and effect and until the facility has been properly abandoned in conformity with all regulations of the Division of Oil, Gas and Geothermal Resources (DOGGR) of the State of California and notice to that effect has been received by the county. In the event that the bond is drawn upon, a new bond in the required amount shall be obtained within seven calendar days. The financial assurances shall guarantee the faithful performance of all of the conditions of the permit, and of all other pertinent county rules or regulations. The financial assurances shall further secure the county against all costs, charges and expenses incurred by it by reason of the failure of the permittee to comply fully with the provisions of the San Benito County Code and conditions of approval, and shall guarantee payment of all costs for removing, dismantling or demolishing, in strict accordance with the rules and regulations of DOGGR or any regulatory authority having jurisdiction, any structures erected on the premises, on the abandonment or cessation of the drilling activity on the permitted premises. The financial assurances shall also guarantee the payment of all costs of returning the premises to substantially its original condition, free of all oil, rotary mud, oil-soaked earth, asphalt, concrete, litter, debris and other substances caused by the drilling or pumping activity. Substitute financial assurances may be filed in lieu of any existing financial assurance if it is accepted by the county, and in a form approved by County Counsel; the existing financial assurance shall only be exonerated if the Planning Director finds that all of the conditions have been satisfied and that no default exists as to the performance upon which the financial assurance is conditioned. A new financial assurance shall be provided to and accepted by the county upon a change of ownership prior to the existing bond or financial assurance being exonerated. (B) Well site restoration. Well site restoration shall be in compliance with all state laws and regulations, as well as with any other applicable federal or local law, rule or regulation. Applicant shall provide county, within ten business days, a copy of all documents submitted to the DOGGR regarding restoration or reclamation of the well site. Applicant shall provide county notice when final restoration of the well site is completed. (C) All conditional use permits granted pursuant to Title 25 for oil and gas well operations shall contain the following conditions: (1) Operations shall meet requirements of the Division of Oil, Gas and Geothermal Resources (DOGGR) and all regulatory agencies of the state that have authority over the production of petroleum resources. (2) The operator shall file an annual report between January 1 and March 1 with the County Assessor to coincide with the yearly oil production and gas production report filed with the Division of Oil and Gas of the state. (3) No vibrations, dust, odor or other harmful effects shall be created which affect materially any person living or working outside the project area. Operations shall comply with the county’s noise ordinance. (4) The conditional use permit approval shall specify how all material disturbed by the drilling process and/or water used in the drilling process shall be disposed of. The conditional use permit shall specify what material and fluids shall be allowed to remain on site, and what materials/fluids shall be removed to an appropriate landfill. All material removed from the earth as a part of the drilling and recovered water shall be disposed of as set forth in the conditional use permit approval. (5) Additional conditions of approval may include, but shall not be limited to the following: (a) Requirements to install impervious liners in sumps to prevent seepage or fencing beyond that which would be required by law; and (b) Visual screening or landscaping to hide operations and equipment from view; and (c) Requirements to reduce any impacts identified in the environmental analysis; and (d) Any specific requirements regarding fire-fighting equipment that shall be provided and maintained; and (e) Requirements to install sanitary facilities in a manner approved by the county’s Health Department; and (f) Other conditions deemed necessary to protect the public health, safety and general welfare. (Ord. 918, § 1(part), 2013)

(A) An amount, established by a resolution of the Board of Supervisors of this county, shall be charged for each conditional use permit application. The fee shall be based on a time/materials basis as may be established from time to time by the Board of Supervisors. Such fees shall cover all actual costs of any outside consultants hired to assist county with project-related activities. (B) Mitigation monitoring fees. The county may charge reasonable fees to recover the cost of the program. Such fees shall be imposed to recover the costs of implementation and enforcement of mitigation measures that require field inspection, continuous or long-term monitoring, or the preparation and/or review of reports by county staff and/or outside consultants retained by the county. Any such fees shall be approved by the Board of Supervisors before being imposed. (C) Inspection fees. The county recognizes that the DOGGR performs inspections of each lease, well and facility and well and operations specific inspections for well drilling, re-working, and plugging activities. In the event that DOGGR fails to

make the required inspections, or at the discretion of the Petroleum Administrator, each lease site, each tank site, producing well site, idle well site and lease tank site (including headers and associated pipelines), may be inspected for the purpose of ascertaining conformity with the minimum standards as set forth in this chapter and for compliance with all terms and conditions of the approved conditional use permit. To meet the expense of such inspection, the operator shall pay to the Department of Planning and Building Inspection Services an inspection fee to be established by a resolution of the Board of Supervisors of this county. Unless a different schedule is established by the Board of Supervisors in the future, it is the goal of the county that all active or producing wells should be inspected at least on an annual basis to ensure compliance with this chapter and all conditions of approval. (D) Enforcement fee. Any person or entity, whether as principal, agent, employee, or otherwise, who acts or fails to act in violation of any provision of this chapter, Chapter 21.01 (Building Regulations), or Chapter 19.17 (Grading, Drainage, and Erosion Control), or any other provision of the San Benito County Code, any of the adopted Uniform Codes, or state or federal regulation and statutory law shall be liable for and obligated to pay to the county all reasonable costs incurred by the county in obtaining abatement or compliance which is attributable to or associated with the enforcement or abatement action, whether such action is administrative, injunctive, or legal, and for all damages suffered by the county, its agents, officers, and employees as a result of such violation or efforts to abate the violation. (Ord. 918, § 1(part), 2013)

(A) Each operator must submit the following notices, in writing, to the Petroleum Administrator, at least 15 days prior to commencement of said operation/occurrence: (1) Change of idle well status to producing or injection status. (2) Intention to engage in any secondary or enhanced recovery operations or hydraulic fracturing, when that process has been studied under the California Environment Quality Act as part of the project and/or approved as part of the conditional use permit. If the secondary or enhanced recovery operation, or the hydraulic fracturing has not been approved, an amended use permit shall be required, unless the County Planning Commission provides applicant in writing a determination that the secondary or enhanced recovery operation or the hydraulic fracturing proposed is already a vested right based upon evidence provided by the applicant. (3) Intention to install, remove, re-start or replace permanent production facilities (piping, vessels, tanks and equipment) that have been idle for more than five years. (4) Transfer of operator. 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 Petroleum Administrator within ten days of the transaction closing date. The notice shall contain the following: the names and addresses of the person from whom and to whom the well(s) and property changed; the name and location of the well(s) and property; the date of acquisition; the date possession changed; a description of the properties and equipment transferred; and the new operator’s agent or person designated for service of notice and his or her address. (5) Notification of reportable oil and/or gas releases must be given to the California Emergency Management Agency and by contacting the agencies specified in the operator’s oil spill contingency plan, and notice shall be given to the Petroleum Administrator within 72 hours of the release. Additionally, the operator must submit a copy of the community awareness and emergency response (CAER) form within 24 hours. (B) Each operation must submit the following documents to the county within ten days of submitting or receiving such documents to/from DOGGR: (1) DOGGR notices, approvals, and/or permits including, but not limited to: notice of intent to drill new well, notice of intent to plug and abandon well, approval to conduct new well drilling operations, and/or approval to conduct plugging and abandonment operations; and (2) Any DOGGR final summary of operations and history report on new well completion and DOGGR report of well abandonment and history report on abandonment operations; and (3) Any citations, notices of correction or violations, or other notices indicating changes or improvements needed by operator, issued by DOGGR or any other federal, state or local agency; and (4) Any reports or other documents prepared as a result or documenting DOGGR’s annual inspection. (C) Through the future adoption of a “Document Submission Policy” by resolution, the Board of Supervisors may waive or clarify the requirement to submit any of the above documents, allow the electronic submission of these documents, or allow the provision of electronic links to filed documents. (Ord. 918, § 1(part), 2013)

Each operator shall have on file with the Petroleum Administrator a copy of their spill prevention, control and countermeasure plan(s) (SPCC plan) required by the United States Environmental Protection Agency (USEPA). In addition,

every operator shall submit to the county, the spill contingency plan (SPC) submitted to the DOGGR in compliance with Cal. Public Resources Code § 3270.1. (Ord. 918, § 1(part), 2013)

At all times, applicant shall comply with all state, federal, and local laws and regulations. (Ord. 918, § 1(part), 2013)

Every operator of any well shall designate an agent who is a resident of the state upon whom all orders and notices provided in this chapter may be served in person, or by registered or certified mail. Every operator so designating such agent shall, within ten days, notify the Petroleum Administrator, in writing, of any change in such agent or such mailing address, unless operations within the county are discontinued. Service by registered or certified mail, or in person, to the agent so designated, shall constitute service for all purposes of this chapter. (Ord. 918, § 1(part), 2013)

(A) Whenever, in this chapter time limits are specified for the commencement or completion of any acts or for ceasing to perform any acts, such time limits may be extended in writing by the Petroleum Administrator for good cause shown. (B) The Planning Commission or the Board of Supervisors may also modify or waive compliance with any of the terms or provisions of this chapter when such provisions are rendered unnecessary or unreasonable by the special features of the well site (such as topography, nature of the use, proximity to buildings on adjoining property, height, type of buildings, proposed mitigation features and the nature of the oil field development) and the modification or waiver is deemed to be reasonable and in accordance with good oil field practice. In connection with such modification or waiver, the Planning Commission or Board of Supervisors may require equivalent measures when they are needed. (C) The Petroleum Administrator may only waive or modify terms or provisions within this chapter for which he or she has been delegated responsibility. In connection with such modification or waiver, the Petroleum Administrator may require equivalent measures when they are needed. (Ord. 918, § 1(part), 2013)

No person who obtained a vested right to conduct drilling operations prior to the effective date of this chapter, shall be required to secure a new conditional use permit for those drilling operations already vested, so long as the vested right has been exercised continuously without being abandoned and as long as no substantial changes have been made in the operation since the vested right was first obtained. Absent a finding of a vested use by the Planning Commission, a new, changed, or modified method of a secondary or enhanced recovery or the use of hydraulic fracturing shall be deemed to be a substantial change which would require an amendment to an existing conditional use permit. Legal non-conforming oil/gas operation shall not be expanded or altered without compliance with this chapter. (Ord. 918, § 1(part), 2013)

(A) Violation; criminal penalties. Any person violating any provisions of this chapter is guilty of a misdemeanor and, upon conviction thereof, shall be punished as provided in Chapter 1.03 of this code and/or state law. (B) Violation; public nuisance. Any violation of this chapter is unlawful and a public nuisance and shall be abated, eliminated and enjoined as provided in Chapter 1.03 of this code and/or state law. (C) Remedies; cumulative. Except as otherwise provided by law, the remedies in this chapter are cumulative and not exclusive. Nothing in this chapter is intended or shall be deemed or construed to limit or impair the ability of the county, or any of its officers, agents or employees, to take any administrative or judicial action, otherwise authorized by law, Chapter 1.03 of this code and/or state law to abate any public nuisance. (D) Each day of noncompliance constitutes a separate offense. (Ord. 918, § 1(part), 2013)

(A) Appeals from decisions, interpretations, or acts of the Petroleum Administrator or the Planning Commission shall be filed in writing to the Clerk of the Board of Supervisors. Appeals shall be filed within ten days of the act by the Petroleum

Administrator or the Planning Commission. The Board of Supervisors shall serve as the “local appeals board” which is hereby expressly declared to be the local appeals board referred to in Cal. Health and Safety Code §§ 17920.5 and 17925. Such board of appeals is hereby authorized to hear appeals regarding the petroleum requirements of the county and shall have all of the power and authority conferred on a local appeals board under the said sections of the Health and Safety Code. All decisions of the Board of Supervisors shall be deemed final, subject only to judicial review. (B) Any appeal to the Board of Supervisors hereunder shall be posted as required under the Brown Act. In cases where the Petroleum Administrator or the Planning Commission deems compliance with his, her, or its decision to be necessary to prevent an imminent threat to public health or safety or to prevent immediate environmental damage, the Petroleum Administrator or the Planning Commission may require compliance with his, her, or its decision pending outcome of an appeal to the board of appeals. (C) A fee, as adopted by the Board of Supervisors, shall be paid to the Clerk of the Board at the time of application for an appeal hearing. The hearing fee shall be refunded in cases where the applicant has substantially prevailed. (Ord. 918, § 1(part), 2013)

No wells, containment facilities used for storing petroleum (e.g., storage reservoirs, pits, storage tanks, and excavations), or above-ground equipment shall be located within 500 feet of the nearest edge of the normally traveled portion of any public road, road offered for dedication, highway, property line, or building (except as may be incidental to the operation thereof). The Planning Commission may consider granting an exception to this 500 foot setback area if the site is constrained by environmental hazards (as defined in the open space element of the county’s general plan), or if other features of the site, such as habitat areas, topography and landscaping or other vegetation make placement outside the setback area not desirable. (Ord. 918, § 1(part), 2013)

(A) Roads and other excavations and the well site shall be planned, constructed and maintained to control dust, mud, erosion, noise, and debris, so as to result in the least possible disfigurement of the environment and to keep soil erosion and aesthetic disfigurement to a minimum. The location and construction of all roads, culverts, excavations and drainage structures shall be subject to the approval of the Petroleum Administrator and such special drainage, planting, spraying or control measures shall be installed as may be necessary to prevent excessive soil erosion or other damage. Any grading associated with petroleum operations may require a grading permit as specified in the San Benito County Code. Soil compaction shall be sufficient to handle any and all equipment expected on-site, as well as expected future uses of the land. All fill within a drill site comply with all local, state, or federal laws and regulations. (B) Soil erosion control plans, including provisions for stabilizing filled and excavated areas by planting and other means, installation of drainage ditches and culverts, and construction of dikes, levees and debris dams, will be consistent with methods and techniques recognized by county, state and federal authorities. Each operator will notify the Petroleum Administrator as to the responsible individual appointed to represent the operator concerning these problems. (C) Roads to/from the well site shall be constructed sufficient to accommodate emergency vehicles to/from the well site at all times. (Ord. 918, § 1(part), 2013)

All drilling and well servicing structures shall be portable, be of proper design, and be maintained to sufficiently perform the intended job. The Petroleum Administrator may require proof as to the capacity of any equipment. (Ord. 918, § 1(part), 2013)

All piping systems shall be designed, constructed, operated and maintained in accordance with all applicable state and federal laws and regulations. If the pipeline systems are found to be unreliable or deficient, the Petroleum Administrator may order the repair or replacement of the pipeline section or system, as necessary to remedy the situation. The Petroleum Administrator may require tests and inspections to establish the reliability of pipeline systems not specifically regulated or inspected by state or federal authorities (including testing, treating, and storage facilities). (Ord. 918, § 1(part), 2013)

A minimum of two fire extinguishers shall be maintained at each tank battery and at all well locations where drilling, servicing or repair work is being conducted. Each such extinguisher shall have a minimum classification of 10 ABC as set

forth in National Fire Protection Association No. 10, “Standard for the Installation for Portable Fire Extinguishers,” and any amendments or successors thereto. No waste gas venting will be permitted, unless specifically authorized by DOGGR or state law. The well site shall be kept clear and clean of all grass, brush, refuse or other inflammable materials. (Ord. 918, § 1(part), 2013)

Drilling operations in any well shall be diligently prosecuted until the well is completed or abandoned. All drilling equipment and the derrick shall be removed from the drill site and leased premises within 60 days following the completion or abandonment of any well, unless the drilling equipment and derrick are stored behind a solid fence, allowed by the use permit, or permitted to be temporarily stored on the drill site by written authority of the Petroleum Administrator after the derrick has been lowered. Service equipment for existing wells will likewise be removed within 60 days of completion of the rework, unless otherwise permitted by the Petroleum Administrator. Idle equipment remaining on the property for more than 60 days shall be stored and maintained behind a solid fence which blocks the equipment from view if that equipment is located less than 200 feet to any occupied structure, property line, or road. (Ord. 918, § 1(part), 2013)

Well sites and well operations may be subject to periodic inspections by the Petroleum Administrator. Any noncompliance items noted during an inspection may be brought to the attention of the operator, agent, or their representative for corrective action. Failure to correct noncompliance items is a violation of the provisions of this code, and thereby constitutes grounds for an order to cease noncompliant operations and/or other penalties as specified in this chapter. (Ord. 918, § 1(part), 2013)

(A) In the event that the Petroleum Administrator determines at any time that any operations covered under this chapter constitute an imminent threat to public health, safety or the environment, he or she shall have the right to compel the operator to take appropriate action, within a time frame identified by the Petroleum Administrator, to mitigate the situation. In the event that the operator cannot be located, the Petroleum Administrator may take the necessary steps to mitigate the immediate threat and stabilize the situation, until such time as the operator can respond. The operator shall be responsible for reimbursement of all reasonable costs to the county associated with the mitigation activities. (B) In the event that substantial damage to the environment and/or public health results from the activity listed above, the operator shall be responsible for remediation of such damage within a reasonable period of time. If, in the judgment of the Petroleum Administrator, such remediation activities are not initiated within a reasonable period of time, the Petroleum Administrator may issue a notice of intent to initiate remediation and that the operator shall be responsible for funding the remediation. The county shall issue said notice at least 30 days prior to commencement of remedial activities. The operator may respond by 1) initiating remedial activities within the 30-day period, or 2) filing an appeal. In the absence of one of these actions the county may order the remediation at the cost of the operator. Notwithstanding the above, the 30-day notice period may be waived by the County Board of Supervisors in cases of imminent danger to environment or to the public. In such case, the Petroleum Administrator shall specify the time period in which the operator must initiate remedial action or file an appeal. (Ord. 918, § 1(part), 2013)

Operators must meet all DOGGR, OSHA and EPA sign requirements. (Ord. 918, § 1(part), 2013)

(A) Except as expressly allowed for by other applicable laws or regulations or except as expressly authorized by a permit issued by another regulatory or governmental agency, it shall be unlawful (1) to dispose of any water produced from drilling operations or any other mineral or material in such a manner that it may be injurious to animals, soil, plant life or if the same will pollute any water supply; or (2) for any person to pollute or allow pollution from petroleum operations into any waters within, or watershed area in, San Benito County. Further, all well drilling or petroleum operations which may penetrate near or into usable water-bearing strata including, without limitation, wells, shall not subject the groundwater basin or sub-basin to pollution or contamination. (B) For projects utilizing secondary or enhanced recovery operations or hydraulic fracturing, water quality testing of the surrounding fresh water aquifer up to a distance of one mile from the well-site in any new well fields, may, if specified by the county as a condition of approval during the approval process, be required before, during (at the discretion of the Petroleum Administrator), and after the proposed process and upon capping or abandonment of the well in order to ensure that the

project does not impact water quality. Applicant shall allow water quality testing to be performed on the subject property in any well which applicant has legal right to access by an individual or entity designated by the Petroleum Administrator. In addition to, or in lieu of, testing to be performed on the subject property, the Petroleum Administrator may direct water quality testing to be performed on property within one mile of the well-site with the landowner’s permission. Where possible, testing shall be performed hydrologically downgradient or in the location most likely to reveal any water quality issues related to the drilling, as may be determined by the Petroleum Administrator and/or his or her designee. Water testing shall be targeted to reveal any chemicals used in the drilling process and changes related to the drilling process. If required as a condition of approval, water testing shall include baseline water testing and annual water quality testing when enhanced recovery or hydraulic fracturing methods are used. A fee to cover the expenses of water quality testing may be established by the Board of Supervisors by resolution. (Ord. 918, § 1(part), 2013)

(A) Notice of any hearing before the Planning Commission or Board of Supervisors shall be mailed or delivered at least ten days prior to the hearing to all owners of real property as shown on the latest equalized assessment roll within one mile of the real property that is the subject of the hearing by the County Planning Department. In lieu of using the assessment roll, the local agency may use records of the county assessor or tax collector which contain more recent information than the assessment roll. Notice shall also be provided to any water district, water quality control district and/or air quality control district having jurisdiction where the project is located. (B) The failure of any person or entity to receive notice given pursuant to this chapter shall not constitute grounds for any court to invalidate the actions of a local agency for which the notice was given. (Ord. 918, § 1(part), 2013)

All operators in San Benito County shall continually carry a public liability insurance policy in the amount of at least $2,000,000 per incident. The county shall be named as additional insured in the policy and shall be furnished a certificate of insurance. The policy of insurance shall provide for a 30-day notice to the county of cancellation by carrier in the event of cancellation of the policy. (Ord. 918, § 1(part), 2013)

If any section, subsection, sentence, clause, or phrase of this code or the application thereof to any person or circumstance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this code or the application of such provisions to other persons or circumstances. The San Benito County Board of Supervisors hereby declares that it would have approved this code or any section, subsection, sentence, clause, or phrase hereto, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases should be declared to be unconstitutional. (Ord. 918, § 1(part), 2013)

Permits under this chapter shall be granted in accordance with Title 25 of this code. Minimum well drilling sites shall be one acre in the agricultural, residential and manufacturing zones. Community leasing of property within a one acre area may be permitted for the establishing of a drilling site. (1966 Code, § 11-14) (Ord. 185, § 8; Ord. 918, § 2, 2013) Cross-reference: Zoning, see Title 25 of this code § 19.21.031 RESERVED.

(A) Purpose and intent. The purpose and intent of this section is to provide an administrative procedure for determining whether a land use that is normally not allowed in compliance with § 19.21.031 (Compliance with the Protect Our Water and Health: Ban Fracking Initiative), § 25.29.161 (Prohibition of Land Uses Supporting High-Intensity Petroleum Operations), or § 25.29.162 (Prohibition of Land Uses Supporting Petroleum Operations in Rural and Residential Districts) is exempt from the prohibitions of those sections as allowed by Measure J: the Petroleum Initiative which the Board of Supervisors voted to submit without alteration to the voters on May 6, 2014 ("the Initiative"). This section only codifies an administrative process for claims of exemption that neither enlarges nor narrows the exemptions contained in the Initiative as set forth below:

(1) Section 5 of the Initiative (Exemptions for Certain Projects) provides that the provisions of the Initiative shall not be applicable to the extent, but only to the extent, that they would violate the constitution or laws of the United States or the State of California. (2) Section 5 of the Initiative (Exemptions for Certain Projects) provides that in the event a property owner contends that application of the Initiative effects an unconstitutional taking of property, the property owner may request, and the Board may grant, an exception to application of any provision of this Initiative if the Board of Supervisors finds, based on substantial evidence, that both (1) the application of any aspect of this Initiative would constitute an unconstitutional taking of property, and (2) the exception will allow additional or continued land uses only to the minimum extent necessary to avoid such a taking. (3) Section 3 of the Initiative provides in proposed § 25.29.162, that "This § 25.29.162 shall not apply to any land use in support of Low Intensity Petroleum Operations that has obtained a vested right (including any legal nonconforming operations) as of this section's effective date. (4) Section 2 of the Initiative provides in Proposed Policy 21, that: (a) "Within one year of the effective date, the owners and operators of all vested High-Intensity Petroleum Operations" shall bring land uses into conformity with this Policy. Land uses may support Low-Intensity Petroleum Operations, in compliance with all applicable law, on properties formerly supporting High-Intensity Petroleum Operations. (b) The one-year amortization period may be extended on a case-by-case basis if the Planning Commission determines that a well owner or operator has shown that one year is not a reasonable amortization period pursuant to state law. Any extension shall not exceed two years (in addition to the initial one-year period for a total of three years) and may be only for the minimum length of time necessary to provide a reasonable amortization period. (c) All Planning Commission determinations made under this Policy must be made at a duly noticed public hearing. (B) Applicability. (1) Persons subject to the Initiative may file applications for exemption determinations associated with divisions (A)(2), (3), and (4) above. This § 19.21.032 (Determination of Exemption) applies to any person seeking such exemption determinations. (2) Review authority. (a) The review authority for a Determination of Exemption is identified in Table 19.21.032(1) (Determination of Exemption Review Authorities) below. Table 19.20.032(1) Determination of Exemption Review Authorities

Role of Review Authority Type of Exemption Director Planning Commission Board of Supervisors Determination of Exemption Associated with § 19.21.032(A)(2) (Exceptions to Avoid Unconstitutional Takings)

Decision Determination of Exemption Associated with § 19.21.032(A)(3) (“Low Intensity Vested Rights” Determinations) Decision Appeal Appeal Determination of Exemption Associated with § 19.21.032(A)(4) (“High Intensity Vested Rights” Amortization Requests)

Decision Appeal

(b) Applications. A separate application for a determination of exemption shall be filed for each type of exemption

requested. (C) Contents of application and review for completeness. (1) Any application for a determination of exemption allowed in compliance with division (B) (Applicability) shall be submitted by the applicant seeking the exemption. (2) (a) The applicant for any exemption shall submit as part of the application any and all evidentiary support reasonably available sufficient to establish the basis for the claim of exemption. (b) The filing of an application for a Determination of Exemption associated with § 19.21.032(A)(2) shall be accompanied by an application for the development project for which the exemption determination is requested. 1. The Director may waive the requirement to submit the application for the development project for good cause. 2. Where the Director has waived the requirement for a development application, if the Board determines such an

application is necessary to determine if the exemption applies, the Board may require such application to be filed and processed before the County will take final action on the application for the exemption. (D) Processing. (1) Applications under the jurisdiction of the Board. The following applies to the processing of applications for determinations of exemption associated with § 19.21.032(A)(2). (a) The Board shall hold at least one noticed public hearing on the application and shall approve, conditionally approve or deny the request. (b) At least ten days prior to the public hearing, the Clerk of the Board shall give notice thereof by at least one publication in a newspaper of general circulation. Additionally, notice of the hearing shall be given by mail or delivery to all persons including businesses, or other public or private entities shown on the last equalized assessment roll as owning real property within 300 feet of the property which is subject of the proposed development project. (c) The hearing shall be held within 180 days of the determination that the application is complete. For good cause the Director may delay the holding of the hearing for an additional 180 days. (d) The Board may continue the hearing to allow or require the applicant or Department to submit additional information or legal analysis. (e) The action of the Board shall be final. (2) Applications under the jurisdiction of the Director. The following applies to the processing of applications for determinations of exemption associated with § 19.21.032(A)(3). (a) The Director shall approve, conditionally approve or deny the application for the determination of exemption. A public hearing is not required. (b) The Director shall act on the application within 60 days after the application is determined to be complete. However, the Director may extend this period of time to allow or require the applicant or Department to submit additional information or legal analysis or other good cause. (c) The action of the Director is final subject to appeal in compliance with the San Benito County Code, Chapter 25.47 (Appeals). (d) Any person may make a written request to the Director to receive notice of exemption determinations made under this section. Within five business days of the Director's determination of an exemption, notice of the determination shall be provided by direct notice by first class mail (or email if requested by requestor) to persons who have submitted written requests for such notice. (3) Applications under the jurisdiction of the Planning Commission. The following applies to the processing of applications for determinations of exemption associated with § 19.21.032(A)(4). (a) The Planning Commission shall hold at least one noticed public hearing on the application and shall approve, conditionally approve or deny the application for the determination of exemption. (b) At least ten days prior to the public hearing, the Planning Director or his or her designee, shall give notice thereof by at least one publication in a newspaper of general circulation. Additionally, notice of the hearing shall be given by mail or delivery to all persons including businesses, or other public or private entities shown on the last equalized assessment roll as owning real property within 300 feet of the subject. (c) The hearing shall be held within 180 days of the determination that the application is complete. For good cause the Director may delay the holding of the hearing for an additional 180 days. (d) The Planning Commission may continue the hearing to allow or require the applicant or Department to submit additional information or legal analysis. (e) The action of the Planning Commission shall be final subject to appeal in compliance with the San Benito County Code, Chapter 25.47 (Appeals). (E) Findings required for approval. A determination of exemption application shall be approved or conditionally approved only if the review authority first makes one of the following findings, as applicable. (1) Applications for determinations of exemption associated with § 19.21.032(A)(2). There is sufficient evidence in the record to determine that approving or conditionally approving the application is required in order to avoid an unconstitutional taking of property and that the application, as approved, will allow additional or continued land uses only to the minimum extent necessary to avoid such a taking. (2) Applications for determinations of exemption associated with § 19.21.032(A)(3). There is sufficient evidence in the record to establish that the applicant obtained prior to the effective date of the Initiative, a vested right to conduct a Low- Intensity Petroleum Operation. (3) Applications for determinations of exemption associated with § 19.21.032(A)(4). There is sufficient evidence in the record to establish that (1) the applicant obtained prior to the effective date of the Initiative, a vested right to conduct a High

Intensity Petroleum Operation; (2) approving or conditionally approving the application is required because the applicant has shown that a one year amortization period is not a reasonable amortization period pursuant to state law; and (3) that the extension, not to exceed two years, is no longer than the minimum length of time necessary to provide a reasonable amortization period. (F) Enforcement. The Director shall not take any action to enforce the Initiative against any owner or operator of an existing facility if an application for a determination of exemption has been filed in compliance with this § 19.21.032 (Determination of Exemption) and the application has not expired, or final action to deny the application has not occurred. (Ord. 930, § 1, 2014)