§ 22.34

This Chapter provides reasonable regulations for the extraction and development of onshore petroleum and other subterranean resources in San Luis Obispo County, including but not limited to exploration, production, storage, processing, transportation, and the disposal of petroleum and other hydrocarbons and of any operations accessory thereto. This Chapter is intended to supplement regulations administered by the California State Division of Oil and Gas, to address particular problems in the County that do not apply generally throughout the state. These problems include a limited water supply for agricultural and domestic uses in a county that depends heavily on agriculture and tourism for its economic welfare. The fresh water supply must be fully protected from pollution by petroleum operations.

[Amended 1989, Ord. 2409] [22.08.172]

All petroleum resource extraction operations shall be conducted in compliance with the standards of this Chapter. The extraction of petroleum from oil sands or shales by any method other than wells is subject to the standards of Chapter 22.36 for surface mining operations).

[Amended 1989, Ord. 2409] [22.08.172]

A drilling permit shall be obtained to authorize exploration or production wells for oil, gas, geothermal steam or any other subterranean resource except water (water wells are subject to Chapter 8.40 of this code), as follows.

A.

Exploratory well permit. Exploratory wells are drilled to verify the location, extent, or feasibility of commercial extraction of subterranean resources. Minor Use Permit approval is required for an exploratory well, except that Conditional Use Permit approval is required where drilling is proposed:

1.

Within an urban or village reserve line, a Residential Suburban land use category, or a Sensitive Resource Area; or

2.

When exploration for, or extraction of any resource other than oil, gas or geothermal steam is proposed.

B.

Production well permit. Production wells are permanent installations for the extraction and preparation for transportation of a proven resource.

1.

Conditional Use Permit approval is required for establishing any new oil field, other resource extraction production area, or to reopen a field that has been unused for 12 months or more, that involves single or multiple wells and related facilities.

2.

Minor Use Permit approval is required where an additional well is proposed in an existing designated oil field, as identified by the California Department of Conservation, Division of Oil and Gas.

C.

Application content. In addition to the information required for applications by Chapter 22.62, (Permit Applications) drilling permit applications shall also describe:

1.

Location and dimensions of wells, well pads and earthen sumps, location of roads and associated improvements (including housing), locations of any pipelines or storage tanks and pump facilities.

2.

Identification of the type of drilling equipment (e.g., portable or fixed) intended to be used in the drilling activities.

3.

When landscaping plans are required by Chapter 22.16, they shall include measures proposed for screening producing wells and permanent equipment from the view of public roads or residential uses, revegetation of all cut and fill banks, and restoration of disturbed areas of the site not directly related to oil and gas production.

4.

Proposed erosion control measures.

5.

All development associated with the proposed well and associated facilities and how that development complies with the standards of this Title.

6.

If another public agency must also approve the proposed facility, the applicant shall also provide:

a.

A brief description of the nature and scope of the requirements of that agency, including the agency's procedures for acting on the proposed use.

b.

A schedule for applications and approvals for actions by other responsible agencies.

c.

A copy of all necessary state and federal permits and associated conditions of approval issued by the agencies listed prior to the submittal of the application.

7.

An applicant may incorporate by reference any information developed or submitted in any other application, provided the applicant submits a copy or summary of the referenced material, identifies the permitting process in which it was submitted and the outcome of that permitting process, and explains the relevance of the information to the approval standards of this Title.

[Amended 1981, Ord. 2063; 1989, Ord. 2409] [22.08.173]

The following standards apply to all resource extraction wells:

A.

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

1.

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

failure of the applicant to comply with the provisions of this Title, APCD regulations and any conditions of approval. The bond shall include the correct name or number of the well and such other information as may be necessary to readily identify the well. Such guarantee is in addition to any bond required by the state.

2.

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

3.

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

B.

Site development.

1.

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

2.

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

3.

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

4.

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

a.

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

b.

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

5.

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

6.

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

7.

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

C.

Well operation and site maintenance.

1.

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

2.

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

3.

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

4.

Parking and loading. All parking and loading activities related to well drilling or production shall occur onsite.

5.

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

6.

Operating wells. Pumping wells shall be operated by electric motors or muffled internal combustion engines. Pumping units within urban or village reserve lines or Residential Suburban land use categories

shall be installed within pits or above-grade structures which screen all mechanical equipment from the view of public roads or adjoining properties and which reduce noise generated by pumping equipment to within the limits specified by Section 22.10.120 (Noise Standards).

7.

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

a.

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

b.

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

D.

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

E.

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

1.

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

2.

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

3.

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

4.

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

5.

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

[Amended 1989, Ord. 2409] [22.08.174]

This Section applies to petroleum refining facilities, operations, and related activities, including compounding lubricating oils and greases from purchased materials, oil or gas processing facilities, manufacture of petroleum coke and fuel briquettes, and tank farms.

A.

Specific Plan required. A land use permit application for a use included by Article 8 within the definition of Petroleum Refining and Related Activities (including extended reach facilities) may be filed with the Department of Planning and Building and a land use permit may be granted only after a Specific Plan, as described in Government Code Section 65450 et seq., has been approved for the overall development of the parcel, except for:

1.

An existing facility used solely for in-field processing of petroleum produced from a field surrounding or adjacent to the facility and not exceeding 10,000 barrels processing capacity of petroleum and related fluids, excluding produced water, per day;

2.

An existing facility used solely for in-field compression or sweetening of natural gas and similar fluids produced from a field surrounding or adjacent to the facility;

3.

Existing storage facilities having a capacity not exceeding 210,000 barrels of crude petroleum or refined petroleum products;

4.

Emergency oil spill response facilities;

5.

Additions within existing facilities or modifications to existing facilities mandated by local, state, or federal requirements or by a demonstrated need for replacement due to technological improvement or facility age that do not expand the capacity of a facility by more than 10 percent or expand the existing exterior boundary of the site; and,

6.

Any facility described by size, capacity, physical characteristics, and site as part of a previously approved Specific Plan.

B.

Specific Plan preparation costs to be borne by applicant. Any applicant requesting preparation and approval of a Specific Plan must, prior to the initial acceptance of the application, agree in writing to pay all reasonable expenses incurred by the County of San Luis Obispo in preparing and reviewing the request within 30 days after being invoiced for such costs, and must deposit with the County of San Luis Obispo a sum to be set in compliance with the fee schedule adopted by County ordinance in order to pay for any such costs incurred by San Luis Obispo County and not otherwise compensated by the applicant.

C.

Contents of Specific Plan. Specific Plans shall include all information required by Government Code sections 65450 et seq., all information required by provision of the San Luis Obispo County General Plan, and by other provisions of County ordinances, and all information required by each of the following;

1.

A detailed description of long-term plans for use of the site, including specific characteristics, volumes, and sources of hydrocarbons; specific descriptions of all expected incoming and outgoing transmission or shipment facilities or changes in intensity of use of existing facilities which may result from a proposal; description of anticipated size, type and location of initial and subsequent refining, processing,

cogeneration, storage, transmission, and associated facilities; and delineation of transportation and access routes for materials and personnel, including location and physical characteristics of such routes and the incremental burdens to be imposed on each route during construction or operation of facilities and analysis of the extent, if any, to which access routes may create nuisances or hazards for adjacent properties.

2.

A schedule for initial and subsequent phases of development of the site which specifies the anticipated order in which facilities will be constructed and operated, circumstances which will cause need for specific facilities, and anticipated timing of commencement of permitting, construction, operation, peak operation, and decommissioning for each facility;

3.

Volume and time of demand for other resources including but not limited to water, natural gas, and electricity;

4.

Identification, volume and nature of hazardous materials other than crude oil, natural gas, or petroleum products refined on-site to be imported into the site, stored or produced on-site, transmitted or shipped off-site, as well as characterization of any hazardous waste contamination existing on the parcel or which may be expected from construction or operation of the planned facility;

5.

An analysis of the compatibility of the proposed use with present characteristics of the parcel, with surrounding uses, and with the physical, cultural, socioeconomic, recreational and aesthetic character of the surrounding region;

6.

A plan showing that the proposed use will be buffered and screened from adjacent land uses to protect adjacent uses, the proposed use, and the people and resources of the region from harm or encroachment;

7.

An analysis of the extent to which the configuration and characteristics of intended facilities and operations will be compatible over the life of facilities with surrounding uses, physical, cultural, socioeconomic, recreational and aesthetic characteristics of the region, and with public health and safety;

8.

Plans of the proponent and any partners or other operators for any fields expected to send production to the planned facility together with a showing of the extent to which the planned facility addresses consolidation of processing, refining, storage, shipment and transmission of hydrocarbons;

9.

A detailed description of a buffer area which includes a sufficient area around the planned project to confine, buffer, and screen impacts, including potential impacts, from the project and to prevent encroachment of incompatible land uses within the area of influence of the planned facility to promote public health and safety, and to promote land use compatibility by designating an area around the facility within which no land uses incompatible with the proposed project will be allowed during the life of the project. The precise designation of the buffer area shall be reviewed during the CEQA process and approved at the time of Specific Plan approval to prevent subsequent encroachment.

D.

Factors to be considered. Because the Specific Plan is a tool for the systematic implementation of the General Plan, it must be precise in its descriptions of the distribution, location, and extent and intensity of the major components for the proposed facility. Prior to the approval of any Specific Plan requested in compliance with this Section, the Board shall consider whether its action protects and promotes community health, safety, air and water quality, soil and habitat stability, riparian and wetland areas, cultural and visual resources, traffic and noise thresholds, land use compatibility, and availability of services and also recognizes a need for facilities to support offshore or onshore hydrocarbon production.

E.

Pre-application conference required. Conditional Use Permit applications filed after approval of the Specific Plan, as required by Subsection 22.30.050.A, shall be preceded by a pre-application conference scheduled by the Department. The purpose of the conference shall be to identify concerns, standards, regulatory limits, application contents, information needs, requirements and mitigations as set forth in the approved Specific Plan, and format requirements that are necessary to process and evaluate a proposal.

F.

Permit requirements. Conditional Use Permit approval by the Board is required for all new uses and any expansion of the external boundaries of existing uses. The action of the Review Authority described in

Section 22.62.060 shall be a recommendation to the Board. Minor Use Permit approval is required for modification of facilities within an existing approved development, unless a condition of a previous Conditional Use Permit approval sets a different land use permit requirement.

G.

Application requirements. In addition to the application content requirements of Chapter 22.62 (Permit Applications) an application filed in compliance with this Section shall also include written explanation of the following requirements as determined at the preapplication conference:

1.

The proposed design capacity of the facility; the operating schedule; the energy use; the products and materials to be received at the facility; how the products and materials shall be delivered; the processing methods; the products to leave the site; and the physical and contractual arrangements for connections with other facilities.

2.

Alternatives to the proposed facility and to separable aspects of the proposal. This discussion shall include discussion of reliability of the proposed facility and alternatives, as well as their economic and environmental advantages and disadvantages.

3.

Plans for any overhead or underground electric transmission lines, transformers, inverters, switchyards, including their size and capacity or any required new or upgraded off-site transmission facilities.

4.

Plans for any other required utility connections such as telecommunications, natural gas, water or sewage. This will include physical arrangements, timing of construction, expected volumes, and contractual arrangements.

5.

The cooling system, if any, including volume and flow characteristics, source of the cooling fluid and the location, flow and chemical make-up of any liquid or gaseous discharges.

6.

Potable water requirements and proposed source.

7.

The fuel sources, delivery and storage systems and firing characteristics.

8.

The air pollution control system and emission characteristics.

The characteristics of the liquid and solid wastes produced and the liquid and solid waste disposal systems.

10.

Any toxic and/or hazardous materials as defined by the EPA or the State of California which will be used during the construction and operation, including estimates of the volumes of each, the inventory control system that is proposed, the disposition of these materials and the disposal system and ultimate location for disposal. The applicant shall also demonstrate why non-toxic materials cannot be substituted for the toxic and/or hazardous materials proposed.

11.

An oil spill contingency plan, a spill prevention control and countermeasure plan and a system safety plan.

12.

If another public agency must also approve the proposed facility, the applicant shall also provide:

a.

A brief description of the nature and scope of the requirements of that agency; including the agency's procedures for acting on the proposed use.

b.

A schedule for applications and approvals for actions by other responsible agencies.

c.

A copy of all necessary state and federal permits and associated conditions of approval issued by the agencies listed prior to the submittal of the application.

13.

An applicant may incorporate by reference any information developed or submitted in any other application, provided the applicant submits a copy of the referenced material, identifies the permitting process in which it was submitted and the outcome of that permitting process, and explains the relevance of the information to the standards for approval in compliance with this Title.

14.

The number and identification by trades of estimated construction and operation forces. If construction is estimated to take over six months, the construction workforce shall be estimated for each six-month period. The estimates shall include numbers of locally hired employees and employees who will move into the area, and a discussion of the estimated impact that employees moving into the area will have on housing, schools, traffic, water supply, waste water facilities and emergency services.

H.

Standards and specifications. The following standards apply in addition to other applicable provisions of this Title, and any requirements imposed through the Conditional Use Permit process.

1.

Bonding. Following permit approval and before any work on the proposed site, the applicant shall post a surety bond in favor of the County, conditioned on conformance with all applicable conditions, restrictions, and requirements of this Title and all conditions required by the Conditional Use Permit. Such guarantee is in addition to any bond required by the state. The total value of this bond will be established through the Conditional Use Permit approval process.

2.

Environmental quality assurance. An Environmental Quality Assurance Program covering all aspects of construction and operation shall be submitted for approval by the Director prior to construction of any project component. This program will include a schedule and plan for monitoring and demonstrating compliance with all requirements of the Conditional Use Permit. Specific components of this Environmental Quality Assurance Program will be determined during the environmental review process and Conditional Use Permit approval process.

3.

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

4.

Utility interconnect. All distribution lines, electrical substations, and other interconnection facilities shall be constructed to the specifications of the affected utility. A statement from the utility confirming that the proposed interconnection is acceptable shall be filed with the chief building inspector prior to the issuance of any building permit. Interconnection shall conform to procedures and standards established by the California Public Utilities Commission.

5.

Hazardous materials. Prior to their delivery and use on-site, the applicant shall submit a hazardous material and waste management plan for review and approval. Details to be contained in this plan will be established through the environmental review process and the Conditional Use Permit approval process.

[Added 1985, Ord. 2239; Amended 1989, Ord. 2409; 1991, Ord. 2523; 1999, Ord. 2880] [22.08.094] Chapter 22.36 - SURFACE MINING AND RECLAMATION