(a) The division may require an operator filing an individual indemnity bond pursuant to Section 3204 or a blanket indemnity bond pursuant to Section 3205, as applicable, to provide an additional amount of security acceptable to the division based on the divisionâs evaluation of the risk that the operator will desert its well or wells and the potential threats the operatorâs well or wells pose to life, health, property, and natural resources. The additional security required by the division shall not exceed the lesser of the divisionâs estimation of the reasonable costs of properly plugging and abandoning all of the operatorâs wells and decommissioning any attendant production facilities in accordance with Section 3208, or thirty million dollars ($30,000,000). (b) When making an estimation under this section of the reasonable costs of properly plugging and abandoning an operatorâs well or wells and decommissioning any attendant production facilities, the division shall provide the operator with an opportunity to submit the operatorâs own estimation and shall consider all of the following: (1) The depth of the well or wells. (2) The accessibility and surroundings of the well or wells and any attendant production facilities. (3) Available information about the condition of the well or wells and any attendant production facilities. (4) Available information about the cost to plug and abandon a comparable well or wells. (5) Available information about the cost to decommission production facilities comparable to the production facilities attendant to the well or wells. (6) The operatorâs cost estimates, if provided. (7) Whether the operator is a public utility gas corporation, as defined in subdivision (a) of Section 216 of the Public Utilities Code. (8) Any other information that the division determines to be relevant to the estimation of cost. (c) The division, in evaluating the risk that the operator will desert its well or wells and the potential threats the operatorâs well or wells pose to life, health, property, and natural resources, shall consider all of the following: (1) The difference between the estimation of reasonable costs of plugging and abandonment under subdivisions (a) and (b) and the total amount of indemnity bonds or other financial assurances in place to ensure funding of the plugging and abandonment of the operatorâs well or wells. (2) The level of current production from the well or wells. (3) Available information regarding estimated reserves remaining in place associated with the well or wells. (4) Whether the well or wells are âcritical,â are âenvironmentally sensitive,â or are in an âurban area,â as those terms are defined by the division in regulation. (5) To the extent that relevant information is available to the division, the financial status of the operator and the operatorâs financial capacity to plug and abandon all of the operatorâs wells. (6) The past record of compliance by the operator with the division. (7) The number of idle wells to be covered by the indemnity bond and the operatorâs record of compliance with the requirements of Section 3206 and the divisionâs regulations related to the management of idle wells. (8) Whether the operatorâs well or wells are subject to any bonding or financial assurance requirements by a local government. (9) Whether the operatorâs well or wells are already subject to additional bond coverage by the division pursuant to Section 3270.4. (10) Any other information that the division determines to be relevant to the evaluation of the risk. (d) The division shall provide the operator with notice of the requirement to provide additional security, and the notice shall be served by personal service or certified mail. The operator shall provide the additional security within 180 days of service of notice. The notice shall include an explanation of the divisionâs estimation of the reasonable costs to plug and abandon the oper
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