Cal. Code Regs. tit. 14 § 1753.2

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 1753.2 - Well Abandonment Cost Estimate Method 1

(a) Well Abandonment Cost Estimates calculated by operators using Method 1 shall be calculated by multiplying the Estimated Well Days from subdivision (a)(3) by the Base Daily Cost Rate from subdivision (a)(4) and the Well Abandonment Cost Estimate shall specify all the following information for each well:

(1) The Aggregated Well Score. The Aggregated Well Score shall be determined by identifying all the characteristics of the well and associated points, as listed in the Aggregated Well Score Table in subdivision (a)(1)(A), and summing the points assigned to those characteristics.

(A) Aggregated Well Score Table.

Characteristics		Points
Measured depth of the well, reduced by the length of any portion of the wellbore partially plugged consistent with the requirements of Section 1752
	The well is between 0 feet to 1,000 feet	0
	The well is between 1,001 feet to 3,000 feet	4
	The well is between 3,001 feet to 5,000 feet	7
	The well is greater than 5,000 feet	10
Number of casing strings, including the conductor
	The well has 0-2 casing strings	0
	The well has 3-4 casing strings	4
	The well has 5 casing strings and above	8
Age of the well, calculated from the spud date
	The well is 0 to 25 years old	0
	The well is 26 to 50 years old	3
	The well is greater than 50 years old	5
Add points for each applicable well location and environmental characteristic
	The well is a critical well as defined by Section 1720, located within a city limit, or is located in an urban area as defined by Section 1760	10
	The well has an environmentally sensitive wellhead as defined in Section 1760	7
	The well is in an area of known geologic hazard including subsidence, landslide, or there is a history of damage to the well from seismicity	5
	The well has surface obstacles or other impediments preventing access to the wellhead, including but not limited to buildings or structures, surface-use activities, irrigation systems, roads, terrain, or restricted access	5
Add points for each applicable well condition characteristic
	The well, when shut in, has pressure in the casing or tubing at the surface of more than 250 psi, the pressure in the casing or tubing is unknown, or the well is open to the atmosphere, or it is unknown if the well is open to the atmosphere	5
	The well has inadequate casing or inadequate tubing integrity, or the adequacy of the casing or tubing is unknown	6
	The well has known downhole issues that would impede plugging and abandonment of the well and require special tools for intervention, such as junk, stuck rods, packer, scales in casing, or fish, or it is unknown if the well has junk or other downhole issues	9
	The fluid level in the well is above the base of freshwater or USDW, or the fluid level in the well is unknown	5
Add points for each appliable additional risk factor
	History of recorded environmental spill or leaks	5
	Presence of >100 ppm H2S or CO2 production	5
Maximum Potential Aggregated Well Score		85

(2) The Well Score Multiplier. The Well Score Multiplier shall be determined by selecting from the Well Score Multiplier Table in subdivision (a)(2)(A) the Well Score Multiplier value corresponding to the Aggregated Well Score calculated under subdivision (a)(1).

(A) Well Score Multiplier Table.

Aggregated Well Score	Well Score Mutliplier
0-10	1.00
11	1.01
12	1.03
13	1.04
14	1.05
15	1.06
16	1.08
17	1.09
18	1.10
19	1.11
20	1.13
21	1.14
22	1.15
23	1.16
24	1.18
25	1.19
26	1.20
27	1.21
28	1.23
29	1.24
30	1.25
31	1.26
32	1.28
33	1.29
34	1.30
35	1.31
36	1.33
37	1.34
38	1.35
39	1.36
40	1.38
41	1.39
42	1.40
43	1.41
44	1.43
45	1.44
46	1.45
47	1.46
48	1.48
49	1.49
50	1.50
51	1.53
52	1.55
53	1.58
54	1.60
55	1.63
56	1.65
57	1.68
58	1.70
59	1.73
60	1.75
61	1.78
62	1.80
63	1.83
64	1.85
65	1.88
66	1.90
67	1.93
68	1.95
69	1.98
70-85	2.00

(3) The Estimated Well Days. The Estimated Well Days shall be calculated by multiplying the Base Well Days by the Well Score Multiplier from subdivision (a)(2). The Base Well Days shall be determined based upon the region in which the well is located as follows:

(i) 8 days for a well located in the Northern region;

(ii) 14 days for a well located in the Southern region; and

(iii) 10 days for a well located in the Central region.

(4) The Base Daily Cost Rate. The Base Daily Cost Rate shall be determined based upon the region in which the well is located as follows:

(i) $12,000 per day for a well located in the Northern region;

(iii) $12,500 per day for a well located in the Southern region; and

(iv) $7,000 per day for a well located in the Central region.

(5) The Lease and Field. The name of the lease and field where the well is located.

(b) For the purposes of subdivisions (a)(3) and (a)(4), the region shall be determined as follows:

(1) The Northern region is that area including the Counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Ventura, Yolo, Yuba, the area of Fresno County north of the line described in subdivision (b)(4)(A) and north and west of the line described in subdivision (b)(4)(B), the area of San Luis Obispo County west and south of the line described in subdivision (b)(4)(C), and the area of Los Angeles County west and north of the line described in subdivision (b)(5).

(2) The Southern region is that area including the Counties of Imperial, Inyo, Orange, Riverside, San Bernardino, San Diego, and the area of Los Angeles County south and east of the line described in subdivision (b)(5).

(3) The Central region is that area including the Counties of Kern, Kings, Tulare, and that area of Fresno County south of the line described in subdivision (b)(4)(A) and south and east of the line described in subdivision (b)(4)(B), and the area of San Luis Obispo County east and north of the line described in subdivision (b)(4)(C).

(4) The lines dividing the Northern region and the Central region are as follows:

(A) The line beginning at the border of Merced County with Fresno County east along the base of Township 11 South to the border of Fresno County with Madera County.

(B) The line beginning at the border of Madera County with Fresno County at Township 13 South Range 16 East Section 21 east along the base of Section 21 to the southeast corner of Section 22, then north along the eastern boundary of Section 22 to the border of Fresno County with Madera County.

(C) The line beginning at the border of San Luis Obispo County with Kern County at the Northwest Corner of Township 32 South Range 21 East, then south in between Township 32 South Range 21 East and Township 32 South Range 22 East to the base of Township 12 North Range 26 West, then east along the base of Township 12 North to the border of San Luis Obispo County with Kern County.

(5) The line dividing the Northern region and the Southern region is that line beginning at the northern border of Los Angeles County with Kern County, following the line separating Range 14 West and Range 15 West southward to the southern border of Township 2 North Range 14 West, then west along the southern boundary of Township 2 North to the border of Los Angeles County with Ventura County.

Cal. Code Regs. Tit. 14, § 1753.2

1. New section filed 6-24-2024; operative 10/1/2024 (Register 2024, No. 26).