Section 1753.3.1 - Production Facility Decommissioning Cost Estimate Method 2(a) Production Facility Decommissioning Cost Estimate calculated by operators using Method 2 shall be calculated by summing the costs estimated under subdivisions (a)(3) through (a)(10) for each production facility and reducing that total by any reductions from subdivision (a)(11). Operators shall provide the following information for each of the operator's production facilities: (1) The name of the field and lease where the production facility is located;(2) A description of the production facility, including type and size;(3) Cost to develop and obtain permits;(4) Cost for the project management and engineering;(5) Cost to develop safety, environmental, and emergency response plans including spill response and incident cleanup plans;(6) Cost to mobilize and demobilize the equipment and crews required to perform the work;(7) Costs associated with materials removal and transportation;(8) Costs associated with materials recycling or disposal;(9) Costs associated with access to the production facility;(10) A contingency of 10% of the costs calculated under subdivision (a)(3) through (a)(9); and(11) Any reductions based upon the repurposing of the production facility.(b) Operators calculating Production Facility Decommissioning Cost Estimates under this section shall account for costs associated with the location of the production facility and facility specific characteristics such as age, condition, geologic hazards, history, and proximity to sensitive populations and environmental resources.(c) Operators calculating Production Facility Decommissioning Cost Estimates under this section shall also submit documentation consistent with section 1753.1.1 supporting the costs estimated under subdivision (a).Cal. Code Regs. Tit. 14, § 1753.3.1
Note: Authority cited: Sections 3013 and 3205.7, Public Resources Code. Reference: Sections 3011, 3106 and 3205.7, Public Resources Code.
1. New section filed 6-24-2024; operative 10/1/2024 (Register 2024, No. 26).