California Senate Bill SB550 Amended / Bill

 BILL NUMBER: SB 550AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 21, 2010 AMENDED IN ASSEMBLY APRIL 8, 2010 AMENDED IN ASSEMBLY AUGUST 31, 2009 AMENDED IN ASSEMBLY AUGUST 17, 2009 AMENDED IN ASSEMBLY JULY 9, 2009 AMENDED IN SENATE MAY 20, 2009 INTRODUCED BY Senator Florez (Coauthor: Senator Romero) FEBRUARY 27, 2009 An act to add  Sections 3208.5 and 3986   Section 3205.7  to the Public Resources Code, relating to natural resources. LEGISLATIVE COUNSEL'S DIGEST SB 550, as amended, Florez. Natural resources: oil and gas:  mining:  drilling. Existing law regulates oil and gas activities  and mining activities  . Existing law requires an operator of an oil and gas well to file with the State Oil and Gas Supervisor certain indemnity bonds. This bill would require an operator of an oil and gas operation  or mining operation  to have insurance or obtain an indemnity bond in an amount and kind reasonably expected to secure the costs of cleanup for any adverse environmental impact that could be expected from the operator's drilling activity. The bill would require the insurance or indemnity bond amount to be at least $10,000,000, and in the case where the drilling is within 1,000 feet of groundwater, at least $25,000,000. The bill would also require an operator of an oil and gas operation  or mining operation  to disclose to the owner of surface rights any agreement between the operator and a drilling company. The bill would make an operator drilling on farmland responsible for compensating the landowners for surface damage to crops and other improvements caused during the drilling. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section  3208.5   3205.7  is added to the Public Resources Code, to read:  3208.5.   3205.7.  (a) An operator shall file with the supervisor evidence of insurance or an indemnity bond in an amount and kind reasonably expected to secure the total costs of cleanup of any adverse environmental impact that could be expected to result from drilling, including the potential for drilling accidents, negligent drilling activity, or both. The indemnity bond or insurance policy shall be in an amount of not less than ten million dollars ($10,000,000). In the case of subsurface drilling within 1,000 feet of groundwater, the indemnity bond or insurance policy shall be in an amount of not less than twenty-five million dollars ($25,000,000), and shall specifically cover damage to groundwater. (b) An operator shall provide to the owner of surface rights written disclosure of any agreement between the operator and a drilling company within 10 days of the execution of the agreement. (c) In the case of drilling on farmland, an operator shall be responsible for compensating the landowners for surface damage to crops and all other improvements caused during the drilling.  SEC. 2.   Section 3986 is added to the Public Resources Code, to read: 3986. (a) An operator shall file with the supervisor evidence of insurance or an indemnity bond in an amount and kind reasonably expected to secure the total costs of cleanup of any adverse environmental impact that could be expected to result from drilling, including the potential for drilling accidents, negligent drilling activity, or both. The indemnity bond or insurance policy shall be in an amount of not less than ten million dollars ($10,000,000). In the case of subsurface drilling within 1,000 feet of groundwater, the indemnity bond or insurance policy shall be in an amount of not less than twenty-five million dollars ($25,000,000), and shall specifically cover damage to groundwater. (b) An operator shall provide to the owner of surface rights written disclosure of any agreement between the operator and a drilling company within 10 days of the execution of the agreement. (c) In the case of drilling on farmland, an operator shall be responsible for compensating the landowners for surface damage to crops and all other improvements caused during the drilling.