(A) Financial assurances/security to guarantee performance. Any applicant receiving a new conditional use permit involving oil and gas wells, or receiving an amendment or modification to an existing use permit relating to oil and gas wells, after the effective date of this chapter, shall provide to the county’s Planning Department financial assurances in the amount of $15,000 per facility for six and fewer facilities. For applicants with seven or more facilities, the applicant may provide a blanket bond in the amount of $100,000 for all of applicant’s facilities under a specific conditional use permit. The proof of financial assurances shall be provided to the Planning Department prior to beginning any work on site. If more than one bond is provided, each bond shall allow the bond to be drawn upon for any facility authorized under the conditional use permit or relating to the conditional use permit as set forth below. The financial assurance shall be in addition to any bond required by the state. The applicant may post security in the form of cash, a surety bond, trust fund, irrevocable letter of credit from an accredited financial institution or other method acceptable to the county, in a form approved by County Counsel. The financial assurances shall remain in effect during the entire time the permit is in force and effect and until the facility has been properly abandoned in conformity with all regulations of the Division of Oil, Gas and Geothermal Resources (DOGGR) of the State of California and notice to that effect has been received by the county. In the event that the bond is drawn upon, a new bond in the required amount shall be obtained within seven calendar days. The financial assurances shall guarantee the faithful performance of all of the conditions of the permit, and of all other pertinent county rules or regulations. The financial assurances shall further secure the county against all costs, charges and expenses incurred by it by reason of the failure of the permittee to comply fully with the provisions of the San Benito County Code and conditions of approval, and shall guarantee payment of all costs for removing, dismantling or demolishing, in strict accordance with the rules and regulations of DOGGR or any regulatory authority having jurisdiction, any structures erected on the premises, on the abandonment or cessation of the drilling activity on the permitted premises. The financial assurances shall also guarantee the payment of all costs of returning the premises to substantially its original condition, free of all oil, rotary mud, oil-soaked earth, asphalt, concrete, litter, debris and other substances caused by the drilling or pumping activity. Substitute financial assurances may be filed in lieu of any existing financial assurance if it is accepted by the county, and in a form approved by County Counsel; the existing financial assurance shall only be exonerated if the Planning Director finds that all of the conditions have been satisfied and that no default exists as to the performance upon which the financial assurance is conditioned. A new financial assurance shall be provided to and accepted by the county upon a change of ownership prior to the existing bond or financial assurance being exonerated.
(B) Well site restoration. Well site restoration shall be in compliance with all state laws and regulations, as well as with any other applicable federal or local law, rule or regulation. Applicant shall provide county, within ten business days, a copy of all documents submitted to the DOGGR regarding restoration or reclamation of the well site. Applicant shall provide county notice when final restoration of the well site is completed.
(C) All conditional use permits granted pursuant to Title 25 for oil and gas well operations shall contain the following conditions:
(1) Operations shall meet requirements of the Division of Oil, Gas and Geothermal Resources (DOGGR) and all regulatory agencies of the state that have authority over the production of petroleum resources.
(2) The operator shall file an annual report between January 1 and March 1 with the County Assessor to coincide with the yearly oil production and gas production report filed with the Division of Oil and Gas of the state.
(3) No vibrations, dust, odor or other harmful effects shall be created which affect materially any person living or working outside the project area. Operations shall comply with the county’s noise ordinance.
(4) The conditional use permit approval shall specify how all material disturbed by the drilling process and/or water used in the drilling process shall be disposed of. The conditional use permit shall specify what material and fluids shall be allowed to remain on site, and what materials/fluids shall be removed to an appropriate landfill. All material removed from the earth as a part of the drilling and recovered water shall be disposed of as set forth in the conditional use permit approval.
(5) Additional conditions of approval may include, but shall not be limited to the following:
(a) Requirements to install impervious liners in sumps to prevent seepage or fencing beyond that which would be required by law; and
(b) Visual screening or landscaping to hide operations and equipment from view; and
(c) Requirements to reduce any impacts identified in the environmental analysis; and
(d) Any specific requirements regarding fire-fighting equipment that shall be provided and maintained; and
(e) Requirements to install sanitary facilities in a manner approved by the county’s Health Department; and
(f) Other conditions deemed necessary to protect the public health, safety and general welfare.
(Ord. 918, § 1(part), 2013)