Brine Disposal Bond - San Luis Obispo County, CA in California

Brief Summary

San Luis Obispo County protects a limited groundwater supply that farms and towns depend on, so it wants a financial guarantee from anyone handling brine. This bond gives the County that guarantee without you tying up cash, and it is usually one of the last items between an approved permit and starting work.

The Brine Disposal bond is posted in favor of the County of San Luis Obispo and guarantees that the principal disposes of brine as its permit and County rules require. If the County has to step in because the work was not done correctly, the bond reimburses those costs. Confirm the current bond amount, form and filing office with the County before the bond is issued.

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How to Apply for a Brine Disposal Bond:

• Get the bond amount and any required bond form from the County office handling your permit.
• Have the permit number, or well name or number, ready for the bond.
• Complete the bond application and review the quote.
• Pay the premium and sign the bond.
• File the original bond with the County before starting work.

Detailed Information About the California Brine Disposal Bond:

What the bond guarantees

Brine is salt water, and in San Luis Obispo County it is treated as a threat to fresh water. The County Code says plainly that the fresh water supply must be fully protected from pollution by petroleum operations, and that the County depends heavily on agriculture and tourism. A brine disposal bond backs the principal's promise to keep brine where its permit says it goes. If the principal fails to follow the conditions and the County incurs cleanup or enforcement costs, the County can make a claim on the bond.

Brine from oil and gas operations

If your brine comes from oil or gas wells, San Luis Obispo County Code 22.34.040 sets the rules. All waste substances such as drilling muds, oil, brine or acids must be held in watertight receptors and then piped or hauled to a disposal area specifically approved by the Regional Water Quality Control Board. Unprotected earthen sumps are allowed only during drilling, with fencing rules for sumps near streets or homes.

The same section requires a surety bond in favor of the County after a drilling permit is approved and before any work on the site. The minimum is $5,000 per well. Where the Director is satisfied with an operator's financial responsibility, a single blanket bond of at least $25,000 can cover all of that operator's surface operations in the County. The Director can raise or lower these amounts, reviews them every year, and the County bond is in addition to any bond the state requires.

Before you buy

Ask the County office that issued your permit for the exact bond amount, the obligee wording and any required bond form, and match the bond to your permit or well identification. The surety can then issue the bond in that form.

Eligibility and Requirements for a California Brine Disposal Bond:

• County of San Luis Obispo named as obligee.
• Principal named exactly as on the permit.
• Bond amount set by the County or by the governing code section.
• Correct well name or number on the bond when it covers oil or gas operations.
• Bond kept in force until the County releases it.

California Brine Disposal Bond FAQs:

Official and Additional Resources for the California Brine Disposal Bond: