(

a) In addition to the bonding requirements under

Article 4 (commencing with

Section 3200), for an operator with a history of violating this

chapter or that has outstanding liabilities to the state associated with a well or production facility, the supervisor may require a life-of-well or life-of-production facility bond in an amount adequate to ensure all of the following:

(1) The proper plugging and abandonment of each well.

(2) The safe decommissioning of each production facility.

(3) The financing of spill response and incident cleanup. (

b) Upon the failure of an operator to properly plug and abandon a well, decommission a production facility, or perform the appropriate spill response and incident cleanup, the supervisor may levy on the bond to obtain money to pay the cost of the work. (

c) The supervisor may release a life-of-production facility bond upon the satisfactory decommissioning of a production facility, or when an operator has provided another valid life-of-production facility bond. (

d) The supervisor may release a life-of-well bond upon the satisfactory plugging and abandonment of all wells covered by the bond or when an operator has provided another valid life-of-well bond. (

e) Whenever an operator sells, assigns, transfers, conveys, exchanges, or otherwise disposes to another operator a well or production facility that is covered by a life-of-well bond or a life-of-production facility bond, the new operator shall replace the life-of-well or life-of-production bond, as applicable, and maintain the new bond for five years before it may be released by the supervisor. (

f) In lieu of the indemnity bond required by this section, the supervisor may accept a deposit given pursuant to

Article 7 (commencing with

Section 995.710) of

Chapter of Title of Part of the Code of Civil Procedure, excluding a deposit of money, bearer bonds, or bearer notes. (

g) The supervisor shall adopt regulations specifying the content, including the conditions, of the bond or other security instrument required by this section.