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E. PLUGGING AND ABANDONMENT 1. Notice of Plugging and Abandonment The Permittee shall notify EPA no less than sixty (60) days before conversion, workover, or abandonment of the well. EPA may require that the plugging and abandonment be witnessed by an EPA representative. 2. Plugging and Abandonment Plans The Permittee shall plug and abandon the well(s) as provided in Appendix F, the general Plugging and Abandonment Program submitted as Attachment Q to the application, and consistent with CDOGGR requirements and 40 CFR §146.10. EPA reserves the right to change the manner in which a well will be plugged if the well is modified during its permitted life or if the well is not consistent with EPA requirements for construction or mechanical integrity. EPA may require the Permittee to estimate and to update the estimated plugging cost periodically. Such estimates shall be based upon costs which a third party would incur to plug the wells, including mud and disposal costs, with appropriate contingencies. 3. Cessation of Injection Activities After a cessation of injection operations for two (2) years, the Permittee shall plug and abandon the inactive well(s) in accordance with the Plugging and Abandonment Plans, unless it: (a) Provides notice to EPA; (b) Has demonstrated that the well(s) will be used in the future; and (c) Has described actions or procedures, satisfactory to EPA, that will be taken to ensure that the well(s) will not endanger underground sources of drinking water during the period of temporary abandonment. 4. Plugging and Abandonment Report Within sixty (60) days after plugging any well, the Permittee shall submit a report on Form 7520-13, provided in Appendix C, to EPA. The report shall be certified as accurate by the person who performed the plugging operation and shall consist of either: (a) A statement that the well was plugged in accordance with the Plugging and Abandonment Plans, or UIC Permit CAI 0500002 Page 21 of 29