Rules as outlined in USGA LINK (click here for link)
HAZARD and PENALTIES:
The district counts OB (out of bounds) and LB (lost balls) as a HAZARDS.
What is difference between a HARZARD & a PENALTY in golf? (Feb 1, 2022):
HAZARD: In a hazard area you MUST NOT touch the ground, water, or sand with your club, which will cost you a 2-shot penalty stroke. A hazard is an area of a golf course in which provides a "difficult obstacle", which may be of two types:
WATER hazards such as lakes and rivers = 1 stroke penalty
-In a water hazard, you must not touch the water or ground with either hand or club, or touch or move any loose impediments in the hazard.
-When your ball goes in a “REGULAR” water hazard, for a penalty of one stroke you can DROP a ball BEHIND the hazard anywhere on a straight line drawn from the hole through the spot where your ball crossed over the hazard's yellow margin as it went in.
MAN-MADE hazards such as bunkers (sand traps)
-Touching the sand with your club immediately in front of or behind your ball, during a practice swing or during your backswing is a penalty (see Rule 12.2b(1)). If you do this, you get a 2-shot penalty stroke in stroke play.
-Grounding your club in a hazard - Practice swings may be taken inside a hazard as long as you don't touch the ground, sand or water with your club. The top of the grass may be touched during a practice swing. The penalty for grounding your club is 2-shot penalty in stroke play.
PENALTY: In a penalty area you WILL be able to touch or move lose impediments and touch the ground with hand or club, as long as you don't improve conditions for your next stroke. (Feb 1, 2022). Penalty areas are one of the five defined areas of the course and can be marked as either RED or YELLOW stakes or lines. Penalty areas include any body of water on the golf course plus any other areas marked by red or yellow. If you choose to take relief, the color of the stakes will indicate how many options are available, but all come with 1-penalty stroke. When your ball lies in a penalty area, you can "play it as it lies" or "take relief" outside the penalty area for 1-penalty stroke.
RELIEF OPTIONS (1-penalty stroke):
Red Penalty Area Relief = 3 relief options:
1st Relief Option - Stroke & Distance: You can go back to the spot where you last played.
2nd Relief Option - Back-on-the-Line: You can imagine a line from the hole (flag) through the point where your ball lasts crossed the edge of the penalty area and drop it on the line behind it. Your ball can roll up to 1-club length in any direction from where it first struck the course including forward.
3rd Relief Option - Lateral Relief: Lateral relief allows you to drop a ball into a relief area measured from where your ball last crossed the edge of red penalty area. From that reference point, you are allowed to drop outside the penalty area and anywhere within 2-club lengths of that spot, no nearer to the hole.
2. Yellow Penalty Area Relief = 2 relief options:
1st Relief Option - Stroke & Distance: You can go back to the spot where you last played.
2nd Relief Option - Back-on-the-Line: You can imagine a line from the hole (flag) through the point where your ball lasts crossed the edge of the penalty area and drop it on the line behind it. Your ball can roll up to 1-club length in any direction from where it first struck the course including forward.
**Additional Course Relief Option - "Dropping-Zone Area": The course may provide an area marked as "dropping-zone" that could be an additional option and cost 1-stroke penalty.