Steve Bennett. Courtesy photo.
SACRAMENTO — Legislation was signed this weekend that establishes additional authority at CalGEM to fine and remediate idle gas and oil wells and create options for companies who seek to work with the State on their unpaid fees. Governor Newsom signed AB 896 (Assemblymember Steve Bennett) which authorizes CalGEM to impose a claim or lien on the idle well under specified conditions.
“The recent oil spill in Huntington Beach underscores the need for California to increase regulations on oil producers,” said Bennett. “I want to thank the Governor for signing my AB 896. The bill allows the state to pro-actively begin enforcement before oil producers orphan a well. AB 896 strengthens our enforcement mechanisms and allows the state to recover cost for environmental damage before an operator files for bankruptcy.”
In 2018 CalGEM identified 2,927 wells as potentially deserted, and 3,265 wells as potentially deserted in 2019. 2,854 of these wells had operators that failed to pay idle well fees in both years, and according to CalGEM, 362 of these idle wells are in AD 37 alone. These wells result in increased local area emissions, environmental damage, and harm public health. Ultimately, when a responsible party is not found, the State is liable for any well that is not plugged, is not properly plugged and abandoned, or is orphaned. Each of these wells pose a potential risk to communities. If these operators do not come into compliance California will ultimately have to bare the environmental and financial cost of these wells.
AB 896 will address this issue by allowing CalGEM to use tax liens once they have pr