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 (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.”