Environmental groups and lawmakers are demanding action after California regulators chose not to enforce a law requiring financial bonds for defunct wells in a major oil company merger.
Joe Fassler reports for DeSmog.
In short:
- The merger between California Resources Corporation and Aera Energy proceeded without the required financial assurance bonds for idle wells.
- AB 1167 mandates that companies must bond defunct wells before transfer, but CalGEM claimed it doesn't apply in this case.
- Lawmakers and environmental groups argue that this decision undermines the law’s intent to protect public health and the environment.
Key quote:
“They’re just ignoring the statute. We need the governor to step in and tell the agency to follow the law.”
— Kassie Siegel, director of the Climate Law Institute at the Center for Biological Diversity
Why this matters:
Without enforcing the bond requirement, thousands of idle oil wells may remain unaddressed, posing significant environmental and health risks. Financial accountability for well cleanup could fall to the public, straining limited resources.
