California bill requiring companies to pay for oil and gas well cleanup in limbo
ProPublica: The bill, which awaits a decision by Gov. Gavin Newsom, follows ProPublica’s reporting on the multibillion-dollar cost to clean up California’s oil and gas industry and the exodus of major companies shifting ownership of thousands of aging wells. Journalist Mark Olalde reports the story for ProPublica.
In a nutshell:
The California Legislature has passed AB1167, a bill designed to provide strong protections for taxpayers against the costs of cleaning up orphaned oil and gas wells. This legislation mandates that companies purchasing idle or low-producing wells set aside sufficient funds to cover the entire cleanup expense, which averages over $180,000 per well in California. However, Governor Gavin Newsom has not yet indicated whether he will sign the bill, with his spokesperson stating that the governor will evaluate it "on its merits." The bill aims to address the environmental and financial challenges posed by orphaned wells in the state, a problem exacerbated by a history of weak oversight of the oil and gas industry in California.
Key quote:
“It’s too easy for them right now to offload those unproductive oil wells to newer or less-resourced companies that may turn around and go bankrupt and that don’t have the adequate financial capacity to do the job of cleaning up,” said Laura Deehan, director of Environment California.
The big picture:
Cleaning up aging wells mitigates environmental harm by preventing the leakage of climate-warming methane, brine, and toxins that can result from neglected wells. It also safeguards public health and land by removing potential hazards and contaminants, and avoids the burden of cleanup costs falling on taxpayers, as these costs can be substantial. Ensuring responsible management of aging oil and gas infrastructure is essential for both environmental sustainability and fiscal responsibility.
Read the article at ProPublica.
It's not just California; the Gulf of Mexico is littered with tens of thousands of abandoned oil and gas wells, and toothless regulation leaves climate warming gas emissions unchecked, writes Hanna Seo for EHN.
