For years, large drillers in California sold unprofitable wells to smaller companies willing to wring the last drops of oil out of them. The process essentially kicked the cost of cleaning up oil fields — pumping concrete down well bores, removing tanks and pipelines — to operators with less ability to pay for the eventual cleanup.
Policymakers and advocates predicted that taxpayers — not the oil companies themselves — would ultimately have to pay billions for remediation once those oil and gas operations ran dry. Unplugged wells emit climate-warming methane and pose long-term hazards to soil and groundwater.
But a new law may finally be slowing the so-called well shuffling, state data shows.
Since the start of this year, companies have proposed selling 766 wells in the state. But before the wells can change hands, purchasers are now required to request an estimate for a bond to plug the wells from the California Geologic Energy Management Division (CalGEM), the agency that regulates drilling.
Read more
