AB 1866: Oil and gas: idle wells.

Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells, as provided. A person who violates or fails, neglects, or refuses to comply with any of the oil and gas laws is guilty of a crime.

Existing law requires the operator of any idle well to either (1) no later than May 1 of each year, for each idle well that was an idle well at any time in the last calendar year, file with the supervisor an annual fee according to a specified schedule of fees based on the length of time a well has been idle, applicable to wells that have been idle wells for 3 years or longer, or (2) file a plan with the supervisor to provide for the management and elimination of all long-term idle wells, as provided. Existing law also establishes the Hazardous and Idle-Deserted Well Abatement Fund, a continuously appropriated fund, for the deposit of all fees received pursuant to these provisions.

This bill would revise and recast these provisions. The bill would, among other things, increase the fees for idle wells, and additionally impose fees for each idle well that has been an idle well for less than 3 years, as provided. By increasing the fees collected from operators of idle wells that are deposited into a continuously appropriated fund, the bill would make an appropriation.

The bill would also revise and recast the provisions of the idle well plan. The bill would, among other things, require operators who do not file the above-described idle well fees to, no later than May 1 of each year, file a plan with the supervisor to provide for the management and elimination of all idle wells, instead of all long-term idle wells. The bill would require the plan to require the operator to consider specified factors when prioritizing idle wells for plugging and abandonment. The bill would revise the provision requiring operators to eliminate a specified percentage of long-term idle wells by making it applicable to all idle wells and by increasing the minimum percentages of idle wells that operators would be required to eliminate each year, as provided. By expanding the scope of crimes, the bill would impose a state-mandated local program.

The bill would exempt from its provisions an idle well (1) for which an operator has made a diligent effort to locate and access the well and has provided documentation demonstrating that it is infeasible to locate or physically access the wellbore, subject to the approval of the division, or (2) that is the subject of a court-approved settlement agreement entered into on or before December 31, 2024, between a local governmental entity and the operator of the idle well, if that settlement agreement imposes more stringent requirements relating to the management and elimination of idle wells than the requirements imposed by this bill.

Existing law requires the supervisor to submit to the Legislature an annual comprehensive report, as specified, on the status of idle and long-term idle wells for the preceding calendar year.

This bill would require that report to also include a list of wells that the division has approved as being inaccessible, as described above.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.