Oil companies are spending record amounts to push back against California policies that could limit profits, restrict new drilling and boost accountability.
S.B. 12: Would have reduced statewide greenhouse gas emissions to at least 55% below the 1990 level by the end of 2030 — up from the current state goal of 40%.
These bills must pass the Assembly by Sept. 14 to stay alive this session. They’d then need to get signed by Newsom before Oct. 14 to become law starting Jan. 1.As lawmakers weigh new rules for the oil industry, California regulators are taking steps to limit the health, safety and environmental risks posed by so-called ‘orphan wells,’ or wells that companies abandon without plugging them up., with nearly 2,000 documented in Los Angeles, Orange, San Bernardino and Riverside counties alone.
Environmental groups, led by the Sierra Club, sent CalGEM a letter Friday asking the agency to aggressively pursue ways to make oil companies pay to plug these wells and to not issue any new well permits to companies that have deserted wells in the past. During this year’s second quarter, 92% of the 754 permits approved to fix existing wells were for sites that produced less than 15 barrels of crude a day, according to state data analyzed by FracTracker Alliance.
The slowdown comes after requests for new permits spiked last year, when Newsom signed Senate Bill 1137.
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