AB 3019

Bill Subjects

Abstract

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. 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, or (2) file a plan with the supervisor to provide for the management and elimination of all long-term idle wells. Existing law also establishes the Hazardous and Idle-Deserted Well Abatement Fund in the State Treasury for the deposit of those idle well fees, and continuously appropriates moneys in the fund to the department for expenditure to mitigate a hazardous or potentially hazardous condition, by well plugging and abandonment, decommissioning the production facilities, or both, at a well of an operator, as provided. Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project, as provided. This bill would require the department to make available at least 25% of the funds to be expended each year from the Hazardous and Idle-Deserted Well Abatement Fund to a county in which there are at least 100 orphaned or deserted oil and gas wells and that attests to the department that it can plug and abandon those wells more quickly than the department can, as provided. The bill would also require the department, upon becoming aware of liquid or gas leaking from an orphaned or deserted oil and gas well, to immediately make available at least 10% of the funds to be expended each year from the fund to the county in which the well is located, if the county attests to the department that it can plug and abandon the well more quickly than the department can, as provided. The bill would require the department to distribute funds amongst eligible counties based on the number of wells that would be plugged and abandoned by the county and the cost estimate to plug and abandon the wells. The bill would require the expenditure of all money from the fund to comply with those skilled and trained workforce requirements, as provided.