Vote Smart's Synopsis:

Vote to pass a bill that requires oil and gas companies to clean up old wells in California.

Highlights:

• Requires any person acquiring the right to operate or control an oil or gas well to notify the State Oil and Gas Supervisor and file an indemnity bond covering the full estimated costs of plugging, abandonment, decommissioning, and site restoration (Sec 1-2). 

• Expands the definition of “acquiring control” to include stock transfers of more than 50%, mergers, liquidations, or the transfer of substantially all assets of an operator (Sec. 2). 

• Repeals existing bonding exemptions for wells that exceed an average daily production level of 15 barrels of oil or 60,000 cubic feet of natural gas (Sec. 2). 

• Requires prospective acquirers to request a bond amount determination from the supervisor and file the bond before completing an acquisition (Sec. 2). 

• Authorizes the supervisor to determine bond amounts using any reasonable method, such as contractor estimates or specific cost estimation criteria (Sec. 2). 

• Classifies an intentional violation of these bonding and notification requirements as a misdemeanor (Sec. 3). 

• Specifies that the act only becomes operative if Assembly Bill 2716 of the 2025-26 Regular Session is also enacted (Sec. 4).

Full Bill Text