California regulators fail to enforce new oil well cleanup law

California regulators decided they lack the authority to enforce the state's new oil well cleanup law on California's largest oil company merger, potentially costing taxpayers billions.

Mark Olalde reports for ProPublica.

In short:

California’s new oil well cleanup law, passed in October, requires companies to set aside bonds to cover cleanup costs during well transfers.
State regulators ruled the law doesn't apply to the merger of California Resources Corp. and Aera Energy, which involves about 16,000 idle wells.
Critics argue this interpretation creates a loophole allowing companies to evade the law’s financial requirements.

Key quote:

“If a company is drilling for oil in California, they should be responsible for cleaning and closing that oil well. Not enforcing the law as intended sets-up our state for a potential financial catastrophe.”

— Assemblymember Wendy Carrillo

Why this matters:

Idle oil wells in California leak pollutants, endanger public health and pose financial risks to taxpayers. Without enforcement, the state faces escalating cleanup costs and environmental hazards.

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California regulators fail to enforce new oil well cleanup law

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