The Governor’s budget proposes $200 million General Fund over two years for the California Geologic Energy Management Division (CalGEM) within the Department of Conservation (DOC) to plug deserted wells and decommission associated facilities. Although addressing deserted wells could have environmental, health, and safety benefits, this proposal represents a significant expansion of current well remediation activities. In addition, federal funding for well remediation activities will soon be available. Furthermore, it may be appropriate for the current oil and gas operators to bear at least some of the cost of remediating the environmental damages from these wells rather than the general taxpayer through the state General Fund. We recommend the Legislature consider reducing the amount of state funding proposed, consider using alternative sources of funding to support well remediation, and require reporting on key program outcomes to inform future funding decisions.
Oil bankruptcies leave environmental cleanup bills to California taxpayers
Randeep Singh Grewal built a fossil fuel empire around his Greka group of companies. Now, taxpayers are paying millions to clean up Rincon Island.
Mark Olalde, Palm Springs Desert Sun
Published
7:07 pm UTC Jun. 25, 2021
Oil shaped modern Southern California. With dreams of black gold and not content to merely drill on land, a company called Atlantic Richfield built a 2.3-acre artificial island in the late 1950s just off the coast of Ventura County. Today, surfers skim past Rincon Island’s crown of palm trees and 50 oil wells near Mussel Shoals but the site will never pump oil again.
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