Bill Text: CA SB551 | 2019-2020 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Oil and gas: wells and facilities: abandonment and decommissioning: reporting and inspections.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-10-12 - Chaptered by Secretary of State. Chapter 774, Statutes of 2019. [SB551 Detail]

Download: California-2019-SB551-Introduced.html

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CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 551

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Introduced by Senator Jackson

February 22, 2019

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An act to add Section 3115 to the Public Resources Code, relating to oil and gas.

LEGISLATIVE COUNSEL'S DIGEST

SB 551, as introduced, Jackson. Oil and gas: decommissioning, cleanup, and remediation: costs.

Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires an operator who engages in the drilling, redrilling, deepening, or in any operation permanently altering the casing, of a well, or who acquires a well, to file with the State Oil and Gas Supervisor an individual indemnity bond for each well so drilled, redrilled, deepened, permanently altered, or acquired in specified amounts depending on the depth of the well. Existing law authorizes an operator who engages in the drilling, redrilling, deepening, or in any operation permanently altering the casing, of 20 or more wells at any time, to file with the supervisor one blanket indemnity bond to cover all the operations in any of its wells in the state, in a specified amount depending on the total number of wells in the state, in lieu of the above-described requirement for an individual indemnity bond for each operation.

This bill would require the division to develop a mechanism to assess the full cost of decommissioning, cleanup, and remediation of infrastructure related to the oil and gas industry, including pipeline facilities, pump facilities, and storage facilities.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 3115 is added to the Public Resources Code, to read:

3115.

 The division shall develop a mechanism to assess the full cost of decommissioning, cleanup, and remediation of infrastructure related to the oil and gas industry, including pipeline facilities, pump facilities, and storage facilities.