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California isn’t enforcing its strongest-in-the-nation oil well cleanup law on its largest oil company By Mark Olalde, ProPublica
Oil well pump jacks. | Photo by Richard Masoner CC BY-SA 2.0
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stepped the law. The California Geologic Energy Management Division, the state’s oil regulatory body, announced in late June that the law does not apply to the merger of California Resources Corp. and Aera Energy, two of the three companies that account for the vast majority of the state’s oil and gas production. If the law had been enforced, the deal would have provided billions of dollars in new bonds to ensure taxpayers weren’t eventually left with the cleanup bill. Department of Conservation Director David Shabazian explained the agency’s decision in a letter to Assemblymember Wendy Carrillo, the Los Angeles Democrat who sponsored the new law. The bonding requirements “do not apply to stock transfers, nor does the law make any mention of such transactions,” Shabazian wrote. In other words, because Aera is still listed as the operator of the wells, the state can’t act. That explanation did not appease Carrillo. “This deal is exactly why we passed AB 1167, the Orphaned Well Prevention
Act,” she said in an email to ProPublica and Capital & Main. “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.” The merger created the largest oil company in the state, with about 16,000 idle wells, which neither produce oil and gas nor are plugged and are at a higher risk of becoming orphans. That’s 40% of the total number of idle wells in the state. “It’s an absurd interpretation of the law,” said Kyle Ferrar, who helped write AB 1167 as Western program coordinator with environmental group FracTracker Alliance. “They’re essentially creating a model to get around this bill.” Richard Venn, a California Resources spokesperson, said in an emailed statement that the companies have plugged more than 5,000 wells and “have active and well-established programs for managing See Oil cleanup Page 02
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County-based advocates urge Biden to designate Chuckwalla National Monument By City News Service
This story was originally published by ProPublica. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.
Series: Unplugged: Will Taxpayers Foot the Oil Industry’s Cleanup Bill? nplugged oil and gas wells accelerate climate change, threaten public health and risk hitting taxpayers’ wallets. Money set aside to fix the problem covers less than 2% of the impending cost. Last October, California passed the nation’s strongest law to address the glut of oil and gas wells that are unplugged and ownerless, many leaking pollutants into the environment. The legislation required that, as part of any sale or transfer of wells, the purchasing company set aside enough money in financial instruments known as bonds to cover the entire cleanup cost of low-producing wells if the companies go out of business without plugging them. It was a striking departure from the piecemeal steps taken by other state legislatures and federal agencies to reduce the number of orphan wells. California lawmakers repeatedly cited ProPublica’s work on the subject as a reason to act. But in its first major test, California regulators side-
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the full life cycle of wells and we have the size and financial resources to address all of our plugging obligations. The merger strengthens those resources.” “Enormous Dereliction of Duty” In December, the California Geologic Energy Management Division wrote to the state’s oil companies notifying them that they should submit paperwork before completing “any acquisition” — agency staff bolded those words — to assist the state in determining necessary bonding levels under AB 1167. “This notice is to ensure that operators are aware of new bonding requirements that must be complied with in advance of acquiring certain wells and production facilities,” regulators wrote. But the state concluded the California Resources and Aera merger didn’t trigger the bonding requirements because of the way it was structured. In the state’s letter explaining regulators’ reasoning, Shabazian wrote that “if
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coalition of over 225 businesses, 175 within the Coachella Valley and Inland Empire areas, as of Thursday have joined tribal leaders, advocates and elected officials in pledging support to an initiative urging President Joe Biden to establish a new Chuckwalla National Monument. Groups in favor of the proposal asserted the proposed protection status as a potential local economic boost, an aid to ensure residents’ outdoor access and a safeguard for biodiversity and cultural resources. “The proposed Chuckwalla National Monument and protecting lands adjacent to Joshua Tree National Park will provide
even more opportunities for people to access the outdoors, as well as protect our beautiful deserts,” said Desert Hot Springs Councilman Gary Gardner, who also chairs Visit Greater Palm Springs’ Joint Powers Authority. “Outdoor recreation and access to our gorgeous desert lands are among the primary drivers of our tourism-based economy and are part of what makes living here so special.” Located south of Joshua Tree National Park, the proposal would encompass approximately 627,000 acres of public lands, as well as protect approximately 17,000 additional acres in the Eagle Mountains. Advocates say that
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Vince Vaughn purchases majority ownership of CV pickleball team By City News Service
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ctor Vince Vaughn has acquired a majority ownership stake in the National Pickleball League’s Coachella Valley Scorpions, it was announced Thursday. The Scorpions were established in May, one of 12 teams in the 50-and- over professional league that launched in 2022. Team co-owner Kim Jagd, who is also a member of the Scorpions’ roster, will retain a minority ownership status following the transaction, league officials said. Vaughn’s career in Hollywood spans over three decades, including starring roles in comedy films such as “Swingers,” “Wedding Crashers” and Dodgeball: A True Underdog Story. “I have always enjoyed the game and in meeting Kim I was impressed with her, not only as a player, but her passion and style of coaching,” Vaughn said in a statement. “I’m excited to support her and the Scorpions on their journey.” Vaughn and Jagd met on a pickleball court in the See Pickleball Page 35