Assembly Member Gregg Hart (D-Santa Barbara) introduced AB 1866 on behalf of a coalition of extremist groups with one goal: to kill off California’s oil producers. If AB 1866 had passed in its original form, nearly all independent oil producers in California would have been wiped out.
AB 1866 amends the state’s Idle Well Management Program (IWMP) by implementing large increases to the minimum number of idle wells operators must eliminate each year.
Under the state’s current program, companies with 1-250 idle wells must eliminate a minimum 4% of their long-term idle wells annually; those with 251-1,250 wells must eliminate a minimum of 5% of their long-term idle wells annually; and companies with more than 1,250 wells must eliminate at least 6% of their long-term idle wells annually. An idle well is considered eliminated if it is plugged or brought back to production for at least six months in any given year.
Hart proposed that operators have a new obligation starting next year to eliminate idle wells at the following pace:
Companies with 1-250 idle wells: 10% annually
Companies with 251-1,250 idle wells: 15% annually
Companies with more than 1,250 wells: 20% annually
From its introduction, CIPA opposed the bill and sought to have the bill amended. Combatting the misinformation being pedaled by extremist groups, CIPA staff worked with Mr. Hart and his staff and were able to eventually come to a last-minute agreement on amendments that significantly improved the bill by eliminating the death knell that was the original AB 1866.
Under his amendments, Hart is now proposing that starting in July of next year companies with 1-250 idle wells eliminate 5% annually and those with 251-1,250 idle wells eliminate 6%. At CIPA’s request, Hart agreed to create a new tier (companies with 1,250-3,000), since two companies that fall into this category, Sentinel Peak Resources and Berry Petroleum, have significantly fewer wells than the majors and should not have the same target. That new tier will be required to eliminate 7% starting next year. WSPA members will be required to eliminate 15% of their idle wells starting next year.
In the last week of legislative session, the bill was taken up and passed by the Senate on a mostly party line vote, 29-8-3. The bill was then transmitted to the Assembly for a vote of concurrence on Senate amendments, and that vote was 48-17-14. Now the governor’s office will receive the bill and review it. It is expected that the governor will sign the bill.