Oil and gas: hazardous and idle-deserted wells and production facilities: expenditure limitations: updated reports.

Existing law authorizes the State Oil and Gas Supervisor to order certain operations to be carried out on any property in the vicinity of which, or on which, is located any well or facility that the supervisor determines to be a hazardous well, an idle-deserted well, a hazardous facility, or a deserted facility, as specified. Existing law prohibits the Geologic Energy Management Division from expending more than $3,000,000 in any one fiscal year, for the 2018–19 fiscal year to the 2021–22 fiscal year, inclusive, and, commencing with the 2022–23 fiscal year, no more than $1,000,000 in any one fiscal year for those purposes related to hazardous wells, idle-deserted wells, hazardous facilities, and deserted facilities. Existing law provides that these moneys be used exclusively for plugging and abandoning hazardous or idle-deserted wells and decommissioning hazardous or deserted facilities. Existing law requires the Department of Conservation, on April 1, 2021, to report information to the Legislature on hazardous wells, idle-deserted wells, deserted facilities, and hazardous facilities, as provided, and to provide an update on the report to the Legislature on October 1, 2023. This bill, commencing with the 2022–23 fiscal year, and continuing thereafter, would provide that the spending cap applies to expenditures from the Oil, Gas, and Geothermal Administrative Fund and would raise the cap on spending for these purposes from $1,000,000 to $5,000,000 in any one fiscal year. The bill would authorize the moneys to additionally be used for remediating well sites of hazardous or idle-deserted wells. The bill would also require the department to provide an update on the report to the Legislature annually. Existing law requires the supervisor to order those tests or remedial work that in the judgment of the supervisor are necessary to prevent damage to life, health, property, and natural resources; to protect oil and gas deposits from damage by underground water; or to prevent the escape of water into underground formations, or to prevent the infiltration of detrimental substances into underground or surface water suitable for irrigation or domestic purposes, to the best interests of the neighboring property owners and the public. Existing law authorizes the supervisor or district deputy to order the plugging and abandonment of a well or the decommissioning of a production facility that has been deserted whether or not any damage is occurring or threatened by reason of that deserted well or production facility. Existing law requires the owner or operator to commence, in good faith, the work ordered and continue it until completion and, if the work has not been commenced and continued to completion, authorizes the supervisor to appoint necessary agents to enter the premises and perform the work and provides that any amounts expended are a perfected and enforceable state tax lien against real or personal property of the operator. This bill would make the above-described $5,000,000 spending cap applicable to the supervisor's authority to appoint necessary agents to enter the premises and perform the work, unless the division obtains a lien against real or personal property of the operator. If the division obtains a lien against real or personal property of greater value than the amount of the expenditure, the bill would provide that the amount of the expenditure does not count against the expenditure limit. If the division obtains a lien against real or personal property of lesser value than the amount of the expenditure, the bill would provide that only the difference between the amount of the expenditure and the value of the property counts against the expenditure limit. This bill would incorporate additional changes to Section 3258 of the Public Resources Code proposed by SB 84 to be operative only if this bill and SB 84 are enacted and this bill is enacted last.