“We are taking on Big Oil and having a real chance of winning.” - Governor Newson, September 25, 2024
Gov. Gavin Newsom backed up his comment when he signed various bills Sept. 25 that will require fees that companies must pay to cover the cost of cleaning up 40,000 idle wells across the state, along with another bill that will strengthen local government’s power to restrict oil and gas production (AB 3233) and another that would shut down the 1,000-acre Inglewood Oil Field by 2030. And the Sierra Club was right in the thick of it, along with other eco-groups.
According to the Los Angeles Times, “more than a century of oil and gas drilling in California has left more than 100,000 wells unplugged, allowing them to leak planet-warming methane and dangerous chemicals, such as benzene. The cost of properly closing these wells could run as high as $23 billion, according to a recent Sierra Club analysis.” That analysis noted such wells are “Primarily concentrated in Kern, Los Angeles, Ventura, Fresno and Santa Barbara counties, and these wells are overwhelmingly located in rural and predominantly Latino counties with household incomes that are far lower than the state average.”
About 40,000 of California’s uncapped wells are classified as idle, meaning they haven’t produced any oil or gas in at least two years.
“This is a landmark victory for taxpayers and communities most affected by the harmful health impacts of neighborhood oil drilling,” said Assembly member Gregg Hart (D-Santa Barbara), who wrote the bill (AB 1866).
“Sierra Club staff, volunteers, and our coalition partners have mobilized at every step of the process to pass these vital pieces of legislation to #MakePollutersPay,” said Jasmine Vazin, Deputy Director of the club’s Beyond Dirty Fuels Campaign. She added that the Sierra Club's report on the state of idle wells in CA “facilitated bill concepts and provided data for supporting arguments throughout this legislative session.” Staff also sent out major outlet stories to elevate the issues, and “our digital arcs generated hundreds of constituent calls.”
Her conclusion was how “this victory exemplifies how effective cross capacity coordination builds the power to win.” On another issue, our Assemblymember Steve Bennett (D-Ventura) weighed in by defending deeper state involvement in monitoring gasoline production, which is likely to decline as more electric cars overtake gas car sales. California Energy Commission, meantime, has offered a list of 12 options for policymakers to help manage the industry decline. “While I recognize that the industry has an obligation to maximize profits, we have an obligation also to maximize what’s in the interests of the public,” Bennett said.
Western States Petroleum Assn. called the actions “political theater” adding that the moves would “cost jobs while forcing us to bring in more oil from overseas.” Indications are that the oil industry will fight the new bills in court. However, the Sierra Club analysis argues that “Plugging all unplugged wells could create at least 54,974 direct, indirect, and induced jobs across the state, with 33,969 attributable to wells in Kern County.”
~ Compiled by John Hankins