Bill > AB2716

This bill modifies existing requirements for oil and gas operators in California regarding financial assurances, which are essentially guarantees that operators can cover the costs of properly closing down wells and restoring the land. Specifically, it expands the types of financial assurances an operator can use in lieu of a traditional indemnity bond, which is a guarantee from a surety company. Previously, self-insurance and corporate guarantees were excluded, but this bill removes that exclusion, allowing operators to use these methods with the approval of the Geologic Energy Management Division (the "division"), which is part of the Department of Conservation. The bill also clarifies that the division can approve other equally effective financial assurance methods. Furthermore, it introduces an exemption from these bonding and financial assurance requirements for individuals who acquire a well or production facility solely for the purpose of plugging and abandoning it or decommissioning it, provided it is not used for oil or gas production or injection. This exemption is intended to streamline the process for responsible well closure.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2716