§ 3206.1.5. — 3206.1.5. (Added by Stats. 2024, Ch. 549, Sec. 3.)

(a)
On or before March 1, 2025, the division shall identify all low-production wells that are located in a county of the first class in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy. The division shall determine the length of time those low-production wells have continuously been low-production wells. The division shall consider whether and for how long a well was shut-in for maintenance and subtract that
from the calculation of the length of time a well meets the definition of a low-production well.
(b)
On or before March 1, 2026, the division shall notify the owners of low-production wells identified in subdivision (a) of the prohibition on operating a low-production well for more than 12 months, as described in subdivision (c).
(c)
Commencing March 1, 2026, a well identified pursuant to subdivision (a) shall not be a low-production well for more than 12 months.
(d)
The supervisor shall charge an administrative penalty of ten thousand dollars ($10,000) per month to a low-production well owner in violation of subdivision (c) until the low-production well is plugged and abandoned pursuant to Section 3208. Penalties shall
be remitted annually on a schedule determined by the supervisor. The low-production well site shall not be required to be remediated until oil and gas operations cease.
(e)
The division shall waive the penalty in subdivision (d) on a low-production well when the owner submits a request for approval of a notice of intention pursuant to Section 3203 to plug and abandon the well. If work to plug and abandon the well does not start before the notice of intention expires, the division shall resume assessing the penalty on the well owner. A well owner who has an approved notice of intention to plug and abandon a well in accordance with Section 3208 shall not apply for approval of another notice of intention to plug and abandon the same well in a two-year period unless the supervisor determines that the well poses a present danger to life, health,
or natural resources.
(f)
(1)
All funds collected pursuant to this section shall be deposited into the Equitable Community Repair and Reinvestment Account, which is hereby created in the State Treasury as a special fund administered by the Department of Conservation.
(2)
Funds from the account shall be available, upon appropriation by the Legislature, to the Department of Conservation for allocation to a county of the first class.
The county may contract with entities within its jurisdiction, including, but not limited to, cities, state conservancies, joint powers authorities, and nonprofit organizations to use the funds for projects listed in subparagraphs (A) to (E), inclusive, to the extent that these projects benefit communities living within two and one-half miles of the oil wells identified in subdivision (a).
(A)
Park creation or expansion and maintenance of new outdoor amenities in park-poor neighborhoods.
(B)
Urban greening.
(C)
Affordable housing needed to accommodate community needs.
(D)
Climate mitigation and resilience.
(E)
Community benefit projects with environmental cobenefits.
(3)
(A)
The Legislature shall not allow the account balance to exceed twenty million dollars ($20,000,000).
(B)
Until December 31, 2030, the Legislature shall not allow the account balance to exceed ten million dollars ($10,000,000) once 50 percent of all wells that meet the conditions specified in subdivision (a) have been plugged and abandoned.
(C)
Commencing January 1, 2031, the Legislature shall not allow the account balance to exceed ten million dollars ($10,000,000) once 50 percent of all wells that meet the conditions specified
in paragraph (1) of subdivision (g) have been plugged and abandoned.
(g)
(1)
All wells, as defined in subdivision (a) of Section 3008, that are located in a county of the first class in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy shall be plugged and abandoned by December 31, 2030.
(2)
An owner of an idle well or long-term idle well that is located in a county of the first class in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy
may adjust the terms of an idle well management plan required pursuant to Section 3206, as needed, to accomplish the plugging and abandonment of those covered wells by December 31, 2030.
(3)
(A)
On and after January 1, 2031, the supervisor shall charge an administrative penalty of ten thousand dollars ($10,000) per month to a well owner in violation of paragraph (1) until the well is plugged and abandoned pursuant to Section 3208.
(B)
The supervisor shall not charge an administrative penalty pursuant to subparagraph (A) for a violation by a well owner if the supervisor has already charged an administrative penalty to that well owner for
a violation, applicable to the same well and covering the same time period, pursuant to subdivision (d).

Legislative History

Added by Stats. 2024, Ch. 549, Sec. 3. (AB 2716) Effective January 1, 2025.