Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account.

Plain English Breakdown

The official source material does not specify how funds beyond the initial $5 million allocation will be used.

Oil and Gas Wells Near Parks: Help for Families

This law sets rules for oil and gas companies to fix or close old wells near parks in Los Angeles County, creates a fund from fines, and gives money to families with sick children who live nearby.

What This Bill Does

• Requires the Department of Conservation to identify all low-production oil and gas wells located within an oil field adjacent to state recreation areas or state parks that are also within the boundary of the Baldwin Hills Conservancy by March 1, 2025.
• Prohibits owners from letting these wells stay inactive for more than a year after March 1, 2026. If they do, they must pay $10,000 per month until the well is fixed or closed.
• Requires all such wells to be plugged and abandoned by December 31, 2030. After this date, owners will face fines of $10,000 per month for each day the well remains open.
• Creates an Equitable Community Repair and Reinvestment Account where fines are deposited. This money can be used to help communities near these wells.
• Allocates up to $5 million from this fund to give direct cash assistance to families living within 2.5 miles of identified low-production wells if their children have respiratory health issues.

Who It Names or Affects

• Oil and gas well owners in Los Angeles County near state parks or recreation areas.
• Families with sick children who live close to these oil and gas wells.

Terms To Know

Low-production wells

Wells that produce little or no oil or gas over a long period of time.

Baldwin Hills Conservancy

A protected area in Los Angeles County with natural resources and wildlife.

Limits and Unknowns

• The bill does not specify how the remaining funds from the Equitable Community Repair and Reinvestment Account will be used after the initial $5 million is allocated.
• It's unclear what happens if there are no fines collected by the deadline set in the bill.

Official Summary Text

AB 1661, as introduced, Bryan.
Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account.
Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles 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, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.
Existing law requires the plugging and abandoning of
all wells located in the County of Los Angeles 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 by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.
Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2
1
/
2
miles of the identified
low-production wells, as provided.
This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account to be allocated to the County of Los Angeles to disburse in direct cash assistance to families living within 2
1
/
2
miles of the identified low production wells whose children have respiratory health conditions.

Current Bill Text

Download Bill PDF